HCS CSSB 109(FIN): "An Act relating to land used for agricultural purposes and to state land classified for agricultural purposes or subject to the restriction of use for agricultural purposes only; and annulling certain program regulations of the Department of Natural Resources that relate to agricultural land and agricultural homesteads."
00HOUSE CS FOR CS FOR SENATE BILL NO. 109(FIN) 01 "An Act relating to land used for agricultural purposes and to state land 02 classified for agricultural purposes or subject to the restriction of use for 03 agricultural purposes only; and annulling certain program regulations of the 04 Department of Natural Resources that relate to agricultural land and agricultural 05 homesteads." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. LEGISLATIVE INTENT. It is the intent of the legislature in amending 08 AS 38.05.321(a) in sec. 9 of this Act that, for state land classified as agricultural land, the 09 state convey fee title subject to a perpetual covenant running with the land that restricts or 10 limits use of the land for agricultural purposes. 11 * Sec. 2. 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
01 Management. Before land may be offered under [AS 38.05.055, 38.05.057,] AS 38.08 02 [,] or AS 38.09, or before land may be offered under AS 38.05.055 or 38.05.057, 03 except land that is classified for agricultural uses, an official rectangular survey grid 04 shall be established. The rectangular survey section corner positions shall be 05 monumented and shown on a cadastral survey plat approved by the state. For those 06 areas where the state may wish to convey surface estate outside of an official 07 rectangular survey grid, the commissioner may waive monumentation of individual 08 section corner positions and substitute an official control survey with control points 09 being monumented and shown on control survey plats approved by the state. The 10 commissioner may not issue more than one conveyance for each section within a 11 township outside of an official rectangular survey grid. Land [NO PORTION OF 12 LAND] to be conveyed may not be located more than two miles from an official 13 survey control monument except that the commissioner may waive this requirement 14 on a determination that a single purpose use does not justify the requirement if the 15 existing status of the land is known with reasonable certainty. The lots and tracts in 16 state subdivisions shall be monumented and the cadastral survey and plats for the 17 subdivision shall be approved by the state. Where land is located within a 18 municipality with planning, platting, and zoning powers, plats for state subdivisions 19 shall comply with local ordinances and regulations in the same manner and to the same 20 extent as plats for subdivisions by other landowners. State subdivisions shall be filed 21 and recorded in the district recorder's office. The requirements of this section do not 22 apply to land made available through a cabin permit system, for material sales, for 23 short-term leases, for parcels adjoining a surveyed right-of-way, or for land that has 24 been open to random staking under the remote parcel program or homestead program 25 in the past; however, for short-term leases, the lessee shall [MUST] comply with local 26 subdivision ordinances unless waived by the municipality under procedures specified 27 by ordinance. In this subsection, "a single purpose use" includes a communication site, 28 an aid to navigation, and a park site. 29 * Sec. 3. AS 38.04.065(h) is amended to read: 30 (h) Before the commissioner adopts a regional land use plan, a land 31 classification may be made on the basis of a site-specific land use plan, except a
01 classification for a land disposal under AS 38.05.057, AS 38.08, or AS 38.09 [, OR 02 A NEW COMMERCIAL AGRICULTURE PROJECT UNDER AS 38.05.020(b)(6)]. 03 After adoption of a regional land use plan, land classifications shall be made under the 04 plan. 05 * Sec. 4. AS 38.05.020(b) is amended to read: 06 (b) The commissioner may 07 (1) establish reasonable procedures and adopt reasonable regulations 08 necessary to carry out this chapter and, whenever necessary, issue directives or orders 09 to the director to carry out specific functions and duties; regulations adopted by the 10 commissioner shall be adopted under AS 44.62 (Administrative Procedure Act); orders 11 by the commissioner classifying land, issued after January 3, 1959, are not required 12 to be adopted under AS 44.62 (Administrative Procedure Act); 13 (2) enter into agreements considered necessary to carry out the purposes 14 of this chapter, including agreements with federal and state agencies; 15 (3) review any order or action of the director; 16 (4) exercise the powers and do the acts necessary to carry out the 17 provisions and objectives of this chapter; 18 (5) notwithstanding the provisions of any other section of this chapter, 19 grant an extension of the time within which payments due on any exploration license, 20 lease, or sale of state land, minerals, or materials may be made, including payment of 21 rental and royalties, on a finding that compliance with the requirements is or was 22 prevented by reason of war, riots, or acts of God; 23 (6) classify tracts for agricultural uses [AND REQUIRE THE 24 PREQUALIFICATION, INCLUDING THE SUBMISSION OF CONSERVATION 25 PLANS, DEVELOPMENT PLANS, OR OTHER PLANS, SCHEDULES, OR 26 PROGRAMS, OF PERSONS WHO APPLY TO PARTICIPATE IN AN 27 AGRICULTURAL DEVELOPMENT PROJECT UNDER AS 44.33.475]; 28 (7) waive, postpone, or otherwise modify the development requirements 29 of a contract for the sale of agricultural land if 30 (A) the land is inaccessible by road; or [AND] 31 (B) transportation, marketing, and development costs render the
01 required development uneconomic; 02 (8) reconvey or relinquish land or an interest in land to the federal 03 government if 04 (A) the land is described in an amended application for an 05 allotment under 43 U.S.C. 1617; and 06 (B) the reconveyance or relinquishment is 07 (i) for the purposes provided in 43 U.S.C. 1617; and 08 (ii) in the best interests of the state. 09 * Sec. 5. AS 38.05.057(j) is amended to read: 10 (j) The commissioner may require a participant in a lottery under this section 11 for the sale of land that is part of an agricultural development project under former 12 AS 44.33.475 to submit a single application for that land. Immediately following the 13 drawing of an applicant's name in the lottery, the applicant shall be given an 14 opportunity to select for purchase one parcel of the land that is offered in the lottery. 15 The names of alternate applicants shall be drawn after all parcels have been selected. 16 If the applicant who originally selected a parcel unequivocally rejects the offer to 17 purchase the parcel or fails to sign the contract of sale within the period of time 18 specified by the commissioner, the parcel shall be offered for sale to alternate 19 applicants in the order in which their names were drawn. 20 * Sec. 6. AS 38.05.059 is repealed and reenacted to read: 21 Sec. 38.05.059. Sale of agricultural land. The commissioner may provide 22 for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses in parcels 23 or tracts described by aliquot parts. The parcels or tracts are subject to state 24 subdivision requirements and municipal ordinances. 25 * Sec. 7. AS 38.05.065(c) is amended to read: 26 (c) The director shall, for contracts under (a), [OR] (b), or (h) of this section, 27 set out in the contract for each sale the period for the payment of installments and the 28 total purchase price plus interest. The director, with the consent of the commissioner, 29 may also include in contracts under this section conditions, limitations, and terms 30 considered necessary and proper to protect the interest of the state. Violations of any 31 provision of this chapter or the terms of the contract of sale subject the purchaser to
01 appropriate administrative and legal action, including but not limited to specific 02 performance, foreclosure, ejectment, or other legal remedies in accordance with 03 applicable state law. 04 * Sec. 8. AS 38.05.065(h) is amended to read: 05 (h) The commissioner 06 (1) shall provide that, notwithstanding (a) and (b) of this section, 07 in a contract for the sale of land classified under AS 38.05.020(b)(6) for 08 agricultural uses, the interest rate to be charged on installment payments may not 09 exceed 9.5 percent; and 10 (2) may declare a moratorium of up to five years on payments on land 11 sold under this section for [A SALE OF AGRICULTURAL] land classified under 12 AS 38.05.020(b)(6) for agricultural uses [UNDER THIS SECTION] if 13 (A) [(1)] the commissioner determines that the moratorium is 14 in the best interest of the state; 15 (B) [(2)] the commissioner certifies and the contract purchaser 16 agrees to perform farm development, crop production, and harvesting, not 17 including land clearing or related activity, requiring the expenditure of amounts 18 equivalent to the payments that would otherwise be made during the 19 moratorium; 20 (C) [(3)] the sale of the agricultural land takes place after 21 July 1, 1979; and 22 (D) [(4)] the contract purchaser is in compliance with the 23 development plan specified in the purchase contract at the time the purchaser 24 applies for a moratorium under this subsection and remains in compliance with 25 the development plan during the moratorium; for the payments subject to the 26 moratorium declared under this paragraph, interest [. INTEREST] 27 payments are subject to the moratorium but interest continues to accrue during 28 the moratorium. 29 * Sec. 9. AS 38.05.321(a) is repealed and reenacted to read: 30 (a) The department shall include in a document that conveys state land 31 classified as agricultural land
01 (1) a perpetual covenant for the benefit of all Alaska residents and 02 running with the land that restricts or limits the use of the land for agricultural 03 purposes; and 04 (2) one of the following, as appropriate: 05 (A) a perpetual covenant for the benefit of all Alaska residents 06 and running with the land permitting the owner of land that had been obtained 07 under homestead entry to subdivide and convey the land in parcels of not less 08 than 40 acres each; or 09 (B) a perpetual covenant for the benefit of all Alaska residents 10 and running with the land permitting the owner of land that had been obtained 11 by purchase to subdivide and convey not more than four parcels of the land of 12 not less than 40 acres each, subject to the restriction that a subdivided parcel 13 may not be further subdivided. 14 * Sec. 10. AS 38.05.321(b) is amended to read: 15 (b) Subject to (a) of this section, state [STATE] land classified as agricultural 16 land that has been selected by a municipality under former AS 29.18.190 - 29.18.200 17 or former AS 29.18.205(e) may be approved by the director for patent under 18 AS 29.65.050(c) [; HOWEVER, ONLY RIGHTS IN THE LAND FOR 19 AGRICULTURAL PURPOSES MAY BE TRANSFERRED AND ALL OTHER 20 INTERESTS IN THE LAND WILL REMAIN WITH THE STATE]. Agricultural land 21 approved for patent to a municipality shall be credited, acre for acre, toward fulfillment 22 of that municipality's entitlement under AS 29.65.010 - 29.65.030 or former 23 AS 29.18.201 - 29.18.203. [IF THE DIRECTOR LATER DETERMINES IT TO BE 24 IN THE BEST INTERESTS OF THE STATE TO TRANSFER SOME OR ALL OF 25 THE ADDITIONAL RIGHTS IN THAT APPROVED OR PATENTED 26 AGRICULTURAL LAND, THOSE RIGHTS SHALL PASS WITHOUT 27 CONSIDERATION TO THE MUNICIPALITY IN WHICH THE LAND IS 28 LOCATED. THE NOTICE AND REVIEW PROVISIONS OF AS 38.05.945 ARE 29 APPLICABLE TO CONVEYANCE OF RIGHTS UNDER THIS SECTION.] 30 * Sec. 11. AS 38.05.321 is amended by adding new subsections to read: 31 (d) For state land classified as agricultural land that is conveyed under (a) of
01 this section, 02 (1) the commissioner may require the landowner to cooperate with the 03 appropriate soil and water conservation district under AS 41.10 in the development and 04 implementation of soil conservation plans as authorized by AS 41.10.110(6); 05 (2) as a condition of the conveyance, the commissioner may not require 06 preparation and implementation of a schedule of planned agricultural development or 07 a farm development plan specified in a land purchase contract unless the commissioner 08 permits modification of a plan in cases of economic hardship or other extenuating 09 circumstances; 10 (3) the commissioner may not 11 (A) limit the right of the landowner to use the land and 12 improvements for purposes that are incidental to and not inconsistent with the 13 primary use of the land for agricultural purposes; 14 (B) except as provided by (i) of this section, limit the right of 15 a landowner to construct housing for the landowner and farm laborers, to 16 construct improvements for animals, or to construct improvements that are 17 reasonably required for or related to agricultural use on the original parcel and 18 on additional subdivided parcels, not to exceed the limits and restrictions set 19 by (a)(2) of this section; and 20 (C) limit the right of the landowner to subdivide and convey 21 the land if the resulting parcels are not in violation of the limits and restrictions 22 set out in (a)(2) of this section. 23 (e) A landowner may subdivide land classified for agricultural use and for 24 which the landowner obtained a patent under a homestead entry permit issued under 25 AS 38.09 so long as the resulting parcels are not in violation of the minimum parcel 26 size set out in (a) of this section. A landowner may subdivide other land classified for 27 agricultural use as authorized under (d)(3)(C) of this section. If the subdivision 28 involves land classified for agricultural use and for which the landowner obtained a 29 patent under a homestead entry permit issued under AS 38.09, or if the subdivision of 30 land authorized under (d)(3)(C) of this section results only in parcels of 640 acres or 31 more, the landowner may subdivide without payment as required by this subsection.
01 If subdivision of land authorized by (d)(3)(C) of this section would result in one or 02 more parcels of less than 640 acres, the landowner may subdivide only if the 03 landowner first tenders payment to the department for the right to construct housing 04 in each subdivided parcel of less than 640 acres. For purposes of this subsection, the 05 value of the right to construct housing in a subdivided parcel 06 (1) is $4,000 for the parcel, subject to adjustment under (h) of this 07 section; or 08 (2) shall be determined by an appraisal made by an appraiser under 09 contract to the landowner owning the parcel, and the appraisal must include the value, 10 determined as of the date of subdivision, of the right to construct housing by the 11 landowner under (d)(3) of this section. 12 (f) Notwithstanding (e) of this section, the landowner is not required to pay 13 an amount due under (e) of this section until the subdivided parcel is conveyed by the 14 owner to a person not a member of the person's immediate family. The department 15 has a lien on the parcel as security for payment of the amount due. For purposes of 16 this subsection, "immediate family" means 17 (1) the spouse of the person; or 18 (2) a parent, child, including a stepchild and an adoptive child, or 19 sibling of the person if the parent, child, or sibling resides with the person, is 20 financially dependent on the person, or shares a substantial financial interest with the 21 person. 22 (g) A perpetual covenant described in (a) of this section may be enforced only 23 by a civil action brought by the state, a municipality, or a resident. If a municipality 24 or a resident brings an action under this subsection, the municipality or resident shall 25 also serve a copy of the summons and complaint on the state in the manner prescribed 26 by the Alaska Rules of Civil Procedure for service on the state. An action may be 27 maintained under this subsection only if 28 (1) commenced within six years after the cause of action has accrued; 29 and 30 (2) the plaintiff has first notified in writing the appropriate soil and 31 water conservation district under AS 41.10 of the violation of the covenant at least 90
01 days before the civil action is filed. 02 (h) The value of the right to construct housing determined under (e) of this 03 section shall be adjusted to correspond with the change in the consumer price index 04 for all urban consumers for the Anchorage Metropolitan Area compiled by the Bureau 05 of Labor Statistics, United States Department of Labor. The base year for the 06 computation shall be the calendar year in which the process of conveyance of state 07 land authorized by (a) of this section is initiated under this section. 08 (i) The authority given in (d)(3)(B) of this section to construct housing and the 09 payment required under (e) of this section for the right to construct housing do not 10 permit the landowner the right to construct condominiums under AS 34.07 or other 11 common interest ownership communities under AS 34.08. 12 (j) In this section, "agricultural purposes" means 13 (1) the production, for commercial or personal use, of useful plants and 14 animals; 15 (2) the construction of 16 (A) housing for landowners and farm laborers; 17 (B) improvements for animals; or 18 (C) improvements that are reasonably required for or related to 19 agricultural use; 20 (3) the use of gravel reasonably required or related to agricultural 21 production on the parcel conveyed; and 22 (4) removal and disposition of timber in order to bring agricultural land 23 into use. 24 * Sec. 12. CONVERSION OF DISPOSALS MADE UNDER AS 38.05.069(c) OR UNDER 25 FORMER AS 38.05.321(a). (a) The provisions of AS 38.05.321(a), as amended by sec. 9 26 of this Act, apply to state land classified as agricultural land that, under AS 38.05.069(c) or 27 under AS 38.05.321(a) before its amendment by sec. 9 of this Act, was subject to the 28 limitation of the conveyance of only the interest in the land that related to agricultural 29 purposes and that was sold, leased, or disposed of by the state after August 15, 1976, and 30 before the effective date of this Act. 31 (b) When the owner of the rights for agricultural purposes in land described in this
01 section applies to the Department of Natural Resources, the commissioner of natural resources 02 shall issue a patent or other instrument of conveyance for the remaining interests in the land 03 estate. The patent or other instrument of conveyance must conform to AS 38.05.321, as 04 amended and enacted by secs. 9 - 11 of this Act. The commissioner of natural resources shall 05 issue a patent or other instrument of conveyance under this section if the owner of the rights 06 tenders an affidavit of ownership accompanied by a limited liability report affirming 07 ownership of the rights for agricultural purposes in the person making application under this 08 subsection and a copy of the original patent showing recording information. 09 (c) Until the commissioner of natural resources issues a patent or other instrument of 10 conveyance under (b) of this section, when necessary to enforce a state interest in the land, 11 the state may enforce the interests in the land in the manner authorized by the instrument of 12 conveyance that transferred the rights for agricultural purposes. 13 * Sec. 13. CONVERSION OF DISPOSALS MADE UNDER FORMER AS 38.05.321(b). 14 (a) The provisions of AS 38.05.321(a), as amended by sec. 9 of this Act, apply to state land 15 classified as agricultural land that, under AS 38.05.321(b) before its amendment by sec. 10 16 of this Act, was subject to the limitation of the conveyance of only the interest in the land that 17 related to agricultural purposes and that was conveyed by the state to a municipality after 18 June 30, 1978, and before the effective date of this Act. 19 (b) When a municipality holding the rights for agricultural purposes in land described 20 in this section applies to the Department of Natural Resources, the commissioner of natural 21 resources shall issue a patent or other instrument of conveyance for all remaining interests in 22 the land. The patent or other instrument of conveyance must conform to AS 38.05.321, as 23 amended by secs. 9 - 11 of this Act. The commissioner of natural resources shall issue a 24 patent or other instrument of conveyance under this section if the municipality tenders an 25 affidavit of ownership accompanied by a title report affirming the municipality's ownership 26 of the rights for agricultural purposes. 27 (c) Until the commissioner of natural resources issues the patent or other instrument 28 of conveyance under (b) of this section, when necessary to enforce a state interest in the land, 29 the state may enforce the interests in the land in the manner authorized by the instrument of 30 conveyance that transferred the rights for agricultural purposes. 31 * Sec. 14. APPLICABILITY TO PERSONS WHO HAVE ACQUIRED RIGHTS FOR
01 AGRICULTURAL PURPOSES AT POINT MCKENZIE. (a) The provisions of 02 AS 38.05.321, as amended by secs. 9 - 11 of this Act, and sec. 12 of this Act apply to a 03 person who, on the effective date of this Act, holds agricultural rights in land classified for 04 agricultural use in the area described in (b) of this section. However, notwithstanding 05 AS 38.05.321(e), added by sec. 11 of this Act, for those landowners who purchase parcels 06 conveyed by the state after the effective date of this Act, the value of the landowner's right 07 to construct housing on that land shall be determined by an appraisal, completed by an 08 appraiser under contract to the landowner, of the value, determined as of the date of 09 subdivision, of the landowner's right to construct housing under AS 38.05.321(d)(3). 10 (b) The provisions of this section apply to land within tracts 1 - 19 and 21 - 30 of 11 Alaska state land survey no. 80-111, according to the amended survey plat filed in the Palmer 12 Recording District on July 26, 1982, as plat no. 82-80, concerning land described as follows: 13 (1) Township 14 North, Range 4 West, Seward Meridian 14 Sections 5 - 8 15 Section 18; 16 (2) Township 14 North, Range 5 West, Seward Meridian 17 Section 1 18 Section 12; 19 (3) Township 15 North, Range 4 West, Seward Meridian 20 Section 7 21 Sections 17 - 20 22 Sections 29 - 32; 23 (4) Township 15 North, Range 5 West, Seward Meridian 24 Section 1 25 Section 2 26 Sections 11 - 14 27 Sections 23 - 26 28 Section 36; and 29 (5) Township 16 North, Range 5 West, Seward Meridian 30 Section 26 31 Sections 35 - 36.
01 * Sec. 15. The following regulations are annulled: 11 AAC 67.154(1), 11 AAC 67.154(2), 02 11 AAC 67.154(3), 11 AAC 67.154(4), 11 AAC 67.154(5), 11 AAC 67.162, 11 AAC 67.165, 03 11 AAC 67.167(d), 11 AAC 67.170, 11 AAC 67.172, 11 AAC 67.175(1), 11 AAC 67.185, 04 11 AAC 67.187, 11 AAC 67.188(a)(3), 11 AAC 67.188(a)(4), 11 AAC 67.188(a)(5), 11 AAC 05 67.188(a)(6), 11 AAC 67.188(b), 11 AAC 67.188(c), 11 AAC 67.190(a), 11 AAC 67.192.