H.B. No. 0187

Conservation easements.

Sponsored By: Representative(s) Nicholas, Hageman, Prosser and Ross and Senator(s) Hanes, Schiffer and Vasey

AN ACT relating to real property; providing for conservation easements as specified; providing for creation and conveyance of the easement as specified; providing definitions; providing for actions and validity; reserving rights of the state regarding eminent domain and taxing interests created; and providing for an effective date.

1/20/2003 Bill Number Assigned

1/22/2003 H Received for Introduction

1/22/2003 H Introduced and Referred to H05

2/4/2003 H05 Recommended Do Pass

ROLL CALL

Ayes: Representative(s) Hageman, Harvey, Powers, Prosser and Slater

Nays: Representative(s) Brechtel, Diercks, Morgan and Semlek

Ayes 5 Nays 4 Excused 0 Absent 0 Conflicts 0

2/4/2003 H Placed on General File

2/7/2003 H Passed CoW

2/10/2003 H Passed 2nd Reading

2/11/2003 H Passed 3rd Reading

ROLL CALL

Ayes: Representative(s) Alden, Anderson, R., Bagby, Baker, Berger, Buchanan, Bucholz, Childers, Cohee, Cooper, Esquibel, Hageman, Harshman, Harvey, Hinckley, Iekel, Illoway, Jansen, Johnson, W., Jones, Jorgensen, Landon, Latta, Law, Lockhart, Luthi, McMurtrey, McOmie, Meuli, Nicholas, Olsen, Osborn, Parady, Powers, Prosser, Reese, Ross, Simpson, Slater, Tipton, Walsh, Warren and Wasserburger.

Nays: Representative(s) Boswell, Brechtel, Diercks, Edwards, Gentile, Gilmore, Johnson, L., Martin, Meyer, Miller, D., Morgan, Petersen, Philp, Robinson, Semlek, Thompson and Wostenberg.

Ayes 43 Nays 17 Excused 0 Absent 0 Conflicts 0

2/11/2003 S Received for Introduction

2/12/2003 S Introduced and Referred to S01

2/21/2003 S01 Recommended Do Pass

ROLL CALL

Ayes: Senator(s) Burns, Decaria, Hanes and Meier

Excused: Senator(s) Goodenough

Ayes 4 Nays 0 Excused 1 Absent 0 Conflicts 0

2/21/2003 S Placed on General File

2/28/2003 S Amendments Considered

HB0187SW001/F FAILED

Page 4-after line 20 Insert:

"(e) No conservation easement may restrict generally accepted agricultural practices, unless the instrument creating the easement specifically enumerates and identifies in red, ten-point or larger type any species, chemicals or other specific practice restricted by the easement. Any type or kind of restriction whatsoever of generally accepted agricultural practice not listed pursuant to this subsection shall not be restricted in any manner.

(f) The holder of a conservation easement shall file in the office of the secretary of state a statement appointing, and shall maintain, a registered agent in Wyoming.". MEIER

HB0187SW002/A ADOPTED

Page 4-lines 12 through 14 Delete and renumber.

Page 4-line 16 Delete "(d)" insert "(c)". KUNZ

2/28/2003 S Passed CoW

3/1/2003 S Laid Back Without Prejudice

3/3/2003 S Amendments Considered

HB0187S2001/F FAILED

Page 4-after line 20 Insert and renumber:

"(d)  No conservation easement may restrict generally accepted agricultural practices unless the instrument creating the conservation easement specifically enumerates in bold, ten-point or larger type any burden placed on generally accepted agricultural practices and the owner of the burdened real property has placed his initials adjacent to this language. Any burden on generally accepted agricultural practices not enumerated and initialed in accord with this subsection shall not apply.". MEIER

HB0187S2003/F FAILED

Page 4-After line 20 insert and renumber:

"(d)  A conservation easement may contain such provisions the grantor may include to qualify the donation or bargain sale of the easement for federal tax benefits available for charitable contributions.". SCHIFFER

HB0187S2004/A ADOPTED

Delete the Kunz Committee of the Whole Amendment (HB0187SW002/A) and the Meier Second Reading Amendment (HB0187S2002/A) entirely and further amend as follows:

Page 1-line 4 After "validity;" insert "providing for termination;".

Page 5-after line 15 Insert and renumber:

"(c) Except as provided by subsection (d) of this section, a conservation easement may be terminated by a court of competent jurisdiction if:

(i) The holder ceases to exist;

(ii) The holder cannot be located after a diligent search; or

(iii) The holder is not capable of making the decisions concerning the easement set forth in subsections (e) and (f) of this section.

(d) The conservation easement shall not be terminated pursuant to subsection (c) of this section if its terms contain a provision which requires that under any of the circumstances set forth in subsection (c), the holder shall be replaced by a similar holder capable of carrying out the functions of the holder under this act. If this provision or a similar provision exists in the terms of the easement, the court shall implement the provision instead of terminating the easement.

(e) After a period of one hundred (100) years from the creation of the easement, which period may be shortened by the terms of the easement and which period shall be zero (0) years unless the easement explicitly contains a period of years for this purpose, the holder may:

(i) Terminate the easement on any part or all of the lands subject to the easement for compensation if the holder determines the compensation will better serve the purposes of the easement;

(ii) Terminate the easement on any part or all of the lands subject to the easement for compensation if the holder determines that continuing the easement no longer serves the purposes for which the easement was established. To the extent practical the compensation shall be used for purposes similar to those for which the easement was established; or

(iii) Eliminate or modify, with or without compensation, restrictions provided by the easement if the restrictions are no longer appropriate to serve the purposes of the easement, provided however, that no additional restrictions may be placed on the use of the land without the consent of the owner of the land.

(f) The holder may terminate or modify the terms of the easement as necessary to accommodate the requests of any entity empowered by law to exercise the power of eminent domain for the purposes for which that power is authorized and shall do so if ordered by a court of competent jurisdiction.

(g) The holder shall file with the secretary of state either the address, both mailing and physical, of its principal office in the state or the name and address of its agent for service of process. If the holder is complying with either of these requirements pursuant to any other law of this state, it shall not have to make any additional filing to comply with this act.".

Renumber as necessary. SCOTT

3/3/2003 S Passed 2nd Reading

3/3/2003 S Suspended Rules

ROLL CALL

Ayes: Senator(s) Anderson, J., Barrasso, Barton, Boggs, Burns, Caller, Cathcart, Coe, Decaria, Devin, Erb, Geis, Hanes, Hawks, Hines, Job, Kunz, Larson, Massie, Mockler, Northrup, Peck, Roberts, Schiffer, Scott, Sessions and Vasey.

Nays: Senator(s) Case and Goodenough.

Excused: Senator(s) Meier

Ayes 27 Nays 2 Excused 1 Absent 0 Conflicts 0

3/3/2003 S Laid Back Without Prejudice

3/4/2003 S Amendments Considered

HB0187S3001/A ADOPTED

Page 5-after line 15 In the Scott Second Reading Amendment (HB0187S2004/A) amend as follows:

In paragraph (c)(iii) created by the amendment, delete "subsections (e) and (f)" insert "subsection (e)".

Delete subsection (e) created by the amendment entirely and renumber subsequent subsections as follows: delete "(f)" insert "(e)"; delete "(g)" insert "(f)". SCOTT

HB0187S3003/A ADOPTED

Page 6-line 7 Before "negative" insert "disclosed". MEIER

HB0187S3004/FC (CORRECTED COPY) FAILED

Page 1-line 4 After "validity;" insert "authorizing taxation;".

Page 1-line 10 Delete "34-1-206" insert "34-1-207".

Page 6-after line 17 Insert and renumber:

"34-1-205. Taxation.

If the land subject to a conservation easement is no longer to be assessed as agricultural land, the conservation easement is evidence of a transfer of property subject to taxation under W.S. 39-11-103. The holder the easement shall be liable for the taxable difference between the value of the land prior to the placement of the conservation easement and the current value of the land. A conservation easement owned by a charitable corporation, charitable association or charitable trust is subject to taxation, regardless of any exemption under W.S. 39-11-105.".

Page 6-line 19 Delete "34-1-205" insert "34-1-206".

Page 7-line 16 Delete "34-1-206" insert "34-1-207". MEIER

HB0187S3006/F FAILED

Page 7-line 20 After "it." insert "As a result of the implementation of this act, there shall be no net gain in federal land ownership in this state.". MEIER

HB0187S3008/A ADOPTED

Page 4-after line 20 Insert and renumber:

"(e) No conservation easement created in this state shall violate the rule against perpetuities.". SCHIFFER

3/4/2003 S Failed 3rd Reading

ROLL CALL

Ayes: Senator(s) Barrasso, Boggs, Burns, Caller, Case, Decaria, Goodenough, Hanes, Hawks, Massie, Mockler, Schiffer, Scott, Sessions and Vasey.

Nays: Senator(s) Anderson, J., Barton, Cathcart, Coe, Devin, Erb, Geis, Hines, Job, Kunz, Larson, Meier, Northrup, Peck and Roberts.

Ayes 15 Nays 15 Excused 0 Absent 0 Conflicts 0