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HB 371: "An Act providing for the Department of Transportation and Public Facilities to hold the surface estate of certain state land; relating to the transfer of certain state land and materials from the Department of Natural Resources to the Department of Transportation and Public Facilities for the construction or maintenance of the state highway system, state airports, and state public buildings and facilities; relating to the lease or sale of certain marine or harbor facilities; relating to the lease or disposal by the Department of Transportation and Public Facilities of rights-of-way, property interests, or improvements that are no longer required; relating to the grant of certain easements over submerged state land to the federal government; relating to the transfer of certain maintenance stations on the James Dalton Highway to the Department of Transportation and Public Facilities; relating to the conveyance of land for right-of-way purposes from the Alaska Railroad Corporation to the Department of Transportation and Public Facilities; and providing for an effective date."

00 HOUSE BILL NO. 371 01 "An Act providing for the Department of Transportation and Public Facilities to hold 02 the surface estate of certain state land; relating to the transfer of certain state land and 03 materials from the Department of Natural Resources to the Department of 04 Transportation and Public Facilities for the construction or maintenance of the state 05 highway system, state airports, and state public buildings and facilities; relating to the 06 lease or sale of certain marine or harbor facilities; relating to the lease or disposal by the 07 Department of Transportation and Public Facilities of rights-of-way, property interests, 08 or improvements that are no longer required; relating to the grant of certain easements 09 over submerged state land to the federal government; relating to the transfer of certain 10 maintenance stations on the James Dalton Highway to the Department of 11 Transportation and Public Facilities; relating to the conveyance of land for right-of-way 12 purposes from the Alaska Railroad Corporation to the Department of Transportation

01 and Public Facilities; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 02.15 is amended by adding a new section to article 2 to read: 04 Sec. 02.15.065. Surface estate of state airport land. The department has 05 primary authority to manage the surface estate of land and property interests acquired 06 or held by the state for an airport, airport access road, or airport-related operations, 07 including land conveyed by the federal government under sec. 35 of the Alaska 08 Omnibus Act of 1959 (P.L. 86-70, 73 Stat. 141). In the exercise of that authority, the 09 department may require terms and conditions that are applicable to a use of the surface 10 estate authorized by the Department of Natural Resources in the administration of the 11 state program for the conservation and development of natural resources on state land. 12 * Sec. 2. AS 02.15.070(b) is repealed and reenacted to read: 13 (b) If the department determines that land, property interests, or improvements 14 are no longer necessary, the department shall notify the commissioner of natural 15 resources of the determination and may 16 (1) transfer the land, property interests, or improvements to the 17 Department of Natural Resources, if requested by the commissioner of natural 18 resources; or 19 (2) dispose of the land, property interests, or improvements by sale, 20 lease, vacation, or exchange, according to terms, standards, and conditions established 21 by the commissioner. 22 * Sec. 3. AS 02.15.070 is amended by adding a new subsection to read: 23 (c) If the department determines that a part of the state public domain is 24 reasonably necessary for an airport or as a source of materials for the construction or 25 maintenance of an airport, the department shall file with the Department of Natural 26 Resources a written determination and preliminary property plan identifying the 27 portion of or interest in the public domain land that the department reasonably needs, 28 subject to the following: 29 (1) the department shall provide public notice of the intended transfer 30 by posting the written determination and preliminary property plan on the Alaska

01 Online Public Notice System (AS 44.62.175); 02 (2) within four months after the filing, the Department of Natural 03 Resources shall transfer title to the surface estate to the department, subject to valid 04 existing rights; the transfer of land or materials under this subsection is not a disposal 05 of state land, and the transfer is presumed to be in the public interest; 06 (3) a transfer under this subsection vests control of the surface estate in 07 the department, including the right to extract or use sand, gravel, rock, timber, or other 08 construction materials, and the right to tunnel, ditch, contour, excavate, or otherwise 09 develop or use the land for transportation, utility, and related purposes; 10 (4) within two years after the completion of construction or of the 11 opening of a materials site, the department shall prepare and record a record of survey 12 of the property received by the department. 13 * Sec. 4. AS 19.05.070(b) is repealed and reenacted to read: 14 (b) If the department determines that land, property interests, or improvements 15 are no longer necessary, the department shall notify the commissioner of natural 16 resources of the determination and may 17 (1) transfer the land, property interests, or improvements to the 18 Department of Natural Resources, if requested by the commissioner of natural 19 resources; or 20 (2) dispose of the land, property interests, or improvements by sale, 21 lease, vacation, or exchange, according to terms, standards, and conditions established 22 by the commissioner. 23 * Sec. 5. AS 19.05.080 is amended by adding a new subsection to read: 24 (b) If the department determines that a part of the state public domain is 25 reasonably necessary for the right-of-way of a highway or as a source of materials for 26 the construction or maintenance of a highway, the department shall file with the 27 Department of Natural Resources a written determination and preliminary right-of- 28 way plan identifying the portion of or interest in the public domain land that the 29 department reasonably needs, subject to the following: 30 (1) the department shall provide public notice of the intended transfer 31 by posting the written determination and preliminary right-of-way plan on the Alaska

01 Online Public Notice System (AS 44.62.175); 02 (2) within four months after the filing, the Department of Natural 03 Resources shall transfer title to the surface estate to the department, subject to valid 04 existing rights; the transfer of land or materials under this subsection is not a disposal 05 of state land, and the transfer is presumed to be in the public interest; 06 (3) a transfer under this subsection vests control of the surface estate in 07 the department, including the right to extract or use sand gravel, rock, timber, or other 08 construction materials, and the right to tunnel, ditch, contour, excavate, or otherwise 09 develop or use the land for transportation, utility, and related purposes; 10 (4) within two years after the completion of construction or the 11 opening of a materials site, the department shall prepare and record a record of survey 12 of the property received by the department. 13 * Sec. 6. AS 19.05 is amended by adding a new section to article 2 to read: 14 Sec. 19.05.124. Surface estate of state highway land. The department has 15 primary authority to manage the surface estate of land and property interests acquired 16 or held by the state for the state highway system, including land conveyed by the 17 federal government under sec. 21 of the Alaska Omnibus Act of 1959 (P.L. 86-70, 73 18 Stat. 141), maintenance yards, materials sites, and other land and property interests 19 necessary for the operation of the state highway system. In the exercise of that 20 authority, the department may require terms and conditions that are applicable to a use 21 of the surface estate authorized by the Department of Natural Resources in the 22 administration of the state program for the conservation and development of natural 23 resources on state land. 24 * Sec. 7. AS 35.10.120 is amended to read: 25 Sec. 35.10.120. Lease or sale of [MARINE OR] harbor facilities. The 26 department may lease for a period up to 50 years or may sell for a nominal sum to a 27 municipality [AN INCORPORATED CITY, PUBLIC UTILITY DISTRICT,] or 28 other incorporated area [MARINE OR] harbor facilities constructed or rebuilt with 29 territorial funds or state funds or with territorial or state and federal matching funds. 30 The intent of this section is to allow a municipality [CITIES, PUBLIC UTILITY 31 DISTRICTS, AND OTHER INCORPORATED AREAS] to lease or purchase a

01 [MARINE OR] harbor facility [FACILITIES] so that the municipality [THEY] may 02 enforce municipal ordinances on the harbor facility [THEM] and legally assess fees 03 to meet maintenance costs. 04 * Sec. 8. AS 35.20.010 is amended by adding a new subsection to read: 05 (b) If the department determines that a part of the state public domain is 06 reasonably necessary for a public building or public facility or as a source of materials 07 for the construction or maintenance of a building or facility, the department shall file 08 with the Department of Natural Resources a written determination and preliminary site 09 plan showing the portion of or interest in the public domain land that the department 10 reasonably needs, subject to the following: 11 (1) the department shall provide public notice of the intended transfer 12 by posting the written determination and preliminary site plan on the Alaska Online 13 Public Notice System (AS 44.62.175); 14 (2) within four months after the filing, the Department of Natural 15 Resources shall transfer title to the surface estate to the department, subject to valid 16 existing rights; the transfer of land or materials under this subsection is not a disposal 17 of state land, and the transfer is presumed to be in the public interest; 18 (3) a transfer under this subsection vests control of the surface estate in 19 the department, including the right to extract or use sand, gravel, rock, timber, or other 20 construction materials, and the right to tunnel, ditch, contour, excavate, or otherwise 21 develop or use the land for a public building or public facility; 22 (4) within two years after the completion of construction or the 23 opening of a materials site, the department shall prepare and record a record of survey 24 of the property received by the department. 25 * Sec. 9. AS 35.20 is amended by adding a new section to read: 26 Sec. 35.20.015. Surface estate of public facility land. The department has 27 primary authority to manage the surface estate of land and property interests acquired 28 or held by the state for public buildings and public facilities owned or controlled by 29 the department. In the exercise of that authority, the department may require terms and 30 conditions that are applicable to a use of the surface estate authorized by the 31 Department of Natural Resources in the administration of the state program for the

01 conservation and development of natural resources on state land. 02 * Sec. 10. AS 35.20.070 is repealed and reenacted to read: 03 Sec. 35.20.070. Leasing and disposing of land and property interests. If the 04 department determines that land, property interests, or improvements are no longer 05 necessary, the department shall notify the commissioner of natural resources of the 06 determination and may 07 (1) transfer the land, property interests, or improvements to the 08 Department of Natural Resources, if requested by the commissioner of natural 09 resources; or 10 (2) dispose of the land, property interests, or improvements by sale, 11 lease, vacation, or exchange, according to terms, standards, and conditions established 12 by the commissioner. 13 * Sec. 11. AS 38.05.030(b) is amended to read: 14 (b) The provisions of this chapter do not apply to a [ANY] power, duty, or 15 authority now or in the future granted to the Department of Transportation and Public 16 Facilities in the name of the state, to acquire, use, lease, dispose of, or exchange real 17 property, or any interest in real property or to a transfer of land under 18 AS 02.15.070(c), AS 19.05.080(b), or AS 35.20.010(b). Land transferred 19 [ASSIGNED] by the division of lands to the Department of Transportation and Public 20 Facilities may [SHALL] be returned to [THE MANAGEMENT OF] the division of 21 lands when the land [IT] is no longer needed for the purposes transferred 22 [ASSIGNED]. 23 * Sec. 12. AS 38.05.030(d) is amended to read: 24 (d) The [EXCEPT FOR LAND THAT IS REQUIRED TO BE RETURNED 25 TO THE DEPARTMENT UNDER (b) OF THIS SECTION, THE] Department of 26 Transportation and Public Facilities may dispose of real property acquired [BY IT] 27 under AS 02.15.065, 02.15.070, AS 19.05.040(1), (2), and (9), 19.05.080 - 19.05.124, 28 AS 35.05.040(1), (2), and (6) [AS 02.15.070, AS 19.05.040(1) AND (2), 19.05.080 - 29 19.05.120, AS 35.05.040(1) AND (2)], and AS 35.20.010 - 35.20.050. Land conveyed 30 under this section to a municipality for less than fair market value shall be credited 31 against the municipality's entitlement under AS 29.65.

01 * Sec. 13. AS 38.05.030 is amended by adding a new subsection to read: 02 (h) Notwithstanding the provisions in AS 38.05.550 - 38.05.565, extraction 03 and use of materials from sources and sites owned by the state is not a disposal of 04 materials when used for the construction or maintenance of an airport, highway, or 05 public facility owned by the state. The department may not collect payments, set time 06 limitations, or otherwise restrict the Department of Transportation and Public 07 Facilities from access to a source of materials and a site owned by the state. 08 * Sec. 14. AS 42.40.285 is amended to read: 09 Sec. 42.40.285. Legislative approval required. Unless the legislature 10 approves the action by law, the corporation may not 11 (1) exchange, donate, sell, or otherwise convey its entire interest in 12 land to an entity other than the Department of Transportation and Public 13 Facilities for state right-of-way purposes; 14 (2) issue bonds; 15 (3) extend railroad lines; this paragraph does not apply to a spur, 16 industrial, team, switching, or side track; 17 (4) lease land for a period in excess of 95 years unless the corporation 18 reserves the right to terminate the lease if the land is needed for railroad purposes; 19 (5) apply for or accept a grant of federal land within a municipality; 20 before approving an action under this paragraph, the legislature must determine that 21 the federal land is required for essential railroad purposes; this paragraph does not 22 apply to the application for or acceptance of a grant of federal land associated with 23 (A) the Anchorage-Wasilla line change project on Elmendorf 24 Air Force Base and Fort Richardson; 25 (B) the Fairbanks intermodal rail yard expansion project; 26 (C) a conveyance of rail properties of the Alaska Railroad 27 under the original Alaska Railroad Transfer Act of 1982 as set out in Title VI, 28 P.L. 97-468; in this subparagraph, "rail properties of the Alaska Railroad" has 29 the meaning given in 45 U.S.C. 1202(10). 30 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to

01 TRANSFER OF CERTAIN MAINTENANCE STATIONS. The Department of 02 Natural Resources shall transfer the surface estate to the access roads, camps, and airstrips at 03 Franklin Bluffs and Happy Valley on the James Dalton Highway to the Department of 04 Transportation and Public Facilities. The transfer of those properties to the Department of 05 Transportation and Public Facilities does not affect or otherwise alter current licenses and 06 permits issued by the Department of Natural Resources for use of those properties. Within 60 07 days after the effective date of this Act, the Department of Transportation and Public 08 Facilities shall notify a person holding a license or permit of the administrative transfer of 09 those properties. Not later than January 1, 2015, the Department of Transportation and Public 10 Facilities shall accept and begin to process permit and license applications through its rural 11 airport permitting program for an activity currently authorized by permit or license by the 12 Department of Natural Resources and normally permitted through rural airport permitting 13 authorities. Other valid permits or licenses issued by the Department of Natural Resources 14 continue according to the terms of the permit or license. 15 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 GRANT OF CERTAIN EASEMENTS OVER SUBMERGED STATE LAND TO 18 IMPLEMENT A RECIPROCAL EXCHANGE. Notwithstanding a provision of state law to 19 the contrary, the easements over submerged land identified on the map numbered 92337 and 20 dated June 15, 2005, and that are part of the reciprocal exchange of rights-of-way and 21 easements enacted into federal law under 119 Stat. 1177 are granted to the United States 22 Forest Service. The easements identified in this section and granted to the United States 23 Forest Service may have a term of years for a period of more than 55 years if the 24 commissioner of natural resources determines the length of the term to be in the best interest 25 of the state. 26 * Sec. 17. This Act takes effect immediately under AS 01.10.070(c).