00 HOUSE BILL NO. 109 01 "An Act relating to the lease and sale of state land for recreational cabin sites; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 38.04.020(i) is amended to read: 05 (i) Nothing in this section prevents the disposal of other land by the 06 commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.070, the issuance of 07 [REMOTE] recreational cabin site leases or sales under AS 38.05.600, AS 38.08, 08 AS 38.09, or other law. 09  * Sec. 2. AS 38.05.035(e) is amended to read:  10 (e) Upon a written finding that the interests of the state will be best served, the 11 director may, with the consent of the commissioner, approve contracts for the sale, 12 lease, or other disposal of available land, resources, property, or interests in them. In 13 approving a contract under this subsection, the director need only prepare a single 14 written finding. In addition to the conditions and limitations imposed by law, the 01 director may impose additional conditions or limitations in the contracts as the director 02 determines, with the consent of the commissioner, will best serve the interests of the 03 state. The preparation and issuance of the written finding by the director are subject to 04 the following:  05 (1) with the consent of the commissioner and subject to the director's 06 discretion, for a specific proposed disposal of available land, resources, or property, or 07 of an interest in them, the director, in the written finding, 08 (A) shall establish the scope of the administrative review on 09 which the director's determination is based, and the scope of the written 10 finding supporting that determination; the scope of the administrative review 11 and finding may address only reasonably foreseeable, significant effects of the 12 uses proposed to be authorized by the disposal; 13 (B) may limit the scope of an administrative review and finding 14 for a proposed disposal to 15 (i) applicable statutes and regulations; 16 (ii) the facts pertaining to the land, resources, or 17 property, or interest in them, that the director finds are material to the 18 determination and that are known to the director or knowledge of which 19 is made available to the director during the administrative review; and 20 (iii) issues that, based on the statutes and regulations 21 referred to in (i) of this subparagraph, on the facts as described in (ii) of 22 this subparagraph, and on the nature of the uses sought to be authorized 23 by the disposal, the director finds are material to the determination of 24 whether the proposed disposal will best serve the interests of the state; 25 and 26 (C) may, if the project for which the proposed disposal is 27 sought is a multiphased development, limit the scope of an administrative 28 review and finding for the proposed disposal to the applicable statutes and 29 regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 30 pertain solely to the disposal phase of the project when 31 (i) the only uses to be authorized by the proposed 01 disposal are part of that phase; 02 (ii) the disposal is a disposal of oil and gas, or of gas 03 only, and, before the next phase of the project may proceed, public 04 notice and the opportunity to comment are provided under regulations 05 adopted by the department; 06 (iii) the department's approval is required before the 07 next phase of the project may proceed; and 08 (iv) the department describes its reasons for a decision 09 to phase; 10 (2) the director shall discuss in the written finding prepared and issued 11 under this subsection the reasons that each of the following was not material to the 12 director's determination that the interests of the state will be best served: 13 (A) facts pertaining to the land, resources, or property, or an 14 interest in them other than those that the director finds material under (1)(B)(ii) 15 of this subsection; and 16 (B) issues based on the statutes and regulations referred to in 17 (1)(B)(i) of this subsection and on the facts described in (1)(B)(ii) of this 18 subsection; 19 (3) a written finding for an oil and gas lease sale or gas only lease sale 20 under AS 38.05.180 is subject to (g) of this section; 21 (4) a contract for the sale, lease, or other disposal of available land or 22 an interest in land is not legally binding on the state until the commissioner approves 23 the contract, but if the appraised value is not greater than $50,000 in the case of the 24 sale of land or an interest in land, or $5,000 in the case of the annual rental of land or 25 interest in land, the director may execute the contract without the approval of the 26 commissioner; 27 (5) public notice requirements relating to the sale, lease, or other 28 disposal of available land or an interest in land for oil and gas, or for gas only, 29 proposed to be scheduled in the five-year oil and gas leasing program under 30 AS 38.05.180(b), except for a sale under (6)(F) of this subsection, are as follows: 31 (A) before a public hearing, if held, or in any case not less than 01 180 days before the sale, lease, or other disposal of available land or an interest 02 in land, the director shall make available to the public a preliminary written 03 finding that states the scope of the review established under (1)(A) of this 04 subsection and includes the applicable statutes and regulations, the material 05 facts and issues in accordance with (1)(B) of this subsection, and information 06 required by (g) of this section, upon which the determination that the sale, 07 lease, or other disposal will serve the best interests of the state will be based; 08 the director shall provide opportunity for public comment on the preliminary 09 written finding for a period of not less than 60 days; 10 (B) after the public comment period for the preliminary written 11 finding and not less than 90 days before the sale, lease, or other disposal of 12 available land or an interest in land for oil and gas or for gas only, the director 13 shall make available to the public a final written finding that states the scope of 14 the review established under (1)(A) of this subsection and includes the 15 applicable statutes and regulations, the material facts and issues in accordance 16 with (1) of this subsection, and information required by (g) of this section, 17 upon which the determination that the sale, lease, or other disposal will serve 18 the best interests of the state is based; 19 (6) before a public hearing, if held, or in any case not less than 21 days 20 before the sale, lease, or other disposal of available land, property, resources, or 21 interests in them other than a sale, lease, or other disposal of available land or an 22 interest in land for oil and gas or for gas only under (5) of this subsection, the director 23 shall make available to the public a written finding that, in accordance with (1) of this 24 subsection, sets out the material facts and applicable statutes and regulations and any 25 other information required by statute or regulation to be considered upon which the 26 determination that the sale, lease, or other disposal will best serve the interests of the 27 state was based; however, a written finding is not required before the approval of 28 (A) a contract for a negotiated sale authorized under 29 AS 38.05.115; 30 (B) a lease of land for a shore fishery site under AS 38.05.082; 31 (C) a permit or other authorization revocable by the 01 commissioner; 02 (D) a mineral claim located under AS 38.05.195; 03 (E) a mineral lease issued under AS 38.05.205; 04 (F) an exempt oil and gas lease sale or gas only lease sale under 05 AS 38.05.180(d) of acreage subject to a best interest finding issued within the 06 previous 10 years or a reoffer oil and gas lease sale or gas only lease sale under 07 AS 38.05.180(w) of acreage subject to a best interest finding issued within the 08 previous 10 years, unless the commissioner determines that substantial new 09 information has become available that justifies a supplement to the most recent 10 best interest finding for the exempt oil and gas lease sale or gas only lease sale 11 acreage and for the reoffer oil and gas lease sale or gas only lease sale acreage; 12 however, for each oil and gas lease sale or gas only lease sale described in this 13 subparagraph, the director shall call for comments from the public; the 14 director's call for public comments must provide opportunity for public 15 comment for a period of not less than 30 days; if the director determines that a 16 supplement to the most recent best interest finding for the acreage is required 17 under this subparagraph, 18 (i) the director shall issue the supplement to the best 19 interest finding not later than 90 days before the sale; 20 (ii) not later than 45 days before the sale, the director 21 shall issue a notice describing the interests to be offered, the location 22 and time of the sale, and the terms and conditions of the sale; and 23 (iii) the supplement has the status of a final written best 24 interest finding for purposes of (i) and (l) of this section; 25 (G) a surface use lease under AS 38.05.255; 26 (H) a permit, right-of-way, or easement under AS 38.05.850; 27 (I) a recreational cabin site lease or sale under  28 AS 38.05.600;  29 (7) the director shall include in 30 (A) a preliminary written finding, if required, a summary of 31 agency and public comments, if any, obtained as a result of contacts with other 01 agencies concerning a proposed disposal or as a result of informal efforts 02 undertaken by the department to solicit public response to a proposed disposal, 03 and the department's preliminary responses to those comments; and 04 (B) the final written finding a summary of agency and public 05 comments received and the department's responses to those comments. 06  * Sec. 3. AS 38.05.045 is amended to read:  07 Sec. 38.05.045. Generally. All land owned in fee by the state or to which the 08 state may become entitled, excepting tide, submerged, or shoreland, and timber or 09 grazing land, may be sold as provided in AS 38.05.045 - 38.05.069 and AS 38.08. 10 However, this section does not prevent the disposition of land as provided in 11 AS 38.05.300, 38.05.321, 38.05.600, 38.05.810 - 38.05.870, 38.05.920, 38.05.945 and 12 38.05.946.  13  * Sec. 4. AS 38.05.065(b) is amended to read:  14 (b) The contract of sale for land sold under AS 38.05.057, [OR] under former 15 AS 38.05.078, or under AS 38.05.600 shall require the remainder of the purchase 16 price to be paid in monthly, quarterly, or annual installments over a period of not more 17 than 30 [20] years. Installment payments plus interest shall be set on the level- 18 payment basis. The interest rate to be charged on installment payments is the rate 19 provided in (i) of this section. 20  * Sec. 5. AS 38.05.125(a) is amended to read:  21 (a) Each contract for the sale, lease, or grant of state land, and each deed to 22 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 23 38.05.321, 38.05.600, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50 except as 24 provided in AS 38.50.050 is subject to the following reservations: "The party of the 25 first part, Alaska, hereby expressly saves, excepts and reserves out of the grant hereby 26 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 27 minerals, fissionable materials, geothermal resources, and fossils of every name, kind 28 or description, and which may be in or upon said land above described, or any part 29 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, 30 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 31 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 01 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 02 servants upon said land, or any part or parts thereof, at any and all times for the 03 purpose of opening, developing, drilling, and working mines or wells on these or other 04 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 05 fissionable materials, geothermal resources, and fossils, and to that end it further 06 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 07 assigns forever, the right by its or their agents, servants and attorneys at any and all 08 times to erect, construct, maintain, and use all such buildings, machinery, roads, 09 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such 10 soil, and to remain on said land or any part thereof for the foregoing purposes and to 11 occupy as much of said land as may be necessary or convenient for such purposes 12 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 13 generally all rights and power in, to, and over said land, whether herein expressed or 14 not, reasonably necessary or convenient to render beneficial and efficient the complete 15 enjoyment of the property and rights hereby expressly reserved." 16  * Sec. 6. AS 38.05.600 is repealed and reenacted to read: 17 Sec. 38.05.600. Recreational cabin sites. (a) The longstanding policy of the 18 state, declared in art. VIII, secs. 1, 2, and 9, Constitution of the State of Alaska, and 19 the Alaska Land Act (AS 38.05) has been to encourage the settlement of the state's 20 land and the development of its resources by making land available for the maximum 21 use consistent with the public interest. Consistent with the Constitution of the State of 22 Alaska, it is the intent of the legislature that state land be made available to all 23 Alaskans for recreational purposes to promote the maximum use of state land 24 consistent with the public interest. 25 (b) The commissioner shall administer a program for the leasing and sale of 26 state land for recreational cabin sites to eligible applicants. A recreational cabin site 27 shall be made available through either a schedule of land offerings issued by the 28 commissioner under (c) of this section or the recreational cabin site nomination 29 process described in (d) of this section. 30 (c) The commissioner shall annually publish a schedule of land offerings that 31 lists areas available for the staking of a recreational cabin site. The department shall 01 provide public notice of the annually published schedule of land offerings and of any 02 revisions made to the schedule. An eligible applicant may apply for the lease or sale of 03 a recreational cabin site from the schedule of land offerings. 04 (d) An eligible applicant may nominate and apply for a lease or sale of up to 05 10 acres of available state land for a recreational cabin site that is not included in the 06 commissioner's schedule of land offerings. Nominated land must have legal access or 07 access provided under generally allowed uses and be unencumbered by any easement, 08 right-of-way, or other legal encumbrance so that the surface estate may be leased or 09 sold as provided in this section. A recreational cabin site on nominated land shall be 10 located at least one quarter mile from any other recreational cabin site. The applicant 11 has the burden of demonstrating that nominated land is eligible for lease and sale 12 under this section. 13 (e) The commissioner may not approve an application for the lease or sale of a 14 recreational cabin site on land that is classified as mineral or oil and gas land unless 15 the applicant has held a valid mining claim located on the parcel or contiguous to the 16 parcel for the preceding five years. Notwithstanding (d) of this section, an applicant 17 holding a valid mining claim under this subsection may nominate land that is less than 18 one-quarter mile from another recreational cabin site. 19 (f) If the commissioner approves an application, the department shall provide 20 public notice of the intent to sell or lease the land to the applicant. After the time for 21 public notice, the commissioner may issue the lease under (g) of this section or sell the 22 land under (i) of this section. 23 (g) The commissioner may issue a lease under this section to an eligible 24 applicant for a term of up to 10 years. Excepting sites under (e) of this section on 25 which a valid mining claim is located, land leased under this section may be used only 26 as a recreational cabin site during the term of the lease. A recreational cabin site lease 27 must require that the leased land be surveyed at the cost of the lessee no later than five 28 years from commencement of the lease. The commissioner may terminate a lease 29 before its expiration if a lessee fails to use the land in the manner required by the terms 30 of the lease. At any time during the lease, the lessee may purchase the recreational 31 cabin site. 01 (h) The commissioner shall set annual fees for a lease under this section to 02 ensure that the state receives a fair return for the use granted. After termination of a 03 recreational cabin site lease, improvements or personal property remaining on the land 04 shall be managed in the same manner provided in AS 38.05.090 for removal or 05 reversion of improvements upon termination of leases of state land. A lease under this 06 section may be assigned with the consent of the commissioner. 07 (i) The commissioner may sell land offered or nominated under this section to 08 an eligible applicant. A sale must be at fair market value, and the purchaser shall pay 09 for the appraisal, platting costs, and a survey if not already completed for the 10 recreational cabin site. For a sale to a lessee under (g) of this section, fair market value 11 shall be determined as of the time of entry, and the lessee may apply lease payments to 12 the purchase price. 13 (j) The commissioner may adopt regulations under AS 44.62 (Administrative 14 Procedures Act) necessary to implement this section. 15 (k) In this section, 16 (1) "eligible applicant" means a resident at least 18 years of age who 17 has not leased or purchased a recreational cabin site during the 10-year period before 18 submitting an application under this section; 19 (2) "resident" means an individual who has resided in the state for one 20 year immediately preceding an application under this section. 21  * Sec. 7. AS 38.05.945(a) is amended to read: 22 (a) This section establishes the requirements for notice given by the 23 department for the following actions: 24 (1) classification or reclassification of state land under AS 38.05.300,  25 except for land reclassified for lease or sale under AS 38.05.600, and the closing of 26 land to mineral leasing or entry under AS 38.05.185; 27 (2) zoning of land under applicable law; 28 (3) issuance of a 29 (A) preliminary written finding under AS 38.05.035(e)(5)(A) 30 regarding the sale, lease, or disposal of an interest in state land or resources for 31 oil and gas, or for gas only, subject to AS 38.05.180(b); 01 (B) written finding for the sale, lease, or disposal of an interest 02 in state land or resources under AS 38.05.035(e)(6), except a lease sale 03 described in AS 38.05.035(e)(6)(F) for which the director must provide 04 opportunity for public comment under the provisions of that subparagraph; 05 (4) a competitive disposal of an interest in state land or resources after 06 final decision under AS 38.05.035(e); 07 (5) a preliminary finding under AS 38.05.035(e) concerning sites for 08 aquatic farms and related hatcheries; 09 (6) a decision under AS 38.05.132 - 38.05.134 regarding the sale, 10 lease, or disposal of an interest in state land or resources; 11 (7) an exchange of state land under AS 38.50; 12 (8) solicitation of competitive interest under AS 38.05.081(c). 13  * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 ELIGIBILITY OF PERSONAL USE CABINS FOR LEASE AND PURCHASE AS 16 RECREATIONAL CABIN SITES. (a) Notwithstanding any provision in AS 16.20 or 17 AS 41.21 to the contrary or regulations adopted by the Department of Natural Resources 18 under the authority of AS 38.04.035, AS 38.05.020, AS 41.21.020, and AS 44.37.011 that 19 state a personal use cabin permit does not convey any interest in state land or grant any 20 preference right for the lease or purchase of state land, the commissioner may 21 (1) approve a nomination by the holder of a current valid permit for a cabin 22 site and surrounding land under AS 38.05.600, as repealed and reenacted by sec. 6 of this Act, 23 and, after public notice, sell or lease to the permit holder the nominated land as a recreational 24 cabin site; and 25 (2) approve a nomination by a former holder, or an immediate family member 26 of a former holder, of a permit for a cabin site and surrounding land under AS 38.05.600, as 27 repealed and reenacted by sec. 6 of this Act, that expired prior to the effective date of this Act, 28 and, after public notice, sell or lease to the person or family member the nominated land as a 29 recreational cabin site if the person or family member has continuously maintained the 30 personal use cabin at the site. 31 (b) The department may authorize a recreational cabin site under this section that is 01 less than one-quarter mile from another recreational cabin site. 02 (c) The lands affected by this section include those sites listed in the 2025 Personal 03 Use Cabin Permit Master List, located in the office of the director of the division of lands, 04 Department of Natural Resources, in Anchorage, Alaska. 05 (d) All dispositions and uses under (a) of this section of lands that are part of a state 06 park, state forest, state game refuge, state wildlife refuge, state game sanctuary, state 07 recreational area, state recreational river, state wilderness park, state marine park, state special 08 management area, state public use area, critical habitat area, bald eagle preserve, bison range, 09 or moose range are confirmed and ratified. In considering whether to approve a nomination 10 under this subsection, the commissioner shall consider whether the disposal is consistent with 11 the uses of the land, including the preservation of public access. Land subject to this 12 subsection may be leased or sold regardless of its classification. 13  * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION. (a) A lease executed under AS 38.05.600 before the effective date of 16 this Act and in effect on the effective date of this Act is not subject to AS 38.05.600, as 17 repealed and reenacted by sec. 6 of this Act, and shall continue in effect pursuant to its terms. 18 (b) Land leased or sold under AS 38.05.600 before the effective date of this Act is a 19 recreational cabin site for the purpose of AS 38.05.600(k)(1), as repealed and reenacted by 20 sec. 6 of this Act. 21  * Sec. 10. Section 8 of this Act is repealed June 30, 2032. 22  * Sec. 11. This Act takes effect immediately under AS 01.10.070(c).