CSSB 108(RES): "An Act relating to the disposal of state land and interests in state land; and providing for an effective date."
00CS FOR SENATE BILL NO. 108(RES) 01 "An Act relating to the disposal of state land and interests in state land; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS. The State of Alaska, through the Alaska Statehood Act, is 05 entitled to over 105,000,000 acres of land. Alaska is one of the smallest states by population. 06 Because of its small population, the state has been overly influenced by ephemeral riches from 07 nonrenewable oil wealth. The state should envision its future without the presence of 08 petroleum as the principal source of revenue. Land is the state's most secure and permanent 09 resource. In recent years, federal and state government agencies have acquired private land 10 to place into parks and preserves in a state that already has an abundance of acreage in similar 11 land classifications. The legislature desires to reverse this trend and resuscitate the 12 entrepreneurial spirit that was achieved before and at the beginning of statehood. Alaska is 13 made up of major land holdings owned by federal, state, and local governments with relatively 14 minor portions held privately by ANCSA corporations and individuals. There is little that can
01 be done to foster a private economy without sufficient privately held land capital. Private 02 ownership of land has historically benefited people and assisted in promoting the economic 03 development of our country. The legislature therefore finds that the distribution of land to 04 citizens annually will stimulate economic development and benefit residents today and in the 05 future. 06 * Sec. 2. INTENT. (a) It is the intent of the legislature that the Department of Natural 07 Resources shall receive annual appropriations under AS 37.05.144 amounting to 10 percent 08 of the receipts accounted for from the program under AS 37.05.142 to implement the 09 requirements of sec. 4 of this Act. 10 (b) It is further the intent of the legislature that money received from the sale of land 11 classified as (1) agricultural land shall be appropriated to the agricultural revolving loan fund 12 established under AS 03.10.040, (2) forest land shall be appropriated to the state land 13 reforestation fund established under AS 41.17.300, and (3) settlement land or that is 14 unclassified shall be appropriated to the public school trust fund established under 15 AS 37.14.110. 16 (c) Nothing in this section creates a dedicated fund. 17 * Sec. 3. AS 38.05.057(f) is amended to read: 18 (f) If only one application for a parcel is received, the commissioner shall offer 19 the parcel to the applicant who applied for the parcel if the applicant is qualified to 20 participate in the lottery. If more than one application is received for a parcel, the 21 commissioner shall select the applicant who is entitled to receive a conveyance of the 22 land by lottery. If the commissioner does not receive an application for a parcel of 23 state land or if a purchaser fails to sign or defaults on a [LEASE AGREEMENT OR] 24 contract of sale, the parcel may [SHALL] be offered to the first eligible person to 25 apply for the parcel. If the director considers that a change in value may have 26 occurred since the parcel's last appraisal, the commissioner may require the 27 applicant to post a deposit under AS 38.05.860 to pay for an updated appraisal 28 under AS 38.05.840, or the applicant may provide the appraisal at the applicant's 29 expense following instructions provided by the department [PARCEL WAS 30 DESIGNATED AS A HOMESITE AND OFFERED TO THE PUBLIC UNDER 31 FORMER AS 38.05.047(f), THE PARCEL SHALL BE DISPOSED OF UNDER THE
01 TERMS REQUIRED BY AS 38.08]. 02 * Sec. 4. AS 38.05.060 is amended to read: 03 Sec. 38.05.060. Rejection of bids ; over-the-counter sales . Before the signing 04 of the formal conveyance by the director, the commissioner may reject all bids when 05 the best interests of the state justify this action. Land offered at public sale but not 06 sold , or for which a purchaser fails to sign or defaults on a contract of sale, may 07 be made available at private sale for not less than its appraised value. If the director 08 considers that a change in value may have occurred since the parcel's last 09 appraisal, the commissioner may require the applicant to post a deposit under 10 AS 38.05.860 to pay for an updated appraisal under AS 38.05.840 or to provide 11 the appraisal at the applicant's expense following instructions provided by the 12 department. 13 * Sec. 5. AS 38.05 is amended by adding a new section to read: 14 Sec. 38.05.064. Appraisal and survey costs. The commissioner may require 15 a purchaser of land, whether the purchase is by auction, lottery, or other means, to 16 (1) provide at the purchaser's expense 17 (A) an appraisal of the land completed in the manner directed 18 by the commissioner; 19 (B) a survey of the land completed in the manner directed by 20 the commissioner; 21 (2) reimburse the state for the cost of 22 (A) an appraisal of the land completed by the state; 23 (B) a survey of the land completed by the state. 24 * Sec. 6. AS 38 is amended by adding a new chapter to read: 25 Chapter 14. Alaska Land Availability Act. 26 Sec. 38.14.010. Sale of state land; exemption. (a) Notwithstanding any other 27 provision of this title, the commissioner may sell state land as provided in this chapter. 28 (b) Land may not be selected by the department under AS 38.14.040 or 29 otherwise sold under this chapter unless it is unclassified under AS 38.05.300 or, if 30 classified, it is classified as forest, agricultural, settlement, or recreational land. The 31 following land is not subject to sale under this chapter:
01 (1) land identified under AS 16.20, AS 41.15.300 - 41.15.330, 02 AS 41.17, AS 41.21, and AS 41.23; 03 (2) land subject to a grazing lease; 04 (3) land selected by a municipality under AS 29.65; and 05 (4) land used as an administrative site by the state. 06 (c) The selection of land by the department under AS 38.14.040 and the 07 disposal of land by sale under this chapter are exempt from the requirements of 08 AS 38.04 and AS 38.05. The department shall provide prior public notice as required 09 under the state constitution for disposals of state land. 10 Sec. 38.14.020. Sales to lessees; sales subject to existing leases; 11 commissioner may not convey mineral or resource rights. (a) Before land that is 12 subject to a lease is sold under this chapter, the department shall offer the land to the 13 lessee if the lessee is eligible under AS 38.14.030 to purchase land under this chapter. 14 The lessee may purchase the land for the fair market value of the land as determined 15 by an appraiser selected by the lessee from the list of appraisers approved by the 16 department under AS 38.14.160. If the land has been previously surveyed by the 17 department, the department may require the lessee to reimburse the department for the 18 costs of the survey. If the land has not been previously surveyed by the department, 19 the lessee shall comply with the requirements of AS 38.14.120 before the lessee may 20 receive fee simple title to the land. A purchase of land by a lessee under this section 21 is subject to AS 38.14.060 - 38.14.160. A lessee may purchase a maximum of 640 22 acres of land under this section during the lessee's lifetime. 23 (b) A sale of land under this chapter to a person other than the lessee is 24 subject to an existing lease entered into by the department before the sale of the land. 25 The state shall retain the lease and the payments due under the lease affecting land 26 sold to a person other than the lessee under this section. A lease affecting land sold 27 by the state under this chapter to a person other than the lessee is subject to renewal 28 or extension as provided in the terms of the lease or the law under which the lease was 29 issued. 30 (c) In a sale of land under this chapter, the commissioner may not convey a 31 mineral or resource right that the state is required to maintain under a law of this state
01 or of the United States. A sale of land under this chapter must provide for access to 02 those minerals or resources by the state or a lessee or other designee of the state. 03 Sec. 38.14.030. Eligibility to purchase land. A person may not purchase land 04 under this chapter unless the person 05 (1) is a resident of the state under AS 01.10.055 and has been a 06 resident of the state for one year; 07 (2) is an individual who is at least 18 years of age at the time of the 08 purchase; 09 (3) at the time of purchase, on a form provided by the department that 10 bears a notification that a false statement is punishable under AS 11.56.210, certifies 11 that the person 12 (A) meets the eligibility requirements of this section; 13 (B) understands that the state or a political subdivision of the 14 state is not required to provide on-site schools for the land to be acquired and 15 that the person may not require the state to provide on-site schools; and 16 (C) understands that the state is not required to construct or 17 maintain roads to the land to be acquired and that the person may not require 18 the state to construct or maintain roads to the land to be acquired. 19 Sec. 38.14.040. Selection of land for sale; over-the-counter land sales. (a) 20 By October 1, 1998, the department shall select not less than 15,000 acres of state land 21 that the department has previously identified for disposal and offer that land for sale 22 as provided in this section. Not more than 180 days thereafter, the department shall 23 select an additional 15,000 acres for sale under this section. Not more than 180 days 24 thereafter, the department shall select an additional 20,000 acres for sale under this 25 section. 26 (b) The department shall sell the land selected for sale under this section to 27 the first person eligible under AS 38.14.030 to purchase land under this chapter who 28 appears in person to purchase the land at the site or sites designated by the department 29 for the sale of land. The sale price of the land shall be the fair market value of the 30 land as determined by an appraiser selected from the list of appraisers approved by the 31 department under AS 38.14.160. The prospective purchaser shall pay for the appraisal.
01 (c) The land offered for sale under this section may be offered based upon an 02 aliquot parts description. The state is not required to provide a survey by a licensed 03 surveyor. If the state provides a survey, the state may require the purchaser to 04 reimburse the state for the survey. The purchaser may not receive appropriate title to 05 the land until the person provides the survey required under AS 38.14.120 or the state 06 is reimbursed for the cost of the survey under this section if reimbursement is required 07 by the state. Land classified as agricultural land is subject to the provisions of 08 AS 38.14.060. 09 Sec. 38.14.050. Open-to-entry land sales. (a) Not more than six months 10 after all of the land selected for sale is offered for sale under AS 38.14.040 and each 11 year thereafter, the department shall select and designate as open to entry areas of the 12 state where at least an aggregate total of 200,000 acres of state land may be staked. 13 (b) A person eligible to purchase land under AS 38.14.030 may purchase land 14 that is selected for sale and designated by the department as open to entry. 15 (c) To purchase land under this section, a prospective purchaser shall 16 personally stake the exterior boundaries of the land in accordance with the regulations 17 adopted by the department. A prospective purchaser may stake a parcel of land that 18 is not less than five acres and that does not exceed 640 acres. A prospective purchaser 19 may not stake within 100 yards of private land or previously staked land unless the 20 purchaser has received written consent from the other property owner or person who 21 has previously staked land. The parcel of land staked may not include usable 22 waterfront in excess of one-third of the total exterior boundary of the parcel. The 23 parcel of land staked shall be compact in form with its length not exceeding 24 approximately four times its width unless the commissioner finds that the land use, 25 terrain, or effect of the form on access to it and other parcels requires another form. 26 Not later than 15 days after selection and staking the exterior boundaries of land, the 27 prospective purchaser shall file a sketch plat with the department which shows the 28 location of the land and shall pay a nonrefundable filing fee to the department of $100. 29 The fair market value of the land shall be determined by an appraiser selected by the 30 purchaser from the list approved by the department under AS 38.14.160. Upon 31 payment in full of the purchase price by cash, certified check, or money order, and the
01 completion of the survey required under AS 38.14.120, the purchaser shall receive 02 appropriate title to the land. The department shall require the appraisal and survey to 03 be completed within a period of time set by regulation. Land classified as agricultural 04 land is subject to the provisions of AS 38.14.060. 05 (d) During the person's lifetime, a person may purchase a cumulative 06 maximum of 640 acres from the state under this section. 07 Sec. 38.14.060. Sales of agricultural land. Land classified as agricultural 08 land may be sold under AS 38.14.020, 38.14.040, or 38.14.050 only if the 09 commissioner includes in the document conveying the land the covenants and 10 conditions provided for under AS 38.05.321. 11 Sec. 38.14.070. Purchase by installments; void sales. (a) The department 12 shall offer a purchaser of land under AS 38.14.020, 38.14.040, or 38.14.050 the option 13 of paying the purchase price in full at the time of purchase or on terms with payment 14 of the balance of the purchase price over the next 15 years at an annual interest rate 15 of not more than six percent. 16 (b) A purchase of land under this chapter that is made in violation of this 17 chapter is void as of the date of sale and does not give the purchaser, a subsequent 18 purchaser, a lessee, a devisee, or other person a right to the land, an interest in the 19 land, or the return of the purchase price paid to the state for the land. 20 Sec. 38.14.080. Schools. The state, a municipality, or a rural educational 21 attendance area does not have a duty to provide on-site schools for a parcel of land 22 purchased by a person under this chapter. 23 Sec. 38.14.090. Rights-of-way and easements. The state shall retain a 100- 24 foot right-of-way along each section line of land sold under this chapter and shall reserve 25 other rights-of-way and easements as are necessary to reach and use public water and public 26 and private land. The state shall identify the reservations under this section at the time of a 27 sale under this chapter. 28 Sec. 38.14.100. Roads; acquisition by state. (a) The state does not have a 29 duty to construct or maintain roads to a parcel of land purchased by a person under 30 this chapter. A person acquiring land by purchase under this chapter may construct 31 a road from an existing state or municipal road to the land if the proposed route is
01 approved by the department or a municipality and the road is constructed to standards 02 set by the Department of Transportation and Public Facilities. 03 (b) A road constructed by a person who purchases land under this chapter that 04 is built on the state's section line right-of-way is open to the public and the purchaser 05 of the land may not exclude the public from its use. 06 (c) A road constructed by a person who purchases land under this chapter 07 becomes a public road, without compensation to the builder of the road, if the state or 08 a municipality agrees to accept the road and undertake responsibility for the 09 maintenance of the road. 10 Sec. 38.14.110. Applicability of municipal zoning laws. Except as otherwise 11 provided in this chapter, land disposed of by sale under this chapter is subject to 12 municipal zoning laws and regulations. 13 Sec. 38.14.120. Surveys. (a) Unless the state provided a survey at the time 14 of purchase, a person who acquires land by purchase under this chapter may not 15 receive fee simple title to the land until the person has the land surveyed at the 16 person's expense and provides a copy of that survey to the state without charge. The 17 survey shall be conducted as provided in regulations adopted by the department. 18 (b) To assist persons in completing surveys under this section, the state shall 19 ensure that at least one monument exists within five miles of each parcel of land 20 offered for sale under this chapter. 21 Sec. 38.14.130. Security deposit. A person who purchases land under this 22 chapter shall at the time of the purchase pay to the state a security deposit in the 23 amount of 10 percent of the purchase price to ensure the person's compliance with the 24 requirements of this chapter and other laws. The payment of this security deposit does 25 not immunize the person from liability for violations of this chapter or other laws nor 26 limit the ability or authority of the state to require compliance with and to enforce the 27 laws of the state. The department may, without process of any kind, expend the 28 deposit to cover costs incurred by the state, damage to the land, or a diminution in the 29 value of the land caused by the person's violation of the requirements of this chapter 30 or other laws. The department shall refund the deposit to the person after the person 31 pays the purchase price in full to the state.
01 Sec. 38.14.140. Additional terms and conditions. The department may not 02 impose terms and conditions in excess of those provided in this chapter or by the state 03 constitution. 04 Sec. 38.14.150. Mapping. To aid persons in making purchase choices under 05 this chapter, the state shall provide maps of state lands and plats that identify the 06 parcels available for purchase under this chapter. The state may charge a fee for the 07 maps and plats sufficient to cover the state's cost for reproducing the maps and plats. 08 Sec. 38.14.160. Appraiser list. The department shall compile a list of real 09 estate appraisers who are licensed under AS 08.87 and who have provided evidence 10 to the department that they are skilled in the appraisal of undeveloped land. 11 Sec. 38.14.300. Definitions. In this chapter, 12 (1) "commissioner" means the commissioner of natural resources; 13 (2) "department" means the Department of Natural Resources. 14 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).