00                      CS FOR HOUSE BILL NO. 89(RES)                                                                     
01 "An Act relating to the disposal of certain bedload material in conjunction with a flood                                
02 mitigation plan."                                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 38.05.872 is amended by adding new subsections to read:                                            
05            (b)  The commissioner may offer for disposal bedload material from an area                                   
06       subject to a site-specific flood mitigation plan approved by the commissioner under                               
07       the terms in (d) of this section after making a finding that                                                      
08                 (1)  removal of the bedload gravel will offset future costs to the state                                
09       that are attributable to flood damage;                                                                            
10                 (2)  the sale of the bedload gravel under (b) - (e) of this section at a cost                           
11       that may be below fair market value is in the best interests of the state; and                                    
12                 (3)  removal of the bedload gravel will enhance the effectiveness of the                                
13       flood mitigation plan in preventing a flood or minimizing flood damage.                                           
14            (c)  The commissioner may request a professional engineer with relevant                                      

01       experience to review the plans for bedload material extraction.                                                   
02            (d)  A person, other than the state or federal government or a political                                     
03       subdivision of the state, acquiring bedload material under a disposal authorized by the                           
04       commissioner under this section shall comply with the terms and conditions                                        
05       established by the commissioner and pay to the department a royalty of not less than                              
06       12.5 percent of pretax profit calculated by subtracting from the value of the bedload                             
07       material the actual direct costs of extricating, loading, and transporting the material to                        
08       market, if applicable. The commissioner may adopt regulations that identify the                                   
09       method and means for determining the value of the bedload material and the costs that                             
10       may be deducted for the purpose of calculating the amount to be paid to the state. In                             
11       this subsection, "value" means the sales price of the material in a bona fide arm's-                              
12       length transaction between unaffiliated parties or the sales price of the material had the                        
13       material been sold in a bona fide arm's-length transaction between unaffiliated parties.                          
14            (e)  In this section, "bedload material" means gravel, rock, and other material                              
15       located below the plane of the ordinary high water mark or the mean high water mark                               
16       of a river, lake, stream, or other coastal water.                                                                 
17    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
18 read:                                                                                                                   
19       REVISOR'S INSTRUCTION. The revisor of statutes shall change the catch line of                                     
20 AS 38.05.872 from "Disposition of state land for flood control projects" to "Disposition of                             
21 state land and material for flood mitigation."