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CSHB 361(FIN): "An Act relating to the Alaska Land Act, including certain leases, sales, and other disposals of state land and materials; relating to production royalties from miners; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 361(FIN)                                                                    
01 "An Act relating to the Alaska Land Act, including certain leases, sales, and other                                     
02 disposals of state land and materials; relating to production royalties from miners; and                                
03 providing for an effective date."                                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 38.05.050 is amended to read:                                                                      
06            Sec. 38.05.050. Disposal of land for private ownership. The commissioner                                   
07       shall determine the land to be disposed of for private use. The commissioner shall                                
08       determine the time and place of disposal. A public [AN] auction sale, sale by sealed                      
09       bid, a lottery sale, or a disposal of land for homesites may be held in a community that                      
10       is near the land to be sold or disposed of.                                                                       
11    * Sec. 2. AS 38.05.055 is amended to read:                                                                         
12            Sec. 38.05.055. Auction sale or sealed bid procedures. Unless another                                    
13       method of sale is required under this chapter, AS 38.08, or AS 38.09, the sale of state                           
14       land shall be made at public auction or by sealed bid, at the discretion of the                               
01       director, to the highest qualified bidder as determined by the director. The director                         
02       may accept bids and sell state land under this section at not [NO] less than 70 percent                       
03       of the appraised fair market value of the land. To qualify to participate under this                              
04       section in a public auction or sale by sealed bid of state land that is other than                            
05       commercial, industrial, or agricultural land, a bidder shall have been a resident of the                          
06       state for at least one year immediately preceding the date of the sale [AUCTION] and                          
07       submit proof of that fact, as the commissioner requires by regulation. A bidder may be                            
08       represented by an attorney or agent at a public [THE] auction. An aggrieved bidder                            
09       may appeal to the commissioner within five days after the sale for a review of the                                
10       director's determination. The sale shall be conducted by the director, and, at the time                           
11       of sale, the successful bidder shall deposit an amount equal to five percent of the                               
12       purchase price. The director shall immediately issue a receipt containing a description                           
13       of the land or property purchased, the price bid, and the amount deposited. The receipt                           
14       shall be acknowledged in writing by the bidder.                                                                   
15    * Sec. 3. AS 38.05.065(a) is amended to read:                                                                      
16            (a)  The contract of sale for land sold at public auction or by sealed bid under                         
17       AS 38.05.055 shall require the remainder of the purchase price to be paid in monthly,                             
18       quarterly, or annual installments over a period of not more than 20 years, with interest                          
19       at the rate provided in (i) of this section. Installment payments plus interest shall be set                      
20       on the level-payment basis.                                                                                       
21    * Sec. 4. AS 38.05.069(a) is amended to read:                                                                      
22            (a)  After consulting with the Board of Agriculture and Conservation                                         
23       (AS 03.09.010), on a determination that the highest and best use of unoccupied land is                            
24       for agricultural purposes and that it is in the best interests of the state to sell or lease                      
25       the land, the commissioner shall grant to an Alaska resident owning and using or                                  
26       leasing and using land for agricultural purposes a first option [AT THE AUCTION] to                               
27       purchase or lease the unoccupied land situated adjacent to land presently held by the                             
28       Alaska resident for the amount of the high bid received at public auction or by sealed                        
29       bid. If more than one Alaska resident qualifies for a first option under this section,                        
30       eligibility for the first option shall be determined by lot, and the option must be                           
31       exercised on the conclusion of the public auction or opening of sealed bids. A parcel                         
01       of agricultural land sold under this section may not be less than 20 acres, and a parcel                          
02       of agricultural land that is acquired by exercise of the option granted in this subsection                        
03       may not exceed 320 acres. Agricultural land that is acquired under this section must be                           
04       used for agricultural purposes as required by law.                                                                
05    * Sec. 5. AS 38.05.069(c) is amended to read:                                                                      
06            (c)  Under this section,                                                                                     
07                 (1)  the director may transfer state land classified for agriculture only                               
08       for agricultural purposes;                                                                                        
09                 (2)  the sale or lease shall be at public auction or by sealed bid.                                 
10    * Sec. 6. AS 38.05.070(b) is amended to read:                                                                      
11            (b)  The director, with the approval of the commissioner, shall determine the                                
12       land to be leased and the limitations, conditions, and terms of the lease. The director                           
13       shall preserve reasonable and traditional access to state land and water. If the                                  
14       appraised value of the transaction is $10,000 [$5,000] a year or less the director may                        
15       negotiate a lease for a period not to exceed 10 years, and on the limitations,                                    
16       conditions, and terms that the director considers are in the best interests of the state. A                       
17       lease negotiated under this subsection is not eligible for a preference under                                     
18       AS 38.05.102.                                                                                                     
19    * Sec. 7. AS 38.05.070 is amended by adding new subsections to read:                                               
20            (d)  If, after notice under AS 38.05.945 soliciting interest for a competitive                               
21       auction, the department determines that only one potential bidder has expressed                                   
22       interest in bidding, the director may cancel the competitive auction and negotiate a                              
23       lease and its conditions and terms that the director determines to be in the best                                 
24       interests of the state.                                                                                           
25            (e)  The director may renew a lease issued under this section, AS 38.05.075, or                              
26       38.05.810 upon its expiration if the lease is in good standing and the lease renewal is                           
27       determined to be in the best interests of the state. A renewal issued under this                                  
28       subsection is not subject to AS 38.05.035(e). A lease may be renewed only once for a                              
29       term not longer than the initial term of the lease.                                                               
30    * Sec. 8. AS 38.05.073(g) is amended to read:                                                                      
31            (g)  After soliciting proposals under (e) of this section, if the commissioner                               
01       determines that two or more potential lessees are acceptable, the commissioner may                                
02       select the potential lessee who submits the highest bid during a public [AN] auction or                       
03       by sealed bids, whichever method the commissioner chooses. The minimum bid must                                   
04       equal the amount established by the commissioner plus the administrative fee                                      
05       established under (k) of this section. The commissioner shall also require the potential                          
06       lessee to make an earnest money deposit under AS 38.05.860(b). After the                                          
07       commissioner selects a potential lessee, the commissioner may begin negotiations with                             
08       the potential lessee to develop the terms and conditions for the lease.                                           
09    * Sec. 9. AS 38.05.075(a) is amended to read:                                                                      
10            (a)  Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.082,                                    
11       38.05.083, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 38.05.810, and this section,                           
12       when competitive interest has been demonstrated or the commissioner                                           
13       determines that it is in the state's best interests, leasing shall be made at public                          
14       auction or by sealed bid, at the discretion of the director, to the highest qualified                         
15       bidder as determined by the commissioner. A bidder may be represented by an                                   
16       attorney or agent at a public auction. In the public notice of a lease to be offered at                       
17       public auction or by sealed bid, the commissioner shall specify a minimum                                     
18       acceptable bid and the lease compensation method. The lease compensation method                                   
19       shall be designed to maximize the return on the lease to the state and shall be a form of                         
20       compensation set out in AS 38.05.073(m). An aggrieved bidder may appeal to the                                    
21       commissioner within five days for a review of the determination. The leasing shall be                             
22       conducted by the commissioner, and the successful bidder shall deposit at the public                      
23       auction or with the sealed bid the first year's rental or other lease compensation as                         
24       specified by the commissioner, or that portion of it that the commissioner requires in                            
25       accordance with the bid. The commissioner shall require, under AS 38.05.860,                                      
26       qualified bidders to deposit a sum equal to any survey or appraisal costs reasonably                              
27       incurred by another qualified bidder acting in accordance with the regulations of the                             
28       commissioner or incurred by the department under AS 38.04.045 and AS 38.05.840. If                                
29       a bidder making a deposit of survey or appraisal costs is determined by the                                       
30       commissioner to be the highest qualified bidder under this subsection, the deposit shall                          
31       be paid to the unsuccessful bidder who incurred those costs or to the department if the                           
01       department incurred the costs. All costs for survey and appraisal shall be approved in                            
02       advance in writing by the commissioner. The commissioner shall immediately issue a                                
03       receipt containing a description of the land or interest leased, the price bid, and the                           
04       terms of the lease to the successful qualified bidder. If the receipt is not accepted in                          
05       writing by the bidder under this subsection, the commissioner may offer the land for                              
06       lease again under this subsection. A lease, on a form approved by the attorney general,                           
07       shall be signed by the successful bidder and by the commissioner [WITHIN THE                                      
08       PERIOD SPECIFIED IN THE AUCTION NOTICE].                                                                          
09    * Sec. 10. AS 38.05.075(e) is amended to read:                                                                     
10            (e)  The commissioner may require prequalification of bidders for a lease to be                              
11       issued under AS 38.05.070. If the commissioner determines to require                                              
12       prequalification, the procedures established by this section and the notice including                             
13       prequalification [PRE-QUALIFICATION] requirements required to be given under                                  
14       AS 38.05.945 shall be completed within 75 days of the receipt of the first lease                                  
15       application unless the commissioner grants additional time for the completion of the                              
16       procedures. Within the 75-day period or the additional time granted by the                                        
17       commissioner, the commissioner shall complete                                                                     
18                 (1)  classification under AS 38.05.300;                                                                 
19                 (2)  the procedures required by AS 38.05.035(e);                                                        
20                 (3)  any other action required by law for the disposal of the lease to a                                
21       bidder except survey, appraisal, and the auction or sealed bid.                                               
22    * Sec. 11. AS 38.05.075(g) is amended to read:                                                                     
23            (g)  Notice of an auction or sealed bid required under this section shall be                             
24       made by certified mail to all prequalified bidders.                                                               
25    * Sec. 12. AS 38.05.083(a) is amended to read:                                                                     
26            (a)  The commissioner may offer to the public for lease at public auction or by                          
27       sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for                                 
28       aquatic farming or related hatchery operations. Before a final decision to issue or                               
29       renew a lease under this section, the commissioner shall give notice and allow                                    
30       opportunity for comment in accordance with AS 38.05.945 and may hold a hearing to                                 
31       take testimony. Before a final decision to issue or renew a lease under this section, the                         
01       commissioner shall consider all relevant comment or testimony submitted under this                                
02       section, AS 38.05.945, or 38.05.946.                                                                              
03    * Sec. 13. AS 38.05.110(a) is amended to read:                                                                     
04            (a)  The commissioner shall provide for cruises of timber on [AND                                        
05       APPRAISALS OF OTHER MATERIALS IN OR UPON] state land and shall assess                                             
06       the supply of and current markets for timber on [AND OTHER MATERIALS IN]                                          
07       privately owned land in close proximity to state land to determine                                                
08                 (1)  the timber [AND OTHER MATERIALS] that should be offered for                                        
09       sale; and                                                                                                         
10                 (2)  the terms of sale of the timber [OR OTHER MATERIALS].                                              
11    * Sec. 14. AS 38.05.115 is amended to read:                                                                        
12            Sec. 38.05.115. Limitations and conditions of sale. (a) The commissioner                                   
13       shall determine the timber [AND OTHER MATERIALS] to be sold [,] and the                                           
14       limitations, conditions, and terms of sale. The limitations, conditions, and terms shall                          
15       include the utilization, development, and maintenance of the sustained yield principle,                           
16       subject to preference among other beneficial uses. The commissioner may negotiate                                 
17       sales of timber [OR MATERIALS] without advertisement and on the limitations,                                      
18       conditions, and terms that are considered to be in the best interests of the state. Within                        
19       a one-year period, the commissioner may not negotiate a sale without advertisement to                             
20       the same purchaser of                                                                                             
21                 [(1)]  more than 500 M.B.M. or equivalent other measure of timber [;                                    
22                 (2)  EXCEPT AS PROVIDED IN (3) OF THIS SUBSECTION,                                                      
23       MORE THAN 25,000 CUBIC YARDS OF MATERIALS; OR                                                                     
24                 (3)  MORE THAN 100,000 CUBIC YARDS OF MATERIALS TO A                                                    
25       COMMON CARRIER HOLDING A LEASE UNDER AS 38.35].                                                                   
26            (b)  Negotiated sales not exceeding 50 M.B.M. or the equivalent other measure                                
27       of timber [OR 2,500 CUBIC YARDS OF MATERIALS] are exempt from the                                                 
28       provisions of AS 34.15.150.                                                                                       
29            (c)  The limitations of this section are not applicable to timber that [WHICH]                           
30       becomes state property under the provisions of AS 45.50.210 - 45.50.235.                                          
31    * Sec. 15. AS 38.05.120 is amended to read:                                                                        
01            Sec. 38.05.120. Disposal procedure. Timber [AND OTHER MATERIALS]                                           
02       shall be sold either by sealed bids or public auction, depending on which method is                               
03       determined by the commissioner to be in the best interests of the state, to the highest                           
04       qualified bidder as determined by the commissioner. An aggrieved bidder may appeal                                
05       to the commissioner within five days after the sale for a review of the determination.                            
06       The sale shall be conducted by the commissioner, and, at the time of sale, the                            
07       successful bidder shall deposit the amount specified in the terms of sale. The means by                           
08       which the amount of deposit is determined shall be prescribed by appropriate                                      
09       regulation. The commissioner shall immediately issue a receipt containing a                                       
10       description of the timber [OR MATERIALS] purchased, the price bid, and the terms                                  
11       of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a                         
12       form approved by the attorney general, shall be signed by the purchaser and the                                   
13       contract shall be signed by the commissioner on behalf of the state. The commissioner                             
14       may impose conditions, limitations, and terms considered necessary and proper to                                  
15       protect the interests of the state. Violation of any provision of this chapter or the terms                       
16       of the contract of sale subjects the purchaser to appropriate legal action.                                       
17    * Sec. 16. AS 38.05.212(a) is amended to read:                                                                     
18            (a)  In exchange for and to preserve the right to extract and possess the                                    
19       minerals produced, the holder of a mining claim, leasehold location, or mining lease,                             
20       including a mining lease under AS 38.05.250, shall pay a royalty on all minerals                                  
21       produced from land subject to the claim, leasehold location, or mining lease during                               
22       each calendar year, or each fiscal year if the miner does not file the mining license                         
23       tax on a calendar year basis. The department may exempt, by regulation, small                                 
24       operations from the production royalty otherwise required by this section.                                    
25    * Sec. 17. AS 38.05.250(c) is amended to read:                                                                     
26            (c)  Each submerged land mining lease shall be for a period of up to 20 years                                
27       and for so long as there is production in paying quantities from the leased area. A                           
28       submerged land mining lease may be renewed for a period of up to 20 years at                                  
29       the discretion of the director if the director determines that the renewal is in the                          
30       best interests of the state.                                                                                  
31    * Sec. 18. AS 38.05 is amended by adding new sections to read:                                                     
01                        Article 13A. Material Sales.                                                                   
02            Sec. 38.05.550. Disposal of materials. (a) All materials owned by the state                                
03       may be sold or conveyed as provided in AS 38.05.550 - 38.05.565.                                                  
04            (b)  Materials may only be sold or removed from sources or sites designated by                               
05       the department. The department shall issue a decision under AS 38.05.035(e) that the                              
06       sale and extraction of materials from that location is in the best interests of the state at                      
07       the time each source or site is designated. The department shall give notice, in                                  
08       accordance with AS 38.05.945, of the department's decision to designate a source or                               
09       site for the sale and extraction of materials. After decision and notice, the department                          
10       may sell materials continuously, without further finding or notice, from that                                     
11       designated source or site under this section until the source or site is closed by the                            
12       department.                                                                                                       
13            (c)  Each sale of materials must be made through a materials sales contract on a                             
14       form that has been approved by the attorney general. At the time of each sale, the                                
15       department shall determine                                                                                        
16                 (1)  the location of the source or site from which materials are to be                                  
17       removed;                                                                                                          
18                 (2)  the method of disposal as provided in AS 38.05.555 - 38.05.565;                                    
19       and                                                                                                               
20                 (3)  the limitations, conditions, and terms of sale, which shall address                                
21       the utilization, development, and maintenance of the source of the materials.                                     
22            (d)  The commissioner shall provide for valuation of materials in or upon state                              
23       land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the                                       
24       director's discretion, be sold at                                                                                 
25                 (1)  representative regional sales prices periodically determined by the                                
26       commissioner for each type of material and for defined geographic regions, under                                  
27       procedures established by regulation; public notice under AS 38.05.945 must be made                               
28       whenever the commissioner revises the representative regional sales prices;                                       
29                 (2)  fair market value determined by appraisal completed and approved                                   
30       within two years of the date of sale; or                                                                          
31                 (3)  a price less than appraised value, determined under                                                
01       AS 38.05.810(a).                                                                                                  
02            Sec. 38.05.555. Negotiated sales and personal use of materials. (a)                                        
03       Notwithstanding any other provision of AS 38.05.550 - 38.05.565, the director may                                 
04       negotiate the sale of any amount of materials from a source or site designated under                              
05       AS 38.05.550(b). The period of a contract for a sale of materials negotiated under this                           
06       section may not exceed five years.                                                                                
07            (b)  Sales of materials under this section must be made at a representative                                  
08       regional sales price set by the commissioner under AS 38.05.550(d)(1) unless                                      
09                 (1)  the director determines that it is in the best interests of the state to                           
10       sell the materials at fair market value determined by an appraisal provided by the                                
11       department;                                                                                                       
12                 (2)  the applicant, at its own cost, elects to provide an appraisal,                                    
13       acceptable to the department, determining the fair market value of the materials to be                            
14       sold; or                                                                                                          
15                 (3)  the sale is to a state or federal agency or political subdivision under                            
16       AS 38.05.810(a) and the material to be extracted and removed is used for public                                   
17       purposes; sales under this paragraph may be at a price less than appraised value as                               
18       determined by the director.                                                                                       
19            (c)  Subsequent sales of similar materials from the same source or site may be                               
20       made by the department at the price established by an appraisal provided under (b) of                             
21       this section.                                                                                                     
22            (d)  Individual negotiated contracts for the sale of materials authorized by (a)                             
23       of this section are not subject to AS 38.05.035(e) or 38.05.945.                                                  
24            (e)  Materials from a source or site designated under AS 38.05.550(b) may be                                 
25       extracted and removed for personal use without cost up to a limit of two cubic yards a                            
26       person within a one-calendar-year period. Extraction and removal of materials under                               
27       this subsection must be approved by the department before extraction operations.                                  
28            (f)  Notwithstanding (a) - (e) of this section, for the purpose of creating                                  
29       incentives for the development of peat as a source of heat or power, the director may                             
30       negotiate the sale of peat to individuals, organized or unorganized communities, tribal                           
31       governments, or private profit or nonprofit organizations. Under this subsection, the                             
01       director may provide                                                                                              
02                 (1)  for personal use by an individual, not more than 200 cubic yards of                                
03       peat a year at no cost;                                                                                           
04                 (2)  for commercial use, not more than 30,000 cubic yards of peat                                       
05       during a single 10-year period at no cost; or                                                                     
06                 (3)  for commercial use requiring more than 30,000 cubic yards of peat,                                 
07       the amount required by the user during a 10-year period beginning when the user uses                              
08       more than 30,000 yards of peat at the price of                                                                    
09                      (A)  20 percent of the representative regional sales price                                         
10            determined by the director under AS 38.05.550(d)(1); or                                                      
11                      (B)  20 percent of the fair market value determined by an                                          
12            appraisal completed under AS 38.05.550(d)(2), if the applicant provides the                                  
13            appraisal at the applicant's expense and the appraisal is approved by the                                    
14            commissioner.                                                                                                
15            Sec. 38.05.560. Competitive sales of materials. (a) The department shall offer                             
16       materials from a source or site designated under AS 38.05.550(b) for competitive sale                             
17       if the department determines that                                                                                 
18                 (1)  the sale would result in an exclusive use by the purchaser of a                                    
19       designated source or site;                                                                                        
20                 (2)  materials available at a designated source or site are insufficient to                             
21       supply all anticipated buyers;                                                                                    
22                 (3)  the size of the designated source or site is too small to                                          
23       accommodate the extraction operations of all anticipated buyers; or                                               
24                 (4)  it is in the best interests of the state.                                                          
25            (b)  Notice of a competitive sale of materials from a source or site designated                              
26       under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall                                           
27                 (1)  describe the location of the designated source or site, and the type                               
28       and quantity of the materials to be sold;                                                                         
29                 (2)  solicit potential bidders to register with the department to                                       
30       participate in the proposed sale; only persons registered to bid at a proposed sale of                            
31       materials may bid; and                                                                                            
01                 (3)  include the minimum bid for materials to be sold.                                                  
02            (c)  A notice of competitive sale required under (b) of this section may be                                  
03       combined with a notice required under AS 38.05.550.                                                               
04            (d)  If, after notice under (b) of this section, only one potential bidder has                               
05       registered to bid at a proposed competitive sale, the competitive sale may be cancelled                           
06       and the materials sold by negotiation under AS 38.05.555.                                                         
07            (e)  Materials sold under this section may be sold either by sealed bid or by                                
08       public outcry or online auction, in the discretion of the department, to the highest                              
09       qualified bidder as determined by the department. An aggrieved bidder may appeal to                               
10       the commissioner under AS 44.37.011 within five days after the sale for a review of                               
11       the determination. The sale shall be conducted by the director or the director's                                  
12       designee, and, at the time of sale, the successful bidder shall deposit the amount                                
13       specified in the terms of sale. The means by which the amount of deposit is                                       
14       determined shall be prescribed by regulation. The director shall immediately issue a                              
15       receipt containing a description of the materials purchased, the price bid, and the terms                         
16       of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a                         
17       form approved by the attorney general, shall be signed by the purchaser, and the                                  
18       contract shall be signed by the director on behalf of the state. The director may impose                          
19       conditions, limitations, and terms considered necessary and proper to protect the                                 
20       interests of the state.                                                                                           
21            Sec. 38.05.562. Violations. Violation of any provision of AS 38.05.550 -                                   
22       38.05.565 or the terms of the contract of sale subjects the purchaser to appropriate                              
23       legal action.                                                                                                     
24            Sec. 38.05.565. Sale or disposal of materials for special purposes. (a) The                                
25       department may negotiate the sale or otherwise dispose of materials from sources or                               
26       sites other than those designated under AS 38.05.550(b) to                                                        
27                 (1)  municipalities, other state and federal agencies, or other entities                                
28       under AS 38.05.872; sales under this paragraph may be at less than fair market value,                             
29       and materials may be disposed of free of charge if the director determines that the                               
30       disposal is in the public interest;                                                                               
31                 (2)  a licensed public utility or a licensed common carrier under                                       
01       AS 38.05.810(e); sales under this paragraph shall be at representative regional sales                             
02       prices determined under AS 38.05.550(d)(1); or                                                                    
03                 (3)  a holder of a permit, land lease, or right-of-way issued by the                                    
04       department, if the materials to be extracted and removed during the construction, use,                            
05       or maintenance of a facility authorized by a permit, land lease, or right-of-way, are                             
06       necessary and incidental to the primary purpose of the permit, land lease, or right-of-                           
07       way, and the materials are put to beneficial use in a way that alters the character,                              
08       usefulness, or availability of the materials in their native forms; the department may                            
09       authorize the sale of materials under terms of the permit, land lease, or right-of-way;                           
10       sales of materials under this paragraph must be at                                                                
11                      (A)  the representative regional sales price established under                                     
12            AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political                                
13            subdivision, or other entity under AS 38.05.810(a); or                                                       
14                      (B)  a price less than appraised value as determined by the                                        
15            director if the sale is to a state or federal agency, political subdivision, or other                        
16            entity under AS 38.05.810(a) and the materials to be extracted and removed                                   
17            are used for public purposes.                                                                                
18            (b)  If materials are moved within and not removed from the boundaries of a                                  
19       permit, land lease, or right-of-way issued by the department without altering the                                 
20       character, usefulness, or availability of the materials in their native forms, the                                
21       applicant may not be required to purchase the materials.                                                          
22            (c)  In this section, "land lease"                                                                           
23                 (1)  means a lease issued under AS 38.05.070 - 38.05.105;                                             
24                 (2)  does not include a lease issued under AS 38.05.131 - 38.05.275.                                    
25    * Sec. 19. AS 38.05.810(b) is amended to read:                                                                     
26            (b)  Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director,                                   
27       upon application filed by an applicant eligible under (b) - (d) of this section, may, by                          
28       negotiation and without competitive bid [PUBLIC AUCTION] in the manner                                        
29       prescribed in (b) - (d) of this section, lease state land for a term of not more than 55                          
30       years. Before leasing, the director shall prepare a land use plan and a land                                      
31       classification to ensure [INSURE] that the proposed use is compatible with area                               
01       utilization. Before the land may be leased under (b) - (d) of this section, it must be                            
02       shown to the satisfaction of the director that the land is to be used for an established or                       
03       definitely proposed project, and that the eligible applicant has the financial ability to                         
04       carry out the project. The commissioner may establish limitations on the acreage that                         
05       [WHICH] may be leased under (b) - (d) of this section to an applicant.                                            
06    * Sec. 20. AS 38.05.810(e) is amended to read:                                                                     
07            (e)  The lease, sale, or other disposal of state land at appraised fair market                               
08       value may be negotiated with a licensed public utility or a licensed common carrier by                            
09       the director with the approval of the commissioner if the utility or carrier reasonably                           
10       requires the land for the conduct of its business under its license. Notwithstanding                          
11       AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or                           
12       maintenance of property leased, sold, or disposed of under this section may be                                
13       negotiated by the director. A lease with a licensed public utility that is an electric                        
14       utility entered into under this subsection may not include, as part of the rent or other                          
15       fee that is negotiated or charged, an amount that is based on or determined by a                                  
16       percentage of gross revenue for renewable energy produced by the electric utility.                                
17    * Sec. 21. AS 38.05.872 is repealed and reenacted to read:                                                         
18            Sec. 38.05.872. Disposition of state land and resources for flood control                                
19       projects. (a) The department may make conveyances of title or other interests in state                        
20       land, provide for exchange of land, or make other arrangements with respect to state                              
21       land, as necessary to meet federally established requirements of flood control projects                           
22       authorized inside the state by the United States.                                                                 
23            (b)  The commissioner may convey materials at less than fair market value to                                 
24       municipalities, other state and federal agencies, or other entities, and make other                               
25       arrangements for land and materials as mitigation of a flooding area where excess                                 
26       material deposition significantly contributes to the flooding, consistent with a site-                            
27       specific flood mitigation plan approved by the commissioner and determined to be in                               
28       the best interests of the public.                                                                                 
29    * Sec. 22. AS 38.05.945(b) is amended to read:                                                                     
30            (b)  When notice is required to be given under this section,                                                 
31                 (1)  the notice must contain sufficient information in commonly                                         
01       understood terms to inform the public of the nature of the action and the opportunity                             
02       of the public to comment on it;                                                                                   
03                 (2)  if the notice is of a preliminary written finding described in                                     
04       (a)(3)(A) of this section, the department shall give notice at the beginning of the public                        
05       comment period for the preliminary written finding, notifying the public of the right to                          
06       submit comments; the department shall give notice by                                                              
07                      (A)  posting notice on the Alaska Online Public Notice                                         
08            System for at least 30 consecutive days [PUBLICATION OF A LEGAL                                          
09            NOTICE IN NEWSPAPERS OF STATEWIDE CIRCULATION AND IN                                                         
10            NEWSPAPERS OF GENERAL CIRCULATION IN THE VICINITY OF                                                         
11            THE PROPOSED ACTION AT LEAST ONCE A WEEK FOR TWO                                                             
12            CONSECUTIVE WEEKS];                                                                                          
13                      (B)  publication of a notice in display advertising form                                           
14            describing the proposed action and referencing the online notice required                                
15            in (A) of this paragraph in newspapers of statewide circulation and in                                   
16            newspapers of general circulation in the vicinity of the proposed action, if                             
17            available, [IN THE NEWSPAPERS DESCRIBED IN (A) OF THIS                                                   
18            PARAGRAPH] at least 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) [(ii)]  notification of parties known or likely to be                               
29                 affected by the action; or                                                                              
30                           (iv) [(iii)]  another method calculated to reach affected                                 
31                 parties;                                                                                                
01                 (3)  if the notice is of an action described in (a) of this section, other                              
02       than notice of an action under (a)(3)(A) of this section, the department shall give                               
03       notice at least 30 days before the action by posting notice on the Alaska Online                              
04       Public Notice System for at least 30 consecutive days [PUBLICATION IN                                         
05       NEWSPAPERS OF STATEWIDE CIRCULATION AND IN NEWSPAPERS OF                                                          
06       GENERAL CIRCULATION IN THE VICINITY OF THE PROPOSED ACTION]                                                       
07       and by one or more of the following methods:                                                                  
08                      (A)  publication of a notice in display advertising form                                       
09            describing the proposed action and referencing the online notice required                                
10            in this paragraph in newspapers of statewide circulation and in                                          
11            newspapers of general circulation in the vicinity of the proposed action, if                             
12            available, at least once a week for two consecutive weeks;                                               
13                      (B)  publication through public service announcements on the                                   
14            electronic media serving the area affected by the action;                                                    
15                      (C) [(B)]  posting in a conspicuous location in the vicinity of                                
16            the action;                                                                                                  
17                      (D) [(C)]  notification of parties known or likely to be affected                              
18            by the action;                                                                                               
19                      (E)  publication of a legal notice, at least 30 days before the                                
20            action, briefly describing the proposed action and referencing the online                                
21            notice required in this paragraph in newspapers of statewide circulation                                 
22            and in newspapers of general circulation in the vicinity of the proposed                                 
23            action, if available; or                                                                                 
24                      (F) [(D)]  another method calculated to reach affected persons.                                
25    * Sec. 23. AS 38.05.945(b), as amended by sec. 22 of this Act, is amended to read:                                 
26            (b)  When notice is required to be given under this section,                                                 
27                 (1)  the notice must contain sufficient information in commonly                                         
28       understood terms to inform the public of the nature of the action and the opportunity                             
29       of the public to comment on it;                                                                                   
30                 (2)  if the notice is of a preliminary written finding described in                                     
31       (a)(3)(A) of this section, the department shall give notice at the beginning of the public                        
01       comment period for the preliminary written finding, notifying the public of the right to                          
02       submit comments; the department shall give notice by                                                              
03                      (A)  posting notice on the Alaska Online Public Notice System                                      
04            for at least 30 consecutive days;                                                                            
05                      (B)  publication of a notice in display advertising form                                           
06            describing the proposed action and referencing the online notice required in                                 
07            (A) of this paragraph in newspapers of statewide circulation and in newspapers                               
08            of general circulation in the vicinity of the proposed action, if available, at least                        
09            once a week for two consecutive weeks;                                                                       
10                      (C)  public service announcements on the electronic media                                          
11            serving the area to be affected by the proposed action; and                                                  
12                      (D)  one or more of the following methods:                                                         
13                           (i)  publication of a legal notice in newspapers of                                           
14                 statewide circulation or in newspapers of general circulation in the                                    
15                 vicinity of the proposed action, if available, at least once a week for                                 
16                 two consecutive weeks;                                                                                  
17                           (ii)  posting in a conspicuous location in the vicinity of                                    
18                 the action;                                                                                             
19                           (iii)  notification of parties known or likely to be                                          
20                 affected by the action; or                                                                              
21                           (iv)  another method calculated to reach affected parties;                                    
22                 (3)  if the notice is of an action described in (a) of this section, other                              
23       than notice of an action under (a)(3)(A) of this section, the department shall give                               
24       notice at least 30 days before the action by posting notice on the Alaska Online Public                           
25       Notice System for at least 30 consecutive days and by one or more of the following                                
26       methods:                                                                                                          
27                      (A)  publication of a notice in display advertising form                                           
28            describing the proposed action and referencing the online notice required in                                 
29            this paragraph in newspapers of statewide circulation and in newspapers of                                   
30            general circulation in the vicinity of the proposed action, if available, at least                           
31            once a week for two consecutive weeks;                                                                       
01                      (B)  publication through public service announcements on the                                       
02            electronic media serving the area affected by the action;                                                    
03                      (C)  posting in a conspicuous location in the vicinity of the                                      
04            action;                                                                                                      
05                      (D)  notification of parties known or likely to be affected by the                                 
06            action; or                                                                                               
07                      (E)  [PUBLICATION OF A LEGAL NOTICE, AT LEAST 30                                                   
08            DAYS BEFORE THE ACTION, BRIEFLY DESCRIBING THE PROPOSED                                                      
09            ACTION AND REFERENCING THE ONLINE NOTICE REQUIRED IN                                                         
10            THIS PARAGRAPH IN NEWSPAPERS OF STATEWIDE CIRCULATION                                                        
11            AND IN NEWSPAPERS OF GENERAL CIRCULATION IN THE                                                              
12            VICINITY OF THE PROPOSED ACTION, IF AVAILABLE; OR                                                            
13                      (F)]  another method calculated to reach affected persons.                                         
14    * Sec. 24. AS 38.05.965(10) is repealed and reenacted to read:                                                     
15                 (10)  "materials"                                                                                       
16                      (A)  means all common variety rock and minerals of any                                             
17            quality, that are saleable and not subject to location under state or federal                                
18            mining laws;                                                                                                 
19                      (B)  includes aggregate, riprap, railroad ballast, road ballast,                                   
20            road metal, peat, silt, loam, sand, gravel, stone, pumice, and common clay;                                  
21    * Sec. 25. AS 41.23.470(b) is amended to read:                                                                     
22            (b)  The commissioner may conduct only a negotiated timber [OR                                               
23       MATERIAL] sale under AS 38.05.115 to provide for personal use, including house                                    
24       logs and firewood, or for a use incidental to the construction of access, or for habitat                          
25       enhancement.                                                                                                      
26    * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to                         
27 read:                                                                                                                   
28       REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change                                            
29            (1)  the heading of art. 4 of AS 38.05 from "Disposal of Timber and Materials"                               
30 to "Disposal of Timber";                                                                                                
31            (2)  the catch line of AS 38.05.110 from "Sale of timber and materials;                                      
01 account" to "Sale of timber."                                                                                           
02    * Sec. 27. Section 23 of this Act takes effect July 1, 2017.                                                       
03    * Sec. 28. Except as provided in sec. 27 of this Act, this Act takes effect July 1, 2012.