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SCS CSSSHB 191(RES): "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."

00SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 191(RES) 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 03 and patents; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 09.10.120 is amended by adding a new subsection to read: 06  (b) Notwithstanding (a) of this section or any other provision of law, the state 07 may bring an action in the name of or for the benefit of the state to (1) quiet or 08 confirm the state's interests in real property, or (2) protect resources held in trust for 09 the public, at any time. 10 * Sec. 2. AS 38.04.010(b) is amended to read: 11  (b) State land that is located beyond the range of existing schools and other 12 necessary public services, or that is located where development of sources of 13 employment is improbable, may be made available for seasonal recreational purposes 14 or for low density settlement. The seasonal recreation use or low density settlement

01 shall have sufficient separation between residences so that public services will not be 02 necessary or expected. The availability of timber, firewood, and water resources shall 03 be considered in determining separation between residences. By considering the 04 availability of timber, firewood, and water under this subsection or in making any 05 disposal decision, the state does not by virtue of that consideration imply any 06 right of the person receiving the disposal to an exclusive or other right to the 07 timber, firewood, or water, that the state will not make any other disposals in the 08 area, or that any disposals made will be limited in type or any other manner. 09 * Sec. 3. AS 38.04.020(a) is amended to read: 10  (a) State [THE COMMISSIONER SHALL ESTABLISH A] land disposals 11 must include [DISPOSAL BANK CONTAINING] state land identified and classified 12 under adopted regional land use plans for disposal into private ownership. 13 * Sec. 4. AS 38.04.020(b) is amended to read: 14  (b) State [THE] land disposals may [DISPOSAL BANK DOES] not include 15  (1) land nominated for selection or selected by a municipality to satisfy 16 a general grant land entitlement under AS 29.65 or former AS 29.18.201 - 29.18.213; 17  (2) land retained in state ownership for multiple-use management; 18  (3) land where less than a fee simple title has been conveyed; 19  (4) land retained in state ownership under an enactment of the 20 legislature or by the governor or a state agency under authority of law. 21 * Sec. 5. AS 38.04.020(d) is repealed and reenacted to read: 22  (d) By January 15 of the first regular session of each legislature, the 23 commissioner shall notify the legislature that the commissioner has available a report 24 on the total acreage of land planned and classified as suitable under this title for 25  (1) settlement purposes, including homestead, commercial, or industrial 26 disposal; 27  (2) agricultural disposal; and 28  (3) grazing leases. 29 * Sec. 6. AS 38.04.020(e) is repealed and reenacted to read: 30  (e) The commissioner may annually submit to the governor an appropriation 31 request for the entire amount of funding estimated to be necessary for each project

01 proposal to allow survey and disposal of land proposed to be offered for (1) homestead 02 staking under AS 38.09; (2) agricultural, commercial, industrial, or other uses under 03 AS 38.05.055 or 38.05.057; or (3) other subdivisions. Each project proposal shall 04 include the general location of the land and the estimated cost of preliminary feasibility 05 studies, engineering design work, right-of-way acquisition, and construction of access 06 roads and capital improvements required by municipal subdivision ordinance or 07 regulation of the platting authority or otherwise necessary to develop and market the 08 land. 09 * Sec. 7. AS 38.04.020(g) is amended to read: 10  (g) The [AFTER JULY 1 OF EACH YEAR, THE] commissioner shall direct 11 the expenditure of money appropriated for the disposal of land in response to requests 12 made under (e) [AND (f)] of this section for the following: 13  (1) land [LAND] designated as suitable for homestead disposal shall 14 be [CLASSIFIED AND] surveyed under this chapter and AS 38.05 and made available 15 for entry [STAKING AND LEASE] under AS 38.09; [.] 16  (2) land [LAND] designated as suitable for subdivision and homesite 17 disposal shall be surveyed, subdivided, [CLASSIFIED,] and disposed of under this 18 chapter, AS 38.05, and AS 38.08; [.] 19  (3) land [LAND] designated agricultural, commercial, industrial, or 20 suitable for other disposal shall be sold under AS 38.05.055 or 38.05.057. 21 * Sec. 8. AS 38.04.020(h) is amended to read: 22  (h) Individual parcels disposed of in subdivisions intended for private 23 residential or recreational use may not exceed five acres unless the commissioner 24 determines that a larger size is necessary to comply with municipal ordinances; [,] to 25 permit the design of a viable subdivision because of topographical features, soil 26 conditions, on-site sewage disposal requirements, or water drainage or supply 27 considerations that are unique to the subdivision; to increase the return to the state 28 from the sale of the parcels; [,] to minimize adverse effect on wildlife, fishery, public 29 recreation, timber, or other significant resources in the area; [,] or to minimize adverse 30 effect on other residential uses in the area. 31 * Sec. 9. AS 38.04.020(i) is amended to read:

01  (i) Nothing in this section prevents the disposal of other land by the 02 commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.070, the issuance of 03 remote recreational cabin site leases or sales [PERMITS] under AS 38.05.600 04 [AS 38.05.079], AS 38.08, AS 38.09, or other law. 05 * Sec. 10. AS 38.04.021(a) is amended to read: 06  (a) A municipality may apply for financial assistance for the execution of a 07 land disposal program of general grant land entitlements received from the state under 08 AS 29.65 or former AS 29.18.201 - 29.18.213 by submitting a request to the 09 commissioner for inclusion in the request submitted to the governor [LEGISLATURE] 10 under AS 38.04.020(e). A municipality may request financial assistance for expenses 11 of surveying land, designing subdivision plats, installing improvements required by 12 municipal ordinance or regulation of the local platting authority, and other reasonable 13 direct costs of land disposal. 14 * Sec. 11. AS 38.04.021(b) is amended to read: 15  (b) A request by a municipality under this section must be accompanied by 16  (1) a schedule for the disposal of municipal land for the next five years; 17 the schedule shall be based on an assessment of the demand for private land within the 18 municipality [AND INCLUDED IN THE ASSESSMENT SUBMITTED UNDER 19 AS 38.04.020(f)]; 20  (2) an estimate of the number of acres of municipal land that the 21 municipality plans to dispose of during each fiscal year of the five-year period; 22  (3) a description of the methods to be used for the disposal of 23 municipal land and the terms under which it will be offered to the public; and 24  (4) a description of the municipal land that the municipality plans to 25 dispose of each fiscal year during the five-year period. 26 * Sec. 12. AS 38.04.030 is amended to read: 27  Sec. 38.04.030. LAND AVAILABILITY PROGRAMS. Programs that may 28 be used by the director to make the state's land surface available for private use under 29 AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 30 estate, including conveyance of agricultural use rights; leasing; [OPEN-TO-ENTRY;] 31 homesiting; homesteading; permitting for construction and occupation of cabins in

01 isolated locations on land retained in state ownership; and other methods as provided 02 by regulation or other law. Notwithstanding a contrary provision of this title, a 03 land availability program adopted by regulation must provide for competitive 04 disposal, based on no less than fair market value, to serve the best interests of the 05 state. 06 * Sec. 13. AS 38.04.035 is amended to read: 07  Sec. 38.04.035. CRITERIA FOR PROGRAM SELECTION. In determining 08 which land availability program is appropriate for state land in different locations, the 09 director shall be guided by the following criteria: 10  (1) to cover public costs associated with private land use and to provide 11 the public with a fair return for publicly owned property, conveyance of state land to 12 private parties shall [SHOULD] be at fair market value except where otherwise 13 authorized by statute, or by an administrative regulation the adoption of which is 14 specifically permitted by statute; 15  (2) sale or lease programs should be used where land is readily 16 accessible to a major community center or where, because of a prime location on 17 waterfront or a transportation route or some other location characteristic, land has 18 relatively high real estate value; 19  (3) sale programs are preferred but lease programs may [SHOULD] be 20 used 21  (A) where special land use controls are required and there is a 22 high public interest in having certain types of land used for particular purposes; 23  (B) when the intended use is a temporary one; 24  (C) in commercial or industrial situations when a leasehold can 25 provide cash flow advantages to the lessee; 26  (D) when a unique location with special public values is 27 involved, as in a deep water port, hydroelectric site, or aquaculture facility; 28  (E) where current demand for private use is high, but 29 projections suggest that, in the future, the land may be more valuable for public 30 use, as in accessible waterfront recreation areas; 31  (4) [FOR ENABLING ISOLATED CABIN DEVELOPMENT IN

01 REMOTE LOCATIONS WHERE SURVEY AND CONVEYANCE IS 02 IMPRACTICAL, OR WHERE DISPOSAL OF LAND WOULD CAUSE POTENTIAL 03 CONFLICTS WITH OTHER RESOURCES AND USES, OR WHERE A LONG- 04 RANGE INTEREST IN PUBLIC OWNERSHIP AND USE EXIST, A SYSTEM FOR CABIN 05 PERMITS ON PUBLIC LAND MAY BE USED; 06  (5)] limited or conditional title may be granted when the state's best 07 interest so dictates; among other things, title limitations may include grants of 08 agricultural interest only, retention of development rights, and retention of scenic or 09 other easements; a conditional title may be tied to a development schedule or other 10 standards of performance. 11 * Sec. 14. AS 38.04.045(b) is amended to read: 12  (b) Before the issuance of a long-term lease under AS 38.05.070 or of a patent 13 for state land, an official cadastral survey shall be accomplished, unless a comparable, 14 approved survey exists that has been conducted by the federal Bureau of Land 15 Management. Before land may be offered under [AS 38.05.055, 38.05.057,] AS 38.08 16 [,] or AS 38.09, or before land may be offered under AS 38.05.055 or 38.05.057, 17 except land that is classified for agricultural uses, an official rectangular survey grid 18 shall be established. The rectangular survey section corner positions shall be 19 monumented and shown on a cadastral survey plat approved by the state. For those 20 areas where the state may wish to convey surface estate outside of an official 21 rectangular survey grid, the commissioner may waive monumentation of individual 22 section corner positions and substitute an official control survey with control points 23 being monumented and shown on control survey plats approved by the state. The 24 commissioner may not issue more than one conveyance for each section within a 25 township outside of an official rectangular survey grid. Land [NO PORTION OF 26 LAND] to be conveyed may not be located more than two miles from an official 27 survey control monument except that the commissioner may waive this requirement 28 on a determination that a single purpose use does not justify the requirement if the 29 existing status of the land is known with reasonable certainty. The lots and tracts in 30 state subdivisions shall be monumented and the cadastral survey and plats for the 31 subdivision shall be approved by the state. Where land is located within a

01 municipality with planning, platting, and zoning powers, plats for state subdivisions 02 shall comply with local ordinances and regulations in the same manner and to the same 03 extent as plats for subdivisions by other landowners. State subdivisions shall be filed 04 and recorded in the district recorder's office. The requirements of this section do not 05 apply to land made available [THROUGH A CABIN PERMIT SYSTEM,] for material 06 sales, for short-term leases, or for parcels adjoining a surveyed right-of-way, [OR FOR 07 LAND THAT HAS BEEN OPEN TO RANDOM STAKING UNDER THE REMOTE 08 PARCEL PROGRAM OR HOMESTEAD PROGRAM IN THE PAST]; however, for 09 short-term leases, the lessee shall [MUST] comply with local subdivision ordinances 10 unless waived by the municipality under procedures specified by ordinance. In this 11 subsection, "a single purpose use" includes a communication site, an aid to navigation, 12 and a park site. 13 * Sec. 15. AS 38.05.050 is amended to read: 14  Sec. 38.05.050. DISPOSAL OF LAND FOR PRIVATE OWNERSHIP. The 15 commissioner shall determine the land to be disposed of for private use. The 16 commissioner shall determine the time and place of disposal. An auction sale, a 17 lottery sale, or a disposal of land for homesites may [SHALL] be held in a community 18 that is near the land to be sold or disposed of. 19 * Sec. 16. AS 38.05.055, as amended by sec. 1, ch. 3, SLA 1996, is amended to read: 20  Sec. 38.05.055. AUCTION SALE PROCEDURES. Unless another method of 21 sale is required under this chapter, [AS 38.07, OR] AS 38.08, or AS 38.09, the sale 22 of state land shall be made at public auction to the highest qualified bidder as 23 determined by the director. The director may accept bids and sell state land under this 24 section at no less than 70 percent of the appraised fair market value of the land. To 25 qualify to participate under this section in a public auction of state land that is other 26 than commercial, industrial, or agricultural land, a bidder shall have been a resident 27 of the state for at least one year immediately preceding the date of the auction and 28 submit proof of that fact, as the commissioner requires by regulation. [A BIDDER 29 MUST APPEAR IN PERSON AT THE AUCTION UNLESS MEDICAL REASONS, 30 ATTENDANCE AT SCHOOL, OR MILITARY SERVICE OUTSIDE THE STATE 31 PREVENT ATTENDANCE.] A bidder may be represented by an attorney or agent

01 at the auction [IF THE LAND OFFERED FOR DISPOSAL IS COMMERCIAL, 02 INDUSTRIAL, OR AGRICULTURAL LAND]. An aggrieved bidder may appeal to 03 the commissioner within five days after the sale for a review of the director's 04 determination. The sale shall be conducted by the director and at the time of sale the 05 successful bidder shall deposit an amount equal to five percent of the purchase price. 06 The director shall immediately issue a receipt containing a description of the land or 07 property purchased, the price bid, and the amount deposited. The receipt shall be 08 acknowledged in writing by the bidder. 09 * Sec. 17. AS 38.05.057(a) is amended to read: 10  (a) The commissioner may dispose of land, including land limited to use for 11 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 12 the fair market value of the land as determined by the commissioner. The 13 commissioner may sell land by lottery for less than the fair market value of the land 14 on a determination that scarcity of land for private use in the area of the land to be 15 sold has resulted in unrealistic land values. [THE COMMISSIONER SHALL 16 CONSULT WITH THE ASSESSOR OF A MUNICIPALITY BEFORE 17 DETERMINING THE PURCHASE PRICE FOR LAND THAT IS LOCATED IN 18 THE MUNICIPALITY AND THAT IS TO BE SOLD UNDER THIS SECTION.] The 19 lottery shall be conducted in public by the commissioner. A [AN APPLICANT MAY 20 NOT BE SELECTED TO PURCHASE LAND UNLESS THE APPLICANT IS 21 PRESENT ON THE DATE AND AT THE PLACE THAT THE LOTTERY IS 22 CONDUCTED UNLESS MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 23 MILITARY SERVICE OUTSIDE THE STATE PREVENT ATTENDANCE. AN 24 APPLICANT MAY BE REPRESENTED BY AN AGENT ON THE DAY OF THE 25 LOTTERY IF THE LAND OFFERED FOR SALE IS COMMERCIAL, 26 INDUSTRIAL, OR AGRICULTURAL LAND. ON THE DAY OF THE LOTTERY 27 A] purchaser selected by lot shall deposit an amount equal to five percent of the 28 purchase price within 30 days after receiving notification of the selection. 29 * Sec. 18. AS 38.05.065(a) is amended to read: 30  (a) The contract of sale for land sold at public auction under AS 38.05.055 31 shall require the remainder of the purchase price to be paid in monthly, quarterly, or

01 annual installments over a period of not more than 20 years, with interest at the 02 [PREVAILING] rate provided in (i) of this section [FOR REAL ESTATE 03 MORTGAGE LOANS MADE BY THE FEDERAL LAND BANK FOR THE FARM 04 CREDIT DISTRICT FOR ALASKA AT THE TIME THE CONTRACT IS SIGNED]. 05 Installment payments plus interest shall be set on the level-payment basis. 06 * Sec. 19. AS 38.05.065(b) is amended to read: 07  (b) The contract of sale for land sold under AS 38.05.057 or under former 08 AS 38.05.078 shall require the remainder of the purchase price to be paid in monthly, 09 quarterly, or annual installments over a period of not more than 20 years. Installment 10 payments plus interest shall be set on the level-payment basis. The interest rate to be 11 charged on installment payments is the [PREVAILING] rate provided in (i) of this 12 section [FOR REAL ESTATE MORTGAGE LOANS MADE BY THE FEDERAL 13 LAND BANK FOR THE FARM CREDIT DISTRICT FOR ALASKA AT THE TIME 14 THE CONTRACT IS SIGNED]. 15 * Sec. 20. AS 38.05.065 is amended by adding a new subsection to read: 16  (i) The interest rate for contracts under this section is the prime rate as 17 reported in the Wall Street Journal on the first business day of the month in which the 18 contract is sent to the purchaser for signature, plus 4 percent; however, the total rate 19 of interest may not exceed 20  (1) 9.5 percent, in contracts for the sale of land classified under 21 AS 38.05.020(b)(6) for agricultural uses; or 22  (2) 13.5 percent, in other contracts for the sale of land. 23 * Sec. 21. AS 38.05.067(d) is amended to read: 24  (d) This section does not apply to the sale of state land under AS 38.05.057, 25 AS 38.08, or [AS 38.04.020(g)(2) AND] AS 38.09. 26 * Sec. 22. AS 38.05.069(a) is amended to read: 27  (a) On a determination that the highest and best use of unoccupied land is for 28 agricultural purposes and that it is in the best interests of the state to sell or lease the 29 land, the commissioner shall grant to an Alaska [ALASKAN] resident owning and 30 using or leasing and using land for agricultural purposes a first option at the auction 31 to purchase or lease the unoccupied land situated adjacent to land presently held by the

01 Alaska [ALASKAN] resident for the amount of the high bid received at public 02 auction. If more than one Alaska [ALASKAN] resident qualifies for a first option 03 under this section, eligibility for the first option shall be determined by lot and the 04 option must be exercised on the conclusion of the public auction. A parcel of 05 agricultural land sold under this section may not be less than 20 acres and a parcel of 06 agricultural land that is acquired by exercise of the option granted in this subsection 07 may not exceed 320 acres. Agricultural land that is acquired under this section must 08 be used for agricultural purposes as required by law. 09 * Sec. 23. AS 38.05.069(e)(2) is repealed and reenacted to read: 10  (2) "adjacent" means that a tract of land has one common boundary 11 point with presently held land or is separated from the presently held land only by a 12 physical barrier such as a road or stream. 13 * Sec. 24. AS 38.05.075(a) is amended to read: 14  (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, [38.05.079,] 15 38.05.082, 38.05.083, 38.05.087, 38.05.102, 38.05.600, 38.05.810, and this section, 16 leasing shall be made at public auction to the highest qualified bidder as determined 17 by the commissioner. In the public notice of a lease to be offered at public auction, 18 the commissioner shall specify a minimum acceptable bid and the lease compensation 19 method. The lease compensation method shall be designed to maximize the return on 20 the lease to the state and shall be a form of compensation set out in AS 38.05.073(m). 21 An aggrieved bidder may appeal to the commissioner within five days for a review of 22 the determination. The leasing shall be conducted by the commissioner and the 23 successful bidder shall deposit at the auction the first year's rental or other lease 24 compensation as specified by the commissioner, or that portion of it that the 25 commissioner requires in accordance with the bid. The commissioner shall require, 26 under AS 38.05.860, qualified bidders to deposit a sum equal to any survey or 27 appraisal costs reasonably incurred by another qualified bidder acting in accordance 28 with the regulations of the commissioner or incurred by the department under 29 AS 38.04.045 and AS 38.05.840. If a bidder making a deposit of survey or appraisal 30 costs is determined by the commissioner to be the highest qualified bidder under this 31 subsection, the deposit shall be paid to the unsuccessful bidder who incurred those

01 costs or to the department if the department incurred the costs. All costs for survey 02 and appraisal shall be approved in advance in writing by the commissioner. The 03 commissioner shall immediately issue a receipt containing a description of the land or 04 interest leased, the price bid, and the terms of the lease to the successful qualified 05 bidder. If the receipt is not accepted in writing by the bidder under this subsection, 06 the commissioner may offer the land for lease again under this subsection. A lease, 07 on a form approved by the attorney general, shall be signed by the successful bidder 08 and by the commissioner within the period specified in the auction notice. 09 * Sec. 25. AS 38.05.082(b) is amended to read: 10  (b) The director may classify land as subject to leases for fisheries 11 development. In an area or region of the state for which a land use plan has not been 12 adopted under AS 38.04.065, the director may classify land for lease under this section 13 after notice under AS 38.05.945. The director may [SHALL] publicly invite 14 applications for lease of the selected areas. Each application shall be accompanied by 15 an affidavit to the effect that the applicant presently intends to personally utilize the 16 leased area for fishing purposes throughout the term of the lease. If only one 17 application is received, the commissioner may issue a lease at the rental rate 18 established under (c) of this section [THE FOLLOWING SEASON]. If two or more 19 applications are received for the same shore area, the director may offer [SHALL 20 AWARD] the lease to the most qualified applicant. In determining the qualifications 21 of applicants, the director shall consider the length of time during which the applicant 22 has been engaged in set netting, the proximity of the past fishing sites of the applicant 23 to the land to be leased, the present ability of the applicant to utilize the location to 24 its maximum potential, and other factors relevant to the equitable assignment of the 25 disputed area. If the director cannot determine a preference between conflicting 26 applicants for the same lease site on the basis of qualifications, the director shall select 27 between the applicants by lot. An aggrieved applicant may appeal to the commissioner 28 within 30 days for a review of the director's determination. 29 * Sec. 26. AS 38.05.082(c) is amended to read: 30  (c) A lease for set net fishing may be issued for any period not exceeding 10 31 years. If the commissioner determines that the land is not being utilized for the

01 purpose for which the lease is issued, the lease may be declared void. The annual 02 [DIRECTOR SHALL ESTABLISH A REASONABLE] rental rate for the lease is 03 $300 [, EQUAL TO THE ADMINISTRATIVE COSTS INVOLVED IN 04 PROCESSING THE LEASEHOLD APPLICATIONS]. 05 * Sec. 27. AS 38.05.082(d) is amended to read: 06  (d) Subleasing and renewals of leases are governed by AS 38.05.095 and 07 38.05.102. Notwithstanding (b) of this section, a lease held under this section on 08 the effective date of this bill section may be renewed by the lessee if the lessee is 09 not in default under the lease and is not in violation of the terms and conditions 10 of the lease. 11 * Sec. 28. AS 38.05.083 is repealed and reenacted to read: 12  Sec. 38.05.083. AQUATIC FARMING AND HATCHERY SITE LEASES. 13 (a) The commissioner may offer to the public for lease at public auction under 14 AS 38.05.075 or by negotiation under AS 38.05.070 a site for aquatic farming or 15 related hatchery operations. Before a final decision to issue or renew a lease under 16 this section, the commissioner shall give notice and allow opportunity for comment in 17 accordance with AS 38.05.945, and may hold a hearing to take testimony. Before a 18 final decision to issue or renew a lease under this section, the commissioner shall 19 consider all relevant comment or testimony submitted under this section, AS 38.05.945, 20 or 38.05.946. 21  (b) The commissioner, for good cause, may deny an application for issuance 22 or renewal of a lease under this section, but shall provide the applicant with written 23 findings that explain the reasons for the denial. 24  (c) A site may be leased under this section for not less than the appraised fair 25 market value of the lease. The value of the lease shall be reappraised every five years. 26  (d) A lease under this section may be assigned, but if the assignee changes the 27 use of the site the lease reverts to the state. 28  (e) Before entering into a lease under this section, the commissioner shall 29 require the lessee to post a performance bond or provide other security to cover the 30 costs to the department of restoring the leased site in the event the lessee abandons the 31 site.

01  (f) The commissioner shall adopt regulations establishing criteria for the 02 approval or denial of leases under this section and for limiting the number of sites for 03 which leases may be issued in an area in order to protect the environment and natural 04 resources of the area. The regulations must provide for the consideration of upland 05 management policies and whether the proposed use of a site is compatible with the 06 traditional and existing uses of the area in which the site is located. 07 * Sec. 29. AS 38.05.090 is repealed and reenacted to read: 08  Sec. 38.05.090. REMOVAL OR REVERSION OF IMPROVEMENTS UPON 09 TERMINATION OF LEASES. (a) Unless otherwise agreed to in writing by the 10 commissioner, a lessee shall remove from a former leasehold all personal property, 11 including above-ground and below-ground tanks, transportable buildings, equipment, 12 machinery, tools, and other goods, not belonging to the state, within 30 days after 13 termination of the lease. 14  (b) Unless otherwise agreed to in writing by the commissioner, the lessee shall 15 restore the leasehold to a good and marketable condition, acceptable to the 16 commissioner, within 120 days after termination of the lease. 17  (c) If the lessee does not remove personal property as required within the time 18 specified under (a) of this section, title to the personal property that remains 19 automatically vests in the state unless the commissioner elects to remove and dispose 20 of the remaining personal property of the lessee. The commissioner may assess upon 21 the lessee the cost of removing and disposing of personal property remaining upon the 22 land. 23  (d) If the lessee does not restore the land within the time period specified 24 under (b) of this section, the commissioner may have the land restored and assess the 25 costs upon the lessee. 26  (e) As part of a lease agreement, and in order to protect the public interest, the 27 commissioner may require terms for removal or reversion of improvements additional 28 to those specified in (a) - (d) of this section. 29  (f) Improvements of a lessee that have become fixtures of the land and that 30 are not removed by that lessee upon termination of the lease shall be leased or 31 purchased by the subsequent lessee or purchaser of the land if the improvements were

01 authorized in the former lease or by permit from the director and if they have a net 02 value of more than $10,000. The net value is the value of the improvements as 03 determined by an appraisal approved by the commissioner, less all rents due the 04 department, all costs of restoration under (d) of this section, and all department 05 expenses estimated to be incurred in making the lease or sale. After termination of the 06 former lessee's lease, and at additional times as determined necessary by the 07 commissioner, the value of the authorized fixtures shall be determined by an 08 independent appraisal made at the cost of the former lessee. A notice or offer by the 09 state to lease or sell formerly leased land under this subsection must state (1) the 10 appraised value of authorized fixtures remaining on the land that must be purchased, 11 and (2) that that cost is included in the lease or purchase price. Out of the proceeds 12 of the lease or sale, the department shall pay to the former lessee the appraised value 13 of the improvements, less all rents due the department, all costs of restoration due the 14 department under (d) of this section, and all department expenses incurred in making 15 the lease or sale. 16  (g) Personal property described in (c) of this section is not subject to AS 34.45 17 (Uniform Unclaimed Property Act). 18 * Sec. 30. AS 38.05.130 is amended to read: 19  Sec. 38.05.130. DAMAGES AND POSTING OF BOND. Except for entry 20 to post mining location corners under AS 38.05.195, 38.05.205, or 38.05.245 upon 21 state or municipal land, rights [RIGHTS] may not be exercised by the state, its 22 lessees, successors, or assigns under the reservation as set out in AS 38.05.125 until 23 the state, its lessees, successors, or assigns make provision to pay the owner of the 24 land full payment for all damages sustained by the owner [,] by reason of entering 25 upon the land. If the owner for any cause refuses or neglects to settle the damages, 26 the state, its lessees, successors, assigns, or an applicant for a lease or contract from 27 the state for the purpose of prospecting for valuable minerals, or option, contract, or 28 lease for mining coal or lease for extracting geothermal resources, petroleum, or 29 natural gas, may enter upon the land in the exercise of the reserved rights after posting 30 a surety bond determined by the director, after notice and an opportunity to be heard, 31 to be sufficient as to form, amount, and security to secure to the owner payment for

01 damages, and may institute legal proceedings in a court where the land is located, as 02 may be necessary to determine the damages that [WHICH] the owner may suffer. 03 * Sec. 31. AS 38.05.131(a) is amended to read: 04  (a) Unless specifically provided otherwise in AS 38.05.132 - 38.05.134, the 05 provisions of AS 38.05.005 - 38.05.037 [AS 38.05.005 - 38.05.040], 38.05.140(f), 06 38.05.180, 38.05.182 - 38.05.184, and 38.05.920 - 38.05.990 apply to the issuance of 07 oil and gas exploration licenses and leases under AS 38.05.132 - 38.05.134. 08 * Sec. 32. AS 38.05.185(a) is amended to read: 09  (a) The acquisition and continuance of rights in and to deposits on state land 10 of minerals, which on January 3, 1959, were subject to location under the mining laws 11 of the United States, shall be governed by AS 38.05.185 - 38.05.275. Nothing in 12 AS 38.05.185 - 38.05.275 affects the law pertaining to the acquisition of rights to 13 mineral deposits owned by any other person or government. The director, with the 14 approval of the commissioner, shall determine that land from which mineral deposits 15 may be mined only under lease, and, subject to the limitations of AS 38.05.300, that 16 land that shall be closed to location under AS 38.05.185 - 38.05.275 [MINING]. 17 State land may not be closed to [MINING OR MINERAL] location under 18 AS 38.05.185 - 38.05.275 except as provided in AS 38.05.300 and unless the 19 commissioner makes a finding that mining would be incompatible with significant 20 surface uses on the state land. State land may not be restricted to mining under lease 21 unless the commissioner determines that potential use conflicts on the state land 22 require that mining be allowed only under written leases issued under AS 38.05.205 23 or the commissioner has determined that the land was mineral in character at the time 24 of state selection. The determinations required under this subsection shall be made in 25 compliance with land classification orders and land use plans developed under 26 AS 38.05.300. 27 * Sec. 33. AS 38.05.190(a) is amended to read: 28  (a) The right to acquire exploration and mining rights under AS 38.05.185 - 29 38.05.275 may be acquired or held only by 30  (1) citizens of the United States at least 18 years of age; 31  (2) legal guardians or trustees of citizens of the United States under 18

01 years of age on behalf of the citizens; 02  (3) persons at least 18 years of age who have declared their intention 03 to become citizens of the United States; 04  (4) [ALIENS AT LEAST 18 YEARS OF AGE IF THE LAWS OF 05 THEIR COUNTRY GRANT LIKE PRIVILEGES TO CITIZENS OF THE UNITED 06 STATES; 07  (5)] corporations organized under the laws of the United States or of 08 any state or territory of the United States and qualified to do business in this state [, 09 EXCEPT THAT IF MORE THAN 50 PERCENT OF THE STOCK OF A 10 CORPORATION IS OWNED OR CONTROLLED BY ALIENS WHO ARE NOT 11 QUALIFIED, THE CORPORATION IS NOT QUALIFIED TO ACQUIRE OR HOLD 12 THE RIGHTS]; 13  (5) [(6)] associations of persons described in (1) - (4) [(1) - (5)] of this 14 subsection. 15 * Sec. 34. AS 38.05.211(d) is repealed and reenacted to read: 16  (d) The rental amount established under this section shall be revised by the 17 commissioner as provided in this section based on changes in the Consumer Price 18 Index for all urban consumers, Anchorage Metropolitan Area (Semi-Annual Average) 19 compiled by the Bureau of Labor Statistics, United States Department of Labor, as 20 revised, rebased or replaced by that bureau. The reference base index is the index for 21 January - June, 1989, as revised or rebased by that bureau. The rental amount shall 22 be revised by the commissioner if the change between the index for the first six 23 months of the current year and the most recent index used to revise the rental, or the 24 reference base index if the rental amount has never been revised, equals or exceeds $5. 25 The rental amount shall be increased or decreased, as appropriate, by an amount equal 26 to the change in the index described in this subsection rounded to the nearest whole 27 $5 unit. The commissioner shall calculate the change in the index annually and, if the 28 rental amount must be revised, shall adopt a regulation establishing the revised rental 29 amount. A revised rental amount applies to a rental payment if the regulation 30 establishing the revised rental amount took effect at least 90 days before the date the 31 rental payment is due.

01 * Sec. 35. AS 38.05.255 is amended to read: 02  Sec. 38.05.255. SURFACE USE OF LAND OR WATER. Surface uses of 03 land or water included within mining properties by owners of those properties shall be 04 limited to those necessary for the prospecting for, extraction of, or basic processing of 05 mineral deposits and shall be subject to reasonable concurrent uses. Leases 06 [PERMITS] for millsites and tailings disposal may be issued [GRANTED] by the 07 director. The leases [PERMITS] shall be conditioned upon payment of a reasonable 08 annual rent [CHARGE] for the lease [USE] and restriction to [CONTINUANCE OF] 09 the limited use. Timber from land open to mining without lease, except timberland, 10 may be used by a mining claimant or prospecting site locator for the mining or 11 development of the location or adjacent claims under common ownership. On other 12 land, timber may be acquired as provided in this chapter. Use of water shall be made 13 in accordance with AS 46.15. 14 * Sec. 36. AS 38.05.255 is amended by adding a new subsection to read: 15  (b) A lease issued under this section is exempt from the provisions of 16 AS 38.05.075 - 38.05.080. The commissioner, by regulation, shall establish 17 appropriate leasing procedures and annual rent amounts for leases under this section. 18 * Sec. 37. AS 38.05.265 is amended to read: 19  Sec. 38.05.265. ABANDONMENT. Failure to properly record a certificate of 20 location or a statement of annual labor, [FILE WITH THE DIRECTOR WITHIN THE 21 TIME PRESCRIBED A LEASE APPLICATION,] pay any required annual rental, pay 22 any required production royalty, or keep location boundaries clearly marked as 23 required by AS 38.05.185 - 38.05.200, 38.05.207 - 38.05.245, 38.05.252 - 38.05.275, 24 [AS 38.05.185 - 38.05.275] and by regulations adopted under these sections constitutes 25 abandonment of all rights acquired under the mining claim, leasehold location, 26 [LEASE,] or site involved, and the claim, location, [LEASE,] or site is subject to 27 relocation by others. A locator or claimant of an abandoned location or a successor 28 in interest may not relocate the location until one year after abandonment. A statement 29 of annual labor that does not accurately set out the essential facts is void and of no 30 effect. If an annual rental or a royalty payment is deficient but is otherwise timely 31 paid, abandonment does not result if full payment is made within

01  (1) the period prescribed by a deficiency notice from the commissioner; 02 or 03  (2) 30 days after a final judgment establishing the amount due if the 04 deficiency amount due was contested. 05 * Sec. 38. AS 38.05 is amended by adding a new section to read: 06 ARTICLE 12A. REMOTE RECREATIONAL CABIN SITE SALES AND LEASES. 07  Sec. 38.05.600. REMOTE RECREATIONAL CABIN SITES. (a) The 08 commissioner may provide for the sale or lease of state land for remote recreational 09 cabin sites in areas of the state with dispersed populations if the land is classified for 10 that purpose under the procedures required by AS 38.05.300 and 38.05.945. Sales 11 under this section shall be at fair market value and the purchaser shall reimburse the 12 state for the appraisal, survey, and platting costs for the recreational cabin site. 13  (b) The annual fee for a remote recreational cabin site lease shall be set by the 14 commissioner so as to ensure that the state receives a fair return for the use granted 15 by the lease for the term of the lease. The commissioner shall establish regulations 16 that specify the application procedures for and the terms and conditions of a remote 17 recreational cabin site lease. A lease must be for a term of not more than five years, 18 and may be renewed for one additional five-year period. At any time during the lease, 19 the lessee may purchase the remote recreational cabin site by having the site appraised 20 and surveyed in a manner acceptable to the department and by paying to the state the 21 fair market value for the site. The lease may not be assigned by the original lessee 22 during the term of the lease. 23  (c) A remote recreational cabin site lease may be terminated by the 24 commissioner before the expiration of the term of the lease if a permittee fails to use 25 the land under lease in the manner required by the terms of the lease. After 26 termination of a remote recreational cabin site lease, improvements or personal 27 property on the land subject to the lease shall be managed in the same manner as 28 required by AS 38.05.090. 29 * Sec. 39. AS 38.05.810(a) is amended to read: 30  (a) Except as otherwise provided in AS 38.05.183(h), the (1) lease, sale, or 31 other disposal of state land or resources may be made to a state or federal agency or

01 political subdivision, (2) [THE] lease, sale, or disposal of coal deposits suitable for 02 mining may be made to a utility owned and operated by a government agency or 03 nonprofit cooperative association organized to participate under the Federal Rural 04 Electrification Act for the purpose of generating electric power and energy or the 05 production of process steam, or both, (3) [OR THE] sale or other disposal of state land 06 may be made to a tax-exempt, nonprofit corporation, association, club, or society 07 organized and operated [EXCLUSIVELY] for the management of a cemetery or a solid 08 waste or other public facility, or (4) sale or other disposal of land within a state 09 subdivision may be made to that subdivision's nonprofit, tax-exempt homeowners' 10 association, for less than the appraised value as determined by the director and 11 approved by the commissioner to be fair and proper and in the best interests of the 12 public, with due consideration given to the nature of the public services or function 13 rendered by the applicant [AGENCY, SUBDIVISION, TAX-EXEMPT, NONPROFIT 14 CORPORATION, ASSOCIATION, CLUB, OR SOCIETY, OR UTILITY MAKING 15 APPLICATION], and of the terms of the grant under which the land was acquired by 16 the state. The commissioner shall ensure, by regulation, deed restriction, covenant, 17 or otherwise, that disposals of land under this subsection serve a public purpose 18 and are in the public interest. 19 * Sec. 40. AS 38.05.850(a) is amended to read: 20  (a) The director, without the prior approval of the commissioner, may issue 21 permits, rights-of-way or easements on state land for roads, trails, ditches, field 22 gathering lines or transmission and distribution pipelines not subject to AS 38.35, 23 telephone or electric transmission and distribution lines, log storage, oil well drilling 24 sites and production facilities for the purposes of recovering minerals from adjacent 25 land under valid lease, and other similar uses or improvements, or revocable, 26 nonexclusive permits for the [LIMITED] personal or commercial use or removal of 27 resources that the director has determined to be of limited value [OF TIMBER OR 28 MATERIALS]. The commissioner, upon recommendation of the director, shall 29 establish a reasonable rate or fee schedule to be charged for these uses, subject to the 30 exception for nonprofit cooperative associations specified in (b) of this section. In the 31 granting, suspension or revocation of a permit or easement of land, the director shall

01 give preference to that use of the land which will be of greatest economic benefit to 02 the state and the development of its resources. However, first preference shall be 03 granted to the upland owner for the use of a tract of tideland, or tideland and 04 contiguous submerged land, which is seaward of the upland property of the upland 05 owner and which is needed by the upland owner for any of the purposes for which the 06 use may be granted. 07 * Sec. 41. AS 38.05.945(a) is amended to read: 08  (a) This section establishes the requirements for notice given by the department 09 for the following actions: 10  (1) classification or reclassification of state land under AS 38.05.300 11 and the closing of land to mineral leasing or entry under AS 38.05.185; 12  (2) zoning of land under applicable law; 13  (3) issuance of a 14  (A) preliminary written finding under AS 38.05.035(e)(5)(A) 15 regarding the sale, lease, or disposal of an interest in state land or resources for 16 oil and gas subject to AS 38.05.180(b); 17  (B) final written finding under AS 38.05.035(e)(5)(B) regarding 18 the sale, lease, or disposal of an interest in state land or resources for oil and 19 gas subject to AS 38.05.180(b); 20  (C) written finding for the sale, lease, or disposal of an interest 21 in state land or resources under AS 38.05.035(e)(6); 22  (4) a competitive disposal of an interest in state land or resources after 23 final decision under AS 38.05.035(e); 24  (5) [A PUBLIC HEARING UNDER AS 38.05.856(b); 25  (6)] a preliminary finding under AS 38.05.035(e) [AND 38.05.855(c)] 26 concerning sites for aquatic farms and related hatcheries; 27  (6) [(7)] a decision under AS 38.05.132 - 38.05.134 regarding the sale, 28 lease, or disposal of an interest in state land or resources. 29 * Sec. 42. AS 38.08.030(b) is amended to read: 30  (b) Fees for filing an application may not exceed $25 [$10]. 31 * Sec. 43. AS 38.08.040(a) is amended to read:

01  (a) An applicant meeting the qualifications for homesite entry under 02 AS 38.08.030 and selected under (f) of this section shall be issued a revocable permit 03 to occupy and improve the homesite in order to qualify for issuance of patent as 04 provided in this chapter. The holder of a homesite entry permit shall pay, in 05 advance, an annual rental fee of $100. [THE APPLICATION FEE IS THE SOLE 06 RENT CHARGEABLE ON THE PERMIT FOR ITS DURATION.] 07 * Sec. 44. AS 38.08.040 is amended by adding a new subsection to read: 08  (f) If only one application for a homesite parcel is received, the commissioner 09 shall offer an entry permit for the parcel to the applicant provided the applicant is 10 otherwise qualified. If more than one application is received for a parcel, the 11 commissioner shall select by lottery the applicant who is entitled to receive the permit 12 for the parcel. The lottery shall be conducted under regulations adopted by the 13 commissioner that are to the maximum extent practicable consistent with the provisions 14 of AS 38.05.057 and the regulations adopted under that section. 15 * Sec. 45. AS 38.09.010(g) is amended to read: 16  (g) The commissioner may limit the number of persons permitted to obtain 17 [STAKE] homestead entries within an area designated under (a) of this section by a 18 lottery of qualified applicants. [THE COMMISSIONER MAY CONDUCT A 19 LOTTERY HELD UNDER THIS SUBSECTION IN THE COMMUNITY THAT IS 20 CLOSEST TO THE AREA DESIGNATED FOR HOMESTEAD ENTRY. THE 21 COMMISSIONER MAY REQUIRE THAT EACH PARTICIPANT IN THE 22 LOTTERY BE PRESENT UNLESS ATTENDANCE AT THE LOTTERY IS 23 PREVENTED BY 24  (1) MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 25 MILITARY SERVICE OUTSIDE THE STATE; OR 26  (2) A MANDATORY, UNAVOIDABLE EMPLOYMENT 27 COMMITMENT DETERMINED VALID BY THE COMMISSIONER BEFORE THE 28 SALE.] 29 * Sec. 46. AS 38.09.030(a) is amended to read: 30  (a) An applicant for a homestead entry permit shall 31  (1) submit proof acceptable to the commissioner that the applicant is

01 at least 18 years of age and has been a resident of the state for not less than one year 02 immediately before the date of application; 03  (2) pay a fee of $5 per acre according to the description provided by 04 the applicant if the entry is on land classified agricultural, or $20 per acre if the 05 entry is on land not classified agricultural; and 06  (3) agree to comply with the requirements of AS 38.09.050 [; 07  (4) CERTIFY THAT THE CORNERS OF THE LAND ENTERED 08 HAVE BEEN STAKED AND THE BOUNDARIES HAVE BEEN FLAGGED; OR 09  (5) ASSUME FULL RESPONSIBILITY FOR THE ACCURACY OF 10 THE DESCRIPTION OF THE LAND FILED WITH THE COMMISSIONER UNDER 11 AS 38.09.020(b)]. 12 * Sec. 47. AS 38.09.050(a) is amended to read: 13  (a) The commissioner shall issue a patent to homestead entry land if the permit 14 holder 15  (1) either 16  (A) resides and lives on the homestead entry land for not less 17 than 25 months within five years after the issuance of the homestead entry 18 permit and reimburses the state for the survey and platting of the 19 homestead parcel; 20  (B) within five years pays the state the fair market value of 21 the homestead parcel at the time of patent and reimburses the state for the 22 survey and platting of the homestead parcel; or 23  (C) pays to the state the fair market value of the homestead 24 parcel under the terms of a contract under AS 38.05.065 to purchase the 25 parcel, entered into within five years of the issuance of the permit, and 26 reimburses the state for the survey and platting of the parcel; under this 27 subparagraph, the fair market value of the homestead parcel shall be 28 determined as of the date of the contract; and 29  (2) [SUBMITS AN ALIQUOT PARTS DESCRIPTION OR 30 COMPLETES AN APPROVED SURVEY OF THE LAND IN AN AREA WHERE 31 THE COMMISSIONER WAIVES THE RECTANGULAR SURVEY GRID WITHIN

01 FIVE YEARS AFTER THE ISSUANCE OF THE PERMIT; 02  (3) ERECTS A HABITABLE, PERMANENT DWELLING ON THE 03 HOMESTEAD WITHIN THREE YEARS AFTER THE ISSUANCE OF THE 04 HOMESTEAD ENTRY PERMIT; 05  (4) BRUSHES THE BOUNDARIES OF THE LAND NOT 06 DESCRIBED BY ALIQUOT PARTS OR AS A LOT OF RECORD WITHIN 90 07 DAYS AFTER THE ISSUANCE OF THE PERMIT; 08  (5)] clears and either puts into production or prepares for cultivation 09 either 25 percent of the land classified for agricultural use or 50 percent of the 10 cropland soils, whichever is less, within five years after issuance of the permit. 11 * Sec. 48. AS 38.09.050(b) is amended to read: 12  (b) Nothing in this chapter prohibits a homestead entry permit holder from 13 residing in a temporary dwelling on the homestead [BEFORE ERECTION OF THE 14 PERMANENT DWELLING]. 15 * Sec. 49. AS 38.09 is amended by adding a new section to read: 16  Sec. 38.09.105. REMOVAL OF CONDITIONS ON REMOTE PARCEL AND 17 HOMESTEAD ENTRY LAND. (a) The commissioner may not include the 18 conditions of former AS 38.05.078(d) in a remote parcel purchase contract issued on 19 or after the effective date of this section. 20  (b) The commissioner shall amend a remote parcel or homestead entry land 21 purchase contract or patent issued before the effective date of this section to remove 22 the conditions of former AS 38.05.078(d) or former AS 38.09.050(e) if the holder of 23 the purchase contract or patent 24  (1) requests the amendment; 25  (2) pays the reasonable administrative costs of the amendment as 26 determined by the commissioner; and 27  (3) pays the difference, as established by the commissioner, between 28 the land's fair market value before the amendment and the estimated fair market value 29 after the amendment. 30 * Sec. 50. AS 38.95 is amended by adding a new section to read: 31 ARTICLE 7. NO OBLIGATION TO PROVIDE SERVICES TO DISPOSALS

01 OF STATE LAND; NO LIMITATION ON FURTHER DISPOSALS. 02  Sec. 38.95.300. DISCLAIMER APPLICABLE TO STATE DISPOSALS. 03 Except as otherwise specifically provided, nothing in this title 04  (1) obligates the state to provide services to land that is disposed of by 05 the state, or any grantee of the state, or is the subject of any disposal program; 06  (2) limits the authority of the state to dispose of land or any interest 07 in land or resources in the area of the current disposal, provides any exclusive right 08 or interest in the area of the disposal, or implies or requires that any disposals made 09 will be limited in type or any other manner. 10 * Sec. 51. AS 38.04.020(c), 38.04.020(f), 38.04.020(j), 38.04.020(k); 11 AS 38.05.035(e)(6)(F), 38.05.040, 38.05.057(g), 38.05.057(j), 38.05.079, 38.05.207, 38.05.855, 12 38.05.856, 38.05.945(g), 38.05.946(b); AS 38.08.090; AS 38.09.010(e), 38.09.020, 13 38.09.040(a)(2), 38.09.040(a)(3), 38.09.040(a)(4), 38.09.050(d), 38.09.050(e), 38.09.060, 14 38.09.070, 38.09.090, 38.09.900(1), 38.09.900(3), and 38.09.900(4) are repealed. 15 * Sec. 52. Notwithstanding AS 41.21.120 - 41.21.125, within Township 10 North, Range 16 1 East, Seward Meridian, the commissioner of natural resources may 17 (1) convey a property interest in land to the Alaska Railroad Corporation for 18 the purpose of realigning the railroad in conjunction with the relocation of the Seward 19 Highway, provided that the property interest conveyed must be equivalent to that conveyed 20 to the state-owned railroad under 45 U.S.C. 1201 - 1214 (Alaska Railroad Transfer Act of 21 1982) and shall be held and managed by the Alaska Railroad Corporation under AS 42.40; 22 (2) grant a 300 foot wide highway easement to the Department of 23 Transportation and Public Facilities for the relocated Seward Highway; 24 (3) grant a 100 foot wide utility easement to Chugach Electric Association, 25 Inc., for the relocation of the 115 kilovolt electric transmission line (Federal Power 26 Commission project no. 2170, AA-39417, and ADL 32417) and the electric distribution line 27 (A-029885) located within the Chugach State Park. 28 * Sec. 53. A disposal by the Department of Natural Resources of a homesite under 29 AS 38.08 by lottery, on or after July 6, 1984, and before the effective date of this section, is 30 valid and effective, notwithstanding the fact that the disposal was by lottery, if the disposal 31 otherwise complied with the requirements of AS 38.08.

01 * Sec. 54. APPLICABILITY. The change to the interest rate to be charged on contracts 02 for the sale of land under AS 38.05.065, made by secs. 18 - 20 of this Act, applies to all 03 contracts under AS 38.05.065 sent by the Department of Natural Resources to purchasers for 04 signature on or after the effective date of secs. 18 - 20 of this Act. 05 * Sec. 55. REVISOR'S INSTRUCTION. The amendments to AS 38.05.082(b), made by 06 sec. 25 of this Act, do not affect the amendments made to that subsection by sec. 3, ch. 27, 07 SLA 1991, effective January 1, 1997. Unless amended or repealed by Act of the legislature 08 after the effective date of this section, the amendments to AS 38.05.082(b), made by sec. 25 09 of this Act, continue in effect after the amendments made by sec. 3, ch. 27, SLA 1991, take 10 effect January 1, 1997. 11 * Sec. 56. TRANSITIONAL PROVISIONS: REGULATIONS. (a) Notwithstanding 12 sec. 58 of this Act, the Department of Natural Resources may proceed to adopt regulations 13 necessary to implement the changes made by this Act. The regulations take effect under 14 AS 44.62 (Administrative Procedure Act), but not before July 1, 1996. 15 (b) To the extent they are consistent with AS 38.08, regulations governing the 16 selection of applicants for homesite parcels under AS 38.08 in effect on the effective date of 17 secs. 43 and 44 of this Act remain in effect notwithstanding the amendment to AS 38.08.040, 18 made by secs. 43 and 44 of this Act, until the regulations are amended, repealed, or 19 superseded. 20 * Sec. 57. RETROACTIVE EFFECT. (a) To the maximum extent constitutionally 21 permissible, sec. 1 of this Act is retroactive to January 3, 1959. 22 (b) The amendment made by sec. 30 of this Act is retroactive to May 2, 1959, the 23 effective date of ch. 169, SLA 1959, and applies to exempt the state, its lessees, successors, 24 and assigns, including but not limited to an applicant for a lease or contract from the state for 25 the purpose of prospecting for valuable minerals, or an applicant for an option, contract, or 26 lease for mining coal or lease for extracting geothermal resources, petroleum, or natural gas, 27 from liability for damages sustained by the state or a municipality by reason of an entry upon 28 the land under AS 38.05.130 to post mining location corners when the entry on the land is 29 authorized by AS 38.05.195, 38.05.205, or 38.05.245 and the entry on the land was made on 30 or after May 2, 1959. 31 * Sec. 58. Except for secs. 1, 30, 56, and 57 of this Act, this Act takes effect July 1, 1996.

01 * Sec. 59. Sections 1, 30, 56, and 57 of this Act take effect immediately under 02 AS 01.10.070(c).