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CSSB 310(RES): "An Act relating to the management and sale of state timber and relating to the administration of forest land."

00CS FOR SENATE BILL NO. 310(RES) 01 "An Act relating to the management and sale of state timber and relating to the 02 administration of forest land." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38.05.112(c) is amended to read: 05  (c) A forest land use plan shall consider [IN ADDITION TO] the 06 requirements of AS 38.04.065(b) only for areas where a land use plan under 07 AS 38.04.065(a) or a forest management plan under AS 41.17.230 has not been 08 adopted. Regardless of whether there is a land use plan or a forest management 09 plan, each [, A] forest land use plan shall consider 10  (1) commercial timber harvesting, including related activities; 11  (2) harvesting of forest products for personal use; 12  (3) fish and wildlife habitat, including 13  (A) identification and protection of important wildlife habitat; 14  (B) retention of riparian, wetland, and ocean-shoreline

01 vegetation critical for fish and wildlife habitat; and 02  (C) classification of water bodies according to physical 03 characteristics; 04  (4) uses of forest land for nontimber purposes, including 05  (A) recreation, tourism, and related activities; 06  (B) mining, mining claims, mineral leaseholds, and material 07 extraction; 08  (C) uses of fish and wildlife; 09  (D) agriculture, including grazing; and 10  (E) other resources and uses appropriate to the area, including 11 compatible traditional uses; 12  (5) soil characteristics and productivity; 13  (6) water quality; and 14  (7) watershed management. 15 * Sec. 2. AS 38.05.113(c) is amended to read: 16  (c) Sales under 500,000 board feet [THE DEPARTMENT MAY ADOPT 17 REGULATIONS EXEMPTING SMALL] and emergency sales are exempt from the 18 requirements of this section if public notice of the proposed sale is provided in the 19 manner specified in AS 38.05.945(b). Exempt sales, other than emergency sales, 20 under this subsection may not exceed 1,000,000 board feet in a calendar year in 21 each region. 22 * Sec. 3. AS 38.05 is amended by adding a new section to article 4 to read: 23  Sec. 38.05.122. FOREST MANAGEMENT AGREEMENTS. (a) 24 Notwithstanding the requirements of AS 38.05.110 - 38.05.120 or another provision 25 of this chapter, the commissioner, under the procedures set out in this section and if 26 not inconsistent with a land use plan then in effect, may enter into a forest 27 management agreement with a person to authorize the person to enter on the state 28 forest land covered by the agreement for the purposes of selecting, harvesting, and 29 regenerating timber in a manner consistent with sustained yield. 30  (b) At least once each calendar year, the commissioner shall solicit proposals 31 for forest management agreements on state forest land. The commissioner shall provide

01 notice of the solicitation to all persons who have requested notification and may 02 provide for any additional notice that the commissioner determines is appropriate. 03 Regardless of whether the commissioner has solicited proposals under this subsection, 04 a person may submit a proposal for a forest management agreement to the 05 commissioner at any time for consideration. The commissioner may not consider 06 unsolicited proposals for a parcel of land covered by a solicited proposal until the 07 commissioner has completed the review and determination required under this section 08 concerning the solicited proposals. 09  (c) The commissioner shall solicit public comment for a proposed agreement 10 unless the evaluation under (d) indicates it is unlikely that the proposed agreement will 11 be selected as a tentatively successful proposed agreement. The public comment 12 period under this subsection may not be less than 30 days nor more than 60 days. 13  (d) The commissioner shall evaluate proposed agreements submitted under (b) 14 of this section. In evaluating a proposed agreement, the commissioner shall consider 15 the 16  (1) effect of the agreement on the following: 17  (A) commercial timber harvesting, including related activities; 18  (B) harvesting of forest products for personal use; 19  (C) fish and wildlife habitat, including 20  (i) identification and protection of important wildlife 21 habitat; 22  (ii) retention of riparian, wetland, and ocean shoreline 23 vegetation critical for fish and wildlife habitat; and 24  (iii) classification of water bodies according to physical 25 characteristics; 26  (D) uses of forest land for nontimber purposes, including 27  (i) recreation, tourism, and related activities; 28  (ii) mining, mining claims, mineral leaseholds, and 29 material extraction; 30  (iii) uses of fish and wildlife; 31  (iv) agriculture, including grazing; and

01  (v) other resources and uses appropriate to the area, 02 including compatible traditional uses; 03  (E) soil characteristics and productivity; 04  (F) water quality; and 05  (G) watershed management; 06  (2) necessary public access for uses described in (1) of this subsection; 07  (3) financial feasibility of the proposed agreement; 08  (4) technical and financial qualifications of the proposer; 09  (5) stumpage payments offered to be paid; 10  (6) economic benefits from the proposed agreement to the region in 11 which the land that is to be covered by the agreement is located; 12  (7) economic benefits to state forest land under the proposed 13 agreement; and 14  (8) other factors that the commissioner determines are relevant and 15 appropriate. 16  (e) After evaluating proposed agreements under (d) of this section, the 17 commissioner may designate a tentatively successful proposed agreement. A proposed 18 agreement may not be designated under this subsection until public comment has been 19 solicited under (c) of this section. A tentatively successful proposed agreement may 20 not be designated unless the commissioner includes, and makes a written finding that 21 sets out facts and applicable law to support the commissioner's conclusion, that 22  (1) land or timber covered by the tentatively successful proposed 23 agreement is not reasonably necessary to provide sustained harvest for a sawmill or 24 wood processing facility using that land or timber at the time the proposed agreement 25 was evaluated, or that a final agreement can adequately address those needs; and 26  (2) the tentatively successful proposed agreement will best serve the 27 interests of the state and is consistent with applicable land use or management plans 28 then in effect. 29  (f) The commissioner shall provide notice under AS 38.05.945(b) and (c) of 30 a finding under (e) of this section and designation of a tentatively successful proposed 31 agreement at least 90 days prior to entering into a final agreement. The commissioner

01 shall solicit comments from the public and from state and local government agencies 02 on a tentatively successful proposed agreement. 03  (g) If a tentatively successful proposed agreement is designated under (e) of 04 this section, the commissioner, after considering comments and recommendations 05 received under (f) of this section, may proceed to develop a proposed final agreement 06 between the proposer and the state. A proposed final agreement 07  (1) shall provide for terms, conditions, and limitations determined by 08 the commissioner to be in the public interest; 09  (2) must contain 10  (A) the initial term of the agreement, which may not exceed 20 11 years; 12  (B) the stumpage prices for the timber; 13  (C) provisions regarding compensation from the proposer for 14 scaling services required in order to account for timber sold; 15  (D) provisions regarding compensation, if required by the 16 department, for state services provided to administer the agreement; 17  (E) provisions regarding responsibilities for construction and 18 maintenance of access roads necessary to manage the land that is to be covered 19 by the agreement; 20  (F) provisions regarding consideration for the sale of material 21 obtained from state land for the construction of access roads on the land that 22 is to be covered by the agreement; 23  (G) provisions regarding responsibilities for reforestation and 24 silvicultural practices on land that is to be covered by the agreement; 25  (H) a statement that activities under the agreement are governed 26 by the provisions of AS 41.17 and regulations adopted under AS 41.17 27 applicable to operations on state land; 28  (I) provisions for the submission and approval of biennial 29 operational plans for activities authorized or required by the agreement; 30  (J) requirements for reports and submission of information to 31 the department regarding performance under the agreement;

01  (K) procedures for enforcement and termination of the 02 agreement; 03  (L) provisions for existing public access; 04  (M) an operational level forest inventory every five years; and 05  (N) provisions for deactivation or termination, that may include 06 bonding, to ensure reforestation, stabilization, monitoring, and other residual 07 obligations. 08  (h) The form of the proposed final agreement developed under (g) of this 09 section must be approved by the attorney general before the agreement is signed by 10 the commissioner. After approval by the attorney general under this subsection, the 11 commissioner and the proposer may sign the proposed final agreement. 12  (i) When the commissioner solicits public comment under (c) of this section, 13 and at all times thereafter, the proposed agreements are public records and are open 14 to public inspection and disclosure under AS 09.25.120. Prior to solicitation of public 15 comment under (c) of this section, proposed agreements submitted under this section 16 are confidential and are not open to public inspection or disclosure under 17 AS 09.25.120. When the commissioner selects a tentatively successful proposed 18 agreement under (e) of this section, all documents regarding that proposed agreement 19 and all other competing proposed agreements, as well as a subsequent final agreement 20 and all documents leading up to that agreement, are public records and are open for 21 inspection under AS 09.25.120. 22  (j) All right, title, and interest in or to timber or material in or on land covered 23 by a final forest management agreement remains with the state until the timber or 24 material has been cut or severed, determined as to volume, removed from the site, and 25 paid for in compliance with the agreement. Timber or material that is not removed 26 from land covered by a final forest management agreement within the period specified 27 by the agreement or by an extension of the agreement remains the property of the 28 state. 29  (k) An interest in a final forest management agreement may not be assigned 30 without the prior written consent of the commissioner. An assignment without the 31 prior written consent of the commissioner is void. The commissioner may not consent

01 under this subsection unless the assignment is of the entire interest in the final forest 02 management agreement. The commissioner shall consider all of the factors of this 03 section when making a determination concerning an assignment. 04  (l) Upon the completion of three-quarters of the total term of the agreement, 05 the commissioner shall review the operation and performance of the agreement and 06 determine whether it is in the best interest of the state to renew the agreement. If the 07 commissioner determines that it is in the best interest of the state, the commissioner 08 shall solicit and evaluate proposals, as provided in this section, for renewal of the 09 agreement, including a proposal from the current operator. 10  (m) The activities conducted under a final forest management agreement are 11 governed by AS 41.17 and regulations adopted under AS 41.17 applicable to 12 operations on state land. 13  (n) In this section, 14  (1) "agreement" means a forest management agreement; 15  (2) "proposer" means the person who submitted a proposed forest 16 management agreement under (b) of this section; 17  (3) "sustained yield" has the meaning given in AS 38.04.910. 18 * Sec. 4. AS 41.17.060(c) is amended to read: 19  (c) With respect to state and municipal forest land only, the following 20 standards also apply: 21  (1) forest land shall be administered for the multiple use of the 22 renewable and nonrenewable resources and for the sustained yield of the renewable 23 resources of the land in the manner that best provides for the present needs and 24 preserves the future options of the people of the state; 25  (2) a system of allocating predominant uses or values to particular units 26 within a contiguous area of land shall reflect in reasonable proportion the various 27 resources and values present in that area; 28  (3) to the extent its capacity permits, forest land shall be administered 29 so as to provide for the continuation and expansion of businesses, activities, and 30 lifestyles that are dependent upon or derived from forest resources; 31  (4) timber harvesting is limited to areas where data and information

01 demonstrate that natural or artificial reforestation techniques will result in the 02 production of a sustained yield of merchantable timber from that area; 03  (5) there may not be significant impairment of the productivity of the 04 land and water with respect to renewable resources; 05  (6) allowance shall be made for scenic quality in or adjacent to areas 06 of substantial importance to the tourism and recreation industry; and 07  (7) allowance shall be made for important fish and wildlife habitat. 08 * Sec. 5. AS 41.17.200 is amended to read: 09  Sec. 41.17.200. STATE FOREST PURPOSES. The purpose of AS 41.17.200 10 - 41.17.230 is to permit the establishment of designated state-owned or acquired land 11 and water areas as state forests. The primary purpose in the establishment of state 12 forests is the development of commercial forest land under the principles of 13 sustained yield and multiple use while perpetuating [PERPETUATION OF] 14 personal, commercial, and other beneficial uses of resources through multiple-use 15 management. 16 * Sec. 6. AS 41.17.200 is amended by adding a new subsection to read: 17  (b) In managing a state forest the commissioner shall 18  (1) allow for the fullest possible access to, and use of, the natural 19 resources, including timber, fish, game, and minerals; the allowance under this 20 paragraph shall take into account the interests of private landowners; 21  (2) maintain forest growth at a high level of productivity; and 22  (3) restrict the public use of the land and its resources only when 23 necessary to carry out the purposes of this chapter.