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Enrolled HB 361: Relating to the Alaska Land Act, including certain leases, sales, and other disposals of state land and materials; relating to production royalties from miners; providing for the conveyance of certain land to the City and Borough of Juneau for the construction of the Auke Bay commercial loading facility; and providing for an effective date.

00 Enrolled HB 361                                                                                                         
01 Relating to the Alaska Land Act, including certain leases, sales, and other disposals of state                          
02 land and materials; relating to production royalties from miners; providing for the conveyance                          
03 of certain land to the City and Borough of Juneau for the construction of the Auke Bay                                  
04 commercial loading facility; and providing for an effective date.                                                       
05                           _______________                                                                               
06    * Section 1. AS 38.05.050 is amended to read:                                                                      
07            Sec. 38.05.050. Disposal of land for private ownership. The commissioner                                   
08       shall determine the land to be disposed of for private use. The commissioner shall                                
09       determine the time and place of disposal. A public [AN] auction sale, a sale by sealed                  
10       bid, a lottery sale, or a disposal of land for homesites may be held in a community that                      
11       is near the land to be sold or disposed of.                                                                       
12    * Sec. 2. AS 38.05.055 is amended to read:                                                                         
01            Sec. 38.05.055. Auction sale or sealed bid procedures. Unless another                                    
02       method of sale is required under this chapter, AS 38.08, or AS 38.09, the sale of state                           
03       land shall be made at public auction or by sealed bid, at the discretion of the                               
04       director, to the highest qualified bidder as determined by the director. The director                         
05       may accept bids and sell state land under this section at not [NO] less than 70 percent                       
06       of the appraised fair market value of the land. To qualify to participate under this                              
07       section in a public auction or sale by sealed bid of state land that is other than                            
08       commercial, industrial, or agricultural land, a bidder shall have been a resident of the                          
09       state for at least one year immediately preceding the date of the sale [AUCTION] and                          
10       submit proof of that fact, as the commissioner requires by regulation. A bidder may be                            
11       represented by an attorney or agent at a public [THE] auction. An aggrieved bidder                            
12       may appeal to the commissioner within five days after the sale for a review of the                                
13       director's determination. The sale shall be conducted by the director, and, at the time                           
14       of sale, the successful bidder shall deposit an amount equal to five percent of the                               
15       purchase price. The director shall immediately issue a receipt containing a description                           
16       of the land or property purchased, the price bid, and the amount deposited. The receipt                           
17       shall be acknowledged in writing by the bidder.                                                                   
18    * Sec. 3. AS 38.05.065(a) is amended to read:                                                                      
19            (a)  The contract of sale for land sold at public auction or by sealed bid under                         
20       AS 38.05.055 shall require the remainder of the purchase price to be paid in monthly,                             
21       quarterly, or annual installments over a period of not more than 20 years, with interest                          
22       at the rate provided in (i) of this section. Installment payments plus interest shall be set                      
23       on the level-payment basis.                                                                                       
24    * Sec. 4. AS 38.05.069(a) is amended to read:                                                                      
25            (a)  After consulting with the Board of Agriculture and Conservation                                         
26       (AS 03.09.010), on a determination that the highest and best use of unoccupied land is                            
27       for agricultural purposes and that it is in the best interests of the state to sell or lease                      
28       the land, the commissioner shall grant to an Alaska resident owning and using or                                  
29       leasing and using land for agricultural purposes a first option [AT THE AUCTION] to                               
30       purchase or lease the unoccupied land situated adjacent to land presently held by the                             
31       Alaska resident for the amount of the high bid received at public auction or by sealed                        
01       bid. If more than one Alaska resident qualifies for a first option under this section,                        
02       eligibility for the first option shall be determined by lot, and the option must be                           
03       exercised on the conclusion of the public auction or opening of sealed bids. A parcel                         
04       of agricultural land sold under this section may not be less than 20 acres, and a parcel                          
05       of agricultural land that is acquired by exercise of the option granted in this subsection                        
06       may not exceed 320 acres. Agricultural land that is acquired under this section must be                           
07       used for agricultural purposes as required by law.                                                                
08    * Sec. 5. AS 38.05.069(c) is amended to read:                                                                      
09            (c)  Under this section,                                                                                     
10                 (1)  the director may transfer state land classified for agriculture only                               
11       for agricultural purposes;                                                                                        
12                 (2)  the sale or lease shall be at public auction or by sealed bid.                                 
13    * Sec. 6. AS 38.05.070(b) is amended to read:                                                                      
14            (b)  The director, with the approval of the commissioner, shall determine the                                
15       land to be leased and the limitations, conditions, and terms of the lease. The director                           
16       shall preserve reasonable and traditional access to state land and water. If the                                  
17       appraised value of the transaction is $10,000 [$5,000] a year or less, the director may                   
18       negotiate a lease for a period not to exceed 10 years, and on the limitations,                                    
19       conditions, and terms that the director considers are in the best interests of the state. A                       
20       lease negotiated under this subsection is not eligible for a preference under                                     
21       AS 38.05.102.                                                                                                     
22    * Sec. 7. AS 38.05.070 is amended by adding new subsections to read:                                               
23            (d)  If, after notice under AS 38.05.945 soliciting interest for a competitive                               
24       auction, the department determines that only one potential bidder has expressed                                   
25       interest in bidding, the director may cancel the competitive auction and negotiate a                              
26       lease and its conditions and terms that the director determines to be in the best                                 
27       interests of the state.                                                                                           
28            (e)  The director may renew a lease issued under this section, AS 38.05.075, or                              
29       38.05.810 upon its expiration if the lease is in good standing and the lease renewal is                           
30       determined to be in the best interests of the state. A renewal issued under this                                  
31       subsection is not subject to AS 38.05.035(e). A lease may be renewed only once for a                              
01       term not longer than the initial term of the lease. The director shall provide notice of                          
02       the lease renewal decision.                                                                                       
03    * Sec. 8. AS 38.05.073(g) is amended to read:                                                                      
04            (g)  After soliciting proposals under (e) of this section, if the commissioner                               
05       determines that two or more potential lessees are acceptable, the commissioner may                                
06       select the potential lessee who submits the highest bid during a public [AN] auction or                       
07       by sealed bids, whichever method the commissioner chooses. The minimum bid must                                   
08       equal the amount established by the commissioner plus the administrative fee                                      
09       established under (k) of this section. The commissioner shall also require the potential                          
10       lessee to make an earnest money deposit under AS 38.05.860(b). After the                                          
11       commissioner selects a potential lessee, the commissioner may begin negotiations with                             
12       the potential lessee to develop the terms and conditions for the lease.                                           
13    * Sec. 9. AS 38.05.075(a) is amended to read:                                                                      
14            (a)  Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.082,                                    
15       38.05.083, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 38.05.810, and this section,                           
16       when competitive interest has been demonstrated or the commissioner                                           
17       determines that it is in the state's best interests, leasing shall be made at public                          
18       auction or by sealed bid, at the discretion of the director, to the highest qualified                         
19       bidder as determined by the commissioner. A bidder may be represented by an                                   
20       attorney or agent at a public auction. In the public notice of a lease to be offered at                       
21       public auction or by sealed bid, the commissioner shall specify a minimum                                     
22       acceptable bid and the lease compensation method. The lease compensation method                                   
23       shall be designed to maximize the return on the lease to the state and shall be a form of                         
24       compensation set out in AS 38.05.073(m). An aggrieved bidder may appeal to the                                    
25       commissioner within five days for a review of the determination. The leasing shall be                             
26       conducted by the commissioner, and the successful bidder shall deposit at the public                      
27       auction or with the sealed bid the first year's rental or other lease compensation as                         
28       specified by the commissioner, or that portion of it that the commissioner requires in                            
29       accordance with the bid. The commissioner shall require, under AS 38.05.860,                                      
30       qualified bidders to deposit a sum equal to any survey or appraisal costs reasonably                              
31       incurred by another qualified bidder acting in accordance with the regulations of the                             
01       commissioner or incurred by the department under AS 38.04.045 and AS 38.05.840. If                                
02       a bidder making a deposit of survey or appraisal costs is determined by the                                       
03       commissioner to be the highest qualified bidder under this subsection, the deposit shall                          
04       be paid to the unsuccessful bidder who incurred those costs or to the department if the                           
05       department incurred the costs. All costs for survey and appraisal shall be approved in                            
06       advance in writing by the commissioner. The commissioner shall immediately issue a                                
07       receipt containing a description of the land or interest leased, the price bid, and the                           
08       terms of the lease to the successful qualified bidder. If the receipt is not accepted in                          
09       writing by the bidder under this subsection, the commissioner may offer the land for                              
10       lease again under this subsection. A lease, on a form approved by the attorney general,                           
11       shall be signed by the successful bidder and by the commissioner [WITHIN THE                                      
12       PERIOD SPECIFIED IN THE AUCTION NOTICE].                                                                          
13    * Sec. 10. AS 38.05.075(e) is amended to read:                                                                     
14            (e)  The commissioner may require prequalification of bidders for a lease to be                              
15       issued under AS 38.05.070. If the commissioner determines to require                                              
16       prequalification, the procedures established by this section and the notice including                             
17       prequalification [PRE-QUALIFICATION] requirements required to be given under                                  
18       AS 38.05.945 shall be completed within 75 days of the receipt of the first lease                                  
19       application unless the commissioner grants additional time for the completion of the                              
20       procedures. Within the 75-day period or the additional time granted by the                                        
21       commissioner, the commissioner shall complete                                                                     
22                 (1)  classification under AS 38.05.300;                                                                 
23                 (2)  the procedures required by AS 38.05.035(e);                                                        
24                 (3)  any other action required by law for the disposal of the lease to a                                
25       bidder except survey, appraisal, and the auction or sealed bid.                                               
26    * Sec. 11. AS 38.05.075(g) is amended to read:                                                                     
27            (g)  Notice of an auction or sealed bid required under this section shall be                             
28       made by certified mail to all prequalified bidders.                                                               
29    * Sec. 12. AS 38.05.083(a) is amended to read:                                                                     
30            (a)  The commissioner may offer to the public for lease at public auction or by                          
31       sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for                                 
01       aquatic farming or related hatchery operations. Before a final decision to issue or                               
02       renew a lease under this section, the commissioner shall give notice and allow                                    
03       opportunity for comment in accordance with AS 38.05.945 and may hold a hearing to                                 
04       take testimony. Before a final decision to issue or renew a lease under this section, the                         
05       commissioner shall consider all relevant comment or testimony submitted under this                                
06       section, AS 38.05.945, or 38.05.946.                                                                              
07    * Sec. 13. AS 38.05.110(a) is amended to read:                                                                     
08            (a)  The commissioner shall provide for cruises of timber on [AND                                        
09       APPRAISALS OF OTHER MATERIALS IN OR UPON] state land and shall assess                                             
10       the supply of and current markets for timber on [AND OTHER MATERIALS IN]                                          
11       privately owned land in close proximity to state land to determine                                                
12                 (1)  the timber [AND OTHER MATERIALS] that should be offered for                                        
13       sale; and                                                                                                         
14                 (2)  the terms of sale of the timber [OR OTHER MATERIALS].                                              
15    * Sec. 14. AS 38.05.115 is amended to read:                                                                        
16            Sec. 38.05.115. Limitations and conditions of sale. (a) The commissioner                                   
17       shall determine the timber [AND OTHER MATERIALS] to be sold [,] and the                                           
18       limitations, conditions, and terms of sale. The limitations, conditions, and terms shall                          
19       include the utilization, development, and maintenance of the sustained yield principle,                           
20       subject to preference among other beneficial uses. The commissioner may negotiate                                 
21       sales of timber [OR MATERIALS] without advertisement and on the limitations,                                      
22       conditions, and terms that are considered to be in the best interests of the state. Within                        
23       a one-year period, the commissioner may not negotiate a sale without advertisement to                             
24       the same purchaser of                                                                                             
25                 [(1)]  more than 500 M.B.M. or equivalent other measure of timber [;                                    
26                 (2)  EXCEPT AS PROVIDED IN (3) OF THIS SUBSECTION,                                                      
27       MORE THAN 25,000 CUBIC YARDS OF MATERIALS; OR                                                                     
28                 (3)  MORE THAN 100,000 CUBIC YARDS OF MATERIALS TO A                                                    
29       COMMON CARRIER HOLDING A LEASE UNDER AS 38.35].                                                                   
30            (b)  Negotiated sales not exceeding 50 M.B.M. or the equivalent other measure                                
31       of timber [OR 2,500 CUBIC YARDS OF MATERIALS] are exempt from the                                                 
01       provisions of AS 34.15.150.                                                                                       
02            (c)  The limitations of this section are not applicable to timber that [WHICH]                           
03       becomes state property under the provisions of AS 45.50.210 - 45.50.235.                                          
04    * Sec. 15. AS 38.05.120 is amended to read:                                                                        
05            Sec. 38.05.120. Disposal procedure. Timber [AND OTHER MATERIALS]                                           
06       shall be sold either by sealed bids or public auction, depending on which method is                               
07       determined by the commissioner to be in the best interests of the state, to the highest                           
08       qualified bidder as determined by the commissioner. An aggrieved bidder may appeal                                
09       to the commissioner within five days after the sale for a review of the determination.                            
10       The sale shall be conducted by the commissioner, and, at the time of sale, the                            
11       successful bidder shall deposit the amount specified in the terms of sale. The means by                           
12       which the amount of deposit is determined shall be prescribed by appropriate                                      
13       regulation. The commissioner shall immediately issue a receipt containing a                                       
14       description of the timber [OR MATERIALS] purchased, the price bid, and the terms                                  
15       of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a                         
16       form approved by the attorney general, shall be signed by the purchaser, and the                              
17       contract shall be signed by the commissioner on behalf of the state. The commissioner                             
18       may impose conditions, limitations, and terms considered necessary and proper to                                  
19       protect the interests of the state. Violation of any provision of this chapter or the terms                       
20       of the contract of sale subjects the purchaser to appropriate legal action.                                       
21    * Sec. 16. AS 38.05.212(a) is amended to read:                                                                     
22            (a)  In exchange for and to preserve the right to extract and possess the                                    
23       minerals produced, the holder of a mining claim, leasehold location, or mining lease,                             
24       including a mining lease under AS 38.05.250, shall pay a royalty on all minerals                                  
25       produced from land subject to the claim, leasehold location, or mining lease during                               
26       each calendar year, or each fiscal year if the miner does not file the mining license                         
27       tax on a calendar year basis.                                                                               
28    * Sec. 17. AS 38.05.250(c) is amended to read:                                                                     
29            (c)  Each submerged land mining lease shall be for a period of up to 20 years                                
30       and for so long as there is production in paying quantities from the leased area. A                           
31       submerged land mining lease may be renewed for a period of up to 20 years at                                  
01       the discretion of the director if the director determines that the renewal is in the                          
02       best interests of the state.                                                                                  
03    * Sec. 18. AS 38.05 is amended by adding new sections to read:                                                     
04                        Article 13A. Material Sales.                                                                   
05            Sec. 38.05.550. Disposal of materials. (a) All materials owned by the state                                
06       may be sold or conveyed as provided in AS 38.05.550 - 38.05.565.                                                  
07            (b)  Materials may only be sold or removed from sources or sites designated by                               
08       the department. The department shall issue a decision under AS 38.05.035(e) that the                              
09       sale and extraction of materials from that location is in the best interests of the state at                      
10       the time each source or site is designated. The department shall give notice, in                                  
11       accordance with AS 38.05.945, of the department's decision to designate a source or                               
12       site for the sale and extraction of materials. After decision and notice, the department                          
13       may sell materials continuously, without further finding or notice, from that                                     
14       designated source or site under this section until the source or site is closed by the                            
15       department.                                                                                                       
16            (c)  Each sale of materials must be made through a materials sales contract on a                             
17       form that has been approved by the attorney general. At the time of each sale, the                                
18       department shall determine                                                                                        
19                 (1)  the location of the source or site from which materials are to be                                  
20       removed;                                                                                                          
21                 (2)  the method of disposal as provided in AS 38.05.555 - 38.05.565;                                    
22       and                                                                                                               
23                 (3)  the limitations, conditions, and terms of sale, which shall address                                
24       the utilization, development, and maintenance of the source of the materials.                                     
25            (d)  The commissioner shall provide for valuation of materials in or upon state                              
26       land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the                                       
27       director's discretion, be sold at                                                                                 
28                 (1)  representative regional sales prices periodically determined by the                                
29       commissioner for each type of material and for defined geographic regions, under                                  
30       procedures established by regulation; public notice under AS 38.05.945 must be made                               
31       whenever the commissioner revises the representative regional sales prices;                                       
01                 (2)  fair market value determined by appraisal completed and approved                                   
02       within two years of the date of sale; or                                                                          
03                 (3)  a price less than appraised value, determined under                                                
04       AS 38.05.810(a).                                                                                                  
05            Sec. 38.05.555. Negotiated sales and personal use of materials. (a)                                        
06       Notwithstanding any other provision of AS 38.05.550 - 38.05.565, the director may                                 
07       negotiate the sale of any amount of materials from a source or site designated under                              
08       AS 38.05.550(b). The period of a contract for a sale of materials negotiated under this                           
09       section may not exceed five years.                                                                                
10            (b)  Sales of materials under this section must be made at a representative                                  
11       regional sales price set by the commissioner under AS 38.05.550(d)(1) unless                                      
12                 (1)  the director determines that it is in the best interests of the state to                           
13       sell the materials at fair market value determined by an appraisal provided by the                                
14       department;                                                                                                       
15                 (2)  the applicant, at its own cost, elects to provide an appraisal,                                    
16       acceptable to the department, determining the fair market value of the materials to be                            
17       sold; or                                                                                                          
18                 (3)  the sale is to a state or federal agency or political subdivision under                            
19       AS 38.05.810(a) and the material to be extracted and removed is used for public                                   
20       purposes; sales under this paragraph may be at a price less than appraised value as                               
21       determined by the director.                                                                                       
22            (c)  Subsequent sales of similar materials from the same source or site may be                               
23       made by the department at the price established by an appraisal provided under (b) of                             
24       this section.                                                                                                     
25            (d)  Individual negotiated contracts for the sale of materials authorized by (a)                             
26       of this section are not subject to AS 38.05.035(e) or 38.05.945.                                                  
27            (e)  Materials from a source or site designated under AS 38.05.550(b) may be                                 
28       extracted and removed for personal use without cost up to a limit of two cubic yards a                            
29       person within a one-calendar-year period. Extraction and removal of materials under                               
30       this subsection must be approved by the department before extraction operations.                                  
31            (f)  Notwithstanding (a) - (e) of this section, for the purpose of creating                                  
01       incentives for the development of peat as a source of heat or power, the director may                             
02       negotiate the sale of peat to individuals, organized or unorganized communities, tribal                           
03       governments, or private profit or nonprofit organizations. Under this subsection, the                             
04       director may provide                                                                                              
05                 (1)  for personal use by an individual, not more than 200 cubic yards of                                
06       peat a year at no cost;                                                                                           
07                 (2)  for commercial use, not more than 30,000 cubic yards of peat                                       
08       during a single 10-year period at no cost; or                                                                     
09                 (3)  for commercial use requiring more than 30,000 cubic yards of peat,                                 
10       the amount required by the user during a 10-year period beginning when the user uses                              
11       more than 30,000 yards of peat at the price of                                                                    
12                      (A)  20 percent of the representative regional sales price                                         
13            determined by the director under AS 38.05.550(d)(1); or                                                      
14                      (B)  20 percent of the fair market value determined by an                                          
15            appraisal completed under AS 38.05.550(d)(2), if the applicant provides the                                  
16            appraisal at the applicant's expense and the appraisal is approved by the                                    
17            commissioner.                                                                                                
18            Sec. 38.05.560. Competitive sales of materials. (a) The department shall offer                             
19       materials from a source or site designated under AS 38.05.550(b) for competitive sale                             
20       if the department determines that                                                                                 
21                 (1)  the sale would result in an exclusive use by the purchaser of a                                    
22       designated source or site;                                                                                        
23                 (2)  materials available at a designated source or site are insufficient to                             
24       supply all anticipated buyers;                                                                                    
25                 (3)  the size of the designated source or site is too small to                                          
26       accommodate the extraction operations of all anticipated buyers; or                                               
27                 (4)  it is in the best interests of the state.                                                          
28            (b)  Notice of a competitive sale of materials from a source or site designated                              
29       under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall                                           
30                 (1)  describe the location of the designated source or site, and the type                               
31       and quantity of the materials to be sold;                                                                         
01                 (2)  solicit potential bidders to register with the department to                                       
02       participate in the proposed sale; only persons registered to bid at a proposed sale of                            
03       materials may bid; and                                                                                            
04                 (3)  include the minimum bid for materials to be sold.                                                  
05            (c)  A notice of competitive sale required under (b) of this section may be                                  
06       combined with a notice required under AS 38.05.550.                                                               
07            (d)  If, after notice under (b) of this section, only one potential bidder has                               
08       registered to bid at a proposed competitive sale, the competitive sale may be cancelled                           
09       and the materials sold by negotiation under AS 38.05.555.                                                         
10            (e)  Materials sold under this section may be sold either by sealed bid or by                                
11       public outcry or online auction, in the discretion of the department, to the highest                              
12       qualified bidder as determined by the department. An aggrieved bidder may appeal to                               
13       the commissioner under AS 44.37.011 within five days after the sale for a review of                               
14       the determination. The sale shall be conducted by the director or the director's                                  
15       designee, and, at the time of sale, the successful bidder shall deposit the amount                                
16       specified in the terms of sale. The means by which the amount of deposit is                                       
17       determined shall be prescribed by regulation. The director shall immediately issue a                              
18       receipt containing a description of the materials purchased, the price bid, and the terms                         
19       of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a                         
20       form approved by the attorney general, shall be signed by the purchaser, and the                                  
21       contract shall be signed by the director on behalf of the state. The director may impose                          
22       conditions, limitations, and terms considered necessary and proper to protect the                                 
23       interests of the state.                                                                                           
24            Sec. 38.05.562. Violations. Violation of any provision of AS 38.05.550 -                                   
25       38.05.565 or the terms of the contract of sale subjects the purchaser to appropriate                              
26       legal action.                                                                                                     
27            Sec. 38.05.565. Sale or disposal of materials for special purposes. (a) The                                
28       department may negotiate the sale or otherwise dispose of materials from sources or                               
29       sites other than those designated under AS 38.05.550(b) to                                                        
30                 (1)  municipalities, other state and federal agencies, or other entities                                
31       under AS 38.05.872; sales under this paragraph may be at less than fair market value,                             
01       and materials may be disposed of free of charge if the director determines that the                               
02       disposal is in the public interest;                                                                               
03                 (2)  a licensed public utility or a licensed common carrier under                                       
04       AS 38.05.810(e); sales under this paragraph shall be at representative regional sales                             
05       prices determined under AS 38.05.550(d)(1); or                                                                    
06                 (3)  a holder of a permit, land lease, or right-of-way issued by the                                    
07       department, if the materials to be extracted and removed during the construction, use,                            
08       or maintenance of a facility authorized by a permit, land lease, or right-of-way, are                             
09       necessary and incidental to the primary purpose of the permit, land lease, or right-of-                           
10       way, and the materials are put to beneficial use in a way that alters the character,                              
11       usefulness, or availability of the materials in their native forms; the department may                            
12       authorize the sale of materials under terms of the permit, land lease, or right-of-way;                           
13       sales of materials under this paragraph must be at                                                                
14                      (A)  the representative regional sales price established under                                     
15            AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political                                
16            subdivision, or other entity under AS 38.05.810(a); or                                                       
17                      (B)  a price less than appraised value as determined by the                                        
18            director if the sale is to a state or federal agency, political subdivision, or other                        
19            entity under AS 38.05.810(a) and the materials to be extracted and removed                                   
20            are used for public purposes.                                                                                
21            (b)  If materials are moved within and not removed from the boundaries of a                                  
22       permit, land lease, or right-of-way issued by the department without altering the                                 
23       character, usefulness, or availability of the materials in their native forms, the                                
24       applicant may not be required to purchase the materials.                                                          
25            (c)  In this section, "land lease"                                                                           
26                 (1)  means a lease issued under AS 38.05.070 - 38.05.105;                                             
27                 (2)  does not include a lease issued under AS 38.05.131 - 38.05.275.                                    
28    * Sec. 19. AS 38.05.810(b) is amended to read:                                                                     
29            (b)  Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director,                                   
30       upon application filed by an applicant eligible under (b) - (d) of this section, may, by                          
31       negotiation and without competitive bid [PUBLIC AUCTION] in the manner                                        
01       prescribed in (b) - (d) of this section, lease state land for a term of not more than 55                          
02       years. Before leasing, the director shall prepare a land use plan and a land                                      
03       classification to ensure [INSURE] that the proposed use is compatible with area                               
04       utilization. Before the land may be leased under (b) - (d) of this section, it must be                            
05       shown to the satisfaction of the director that the land is to be used for an established or                       
06       definitely proposed project, and that the eligible applicant has the financial ability to                         
07       carry out the project. The commissioner may establish limitations on the acreage that                         
08       [WHICH] may be leased under (b) - (d) of this section to an applicant.                                            
09    * Sec. 20. AS 38.05.810(e) is amended to read:                                                                     
10            (e)  The lease, sale, or other disposal of state land at appraised fair market                               
11       value may be negotiated with a licensed public utility or a licensed common carrier by                            
12       the director with the approval of the commissioner if the utility or carrier reasonably                           
13       requires the land for the conduct of its business under its license. Notwithstanding                          
14       AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or                           
15       maintenance of property leased, sold, or disposed of under this section may be                                
16       negotiated by the director. A lease with a licensed public utility that is an electric                        
17       utility entered into under this subsection may not include, as part of the rent or other                          
18       fee that is negotiated or charged, an amount that is based on or determined by a                                  
19       percentage of gross revenue for renewable energy produced by the electric utility.                                
20    * Sec. 21. AS 38.05.872 is repealed and reenacted to read:                                                         
21            Sec. 38.05.872. Disposition of state land and resources for flood control                                
22       projects. (a) The department may make conveyances of title or other interests in state                        
23       land, provide for exchange of land, or make other arrangements with respect to state                              
24       land, as necessary to meet federally established requirements of flood control projects                           
25       authorized inside the state by the United States.                                                                 
26            (b)  The commissioner may convey materials at less than fair market value to                                 
27       municipalities, other state and federal agencies, or other entities, and make other                               
28       arrangements for land and materials as mitigation of a flooding area where excess                                 
29       material deposition significantly contributes to the flooding, consistent with a site-                            
30       specific flood mitigation plan approved by the commissioner and determined to be in                               
31       the best interests of the public.                                                                                 
01    * Sec. 22. AS 38.05.945(b) is amended to read:                                                                     
02            (b)  When notice is required to be given under this section,                                                 
03                 (1)  the notice must contain sufficient information in commonly                                         
04       understood terms to inform the public of the nature of the action and the opportunity                             
05       of the public to comment on it;                                                                                   
06                 (2)  if the notice is of a preliminary written finding described in                                     
07       (a)(3)(A) of this section, the department shall give notice at the beginning of the public                        
08       comment period for the preliminary written finding, notifying the public of the right to                          
09       submit comments; the department shall give notice by                                                              
10                      (A)  posting notice on the Alaska Online Public Notice                                         
11            System for at least 30 consecutive days [PUBLICATION OF A LEGAL                                          
12            NOTICE IN NEWSPAPERS OF STATEWIDE CIRCULATION AND IN                                                         
13            NEWSPAPERS OF GENERAL CIRCULATION IN THE VICINITY OF                                                         
14            THE PROPOSED ACTION AT LEAST ONCE A WEEK FOR TWO                                                             
15            CONSECUTIVE WEEKS];                                                                                          
16                      (B)  publication of a notice in display advertising form                                           
17            describing the proposed action and referencing the online notice required                                
18            in (A) of this paragraph in newspapers of statewide circulation and in                                   
19            newspapers of general circulation in the vicinity of the proposed action, if                             
20            available, [IN THE NEWSPAPERS DESCRIBED IN (A) OF THIS                                                   
21            PARAGRAPH] at least once a week for two consecutive weeks;                                                   
22                      (C)  public service announcements on the electronic media                                          
23            serving the area to be affected by the proposed action; and                                                  
24                      (D)  one or more of the following methods:                                                         
25                           (i)  publication of a legal notice in newspapers of                                       
26                 statewide circulation or in newspapers of general circulation in the                                
27                 vicinity of the proposed action, if available, at least once a week for                             
28                 two consecutive weeks;                                                                              
29                           (ii)  posting in a conspicuous location in the vicinity of                                
30                 the action;                                                                                             
31                           (iii) [(ii)]  notification of parties known or likely to be                               
01                 affected by the action; or                                                                              
02                           (iv) [(iii)]  another method calculated to reach affected                                 
03                 parties;                                                                                                
04                 (3)  if the notice is of an action described in (a) of this section, other                              
05       than notice of an action under (a)(3)(A) of this section, the department shall give                               
06       notice at least 30 days before the action by posting notice on the Alaska Online                              
07       Public Notice System for at least 30 consecutive days [PUBLICATION IN                                         
08       NEWSPAPERS OF STATEWIDE CIRCULATION AND IN NEWSPAPERS OF                                                          
09       GENERAL CIRCULATION IN THE VICINITY OF THE PROPOSED ACTION]                                                       
10       and by one or more of the following methods:                                                                  
11                      (A)  publication of a notice in display advertising form                                       
12            describing the proposed action and referencing the online notice required                                
13            in this paragraph in newspapers of statewide circulation and in                                          
14            newspapers of general circulation in the vicinity of the proposed action, if                             
15            available, at least once a week for two consecutive weeks;                                               
16                      (B)  publication through public service announcements on the                                   
17            electronic media serving the area affected by the action;                                                    
18                      (C) [(B)]  posting in a conspicuous location in the vicinity of                                
19            the action;                                                                                                  
20                      (D) [(C)]  notification of parties known or likely to be affected                              
21            by the action;                                                                                               
22                      (E)  publication of a legal notice, at least 30 days before the                                
23            action, briefly describing the proposed action and referencing the online                                
24            notice required in this paragraph in newspapers of statewide circulation                                 
25            and in newspapers of general circulation in the vicinity of the proposed                                 
26            action, if available; or                                                                                 
27                      (F) [(D)]  another method calculated to reach affected persons.                                
28    * Sec. 23. AS 38.05.945(b), as amended by sec. 22 of this Act, is amended to read:                                 
29            (b)  When notice is required to be given under this section,                                                 
30                 (1)  the notice must contain sufficient information in commonly                                         
31       understood terms to inform the public of the nature of the action and the opportunity                             
01       of the public to comment on it;                                                                                   
02                 (2)  if the notice is of a preliminary written finding described in                                     
03       (a)(3)(A) of this section, the department shall give notice at the beginning of the public                        
04       comment period for the preliminary written finding, notifying the public of the right to                          
05       submit comments; the department shall give notice by                                                              
06                      (A)  posting notice on the Alaska Online Public Notice System                                      
07            for at least 30 consecutive days;                                                                            
08                      (B)  publication of a notice in display advertising form                                           
09            describing the proposed action and referencing the online notice required in                                 
10            (A) of this paragraph in newspapers of statewide circulation and in newspapers                               
11            of general circulation in the vicinity of the proposed action, if available, at least                        
12            once a week for two consecutive weeks;                                                                       
13                      (C)  public service announcements on the electronic media                                          
14            serving the area to be affected by the proposed action; and                                                  
15                      (D)  one or more of the following methods:                                                         
16                           (i)  publication of a legal notice in newspapers of                                           
17                 statewide circulation or in newspapers of general circulation in the                                    
18                 vicinity of the proposed action, if available, at least once a week for                                 
19                 two consecutive weeks;                                                                                  
20                           (ii)  posting in a conspicuous location in the vicinity of                                    
21                 the action;                                                                                             
22                           (iii)  notification of parties known or likely to be                                          
23                 affected by the action; or                                                                              
24                           (iv)  another method calculated to reach affected parties;                                    
25                 (3)  if the notice is of an action described in (a) of this section, other                              
26       than notice of an action under (a)(3)(A) of this section, the department shall give                               
27       notice at least 30 days before the action by posting notice on the Alaska Online Public                           
28       Notice System for at least 30 consecutive days and by one or more of the following                                
29       methods:                                                                                                          
30                      (A)  publication of a notice in display advertising form                                           
31            describing the proposed action and referencing the online notice required in                                 
01            this paragraph in newspapers of statewide circulation and in newspapers of                                   
02            general circulation in the vicinity of the proposed action, if available, at least                           
03            once a week for two consecutive weeks;                                                                       
04                      (B)  publication through public service announcements on the                                       
05            electronic media serving the area affected by the action;                                                    
06                      (C)  posting in a conspicuous location in the vicinity of the                                      
07            action;                                                                                                      
08                      (D)  notification of parties known or likely to be affected by the                                 
09            action; or                                                                                               
10                      (E)  [PUBLICATION OF A LEGAL NOTICE, AT LEAST 30                                                   
11            DAYS BEFORE THE ACTION, BRIEFLY DESCRIBING THE PROPOSED                                                      
12            ACTION AND REFERENCING THE ONLINE NOTICE REQUIRED IN                                                         
13            THIS PARAGRAPH IN NEWSPAPERS OF STATEWIDE CIRCULATION                                                        
14            AND IN NEWSPAPERS OF GENERAL CIRCULATION IN THE                                                              
15            VICINITY OF THE PROPOSED ACTION, IF AVAILABLE; OR                                                            
16                      (F)]  another method calculated to reach affected persons.                                         
17    * Sec. 24. AS 38.05.965(10) is repealed and reenacted to read:                                                     
18                 (10)  "materials"                                                                                       
19                      (A)  means all common variety rock and minerals of any                                             
20            quality, that are saleable and not subject to location under state or federal                                
21            mining laws;                                                                                                 
22                      (B)  includes aggregate, riprap, railroad ballast, road ballast,                                   
23            road metal, peat, silt, loam, sand, gravel, stone, pumice, and common clay;                                  
24    * Sec. 25. AS 41.23.470(b) is amended to read:                                                                     
25            (b)  The commissioner may conduct only a negotiated timber [OR                                               
26       MATERIAL] sale under AS 38.05.115 to provide for personal use, including house                                    
27       logs and firewood, or for a use incidental to the construction of access, or for habitat                          
28       enhancement.                                                                                                      
29    * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to                         
30 read:                                                                                                                   
31       AUTHORIZING LAND CONVEYANCE. The Department of Natural Resources                                                  
01 shall convey all right, title, and interest to the following described parcel to the City and                           
02 Borough of Juneau, subject to the reservations described in AS 38.05.125 and the provisions                             
03 of AS 38.05.127, for the purpose of meeting permit mitigation requirements relating to                                  
04 construction of the Auke Bay commercial loading facility.                                                               
05       The following parcel is located within Section 21, Township 40 South, Range 65 East,                              
06 of the Copper River Meridian, Alaska, and within the City and Borough of Juneau and is                                  
07 more particularly described as follows:                                                                                 
08        Commencing at meander corner 1 of U.S. Survey 1370, as shown on the official                                     
09 Subdivision Plat, Indian Cove recorded as plat No. 363 in the Juneau Recording District, State                          
10 of Alaska, from which meander corner 2 of said plat bears South 28 degrees 06 minutes 00                                
11 seconds West, a distance of 605.22 feet thus being the Basis of bearing for this legal                                  
12 description. Said corner 1 is identical to corner 2 of lot 1 U.S. Survey 3811. Said corner is the                       
13 True Point of Beginning for this description. Thence along the meander line of U.S. Survey                              
14 3811 North 44 degrees 46 minutes 00 seconds East, a distance of 150.48 feet; thence                                     
15 continuing on said meander line North 70 degrees 34 minutes 00 seconds East, a distance of                              
16 593.34 feet; thence North 79 degrees 06 minutes 00 seconds East, a distance of 284.46 feet;                             
17 thence South 25 degrees 52 minutes 00 seconds East, a distance of 168.96 feet; thence South                             
18 80 degrees 04 minutes 00 seconds East, a distance of 126.72 feet; thence South 48 degrees 07                            
19 minutes 00 seconds East, a distance of 318.78 feet; thence South 77 degrees 47 minutes 00                               
20 seconds East, a distance of 91.74 feet; thence North 74 degrees 06 minutes 00 seconds East, a                           
21 distance of 88.44 feet leaving the northeast boundary of U.S. Survey 3811, thence North 11                              
22 degrees 19 minutes 05 seconds West, a distance of 519.03 feet; thence North 32 degrees 21                               
23 minutes 39 seconds West, a distance of 600.96 feet; thence North 89 degrees 49 minutes 53                               
24 seconds West, a distance of 501.10 feet; thence North 15 degrees 08 minutes 37 seconds                                  
25 West, a distance of 99.62 feet to the Glacier Highway right-of-way and a point of cusp on a                             
26 curve concave to the south having a radius of 1808.97 feet and being subtended by a chord                               
27 that bears South 65 degrees 06 minutes 30 seconds West, 316.06 feet; thence westerly along                              
28 said right-of-way curve, a distance of 316.46 feet; thence along said right-of-way South 60                             
29 degrees 05 minutes 48 seconds West, a distance of 702.26 feet to a point of cusp on a right-of-                         
30 way curve concave to the south having a radius of 1809.19 feet and being subtended by a                                 
31 chord that bears South 54 degrees 27 minutes 34 seconds West, 355.43 feet; thence along said                            
01 right-of-way curve a distance of 356.01 feet to a point on the northern boundary of U.S.                                
02 Survey 1370; thence along said boundary South 15 degrees 16 minutes 27 seconds East, a                                  
03 distance of 430.26 feet; thence continuing along said boundary North 52 degrees 29 minutes                              
04 14 seconds East, a distance of 283.96 feet; thence continuing along said boundary South 28                              
05 degrees 01 minute 44 seconds East, a distance of 211.14 feet; thence continuing along said                              
06 boundary North 78 degrees 52 minutes 46 seconds East, a distance of 144.82 feet to the True                             
07 Point of Beginning, containing 31.96 acres, more or less.                                                               
08    * Sec. 27. The uncodified law of the State of Alaska is amended by adding a new section to                         
09 read:                                                                                                                   
10       REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change                                            
11            (1)  the heading of art. 4 of AS 38.05 from "Disposal of Timber and Materials"                               
12 to "Disposal of Timber";                                                                                                
13            (2)  the catch line of AS 38.05.110 from "Sale of timber and materials;                                      
14 account" to "Sale of timber."                                                                                           
15    * Sec. 28. Section 23 of this Act takes effect July 1, 2017.                                                       
16    * Sec. 29. Except as provided in sec. 28 of this Act, this Act takes effect July 1, 2012.