The Appropriations and Budget Natural Resources Subcommittee voted to pass Senate Bill 951, a measure that would let lessees who make approved improvements on Conservation Land Office (CLO) leased land recoup part of those expenses at the end of a lease.

Representative Archer, who presented the bill, said the provision covers typical on-lease improvements such as fences and water wells and noted many CLO leases are at least five years: "You could be talking about a fence. You could be talking about a water well." He said improvements would be appraised and depreciated by a certified independent appraiser and that the intent is to incentivize investment in currently under-improved leasable land.

Members asked how the reimbursement interacts with new lessees. Representative Hall raised concern about improvements made after a new lease was signed; Archer said improvements must be approved by CLO before construction and that, based on his conversations with CLO and counterpart authors, the committee does not expect a situation where a new lessee would unknowingly inherit unauthorized improvements.

Representative Shaw asked whether a new lessee would face higher lease rates because of existing improvements. Archer said the bill is intended to allow the improving lessee to be reimbursed so lease rates can remain consistent and that formal rules implementation could affect rate-setting. The sponsor said the appraisal and reimbursement process will reduce the disincentive to improve otherwise unserved land.

A motion for a do-pass recommendation passed; the clerk recorded eight yays and two nays and the chair declared the bill passed the subcommittee.