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CSHB 329(FSH): "An Act relating to state tideland leases; relating to geoduck seed transfers; and relating to aquatic farming or related hatchery operation site leases."

00 CS FOR HOUSE BILL NO. 329(FSH) 01 "An Act relating to state tideland leases; relating to geoduck seed transfers; and relating 02 to aquatic farming or related hatchery operation site leases." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 16.40.145 is amended to read: 05 Sec. 16.40.145. Geoduck seed transfer between a certified hatchery and an 06 aquatic farm. Consistent with AS 16.40.140(b) - (d), a hatchery certified under 07 AS 16.40.100 may transfer geoduck seed to an aquatic farm located in a fisheries 08 management area established under this title that is contiguous to an island in the 09 Aleutian Chain or to the Gulf of Alaska. 10 * Sec. 2. AS 38.05.070(e) is amended to read: 11 (e) The director may renew a lease issued under this section, AS 38.05.075, 12 38.05.083, or 38.05.810 upon its expiration if the lease is in good standing and the 13 lease renewal is determined to be in the best interests of the state. A renewal issued 14 under this subsection is not subject to AS 38.05.035(e). A lease under this section,

01 AS 38.05.075 [, 38.05.083,] or 38.05.810 may be renewed only once for a term not 02 longer than the initial term of the lease. The director shall provide notice of the lease 03 renewal decision. 04 * Sec. 3. AS 38.05.081(a) is amended to read: 05 (a) Except as provided in (n) of this section, the [THE] commissioner may 06 lease state land for carbon management purposes. A lease agreement under this section 07 must include land use restrictions and authorizations consistent with the carbon 08 management purpose of the lease. 09 * Sec. 4. AS 38.05.081 is amended by adding a new subsection to read: 10 (n) The commissioner may not lease state tideland to a person solely for 11 carbon management purposes. 12 * Sec. 5. AS 38.05.083(c) is amended to read: 13 (c) An aquatic farming or related hatchery operation [A] site [MAY BE] 14 leased under this section is subject to appraisal under AS 38.05.840 only if the 15 commissioner determines in writing that the site is subject to appraisal under 16 AS 38.05.840 [FOR NOT LESS THAN THE APPRAISED FAIR MARKET VALUE 17 OF THE LEASE. THE VALUE OF THE LEASE SHALL BE REAPPRAISED 18 EVERY FIVE YEARS]. 19 * Sec. 6. AS 38.05.083(f) is amended to read: 20 (f) The commissioner shall adopt regulations establishing criteria for the 21 approval or denial of leases under this section and for limiting the number of sites for 22 which leases may be issued in an area in order to protect the environment and natural 23 resources of the area. The regulations 24 (1) must provide for the consideration of whether the proposed use of 25 a site is compatible with the traditional and existing uses of the area in which the 26 site is located; and 27 (2) may provide for the consideration of upland management 28 policies [AND WHETHER THE PROPOSED USE OF A SITE IS COMPATIBLE 29 WITH THE TRADITIONAL AND EXISTING USES OF THE AREA IN WHICH 30 THE SITE IS LOCATED]. 31 * Sec. 7. AS 38.05.083 is amended by adding new subsections to read:

01 (j) The compensation to be paid to the state for a lease issued under this 02 section shall be in accordance with AS 38.05.073(m). 03 (k) A site leased under this section is subject to survey under AS 38.04.045 04 only if the commissioner determines in writing that the site is subject to survey under 05 AS 38.04.045. 06 (l) If the director finds that it is in the best interests of the state, the director 07 shall preference the lessee of a site leased under this section in renewing the lease for 08 the site or in issuing a new lease for the site. A lessee under this section is not eligible 09 for a preference to purchase the site under AS 38.05.102. 10 (m) Except for a site used as a hatchery for aquatic plants or shellfish, a site 11 leased under this section must be used for the commercial production of an aquatic 12 farm product. In this subsection, "aquatic farm product," "aquatic plant," "hatchery," 13 and "shellfish" have the meanings given in AS 16.40.199. 14 (n) A lease issued under this section may be renewed for a period of up to 20 15 years. 16 * Sec. 8. AS 38.05.102 is amended to read: 17 Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081 or 18 38.05.083, if land within a leasehold created under AS 38.05.070 - 38.05.105 is 19 offered for sale or long-term lease at the termination of the existing leasehold, the 20 director may, upon a finding that it is in the best interest of the state, allow a holder in 21 good standing of the existing leasehold to purchase or lease the land for its appraised 22 fair market value at the time of the sale or long-term lease. 23 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY. AS 38.05.081, as amended by sec. 3 of this Act, and 26 AS 38.05.081(n), added by sec. 4 of this Act, apply to a lease of state tideland for carbon 27 management purposes or a renewal of a lease of state tideland for carbon management 28 purposes entered into on or after the effective date of this Act.