White Paper: Option for Land Protection Component

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Land Entity White Paper November 30, 1999 d Constraints on an Entity Owning Larrd Under Nebraska Law There are a variety of legal entities available to create in Nebraska. Intergovernmental state corporate bodies are discussed above. In addition, there are for-profit corporations, non- profits, partnerships and limited Iiability partnerships. Of these, only non-profit entities are of any interest to the Program. Article XIi, Sec. 8 of the Nebraska Constitution states that na corporation or syndicate shall acquire an interest in any title to real estate used for farming or ranching. Non-profit corparations are an exceptivn to this prohibition. The term "syndicate" is defned very broadiy with the intention to exclude anyone other than farmers living on the land and their families. As a practicai matter, if the Land Entity wants to hald land, it needs to be a non-profit. Nebraska nan-prafit law generally treats all non-profits very similarly, no matter which sub-section of the tax cade justifies their non-profit status. There is broad flexibility in drafting by-laws, designating boards of directors and voting rights, providing for future revisions of by- laws, and other matters of practical interest in setting up an ogerating a non-profit. Non-profits are expected to act within their by-iaws or charter. 3. State vf Wyoming u. Conrtraints on Financial Participation The Wyoming Constitution, Article 3, Sec. 36, provides that "[n]o apprapriation shall be made for charitable, industrial, educational or benevolent purposes to any person, corporation or community not under the absolute control of the state ...." This ciause of the Constitutian has generally been interpreted as prohibiting outright gifts, or state suppart of religious institutions. Provided some government purpose is served, agpropriatians may be made to entities not under the direct cantrol of the State of Wyoming. E.. ., State v, Bd. of CountY Comm'rs, 55 P. 451 (1898) (funding the state penitentiary which was then run by a charitable institution). Wath respect ta the proposed Program, Wyoming expects to satisfy the ESA obligations of its water users through the Program. This furthers the purposes assigned to the Wyoming Water Development Cvmmission to manage and develop Wyoaning's water resources. b. Constraints vn Intergovernmental Effarts The authority af Wyoming agencies to act cooperatively with federal agencies is set forth in the Intergovernmental Cooperatian Act, Wyoming Stat. Ann., Sec. 16-1-101. This statute is very similar to the Nebraska Interlocai CoaperatiQn Act, except that it does not explicitly authorize interstate ageements - only intrastate or state/federal cooperation. As in Nebraska, joint agreements tQ coaperate can lead ta creation of a legat entity (here a public corporation) or an adrninistrative board. Participating agencies must be represented on any board. Sec. 16-1- 105, Fwnds transferred to any legal ar administrative entity created under the Act can be up to A- 8