00 HOUSE BILL NO. 296 01 "An Act providing for certain individuals who have erected a building on land leased 02 from the state to receive a preference right to purchase certain state land without 03 competitive bid." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.035(f) is amended to read: 06 (f) The director shall grant a preference right to the purchase or lease without 07 competitive bid of up to five acres of state land to an individual who has erected a 08 building on the land and used the land for bona fide business purposes for five or more 09 years under a federal permit or without the need for a permit and, after selection by the 10 state, under a state use permit or lease, if the business produced no less than 25 percent 11 of the total income of the applicant for the five years preceding the application to 12 purchase or lease the land. The director shall sell or lease the land at a price 13 determined by the director to represent the current fair market value of the unimproved 14 land but in no event less than the cost of administration including survey if required. If 01 the director determines in a written finding that the purchase or lease of the land would 02 interfere with public use by residents of the area, the director may condition the 03 purchase or lease to mitigate the adverse effects on the public use or may reject the 04 application for the preference right. A lease granted under this subsection may not be 05 for a period in excess of 50 years. [IN THIS SUBSECTION, "BUSINESS 06 PURPOSES" MEANS A PURPOSE PERMITTED UNDER THE 07 CLASSIFICATION OF THE LAND AT THE TIME THE LAND WAS ENTERED.] 08 * Sec. 2. AS 38.05.035 is amended by adding new subsections to read: 09 (p) Where there is an active municipal entitlement selection on state land 10 under AS 29.65.010 - 29.65.030 on which there is a state-issued lease, before the 11 decision to approve the municipal entitlement, the director shall grant a preference 12 right to purchase without competitive bid up to five acres of the state land to an 13 individual lessee who applies for the preference right, has erected a building 14 authorized under the lease on the state land, has used the land for bona fide business 15 purposes for 10 or more years under a state lease, and has received from the business 16 not less than 25 percent of the total income of the individual for the 10 years preceding 17 the application by the individual for the preference right. The director shall sell the 18 land at a price determined by the director to represent the current fair market value of 19 the unimproved land as determined by appraisal and survey paid for by the individual, 20 if an appraisal and survey have not already been completed. If the director determines 21 in a written finding that the sale of the land would interfere with public use by 22 residents of the area, the director may condition the sale to mitigate the adverse effects 23 on the public or may reject the application for the preference right if those effects 24 cannot be mitigated. The director shall separately account for the revenue from the 25 sale of the parcel, and the legislature may appropriate the proceeds from the sale to the 26 municipality that selected the land. 27 (q) In (f) and (p) of this section, 28 (1) "building" means a permanent structure with solid walls, 29 foundation, and roof; 30 (2) "business purposes" means a purpose consistent with the 31 classification of the land at the time the land was entered.