00 CS FOR SENATE BILL NO. 6(FIN) 01 "An Act relating to the state land disposal bank; relating to the disposal of state 02 land; providing that at least 75,000 acres of state land shall be offered for 03 disposal annually; and relating to appraisal and survey of state land being sold." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 06 section to read: 07 FINDINGS AND INTENT. (a) The legislature finds that Alaska is rich in natural 08 resources, of which only a few have been developed. Over the past 20 years, the state has 09 become almost solely dependent on oil revenues, which fluctuate drastically depending on 10 world events. It is imperative for the future well-being of our state and its citizens that we 11 develop a more stable source of revenue. 12 (b) It is the intent of the legislature 13 (1) that the Department of Natural Resources immediately embark on a 14 systematic process of identifying land to be sold to the public to promote the development and 01 use of our resources; 02 (2) that the Department of Natural Resources make available for sale not less 03 than 75,000 acres a year from the land disposal bank, commencing as soon as practicable after 04 the effective date of this Act; and 05 (3) to reevaluate this disposal program at the end of five years to determine 06 market conditions and make any appropriate changes consistent with market conditions. 07 * Sec. 2. AS 38.04 is amended by adding a new section to article 2 to read: 08  Sec. 38.04.016. Land Disposal Advisory Committee. (a) The Land Disposal 09 Advisory Committee is established in the Department of Natural Resources. The 10 committee is composed of 11 members. The governor shall appoint five members of 11 the committee. The president of the senate shall appoint three members of the 12 committee. The speaker of the house of representatives shall appoint three members 13 of the committee. Each member serves at the pleasure of the appointing authority. 14 Members of the committee serve without compensation but are entitled to per diem 15 and travel expenses authorized for members of boards and commissions under 16 AS 39.20.180. 17  (b) The committee shall nominate land for inclusion in the land disposal bank 18 under AS 38.04.020(j) in quantities sufficient to satisfy the annual land disposal 19 requirement under AS 38.04.020(a). 20  (c) The committee shall review nominations under AS 38.04.020(j) and the 21 inventory of land in the land disposal bank and shall create a list of parcels in the land 22 disposal bank recommended for disposal. The committee shall submit its list of 23 parcels recommended for disposal to the governor and commissioner in time for the 24 parcels to be considered in the preparation of the commissioner's five-year schedule 25 of planned disposals of land under AS 38.04.020(d). 26 * Sec. 3. AS 38.04.020(a) is amended to read: 27  (a) The commissioner shall establish a land disposal bank containing state land 28 classified for disposal into private ownership.  From this land disposal bank, a 29 minimum of 75,000 acres each year shall be offered for disposal.  30 * Sec. 4. AS 38.04.020(d) is repealed and reenacted to read: 31  (d) At the beginning of each regular legislative session, the commissioner shall 01 submit to the legislature the list of parcels in the land disposal bank recommended for 02 disposal by the land disposal advisory committee under AS 38.04.016(c), and a five- 03 year schedule of planned disposals of land under this section. The schedule shall identify at 04 least 75,000 acres of land to be offered for disposal under (a) of this section each year. In 05 identifying land to be offered for disposal, the commissioner shall consider nominations under 06 (j) of this section and the recommendations of the Land Disposal Advisory Committee. The 07 five-year schedule must include a list of parcels to be offered for disposal each year, 08 categorized by potential use, and the list must include parcels suitable for homesteading, 09 parcels suitable for subdivision, parcels suitable for agricultural, commercial, or industrial use, 10 and parcels suitable for other purposes. The legislature may change the classification or 11 categorization of parcels identified for disposal or remove parcels from the list. The 12 remaining land on the list submitted to the legislature shall be offered for disposal according 13 to the five-year schedule. Land may not be disposed of under this section for less than 70 14 percent of its appraised fair market value. 15 * Sec. 5. AS 38.04.020(j) is amended to read: 16  (j) A person , the Land Disposal Advisory Committee, or an agency of the 17 state may nominate land retained in state ownership for inclusion in the land disposal 18 bank or may nominate land in the land disposal bank for retention in state ownership. 19 The commissioner shall hold public hearings semiannually to take nominations under 20 this subsection. A transfer of land from retention in state ownership to the land 21 disposal bank or from the land disposal bank to retention in state ownership shall be 22 accomplished through a classification order under AS 38.05.300 and with notice under 23 AS 38.05.945. The commissioner shall make a written determination within six 24 months after receipt of a nomination if the commissioner determines that the land 25 nominated will not be classified or reclassified as requested. 26 * Sec. 6. AS 38.04.045 is amended by adding a new subsection to read: 27  (c) Sales of land from the land disposal bank are subject to AS 38.05.064. 28 * Sec. 7. AS 38.04.060(a) is amended to read: 29  (a) The commissioner shall prepare and maintain on a continuing basis an 30 inventory of all state land and water and their resource and other values, giving 31 priority to areas of potential settlement, economic development, and critical 01 environmental concern.  The inventory must identify the land that is in the land 02 disposal bank established under AS 38.04.020. This inventory shall be kept current 03 so as to reflect changes in conditions and to identify new and emerging resource and 04 other values. 05 * Sec. 8. AS 38.05.055 is amended to read: 06  Sec. 38.05.055. Auction sale procedures. Unless another method of sale is 07 required under this chapter, AS 38.08, or AS 38.09, the sale of state land shall be 08 made at public auction to the highest qualified bidder as determined by the director. 09 The director may accept bids and sell state land under this section at no less than 70 10 percent of the appraised fair market value of the land. To qualify to participate under 11 this section in a public auction of state land that is other than commercial, industrial, 12 or agricultural land, a bidder shall have been a resident of the state for at least one 13 year immediately preceding the date of the auction and submit proof of that fact, as 14 the commissioner requires by regulation. A bidder may be represented by an attorney 15 or agent at the auction. An aggrieved bidder may appeal to the commissioner within 16 five days after the sale for a review of the director's determination. The sale shall be 17 conducted by the director, and, at the time of sale, the successful bidder shall deposit 18 an amount  specified by the director equal to  at least five percent  and no more than 19 25 percent of the purchase price. The director shall immediately issue a receipt 20 containing a description of the land or property purchased, the price bid, and the 21 amount deposited. The receipt shall be acknowledged in writing by the bidder. 22 * Sec. 9. AS 38.05.057(a) is amended to read: 23  (a) The commissioner may dispose of land, including land limited to use for 24 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 25 the fair market value of the land as determined by the commissioner. The 26 commissioner may sell land by lottery for less than the fair market value of the land 27 on a determination that scarcity of land for private use in the area of the land to be 28 sold has resulted in unrealistic land values. The lottery shall be conducted in public 29 by the commissioner. A purchaser selected by lot shall deposit an amount  specified 30 by the director equal to  at least five percent  and no more than 25 percent of the 31 purchase price within 30 days after receiving notification of the selection. 01 * Sec. 10. AS 38.05.057(f) is amended to read: 02  (f) If only one application for a parcel is received, the commissioner shall offer 03 the parcel to the applicant who applied for the parcel if the applicant is qualified to 04 participate in the lottery. If more than one application is received for a parcel, the 05 commissioner shall select the applicant who is entitled to receive a conveyance of the 06 land by lottery. If the commissioner does not receive an application for a parcel of 07 state land ,  [OR] if a purchaser fails to sign a [LEASE AGREEMENT OR] contract of 08 sale,  or if a parcel previously disposed of under this section has been reacquired 09 by the state through foreclosure,  the parcel shall be offered to the first eligible 10 person to apply for the parcel. [IF THE PARCEL WAS DESIGNATED AS A 11 HOMESITE AND OFFERED TO THE PUBLIC UNDER FORMER AS 38.05.047(f), 12 THE PARCEL SHALL BE DISPOSED OF UNDER THE TERMS REQUIRED BY 13 AS 38.08.] 14 * Sec. 11. AS 38.05.060 is amended to read: 15  Sec. 38.05.060. Rejection of bids. Before the signing of the formal 16 conveyance by the director, the commissioner may reject all bids when the best 17 interests of the state justify this action. Land offered at public sale but not sold , land 18 for which a purchaser fails to sign a contract of sale, or land previously disposed 19 of but reacquired by the state through foreclosure  may be made available at private 20 sale for not less than its appraised value. 21 * Sec. 12. AS 38.05 is amended by adding a new section to read: 22  Sec. 38.05.064. Appraisal and survey. The commissioner shall require a 23 purchaser of land, whether the purchase is by auction, lottery, or other means, to 24 provide, at the purchaser's expense, an appraisal and survey of the land, completed in 25 the manner directed by the commissioner or, if an appraisal or survey has already been 26 completed by the state, to reimburse the state for the cost of the survey, the appraisal, 27 or both.