BILL NUMBER: S6320
SPONSOR: MAY
TITLE OF BILL:
An act to amend the environmental conservation law, in relation to
authorizing the commissioner of environmental conservation to enter into
contracts for maple tree tapping and sap production on state lands for a
duration of up to ten years
PURPOSE:
The purpose of this bill is to allow for the leasing of state land up to
ten years, for the purpose of tapping trees and sap production.
SUMMARY OF PROVISIONS:
This bill amends section 9-0505 of the environmental conservation law by
adding a new subdivision 5, allowing the commissioner to lease state
land for up to ten years for tree tapping and sap production.
JUSTIFICATION:
Current law allows the commissioner to lease state lands for up to five
years for logging and the production of other products, including sap
from maple trees. However, maple producers rarely, if ever, take advan-
tage of this opportunity because the return on investment is not worth
the cost and effort of setting up the taps. Only taking into account
the cost for materials, and excluding trucking and labor costs that vary
greatly, maple producers could expect a return on investment (ROI)
around $12.50 per tap per year under a five year lease term. On a ten-
year lease, that ROI more than doubles to nearly $32, making a ten-year
lease a much more economically viable endeavor.
LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS:
Potential revenue increase to the state from new leases
EFFECTIVE DATE:
Immediately
Statutes affected: S6320: 9-0505 environmental conservation law