SENATE BILL NO. 354
INTRODUCED BY W. CRISMORE, D. MOOD, BECK, BERRY, COLE, GRIMES, KEENAN, MAHLUM, K. MILLER, SLITER, F. THOMAS
AN ACT PROHIBITING THE STATE BOARD OF LAND COMMISSIONERS AND THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION FROM DESIGNATING, TREATING, OR DISPOSING OF ANY INTEREST IN STATE FOREST LANDS FOR PRESERVATION PURPOSES PRIOR TO OBTAINING THE FULL MARKET VALUE OF THE FOREGONE USES; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
WHEREAS, no interest in state trust lands or proceeds may be diverted from the trust without payment of the full market value of that use to the trust pursuant to section 11 of the state's Enabling Act and Article X, sections 3 and 11, of the Montana Constitution; and
WHEREAS, the Montana Supreme Court, in Montanans for the Responsible Use of the School Trust v. State, 296 Mont. 402, 989 P.2d 800 (1999), held that state trust land could not be held idle without the production of revenue pending the arbitration of lease improvements and referenced an earlier Supreme Court ruling that declared that a "trustee must act with the utmost good faith towards the beneficiary, and may not act in his own interest, or in the interest of a third person"; and
WHEREAS, Attorney General Robert Woodahl, in an opinion issued on July 7, 1976, 36 A.G. Op. 92, held that in order for the state to avoid a breach of trust under the Enabling Act and the Montana Constitution, the state is required to actually compensate the state school trust with funds for the full appraised value of any state trust lands designated or exchanged for natural areas pursuant to the Montana Natural Areas Act of 1974.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. State forest lands -- deferral of management prohibited. The board and the department are prohibited from designating, treating, or disposing of any interest in state forest lands for the preservation or nonuse of these lands prior to obtaining funds for the affected beneficiary equal to the full market value of that designation, treatment, or disposition. Unless the full market value of the property interest or of the revenue foregone is obtained, the board and the department are prohibited from either temporarily or permanently designating, treating, or disposing of any interest in any state forest lands for the following purposes:
(1) as a natural area pursuant to Title 76, chapter 12, part 1, or as otherwise provided for by law;
(2) as open-space land as defined in 76-6-104;
(3) for old growth timber preservation; and
(4) as a wildlife management area.
Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 77, chapter 5, part 1, and the provisions of Title 77, chapter 5, part 1, apply to [section 1].
Section 3. Effective date. [This act] is effective on passage and approval.
- END -
Latest Version of SB 354 (SB0354.ENR)
Processed for the Web on April 6, 2001 (4:15PM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)
(406)444-3064