00 SENATE CS FOR CS FOR HOUSE BILL NO. 109(RES) 01 "An Act relating to the management and disposal of state land and resources; 02 relating to certain remote parcel and homestead entry land purchase contracts and 03 patents; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 09.10.120 is amended by adding a new subsection to read: 06 (b) Notwithstanding (a) of this section or any other provision of law, the state 07 may bring an action in the name of or for the benefit of the state to (1) quiet or 08 confirm the state's interests in real property, or (2) protect resources held in trust for 09 the public, at any time. 10 * Sec. 2. AS 38.04.010(b) is amended to read: 11 (b) State land that is located beyond the range of existing schools and other 12 necessary public services, or that is located where development of sources of 13 employment is improbable, may be made available for seasonal recreational purposes 14 or for low density settlement. The seasonal recreation use or low density settlement 01 shall have sufficient separation between residences so that public services will not be 02 necessary or expected. The availability of timber, firewood, and water resources shall 03 be considered in determining separation between residences. By considering the 04 availability of timber, firewood, and water under this subsection or in making any 05 disposal decision, the state does not by virtue of that consideration imply any 06 right of the person receiving the disposal to an exclusive or other right to the 07 timber, firewood, or water, that the state will not make any other disposals in the 08 area, or that any disposals made will be limited in type or any other manner. 09 * Sec. 3. AS 38.04.020(h) is amended to read: 10 (h) Individual parcels disposed of in subdivisions intended for private 11 residential or recreational use may not exceed five acres unless the commissioner 12 determines that a larger size is necessary to comply with municipal ordinances; [,] to 13 permit the design of a viable subdivision because of topographical features, soil 14 conditions, on-site sewage disposal requirements, or water drainage or supply 15 considerations that are unique to the subdivision; to increase the return to the state 16 from the sale of the parcels; [,] to minimize adverse effect on wildlife, fishery, public 17 recreation, timber, or other significant resources in the area; [,] or to minimize adverse 18 effect on other residential uses in the area. 19 * Sec. 4. AS 38.04.020(i) is amended to read: 20 (i) Nothing in this section prevents the disposal of other land by the 21 commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.070, the issuance of 22 remote recreational cabin site leases or sales [PERMITS] under AS 38.05.600 23 [AS 38.05.079], AS 38.08, AS 38.09, or other law. 24 * Sec. 5. AS 38.04.022(a) is amended to read: 25 (a) The revenue from the sale of state land shall be deposited in a special state 26 land disposal income account in the state general fund. The legislature may 27 appropriate money from the special state land disposal income account for expenditure 28 by the Department of Natural Resources for necessary costs incurred by the 29 commissioner in the implementation of state land disposal programs authorized under 30 this title [AND FOR IMPLEMENTATION OF AS 38.04.021]. 31 * Sec. 6. AS 38.04.035 is amended to read: 01 Sec. 38.04.035. Criteria for program selection. In determining which land 02 availability program is appropriate for state land in different locations, the director 03 shall be guided by the following criteria: 04 (1) to cover public costs associated with private land use and to provide 05 the public with a fair return for publicly owned property, conveyance of state land to 06 private parties shall [SHOULD] be at fair market value except where otherwise 07 authorized by statute, or by an administrative regulation the adoption of which is 08 specifically permitted by statute; 09 (2) sale or lease programs should be used where land is readily 10 accessible to a major community center or where, because of a prime location on 11 waterfront or a transportation route or some other location characteristic, land has 12 relatively high real estate value; 13 (3) sale programs are preferred but lease programs may [SHOULD] be 14 used 15 (A) where special land use controls are required and there is a 16 high public interest in having certain types of land used for particular purposes; 17 (B) when the intended use is a temporary one; 18 (C) in commercial or industrial situations when a leasehold can 19 provide cash flow advantages to the lessee; 20 (D) when a unique location with special public values is 21 involved, as in a deep water port, hydroelectric site, or aquaculture facility; 22 (E) where current demand for private use is high, but 23 projections suggest that, in the future, the land may be more valuable for public 24 use, as in accessible waterfront recreation areas; 25 (4) [FOR ENABLING ISOLATED CABIN DEVELOPMENT IN 26 REMOTE LOCATIONS WHERE SURVEY AND CONVEYANCE IS 27 IMPRACTICAL, OR WHERE DISPOSAL OF LAND WOULD CAUSE POTENTIAL 28 CONFLICTS WITH OTHER RESOURCES AND USES, OR WHERE A LONG- 29 RANGE INTEREST IN PUBLIC OWNERSHIP AND USE EXIST, A SYSTEM FOR CABIN 30 PERMITS ON PUBLIC LAND MAY BE USED; 31 (5)] limited or conditional title may be granted when the state's best 01 interest so dictates; among other things, title limitations may include grants of 02 agricultural interest only, retention of development rights, and retention of scenic or 03 other easements; a conditional title may be tied to a development schedule or other 04 standards of performance. 05 * Sec. 7. AS 38.04.045(b) is amended to read: 06 (b) Before the issuance of a long-term lease under AS 38.05.070 or of a patent 07 for state land, an official cadastral survey shall be accomplished, unless a comparable, 08 approved survey exists that has been conducted by the federal Bureau of Land 09 Management. Before land may be offered under AS 38.08 or AS 38.09, or before land 10 may be offered under AS 38.05.055 or 38.05.057, except land that is classified for 11 agricultural uses, an official rectangular survey grid shall be established. The 12 rectangular survey section corner positions shall be monumented and shown on a 13 cadastral survey plat approved by the state. For those areas where the state may wish 14 to convey surface estate outside of an official rectangular survey grid, the 15 commissioner may waive monumentation of individual section corner positions and 16 substitute an official control survey with control points being monumented and shown 17 on control survey plats approved by the state. The commissioner may not issue more 18 than one conveyance for each section within a township outside of an official 19 rectangular survey grid. Land to be conveyed may not be located more than two miles 20 from an official survey control monument except that the commissioner may waive this 21 requirement on a determination that a single purpose use does not justify the 22 requirement if the existing status of the land is known with reasonable certainty. The 23 lots and tracts in state subdivisions shall be monumented and the cadastral survey and 24 plats for the subdivision shall be approved by the state. Where land is located within 25 a municipality with planning, platting, and zoning powers, plats for state subdivisions 26 shall comply with local ordinances and regulations in the same manner and to the same 27 extent as plats for subdivisions by other landowners. State subdivisions shall be filed 28 and recorded in the district recorder's office. The requirements of this section do not 29 apply to land made available [THROUGH A CABIN PERMIT SYSTEM,] for material 30 sales, for short-term leases, for parcels adjoining a surveyed right-of-way, or for land 31 that has been open to random staking under the [REMOTE PARCEL PROGRAM OR] 01 homestead program in the past; however, for short-term leases, the lessee shall comply 02 with local subdivision ordinances unless waived by the municipality under procedures 03 specified by ordinance. In this subsection, "a single purpose use" includes a 04 communication site, an aid to navigation, and a park site. 05 * Sec. 8. AS 38.04.065(h) is amended to read: 06 (h) Before the commissioner adopts a regional land use plan, a land 07 classification may be made on the basis of a site-specific land use plan [, EXCEPT A 08 CLASSIFICATION FOR A LAND DISPOSAL UNDER AS 38.05.057, AS 38.08, OR 09 AS 38.09]. After adoption of a regional land use plan, land classifications shall be 10 made under the plan. 11 * Sec. 9. AS 38.05.050 is amended to read: 12 Sec. 38.05.050. Disposal of land for private ownership. The commissioner 13 shall determine the land to be disposed of for private use. The commissioner shall 14 determine the time and place of disposal. An auction sale, a lottery sale, or a disposal 15 of land for homesites may [SHALL] be held in a community that is near the land to 16 be sold or disposed of. 17 * Sec. 10. AS 38.05.055 is amended to read: 18 Sec. 38.05.055. Auction sale procedures. Unless another method of sale is 19 required under this chapter, [AS 38.07, OR] AS 38.08, or AS 38.09, the sale of state 20 land shall be made at public auction to the highest qualified bidder as determined by 21 the director. The director may accept bids and sell state land under this section at no 22 less than 70 percent of the appraised fair market value of the land. To qualify to 23 participate under this section in a public auction of state land that is other than 24 commercial, industrial, or agricultural land, a bidder shall have been a resident of the 25 state for at least one year immediately preceding the date of the auction and submit 26 proof of that fact, as the commissioner requires by regulation. [A BIDDER MUST 27 APPEAR IN PERSON AT THE AUCTION UNLESS MEDICAL REASONS, 28 ATTENDANCE AT SCHOOL, OR MILITARY SERVICE OUTSIDE THE STATE 29 PREVENT ATTENDANCE.] A bidder may be represented by an attorney or agent 30 at the auction [IF THE LAND OFFERED FOR DISPOSAL IS COMMERCIAL, 31 INDUSTRIAL, OR AGRICULTURAL LAND]. An aggrieved bidder may appeal to 01 the commissioner within five days after the sale for a review of the director's 02 determination. The sale shall be conducted by the director, and, at the time of sale, 03 the successful bidder shall deposit an amount equal to five percent of the purchase 04 price. The director shall immediately issue a receipt containing a description of the 05 land or property purchased, the price bid, and the amount deposited. The receipt shall 06 be acknowledged in writing by the bidder. 07 * Sec. 11. AS 38.05.057(a) is amended to read: 08 (a) The commissioner may dispose of land, including land limited to use for 09 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 10 the fair market value of the land as determined by the commissioner. The 11 commissioner may sell land by lottery for less than the fair market value of the land 12 on a determination that scarcity of land for private use in the area of the land to be 13 sold has resulted in unrealistic land values. [THE COMMISSIONER SHALL 14 CONSULT WITH THE ASSESSOR OF A MUNICIPALITY BEFORE 15 DETERMINING THE PURCHASE PRICE FOR LAND THAT IS LOCATED IN 16 THE MUNICIPALITY AND THAT IS TO BE SOLD UNDER THIS SECTION.] The 17 lottery shall be conducted in public by the commissioner. A [AN APPLICANT MAY 18 NOT BE SELECTED TO PURCHASE LAND UNLESS THE APPLICANT IS 19 PRESENT ON THE DATE AND AT THE PLACE THAT THE LOTTERY IS 20 CONDUCTED UNLESS MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 21 MILITARY SERVICE OUTSIDE THE STATE PREVENT ATTENDANCE. AN 22 APPLICANT MAY BE REPRESENTED BY AN AGENT ON THE DAY OF THE 23 LOTTERY IF THE LAND OFFERED FOR SALE IS COMMERCIAL, 24 INDUSTRIAL, OR AGRICULTURAL LAND. ON THE DAY OF THE LOTTERY 25 A] purchaser selected by lot shall deposit an amount equal to five percent of the 26 purchase price within 30 days after receiving notification of the selection. 27 * Sec. 12. AS 38.05.065(a) is amended to read: 28 (a) The contract of sale for land sold at public auction under AS 38.05.055 29 shall require the remainder of the purchase price to be paid in monthly, quarterly, or 30 annual installments over a period of not more than 20 years, with interest at the 31 [PREVAILING] rate provided in (i) of this section [FOR REAL ESTATE 01 MORTGAGE LOANS MADE BY THE FEDERAL LAND BANK FOR THE FARM 02 CREDIT DISTRICT FOR ALASKA AT THE TIME THE CONTRACT IS SIGNED]. 03 Installment payments plus interest shall be set on the level-payment basis. 04 * Sec. 13. AS 38.05.065(b) is amended to read: 05 (b) The contract of sale for land sold under AS 38.05.057 or under former 06 AS 38.05.078 shall require the remainder of the purchase price to be paid in monthly, 07 quarterly, or annual installments over a period of not more than 20 years. Installment 08 payments plus interest shall be set on the level-payment basis. The interest rate to be 09 charged on installment payments is the [PREVAILING] rate provided in (i) of this 10 section [FOR REAL ESTATE MORTGAGE LOANS MADE BY THE FEDERAL 11 LAND BANK FOR THE FARM CREDIT DISTRICT FOR ALASKA AT THE TIME 12 THE CONTRACT IS SIGNED]. 13 * Sec. 14. AS 38.05.065 is amended by adding a new subsection to read: 14 (i) The interest rate for contracts under this section is the prime rate as 15 reported in the Wall Street Journal on the first business day of the month in which the 16 contract is sent to the purchaser for signature, plus three percent; however, the total 17 rate of interest may not exceed 18 (1) 9.5 percent, in contracts for the sale of land classified under 19 AS 38.05.020(b)(6) for agricultural uses; or 20 (2) 13.5 percent, in other contracts for the sale of land. 21 * Sec. 15. AS 38.05.067(d) is amended to read: 22 (d) This section does not apply to the sale of state land under AS 38.05.057, 23 AS 38.08, or [AS 38.04.020(g)(2) AND] AS 38.09. 24 * Sec. 16. AS 38.05.069(e)(2) is repealed and reenacted to read: 25 (2) "adjacent" means that a tract of land has one common boundary 26 point with presently held land or is separated from the presently held land only by a 27 physical barrier such as a road or stream. 28 * Sec. 17. AS 38.05.075(a) is amended to read: 29 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, [38.05.079,] 30 38.05.082, 38.05.083, 38.05.087, 38.05.102, 38.05.600, 38.05.810, and this section, 31 leasing shall be made at public auction to the highest qualified bidder as determined 01 by the commissioner. In the public notice of a lease to be offered at public auction, 02 the commissioner shall specify a minimum acceptable bid and the lease compensation 03 method. The lease compensation method shall be designed to maximize the return on 04 the lease to the state and shall be a form of compensation set out in AS 38.05.073(m). 05 An aggrieved bidder may appeal to the commissioner within five days for a review of 06 the determination. The leasing shall be conducted by the commissioner and the 07 successful bidder shall deposit at the auction the first year's rental or other lease 08 compensation as specified by the commissioner, or that portion of it that the 09 commissioner requires in accordance with the bid. The commissioner shall require, 10 under AS 38.05.860, qualified bidders to deposit a sum equal to any survey or 11 appraisal costs reasonably incurred by another qualified bidder acting in accordance 12 with the regulations of the commissioner or incurred by the department under 13 AS 38.04.045 and AS 38.05.840. If a bidder making a deposit of survey or appraisal 14 costs is determined by the commissioner to be the highest qualified bidder under this 15 subsection, the deposit shall be paid to the unsuccessful bidder who incurred those 16 costs or to the department if the department incurred the costs. All costs for survey 17 and appraisal shall be approved in advance in writing by the commissioner. The 18 commissioner shall immediately issue a receipt containing a description of the land or 19 interest leased, the price bid, and the terms of the lease to the successful qualified 20 bidder. If the receipt is not accepted in writing by the bidder under this subsection, 21 the commissioner may offer the land for lease again under this subsection. A lease, 22 on a form approved by the attorney general, shall be signed by the successful bidder 23 and by the commissioner within the period specified in the auction notice. 24 * Sec. 18. AS 38.05.075(c) is amended to read: 25 (c) The owner or lessee of land that fronts on shoreland, tideland, [TIDE] or 26 submerged land of the state may be granted a preference right to [IS ENTITLED 27 TO ACQUIRE] a lease for the shoreland, tideland, or [TIDE AND] submerged land 28 without competitive bidding if the director determines that 29 (1) the lease of the shoreland, tideland, [TIDE] or submerged land is 30 necessary to facilitate water transportation of goods, services, or resources to or from 31 the owned or leased upland or for another water-dependent purpose; 01 (2) the proposed use of the shoreland, tideland, [TIDE] or submerged 02 land is compatible with the classification of the land and with any applicable land use 03 plan adopted under AS 38.04.065; and 04 (3) issuance of the lease to the shoreland, tideland, [TIDE] or 05 submerged land will not interfere with prior existing rights to the leased land. 06 * Sec. 19. AS 38.05.075(d) is amended to read: 07 (d) If the commissioner issues a lease under (c) of this section, the right of 08 access to the shoreland, tideland, or [TIDE AND] submerged land shall be 09 nonexclusive in the lessee unless the commissioner grants the lessee the exclusive right 10 to use the shoreland, tideland, or [TIDE AND] submerged land. 11 * Sec. 20. AS 38.05.083 is repealed and reenacted to read: 12 Sec. 38.05.083. Aquatic farming and hatchery site leases. (a) The 13 commissioner may offer to the public for lease at public auction under AS 38.05.075 14 or by negotiation under AS 38.05.070 a site for aquatic farming or related hatchery 15 operations. Before a final decision to issue or renew a lease under this section, the 16 commissioner shall give notice and allow opportunity for comment in accordance with 17 AS 38.05.945 and may hold a hearing to take testimony. Before a final decision to 18 issue or renew a lease under this section, the commissioner shall consider all relevant 19 comment or testimony submitted under this section, AS 38.05.945, or 38.05.946. 20 (b) The commissioner, for good cause, may deny an application for issuance 21 or renewal of a lease under this section but shall provide the applicant with written 22 findings that explain the reasons for the denial. 23 (c) A site may be leased under this section for not less than the appraised fair 24 market value of the lease. The value of the lease shall be reappraised every five years. 25 (d) A lease under this section may be assigned, but, if the assignee changes 26 the use of the site, the lease reverts to the state. 27 (e) Before entering into a lease under this section, the commissioner shall 28 require the lessee to post a performance bond or provide other security to cover the 29 costs to the department of restoring the leased site in the event the lessee abandons the 30 site. 31 (f) The commissioner shall adopt regulations establishing criteria for the 01 approval or denial of leases under this section and for limiting the number of sites for 02 which leases may be issued in an area in order to protect the environment and natural 03 resources of the area. The regulations must provide for the consideration of upland 04 management policies and whether the proposed use of a site is compatible with the 05 traditional and existing uses of the area in which the site is located. 06 * Sec. 21. AS 38.05.090 is repealed and reenacted to read: 07 Sec. 38.05.090. Removal or reversion of improvements upon termination 08 of leases. (a) Unless otherwise agreed to in writing by the commissioner, a lessee 09 shall remove from a former leasehold 10 (1) all personal property, including above-ground tanks, transportable 11 buildings, equipment, machinery, tools, and other goods, not belonging to the state, 12 within 30 days after termination of the lease; and 13 (2) all buildings and fixtures, including gravel pads, and below-ground 14 tanks, foundations, and slabs, not belonging to the state, within 60 days after 15 termination of the lease. 16 (b) Unless otherwise agreed to in writing by the commissioner, the lessee shall 17 restore the leasehold to a good and marketable condition, acceptable to the 18 commissioner, within 120 days after termination of the lease. 19 (c) If the lessee does not remove personal property, buildings, and fixtures as 20 required within the time specified under (a) of this section, title to the personal 21 property, buildings, and fixtures that remain automatically vests in the state unless the 22 commissioner elects to remove and dispose of the remaining personal property, 23 buildings, and fixtures of the lessee. The commissioner may assess upon the lessee 24 the cost of removing and disposing of personal property, buildings, and fixtures 25 remaining upon the land. 26 (d) If the lessee does not restore the land within the time period specified 27 under (b) of this section, the commissioner may have the land restored and assess the 28 costs upon the lessee. 29 (e) As part of a lease agreement, and in order to protect the public interest, the 30 commissioner may require terms for removal or reversion of improvements additional 31 to those specified in (a) - (d) of this section. 01 (f) Private residential improvements of a lessee that have become fixtures of 02 the land and that are not removed by that lessee upon termination of the lease shall be 03 purchased by the subsequent purchaser of the land if the improvements were 04 authorized in the former lease or by permit from the director and if they have a net 05 value of more than $10,000. The net value is the value of the improvements as 06 determined by an appraisal approved by the commissioner, less all rents due the 07 department, all costs of restoration under (d) of this section, and all department 08 expenses estimated to be incurred in making the sale. After termination of the former 09 lessee's lease, and at additional times as determined necessary by the commissioner, 10 the value of the authorized residential fixtures shall be determined by an independent 11 appraisal made at the cost of the former lessee. A notice or offer by the state to sell 12 formerly leased land under this subsection must state (1) the appraised value of 13 authorized residential fixtures remaining on the land that must be purchased, and (2) 14 that that cost is included in the purchase price. Out of the proceeds of the sale, the 15 department shall pay to the former lessee the appraised value of the residential 16 improvements, less all rents due the department, all costs of restoration due the 17 department under (d) of this section, and all department expenses incurred in making 18 the sale. 19 (g) Personal property described in (c) of this section is not subject to AS 34.45 20 (Uniform Unclaimed Property Act). 21 * Sec. 22. AS 38.05.131(a) is amended to read: 22 (a) Unless specifically provided otherwise in AS 38.05.132 - 38.05.134, the 23 provisions of AS 38.05.005 - 38.05.037 [AS 38.05.005 - 38.05.040], 38.05.140(f), 24 38.05.180, 38.05.182 - 38.05.184, and 38.05.920 - 38.05.990 apply to the issuance of 25 oil and gas exploration licenses and leases under AS 38.05.132 - 38.05.134. 26 * Sec. 23. AS 38.05 is amended by adding a new section to read: 27 Article 12A. Remote Recreational Cabin Site Sales and Leases. 28 Sec. 38.05.600. Remote recreational cabin sites. (a) The commissioner may 29 provide for the sale or lease of state land for remote recreational cabin sites. Sales 30 under this section shall be at fair market value determined as of the time of entry, and 31 the purchaser shall reimburse the state for the appraisal, survey, and platting costs for 01 the recreational cabin site. 02 (b) The annual fee for a remote recreational cabin site lease shall be set by the 03 commissioner so as to ensure that the state receives a fair return for the use granted 04 by the lease for the term of the lease. The commissioner shall establish regulations 05 that specify the application procedures for and the terms and conditions of a remote 06 recreational cabin site lease. A lease must be for a term of not more than five years, 07 and may be renewed for one additional five-year period. At any time during the lease, 08 the lessee may purchase the remote recreational cabin site by having the site appraised 09 and surveyed in a manner acceptable to the department and by paying to the state the 10 fair market value for the site determined as of the time of entry. The lease may not 11 be assigned by the original lessee during the term of the lease. 12 (c) A remote recreational cabin site lease may be terminated by the 13 commissioner before the expiration of the term of the lease if a lessee fails to use the 14 land under lease in the manner required by the terms of the lease. After termination 15 of a remote recreational cabin site lease, improvements or personal property on the 16 land subject to the lease shall be managed in the same manner as required by 17 AS 38.05.090. 18 * Sec. 24. AS 38.05.810(a) is amended to read: 19 (a) Except as otherwise provided in AS 38.05.183(h), the (1) lease, sale, or 20 other disposal of state land or resources may be made to a state or federal agency or 21 political subdivision, (2) [THE] lease, sale, or disposal of coal deposits suitable for 22 mining may be made to a utility owned and operated by a government agency or 23 nonprofit cooperative association organized to participate under the Federal Rural 24 Electrification Act for the purpose of generating electric power and energy or the 25 production of process steam, or both, (3) [OR THE] sale or other disposal of state land 26 may be made to a tax-exempt, nonprofit corporation, association, club, or society 27 organized and operated [EXCLUSIVELY] for the management of a cemetery or a solid 28 waste or other public facility, or (4) sale or other disposal of land within a state 29 subdivision may be made to that subdivision's nonprofit, tax-exempt homeowners' 30 association, for less than the appraised value as determined by the director and 31 approved by the commissioner to be fair and proper and in the best interests of the 01 public, with due consideration given to the nature of the public services or function 02 rendered by the applicant [AGENCY, SUBDIVISION, TAX-EXEMPT, NONPROFIT 03 CORPORATION, ASSOCIATION, CLUB, OR SOCIETY, OR UTILITY MAKING 04 APPLICATION], and of the terms of the grant under which the land was acquired by 05 the state. The commissioner shall ensure, by regulation, deed restriction, covenant, 06 or otherwise, that disposals of land under this subsection serve a public purpose 07 and are in the public interest. 08 * Sec. 25. AS 38.05.840(a) is amended to read: 09 (a) Land may not be sold or leased, or a renewal lease issued, except in the 10 case of an oil or gas or mineral lease, unless it has been appraised within two years 11 [ONE YEAR] before the date fixed for the sale or lease. When land is offered at 12 public sale but is not sold and is available at private sale, a reappraisal is not required 13 unless the director considers that a change in value of the land may have occurred. 14 A grazing lease may be granted to a lessee of federal grazing land without prior 15 appraisal [,] if the federal lease was cancelled to allow the state to select the land 16 under lease. Land may not be sold or leased for less than the approved, appraised 17 market value, except as provided in AS 38.05.055, 38.05.057, 38.05.075 - 38.05.085, 18 38.05.097, 38.05.810, and 38.05.820. 19 * Sec. 26. AS 38.05.850(a) is amended to read: 20 (a) The director, without the prior approval of the commissioner, may issue 21 permits, rights-of-way, or easements on state land for roads, trails, ditches, field 22 gathering lines or transmission and distribution pipelines not subject to AS 38.35, 23 telephone or electric transmission and distribution lines, log storage, oil well drilling 24 sites and production facilities for the purposes of recovering minerals from adjacent 25 land under valid lease, and other similar uses or improvements, or revocable, 26 nonexclusive permits for the [LIMITED] personal or commercial use or removal of 27 resources that the director has determined to be of limited value [OF TIMBER OR 28 MATERIALS]. The commissioner, upon recommendation of the director, shall 29 establish a reasonable rate or fee schedule to be charged for these uses, subject to the 30 exception for nonprofit cooperative associations specified in (b) of this section. In the 31 granting, suspension, or revocation of a permit or easement of land, the director shall 01 give preference to that use of the land that [WHICH] will be of greatest economic 02 benefit to the state and the development of its resources. However, first preference 03 shall be granted to the upland owner for the use of a tract of tideland, or tideland and 04 contiguous submerged land, that [WHICH] is seaward of the upland property of the 05 upland owner and that [WHICH] is needed by the upland owner for any of the 06 purposes for which the use may be granted. 07 * Sec. 27. AS 38.05.945(a) is amended to read: 08 (a) This section establishes the requirements for notice given by the department 09 for the following actions: 10 (1) classification or reclassification of state land under AS 38.05.300 11 and the closing of land to mineral leasing or entry under AS 38.05.185; 12 (2) zoning of land under applicable law; 13 (3) issuance of a 14 (A) preliminary written finding under AS 38.05.035(e)(5)(A) 15 regarding the sale, lease, or disposal of an interest in state land or resources for 16 oil and gas subject to AS 38.05.180(b); 17 (B) final written finding under AS 38.05.035(e)(5)(B) regarding 18 the sale, lease, or disposal of an interest in state land or resources for oil and 19 gas subject to AS 38.05.180(b); 20 (C) written finding for the sale, lease, or disposal of an interest 21 in state land or resources under AS 38.05.035(e)(6), except an oil or gas lease 22 sale described in AS 38.05.035(e)(6)(G) for which the director must provide 23 opportunity for public comment under the provisions of that subparagraph; 24 (4) a competitive disposal of an interest in state land or resources after 25 final decision under AS 38.05.035(e); 26 (5) [A PUBLIC HEARING UNDER AS 38.05.856(b); 27 (6)] a preliminary finding under AS 38.05.035(e) [AND 38.05.855(c)] 28 concerning sites for aquatic farms and related hatcheries; 29 (6) [(7)] a decision under AS 38.05.132 - 38.05.134 regarding the sale, 30 lease, or disposal of an interest in state land or resources. 31 * Sec. 28. AS 38.05.945(d) is amended to read: 01 (d) Notice at least 30 days before action under (a)(5) [OR (6)] of this section 02 shall be given to appropriate 03 (1) regional fish and game councils established under AS 16.05.260; 04 and 05 (2) coastal resource service areas organized under AS 46.40.110 - 06 46.40.210. 07 * Sec. 29. AS 38.08.030(b) is amended to read: 08 (b) Fees for filing an application may not exceed $25 [$10]. 09 * Sec. 30. AS 38.08.040(a) is amended to read: 10 (a) An applicant meeting the qualifications for homesite entry under 11 AS 38.08.030 and selected under (f) of this section shall be issued a revocable permit 12 to occupy and improve the homesite in order to qualify for issuance of patent as 13 provided in this chapter. The holder of a homesite entry permit shall pay, in 14 advance, an annual rental fee of $100. [THE APPLICATION FEE IS THE SOLE 15 RENT CHARGEABLE ON THE PERMIT FOR ITS DURATION.] 16 * Sec. 31. AS 38.08.040 is amended by adding a new subsection to read: 17 (f) If only one application for a homesite parcel is received, the commissioner 18 shall offer an entry permit for the parcel to the applicant provided the applicant is 19 otherwise qualified. If more than one application is received for a parcel, the 20 commissioner shall select by lottery the applicant who is entitled to receive the permit 21 for the parcel. The lottery shall be conducted under regulations adopted by the 22 commissioner that are to the maximum extent practicable consistent with the provisions 23 of AS 38.05.057 and the regulations adopted under that section. 24 * Sec. 32. AS 38.09.010(g) is amended to read: 25 (g) The commissioner may limit the number of persons permitted to obtain 26 [STAKE] homestead entries within an area designated under (a) of this section by a 27 lottery of qualified applicants. [THE COMMISSIONER MAY CONDUCT A 28 LOTTERY HELD UNDER THIS SUBSECTION IN THE COMMUNITY THAT IS 29 CLOSEST TO THE AREA DESIGNATED FOR HOMESTEAD ENTRY. THE 30 COMMISSIONER MAY REQUIRE THAT EACH PARTICIPANT IN THE 31 LOTTERY BE PRESENT UNLESS ATTENDANCE AT THE LOTTERY IS 01 PREVENTED BY 02 (1) MEDICAL REASONS, ATTENDANCE AT SCHOOL, OR 03 MILITARY SERVICE OUTSIDE THE STATE; OR 04 (2) A MANDATORY, UNAVOIDABLE EMPLOYMENT 05 COMMITMENT DETERMINED VALID BY THE COMMISSIONER BEFORE THE 06 SALE.] 07 * Sec. 33. AS 38.09.030(a) is amended to read: 08 (a) An applicant for a homestead entry permit shall 09 (1) submit proof acceptable to the commissioner that the applicant is 10 at least 18 years of age and has been a resident of the state for not less than one year 11 immediately before the date of application; 12 (2) pay a fee of $5 per acre according to the description provided by 13 the applicant if the entry is on land classified agricultural, or $10 per acre if the 14 entry is on land not classified agricultural; 15 (3) agree to comply with the requirements of AS 38.09.050; 16 (4) certify that the corners of the land entered have been staked and the 17 boundaries have been flagged; or 18 (5) assume full responsibility for the accuracy of the description of the 19 land filed with the commissioner under AS 38.09.020(b). 20 * Sec. 34. AS 38.09.050(b) is amended to read: 21 (b) Nothing in this chapter prohibits a homestead entry permit holder from 22 residing in a temporary dwelling on the homestead [BEFORE ERECTION OF THE 23 PERMANENT DWELLING]. 24 * Sec. 35. AS 38.09.090(b) is amended to read: 25 (b) An applicant who complies with AS 38.09.050(a)(2), (4), and (5), 26 [AS 38.09.050(a)(2) - (5)] and who tenders the commissioner an amount equal to five 27 percent of the present fair market value of the land within five years of the issuance 28 of the permit may purchase the land under AS 38.05.065. The purchase price is the 29 fair market value of the land at the time of the purchase. 30 * Sec. 36. AS 38.09 is amended by adding a new section to read: 31 Sec. 38.09.105. Removal of conditions on remote parcel and homestead 01 entry land. (a) The commissioner may not include the conditions of former 02 AS 38.05.078(d) in a remote parcel purchase contract issued on or after the effective 03 date of this section. 04 (b) The commissioner shall amend a remote parcel or homestead entry land 05 purchase contract or patent issued before the effective date of this section to remove 06 the conditions of former AS 38.05.078(d) or former AS 38.09.050(e) if the holder of 07 the purchase contract or patent 08 (1) requests the amendment; 09 (2) pays the reasonable administrative costs of the amendment as 10 determined by the commissioner; and 11 (3) pays the difference, as established by the commissioner, between 12 the land's fair market value before the amendment and the estimated fair market value 13 after the amendment. 14 * Sec. 37. AS 38.95 is amended by adding a new section to read: 15 Article 7. No Obligation to Provide Services to Disposals 16 of State Land; No Limitation on Further Disposals. 17 Sec. 38.95.300. Disclaimer applicable to state disposals. Except as otherwise 18 specifically provided, nothing in this title 19 (1) obligates the state to provide services to land that is disposed of by 20 the state, or any grantee of the state, or is the subject of any disposal program; 21 (2) limits the authority of the state to dispose of land or any interest 22 in land or resources in the area of the current disposal, provides any exclusive right 23 or interest in the area of the disposal, or implies or requires that any disposals made 24 will be limited in type or any other manner. 25 * Sec. 38. AS 38.04.021; AS 38.05.040, 38.05.057(g), 38.05.079, 38.05.855, 38.05.856, 26 38.05.946(b); AS 38.08.090; AS 38.09.040(a)(3), 38.09.050(a)(3), 38.09.050(d), 38.09.050(e), 27 38.09.900(3), and 38.09.900(4) are repealed. 28 * Sec. 39. Notwithstanding AS 41.21.120 - 41.21.125, within Township 10 North, Range 29 1 East, Seward Meridian, the commissioner of natural resources may 30 (1) convey a property interest in land to the Alaska Railroad Corporation for 31 the purpose of realigning the railroad in conjunction with the relocation of the Seward 01 Highway, provided that the property interest conveyed must be equivalent to that conveyed 02 to the state-owned railroad under 45 U.S.C. 1201 - 1214 (Alaska Railroad Transfer Act of 03 1982) and shall be held and managed by the Alaska Railroad Corporation under AS 42.40; 04 (2) grant a 300 foot wide highway easement to the Department of 05 Transportation and Public Facilities for the relocated Seward Highway; 06 (3) grant a 100 foot wide utility easement to Chugach Electric Association, 07 Inc., for the relocation of the 115 kilovolt electric transmission line (Federal Power 08 Commission project no. 2170, AA-39417, and ADL 32417) and the electric distribution line 09 (A-029885) located within the Chugach State Park. 10 * Sec. 40. (a) Notwithstanding the decision of the Alaska Supreme Court in Kachemak 11 Bay Watch v. Noah, _____ P.2d _____ (Sup. Ct. No. S-7326; April 11, 1997), the Department 12 of Natural Resources shall issue a lease under AS 38.05.083, as amended by sec. 20 of this 13 Act, to a person who, on April 10, 1997, held a lease issued under AS 38.05.083 as it read 14 on the day before the effective date of this section. Notwithstanding AS 38.05.083, as 15 amended by sec. 20 of this Act, the terms and conditions of a lease issued under this 16 subsection shall be substantially similar to the terms of the lease as it read on the day before 17 the effective date of this section. Notice under AS 38.05.945 and a best interest determination 18 under AS 38.05.035 are not required for the issuance of a lease under this subsection. 19 (b) Notwithstanding the repeal of AS 38.05.856 by sec. 38 of this Act and the decision 20 of the Alaska Supreme Court in Kachemak Bay Watch v. Noah, _____ P.2d _____ (Sup. Ct. 21 No. S-7326; April 11, 1997), the Department of Natural Resources shall allow a person who, 22 (1) on April 10, 1997, held a permit issued under former AS 38.05.856, or (2) on or before 23 April 10, 1997, had timely applied for a renewal of a permit under former AS 38.05.856, that 24 had not been revoked or for which renewal had not been denied, to continue to operate under 25 the terms and conditions of the permit as it read, or would have read, on the day before the 26 effective date of this section if the person applies within 120 days of the effective date of this 27 section for a lease under AS 38.05.083, as amended by sec. 20 of this Act. The department 28 shall provide a preference right to a person applying for a lease under this subsection who has 29 developed an aquatic farm site under former AS 38.05.855 by October 1, 1998. The right of 30 a person to continue to operate under the terms and conditions of a permit continues until the 31 earlier of the date the person's lease application is denied by the department, the date the 01 person is issued a lease by the department, or July 1, 1999. The right of a person to continue 02 to operate under the terms and conditions of a permit as allowed by this subsection is proper 03 notwithstanding a failure of the department to properly identify districts under former 04 AS 38.05.855 before the issuance of the permit. 05 (c) Notwithstanding the repeal of AS 38.05.856 by sec. 38 of this Act and the decision 06 of the Alaska Supreme Court in Kachemak Bay Watch v. Noah, _____ P.2d _____ (Sup. Ct. 07 No. S-7326; April 11, 1997), the Department of Natural Resources shall allow a person who, 08 on or before April 10, 1997, received a final decision from the department to issue to the 09 person a permit under former AS 38.05.856, to operate under the terms and conditions of the 10 permit as it would have read if it had been issued on the day before the effective date of this 11 section if the person applies within 120 days of the effective date of this section for a lease 12 under AS 38.05.083, as amended by sec. 20 of this Act. The department shall provide a 13 preference right to a person applying for a lease under this subsection who has developed an 14 aquatic farm site under former AS 38.05.855 by October 1, 1998. The right of a person to 15 continue to operate under this subsection continues until the earlier of the date the person's 16 lease application is denied by the department, the date the person is issued a lease by the 17 department, or July 1, 1999. The right of a person to continue to operate under this 18 subsection is proper notwithstanding a failure of the department to properly identify districts 19 under former AS 38.05.855 before the issuance of the final decision. 20 * Sec. 41. A disposal by the Department of Natural Resources of a homesite under 21 AS 38.08 by lottery, on or after July 6, 1984, and before the effective date of this section, is 22 valid and effective, notwithstanding the fact that the disposal was by lottery, if the disposal 23 otherwise complied with the requirements of AS 38.08. 24 * Sec. 42. APPLICABILITY. The change to the interest rate to be charged on contracts 25 for the sale of land under AS 38.05.065, made by secs. 12 - 14 of this Act, applies to all 26 contracts under AS 38.05.065 sent by the Department of Natural Resources to purchasers for 27 signature on or after the effective date of secs. 12 - 14 of this Act. 28 * Sec. 43. TRANSITIONAL PROVISIONS: REGULATIONS. (a) Notwithstanding 29 sec. 45 of this Act, the Department of Natural Resources may proceed to adopt regulations 30 necessary to implement the changes made by this Act. The regulations take effect under 31 AS 44.62 (Administrative Procedure Act), but not before July 1, 1997. 01 (b) To the extent they are consistent with AS 38.08, regulations governing the 02 selection of applicants for homesite parcels under AS 38.08 in effect on the effective date of 03 secs. 30 and 31 of this Act remain in effect notwithstanding the amendment to AS 38.08.040, 04 made by secs. 30 and 31 of this Act, until the regulations are amended, repealed, or 05 superseded. 06 * Sec. 44. RETROACTIVE EFFECT. To the maximum extent constitutionally permissible, 07 sec. 1 of this Act is retroactive to January 3, 1959. 08 * Sec. 45. Except for secs. 40 and 43 of this Act, this Act takes effect July 1, 1997. 09 * Sec. 46. Sections 40 and 43 of this Act take effect immediately under AS 01.10.070(c).