HB 258: "An Act relating to state lands; relating to the authority of the Department of Natural Resources over state owned lands; relating to the disposal of state land; relating to the leasing and sale of state land for commercial or industrial development; repealing establishment of recreation rivers and recreation river corridors; and providing for an effective date."
00 HOUSE BILL NO. 258 01 "An Act relating to state lands; relating to the authority of the Department of Natural 02 Resources over state owned lands; relating to the disposal of state land; relating to the 03 leasing and sale of state land for commercial or industrial development; repealing 04 establishment of recreation rivers and recreation river corridors; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 19.30.080 is amended to read: 08 Sec. 19.30.080. Construction standards and maintenance. An access road 09 constructed under AS 19.30.060 - 19.30.100 may [SHALL] be of low standard, not 10 necessarily suitable for all weather use and is exempt from municipal or local 11 platting authority or related land use regulation. The state is not required 12 [UNDER OBLIGATION] to maintain an access road constructed under AS 19.30.060 13 - 19.30.100. If an access road is constructed outside a municipality that has the power
01 of land use regulation [ZONING ORDINANCES], the right-of-way width for the 02 road shall be determined by the division of lands and the Department of 03 Transportation and Public Facilities. If an access road is constructed within the 04 boundaries of a municipality that has the power of land use regulation [ZONING 05 ORDINANCES], the right-of-way width shall be decided by the division of lands 06 [CONFORM TO THE SUBDIVISION CONTROL ORDINANCES OF THE 07 MUNICIPALITY]. Contracts for the work on an access road are governed by 08 AS 36.30 (State Procurement Code). 09 * Sec. 2. AS 29.03.030 is repealed and reenacted to read: 10 Sec. 29.03.030. Platting authority. The Department of Natural Resources is 11 the platting authority for the unorganized borough and as otherwise provided by law. 12 * Sec. 3. AS 29.35.180 is amended to read: 13 Sec. 29.35.180. Land use regulation. (a) Except as provided in 14 AS 40.15.070, a [A] first or second class borough shall provide for planning, platting, 15 and land use regulation in accordance with AS 29.40. 16 (b) Except as provided in AS 40.15.070, a [A] home rule borough shall 17 provide for planning, platting, and land use regulation. 18 * Sec. 4. AS 29.35.180 is amended by adding a new subsection to read: 19 (c) The Department of Natural Resources is the platting authority for state 20 lands as provided in AS 40.15.070. When the Department of Natural Resources 21 exercises the department's platting authority for state lands located within a borough 22 that has the power of land use regulation and is exercising the borough's platting 23 authority, the Department of Natural Resources is exempt from borough platting 24 authority and related land use regulation. 25 * Sec. 5. AS 29.40.010 is amended to read: 26 Sec. 29.40.010. Planning, platting, and land use regulation. (a) Except as 27 provided in AS 40.15.070, a [A] first or second class borough shall provide for 28 planning, platting, and land use regulation on an areawide basis. 29 (b) Subject to (c) of this section, if [IF] a city in a borough consents by 30 ordinance, the assembly may by ordinance delegate any of its powers and duties under 31 this chapter to the city. The assembly may by ordinance, without first obtaining the
01 consent of the city, revoke any power or duty delegated under this section. 02 * Sec. 6. AS 29.40.010 is amended by adding a new subsection to read: 03 (c) The Department of Natural Resources is the platting authority for state 04 lands as provided in AS 40.15.070. When the Department of Natural Resources 05 exercises the department's platting authority for state lands located within a borough 06 that has the power of land use regulation and is exercising the borough's platting 07 authority, the Department of Natural Resources is exempt from borough platting 08 authority and related land use regulation. Where a Department of Natural Resources' 09 plat or subdivision of state land does not comply with borough planning, platting, or 10 land use regulation, the state is deemed to have received for the affected land an 11 approved variance from that planning, platting, or land use regulation. Any variance 12 allowed under this section is appurtenant to and runs with the land. 13 * Sec. 7. AS 29.40.040(a) is amended to read: 14 (a) Subject to (c) of this section, in [IN] accordance with a comprehensive 15 plan adopted under AS 29.40.030 and in order to implement the plan, the assembly by 16 ordinance shall adopt or amend provisions governing the use and occupancy of land 17 that may include, but are not limited to, 18 (1) zoning regulations restricting the use of land and improvements by 19 geographic districts; 20 (2) land use permit requirements designed to encourage or discourage 21 specified uses and construction of specified structures, or to minimize unfavorable 22 effects of uses and the construction of structures; 23 (3) measures to further the goals and objectives of the comprehensive 24 plan. 25 * Sec. 8. AS 29.40.040 is amended by adding a new subsection to read: 26 (c) The Department of Natural Resources is the platting authority for state 27 lands as provided in AS 40.15.070. When the Department of Natural Resources 28 exercises the department's platting authority for state lands located within a 29 municipality that has the power of land use regulation and is exercising the 30 municipality's platting authority, the Department of Natural Resources is exempt from 31 municipal platting authority and related land use regulation. Where a Department of
01 Natural Resources' plat or subdivision of state land does not comply with a municipal 02 planning, platting, or land use regulation, the state is deemed to have received for the 03 affected land an approved variance from that planning, platting, or land use regulation. 04 Any variance allowed under this section is appurtenant to and runs with the land. 05 * Sec. 9. AS 29.40.190(a) is amended to read: 06 (a) Except as provided in (c) of this section, the [THE] municipality or an 07 aggrieved person may institute a civil action against a person who violates a provision 08 of this chapter, a subdivision regulation adopted under this chapter, or a term, 09 condition, or limitation imposed by a platting authority. In addition to other relief, a 10 civil penalty not to exceed $1,000 may be imposed for each violation. An action to 11 enjoin a violation may be brought notwithstanding the availability of any other 12 remedy. Upon application for injunctive relief and a finding of a violation or 13 threatened violation, the superior court shall grant the injunction. 14 * Sec. 10. AS 29.40.190 is amended by adding a new subsection to read: 15 (c) A civil action may not be brought against or penalty imposed under (a) of 16 this section for a violation of municipal planning, platting, or land use regulation as to 17 a Department of Natural Resources' plat or subdivision of state lands where the 18 department is exercising its platting authority under AS 40.15.070 and where a 19 variance has been approved under AS 29.40.010(c) or 29.40.040(c). Nothing in this 20 section exempts the purchaser or owner of Department of Natural Resources' managed 21 lands from compliance with an environmental requirement under AS 46.03 - AS 46.14 22 or other state law from liability for noncompliance with that requirement. 23 * Sec. 11. AS 38.04.020(e) is amended to read: 24 (e) The commissioner shall annually submit to the governor an appropriation 25 request for funding estimated to be necessary for the next two years to allow 26 (1) survey and disposal of land proposed to be made available for 27 homestead staking, with the general location of the land; 28 (2) survey and disposal of land to be offered as agricultural, 29 commercial, industrial, or other uses under AS 38.05.055 or 38.05.057, with the 30 general location of the land; 31 (3) the survey and disposal of land proposed to be offered as
01 subdivisions, with the general location of the land; 02 (4) preliminary feasibility studies, engineering design work, right-of- 03 way acquisition, and construction of access roads and capital improvements required 04 by the department [MUNICIPAL SUBDIVISION ORDINANCE OR 05 REGULATION OF THE PLATTING AUTHORITY]; 06 (5) identification of land that will be proposed for disposal under this 07 subsection in future fiscal years. 08 * Sec. 12. AS 38.04.022 is amended to read: 09 Sec. 38.04.022. State land disposal income fund. (a) The revenue from the 10 state land disposal program shall be deposited in the state land disposal income fund in 11 the state treasury. On June 30 of each fiscal year, the portion of that fund that exceeds 12 $7,500,000 [$5,000,000] shall be deposited in the state general fund. The legislature 13 may appropriate money from the state land disposal income fund for expenditure by 14 the Department of Natural Resources for necessary costs incurred by the 15 commissioner in the implementation of state land disposal programs authorized under 16 this title or for any other public purpose. 17 (b) Within five days after the legislature convenes in regular session, the 18 Department of Natural Resources shall notify the legislature that a report reflecting all 19 money deposited in the fund established under (a) of this section during the prior fiscal 20 year is available. The report may include a recommendation to amend the deposit 21 limit established in (a) of this section. 22 * Sec. 13. AS 38.04.045(b) is amended to read: 23 (b) Before the issuance of a long-term lease under AS 38.05.070 or of a patent 24 for state land, an official cadastral survey shall be accomplished, unless a comparable, 25 approved survey exists that has been conducted by the federal Bureau of Land 26 Management. Before land may be offered under AS 38.08 or AS 38.09, or before land 27 may be offered under AS 38.05.055 or 38.05.057, except land that is classified for 28 agricultural uses, an official rectangular survey grid shall be established. The 29 rectangular survey section corner positions shall be monumented and shown on a 30 cadastral survey plat approved by the state. For those areas where the state may wish 31 to convey surface estate outside of an official rectangular survey grid, the
01 commissioner may waive monumentation of individual section corner positions and 02 substitute an official control survey with control points being monumented and shown 03 on control survey plats approved by the state. The commissioner may not issue more 04 than one conveyance for each section within a township outside of an official 05 rectangular survey grid. Land to be conveyed may not be located more than two miles 06 from an official survey control monument except that the commissioner may waive 07 this requirement on a determination that a single purpose use does not justify the 08 requirement if the existing status of the land is known with reasonable certainty. The 09 lots and tracts in state subdivisions shall be monumented and the cadastral survey and 10 plats for the subdivision shall be approved by the state. [WHERE LAND IS 11 LOCATED WITHIN A MUNICIPALITY WITH PLANNING, PLATTING, AND 12 ZONING POWERS, PLATS FOR STATE SUBDIVISIONS SHALL COMPLY 13 WITH LOCAL ORDINANCES AND REGULATIONS IN THE SAME MANNER 14 AND TO THE SAME EXTENT AS PLATS FOR SUBDIVISIONS BY OTHER 15 LANDOWNERS. STATE SUBDIVISIONS SHALL BE FILED AND RECORDED 16 IN THE DISTRICT RECORDER'S OFFICE. THE REQUIREMENTS OF THIS 17 SECTION DO NOT APPLY TO LAND MADE AVAILABLE FOR MATERIAL 18 SALES, FOR SHORT-TERM LEASES, FOR PARCELS ADJOINING A 19 SURVEYED RIGHT-OF-WAY, OR FOR LAND THAT HAS BEEN OPEN TO 20 RANDOM STAKING UNDER THE HOMESTEAD PROGRAM IN THE PAST; 21 HOWEVER, FOR SHORT-TERM LEASES, THE LESSEE SHALL COMPLY 22 WITH LOCAL SUBDIVISION ORDINANCES UNLESS WAIVED BY THE 23 MUNICIPALITY UNDER PROCEDURES SPECIFIED BY ORDINANCE.] In this 24 subsection, "a single purpose use" includes a communication site, an aid to navigation, 25 and a park site. 26 * Sec. 14. AS 38.04.045 is amended by adding new subsections to read: 27 (c) Where state land managed by the Department of Natural Resources is 28 located within a municipality with planning, platting, and zoning powers, plats or 29 subdivisions of that state land under the platting authority of the Department of 30 Natural Resources under AS 40.15.070 shall comply with local platting and related 31 land use ordinances and regulations to the maximum extent the commissioner of
01 natural resources determines to be consistent with the state's interests. If the 02 commissioner of natural resources determines that compliance with a municipality's 03 platting or related land use ordinance is not consistent with the state's interests, a plat 04 or subdivision shall comply with state platting requirements. 05 (d) Except as provided in (c) of this section, state land located within a 06 municipality with planning, platting, and zoning powers and that is exercising the 07 municipality's platting authority and land use regulation, state subdivisions shall 08 comply with local ordinances and regulations in the same manner and to the same 09 extent as subdivisions by other landowners within that municipality. 10 (e) All state subdivisions must be filed and recorded in the district recorder's 11 office. 12 (f) The requirements of this section do not apply to land made available for 13 material sales, short-term leases, parcels adjoining a surveyed right-of-way, or land 14 that has been open to random staking under the homestead program in the past. Except 15 for state lands under the platting authority of the Department of Natural Resources as 16 provided in AS 40.15.070, for short-term leases, the lessee shall comply with local 17 subdivision ordinances unless waived by the municipality under procedures specified 18 by ordinance. 19 * Sec. 15. AS 38.04.050 is amended to read: 20 Sec. 38.04.050. Access to private use areas. Wherever state land is surveyed 21 for purposes of private use, legal rights-of-way and easements shall be reserved for 22 access and, where appropriate, for utility services to each parcel of land. A right-of- 23 way or easement shall be located to assure adequate and feasible access for the 24 purposes for which the right-of-way or easement was intended. Where necessary and 25 appropriate for the use intended [OR WHERE REQUIRED BY LOCAL 26 SUBDIVISION ORDINANCES], the director may [SHALL] arrange for the 27 development of surface access as part of the state land disposal [AVAILABILITY] 28 program. The direct cost of local access development shall be borne by the recipient of 29 the land unless otherwise provided by state statutes or regulations. 30 * Sec. 16. AS 38.05.035(b) is amended to read: 31 (b) The director may
01 (1) delegate the administrative duties, functions, or powers imposed 02 upon the director to a responsible employee in the division; 03 (2) grant preference rights for the lease or purchase of state land 04 without competitive bid in order to correct errors or omissions of a state or federal 05 administrative agency when inequitable detriment would otherwise result to a diligent 06 claimant or applicant due to situations over which the claimant or applicant had no 07 control; the exercise of this discretionary power operates only to divest the state of its 08 title to or interests in land and may be exercised only 09 (A) with the express approval of the commissioner; and 10 (B) if the application for the preference right is filed with the 11 director within three years from 12 (i) the occurrence of the error or omission; 13 (ii) the date of acquisition by the state of the land; or 14 (iii) the date of a court decision or settlement nullifying 15 a disposal of state land; 16 (3) grant a preference right to a claimant who shows bona fide 17 improvement of state land or of federal land subsequently acquired by the state and 18 who has in good faith sought to obtain title to the land but who, through error or 19 omission of others occurring within the three years before (A) the application for the 20 preference right, (B) the date of acquisition by the state of the land, or (C) the date of a 21 court decision or settlement nullifying a disposal of state land, has been denied title to 22 it; upon a showing satisfactory to the commissioner, the claimant may lease or 23 purchase the land at the price set on the date of original entry on the land or, if a price 24 was not set at that time at a price determined by the director to fairly represent the 25 value of unimproved land at the time the claim was established, but in no event less 26 than the cost of administration including survey; the error or omission of a predecessor 27 in interest or an agent, administrator, or executor that has clearly prejudiced the 28 claimant may be the basis for granting a preference right; 29 (4) sell land by lottery for less than the appraised value when, in the 30 judgment of the director, past scarcity of land suitable for private ownership in any 31 particular area has resulted in unrealistic land values;
01 (5) when the director determines it is in the best interest of the state 02 and will avoid injustice to a person or the heirs or devisees of a person, dispose of 03 land, by direct negotiation to that person who presently uses and who used and made 04 improvements to that land before January 3, 1959, or to the heirs or devisees of the 05 person; the amount paid for the land shall be its fair market value on the date that the 06 person first entered the land, as determined by the director; a parcel of land disposed 07 of under this paragraph shall be of a size consistent with the person's prior use, but 08 may not exceed five acres; 09 (6) after consulting with the Board of Agriculture and Conservation 10 (AS 03.09.010), dispose of an interest in land limited to use for agricultural purposes 11 by lottery; 12 (7) convey to an adjoining landowner for its fair market value a 13 remnant of land that the director considers unmanageable, [OR] a parcel of land 14 created by a highway right-of-way alignment or realignment, or a parcel created by the 15 vacation of a state-owned right-of-way if 16 (A) the director determines that it is in the best interests of the 17 state; and 18 (B) the parcel 19 (i) does not exceed the minimum lot size established 20 by either regulation or, where the parcel is located within a 21 municipality that has exercised its platting authority, a municipal 22 [UNDER AN APPLICABLE] zoning ordinance, for the area 23 [CODE]; or 24 (ii) is smaller than 20 acres and is completely enclosed 25 by property owned by the adjacent landowner; [AND 26 (C) THE DIRECTOR AND THE PLATTING AUTHORITY 27 HAVING LAND USE PLANNING JURISDICTION AGREE THAT 28 CONVEYANCE OF THE PARCEL TO THE ADJOINING LANDOWNER 29 WILL RESULT IN BOUNDARIES THAT ARE CONVENIENT FOR THE 30 USE OF THE LAND BY THE LANDOWNER AND COMPATIBLE WITH 31 MUNICIPAL LAND USE PLANS;]
01 (8) for good cause extend for up to 90 days the time for rental or 02 installment payments by a lessee or purchaser of state land under this chapter if 03 reasonable penalties and interest set by the director are paid; 04 (9) quitclaim land or an interest in land to the federal government on a 05 determination that the land or the interest in land was wrongfully or erroneously 06 conveyed by the federal government to the state; 07 (10) negotiate the sale or lease of state land at fair market value to a 08 person who acquired by contract, purchase, or lease rights to improvements on the 09 land from another state agency or who leased the land from another state agency. 10 * Sec. 17. AS 38.05.055 is amended to read: 11 Sec. 38.05.055. Auction sale or sealed bid procedures. (a) Unless another 12 method of sale is allowed [REQUIRED] under this chapter, AS 38.08, or AS 38.09, 13 the sale of state land shall be made at public auction or by sealed bid, at the discretion 14 of the director, to the highest qualified bidder as determined by the director. The 15 director may accept bids and sell state land under this section at not less than 70 16 percent of the appraised fair market value of the land. 17 (b) To qualify to participate under this section in a public auction or sale by 18 sealed bid of state land that is other than commercial, industrial, or agricultural land, a 19 bidder shall have been a resident of the state for at least one year immediately 20 preceding the date of the sale and submit proof of that fact, as the commissioner 21 requires by regulation. A bidder may be represented by an attorney or agent at a public 22 auction. 23 (c) An aggrieved bidder may appeal to the commissioner within five days after 24 the sale for a review of the director's determination [. THE SALE SHALL BE 25 CONDUCTED BY THE DIRECTOR, AND, AT THE TIME OF SALE, THE 26 SUCCESSFUL BIDDER SHALL DEPOSIT AN AMOUNT EQUAL TO FIVE 27 PERCENT OF THE PURCHASE PRICE. THE DIRECTOR SHALL 28 IMMEDIATELY ISSUE A RECEIPT CONTAINING A DESCRIPTION OF THE 29 LAND OR PROPERTY PURCHASED, THE PRICE BID, AND THE AMOUNT 30 DEPOSITED. THE RECEIPT SHALL BE ACKNOWLEDGED IN WRITING BY 31 THE BIDDER].
01 * Sec. 18. AS 38.05.055 is amended by adding a new subsection to read: 02 (d) The sale shall be conducted by the director. The successful bidder at a 03 public action or all bidders at the time they submit their sealed bid, shall provide an 04 earnest money deposit in the amount of at least five percent of the bid amount. Not 05 later than 10 days after the public auction or sale by sealed bid, the director shall issue 06 a receipt to the successful bidder. The director's receipt shall contain a description of 07 the land or property purchased, the bid price, and the amount deposited. If the bidder 08 fails to enter into a contract to purchase or defaults in the payment of the bid amount, 09 five percent of the bid amount shall be forfeited to the state. 10 * Sec. 19. AS 38.05.065(a) is amended to read: 11 (a) A [THE] contract of sale for land, an interest in land, or property sold 12 under this chapter may be issued for [AT PUBLIC AUCTION OR BY SEALED 13 BID UNDER AS 38.05.055 SHALL REQUIRE] the remainder of the purchase price 14 to be paid in monthly, quarterly, or annual installments over a period of not more than 15 30  years, with interest at the rate provided in (i) of this section. Installment 16 payments plus interest shall be set on the level-payment basis. 17 * Sec. 20. AS 38.05.065(b) is amended to read: 18 (b) The contract of sale for land sold under AS 38.05.057 or under former 19 AS 38.05.078 shall require the remainder of the purchase price to be paid in monthly, 20 quarterly, or annual installments over a period of not more than 30  years. 21 Installment payments plus interest shall be set on the level-payment basis. The interest 22 rate to be charged on installment payments is the rate provided in (i) of this section. 23 * Sec. 21. AS 38.05.065(c) is amended to read: 24 (c) The director shall, for contracts under (a), (b), or (h) of this section, set out 25 in the contract for each sale the period for the payment of installments and the total 26 purchase price plus interest. The director, with the consent of the commissioner, may 27 also include in contracts under this section conditions, limitations, and terms 28 considered necessary and proper to protect the interest of the state. Violations of any 29 provision of this chapter or the terms of the contract of sale subject the purchaser to 30 appropriate administrative and legal action, including but not limited to specific 31 performance, termination [FORECLOSURE], ejectment, or other legal remedies in
01 accordance with applicable state law. 02 * Sec. 22. AS 38.05.065(d) is amended to read: 03 (d) If a contract for a sale of state land has been breached, the director may 04 issue a decision to [FORECLOSE AND] terminate the contract at any time 31 days 05 after delivering by certified mail a written notice of the breach to the address of record 06 of the purchaser. A breach caused by the failure to make payments required by the 07 contract may be cured within 30 days after the notice of the breach has been received 08 by the purchaser by payment of the sum in default together with the larger of a fee of 09 $50 or five percent of the sum in default. If there are material facts in dispute between 10 the state and the purchaser, the purchaser may submit a written request for a public 11 hearing for the review of the facts within 30 days after the notice of the breach has 12 been received. 13 * Sec. 23. AS 38.05.065(e) is amended to read: 14 (e) On a determination that there has been a breach of the contract based on 15 the administrative record and the evidence presented at a hearing, the director shall 16 issue a decision [FORECLOSING THE INTEREST OF THE PURCHASER AND] 17 terminating the contract. The obligation to make payments under the contract 18 continues through the date of the director's decision to terminate the contract 19 [FORECLOSE BY THE DIRECTOR]. 20 * Sec. 24. AS 38.05.065(f) is amended to read: 21 (f) The director shall deliver the decision to [FORECLOSE AND] terminate 22 the contract personally to the purchaser or send it certified mail, return receipt 23 requested, to the address of record of the purchaser. If the breach is a failure to make 24 payments required by the contract, the decision shall include a notice to the purchaser 25 that if within 30 days the purchaser pays to the state the full amount of the unpaid 26 contract price, including all accrued interest, and any fees assessed under (d) of this 27 section, the department shall issue to the purchaser a deed to the land. If full payment 28 is not made within 30 days or the breach is for other than failure to make payment, the 29 decision [FORECLOSES AND] terminates all legal and equitable rights the purchaser 30 has in the land. 31 * Sec. 25. AS 38.05.065 is amended by adding a new subsection to read:
01 (j) If a sale of state land is to be made by means other than a means prescribed 02 by AS 38.05.055, the director shall require a person applying to purchase land, an 03 interest in land, or property, to submit an earnest money deposit of at least five percent 04 of the purchase price with the application for a contract to purchase land, an interest in 05 land, or property. This earnest money deposit shall be applied towards the purchase 06 price. If the applicant fails to enter into a contract to purchase or defaults in the 07 payment of the purchase price, five percent of the purchase price shall be forfeited to 08 the state. 09 * Sec. 26. AS 38.05 is amended by adding a new section to read: 10 Sec. 38.05.086. Leases and sales of land for commercial development. (a) 11 For purposes of stimulating economic development in the state, the commissioner may 12 lease and sell lands that are identified in this section as appropriate for commercial 13 development. As provided in this section, if the lease is in good standing and the 14 development requirements of the lease have been satisfied, the lessee may purchase 15 the leased land. 16 (b) The department may identify lands appropriate for commercial 17 development from any or all of the following categories: 18 (1) state land identified or nominated as Qualified Opportunity Zones 19 under 26 U.S.C. 45D, 26 U.S.C. 1400Z-1 and 1400Z-2, and 26 C.F.R. 601.601; 20 (2) state land nominated by the public; public nominations under this 21 paragraph are limited to one for each person and may not exceed 640 acres in size; 22 (3) any other state land the department deems appropriate for 23 commercial development. 24 (c) If land identified in (b) of this section is classified in a manner that does 25 not allow disposal of the land, the commissioner may classify or reclassify the land 26 through a classification order under AS 38.05.300 and a written decision by the 27 director under AS 38.05.035(e). 28 (d) The commissioner may, from time to time, open certain areas of lands 29 identified in (b) of this section for leasing and sale, and issue a request for proposals to 30 develop land within the areas. Before proposals may be requested, the commissioner 31 shall issue a decision under AS 38.05.035(e) that the lease and sale of the land within
01 the areas opened is in the state's best interest. The commissioner's request for 02 proposals must be in writing. 03 (e) A person may apply to develop land within the areas by responding to the 04 commissioner's request for proposals and paying an application fee as provided by 05 regulation. In addition to any information requested by the commissioner in the 06 request for proposals, a response to the request for proposals must include 07 (1) the specific type of commercial development proposed; and 08 (2) the specific location and description, including amount, of land 09 requested for the proposed commercial development; the amount of land requested in 10 a response to request for proposals may not exceed 20 acres and must be reasonably 11 compact. 12 (f) The commissioner's request for proposals must be posted on the Alaska 13 Online Public Notice System (AS 44.62.175) for at least 30 consecutive days, and 14 must be sent, by mail or email, to anyone that received notice of the decision issued 15 under (d) of this section. 16 (g) Responses to the commissioner's request for proposals must be in writing 17 and submitted to the commissioner by the deadline set by the commissioner. The 18 commissioner may reject any proposal that does not meet the requirements of this 19 section or that the commissioner determines, in writing, is not in the best interests of 20 the state. The commissioner's decision to reject a proposal is subject to appeal or a 21 petition for reconsideration under AS 44.37.011. 22 (h) If the commissioner determines that only one suitable proposal for a 23 specific area of land exists, the commissioner may issue a lease to that person as 24 provided in this section. If the commissioner determines that there are two or more 25 suitable proposals for the same land or overlapping land, the commissioner shall 26 award the lease to the highest bidder as determined by the commissioner at a public 27 auction or by sealed bid. Participation in the public auction or sealed bid under this 28 subsection is limited to the persons who submitted proposals for the same land or 29 overlapping land. 30 (i) The annual fee for a commercial land lease under this section shall be set 31 by the commissioner so as to ensure that the state receives a fair return for the use
01 granted by the lease for the term of the lease and shall be a form of compensation set 02 out in AS 38.05.073(m). A lease must be for a term of not more than five years. A 03 lease in good standing may be renewed for one additional five-year period. The lease 04 may not be assigned by the original lessee during the term of the lease or any renewal. 05 (j) A commercial land lease under this section may be terminated by the 06 commissioner before the expiration of the term of the lease for a breach of the terms of 07 the lease, including a failure to use the land in a manner required by the terms of the 08 lease. After expiration of the lease term or termination of the lease before it expires, 09 improvements or personal property on the land subject to the lease shall be managed 10 in the manner required by AS 38.05.090. 11 (k) At any time during the lease, a lessee in good standing may apply to 12 purchase all or a portion of the land leased under this section for its fair market value 13 at the time of purchase, if the lessee 14 (1) has completed the development requirements of the land leased 15 consistent with the proposal submitted under (g) of this section and as provided by the 16 terms of the lease; 17 (2) has appraised and surveyed the site in a manner acceptable to the 18 department, at the lessee's expense; and 19 (3) pays an application fee as provided by regulation. 20 (l) A lessee who purchases the land under (k) of this section may apply the 21 amount of the lease payments made under the lease to the purchase price of the land. 22 Other amounts paid, including fees, penalties, survey costs, and appraisal costs, may 23 not be applied to the purchase price of the land. 24 (m) If an application to purchase land is denied, the lessee may continue to 25 hold the lease according to the terms of the lease, and may apply again to purchase the 26 land. Any subsequent application must address the reasons the previous application 27 was denied. 28 (n) The commissioner shall adopt regulations under AS 44.62 (Administrative 29 Procedure Act) to implement this section. Regulations adopted under this subsection 30 shall, at a minimum, address 31 (1) the application procedures for a commercial land lease or sale
01 under this section; 02 (2) the auction or sealed bid process, if necessary, under (h) of this 03 section; 04 (3) the terms and conditions that may be included in a commercial land 05 lease under this section; 06 (4) resolving any and all competitive bidding disputes and issues; 07 (5) the procedure for requesting proposals; 08 (6) the criteria for assessing proposals; and 09 (7) any administrative fees. 10 * Sec. 27. AS 38.05.965 is amended by adding a new paragraph to read: 11 (29) "public auction" means a public oral outcry auction or a public 12 online auction. 13 * Sec. 28. AS 38.09.080(b) is amended to read: 14 (b) The disposal of homestead entry land is subject to state [LOCAL] platting, 15 recording, or subdivision requirements established under [AS 29.35.180 AND] 16 AS 40.15. 17 * Sec. 29. AS 40.15.020 is amended to read: 18 Sec. 40.15.020. Plats to be acknowledged and contain certificate that taxes 19 and assessments are paid. Every plat shall be acknowledged before an officer 20 authorized to take acknowledgment of deeds. A certificate of acknowledgment shall 21 be endorsed on or annexed to the plat and recorded with it. Except for the 22 Department of Natural Resources when exercising the department's platting 23 authority under AS 40.15.070, a [A] person filing and recording a plat, map, 24 subdivision, or replat of property, or vacating the whole or any portion of an existing 25 plat, map, subdivision, or replat shall file and record with it a certificate from the tax- 26 collecting official or officials of the area in which the land is located that all taxes 27 levied against the property at that date are paid. 28 * Sec. 30. AS 40.15.070 is repealed and reenacted to read: 29 Sec. 40.15.070. Platting authority. (a) The Department of Natural Resources 30 is the platting authority for 31 (1) the unorganized borough;
01 (2) a municipality that does not have or is not exercising the power of 02 land use regulation or platting authority; and 03 (3) all state land, regardless of location, that is managed by the 04 Department of Natural Resources under AS 16.20, AS 27, AS 37.14.001 - 37.14.099, 05 AS 38, AS 41.15.010 - 41.15.960, AS 41.17.010 - 41.17.955, AS 41.21.010 - 06 41.21.990, and AS 41.23.010 - 41.23.630. 07 (b) When the Department of Natural Resources exercises the department's 08 platting authority within a municipality that has the power of land use regulation and 09 that is exercising the municipality's platting authority, the Department of Natural 10 Resources is exempt from that municipal platting authority and related land use 11 regulation, but shall comply with municipal platting and related land use ordinances to 12 the maximum extent the commissioner of natural resources determines to be consistent 13 with the state's interests. If the commissioner of natural resources determines that 14 compliance with a municipal platting or related land use ordinance is not consistent 15 with the state's interests, the plat must comply with state platting requirements. Where 16 a Department of Natural Resources' plat or subdivision does not comply with a 17 municipal planning, platting, or land use regulation, the state is deemed to have 18 received for the affected land a variance from that planning, platting, or land use 19 regulation. Any variance allowed under this section is appurtenant to and runs with the 20 land. 21 (c) Except as provided in (b) of this section and otherwise by law, a 22 municipality that has planning, platting, and zoning powers and is exercising platting 23 authority and land use regulation is the platting authority as provided in AS 29.40. 24 (d) A subdivision or plat shall be submitted to the appropriate platting 25 authority for approval. The subdivision or plat may not be filed and recorded until the 26 subdivision or plat is approved. 27 * Sec. 31. AS 40.15.200 is amended to read: 28 Sec. 40.15.200. Application [TO STATE AND POLITICAL 29 SUBDIVISIONS]. Except as provided in (b) of this section, all [ALL] subdivisions 30 of land made by the state, its agencies, instrumentalities, and political subdivisions are 31 subject to the provisions of AS 40.15.010 - 40.15.200 and AS 29.40.070 - 29.40.160,
01 or home rule ordinances or regulations governing subdivisions, and shall comply with 02 ordinances and other local regulations adopted under AS 40.15.010 - 40.15.200 and 03 AS 29.40.070 - 29.40.160 or former AS 29.33.150 - 29.33.240, or under home rule 04 authority, in the same manner and to the same extent as subdivisions made by other 05 landowners. 06 * Sec. 32. AS 40.15.200 is amended by adding a new subsection to read: 07 (b) All subdivisions of state land managed by the Department of Natural 08 Resources and where the Department of Natural Resources is exercising the 09 department's platting authority under AS 40.15.070 are subject to the provisions of 10 AS 40.15.010 - 40.15.070. 11 * Sec. 33. AS 40.15.305(a) is amended to read: 12 (a) The commissioner shall exercise the platting authority for the state and all 13 state land as provided in AS 40.15.070 [EXCEPT WITHIN A MUNICIPALITY 14 THAT HAS THE POWER OF LAND USE REGULATION AND THAT IS 15 EXERCISING PLATTING AUTHORITY]. 16 * Sec. 34. AS 29.10.200(54); AS 29.40.200; AS 38.08.010(b)(1); AS 41.23.400, 41.23.410, 17 41.23.420, 41.23.430, 41.23.440, 41.23.450, 41.23.460, 41.23.470, 41.23.480, 41.23.490, 18 41.23.500, and 41.23.510 are repealed. 19 * Sec. 35. Section 1, ch. 122, SLA 1988 is repealed. 20 * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The commissioner of natural resources may adopt 23 or amend regulations as necessary to implement the changes made by this Act. The 24 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 25 effective date of the law implemented by the regulations. 26 * Sec. 37. This Act takes effect immediately under AS 01.10.070(c).