SB 197: "An Act relating to the Board of Agriculture and Conservation, to the agricultural revolving loan fund, to the disposal of interests in state agricultural or grazing land; and providing for an effective date."
00SENATE BILL NO. 197 01 "An Act relating to the Board of Agriculture and Conservation, to the 02 agricultural revolving loan fund, to the disposal of interests in state agricultural 03 or grazing land; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 03 is amended by adding new sections to read: 06 Chapter 09. Board of Agriculture and Conservation. 07 Sec. 03.09.010. Board of Agriculture and Conservation established. (a) 08 There is established in the department the Board of Agriculture and Conservation. The 09 board consists of seven members appointed by the governor and confirmed by the 10 legislature in joint session. Members shall have the following qualifications: 11 (1) one member shall have general business or financial experience; 12 (2) one member shall be a member of a statewide agriculture promotion 13 organization; 14 (3) one member shall be a member of a soil and water conservation
01 district established under AS 41.10.130(a) who is also engaged in commercial 02 production agriculture; 03 (4) four members shall be engaged in commercial production 04 agriculture, each shall represent a different agriculture enterprise from the others, such 05 as livestock production, dairy, vegetable production, grain production, horticultural 06 production, and greenhouse and hydroponic production. 07 (b) Members of the board serve staggered three-year terms and until a 08 successor is appointed. Members may be removed from office by the governor only 09 for cause. If a vacancy occurs, the governor shall immediately appoint a member for 10 the unexpired portion of the term and submit the name of the appointee to the 11 legislature for confirmation under AS 39.05.080. 12 (c) Members of the board receive no compensation, but are entitled to per 13 diem and travel expenses authorized for boards and commissions under AS 39.20.180. 14 (d) Notwithstanding AS 39.52.150(a) or other law, a person serving on the 15 board, or an immediate family member of a person serving on the board, may obtain 16 a lease, permit, or loan under AS 03.10 or under AS 38.05. A person may be 17 appointed to the board even though that person, or an immediate family member, has 18 a lease, permit, or loan under AS 03.10 or AS 38.05. However, a board member may 19 not use or attempt to use the office for personal gain and may not intentionally secure 20 or grant unwarranted benefits or treatment for any person. 21 Sec. 03.09.020. Officers and employees. (a) The Board of Agriculture and 22 Conservation shall elect a member to serve as chair and a member to serve as vice- 23 chair for one-year terms. A member may be reelected to serve additional terms as chair or 24 vice-chair. 25 (b) The board may appoint a director, who may employ staff and who is 26 responsible for the daily operations of the agricultural revolving loan fund 27 (AS 03.10.040). The director is in the exempt service under AS 39.25.110. 28 Sec. 03.09.030. Quorum. Four members of the Board of Agriculture and 29 Conservation constitute a quorum for the transaction of business or the exercise of a 30 power or function at a meeting of the board. 31 Sec. 03.09.040. Regulations. (a) The Board of Agriculture and Conservation
01 may adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out its 02 duties. 03 (b) The board may, by regulation, classify loan and marketing information and 04 make some classes of loan or marketing information confidential. 05 Sec. 03.09.050. Agricultural land. (a) The Board of Agriculture and 06 Conservation may recommend to the commissioner that land in the land disposal bank 07 established under AS 38.04.020 be classified as suitable for agriculture. The board 08 may identify state land for agricultural disposal and request the commissioner to 09 provide for the survey and disposal of the land. 10 (b) Land designated for disposal for agricultural uses shall be disposed of by 11 the board in accordance with the requirements of AS 38.05.055 - 38.05.065, except 12 that the board shall carry out the duties of the commissioner and of the director of the 13 division of lands of the department under those sections to the extent those duties 14 apply to agricultural land. Proceeds from the disposals of agricultural land shall be 15 separately accounted for and may be appropriated to the agricultural revolving loan 16 fund (AS 03.10.040). 17 * Sec. 2. AS 03.10.020(a) is amended to read: 18 (a) The Board of Agriculture and Conservation (AS 03.09.010) 19 [DEPARTMENT] may 20 (1) make a loan to 21 (A) an individual resident farmer, homesteader, or a partnership 22 or corporation composed of farmers and homesteaders for 23 (i) clearing land for agricultural purposes; 24 (ii) development of farms; 25 (iii) storage and processing of farm produce; or 26 (iv) the purchase of livestock or machinery; 27 (B) an individual state resident, or a partnership or corporation 28 for 29 (i) storage and processing plants for agricultural 30 products; 31 (ii) the commercial production or processing of
01 horticultural products in the state; 02 (iii) the commercial production or processing of animal 03 feed in the state; or 04 (iv) the raising or care of animals in the state for the 05 purpose of marketing their fur; 06 (2) designate agents and delegate its powers to them as necessary; 07 (3) adopt regulations necessary to carry out its functions, including 08 regulations to establish reasonable fees for services provided and charges for collecting 09 the fees; 10 (4) establish amortization plans for repayment of loans, which may 11 include delayed payments of principal and interest for not to exceed five years; 12 (5) enter into agreements with private lending institutions, other state 13 agencies or agencies of the federal government, to carry out the purposes of this 14 chapter; 15 (6) collect the fees and collection charges established under this 16 subsection. 17 * Sec. 3. AS 03.10.030(a) is amended to read: 18 (a) The farm development, chattel, or irrigation loan made under this chapter 19 (1) may not exceed a term of 30 years, except that a chattel loan may 20 not exceed a term of seven years; 21 (2) may not, when added to the outstanding balance of other loans 22 made under this chapter, exceed a total outstanding balance of $1,000,000; 23 (3) shall be secured by a real estate or chattel mortgage of any priority, 24 except that the portion of a loan that exceeds $500,000, when added to prior 25 indebtedness that is secured by the same property, must be secured by a first mortgage; 26 (4) shall bear interest at a rate comparable to that charged by other 27 agricultural [THAT MAY NOT BE LESS THAN EIGHT PERCENT OR MORE 28 THAN THE COMMERCIAL RATE, UNLESS THE COMMERCIAL RATE IS 29 EIGHT PERCENT OR LESS; IN THIS PARAGRAPH, "COMMERCIAL RATE" 30 MEANS THE PREVAILING RATE OF INTEREST AT PRIVATE] lending 31 institutions in the state for loans similar to those referred to in this subsection.
01 * Sec. 4. AS 03.10.030(c) is amended to read: 02 (c) A short-term [SHORT TERM] loan, to be amortized within one year, not 03 to exceed $350,000 to any one borrower may be made for operating purposes, except 04 that a loan made under this subsection may not exceed $200,000 unless the loan is 05 made to a borrower in a farm disaster area declared under AS 03.10.058. An applicant 06 for a short-term [SHORT TERM] loan may be required to purchase insurance through 07 the Federal Crop Insurance Act (7 U.S.C. 1501 - 1520) as a condition of the loan. 08 The term of a loan made under this subsection may be extended for up to three years 09 by the Board of Agriculture and Conservation [AGRICULTURAL REVOLVING 10 LOAN FUND BOARD], in the discretion of the board, upon application by the 11 borrower. 12 * Sec. 5. AS 03.10.030(e) is amended to read: 13 (e) An installment payment is delinquent unless it is mailed by the borrower 14 on or before the 30th day after the date specified for payment in the loan agreement 15 or unless it is received by the Board of Agriculture and Conservation 16 [DEPARTMENT] on or before the 30th day after the date specified for payment in the 17 loan agreement. If an installment payment is delinquent, the director of the board 18 [DIVISION OF AGRICULTURE OF THE DEPARTMENT] may assess a delinquency 19 penalty. The delinquency penalty shall be an amount equal to seven percent of the 20 delinquent payment, but the combined delinquency penalty and loan interest may not 21 exceed 15 percent. 22 * Sec. 6. AS 03.10.030(f) is amended to read: 23 (f) A farm product processing loan may not exceed $250,000. A mortgage 24 that secures a farm product processing loan may be of any priority if the total 25 indebtedness on the real estate, including the secured farm product processing loan, 26 does not exceed $250,000. A farm product processing loan that, if made, would raise 27 the existing indebtedness on the real estate securing the loan above $250,000, or a 28 farm product processing loan on real estate that has a prior indebtedness of $250,000 29 or more, may be made only if all prior mortgagees agree to subordinate their 30 mortgages to that of the state for the amount of the farm product processing loan that 31 exceeds the $250,000 indebtedness limit on the real estate. A farm product processing
01 loan may not exceed a term of 30 years or bear interest at a rate that is less than a 02 rate comparable to that charged by other agricultural lending institutions in the 03 state for similar loans, [EIGHT PERCENT A YEAR] and shall be secured by a real 04 estate or chattel mortgage or both. 05 * Sec. 7. AS 03.10.030(g) is amended to read: 06 (g) A loan for clearing land may not 07 (1) exceed $250,000; 08 (2) bear interest at a rate that is less than a rate comparable to that 09 charged by other agricultural lending institutions in the state for similar loans 10 [EIGHT PERCENT]; 11 (3) have a term in excess of 20 years; or 12 (4) be made for clearing land other than land that has been classified 13 by the United States Department of Agriculture, Natural Resource [SOIL] 14 Conservation Service , under the Land Capability Classification System as having 15 agricultural potential for the production of annual crops or [,] hay, or for pasture. 16 * Sec. 8. AS 03.10.030(h) is amended to read: 17 (h) The Board of Agriculture and Conservation [COMMISSIONER] shall 18 adopt regulations to establish other terms for loans made under this chapter, consistent 19 with the provisions of this section, and may establish interest rates for loans under 20 (a)(4) of this section that 21 (1) encourage agricultural development; 22 (2) do not subsidize nonviable agricultural enterprises; and 23 (3) do not discriminate against viable existing agricultural enterprises. 24 * Sec. 9. AS 03.10.033(a) is amended to read: 25 (a) To increase the return to the state, the Board of Agriculture and 26 Conservation [AGRICULTURAL REVOLVING LOAN FUND BOARD] may 27 restructure loans (1) in existence on January 1, 1987, made by the former 28 Agricultural Revolving Loan Fund Board [BOARD] or by the former Alaska 29 Agricultural Action Council based upon guidelines approved by the Board of 30 Agriculture and Conservation; or (2) of a borrower who has experienced an 31 agricultural disaster as defined by regulations adopted by the Board of
01 Agriculture and Conservation [BOARD]. The restructuring may only include 02 reduction of interest [TO RATES BELOW THOSE SPECIFIED BY AS 03.10.030], 03 an extension of the term of the loan, and an improvement to the security interest of the 04 state. It may not reduce the amount of principal and interest owed before the loan is 05 restructured. AS 03.10.030(a)(1) does not apply to a loan that is restructured 06 under this section. 07 * Sec. 10. AS 03.10.033(c) is amended to read: 08 (c) Notwithstanding any other provision of this section, the Board of 09 Agriculture and Conservation [AGRICULTURAL REVOLVING LOAN FUND 10 BOARD] may approve an application for restructuring under this section only upon 11 (1) the applicant's written release of the state, including [THE 12 ALASKA AGRICULTURE ACTION COUNCIL, THE AGRICULTURAL 13 REVOLVING LOAN FUND, AND] the University of Alaska, from all potential 14 liability for actions and omissions occurring before the date of restructuring that relate 15 in any way to a state farm project, land sale, land sale relinquishment, farm loan, or 16 loan application or loan modification application, whether granted or denied by the 17 state; and 18 (2) assignment by the applicant to the board of the proceeds from the 19 federal government under 7 U.S.C. 1442 (Conservation Reserve Program) and P.L. 88- 20 26 (Feed Grain Act of 1963), as amended. 21 * Sec. 11. AS 03.10.035(a) is amended to read: 22 (a) A borrower may not use farm land for a nonfarm [NON-FARM] use or 23 sell, lease, or otherwise dispose of farm land if that land is encumbered by a mortgage 24 given to secure the payment of a farm development, chattel, or irrigation system loan 25 under this chapter unless the borrower either 26 (1) pays the outstanding balance of the loan in a lump sum or under 27 other terms agreed to by the Board of Agriculture and Conservation 28 [COMMISSIONER] that accelerate payment of the loan; or 29 (2) pays the outstanding principal balance for the remaining term of the 30 loan at the prevailing rate of interest that is charged by commercial banks in the state 31 during the calendar quarter in which the board [DEPARTMENT] receives notice of
01 the change of use, sale, lease, or other disposal of the farm land. 02 * Sec. 12. AS 03.10.040(b) is amended to read: 03 (b) Money in the fund may be used by the legislature to make appropriations 04 for costs of administering this chapter and for operations of the Board of 05 Agriculture and Conservation . 06 * Sec. 13. AS 03.10.050(a) is amended to read: 07 (a) The Board of Agriculture and Conservation [COMMISSIONER] shall 08 administer the agricultural revolving loan fund [IN CONJUNCTION WITH THE 09 AGRICULTURAL REVOLVING LOAN FUND BOARD]. A [NO] loan [IN EXCESS 10 OF $25,000] may not be made [BY THE COMMISSIONER] without the approval of 11 a majority of the board , except that emergency loans not to exceed $50,000 may be 12 made upon the approval, by majority vote, of a committee composed of the chair 13 of the board, another board member, and the director of the board . 14 * Sec. 14. AS 03.10.050(c) is amended to read: 15 (c) A meeting of the [AGRICULTURAL REVOLVING LOAN FUND] board 16 to act on applications for loans is exempt from the public meeting requirements of 17 AS 44.62.310. 18 * Sec. 15. AS 03.10.050(e) is amended to read: 19 (e) To encourage the prompt payment of loans, the board [DEPARTMENT] 20 may establish a program of credits for persons who have a loan from the agricultural 21 revolving loan fund and maintain good financial standing. The credits may be applied 22 against no more than two percentage points a year of the interest due on agricultural 23 revolving loan fund loans. 24 * Sec. 16. AS 03.10.050(g) is amended to read: 25 (g) The board [DIRECTOR OF AGRICULTURE] may dispose of property 26 acquired by the agricultural revolving loan fund [AGRICULTURAL REVOLVING 27 LOAN FUND BOARD OR BY THE COMMISSIONER] through foreclosure, default, 28 or other action arising out of agricultural loans or the sale of agricultural land. 29 Disposals shall be conducted under regulations approved by the commissioner. The 30 regulations must ensure that the property is disposed of so as to maximize the return 31 to the state and must require that the parcels of land that are composed primarily of
01 cropland soils be restricted to agricultural uses and disposed of only to persons who 02 are residents of the state. 03 * Sec. 17. AS 03.47.020 is amended to read: 04 Sec. 03.47.020. Importation of bees. All bees imported into the state shall 05 be accompanied by a health certificate that states that the bees come from an apiary 06 apparently free of bee diseases and that is signed by an apiary inspector determined 07 to be qualified by the board [DIVISION]. 08 * Sec. 18. AS 03.47.030(a) is amended to read: 09 (a) The board [DIVISION] shall investigate reported cases of diseased bees 10 and cases of diseased bees discovered by the board [DIVISION]. 11 * Sec. 19. AS 03.47.030(b) is amended to read: 12 (b) The board [DIVISION] shall take action necessary to prevent the spread 13 of bee diseases. Bees or used beekeeping equipment found to contain the causative 14 organisms of American foulbrood (Bacillus larvae) or European foulbrood 15 (Streptococcus pluton) shall be immediately quarantined and treated within five days 16 by 17 (1) chamber fumigation using ethylene oxide or other gases approved 18 by the board [DIVISION]; 19 (2) sterilization by boiling in lyewater for at least 15 minutes; or 20 (3) destruction of bees, bee combs, and frames by burning followed by 21 burying 18 inches deep. 22 * Sec. 20. AS 03.47.030(d) is amended to read: 23 (d) A quarantine imposed under this section may not be removed until infected 24 bees and used beekeeping equipment are destroyed or the board [DIVISION] 25 determines through testing that the used beekeeping equipment is free of the disease. 26 * Sec. 21. AS 03.47.030(e) is amended to read: 27 (e) The board [DIVISION] shall adopt regulations necessary to carry out the 28 purposes of this chapter. 29 * Sec. 22. AS 03.47.040(2) is amended to read: 30 (2) "board" ["DIVISION"] means the Board of Agriculture and 31 Conservation (AS 03.09.010) [DIVISION OF AGRICULTURE, DEPARTMENT OF
01 NATURAL RESOURCES]; 02 * Sec. 23. AS 38.04.020(g) is amended to read: 03 (g) After July 1 of each year, the commissioner shall direct the expenditure of 04 money appropriated for the disposal of land in response to requests made under (e) and 05 (f) of this section for the following: 06 (1) land [LAND] designated as suitable for homestead disposal shall 07 be classified and surveyed under this chapter and AS 38.05 and made available for 08 staking and lease under AS 38.09 ; [.] 09 (2) land [LAND] designated as suitable for subdivision and homesite 10 disposal shall be surveyed, subdivided, classified, and disposed of under this chapter, 11 AS 38.05, and AS 38.08 ; [.] 12 (3) land [LAND] designated [AGRICULTURAL,] commercial, 13 industrial, or suitable for other disposal shall be sold under AS 38.05.055 or 38.05.057 ; 14 (4) land designated agricultural shall be disposed of by the Board 15 of Agriculture and Conservation (AS 03.09.010) in accordance with AS 38.05.055 - 16 38.05.065, except the board shall carry out the duties of the commissioner or the 17 director under those sections . 18 * Sec. 24. AS 38.04.030 is amended to read: 19 Sec. 38.04.030. Land availability programs. Programs that may be used by 20 the director to make the state's land surface available for private use under 21 AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 22 estate, including conveyance of agricultural use rights by the Board of Agriculture 23 and Conservation ; leasing; open-to-entry; homesiting; homesteading; permitting for 24 construction and occupation of cabins in isolated locations on land retained in state 25 ownership; and other methods as provided by law. 26 * Sec. 25. AS 38.05.020(b)(7) is amended to read: 27 (7) permit the Board of Agriculture and Conservation 28 (AS 03.09.010) to 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 31 (B) transportation, marketing, and development costs render the
01 required development uneconomic; 02 * Sec. 26. AS 38.05.035(a)(7) is amended to read: 03 (7) have jurisdiction over state land, except that land acquired by the 04 Alaska World War II Veterans Board and the Agricultural Loan Board or the 05 departments or agencies succeeding to their respective functions through foreclosure 06 or default; to this end the director possesses the powers and, with the approval of the 07 commissioner and, with respect to agricultural land, the Board of Agriculture and 08 Conservation , shall perform the duties necessary to protect the state's rights and 09 interest in state land, including the taking of all necessary action to protect and enforce 10 the state's contractual or other property rights; 11 * Sec. 27. AS 38.05.057(c) is amended to read: 12 (c) The Board of Agriculture and Conservation (AS 03.09.010) 13 [COMMISSIONER] may adopt regulations under the Administrative Procedure Act 14 (AS 44.62) that [WHICH] specify qualifications for lottery participants different from 15 those specified in (b) of this section if 16 (1) an interest in land limited to agricultural purposes is to be sold 17 under (a) of this section; 18 (2) the sale is a part of a program to develop agricultural land as a 19 renewable resource of the state; and 20 (3) the regulations include residency, skill, experience, and financial 21 requirements necessary to qualify persons who are competent and financially able to 22 develop the land as a successful agricultural enterprise. 23 * Sec. 28. AS 38.05.059 is amended to read: 24 Sec. 38.05.059. Sale of agricultural land. The Board of Agriculture and 25 Conservation (AS 03.09.010) [COMMISSIONER] may provide for the sale of land 26 classified under AS 38.05.020(b)(6) for agricultural uses in parcels or tracts described 27 by aliquot parts. The parcels or tracts are subject to state subdivision requirements and 28 municipal ordinances. 29 * Sec. 29. AS 38.05.065(h) is amended to read: 30 (h) The Board of Agriculture and Conservation (AS 03.09.010) 31 [COMMISSIONER]
01 (1) shall provide that, notwithstanding (a) and (b) of this section, in a 02 contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses, 03 the interest rate to be charged on installment payments may not exceed 9.5 percent; 04 and 05 (2) may declare a moratorium of up to five years on payments on land 06 sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 07 uses if 08 (A) the board [COMMISSIONER] determines that the 09 moratorium is in the best interest of the state; 10 (B) the board [COMMISSIONER] certifies and the contract 11 purchaser agrees to perform farm development, crop production, and harvesting, 12 not including land clearing or related activity, requiring the expenditure of 13 amounts equivalent to the payments that would otherwise be made during the 14 moratorium; 15 (C) the sale of the agricultural land takes place after July 1, 16 1979; and 17 (D) the contract purchaser is in compliance with the 18 development plan specified in the purchase contract at the time the purchaser 19 applies for a moratorium under this subsection and remains in compliance with 20 the development plan during the moratorium; for the payments subject to the 21 moratorium declared under this paragraph, interest payments are subject to the 22 moratorium but interest continues to accrue during the moratorium. 23 * Sec. 30. AS 38.05.069(a) is amended to read: 24 (a) On a determination by the commissioner that the highest and best use of 25 unoccupied land is for agricultural purposes and that it is in the best interests of the 26 state to sell or lease the land, the Board of Agriculture and Conservation 27 (AS 03.09.010) [COMMISSIONER] shall grant to an Alaska [ALASKAN] resident 28 owning and using or leasing and using land for agricultural purposes a first option at 29 the auction to purchase or lease the unoccupied land situated adjacent to land presently 30 held by the Alaska [ALASKAN] resident for the amount of the high bid received at 31 public auction. If more than one Alaska [ALASKAN] resident qualifies for a first
01 option under this section, eligibility for the first option shall be determined by lot and 02 the option must be exercised on the conclusion of the public auction. A parcel of 03 agricultural land sold under this section may not be less than 20 acres , and a parcel of 04 agricultural land that is acquired by exercise of the option granted in this subsection 05 may not exceed 320 acres. Agricultural land that is acquired under this section must 06 be used for agricultural purposes as required by law. 07 * Sec. 31. AS 38.05.069(c) is amended to read: 08 (c) Under this section , 09 (1) the Board of Agriculture and Conservation [DIRECTOR] may 10 transfer state land classified for agriculture only for agricultural purposes; 11 (2) the sale or lease shall be at public auction. 12 * Sec. 32. AS 38.05.321(a) is amended to read: 13 (a) The Board of Agriculture and Conservation (AS 03.09.010) 14 [DEPARTMENT] shall include in a document that conveys state land classified as 15 agricultural land 16 (1) a perpetual covenant for the benefit of all Alaska residents and 17 running with the land that restricts or limits the use of the land for agricultural 18 purposes; and 19 (2) one of the following, as appropriate: 20 (A) a perpetual covenant for the benefit of all Alaska residents 21 and running with the land permitting the owner of land that had been obtained 22 under homestead entry to subdivide and convey the land in parcels of not less 23 than 40 acres each; or 24 (B) a perpetual covenant for the benefit of all Alaska residents 25 and running with the land permitting the owner of land that had been obtained 26 by purchase to subdivide and convey not more than four parcels of the land of 27 not less than 40 acres each, subject to the restriction that a subdivided parcel 28 may not be further subdivided. 29 * Sec. 33. AS 38.05.321(d) is amended to read: 30 (d) For state land classified as agricultural land that is conveyed under (a) of 31 this section,
01 (1) the Board of Agriculture and Conservation [COMMISSIONER] 02 may require the landowner to cooperate with the appropriate soil and water 03 conservation district under AS 41.10 in the development and implementation of soil 04 conservation plans as authorized by AS 41.10.110(6); 05 (2) as a condition of the conveyance, the board [COMMISSIONER] 06 may not require preparation and implementation of a schedule of planned agricultural 07 development or a farm development plan specified in a land purchase contract unless 08 the board [COMMISSIONER] permits modification of a plan in cases of economic 09 hardship or other extenuating circumstances; 10 (3) the board [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 the 21 land if the resulting parcels are not in violation of the limits and restrictions set 22 out in (a)(2) of this section. 23 * Sec. 34. AS 38.05.321(e) is amended to read: 24 (e) A landowner may subdivide land classified for agricultural use and for 25 which the landowner obtained a patent under a homestead entry permit issued under 26 AS 38.09 so long as the resulting parcels are not in violation of the minimum parcel 27 size set out in (a) of this section. A landowner may subdivide other land classified for 28 agricultural use as authorized under (d)(3)(C) of this section. If the subdivision 29 involves land classified for agricultural use and for which the landowner obtained a 30 patent under a homestead entry permit issued under AS 38.09, or if the subdivision of 31 land authorized under (d)(3)(C) of this section results only in parcels of 640 acres or
01 more, the landowner may subdivide without payment as required by this subsection. 02 If subdivision of land authorized by (d)(3)(C) of this section would result in one or 03 more parcels of less than 640 acres, the landowner may subdivide only if the 04 landowner first tenders payment to the Board of Agriculture and Conservation 05 [DEPARTMENT] for the right to construct housing in each subdivided parcel of less 06 than 640 acres. Payments collected under this subsection shall be separately 07 accounted for and may be appropriated to the agricultural revolving loan fund 08 (AS 03.10.040). For purposes of this subsection, the value of the right to construct 09 housing in a subdivided parcel 10 (1) is $4,000 for the parcel, subject to adjustment under (h) of this 11 section; or 12 (2) shall be determined by an appraisal made by an appraiser under 13 contract to the landowner owning the parcel, and the appraisal must include the value, 14 determined as of the date of subdivision, of the right to construct housing by the 15 landowner under (d)(3) of this section. 16 * Sec. 35. AS 38.05.321(f) is amended to read: 17 (f) Notwithstanding (e) of this section, the landowner is not required to pay 18 an amount due under (e) of this section until the subdivided parcel is conveyed by the 19 owner to a person not a member of the person's immediate family. The board 20 [DEPARTMENT] has a lien on the parcel as security for payment of the amount due. 21 For purposes of this subsection, "immediate family" means 22 (1) the spouse of the person; or 23 (2) a parent, child, including a stepchild and an adoptive child, or 24 sibling of the person if the parent, child, or sibling resides with the person, is 25 financially dependent on the person, or shares a substantial financial interest with the 26 person. 27 * Sec. 36. AS 38.07.010(b) is amended to read: 28 (b) The land that is [THUS] cleared or drained under (a) of this section shall 29 be put up for competitive lease by the Board of Agriculture and Conservation 30 (AS 03.09.010) in lots of not less than 320 acres each. Lease payments shall be 31 separately accounted for and may be appropriated to the agricultural revolving
01 loan fund (AS 03.10.040). 02 * Sec. 37. AS 38.07.030(a) is amended to read: 03 (a) An owner of agricultural land, or a lessee from the state of agricultural 04 land, in the general vicinity of the land to be cleared or drained under AS 38.07.010(a) 05 may apply to the commissioner to have the land cleared or drained or both along with 06 the state land. The applicant's land shall be included in the contract of land to be 07 cleared or drained if, in the discretion of the commissioner, the inclusion is feasible 08 and furthers the agricultural policies of the Board of Agriculture and Conservation 09 [DIVISION OF AGRICULTURE]. 10 * Sec. 38. AS 38.09.010(a) is amended to read: 11 (a) The commissioner shall designate and make available for homestead entry 12 state land, including land classified for agricultural use that may be disposed of by 13 the Board of Agriculture and Conservation (AS 03.09.010) . State land made 14 available for homestead entry under this chapter shall be distributed throughout the 15 state. 16 * Sec. 39. AS 38.09.010(b) is amended to read: 17 (b) The commissioner shall complete a rectangular survey grid of homestead 18 entry state land under AS 38.04.045 before disposing of state land for homestead entry 19 or authorizing the Board of Agriculture and Conservation to dispose of it . A 20 homestead entry parcel shall be established in aliquot parts of a surveyed section or 21 as lots or tracts that are fractions of aliquot parts of a surveyed section. The 22 commissioner shall ensure practical access to each homestead entry parcel but the 23 commissioner may waive the rectangular survey grid if no more than one conveyance 24 is made for each section within a township. 25 * Sec. 40. AS 38.09.010(c) is amended to read: 26 (c) Notice of the designation and offering of land for homestead entry shall be 27 given by the commissioner under AS 38.05.945 or by the Board of Agriculture and 28 Conservation in a manner that complies with AS 38.05.945 . 29 * Sec. 41. AS 39.25.110 is amended by adding a new paragraph to read: 30 (34) the director of the Board of Agriculture and Conservation. 31 * Sec. 42. AS 39.50.200(b) is amended by adding a new paragraph to read:
01 (56) Board of Agriculture and Conservation (AS 03.09.010). 02 * Sec. 43. AS 03.10.050(b), 03.10.050(d), 03.10.052; AS 38.05.035(b)(6); and 03 AS 39.50.200(b)(1) are repealed. 04 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 TRANSITION. (a) Notwithstanding AS 03.09.010(b), enacted in sec. 1 of this Act, 07 two initial members of the Board of Agriculture and Conservation shall be appointed to one- 08 year terms and two initial members of the board shall be appointed to two-year terms. 09 (b) Notwithstanding AS 03.09.040, enacted in sec. 1 of this Act, AS 03.10.020(a), as 10 amended in sec. 2 of this Act, AS 03.10.030(h), as amended in sec. 8 of this Act, and 11 AS 03.10.033(a), as amended in sec. 9 of this Act, regulations that apply to the agricultural 12 revolving loan fund and to loans from the fund remain in effect until amended or repealed by 13 the Board of Agriculture and Conservation. 14 (c) Notwithstanding AS 03.47.030(e), as amended in sec. 21 of this Act, regulations 15 that apply to bees and beekeeping equipment adopted by the division of agriculture remain 16 in effect until amended or repealed by the Board of Agriculture and Conservation. 17 * Sec. 45. This Act takes effect July 1, 2000.