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SCS CSHB 319(FIN): "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; relating to the disposal, including sale or lease, of remote recreational cabin sites; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 319(FIN) 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; relating to the disposal, including sale or 03 lease, of remote recreational cabin sites; and providing for an effective date." 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 38.05.057(a) is amended to read: 02 (a) The commissioner may dispose of land, including land limited to use for 03 agricultural purposes, by lottery. The purchase price of land sold by lottery shall be 04 the fair market value of the land as determined by the commissioner. The 05 commissioner may sell land by lottery for less than the fair market value of the land on 06 a determination that scarcity of land for private use in the area of the land to be sold 07 has resulted in unrealistic land values. The lottery shall be conducted in public by the 08 commissioner. A purchaser selected by lot shall deposit an amount equal to five [10] 09 percent of the purchase price within 30 days after receiving notification of the 10 selection. 11 * Sec. 3. AS 38.05.125(a) is amended to read: 12 (a) Each contract for the sale, lease, or grant of state land, and each deed to 13 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 14 38.05.321, 38.05.600, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50, except as 15 provided in AS 38.50.050, is subject to the following reservations: "The party of the 16 first part, Alaska, hereby expressly saves, excepts, and reserves out of the grant hereby 17 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 18 minerals, fissionable materials, geothermal resources, and fossils of every name, kind, 19 or description, and which may be in or upon said land above described, or any part 20 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, 21 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 22 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 23 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 24 servants upon said land, or any part or parts thereof, at any and all times for the 25 purpose of opening, developing, drilling, and working mines or wells on these or other 26 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 27 fissionable materials, geothermal resources, and fossils, and to that end it further 28 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 29 assigns forever, the right by its or their agents, servants, and attorneys at any and all 30 times to erect, construct, maintain, and use all such buildings, machinery, roads, 31 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such

01 soil, and to remain on said land or any part thereof for the foregoing purposes and to 02 occupy as much of said land as may be necessary or convenient for such purposes 03 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 04 generally all rights and power in, to, and over said land, whether herein expressed or 05 not, reasonably necessary or convenient to render beneficial and efficient the complete 06 enjoyment of the property and rights hereby expressly reserved." 07 * Sec. 4. AS 38.05.125(a) is amended to read: 08 (a) Each contract for the sale, lease, or grant of state land, and each deed to 09 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 10 38.05.321, [38.05.600,] 38.05.810 - 38.05.825, AS 38.08, or AS 38.50, except as 11 provided in AS 38.50.050, is subject to the following reservations: "The party of the 12 first part, Alaska, hereby expressly saves, excepts, and reserves out of the grant hereby 13 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 14 minerals, fissionable materials, geothermal resources, and fossils of every name, kind, 15 or description, and which may be in or upon said land above described, or any part 16 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, 17 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 18 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 19 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 20 servants upon said land, or any part or parts thereof, at any and all times for the 21 purpose of opening, developing, drilling, and working mines or wells on these or other 22 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 23 fissionable materials, geothermal resources, and fossils, and to that end it further 24 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 25 assigns forever, the right by its or their agents, servants, and attorneys at any and all 26 times to erect, construct, maintain, and use all such buildings, machinery, roads, 27 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such 28 soil, and to remain on said land or any part thereof for the foregoing purposes and to 29 occupy as much of said land as may be necessary or convenient for such purposes 30 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 31 generally all rights and power in, to, and over said land, whether herein expressed or

01 not, reasonably necessary or convenient to render beneficial and efficient the complete 02 enjoyment of the property and rights hereby expressly reserved. 03 * Sec. 5. AS 38.05.600(a) is amended to read: 04 (a) The commissioner may provide for the sale or lease of state land for 05 remote recreational cabin sites. Sales under this section shall be at fair market value 06 determined as of the time of entry by the department or by an appraiser from the 07 list of appraisers approved by the department. Land to be sold under this section 08 shall be surveyed before sale by the department or by a surveyor registered 09 under AS 08.48. The appraisal and survey shall be completed within 24 months 10 of lease issuance, unless an extension is found necessary by the commissioner. 11 The [, AND THE] purchaser shall pay for the appraisal and survey or reimburse the 12 state for the appraisal, survey, and platting costs for the recreational cabin site. 13 * Sec. 6. AS 38.05.600(a) is amended to read: 14 (a) The commissioner may provide for the sale or lease of state land for 15 remote recreational cabin sites. Sales under this section shall be at fair market value 16 determined as of the time of entry, and the [BY THE DEPARTMENT OR BY AN 17 APPRAISER FROM THE LIST OF APPRAISERS APPROVED BY THE 18 DEPARTMENT. LAND TO BE SOLD UNDER THIS SECTION SHALL BE 19 SURVEYED BEFORE SALE BY THE DEPARTMENT OR BY A SURVEYOR 20 REGISTERED UNDER AS 08.48. THE APPRAISAL AND SURVEY SHALL BE 21 COMPLETED WITHIN 24 MONTHS OF LEASE ISSUANCE, UNLESS AN 22 EXTENSION IS FOUND NECESSARY BY THE COMMISSIONER. THE] 23 purchaser shall [PAY FOR THE APPRAISAL AND SURVEY OR] reimburse the 24 state for the appraisal, survey, and platting costs for the recreational cabin site. 25 * Sec. 7. AS 38.05.600 is amended by adding new subsections to read: 26 (d) Each year, subject to appropriation from the state land disposal income 27 fund under AS 38.04.022, to implement this section, the commissioner shall 28 (1) prepare a schedule of land offerings under this section and identify 29 the parcels for disposal each year; the land offerings may not include mineral land 30 selected by the state or lands identified by the department as having a high mineral 31 potential; the department's identification of land having a high mineral potential shall

01 be based on standards adopted by the department and shall include consideration of a 02 geophysical survey or geological evaluation, if any, that was conducted within 15 03 calendar years before the year for which the schedule is prepared; 04 (2) provide public notice of the proposed land offerings; and 05 (3) disclose all land offerings with mineral potential. 06 (e) The commissioner may solicit nominations each year from the residents of 07 the state for areas to be offered for disposal under this program. The commissioner 08 may add areas nominated by a resident to the schedule prepared under (d) of this 09 section if the land is classified for disposal or the disposal is consistent with other 10 requirements of AS 38.04 and this chapter. 11 (f) A resident may nominate a parcel for disposal under this section and, if the 12 resident has not leased or purchased land under this section during the three-year 13 period before the date of nomination, may apply for a right to stake the nominated 14 parcel with the intent to lease under (b) of this section. The commissioner shall 15 review the nomination and may 16 (1) offer the right to stake a parcel for lease through a sealed-bid or 17 outcry auction and subsequently purchase the parcel for fair market value; 18 (2) offer the parcel and additional parcels within the surrounding area 19 for sale in a simultaneous filing period in the manner provided for lottery parcels by 20 AS 38.05.057; 21 (3) offer already surveyed and platted parcels for sale at a sealed-bid or 22 outcry auction as provided under AS 38.05.055; or 23 (4) find that the parcel or area is not appropriate for disposal. 24 (g) A parcel sold under this section may not exceed 10 acres unless the 25 commissioner determines that a larger site is necessary to comply with municipal 26 ordinances, because of the unique physical and natural characteristics of the area, or to 27 increase the return to the state from the sale of the parcel. A parcel sold under this 28 section may include lake, river, or other navigable water frontage, subject to the 29 following limitations: 30 (1) the lake, river, or other navigable water frontage must be at least 31 300 feet and may not exceed 700 feet;

01 (2) only one parcel with frontage on a lake may be sold under this 02 section for each five acres of water of that lake unless the commissioner finds that a 03 different ratio of water to each parcel with frontage is in the public interest; and 04 (3) a parcel sold under this section is subject to 16 U.S.C. 3101(d) and 05 16 U.S.C. 3213 (Alaska National Interest Lands Conservation Act). 06 (h) In this section, "resident" means a person who 07 (1) is physically present in the state with the intent to remain in the 08 state indefinitely and to make a home in the state; 09 (2) has maintained the person's domicile in the state for the 12 10 consecutive months immediately preceding the nomination of a parcel or area for 11 disposal; 12 (3) is not claiming residency in another state, territory, or country; and 13 (4) is not obtaining benefits under a claim of residency in another state, 14 territory, or country. 15 (i) Nothing in this section shall impede the state's authority under existing law 16 to reserve a public easement allowing public access to, or along, a river, lake, or other 17 water described in this section. 18 * Sec. 8. AS 38.05.600(d), 38.05.600(e), 38.05.600(f), 38.05.600(g), 38.05.600(h), and 19 38.05.600(i) are repealed January 1, 2015. 20 * Sec. 9. Sections 2, 4, 6, and 8 of this Act take effect January 1, 2015. 21 * Sec. 10. AS 38.05.600(g), as enacted in sec. 7 of this Act, takes effect January 1, 2005.