Amends existing law to remove a provision regarding the deduction of rents paid for any year from royalties as they accrue for that year.

Annual mineral lease rent is collected by the Idaho Department of Lands (IDL) as revenue for the Earnings Reserve Fund and covers the Department's administrative costs for the Mineral Leasing Program. Mineral production royalty payments collected by IDL go directly to the Permanent Fund managed by the Endowment Fund Investment Board (EFIB) and cannot be used to cover administrative costs. Current statute allows for mineral lease rent paid for any year to be deducted from the royalties as they accrue for that year. IDL, therefore, transfers monies paid to the Earnings Reserve Fund as rent to the Permanent Fund as royalties in an amount not to exceed the annual rental rate. This process suppresses rent payments and revenue to the Earnings Reserve Fund. This legislation removes the requirement to apply rent payments for any year toward royalties as they accrue which maximizes Earnings Reserve Fund revenue to support the Mineral Leasing Program. This change also simplifies mineral lease administration for the state as the current royalty crediting accounting process requires significant time and effort to track, reconcile, and repost funds. This legislation only applies to new mineral leases and does not affect existing mineral leases under contract.