HB 129: Fixing the (public) Land Bank — 2025

[3-21-25 Update: The Senate rejected an amendment to HB 129. The Senate Resources Committee had previously suggested amendment to HB 129, to extend access to certain Land Bank funds only to July 1, 2028, effectively providing a two year extension for ~$31 million worth of proceeds from the sale of Idaho Endowment Lands. As a result, the future prospects for the bill are unclear.]

Reps. Ilana Rubel (D-Boise), John Vander Woude (R-Nampa), Mark Sauter (R-Sandpoint),  and Senator Ben Adams (R-Nampa), and Treg Bernt (R-Meridian) introduced House Bill 129 to extend the timeframe for the Idaho Land Board to use funds generated from the sale of state public lands, known as Endowment Lands. When state lands are sold, most recently from the sale of many cabin sites around Priest and Payette Lakes, the Idaho Land Board has five years to purchase new lands. If the monies aren’t spent, the funds automatically transfer to the Permanent Fund, which is made up of stocks, bonds, and other investments on Wall Street. The current balance of the Land Bank is $85.5 million.

Under HB 129, the five-year period would be extended to 10 years. This extension would enable the Land Board, which is made up of the Governor, Secretary of State, Attorney General, Schools Superintendent and Controller, to identify revenue-generating lands that can provide returns for endowment beneficiaries, including public schools, universities, and state hospitals. If the proceeds from the land sales haven’t been used in 10 years to acquire new public lands, the proceeds would be deposited in the Permanent Fund.

Over the past 10 years, $133 million of land sale proceeds have been transferred to Wall Street, while $100 million has been used to acquire new lands. While the Land Board and the Idaho Department of Lands have been seeking other lands to purchase, the volatility of the real estate market has delayed acquisition. If HB 129 fails to pass, $8.2 million would be transferred to Wall Street in 2025, and $22.8 million would be transferred in the ensuing fiscal year.