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CSHB 361(FIN): "An Act relating to the Alaska Land Act, including certain leases, sales, and other disposals of state land and materials; relating to production royalties from miners; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 361(FIN) 01 "An Act relating to the Alaska Land Act, including certain leases, sales, and other 02 disposals of state land and materials; relating to production royalties from miners; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.050 is amended to read: 06 Sec. 38.05.050. Disposal of land for private ownership. The commissioner 07 shall determine the land to be disposed of for private use. The commissioner shall 08 determine the time and place of disposal. A public [AN] auction sale, sale by sealed 09 bid, a lottery sale, or a disposal of land for homesites may be held in a community that 10 is near the land to be sold or disposed of. 11 * Sec. 2. AS 38.05.055 is amended to read: 12 Sec. 38.05.055. Auction sale or sealed bid procedures. Unless another 13 method of sale is required under this chapter, AS 38.08, or AS 38.09, the sale of state 14 land shall be made at public auction or by sealed bid, at the discretion of the

01 director, to the highest qualified bidder as determined by the director. The director 02 may accept bids and sell state land under this section at not [NO] less than 70 percent 03 of the appraised fair market value of the land. To qualify to participate under this 04 section in a public auction or sale by sealed bid of state land that is other than 05 commercial, industrial, or agricultural land, a bidder shall have been a resident of the 06 state for at least one year immediately preceding the date of the sale [AUCTION] and 07 submit proof of that fact, as the commissioner requires by regulation. A bidder may be 08 represented by an attorney or agent at a public [THE] auction. An aggrieved bidder 09 may appeal to the commissioner within five days after the sale for a review of the 10 director's determination. The sale shall be conducted by the director, and, at the time 11 of sale, the successful bidder shall deposit an amount equal to five percent of the 12 purchase price. The director shall immediately issue a receipt containing a description 13 of the land or property purchased, the price bid, and the amount deposited. The receipt 14 shall be acknowledged in writing by the bidder. 15 * Sec. 3. AS 38.05.065(a) is amended to read: 16 (a) The contract of sale for land sold at public auction or by sealed bid under 17 AS 38.05.055 shall require the remainder of the purchase price to be paid in monthly, 18 quarterly, or annual installments over a period of not more than 20 years, with interest 19 at the rate provided in (i) of this section. Installment payments plus interest shall be set 20 on the level-payment basis. 21 * Sec. 4. AS 38.05.069(a) is amended to read: 22 (a) After consulting with the Board of Agriculture and Conservation 23 (AS 03.09.010), on a determination that the highest and best use of unoccupied land is 24 for agricultural purposes and that it is in the best interests of the state to sell or lease 25 the land, the commissioner shall grant to an Alaska resident owning and using or 26 leasing and using land for agricultural purposes a first option [AT THE AUCTION] to 27 purchase or lease the unoccupied land situated adjacent to land presently held by the 28 Alaska resident for the amount of the high bid received at public auction or by sealed 29 bid. If more than one Alaska resident qualifies for a first option under this section, 30 eligibility for the first option shall be determined by lot, and the option must be 31 exercised on the conclusion of the public auction or opening of sealed bids. A parcel

01 of agricultural land sold under this section may not be less than 20 acres, and a parcel 02 of agricultural land that is acquired by exercise of the option granted in this subsection 03 may not exceed 320 acres. Agricultural land that is acquired under this section must be 04 used for agricultural purposes as required by law. 05 * Sec. 5. AS 38.05.069(c) is amended to read: 06 (c) Under this section, 07 (1) the director may transfer state land classified for agriculture only 08 for agricultural purposes; 09 (2) the sale or lease shall be at public auction or by sealed bid. 10 * Sec. 6. AS 38.05.070(b) is amended to read: 11 (b) The director, with the approval of the commissioner, shall determine the 12 land to be leased and the limitations, conditions, and terms of the lease. The director 13 shall preserve reasonable and traditional access to state land and water. If the 14 appraised value of the transaction is $10,000 [$5,000] a year or less the director may 15 negotiate a lease for a period not to exceed 10 years, and on the limitations, 16 conditions, and terms that the director considers are in the best interests of the state. A 17 lease negotiated under this subsection is not eligible for a preference under 18 AS 38.05.102. 19 * Sec. 7. AS 38.05.070 is amended by adding new subsections to read: 20 (d) If, after notice under AS 38.05.945 soliciting interest for a competitive 21 auction, the department determines that only one potential bidder has expressed 22 interest in bidding, the director may cancel the competitive auction and negotiate a 23 lease and its conditions and terms that the director determines to be in the best 24 interests of the state. 25 (e) The director may renew a lease issued under this section, AS 38.05.075, or 26 38.05.810 upon its expiration if the lease is in good standing and the lease renewal is 27 determined to be in the best interests of the state. A renewal issued under this 28 subsection is not subject to AS 38.05.035(e). A lease may be renewed only once for a 29 term not longer than the initial term of the lease. 30 * Sec. 8. AS 38.05.073(g) is amended to read: 31 (g) After soliciting proposals under (e) of this section, if the commissioner

01 determines that two or more potential lessees are acceptable, the commissioner may 02 select the potential lessee who submits the highest bid during a public [AN] auction or 03 by sealed bids, whichever method the commissioner chooses. The minimum bid must 04 equal the amount established by the commissioner plus the administrative fee 05 established under (k) of this section. The commissioner shall also require the potential 06 lessee to make an earnest money deposit under AS 38.05.860(b). After the 07 commissioner selects a potential lessee, the commissioner may begin negotiations with 08 the potential lessee to develop the terms and conditions for the lease. 09 * Sec. 9. AS 38.05.075(a) is amended to read: 10 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.082, 11 38.05.083, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 38.05.810, and this section, 12 when competitive interest has been demonstrated or the commissioner 13 determines that it is in the state's best interests, leasing shall be made at public 14 auction or by sealed bid, at the discretion of the director, to the highest qualified 15 bidder as determined by the commissioner. A bidder may be represented by an 16 attorney or agent at a public auction. In the public notice of a lease to be offered at 17 public auction or by sealed bid, the commissioner shall specify a minimum 18 acceptable bid and the lease compensation method. The lease compensation method 19 shall be designed to maximize the return on the lease to the state and shall be a form of 20 compensation set out in AS 38.05.073(m). An aggrieved bidder may appeal to the 21 commissioner within five days for a review of the determination. The leasing shall be 22 conducted by the commissioner, and the successful bidder shall deposit at the public 23 auction or with the sealed bid the first year's rental or other lease compensation as 24 specified by the commissioner, or that portion of it that the commissioner requires in 25 accordance with the bid. The commissioner shall require, under AS 38.05.860, 26 qualified bidders to deposit a sum equal to any survey or appraisal costs reasonably 27 incurred by another qualified bidder acting in accordance with the regulations of the 28 commissioner or incurred by the department under AS 38.04.045 and AS 38.05.840. If 29 a bidder making a deposit of survey or appraisal costs is determined by the 30 commissioner to be the highest qualified bidder under this subsection, the deposit shall 31 be paid to the unsuccessful bidder who incurred those costs or to the department if the

01 department incurred the costs. All costs for survey and appraisal shall be approved in 02 advance in writing by the commissioner. The commissioner shall immediately issue a 03 receipt containing a description of the land or interest leased, the price bid, and the 04 terms of the lease to the successful qualified bidder. If the receipt is not accepted in 05 writing by the bidder under this subsection, the commissioner may offer the land for 06 lease again under this subsection. A lease, on a form approved by the attorney general, 07 shall be signed by the successful bidder and by the commissioner [WITHIN THE 08 PERIOD SPECIFIED IN THE AUCTION NOTICE]. 09 * Sec. 10. AS 38.05.075(e) is amended to read: 10 (e) The commissioner may require prequalification of bidders for a lease to be 11 issued under AS 38.05.070. If the commissioner determines to require 12 prequalification, the procedures established by this section and the notice including 13 prequalification [PRE-QUALIFICATION] requirements required to be given under 14 AS 38.05.945 shall be completed within 75 days of the receipt of the first lease 15 application unless the commissioner grants additional time for the completion of the 16 procedures. Within the 75-day period or the additional time granted by the 17 commissioner, the commissioner shall complete 18 (1) classification under AS 38.05.300; 19 (2) the procedures required by AS 38.05.035(e); 20 (3) any other action required by law for the disposal of the lease to a 21 bidder except survey, appraisal, and the auction or sealed bid. 22 * Sec. 11. AS 38.05.075(g) is amended to read: 23 (g) Notice of an auction or sealed bid required under this section shall be 24 made by certified mail to all prequalified bidders. 25 * Sec. 12. AS 38.05.083(a) is amended to read: 26 (a) The commissioner may offer to the public for lease at public auction or by 27 sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for 28 aquatic farming or related hatchery operations. Before a final decision to issue or 29 renew a lease under this section, the commissioner shall give notice and allow 30 opportunity for comment in accordance with AS 38.05.945 and may hold a hearing to 31 take testimony. Before a final decision to issue or renew a lease under this section, the

01 commissioner shall consider all relevant comment or testimony submitted under this 02 section, AS 38.05.945, or 38.05.946. 03 * Sec. 13. AS 38.05.110(a) is amended to read: 04 (a) The commissioner shall provide for cruises of timber on [AND 05 APPRAISALS OF OTHER MATERIALS IN OR UPON] state land and shall assess 06 the supply of and current markets for timber on [AND OTHER MATERIALS IN] 07 privately owned land in close proximity to state land to determine 08 (1) the timber [AND OTHER MATERIALS] that should be offered for 09 sale; and 10 (2) the terms of sale of the timber [OR OTHER MATERIALS]. 11 * Sec. 14. AS 38.05.115 is amended to read: 12 Sec. 38.05.115. Limitations and conditions of sale. (a) The commissioner 13 shall determine the timber [AND OTHER MATERIALS] to be sold [,] and the 14 limitations, conditions, and terms of sale. The limitations, conditions, and terms shall 15 include the utilization, development, and maintenance of the sustained yield principle, 16 subject to preference among other beneficial uses. The commissioner may negotiate 17 sales of timber [OR MATERIALS] without advertisement and on the limitations, 18 conditions, and terms that are considered to be in the best interests of the state. Within 19 a one-year period, the commissioner may not negotiate a sale without advertisement to 20 the same purchaser of 21 [(1)] more than 500 M.B.M. or equivalent other measure of timber [; 22 (2) EXCEPT AS PROVIDED IN (3) OF THIS SUBSECTION, 23 MORE THAN 25,000 CUBIC YARDS OF MATERIALS; OR 24 (3) MORE THAN 100,000 CUBIC YARDS OF MATERIALS TO A 25 COMMON CARRIER HOLDING A LEASE UNDER AS 38.35]. 26 (b) Negotiated sales not exceeding 50 M.B.M. or the equivalent other measure 27 of timber [OR 2,500 CUBIC YARDS OF MATERIALS] are exempt from the 28 provisions of AS 34.15.150. 29 (c) The limitations of this section are not applicable to timber that [WHICH] 30 becomes state property under the provisions of AS 45.50.210 - 45.50.235. 31 * Sec. 15. AS 38.05.120 is amended to read:

01 Sec. 38.05.120. Disposal procedure. Timber [AND OTHER MATERIALS] 02 shall be sold either by sealed bids or public auction, depending on which method is 03 determined by the commissioner to be in the best interests of the state, to the highest 04 qualified bidder as determined by the commissioner. An aggrieved bidder may appeal 05 to the commissioner within five days after the sale for a review of the determination. 06 The sale shall be conducted by the commissioner, and, at the time of sale, the 07 successful bidder shall deposit the amount specified in the terms of sale. The means by 08 which the amount of deposit is determined shall be prescribed by appropriate 09 regulation. The commissioner shall immediately issue a receipt containing a 10 description of the timber [OR MATERIALS] purchased, the price bid, and the terms 11 of sale. The receipt shall be accepted in writing by the bidder. A contract of sale, on a 12 form approved by the attorney general, shall be signed by the purchaser and the 13 contract shall be signed by the commissioner on behalf of the state. The commissioner 14 may impose conditions, limitations, and terms considered necessary and proper to 15 protect the interests of the state. Violation of any provision of this chapter or the terms 16 of the contract of sale subjects the purchaser to appropriate legal action. 17 * Sec. 16. AS 38.05.212(a) is amended to read: 18 (a) In exchange for and to preserve the right to extract and possess the 19 minerals produced, the holder of a mining claim, leasehold location, or mining lease, 20 including a mining lease under AS 38.05.250, shall pay a royalty on all minerals 21 produced from land subject to the claim, leasehold location, or mining lease during 22 each calendar year, or each fiscal year if the miner does not file the mining license 23 tax on a calendar year basis. The department may exempt, by regulation, small 24 operations from the production royalty otherwise required by this section. 25 * Sec. 17. AS 38.05.250(c) is amended to read: 26 (c) Each submerged land mining lease shall be for a period of up to 20 years 27 and for so long as there is production in paying quantities from the leased area. A 28 submerged land mining lease may be renewed for a period of up to 20 years at 29 the discretion of the director if the director determines that the renewal is in the 30 best interests of the state. 31 * Sec. 18. AS 38.05 is amended by adding new sections to read:

01 Article 13A. Material Sales. 02 Sec. 38.05.550. Disposal of materials. (a) All materials owned by the state 03 may be sold or conveyed as provided in AS 38.05.550 - 38.05.565. 04 (b) Materials may only be sold or removed from sources or sites designated by 05 the department. The department shall issue a decision under AS 38.05.035(e) that the 06 sale and extraction of materials from that location is in the best interests of the state at 07 the time each source or site is designated. The department shall give notice, in 08 accordance with AS 38.05.945, of the department's decision to designate a source or 09 site for the sale and extraction of materials. After decision and notice, the department 10 may sell materials continuously, without further finding or notice, from that 11 designated source or site under this section until the source or site is closed by the 12 department. 13 (c) Each sale of materials must be made through a materials sales contract on a 14 form that has been approved by the attorney general. At the time of each sale, the 15 department shall determine 16 (1) the location of the source or site from which materials are to be 17 removed; 18 (2) the method of disposal as provided in AS 38.05.555 - 38.05.565; 19 and 20 (3) the limitations, conditions, and terms of sale, which shall address 21 the utilization, development, and maintenance of the source of the materials. 22 (d) The commissioner shall provide for valuation of materials in or upon state 23 land. Materials sold or conveyed under AS 38.05.550 - 38.05.565 may, at the 24 director's discretion, be sold at 25 (1) representative regional sales prices periodically determined by the 26 commissioner for each type of material and for defined geographic regions, under 27 procedures established by regulation; public notice under AS 38.05.945 must be made 28 whenever the commissioner revises the representative regional sales prices; 29 (2) fair market value determined by appraisal completed and approved 30 within two years of the date of sale; or 31 (3) a price less than appraised value, determined under

01 AS 38.05.810(a). 02 Sec. 38.05.555. Negotiated sales and personal use of materials. (a) 03 Notwithstanding any other provision of AS 38.05.550 - 38.05.565, the director may 04 negotiate the sale of any amount of materials from a source or site designated under 05 AS 38.05.550(b). The period of a contract for a sale of materials negotiated under this 06 section may not exceed five years. 07 (b) Sales of materials under this section must be made at a representative 08 regional sales price set by the commissioner under AS 38.05.550(d)(1) unless 09 (1) the director determines that it is in the best interests of the state to 10 sell the materials at fair market value determined by an appraisal provided by the 11 department; 12 (2) the applicant, at its own cost, elects to provide an appraisal, 13 acceptable to the department, determining the fair market value of the materials to be 14 sold; or 15 (3) the sale is to a state or federal agency or political subdivision under 16 AS 38.05.810(a) and the material to be extracted and removed is used for public 17 purposes; sales under this paragraph may be at a price less than appraised value as 18 determined by the director. 19 (c) Subsequent sales of similar materials from the same source or site may be 20 made by the department at the price established by an appraisal provided under (b) of 21 this section. 22 (d) Individual negotiated contracts for the sale of materials authorized by (a) 23 of this section are not subject to AS 38.05.035(e) or 38.05.945. 24 (e) Materials from a source or site designated under AS 38.05.550(b) may be 25 extracted and removed for personal use without cost up to a limit of two cubic yards a 26 person within a one-calendar-year period. Extraction and removal of materials under 27 this subsection must be approved by the department before extraction operations. 28 (f) Notwithstanding (a) - (e) of this section, for the purpose of creating 29 incentives for the development of peat as a source of heat or power, the director may 30 negotiate the sale of peat to individuals, organized or unorganized communities, tribal 31 governments, or private profit or nonprofit organizations. Under this subsection, the

01 director may provide 02 (1) for personal use by an individual, not more than 200 cubic yards of 03 peat a year at no cost; 04 (2) for commercial use, not more than 30,000 cubic yards of peat 05 during a single 10-year period at no cost; or 06 (3) for commercial use requiring more than 30,000 cubic yards of peat, 07 the amount required by the user during a 10-year period beginning when the user uses 08 more than 30,000 yards of peat at the price of 09 (A) 20 percent of the representative regional sales price 10 determined by the director under AS 38.05.550(d)(1); or 11 (B) 20 percent of the fair market value determined by an 12 appraisal completed under AS 38.05.550(d)(2), if the applicant provides the 13 appraisal at the applicant's expense and the appraisal is approved by the 14 commissioner. 15 Sec. 38.05.560. Competitive sales of materials. (a) The department shall offer 16 materials from a source or site designated under AS 38.05.550(b) for competitive sale 17 if the department determines that 18 (1) the sale would result in an exclusive use by the purchaser of a 19 designated source or site; 20 (2) materials available at a designated source or site are insufficient to 21 supply all anticipated buyers; 22 (3) the size of the designated source or site is too small to 23 accommodate the extraction operations of all anticipated buyers; or 24 (4) it is in the best interests of the state. 25 (b) Notice of a competitive sale of materials from a source or site designated 26 under AS 38.05.550(b) shall be given under AS 38.05.945(a)(4) and shall 27 (1) describe the location of the designated source or site, and the type 28 and quantity of the materials to be sold; 29 (2) solicit potential bidders to register with the department to 30 participate in the proposed sale; only persons registered to bid at a proposed sale of 31 materials may bid; and

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

01 AS 38.05.810(e); sales under this paragraph shall be at representative regional sales 02 prices determined under AS 38.05.550(d)(1); or 03 (3) a holder of a permit, land lease, or right-of-way issued by the 04 department, if the materials to be extracted and removed during the construction, use, 05 or maintenance of a facility authorized by a permit, land lease, or right-of-way, are 06 necessary and incidental to the primary purpose of the permit, land lease, or right-of- 07 way, and the materials are put to beneficial use in a way that alters the character, 08 usefulness, or availability of the materials in their native forms; the department may 09 authorize the sale of materials under terms of the permit, land lease, or right-of-way; 10 sales of materials under this paragraph must be at 11 (A) the representative regional sales price established under 12 AS 38.05.550(d)(1) unless the sale is to a state or federal agency, political 13 subdivision, or other entity under AS 38.05.810(a); or 14 (B) a price less than appraised value as determined by the 15 director if the sale is to a state or federal agency, political subdivision, or other 16 entity under AS 38.05.810(a) and the materials to be extracted and removed 17 are used for public purposes. 18 (b) If materials are moved within and not removed from the boundaries of a 19 permit, land lease, or right-of-way issued by the department without altering the 20 character, usefulness, or availability of the materials in their native forms, the 21 applicant may not be required to purchase the materials. 22 (c) In this section, "land lease" 23 (1) means a lease issued under AS 38.05.070 - 38.05.105; 24 (2) does not include a lease issued under AS 38.05.131 - 38.05.275. 25 * Sec. 19. AS 38.05.810(b) is amended to read: 26 (b) Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director, 27 upon application filed by an applicant eligible under (b) - (d) of this section, may, by 28 negotiation and without competitive bid [PUBLIC AUCTION] in the manner 29 prescribed in (b) - (d) of this section, lease state land for a term of not more than 55 30 years. Before leasing, the director shall prepare a land use plan and a land 31 classification to ensure [INSURE] that the proposed use is compatible with area

01 utilization. Before the land may be leased under (b) - (d) of this section, it must be 02 shown to the satisfaction of the director that the land is to be used for an established or 03 definitely proposed project, and that the eligible applicant has the financial ability to 04 carry out the project. The commissioner may establish limitations on the acreage that 05 [WHICH] may be leased under (b) - (d) of this section to an applicant. 06 * Sec. 20. AS 38.05.810(e) is amended to read: 07 (e) The lease, sale, or other disposal of state land at appraised fair market 08 value may be negotiated with a licensed public utility or a licensed common carrier by 09 the director with the approval of the commissioner if the utility or carrier reasonably 10 requires the land for the conduct of its business under its license. Notwithstanding 11 AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or 12 maintenance of property leased, sold, or disposed of under this section may be 13 negotiated by the director. A lease with a licensed public utility that is an electric 14 utility entered into under this subsection may not include, as part of the rent or other 15 fee that is negotiated or charged, an amount that is based on or determined by a 16 percentage of gross revenue for renewable energy produced by the electric utility. 17 * Sec. 21. AS 38.05.872 is repealed and reenacted to read: 18 Sec. 38.05.872. Disposition of state land and resources for flood control 19 projects. (a) The department may make conveyances of title or other interests in state 20 land, provide for exchange of land, or make other arrangements with respect to state 21 land, as necessary to meet federally established requirements of flood control projects 22 authorized inside the state by the United States. 23 (b) The commissioner may convey materials at less than fair market value to 24 municipalities, other state and federal agencies, or other entities, and make other 25 arrangements for land and materials as mitigation of a flooding area where excess 26 material deposition significantly contributes to the flooding, consistent with a site- 27 specific flood mitigation plan approved by the commissioner and determined to be in 28 the best interests of the public. 29 * Sec. 22. AS 38.05.945(b) is amended to read: 30 (b) When notice is required to be given under this section, 31 (1) the notice must contain sufficient information in commonly

01 understood terms to inform the public of the nature of the action and the opportunity 02 of the public to comment on it; 03 (2) if the notice is of a preliminary written finding described in 04 (a)(3)(A) of this section, the department shall give notice at the beginning of the public 05 comment period for the preliminary written finding, notifying the public of the right to 06 submit comments; the department shall give notice by 07 (A) posting notice on the Alaska Online Public Notice 08 System for at least 30 consecutive days [PUBLICATION OF A LEGAL 09 NOTICE IN NEWSPAPERS OF STATEWIDE CIRCULATION AND IN 10 NEWSPAPERS OF GENERAL CIRCULATION IN THE VICINITY OF 11 THE PROPOSED ACTION AT LEAST ONCE A WEEK FOR TWO 12 CONSECUTIVE WEEKS]; 13 (B) publication of a notice in display advertising form 14 describing the proposed action and referencing the online notice required 15 in (A) of this paragraph in newspapers of statewide circulation and in 16 newspapers of general circulation in the vicinity of the proposed action, if 17 available, [IN THE NEWSPAPERS DESCRIBED IN (A) OF THIS 18 PARAGRAPH] at least 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) [(ii)] notification of parties known or likely to be 29 affected by the action; or 30 (iv) [(iii)] another method calculated to reach affected 31 parties;

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

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

01 (B) publication through public service announcements on the 02 electronic media serving the area affected by the action; 03 (C) posting in a conspicuous location in the vicinity of the 04 action; 05 (D) notification of parties known or likely to be affected by the 06 action; or 07 (E) [PUBLICATION OF A LEGAL NOTICE, AT LEAST 30 08 DAYS BEFORE THE ACTION, BRIEFLY DESCRIBING THE PROPOSED 09 ACTION AND REFERENCING THE ONLINE NOTICE REQUIRED IN 10 THIS PARAGRAPH IN NEWSPAPERS OF STATEWIDE CIRCULATION 11 AND IN NEWSPAPERS OF GENERAL CIRCULATION IN THE 12 VICINITY OF THE PROPOSED ACTION, IF AVAILABLE; OR 13 (F)] another method calculated to reach affected persons. 14 * Sec. 24. AS 38.05.965(10) is repealed and reenacted to read: 15 (10) "materials" 16 (A) means all common variety rock and minerals of any 17 quality, that are saleable and not subject to location under state or federal 18 mining laws; 19 (B) includes aggregate, riprap, railroad ballast, road ballast, 20 road metal, peat, silt, loam, sand, gravel, stone, pumice, and common clay; 21 * Sec. 25. AS 41.23.470(b) is amended to read: 22 (b) The commissioner may conduct only a negotiated timber [OR 23 MATERIAL] sale under AS 38.05.115 to provide for personal use, including house 24 logs and firewood, or for a use incidental to the construction of access, or for habitat 25 enhancement. 26 * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change 29 (1) the heading of art. 4 of AS 38.05 from "Disposal of Timber and Materials" 30 to "Disposal of Timber"; 31 (2) the catch line of AS 38.05.110 from "Sale of timber and materials;

01 account" to "Sale of timber." 02 * Sec. 27. Section 23 of this Act takes effect July 1, 2017. 03 * Sec. 28. Except as provided in sec. 27 of this Act, this Act takes effect July 1, 2012.