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HB 183: "An Act relating to the state land disposal bank; relating to the state land disposal program; providing for a state program that sells state land to an individual eligible for a permanent fund dividend; allowing an individual to use permanent fund dividends to purchase certain land from the state; requiring the Department of Revenue to confirm the eligibility of an individual to receive a dividend for the purposes of a state land sale program; and providing for an effective date."

00                             HOUSE BILL NO. 183                                                                          
01 "An Act relating to the state land disposal bank; relating to the state land disposal                                   
02 program; providing for a state program that sells state land to an individual eligible for                              
03 a permanent fund dividend; allowing an individual to use permanent fund dividends to                                    
04 purchase certain land from the state; requiring the Department of Revenue to confirm                                    
05 the eligibility of an individual to receive a dividend for the purposes of a state land sale                            
06 program; and providing for an effective date."                                                                          
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 38.04.020(d) is amended to read:                                                                   
09            (d)  By January 15 of the first session of each legislature, the commissioner                                
10       shall notify the legislature that the commissioner has available a report on the status of                        
11       land in the land disposal bank under the following categories:                                                    
12                 (1)  land suitable for homestead disposal;                                                              
13                 (2)  land suitable for subdivision disposal;                                                            
01                 (3)  land suitable for agricultural, commercial, or industrial disposal;                                
02       [AND]                                                                                                             
03                 (4)  land suitable for sale under AS 38.05.062; and                                                 
04                 (5)  land suitable for other purposes.                                                              
05    * Sec. 2. AS 38.04.020(e) is amended to read:                                                                      
06            (e)  The commissioner shall annually submit to the governor an appropriation                                 
07       request for funding estimated to be necessary for the next two years to allow                                     
08                 (1)  survey and disposal of land proposed to be made available for                                      
09       homestead staking, with the general location of the land;                                                         
10 (2)  survey and disposal of land to be offered as agricultural,                                                         
11 commercial, industrial, or other uses under AS 38.05.055 or 38.05.057, with the                                         
12       general location of the land;                                                                                     
13 (3)  the survey and disposal of land proposed to be offered as                                                          
14       subdivisions, with the general location of the land;                                                              
15 (4)  preliminary feasibility studies, engineering design work, right-of-                                                
16 way acquisition, and construction of access roads and capital improvements required                                     
17       by municipal subdivision ordinance or regulation of the platting authority;                                       
18 (5)  identification of land that will be proposed for disposal under this                                               
19       subsection in future fiscal years;                                                                            
20                 (6)  survey and disposal of land offered under AS 38.05.062.                                        
21    * Sec. 3. AS 38.04.022(a) is amended to read:                                                                      
22 (a)  The revenue from the state land disposal program, including revenue                                            
23 from land disposed under AS 38.05.062, shall be deposited in the state land disposal                                
24 income fund in the state treasury. On June 30 of each fiscal year, the portion of that                                  
25 fund that exceeds $5,000,000 shall be deposited in the state general fund. The                                          
26 legislature may appropriate money from the state land disposal income fund for                                          
27 expenditure by the Department of Natural Resources for necessary costs incurred by                                      
28 the commissioner in the implementation of state land disposal programs authorized                                       
29       under this title or for any other public purpose.                                                                 
30    * Sec. 4. AS 38.05 is amended by adding a new section to read:                                                     
31 Sec. 38.05.062. Permanent fund dividend sale land. (a) The commissioner                                               
01 shall select at least 200,000 acres of land from the land disposal bank established                                     
02 under AS 38.04.020 for sale under this section. Land selected for sale under this                                       
03 section must be categorized under AS 38.04.065(c)(1) and classified under                                               
04 AS 38.05.300 as appropriate for year-round settlement near areas where public                                           
05 services already exist or can be extended with reasonable economy or where                                              
06       development of a viable economic base is probable.                                                              
07 (b)  Notwithstanding AS 38.04.045(b), the land the commissioner selects for                                             
08 sale under (a) of this section shall be divided by the director into platted parcels using                              
09 coordinates provided by Global Positioning System technology that do not exceed 10                                      
10 acres in reasonably compact form, with boundaries conforming as nearly as                                               
11 practicable to natural geologic and topographic features. The director shall reserve                                    
12 easements and rights-of-way included in surveys under AS 38.04.050 - 38.04.058. The                                     
13 director shall adopt procedures for appraisals of land subdivided under this section. A                                 
14 buyer shall be responsible for surveying costs incurred by the department so that the                                   
15 purchaser may obtain title to a parcel. A parcel may exceed 10 acres only if the                                        
16       director, in a written finding, determines that the larger parcel is necessary to                                 
17                 (1)  comply with local zoning ordinances; or                                                            
18 (2)  permit the design of a subdivision because of topographical                                                        
19 features, soil conditions, on-site sewage disposal requirements, or water drainage or                                   
20       supply considerations unique to the subdivision.                                                                  
21 (c)  A parcel of land described in (b) of this section shall be sold at its fair                                        
22 market value as determined by the director based on an appraisal completed as                                           
23 provided in AS 38.05.840, except that the director shall provide a 10 percent discount                                  
24 on the fair market value of a parcel to a veteran who is eligible for a discount under                                  
25       AS 38.05.940.                                                                                                     
26 (d)  On the third Thursday of October each year, the commissioner shall hold a                                          
27 lottery to sell parcels of land under this section. Not later than September 1, an                                      
28 individual qualified under (g) of this section may assign the individual's permanent                                    
29 fund dividend to the department, or deposit with the department the amount required                                     
30 under (i)(1) of this section, in anticipation of the lottery and future lotteries held under                            
31 this section. The director shall notify a person who has assigned a dividend or made a                                  
01 cash deposit under this subsection that the person may apply to purchase land in the                                    
02 lottery. The director shall accept lottery applications to purchase particular parcels                                  
03 received by the third Thursday in October. Notice of the application period and the                                     
04       date of the lottery must comply with AS 38.05.945.                                                                
05 (e)  If the department receives only one application for a certain parcel in a                                          
06 lottery under this section, the director shall offer the parcel to that applicant if the                                
07 applicant qualifies under (g) of this section. If more than one application is received                                 
08 for a parcel, the director shall select a qualified buyer by lottery. If the director does                              
09 not receive an application for a parcel of state land or if a buyer fails to sign a contract                            
10 of sale, the parcel shall be reoffered and sold to the first qualified buyer to apply for                               
11       the parcel.                                                                                                       
12 (f)  The department shall employ a weighted lottery for certain applications                                            
13 made under this section. The department shall provide all first-time lottery applicants                                 
14 one standard chance to be eligible to purchase property in a lottery. The department                                    
15 shall provide an applicant who assigned money to the department under (d) of this                                       
16 section, has unsuccessfully participated in a previous annual lottery or lotteries under                                
17 this section, and has not applied for any refunds under (j) of this section an additional                               
18 chance for each of the previous annual lotteries in which the applicant participated but                                
19 was not awarded a parcel. An application may list up to five alternative parcels of                                     
20 land. As soon as an application is drawn in the weighted lottery, the department shall                                  
21 consider the award of each of the parcels in the order requested in the application. If                                 
22 the applicant whose application is drawn has complied with (i)(1) of this section, the                                  
23 department shall award the applicant the first available parcel on the applicant's list,                                
24 and any other listed parcels may be made available to other applicants. If none of the                                  
25 applicant's listed parcels are available, the next application drawn shall be considered.                               
26 If a parcel remains available after the department has considered all applications, or                                  
27 later becomes available because an applicant fails to complete the sale, the department                                 
28 shall make the parcel available for sale over the counter and in future lotteries under                                 
29       this section.                                                                                                     
30 (g)  To qualify as a buyer under this section, an applicant shall be 18 years of                                        
31 age or older and be eligible for a permanent fund dividend under AS 43.23.005. In this                                  
01       subsection, an applicant is eligible for a permanent fund dividend if the applicant                               
02                 (1)  received a permanent fund dividend for that year;                                                  
03                 (2)  applied for a permanent fund dividend for that year, and the                                       
04       Department of Revenue has determined that the individual is eligible to receive a                                 
05       permanent fund dividend for that year; or                                                                         
06                 (3)  has a pending application for a permanent fund dividend for that                                   
07       year and received a permanent fund dividend for the immediately preceding year.                                   
08            (h)  The commissioner shall confirm with the Department of Revenue an                                        
09       individual's                                                                                                      
10                 (1)  receipt of a permanent fund dividend; or                                                           
11                 (2)  eligibility to receive a permanent fund dividend.                                                  
12 (i)  The department shall adopt regulations that establish a procedure for                                              
13       purchase of state land under this section that is consistent with the following:                                  
14 (1)  a bidder or offeror in an annual lottery or sale held under this                                                   
15 section shall provide to the department a minimum deposit or assignment of $800; if a                                   
16 bidder or offeror has assigned a dividend in an amount less than $800 to the                                            
17 department, the bidder or offeror shall deposit the amount necessary for the                                            
18       individual's deposit to equal $800;                                                                               
19 (2)  as soon as possible after a sale is made, the director shall issue a                                               
20 contract of sale that describes the land purchased, the price, the amount deposited, and                                
21       any balance due to the state;                                                                                     
22 (3)  to the extent practicable, the department shall use the contracting                                                
23       procedures under AS 38.05.065 for a contract issued under this section;                                           
24 (4)  a buyer may assign the buyer's future permanent fund dividends to                                                  
25 satisfy any balance due to the state, but assignment does not release the buyer from the                                
26 obligation to pay the remainder of the purchase price if the buyer becomes ineligible                                   
27 for a permanent fund dividend or has claims or assignments on the buyer's dividend                                      
28       under AS 43.23.065 - 43.23.068, 43.23.072, or 43.23.085;                                                          
29 (5)  a buyer may pay the remainder of the purchase price at any time                                                    
30 after the sale, but the buyer shall pay the entire balance of the purchase price by                                     
31       assignment of dividends or in installment payments within a period of 20 years;                                   
01 (6)  in a year in which the amount of the permanent fund dividend                                                       
02 under AS 43.23.025 is less than the sum of $800 and the administrative fee assessed                                     
03 under AS 43.23.071, a buyer who has assigned the buyer's dividend to the department                                     
04       shall pay the department the difference between $800 and the dividend amount;                                     
05                 (7)  the department may not charge a buyer interest on the balance due                                  
06       to the state on a parcel purchased under this section.                                                            
07            (j)  The department shall adopt a procedure for an individual to apply for a                                 
08       refund of money that the individual deposited with or assigned to the department                                  
09       under AS 43.23.061 less                                                                                           
10                 (1)  any administrative fees assessed under AS 43.23.071; and                                           
11                 (2)  a withdrawal fee of $100.                                                                          
12    * Sec. 5. AS 38.05.067(d) is amended to read:                                                                      
13 (d)  This section does not apply to the sale of state land under AS 38.05.057,                                          
14       38.05.062, AS 38.08, or AS 38.09.                                                                             
15    * Sec. 6. AS 38.05.840(a) is amended to read:                                                                      
16 (a)  Land may not be sold or leased, or a renewal lease issued, except in the                                           
17 case of an oil or gas or mineral lease, unless it has been appraised within two years                                   
18 before the date fixed for the sale or lease. When land is offered at public sale but is not                             
19 sold and is available at private sale, a reappraisal is not required unless the director                                
20 considers that a change in value of the land may have occurred. A grazing lease may                                     
21 be granted to a lessee of federal grazing land without prior appraisal if the federal                                   
22 lease was cancelled to allow the state to select the land under lease. Land may not be                                  
23 sold or leased for less than the approved, appraised market value, except as provided                                   
24 in AS 38.05.055, 38.05.057, 38.05.062, 38.05.075 - 38.05.085, 38.05.097, 38.05.810,                                 
25       and 38.05.820.                                                                                                    
26    * Sec. 7. AS 38.05.940(a) is amended to read:                                                                      
27            (a)  An eligible veteran is entitled to a discount of                                                        
28 (1)  10 percent on the purchase price of a parcel of land sold under                                                
29       AS 38.05.062; or                                                                                              
30 (2)  except for land sold under AS 38.05.062, 25 percent on the                                                     
31 purchase price of state land sold under this title and classified under AS 38.05.005 -                                  
01       38.05.270 for a use other than commercial or industrial use.                                                      
02    * Sec. 8. AS 43.23.055 is amended to read:                                                                         
03            Sec. 43.23.055. Duties of the department. The department shall                                             
04                 (1)  annually pay permanent fund dividends from the dividend fund;                                      
05 (2)  subject to AS 43.23.011 and paragraph (8) of this section, adopt                                                   
06 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures                                     
07 and time limits for claiming a permanent fund dividend; the department shall                                            
08 determine the number of eligible applicants by October 1 of the year for which the                                      
09       dividend is declared and pay the dividends by December 31 of that year;                                           
10 (3)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                                    
11 that establish procedures and time limits for an individual upon emancipation or upon                                   
12 reaching majority to apply for permanent fund dividends not received during minority                                    
13 because the parent, guardian, or other authorized representative did not apply on                                       
14       behalf of the individual;                                                                                         
15 (4)  assist residents of the state, particularly in rural areas, who because                                            
16 of language, disability, or inaccessibility to public transportation need assistance to                                 
17       establish eligibility and to apply for permanent fund dividends;                                                  
18 (5)  use a list of individuals ineligible for a dividend under                                                          
19 AS 43.23.005(d) provided annually by the Department of Corrections and the                                              
20 Department of Public Safety to determine the number and identity of those                                               
21       individuals;                                                                                                      
22 (6)  adopt regulations that are necessary to implement AS 43.23.005(d);                                                 
23 (7)  adopt regulations that establish procedures for the parent, guardian,                                              
24 or other authorized representative of a disabled individual to apply for prior year                                     
25 permanent fund dividends not received by the disabled individual because no                                             
26       application was submitted on behalf of the individual;                                                            
27 (8)  adopt regulations that establish procedures for an individual to                                                   
28 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not                                    
29 collected within two years after the date of its issuance; however, the department may                                  
30 not establish a time limit within which an application to have a disbursement reissued                                  
31       must be filed;                                                                                                    
01 (9)  provide any information, upon request, contained in permanent                                                      
02 fund dividend records to the child support services agency created in AS 25.27.010, or                                  
03 the child support enforcement agency of another state, for child support purposes                                       
04 authorized under law; if the information is contained in an electronic data base, the                                   
05       department shall provide the requesting agency with either                                                        
06                      (A)  access to the data base; or                                                                   
07                      (B)  a copy of the information in the data base and a statement                                    
08            certifying its contents;                                                                                     
09                 (10)  establish a fraud investigation unit for the purpose of assisting the                             
10 (A)  Department of Law in the prosecution of individuals who                                                            
11 apply for or obtain a permanent fund dividend in violation of a provision in                                            
12            AS 11, by detecting and investigating those crimes; and                                                      
13 (B)  commissioner to detect and investigate the claiming or                                                             
14 paying of permanent fund dividends that should not have been claimed by or                                              
15 paid to an individual and to impose the penalties and enforcement provisions                                            
16            under AS 43.23.035;                                                                                      
17 (11)  upon request of the commissioner of natural resources,                                                        
18 confirm under AS 38.05.062(h) that an individual has received, or is eligible to                                    
19       receive, a permanent fund dividend.                                                                           
20    * Sec. 9. AS 43.23 is amended by adding a new section to read:                                                     
21 Sec. 43.23.061. Assignment of dividend to purchase state land.                                                        
22 Notwithstanding AS 43.23.069, the department shall prepare the electronic permanent                                     
23 fund dividend application to allow an applicant who files electronically to direct that                                 
24 all or part of the applicant's dividend payment, less an administrative fee assessed                                    
25 under AS 43.23.071, be assigned to the Department of Natural Resources to be used                                       
26 toward the purchase of state land by the applicant under AS 38.05.062. The electronic                                   
27       dividend application form must include notice that                                                                
28 (1)  an administrative fee will be deducted from the applicant's                                                        
29 dividend payment if the applicant directs that the person's dividend payment be used                                    
30       toward the purchase of state land under AS 38.05.062; and                                                         
31 (2)  if the applicant directs that the person's dividend payment be used                                                
01       toward the purchase of state land under AS 38.05.062 and requests a refund of money                               
02       assigned under this section, an administrative fee of $100 will also be deducted from                             
03       the refund.                                                                                                       
04    * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to                         
05 read:                                                                                                                   
06 FIRST LOTTERY SALE OF PERMANENT FUND DIVIDEND LAND.                                                                     
07 Notwithstanding AS 38.05.062(d), added by sec. 4 of this Act, the first lottery held by the                             
08 Department of Natural Resources to sell parcels of land under AS 38.05.062, added by sec. 4                             
09 of this Act, shall be conducted on the third Thursday in October of 2018.                                               
10    * Sec. 11. This Act takes effect immediately under AS 01.10.070(c).