72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1295
 
                         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)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Requires Division of State Lands to grant easement or license
over submersible lands to person with permit from Water Resources
Director if proposed use in permit is for irrigation or domestic
use.
 
                        A BILL FOR AN ACT
Relating to use of state-owned lands; creating new provisions;
  and 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
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) Notwithstanding the permissive nature of the
authority of the division under paragraph (a) of this subsection,
the division must grant an easement or license to a person
holding a water right permit from the Water Resources Director if
the proposed use under the permit is for irrigation or domestic
use. An easement or license granted under this paragraph shall
continue until the permit is canceled pursuant to ORS 537.260 or
the water right is subject to forfeiture pursuant to ORS 540.610.
The division may not charge for an easement or license provided
under this paragraph.
  (c) + }   { - Such - }  An easement or license   { - shall - }
 { + 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.
  (4) All easements or licenses 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
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.
  SECTION 2.  { + The amendments to ORS 274.040 by section 1 of
this 2003 Act apply to easements or licenses issued by the
Division of State Lands on or after the effective date of this
2003 Act. + }
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