HB 390: "An Act creating a State Land Commission and regional land disposal advisory boards; providing for the disposal of 250,000 acres of state land annually; changing the residency requirements for bidders at land auction sales; amending other laws relating to disposal of state land; and providing for an effective date."
00HOUSE BILL NO. 390 01 "An Act creating a State Land Commission and regional land disposal advisory 02 boards; providing for the disposal of 250,000 acres of state land annually; 03 changing the residency requirements for bidders at land auction sales; amending 04 other laws relating to disposal of state land; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 07 section to read: 08 FINDINGS AND INTENT. (a) The legislature finds that Alaska is rich in natural 09 resources, of which only a few have been developed. Over the past 20 years, the state has 10 become almost solely dependent on oil revenues, which fluctuate drastically depending on 11 world events. It is imperative for the future well-being of our state and its citizens that we 12 develop a more stable source of revenue. 13 (b) It is the intent of the legislature 14 (1) that the Department of Natural Resources immediately embark on a
01 systematic process of identifying land to be sold to the public to promote the development and 02 use of our resources; and 03 (2) that the Department of Natural Resources make available for sale not less 04 than 250,000 acres a year, commencing on the effective date of this Act. 05 * Sec. 2. AS 38.04 is amended by adding new sections to article 2 to read: 06 Sec. 38.04.016. Creation of State Land Commission; powers of the 07 commission. (a) There is created the State Land Commission within the Department 08 of Natural Resources. The commission consists of five members appointed by the 09 governor and confirmed by the legislature in joint session. 10 (b) The members of the commission must include a real estate appraiser 11 certified under AS 08.87, a real estate broker licensed under AS 08.88, and a land 12 surveyor registered under AS 08.48, each chosen by the governor from a list of 13 nominees provided by the respective state licensing, certification, or registration 14 authority, and two other individuals. No more than three commissioners may be 15 members of the same political party. 16 (c) The members of the commission serve staggered three-year terms. 17 (d) Members of the commission serve without compensation but are entitled 18 to per diem and travel expenses authorized for members of boards and commissions 19 under AS 39.20.180. 20 (e) The commission shall meet annually. 21 (f) The commission may employ staff and contract for services relating to 22 matters within its authority. 23 Sec. 38.04.018. Creation of land disposal advisory boards. (a) There are 24 created within the Department of Natural Resources land disposal advisory boards. A 25 land disposal advisory board shall be established for each borough and unified 26 municipality within the state, except the unorganized borough. 27 (b) The department shall establish regional advisory boards for each model 28 borough within the unorganized borough listed on the Department of Community and 29 Economic Development map entitled "Borough Boundaries Map, Organized Boroughs 30 and Model Unorganized Boroughs," dated March 1999. 31 (c) Each advisory board consists of five residents of the borough, unified
01 municipality, or model borough, three appointed by the president of the senate and two 02 appointed by the speaker of the house. 03 (d) Advisory board members serve staggered three-year terms. 04 (e) Members of the advisory boards serve without compensation and are not 05 entitled to per diem and travel expenses. 06 (f) The advisory boards shall meet annually. 07 (g) Each advisory board shall keep minutes of each of its meetings and 08 forward a copy of those minutes to the commission. 09 * Sec. 3. AS 38.04.020(a) is amended to read: 10 (a) The commissioner shall establish a land disposal bank containing state land 11 classified for disposal into private ownership. From this land disposal bank, a 12 minimum of 250,000 acres each year shall be disposed of by the State Land 13 Commission created under AS 38.04.016. 14 * Sec. 4. AS 38.04.020(d) is amended to read: 15 (d) The 250,000 acres of land in the land bank to be disposed of annually 16 shall be identified as follows: 17 (1) each land disposal advisory board established under 18 AS 38.04.018 shall identify state land within its borough or region that should be 19 offered for sale; each land disposal advisory board shall annually provide to the 20 State Land Commission a list of land identified as appropriate for sale; parcels 21 identified as appropriate for sale must consist of 160 acres or more, except that 22 parcels identified by an advisory board as suitable for recreation and homesites 23 must consist of 40 acres or more, individual parcels in subdivisions intended for 24 private residential or recreational use may not exceed five acres unless a larger 25 parcel is required under (h) of this section, and parcels identified by an advisory 26 board as suitable for remote cabins or for any part of which a remote cabin 27 permit has been issued must consist of approximately five acres; the list shall be 28 divided into [BY JANUARY 15 OF THE SECOND SESSION OF EACH 29 LEGISLATURE, THE COMMISSIONER SHALL NOTIFY THE LEGISLATURE 30 THAT THE COMMISSIONER HAS AVAILABLE A REPORT ON THE STATUS 31 OF LAND IN THE LAND DISPOSAL BANK UNDER] the following categories:
01 (A) [(1)] land suitable for homestead disposal; 02 (B) [(2)] land suitable for subdivision disposal; 03 (C) [(3)] land suitable for agricultural, commercial, or industrial 04 disposal; and 05 (D) [(4)] land suitable for other purposes ; 06 (2) the State Land Commission shall review and compile the lists 07 submitted by the land disposal advisory boards; the commission may identify 08 additional lands suitable for disposal; the commission shall submit to the 09 legislature before the beginning of each regular legislative session a categorized 10 list of all of the parcels identified as appropriate for sale; the list must include 11 parcels from each of the categories under (1)(A) - (D) of this subsection and must 12 include five-acre and 40-acre parcels, and the total acreage of the parcels on the 13 list submitted under this paragraph must be at least 250,000 acres; 14 (3) the legislature may change the classification or categorization 15 of parcels identified for disposal, or remove parcels from the list; the remaining 16 land on the list submitted to the legislature by the State Land Commission shall 17 be offered for sale by the State Land Commission at auction under AS 38.05.055, 18 except land classified for homesite entry, which will be disposed of according to 19 AS 38.08.010 - 38.08.120; land offered at auction but not sold may be advertised 20 by the State Land Commission on the Internet and offered at sealed-bid auction 21 in accordance with department regulations; in no case shall land be sold by the 22 State Land Commission for less than appraised fair market value . 23 * Sec. 5. AS 38.04.020(e) is amended to read: 24 (e) The commission [COMMISSIONER] shall annually submit to the governor 25 an appropriation request for funding estimated to be necessary for the next two years 26 to allow 27 (1) survey and disposal of land proposed to be made available for 28 homestead staking, with the general location of the land; 29 (2) survey and disposal of land to be offered as subdivision, 30 agricultural, commercial, industrial, or other uses under AS 38.05.055 or 38.05.057, 31 with the general location of the land;
01 (3) [THE SURVEY AND DISPOSAL OF LAND PROPOSED TO BE 02 OFFERED AS SUBDIVISIONS, WITH THE GENERAL LOCATION OF THE 03 LAND; 04 (4) PRELIMINARY FEASIBILITY STUDIES, ENGINEERING 05 DESIGN WORK, RIGHT-OF-WAY ACQUISITION, AND CONSTRUCTION OF 06 ACCESS ROADS AND CAPITAL IMPROVEMENTS REQUIRED BY MUNICIPAL 07 SUBDIVISION ORDINANCE OR REGULATION OF THE PLATTING 08 AUTHORITY; 09 (5)] identification of land that will be proposed for disposal under this 10 subsection in future fiscal years. 11 * Sec. 6. AS 38.04.020(f) is amended to read: 12 (f) The request of the commission [COMMISSIONER] under (e) of this 13 section must [SHALL] include an analysis and an assessment of the market demand 14 for the land proposed for disposal. 15 * Sec. 7. AS 38.04.020(g) is amended to read: 16 (g) After July 1 of each year, the commission [COMMISSIONER] shall direct 17 the expenditure of money appropriated for the disposal of land in response to requests 18 made under (e) and (f) of this section [FOR THE FOLLOWING: 19 (1) LAND DESIGNATED AS SUITABLE FOR HOMESTEAD 20 DISPOSAL SHALL BE CLASSIFIED AND SURVEYED UNDER THIS CHAPTER 21 AND AS 38.05 AND MADE AVAILABLE FOR STAKING AND LEASE UNDER 22 AS 38.09. 23 (2) LAND DESIGNATED AS SUITABLE FOR SUBDIVISION AND 24 HOMESITE DISPOSAL SHALL BE SURVEYED, SUBDIVIDED, CLASSIFIED, 25 AND DISPOSED OF UNDER THIS CHAPTER, AS 38.05, AND AS 38.08. 26 (3) LAND DESIGNATED AGRICULTURAL, COMMERCIAL, 27 INDUSTRIAL, OR SUITABLE FOR OTHER DISPOSAL SHALL BE SOLD UNDER 28 AS 38.05.055 OR 38.05.057]. 29 * Sec. 8. AS 38.04.020(h) is amended to read: 30 (h) Individual parcels disposed of in subdivisions intended for private 31 residential or recreational use may not exceed five acres unless the commission
01 [COMMISSIONER] determines that a larger size is necessary to comply with 02 municipal ordinances; to permit the design of a viable subdivision because of 03 topographical features, soil conditions, on-site sewage disposal requirements, or water 04 drainage or supply considerations that are unique to the subdivision; to increase the 05 return to the state from the sale of the parcels; to minimize adverse effect on wildlife, 06 fishery, public recreation, timber, or other significant resources in the area; or to 07 minimize adverse effect on other residential uses in the area. 08 * Sec. 9. AS 38.04.022(a) is amended to read: 09 (a) The revenue from the sale of state land shall be deposited in a special state 10 land disposal income account in the state general fund. The legislature may 11 appropriate money from the special state land disposal income account for expenditure 12 by the Department of Natural Resources for necessary costs incurred by the State 13 Land Commission [COMMISSIONER] in the implementation of state land disposal 14 programs authorized under this title. 15 * Sec. 10. AS 38.04.030 is amended to read: 16 Sec. 38.04.030. Land availability programs. Programs that may be used by 17 the State Land Commission [DIRECTOR] to make the state's land surface available 18 for private use under AS 38.04.020 - 38.04.055 include sale of whole or partial rights 19 to the fee simple estate, including conveyance of agricultural use rights . Programs 20 that may be used by the director to make the state's land surface available for 21 private use under AS 38.04.020 - 38.04.055 include [;] leasing , [;] open-to-entry , [;] 22 homesiting , [;] homesteading , [;] permitting for construction and occupation of cabins 23 in isolated locations on land retained in state ownership , [;] and other methods as 24 provided by law. 25 * Sec. 11. AS 38.04.060(a) is amended to read: 26 (a) The State Land Commission [COMMISSIONER] shall prepare and 27 maintain on a continuing basis an inventory of all state land and water and their 28 resource and other values, giving priority to areas of potential settlement, economic 29 development, and critical environmental concern. The inventory must identify the 30 land that is in the land disposal bank established under AS 38.04.020. This 31 inventory shall be kept current so as to reflect changes in conditions and to identify
01 new and emerging resource and other values. 02 * Sec. 12. AS 38.04.910 is amended by adding a new paragraph to read: 03 (14) "commission" means the State Land Commission created under 04 AS 38.04.016. 05 * Sec. 13. AS 38.05.030 is amended by adding a new subsection to read: 06 (h) The provisions of AS 38.05.005 - 38.05.037, 38.05.045 - 38.05.069, and 07 38.05.600 do not apply to the State Land Commission or to the land disposal bank, 08 except as specified in AS 38.04. 09 * Sec. 14. AS 38.05.055 is amended to read: 10 Sec. 38.05.055. Auction sale procedures. Unless another method of sale is 11 required under this chapter, AS 38.08, or AS 38.09, the sale of state land shall be 12 made at public auction to the highest qualified bidder as determined by the director or 13 the State Land Commission . The director may accept bids and sell state land under 14 this section at no less than 70 percent of the appraised fair market value of the land. 15 To qualify to participate under this section in a public auction of state land that is 16 other than commercial, industrial, or agricultural land, a bidder shall meet the 17 residency criteria for eligibility for a permanent fund dividend in the calendar 18 year [HAVE BEEN A RESIDENT OF THE STATE FOR AT LEAST ONE YEAR 19 IMMEDIATELY PRECEDING THE DATE] of the auction and submit proof of that 20 fact as the commissioner requires by regulation. A bidder may be represented by an 21 attorney or agent at the auction. An aggrieved bidder may appeal to the commissioner 22 within five days after the sale for a review of the director's or the State Land 23 Commission's determination. The sale shall be conducted by the director or the State 24 Land Commission , and, at the time of sale, the successful bidder shall deposit an 25 amount equal to five percent of the purchase price. The director shall immediately 26 issue a receipt containing a description of the land or property purchased, the price bid, 27 and the amount deposited. The receipt shall be acknowledged in writing by the bidder. 28 * Sec. 15. AS 38.05.057(f) is amended to read: 29 (f) If only one application for a parcel is received, the commissioner shall offer 30 the parcel to the applicant who applied for the parcel if the applicant is qualified to 31 participate in the lottery. If more than one application is received for a parcel, the
01 commissioner shall select the applicant who is entitled to receive a conveyance of the 02 land by lottery. If the commissioner does not receive an application for a parcel of 03 state land or if a purchaser fails to sign or defaults on a [LEASE AGREEMENT OR] 04 contract of sale, the parcel may [SHALL] be offered to the first eligible person to 05 apply for the parcel. If the director considers that a change in value may have 06 occurred since the parcel's last appraisal, the commissioner may require the 07 applicant to post a deposit under AS 38.05.860 to pay for an updated appraisal 08 under AS 38.05.840, or the applicant may provide the appraisal at the applicant's 09 expense following instructions provided by the department [PARCEL WAS 10 DESIGNATED AS A HOMESITE AND OFFERED TO THE PUBLIC UNDER 11 FORMER AS 38.05.047(f), THE PARCEL SHALL BE DISPOSED OF UNDER THE 12 TERMS REQUIRED BY AS 38.08]. 13 * Sec. 16. AS 38.05.060 is amended to read: 14 Sec. 38.05.060. Rejection of bids ; over-the-counter sales . Before the signing 15 of the formal conveyance by the director, the commissioner may reject all bids when 16 the best interests of the state justify this action. Land offered at public sale but not 17 sold , or for which a purchaser fails to sign or defaults on a contract of sale, may 18 be made available at private sale for not less than its appraised value. If the director 19 considers that a change in value may have occurred since the parcel's last 20 appraisal, the commissioner may require the applicant to post a deposit under 21 AS 38.05.860 to pay for an updated appraisal under AS 38.05.840 or to provide 22 the appraisal at the applicant's expense following instructions provided by the 23 department. 24 * Sec. 17. AS 38.05 is amended by adding a new section to read: 25 Sec. 38.05.064. Appraisal and survey costs. The commissioner may require 26 a purchaser of land, whether the purchase is by auction, lottery, or other means, to 27 (1) provide at the purchaser's expense 28 (A) an appraisal of the land completed in the manner directed 29 by the commissioner; 30 (B) a survey of the land completed in the manner directed by 31 the commissioner;
01 (2) reimburse the state for the cost of 02 (A) an appraisal of the land completed by the state; 03 (B) a survey of the land completed by the state. 04 * Sec. 18. AS 38.05.840(a) is amended to read: 05 (a) Land may not be sold or leased, or a renewal lease issued, except in the 06 case of an oil or gas or mineral lease [,] unless it has been appraised within five 07 [TWO] years before the date fixed for the sale or lease. The commission may, in its 08 discretion, require a more recent appraisal. When land is offered at public sale but 09 is not sold and is available at private sale, a reappraisal is not required unless the 10 director considers that a change in value of the land may have occurred. A grazing 11 lease may be granted to a lessee of federal grazing land without prior appraisal if the 12 federal lease was cancelled to allow the state to select the land under lease. Land may 13 not be sold or leased for less than the approved, appraised market value, except as 14 provided in AS 38.05.055, 38.05.057, 38.05.075 - 38.05.085, 38.05.097, 38.05.810, and 15 38.05.820. 16 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section 17 to read: 18 TRANSITIONAL PROVISIONS. The commissioner of natural resources shall identify 19 and provide the State Land Commission with a list of the land in the land disposal bank on 20 the effective date of this section. The list must identify each parcel as specifically as possible, 21 providing legal descriptions where available. The list must include all land not classified for 22 retention in state ownership or selected by a municipality. 23 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section 24 to read: 25 INITIAL TERMS. (a) The initial terms of the members of the State Land 26 Commission appointed under AS 38.04.016 shall be set by the governor so that one member 27 serves a one-year term, two members serve two-year terms, and two members serve three-year 28 terms. 29 (b) The initial terms of the members of the land advisory boards appointed under 30 AS 38.04.018 by the president of the senate shall be set by the president, with one initial 31 member of each board serving a one-year term, one serving a two-year term, and one serving
01 a three-year term. The initial terms of members of the land advisory boards appointed under 02 AS 38.04.018 by the speaker of the house shall be set by the speaker, with one initial member 03 serving a two-year term, and one serving a three-year term. 04 * Sec. 21. This Act takes effect immediately under AS 01.10.070(c).