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CSHB 329(FSH) am: "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) am 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) The commissioner may lease state land for carbon management purposes. 06 However, the commissioner may exclude from consideration land for which a 07 person has submitted a lease application under AS 38.05.083 if the commissioner 08 finds that excluding the land from consideration is in the public interest. A lease 09 agreement under this section must include land use restrictions and authorizations 10 consistent with the carbon management purpose of the lease. 11 * Sec. 4. AS 38.05.081(c) is amended to read: 12 (c) Upon receiving an application to use state land for carbon management 13 purposes, unless the land applied for is excluded from consideration by the 14 commissioner under (a) of this section, the department shall solicit competitive 15 interest by issuing a public notice in the manner prescribed in AS 38.05.945. The 16 notice must contain an announcement seeking competitive interest. If competing 17 carbon management applications are received following notice, the applications will 18 be awarded under (d) of this section. In addition to issuing notice under 19 AS 38.05.945, the department shall provide public notice of an application 20 received under this section to a person leasing, or who has applied to lease, land 21 under AS 38.05.083 that is within 25 miles of the land proposed for lease in the 22 application received under this section. 23 * Sec. 5. AS 38.05.083(c) is amended to read: 24 (c) An aquatic farming or related hatchery operation [A] site [MAY BE] 25 leased under this section is subject to appraisal under AS 38.05.840 only if the 26 commissioner determines in writing that the site is subject to appraisal under 27 AS 38.05.840 [FOR NOT LESS THAN THE APPRAISED FAIR MARKET VALUE 28 OF THE LEASE. THE VALUE OF THE LEASE SHALL BE REAPPRAISED 29 EVERY FIVE YEARS]. 30 * Sec. 6. AS 38.05.083(f) is amended to read: 31 (f) The commissioner shall adopt regulations establishing criteria for the

01 approval or denial of leases under this section and for limiting the number of sites for 02 which leases may be issued in an area in order to protect the environment and natural 03 resources of the area. The regulations 04 (1) must provide for the consideration of whether the proposed use of 05 a site is compatible with the traditional and existing uses of the area in which the 06 site is located; and 07 (2) may provide for the consideration of upland management 08 policies [AND WHETHER THE PROPOSED USE OF A SITE IS COMPATIBLE 09 WITH THE TRADITIONAL AND EXISTING USES OF THE AREA IN WHICH 10 THE SITE IS LOCATED]. 11 * Sec. 7. AS 38.05.083 is amended by adding new subsections to read: 12 (j) The compensation to be paid to the state for a lease issued under this 13 section shall be in accordance with AS 38.05.073(m). 14 (k) A site leased under this section is subject to survey under AS 38.04.045 15 only if the commissioner determines in writing that the site is subject to survey under 16 AS 38.04.045. 17 (l) If the director finds that it is in the best interests of the state, the director 18 shall preference the lessee of a site leased under this section in renewing the lease for 19 the site or in issuing a new lease for the site. A lessee under this section is not eligible 20 for a preference to purchase the site under AS 38.05.102. 21 (m) Except for a site used as a hatchery for aquatic plants or shellfish, a site 22 leased under this section must be used for the commercial production of an aquatic 23 farm product. In this subsection, "aquatic farm product," "aquatic plant," "hatchery," 24 and "shellfish" have the meanings given in AS 16.40.199. 25 (n) A lease issued under this section may be renewed for a period of up to 20 26 years. 27 * Sec. 8. AS 38.05.102 is amended to read: 28 Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081 or 29 38.05.083, if land within a leasehold created under AS 38.05.070 - 38.05.105 is 30 offered for sale or long-term lease at the termination of the existing leasehold, the 31 director may, upon a finding that it is in the best interest of the state, allow a holder in

01 good standing of the existing leasehold to purchase or lease the land for its appraised 02 fair market value at the time of the sale or long-term lease. 03 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 APPLICABILITY. The public notice requirements added by AS 38.05.081(c), as 06 amended by sec. 4 of this Act, apply to an application submitted for a lease of state tide or 07 submerged land for a carbon management purpose under AS 38.05.081 received by the 08 Department of Natural Resources on or after the effective date of this Act.