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CSHB 319(RES): "An Act relating to the disposal of state land by lottery; relating to the reservation of rights by the state in land contracts and deeds; and relating to the disposal, including sale or lease, of remote recreational cabin sites."

00 CS FOR HOUSE BILL NO. 319(RES) 01 "An Act relating to the disposal of state land by lottery; relating to the reservation of 02 rights by the state in land contracts and deeds; and relating to the disposal, including 03 sale or lease, of remote recreational cabin sites." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.057(a) is amended to read: 06 (a) The commissioner may dispose of land, including land limited to use for 07 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 08 the fair market value of the land as determined by the commissioner. The 09 commissioner may sell land by lottery for less than the fair market value of the land on 10 a determination that scarcity of land for private use in the area of the land to be sold 11 has resulted in unrealistic land values. The lottery shall be conducted in public by the 12 commissioner. A purchaser selected by lot shall deposit an amount equal to 10 [FIVE] 13 percent of the purchase price within 30 days after receiving notification of the 14 selection.

01 * Sec. 2. AS 38.05.125(a) is amended to read: 02 (a) Each contract for the sale, lease, or grant of state land, and each deed to 03 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 04 38.05.321, 38.05.600, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50, except as 05 provided in AS 38.50.050, is subject to the following reservations: "The party of the 06 first part, Alaska, hereby expressly saves, excepts, and reserves out of the grant hereby 07 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 08 minerals, fissionable materials, geothermal resources, and fossils of every name, kind, 09 or description, and which may be in or upon said land above described, or any part 10 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, 11 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 12 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 13 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 14 servants upon said land, or any part or parts thereof, at any and all times for the 15 purpose of opening, developing, drilling, and working mines or wells on these or other 16 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 17 fissionable materials, geothermal resources, and fossils, and to that end it further 18 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 19 assigns forever, the right by its or their agents, servants, and attorneys at any and all 20 times to erect, construct, maintain, and use all such buildings, machinery, roads, 21 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such 22 soil, and to remain on said land or any part thereof for the foregoing purposes and to 23 occupy as much of said land as may be necessary or convenient for such purposes 24 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 25 generally all rights and power in, to, and over said land, whether herein expressed or 26 not, reasonably necessary or convenient to render beneficial and efficient the complete 27 enjoyment of the property and rights hereby expressly reserved. Filing of a claim for 28 relief by an owner against the state or a person entering, opening, developing, 29 drilling, and working mines or wells on these or other lands, not based on 30 physical damage to the owner's land, that hampers these reservations constitutes 31 a breach of this contract and will result in an immediate assessment against the

01 owner for a penalty equal to 150 percent of the current appraised value of the 02 land, including the value of improvements. Failure to pay this assessment will 03 result in foreclosure proceedings by the state." 04 * Sec. 3. AS 38.05.125 is amended by adding a new subsection to read: 05 (d) The owner of land subject to the reservation under (a) of this section, who 06 brings suit against a person, including the state, for entering the land for the purpose of 07 opening, developing, drilling, and working mines or wells on the land or adjacent 08 lands, is subject to a penalty for breach of contract equal to 150 percent of the 09 appraised value of the land. The penalty does not apply if the suit is based solely on 10 physical damage to the owner's land. The penalty is a lien in favor of the state upon 11 the property of the owner subject to the reservation under (a) of this section and arises 12 at the time suit is filed. The commissioner may bring a foreclosure proceeding if the 13 penalty is not paid within 60 days after the owner files suit. In this subsection, 14 "appraised value of the land" means the current appraised value, including the value of 15 improvements. 16 * Sec. 4. AS 38.05.600(a) is amended to read: 17 (a) The commissioner may provide for the sale or lease of state land for 18 remote recreational cabin sites. Sales under this section shall be at fair market value 19 determined as of the time of entry by the department or by an appraiser from the 20 list of appraisers approved by the department. Land to be sold under this section 21 shall be surveyed before sale by the department or by a surveyor registered 22 under AS 08.48. The appraisal and survey shall be completed within 24 months 23 of entry. The [, AND THE] purchaser shall pay for the appraisal and survey or 24 reimburse the state for the appraisal, survey, and platting costs for the recreational 25 cabin site. Sales under this section may be at public or private sale under (g) of 26 this section. 27 * Sec. 5. AS 38.05.600 is amended by adding new subsections to read: 28 (d) Each year, subject to appropriation from the state land disposal income 29 fund under AS 38.04.022, to implement this section, the commissioner shall 30 (1) prepare a schedule of land offerings under this section and identify 31 the parcels for disposal each year; the land offerings may not include mineral land

01 selected by the state or lands identified by the department as having a high mineral 02 potential; the department's identification of land having a high mineral potential shall 03 be based on standards adopted by the department in regulations and shall include 04 consideration of a geophysical survey or geological evaluation, if any, that was 05 conducted within 15 calendar years before the year for which the schedule is prepared; 06 and 07 (2) provide public notice of the proposed land offerings. 08 (e) The space between remote recreational cabin sites offered under this 09 section may not be less than 660 feet in any direction. 10 (f) The commissioner may solicit nominations each year from the public for 11 areas to be offered for disposal under this program. The commissioner may add areas 12 nominated by the public to the schedule prepared under (d) of this section if the land is 13 classified for disposal or the disposal is consistent with other requirements of 14 AS 38.04 and this chapter. 15 (g) A person may nominate a parcel for disposal under this section and request 16 a right of first refusal. If the commissioner accepts the nomination of a parcel for 17 disposal, the commissioner may also provide for disposal of additional parcels in the 18 surrounding area, subject to (d)(1) and (f) of this section. 19 (h) A parcel sold under this section may not exceed five acres. A parcel sold 20 under this section may include lake, river, or other navigable water frontage, subject to 21 the following limitations: 22 (1) the lake, river, or other navigable water frontage must be at least 23 300 feet and may not exceed 400 feet; 24 (2) only one parcel with frontage on a lake may be sold under this 25 section for each five acres of water of that lake unless, in the public interest, the 26 commissioner adopts a regulation indicating a different ratio of water to each parcel 27 with frontage; 28 (3) a parcel sold under this section with frontage on a river must be 29 located at least one-quarter of a meander mile from any other parcel with river 30 frontage sold under this section; and 31 (4) a parcel sold under this section is subject to 16 U.S.C. 3101(d) and

01 16 U.S.C. 3213 (Alaska National Interest Lands Conservation Act). 02 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 APPLICABILITY. Sections 2 and 3 of this Act apply to contracts entered into on or 05 after the effective date of this Act.