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HB 281: "An Act relating to the permitting, lease, and sale of state land for remote recreational cabin sites; and providing for an effective date."

00 HOUSE BILL NO. 281 01 "An Act relating to the permitting, lease, and sale of state land for remote recreational 02 cabin sites; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 PURPOSE. The longstanding policy of the state, declared in art. VIII, secs. 1, 2, and 9, 07 Constitution of the State of Alaska, and the Alaska Land Act (AS 38.05) has been to 08 encourage the settlement of the state's land and the development of its resources by making 09 land available for the maximum use consistent with the public interest. Many Alaskans and 10 their families would like to own or have an interest in state land. With only 10 percent of state 11 land in private ownership, there is state land available for Alaskans to lease or purchase for 12 recreational purposes. Current law requires most state land to be sold or leased to the highest 13 bidder, which prevents many Alaskans from leasing or purchasing state land even for 14 recreational purposes. The purpose of this Act is to use the full extent of the authority under

01 the Constitution of the State of Alaska to provide Alaskans a more efficient and fair process to 02 obtain an interest in remote state land for recreation. Consistent with the Constitution of the 03 State of Alaska, this Act recognizes that making state land available to all Alaskans for 04 remote recreational purposes provides for the maximum use of state land consistent with the 05 public interest. 06 * Sec. 2. AS 38.05.035(e) is amended to read: 07 (e) Upon a written finding that the interests of the state will be best served, the 08 director may, with the consent of the commissioner, approve contracts for the sale, 09 lease, or other disposal of available land, resources, property, or interests in them. In 10 approving a contract under this subsection, the director need only prepare a single 11 written finding. In addition to the conditions and limitations imposed by law, the 12 director may impose additional conditions or limitations in the contracts as the director 13 determines, with the consent of the commissioner, will best serve the interests of the 14 state. The preparation and issuance of the written finding by the director are subject to 15 the following: 16 (1) with the consent of the commissioner and subject to the director's 17 discretion, for a specific proposed disposal of available land, resources, or property, or 18 of an interest in them, the director, in the written finding, 19 (A) shall establish the scope of the administrative review on 20 which the director's determination is based, and the scope of the written 21 finding supporting that determination; the scope of the administrative review 22 and finding may address only reasonably foreseeable, significant effects of the 23 uses proposed to be authorized by the disposal; 24 (B) may limit the scope of an administrative review and finding 25 for a proposed disposal to 26 (i) applicable statutes and regulations; 27 (ii) the facts pertaining to the land, resources, or 28 property, or interest in them, that the director finds are material to the 29 determination and that are known to the director or knowledge of which 30 is made available to the director during the administrative review; and 31 (iii) issues that, based on the statutes and regulations

01 referred to in (i) of this subparagraph, on the facts as described in (ii) of 02 this subparagraph, and on the nature of the uses sought to be authorized 03 by the disposal, the director finds are material to the determination of 04 whether the proposed disposal will best serve the interests of the state; 05 and 06 (C) may, if the project for which the proposed disposal is 07 sought is a multiphased development, limit the scope of an administrative 08 review and finding for the proposed disposal to the applicable statutes and 09 regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 10 pertain solely to the disposal phase of the project when 11 (i) the only uses to be authorized by the proposed 12 disposal are part of that phase; 13 (ii) the disposal is a disposal of oil and gas, or of gas 14 only, and, before the next phase of the project may proceed, public 15 notice and the opportunity to comment are provided under regulations 16 adopted by the department; 17 (iii) the department's approval is required before the 18 next phase of the project may proceed; and 19 (iv) the department describes its reasons for a decision 20 to phase; 21 (2) the director shall discuss in the written finding prepared and issued 22 under this subsection the reasons that each of the following was not material to the 23 director's determination that the interests of the state will be best served: 24 (A) facts pertaining to the land, resources, or property, or an 25 interest in them other than those that the director finds material under (1)(B)(ii) 26 of this subsection; and 27 (B) issues based on the statutes and regulations referred to in 28 (1)(B)(i) of this subsection and on the facts described in (1)(B)(ii) of this 29 subsection; 30 (3) a written finding for an oil and gas lease sale or gas only lease sale 31 under AS 38.05.180 is subject to (g) of this section;

01 (4) a contract for the sale, lease, or other disposal of available land or 02 an interest in land is not legally binding on the state until the commissioner approves 03 the contract, but if the appraised value is not greater than $50,000 in the case of the 04 sale of land or an interest in land, or $5,000 in the case of the annual rental of land or 05 interest in land, the director may execute the contract without the approval of the 06 commissioner; 07 (5) public notice requirements relating to the sale, lease, or other 08 disposal of available land or an interest in land for oil and gas, or for gas only, 09 proposed to be scheduled in the five-year oil and gas leasing program under 10 AS 38.05.180(b), except for a sale under (6)(F) of this subsection, are as follows: 11 (A) before a public hearing, if held, or in any case not less than 12 180 days before the sale, lease, or other disposal of available land or an interest 13 in land, the director shall make available to the public a preliminary written 14 finding that states the scope of the review established under (1)(A) of this 15 subsection and includes the applicable statutes and regulations, the material 16 facts and issues in accordance with (1)(B) of this subsection, and information 17 required by (g) of this section, upon which the determination that the sale, 18 lease, or other disposal will serve the best interests of the state will be based; 19 the director shall provide opportunity for public comment on the preliminary 20 written finding for a period of not less than 60 days; 21 (B) after the public comment period for the preliminary written 22 finding and not less than 90 days before the sale, lease, or other disposal of 23 available land or an interest in land for oil and gas or for gas only, the director 24 shall make available to the public a final written finding that states the scope of 25 the review established under (1)(A) of this subsection and includes the 26 applicable statutes and regulations, the material facts and issues in accordance 27 with (1) of this subsection, and information required by (g) of this section, 28 upon which the determination that the sale, lease, or other disposal will serve 29 the best interests of the state is based; 30 (6) before a public hearing, if held, or in any case not less than 21 days 31 before the sale, lease, or other disposal of available land, property, resources, or

01 interests in them other than a sale, lease, or other disposal of available land or an 02 interest in land for oil and gas or for gas only under (5) of this subsection, the director 03 shall make available to the public a written finding that, in accordance with (1) of this 04 subsection, sets out the material facts and applicable statutes and regulations and any 05 other information required by statute or regulation to be considered upon which the 06 determination that the sale, lease, or other disposal will best serve the interests of the 07 state was based; however, a written finding is not required before the approval of 08 (A) a contract for a negotiated sale authorized under 09 AS 38.05.115; 10 (B) a lease of land for a shore fishery site under AS 38.05.082; 11 (C) a permit or other authorization revocable by the 12 commissioner; 13 (D) a mineral claim located under AS 38.05.195; 14 (E) a mineral lease issued under AS 38.05.205; 15 (F) an exempt oil and gas lease sale or gas only lease sale under 16 AS 38.05.180(d) of acreage subject to a best interest finding issued within the 17 previous 10 years or a reoffer oil and gas lease sale or gas only lease sale under 18 AS 38.05.180(w) of acreage subject to a best interest finding issued within the 19 previous 10 years, unless the commissioner determines that substantial new 20 information has become available that justifies a supplement to the most recent 21 best interest finding for the exempt oil and gas lease sale or gas only lease sale 22 acreage and for the reoffer oil and gas lease sale or gas only lease sale acreage; 23 however, for each oil and gas lease sale or gas only lease sale described in this 24 subparagraph, the director shall call for comments from the public; the 25 director's call for public comments must provide opportunity for public 26 comment for a period of not less than 30 days; if the director determines that a 27 supplement to the most recent best interest finding for the acreage is required 28 under this subparagraph, 29 (i) the director shall issue the supplement to the best 30 interest finding not later than 90 days before the sale; 31 (ii) not later than 45 days before the sale, the director

01 shall issue a notice describing the interests to be offered, the location 02 and time of the sale, and the terms and conditions of the sale; and 03 (iii) the supplement has the status of a final written best 04 interest finding for purposes of (i) and (l) of this section; 05 (G) a surface use lease under AS 38.05.255; 06 (H) a permit, right-of-way, or easement under AS 38.05.850; 07 (I) a remote recreational cabin site permit, lease, or sale 08 under AS 38.05.600; 09 (7) the director shall include in 10 (A) a preliminary written finding, if required, a summary of 11 agency and public comments, if any, obtained as a result of contacts with other 12 agencies concerning a proposed disposal or as a result of informal efforts 13 undertaken by the department to solicit public response to a proposed disposal, 14 and the department's preliminary responses to those comments; and 15 (B) the final written finding a summary of agency and public 16 comments received and the department's responses to those comments. 17 * Sec. 3. AS 38.05.045 is amended to read: 18 Sec. 38.05.045. Generally. All land owned in fee by the state or to which the 19 state may become entitled, excepting tide, submerged, or shoreland, and timber or 20 grazing land, may be sold as provided in AS 38.05.045 - 38.05.069 and AS 38.08. 21 However, this section does not prevent the disposition of land as provided in 22 AS 38.05.300, 38.05.321, 38.05.600, 38.05.810 - 38.05.870, 38.05.920, 38.05.945 and 23 38.05.946. 24 * Sec. 4. AS 38.05.065(b) is amended to read: 25 (b) The contract of sale for land sold under AS 38.05.057, [OR] under former 26 AS 38.05.078, or under AS 38.05.600 shall require the remainder of the purchase 27 price to be paid in monthly, quarterly, or annual installments over a period of not more 28 than 20 years. Installment payments plus interest shall be set on the level-payment 29 basis. The interest rate to be charged on installment payments is the rate provided in 30 (i) of this section. 31 * Sec. 5. AS 38.05.125(a) is amended to read:

01 (a) Each contract for the sale, lease, or grant of state land, and each deed to 02 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 03 38.05.321, 38.05.600, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50 except as 04 provided in AS 38.50.050 is subject to the following reservations: "The party of the 05 first part, Alaska, hereby expressly saves, excepts and reserves out of the grant hereby 06 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 07 minerals, fissionable materials, geothermal resources, and fossils of every name, kind 08 or description, and which may be in or upon said land above described, or any part 09 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, 10 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 11 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 12 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 13 servants upon said land, or any part or parts thereof, at any and all times for the 14 purpose of opening, developing, drilling, and working mines or wells on these or other 15 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 16 fissionable materials, geothermal resources, and fossils, and to that end it further 17 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 18 assigns forever, the right by its or their agents, servants and attorneys at any and all 19 times to erect, construct, maintain, and use all such buildings, machinery, roads, 20 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such 21 soil, and to remain on said land or any part thereof for the foregoing purposes and to 22 occupy as much of said land as may be necessary or convenient for such purposes 23 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 24 generally all rights and power in, to, and over said land, whether herein expressed or 25 not, reasonably necessary or convenient to render beneficial and efficient the complete 26 enjoyment of the property and rights hereby expressly reserved." 27 * Sec. 6. AS 38.05.600 is repealed and reenacted to read: 28 Sec. 38.05.600. Remote recreational cabin sites. (a) The commissioner shall 29 provide for the permitting, lease, and sale of state land for remote recreational cabin 30 sites to eligible applicants. A remote recreational cabin site shall be made available 31 either through a schedule of land offerings issued by the commissioner under (b) of

01 this section or through the remote recreational cabin site nomination process described 02 in (c) of this section. 03 (b) The commissioner shall annually publish a schedule of land offerings that 04 lists areas available for the staking of remote recreational cabin sites. The department 05 shall provide public notice of the annually published schedule of land offerings and of 06 any revisions made to the schedule. An eligible applicant may apply for a permit, 07 lease, or sale of a remote recreational cabin site from the schedule of land offerings. 08 (c) An eligible applicant may nominate and apply for a permit, lease, or sale of 09 up to 10 acres of available state land for a remote recreational cabin site that is not 10 included in the commissioner's schedule of land offerings. All nominated land must be 11 unencumbered so that the surface estate may be permitted, leased, or sold as provided 12 in this section. 13 (d) If land nominated under this section is not classified in a manner that 14 allows for a remote recreational cabin site, the commissioner may classify or reclassify 15 the land under AS 38.04.065 and AS 38.05.300. The applicant is responsible for all 16 administrative costs associated with the reclassification process. Before any staking of 17 a nominated site occurs, the department shall provide public notice of the remote 18 recreational cabin site nomination and of the intent to permit, sell, or lease the land to 19 the applicant. If the applicant fails to stake land nominated for a remote recreational 20 cabin site within 90 days of the department approving the nomination, the 21 commissioner may include the nominated lands in the annual schedule of land 22 offerings. 23 (e) The commissioner may issue a permit under this section to an eligible 24 applicant for a term of not more than five years. The commissioner may renew a 25 permit up to four times, with renewal periods not to exceed five years each. A remote 26 recreational cabin site permit is revocable at will and may be terminated by the 27 commissioner for any reason. Unless otherwise specified in the permit, during the 28 term of a permit, the permittee may lease or purchase the site under this section. If 29 land subject to a permit is offered for sale or lease, the commissioner shall first offer to 30 sell or lease the site to the permittee. 31 (f) The commissioner may issue a lease under this section to an eligible

01 applicant for a term of not more than 10 years. The commissioner may renew a lease 02 up to two times, with renewal periods not to exceed 10 years each. A lease may be 03 terminated by the commissioner before the expiration of the term of the lease if a 04 lessee fails to use the land in the manner required by the terms of the lease. At any 05 time during the lease, the lessee may purchase the remote recreational cabin site under 06 this section. 07 (g) The commissioner shall set annual fees for permits and leases under this 08 section consistent with AS 38.05.073(m) to ensure that the state receives a fair return 09 for the use granted. After termination of a remote recreational cabin site permit or 10 lease, improvements or personal property remaining on the land shall be managed in 11 the same manner provided in AS 38.05.090 for removal or reversion of improvements 12 upon termination of leases of state land. Neither a lease nor a permit may be assigned. 13 (h) A sale made under this section must be at fair market value, and the 14 purchaser shall pay for the appraisal, survey, and platting costs for the remote 15 recreational cabin site. For a site being leased or permitted by the applicant, fair 16 market value shall be determined as of the time of entry. The site may be appraised 17 and surveyed in a manner acceptable to the department. 18 (i) The commissioner may adopt regulations under AS 44.62 (Administrative 19 Procedures Act) necessary to implement the purposes of this section. 20 (j) In this section, 21 (1) "eligible applicant" means a resident at least 18 years of age who 22 has not leased or purchased a remote recreational cabin site or been issued a remote 23 recreational cabin site permit during the 10-year period before submitting an 24 application under this section; 25 (2) "resident" means an individual who has resided in the state for one 26 year before submitting an application under this section. 27 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION. A lease executed under AS 38.05.600 before the effective date of this 30 Act and in effect on the effective date of this Act is eligible for renewal under AS 38.05.600, 31 as repealed and reenacted by sec. 6 of this Act.

01 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).