SSHB 191: "An Act relating to the management and disposal of state land and resources; relating to certain remote parcel and homestead entry land purchase contracts and patents; and providing for an effective date."
00SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 191 01 "An Act relating to the management and disposal of state land and resources; 02 relating to certain remote parcel and homestead entry land purchase contracts and 03 patents; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.04.020(a) is amended to read: 06 (a) The state [COMMISSIONER SHALL ESTABLISH A] land disposal 07 program consists of [BANK CONTAINING] state land identified and classified 08 under adopted regional land use plans for disposal into private ownership. 09 * Sec. 2. AS 38.04.020(b) is amended to read: 10 (b) The state land disposal program [BANK] does not include 11 (1) land nominated for selection or selected by a municipality to satisfy 12 a general grant land entitlement under AS 29.65 or former AS 29.18.201 - 29.18.213; 13 (2) land retained in state ownership for multiple-use management; 14 (3) land where less than a fee simple title has been conveyed;
01 (4) land retained in state ownership under an enactment of the 02 legislature or by the governor or a state agency under authority of law. 03 * Sec. 3. AS 38.04.020(d) is repealed and reenacted to read: 04 (d) On January 15 of the first regular session of each legislature, the 05 commissioner shall report to the legislature on the total acreage of land planned and 06 classified as suitable under this title for 07 (1) settlement purposes, including homestead, commercial, or industrial 08 disposal; 09 (2) agricultural disposal; and 10 (3) grazing leases. 11 * Sec. 4. AS 38.04.020(e) is repealed and reenacted to read: 12 (e) The commissioner may annually submit to the governor an appropriation 13 request for the entire amount of funding estimated to be necessary for each project 14 proposal to allow survey and disposal of land proposed to be offered for (1) homestead 15 staking under AS 38.09; (2) agricultural, commercial, industrial, or other uses under 16 AS 38.05.055 or 38.05.057; or (3) other subdivisions. Each project proposal shall 17 include the general location of the land and the estimated cost of preliminary feasibility 18 studies, engineering design work, right-of-way acquisition, and construction of access 19 roads and capital improvements required by municipal subdivision ordinance or 20 regulation of the platting authority or otherwise necessary to develop and market the 21 land. 22 * Sec. 5. AS 38.04.020(g) is amended to read: 23 (g) The [AFTER JULY 1 OF EACH YEAR, THE] commissioner shall direct 24 the expenditure of money appropriated for the disposal of land in response to requests 25 made under (e) [AND (f)] of this section for the following: 26 (1) Land designated as suitable for homestead disposal shall be 27 [CLASSIFIED AND] surveyed under this chapter and AS 38.05 and made available 28 for staking and lease under AS 38.09. 29 (2) Land designated as suitable for subdivision and homesite disposal 30 shall be surveyed, subdivided, [CLASSIFIED,] and disposed of under this chapter, 31 AS 38.05, and AS 38.08.
01 (3) Land designated agricultural, commercial, industrial, or suitable for 02 other disposal shall be sold under AS 38.05.055 or 38.05.057. 03 * Sec. 6. AS 38.04.020(h) is amended to read: 04 (h) Individual parcels disposed of in subdivisions intended for private 05 residential or recreational use may not exceed five acres unless the commissioner 06 determines that a larger size is necessary to comply with municipal ordinances; [,] to 07 permit the design of a viable subdivision because of topographical features, soil 08 conditions, on-site sewage disposal requirements, or water drainage or supply 09 considerations that are unique to the subdivision; to increase the return to the state 10 from the sale of the parcels; [,] to minimize adverse effect on wildlife, fishery, public 11 recreation, timber, or other significant resources in the area; [,] or to minimize adverse 12 effect on other residential uses in the area. 13 * Sec. 7. AS 38.04.020(i) is amended to read: 14 (i) Nothing in this section prevents the disposal of other land by the 15 commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.070, the issuance of 16 remote cabin permits under AS 38.05.079, AS 38.08, AS 38.09, or other law. 17 * Sec. 8. AS 38.04.021(a) is amended to read: 18 (a) A municipality may apply for financial assistance for the execution of a 19 land disposal program of general grant land entitlements received from the state under 20 AS 29.65 or former AS 29.18.201 - 29.18.213 by submitting a request to the 21 commissioner for inclusion in the request submitted to the governor [LEGISLATURE] 22 under AS 38.04.020(e). A municipality may request financial assistance for expenses 23 of surveying land, designing subdivision plats, installing improvements required by 24 municipal ordinance or regulation of the local platting authority, and other reasonable 25 direct costs of land disposal. 26 * Sec. 9. AS 38.04.021(b) is amended to read: 27 (b) A request by a municipality under this section must be accompanied by 28 (1) a schedule for the disposal of municipal land for the next five years; 29 the schedule shall be based on an assessment of the demand for private land within the 30 municipality [AND INCLUDED IN THE ASSESSMENT SUBMITTED UNDER 31 AS 38.04.020(f)];
01 (2) an estimate of the number of acres of municipal land that the 02 municipality plans to dispose of during each fiscal year of the five-year period; 03 (3) a description of the methods to be used for the disposal of 04 municipal land and the terms under which it will be offered to the public; and 05 (4) a description of the municipal land that the municipality plans to 06 dispose of each fiscal year during the five-year period. 07 * Sec. 10. AS 38.04.030 is amended to read: 08 Sec. 38.04.030. LAND AVAILABILITY PROGRAMS. Programs that may 09 be used by the director to make the state's land surface available for private use under 10 AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 11 estate, including conveyance of agricultural use rights; leasing; [OPEN-TO-ENTRY;] 12 homesiting; homesteading; permitting for construction and occupation of cabins in 13 isolated locations on land retained in state ownership; and other methods as provided 14 by regulation or other law. Notwithstanding a contrary provision of this title, a 15 land availability program adopted by regulation must provide for competitive 16 disposal, based on no less than fair market value, to serve the best interests of the 17 state. 18 * Sec. 11. AS 38.04.035 is amended to read: 19 Sec. 38.04.035. CRITERIA FOR PROGRAM SELECTION. In determining 20 which land availability program is appropriate for state land in different locations, the 21 director shall be guided by the following criteria: 22 (1) to cover public costs associated with private land use and to provide 23 the public with a fair return for publicly owned property, conveyance of state land to 24 private parties shall [SHOULD] be at fair market value except where otherwise 25 authorized by statute, or by an administrative regulation the adoption of which is 26 specifically permitted by statute; 27 (2) sale or lease programs should be used where land is readily 28 accessible to a major community center or where, because of a prime location on 29 waterfront or a transportation route or some other location characteristic, land has 30 relatively high real estate value; 31 (3) sale programs are preferred but lease programs should be used
01 (A) where special land use controls are required and there is a 02 high public interest in having certain types of land used for particular purposes; 03 (B) when the intended use is a temporary one; 04 (C) in commercial or industrial situations when a leasehold can 05 provide cash flow advantages to the lessee; 06 (D) when a unique location with special public values is 07 involved, as in a deep water port, hydroelectric site, or aquaculture facility; 08 (E) where current demand for private use is high, but 09 projections suggest that, in the future, the land may be more valuable for public 10 use, as in accessible waterfront recreation areas; 11 (4) for enabling isolated cabin development in remote locations where 12 survey and conveyance is impractical at the anticipated time of cabin development, 13 or where disposal of land would cause potential conflicts with other resources and 14 uses, or where a long-range interest in public ownership and use exist, a system for 15 cabin permits on public land may be used; 16 (5) limited or conditional title may be granted when the state's best 17 interest so dictates; among other things, title limitations may include grants of 18 agricultural interest only, retention of development rights, and retention of scenic or 19 other easements; a conditional title may be tied to a development schedule or other 20 standards of performance. 21 * Sec. 12. AS 38.05.050 is amended to read: 22 Sec. 38.05.050. DISPOSAL OF LAND FOR PRIVATE OWNERSHIP. The 23 commissioner shall determine the land to be disposed of for private use. The 24 commissioner shall determine the time and place of disposal. An auction sale, a 25 lottery sale, or a disposal of land for homesites may [SHALL] be held in a community 26 that is near the land to be sold or disposed of. 27 * Sec. 13. AS 38.05.055 is amended to read: 28 Sec. 38.05.055. AUCTION SALE PROCEDURES. Unless another method of 29 sale is required under this chapter, [AS 38.07, OR] AS 38.08, or AS 38.09, the sale 30 of state land shall be made at public auction to the highest qualified bidder as 31 determined by the director. The director may accept bids and sell state land under this
01 section at no less than 70 percent of the appraised fair market value of the land. [A 02 BIDDER MUST APPEAR IN PERSON AT THE AUCTION UNLESS MEDICAL 03 REASONS, ATTENDANCE AT SCHOOL, OR MILITARY SERVICE OUTSIDE 04 THE STATE PREVENT ATTENDANCE.] A bidder may be represented by an 05 attorney or agent at the auction [IF THE LAND OFFERED FOR DISPOSAL IS 06 COMMERCIAL, INDUSTRIAL, OR AGRICULTURAL LAND]. An aggrieved 07 bidder may appeal to the commissioner within five days after the sale for a review of 08 the director's determination. The sale shall be conducted by the director and at the 09 time of sale the successful bidder shall deposit an amount equal to five percent of the 10 purchase price. The director shall immediately issue a receipt containing a description 11 of the land or property purchased, the price bid, and the amount deposited. The 12 receipt shall be acknowledged in writing by the bidder. 13 * Sec. 14. AS 38.05.057(a) is amended to read: 14 (a) The commissioner may dispose of land, including land limited to use for 15 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 16 the fair market value of the land as determined by the commissioner. The 17 commissioner may sell land by lottery for less than the fair market value of the land 18 on a determination that scarcity of land for private use in the area of the land to be 19 sold has resulted in unrealistic land values. [THE COMMISSIONER SHALL 20 CONSULT WITH THE ASSESSOR OF A MUNICIPALITY BEFORE 21 DETERMINING THE PURCHASE PRICE FOR LAND THAT IS LOCATED IN 22 THE MUNICIPALITY AND THAT IS TO BE SOLD UNDER THIS SECTION.] The 23 lottery shall be conducted in public by the commissioner. A [AN APPLICANT MAY 24 NOT BE SELECTED TO PURCHASE LAND UNLESS THE APPLICANT IS 25 PRESENT ON THE DATE AND AT THE PLACE THAT THE LOTTERY IS 26 CONDUCTED UNLESS MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 27 MILITARY SERVICE OUTSIDE THE STATE PREVENT ATTENDANCE. AN 28 APPLICANT MAY BE REPRESENTED BY AN AGENT ON THE DAY OF THE 29 LOTTERY IF THE LAND OFFERED FOR SALE IS COMMERCIAL, 30 INDUSTRIAL, OR AGRICULTURAL LAND. ON THE DAY OF THE LOTTERY 31 A] purchaser selected by lot shall deposit an amount equal to five percent of the
01 purchase price within 30 days after receiving notification of the selection. 02 * Sec. 15. AS 38.05.065(a) is amended to read: 03 (a) The contract of sale for land sold at public auction under AS 38.05.055 04 shall require the remainder of the purchase price to be paid in monthly, quarterly, or 05 annual installments over a period of not more than 20 years, with interest at the 06 [PREVAILING] rate provided in (i) of this section [FOR REAL ESTATE 07 MORTGAGE LOANS MADE BY THE FEDERAL LAND BANK FOR THE FARM 08 CREDIT DISTRICT FOR ALASKA AT THE TIME THE CONTRACT IS SIGNED]. 09 Installment payments plus interest shall be set on the level-payment basis. 10 * Sec. 16. AS 38.05.065(b) is amended to read: 11 (b) The contract of sale for land sold under AS 38.05.057 or under former 12 AS 38.05.078 shall require the remainder of the purchase price to be paid in monthly, 13 quarterly, or annual installments over a period of not more than 20 years. Installment 14 payments plus interest shall be set on the level-payment basis. The interest rate to be 15 charged on installment payments is the [PREVAILING] rate provided in (i) of this 16 section [FOR REAL ESTATE MORTGAGE LOANS MADE BY THE FEDERAL 17 LAND BANK FOR THE FARM CREDIT DISTRICT FOR ALASKA AT THE TIME 18 THE CONTRACT IS SIGNED]. 19 * Sec. 17. AS 38.05.065 is amended by adding a new subsection to read: 20 (i) The interest rate for contracts under this section is the prime rate as 21 reported in the Wall Street Journal on the first business day of the month in which the 22 contract is sent to the purchaser for signature, plus 4 percent; however, the total rate 23 of interest may not exceed 13.5 percent. 24 * Sec. 18. AS 38.05.069(e)(2) is repealed and reenacted to read: 25 (2) "adjacent" means that a tract of land has a common boundary or 26 corner to presently held land or is separated from the presently held land only by a 27 physical barrier such as a road or stream. 28 * Sec. 19. AS 38.05.082(b) is amended to read: 29 (b) The director may classify land as subject to leases for fisheries 30 development. In an area or region of the state for which a land use plan has not been 31 adopted under AS 38.04.065, the director may classify land for lease under this section
01 after notice under AS 38.05.945. The director may [SHALL] publicly invite 02 applications for lease of the selected areas. Each application shall be accompanied by 03 an affidavit to the effect that the applicant presently intends to personally utilize the 04 leased area for fishing purposes throughout the term of the lease [THE 05 FOLLOWING SEASON]. If two or more applications are received for the same shore 06 area, the director may offer [SHALL AWARD] the lease at public auction under 07 AS 38.05.075(a). If only one application is received and the appraisal value of the 08 lease is $5,000 a year or less, the commissioner may issue a negotiated lease under 09 AS 38.05.070(b) [TO THE MOST QUALIFIED APPLICANT. IN DETERMINING 10 THE QUALIFICATIONS OF APPLICANTS, THE DIRECTOR SHALL CONSIDER 11 THE LENGTH OF TIME DURING WHICH THE APPLICANT HAS BEEN 12 ENGAGED IN SET NETTING, THE PROXIMITY OF THE PAST FISHING SITES 13 OF THE APPLICANT TO THE LAND TO BE LEASED, THE PRESENT ABILITY 14 OF THE APPLICANT TO UTILIZE THE LOCATION TO ITS MAXIMUM 15 POTENTIAL, AND OTHER FACTORS RELEVANT TO THE EQUITABLE 16 ASSIGNMENT OF THE DISPUTED AREA. IF THE DIRECTOR CANNOT 17 DETERMINE A PREFERENCE BETWEEN CONFLICTING APPLICANTS FOR 18 THE SAME LEASE SITE ON THE BASIS OF QUALIFICATIONS, THE 19 DIRECTOR SHALL SELECT BETWEEN THE APPLICANTS BY LOT. AN 20 AGGRIEVED APPLICANT MAY APPEAL TO THE COMMISSIONER WITHIN 30 21 DAYS FOR A REVIEW OF THE DIRECTOR'S DETERMINATION]. 22 * Sec. 20. AS 38.05.082(c) is amended to read: 23 (c) A lease for set net fishing may be issued for any period not exceeding 10 24 years. If the commissioner determines that the land is not being utilized for the 25 purpose for which the lease is issued, the lease may be declared void. [THE 26 DIRECTOR SHALL ESTABLISH A REASONABLE RENTAL FOR THE LEASE, 27 EQUAL TO THE ADMINISTRATIVE COSTS INVOLVED IN PROCESSING THE 28 LEASEHOLD APPLICATIONS.] 29 * Sec. 21. AS 38.05.083 is repealed and reenacted to read: 30 Sec. 38.05.083. AQUATIC FARMING AND HATCHERY SITE LEASES. 31 (a) The commissioner may offer to the public for lease at public auction under
01 AS 38.05.075 or by negotiation under AS 38.05.070 a site for aquatic farming or 02 related hatchery operations. Before a final decision to issue or renew a lease under 03 this section, the commissioner shall give notice and allow opportunity for comment in 04 accordance with AS 38.05.945, and may hold a hearing to take testimony. Before a 05 final decision to issue or renew a lease under this section, the commissioner shall 06 consider all relevant comment or testimony submitted under this section, AS 38.05.945, 07 or 38.05.946. 08 (b) The commissioner, for good cause, may deny an application for issuance 09 or renewal of a lease under this section, but shall provide the applicant with written 10 findings that explain the reasons for the denial. 11 (c) A site may be leased under this section for not less than the appraised fair 12 market value of the lease. The value of the lease shall be reappraised every five years. 13 (d) A lease under this section may be assigned, but if the assignee changes the 14 use of the site the lease reverts to the state. 15 (e) Before entering into a lease under this section, the commissioner shall 16 require the lessee to post a performance bond or provide other security to cover the 17 costs to the department of restoring the leased site in the event the lessee abandons the 18 site. 19 (f) The commissioner shall adopt regulations establishing criteria for the 20 approval or denial of leases under this section and for limiting the number of sites for 21 which leases may be issued in an area in order to protect the environment and natural 22 resources of the area. The regulations must provide for the consideration of upland 23 management policies and whether the proposed use of a site is compatible with the 24 traditional and existing uses of the area in which the site is located. 25 * Sec. 22. AS 38.05.090 is repealed and reenacted to read: 26 Sec. 38.05.090. REMOVAL OR REVERSION OF IMPROVEMENTS UPON 27 TERMINATION OF LEASES. (a) Unless otherwise agreed to in writing by the 28 commissioner, a lessee shall remove from a former leasehold 29 (1) all personal property, including above-ground and below-ground 30 tanks, transportable buildings, equipment, machinery, tools, and other goods, not 31 belonging to the state, within 30 days after termination of the lease; and
01 (2) all buildings and fixtures, including gravel pads, foundations, and 02 slabs, not belonging to the state, within 60 days after termination of the lease. 03 (b) Unless otherwise agreed to in writing by the commissioner, the lessee shall 04 restore the leasehold to a good and marketable condition, acceptable to the 05 commissioner, within 120 days after termination of the lease. 06 (c) If the lessee does not remove personal property, buildings, and fixtures as 07 required within the time specified under (a) of this section, title to the personal 08 property, buildings, and fixtures that remain automatically vests in the state unless the 09 commissioner elects to remove and dispose of the remaining personal property, 10 buildings, and fixtures of the lessee. The commissioner may assess upon the lessee 11 the cost of removing and disposing of personal property, buildings, and fixtures 12 remaining upon the land. 13 (d) If the lessee does not restore the land within the time period specified 14 under (b) of this section, the commissioner may have the land restored and assess the 15 costs upon the lessee. 16 (e) As part of a lease agreement, and in order to protect the public interest, the 17 commissioner may require terms for removal or reversion of improvements additional 18 to those specified in (a) - (d) of this section. 19 (f) Private residential improvements of a lessee that have become fixtures of 20 the land and that are not removed by that lessee upon termination of the lease shall be 21 purchased by the subsequent purchaser of the land if the improvements were 22 authorized in the former lease or by permit from the director and if they have a net 23 value of more than $10,000. The net value is the value of the improvements as 24 determined by an appraisal approved by the commissioner, less all rents due the 25 department, all costs of restoration under (d) of this section, and all department 26 expenses estimated to be incurred in making the sale. After termination of the former 27 lessee's lease, and at additional times as determined necessary by the commissioner, 28 the value of the authorized residential fixtures shall be determined by an independent 29 appraisal made at the cost of the former lessee. A notice or offer by the state to sell 30 formerly leased land under this subsection must state (1) the appraised value of 31 authorized residential fixtures remaining on the land that must be purchased, and (2)
01 that that cost is included in the purchase price. Out of the proceeds of the sale, the 02 department shall pay to the former lessee the appraised value of the residential 03 improvements, less all rents due the department, all costs of restoration due the 04 department under (d) of this section, and all department expenses incurred in making 05 the sale. 06 (g) Personal property described in (c) of this section is not subject to AS 34.45 07 (Uniform Unclaimed Property Act). 08 * Sec. 23. AS 38.05.130 is amended to read: 09 Sec. 38.05.130. DAMAGES AND POSTING OF BOND. Except for entry 10 to post mining location corners under AS 38.05.195, 38.05.205, or 38.05.245, rights 11 [RIGHTS] may not be exercised by the state, its lessees, successors or assigns under 12 the reservation as set out in AS 38.05.125 until the state, its lessees, successors, or 13 assigns make provision to pay the owner of the land full payment for all damages 14 sustained by the owner, by reason of entering upon the land. If the owner for any 15 cause refuses or neglects to settle the damages, the state, its lessees, successors, 16 assigns, or an applicant for a lease or contract from the state for the purpose of 17 prospecting for valuable minerals, or option, contract or lease for mining coal or lease 18 for extracting geothermal resources, petroleum, or natural gas, may enter upon the land 19 in the exercise of the reserved rights after posting a surety bond determined by the 20 director, after notice and an opportunity to be heard, to be sufficient as to form, 21 amount, and security to secure to the owner payment for damages, and may institute 22 legal proceedings in a court where the land is located, as may be necessary to 23 determine the damages that [WHICH] the owner may suffer. 24 * Sec. 24. AS 38.05.131(a) is amended to read: 25 (a) Unless specifically provided otherwise in AS 38.05.132 - 38.05.134, the 26 provisions of AS 38.05.005 - 38.05.037 [AS 38.05.005 - 38.05.040], 38.05.140(f), 27 38.05.180, 38.05.182 - 38.05.184, and 38.05.920 - 38.05.990 apply to the issuance of 28 oil and gas exploration licenses and leases under AS 38.05.132 - 38.05.134. 29 * Sec. 25. AS 38.05.185(a) is amended to read: 30 (a) The acquisition and continuance of rights in and to deposits on state land 31 of minerals, which on January 3, 1959, were subject to location under the mining laws
01 of the United States, shall be governed by AS 38.05.185 - 38.05.275. Nothing in 02 AS 38.05.185 - 38.05.275 affects the law pertaining to the acquisition of rights to 03 mineral deposits owned by any other person or government. The director, with the 04 approval of the commissioner, shall determine that land from which mineral deposits 05 may be mined only under lease, and, subject to the limitations of AS 38.05.300, that 06 land that shall be closed to location under AS 38.05.185 - 38.05.275 [MINING]. 07 State land may not be closed to [MINING OR MINERAL] location under 08 AS 38.05.185 - 38.05.275 except as provided in AS 38.05.300 and unless the 09 commissioner makes a finding that mining would be incompatible with significant 10 surface uses on the state land. State land may not be restricted to mining under lease 11 unless the commissioner determines that potential use conflicts on the state land 12 require that mining be allowed only under written leases issued under AS 38.05.205 13 or the commissioner has determined that the land was mineral in character at the time 14 of state selection. The determinations required under this subsection shall be made in 15 compliance with land classification orders and land use plans developed under 16 AS 38.05.300. 17 * Sec. 26. AS 38.05.190(a) is amended to read: 18 (a) The right to acquire exploration and mining rights under AS 38.05.185 - 19 38.05.275 may be acquired or held only by 20 (1) citizens of the United States at least 18 years of age; 21 (2) legal guardians or trustees of citizens of the United States under 18 22 years of age on behalf of the citizens; 23 (3) persons at least 18 years of age who have declared their intention 24 to become citizens of the United States; 25 (4) [ALIENS AT LEAST 18 YEARS OF AGE IF THE LAWS OF 26 THEIR COUNTRY GRANT LIKE PRIVILEGES TO CITIZENS OF THE UNITED 27 STATES; 28 (5)] corporations organized under the laws of the United States or of 29 any state or territory of the United States and qualified to do business in this state [, 30 EXCEPT THAT IF MORE THAN 50 PERCENT OF THE STOCK OF A 31 CORPORATION IS OWNED OR CONTROLLED BY ALIENS WHO ARE NOT
01 QUALIFIED, THE CORPORATION IS NOT QUALIFIED TO ACQUIRE OR HOLD 02 THE RIGHTS]; 03 (5) [(6)] associations of persons described in (1) - (4) [(1) - (5)] of this 04 subsection. 05 * Sec. 27. AS 38.05.211(d) is repealed and reenacted to read: 06 (d) The rental amount established under this section shall be revised by the 07 commissioner as provided in this section based on changes in the Consumer Price 08 Index for all urban consumers, Anchorage Metropolitan Area (Semi-Annual Average) 09 compiled by the Bureau of Labor Statistics, United States Department of Labor, as 10 revised, rebased or replaced by that bureau. The reference base index is the index for 11 January - June, 1989, as revised or rebased by that bureau. The rental amount shall 12 be revised by the commissioner if the change between the index for the first six 13 months of the current year and the most recent index used to revise the rental, or the 14 reference base index if the rental amount has never been revised, equals or exceeds $5. 15 The rental amount shall be increased or decreased, as appropriate, by an amount equal 16 to the change in the index described in this subsection rounded to the nearest whole 17 $5 unit. The commissioner shall calculate the change in the index annually and, if the 18 rental amount must be revised, shall adopt a regulation establishing the revised rental 19 amount. A revised rental amount applies to a rental payment if the regulation 20 establishing the revised rental amount took effect at least 90 days before the date the 21 rental payment is due. 22 * Sec. 28. AS 38.05.255 is amended to read: 23 Sec. 38.05.255. SURFACE USE OF LAND OR WATER. Surface uses of 24 land or water included within mining properties by owners of those properties shall be 25 limited to those necessary for the prospecting for, extraction of, or basic processing of 26 mineral deposits and shall be subject to reasonable concurrent uses. Leases 27 [PERMITS] for millsites and tailings disposal may be issued [GRANTED] by the 28 director. The leases [PERMITS] shall be conditioned upon payment of a reasonable 29 annual rent [CHARGE] for the lease [USE] and restriction to [CONTINUANCE OF] 30 the limited use. Timber from land open to mining without lease, except timberland, 31 may be used by a mining claimant or prospecting site locator for the mining or
01 development of the location or adjacent claims under common ownership. On other 02 land, timber may be acquired as provided in this chapter. Use of water shall be made 03 in accordance with AS 46.15. 04 * Sec. 29. AS 38.05.255 is amended by adding a new subsection to read: 05 (b) A lease issued under this section is exempt from the provisions of 06 AS 38.05.075 - 38.05.080. The commissioner, by regulation, shall establish 07 appropriate leasing procedures and annual rent amounts for leases under this section. 08 * Sec. 30. AS 38.05.265 is amended to read: 09 Sec. 38.05.265. ABANDONMENT. Failure to properly record a certificate of 10 location or a statement of annual labor, [FILE WITH THE DIRECTOR WITHIN THE 11 TIME PRESCRIBED A LEASE APPLICATION,] pay any required annual rental, pay 12 any required production royalty, or keep location boundaries clearly marked as 13 required by AS 38.05.185 - 38.05.275 and by regulations adopted under these sections 14 constitutes abandonment of all rights acquired under the mining claim, leasehold 15 location, lease, or site involved, and the claim, location, lease, or site is subject to 16 relocation by others. A locator or claimant of an abandoned location or a successor 17 in interest may not relocate the location until one year after abandonment. A statement 18 of annual labor that does not accurately set out the essential facts is void and of no 19 effect. If an annual rental or a royalty payment is deficient but is otherwise timely 20 paid, abandonment does not result if full payment is made within 21 (1) the period prescribed by a deficiency notice from the commissioner; 22 or 23 (2) 30 days after a final judgment establishing the amount due if the 24 deficiency amount due was contested. 25 * Sec. 31. AS 38.05.810(a) is amended to read: 26 (a) Except as otherwise provided in AS 38.05.183(h), the (1) lease, sale, or 27 other disposal of state land or resources may be made to a state or federal agency or 28 political subdivision, (2) [THE] lease, sale, or disposal of coal deposits suitable for 29 mining may be made to a utility owned and operated by a government agency or 30 nonprofit cooperative association organized to participate under the Federal Rural 31 Electrification Act for the purpose of generating electric power and energy or the
01 production of process steam, or both, (3) [OR THE] sale or other disposal of state land 02 may be made to a tax-exempt, nonprofit corporation, association, club, or society 03 organized and operated exclusively for the management of a cemetery or a solid waste 04 facility, or (4) sale or other disposal of land within a state subdivision may be 05 made to that subdivision's nonprofit, tax-exempt homeowners' association, for less 06 than the appraised value as determined by the director and approved by the 07 commissioner to be fair and proper and in the best interests of the public, with due 08 consideration given to the nature of the public services or function rendered by the 09 applicant [AGENCY, SUBDIVISION, TAX-EXEMPT, NONPROFIT 10 CORPORATION, ASSOCIATION, CLUB, OR SOCIETY, OR UTILITY MAKING 11 APPLICATION], and of the terms of the grant under which the land was acquired by 12 the state. The commissioner shall ensure, by regulation, deed restriction, covenant, 13 or otherwise, that disposals of land under this subsection serve a public purpose 14 and are in the public interest. 15 * Sec. 32. AS 38.05.850(a) is amended to read: 16 (a) The director, without the prior approval of the commissioner, may issue 17 permits, rights-of-way or easements on state land for roads, trails, ditches, field 18 gathering lines or transmission and distribution pipelines not subject to AS 38.35, 19 telephone or electric transmission and distribution lines, log storage, oil well drilling 20 sites and production facilities for the purposes of recovering minerals from adjacent 21 land under valid lease, and other similar uses or improvements, or revocable, 22 nonexclusive permits for the [LIMITED] personal or commercial use or removal of 23 resources that the director has determined to be of limited value [OF TIMBER OR 24 MATERIALS]. The commissioner, upon recommendation of the director, shall 25 establish a reasonable rate or fee schedule to be charged for these uses, subject to the 26 exception for nonprofit cooperative associations specified in (b) of this section. In the 27 granting, suspension or revocation of a permit or easement of land, the director shall 28 give preference to that use of the land which will be of greatest economic benefit to 29 the state and the development of its resources. However, first preference shall be 30 granted to the upland owner for the use of a tract of tideland, or tideland and 31 contiguous submerged land, which is seaward of the upland property of the upland
01 owner and which is needed by the upland owner for any of the purposes for which the 02 use may be granted. 03 * Sec. 33. AS 38.05.945(a) is amended to read: 04 (a) This section establishes the requirements for notice given by the department 05 for the following actions: 06 (1) classification or reclassification of state land under AS 38.05.300 07 and the closing of land to mineral leasing or entry under AS 38.05.185; 08 (2) zoning of land under applicable law; 09 (3) issuance of a 10 (A) preliminary written finding under AS 38.05.035(e)(5)(A) 11 regarding the sale, lease, or disposal of an interest in state land or resources for 12 oil and gas subject to AS 38.05.180(b); 13 (B) final written finding under AS 38.05.035(e)(5)(B) regarding 14 the sale, lease, or disposal of an interest in state land or resources for oil and 15 gas subject to AS 38.05.180(b); 16 (C) written finding for the sale, lease, or disposal of an interest 17 in state land or resources under AS 38.05.035(e)(6); 18 (4) a competitive disposal of an interest in state land or resources after 19 final decision under AS 38.05.035(e); 20 (5) [A PUBLIC HEARING UNDER AS 38.05.856(b); 21 (6)] a preliminary finding under AS 38.05.035(e) [AND 38.05.855(c)] 22 concerning sites for aquatic farms and related hatcheries; 23 (6) [(7)] a decision under AS 38.05.132 - 38.05.134 regarding the sale, 24 lease, or disposal of an interest in state land or resources. 25 * Sec. 34. AS 38.08.030(b) is amended to read: 26 (b) Fees for filing an application may not exceed $25 [$10]. 27 * Sec. 35. AS 38.08.040(a) is amended to read: 28 (a) An applicant meeting the qualifications for homesite entry under 29 AS 38.08.030 and selected under (f) of this section shall be issued a revocable permit 30 to occupy and improve the homesite in order to qualify for issuance of patent as 31 provided in this chapter. The holder of a homesite entry permit shall pay, in
01 advance, an annual rental fee of $100. [THE APPLICATION FEE IS THE SOLE 02 RENT CHARGEABLE ON THE PERMIT FOR ITS DURATION.] 03 * Sec. 36. AS 38.08.040 is amended by adding a new subsection to read: 04 (f) If only one application for a homesite parcel is received, the commissioner 05 shall offer an entry permit for the parcel to the applicant provided the applicant is 06 otherwise qualified. If more than one application is received for a parcel, the 07 commissioner shall select by lottery the applicant who is entitled to receive the permit 08 for the parcel. The lottery shall be conducted under regulations adopted by the 09 commissioner that are to the maximum extent practicable consistent with the provisions 10 of AS 38.05.057 and the regulations adopted under that section. 11 * Sec. 37. AS 38.09.010(g) is amended to read: 12 (g) The commissioner may limit the number of persons permitted to stake 13 homestead entries within an area designated under (a) of this section by a lottery of 14 qualified applicants. [THE COMMISSIONER MAY CONDUCT A LOTTERY HELD 15 UNDER THIS SUBSECTION IN THE COMMUNITY THAT IS CLOSEST TO THE 16 AREA DESIGNATED FOR HOMESTEAD ENTRY. THE COMMISSIONER MAY 17 REQUIRE THAT EACH PARTICIPANT IN THE LOTTERY BE PRESENT UNLESS 18 ATTENDANCE AT THE LOTTERY IS PREVENTED BY 19 (1) MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 20 MILITARY SERVICE OUTSIDE THE STATE; OR 21 (2) A MANDATORY, UNAVOIDABLE EMPLOYMENT 22 COMMITMENT DETERMINED VALID BY THE COMMISSIONER BEFORE THE 23 SALE.] 24 * Sec. 38. AS 38.09.030(a) is amended to read: 25 (a) An applicant for a homestead entry permit shall 26 (1) submit proof acceptable to the commissioner that the applicant is 27 at least 18 years of age and has been a resident of the state for not less than one year 28 immediately before the date of application; 29 (2) pay a fee of $5 per acre according to the description provided by 30 the applicant if the entry is on land classified agricultural, or $20 per acre if the 31 entry is on land not classified agricultural;
01 (3) agree to comply with the requirements of AS 38.09.050; 02 (4) certify that the corners of the land entered have been staked and the 03 boundaries have been flagged; and [OR] 04 (5) assume full responsibility for the accuracy of the description of the 05 land filed with the commissioner under AS 38.09.020(b). 06 * Sec. 39. AS 38.09 is amended by adding a new section to read: 07 Sec. 38.09.105. REMOVAL OF CONDITIONS ON REMOTE PARCEL AND 08 HOMESTEAD ENTRY LAND. (a) The commissioner may not include the 09 conditions of former AS 38.05.078(d) in a remote parcel purchase contract issued on 10 or after the effective date of this section. 11 (b) The commissioner shall amend a remote parcel or homestead entry land 12 purchase contract or patent issued before the effective date of this section to remove 13 the conditions of former AS 38.05.078(d) or former AS 38.09.050(e) if the holder of 14 the purchase contract or patent 15 (1) requests the amendment; 16 (2) pays the reasonable administrative costs of the amendment as 17 determined by the commissioner; and 18 (3) pays the difference, as established by the commissioner, between 19 the land's fair market value before the amendment and the estimated fair market value 20 after the amendment. 21 * Sec. 40. AS 38.04.020(c), 38.04.020(f), 38.04.020(j), 38.04.020(k); 22 AS 38.05.035(e)(6)(F), 38.05.040, 38.05.057(g), 38.05.057(j), 38.05.207, 38.05.855, 23 38.05.856, 38.05.945(g), 38.05.946(b); AS 38.09.050(d), and 38.09.050(e) are repealed. 24 * Sec. 41. Notwithstanding AS 41.21.120 - 41.21.125, within Township 10 North, Range 25 1 East, Seward Meridian, the commissioner of natural resources may 26 (1) convey a property interest in land to the Alaska Railroad Corporation for 27 the purpose of realigning the railroad in conjunction with the relocation of the Seward 28 Highway, provided that the property interest conveyed must be equivalent to that conveyed 29 to the state-owned railroad under 45 U.S.C. 1201 - 1214 (Alaska Railroad Transfer Act of 30 1982) and shall be held and managed by the Alaska Railroad Corporation under AS 42.40; 31 (2) grant a 300 foot wide highway easement to the Department of
01 Transportation and Public Facilities for the relocated Seward Highway; 02 (3) grant a 100 foot wide utility easement to Chugach Electric Association, 03 Inc., for the relocation of the 115 kilovolt electric transmission line (Federal Power 04 Commission project no. 2170, AA-39417, and ADL 32417) and the electric distribution line 05 (A-029885) located within the Chugach State Park. 06 * Sec. 42. APPLICABILITY. The change to the interest rate to be charged on contracts 07 for the sale of land under AS 38.05.065, made by secs. 15 - 17 of this Act, applies to all 08 contracts under AS 38.05.065 sent by the Department of Natural Resources to purchasers for 09 signature on or after the effective date of secs. 15 - 17 of this Act. 10 * Sec. 43. REVISOR'S INSTRUCTION. The amendments to AS 38.05.082(b), made by 11 sec. 19 of this Act, do not affect the amendments made to that subsection by sec. 3, ch. 27, 12 SLA 1991, effective January 1, 1997. Unless amended or repealed by Act of the legislature 13 after the effective date of this section, the amendments to AS 38.05.082(b), made by sec. 19 14 of this section, continue in effect after the amendments made by sec. 3, ch. 27, SLA 1991, 15 take effect January 1, 1997. 16 * Sec. 44. TRANSITIONAL PROVISIONS: REGULATIONS. (a) Notwithstanding 17 sec. 45 of this Act, the Department of Natural Resources may proceed to adopt regulations 18 necessary to implement the changes made by this Act. The regulations take effect under 19 AS 44.62 (Administrative Procedure Act), but not before July 1, 1995. 20 (b) To the extent they are consistent with AS 38.08, regulations governing the 21 selection of applicants for homesite parcels under AS 38.08 in effect on the effective date of 22 secs. 35 - 36 of this Act remain in effect notwithstanding the amendment to AS 38.08.040, 23 made by secs. 35 - 36 of this Act, until the regulations are amended, repealed, or superseded. 24 * Sec. 45. Except for sec. 44 of this Act, this Act takes effect July 1, 1995. 25 * Sec. 46. Section 44 of this Act takes effect immediately under AS 01.10.070(c).