CSHB 109(FIN): "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."
00CS FOR HOUSE BILL NO. 109(FIN) 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 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 amount of funding estimated to be necessary to allow survey and
01 disposal of land that the commissioner proposes to be offered for (1) homestead entry 02 under AS 38.09, (2) agricultural, commercial, industrial, or other uses under 38.05.055 03 or 38.05.057, or (3) other subdivisions. The appropriation request must include the 04 general location of the land, the estimated income of the proposal, and the estimated 05 cost necessary to develop and market the land. 06 * Sec. 7. AS 38.04.020(g) is amended to read: 07 (g) The [AFTER JULY 1 OF EACH YEAR, THE] commissioner shall direct 08 the expenditure of money appropriated for the disposal of land in response to requests 09 made under (e) [AND (f)] of this section for the following: 10 (1) land [LAND] designated as suitable for homestead disposal shall 11 be [CLASSIFIED AND] surveyed under this chapter and AS 38.05 and made available 12 for entry [STAKING AND LEASE] under AS 38.09; [.] 13 (2) land [LAND] designated as suitable for subdivision and homesite 14 disposal shall be surveyed, subdivided, [CLASSIFIED,] and disposed of under this 15 chapter, AS 38.05, and AS 38.08; [.] 16 (3) land [LAND] designated agricultural, commercial, industrial, or 17 suitable for other disposal shall be sold under AS 38.05.055 or 38.05.057. 18 * Sec. 8. AS 38.04.020(h) is amended to read: 19 (h) Individual parcels disposed of in subdivisions intended for private 20 residential or recreational use may not exceed five acres unless the commissioner 21 determines that a larger size is necessary to comply with municipal ordinances; [,] to 22 permit the design of a viable subdivision because of topographical features, soil 23 conditions, on-site sewage disposal requirements, or water drainage or supply 24 considerations that are unique to the subdivision; to increase the return to the state 25 from the sale of the parcels; [,] to minimize adverse effect on wildlife, fishery, public 26 recreation, timber, or other significant resources in the area; [,] or to minimize adverse 27 effect on other residential uses in the area. 28 * Sec. 9. AS 38.04.020(i) is amended to read: 29 (i) Nothing in this section prevents the disposal of other land by the 30 commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.070, the issuance of 31 remote recreational cabin site leases or sales [PERMITS] under AS 38.05.600
01 [AS 38.05.079], AS 38.08, AS 38.09, or other law. 02 * Sec. 10. AS 38.04.021(a) is amended to read: 03 (a) A municipality may apply for financial assistance for the execution of a 04 land disposal program of general grant land entitlements received from the state under 05 AS 29.65 or former AS 29.18.201 - 29.18.213 by submitting a request to the 06 commissioner for inclusion in the request submitted to the governor [LEGISLATURE] 07 under AS 38.04.020(e). A municipality may request financial assistance for expenses 08 of surveying land, designing subdivision plats, installing improvements required by 09 municipal ordinance or regulation of the local platting authority, and other reasonable 10 direct costs of land disposal. 11 * Sec. 11. AS 38.04.021(b) is amended to read: 12 (b) A request by a municipality under this section must be accompanied by 13 (1) a schedule for the disposal of municipal land for the next five years; 14 the schedule shall be based on an assessment of the demand for private land within the 15 municipality [AND INCLUDED IN THE ASSESSMENT SUBMITTED UNDER 16 AS 38.04.020(f)]; 17 (2) an estimate of the number of acres of municipal land that the 18 municipality plans to dispose of during each fiscal year of the five-year period; 19 (3) a description of the methods to be used for the disposal of 20 municipal land and the terms under which it will be offered to the public; and 21 (4) a description of the municipal land that the municipality plans to 22 dispose of each fiscal year during the five-year period. 23 * Sec. 12. AS 38.04.030 is amended to read: 24 Sec. 38.04.030. Land availability programs. Programs that may be used by 25 the director to make the state's land surface available for private use under 26 AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 27 estate, including conveyance of agricultural use rights; leasing; [OPEN-TO-ENTRY;] 28 homesiting; homesteading; permitting for construction and occupation of cabins in 29 isolated locations on land retained in state ownership; and other methods as provided 30 by regulation or other law. Notwithstanding a contrary provision of this title, a 31 land availability program adopted by regulation must provide for competitive
01 disposal, based on no less than fair market value, to serve the best interests of the 02 state. 03 * Sec. 13. AS 38.04.035 is amended to read: 04 Sec. 38.04.035. Criteria for program selection. In determining which land 05 availability program is appropriate for state land in different locations, the director 06 shall be guided by the following criteria: 07 (1) to cover public costs associated with private land use and to provide 08 the public with a fair return for publicly owned property, conveyance of state land to 09 private parties shall [SHOULD] be at fair market value except where otherwise 10 authorized by statute, or by an administrative regulation the adoption of which is 11 specifically permitted by statute; 12 (2) sale or lease programs should be used where land is readily 13 accessible to a major community center or where, because of a prime location on 14 waterfront or a transportation route or some other location characteristic, land has 15 relatively high real estate value; 16 (3) sale programs are preferred but lease programs may [SHOULD] be 17 used 18 (A) where special land use controls are required and there is a 19 high public interest in having certain types of land used for particular purposes; 20 (B) when the intended use is a temporary one; 21 (C) in commercial or industrial situations when a leasehold can 22 provide cash flow advantages to the lessee; 23 (D) when a unique location with special public values is 24 involved, as in a deep water port, hydroelectric site, or aquaculture facility; 25 (E) where current demand for private use is high, but 26 projections suggest that, in the future, the land may be more valuable for public 27 use, as in accessible waterfront recreation areas; 28 (4) [FOR ENABLING ISOLATED CABIN DEVELOPMENT IN 29 REMOTE LOCATIONS WHERE SURVEY AND CONVEYANCE IS 30 IMPRACTICAL, OR WHERE DISPOSAL OF LAND WOULD CAUSE POTENTIAL 31 CONFLICTS WITH OTHER RESOURCES AND USES, OR WHERE A LONG-
01 RANGE INTEREST IN PUBLIC OWNERSHIP AND USE EXIST, A SYSTEM FOR CABIN 02 PERMITS ON PUBLIC LAND MAY BE USED; 03 (5)] limited or conditional title may be granted when the state's best 04 interest so dictates; among other things, title limitations may include grants of 05 agricultural interest only, retention of development rights, and retention of scenic or 06 other easements; a conditional title may be tied to a development schedule or other 07 standards of performance. 08 * Sec. 14. AS 38.04.045(b) is amended to read: 09 (b) Before the issuance of a long-term lease under AS 38.05.070 or of a patent 10 for state land, an official cadastral survey shall be accomplished, unless a comparable, 11 approved survey exists that has been conducted by the federal Bureau of Land 12 Management. Before land may be offered under AS 38.08 or AS 38.09, or before land 13 may be offered under AS 38.05.055 or 38.05.057, except land that is classified for 14 agricultural uses, an official rectangular survey grid shall be established. The 15 rectangular survey section corner positions shall be monumented and shown on a 16 cadastral survey plat approved by the state. For those areas where the state may wish 17 to convey surface estate outside of an official rectangular survey grid, the 18 commissioner may waive monumentation of individual section corner positions and 19 substitute an official control survey with control points being monumented and shown 20 on control survey plats approved by the state. The commissioner may not issue more 21 than one conveyance for each section within a township outside of an official 22 rectangular survey grid. Land to be conveyed may not be located more than two miles 23 from an official survey control monument except that the commissioner may waive this 24 requirement on a determination that a single purpose use does not justify the 25 requirement if the existing status of the land is known with reasonable certainty. The 26 lots and tracts in state subdivisions shall be monumented and the cadastral survey and 27 plats for the subdivision shall be approved by the state. Where land is located within 28 a municipality with planning, platting, and zoning powers, plats for state subdivisions 29 shall comply with local ordinances and regulations in the same manner and to the same 30 extent as plats for subdivisions by other landowners. State subdivisions shall be filed 31 and recorded in the district recorder's office. The requirements of this section do not
01 apply to land made available [THROUGH A CABIN PERMIT SYSTEM,] for material 02 sales, for short-term leases, or for parcels adjoining a surveyed right-of-way [, OR 03 FOR LAND THAT HAS BEEN OPEN TO RANDOM STAKING UNDER THE 04 REMOTE PARCEL PROGRAM OR HOMESTEAD PROGRAM IN THE PAST]; 05 however, for short-term leases, the lessee shall comply with local subdivision 06 ordinances unless waived by the municipality under procedures specified by ordinance. 07 In this subsection, "a single purpose use" includes a communication site, an aid to 08 navigation, and a park site. 09 * Sec. 15. AS 38.05.050 is amended to read: 10 Sec. 38.05.050. Disposal of land for private ownership. The commissioner 11 shall determine the land to be disposed of for private use. The commissioner shall 12 determine the time and place of disposal. An auction sale, a lottery sale, or a disposal 13 of land for homesites may [SHALL] be held in a community that is near the land to 14 be sold or disposed of. 15 * Sec. 16. AS 38.05.055 is amended to read: 16 Sec. 38.05.055. Auction sale procedures. Unless another method of sale is 17 required under this chapter, [AS 38.07, OR] AS 38.08, or AS 38.09, the sale of state 18 land shall be made at public auction to the highest qualified bidder as determined by 19 the director. The director may accept bids and sell state land under this section at no 20 less than 70 percent of the appraised fair market value of the land. To qualify to 21 participate under this section in a public auction of state land that is other than 22 commercial, industrial, or agricultural land, a bidder shall have been a resident of the 23 state for at least one year immediately preceding the date of the auction and submit 24 proof of that fact, as the commissioner requires by regulation. [A BIDDER MUST 25 APPEAR IN PERSON AT THE AUCTION UNLESS MEDICAL REASONS, 26 ATTENDANCE AT SCHOOL, OR MILITARY SERVICE OUTSIDE THE STATE 27 PREVENT ATTENDANCE.] A bidder may be represented by an attorney or agent 28 at the auction [IF THE LAND OFFERED FOR DISPOSAL IS COMMERCIAL, 29 INDUSTRIAL, OR AGRICULTURAL LAND]. An aggrieved bidder may appeal to 30 the commissioner within five days after the sale for a review of the director's 31 determination. The sale shall be conducted by the director, and, at the time of sale,
01 the successful bidder shall deposit an amount equal to five percent of the purchase 02 price. The director shall immediately issue a receipt containing a description of the 03 land or property purchased, the price bid, and the amount deposited. The receipt shall 04 be acknowledged in writing by the bidder. 05 * Sec. 17. AS 38.05.057(a) is amended to read: 06 (a) The commissioner may dispose of land, including land limited to use for 07 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 08 the fair market value of the land as determined by the commissioner. The 09 commissioner may sell land by lottery for less than the fair market value of the land 10 on a determination that scarcity of land for private use in the area of the land to be 11 sold has resulted in unrealistic land values. [THE COMMISSIONER SHALL 12 CONSULT WITH THE ASSESSOR OF A MUNICIPALITY BEFORE 13 DETERMINING THE PURCHASE PRICE FOR LAND THAT IS LOCATED IN 14 THE MUNICIPALITY AND THAT IS TO BE SOLD UNDER THIS SECTION.] The 15 lottery shall be conducted in public by the commissioner. A [AN APPLICANT MAY 16 NOT BE SELECTED TO PURCHASE LAND UNLESS THE APPLICANT IS 17 PRESENT ON THE DATE AND AT THE PLACE THAT THE LOTTERY IS 18 CONDUCTED UNLESS MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 19 MILITARY SERVICE OUTSIDE THE STATE PREVENT ATTENDANCE. AN 20 APPLICANT MAY BE REPRESENTED BY AN AGENT ON THE DAY OF THE 21 LOTTERY IF THE LAND OFFERED FOR SALE IS COMMERCIAL, 22 INDUSTRIAL, OR AGRICULTURAL LAND. ON THE DAY OF THE LOTTERY 23 A] purchaser selected by lot shall deposit an amount equal to five percent of the 24 purchase price within 30 days after receiving notification of the selection. 25 * Sec. 18. AS 38.05.065(a) is amended to read: 26 (a) The contract of sale for land sold at public auction under AS 38.05.055 27 shall require the remainder of the purchase price to be paid in monthly, quarterly, or 28 annual installments over a period of not more than 20 years, with interest at the 29 [PREVAILING] rate provided in (i) of this section [FOR REAL ESTATE 30 MORTGAGE LOANS MADE BY THE FEDERAL LAND BANK FOR THE FARM 31 CREDIT DISTRICT FOR ALASKA AT THE TIME THE CONTRACT IS SIGNED].
01 Installment payments plus interest shall be set on the level-payment basis. 02 * Sec. 19. AS 38.05.065(b) is amended to read: 03 (b) The contract of sale for land sold under AS 38.05.057 or under former 04 AS 38.05.078 shall require the remainder of the purchase price to be paid in monthly, 05 quarterly, or annual installments over a period of not more than 20 years. Installment 06 payments plus interest shall be set on the level-payment basis. The interest rate to be 07 charged on installment payments is the [PREVAILING] rate provided in (i) of this 08 section [FOR REAL ESTATE MORTGAGE LOANS MADE BY THE FEDERAL 09 LAND BANK FOR THE FARM CREDIT DISTRICT FOR ALASKA AT THE TIME 10 THE CONTRACT IS SIGNED]. 11 * Sec. 20. AS 38.05.065 is amended by adding a new subsection to read: 12 (i) The interest rate for contracts under this section is the prime rate as 13 reported in the Wall Street Journal on the first business day of the month in which the 14 contract is sent to the purchaser for signature, plus four percent; however, the total rate 15 of interest may not exceed 16 (1) 9.5 percent, in contracts for the sale of land classified under 17 AS 38.05.020(b)(6) for agricultural uses; or 18 (2) 13.5 percent, in other contracts for the sale of land. 19 * Sec. 21. AS 38.05.067(d) is amended to read: 20 (d) This section does not apply to the sale of state land under AS 38.05.057, 21 AS 38.08, or [AS 38.04.020(g)(2) AND] AS 38.09. 22 * Sec. 22. AS 38.05.069(e)(2) is repealed and reenacted to read: 23 (2) "adjacent" means that a tract of land has one common boundary 24 point with presently held land or is separated from the presently held land only by a 25 physical barrier such as a road or stream. 26 * Sec. 23. AS 38.05.075(a) is amended to read: 27 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, [38.05.079,] 28 38.05.082, 38.05.083, 38.05.087, 38.05.102, 38.05.600, 38.05.810, and this section, 29 leasing shall be made at public auction to the highest qualified bidder as determined 30 by the commissioner. In the public notice of a lease to be offered at public auction, 31 the commissioner shall specify a minimum acceptable bid and the lease compensation
01 method. The lease compensation method shall be designed to maximize the return on 02 the lease to the state and shall be a form of compensation set out in AS 38.05.073(m). 03 An aggrieved bidder may appeal to the commissioner within five days for a review of 04 the determination. The leasing shall be conducted by the commissioner and the 05 successful bidder shall deposit at the auction the first year's rental or other lease 06 compensation as specified by the commissioner, or that portion of it that the 07 commissioner requires in accordance with the bid. The commissioner shall require, 08 under AS 38.05.860, qualified bidders to deposit a sum equal to any survey or 09 appraisal costs reasonably incurred by another qualified bidder acting in accordance 10 with the regulations of the commissioner or incurred by the department under 11 AS 38.04.045 and AS 38.05.840. If a bidder making a deposit of survey or appraisal 12 costs is determined by the commissioner to be the highest qualified bidder under this 13 subsection, the deposit shall be paid to the unsuccessful bidder who incurred those 14 costs or to the department if the department incurred the costs. All costs for survey 15 and appraisal shall be approved in advance in writing by the commissioner. The 16 commissioner shall immediately issue a receipt containing a description of the land or 17 interest leased, the price bid, and the terms of the lease to the successful qualified 18 bidder. If the receipt is not accepted in writing by the bidder under this subsection, 19 the commissioner may offer the land for lease again under this subsection. A lease, 20 on a form approved by the attorney general, shall be signed by the successful bidder 21 and by the commissioner within the period specified in the auction notice. 22 * Sec. 24. AS 38.05.075(c) is amended to read: 23 (c) The owner or lessee of land that fronts on shoreland, tideland, [TIDE] or 24 submerged land of the state may be granted a preference right to [IS ENTITLED 25 TO ACQUIRE] a lease for the shoreland, tideland, or [TIDE AND] submerged land 26 without competitive bidding if the director determines that 27 (1) the lease of the shoreland, tideland, [TIDE] or submerged land is 28 necessary to facilitate water transportation of goods, services, or resources to or from 29 the owned or leased upland or for another water-dependent purpose; 30 (2) the proposed use of the shoreland, tideland, [TIDE] or submerged 31 land is compatible with the classification of the land and with any applicable land use
01 plan adopted under AS 38.04.065; and 02 (3) issuance of the lease to the shoreland, tideland, [TIDE] or 03 submerged land will not interfere with prior existing rights to the leased land. 04 * Sec. 25. AS 38.05.075(d) is amended to read: 05 (d) If the commissioner issues a lease under (c) of this section, the right of 06 access to the shoreland, tideland, or [TIDE AND] submerged land shall be 07 nonexclusive in the lessee unless the commissioner grants the lessee the exclusive right 08 to use the shoreland, tideland, or [TIDE AND] submerged land. 09 * Sec. 26. AS 38.05.083 is repealed and reenacted to read: 10 Sec. 38.05.083. Aquatic farming and hatchery site leases. (a) The 11 commissioner may offer to the public for lease at public auction under AS 38.05.075 12 or by negotiation under AS 38.05.070 a site for aquatic farming or related hatchery 13 operations. Before a final decision to issue or renew a lease under this section, the 14 commissioner shall give notice and allow opportunity for comment in accordance with 15 AS 38.05.945 and may hold a hearing to take testimony. Before a final decision to 16 issue or renew a lease under this section, the commissioner shall consider all relevant 17 comment or testimony submitted under this section, AS 38.05.945, or 38.05.946. 18 (b) The commissioner, for good cause, may deny an application for issuance 19 or renewal of a lease under this section but shall provide the applicant with written 20 findings that explain the reasons for the denial. 21 (c) A site may be leased under this section for not less than the appraised fair 22 market value of the lease. The value of the lease shall be reappraised every five years. 23 (d) A lease under this section may be assigned, but, if the assignee changes 24 the use of the site, the lease reverts to the state. 25 (e) Before entering into a lease under this section, the commissioner shall 26 require the lessee to post a performance bond or provide other security to cover the 27 costs to the department of restoring the leased site in the event the lessee abandons the 28 site. 29 (f) The commissioner shall adopt regulations establishing criteria for the 30 approval or denial of leases under this section and for limiting the number of sites for 31 which leases may be issued in an area in order to protect the environment and natural
01 resources of the area. The regulations must provide for the consideration of upland 02 management policies and whether the proposed use of a site is compatible with the 03 traditional and existing uses of the area in which the site is located. 04 * Sec. 27. AS 38.05.090 is repealed and reenacted to read: 05 Sec. 38.05.090. Removal or reversion of improvements upon termination 06 of leases. (a) Unless otherwise agreed to in writing by the commissioner, a lessee 07 shall remove from a former leasehold 08 (1) all personal property, including above-ground and below-ground 09 tanks, transportable buildings, equipment, machinery, tools, and other goods, not 10 belonging to the state, within 30 days after termination of the lease; and 11 (2) all buildings and fixtures, including gravel pads, foundations, and 12 slabs, not belonging to the state, within 60 days after termination of the lease. 13 (b) Unless otherwise agreed to in writing by the commissioner, the lessee shall 14 restore the leasehold to a good and marketable condition, acceptable to the 15 commissioner, within 120 days after termination of the lease. 16 (c) If the lessee does not remove personal property, buildings, and fixtures as 17 required within the time specified under (a) of this section, title to the personal 18 property, buildings, and fixtures that remain automatically vests in the state unless the 19 commissioner elects to remove and dispose of the remaining personal property, 20 buildings, and fixtures of the lessee. The commissioner may assess upon the lessee 21 the cost of removing and disposing of personal property, buildings, and fixtures 22 remaining upon the 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) Private residential improvements of a lessee that have become fixtures of 30 the land and that are not removed by that lessee upon termination of the lease shall be 31 purchased by the subsequent 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 sale. After termination of the former 06 lessee's lease, and at additional times as determined necessary by the commissioner, 07 the value of the authorized residential fixtures shall be determined by an independent 08 appraisal made at the cost of the former lessee. A notice or offer by the state to sell 09 formerly leased land under this subsection must state (1) the appraised value of 10 authorized residential fixtures remaining on the land that must be purchased, and (2) 11 that that cost is included in the purchase price. Out of the proceeds of the sale, the 12 department shall pay to the former lessee the appraised value of the residential 13 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 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. 28. AS 38.05.131(a) is amended to read: 19 (a) Unless specifically provided otherwise in AS 38.05.132 - 38.05.134, the 20 provisions of AS 38.05.005 - 38.05.037 [AS 38.05.005 - 38.05.040], 38.05.140(f), 21 38.05.180, 38.05.182 - 38.05.184, and 38.05.920 - 38.05.990 apply to the issuance of 22 oil and gas exploration licenses and leases under AS 38.05.132 - 38.05.134. 23 * Sec. 29. AS 38.05 is amended by adding a new section to read: 24 Article 12A. Remote Recreational Cabin Site Sales and Leases. 25 Sec. 38.05.600. Remote recreational cabin sites. (a) The commissioner may 26 provide for the sale or lease of state land for remote recreational cabin sites in areas 27 of the state with dispersed populations if the land is classified for that purpose under 28 the procedures required by AS 38.05.300 and 38.05.945. Sales under this section shall 29 be at fair market value and the purchaser shall reimburse the state for the appraisal, 30 survey, and platting costs for the recreational cabin site. 31 (b) The annual fee for a remote recreational cabin site lease shall be set by the
01 commissioner so as to ensure that the state receives a fair return for the use granted 02 by the lease for the term of the lease. The commissioner shall establish regulations 03 that specify the application procedures for and the terms and conditions of a remote 04 recreational cabin site lease. A lease must be for a term of not more than five years, 05 and may be renewed for one additional five-year period. At any time during the lease, 06 the lessee may purchase the remote recreational cabin site by having the site appraised 07 and surveyed in a manner acceptable to the department and by paying to the state the 08 fair market value for the site. The lease may not be assigned by the original lessee 09 during the term of the lease. 10 (c) A remote recreational cabin site lease may be terminated by the 11 commissioner before the expiration of the term of the lease if a permittee fails to use 12 the land under lease in the manner required by the terms of the lease. After 13 termination of a remote recreational cabin site lease, improvements or personal 14 property on the land subject to the lease shall be managed in the same manner as 15 required by AS 38.05.090. 16 * Sec. 30. AS 38.05.810(a) is amended to read: 17 (a) Except as otherwise provided in AS 38.05.183(h), the (1) lease, sale, or 18 other disposal of state land or resources may be made to a state or federal agency or 19 political subdivision, (2) [THE] lease, sale, or disposal of coal deposits suitable for 20 mining may be made to a utility owned and operated by a government agency or 21 nonprofit cooperative association organized to participate under the Federal Rural 22 Electrification Act for the purpose of generating electric power and energy or the 23 production of process steam, or both, (3) [OR THE] sale or other disposal of state land 24 may be made to a tax-exempt, nonprofit corporation, association, club, or society 25 organized and operated [EXCLUSIVELY] for the management of a cemetery or a solid 26 waste or other public facility, or (4) sale or other disposal of land within a state 27 subdivision may be made to that subdivision's nonprofit, tax-exempt homeowners' 28 association, for less than the appraised value as determined by the director and 29 approved by the commissioner to be fair and proper and in the best interests of the 30 public, with due consideration given to the nature of the public services or function 31 rendered by the applicant [AGENCY, SUBDIVISION, TAX-EXEMPT, NONPROFIT
01 CORPORATION, ASSOCIATION, CLUB, OR SOCIETY, OR UTILITY MAKING 02 APPLICATION], and of the terms of the grant under which the land was acquired by 03 the state. The commissioner shall ensure, by regulation, deed restriction, covenant, 04 or otherwise, that disposals of land under this subsection serve a public purpose 05 and are in the public interest. 06 * Sec. 31. AS 38.05.840(a) is amended to read: 07 (a) Land may not be sold or leased, or a renewal lease issued, except in the 08 case of an oil or gas or mineral lease, unless it has been appraised within two years 09 [ONE YEAR] before the date fixed for the sale or lease. When land is offered at 10 public sale but is not sold and is available at private sale, a reappraisal is not required 11 unless the director considers that a change in value of the land may have occurred. 12 A grazing lease may be granted to a lessee of federal grazing land without prior 13 appraisal [,] if the federal lease was cancelled to allow the state to select the land 14 under lease. Land may not be sold or leased for less than the approved, appraised 15 market value, except as provided in AS 38.05.055, 38.05.057, 38.05.075 - 38.05.085, 16 38.05.097, 38.05.810, and 38.05.820. 17 * Sec. 32. AS 38.05.850(a) is amended to read: 18 (a) The director, without the prior approval of the commissioner, may issue 19 permits, rights-of-way, or easements on state land for roads, trails, ditches, field 20 gathering lines or transmission and distribution pipelines not subject to AS 38.35, 21 telephone or electric transmission and distribution lines, log storage, oil well drilling 22 sites and production facilities for the purposes of recovering minerals from adjacent 23 land under valid lease, and other similar uses or improvements, or revocable, 24 nonexclusive permits for the [LIMITED] personal or commercial use or removal of 25 resources that the director has determined to be of limited value [OF TIMBER OR 26 MATERIALS]. The commissioner, upon recommendation of the director, shall 27 establish a reasonable rate or fee schedule to be charged for these uses, subject to the 28 exception for nonprofit cooperative associations specified in (b) of this section. In the 29 granting, suspension, or revocation of a permit or easement of land, the director shall 30 give preference to that use of the land that [WHICH] will be of greatest economic 31 benefit to the state and the development of its resources. However, first preference
01 shall be granted to the upland owner for the use of a tract of tideland, or tideland and 02 contiguous submerged land, that [WHICH] is seaward of the upland property of the 03 upland owner and that [WHICH] is needed by the upland owner for any of the 04 purposes for which the use may be granted. 05 * Sec. 33. AS 38.05.945(a) is amended to read: 06 (a) This section establishes the requirements for notice given by the department 07 for the following actions: 08 (1) classification or reclassification of state land under AS 38.05.300 09 and the closing of land to mineral leasing or entry under AS 38.05.185; 10 (2) zoning of land under applicable law; 11 (3) issuance of a 12 (A) preliminary written finding under AS 38.05.035(e)(5)(A) 13 regarding the sale, lease, or disposal of an interest in state land or resources for 14 oil and gas subject to AS 38.05.180(b); 15 (B) final written finding under AS 38.05.035(e)(5)(B) regarding 16 the sale, lease, or disposal of an interest in state land or resources for oil and 17 gas subject to AS 38.05.180(b); 18 (C) written finding for the sale, lease, or disposal of an interest 19 in state land or resources under AS 38.05.035(e)(6), except an oil or gas lease 20 sale described in AS 38.05.035(e)(6)(G) for which the director must provide 21 opportunity for public comment under the provisions of that subparagraph; 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. 34. AS 38.05.945(d) is amended to read: 30 (d) Notice at least 30 days before action under (a)(5) [OR (6)] of this section 31 shall be given to appropriate
01 (1) regional fish and game councils established under AS 16.05.260; 02 and 03 (2) coastal resource service areas organized under AS 46.40.110 - 04 46.40.210. 05 * Sec. 35. AS 38.08.030(b) is amended to read: 06 (b) Fees for filing an application may not exceed $25 [$10]. 07 * Sec. 36. AS 38.08.040(a) is amended to read: 08 (a) An applicant meeting the qualifications for homesite entry under 09 AS 38.08.030 and selected under (f) of this section shall be issued a revocable permit 10 to occupy and improve the homesite in order to qualify for issuance of patent as 11 provided in this chapter. The holder of a homesite entry permit shall pay, in 12 advance, an annual rental fee of $100. [THE APPLICATION FEE IS THE SOLE 13 RENT CHARGEABLE ON THE PERMIT FOR ITS DURATION.] 14 * Sec. 37. AS 38.08.040 is amended by adding a new subsection to read: 15 (f) If only one application for a homesite parcel is received, the commissioner 16 shall offer an entry permit for the parcel to the applicant provided the applicant is 17 otherwise qualified. If more than one application is received for a parcel, the 18 commissioner shall select by lottery the applicant who is entitled to receive the permit 19 for the parcel. The lottery shall be conducted under regulations adopted by the 20 commissioner that are to the maximum extent practicable consistent with the provisions 21 of AS 38.05.057 and the regulations adopted under that section. 22 * Sec. 38. AS 38.09.010(g) is amended to read: 23 (g) The commissioner may limit the number of persons permitted to obtain 24 [STAKE] homestead entries within an area designated under (a) of this section by a 25 lottery of qualified applicants. [THE COMMISSIONER MAY CONDUCT A 26 LOTTERY HELD UNDER THIS SUBSECTION IN THE COMMUNITY THAT IS 27 CLOSEST TO THE AREA DESIGNATED FOR HOMESTEAD ENTRY. THE 28 COMMISSIONER MAY REQUIRE THAT EACH PARTICIPANT IN THE 29 LOTTERY BE PRESENT UNLESS ATTENDANCE AT THE LOTTERY IS 30 PREVENTED BY 31 (1) MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR
01 MILITARY SERVICE OUTSIDE THE STATE; OR 02 (2) A MANDATORY, UNAVOIDABLE EMPLOYMENT 03 COMMITMENT DETERMINED VALID BY THE COMMISSIONER BEFORE THE 04 SALE.] 05 * Sec. 39. AS 38.09.030(a) is amended to read: 06 (a) An applicant for a homestead entry permit shall 07 (1) submit proof acceptable to the commissioner that the applicant is 08 at least 18 years of age and has been a resident of the state for not less than one year 09 immediately before the date of application; 10 (2) pay a fee of $5 per acre according to the description provided by 11 the applicant if the entry is on land classified agricultural, or $20 per acre if the 12 entry is on land not classified agricultural; and 13 (3) agree to comply with the requirements of AS 38.09.050 [; 14 (4) CERTIFY THAT THE CORNERS OF THE LAND ENTERED 15 HAVE BEEN STAKED AND THE BOUNDARIES HAVE BEEN FLAGGED; OR 16 (5) ASSUME FULL RESPONSIBILITY FOR THE ACCURACY OF 17 THE DESCRIPTION OF THE LAND FILED WITH THE COMMISSIONER UNDER 18 AS 38.09.020(b)]. 19 * Sec. 40. AS 38.09.050(a) is amended to read: 20 (a) The commissioner shall issue a patent to homestead entry land if the permit 21 holder 22 (1) either 23 (A) resides and lives on the homestead entry land for not less 24 than 25 months within five years after the issuance of the homestead entry 25 permit and reimburses the state for the survey and platting of the 26 homestead parcel; 27 (B) within five years pays the state the fair market value of 28 the homestead parcel at the time of patent and reimburses the state for the 29 survey and platting of the homestead parcel; or 30 (C) pays to the state the fair market value of the homestead 31 parcel under the terms of a contract under AS 38.05.065 to purchase the
01 parcel, entered into within five years of the issuance of the permit, and 02 reimburses the state for the survey and platting of the parcel; under this 03 subparagraph, the fair market value of the homestead parcel shall be 04 determined as of the date of the contract; and 05 (2) [SUBMITS AN ALIQUOT PARTS DESCRIPTION OR 06 COMPLETES AN APPROVED SURVEY OF THE LAND IN AN AREA WHERE 07 THE COMMISSIONER WAIVES THE RECTANGULAR SURVEY GRID WITHIN 08 FIVE YEARS AFTER THE ISSUANCE OF THE PERMIT; 09 (3) ERECTS A HABITABLE, PERMANENT DWELLING ON THE 10 HOMESTEAD WITHIN THREE YEARS AFTER THE ISSUANCE OF THE 11 HOMESTEAD ENTRY PERMIT; 12 (4) BRUSHES THE BOUNDARIES OF THE LAND NOT 13 DESCRIBED BY ALIQUOT PARTS OR AS A LOT OF RECORD WITHIN 90 14 DAYS AFTER THE ISSUANCE OF THE PERMIT; 15 (5)] clears and either puts into production or prepares for cultivation 16 either 25 percent of the land classified for agricultural use or 50 percent of the 17 cropland soils, whichever is less, within five years after issuance of the permit. 18 * Sec. 41. AS 38.09.050(b) is amended to read: 19 (b) Nothing in this chapter prohibits a homestead entry permit holder from 20 residing in a temporary dwelling on the homestead [BEFORE ERECTION OF THE 21 PERMANENT DWELLING]. 22 * Sec. 42. AS 38.09 is amended by adding a new section to read: 23 Sec. 38.09.105. Removal of conditions on remote parcel and homestead 24 entry land. (a) The commissioner may not include the conditions of former 25 AS 38.05.078(d) in a remote parcel purchase contract issued on or after the effective 26 date of this section. 27 (b) The commissioner shall amend a remote parcel or homestead entry land 28 purchase contract or patent issued before the effective date of this section to remove 29 the conditions of former AS 38.05.078(d) or former AS 38.09.050(e) if the holder of 30 the purchase contract or patent 31 (1) requests the amendment;
01 (2) pays the reasonable administrative costs of the amendment as 02 determined by the commissioner; and 03 (3) pays the difference, as established by the commissioner, between 04 the land's fair market value before the amendment and the estimated fair market value 05 after the amendment. 06 * Sec. 43. AS 38.95 is amended by adding a new section to read: 07 Article 7. No Obligation to Provide Services to Disposals 08 of State Land; No Limitation on Further Disposals. 09 Sec. 38.95.300. Disclaimer applicable to state disposals. Except as otherwise 10 specifically provided, nothing in this title 11 (1) obligates the state to provide services to land that is disposed of by 12 the state, or any grantee of the state, or is the subject of any disposal program; 13 (2) limits the authority of the state to dispose of land or any interest 14 in land or resources in the area of the current disposal, provides any exclusive right 15 or interest in the area of the disposal, or implies or requires that any disposals made 16 will be limited in type or any other manner. 17 * Sec. 44. AS 38.04.020(c), 38.04.020(f), 38.04.020(j), 38.04.020(k); AS 38.05.040, 18 38.05.057(g), 38.05.057(j), 38.05.079, 38.05.855, 38.05.856, 38.05.946(b); AS 38.08.090; 19 AS 38.09.010(e), 38.09.020, 38.09.040(a)(2), 38.09.040(a)(3), 38.09.040(a)(4), 38.09.050(d), 20 38.09.050(e), 38.09.060, 38.09.070, 38.09.090, 38.09.900(1), 38.09.900(3), and 38.09.900(4) 21 are repealed. 22 * Sec. 45. Notwithstanding AS 41.21.120 - 41.21.125, within Township 10 North, Range 23 1 East, Seward Meridian, the commissioner of natural resources may 24 (1) convey a property interest in land to the Alaska Railroad Corporation for 25 the purpose of realigning the railroad in conjunction with the relocation of the Seward 26 Highway, provided that the property interest conveyed must be equivalent to that conveyed 27 to the state-owned railroad under 45 U.S.C. 1201 - 1214 (Alaska Railroad Transfer Act of 28 1982) and shall be held and managed by the Alaska Railroad Corporation under AS 42.40; 29 (2) grant a 300 foot wide highway easement to the Department of 30 Transportation and Public Facilities for the relocated Seward Highway; 31 (3) grant a 100 foot wide utility easement to Chugach Electric Association,
01 Inc., for the relocation of the 115 kilovolt electric transmission line (Federal Power 02 Commission project no. 2170, AA-39417, and ADL 32417) and the electric distribution line 03 (A-029885) located within the Chugach State Park. 04 * Sec. 46. (a) Notwithstanding the decision of the Alaska Supreme Court in Kachemak 05 Bay Watch v. Noah, _____ P.2d _____ (Sup. Ct. No. S-7326; April 11, 1997), the Department 06 of Natural Resources shall issue a lease under AS 38.05.083, as amended by sec. 26 of this 07 Act, to a person who, on April 10, 1997, held a lease issued under AS 38.05.083 as it read 08 on the day before the effective date of this Act. Notwithstanding AS 38.05.083, as amended 09 by sec. 26 of this Act, the terms and conditions of a lease issued under this subsection shall 10 be substantially similar to the terms of the lease as it read on the day before the effective date 11 of this Act. Notice under AS 38.05.945 and a best interest determination under AS 38.05.035 12 are not required for the issuance of a lease under this subsection. 13 (b) Notwithstanding the repeal of AS 38.05.856 by sec. 41 of this Act and the decision 14 of the Alaska Supreme Court in Kachemak Bay Watch v. Noah, _____ P.2d _____ (Sup. Ct. 15 No. S-7326; April 11, 1997), the Department of Natural Resources shall allow a person who, 16 on April 10, 1997, held a permit issued under former AS 38.05.856 that had not been revoked 17 or for which renewal had not been denied to continue to operate under the terms and 18 conditions of the permit as it read on the day before the effective date of this Act if the person 19 applies within 90 days of the effective date of this Act for a lease under AS 38.05.083, as 20 amended by sec. 26 of this Act. The department shall provide a preference right to a person 21 applying for a lease under this subsection who has developed an aquatic farm site under 22 former AS 38.05.855 by October 1, 1998. The right of a person to continue to operate under 23 the terms and conditions of a previous permit continues until the earlier of the date the 24 person's lease application is denied by the department, the date the person is issued a lease 25 by the department, or July 1, 1999. The right of a person to continue to operate under the 26 terms and conditions of a previous permit as allowed by this subsection is proper 27 notwithstanding a failure of the department to properly identify districts under former 28 AS 38.05.855 before the issuance of the permit. 29 * Sec. 47. A disposal by the Department of Natural Resources of a homesite under 30 AS 38.08 by lottery, on or after July 6, 1984, and before the effective date of this section, is 31 valid and effective, notwithstanding the fact that the disposal was by lottery, if the disposal
01 otherwise complied with the requirements of AS 38.08. 02 * Sec. 48. APPLICABILITY. The change to the interest rate to be charged on contracts 03 for the sale of land under AS 38.05.065, made by secs. 18 - 20 of this Act, applies to all 04 contracts under AS 38.05.065 sent by the Department of Natural Resources to purchasers for 05 signature on or after the effective date of secs. 18 - 20 of this Act. 06 * Sec. 49. TRANSITIONAL PROVISIONS: REGULATIONS. (a) Notwithstanding 07 sec. 51 of this Act, the Department of Natural Resources may proceed to adopt regulations 08 necessary to implement the changes made by this Act. The regulations take effect under 09 AS 44.62 (Administrative Procedure Act), but not before July 1, 1997. 10 (b) To the extent they are consistent with AS 38.08, regulations governing the 11 selection of applicants for homesite parcels under AS 38.08 in effect on the effective date of 12 secs. 36 and 37 of this Act remain in effect notwithstanding the amendment to AS 38.08.040, 13 made by secs. 36 and 37 of this Act, until the regulations are amended, repealed, or 14 superseded. 15 * Sec. 50. RETROACTIVE EFFECT. To the maximum extent constitutionally permissible, 16 sec. 1 of this Act is retroactive to January 3, 1959. 17 * Sec. 51. Except for sec. 49 of this Act, this Act takes effect July 1, 1997. 18 * Sec. 52. Section 49 of this Act takes effect immediately under AS 01.10.070(c).