SB 162: "An Act relating to land used for agricultural purposes and to state land classified for agricultural purposes or subject to the restriction of use for agricultural purposes only; and annulling certain program regulations of the Department of Natural Resources that are inconsistent with the amendments made by this Act."
00SENATE BILL NO. 162 01 "An Act relating to land used for agricultural purposes and to state land 02 classified for agricultural purposes or subject to the restriction of use for 03 agricultural purposes only; and annulling certain program regulations of the 04 Department of Natural Resources that are inconsistent with the amendments made 05 by this Act." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. LEGISLATIVE INTENT. It is the intent of the legislature in amending 08 AS 38.05.321(a) in sec. 9 of this Act that, for state land classified as agricultural land, the 09 state convey fee title subject to a covenant running with the land that limits use of the land 10 to agricultural purposes. 11 * Sec. 2. AS 38.04.045(b) is amended to read: 12 (b) Before the issuance of a long-term lease under AS 38.05.070 or of a patent 13 for state land, an official cadastral survey shall be accomplished, unless a comparable, 14 approved survey exists that has been conducted by the federal Bureau of Land
01 Management. Before land may be offered under [AS 38.05.055, 38.05.057,] AS 38.08 02 [,] or AS 38.09, or before land may be offered under AS 38.05.055 or 38.05.057, 03 except land that is classified for agricultural uses, an official rectangular survey grid 04 shall be established. The rectangular survey section corner positions shall be 05 monumented and shown on a cadastral survey plat approved by the state. For those 06 areas where the state may wish to convey surface estate outside of an official 07 rectangular survey grid, the commissioner may waive monumentation of individual 08 section corner positions and substitute an official control survey with control points 09 being monumented and shown on control survey plats approved by the state. The 10 commissioner may not issue more than one conveyance for each section within a 11 township outside of an official rectangular survey grid. Land [NO PORTION OF 12 LAND] to be conveyed may not be located more than two miles from an official 13 survey control monument except that the commissioner may waive this requirement 14 on a determination that a single purpose use does not justify the requirement if the 15 existing status of the land is known with reasonable certainty. The lots and tracts in 16 state subdivisions shall be monumented and the cadastral survey and plats for the 17 subdivision shall be approved by the state. Where land is located within a 18 municipality with planning, platting, and zoning powers, plats for state subdivisions 19 shall comply with local ordinances and regulations in the same manner and to the same 20 extent as plats for subdivisions by other landowners. State subdivisions shall be filed 21 and recorded in the district recorder's office. The requirements of this section do not 22 apply to land made available through a cabin permit system, for material sales, for 23 short-term leases, for parcels adjoining a surveyed right-of-way, or for land that has 24 been open to random staking under the remote parcel program or homestead program 25 in the past; however, for short-term leases, the lessee shall [MUST] comply with local 26 subdivision ordinances unless waived by the municipality under procedures specified 27 by ordinance. In this subsection, "a single purpose use" includes a communication site, 28 an aid to navigation, and a park site. 29 * Sec. 3. AS 38.04.065(h) is amended to read: 30 (h) Before the commissioner adopts a regional land use plan, a land 31 classification may be made on the basis of a site-specific land use plan, except a
01 classification for a land disposal under AS 38.05.057, AS 38.08, or AS 38.09 [, OR 02 A NEW COMMERCIAL AGRICULTURE PROJECT UNDER AS 38.05.020(b)(6)]. 03 After adoption of a regional land use plan, land classifications shall be made under the 04 plan. 05 * Sec. 4. AS 38.05.020(b) is amended to read: 06 (b) The commissioner may 07 (1) establish reasonable procedures and adopt reasonable regulations 08 necessary to carry out this chapter and, whenever necessary, issue directives or orders 09 to the director to carry out specific functions and duties; regulations adopted by the 10 commissioner shall be adopted under AS 44.62 (Administrative Procedure Act); orders 11 by the commissioner classifying land, issued after January 3, 1959, are not required 12 to be adopted under AS 44.62 (Administrative Procedure Act); 13 (2) enter into agreements considered necessary to carry out the purposes 14 of this chapter, including agreements with federal and state agencies; 15 (3) review any order or action of the director; 16 (4) exercise the powers and do the acts necessary to carry out the 17 provisions and objectives of this chapter; 18 (5) notwithstanding the provisions of any other section of this chapter, 19 grant an extension of the time within which payments due on any exploration license, 20 lease, or sale of state land, minerals, or materials may be made, including payment of 21 rental and royalties, on a finding that compliance with the requirements is or was 22 prevented by reason of war, riots, or acts of God; 23 (6) classify tracts for agricultural uses [AND REQUIRE THE 24 PREQUALIFICATION, INCLUDING THE SUBMISSION OF CONSERVATION 25 PLANS, DEVELOPMENT PLANS, OR OTHER PLANS, SCHEDULES, OR 26 PROGRAMS, OF PERSONS WHO APPLY TO PARTICIPATE IN AN 27 AGRICULTURAL DEVELOPMENT PROJECT UNDER AS 44.33.475]; 28 (7) waive, postpone, or otherwise modify the development requirements 29 of a contract for the sale of agricultural land if 30 (A) the land is inaccessible by road; or [AND] 31 (B) transportation, marketing, and development costs render the
01 required development uneconomic; 02 (8) reconvey or relinquish land or an interest in land to the federal 03 government if 04 (A) the land is described in an amended application for an 05 allotment under 43 U.S.C. 1617; and 06 (B) the reconveyance or relinquishment is 07 (i) for the purposes provided in 43 U.S.C. 1617; and 08 (ii) in the best interests of the state. 09 * Sec. 5. AS 38.05.057(j) is amended to read: 10 (j) The commissioner may require a participant in a lottery under this section 11 for the sale of land that is part of an agricultural development project under former 12 AS 44.33.475 to submit a single application for that land. Immediately following the 13 drawing of an applicant's name in the lottery, the applicant shall be given an 14 opportunity to select for purchase one parcel of the land that is offered in the lottery. 15 The names of alternate applicants shall be drawn after all parcels have been selected. 16 If the applicant who originally selected a parcel unequivocally rejects the offer to 17 purchase the parcel or fails to sign the contract of sale within the period of time 18 specified by the commissioner, the parcel shall be offered for sale to alternate 19 applicants in the order in which their names were drawn. 20 * Sec. 6. AS 38.05.059 is repealed and reenacted to read: 21 Sec. 38.05.059. SALE OF AGRICULTURAL LAND. The commissioner shall 22 provide for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses 23 in parcels or tracts described by aliquot parts. The parcels or tracts are subject to state 24 subdivision requirements and municipal ordinances. 25 * Sec. 7. AS 38.05.065(c) is amended to read: 26 (c) The director shall, for contracts under (a), [OR] (b), or (h) of this section, 27 set out in the contract for each sale the period for the payment of installments and the 28 total purchase price plus interest. The director, with the consent of the commissioner, 29 may also include in contracts under this section conditions, limitations, and terms 30 considered necessary and proper to protect the interest of the state. Violations of any 31 provision of this chapter or the terms of the contract of sale subject the purchaser to
01 appropriate administrative and legal action, including but not limited to specific 02 performance, foreclosure, ejectment, or other legal remedies in accordance with 03 applicable state law. 04 * Sec. 8. AS 38.05.065(h) is amended to read: 05 (h) The commissioner 06 (1) shall provide that, notwithstanding (a) and (b) of this section, 07 in a contract for the sale of land classified under AS 38.05.020(b)(6) for 08 agricultural uses, the interest rate to be charged on installment payments is eight 09 percent; and 10 (2) may declare a moratorium of up to five years on payments on land 11 sold under this section for [A SALE OF AGRICULTURAL] land classified under 12 AS 38.05.020(b)(6) for agricultural uses [UNDER THIS SECTION] if 13 (A) [(1)] the commissioner determines that the moratorium is 14 in the best interest of the state; 15 (B) [(2)] the commissioner certifies and the contract purchaser 16 agrees to perform farm development, crop production, and harvesting, not 17 including land clearing or related activity, requiring the expenditure of amounts 18 equivalent to the payments that would otherwise be made during the 19 moratorium; 20 (C) [(3)] the sale of the agricultural land takes place after 21 July 1, 1979; and 22 (D) [(4)] the contract purchaser is in compliance with the 23 development plan specified in the purchase contract at the time the purchaser 24 applies for a moratorium under this subsection and remains in compliance with 25 the development plan during the moratorium; for the payments subject to the 26 moratorium declared under this paragraph, interest [. INTEREST] 27 payments are subject to the moratorium but interest continues to accrue during 28 the moratorium. 29 * Sec. 9. AS 38.05.321(a) is repealed and reenacted to read: 30 (a) The department shall include in a document that conveys state land 31 classified as agricultural land
01 (1) a covenant running with the land that restricts or limits the use of 02 the land exclusively for agricultural purposes; 03 (2) a covenant running with the land permitting the owner of state land 04 classified as agricultural land to subdivide and sell the land in parcels of not less than 05 40 acres; and 06 (3) provisions that establish remedies for a breach of the covenants 07 described in (1) and (2) of this subsection. 08 * Sec. 10. AS 38.05.321(b) is amended to read: 09 (b) Subject to (a) of this section, state [STATE] land classified as agricultural 10 land that has been selected by a municipality under former AS 29.18.190 - 29.18.200 11 or former AS 29.18.205(e) may be approved by the director for patent under 12 AS 29.65.050(c) [; HOWEVER, ONLY RIGHTS IN THE LAND FOR 13 AGRICULTURAL PURPOSES MAY BE TRANSFERRED AND ALL OTHER 14 INTERESTS IN THE LAND WILL REMAIN WITH THE STATE]. Agricultural land 15 approved for patent to a municipality shall be credited, acre for acre, toward fulfillment 16 of that municipality's entitlement under AS 29.65.010 - 29.65.030 or former 17 AS 29.18.201 - 29.18.203. [IF THE DIRECTOR LATER DETERMINES IT TO BE 18 IN THE BEST INTERESTS OF THE STATE TO TRANSFER SOME OR ALL OF 19 THE ADDITIONAL RIGHTS IN THAT APPROVED OR PATENTED 20 AGRICULTURAL LAND, THOSE RIGHTS SHALL PASS WITHOUT 21 CONSIDERATION TO THE MUNICIPALITY IN WHICH THE LAND IS 22 LOCATED. THE NOTICE AND REVIEW PROVISIONS OF AS 38.05.945 ARE 23 APPLICABLE TO CONVEYANCE OF RIGHTS UNDER THIS SECTION.] 24 * Sec. 11. AS 38.05.321 is amended by adding new subsections to read: 25 (d) For state land classified as agricultural land that is conveyed under (a) of 26 this section, 27 (1) the commissioner may require the landowner to cooperate with the 28 appropriate soil and water conservation district under AS 41.10 in the development and 29 implementation of soil conservation plans as authorized by AS 41.10.110(6); 30 (2) as a condition of the conveyance, the commissioner may not require 31 preparation and implementation of a farm development plan unless the commissioner
01 permits modification of a plan in cases of economic hardship or other extenuating 02 circumstances; 03 (3) the commissioner may not limit 04 (A) the landowner's right to construct improvements related to 05 agricultural use; 06 (B) the landowner's right to use the land and improvements for 07 purposes that are incidental to and not inconsistent with the primary use of the 08 land for agricultural purposes; and 09 (C) the landowner's right to subdivide and sell the land if the 10 resulting parcels are not in violation of the minimum parcel size set out in 11 (a)(2) of this section. 12 (e) In this section, "agricultural purposes" means 13 (1) the production of plants and animals useful to man, including forage 14 and sod crops, grains and feed crops, fruits, trees, and vegetables, dairy animals and 15 products, and livestock; 16 (2) the construction of fixed, permanent, or immovable structures 17 reasonably required for or related to agricultural production, including that farmstead 18 normally required for yards, driveways, parking, barns, and other outbuildings, and 19 similar uses; 20 (3) the use of gravel reasonably required for agricultural production on 21 the parcel conveyed; and 22 (4) removal and disposition of timber in order to bring agricultural land 23 into production. 24 * Sec. 12. CONVERSION OF DISPOSALS MADE UNDER AS 38.05.069(c) OR UNDER 25 FORMER AS 38.05.321(a). The provisions of AS 38.05.321(a), as amended by sec. 9 of this 26 Act, apply to state land classified as agricultural land that, under AS 38.05.069(c) or under 27 AS 38.05.321(a) before its amendment by sec. 9 of this Act, was subject to the limitation of 28 the conveyance of only the interest in the land that related to agricultural purposes and that 29 was sold, leased, or disposed of after August 15, 1976, and before the effective date of this 30 Act. The commissioner of natural resources shall issue a new instrument of conveyance for 31 the land that conforms to AS 38.05.321(a) and (d), as amended and enacted by secs. 9 and 11
01 of this Act. 02 * Sec. 13. CONVERSION OF DISPOSALS MADE UNDER FORMER AS 38.05.321(b). 03 The provisions of AS 38.05.321(a), as amended by sec. 9 of this Act, apply to state land 04 classified as agricultural land that, under AS 38.05.321(b) before its amendment by sec. 10 05 of this Act, was subject to the limitation of the conveyance of only the interest in the land that 06 related to agricultural purposes and that was conveyed to a municipality after June 30, 1978, 07 and before the effective date of this Act. The commissioner of natural resources shall issue 08 a new instrument of conveyance for the land that conforms to AS 38.05.321, as amended by 09 secs. 9 - 11 of this Act. 10 * Sec. 14. The following regulations are annulled: 11 AAC 67.162, 11 AAC 67.165, 11 11 AAC 67.167(d), 11 AAC 67.170, 11 AAC 67.172, 11 AAC 67.175(1), 11 AAC 67.185, 11 12 AAC 67.187, 11 AAC 67.188(a)(3), 11 AAC 67.188(a)(4), 11 AAC 67.188(a)(5), 11 AAC 13 67.188(a)(6), 11 AAC 67.188(b), 11 AAC 67.188(c), 11 AAC 67.190(a), 11 AAC 67.192.