CSSB 109(FIN) AM: "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 relate to agricultural land and agricultural homesteads."
00CS FOR SENATE BILL NO. 109(FIN) am 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 relate to agricultural land and agricultural 05 homesteads." 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 perpetual covenant running with the land that restricts or 10 limits use of the land for 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 may provide 22 for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses in parcels 23 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 may not 09 exceed 9.5 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 perpetual covenant for the benefit of all Alaska residents and 02 running with the land that restricts or limits the use of the land for agricultural 03 purposes; and 04 (2) a perpetual covenant for the benefit of all Alaska residents and 05 running with the land permitting the owner of the land to subdivide and convey the 06 land in four parcels of not less than 40 acres each. 07 * Sec. 10. AS 38.05.321(b) is amended to read: 08 (b) Subject to (a) of this section, state [STATE] land classified as agricultural 09 land that has been selected by a municipality under former AS 29.18.190 - 29.18.200 10 or former AS 29.18.205(e) may be approved by the director for patent under 11 AS 29.65.050(c) [; HOWEVER, ONLY RIGHTS IN THE LAND FOR 12 AGRICULTURAL PURPOSES MAY BE TRANSFERRED AND ALL OTHER 13 INTERESTS IN THE LAND WILL REMAIN WITH THE STATE]. Agricultural land 14 approved for patent to a municipality shall be credited, acre for acre, toward fulfillment 15 of that municipality's entitlement under AS 29.65.010 - 29.65.030 or former 16 AS 29.18.201 - 29.18.203. [IF THE DIRECTOR LATER DETERMINES IT TO BE 17 IN THE BEST INTERESTS OF THE STATE TO TRANSFER SOME OR ALL OF 18 THE ADDITIONAL RIGHTS IN THAT APPROVED OR PATENTED 19 AGRICULTURAL LAND, THOSE RIGHTS SHALL PASS WITHOUT 20 CONSIDERATION TO THE MUNICIPALITY IN WHICH THE LAND IS 21 LOCATED. THE NOTICE AND REVIEW PROVISIONS OF AS 38.05.945 ARE 22 APPLICABLE TO CONVEYANCE OF RIGHTS UNDER THIS SECTION.] 23 * Sec. 11. AS 38.05.321 is amended by adding new subsections to read: 24 (d) For state land classified as agricultural land that is conveyed under (a) of 25 this section, 26 (1) the commissioner may require the landowner to cooperate with the 27 appropriate soil and water conservation district under AS 41.10 in the development and 28 implementation of soil conservation plans as authorized by AS 41.10.110(6); 29 (2) as a condition of the conveyance, the commissioner may not require 30 preparation and implementation of a farm development plan unless the commissioner 31 permits modification of a plan in cases of economic hardship or other extenuating
01 circumstances; 02 (3) the commissioner may not limit the right of a landowner to 03 (A) construct housing for the landowner and farm laborers, and 04 improvements for animals or that are reasonably required for or related to 05 agricultural use on the original parcel and on additional subdivided parcels 06 authorized under (a)(2) of this section; 07 (B) use the land and improvements for purposes that are 08 incidental to and not inconsistent with the primary use of the land for 09 agricultural purposes; and 10 (C) subdivide and convey the land if the resulting parcels are 11 not in violation of the minimum parcel size set out in (a)(2) of this section. 12 (e) A landowner may subdivide land classified for agricultural use and for 13 which the landowner obtained a patent under a homestead entry permit issued under 14 AS 38.09 so long as the resulting parcels are not in violation of the minimum parcel 15 size set out in (a)(2) of this section. A landowner may subdivide other land classified 16 for agricultural use as authorized under (d)(3)(C) of this section. If the subdivision 17 involves land classified for agricultural use and for which the landowner obtained a 18 patent under a homestead entry permit issued under AS 38.09, or if the subdivision of 19 land authorized under (d)(3)(C) of this section results only in parcels of 640 acres or 20 more, the landowner may subdivide without payment as required by this subsection. 21 If subdivision of land authorized by (d)(3)(C) of this section would result in one or 22 more parcels of less than 640 acres, the landowner may subdivide only if the 23 landowner first tenders payment to the department for the fair market value of the 24 interest in each subdivided parcel of less than 640 acres exclusive of the value of the 25 rights for agricultural purposes. For purposes of this subsection, fair market value of 26 the interest in a parcel exclusive of the value of the rights for agricultural purposes 27 (1) is $6,000 for the parcel, subject to adjustment under (h) of this 28 section; or 29 (2) shall be determined by an appraisal by an appraiser under contract 30 to the owner of the rights for agricultural purposes in the parcel; the appraisal must 31 (A) be based upon the value of the parcel at the time of the
01 original state conveyance of the agricultural rights, subject to adjustment under 02 (h) of this section; and 03 (B) include the fair market value, determined as of the date of 04 subdivision, of the interests in land based on the value, if any, of the additional 05 rights that are confirmed in the landowner under (d)(3)(A) of this section. 06 (f) Notwithstanding (e) of this section, the owner of the rights to agricultural 07 land is not required to pay an amount due under (e)(1) or (2) of this section until the 08 subdivided parcel is conveyed by the owner to a person not a member of the person's 09 immediate family. The department has a lien on the parcel as security for payment of 10 the amount due. For purposes of this subsection, "immediate family" means 11 (1) the spouse or spousal equivalent of the person; or 12 (2) a parent, child, including a stepchild and an adoptive child, or 13 sibling of the person if the parent, child, or sibling resides with the person, is 14 financially dependent on the person, or shares a substantial financial interest with the 15 person. 16 (g) A perpetual covenant described in (a) of this section may be enforced only 17 by a civil action brought by the state, a municipality, or a resident. If a municipality 18 or a resident brings an action under this subsection, the municipality or resident shall 19 also serve a copy of the summons and complaint on the state in the manner prescribed 20 by the Alaska Rules of Civil Procedure for service on the state. An action may be 21 maintained under this subsection only if 22 (1) commenced within six years after the cause of action has accrued; 23 and 24 (2) the plaintiff has first notified in writing the appropriate soil and 25 water conservation district under AS 41.10 of the violation of the covenant at least 90 26 days before the civil action is filed. 27 (h) The value of the rights for agricultural purposes determined under (e)(1) 28 or (e)(2)(A) of this section shall be adjusted to correspond with the change in the 29 consumer price index for all urban consumers for the Anchorage Metropolitan Area 30 compiled by the Bureau of Labor Statistics, United States Department of Labor. The 31 base year for the computation shall be the calendar year in which the process of
01 conveyance of state land authorized by (a) of this section is initiated under this section. 02 (i) In this section, "agricultural purposes" means 03 (1) the production, for commercial or personal use, of useful plants and 04 animals; 05 (2) the construction of housing for owners and farm laborers, or 06 improvements for animals or that are reasonably required for or related to agricultural 07 use; 08 (3) the use of gravel reasonably required or related to agricultural 09 production on the parcel conveyed; and 10 (4) removal and disposition of timber in order to bring agricultural land 11 into use. 12 * Sec. 12. CONVERSION OF DISPOSALS MADE UNDER AS 38.05.069(c) OR UNDER 13 FORMER AS 38.05.321(a). (a) The provisions of AS 38.05.321(a), as amended by sec. 9 14 of this Act, apply to state land classified as agricultural land that, under AS 38.05.069(c) or 15 under AS 38.05.321(a) before its amendment by sec. 9 of this Act, was subject to the 16 limitation of the conveyance of only the interest in the land that related to agricultural 17 purposes and that was sold, leased, or disposed of by the state after August 15, 1976, and 18 before the effective date of this Act. 19 (b) When the owner of the rights for agricultural purposes in land described in this 20 section applies to the Department of Natural Resources, the commissioner of natural resources 21 shall issue a new instrument of conveyance for the land that conforms to AS 38.05.321(a) and 22 (d), as amended and enacted by secs. 9 and 11 of this Act. The commissioner of natural 23 resources may issue a new instrument of conveyance under this section only if the owner of 24 the rights tenders 25 (1) a deed or other appropriate instrument of conveyance transmitting the 26 owner's interests in the land to the state, accompanied by title insurance coverage for or a title 27 report affirming ownership of the rights in the person making application under this 28 subsection; or 29 (2) an affidavit of ownership accompanied by a limited liability report 30 affirming ownership of the rights in the person making application under this subsection and 31 a copy of the original patent showing recording information.
01 (c) Until the commissioner of natural resources issues the new instrument of 02 conveyance under (b) of this section, when necessary to enforce a state interest in the land, 03 the state may enforce the interests in the land in the manner authorized by the instrument of 04 conveyance that transferred the rights for agricultural purposes. 05 * Sec. 13. CONVERSION OF DISPOSALS MADE UNDER FORMER AS 38.05.321(b). 06 (a) The provisions of AS 38.05.321(a), as amended by sec. 9 of this Act, apply to state land 07 classified as agricultural land that, under AS 38.05.321(b) before its amendment by sec. 10 08 of this Act, was subject to the limitation of the conveyance of only the interest in the land that 09 related to agricultural purposes and that was conveyed by the state to a municipality after 10 June 30, 1978, and before the effective date of this Act. 11 (b) When a municipality holding the rights for agricultural purposes in land described 12 in this section applies to the Department of Natural Resources, the commissioner of natural 13 resources shall issue a new instrument of conveyance for the land that conforms to 14 AS 38.05.321, as amended by secs. 9 - 11 of this Act. The commissioner of natural resources 15 may issue a new instrument of conveyance under this section only if 16 (1) the municipality tenders payment to the department for the fair market 17 value of the interest in the land exclusive of the value of the rights for agricultural purposes; 18 for purposes of this paragraph, 19 (A) for a parcel of land that does not exceed 640 acres, fair market 20 value of the interest in the land exclusive of the value of the rights for agricultural 21 purposes is $6,000 for the parcel; 22 (B) except for land described in (A) of this paragraph, fair market value 23 of the interest in land exclusive of the value of the rights for agricultural purposes shall 24 be determined by an appraisal by an appraiser under contract to the municipality; the 25 appraisal must be based upon the value of the land at the time of the original state 26 conveyance of the agricultural rights; and 27 (2) a deed or other appropriate instrument of conveyance returning the 28 municipality's interests in the land to the state, accompanied by title insurance coverage for 29 or a title report affirming the municipality's ownership of the rights. 30 (c) Until the commissioner of natural resources issues the new instrument of 31 conveyance under (b) of this section, when necessary to enforce a state interest in the land,
01 the state may enforce the interests in the land in the manner authorized by the instrument of 02 conveyance that transferred the rights for agricultural purposes. 03 * Sec. 14. A person who, before January 1, 1997, obtained a parcel of land classified as 04 agricultural land that had been subdivided as allowed by the Department of Natural Resources 05 may obtain title to that parcel of land in the manner authorized by AS 38.05.321, except that 06 the landowner may not further subdivide the parcel. The commissioner of natural resources 07 shall provide with the deed or other appropriate instrument of conveyance a covenant 08 restricting the landowner from subdividing the parcel. 09 * Sec. 15. The following regulations are annulled: 11 AAC 67.149(b), 11 AAC 67.154, 10 11 AAC 67.155, 11 AAC 67.162, 11 AAC 67.165, 11 AAC 67.167(d), 11 AAC 67.170, 11 11 AAC 67.172, 11 AAC 67.175(1), 11 AAC 67.185, 11 AAC 67.187, 11 AAC 67.188(a)(3), 11 12 AAC 67.188(a)(4), 11 AAC 67.188(a)(5), 11 AAC 67.188(a)(6), 11 AAC 67.188(b), 11 AAC 13 67.188(c), 11 AAC 67.190(a), 11 AAC 67.192.