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HB 361: "An Act relating to the Alaska Land Act, including certain lease, sale, and other disposal of state land and materials; relating to production royalties from miners; relating to rights to use state water; and providing for an effective date."

00 HOUSE BILL NO. 361 01 "An Act relating to the Alaska Land Act, including certain lease, sale, and other 02 disposal of state land and materials; relating to production royalties from miners; 03 relating to rights to use state water; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.055 is amended to read: 06 Sec. 38.05.055. Auction sale or sealed bid procedures. Unless another 07 method of sale is required under this chapter, AS 38.08, or AS 38.09, the sale of state 08 land shall be made at public auction or by sealed bid, at the discretion of the 09 director, to the highest qualified bidder as determined by the director. The director 10 may accept bids and sell state land under this section at no less than 70 percent of the 11 appraised fair market value of the land. To qualify to participate under this section in a 12 public auction or sale by sealed bid of state land that is other than commercial, 13 industrial, or agricultural land, a bidder shall have been a resident of the state for at 14 least one year immediately preceding the date of the sale [AUCTION] and submit

01 proof of that fact, as the commissioner requires by regulation. A bidder may be 02 represented by an attorney or agent at a public [THE] auction. An aggrieved bidder 03 may appeal to the commissioner within five days after the sale for a review of the 04 director's determination. The sale shall be conducted by the director, and, at the time 05 of sale, the successful bidder shall deposit an amount equal to five percent of the 06 purchase price. The director shall immediately issue a receipt containing a description 07 of the land or property purchased, the price bid, and the amount deposited. The receipt 08 shall be acknowledged in writing by the bidder. 09 * Sec. 2. AS 38.05.065(a) is amended to read: 10 (a) The contract of sale for land sold at public auction or by sealed bid under 11 AS 38.05.055 shall require the remainder of the purchase price to be paid in monthly, 12 quarterly, or annual installments over a period of not more than 20 years, with interest 13 at the rate provided in (i) of this section. Installment payments plus interest shall be set 14 on the level-payment basis. 15 * Sec. 3. AS 38.05.069(a) is amended to read: 16 (a) After consulting with the Board of Agriculture and Conservation 17 (AS 03.09.010), on a determination that the highest and best use of unoccupied land is 18 for agricultural purposes and that it is in the best interests of the state to sell or lease 19 the land, the commissioner shall grant to an Alaska resident owning and using or 20 leasing and using land for agricultural purposes a first option [AT THE AUCTION] to 21 purchase or lease the unoccupied land situated adjacent to land presently held by the 22 Alaska resident for the amount of the high bid received at public auction or by sealed 23 bid. If more than one Alaska resident qualifies for a first option under this section, 24 eligibility for the first option shall be determined by lot and the option must be 25 exercised on the conclusion of the public auction or opening of sealed bids. A parcel 26 of agricultural land sold under this section may not be less than 20 acres, and a parcel 27 of agricultural land that is acquired by exercise of the option granted in this subsection 28 may not exceed 320 acres. Agricultural land that is acquired under this section must be 29 used for agricultural purposes as required by law. 30 * Sec. 4. AS 38.05.069(c) is amended to read: 31 (c) Under this section,

01 (1) the director may transfer state land classified for agriculture only 02 for agricultural purposes; 03 (2) the sale or lease shall be at public auction or by sealed bid. 04 * Sec. 5. AS 38.05.070(b) is amended to read: 05 (b) The director, with the approval of the commissioner, shall determine the 06 land to be leased and the limitations, conditions, and terms of the lease. The director 07 shall preserve reasonable and traditional access to state land and water. If the 08 appraised value of the transaction is $10,000 [$5,000] a year or less the director may 09 negotiate a lease for a period not to exceed 10 years, and on the limitations, 10 conditions, and terms that the director considers are in the best interests of the state. A 11 lease negotiated under this subsection is not eligible for a preference under 12 AS 38.05.102. 13 * Sec. 6. AS 38.05.070 is amended by adding new subsections to read: 14 (d) If, after notice under AS 38.05.945 soliciting interest for a competitive 15 auction, the department determines that only one potential bidder has expressed 16 interest in bidding, the director may cancel the competitive auction and negotiate a 17 lease and its conditions and terms that the director determines to be in the best 18 interests of the state. 19 (e) The director may renew a lease issued under this section, AS 38.05.075, or 20 38.05.810 upon its expiration if the lease is in good standing and the lease renewal is 21 determined to be in the best interests of the state. A renewal issued under this 22 subsection is not subject to AS 38.05.035(e). A lease may only be renewed once for a 23 term no longer than the initial term of the lease. 24 * Sec. 7. AS 38.05.073(g) is amended to read: 25 (g) After soliciting proposals under (e) of this section, if the commissioner 26 determines that two or more potential lessees are acceptable, the commissioner may 27 select the potential lessee who submits the highest bid during a public [AN] auction or 28 by sealed bids, whichever method the commissioner chooses. The minimum bid must 29 equal the amount established by the commissioner plus the administrative fee 30 established under (k) of this section. The commissioner shall also require the potential 31 lessee to make an earnest money deposit under AS 38.05.860(b). After the

01 commissioner selects a potential lessee, the commissioner may begin negotiations with 02 the potential lessee to develop the terms and conditions for the lease. 03 * Sec. 8. AS 38.05.075(a) is amended to read: 04 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.082, 05 38.05.083, 38.05.087, 38.05.102, 38.05.600, 38.05.810, and this section, when 06 competitive interest has been demonstrated or the commissioner determines that 07 it is in the state's best interests, leasing shall be made at public auction or by sealed 08 bid, at the discretion of the director, to the highest qualified bidder as determined by 09 the commissioner. A bidder may be represented by an attorney or agent at a 10 public auction. In the public notice of a lease to be offered at public auction or by 11 sealed bid, the commissioner shall specify a minimum acceptable bid and the lease 12 compensation method. The lease compensation method shall be designed to maximize 13 the return on the lease to the state and shall be a form of compensation set out in 14 AS 38.05.073(m). An aggrieved bidder may appeal to the commissioner within five 15 days for a review of the determination. The leasing shall be conducted by the 16 commissioner and the successful bidder shall deposit at the public auction or with the 17 sealed bid the first year's rental or other lease compensation as specified by the 18 commissioner, or that portion of it that the commissioner requires in accordance with 19 the bid. The commissioner shall require, under AS 38.05.860, qualified bidders to 20 deposit a sum equal to any survey or appraisal costs reasonably incurred by another 21 qualified bidder acting in accordance with the regulations of the commissioner or 22 incurred by the department under AS 38.04.045 and AS 38.05.840. If a bidder making 23 a deposit of survey or appraisal costs is determined by the commissioner to be the 24 highest qualified bidder under this subsection, the deposit shall be paid to the 25 unsuccessful bidder who incurred those costs or to the department if the department 26 incurred the costs. All costs for survey and appraisal shall be approved in advance in 27 writing by the commissioner. The commissioner shall immediately issue a receipt 28 containing a description of the land or interest leased, the price bid, and the terms of 29 the lease to the successful qualified bidder. If the receipt is not accepted in writing by 30 the bidder under this subsection, the commissioner may offer the land for lease again 31 under this subsection. A lease, on a form approved by the attorney general, shall be

01 signed by the successful bidder and by the commissioner [WITHIN THE PERIOD 02 SPECIFIED IN THE AUCTION NOTICE]. 03 * Sec. 9. AS 38.05.083(a) is amended to read: 04 (a) The commissioner may offer to the public for lease at public auction or by 05 sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for 06 aquatic farming or related hatchery operations. Before a final decision to issue or 07 renew a lease under this section, the commissioner shall give notice and allow 08 opportunity for comment in accordance with AS 38.05.945 and may hold a hearing to 09 take testimony. Before a final decision to issue or renew a lease under this section, the 10 commissioner shall consider all relevant comment or testimony submitted under this 11 section, AS 38.05.945, or 38.05.946. 12 * Sec. 10. AS 38.05.110(a) is amended to read: 13 (a) The commissioner shall provide for cruises of timber on [AND 14 APPRAISALS OF OTHER MATERIALS IN OR UPON] state land and shall assess 15 the supply of and current markets for timber on [AND OTHER MATERIALS IN] 16 privately owned land in close proximity to state land to determine 17 (1) the timber [AND OTHER MATERIALS] that should be offered for 18 sale; and 19 (2) the terms of sale of the timber [OR OTHER MATERIALS]. 20 * Sec. 11. AS 38.05.120 is amended to read: 21 Sec. 38.05.120. Disposal procedure. Timber [AND OTHER MATERIALS] 22 shall be sold either by sealed bids or public auction, depending on which method is 23 determined by the commissioner to be in the best interests of the state, to the highest 24 qualified bidder as determined by the commissioner. An aggrieved bidder may appeal 25 to the commissioner within five days after the sale for a review of the determination. 26 The sale shall be conducted by the commissioner, and at the time of sale the successful 27 bidder shall deposit the amount specified in the terms of sale. The means by which the 28 amount of deposit is determined shall be prescribed by appropriate regulation. The 29 commissioner shall immediately issue a receipt containing a description of the timber 30 [OR MATERIALS] purchased, the price bid, and the terms of sale. The receipt shall 31 be accepted in writing by the bidder. A contract of sale, on a form approved by the

01 attorney general, shall be signed by the purchaser and the contract shall be signed by 02 the commissioner on behalf of the state. The commissioner may impose conditions, 03 limitations, and terms considered necessary and proper to protect the interests of the 04 state. Violation of any provision of this chapter or the terms of the contract of sale 05 subjects the purchaser to appropriate legal action. 06 * Sec. 12. AS 38.05.212(a) is amended to read: 07 (a) In exchange for and to preserve the right to extract and possess the 08 minerals produced, the holder of a mining claim, leasehold location, or mining lease, 09 including a mining lease under AS 38.05.250, shall pay a royalty on all minerals 10 produced from land subject to the claim, leasehold location, or mining lease during 11 each calendar year, or each fiscal year if the miner does not file the mining license 12 tax on a calendar year basis. The department may exempt, by regulation, small 13 operations from the production royalty otherwise required by this section. 14 * Sec. 13. AS 38.05.250(c) is amended to read: 15 (c) Each submerged land mining lease shall be for a period of up to 20 years 16 and for so long as there is production in paying quantities from the leased area. A 17 submerged land mining lease may be renewed for a period of up to 20 years at 18 the discretion of the director if the director determines that the renewal is in the 19 best interests of the state. 20 * Sec. 14. AS 38.05 is amended by adding new sections to read: 21 Article 14A. Material Sales. 22 Sec. 38.05.550. Disposal of materials. (a) All materials owned in fee by the 23 state may be sold or conveyed as provided in AS 38.05.550 - 38.05.565. 24 (b) Materials may only be sold or removed from sources or sites designated by 25 the department. The department shall issue a decision under AS 38.05.035(e) that the 26 sale and extraction of materials from that location is in the best interests of the state at 27 the time each source or site is designated. The department shall give notice, in 28 accordance with AS 38.05.945, of the department's decision to designate a source or 29 site for the sale and extraction of materials. After decision and notice, the department 30 may sell materials continuously, without further finding or notice, from that 31 designated source or site under this section until the source or site is closed by the

01 department. 02 (c) Each sale of materials must be made through a materials sales contract on a 03 form that has been approved by the attorney general. At the time of each sale the 04 department shall determine 05 (1) the location of the source or site from which materials are to be 06 removed; 07 (2) the method of disposal as provided in AS 38.05.555 - 38.05.565; 08 and 09 (3) the limitations, conditions, and terms of sale, which shall address 10 the utilization, development, and maintenance of the source of the materials. 11 (d) The commissioner shall provide for valuation of materials in or upon state 12 land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the 13 director's discretion, be sold either at 14 (1) representative regional sales prices periodically determined by the 15 commissioner for each type of material and for defined geographic regions, under 16 procedures established by regulation; public notice under AS 38.05.945 must be made 17 whenever the commissioner revises the representative regional sales prices; 18 (2) fair market value determined by appraisal completed and approved 19 within two years of the date of sale; or 20 (3) a price less than appraised value, determined under 21 AS 38.05.810(a). 22 Sec. 38.05.555. Negotiated sales and personal use of materials. (a) 23 Notwithstanding any other provision of AS 38.05.550 - 38.05.565, the director may 24 negotiate the sale of any amount of materials from a source or site designated under 25 AS 38.05.550(b). The period of a contract for a sale of materials negotiated under this 26 section may not exceed five years. 27 (b) Sales of materials under this section must be made at a representative 28 regional sales price set by the commissioner under AS 38.05.550(d)(1) unless 29 (1) the director determines that it is in the best interests of the state to 30 sell the materials at fair market value determined by an appraisal provided by the 31 department;

01 (2) the applicant, at its own cost, elects to provide an appraisal, 02 acceptable to the department, determining the fair market value of the materials to be 03 sold; or 04 (3) the sale is to a state or federal agency, or political subdivision 05 under AS 38.05.810(a) and the material to be extracted and removed is used for public 06 purposes; sales under this paragraph may be at a price less than appraised value as 07 determined by the director. 08 (c) Subsequent sales of similar materials from the same source or site may be 09 made by the department at the price established by an appraisal provided under (b) of 10 this section. 11 (d) Individual negotiated contracts for the sale of materials authorized by (a) 12 of this section are not subject to AS 38.05.035(e) or 38.05.945. 13 (e) Materials from a source or site designated under AS 38.05.550(b) may be 14 extracted and removed for personal use without cost up to a limit of two cubic yards 15 per person within a one calendar year period. Extraction and removal of materials 16 under this subsection must be approved by the department before extraction 17 operations. 18 Sec. 38.05.560. Competitive sales of materials. (a) The department shall offer 19 materials from a source or site designated under AS 38.05.550(b) for competitive sale 20 if the department determines that 21 (1) the sale would result in an exclusive use by the purchaser of a 22 designated source or site; 23 (2) materials available at a designated source or site are insufficient to 24 supply all anticipated buyers; 25 (3) the size of the designated source or site is too small to 26 accommodate the extraction operations of all anticipated buyers; or 27 (4) it is in the best interests of the state. 28 (b) Notice of a competitive sale of materials from a source or site designated 29 under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall 30 (1) describe the location of the designated source or site, and the type 31 and quantity of the materials to be sold;

01 (2) solicit potential bidders to register with the department to 02 participate in the proposed sale; only persons registered to bid at a proposed sale of 03 materials may bid; and 04 (3) include the minimum bid for materials to be sold. 05 (c) A notice of competitive sale required under (b) of this section may be 06 combined with a notice required under AS 38.05.550. 07 (d) If, after notice under (b) of this section, only one potential bidder has 08 registered to bid at a proposed competitive sale, the competitive sale may be cancelled 09 and the materials sold by negotiation under AS 38.05.555. 10 (e) Materials sold under this section may be sold either by sealed bid or by 11 public outcry or online auction, in the discretion of the department, to the highest 12 qualified bidder as determined by the department. An aggrieved bidder may appeal to 13 the commissioner under AS 44.37.011 within five days after the sale for a review of 14 the determination. The sale shall be conducted by the director or the director's 15 designee, and at the time of sale the successful bidder shall deposit the amount 16 specified in the terms of sale. The means by which the amount of deposit is 17 determined shall be prescribed by regulation. The director shall immediately issue a 18 receipt containing a description of the materials purchased, the price bid, and the terms 19 of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a 20 form approved by the attorney general, shall be signed by the purchaser and the 21 contract shall be signed by the director on behalf of the state. The director may impose 22 conditions, limitations, and terms considered necessary and proper to protect the 23 interests of the state. 24 Sec. 38.05.562. Violations. Violation of any provision of AS 38.05.550 - 25 38.05.565 or the terms of the contract of sale subjects the purchaser to appropriate 26 legal action. 27 Sec. 38.05.565. Sale or disposal of materials for special purposes. (a) The 28 department may negotiate the sale or otherwise dispose of materials from sources or 29 sites other than those designated under AS 38.05.550(b) to 30 (1) municipalities, other state and federal agencies, or other entities 31 under AS 38.05.872; sales under this section may be at less than fair market value and

01 materials may be disposed of free of charge if the director determines that such a 02 disposal is in the public interest; 03 (2) a licensed public utility or a licensed common carrier under 04 AS 38.05.810(e); sales under this section shall be at representative regional sales 05 prices determined under AS 38.05.550(d)(1); or 06 (3) a holder of a permit, land lease, or right-of-way issued by the 07 department, if the materials to be extracted and removed during the construction, use, 08 or maintenance of a facility authorized by a permit, land lease, or right-of-way, are 09 necessary and incidental to the primary purpose of the permit, land lease, or right-of- 10 way, and the materials are put to beneficial use in a way that alters the character, 11 usefulness, or availability of the materials in their native forms; the department may 12 authorize the sale of materials under terms of the permit, land lease, or right-of-way; 13 sales of materials under this paragraph must be at 14 (A) the representative regional sales price established under 15 AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political 16 subdivision, or other entity under AS 38.05.810(a); or 17 (B) a price less than appraised value as determined by the 18 director if the sale is to a state or federal agency, political subdivision, or other 19 entity under AS 38.05.810(a) and the materials to be extracted and removed 20 are used for public purposes. 21 (b) If materials are moved within and not removed from the boundaries of a 22 permit, land lease, or right-of-way issued by the department, without altering the 23 character, usefulness, or availability of the materials in their native forms, the 24 applicant may not be required to purchase the materials. 25 (c) In this section, "land lease" 26 (1) means a lease issued under AS 38.05.070 - 38.05.105; 27 (2) does not include a lease issued under AS 38.05.131 - 38.05.275. 28 * Sec. 15. AS 38.05.810(b) is amended to read: 29 (b) Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director, 30 upon application filed by an applicant eligible under (b) - (d) of this section, may, by 31 negotiation and without competitive bid [PUBLIC AUCTION] in the manner

01 prescribed in (b) - (d) of this section, lease state land for a term of not more than 55 02 years. Before leasing, the director shall prepare a land use plan and a land 03 classification to insure that the proposed use is compatible with area utilization. Before 04 the land may be leased under (b) - (d) of this section, it must be shown to the 05 satisfaction of the director that the land is to be used for an established or definitely 06 proposed project, and that the eligible applicant has the financial ability to carry out 07 the project. The commissioner may establish limitations on the acreage which may be 08 leased under (b) - (d) of this section to an applicant. 09 * Sec. 16. AS 38.05.810(e) is amended to read: 10 (e) The lease, sale, or other disposal of state land at appraised fair market 11 value may be negotiated with a licensed public utility or a licensed common carrier by 12 the director with the approval of the commissioner if the utility or carrier reasonably 13 requires the land for the conduct of its business under its license. Notwithstanding 14 AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or 15 maintenance of property leased, sold, or disposed of under this section may be 16 negotiated by the director. A lease with a licensed public utility that is an electric 17 utility entered into under this subsection may not include, as part of the rent or other 18 fee that is negotiated or charged, an amount that is based on or determined by a 19 percentage of gross revenue for renewable energy produced by the electric utility. 20 * Sec. 17. AS 38.05.872 is repealed and reenacted to read: 21 Sec. 38.05.872. Disposition of state land and resources for flood control 22 projects. (a) The department may make conveyances of title or other interests in state 23 land, provide for exchange of land, or make other arrangements with respect to state 24 land, as necessary to meet federally established requirements of flood control projects 25 authorized inside the state by the United States. 26 (b) The commissioner may convey materials at less than fair market value to 27 municipalities, other state and federal agencies, or other entities, and make other 28 arrangements for land and materials as mitigation of a flooding area where excess 29 material deposition significantly contributes to the flooding, consistent with a site- 30 specific flood mitigation plan approved by the commissioner and determined to be in 31 the best interests of the public.

01 * Sec. 18. AS 38.05.945(b) is amended to read: 02 (b) When notice is required to be given under this section, 03 (1) the notice must contain sufficient information in commonly 04 understood terms to inform the public of the nature of the action and the opportunity 05 of the public to comment on it; 06 (2) if the notice is of a preliminary written finding described in 07 (a)(3)(A) of this section, the department shall give notice at the beginning of the public 08 comment period for the preliminary written finding, notifying the public of the right to 09 submit comments; the department shall give notice by 10 (A) posting notice on the Alaska Online Public Notice 11 System for at least 30 consecutive days [PUBLICATION OF A LEGAL 12 NOTICE IN NEWSPAPERS OF STATEWIDE CIRCULATION AND IN 13 NEWSPAPERS OF GENERAL CIRCULATION IN THE VICINITY OF 14 THE PROPOSED ACTION AT LEAST ONCE A WEEK FOR TWO 15 CONSECUTIVE WEEKS]; 16 (B) publication of a notice in display advertising form 17 describing the proposed action and referencing the online notice required 18 in (A) of this paragraph in newspapers of statewide circulation and in 19 newspapers of general circulation in the vicinity of the proposed action, if 20 available, [IN THE NEWSPAPERS DESCRIBED IN (A) OF THIS 21 PARAGRAPH] at least once a week for two consecutive weeks; 22 (C) public service announcements on the electronic media 23 serving the area to be affected by the proposed action; and 24 (D) one or more of the following methods: 25 (i) publication of a legal notice in newspapers of 26 statewide circulation or in newspapers of general circulation in the 27 vicinity of the proposed action, if available, at least once a week for 28 two consecutive weeks; 29 (ii) [(i)] posting in a conspicuous location in the vicinity 30 of the action; 31 (iii) [(ii)] notification of parties known or likely to be

01 affected by the action; or 02 (iv) [(iii)] another method calculated to reach affected 03 parties; 04 (3) if the notice is of an action described in (a) of this section, other 05 than notice of an action under (a)(3)(A) of this section, the department shall give 06 notice at least 30 days before the action by posting notice on the Alaska Online 07 Public Notice System for at least 30 consecutive days [PUBLICATION IN 08 NEWSPAPERS OF STATEWIDE CIRCULATION AND IN NEWSPAPERS OF 09 GENERAL CIRCULATION IN THE VICINITY OF THE PROPOSED ACTION] 10 and by one or more of the following methods: 11 (A) publication of a notice in display advertising form 12 describing the proposed action and referencing the online notice required 13 in this paragraph in newspapers of statewide circulation and in 14 newspapers of general circulation in the vicinity of the proposed action, if 15 available, at least once a week for two consecutive weeks; 16 (B) [(A)] publication through public service announcements on 17 the electronic media serving the area affected by the action; 18 (C) [(B)] posting in a conspicuous location in the vicinity of 19 the action; 20 (D) [(C)] notification of parties known or likely to be affected 21 by the action; 22 (E) publication of a legal notice, at least 30 days before the 23 action, briefly describing the proposed action and referencing the online 24 notice required in this paragraph in newspapers of statewide circulation 25 and in newspapers of general circulation in the vicinity of the proposed 26 action, if available; or 27 (F) [(D)] another method calculated to reach affected persons. 28 * Sec. 19. AS 38.05.945(b), as amended by sec. 18 of this Act, is further amended to read: 29 (b) When notice is required to be given under this section, 30 (1) the notice must contain sufficient information in commonly 31 understood terms to inform the public of the nature of the action and the opportunity

01 of the public to comment on it; 02 (2) if the notice is of a preliminary written finding described in 03 (a)(3)(A) of this section, the department shall give notice at the beginning of the public 04 comment period for the preliminary written finding, notifying the public of the right to 05 submit comments; the department shall give notice by 06 (A) posting notice on the Alaska Online Public Notice System 07 for at least 30 consecutive days; 08 (B) publication of a notice in display advertising form 09 describing the proposed action and referencing the online notice required in 10 (A) of this paragraph in newspapers of statewide circulation and in newspapers 11 of general circulation in the vicinity of the proposed action, if available, at least 12 once a week for two consecutive weeks; 13 (C) public service announcements on the electronic media 14 serving the area to be affected by the proposed action; and 15 (D) one or more of the following methods: 16 (i) publication of a legal notice in newspapers of 17 statewide circulation or in newspapers of general circulation in the 18 vicinity of the proposed action, if available, at least once a week for 19 two consecutive weeks; 20 (ii) posting in a conspicuous location in the vicinity of 21 the action; 22 (iii) notification of parties known or likely to be 23 affected by the action; or 24 (iv) another method calculated to reach affected parties; 25 (3) if the notice is of an action described in (a) of this section, other 26 than notice of an action under (a)(3)(A) of this section, the department shall give 27 notice at least 30 days before the action by posting notice on the Alaska Online Public 28 Notice System for at least 30 consecutive days and by one or more of the following 29 methods: 30 (A) publication of a notice in display advertising form 31 describing the proposed action and referencing the online notice required in

01 this paragraph in newspapers of statewide circulation and in newspapers of 02 general circulation in the vicinity of the proposed action, if available, at least 03 once a week for two consecutive weeks; 04 (B) publication through public service announcements on the 05 electronic media serving the area affected by the action; 06 (C) posting in a conspicuous location in the vicinity of the 07 action; 08 (D) notification of parties known or likely to be affected by the 09 action; or 10 (E) [PUBLICATION OF A LEGAL NOTICE, AT LEAST 30 11 DAYS BEFORE THE ACTION, BRIEFLY DESCRIBING THE PROPOSED 12 ACTION AND REFERENCING THE ONLINE NOTICE REQUIRED IN 13 THIS PARAGRAPH IN NEWSPAPERS OF STATEWIDE CIRCULATION 14 AND IN NEWSPAPERS OF GENERAL CIRCULATION IN THE 15 VICINITY OF THE PROPOSED ACTION, IF AVAILABLE; OR 16 (F)] another method calculated to reach affected persons. 17 * Sec. 20. AS 38.05.965(10) is repealed and reenacted to read: 18 (10) "materials" 19 (A) means all common variety rock and minerals of any 20 quality, that are saleable and not subject to location under state or federal 21 mining laws; 22 (B) includes aggregate, riprap, railroad ballast, road ballast, 23 road metal, peat, silt, loam, sand, gravel, and quarry stone; 24 * Sec. 21. AS 46.15.155(a) is amended to read: 25 (a) Notwithstanding any contrary provision of this chapter, the commissioner 26 may authorize the temporary use of a significant amount of water, as determined by 27 the department by regulation, for a period of time not to exceed five consecutive years 28 for each authorization, if the water applied for has not been appropriated in 29 accordance with this chapter. In the commissioner's discretion, a new authorization 30 for the temporary use of a significant amount of water may be issued for a 31 project at or before the expiration of the existing authorization issued for the

01 same project. 02 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change 05 (1) the heading of Article 4 of AS 38.05 from "Disposal of Timber and 06 Materials" to "Disposal of Timber"; 07 (2) the catchline of AS 38.05.110 from "Sale of timber and materials; account" 08 to "Sale of timber". 09 * Sec. 23. Section 19 of this Act takes effect July 1, 2017. 10 * Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect July 1, 2012.