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Regular Session, 2011
SENATE BILL NO. 119
BY SENATOR PERRY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC LANDS. Provides relative to leases of public lands. (6/23/11)
AN ACT1
To amend and reenact R.S. 41:1216 and 1217.1(B), and R.S. 56:30.3(B) and to enact R.S.2
41:1217(F), relative to leases of public lands; to provide for certain provisions3
regarding leases on public lands; to exempt lands administered, controlled or4
managed by the Department of Wildlife and Fisheries from certain restrictions on5
public leases; to provide for terms of a lease transferred to the state from another6
party; to provide terms, conditions, and requirements; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R. S. 41:1216 and 1217.1(B) are hereby amended and reenacted and R.S.10
41:1217(F) is hereby enacted to read as follows: 11
§1216. Restrictions of area, number, and transfer of leases; subleases 12
A.(1) In order to allow the individual lessee to lease lands from the state in13
preference to syndicated landholders or corporations, no lease shall cover a larger14
area than six hundred forty acres of public land, which area must be contiguous. No15
lessee may own more than one such lease at one time.16
(2) The provisions of Paragraph (1) of this Subsection shall not apply to17 SB NO. 119
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leases of lands administered, controlled or managed by the Department of1
Wildlife and Fisheries.2
B. All leases made under the terms of this Part shall be heritable, but may not3
be mortgaged, pledged, hypothecated, subjected to seizure and sale, subleased,4
transferred, or assigned, except as provided in Subsection B C of this Section.5
BC. Subject to the prior written approval of the lessor, as defined in R.S.6
41:1211, or its successor in office, all leases made under the terms of this Part may7
be subleased, transferred, or assigned by the original lessee, his sublessees, heirs, or8
assigns, and likewise may be mortgaged, pledged, hypothecated, or subjected to9
seizure and sale. The lessor is authorized to permit such transfers of leases upon10
such terms and conditions as it may deem proper, provided that said sublessees,11
transferees, assignees, mortgagees, or pledgees are entitled to the same rights and12
privileges as were granted by the lessor to the original lessee and specifically those13
granted to the original lessee under the provisions of R.S. 41:1222(A). The lessor14
is directed to collect a fee of ten dollars for the privilege of permitting such transfers,15
said fee to be paid into the general fund of the state.16
§1217. Term and rental; port authorities excepted 17
* * *18
F. All leases or extensions of leases on lands administered, controlled or19
managed by the Department of Wildlife and Fisheries executed under the20
provisions of this Part, or R.S. 56:30.3, shall require that the rental payments21
be adjusted annually by an amount not less than the annual percentage increase22
in the Consumer Price Index for all Urban Consumers, United States City23
Average, as published by the United States Department of Labor, for the24
preceding calendar year.25
§1217.1. Renewal of lease; highest bid option26
* * *27
B. Notwithstanding any provision of law to the contrary, if the commissioner28
or secretary determines there exists a public need to maintain the current lessee, the29 SB NO. 119
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commissioner or secretary may offer the current lessee, if he made a bid, the option1
to match the highest bid in order to continue to lease the state lands. The2
provisions of this Subsection shall apply to lessees who held a lease with another3
party, which lease was subsequently transferred to the state. The provisions of4
this Subsection shall not apply to oyster leases, alligator leases, or oil and gas leases5
entered into by the Department of Wildlife and Fisheries, or to any lease entered into6
by the State Mineral and Energy Board.7
* * *8
Section 2. R.S. 56:30.3(B) is hereby amended and reenacted to read as follows:9
§30.3. Lease of state lands; access to public waterways10
* * *11
B. Notwithstanding any provision of law to the contrary, if the secretary12
determines there exists a public need to maintain the current lessee, the secretary13
may offer the current lessee, if he made a bid, the option to match the highest bid in14
order to continue to lease the state lands. The provisions of this Subsection shall15
apply to lessees who held a lease with another party, which lease was16
subsequently transferred to the state. The provisions of this Subsection shall not17
apply to oyster leases, oil and gas leases or alligator leases entered into by the18
department, or to any lease entered into by the State Mineral and Energy Board. The19
department shall promulgate rules and regulations providing for uniform criteria to20
assess the management of leased property.21
Section 3. This Act shall become effective on June 23, 2011.22
The original instrument was prepared by J. W. Wiley. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Nancy Vicknair.
DIGEST
Perry (SB 119)
Present law provides that in order to allow the individual lessee to lease lands from the state
in preference to syndicated landholders or corporations, no lease will cover a larger area than
640 acres of public land, which area must be contiguous. Further provides that no lessee
may own more than one such lease at one time.
Proposed law provides that provisions of present law will not apply to leases of lands SB NO. 119
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administered, controlled or managed by the DWF.
Present law provides relative to leases of public lands generally, including term, payment
of consideration, construction of improvements, and requirements and time periods for
extension of leases. Excludes port authorities of the state, and has special provisions relating
to lease of sixteenth section school lands for agricultural purposes, and access to public
waterways.
Proposed law retains present law, and adds that leases or extensions of leases on lands
administered, controlled or managed by DWF shall require that the rental payments be
adjusted annually by an amount not less than the annual percentage increase in the CPI for
all Urban Consumers, United States City Average, as published by the United States Dept.
of Labor, for the preceding calendar year.
Present law provides if the commissioner or secretary determines there exists a public need
to maintain the current lessee, the commissioner or secretary may offer the current lessee,
if he made a bid, the option to match the highest bid in order to lease the state lands. Also
provides that this shall not apply to oyster leases, alligator leases, or oil and gas leases
entered into by the Department of Wildlife and Fisheries, or to any lease entered into by the
State Mineral and Energy Board. Proposed law retains present law and adds that this offer
to the current lessee procedure shall apply to lessees who held a lease with another party,
which lease was subsequently transferred to the state.
Effective June 23, 2011.
(Amends R.S. 41:1216 and 1217.1(B) and R.S. 56:30.3(B); adds R.S. 41:1217(F))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to
the original bill.
1. Added that leases or extensions of leases on DWF lands shall require that
rental payments be adjusted annually by an amount not less than the CPI.
2. Added that present law procedure for offer to current lessee shall apply to
lessees who held a lease with another party, which lease was subsequently
transferred to the state.
Senate Floor Amendments to engrossed bill.
1. Makes technical changes.