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CSHB 77(RES): "An Act relating to the Alaska Land Act, including certain authorizations, contracts, leases, permits, or other disposals of state land, resources, property, or interests; relating to authorization for the use of state land by general permit; relating to exchange of state land; relating to procedures for certain administrative appeals and requests for reconsideration to the commissioner of natural resources; relating to the Alaska Water Use Act; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 77(RES) 01 "An Act relating to the Alaska Land Act, including certain authorizations, contracts, 02 leases, permits, or other disposals of state land, resources, property, or interests; relating 03 to authorization for the use of state land by general permit; relating to exchange of state 04 land; relating to procedures for certain administrative appeals and requests for 05 reconsideration to the commissioner of natural resources; relating to the Alaska Water 06 Use Act; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 38.05.020 is amended by adding a new subsection to read: 09 (c) Notwithstanding any other provision of law, the commissioner may 10 authorize an activity on state land by the issuance of a general permit if the 11 commissioner finds that the activity is unlikely to result in significant and irreparable 12 harm to state land or resources. This subsection does not apply to land designated 13 under AS 16.20, AS 27.21, AS 41.17, or AS 41.21.

01 * Sec. 2. AS 38.05.030(c) is amended to read: 02 (c) The [IN ADDITION TO THE REQUIREMENTS SPECIFIED IN 03 AS 38.50.090, THE] agencies referred to in (b) of this section and other state agencies 04 with authority to acquire or dispose of land shall give written notification of the fact of 05 acquisition, lease, disposal, or exchange to the commissioner not later than 06 [WITHIN] three months after the date that they make the acquisition, lease, disposal, 07 or exchange. 08 * Sec. 3. AS 38.05.035(e) is amended to read: 09 (e) Upon a written finding that the interests of the state will be best served, the 10 director may, with the consent of the commissioner, approve contracts for the sale, 11 lease, or other disposal of available land, resources, property, or interests in them. In 12 approving a contract under this subsection, the director need only prepare a single 13 written finding. In addition to the conditions and limitations imposed by law, the 14 director may impose additional conditions or limitations in the contracts as the director 15 determines, with the consent of the commissioner, will best serve the interests of the 16 state. The preparation and issuance of the written finding by the director are subject to 17 the following: 18 (1) with the consent of the commissioner and subject to the director's 19 discretion, for a specific proposed disposal of available land, resources, or property, or 20 of an interest in them, the director, in the written finding, 21 (A) shall establish the scope of the administrative review on 22 which the director's determination is based, and the scope of the written 23 finding supporting that determination; the scope of the administrative review 24 and finding may address only reasonably foreseeable, significant effects of the 25 uses proposed to be authorized by the disposal; 26 (B) may limit the scope of an administrative review and finding 27 for a proposed disposal to 28 (i) applicable statutes and regulations; 29 (ii) the facts pertaining to the land, resources, or 30 property, or interest in them, that the director finds are material to the 31 determination and that are known to the director or knowledge of which

01 is made available to the director during the administrative review; and 02 (iii) issues that, based on the statutes and regulations 03 referred to in (i) of this subparagraph, on the facts as described in (ii) of 04 this subparagraph, and on the nature of the uses sought to be authorized 05 by the disposal, the director finds are material to the determination of 06 whether the proposed disposal will best serve the interests of the state; 07 and 08 (C) may, if the project for which the proposed disposal is 09 sought is a multiphased development, limit the scope of an administrative 10 review and finding for the proposed disposal to the applicable statutes and 11 regulations, facts, and issues identified in (B)(i) - (iii) of this paragraph that 12 pertain solely to the disposal phase of the project when 13 (i) the only uses to be authorized by the proposed 14 disposal are part of that phase; 15 (ii) the disposal is a disposal of oil and gas, or of gas 16 only, and, before the next phase of the project may proceed, public 17 notice and the opportunity to comment are provided under regulations 18 adopted by the department; 19 (iii) the department's approval is required before the 20 next phase of the project may proceed; and 21 (iv) the department describes its reasons for a decision 22 to phase; 23 (2) the director shall discuss in the written finding prepared and issued 24 under this subsection the reasons that each of the following was not material to the 25 director's determination that the interests of the state will be best served: 26 (A) facts pertaining to the land, resources, or property, or an 27 interest in them other than those that the director finds material under (1)(B)(ii) 28 of this subsection; and 29 (B) issues based on the statutes and regulations referred to in 30 (1)(B)(i) of this subsection and on the facts described in (1)(B)(ii) of this 31 subsection;

01 (3) a written finding for an oil and gas lease sale or gas only lease sale 02 under AS 38.05.180 is subject to (g) of this section; 03 (4) a contract for the sale, lease, or other disposal of available land or 04 an interest in land is not legally binding on the state until the commissioner approves 05 the contract, but if the appraised value is not greater than $50,000 in the case of the 06 sale of land or an interest in land, or $10,000 [$5,000] in the case of the annual rental 07 of land or interest in land, the director may execute the contract without the approval 08 of the commissioner; 09 (5) public notice requirements relating to the sale, lease, or other 10 disposal of available land or an interest in land for oil and gas, or for gas only, 11 proposed to be scheduled in the five-year oil and gas leasing program under 12 AS 38.05.180(b), except for a sale under (6)(F) of this subsection, are as follows: 13 (A) before a public hearing, if held, or in any case not less than 14 180 days before the sale, lease, or other disposal of available land or an interest 15 in land, the director shall make available to the public a preliminary written 16 finding that states the scope of the review established under (1)(A) of this 17 subsection and includes the applicable statutes and regulations, the material 18 facts and issues in accordance with (1)(B) of this subsection, and information 19 required by (g) of this section, upon which the determination that the sale, 20 lease, or other disposal will serve the best interests of the state will be based; 21 the director shall provide opportunity for public comment on the preliminary 22 written finding for a period of not less than 60 days; 23 (B) after the public comment period for the preliminary written 24 finding and not less than 90 days before the sale, lease, or other disposal of 25 available land or an interest in land for oil and gas or for gas only, the director 26 shall make available to the public a final written finding that states the scope of 27 the review established under (1)(A) of this subsection and includes the 28 applicable statutes and regulations, the material facts and issues in accordance 29 with (1) of this subsection, and information required by (g) of this section, 30 upon which the determination that the sale, lease, or other disposal will serve 31 the best interests of the state is based;

01 (6) before a public hearing, if held, or in any case not less than 21 days 02 before the sale, lease, or other disposal of available land, property, resources, or 03 interests in them other than a sale, lease, or other disposal of available land or an 04 interest in land for oil and gas or for gas only under (5) of this subsection, the director 05 shall make available to the public a written finding that, in accordance with (1) of this 06 subsection, sets out the material facts and applicable statutes and regulations and any 07 other information required by statute or regulation to be considered upon which the 08 determination that the sale, lease, or other disposal will best serve the interests of the 09 state was based; the director may make available to the public a preliminary 10 written finding and provide opportunity for public comment on the preliminary 11 written finding for a period of at least 30 days; [HOWEVER,] a written finding is 12 not required before the approval of 13 (A) a contract for a negotiated sale authorized under 14 AS 38.05.115; 15 (B) a lease of land for a shore fishery site under AS 38.05.082; 16 (C) a permit or other authorization revocable by the 17 commissioner; 18 (D) a mineral claim located under AS 38.05.195; 19 (E) a mineral lease issued under AS 38.05.205; 20 (F) an exempt oil and gas lease sale or gas only lease sale under 21 AS 38.05.180(d) of acreage subject to a best interest finding issued within the 22 previous 10 years or a reoffer oil and gas lease sale or gas only lease sale under 23 AS 38.05.180(w) of acreage subject to a best interest finding issued within the 24 previous 10 years, unless the commissioner determines that substantial new 25 information has become available that justifies a supplement to the most recent 26 best interest finding for the exempt oil and gas lease sale or gas only lease sale 27 acreage and for the reoffer oil and gas lease sale or gas only lease sale acreage; 28 however, for each oil and gas lease sale or gas only lease sale described in this 29 subparagraph, the director shall call for comments from the public; the 30 director's call for public comments must provide opportunity for public 31 comment for a period of not less than 30 days; if the director determines that a

01 supplement to the most recent best interest finding for the acreage is required 02 under this subparagraph, 03 (i) the director shall issue the supplement to the best 04 interest finding not later than 90 days before the sale; 05 (ii) not later than 45 days before the sale, the director 06 shall issue a notice describing the interests to be offered, the location 07 and time of the sale, and the terms and conditions of the sale; and 08 (iii) the supplement has the status of a final written best 09 interest finding for purposes of (i) and (l) of this section; 10 (G) a surface use lease under AS 38.05.255; 11 (H) a permit, right-of-way, or easement under AS 38.05.850; 12 (7) the director shall include in 13 (A) a preliminary written finding, if issued [REQUIRED], a 14 summary of agency and public comments, if any, obtained as a result of 15 contacts with other agencies concerning a proposed disposal or as a result of 16 informal efforts undertaken by the department to solicit public response to a 17 proposed disposal, and the department's preliminary responses to those 18 comments; and 19 (B) the final written finding a summary of agency and public 20 comments received and the department's responses to those comments. 21 * Sec. 4. AS 38.05.035(i) is amended to read: 22 (i) A person who is eligible to file an administrative appeal or a request for 23 reconsideration, as appropriate, under this subsection and who is substantially and 24 adversely affected [AGGRIEVED] by the final written finding of the director entered 25 under (e)(5) or (6) of this section may, not later than [WITHIN] 20 days after the 26 issuance of the final written finding, file an administrative appeal or request 27 reconsideration of the decision by the commissioner. A person is eligible to file an 28 administrative appeal or a request for reconsideration if the person 29 (1) meaningfully participated in the process set out in this chapter for 30 receipt of public comment by 31 (A) submitting written comment during the period for receipt

01 of public comment; or 02 (B) presenting oral testimony at a public hearing, if a public 03 hearing was held; or [AND] 04 (2) is the applicant [AFFECTED BY THE FINAL WRITTEN 05 FINDING]. 06 * Sec. 5. AS 38.05.035(j) is amended to read: 07 (j) An administrative appeal or a request for reconsideration submitted under 08 (i) of this section must specify the written finding complained of and the specific basis 09 upon which it is challenged. [THE COMMISSIONER SHALL GRANT OR DENY 10 THE ADMINISTRATIVE APPEAL OR RECONSIDERATION REQUEST WITHIN 11 30 DAYS AFTER ISSUANCE OF THE FINAL WRITTEN FINDING.] Failure of the 12 commissioner to act on a [THE] request for reconsideration not later than 30 days 13 after issuance of the final written finding [WITHIN THIS PERIOD] is a denial of 14 the request for reconsideration and a final administrative decision for purposes of 15 appeal to the superior court. 16 * Sec. 6. AS 38.05.035(l) is amended to read: 17 (l) A person may appeal a final written finding issued under (e)(5) or (6) of 18 this section to the superior court, but only if the person was eligible to request, and did 19 request, an administrative appeal or reconsideration of that finding under (i) of this 20 section. The person shall initiate the appeal to the court not later than [WITHIN] 30 21 days from the date that the decision on administrative appeal or reconsideration is 22 mailed or otherwise distributed, or the date the request for reconsideration is 23 considered denied by the commissioner's failure to act on the request, whichever is 24 earlier. The points on appeal to the court are limited to those presented to the 25 commissioner in the person's administrative appeal or request for reconsideration. 26 * Sec. 7. AS 38.05.065(a) is amended to read: 27 (a) Unless the remainder of the purchase price is paid in full at the time of 28 the sale, a [THE] contract of sale for land or property sold [AT PUBLIC AUCTION 29 OR BY SEALED BID] under this chapter or former AS 38.05.078 [AS 38.05.055] 30 shall require the remainder of the purchase price to be paid in monthly, quarterly, or 31 annual installments over a period of not more than 20 years, with interest at the rate

01 provided in (i) of this section. Installment payments plus interest shall be set on the 02 level-payment basis. 03 * Sec. 8. AS 38.05.065(c) is amended to read: 04 (c) The director shall, for a contract that provides for installment payments 05 [CONTRACTS] under (a) [, (b),] or (h) of this section, set out in the contract [FOR 06 EACH SALE] the period for the payment of installments and the total purchase price 07 plus interest. The director, with the consent of the commissioner, may also include in a 08 contract [CONTRACTS] under this section conditions, limitations, and terms 09 considered necessary and proper to protect the interest of the state. Violations of any 10 provision of this chapter or the terms of the contract of sale subject the purchaser to 11 appropriate administrative and legal action, including but not limited to specific 12 performance, foreclosure, ejectment, or other legal remedies in accordance with 13 applicable state law. 14 * Sec. 9. AS 38.05.065(h) is amended to read: 15 (h) The commissioner, after consulting with the Board of Agriculture and 16 Conservation (AS 03.09.010), 17 (1) shall provide that, notwithstanding (a) [AND (b)] of this section, in 18 a contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural 19 uses, the interest rate to be charged on installment payments may not exceed 9.5 20 percent; and 21 (2) may declare a moratorium of up to five years on payments on land 22 sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 23 uses if 24 (A) the commissioner determines that the moratorium is in the 25 best interest of the state; 26 (B) the commissioner certifies and the contract purchaser 27 agrees to perform farm development, crop production, and harvesting, not 28 including land clearing or related activity, requiring the expenditure of 29 amounts equivalent to the payments that would otherwise be made during the 30 moratorium; 31 (C) the sale of the agricultural land takes place after July 1,

01 1979; and 02 (D) the contract purchaser is in compliance with the 03 development plan specified in the purchase contract at the time the purchaser 04 applies for a moratorium under this paragraph and remains in compliance with 05 the development plan during the moratorium; for the payments subject to the 06 moratorium declared under this paragraph, interest payments are subject to the 07 moratorium but interest continues to accrue during the moratorium. 08 * Sec. 10. AS 38.05.070 is amended by adding new subsections to read: 09 (f) A lease may be extended once for a period up to two years, if the director 10 determines it to be in the best interests of the state and the extension is necessary to 11 prolong the lease while the department considers 12 (1) a lessee preference application under AS 38.05.102; 13 (2) an application to renew the lease under (e) of this section; or 14 (3) an application to issue a new lease on the same site that, because it 15 substantially changes the purpose or operation of an existing lease, requires a new 16 finding and decision under AS 38.05.035(e) before the purpose or operation of a lease 17 is changed. 18 (g) An extension issued under (f) of this section is not subject to 19 AS 38.05.035(e). The director shall provide public notice of the decision to extend the 20 lease. 21 * Sec. 11. AS 38.05.075(a) is amended to read: 22 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.082, 23 38.05.083, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 38.05.810, and this section, 24 when competitive interest has been demonstrated or the commissioner determines that 25 it is in the state's best interests, leasing shall be made at public auction or by sealed 26 bid, at the discretion of the director, to the highest qualified bidder as determined by 27 the commissioner. A bidder may be represented by an attorney or agent at a public 28 auction. In the public notice of a lease to be offered at public auction or by sealed bid, 29 the commissioner shall specify a minimum acceptable bid and the lease compensation 30 method. The lease compensation method shall be designed to maximize the return on 31 the lease to the state and shall be a form of compensation set out in AS 38.05.073(m).

01 A substantially and adversely affected [AN AGGRIEVED] bidder may appeal or 02 request reconsideration under AS 44.37.011; however, the appeal or request must 03 be made not later than [TO THE COMMISSIONER WITHIN] five days after 04 issuance of the determination of the highest qualified bidder for a review of the 05 determination. The leasing shall be conducted by the commissioner, and the successful 06 bidder shall deposit at the public auction or with the sealed bid the first year's rental or 07 other lease compensation as specified by the commissioner, or that portion of it that 08 the commissioner requires in accordance with the bid. The commissioner shall require, 09 under AS 38.05.860, qualified bidders to deposit a sum equal to any survey or 10 appraisal costs reasonably incurred by another qualified bidder acting in accordance 11 with the regulations of the commissioner or incurred by the department under 12 AS 38.04.045 and AS 38.05.840. If a bidder making a deposit of survey or appraisal 13 costs is determined by the commissioner to be the highest qualified bidder under this 14 subsection, the deposit shall be paid to the unsuccessful bidder who incurred those 15 costs or to the department if the department incurred the costs. All costs for survey and 16 appraisal shall be approved in advance in writing by the commissioner. The 17 commissioner shall immediately issue a receipt containing a description of the land or 18 interest leased, the price bid, and the terms of the lease to the successful qualified 19 bidder. If the receipt is not accepted in writing by the bidder under this subsection, the 20 commissioner may offer the land for lease again under this subsection. A lease, on a 21 form approved by the attorney general, shall be signed by the successful bidder and by 22 the commissioner. 23 * Sec. 12. AS 38.05.075(e) is amended to read: 24 (e) The commissioner may require prequalification of bidders for a lease to be 25 issued under AS 38.05.070. If the commissioner determines to require 26 prequalification, the procedures established by this section and the notice including 27 prequalification requirements required to be given under AS 38.05.945 shall be 28 completed not later than [WITHIN] 75 days after [OF] the receipt of the first lease 29 application unless the commissioner grants additional time for the completion of the 30 procedures. During [WITHIN] the 75-day period or the additional time granted by the 31 commissioner, the commissioner shall complete

01 (1) classification under AS 38.05.300; 02 (2) the procedures required by AS 38.05.035(e); 03 (3) any other action required by law for the disposal of the lease to a 04 bidder except survey, appraisal, and the auction or sealed bid. 05 * Sec. 13. AS 38.05.075(h) is amended to read: 06 (h) A person substantially and adversely affected [AGGRIEVED] by a 07 decision of the commissioner under this section may appeal or request 08 reconsideration under AS 44.37.011; however, the appeal or request for 09 reconsideration must be made not later than [TO THE COMMISSIONER 10 WITHIN] five days after [OF] the prequalification decision. [THE DECISION OF 11 THE COMMISSIONER UNDER THIS SUBSECTION MAY BE APPEALED TO 12 THE SUPERIOR COURT.] 13 * Sec. 14. AS 38.05.082(b) is amended to read: 14 (b) The director may classify land as subject to leases for fisheries 15 development and publicly invite applications for lease of the selected areas. Each 16 application shall be accompanied by an affidavit to the effect that the applicant 17 presently intends to personally utilize the leased area for fishing purposes the 18 following season. If two or more applications are received for the same shore area, the 19 director shall award the lease to the most qualified applicant. In determining the 20 qualifications of applicants, the director shall consider the length of time during which 21 the applicant has been engaged in set netting, the proximity of the past fishing sites of 22 the applicant to the land to be leased, the present ability of the applicant to utilize the 23 location to its maximum potential, and other factors relevant to the equitable 24 assignment of the disputed area. If the director cannot determine a preference between 25 conflicting applicants for the same lease site on the basis of qualifications, the director 26 shall select between the applicants by lot. A substantially and adversely affected 27 [AN AGGRIEVED] applicant may appeal to the commissioner under AS 44.37.011 28 not later than 20 [WITHIN 30] days after issuance of the determination for a 29 review of the director's determination. 30 * Sec. 15. AS 38.05.083(a) is amended to read: 31 (a) The commissioner may offer to the public for lease at public auction or by

01 sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for aquatic 02 farming or related hatchery operations. Before a final decision to issue [OR RENEW] 03 a lease under this section, the commissioner shall give notice and allow opportunity 04 for comment in accordance with AS 38.05.945 and may hold a hearing to take 05 testimony. Before a final decision to issue [OR RENEW] a lease under this section, 06 the commissioner shall consider all relevant comment or testimony submitted under 07 this section, AS 38.05.945, or 38.05.946. 08 * Sec. 16. AS 38.05.083 is amended by adding new subsections to read: 09 (g) The director may renew a lease issued under this section before its 10 expiration if the lease is in good standing and the director determines the lease renewal 11 to be in the best interests of the state. A renewal issued under this subsection is not 12 subject to AS 38.05.035(e). A lease may be renewed only once for a term not longer 13 than 10 years. The director shall provide notice of the decision to renew the lease. 14 (h) The director may extend the term of a lease issued under this section if the 15 lease is in good standing and the lease extension is determined to be in the best 16 interests of the state. A lease may be only extended once before its expiration for an 17 additional period of not more than two years. A lease extension may only be issued if 18 the director determines the extension is necessary while the department considers 19 (1) an application to renew the lease under (g) of this section; or 20 (2) an application to issue a new lease on the same site that, because it 21 substantially changes the purpose or operation of an existing lease, requires a new 22 finding and decision under AS 38.05.035(e) before the purpose or operation of a lease 23 is changed. 24 (i) An extension issued under (h) of this section is not subject to 25 AS 38.05.035(e). The director shall provide public notice of the decision to extend the 26 lease. 27 * Sec. 17. AS 38.05.185(a) is amended to read: 28 (a) The acquisition and continuance of rights in and to deposits on state land 29 of minerals, which on January 3, 1959, were subject to location under the mining laws 30 of the United States, shall be governed by AS 38.05.185 - 38.05.275. Nothing in 31 AS 38.05.185 - 38.05.275 affects the law pertaining to the acquisition of rights to

01 mineral deposits owned by any other person or government. The director, with the 02 approval of the commissioner, shall determine that land from which mineral deposits 03 may be mined only under lease, and, subject to the limitations of AS 38.05.300, that 04 land that shall be closed to location under AS 38.05.185 - 38.05.275. State land may 05 not be closed to location under AS 38.05.185 - 38.05.275 except as provided in 06 AS 38.05.300 and unless the commissioner makes a finding that mining would be 07 incompatible with significant surface uses on the state land. State land may not be 08 restricted to mining under lease unless the commissioner determines that potential use 09 conflicts on the state land require that mining be allowed only under written leases 10 issued under AS 38.05.205 or the commissioner has determined that the land was 11 mineral in character at the time of state selection. The determinations required under 12 this subsection shall be made in compliance with land classification orders and land 13 use plans developed under AS 38.05.300. A preliminary written decision under this 14 subsection may be made available to the public and provide opportunity for 15 public comment on the preliminary written decision for a period of at least 30 16 days. 17 * Sec. 18. AS 38.05.300(a) is amended to read: 18 (a) The commissioner shall classify for surface use land in areas considered 19 necessary and proper. This section does not prevent reclassification of land where the 20 public interest warrants reclassification, nor does it preclude multiple purpose use of 21 land whenever different uses are compatible. The commissioner may make available 22 to the public a preliminary written classification decision and provide 23 opportunity for public comment on the preliminary written decision for a period 24 of at least 30 days. If the area involved contains more than 640 contiguous acres, state 25 land, water, or land and water area may not, except by act of the state legislature, (1) 26 be closed to multiple purpose use, or (2) be otherwise classified by the commissioner 27 so that mining, mineral entry or location, mineral prospecting, or mineral leasing is 28 precluded or is designated an incompatible use, except when the classification is 29 necessary for a land disposal or exchange or is for the development of utility or 30 transportation corridors or projects or similar projects or infrastructure, or except as 31 allowed under (c) of this section.

01 * Sec. 19. AS 38.05.945(a) is amended to read: 02 (a) This section establishes the requirements for notice given by the 03 department for the following actions: 04 (1) a preliminary decision, or final decision if a preliminary 05 decision is not issued, regarding the classification or reclassification of state land 06 under AS 38.05.300 or a mineral order or leasehold location order regarding 07 [AND] the availability [CLOSING] of land to mineral leasing or entry under 08 AS 38.05.185; 09 (2) a preliminary decision, or final decision if a preliminary 10 decision is not issued, regarding the zoning of land under applicable law; 11 (3) issuance of a 12 (A) preliminary written finding under AS 38.05.035(e)(5)(A) 13 regarding the sale, lease, or disposal of an interest in state land or resources for 14 oil and gas, or for gas only, subject to AS 38.05.180(b); 15 (B) written finding for the sale, lease, or disposal of an interest 16 in state land or resources under AS 38.05.035(e)(6), except 17 (i) if a preliminary written finding is issued under 18 AS 38.05.035(e)(6); or 19 (ii) a lease sale described in AS 38.05.035(e)(6)(F) for 20 which the director must provide opportunity for public comment under 21 the provisions of that subparagraph; 22 (C) preliminary written finding that the director issued 23 under AS 38.05.035(e)(6); 24 (4) a competitive disposal of an interest in state land or resources after 25 final decision under AS 38.05.035(e); 26 (5) a preliminary finding under AS 38.05.035(e) concerning sites for 27 aquatic farms and related hatcheries; 28 (6) a decision under AS 38.05.132 - 38.05.134 regarding the sale, 29 lease, or disposal of an interest in state land or resources. 30 * Sec. 20. AS 38.05.965(21) is amended to read: 31 (21) "state land" or "land" means all land, including shoreland

01 [SHORE], tideland [TIDE], and submerged land, or resources belonging to or 02 acquired by the state; 03 * Sec. 21. AS 38.05.965 is amended by adding a new paragraph to read: 04 (26) "public auction" includes a public oral outcry auction and a public 05 online auction. 06 * Sec. 22. AS 38.50.010 is amended to read: 07 Sec. 38.50.010. Authorization for exchange of state land. Subject to the 08 requirements of this chapter, the director [, WITH THE CONCURRENCE OF THE 09 COMMISSIONER,] is authorized to exchange [DISPOSE OF] state land or interest in 10 land [BY EXCHANGING IT] for land, interest in land, or other consideration when it 11 is in the best interest of the state, including either or both the land estate or 12 mineral estate. Land or an interest in land must be of approximately equal value; 13 however, the director may accept cash from, or pay cash to, any other party to an 14 exchange in order to equalize the value of the property or other consideration 15 conveyed and received by the state. If the director determines that the property 16 to be exchanged is not of approximately equal value or if the value cannot be 17 ascertained with reasonable certainty, the director may enter into an exchange 18 with a finding that the value of the property to be received, together with the 19 value of other public benefits, equals or exceeds the value of the property that the 20 state will relinquish. Exchange procedures must comply with applicable statutes 21 and regulations and follow the decision and review procedures under 22 AS 38.05.035(e). The director may include in any patent or the written decision 23 stipulations necessary to promote or protect the public interest. If a land 24 exchange exceeds $5,000,000 in the value of state land, or if the exchange is other 25 than of an approximately equal value, the director shall forward the proposed 26 exchange to the legislature for review under AS 38.50.140 not later than 10 days 27 from the convening of the next legislative session. The notice provisions of 28 AS 38.05.945 must be followed. [EXCHANGES SHALL BE FOR THE PURPOSE 29 OF CONSOLIDATING STATE LAND HOLDINGS, CREATING LAND 30 OWNERSHIP AND USE PATTERNS WHICH WILL PERMIT MORE EFFECTIVE 31 ADMINISTRATION OF THE STATE PUBLIC DOMAIN, FACILITATING THE

01 OBJECTIVES OF STATE PROGRAMS, OR OTHER PUBLIC PURPOSES.] 02 * Sec. 23. AS 38.50.030(b) is amended to read: 03 (b) The director may negotiate an exchange involving more than one party [; 04 HOWEVER, IN ORDER TO ASCERTAIN WHETHER THE EQUAL VALUE 05 REQUIREMENTS OF THIS CHAPTER HAVE BEEN MET, THE DIRECTOR 06 SHALL CONSIDER ONLY THE LAND AND OTHER CONSIDERATION WHICH 07 THE STATE WOULD CONVEY AND RECEIVE IF THE EXCHANGE WERE 08 EXECUTED]. 09 * Sec. 24. AS 38.50.050 is amended to read: 10 Sec. 38.50.050. Conveyance of mineral rights. Subject to the requirements of 11 this chapter, the director is authorized to exchange mineral rights in state land to the 12 extent that the conveyance is authorized by the state constitution and applicable 13 federal law. [THE DIRECTOR MAY NOT EXCHANGE OR RECEIVE THE 14 SURFACE ESTATE OF LAND OR THE MINERAL RIGHTS IN IT, ONE 15 WITHOUT THE OTHER, UNLESS THE SEPARATION OF ESTATE IS 16 NECESSITATED BY A PRIOR SEPARATION OF OWNERSHIP OR BY 17 RESTRICTIONS IN APPLICABLE LAW, OR THE DIRECTOR OTHERWISE 18 FINDS THAT THE CONVEYANCE OR RECEIPT OF THE SURFACE OR 19 MINERAL ESTATES, ONE WITHOUT THE OTHER, IS NECESSARY TO 20 ACHIEVE A SIGNIFICANT PUBLIC PURPOSE.] 21 * Sec. 25. AS 38.50.070 is amended to read: 22 Sec. 38.50.070. Valid existing rights. Conveyances made by the state under 23 this chapter are subject to valid existing rights, including [, BUT NOT LIMITED TO,] 24 contracts, permits, leases, rights-of-way, and easements. Unless jurisdiction is waived, 25 the appropriate state agency shall continue to administer valid existing rights, and [AS 26 LONG AS] any revenues derived from the existing rights continue to accrue to the 27 state until state land has been conveyed under AS 38.50.150 [ARE DISTRIBUTED 28 AS PROVIDED IN THE EXCHANGE AGREEMENT]. 29 * Sec. 26. AS 38.50.140 is amended to read: 30 Sec. 38.50.140. Legislative review. Not later than [WITHIN] 10 days from 31 [OF] the convening of a regular legislative session, the governor shall transmit to the

01 president of the senate and the speaker of the house of representatives any proposal for 02 a land exchange required to be submitted to the legislature for approval under 03 AS 38.50.010 [AS 38.50.020(a)] that is scheduled to occur before the next legislative 04 session. If exigent circumstances seriously affecting state interests so require, the 05 governor may submit the proposed exchange to the legislature at some other time. A 06 finding of exigent circumstances shall be carefully documented in the letter of 07 transmittal. The director is authorized to conclude a proposed exchange agreement 08 upon approval by the legislature of the proposed exchange agreement. A decision by 09 the legislature to disapprove a proposed exchange shall be accompanied by a 10 recommendation to the governor with respect to future actions which the director 11 should take concerning the exchange. 12 * Sec. 27. AS 38.50.170(3) is amended to read: 13 (3) "state land" means all land including shoreland [SHORE], 14 tideland [TIDE], and submerged land or unsevered resources belonging to or acquired 15 by the state excluding interests in land severed or constructively severed from the 16 land. 17 * Sec. 28. AS 40.15.305(e) is amended to read: 18 (e) A recorded plat may not be altered or replatted except on petition of the 19 state, a municipality, a public utility, or the owner of a majority of the land affected by 20 the proposed alteration or replat. The petition shall be filed with the commissioner and 21 shall be accompanied by a copy of the existing plat showing the proposed alteration or 22 replat. The provisions of AS 29.40.130 and 29.40.140(a) apply to an alteration or 23 replat submitted under this subsection. The provisions of (d) of this section do not 24 apply to an alteration or replat petition, but the commissioner shall state in writing 25 reasons for disapproval of the petition. Alteration of a platted boundary is exempt 26 from this subsection if all owners approve and no public easement or right-of- 27 way is affected. A plat of the alteration remains subject to all other provisions of 28 this section. 29 * Sec. 29. AS 44.37.011(a) is amended to read: 30 (a) This section applies to administrative appeals or requests [PETITIONS] 31 for reconsideration of a decision in an administrative appeal to the commissioner of

01 natural resources, except for those administrative appeals or requests for 02 reconsideration [PETITIONS] done under AS 38.35, [OR] AS 43.82, or a different 03 procedure set out in AS 27.21 or its applicable regulations. If a conflict occurs 04 between this section and other state law existing at the time of original enactment of 05 this section, the provisions of this section control. 06 * Sec. 30. AS 44.37.011(b) is amended to read: 07 (b) If a person is an applicant, or substantially and adversely affected 08 [AGGRIEVED] by a decision of the Department of Natural Resources not made by 09 the commissioner and is otherwise eligible to seek the commissioner's review of the 10 decision, the person may appeal to the commissioner. The person may not file a 11 request [PETITION] for reconsideration of the commissioner's decision on the 12 appeal. The commissioner's decision on the administrative appeal is a final 13 administrative order for purposes of filing an appeal of the administrative decision to 14 the court. 15 * Sec. 31. AS 44.37.011(c) is amended to read: 16 (c) If a person is substantially and adversely affected [AGGRIEVED] by a 17 decision of the department made by the commissioner and is otherwise eligible to seek 18 the commissioner's review of the decision, the person may not appeal that decision to 19 the commissioner; however, the person may request [PETITION THE 20 COMMISSIONER FOR] reconsideration of the commissioner's decision. The 21 commissioner's decision made upon reconsideration or the commissioner's failure to 22 act on the request [PETITION] for reconsideration is a final administrative order for 23 purposes of filing an appeal of the administrative decision to the court. 24 * Sec. 32. AS 44.37.011(d) is amended to read: 25 (d) If a person has a right to appeal or request [PETITION FOR] 26 reconsideration under [AS 44.62.540 OR] this section, the person has [A TOTAL OF] 27 20 calendar days after the date of issuance of a final department decision [, 28 INCLUDING THE TIME AVAILABLE UNDER AS 44.62.540,] in which to file an 29 appeal or a request [PETITION] for reconsideration with the commissioner. 30 * Sec. 33. AS 44.37.011 is amended by adding new subsections to read: 31 (f) In this section, in order for a person to be adversely affected, a final

01 decision made by the department must create or impose an adverse and direct effect or 02 detriment on the person or the interests of that person. 03 (g) An appeal or request for reconsideration must include a statement that 04 explains how the person is substantially and adversely affected by the department 05 decision. The statement must 06 (1) specifically describe the substantial and adverse effect on the 07 person that is a direct result of the decision; and 08 (2) explain how the decision caused the substantial and adverse effect 09 on the person. 10 (h) If the department gives public notice and allows a public comment period 11 of at least 30 days on a proposed action, the department may restrict eligibility to 12 appeal or request reconsideration to persons who have provided timely comment on 13 the proposed action by including notice of the restriction as part of its public notice 14 announcing the opportunity to comment. 15 (i) The commissioner may reject an appeal or request for reconsideration for 16 failure to meet the requirements of (f) - (h) of this section. 17 * Sec. 34. AS 46.15.035(a) is amended to read: 18 (a) A significant amount of water, as determined by the department by 19 regulation, [WATER] may not be removed from the hydrologic unit from which it 20 was appropriated to another hydrologic unit, inside or outside the state, without being 21 returned to the hydrologic unit from which it was appropriated nor may a significant 22 amount of water be appropriated for removal from the hydrologic unit from which the 23 appropriation is sought to another hydrologic unit, inside or outside the state, without 24 the water being returned to the hydrologic unit from which it is to be appropriated, 25 unless the commissioner 26 (1) finds that the water to be removed or appropriated for removal is 27 surplus to needs within the hydrologic unit from which the water is to be removed or 28 appropriated for removal, including fishing, mining, timber, oil and gas, agriculture, 29 domestic water supply, and other needs as determined by the commissioner; 30 (2) finds that the application for removal or appropriation for removal 31 meets the requirements of AS 46.15.080; and

01 (3) assesses a water conservation fee under (b) of this section. 02 * Sec. 35. AS 46.15.133(a) is amended to read: 03 (a) If the commissioner proposes a sale of water or receives an application for 04 appropriation or removal, the commissioner shall prepare a notice containing the 05 location and extent of the proposed sale, appropriation, or removal, the name and 06 address of the applicant, if applicable, and other information the commissioner 07 considers pertinent. The notice shall state that, not later than [WITHIN] 15 days 08 after [OF] publication or service of notice, persons may file with the director written 09 objections [,] stating the name and address of the objector [,] and any facts tending to 10 show that rights of the objector or the public interest as described in AS 46.15.080(b) 11 would be adversely affected by the proposed sale, appropriation, or removal. 12 * Sec. 36. AS 46.15.133(b) is amended to read: 13 (b) The commissioner shall publish the notice in one issue of a newspaper of 14 general distribution in the area of the state in which the water is to be appropriated, 15 removed, or sold. The commissioner shall also have notice served personally or by 16 [CERTIFIED] mail upon an appropriator of water or applicant for or holder of a 17 permit who, according to the records of the division of lands, may be affected by the 18 proposed sale, appropriation, or removal and may serve notice upon any governmental 19 agency, political subdivision, or person; notice shall also be served upon the 20 Department of Fish and Game and the Department of Environmental Conservation. 21 An applicant for an appropriation or removal shall pay the commissioner's costs in 22 providing publication and notice under this subsection. The commissioner may require 23 as a condition of a sale of water under AS 46.15.037, that a purchaser of water 24 reimburse the department for the costs associated with providing notice of the 25 proposed sale. 26 * Sec. 37. AS 46.15.133(c) is amended to read: 27 (c) Not later than [WITHIN] 15 days of publication or service of notice, an 28 interested person may file an objection. The commissioner may hold hearings upon 29 giving due notice and shall grant, deny, or condition the proposed sale or application 30 for appropriation or removal in whole or in part within 30 days of receipt of the last 31 objection or, if the commissioner elects to hold hearings, within 180 days of receipt of

01 the last objection. Notice of the order or decision shall be served personally or mailed 02 to any person who has filed an objection. 03 * Sec. 38. AS 46.15.133(d) is amended to read: 04 (d) If no objection is filed, the commissioner may proceed to make a final 05 determination upon the application for appropriation or removal or the proposal for 06 sale. 07 * Sec. 39. AS 46.15.133(e) is amended to read: 08 (e) A person adversely affected [AGGRIEVED] by the action of the 09 commissioner or by the failure of the commissioner to grant, deny, or condition a 10 proposed sale or an application for appropriation or removal in accordance with (c) of 11 this section may appeal to the superior court. In this subsection, to be adversely 12 affected, a person must be directly affected by a decision made by the department 13 either by a physical or financial detriment to the person's interests resulting from 14 the decision. 15 * Sec. 40. AS 46.15.145(a) is amended to read: 16 (a) The state, an agency or a political subdivision of the state, or an agency of 17 the United States [OR A PERSON] may apply to the commissioner to reserve 18 sufficient water to maintain a specified instream flow or level of water at a specified 19 point on a stream or body of water, or in a specified part of a stream, throughout a year 20 or for specified times, for 21 (1) protection of fish and wildlife habitat, migration, and propagation; 22 (2) recreation and park purposes; 23 (3) navigation and transportation purposes; and 24 (4) sanitary and water quality purposes. 25 * Sec. 41. AS 46.15.145(f) is amended to read: 26 (f) The [AT LEAST ONCE EACH 10 YEARS THE] commissioner may 27 [SHALL] review a [EACH] reservation under this section to determine whether the 28 purpose described in (a) of this section for which the certificate reserving water was 29 issued and the findings described in (c) of this section still apply to the reservation. If 30 the commissioner determines that the purpose, or part or all of the findings, no longer 31 apply to the reservation, the commissioner may revoke or modify the certificate

01 reserving the water after notice, hearing when appropriate, and a written determination 02 that the revocation or modification is in the best interests of the state. 03 * Sec. 42. AS 46.15.155(a) is amended to read: 04 (a) Notwithstanding any contrary provision of this chapter, the commissioner 05 may authorize the temporary use of a significant amount of water, as determined by 06 the department by regulation, for a period of time not to exceed five consecutive years 07 in each authorization, if the water applied for has not been appropriated in 08 accordance with this chapter. The commissioner may issue one or more new 09 temporary water use authorizations for the same project. 10 * Sec. 43. AS 38.05.065(b); AS 38.50.020, 38.50.040, 38.50.080, 38.50.090, 38.50.100, 11 38.50.110, 38.50.120, 38.50.130; and AS 46.15.145(e) are repealed. 12 * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION: TRANSFER OF CERTAIN PENDING APPLICATIONS FOR 15 RESERVED WATER. Within one year after the effective date of sec. 40 of this Act, at the 16 request of an applicant whose application is pending on the effective date of this Act and who 17 is no longer authorized to reserve water under AS 46.15.145(a), as amended by sec. 40 of this 18 Act, the Department of Natural Resources shall transfer the pending application to an entity 19 identified by the applicant that is authorized to reserve water under AS 46.15.145(a), as 20 amended by sec. 40 of this Act. The entity receiving the application shall notify the 21 Department of Natural Resources within two years after receiving the application as to 22 whether the entity intends to pursue the reservation of water as requested in the application. If, 23 within two years, the Department of Natural Resources does not receive notice that the entity 24 intends to pursue the same or a smaller reservation or if the entity notifies the Department of 25 Natural Resources that the entity will not pursue the reservation in the application, the 26 Department of Natural Resources shall consider the application void and refund the 27 application fee to the original applicant. If the entity receiving the application continues to 28 pursue the reservation of water as requested in the application, the Department of Natural 29 Resources shall consider the application, and, if a certificate of reservation is issued, the 30 certificate will carry the priority date of the original application. 31 * Sec. 45. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 TRANSITION: REGULATIONS. The Department of Natural Resources may 03 immediately adopt regulations necessary to implement the changes made by this Act. The 04 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before July 1, 05 2013. 06 * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 REVISOR'S INSTRUCTIONS. The revisor of statutes is instructed to change the 09 heading of AS 44.37.011 from "Additional procedures for administrative appeals and 10 petitions for reconsideration to the commissioner of natural resources" to "Procedures for 11 administrative appeals and requests for reconsideration to the commissioner of natural 12 resources." 13 * Sec. 47. Section 45 of this Act takes effect immediately under AS 01.10.070(c). 14 * Sec. 48. Except as provided in sec. 47 of this Act, this Act takes effect July 1, 2013.