00                            SENATE BILL NO. 293                                                                         
01 "An Act relating to a preference right to purchase or lease certain state land."                                        
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 38.05.035(f) is amended to read:                                                                   
04            (f)  The director shall grant a preference right to the purchase or lease without                            
05       competitive bid of up to five acres of state land to an individual who has a state use                        
06       permit for or state lease of that land and who has erected a building on the land and                         
07       used the land for bona fide business purposes for 10 [FIVE] or more years                                     
08       immediately [UNDER A FEDERAL PERMIT OR WITHOUT THE NEED FOR A                                                 
09       PERMIT AND, AFTER SELECTION BY THE STATE, UNDER A STATE USE                                                       
10       PERMIT OR LEASE, IF THE BUSINESS PRODUCED NO LESS THAN 25                                                         
11       PERCENT OF THE TOTAL INCOME OF THE APPLICANT FOR THE FIVE                                                         
12       YEARS] preceding the application to purchase or lease the land. The director shall sell                           
13       or lease the land at a price determined by the director to represent the current fair                             
14       market value of the unimproved land but in no event less than the cost of                                         
15       administration including survey if required. If the director determines in a written                              

01       finding that the purchase or lease of the land would interfere with public use by                                 
02       residents of the area, the director may condition the purchase or lease to mitigate the                           
03       adverse effects on the public use. A change in land classification adopted after the                          
04       state use permit or state lease was executed does not bar the individual from                                 
05       obtaining the preference right to the land [OR MAY REJECT THE                                                 
06       APPLICATION FOR THE PREFERENCE RIGHT]. A lease granted under this                                                 
07       subsection may not be for a period in excess of 50 years. In this subsection, "business                           
08       purposes" means a purpose permitted under the classification of the land at the time                              
09       the land was entered.                                                                                             
10    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
11 read:                                                                                                                   
12       APPLICABILITY. AS 38.05.035(f), as amended by sec. 1 of this Act, applies only to                                 
13 applications for purchase or lease under that subsection that are filed on or after the effective                       
14 date of this Act.