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CSHB 361(RES): "An Act relating to the Alaska Land Act, including certain lease, sale, and other disposal of state land and materials; relating to production royalties from miners; relating to rights to use state water; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 361(RES)                                                                    
01 "An Act relating to the Alaska Land Act, including certain lease, sale, and other                                       
02 disposal of state land and materials; relating to production royalties from miners;                                     
03 relating to rights to use state water; and providing for an effective date."                                            
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 38.05.055 is amended to read:                                                                      
06            Sec. 38.05.055. Auction sale or sealed bid procedures. Unless another                                    
07       method of sale is required under this chapter, AS 38.08, or AS 38.09, the sale of state                           
08       land shall be made at public auction or by sealed bid, at the discretion of the                               
09       director, to the highest qualified bidder as determined by the director. The director                         
10       may accept bids and sell state land under this section at not [NO] less than 70 percent                       
11       of the appraised fair market value of the land. To qualify to participate under this                              
12       section in a public auction or sale by sealed bid of state land that is other than                            
13       commercial, industrial, or agricultural land, a bidder shall have been a resident of the                          
14       state for at least one year immediately preceding the date of the sale [AUCTION] and                          
01       submit proof of that fact, as the commissioner requires by regulation. A bidder may be                            
02       represented by an attorney or agent at a public [THE] auction. An aggrieved bidder                            
03       may appeal to the commissioner within five days after the sale for a review of the                                
04       director's determination. The sale shall be conducted by the director, and, at the time                           
05       of sale, the successful bidder shall deposit an amount equal to five percent of the                               
06       purchase price. The director shall immediately issue a receipt containing a description                           
07       of the land or property purchased, the price bid, and the amount deposited. The receipt                           
08       shall be acknowledged in writing by the bidder.                                                                   
09    * Sec. 2. AS 38.05.065(a) is amended to read:                                                                      
10            (a)  The contract of sale for land sold at public auction or by sealed bid under                         
11       AS 38.05.055 shall require the remainder of the purchase price to be paid in monthly,                             
12       quarterly, or annual installments over a period of not more than 20 years, with interest                          
13       at the rate provided in (i) of this section. Installment payments plus interest shall be set                      
14       on the level-payment basis.                                                                                       
15    * Sec. 3. AS 38.05.069(a) is amended to read:                                                                      
16            (a)  After consulting with the Board of Agriculture and Conservation                                         
17       (AS 03.09.010), on a determination that the highest and best use of unoccupied land is                            
18       for agricultural purposes and that it is in the best interests of the state to sell or lease                      
19       the land, the commissioner shall grant to an Alaska resident owning and using or                                  
20       leasing and using land for agricultural purposes a first option [AT THE AUCTION] to                               
21       purchase or lease the unoccupied land situated adjacent to land presently held by the                             
22       Alaska resident for the amount of the high bid received at public auction or by sealed                        
23       bid. If more than one Alaska resident qualifies for a first option under this section,                        
24       eligibility for the first option shall be determined by lot, and the option must be                           
25       exercised on the conclusion of the public auction or opening of sealed bids. A parcel                         
26       of agricultural land sold under this section may not be less than 20 acres, and a parcel                          
27       of agricultural land that is acquired by exercise of the option granted in this subsection                        
28       may not exceed 320 acres. Agricultural land that is acquired under this section must be                           
29       used for agricultural purposes as required by law.                                                                
30    * Sec. 4. AS 38.05.069(c) is amended to read:                                                                      
31            (c)  Under this section,                                                                                     
01                 (1)  the director may transfer state land classified for agriculture only                               
02       for agricultural purposes;                                                                                        
03                 (2)  the sale or lease shall be at public auction or by sealed bid.                                 
04    * Sec. 5. AS 38.05.070(b) is amended to read:                                                                      
05            (b)  The director, with the approval of the commissioner, shall determine the                                
06       land to be leased and the limitations, conditions, and terms of the lease. The director                           
07       shall preserve reasonable and traditional access to state land and water. If the                                  
08       appraised value of the transaction is $10,000 [$5,000] a year or less the director may                        
09       negotiate a lease for a period not to exceed 10 years, and on the limitations,                                    
10       conditions, and terms that the director considers are in the best interests of the state. A                       
11       lease negotiated under this subsection is not eligible for a preference under                                     
12       AS 38.05.102.                                                                                                     
13    * Sec. 6. AS 38.05.070 is amended by adding new subsections to read:                                               
14            (d)  If, after notice under AS 38.05.945 soliciting interest for a competitive                               
15       auction, the department determines that only one potential bidder has expressed                                   
16       interest in bidding, the director may cancel the competitive auction and negotiate a                              
17       lease and its conditions and terms that the director determines to be in the best                                 
18       interests of the state.                                                                                           
19            (e)  The director may renew a lease issued under this section, AS 38.05.075, or                              
20       38.05.810 upon its expiration if the lease is in good standing and the lease renewal is                           
21       determined to be in the best interests of the state. A renewal issued under this                                  
22       subsection is not subject to AS 38.05.035(e). A lease may be renewed only once for a                              
23       term not longer than the initial term of the lease.                                                               
24    * Sec. 7. AS 38.05.073(g) is amended to read:                                                                      
25            (g)  After soliciting proposals under (e) of this section, if the commissioner                               
26       determines that two or more potential lessees are acceptable, the commissioner may                                
27       select the potential lessee who submits the highest bid during a public [AN] auction or                       
28       by sealed bids, whichever method the commissioner chooses. The minimum bid must                                   
29       equal the amount established by the commissioner plus the administrative fee                                      
30       established under (k) of this section. The commissioner shall also require the potential                          
31       lessee to make an earnest money deposit under AS 38.05.860(b). After the                                          
01       commissioner selects a potential lessee, the commissioner may begin negotiations with                             
02       the potential lessee to develop the terms and conditions for the lease.                                           
03    * Sec. 8. AS 38.05.075(a) is amended to read:                                                                      
04            (a)  Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.082,                                    
05       38.05.083, 38.05.087, 38.05.102, 38.05.600, 38.05.810, and this section, when                                 
06       competitive interest has been demonstrated or the commissioner determines that                                
07       it is in the state's best interests, leasing shall be made at public auction or by sealed                 
08       bid, at the discretion of the director, to the highest qualified bidder as determined by                      
09       the commissioner. A bidder may be represented by an attorney or agent at a                                    
10       public auction. In the public notice of a lease to be offered at public auction or by                     
11       sealed bid, the commissioner shall specify a minimum acceptable bid and the lease                             
12       compensation method. The lease compensation method shall be designed to maximize                                  
13       the return on the lease to the state and shall be a form of compensation set out in                               
14       AS 38.05.073(m). An aggrieved bidder may appeal to the commissioner within five                                   
15       days for a review of the determination. The leasing shall be conducted by the                                     
16       commissioner, and the successful bidder shall deposit at the public auction or with                   
17       the sealed bid the first year's rental or other lease compensation as specified by the                        
18       commissioner, or that portion of it that the commissioner requires in accordance with                             
19       the bid. The commissioner shall require, under AS 38.05.860, qualified bidders to                                 
20       deposit a sum equal to any survey or appraisal costs reasonably incurred by another                               
21       qualified bidder acting in accordance with the regulations of the commissioner or                                 
22       incurred by the department under AS 38.04.045 and AS 38.05.840. If a bidder making                                
23       a deposit of survey or appraisal costs is determined by the commissioner to be the                                
24       highest qualified bidder under this subsection, the deposit shall be paid to the                                  
25       unsuccessful bidder who incurred those costs or to the department if the department                               
26       incurred the costs. All costs for survey and appraisal shall be approved in advance in                            
27       writing by the commissioner. The commissioner shall immediately issue a receipt                                   
28       containing a description of the land or interest leased, the price bid, and the terms of                          
29       the lease to the successful qualified bidder. If the receipt is not accepted in writing by                        
30       the bidder under this subsection, the commissioner may offer the land for lease again                             
31       under this subsection. A lease, on a form approved by the attorney general, shall be                              
01       signed by the successful bidder and by the commissioner [WITHIN THE PERIOD                                        
02       SPECIFIED IN THE AUCTION NOTICE].                                                                                 
03    * Sec. 9. AS 38.05.083(a) is amended to read:                                                                      
04            (a)  The commissioner may offer to the public for lease at public auction or by                          
05       sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for                                 
06       aquatic farming or related hatchery operations. Before a final decision to issue or                               
07       renew a lease under this section, the commissioner shall give notice and allow                                    
08       opportunity for comment in accordance with AS 38.05.945 and may hold a hearing to                                 
09       take testimony. Before a final decision to issue or renew a lease under this section, the                         
10       commissioner shall consider all relevant comment or testimony submitted under this                                
11       section, AS 38.05.945, or 38.05.946.                                                                              
12    * Sec. 10. AS 38.05.110(a) is amended to read:                                                                     
13            (a)  The commissioner shall provide for cruises of timber on [AND                                        
14       APPRAISALS OF OTHER MATERIALS IN OR UPON] state land and shall assess                                             
15       the supply of and current markets for timber on [AND OTHER MATERIALS IN]                                          
16       privately owned land in close proximity to state land to determine                                                
17                 (1)  the timber [AND OTHER MATERIALS] that should be offered for                                        
18       sale; and                                                                                                         
19                 (2)  the terms of sale of the timber [OR OTHER MATERIALS].                                              
20    * Sec. 11. AS 38.05.115 is amended to read:                                                                        
21            Sec. 38.05.115. Limitations and conditions of sale. (a) The commissioner                                   
22       shall determine the timber [AND OTHER MATERIALS] to be sold [,] and the                                           
23       limitations, conditions, and terms of sale. The limitations, conditions, and terms shall                          
24       include the utilization, development, and maintenance of the sustained yield principle,                           
25       subject to preference among other beneficial uses. The commissioner may negotiate                                 
26       sales of timber [OR MATERIALS] without advertisement and on the limitations,                                      
27       conditions, and terms that are considered to be in the best interests of the state. Within                        
28       a one-year period, the commissioner may not negotiate a sale without advertisement to                             
29       the same purchaser of                                                                                             
30                 [(1)]  more than 500 M.B.M. or equivalent other measure of timber [;                                    
31                 (2)  EXCEPT AS PROVIDED IN (3) OF THIS SUBSECTION,                                                      
01       MORE THAN 25,000 CUBIC YARDS OF MATERIALS; OR                                                                     
02                 (3)  MORE THAN 100,000 CUBIC YARDS OF MATERIALS TO A                                                    
03       COMMON CARRIER HOLDING A LEASE UNDER AS 38.35].                                                                   
04            (b)  Negotiated sales not exceeding 50 M.B.M. or the equivalent other measure                                
05       of timber [OR 2,500 CUBIC YARDS OF MATERIALS] are exempt from the                                                 
06       provisions of AS 34.15.150.                                                                                       
07            (c)  The limitations of this section are not applicable to timber that [WHICH]                           
08       becomes state property under the provisions of AS 45.50.210 - 45.50.235.                                          
09    * Sec. 12. AS 38.05.120 is amended to read:                                                                        
10            Sec. 38.05.120. Disposal procedure. Timber [AND OTHER MATERIALS]                                           
11       shall be sold either by sealed bids or public auction, depending on which method is                               
12       determined by the commissioner to be in the best interests of the state, to the highest                           
13       qualified bidder as determined by the commissioner. An aggrieved bidder may appeal                                
14       to the commissioner within five days after the sale for a review of the determination.                            
15       The sale shall be conducted by the commissioner, and, at the time of sale, the                            
16       successful bidder shall deposit the amount specified in the terms of sale. The means by                           
17       which the amount of deposit is determined shall be prescribed by appropriate                                      
18       regulation. The commissioner shall immediately issue a receipt containing a                                       
19       description of the timber [OR MATERIALS] purchased, the price bid, and the terms                                  
20       of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a                         
21       form approved by the attorney general, shall be signed by the purchaser and the                                   
22       contract shall be signed by the commissioner on behalf of the state. The commissioner                             
23       may impose conditions, limitations, and terms considered necessary and proper to                                  
24       protect the interests of the state. Violation of any provision of this chapter or the terms                       
25       of the contract of sale subjects the purchaser to appropriate legal action.                                       
26    * Sec. 13. AS 38.05.212(a) is amended to read:                                                                     
27            (a)  In exchange for and to preserve the right to extract and possess the                                    
28       minerals produced, the holder of a mining claim, leasehold location, or mining lease,                             
29       including a mining lease under AS 38.05.250, shall pay a royalty on all minerals                                  
30       produced from land subject to the claim, leasehold location, or mining lease during                               
31       each calendar year, or each fiscal year if the miner does not file the mining license                         
01       tax on a calendar year basis. The department may exempt, by regulation, small                                 
02       operations from the production royalty otherwise required by this section.                                    
03    * Sec. 14. AS 38.05.250(c) is amended to read:                                                                     
04            (c)  Each submerged land mining lease shall be for a period of up to 20 years                                
05       and for so long as there is production in paying quantities from the leased area. A                           
06       submerged land mining lease may be renewed for a period of up to 20 years at                                  
07       the discretion of the director if the director determines that the renewal is in the                          
08       best interests of the state.                                                                                  
09    * Sec. 15. AS 38.05 is amended by adding new sections to read:                                                     
10                        Article 13A. Material Sales.                                                                   
11            Sec. 38.05.550. Disposal of materials. (a) All materials owned by the state                                
12       may be sold or conveyed as provided in AS 38.05.550 - 38.05.565.                                                  
13            (b)  Materials may only be sold or removed from sources or sites designated by                               
14       the department. The department shall issue a decision under AS 38.05.035(e) that the                              
15       sale and extraction of materials from that location is in the best interests of the state at                      
16       the time each source or site is designated. The department shall give notice, in                                  
17       accordance with AS 38.05.945, of the department's decision to designate a source or                               
18       site for the sale and extraction of materials. After decision and notice, the department                          
19       may sell materials continuously, without further finding or notice, from that                                     
20       designated source or site under this section until the source or site is closed by the                            
21       department.                                                                                                       
22            (c)  Each sale of materials must be made through a materials sales contract on a                             
23       form that has been approved by the attorney general. At the time of each sale, the                                
24       department shall determine                                                                                        
25                 (1)  the location of the source or site from which materials are to be                                  
26       removed;                                                                                                          
27                 (2)  the method of disposal as provided in AS 38.05.555 - 38.05.565;                                    
28       and                                                                                                               
29                 (3)  the limitations, conditions, and terms of sale, which shall address                                
30       the utilization, development, and maintenance of the source of the materials.                                     
31            (d)  The commissioner shall provide for valuation of materials in or upon state                              
01       land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the                                       
02       director's discretion, be sold at                                                                                 
03                 (1)  representative regional sales prices periodically determined by the                                
04       commissioner for each type of material and for defined geographic regions, under                                  
05       procedures established by regulation; public notice under AS 38.05.945 must be made                               
06       whenever the commissioner revises the representative regional sales prices;                                       
07                 (2)  fair market value determined by appraisal completed and approved                                   
08       within two years of the date of sale; or                                                                          
09                 (3)  a price less than appraised value, determined under                                                
10       AS 38.05.810(a).                                                                                                  
11            Sec. 38.05.555. Negotiated sales and personal use of materials. (a)                                        
12       Notwithstanding any other provision of AS 38.05.550 - 38.05.565, the director may                                 
13       negotiate the sale of any amount of materials from a source or site designated under                              
14       AS 38.05.550(b). The period of a contract for a sale of materials negotiated under this                           
15       section may not exceed five years.                                                                                
16            (b)  Sales of materials under this section must be made at a representative                                  
17       regional sales price set by the commissioner under AS 38.05.550(d)(1) unless                                      
18                 (1)  the director determines that it is in the best interests of the state to                           
19       sell the materials at fair market value determined by an appraisal provided by the                                
20       department;                                                                                                       
21                 (2)  the applicant, at its own cost, elects to provide an appraisal,                                    
22       acceptable to the department, determining the fair market value of the materials to be                            
23       sold; or                                                                                                          
24                 (3)  the sale is to a state or federal agency or political subdivision under                            
25       AS 38.05.810(a) and the material to be extracted and removed is used for public                                   
26       purposes; sales under this paragraph may be at a price less than appraised value as                               
27       determined by the director.                                                                                       
28            (c)  Subsequent sales of similar materials from the same source or site may be                               
29       made by the department at the price established by an appraisal provided under (b) of                             
30       this section.                                                                                                     
31            (d)  Individual negotiated contracts for the sale of materials authorized by (a)                             
01       of this section are not subject to AS 38.05.035(e) or 38.05.945.                                                  
02            (e)  Materials from a source or site designated under AS 38.05.550(b) may be                                 
03       extracted and removed for personal use without cost up to a limit of two cubic yards a                            
04       person within a one-calendar-year period. Extraction and removal of materials under                               
05       this subsection must be approved by the department before extraction operations.                                  
06            (f)  Notwithstanding (a) - (e) of this section, for the purpose of creating                                  
07       incentives for the development of peat as a source of heat or power, the director may                             
08       negotiate the sale of peat to individuals, organized or unorganized communities, tribal                           
09       governments, or private profit or nonprofit organizations. Under this subsection, the                             
10       director may provide                                                                                              
11                 (1)  for personal use by an individual, not more than 200 cubic yards of                                
12       peat a year at no cost;                                                                                           
13                 (2)  for commercial use, not more than 30,000 cubic yards of peat                                       
14       during a single 10-year period at no cost; or                                                                     
15                 (3)  for commercial use requiring more than 30,000 cubic yards of peat,                                 
16       the amount required by the user during a 10-year period beginning when the user uses                              
17       more than 30,000 yards of peat at the price of                                                                    
18                      (A)  20 percent of the representative regional sales price                                         
19            determined by the director under AS 38.05.550(d)(1); or                                                      
20                      (B)  20 percent of the fair market value determined by an                                          
21            appraisal completed under AS 38.05.550(d)(2), if the applicant provides the                                  
22            appraisal at the applicant's expense and the appraisal is approved by the                                    
23            commissioner.                                                                                                
24            Sec. 38.05.560. Competitive sales of materials. (a) The department shall offer                             
25       materials from a source or site designated under AS 38.05.550(b) for competitive sale                             
26       if the department determines that                                                                                 
27                 (1)  the sale would result in an exclusive use by the purchaser of a                                    
28       designated source or site;                                                                                        
29                 (2)  materials available at a designated source or site are insufficient to                             
30       supply all anticipated buyers;                                                                                    
31                 (3)  the size of the designated source or site is too small to                                          
01       accommodate the extraction operations of all anticipated buyers; or                                               
02                 (4)  it is in the best interests of the state.                                                          
03            (b)  Notice of a competitive sale of materials from a source or site designated                              
04       under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall                                           
05                 (1)  describe the location of the designated source or site, and the type                               
06       and quantity of the materials to be sold;                                                                         
07                 (2)  solicit potential bidders to register with the department to                                       
08       participate in the proposed sale; only persons registered to bid at a proposed sale of                            
09       materials may bid; and                                                                                            
10                 (3)  include the minimum bid for materials to be sold.                                                  
11            (c)  A notice of competitive sale required under (b) of this section may be                                  
12       combined with a notice required under AS 38.05.550.                                                               
13            (d)  If, after notice under (b) of this section, only one potential bidder has                               
14       registered to bid at a proposed competitive sale, the competitive sale may be cancelled                           
15       and the materials sold by negotiation under AS 38.05.555.                                                         
16            (e)  Materials sold under this section may be sold either by sealed bid or by                                
17       public outcry or online auction, in the discretion of the department, to the highest                              
18       qualified bidder as determined by the department. An aggrieved bidder may appeal to                               
19       the commissioner under AS 44.37.011 within five days after the sale for a review of                               
20       the determination. The sale shall be conducted by the director or the director's                                  
21       designee, and, at the time of sale, the successful bidder shall deposit the amount                                
22       specified in the terms of sale. The means by which the amount of deposit is                                       
23       determined shall be prescribed by regulation. The director shall immediately issue a                              
24       receipt containing a description of the materials purchased, the price bid, and the terms                         
25       of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a                         
26       form approved by the attorney general, shall be signed by the purchaser, and the                                  
27       contract shall be signed by the director on behalf of the state. The director may impose                          
28       conditions, limitations, and terms considered necessary and proper to protect the                                 
29       interests of the state.                                                                                           
30            Sec. 38.05.562. Violations. Violation of any provision of AS 38.05.550 -                                   
31       38.05.565 or the terms of the contract of sale subjects the purchaser to appropriate                              
01       legal action.                                                                                                     
02            Sec. 38.05.565. Sale or disposal of materials for special purposes. (a) The                                
03       department may negotiate the sale or otherwise dispose of materials from sources or                               
04       sites other than those designated under AS 38.05.550(b) to                                                        
05                 (1)  municipalities, other state and federal agencies, or other entities                                
06       under AS 38.05.872; sales under this paragraph may be at less than fair market value,                             
07       and materials may be disposed of free of charge if the director determines that the                               
08       disposal is in the public interest;                                                                               
09                 (2)  a licensed public utility or a licensed common carrier under                                       
10       AS 38.05.810(e); sales under this paragraph shall be at representative regional sales                             
11       prices determined under AS 38.05.550(d)(1); or                                                                    
12                 (3)  a holder of a permit, land lease, or right-of-way issued by the                                    
13       department, if the materials to be extracted and removed during the construction, use,                            
14       or maintenance of a facility authorized by a permit, land lease, or right-of-way, are                             
15       necessary and incidental to the primary purpose of the permit, land lease, or right-of-                           
16       way, and the materials are put to beneficial use in a way that alters the character,                              
17       usefulness, or availability of the materials in their native forms; the department may                            
18       authorize the sale of materials under terms of the permit, land lease, or right-of-way;                           
19       sales of materials under this paragraph must be at                                                                
20                      (A)  the representative regional sales price established under                                     
21            AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political                                
22            subdivision, or other entity under AS 38.05.810(a); or                                                       
23                      (B)  a price less than appraised value as determined by the                                        
24            director if the sale is to a state or federal agency, political subdivision, or other                        
25            entity under AS 38.05.810(a) and the materials to be extracted and removed                                   
26            are used for public purposes.                                                                                
27            (b)  If materials are moved within and not removed from the boundaries of a                                  
28       permit, land lease, or right-of-way issued by the department without altering the                                 
29       character, usefulness, or availability of the materials in their native forms, the                                
30       applicant may not be required to purchase the materials.                                                          
31            (c)  In this section, "land lease"                                                                           
01                 (1)  means a lease issued under AS 38.05.070 - 38.05.105;                                             
02                 (2)  does not include a lease issued under AS 38.05.131 - 38.05.275.                                    
03    * Sec. 16. AS 38.05.810(b) is amended to read:                                                                     
04            (b)  Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director,                                   
05       upon application filed by an applicant eligible under (b) - (d) of this section, may, by                          
06       negotiation and without competitive bid [PUBLIC AUCTION] in the manner                                        
07       prescribed in (b) - (d) of this section, lease state land for a term of not more than 55                          
08       years. Before leasing, the director shall prepare a land use plan and a land                                      
09       classification to ensure [INSURE] that the proposed use is compatible with area                               
10       utilization. Before the land may be leased under (b) - (d) of this section, it must be                            
11       shown to the satisfaction of the director that the land is to be used for an established or                       
12       definitely proposed project, and that the eligible applicant has the financial ability to                         
13       carry out the project. The commissioner may establish limitations on the acreage that                         
14       [WHICH] may be leased under (b) - (d) of this section to an applicant.                                            
15    * Sec. 17. AS 38.05.810(e) is amended to read:                                                                     
16            (e)  The lease, sale, or other disposal of state land at appraised fair market                               
17       value may be negotiated with a licensed public utility or a licensed common carrier by                            
18       the director with the approval of the commissioner if the utility or carrier reasonably                           
19       requires the land for the conduct of its business under its license. Notwithstanding                          
20       AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or                           
21       maintenance of property leased, sold, or disposed of under this section may be                                
22       negotiated by the director. A lease with a licensed public utility that is an electric                        
23       utility entered into under this subsection may not include, as part of the rent or other                          
24       fee that is negotiated or charged, an amount that is based on or determined by a                                  
25       percentage of gross revenue for renewable energy produced by the electric utility.                                
26    * Sec. 18. AS 38.05.872 is repealed and reenacted to read:                                                         
27            Sec. 38.05.872. Disposition of state land and resources for flood control                                
28       projects. (a) The department may make conveyances of title or other interests in state                        
29       land, provide for exchange of land, or make other arrangements with respect to state                              
30       land, as necessary to meet federally established requirements of flood control projects                           
31       authorized inside the state by the United States.                                                                 
01            (b)  The commissioner may convey materials at less than fair market value to                                 
02       municipalities, other state and federal agencies, or other entities, and make other                               
03       arrangements for land and materials as mitigation of a flooding area where excess                                 
04       material deposition significantly contributes to the flooding, consistent with a site-                            
05       specific flood mitigation plan approved by the commissioner and determined to be in                               
06       the best interests of the public.                                                                                 
07    * Sec. 19. AS 38.05.945(b) is amended to read:                                                                     
08            (b)  When notice is required to be given under this section,                                                 
09                 (1)  the notice must contain sufficient information in commonly                                         
10       understood terms to inform the public of the nature of the action and the opportunity                             
11       of the public to comment on it;                                                                                   
12                 (2)  if the notice is of a preliminary written finding described in                                     
13       (a)(3)(A) of this section, the department shall give notice at the beginning of the public                        
14       comment period for the preliminary written finding, notifying the public of the right to                          
15       submit comments; the department shall give notice by                                                              
16                      (A)  posting notice on the Alaska Online Public Notice                                         
17            System for at least 30 consecutive days [PUBLICATION OF A LEGAL                                          
18            NOTICE IN NEWSPAPERS OF STATEWIDE CIRCULATION AND IN                                                         
19            NEWSPAPERS OF GENERAL CIRCULATION IN THE VICINITY OF                                                         
20            THE PROPOSED ACTION AT LEAST ONCE A WEEK FOR TWO                                                             
21            CONSECUTIVE WEEKS];                                                                                          
22                      (B)  publication of a notice in display advertising form                                           
23            describing the proposed action and referencing the online notice required                                
24            in (A) of this paragraph in newspapers of statewide circulation and in                                   
25            newspapers of general circulation in the vicinity of the proposed action, if                             
26            available, [IN THE NEWSPAPERS DESCRIBED IN (A) OF THIS                                                   
27            PARAGRAPH] at least once a week for two consecutive weeks;                                                   
28                      (C)  public service announcements on the electronic media                                          
29            serving the area to be affected by the proposed action; and                                                  
30                      (D)  one or more of the following methods:                                                         
31                           (i)  publication of a legal notice in newspapers of                                       
01                 statewide circulation or in newspapers of general circulation in the                                
02                 vicinity of the proposed action, if available, at least once a week for                             
03                 two consecutive weeks;                                                                              
04                           (ii)  posting in a conspicuous location in the vicinity of                                
05                 the action;                                                                                             
06                           (iii) [(ii)]  notification of parties known or likely to be                               
07                 affected by the action; or                                                                              
08                           (iv) [(iii)]  another method calculated to reach affected                                 
09                 parties;                                                                                                
10                 (3)  if the notice is of an action described in (a) of this section, other                              
11       than notice of an action under (a)(3)(A) of this section, the department shall give                               
12       notice at least 30 days before the action by posting notice on the Alaska Online                              
13       Public Notice System for at least 30 consecutive days [PUBLICATION IN                                         
14       NEWSPAPERS OF STATEWIDE CIRCULATION AND IN NEWSPAPERS OF                                                          
15       GENERAL CIRCULATION IN THE VICINITY OF THE PROPOSED ACTION]                                                       
16       and by one or more of the following methods:                                                                  
17                      (A)  publication of a notice in display advertising form                                       
18            describing the proposed action and referencing the online notice required                                
19            in this paragraph in newspapers of statewide circulation and in                                          
20            newspapers of general circulation in the vicinity of the proposed action, if                             
21            available, at least once a week for two consecutive weeks;                                               
22                      (B)  publication through public service announcements on the                                   
23            electronic media serving the area affected by the action;                                                    
24                      (C) [(B)]  posting in a conspicuous location in the vicinity of                                
25            the action;                                                                                                  
26                      (D) [(C)]  notification of parties known or likely to be affected                              
27            by the action;                                                                                               
28                      (E)  publication of a legal notice, at least 30 days before the                                
29            action, briefly describing the proposed action and referencing the online                                
30            notice required in this paragraph in newspapers of statewide circulation                                 
31            and in newspapers of general circulation in the vicinity of the proposed                                 
01            action, if available; or                                                                                 
02                      (F) [(D)]  another method calculated to reach affected persons.                                
03    * Sec. 20. AS 38.05.945(b), as amended by sec. 19 of this Act, is amended to read:                                 
04            (b)  When notice is required to be given under this section,                                                 
05                 (1)  the notice must contain sufficient information in commonly                                         
06       understood terms to inform the public of the nature of the action and the opportunity                             
07       of the public to comment on it;                                                                                   
08                 (2)  if the notice is of a preliminary written finding described in                                     
09       (a)(3)(A) of this section, the department shall give notice at the beginning of the public                        
10       comment period for the preliminary written finding, notifying the public of the right to                          
11       submit comments; the department shall give notice by                                                              
12                      (A)  posting notice on the Alaska Online Public Notice System                                      
13            for at least 30 consecutive days;                                                                            
14                      (B)  publication of a notice in display advertising form                                           
15            describing the proposed action and referencing the online notice required in                                 
16            (A) of this paragraph in newspapers of statewide circulation and in newspapers                               
17            of general circulation in the vicinity of the proposed action, if available, at least                        
18            once a week for two consecutive weeks;                                                                       
19                      (C)  public service announcements on the electronic media                                          
20            serving the area to be affected by the proposed action; and                                                  
21                      (D)  one or more of the following methods:                                                         
22                           (i)  publication of a legal notice in newspapers of                                           
23                 statewide circulation or in newspapers of general circulation in the                                    
24                 vicinity of the proposed action, if available, at least once a week for                                 
25                 two consecutive weeks;                                                                                  
26                           (ii)  posting in a conspicuous location in the vicinity of                                    
27                 the action;                                                                                             
28                           (iii)  notification of parties known or likely to be                                          
29                 affected by the action; or                                                                              
30                           (iv)  another method calculated to reach affected parties;                                    
31                 (3)  if the notice is of an action described in (a) of this section, other                              
01       than notice of an action under (a)(3)(A) of this section, the department shall give                               
02       notice at least 30 days before the action by posting notice on the Alaska Online Public                           
03       Notice System for at least 30 consecutive days and by one or more of the following                                
04       methods:                                                                                                          
05                      (A)  publication of a notice in display advertising form                                           
06            describing the proposed action and referencing the online notice required in                                 
07            this paragraph in newspapers of statewide circulation and in newspapers of                                   
08            general circulation in the vicinity of the proposed action, if available, at least                           
09            once a week for two consecutive weeks;                                                                       
10                      (B)  publication through public service announcements on the                                       
11            electronic media serving the area affected by the action;                                                    
12                      (C)  posting in a conspicuous location in the vicinity of the                                      
13            action;                                                                                                      
14                      (D)  notification of parties known or likely to be affected by the                                 
15            action; or                                                                                               
16                      (E)  [PUBLICATION OF A LEGAL NOTICE, AT LEAST 30                                                   
17            DAYS BEFORE THE ACTION, BRIEFLY DESCRIBING THE PROPOSED                                                      
18            ACTION AND REFERENCING THE ONLINE NOTICE REQUIRED IN                                                         
19            THIS PARAGRAPH IN NEWSPAPERS OF STATEWIDE CIRCULATION                                                        
20            AND IN NEWSPAPERS OF GENERAL CIRCULATION IN THE                                                              
21            VICINITY OF THE PROPOSED ACTION, IF AVAILABLE; OR                                                            
22                      (F)]  another method calculated to reach affected persons.                                         
23    * Sec. 21. AS 38.05.965(10) is repealed and reenacted to read:                                                     
24                 (10)  "materials"                                                                                       
25                      (A)  means all common variety rock and minerals of any                                             
26            quality, that are saleable and not subject to location under state or federal                                
27            mining laws;                                                                                                 
28                      (B)  includes aggregate, riprap, railroad ballast, road ballast,                                   
29            road metal, peat, silt, loam, sand, gravel, stone, pumice, and common clay;                                  
30    * Sec. 22. AS 41.23.470(b) is amended to read:                                                                     
31            (b)  The commissioner may conduct only a negotiated timber [OR                                               
01       MATERIAL] sale under AS 38.05.115 to provide for personal use, including house                                    
02       logs and firewood, or for a use incidental to the construction of access, or for habitat                          
03       enhancement.                                                                                                      
04    * Sec. 23. AS 46.15.155(a) is amended to read:                                                                     
05            (a)  Notwithstanding any contrary provision of this chapter, the commissioner                                
06       may authorize the temporary use of a significant amount of water, as determined by                                
07       the department by regulation, for a period of time not to exceed five consecutive years                           
08       for each authorization, if the water applied for has not been appropriated in                                 
09       accordance with this chapter. In the commissioner's discretion, a new authorization                           
10       for the temporary use of a significant amount of water may be issued for a                                    
11       project at or before the expiration of the existing authorization issued for the                              
12       same project.                                                                                                 
13    * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to                         
14 read:                                                                                                                   
15       REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change                                            
16            (1)  the heading of art. 4 of AS 38.05 from "Disposal of Timber and Materials"                               
17 to "Disposal of Timber";                                                                                                
18            (2)  the catch line of AS 38.05.110 from "Sale of timber and materials;                                      
19 account" to "Sale of timber."                                                                                           
20    * Sec. 25. Section 20 of this Act takes effect July 1, 2017.                                                       
21    * Sec. 26. Except as provided in sec. 25 of this Act, this Act takes effect July 1, 2012.