HB 305: "An Act relating to the disposal of state land."
00HOUSE BILL NO. 305 01 "An Act relating to the disposal of state land." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 38 is amended by adding a new chapter to read: 04 CHAPTER 14. ALASKA FAMILY LAND ENTITLEMENT ACT. 05 Sec. 38.14.010. SALE AND LEASE OF STATE LAND; EXEMPTION. (a) 06 Notwithstanding any other provision of this title, the commissioner shall sell and lease 07 state land as provided in this chapter until at least 25 percent of all land in state 08 ownership as of the effective date of this Act has been sold or leased under this 09 chapter. 10 (b) Land may not be selected by the department for auction under 11 AS 38.14.050 or otherwise sold or leased under this chapter unless it is unclassified 12 under AS 38.05.300 or, if classified, it is classified as agricultural, forest, grazing, 13 resource management, settlement, or wildlife habitat land. 14 (c) The selection of land by the department for auction under AS 38.14.050
01 and the disposal of land by sale or lease under this chapter is exempt from the 02 requirements of AS 38.04 and AS 38.05. The department shall provide prior public 03 notice as required under the state constitution for disposals or leases of state land. 04 Sec. 38.14.020. SALES AND LEASES SUBJECT TO EXISTING LEASES; 05 COMMISSIONER MAY NOT CONVEY MINERAL OR RESOURCE RIGHTS. (a) 06 A sale or lease of land under this chapter is subject to an existing lease entered into 07 by the department before the sale or lease of the land. A lease affecting land sold or 08 leased by the state under this chapter is subject to renewal or extension as provided 09 in the terms of the lease or the law under which the lease was issued. 10 (b) In a sale or lease of land under this chapter, the commissioner may not 11 convey a mineral or resource right that the state is required to maintain under a law 12 of this state or of the United States. A sale or lease of land under this chapter must 13 provide for access to these minerals or resources by the state or a lessee or other 14 designee of the state. 15 Sec. 38.14.030. ELIGIBILITY TO PURCHASE OR LEASE LAND. A person 16 may not purchase or lease land under this chapter unless the person 17 (1) is a resident of the state under AS 01.10.055 and has been a 18 resident of the state for one year; 19 (2) is an individual who is at least 18 years of age at the time of the 20 purchase or lease; 21 (3) at the time of purchase or lease, on a form provided by the 22 department that bears a notification that a false statement is punishable under 23 AS 11.56.210, the person certifies that the person 24 (A) meets the eligibility requirements of this section and 25 AS 38.14.040; 26 (B) understands that the state or a political subdivision of the 27 state is not required to provide on-site schools for the land to be acquired and 28 that the person may not require the state to provide on-site schools; 29 (C) understands that the state is not required to construct or 30 maintain roads to the land to be acquired and that the person may not require 31 the state to construct or maintain roads to the land to be acquired; and
01 (D) will take good care of the property and of the environment 02 to the best of the person's ability. 03 Sec. 38.14.040. MAXIMUM ENTITLEMENT TO PURCHASES OR LEASES. 04 (a) During the person's lifetime, a person may purchase or lease a cumulative 05 maximum of 160 acres from the state under this chapter. Except as provided in (b) 06 of this section, the 160 acre limit applies whether or not the person retains ownership 07 of or a leasehold interest in the land originally purchased or leased. 08 (b) Notwithstanding the 160 acre limit under (a) of this section, if a person 09 returns the land to the state, terminates a lease of land from the state, or otherwise 10 provides clear title to the state of land purchased or leased under this chapter, the 11 acreage returned, formerly leased, or otherwise relinquished to the state may be 12 replaced, in whole or in part, by purchase or lease under this chapter. 13 (c) Under regulations adopted by the department, the commissioner may reduce 14 the acreage credit allowed under (b) of this section to compensate the state for 15 diminution in value of the land returned to the state that is caused by the person 16 seeking the credit. 17 Sec. 38.14.050. SALE OF LAND BY PUBLIC AUCTION. (a) Within 60 18 days of the effective date of this Act, the department shall select not more than 19 2,000,000 acres of state land to be sold at public auction as provided in this section. 20 The department shall include in the initial selection all land that the department has, 21 before the effective date of this Act, identified for disposal and included in the land 22 disposal bank. After the initial 2,000,000 acres have been sold, the department shall 23 select additional land for sale under this section until the requirement of 24 AS 38.14.010(a) has been met. Not more than 1,000,000 acres of state land may be 25 included in any one subsequent selection under this subsection. 26 (b) At least once every 90 days until the land is disposed of, the department 27 shall offer for sale by public auction not less than 100,000 acres of land selected under 28 (a) of this section. Except as provided in AS 38.14.130 and 38.14.140, the land shall 29 be in parcels of not less than 40 acres nor more than 160 acres, more or less. Upon 30 payment in full of the purchase price and the security required by AS 38.14.190 by 31 cash, certified check, or money order, a successful bidder at the auction shall receive
01 fee simple title to the land. A minimum bid of not less than $100 per acre shall be 02 required by the department for purchase at public auction. 03 (c) The land offered for sale under (b) of this section may be offered based 04 upon an aliquot parts description. The state is not required to provide a survey by a 05 licensed surveyor. 06 (d) A parcel of land offered for sale at public auction under (b) of this section 07 that is not sold at the auction may be purchased after the sale for not less than $100 08 per acre. 09 (e) The department shall offer a purchaser of land under this section the option 10 of paying in full at time of purchase or on terms, requiring a 10 percent down payment 11 and payment of the balance of the purchase price over the next 15 years at an annual 12 interest rate of not more than six percent. 13 (f) A purchase of land under this chapter that is made in violation of 14 AS 38.14.030 - 38.14.040 is void as of the date of sale and does not give the 15 purchaser, a subsequent purchaser, a lessee, a devisee, or other person a right to the 16 land, an interest in the land, or the return of the purchase price paid to the state for the 17 land. 18 Sec. 38.14.060. LEASES OF LAND. (a) Beginning 60 days after the 19 effective date of this Act, a person may lease a parcel of land that has not been 20 selected for auction by the state under AS 38.14.050 of not less than 40 acres nor more 21 than 160 acres, except as provided in AS 38.14.130 and 38.14.140, by marking the 22 location of the parcel of land on the ground under (b) of this section and by filing with 23 the department the certification required under AS 38.14.030, the legal description of 24 the land sought to be acquired by lease, a statement of the length of lease, not greater 25 than 55 years, desired by the person, and payment by cash, certified check, or money 26 order of the (1) first year's lease fee of $10 per acre, but not less than $400 per parcel, 27 and (2) security deposit required by AS 38.14.190. Within 30 days of the filing, the 28 department shall notify the person if the land selected is available for lease. If the 29 land is available for lease, the department shall at the time of notification issue to the 30 person a lease that complies with the requirements of this chapter. If the land is not 31 available for lease, the department shall refund the first year's lease fee to the person.
01 (b) A person leasing a parcel of land under (a) of this section shall mark the 02 location of the parcel on the ground by 03 (1) posting at the northeast corner of the parcel of land plain sign or 04 notice containing 05 (A) the name of the person; 06 (B) the date of the location; and 07 (C) the approximate bearing of corners and angle posts of the 08 parcel and the distances between them; and 09 (2) erecting at each corner or angle of the parcel substantial monuments 10 of stone or setting posts, not less than three feet in height nor less than three inches 11 in diameter hewn and marked with the name of the person, the position or number of 12 the monument, and the direction of the boundary lines, and by cutting out, blazing, or 13 marking the boundary lines so that they can be readily traced. Where it is 14 impracticable to place a monument at its true position, a witness monument shall be 15 erected and marked to indicate the true position of the corner or angle. 16 (c) A lease issued by the department under this chapter must contain a 17 provision permitting the lessee to purchase the land subject to the lease anytime after 18 one year has elapsed since the issuance of the lease. A purchase of leased land under 19 this section shall be at the fair market value of the land, but not less than $100 per 20 acre. 21 (d) A lease acquired under this section is freely transferable and may be sold 22 or subleased and is not terminated by the death of the lessee. 23 (e) A lease of land acquired by a person in violation of AS 38.14.030 - 24 38.14.040 is void as if the lease had never been entered into by the state and does not 25 give the lessee or a subsequent purchaser, sublessee, or devisee, any right to the land, 26 the purchase of the land, or the refund of payments made under the lease. 27 (f) Before issuing a lease under this section, the department may require the 28 preparation of an appraisal of the land sought to be leased. An applicant for a lease 29 may provide and pay for the appraisal. 30 Sec. 38.14.070. RESTRICTIONS ON REMOVAL OF SURFACE 31 RESOURCES. (a) A person purchasing land under this chapter, for the first three
01 years immediately following the purchase of the land, or a person leasing land under 02 this chapter during the term of the lease, may not remove timber, gravel, or other 03 surface materials from the land except for 04 (1) personal use on the land; or 05 (2) exchanges with adjoining landowners for personal use on the 06 adjoining land. 07 (b) After three years following the purchase of land under this chapter, a 08 person may remove timber, gravel, or other surface materials for any purpose, except 09 that if it is for a commercial purpose other than as provided in (a)(1) - (2) of this 10 section, the person shall pay the state a royalty fee equal to 20 percent of the proceeds 11 received from the removal. 12 Sec. 38.14.080. SCHOOLS. The state, a municipality, or a rural educational 13 attendance area does not have a duty to provide on-site schools for a parcel of land 14 purchased or leased by a person under this chapter. 15 Sec. 38.14.090. RIGHTS-OF-WAY AND EASEMENTS. The state shall retain 16 a 100 foot right-of-way along each section line of land sold or leased under this 17 chapter and shall reserve other rights-of-way and easements as are necessary to reach 18 and use public water and public and private land. 19 Sec. 38.14.100. ROADS; ACQUISITION BY STATE. (a) The state does not 20 have a duty to construct or maintain roads to a parcel of land purchased or leased by 21 a person under this chapter. A person acquiring land by purchase or lease under this 22 chapter may construct a road from an existing state or municipal road to the land if 23 the proposed route is approved by the department or a municipality and the road is 24 constructed to standards set by the Department of Transportation and Public Facilities. 25 (b) A road constructed by a person who purchases or leases land under this 26 chapter that is built on the state's section line right-of-way is open to the public and 27 the purchaser or lessee of the land may not exclude the public from its use. 28 (c) A road constructed by a person who purchases or leases land under this 29 chapter becomes a public road, without compensation to the builder of the road, if the 30 state or a municipality agrees to accept the road and undertake responsibility for the 31 maintenance of the road.
01 Sec. 38.14.110. APPLICABILITY OF MUNICIPAL ZONING LAWS AND 02 THE ALASKA COASTAL MANAGEMENT PROGRAM. Notwithstanding any other 03 provision of law, land available for disposal under this section is not subject to 04 municipal zoning laws or regulations or AS 46.40 (Alaska Coastal Management 05 Program). 06 Sec. 38.14.120. LAND NOT SUBJECT TO SALE OR LEASE. The following 07 land is not subject to sale or lease under this chapter: 08 (1) land identified under AS 16.20, AS 41.15.300 - 41.15.330, 09 AS 41.17, AS 41.21, and AS 41.23; 10 (2) land used as an administrative site by the state. 11 Sec. 38.14.130. LIMITATION ON ACQUISITION OF LAND NEAR 12 WILLOW. The department shall identify an area of not more than 66,000 acres near 13 Willow within which area a person may not acquire by purchase or lease under this 14 chapter more than 40 acres of land, more or less. 15 Sec. 38.14.140. SOUTHEAST ALASKA LAND SOUTH OF 60 DEGREES 16 NORTH LATITUDE. (a) A person may not purchase or lease more than one acre of 17 land, more or less, under this chapter in Southeast Alaska south of 60 degrees north 18 latitude. 19 (b) Notwithstanding AS 38.14.050 and 38.14.060, the department shall offer 20 land for sale under AS 38.14.050 and a person may lease land under AS 38.14.060 in 21 one acre parcels, more or less, in the area described in (a) of this section. 22 Sec. 38.14.150. SURVEYS. A person who acquires land by purchase or lease 23 under this chapter shall, within 10 years of acquiring the land, have the land surveyed 24 at the person's expense. The survey shall be conducted as provided in regulations 25 adopted by the department. The person shall provide a copy of the survey to the state 26 without charge. 27 Sec. 38.14.160. AGRICULTURAL LAND. Notwithstanding AS 38.14.050 and 28 38.14.060, land that has been previously classified as agricultural by the department 29 and that has been previously sold or leased as agricultural land, shall be first offered 30 to the current lessees of the land, if any, subject to the requirements of AS 38.14.030 31 and 38.14.040, for purchase or lease under this chapter.
01 Sec. 38.14.170. LAND SUBJECT TO EXISTING LEASES. (a) 02 Notwithstanding AS 38.14.050 and 38.14.060, land that is subject to an existing 03 surface estate lease or subsurface or mining lease shall be first offered to the current 04 lessee of the land, if any, subject to the requirements of AS 38.14.030 and 38.14.040 05 for purchase or lease under this chapter. 06 (b) To accept an offer under (a) of this section, the lessee shall purchase or 07 lease the land within 180 days of the offer at the fair market value of the land, but not 08 less than $100 per acre. The department may require the preparation of an appraisal 09 at the lessee's expense. 10 Sec. 38.14.180. NO LIABILITY FOR CONTAMINATION OF SOIL OR 11 WATER BEFORE PURCHASE OR LEASE. Notwithstanding any other provision of 12 law, a person who purchases or leases land under this chapter is not liable under state 13 law for contamination of soil or water occurring before the person's purchase or lease. 14 Sec. 38.14.190. SECURITY DEPOSIT. A person who purchases or leases 15 land under this title shall at the time of the purchase or lease pay to the state a 16 nonrefundable security deposit in the amount of $100 for each 40 acres or less 17 purchased or leased to ensure the person's compliance with the requirements of this 18 chapter and other laws. The payment of this security deposit does not immunize the 19 person from liability for violations of this chapter or other laws nor limit the ability 20 or authority of the state to require compliance with and to enforce the laws of the 21 state. 22 Sec. 38.14.200. ADDITIONAL TERMS AND CONDITIONS. The department 23 may not impose terms and conditions in excess of those provided in this chapter or by 24 the constitution. 25 Sec. 38.14.210. APPROPRIATION OF MONEY RECEIVED. The legislature 26 may appropriate money received from sales or leases of state land under this chapter 27 to the Alaska Permanent Fund. 28 Sec. 38.14.300. DEFINITIONS. In this chapter, 29 (1) "commissioner" means the commissioner of natural resources; 30 (2) "department" means the Department of Natural Resources; 31 (3) "recorder" and "recording district" have the meanings given in
01 AS 40.17.900. 02 * Sec. 2. AS 29.65 is amended by adding a new section to read: 03 Sec. 29.65.075. DISPOSAL OF LAND CONVEYED; REVERSION TO 04 STATE OF UNDISPOSED LAND. A municipality that has received or receives land 05 from the state under this title shall, within five years of the effective date of this Act, 06 sell 50 percent of the land received to private parties, and within 10 years of the 07 effective date of this Act shall sell 66 percent of the land received to private parties. 08 If a municipality fails to sell land as required by this section, all of the land the 09 municipality has received from the state that has not been sold reverts to state 10 ownership and is available for sale or lease as provided in AS 38.14. 11 * Sec. 3. If two or more persons file for a lease on the same parcel of land under 12 AS 38.14.060 within the first seven days after 60 days after the effective date of this Act, the 13 department shall conduct a lottery for those filing within 30 days. The winner of the lottery 14 shall be entitled to lease the land if the person otherwise meets the requirements of 15 AS 38.14.030 and 38.14.040.