72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 82
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senator Kenneth Messerle,
Representative Joanne Verger)
CHAPTER ................
AN ACT
Relating to use of state-owned lands; amending ORS 274.040.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 274.040 is amended to read:
274.040. (1) Except as provided in ORS 274.043 (1) to (3), in
ORS 274.085 for leases of submersible lands acquired as an
investment for the Common School Fund, in ORS 274.530 (1) for
leases of submersible lands of less than one year's duration, in
ORS 274.530 (3) for licenses of less than three years' duration
and in subsections (2) and (3) of this section, submersible lands
owned by the State of Oregon may be leased only to the highest
bidder, bidding at least the minimum amount designated by the
Division of State Lands under subsection (6) of this section for
the lease of any such lands, after being advertised not less than
once each week for two successive weeks in one or more newspapers
of general circulation in the county in which the lands are
situated. However, any owner of lands abutting or fronting on
such submersible lands shall have the preference right to lease
the lands unless the submersible lands are occupied by a person
claiming the right of occupancy under a conveyance recorded
before January 1, 1981, from the present owner or predecessor in
interest of lands abutting or fronting the submersible lands. If
so, the occupant of the submersible lands shall have the
preference right to lease the lands. An easement or license
related to utility service on the submersible lands
{ - shall - } { + does + } not establish a preference right
under this subsection. The lands shall be leased for the amount
designated by the division under subsection (6) of this section
as the minimum amount for the lease of any such lands. The
preference provided in this subsection applies to any lease of
submersible land for one year or more offered or issued under ORS
274.530. The preference provided in this subsection does not
apply to any lease offered or issued by the division under ORS
274.705 to 274.860.
(2) Submersible lands owned by the State of Oregon that are
determined by the State Land Board to be available for sale may
be sold only to the highest bidder, after being advertised not
less than once each week for two successive weeks in one or more
Enrolled Senate Bill 82 (SB 82-B) Page 1
newspapers of general circulation in the county in which the
lands are situated. However:
(a) No such lands shall be sold for less than for a fair
appraised value as determined by an appraiser appointed by the
Division of State Lands.
(b) All sales of such submersible lands shall be approved by
the State Land Board.
(c) Any owner of lands abutting or fronting on such submersible
lands shall have the preference right to purchase such lands for
the fair appraised value provided that the sale of such lands be
approved by the State Land Board.
(3) { + (a) + } The division may grant { + , + } to any person
holding a permit from the Water Resources Director authorizing
the impoundment for beneficial use of the waters of any lake or
stream, easements { - or licenses - } over submersible lands
for flowage and storage of waters, and for the construction,
maintenance and operation of any structures or facilities
necessary for the use of the water under the terms of the permit
upon payment of just compensation by the grantee.
{ + (b) In addition to the authority of the division under
paragraph (a) of this subsection to grant easements over
submersible lands, a person holding a water right permit, water
right certificate, proposed or final order approving a water
right permit or court decree evidencing a water right may occupy
state-owned submersible lands for the construction, maintenance
and operation of any structure or facility necessary for the use
of water if the proposed use under the permit, certificate, order
or decree is for irrigation or domestic use. The division may not
charge for the occupation of state-owned submersible lands
pursuant to this paragraph, nor may the division require that a
person obtain written documentation to substantiate the
permission granted under this paragraph. Upon request by the
division, the Water Resources Department shall provide
information to the division regarding any change of use of the
water right. A person may continue to occupy state-owned
submersible lands pursuant to this paragraph until:
(A) The water right permit is canceled pursuant to ORS 537.260;
(B) The water right is canceled pursuant to ORS 540.641; or
(C) The water is no longer being applied to irrigation or
domestic use.
(c) + } { - Such - } An easement or { - license shall - }
{ + the permission granted under this subsection may + } not be
construed to be a sale or lease of the submersible lands within
the meaning of subsections (1) and (2) of this section.
{ + (d) A person granted an easement or permission to use or
occupy state-owned submersible lands under this subsection shall
indemnify and hold harmless the state from all liability and
claims arising from or attributable to the use or occupation. + }
(4) All easements or { - licenses - } { + the
permission + } granted pursuant to subsection (3) of this section
shall be subject to conditions that will { - assure - }
{ + ensure + } the safety of the public and the preservation of
economic, scenic and recreational values and to lawful rules
promulgated by state agencies affected by the activities of the
grantee { - or licensee - } .
(5) Nothing in this section affects the provisions of ORS
509.505, 509.510, 511.606 to 511.806, 622.270 or 622.320 to
622.350.
(6) The division shall designate the minimum acceptable amount
for the lease of any submersible lands otherwise authorized by
Enrolled Senate Bill 82 (SB 82-B) Page 2
law, other than any lease offered or issued by the division under
ORS 274.705 to 274.860.
(7) For the purpose of sale, the value of state-owned
submersible lands shall be determined by an appraiser appointed
by the Division of State Lands.
(8) The act of any person entering into an agreement with the
division under this section or ORS 274.530 for the lease of
submersible lands shall not be considered a waiver by such person
of any claim of ownership in the submersible lands described in
the agreement.
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Passed by Senate April 29, 2003
Repassed by Senate May 28, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 16, 2003
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Speaker of House
Enrolled Senate Bill 82 (SB 82-B) Page 3
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 82 (SB 82-B) Page 4