SCS CSHB 116(RES): "An Act relating to the Board of Agriculture and Conservation, to the director of agriculture, to the agricultural revolving loan fund and to loans from the fund, to the disposal of interests in state agricultural land; and providing for an effective date."
00SENATE CS FOR CS FOR HOUSE BILL NO. 116(RES) 01 "An Act relating to the Board of Agriculture and Conservation, to the director 02 of agriculture, to the agricultural revolving loan fund and to loans from the fund, 03 to the disposal of interests in state agricultural land; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 03 is amended by adding new sections to read: 07 Chapter 09. Board of Agriculture and Conservation. 08 Sec. 03.09.010. Board of Agriculture and Conservation established. (a) 09 There is established in the department the Board of Agriculture and Conservation 10 composed of members as set out in AS 03.10.050(b). 11 (b) Members of the board serve staggered three-year terms and until a 12 successor is appointed. A member may be removed from office by the governor if the 13 governor first provides a written statement of the reasons for removal to the member 14 and makes the statement available to the public. If a vacancy occurs, the governor
01 shall immediately appoint a member for the unexpired portion of the term. 02 (c) Members of the board receive no compensation, but are entitled to per 03 diem and travel expenses authorized for boards and commissions under AS 39.20.180. 04 (d) While serving on the board, a board member, or an immediate family 05 member of the board member who shares the same household and financial resources 06 with that board member, may not obtain a lease, permit, installment contract, or loan 07 or purchase land under AS 03.10 or under AS 38.05, or have an existing lease, permit, 08 installment contract, or loan under AS 03.10 or under AS 38.05 modified or 09 restructured. Notwithstanding AS 39.52.150(a), an immediate family member who 10 does not share the same household and financial resources with the board member may 11 obtain a lease, permit, installment contract, or loan or purchase land under AS 03.10 12 or under AS 38.05 or have an existing lease, permit, installment contract, or loan under 13 AS 03.10 or under AS 38.05 modified or restructured. Notwithstanding 14 AS 39.52.150(a), a person may be appointed to the board even though, at the time of 15 appointment, that person, or an immediate family member, has a lease, permit, 16 installment contract, or loan under AS 03.10 or AS 38.05. However, that person may 17 not take or withhold any official action that affects the lease, permit, installment 18 contract, or loan of that person or an immediate family member who shares the same 19 household and financial resources with that person. If a person with a lease, permit, 20 installment contract, or loan under AS 03.10 or AS 38.05 is appointed to the board, 21 failure by that person to abide by all the terms and conditions of the lease, permit, 22 installment contract, or loan may be the basis for removal under (b) of this section. 23 For purposes of this subsection, "immediate family member" and "official action" have 24 the meanings given in AS 39.52.960. 25 (e) The board shall elect a member to serve as chair and a member to serve 26 as vice-chair for one-year terms. A member may be reelected to serve additional terms 27 as chair or vice-chair. 28 Sec. 03.09.020. Director of agriculture and staff. (a) The director of the 29 division of agriculture of the department shall serve as the director of the Board of 30 Agriculture and Conservation. The director may employ staff and, as directed by the 31 board, is responsible for the daily operations of the agricultural revolving loan fund
01 (AS 03.10.040). 02 (b) The director of agriculture shall be appointed to the partially exempt 03 service by the commissioner from a list of two or more candidates submitted by the 04 board. The commissioner may reject all candidates, in which case the board shall 05 submit a new list. The director may be removed by the commissioner at any time, and 06 the office shall remain vacant until a new director is appointed under this subsection. 07 Sec. 03.09.030. Quorum. Five members of the Board of Agriculture and 08 Conservation constitute a quorum for the transaction of business or the exercise of a 09 power or function at a meeting of the board. 10 Sec. 03.09.040. Regulations. (a) The Board of Agriculture and Conservation 11 may adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out its 12 duties. 13 (b) The board may, by regulation, classify loan and marketing information and 14 make some classes of loan or marketing information confidential. 15 Sec. 03.09.050. Agricultural land. The Board of Agriculture and 16 Conservation may recommend to the commissioner that land in the land disposal bank 17 established under AS 38.04.020 be classified as suitable for agriculture. The board 18 may identify state land for agricultural disposal and request the commissioner to 19 provide for the survey and disposal of the land. 20 * Sec. 2. AS 03.10.020(a) is amended to read: 21 (a) The Board of Agriculture and Conservation (AS 03.09.010) 22 [DEPARTMENT] may 23 (1) make a loan to 24 (A) an individual resident farmer, homesteader, or a partnership 25 or corporation composed of farmers and homesteaders for 26 (i) clearing land for agricultural purposes; 27 (ii) development of farms; 28 (iii) storage and processing of farm produce; or 29 (iv) the purchase of livestock or machinery; 30 (B) an individual state resident, or a partnership or corporation 31 for
01 (i) storage and processing plants for agricultural 02 products; 03 (ii) the commercial production or processing of 04 horticultural products in the state; 05 (iii) the commercial production or processing of animal 06 feed in the state; or 07 (iv) the raising or care of animals in the state for the 08 purpose of marketing their fur; 09 (2) designate agents and delegate its powers to them as necessary; 10 (3) adopt regulations necessary to carry out its functions, including 11 regulations to establish reasonable fees for services provided and charges for collecting 12 the fees; 13 (4) establish amortization plans for repayment of loans, which may 14 include delayed payments of principal and interest for not to exceed five years; 15 (5) enter into agreements with private lending institutions, other state 16 agencies or agencies of the federal government, to carry out the purposes of this 17 chapter; 18 (6) collect the fees and collection charges established under this 19 subsection. 20 * Sec. 3. AS 03.10.030(a) is amended to read: 21 (a) The farm development, chattel, or irrigation loan made under this chapter 22 (1) may not exceed a term of 30 years, except that a chattel loan may 23 not exceed a term of seven years; 24 (2) may not, when added to the outstanding balance of other loans 25 made under this chapter, exceed a total outstanding balance of $1,000,000; 26 (3) shall be secured by a real estate or chattel mortgage of any priority, 27 except that the portion of a loan that exceeds $500,000, when added to prior 28 indebtedness that is secured by the same property, must be secured by a first mortgage; 29 (4) shall bear interest at a fixed rate comparable to that charged by 30 other agricultural [THAT MAY NOT BE LESS THAN EIGHT PERCENT OR 31 MORE THAN THE COMMERCIAL RATE, UNLESS THE COMMERCIAL RATE
01 IS EIGHT PERCENT OR LESS; IN THIS PARAGRAPH, "COMMERCIAL RATE" 02 MEANS THE PREVAILING RATE OF INTEREST AT PRIVATE] lending 03 institutions in the state for loans similar to those referred to in this subsection. 04 * Sec. 4. AS 03.10.030(c) is amended to read: 05 (c) A short-term [SHORT TERM] loan, to be amortized within one year, not 06 to exceed $350,000 to any one borrower may be made for operating purposes, except 07 that a loan made under this subsection may not exceed $200,000 unless the loan is 08 made to a borrower in a farm disaster area declared under AS 03.10.058. The loan 09 shall bear interest at a fixed rate comparable to that charged by other 10 agricultural lending institutions in the state for loans similar to those referred to 11 in this subsection. An applicant for a short-term [SHORT TERM] loan may be 12 required to purchase insurance through the Federal Crop Insurance Act (7 U.S.C. 1501 13 - 1520) as a condition of the loan. The term of a loan made under this subsection may 14 be extended for up to three years by the Board of Agriculture and Conservation 15 [AGRICULTURAL REVOLVING LOAN FUND BOARD], in the discretion of the 16 board, upon application by the borrower. 17 * Sec. 5. AS 03.10.030(e) is amended to read: 18 (e) An installment payment is delinquent unless it is [MAILED BY THE 19 BORROWER ON OR BEFORE THE 30TH DAY AFTER THE DATE SPECIFIED 20 FOR PAYMENT IN THE LOAN AGREEMENT OR UNLESS IT IS] received by the 21 Board of Agriculture and Conservation or the director of the board 22 [DEPARTMENT] on or before the 30th day after the date specified for payment in the 23 loan agreement. If an installment payment is delinquent, the director of the board 24 [DIVISION OF AGRICULTURE OF THE DEPARTMENT] may assess a delinquency 25 penalty. [THE DELINQUENCY PENALTY SHALL BE AN AMOUNT EQUAL TO 26 SEVEN PERCENT OF THE DELINQUENT PAYMENT, BUT THE COMBINED 27 DELINQUENCY PENALTY AND LOAN INTEREST MAY NOT EXCEED 15 28 PERCENT.] 29 * Sec. 6. AS 03.10.030(f) is amended to read: 30 (f) A farm product processing loan may not exceed $250,000. A mortgage 31 that secures a farm product processing loan may be of any priority if the total
01 indebtedness on the real estate, including the secured farm product processing loan, 02 does not exceed $250,000. A farm product processing loan that, if made, would raise 03 the existing indebtedness on the real estate securing the loan above $250,000, or a 04 farm product processing loan on real estate that has a prior indebtedness of $250,000 05 or more, may be made only if all prior mortgagees agree to subordinate their 06 mortgages to that of the state for the amount of the farm product processing loan that 07 exceeds the $250,000 indebtedness limit on the real estate. A farm product processing 08 loan may not exceed a term of 30 years or bear interest at a rate that is less than a 09 fixed rate comparable to that charged by other agricultural lending institutions 10 in the state for similar loans, [EIGHT PERCENT A YEAR] and shall be secured by 11 a real estate or chattel mortgage or both. 12 * Sec. 7. AS 03.10.030(g) is amended to read: 13 (g) A loan for clearing land may not 14 (1) exceed $250,000; 15 (2) bear interest at a rate that is less than a fixed rate comparable to 16 that charged by other agricultural lending institutions in the state for similar 17 loans [EIGHT PERCENT]; 18 (3) have a term in excess of 20 years; or 19 (4) be made for clearing land other than land that has been classified 20 by the United States Department of Agriculture, Natural Resource [SOIL] 21 Conservation Service , under the Land Capability Classification System as having 22 agricultural potential for the production of annual crops or [,] hay, or for pasture. 23 * Sec. 8. AS 03.10.030(h) is amended to read: 24 (h) The Board of Agriculture and Conservation [COMMISSIONER] shall 25 adopt regulations to establish other terms for loans made under this chapter, consistent 26 with the provisions of this section, and may establish interest rates for loans under 27 (a)(4) of this section that 28 (1) encourage agricultural development; 29 (2) do not subsidize nonviable agricultural enterprises; and 30 (3) do not discriminate against viable existing agricultural enterprises. 31 * Sec. 9. AS 03.10.033(a) is amended to read:
01 (a) To increase the return to the state, the Board of Agriculture and 02 Conservation [AGRICULTURAL REVOLVING LOAN FUND BOARD] may 03 restructure loans (1) in existence on January 1, 1987, made by the former 04 Agricultural Revolving Loan Fund Board [BOARD] or by the former Alaska 05 Agricultural Action Council based upon guidelines approved by the Board of 06 Agriculture and Conservation; (2) of a borrower in an area that has been 07 declared a farm disaster area under AS 03.10.058; or (3) of a borrower who has 08 experienced an agricultural disaster based upon regulations adopted by the 09 Board of Agriculture and Conservation. Notwithstanding any other provision of 10 law that relates to loan terms, the [BOARD. THE] restructuring may only include 11 reduction of interest to a fixed rate not less than five percent a year [TO RATES 12 BELOW THOSE SPECIFIED BY AS 03.10.030], an extension of the term of the loan, 13 and an improvement to the security interest of the state. It may not reduce the amount 14 of principal and interest owed before the loan is restructured. 15 * Sec. 10. AS 03.10.033(c) is amended to read: 16 (c) Notwithstanding any other provision of this section, the Board of 17 Agriculture and Conservation [AGRICULTURAL REVOLVING LOAN FUND 18 BOARD] may approve an application for restructuring under this section only upon 19 (1) the applicant's written release of the state, including [THE 20 ALASKA AGRICULTURE ACTION COUNCIL, THE AGRICULTURAL 21 REVOLVING LOAN FUND, AND] the University of Alaska, from all potential 22 liability for actions and omissions occurring before the date of restructuring that relate 23 in any way to a state farm project, land sale, land sale relinquishment, farm loan, or 24 loan application or loan modification application, whether granted or denied by the 25 state; and 26 (2) assignment by the applicant to the board of the proceeds from the 27 federal government under 7 U.S.C. 1442 (Conservation Reserve Program) and P.L. 88- 28 26 (Feed Grain Act of 1963), as amended. 29 * Sec. 11. AS 03.10.035(a) is amended to read: 30 (a) A borrower may not use farm land for a nonfarm [NON-FARM] use or 31 sell, lease, or otherwise dispose of farm land if that land is encumbered by a mortgage
01 given to secure the payment of a [FARM DEVELOPMENT, CHATTEL, OR 02 IRRIGATION SYSTEM] loan under this chapter unless the borrower either 03 (1) pays the outstanding balance of the loan in a lump sum or under 04 other terms agreed to by the Board of Agriculture and Conservation 05 [COMMISSIONER] that accelerate payment of the loan; or 06 (2) pays the outstanding principal balance for the remaining term of the 07 loan at the prevailing rate of interest that is charged by commercial banks in the state 08 during the calendar quarter in which the board [DEPARTMENT] receives notice of 09 the change of use, sale, lease, or other disposal of the farm land. 10 * Sec. 12. AS 03.10.040(b) is amended to read: 11 (b) Money in the fund may be used by the legislature to make appropriations 12 for costs of administering this chapter and for operations of the Board of 13 Agriculture and Conservation . 14 * Sec. 13. AS 03.10.050(a) is amended to read: 15 (a) The Board of Agriculture and Conservation [COMMISSIONER] shall 16 administer the agricultural revolving loan fund [IN CONJUNCTION WITH THE 17 AGRICULTURAL REVOLVING LOAN FUND BOARD]. A [NO] loan [IN EXCESS 18 OF $25,000] may not be made [BY THE COMMISSIONER] without the approval of 19 a majority of the board , except that emergency loans based upon regulations 20 adopted by the board and not to exceed $50,000 may be made upon the approval, 21 by majority vote, of a committee composed of the chair of the board, another 22 board member, and the director of the board . 23 * Sec. 14. AS 03.10.050(b) is amended to read: 24 (b) The board is composed of seven members appointed by the governor and 25 confirmed by the legislature in joint session. Members shall have the following 26 qualifications: 27 (1) one member shall have general business or financial experience; 28 (2) one member shall be a member of a statewide agriculture 29 promotion organization; 30 (3) one member shall be a member of a soil and water conservation 31 district established under AS 41.10.130(a) who is also engaged in commercial
01 production agriculture; 02 (4) four members shall be engaged in commercial production 03 agriculture; each shall represent a different agriculture enterprise from the 04 others, such as livestock production, dairy, vegetable production, grain 05 production, horticultural production, and greenhouse and hydroponic production 06 [FIVE MEMBERS SHALL BE PERSONS WITH BACKGROUND AND 07 EXPERIENCE IN ALASKA AGRICULTURE, TWO OF WHOM SHALL BE 08 FARMERS WHO ARE RESIDENTS IN THE STATE, OPERATE PRODUCING 09 FARMS IN THE STATE, AND HAVE OPERATED THE PRODUCING FARMS IN 10 THE STATE FOR AT LEAST FIVE YEARS. MEMBERS OF THE BOARD SERVE 11 AT THE PLEASURE OF THE GOVERNOR FOR OVERLAPPING THREE-YEAR 12 TERMS. MEMBERS OF THE BOARD ARE NOT ENTITLED TO RECEIVE 13 COMPENSATION FOR THEIR SERVICES, BUT SHALL RECEIVE THE SAME 14 TRAVEL PAY AND PER DIEM AS PROVIDED BY LAW FOR BOARDS AND 15 COMMISSIONS]. 16 * Sec. 15. AS 03.10.050(c) is amended to read: 17 (c) A meeting of the [AGRICULTURAL REVOLVING LOAN FUND] board 18 to act on applications for loans is exempt from the public meeting requirements of 19 AS 44.62.310. 20 * Sec. 16. AS 03.10.050(e) is amended to read: 21 (e) To encourage the prompt payment of loans, the board [DEPARTMENT] 22 may establish a program of credits for persons who have a loan from the agricultural 23 revolving loan fund and maintain good financial standing. The credits may be applied 24 against no more than two percentage points a year of the interest due on agricultural 25 revolving loan fund loans. 26 * Sec. 17. AS 03.10.050(g) is amended to read: 27 (g) The board [DIRECTOR OF AGRICULTURE] may dispose of property 28 acquired by the agricultural revolving loan fund [AGRICULTURAL REVOLVING 29 LOAN FUND BOARD OR BY THE COMMISSIONER] through foreclosure, default, 30 or other action arising out of agricultural loans or the sale of agricultural land. 31 Disposals shall be conducted under regulations approved by the commissioner. The
01 regulations must ensure that the property is disposed of so as to maximize the return 02 to the state and must require that the parcels of land that are composed primarily of 03 cropland soils be restricted to agricultural uses and disposed of only to persons who 04 are residents of the state. 05 * Sec. 18. AS 38.04.020(g) is amended to read: 06 (g) After July 1 of each year, the commissioner shall direct the expenditure of 07 money appropriated for the disposal of land in response to requests made under (e) and 08 (f) of this section for the following: 09 (1) land [LAND] designated as suitable for homestead disposal shall 10 be classified and surveyed under this chapter and AS 38.05 and made available for 11 staking and lease under AS 38.09 ; [.] 12 (2) land [LAND] designated as suitable for subdivision and homesite 13 disposal shall be surveyed, subdivided, classified, and disposed of under this chapter, 14 AS 38.05, and AS 38.08 ; [.] 15 (3) land [LAND] designated [AGRICULTURAL,] commercial, 16 industrial, or suitable for other disposal shall be sold under AS 38.05.055 or 38.05.057 ; 17 (4) land designated agricultural shall be disposed of under 18 AS 38.05.055 - 38.05.065, except the Board of Agriculture and Conservation 19 (AS 03.09.010) shall receive notice of each proposed disposal and be given an 20 opportunity to comment before the final disposal decision is made . 21 * Sec. 19. AS 38.04.030 is amended to read: 22 Sec. 38.04.030. Land availability programs. Programs that may be used by 23 the director to make the state's land surface available for private use under 24 AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 25 estate, including conveyance of agricultural use rights; leasing; open-to-entry; 26 homesiting; homesteading; permitting for construction and occupation of cabins in 27 isolated locations on land retained in state ownership; and other methods as provided 28 by law. However, agricultural use rights may be conveyed only after consulting 29 with the Board of Agriculture and Conservation. 30 * Sec. 20. AS 38.05.020(b)(7) is amended to read: 31 (7) after consulting with the Board of Agriculture and Conservation
01 (AS 03.09.010), waive, postpone, or otherwise modify the development requirements 02 of a contract for the sale of agricultural land if 03 (A) the land is inaccessible by road; or 04 (B) transportation, marketing, and development costs render the 05 required development uneconomic; 06 * Sec. 21. AS 38.05.057(c) is amended to read: 07 (c) The commissioner , after consulting with the Board of Agriculture and 08 Conservation (AS 03.09.010), may adopt regulations under the Administrative 09 Procedure Act (AS 44.62) that [WHICH] specify qualifications for lottery participants 10 different from those specified in (b) of this section if 11 (1) an interest in land limited to agricultural purposes is to be sold 12 under (a) of this section; 13 (2) the sale is a part of a program to develop agricultural land as a 14 renewable resource of the state; and 15 (3) the regulations include residency, skill, experience, and financial 16 requirements necessary to qualify persons who are competent and financially able to 17 develop the land as a successful agricultural enterprise. 18 * Sec. 22. AS 38.05.059 is amended to read: 19 Sec. 38.05.059. Sale of agricultural land. The commissioner , after 20 consulting with the Board of Agriculture and Conservation (AS 03.09.010), may 21 provide for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses 22 in parcels or tracts described by aliquot parts. The parcels or tracts are subject to state 23 subdivision requirements and municipal ordinances. Money from a sale of 24 agricultural land shall be separately accounted for and may be appropriated to 25 the agricultural revolving loan fund (AS 03.10.040). 26 * Sec. 23. AS 38.05.065(h) is amended to read: 27 (h) The commissioner , after consulting with the Board of Agriculture and 28 Conservation (AS 03.09.010), 29 (1) shall provide that, notwithstanding (a) and (b) of this section, in a 30 contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses, 31 the interest rate to be charged on installment payments may not exceed 9.5 percent;
01 and 02 (2) may declare a moratorium of up to five years on payments on land 03 sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 04 uses if 05 (A) the commissioner determines that the moratorium is in the 06 best interest of the state; 07 (B) the commissioner certifies and the contract purchaser agrees 08 to perform farm development, crop production, and harvesting, not including 09 land clearing or related activity, requiring the expenditure of amounts 10 equivalent to the payments that would otherwise be made during the 11 moratorium; 12 (C) the sale of the agricultural land takes place after July 1, 13 1979; and 14 (D) the contract purchaser is in compliance with the 15 development plan specified in the purchase contract at the time the purchaser 16 applies for a moratorium under this subsection and remains in compliance with 17 the development plan during the moratorium; for the payments subject to the 18 moratorium declared under this paragraph, interest payments are subject to the 19 moratorium but interest continues to accrue during the moratorium. 20 * Sec. 24. AS 38.05.069(a) is amended to read: 21 (a) After consulting with the Board of Agriculture and Conservation 22 (AS 03.09.010), on [ON] a determination that the highest and best use of unoccupied 23 land is for agricultural purposes and that it is in the best interests of the state to sell 24 or lease the land, the commissioner shall grant to an Alaska [ALASKAN] resident 25 owning and using or leasing and using land for agricultural purposes a first option at 26 the auction to purchase or lease the unoccupied land situated adjacent to land presently 27 held by the Alaska [ALASKAN] resident for the amount of the high bid received at 28 public auction. If more than one Alaska [ALASKAN] resident qualifies for a first 29 option under this section, eligibility for the first option shall be determined by lot and 30 the option must be exercised on the conclusion of the public auction. A parcel of 31 agricultural land sold under this section may not be less than 20 acres , and a parcel of
01 agricultural land that is acquired by exercise of the option granted in this subsection 02 may not exceed 320 acres. Agricultural land that is acquired under this section must 03 be used for agricultural purposes as required by law. 04 * Sec. 25. AS 38.05.321(e) is amended to read: 05 (e) A landowner may subdivide land classified for agricultural use and for 06 which the landowner obtained a patent under a homestead entry permit issued under 07 AS 38.09 so long as the resulting parcels are not in violation of the minimum parcel 08 size set out in (a) of this section. A landowner may subdivide other land classified for 09 agricultural use as authorized under (d)(3)(C) of this section. If the subdivision 10 involves land classified for agricultural use and for which the landowner obtained a 11 patent under a homestead entry permit issued under AS 38.09, or if the subdivision of 12 land authorized under (d)(3)(C) of this section results only in parcels of 640 acres or 13 more, the landowner may subdivide without payment as required by this subsection. 14 If subdivision of land authorized by (d)(3)(C) of this section would result in one or 15 more parcels of less than 640 acres, the landowner may subdivide only if the 16 landowner first tenders payment to the department for the right to construct housing 17 in each subdivided parcel of less than 640 acres. Payments collected under this 18 subsection shall be separately accounted for and may be appropriated to the 19 agricultural revolving loan fund (AS 03.10.040). For purposes of this subsection, 20 the value of the right to construct housing in a subdivided parcel 21 (1) is $4,000 for the parcel, subject to adjustment under (h) of this 22 section; or 23 (2) shall be determined by an appraisal made by an appraiser under 24 contract to the landowner owning the parcel, and the appraisal must include the value, 25 determined as of the date of subdivision, of the right to construct housing by the 26 landowner under (d)(3) of this section. 27 * Sec. 26. AS 38.05.035(b) is amended to read: 28 (b) The director may 29 (1) delegate the administrative duties, functions or powers imposed 30 upon the director to a responsible employee in the division; 31 (2) grant preference rights for the lease or purchase of state land
01 without competitive bid in order to correct errors or omissions of a state or federal 02 administrative agency when inequitable detriment would otherwise result to a diligent 03 claimant or applicant due to situations over which the claimant or applicant had no 04 control; the exercise of this discretionary power operates only to divest the state of its 05 title to or interests in land and may be exercised only 06 (A) with the express approval of the commissioner; and 07 (B) if the application for the preference right is filed with the 08 director within three years from 09 (i) the occurrence of the error or omission; 10 (ii) the date of acquisition by the state of the land; or 11 (iii) the date of a court decision or settlement nullifying 12 a disposal of state land; 13 (3) grant a preference right to a claimant who shows bona fide 14 improvement of state land or of federal land subsequently acquired by the state and 15 who has in good faith sought to obtain title to the land but who, through error or 16 omission of others occurring within the three years before (A) the application for the 17 preference right, (B) the date of acquisition by the state of the land, or (C) the date of 18 a court decision or settlement nullifying a disposal of state land, has been denied title 19 to it; upon a showing satisfactory to the commissioner, the claimant may lease or 20 purchase the land at the price set on the date of original entry on the land or, if a price 21 was not set at that time at a price determined by the director to fairly represent the 22 value of unimproved land at the time the claim was established, but in no event less 23 than the cost of administration including survey; the error or omission of a predecessor 24 in interest or an agent, administrator, or executor which has clearly prejudiced the 25 claimant may be the basis for granting a preference right; 26 (4) sell land by lottery for less than the appraised value when, in the 27 judgment of the director, past scarcity of land suitable for private ownership in any 28 particular area has resulted in unrealistic land values; 29 (5) when the director determines it is in the best interest of the state 30 and will avoid injustice to a person or the heirs or devisees of a person, dispose of 31 land, by direct negotiation to that person who presently uses and who used and made
01 improvements to that land before January 3, 1959, or to the heirs or devisees of the 02 person; the amount paid for the land shall be its fair market value on the date that the 03 person first entered the land, as determined by the director; a parcel of land disposed 04 of under this paragraph shall be of a size consistent with the person's prior use, but 05 may not exceed five acres; 06 (6) after consulting with the Board of Agriculture and Conservation 07 (AS 03.09.010), dispose of an interest in land limited to use for agricultural purposes 08 by lottery; 09 (7) convey to an adjoining landowner for its fair market value a 10 remnant of land that the director considers unmanageable or a parcel of land created 11 by a highway right-of-way alignment or realignment, or a parcel created by the 12 vacation of a state-owned right-of-way if 13 (A) the director determines that it is in the best interests of the 14 state; 15 (B) the parcel does not exceed the minimum lot size under an 16 applicable zoning code; and 17 (C) the director and the platting authority having land use 18 planning jurisdiction agree that conveyance of the parcel to the adjoining 19 landowner will result in boundaries that are convenient for the use of the land 20 by the landowner and compatible with municipal land use plans; 21 (8) for good cause extend for up to 90 days the time for rental or 22 installment payments by a lessee or purchaser of state land under this chapter if 23 reasonable penalties and interest set by the director are paid; 24 (9) quitclaim land or an interest in land to the federal government on 25 a determination that the land or the interest in land was wrongfully or erroneously 26 conveyed by the federal government to the state; 27 (10) negotiate the sale or lease of state land at fair market value to a 28 person who acquired by contract, purchase, or lease rights to improvements on the land 29 from another state agency or who leased the land from another state agency [; 30 (11) REPEALED]. 31 * Sec. 27. AS 38.07.010(b) is amended to read:
01 (b) The land that is [THUS] cleared or drained under (a) of this section shall 02 be put up for competitive lease in lots of not less than 320 acres each. Lease 03 payments shall be separately accounted for and may be appropriated to the 04 agricultural revolving loan fund (AS 03.10.040). 05 * Sec. 28. AS 38.09.010(a) is amended to read: 06 (a) The commissioner shall designate and make available for homestead entry 07 state land, including , after consulting with the Board of Agriculture and 08 Conservation (AS 03.09.010), land classified for agricultural use. State land made 09 available for homestead entry under this chapter shall be distributed throughout the 10 state. 11 * Sec. 29. AS 39.50.200(b) is amended by adding a new paragraph to read: 12 (56) Board of Agriculture and Conservation (AS 03.09.010). 13 * Sec. 30. AS 03.10.050(d), 03.10.052; and AS 39.50.200(b)(1) are repealed. 14 * Sec. 31. The uncodified law of the State of Alaska is amended by adding a new section 15 to read: 16 TRANSITION. (a) Notwithstanding AS 03.09.010(b), enacted in sec. 1 of this Act, 17 two initial members of the Board of Agriculture and Conservation shall be appointed to one- 18 year terms and two initial members of the board shall be appointed to two-year terms. 19 (b) Notwithstanding AS 03.09.040, enacted in sec. 1 of this Act, AS 03.10.020(a), as 20 amended in sec. 2 of this Act, AS 03.10.030(h), as amended in sec. 8 of this Act, and 21 AS 03.10.033(a), as amended in sec. 9 of this Act, regulations that apply to the agricultural 22 revolving loan fund and to loans from the fund remain in effect until amended or repealed by 23 the Board of Agriculture and Conservation. 24 * Sec. 32. This Act takes effect July 1, 2000.