HB 174: "An Act relating to the disposal of state and municipal land and to taxation of that land."
00HOUSE BILL NO. 174 01 "An Act relating to the disposal of state and municipal land and to taxation of 02 that land." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 38 is amended by adding a new chapter to read: 05 Chapter 14. Alaska Family Land Entitlement Act. 06 Sec. 38.14.010. Sale and lease of state land; exemption. (a) 07 Notwithstanding any other provision of this title, the commissioner shall sell and lease 08 state land as provided in this chapter until at least 25 percent of all land in state 09 ownership as of the effective date of this Act has been sold or leased under this 10 chapter. 11 (b) Land may not be selected by the department for auction under 12 AS 38.14.050 or otherwise sold or leased under this chapter unless it is unclassified 13 under AS 38.05.300 or, if classified, it is classified as agricultural, forest, grazing, 14 resource management, settlement, or wildlife habitat land.
01 (c) The selection of land by the department for auction under AS 38.14.050 02 and the disposal of land by sale or lease under this chapter is exempt from the 03 requirements of AS 38.04 and AS 38.05. The department shall provide prior public 04 notice as required under the state constitution for disposals or leases of state land. 05 Sec. 38.14.020. Sales and leases subject to existing leases; commissioner 06 may not convey mineral or resource rights. (a) A sale or lease of land under this 07 chapter is subject to an existing lease entered into by the department before the sale 08 or lease of the land. A lease affecting land sold or leased by the state under this 09 chapter is subject to renewal or extension as provided in the terms of the lease or the 10 law under which the lease was issued. 11 (b) In a sale or lease of land under this chapter, the commissioner may not 12 convey a mineral or resource right that the state is required to maintain under a law 13 of this state or of the United States. A sale or lease of land under this chapter must 14 provide for access to these minerals or resources by the state or a lessee or other 15 designee of the state. 16 Sec. 38.14.030. Eligibility to purchase or lease land. A person may not 17 purchase or lease land under this chapter unless the person 18 (1) is a resident of the state under AS 01.10.055 and has been a 19 resident of the state for one year; 20 (2) is an individual who is at least 18 years of age at the time of the 21 purchase or lease; 22 (3) at the time of purchase or lease, on a form provided by the 23 department that bears a notification that a false statement is punishable under 24 AS 11.56.210, the person certifies that the person 25 (A) meets the eligibility requirements of this section and 26 AS 38.14.040; 27 (B) understands that the state or a political subdivision of the 28 state is not required to provide on-site schools for the land to be acquired and 29 that the person may not require the state to provide on-site schools; 30 (C) understands that the state is not required to construct or 31 maintain roads to the land to be acquired and that the person may not require
01 the state to construct or maintain roads to the land to be acquired; and 02 (D) will take good care of the property and the environment to 03 the best of the person's ability. 04 Sec. 38.14.040. Maximum entitlement to purchases or leases. (a) During 05 the person's lifetime, a person may purchase or lease a cumulative maximum of 160 06 acres from the state under this chapter. Except as provided in (b) of this section, the 07 160-acre limit applies whether or not the person retains ownership of or a leasehold 08 interest in the land originally purchased or leased. 09 (b) Notwithstanding the 160-acre limit under (a) of this section, if a person 10 returns the land to the state, terminates a lease of land from the state, or otherwise 11 provides clear title to the state of land purchased or leased under this chapter, the 12 acreage returned, formerly leased, or otherwise relinquished to the state may be 13 replaced, in whole or in part, by purchase or lease under this chapter. 14 (c) Under regulations adopted by the department, the commissioner may reduce 15 the acreage credit allowed under (b) of this section to compensate the state for 16 diminution in value of the land returned to the state that is caused by the person 17 seeking the credit. 18 Sec. 38.14.050. Sale of land by public auction. (a) Within 60 days after the 19 effective date of this Act, the department shall select not more than 2,000,000 acres 20 of state land to be sold at public auction as provided in this section. The department 21 shall include in the initial selection all land that the department has, before the 22 effective date of this Act, identified for disposal and included in the land disposal 23 bank. After the initial 2,000,000 acres have been sold, the department shall select 24 additional land for sale under this section until the requirement of AS 38.14.010(a) has 25 been met. Not more than 1,000,000 acres of state land may be included in any one 26 subsequent selection under this subsection. 27 (b) At least once every 90 days until the land is disposed of, the department 28 shall offer for sale by public auction not less than 100,000 acres of land selected under 29 (a) of this section. Except as provided in AS 38.14.130 and 38.14.140, the land shall 30 be in parcels of not less than 40 acres nor more than 160 acres, more or less. Upon 31 payment in full of the purchase price and the security required by AS 38.14.190 by
01 cash, certified check, or money order, a successful bidder at the auction shall receive 02 fee simple title to the land. A minimum bid of not less than $100 an acre shall be 03 required by the department for purchase at public auction. 04 (c) The land offered for sale under (b) of this section may be offered based 05 upon an aliquot parts description. The state is not required to provide a survey by a 06 licensed surveyor. 07 (d) A parcel of land offered for sale at public auction under (b) of this section 08 that is not sold at the auction may be purchased for a period of 180 days after the 09 auction for not less than $100 an acre. After 180 days after the auction, an individual 10 who is not a state resident or has not been a state resident for at least one year but 11 who is otherwise eligible to purchase land under AS 38.14.030 may purchase a parcel 12 of land that was not sold at the auction or in the 180 days following the auction. 13 (e) The department shall offer a purchaser of land under this section the option 14 of paying in full at time of purchase or on terms, requiring a 10 percent down payment 15 and payment of the balance of the purchase price over the next 15 years at an annual 16 interest rate of not more than six percent. 17 (f) A purchase of land under this chapter that is made in violation of 18 AS 38.14.030 - 38.14.040 is void as of the date of sale and does not give the 19 purchaser, a subsequent purchaser, a lessee, a devisee, or other person a right to the 20 land, an interest in the land, or the return of the purchase price paid to the state for the 21 land. 22 Sec. 38.14.060. Leases of land. (a) Beginning 60 days after the effective date 23 of this Act, a person may lease a parcel of land that has not been selected for auction 24 by the state under AS 38.14.050 of not less than 40 acres more or less nor more than 25 160 acres more or less, except as provided in AS 38.14.130 and 38.14.140, by marking 26 the location of the parcel of land on the ground under (b) of this section and by filing 27 with the department the certification required under AS 38.14.030, the legal description 28 of the land sought to be acquired by lease, a statement of the length of lease, not 29 greater than 55 years, desired by the person, and payment by cash, certified check, or 30 money order of the (1) first year's lease fee of $10 an acre, but not less than $400 for 31 each parcel, and (2) security deposit required by AS 38.14.190. Within 30 days of the
01 filing, the department shall notify the person if the land selected is available for lease. 02 If the land is available for lease, the department shall at the time of notification issue 03 to the person a lease that complies with the requirements of this chapter. If the land 04 is not available for lease, the department shall refund the first year's lease fee to the 05 person. 06 (b) A person leasing a parcel of land under (a) of this section shall mark the 07 location of the parcel on the ground by 08 (1) posting at the northeast corner of the parcel of land plain sign or 09 notice containing 10 (A) the name of the person; 11 (B) the date of the location; and 12 (C) the approximate bearing of corners and angle posts of the 13 parcel and the distances between them; and 14 (2) erecting at each corner or angle of the parcel substantial monuments 15 of stone or setting posts, not less than three feet in height nor less than three inches 16 in diameter hewn and marked with the name of the person, the position or number of 17 the monument, and the direction of the boundary lines, and by cutting out, blazing, or 18 marking the boundary lines so that they can be readily traced. Where it is 19 impracticable to place a monument at its true position, a witness monument shall be 20 erected and marked to indicate the true position of the corner or angle. 21 (c) A lease issued by the department under this chapter must contain a 22 provision permitting the lessee to purchase the land subject to the lease anytime after 23 one year has elapsed since the issuance of the lease. A purchase of leased land under 24 this section shall be at the fair market value of the land, but not less than $100 an acre. 25 A purchaser under this subsection has the payment options described in AS 38.14.050. 26 (d) A lease acquired under this section is freely transferable and may be sold 27 or subleased and is not terminated by the death of the lessee. 28 (e) A lease of land acquired by a person in violation of AS 38.14.030 - 29 38.14.040 is void as if the lease had never been entered into by the state and does not 30 give the lessee or a subsequent purchaser, sublessee, or devisee, any right to the land, 31 the purchase of the land, or the refund of payments made under the lease.
01 (f) Before issuing a lease under this section, the department may require the 02 preparation of an appraisal of the land sought to be leased. An applicant for a lease 03 may provide and pay for the appraisal. 04 Sec. 38.14.070. Restrictions on removal of surface resources. (a) A person 05 purchasing land under this chapter, for the first three years immediately following the 06 purchase of the land, or a person leasing land under this chapter during the term of the 07 lease, may not remove timber, gravel, or other surface materials from the land except 08 for 09 (1) personal use on the land; or 10 (2) exchanges with adjoining landowners for personal use on the 11 adjoining land. 12 (b) After three years following the purchase of land under this chapter, a 13 person may remove timber, gravel, or other surface materials for any purpose, except 14 that, if it is for a commercial purpose other than as provided in (a)(1) - (2) of this 15 section, the person shall pay the state a royalty fee equal to 20 percent of the proceeds 16 received from the removal. 17 Sec. 38.14.080. Schools. The state, a municipality, or a rural educational 18 attendance area does not have a duty to provide on-site schools for a parcel of land 19 purchased or leased by a person under this chapter. 20 Sec. 38.14.090. Rights-of-way and easements. The state shall retain a 100- 21 foot right-of-way along each section line of land sold or leased under this chapter and shall 22 reserve other rights-of-way and easements as are necessary to reach and use public water and 23 public and private land. The state shall identify the reservations under this section at the time 24 of a sale or lease under this chapter. 25 Sec. 38.14.100. Roads; acquisition by state. (a) The state does not have a 26 duty to construct or maintain roads to a parcel of land purchased or leased by a person 27 under this chapter. A person acquiring land by purchase or lease under this chapter 28 may construct a road from an existing state or municipal road to the land if the 29 proposed route is approved by the department or a municipality and the road is 30 constructed to standards set by the Department of Transportation and Public Facilities. 31 (b) A road constructed by a person who purchases or leases land under this
01 chapter that is built on the state's section line right-of-way is open to the public and 02 the purchaser or lessee of the land may not exclude the public from its use. 03 (c) A road constructed by a person who purchases or leases land under this 04 chapter becomes a public road, without compensation to the builder of the road, if the 05 state or a municipality agrees to accept the road and undertake responsibility for the 06 maintenance of the road. 07 Sec. 38.14.110. Applicability of municipal zoning laws and the Alaska 08 coastal management program. Land disposed of by sale or lease under this chapter 09 is subject to municipal zoning laws or regulations. Notwithstanding any other 10 provision of law, land disposed of by sale or lease under this chapter is not subject to 11 municipal zoning laws or regulations or AS 46.40 (Alaska coastal management 12 program). 13 Sec. 38.14.120. Land not subject to sale or lease. The following land is not 14 subject to sale or lease under this chapter: 15 (1) land identified under AS 16.20, AS 41.15.300 - 41.15.330, 16 AS 41.17, AS 41.21, and AS 41.23; 17 (2) land used as an administrative site by the state. 18 Sec. 38.14.130. Limitation on acquisition of land near Willow. The 19 department shall identify an area of not more than 66,000 acres near Willow within 20 which area a person may not acquire by purchase or lease under this chapter more than 21 40 acres of land, more or less. 22 Sec. 38.14.140. Southeast Alaska land south of 60 degrees north latitude. (a) A person may not purchase or 23 lease more than one acre of land, more or 24 less, under this chapter in Southeast Alaska south of 60 degrees north latitude. 25 (b) Notwithstanding AS 38.14.050 and 38.14.060, the department shall offer 26 land for sale under AS 38.14.050 and a person may lease land under AS 38.14.060 in 27 one-acre parcels, more or less, in the area described in (a) of this section. 28 Sec. 38.14.150. Surveys. A person who acquires land by purchase or lease 29 under this chapter shall, within 10 years of acquiring the land, have the land surveyed 30 at the person's expense. The survey shall be conducted as provided in regulations 31 adopted by the department. The person shall provide a copy of the survey to the state
01 without charge. 02 Sec. 38.14.160. Agricultural land. Notwithstanding AS 38.14.050 and 03 38.14.060, land that has been previously classified as agricultural by the department 04 and that has been previously sold or leased as agricultural land shall be first offered 05 to the current lessees of the land, if any, subject to the requirements of AS 38.14.030 06 and 38.14.040, for purchase or lease under this chapter. 07 Sec. 38.14.170. Land subject to existing leases. (a) Notwithstanding 08 AS 38.14.050 and 38.14.060, land that is subject to an existing surface estate lease or 09 subsurface or mining lease shall be first offered to the current lessee of the land, if 10 any, subject to the requirements of AS 38.14.030 and 38.14.040 for purchase or lease 11 under this chapter. 12 (b) To accept an offer under (a) of this section, the lessee shall purchase or 13 lease the land within 180 days of the offer at the fair market value of the land, but not 14 less than $100 an acre. The department may require the preparation of an appraisal 15 at the lessee's expense. 16 Sec. 38.14.180. No liability for contamination of soil or water before 17 purchase or lease. Notwithstanding any other provision of law, a person who 18 purchases or leases land under this chapter is not liable under state law for 19 contamination of soil or water occurring before the person's purchase or lease. 20 Sec. 38.14.190. Security deposit. A person who purchases or leases land 21 under this title shall at the time of the purchase or lease pay to the state a 22 nonrefundable security deposit in the amount of $100 for each 40 acres or less 23 purchased or leased to ensure the person's compliance with the requirements of this 24 chapter and other laws. The payment of this security deposit does not immunize the 25 person from liability for violations of this chapter or other laws nor limit the ability 26 or authority of the state to require compliance with and to enforce the laws of the 27 state. 28 Sec. 38.14.200. Additional terms and conditions. The department may not 29 impose terms and conditions in excess of those provided in this chapter or by the state 30 constitution. 31 Sec. 38.14.210. Aerial geophysical mapping. To aid persons in making
01 purchase choices under this chapter, the state shall provide aerial geophysical maps of 02 state lands. The state may charge a fee for the maps sufficient to cover the state's cost 03 for reproducing the maps. 04 Sec. 38.14.220. Appropriation of money received. The legislature may 05 appropriate money received from sales or leases of state land under this chapter to the 06 Alaska permanent fund. 07 Sec. 38.14.230. Taxation. (a) Land acquired by sale or lease under this 08 chapter shall be taxed annually at the rate of 20 mills of the assessed value of the land 09 and all the improvements and appurtenances thereto. Land shall be assessed at its full 10 and true value as of January 1 of the assessment year. The full and true value is the 11 estimated price that the land would bring in an open market and under the then 12 prevailing market conditions in a sale between a willing seller and a willing buyer both 13 conversant with the property and with prevailing general price levels. If the land is 14 located within a municipality, the land shall be assessed and the tax shall be levied and 15 collected by the municipality. If the land is located in the unorganized borough, the 16 land shall be assessed and the tax shall be levied and collected by the state through the 17 Department of Revenue and the state assessor. A municipality levying and collecting 18 the tax under this section shall use and follow the procedure provided in AS 29.45 for 19 the levy and collection of property taxes. The Department of Revenue shall adopt 20 regulations for the levy and collection of the tax under this section that are to the 21 maximum extent possible consistent with the procedure provided in AS 29.45. 22 (b) The state or a municipality may not levy or collect any other property tax 23 upon land acquired under this chapter. 24 Sec. 38.14.300. Definitions. In this chapter, 25 (1) "commissioner" means the commissioner of natural resources; 26 (2) "department" means the Department of Natural Resources; 27 (3) "recorder" and "recording district" have the meanings given in 28 AS 40.17.900. 29 * Sec. 2. AS 29.45.030(a) is amended by adding a new paragraph to read: 30 (10) land acquired from the state under AS 38.14 and taxed in the 31 manner provided under AS 38.14.230.
01 * Sec. 3. AS 29.65 is amended by adding a new section to read: 02 Sec. 29.65.075. Disposal of land conveyed; reversion to state of undisposed 03 land. A municipality that has received or receives land from the state under this title 04 shall, within five years of the effective date of this Act, sell to private parties 50 05 percent of the land received and that still remains in municipal ownership on the 06 effective date of this Act and, within 10 years of the effective date of this Act, shall 07 sell to private parties 66 percent of the land received and that still remains in 08 municipal ownership on the effective date of this Act. If a municipality fails to sell 09 land as required by this section, all of the land the municipality has received from the 10 state that has not been sold reverts to state ownership and is available for sale or lease 11 as provided in AS 38.14. 12 * Sec. 4. AS 43.80 is amended by adding a new section to read: 13 Section 43.80.025. Taxation of land acquired under AS 38.14. 14 Notwithstanding another provision of law, land acquired from the state under AS 38.14 15 may only be taxed in the manner provided in AS 38.14.230 and is not subject to any 16 other tax of the state or a political subdivision of the state. 17 * Sec. 5. If two or more persons file for a lease on the same parcel of land under 18 AS 38.14.060 within the first seven days after 60 days after the effective date of this Act, the 19 department shall conduct a lottery for those filing within 30 days. The winner of the lottery 20 shall be entitled to lease the land if the person otherwise meets the requirements of 21 AS 38.14.030 and 38.14.040.