HB 183: "An Act relating to the state land disposal bank; relating to the state land disposal program; providing for a state program that sells state land to an individual eligible for a permanent fund dividend; allowing an individual to use permanent fund dividends to purchase certain land from the state; requiring the Department of Revenue to confirm the eligibility of an individual to receive a dividend for the purposes of a state land sale program; and providing for an effective date."
00 HOUSE BILL NO. 183 01 "An Act relating to the state land disposal bank; relating to the state land disposal 02 program; providing for a state program that sells state land to an individual eligible for 03 a permanent fund dividend; allowing an individual to use permanent fund dividends to 04 purchase certain land from the state; requiring the Department of Revenue to confirm 05 the eligibility of an individual to receive a dividend for the purposes of a state land sale 06 program; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 38.04.020(d) is amended to read: 09 (d) By January 15 of the first session of each legislature, the commissioner 10 shall notify the legislature that the commissioner has available a report on the status of 11 land in the land disposal bank under the following categories: 12 (1) land suitable for homestead disposal; 13 (2) land suitable for subdivision disposal;
01 (3) land suitable for agricultural, commercial, or industrial disposal; 02 [AND] 03 (4) land suitable for sale under AS 38.05.062; and 04 (5) land suitable for other purposes. 05 * Sec. 2. AS 38.04.020(e) is amended to read: 06 (e) The commissioner shall annually submit to the governor an appropriation 07 request for funding estimated to be necessary for the next two years to allow 08 (1) survey and disposal of land proposed to be made available for 09 homestead staking, with the general location of the land; 10 (2) survey and disposal of land to be offered as agricultural, 11 commercial, industrial, or other uses under AS 38.05.055 or 38.05.057, with the 12 general location of the land; 13 (3) the survey and disposal of land proposed to be offered as 14 subdivisions, with the general location of the land; 15 (4) preliminary feasibility studies, engineering design work, right-of- 16 way acquisition, and construction of access roads and capital improvements required 17 by municipal subdivision ordinance or regulation of the platting authority; 18 (5) identification of land that will be proposed for disposal under this 19 subsection in future fiscal years; 20 (6) survey and disposal of land offered under AS 38.05.062. 21 * Sec. 3. AS 38.04.022(a) is amended to read: 22 (a) The revenue from the state land disposal program, including revenue 23 from land disposed under AS 38.05.062, shall be deposited in the state land disposal 24 income fund in the state treasury. On June 30 of each fiscal year, the portion of that 25 fund that exceeds $5,000,000 shall be deposited in the state general fund. The 26 legislature may appropriate money from the state land disposal income fund for 27 expenditure by the Department of Natural Resources for necessary costs incurred by 28 the commissioner in the implementation of state land disposal programs authorized 29 under this title or for any other public purpose. 30 * Sec. 4. AS 38.05 is amended by adding a new section to read: 31 Sec. 38.05.062. Permanent fund dividend sale land. (a) The commissioner
01 shall select at least 200,000 acres of land from the land disposal bank established 02 under AS 38.04.020 for sale under this section. Land selected for sale under this 03 section must be categorized under AS 38.04.065(c)(1) and classified under 04 AS 38.05.300 as appropriate for year-round settlement near areas where public 05 services already exist or can be extended with reasonable economy or where 06 development of a viable economic base is probable. 07 (b) Notwithstanding AS 38.04.045(b), the land the commissioner selects for 08 sale under (a) of this section shall be divided by the director into platted parcels using 09 coordinates provided by Global Positioning System technology that do not exceed 10 10 acres in reasonably compact form, with boundaries conforming as nearly as 11 practicable to natural geologic and topographic features. The director shall reserve 12 easements and rights-of-way included in surveys under AS 38.04.050 - 38.04.058. The 13 director shall adopt procedures for appraisals of land subdivided under this section. A 14 buyer shall be responsible for surveying costs incurred by the department so that the 15 purchaser may obtain title to a parcel. A parcel may exceed 10 acres only if the 16 director, in a written finding, determines that the larger parcel is necessary to 17 (1) comply with local zoning ordinances; or 18 (2) permit the design of a subdivision because of topographical 19 features, soil conditions, on-site sewage disposal requirements, or water drainage or 20 supply considerations unique to the subdivision. 21 (c) A parcel of land described in (b) of this section shall be sold at its fair 22 market value as determined by the director based on an appraisal completed as 23 provided in AS 38.05.840, except that the director shall provide a 10 percent discount 24 on the fair market value of a parcel to a veteran who is eligible for a discount under 25 AS 38.05.940. 26 (d) On the third Thursday of October each year, the commissioner shall hold a 27 lottery to sell parcels of land under this section. Not later than September 1, an 28 individual qualified under (g) of this section may assign the individual's permanent 29 fund dividend to the department, or deposit with the department the amount required 30 under (i)(1) of this section, in anticipation of the lottery and future lotteries held under 31 this section. The director shall notify a person who has assigned a dividend or made a
01 cash deposit under this subsection that the person may apply to purchase land in the 02 lottery. The director shall accept lottery applications to purchase particular parcels 03 received by the third Thursday in October. Notice of the application period and the 04 date of the lottery must comply with AS 38.05.945. 05 (e) If the department receives only one application for a certain parcel in a 06 lottery under this section, the director shall offer the parcel to that applicant if the 07 applicant qualifies under (g) of this section. If more than one application is received 08 for a parcel, the director shall select a qualified buyer by lottery. If the director does 09 not receive an application for a parcel of state land or if a buyer fails to sign a contract 10 of sale, the parcel shall be reoffered and sold to the first qualified buyer to apply for 11 the parcel. 12 (f) The department shall employ a weighted lottery for certain applications 13 made under this section. The department shall provide all first-time lottery applicants 14 one standard chance to be eligible to purchase property in a lottery. The department 15 shall provide an applicant who assigned money to the department under (d) of this 16 section, has unsuccessfully participated in a previous annual lottery or lotteries under 17 this section, and has not applied for any refunds under (j) of this section an additional 18 chance for each of the previous annual lotteries in which the applicant participated but 19 was not awarded a parcel. An application may list up to five alternative parcels of 20 land. As soon as an application is drawn in the weighted lottery, the department shall 21 consider the award of each of the parcels in the order requested in the application. If 22 the applicant whose application is drawn has complied with (i)(1) of this section, the 23 department shall award the applicant the first available parcel on the applicant's list, 24 and any other listed parcels may be made available to other applicants. If none of the 25 applicant's listed parcels are available, the next application drawn shall be considered. 26 If a parcel remains available after the department has considered all applications, or 27 later becomes available because an applicant fails to complete the sale, the department 28 shall make the parcel available for sale over the counter and in future lotteries under 29 this section. 30 (g) To qualify as a buyer under this section, an applicant shall be 18 years of 31 age or older and be eligible for a permanent fund dividend under AS 43.23.005. In this
01 subsection, an applicant is eligible for a permanent fund dividend if the applicant 02 (1) received a permanent fund dividend for that year; 03 (2) applied for a permanent fund dividend for that year, and the 04 Department of Revenue has determined that the individual is eligible to receive a 05 permanent fund dividend for that year; or 06 (3) has a pending application for a permanent fund dividend for that 07 year and received a permanent fund dividend for the immediately preceding year. 08 (h) The commissioner shall confirm with the Department of Revenue an 09 individual's 10 (1) receipt of a permanent fund dividend; or 11 (2) eligibility to receive a permanent fund dividend. 12 (i) The department shall adopt regulations that establish a procedure for 13 purchase of state land under this section that is consistent with the following: 14 (1) a bidder or offeror in an annual lottery or sale held under this 15 section shall provide to the department a minimum deposit or assignment of $800; if a 16 bidder or offeror has assigned a dividend in an amount less than $800 to the 17 department, the bidder or offeror shall deposit the amount necessary for the 18 individual's deposit to equal $800; 19 (2) as soon as possible after a sale is made, the director shall issue a 20 contract of sale that describes the land purchased, the price, the amount deposited, and 21 any balance due to the state; 22 (3) to the extent practicable, the department shall use the contracting 23 procedures under AS 38.05.065 for a contract issued under this section; 24 (4) a buyer may assign the buyer's future permanent fund dividends to 25 satisfy any balance due to the state, but assignment does not release the buyer from the 26 obligation to pay the remainder of the purchase price if the buyer becomes ineligible 27 for a permanent fund dividend or has claims or assignments on the buyer's dividend 28 under AS 43.23.065 - 43.23.068, 43.23.072, or 43.23.085; 29 (5) a buyer may pay the remainder of the purchase price at any time 30 after the sale, but the buyer shall pay the entire balance of the purchase price by 31 assignment of dividends or in installment payments within a period of 20 years;
01 (6) in a year in which the amount of the permanent fund dividend 02 under AS 43.23.025 is less than the sum of $800 and the administrative fee assessed 03 under AS 43.23.071, a buyer who has assigned the buyer's dividend to the department 04 shall pay the department the difference between $800 and the dividend amount; 05 (7) the department may not charge a buyer interest on the balance due 06 to the state on a parcel purchased under this section. 07 (j) The department shall adopt a procedure for an individual to apply for a 08 refund of money that the individual deposited with or assigned to the department 09 under AS 43.23.061 less 10 (1) any administrative fees assessed under AS 43.23.071; and 11 (2) a withdrawal fee of $100. 12 * Sec. 5. AS 38.05.067(d) is amended to read: 13 (d) This section does not apply to the sale of state land under AS 38.05.057, 14 38.05.062, AS 38.08, or AS 38.09. 15 * Sec. 6. AS 38.05.840(a) is amended to read: 16 (a) Land may not be sold or leased, or a renewal lease issued, except in the 17 case of an oil or gas or mineral lease, unless it has been appraised within two years 18 before the date fixed for the sale or lease. When land is offered at public sale but is not 19 sold and is available at private sale, a reappraisal is not required unless the director 20 considers that a change in value of the land may have occurred. A grazing lease may 21 be granted to a lessee of federal grazing land without prior appraisal if the federal 22 lease was cancelled to allow the state to select the land under lease. Land may not be 23 sold or leased for less than the approved, appraised market value, except as provided 24 in AS 38.05.055, 38.05.057, 38.05.062, 38.05.075 - 38.05.085, 38.05.097, 38.05.810, 25 and 38.05.820. 26 * Sec. 7. AS 38.05.940(a) is amended to read: 27 (a) An eligible veteran is entitled to a discount of 28 (1) 10 percent on the purchase price of a parcel of land sold under 29 AS 38.05.062; or 30 (2) except for land sold under AS 38.05.062, 25 percent on the 31 purchase price of state land sold under this title and classified under AS 38.05.005 -
01 38.05.270 for a use other than commercial or industrial use. 02 * Sec. 8. AS 43.23.055 is amended to read: 03 Sec. 43.23.055. Duties of the department. The department shall 04 (1) annually pay permanent fund dividends from the dividend fund; 05 (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 06 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 07 and time limits for claiming a permanent fund dividend; the department shall 08 determine the number of eligible applicants by October 1 of the year for which the 09 dividend is declared and pay the dividends by December 31 of that year; 10 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 11 that establish procedures and time limits for an individual upon emancipation or upon 12 reaching majority to apply for permanent fund dividends not received during minority 13 because the parent, guardian, or other authorized representative did not apply on 14 behalf of the individual; 15 (4) assist residents of the state, particularly in rural areas, who because 16 of language, disability, or inaccessibility to public transportation need assistance to 17 establish eligibility and to apply for permanent fund dividends; 18 (5) use a list of individuals ineligible for a dividend under 19 AS 43.23.005(d) provided annually by the Department of Corrections and the 20 Department of Public Safety to determine the number and identity of those 21 individuals; 22 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 23 (7) adopt regulations that establish procedures for the parent, guardian, 24 or other authorized representative of a disabled individual to apply for prior year 25 permanent fund dividends not received by the disabled individual because no 26 application was submitted on behalf of the individual; 27 (8) adopt regulations that establish procedures for an individual to 28 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 29 collected within two years after the date of its issuance; however, the department may 30 not establish a time limit within which an application to have a disbursement reissued 31 must be filed;
01 (9) provide any information, upon request, contained in permanent 02 fund dividend records to the child support services agency created in AS 25.27.010, or 03 the child support enforcement agency of another state, for child support purposes 04 authorized under law; if the information is contained in an electronic data base, the 05 department shall provide the requesting agency with either 06 (A) access to the data base; or 07 (B) a copy of the information in the data base and a statement 08 certifying its contents; 09 (10) establish a fraud investigation unit for the purpose of assisting the 10 (A) Department of Law in the prosecution of individuals who 11 apply for or obtain a permanent fund dividend in violation of a provision in 12 AS 11, by detecting and investigating those crimes; and 13 (B) commissioner to detect and investigate the claiming or 14 paying of permanent fund dividends that should not have been claimed by or 15 paid to an individual and to impose the penalties and enforcement provisions 16 under AS 43.23.035; 17 (11) upon request of the commissioner of natural resources, 18 confirm under AS 38.05.062(h) that an individual has received, or is eligible to 19 receive, a permanent fund dividend. 20 * Sec. 9. AS 43.23 is amended by adding a new section to read: 21 Sec. 43.23.061. Assignment of dividend to purchase state land. 22 Notwithstanding AS 43.23.069, the department shall prepare the electronic permanent 23 fund dividend application to allow an applicant who files electronically to direct that 24 all or part of the applicant's dividend payment, less an administrative fee assessed 25 under AS 43.23.071, be assigned to the Department of Natural Resources to be used 26 toward the purchase of state land by the applicant under AS 38.05.062. The electronic 27 dividend application form must include notice that 28 (1) an administrative fee will be deducted from the applicant's 29 dividend payment if the applicant directs that the person's dividend payment be used 30 toward the purchase of state land under AS 38.05.062; and 31 (2) if the applicant directs that the person's dividend payment be used
01 toward the purchase of state land under AS 38.05.062 and requests a refund of money 02 assigned under this section, an administrative fee of $100 will also be deducted from 03 the refund. 04 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 FIRST LOTTERY SALE OF PERMANENT FUND DIVIDEND LAND. 07 Notwithstanding AS 38.05.062(d), added by sec. 4 of this Act, the first lottery held by the 08 Department of Natural Resources to sell parcels of land under AS 38.05.062, added by sec. 4 09 of this Act, shall be conducted on the third Thursday in October of 2018. 10 * Sec. 11. This Act takes effect immediately under AS 01.10.070(c).