txt

CSHB 361(RES): "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 CS FOR HOUSE BILL NO. 361(RES) 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 not [NO] less than 70 percent 11 of the appraised fair market value of the land. To qualify to participate under this 12 section in a public auction or sale by sealed bid of state land that is other than 13 commercial, industrial, or agricultural land, a bidder shall have been a resident of the 14 state for at least one year immediately preceding the date of the sale [AUCTION] and

01 submit 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 be renewed only once for a 23 term not 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 17 the 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 38.05.115 is amended to read: 21 Sec. 38.05.115. Limitations and conditions of sale. (a) The commissioner 22 shall determine the timber [AND OTHER MATERIALS] to be sold [,] and the 23 limitations, conditions, and terms of sale. The limitations, conditions, and terms shall 24 include the utilization, development, and maintenance of the sustained yield principle, 25 subject to preference among other beneficial uses. The commissioner may negotiate 26 sales of timber [OR MATERIALS] without advertisement and on the limitations, 27 conditions, and terms that are considered to be in the best interests of the state. Within 28 a one-year period, the commissioner may not negotiate a sale without advertisement to 29 the same purchaser of 30 [(1)] more than 500 M.B.M. or equivalent other measure of timber [; 31 (2) EXCEPT AS PROVIDED IN (3) OF THIS SUBSECTION,

01 MORE THAN 25,000 CUBIC YARDS OF MATERIALS; OR 02 (3) MORE THAN 100,000 CUBIC YARDS OF MATERIALS TO A 03 COMMON CARRIER HOLDING A LEASE UNDER AS 38.35]. 04 (b) Negotiated sales not exceeding 50 M.B.M. or the equivalent other measure 05 of timber [OR 2,500 CUBIC YARDS OF MATERIALS] are exempt from the 06 provisions of AS 34.15.150. 07 (c) The limitations of this section are not applicable to timber that [WHICH] 08 becomes state property under the provisions of AS 45.50.210 - 45.50.235. 09 * Sec. 12. AS 38.05.120 is amended to read: 10 Sec. 38.05.120. Disposal procedure. Timber [AND OTHER MATERIALS] 11 shall be sold either by sealed bids or public auction, depending on which method is 12 determined by the commissioner to be in the best interests of the state, to the highest 13 qualified bidder as determined by the commissioner. An aggrieved bidder may appeal 14 to the commissioner within five days after the sale for a review of the determination. 15 The sale shall be conducted by the commissioner, and, at the time of sale, the 16 successful bidder shall deposit the amount specified in the terms of sale. The means by 17 which the amount of deposit is determined shall be prescribed by appropriate 18 regulation. The commissioner shall immediately issue a receipt containing a 19 description of the timber [OR MATERIALS] purchased, the price bid, and the terms 20 of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a 21 form approved by the attorney general, shall be signed by the purchaser and the 22 contract shall be signed by the commissioner on behalf of the state. The commissioner 23 may impose conditions, limitations, and terms considered necessary and proper to 24 protect the interests of the state. Violation of any provision of this chapter or the terms 25 of the contract of sale subjects the purchaser to appropriate legal action. 26 * Sec. 13. AS 38.05.212(a) is amended to read: 27 (a) In exchange for and to preserve the right to extract and possess the 28 minerals produced, the holder of a mining claim, leasehold location, or mining lease, 29 including a mining lease under AS 38.05.250, shall pay a royalty on all minerals 30 produced from land subject to the claim, leasehold location, or mining lease during 31 each calendar year, or each fiscal year if the miner does not file the mining license

01 tax on a calendar year basis. The department may exempt, by regulation, small 02 operations from the production royalty otherwise required by this section. 03 * Sec. 14. AS 38.05.250(c) is amended to read: 04 (c) Each submerged land mining lease shall be for a period of up to 20 years 05 and for so long as there is production in paying quantities from the leased area. A 06 submerged land mining lease may be renewed for a period of up to 20 years at 07 the discretion of the director if the director determines that the renewal is in the 08 best interests of the state. 09 * Sec. 15. AS 38.05 is amended by adding new sections to read: 10 Article 13A. Material Sales. 11 Sec. 38.05.550. Disposal of materials. (a) All materials owned by the state 12 may be sold or conveyed as provided in AS 38.05.550 - 38.05.565. 13 (b) Materials may only be sold or removed from sources or sites designated by 14 the department. The department shall issue a decision under AS 38.05.035(e) that the 15 sale and extraction of materials from that location is in the best interests of the state at 16 the time each source or site is designated. The department shall give notice, in 17 accordance with AS 38.05.945, of the department's decision to designate a source or 18 site for the sale and extraction of materials. After decision and notice, the department 19 may sell materials continuously, without further finding or notice, from that 20 designated source or site under this section until the source or site is closed by the 21 department. 22 (c) Each sale of materials must be made through a materials sales contract on a 23 form that has been approved by the attorney general. At the time of each sale, the 24 department shall determine 25 (1) the location of the source or site from which materials are to be 26 removed; 27 (2) the method of disposal as provided in AS 38.05.555 - 38.05.565; 28 and 29 (3) the limitations, conditions, and terms of sale, which shall address 30 the utilization, development, and maintenance of the source of the materials. 31 (d) The commissioner shall provide for valuation of materials in or upon state

01 land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the 02 director's discretion, be sold at 03 (1) representative regional sales prices periodically determined by the 04 commissioner for each type of material and for defined geographic regions, under 05 procedures established by regulation; public notice under AS 38.05.945 must be made 06 whenever the commissioner revises the representative regional sales prices; 07 (2) fair market value determined by appraisal completed and approved 08 within two years of the date of sale; or 09 (3) a price less than appraised value, determined under 10 AS 38.05.810(a). 11 Sec. 38.05.555. Negotiated sales and personal use of materials. (a) 12 Notwithstanding any other provision of AS 38.05.550 - 38.05.565, the director may 13 negotiate the sale of any amount of materials from a source or site designated under 14 AS 38.05.550(b). The period of a contract for a sale of materials negotiated under this 15 section may not exceed five years. 16 (b) Sales of materials under this section must be made at a representative 17 regional sales price set by the commissioner under AS 38.05.550(d)(1) unless 18 (1) the director determines that it is in the best interests of the state to 19 sell the materials at fair market value determined by an appraisal provided by the 20 department; 21 (2) the applicant, at its own cost, elects to provide an appraisal, 22 acceptable to the department, determining the fair market value of the materials to be 23 sold; or 24 (3) the sale is to a state or federal agency or political subdivision under 25 AS 38.05.810(a) and the material to be extracted and removed is used for public 26 purposes; sales under this paragraph may be at a price less than appraised value as 27 determined by the director. 28 (c) Subsequent sales of similar materials from the same source or site may be 29 made by the department at the price established by an appraisal provided under (b) of 30 this section. 31 (d) Individual negotiated contracts for the sale of materials authorized by (a)

01 of this section are not subject to AS 38.05.035(e) or 38.05.945. 02 (e) Materials from a source or site designated under AS 38.05.550(b) may be 03 extracted and removed for personal use without cost up to a limit of two cubic yards a 04 person within a one-calendar-year period. Extraction and removal of materials under 05 this subsection must be approved by the department before extraction operations. 06 (f) Notwithstanding (a) - (e) of this section, for the purpose of creating 07 incentives for the development of peat as a source of heat or power, the director may 08 negotiate the sale of peat to individuals, organized or unorganized communities, tribal 09 governments, or private profit or nonprofit organizations. Under this subsection, the 10 director may provide 11 (1) for personal use by an individual, not more than 200 cubic yards of 12 peat a year at no cost; 13 (2) for commercial use, not more than 30,000 cubic yards of peat 14 during a single 10-year period at no cost; or 15 (3) for commercial use requiring more than 30,000 cubic yards of peat, 16 the amount required by the user during a 10-year period beginning when the user uses 17 more than 30,000 yards of peat at the price of 18 (A) 20 percent of the representative regional sales price 19 determined by the director under AS 38.05.550(d)(1); or 20 (B) 20 percent of the fair market value determined by an 21 appraisal completed under AS 38.05.550(d)(2), if the applicant provides the 22 appraisal at the applicant's expense and the appraisal is approved by the 23 commissioner. 24 Sec. 38.05.560. Competitive sales of materials. (a) The department shall offer 25 materials from a source or site designated under AS 38.05.550(b) for competitive sale 26 if the department determines that 27 (1) the sale would result in an exclusive use by the purchaser of a 28 designated source or site; 29 (2) materials available at a designated source or site are insufficient to 30 supply all anticipated buyers; 31 (3) the size of the designated source or site is too small to

01 accommodate the extraction operations of all anticipated buyers; or 02 (4) it is in the best interests of the state. 03 (b) Notice of a competitive sale of materials from a source or site designated 04 under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall 05 (1) describe the location of the designated source or site, and the type 06 and quantity of the materials to be sold; 07 (2) solicit potential bidders to register with the department to 08 participate in the proposed sale; only persons registered to bid at a proposed sale of 09 materials may bid; and 10 (3) include the minimum bid for materials to be sold. 11 (c) A notice of competitive sale required under (b) of this section may be 12 combined with a notice required under AS 38.05.550. 13 (d) If, after notice under (b) of this section, only one potential bidder has 14 registered to bid at a proposed competitive sale, the competitive sale may be cancelled 15 and the materials sold by negotiation under AS 38.05.555. 16 (e) Materials sold under this section may be sold either by sealed bid or by 17 public outcry or online auction, in the discretion of the department, to the highest 18 qualified bidder as determined by the department. An aggrieved bidder may appeal to 19 the commissioner under AS 44.37.011 within five days after the sale for a review of 20 the determination. The sale shall be conducted by the director or the director's 21 designee, and, at the time of sale, the successful bidder shall deposit the amount 22 specified in the terms of sale. The means by which the amount of deposit is 23 determined shall be prescribed by regulation. The director shall immediately issue a 24 receipt containing a description of the materials purchased, the price bid, and the terms 25 of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a 26 form approved by the attorney general, shall be signed by the purchaser, and the 27 contract shall be signed by the director on behalf of the state. The director may impose 28 conditions, limitations, and terms considered necessary and proper to protect the 29 interests of the state. 30 Sec. 38.05.562. Violations. Violation of any provision of AS 38.05.550 - 31 38.05.565 or the terms of the contract of sale subjects the purchaser to appropriate

01 legal action. 02 Sec. 38.05.565. Sale or disposal of materials for special purposes. (a) The 03 department may negotiate the sale or otherwise dispose of materials from sources or 04 sites other than those designated under AS 38.05.550(b) to 05 (1) municipalities, other state and federal agencies, or other entities 06 under AS 38.05.872; sales under this paragraph may be at less than fair market value, 07 and materials may be disposed of free of charge if the director determines that the 08 disposal is in the public interest; 09 (2) a licensed public utility or a licensed common carrier under 10 AS 38.05.810(e); sales under this paragraph shall be at representative regional sales 11 prices determined under AS 38.05.550(d)(1); or 12 (3) a holder of a permit, land lease, or right-of-way issued by the 13 department, if the materials to be extracted and removed during the construction, use, 14 or maintenance of a facility authorized by a permit, land lease, or right-of-way, are 15 necessary and incidental to the primary purpose of the permit, land lease, or right-of- 16 way, and the materials are put to beneficial use in a way that alters the character, 17 usefulness, or availability of the materials in their native forms; the department may 18 authorize the sale of materials under terms of the permit, land lease, or right-of-way; 19 sales of materials under this paragraph must be at 20 (A) the representative regional sales price established under 21 AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political 22 subdivision, or other entity under AS 38.05.810(a); or 23 (B) a price less than appraised value as determined by the 24 director if the sale is to a state or federal agency, political subdivision, or other 25 entity under AS 38.05.810(a) and the materials to be extracted and removed 26 are used for public purposes. 27 (b) If materials are moved within and not removed from the boundaries of a 28 permit, land lease, or right-of-way issued by the department without altering the 29 character, usefulness, or availability of the materials in their native forms, the 30 applicant may not be required to purchase the materials. 31 (c) In this section, "land lease"

01 (1) means a lease issued under AS 38.05.070 - 38.05.105; 02 (2) does not include a lease issued under AS 38.05.131 - 38.05.275. 03 * Sec. 16. AS 38.05.810(b) is amended to read: 04 (b) Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director, 05 upon application filed by an applicant eligible under (b) - (d) of this section, may, by 06 negotiation and without competitive bid [PUBLIC AUCTION] in the manner 07 prescribed in (b) - (d) of this section, lease state land for a term of not more than 55 08 years. Before leasing, the director shall prepare a land use plan and a land 09 classification to ensure [INSURE] that the proposed use is compatible with area 10 utilization. Before the land may be leased under (b) - (d) of this section, it must be 11 shown to the satisfaction of the director that the land is to be used for an established or 12 definitely proposed project, and that the eligible applicant has the financial ability to 13 carry out the project. The commissioner may establish limitations on the acreage that 14 [WHICH] may be leased under (b) - (d) of this section to an applicant. 15 * Sec. 17. AS 38.05.810(e) is amended to read: 16 (e) The lease, sale, or other disposal of state land at appraised fair market 17 value may be negotiated with a licensed public utility or a licensed common carrier by 18 the director with the approval of the commissioner if the utility or carrier reasonably 19 requires the land for the conduct of its business under its license. Notwithstanding 20 AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or 21 maintenance of property leased, sold, or disposed of under this section may be 22 negotiated by the director. A lease with a licensed public utility that is an electric 23 utility entered into under this subsection may not include, as part of the rent or other 24 fee that is negotiated or charged, an amount that is based on or determined by a 25 percentage of gross revenue for renewable energy produced by the electric utility. 26 * Sec. 18. AS 38.05.872 is repealed and reenacted to read: 27 Sec. 38.05.872. Disposition of state land and resources for flood control 28 projects. (a) The department may make conveyances of title or other interests in state 29 land, provide for exchange of land, or make other arrangements with respect to state 30 land, as necessary to meet federally established requirements of flood control projects 31 authorized inside the state by the United States.

01 (b) The commissioner may convey materials at less than fair market value to 02 municipalities, other state and federal agencies, or other entities, and make other 03 arrangements for land and materials as mitigation of a flooding area where excess 04 material deposition significantly contributes to the flooding, consistent with a site- 05 specific flood mitigation plan approved by the commissioner and determined to be in 06 the best interests of the public. 07 * Sec. 19. AS 38.05.945(b) is amended to read: 08 (b) When notice is required to be given under this section, 09 (1) the notice must contain sufficient information in commonly 10 understood terms to inform the public of the nature of the action and the opportunity 11 of the public to comment on it; 12 (2) if the notice is of a preliminary written finding described in 13 (a)(3)(A) of this section, the department shall give notice at the beginning of the public 14 comment period for the preliminary written finding, notifying the public of the right to 15 submit comments; the department shall give notice by 16 (A) posting notice on the Alaska Online Public Notice 17 System for at least 30 consecutive days [PUBLICATION OF A LEGAL 18 NOTICE IN NEWSPAPERS OF STATEWIDE CIRCULATION AND IN 19 NEWSPAPERS OF GENERAL CIRCULATION IN THE VICINITY OF 20 THE PROPOSED ACTION AT LEAST ONCE A WEEK FOR TWO 21 CONSECUTIVE WEEKS]; 22 (B) publication of a notice in display advertising form 23 describing the proposed action and referencing the online notice required 24 in (A) of this paragraph in newspapers of statewide circulation and in 25 newspapers of general circulation in the vicinity of the proposed action, if 26 available, [IN THE NEWSPAPERS DESCRIBED IN (A) OF THIS 27 PARAGRAPH] at least once a week for two consecutive weeks; 28 (C) public service announcements on the electronic media 29 serving the area to be affected by the proposed action; and 30 (D) one or more of the following methods: 31 (i) publication of a legal notice in newspapers of

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

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

01 than notice of an action under (a)(3)(A) of this section, the department shall give 02 notice at least 30 days before the action by posting notice on the Alaska Online Public 03 Notice System for at least 30 consecutive days and by one or more of the following 04 methods: 05 (A) publication of a notice in display advertising form 06 describing the proposed action and referencing the online notice required in 07 this paragraph in newspapers of statewide circulation and in newspapers of 08 general circulation in the vicinity of the proposed action, if available, at least 09 once a week for two consecutive weeks; 10 (B) publication through public service announcements on the 11 electronic media serving the area affected by the action; 12 (C) posting in a conspicuous location in the vicinity of the 13 action; 14 (D) notification of parties known or likely to be affected by the 15 action; or 16 (E) [PUBLICATION OF A LEGAL NOTICE, AT LEAST 30 17 DAYS BEFORE THE ACTION, BRIEFLY DESCRIBING THE PROPOSED 18 ACTION AND REFERENCING THE ONLINE NOTICE REQUIRED IN 19 THIS PARAGRAPH IN NEWSPAPERS OF STATEWIDE CIRCULATION 20 AND IN NEWSPAPERS OF GENERAL CIRCULATION IN THE 21 VICINITY OF THE PROPOSED ACTION, IF AVAILABLE; OR 22 (F)] another method calculated to reach affected persons. 23 * Sec. 21. AS 38.05.965(10) is repealed and reenacted to read: 24 (10) "materials" 25 (A) means all common variety rock and minerals of any 26 quality, that are saleable and not subject to location under state or federal 27 mining laws; 28 (B) includes aggregate, riprap, railroad ballast, road ballast, 29 road metal, peat, silt, loam, sand, gravel, stone, pumice, and common clay; 30 * Sec. 22. AS 41.23.470(b) is amended to read: 31 (b) The commissioner may conduct only a negotiated timber [OR

01 MATERIAL] sale under AS 38.05.115 to provide for personal use, including house 02 logs and firewood, or for a use incidental to the construction of access, or for habitat 03 enhancement. 04 * Sec. 23. AS 46.15.155(a) is amended to read: 05 (a) Notwithstanding any contrary provision of this chapter, the commissioner 06 may authorize the temporary use of a significant amount of water, as determined by 07 the department by regulation, for a period of time not to exceed five consecutive years 08 for each authorization, if the water applied for has not been appropriated in 09 accordance with this chapter. In the commissioner's discretion, a new authorization 10 for the temporary use of a significant amount of water may be issued for a 11 project at or before the expiration of the existing authorization issued for the 12 same project. 13 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change 16 (1) the heading of art. 4 of AS 38.05 from "Disposal of Timber and Materials" 17 to "Disposal of Timber"; 18 (2) the catch line of AS 38.05.110 from "Sale of timber and materials; 19 account" to "Sale of timber." 20 * Sec. 25. Section 20 of this Act takes effect July 1, 2017. 21 * Sec. 26. Except as provided in sec. 25 of this Act, this Act takes effect July 1, 2012.