00 Enrolled HB 104 01 Relating to timber sales. 02 _______________ 03 * Section 1. AS 38.05.110(c) is amended to read: 04 (c) If a sale of timber may be offered under multiple provisions of 05 AS 38.05.110 - 38.05.120 [AS 38.05.110 - 38.05.123], the commissioner shall 06 determine the applicable provisions under which to offer the timber. 07 * Sec. 2. AS 38.05.113(c) is amended to read: 08 (c) Sales of 160 acres or less and expedited sales conducted under 09 AS 38.05.117 [EMERGENCY SALES] are exempt from the requirements of this 10 section. 11 * Sec. 3. AS 38.05.117 is repealed and reenacted to read: 12 Sec. 38.05.117. Expedited sales for salvage, fire, and pest mitigation. (a) 13 After making a written finding that the disposal will serve the best interests of the state 14 under AS 38.05.035(e), the commissioner may offer, on an expedited basis, timber for 15 sale under this section that the commissioner has determined 01 (1) has lost economic value because of insect infestation, disease, or 02 the effects of fire or fire suppression activities; 03 (2) that, if not harvested within two years, is likely to lose substantial 04 economic value because of insect infestation, disease, or the effects of fire or fire 05 suppression activities; 06 (3) the removal of which will aid in preventing surrounding timber or 07 forested land from losing economic value because of imminent insect infestation or 08 disease; or 09 (4) is located on land that is to be cleared for conversion to nonforest 10 uses. 11 (b) The provisions of AS 38.05.113 do not apply to timber sales conducted 12 under this section. 13 (c) In this section, "forested land" has the meaning given in AS 41.15.170. 14 * Sec. 4. AS 38.05.118 is amended by adding new subsections to read: 15 (d) Notwithstanding AS 38.05.115 and (a) of this section, and upon a written 16 finding that the sale is in the best interest of the state and will promote economic 17 activity in the timber sector or reduce the risk of fire or the spread of disease or insect 18 infestation, the commissioner may negotiate a sale of timber to a local manufacturer of 19 wood products or a user of wood fiber at less than the appraised value. However, 20 while an initial stumpage rate for a contract under this subsection shall be determined 21 by negotiation, the rate may not be less than the base price for the area as established 22 under regulations adopted by the commissioner. A contract under this subsection must 23 provide that a stumpage rate be redetermined by negotiation at least once every five 24 years during the term of the contract to reflect changes in market conditions. The 25 redetermined rate may not be less than the base price for the area as established under 26 regulations adopted by the commissioner. 27 (e) If more than one local manufacturer of wood products or user of wood 28 fiber expresses interest in the same sale of timber under this section, the commissioner 29 may sell the timber by bid under AS 38.05.120. 30 * Sec. 5. AS 38.05.123 is repealed. 31 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 01 read: 02 REPORT TO THE LEGISLATURE. Not later than the 30th day of the Second 03 Regular Session of the Thirty-Fourth Alaska State Legislature, the Department of Natural 04 Resources shall prepare and present a report to the senate secretary and chief clerk of the 05 house of representatives on timber sales conducted by the department under AS 38.05.110 - 06 38.05.120 for the period between July 1, 2024, and June 30, 2025, and notify the legislature 07 that the report is available. The report must 08 (1) include an accounting of timber sales conducted under AS 38.05.110 - 09 38.05.120 that describes each timber sale, including 10 (A) the limitations, conditions, and terms of the sale; 11 (B) whether the sale was a salvage, fire, or pest mitigation sale under 12 AS 38.05.117, as repealed and reenacted by sec. 3 of this Act, a negotiated sale under 13 AS 38.05.118, as amended by sec. 4 of this Act, or another type of sale; 14 (C) if applicable, the amount of time between the publication of the 15 written finding and the timber being offered for sale, and any other factors that 16 extended the period required for publication of the written finding authorizing the sale, 17 if any, or otherwise delayed the sale; and 18 (D) how the department provided notice of the sale; 19 (2) describe and account for any timber sale for which a final best interest 20 finding under AS 38.05.035(e) was issued that did not occur because the timber subject to the 21 sale lost economic value as a result of insect infestation, disease, or fire; 22 (3) include any changes to state statute that the department recommends to 23 make the state's timber available for the maximum benefit of the people of the state in a 24 manner consistent with the public interest; and 25 (4) include any other information that, in the judgment of the department, 26 would be of use to the legislature in improving the state's timber disposal procedures.