00CS FOR SENATE BILL NO. 98(CRA)                                                                                          
01 "An Act relating to the conveyance of certain isolated tracts of state land to                                          
02 municipalities; and providing for an effective date."                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 29.65 is amended by adding a new section to read:                                                   
05  Sec. 29.65.085.  Conveyance of isolated tracts.  (a)  Consistent with the best                                        
06 interest of the state, it is the policy of the state to provide municipalities title to                                 
07 isolated tracts of vacant, unappropriated, unreserved land within their boundaries.                                     
08  (b)  The commissioner of natural resources may convey under this section an                                           
09 isolated tract of vacant, unappropriated, unreserved land within the boundaries of a                                    
10 municipality to the municipality upon application for the tract by the municipality.                                    
11 The commissioner of natural resources shall give special consideration to conveyance                                    
12 of a tract that is contiguous to or near other municipal land.  The commissioner of                                     
13 natural resources shall consider the value of the tract to the state and may approve an                                 
14 application for conveyance of the tract only if the commissioner finds that the                                         

01 conveyance will be in the best interest of the state because the conveyance will:                                       
02   (1)  consolidate land ownership patterns;                                                                            
03   (2)  result in more cost-effective and efficient land management;                                                    
04   (3)  achieve the land use planning objectives of the state and the                                                   
05 municipality in which the tract is located; and                                                                         
06   (4)  not adversely affect present or future interests of the state.                                                  
07  (c)  An isolated tract of land may not be conveyed under this section to a                                            
08 municipality unless the general grant land entitlement of that municipality under                                       
09 AS 29.65.010 - 29.65.030 has been fulfilled.  A municipality may only receive a total                                   
10 amount of land under this section that is equal to or less than 15 percent of the general                               
11 grant land entitlement for that municipality under AS 29.65.010 - 29.65.030.                                            
12  (d)  When a tract is conveyed under this section, the commissioner shall require                                      
13 the municipality to pay an amount that is fair, proper, and in the best interests of the                                
14 public, but that does not exceed the fair market value of the tract.                                                    
15    * Sec. 2.  This Act takes effect July 1, 1997.