Legislature(2023 - 2024)BARNES 124
02/06/2024 01:00 PM House TRANSPORTATION
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Audio | Topic |
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Start | |
HB255 | |
HB282 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | HB 255 | TELECONFERENCED | |
*+ | HB 282 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
HB 282-STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT 1:44:18 PM CHAIR MCCABE announced that the final order of business would be HOUSE BILL NO. 282, "An Act relating to access roads; relating to state land; relating to contracts for the sale of state land; relating to the authority of the Department of Education and Early Development to dispose of state land; relating to the authority of the Department of Transportation and Public Facilities to dispose of state land; relating to the authority of the Department of Natural Resources over certain state land; relating to the state land disposal income fund; relating to the sale and lease of state land; relating to covenants and restrictions on agricultural land; and providing for an effective date." 1:45:13 PM BRENT GOODRUM, Deputy Commissioner, Department of Natural Resources, began by relating that the state manages over 100 million acres of uplands and another 65 million acres of highlands all belonging to the people of Alaska. He said HB 282 would help to cut bureaucratic red tape, create flexibility and responsiveness from state departments, and open additional opportunities to put state lands to work for everyday Alaskans. The bill would also work to create flexible leasing requirements, support applicants' needs, and likely lower costs for lessees. He added that the legislation would also help facilitate commercial land sales by introducing a new statute for commercial land leasing and sales. 1:48:51 PM RACHEL LONGACRE, Chief of Operations, Division of Mining, Land and Water, Department of Natural Resources, began a PowerPoint presentation [hard copy included in the committee packet] on slide 2, titled "Overview," which read as follows [original punctuation provided]: • Authorize the Department of Education & Early Development (DEED) and the Department of Transportation & Public Facilities (DOT&PF) to directly dispose of surface land, rather than transferring land to the Department of Natural Resources (DNR) for conveyance • Increase the cap on the Land Disposal Income Fund (LDIF) Update and improve provisions relating to DNR's land disposal procedures in AS 19.30, AS 38.04, AS 38.05 • Amends agricultural use restrictions • Add a new statute relating to leases and sales of land for commercial development 1:49:52 PM MS. LONGACRE moved to slide 3, titled "Authority for Direct Disposal of State Land," which read as follows [original punctuation provided]: • Proposed amendments allow the Department of Education and Early Development (amending AS 14.07.030) and Department of Transportation & Public Facilities (amending AS 35.20.070) to sell land directly to private parties Streamlining land disposals, reducing multi-agency involvement Expanding eligible recipients beyond federal, state agencies, and political subdivisions 1:51:38 PM MS. LONGACRE continued to slide 4, titled "Land Disposal Income Fund (LDIF)," which read as follows [original punctuation provided]: • The LDIF holds deposits from the state land disposal program • Under current law, the portion of the fund in excess of $5 million is to be deposited in the state general fund • The bill raises state land disposal income fund cap from $5 million to $12 million Boosts spending authority for larger projects • Addresses inflation since 2000; cap unchanged for 20 years • Adjustment to funding cap, not appropriation • Department can request limit increase in annual report 1:52:47 PM MS. LONGACRE moved to slide 5, titled "Agricultural Land Lease and Sale Procedures," which read as follows [original punctuation provided]: • Amendment to AS 38.05.321 allows broader use of agricultural land and improvements • Currently an agricultural landowner can only use the land for purposes that are incidental to and not inconsistent with agricultural land • Proposed amendment would now allow an agricultural landowner to use land for purposes that are consistent with and do not interfere with the primary purpose 1:53:23 PM MS. LONGACRE moved to slide 6, titled "Access Road Construction," which read as follows [original punctuation provided]: • Amends AS 19.30.080 to specify that access roads to surface disposals may be developed at a pioneer standard Clarifying language on right-of-way widths within municipal boundaries Align with municipal zoning requirements to the same extent as private developers 1:53:48 PM MS. LONGACRE continued on slide 7, titled "Land Sale Procedures," which read as follows [original punctuation provided]: • Land sale disposal contracts Longer purchase terms from 20 years to 30 years Consistency in terms from "Foreclosure" to "Termination" Allows for paid in full purchase when existing infrastructure would increase liability of financing a land sale purchase contract 1:54:11 PM MS. LONGACRE proceeded to slide 8, titled "Survey Requirements for Lease," which read as follows [original punctuation provided]: • Discretion of cadastral surveys for long-term leases Survey could be required where infrastructure boundaries or access management is in the best interest of the state Reduces the financial and administrative burden on industries Industry is challenged by current requirements • Ex: Renewable energy projects, grazing leases 1:55:05 PM MS. LONGACRE proceeded to slide 9, titled "Land for Commercial Development," which read as follows [original punctuation provided]: • Stimulate economic development • Offers land for leasing, and sale, by requesting proposals For state land identified or nominated as a Qualified Opportunity Zone For state land nominated by the public • Land nominated cannot exceed 640 acres For any other state land the commissioner deems appropriate for commercial development • Nominated land may need to be reclassified Provide additional public notice beyond normal AS 38.05.945 1:55:45 PM MS. LONGACRE explained the sectional analysis of HB 282, on slides 10 through 13, which read as follows [original punctuation provided]: Section 1 - Amends AS 14.07.030(a) pertaining to the powers and duties of the Department of Education and Early Development (DEED), allowing them to dispose of land directly to a private party rather than just to federal agencies, state agencies, and political subdivisions. Under current practice, DEED transfers land to the Department of Natural Resources (DNR) for disposal of the parcel in compliance with DNR's procedures detailed in AS 38, the Alaska Land Act. Section 2 - Amends AS 19.30.080 pertaining to construction standards and maintenance of state access roads. The amendments allow for access roads constructed under AS 19.30.060-19.30.100 (pertaining to providing access to state land that is programmed for surface disposal, and to provide access roads at the lowest possible cost) to be of low standard and not necessarily suitable for all weather used. The amendments would clarify that where an access road to state land intended for disposal is constructed within the boundaries of a municipality, the right-ofway width must conform to the municipality's zoning requirements to the same extent as private landowners. Section 3 - Repeals and reenacts AS 35.20.070 (vacating and disposing of land; rights in land), relating to Department of Transportation & Public Facilities (DOT&PF) authority to vacate or dispose of land. Currently, AS 35.20.070 only permits DOT&PF to transfer such land to DNR for disposal. The reenacted section would allow DOT&PF to dispose of land to a third party directly, according to the terms, standards, and conditions established by the DOT&PF commissioner. Such land could still be transferred to DNR for disposal, if requested by DNR. This amendment will streamline the disposal process and reduce multi- agency efforts. Section 4 - Amends AS 38.04.022 pertaining to the state land disposal income fund. Currently under subsection (a), the portion of the fund that exceeds $5,000,000 must be deposited in the state general fund. This bill would raise that amount to $12,000,000. This would increase spending authority from the fund for higher development, multi-year projects. The increase would also offset inflation since the fund was established in 2000. The $5 million cap has not been adjusted in nearly 25 years. This would be an adjustment to the funding cap, not an increase in appropriation. Under subsection (b), the department is granted discretion to request an increase of the deposit limit in its annual statutorily required report to the Legislature. Section 5 - Amends AS 38.04.045(b) to remove long-term leases under AS 38.05.070 from the requirement to accomplish an official cadastral survey. Currently, AS 38.04.045, the statute relating to survey and subdivision, requires that a survey be completed for a long-term lease, which is defined in statute as a term over ten years. Section 6 - Adds a new subsection (c) to AS 38.05.045 to provide that the DNR commissioner may require an official cadastral survey under .045(b) before the issuance of a long-term lease under AS 38.05.070. Section 7 - Repeals and reenacts AS 38.05.055, which establishes public auction or sealed bid as the default methods for sale of state land. The re-enacted version divides this section into four subsections to improve readability. Each sealed bidder is required to submit an earnest money deposit of five percent of the bid amount, and bidders who fail to enter into a contract to purchase, or default in the payment of the bid amount, will forfeit the deposit. Section 8 - Amends AS 38.05.065(a) to a longer term of 30 years. This longer term allows for lower monthly payments to better assist in higher value purchases. Sections 9 12 - Amend AS 38.05.065(c), (d), (e), and (f) to replace the word "foreclosure" with "termination". Foreclosures are an instrument of financial institutions rather than state agencies. Section 13 14 - Amend AS 38.05.065(h) for consistency pertaining to contracts for state land disposals. New subsections (j) and (k) require an earnest money deposit by persons applying to purchase land by means other than public auction or sealed bid. The earnest money requirement in cases of auction or bid is addressed in AS 38.05.055, as amended by the bill. The new subsections would apply a similar earnest money requirement to applicants for other methods of purchasing land under AS 38.05. The commissioner may, upon a best interest finding, determine that the purchase price for a parcel of land with existing improvements valued at greater than $10,000 must be paid in full within 120 days of closing. Section 15 - Amends AS 38.05 by adding a new section AS 38.05.086 pertaining to leases and sales of land for commercial development. The new statute supports commercial or industrial development of state land nominated and assessed by the state as appropriate for commercial development. Land could also be nominated by the public. The statute includes a process for requesting proposals from prospective lessees, accepting bids, and then entering a contract to lease. This statute allows the lessee to apply to purchase the leased land at any time during the term of the lease if the department determines the lessee has used the land for commercial development consistent with their proposal. The new section also requires notice to Native Corporation stakeholders. Section 16 - Amends AS 38.05.321(d) to allow uses on conveyed agricultural land that are not inconsistent with and do not limit its use for agricultural purposes. Currently, AS 38.05.321(d) prohibits the commissioner of DNR from limiting use of such land for purposes incidental to and not inconsistent with agricultural purposes. This section would eliminate the requirement that uses be incidental to agricultural purposes. Section 17 - Amends AS 38.05.965 to add the definition of "public auction" to expressly include online auctions in addition to oral outcry auctions. Section 18 - Repeals AS 38.05.065(b), regarding the contract of sale for land sold under AS 38.05.057 and the terms of installment payments. This is a conforming amendment to account for the changes made under section 13 of the bill. Section 19 Provides an immediate effective date under AS 01.10.090(c). 1:59:41 PM MS. LONGACRE continued going through the sectional analysis on Section 7, reiterating its contents. 2:04:07 PM MS. LONGACRE concluded on slide 14, titled "Fiscal Note," which read as follows [original punctuation provided]: • FY 2025 $655.4 (5 positions) • Two Permanent Full-Time Natural Resource Specialists 3 • Two Permanent Full-Time Natural Resource Specialist 2 • One Permanent Full-Time Appraiser 1 These positions will support timely adjudication of the expanded Land Sales with Commercial Development program applications • FY 2026-2030 $630.4 annually 2:04:58 PM REPRESENTATIVE STUTES referred to Section 7 and asked for understanding if one wanted to be a bidder, it requires 5 percent of the value that is nonrefundable whether or not the bid is won. MS. LONGACRE clarified that a 5 percent deposit is required for a successful bidder, and if they do not complete their bid and move to purchase, they will default the 5 percent. REPRESENTATIVE STUTES asked if she was an unsuccessful bidder whether she would get her 5 percent back. MS. LONGACRE confirmed she would. 2:05:59 PM REPRESENTATIVE SUMNER brought up installment payments for purchase and asked about the termination of contracts. He also touched on foreclosures. MS. LONGACRE replied that land sale purchase contracts do not transfer equity in the purchase until the final payment. She said the language change from "foreclosure" to "termination" is to support that that is a purchase agreement and not a mortgage. 2:07:27 PM REPRESENTATIVE VANCE referred to Section 13 and asked whether it is new language regarding the agriculture uses and installment payments not exceeding 9.5 percent. MS. LONGACRE replied yes, it is current language not amended through this bill. REPRESENTATIVE VANCE pointed out Section 14, subsection (k) and asked whether it was realistic content. MS. LONGACRE replied that recently, land purchased through the state may be returned for one reason or another. There is a liability associated that the state is assuming, and if the next purchaser damages or creates higher liability, then the state is still "on the hook" for that. REPRESENTATIVE VANCE spoke to Section 15 referencing leases and sales of land for commercial development. She asked whether commercial development is defined in this area of statute. MS. LONGACRE replied there is no definition in the bill or the specific section and that she would follow up about a Title 38 definition of commercial activity. 2:10:29 PM REPRESENTATIVE STUTES questioned, with all the new regulations, whether a sale of state property would go through the appropriate public process. MS. LONGACRE said the bill does not amend any current existing processes. 2:11:29 PM REPRESENTATIVE MINA sought additional background and whether other projects have faced barriers because of the current statute. MS. LONGACRE acknowledged that similar bills had been introduced and had additions made which resulted in hurdles. REPRESENTATIVE MINA sought to know what land DOT&PF owns and what land owned by the Department of Education and Early Development (DEED) would be impacted. MS. LONGACRE replied she would follow up with the committee on the inquiry. 2:13:41 PM CHAIR MCCABE thanked the presenters and discussed future business. [HB 282 was held over.]
Document Name | Date/Time | Subjects |
---|---|---|
HB282.Ver.A.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 282 |
HB282.VerA.SponsorStmt.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
HB282.Ver.A.Sectional Analysis.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
HB282.VerA.FiscalNote.DEED.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
HB282.VerA.FiscalNote.DNR2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
HB255.VerB.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
HB255.SponsorStatement.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
HB 282, SB 199 State Land_Disposal_Sale_ Briefing Paper 02.06.2024.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 SB 199 |
HB 282 DNR State Land_Disposal_Sale_Presentation 02.06.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 282 |
HB 255.SectionalAnalysis.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
HB255.VerB.FiscalNote.DCCED.02.6.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
CSHB255.VerS.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
CSHB255.VerS.SummaryChanges.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |