Legislature(2023 - 2024)BARNES 124
01/29/2024 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB243 | |
| HB272 | |
| HB281 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 272 | TELECONFERENCED | |
| *+ | HB 281 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 243 | TELECONFERENCED | |
HB 281-STATE LAND FOR REMOTE REC CABIN SITES
1:28:13 PM
CHAIR MCKAY announced that the final order of business would be
HOUSE BILL NO. 281, "An Act relating to the permitting, lease,
and sale of state land for remote recreational cabin sites; and
providing for an effective date."
CHAIR MCKAY noted that HB 281 is sponsored by the House Rules
Committee by request of the governor.
1:28:47 PM
CHRISTIANNA COLLES, Director, Division of Mining, Land and Water
(DMLW), Department of Natural Resources (DNR), provided a
PowerPoint presentation titled "Remote Recreational Cabin Sites
HB 281" on behalf of the House Rules Committee, sponsor by
request of the governor. She spoke to slide 2 of the PowerPoint
presentation, "Purpose," which read as follows [original
punctuation provided]:
Article VIII, Section 1 of the Alaska Constitution
states:
It is the policy of the State to encourage the
settlement of its land and the development of its
resources by making them available for maximum use
consistent with the public interest.
• HB 281 will provide Alaskans a variety of
opportunities to utilize and own state land for
recreational purposes
• The bill aligns with the Governor's priority to put
Alaska land into Alaskan hands
MS. COLLES reviewed slide 3, "Overview," which read as follows
[original punctuation provided]:
• The Department of Natural Resources (DNR) will
annually publish a list of lands available to
stake for a Remote Recreational Cabin Site (RRCS)
• Individuals can nominate 10 acres of unencumbered
state land not included in the annual state
offering for RRCS
• Lands may be classified or reclassified
• Multiple ways to procure a site:
square4 Permit
square4 Lease
square4 Purchase
MS. COLLES discussed slide 4, "HB 281 Permits," which read as
follows [original punctuation provided]:
• Establishes a process for permitting
square4 Up to 10 acres for nominated lands, department
sets acreage for offered lands
square4 5-year term; four renewals for 5-year terms
square4 Revocable at will and may not be assigned
square4 Fees established under AS 38.05.073(m)
square4 May be terminated for any reason
• Permit holder may apply to lease or purchase
MS. COLLES addressed slide 5, "HB 281 Leasing," which read as
follows [original punctuation provided]:
• Process for leasing a remote recreational site
square4 10 acres for nominated lands
square4 10-year leasing period; two renewals for 10-year
terms
square4 Restricts assignment of a lease
square4 Fees established under AS 38.05.073(m)
square4 Termination of lease for non-compliance
square4 May purchase the site during the term of the
lease
MS. COLLES elaborated on slide 6, "HB 281 Purchase," which
read as follows [original punctuation provided]:
• Process for purchase of state land for RRCS
square4 10 acres for nominated lands
square4 Purchase price set at fair market value
o Purchase of permitted and leased sites
appraisal will be set at time of entry
square4 Applicant must pay for appraisal, survey, and
platting
MS. COLLES showed slide 7, "Map of State-owned Land," and said
it represents the different major ownerships across Alaska, with
state-owned land represented in blue. State land is classified
through an agency and public engagement planning process, she
continued, to assist [DNR] in making decisions on development
and disposals. Lands must be classified prior to a disposal.
The classification types are agricultural, coal, forestry,
geothermal, grazing, material, mineral, oil and gas, heritage
resources, public recreation, reserved use, resource management,
transportation corridors, waterfront development, water
resources, wildlife habitat, and settlement. Settlement
classification is land identified for disposal into private
ownership. Land not designated as settlement can be considered
for reclassification through a process that is set out in
current statute.
MS. COLLES turned to the map on slide 8, "Statewide Settlement
Land," and noted that [a total of] approximately 3,544,344 acres
of land across the state is already classified as settlement.
She proceeded to slide 9, "Northern Region Settlement Land," and
specified that 1,309,586 acres are classified as settlement in
this region. She showed slide 10, "Southcentral Region
Settlement Land," and related that 2,167,824 acres are
classified as settlement in this region. Addressing slide 11,
"Southeast Region Settlement Land," she said 66,932 acres are
classified as settlement here.
1:34:12 PM
MS. COLLES next provided the sectional analysis for HB 281. The
sectional analysis was outlined on slides 12-18 of her
PowerPoint presentation, and was also provided in a written
summary included in the committee packet titled "Sectional
Analysis, House Bill 281 State Land for Remote Rec Cabin Sites
(33-GH2026\A)", which read as follows [original punctuation
provided with some formatting changes]:
Section 1 - Amends the uncodified law of the State of
Alaska to add a statement of purpose.
Section 2 - Amends AS 38.05.035(e) (outlining the
powers and duties of the director of the division of
lands) to add a new (e)(6)(I) stating that the
director is not required to issue a written finding
before approval of a remote recreational cabin site
permit, lease, or sale under AS 38.05.600 (the remote
recreational cabin sites statute).
Section 3 - Amends AS 38.05.045 (the statute stating
that, in general but with some exceptions, all land
owned in fee by the state may be sold as provided in
AS 38.05.045 - .069 and in AS 38.08) to add that this
statute does not prevent the disposition of land as
provided in AS 38.05.600 (the remote recreational
cabin sites statute).
Section 4 - Amends AS 38.05.065(b) (the statute
providing terms of contract for sale) to state that a
contract for land sold under AS 38.05.600 (the remote
recreational cabin sites statute) to add a requirement
for installment payments of no more than 20 years on a
level-payment basis at interest rates set by AS
38.05.065(i).
Section 5 - Amends AS 38.05.125(a) (the statute
listing reservations for contracts for sale, lease, or
grant of state land, and each deed to state land,
properties, or interest in state land) to add AS
38.05.600 to the list of statutes subject to the
reservations laid out in .125(a).
Section 6 - Amends AS 38.05.600 by repealing the
existing remote recreational site statute and re-
enacting it as follows:
(a) States that the commissioner shall provide
for the permitting, lease, and sale of state land
for remote recreational sites to eligible
applicants, as described in (b) and (c).
(b) States that the commissioner shall publish an
annual schedule of land offerings that lists
areas available for staking of remote
recreational cabin sites. The department will
provide public notice of the annual schedule and
applicants may apply for sites.
(c) States that eligible applicants may nominate
unencumbered land and apply for a permit, lease,
or sale of up to 10 acres of state land that is
not included in the commissioner's schedule of
land offerings.
(d) States that the commissioner may classify or
reclassify nominated land if nominated land is
not classified to allow for remote recreational
cabin sites. The applicant would be responsible
for all administrative costs associated with
reclassification; the department shall provide
public notice of the nomination; and if the
applicant fails to stake land within 90 days of
approval, the commissioner may include the land
in the annual schedule of offerings.
(e) States that the commissioner may issue a
permit to an eligible applicant for a term of not
more than five years. The permit could be renewed
up to four times, for five years per renewal.
Permits are revocable at will and may be
terminated by the commissioner for any reason.
The permittee is eligible to lease or purchase
the site, and if the land subject to the permit
is offered for sale or lease, the commissioner
shall first offer the site to the permittee.
(f) States that the commissioner may issue a
lease for a term not more than 10 years, with two
10-year renewals. A lease may be terminated by
the commissioner if a lessee fails to use the
land according to the terms of the lease. The
lessee may purchase the site at any time during
the lease.
(g) States that annual fees for permits and
leases shall be set by the commissioner in
accordance with AS 38.05.073(m) to ensure the
state receives a fair return. After the
termination of a permit or lease, improvements or
personal property remaining on the land shall be
handled as provided in AS 38.05.090. A lease or
permit may not be assigned.
(h) States that sales must be at fair market
value at the time of entry, and the purchaser
must pay the costs of appraisal, survey, and
platting.
(i) States that the commissioner may adopt
regulations to implement this section.
(j) Provides definitions for "eligible applicant"
and "resident".
Section 7 - Amends the uncodified law by adding a new
section relating to transition, stating that a lease
executed under AS 38.05.600 before the effective date
of this act and in effect on the effective date of
this act is eligible for renewal under AS 38.05.600 as
repealed and reenacted in Section 6 of this bill.
Section 8 - Provides for an immediate effective date
under AS 01.10.070(c).
1:39:38 PM
MS. COLLES concluded her PowerPoint presentation with slide 19,
"Fiscal Note," which read as follows [original punctuation
provided with some formatting changes]:
• FY 2025 $731.8 (5 positions)
• One Permanent Full-Time Land Surveyor 1
• One Permanent Full-Time Natural Resource
Manager 1
• Two Permanent Full-Time Natural Resource
Specialists 3
• One Permanent Full-Time Natural Resource
Specialist 2
- These positions will support timely
adjudication of the expanded Remote
Recreational Cabin Site program applications
• FY 2026-2030 $706.8 annual
MS. COLLES added that the manager would run this program which
will have a lot more elements than the current program. One
Specialist 3 would help with reclassifications and the other
Specialist 3, with the help of the Specialist 2, would do the
adjudications of the nominations and help with commissioner's
schedule of land offerings.
1:40:41 PM
CHAIR MCKAY posed a scenario of purchasing a lot near the Parks
Highway for a recreational cabin with private land located
between the highway and his lot. He asked whether he would be
allowed access to his lot through the private property via an
ATV or snowmachine.
MS. COLLES answered that access would be on a case-by-case
basis; for example, whether a float plane can be landed for a
parcel by a lake or whether there are section line easements to
a parcel for access by snowmachine. The department's current
program, she said, only has a sales element, not permit and
lease elements. Access is looked at when DNR offers areas for
people to stake, so DNR will need to look at whether there is
legal access for those parcels which are nominated by someone.
CHAIR MCKAY remarked that it is important [for DNR] to look at
legal access to a parcel.
MS. COLLES concurred that legal access is wanted and that
creating conflict between private ownership and new ownership
that doesn't have access isn't wanted since DNR currently deals
with access conflict and doesn't want to create more.
1:42:44 PM
REPRESENTATIVE MCCABE requested for the record a definition of
"remote recreational cabin sites" as opposed to non-remote and
not a cabin site.
MS. COLLES replied that DNR currently has subdivision sales and
many times those subdivision sales are off highways and roads
can be built. The remote recreational sites are usually more
remote where access is something that must be looked at, such as
whether there is a lake that could be landed on. These sites
aren't going to be on the road system, they will be reachable by
maybe snowmachine or a river or boat in the summer.
REPRESENTATIVE MCCABE pointed out that to one person remote
might be walking a mile-long trail from the road system while to
another person remote means 15 miles by snowmachine. He asked
whether there is a tighter definition of "remote" or whether DNR
figures that out at the time.
MS. COLLES responded that she doesn't think a definition is on
the books, rather it is a case-by-case basis as to whether DNR
considers it remote. She said she thinks it is something that
would be put into regulation by the department.
1:45:04 PM
REPRESENTATIVE SADDLER stated he supports the governor's efforts
to put more Alaska lands into Alaskan hands. This is to provide
leases for recreational sites, he noted, it isn't for commercial
sites. He observed that Section 6(e) of the bill speaks of the
commissioner's ability to issue a permit for five years with up
to four renewals [not to exceed five years each]. He asked what
the permit would permit since the bill is primarily addresses
leasing land.
MS. COLLES answered that this program covers permits, leases,
and sales. A permit would give [the permittee] the right to
build a cabin on state land, which could then be turned into a
lease or a purchase if the area allows it. For example, some
personal use cabins, often referred to as "duck shacks," are in
legislatively designated areas, so DNR cannot sell that land to
the individual but can issue a permit. This bill would give DNR
a host of options for being able to authorize these types of
structures.
REPRESENTATIVE SADDLER asserted that this is not specifically to
lease but almost a rent-to-own type of thing because people
would be able to lease public land for up to 30 years total and
it could lead to permitting a cabin and could lead to sale of
that cabin to the person who built it and sale of the land to
the person who leased it. He asked whether providing land for
30 years of use and the wherewithal to sell the land to that
person isn't the definition of disposal of the land.
MS. COLLES replied yes, this is getting it to disposal. But,
she added, the goal for individuals who cannot afford to pay for
the survey, appraisal costs, and purchase of the land is to have
the opportunity to find a piece of property and use it for
camping. If they later decide not to purchase the parcel they
could choose to close their permit and move their structures to
another location.
REPRESENTATIVE SADDLER asked whether at the point of the
presumed end of this process there would be a need for the
commissioner to issue a best interest finding (BIF) justifying
permanent disposal of that state land.
MS. COLLES responded that HB 281 would give the department an
exemption from going through the 035(e) written finding, but DNR
would still have to write some sort of decision. That is
already done with some of DNR's other authorization types, where
the department still writes a decision and still goes out for
public notice, but it's not as prescriptive as 035 and it
doesn't have the requirement of public notice under 38.05.945.
REPRESENTATIVE SADDLER concluded that this means someone who got
the lease and went through 30 years would not have to get a BIF
for disposal of the land, so there would not be the public
notice that people might otherwise expect for disposition of
state land.
MS. COLLES answered that the statute doesn't require it, but the
constitution requires the department to public notice. The
department would still public notice these actions and all
decisions made by the department are appealable. So, a decision
would need to be drafted, it just wouldn't need to be drafted
per the statute currently on the books, which is AS 38.05.035.
REPRESENTATIVE SADDLER asked whether the lessee would have the
exclusive right to occupy the leased acreage. He further asked
whether the lessee would be allowed to let someone hunt
commercially on this recreational site and what the limitations
or conditions on the use of this land would be.
MS. COLLES replied that much of that will have to worked out in
regulation as there is nothing in statute that states that the
lessee cannot use it for commercial purposes. However, she
added, the intent of HB 281 is for private use. Once sold out
of state ownership, the individual could do with the land what
they wish. Under the department's current program, the initial
lease requests that the land not be used for commercial
operations, that it only be private use, until it goes under
contract and the property sold to them.
REPRESENTATIVE SADDLER surmised there would be a request but not
an obligation. So, he continued, someone could obtain a remote
recreational site lease and could conduct commercial operations
on it because there is nothing to prevent them from doing so.
MS. COLLES responded that the department could put into
regulation or stipulate in contract that the parcels cannot be
used for commercial operations. As currently written, the bill
does not prohibit commercial use, so the department would have
to work out whether it wants to prohibit commercial use.
1:50:47 PM
CHAIR MCKAY asked how many parcels could be leased by one person
or leased in a block by one person.
MS. COLLES answered that it says an eligible applicant can only
participate in this program one time and she thinks it also says
for 10 years from the time a person has participated. So, if
someone had a lease for 30 years and decided not to purchase the
parcel, the person would have to wait 10 years before they could
apply for another authorization.
1:51:37 PM
REPRESENTATIVE DIBERT inquired about the department's projection
for the number of parcels to be sold per year.
MS. COLLES replied that the current program is staffed with two
people, is done every other year, and parcels are lumped
together in an area to help with survey costs, appraisals, and
other work. She advised that HB 281 would require that it be
done annually and that the department accept nominations of
parcels throughout the state. The department sees that this
could be a very popular program, she continued, so more staff
positions would be needed to handle this bigger burden and to
handle surveys and the reclassification of land that is
nominated but not already classified as settlement.
1:53:09 PM
REPRESENTATIVE MCCABE asked whether there is a minimum size for
parcels. He further asked whether a parcel could be nominated
from a previously offered, but failed, sale.
MS. COLLES responded that a nomination can be anything up to a
maximum of 10 acres.
CHAIR MCKAY, on behalf of Representative Rauscher, asked whether
the administration plans to offer a typical number of sites per
year. He further asked whether failure to pay the monthly lease
would be ruled noncompliance and the property would subsequently
be lost.
MS. COLLES answered that 96 authorizations were offered in 2023,
108 were offered [in 2021], and 225 were offered in 2012.
Subdivision sales are usually about 10 acres. Someone wanting a
remote site usually doesn't want to have neighbors, these can be
anywhere from 5 to 20. If someone goes into default, the
department can close the permit, lease, or sale. The state
often goes under contract for the purchase and finances those,
so [the state] will terminate if people aren't paying their
monthly rents.
CHAIR MCKAY surmised that if he built a fancy cabin and didn't
pay rent on the property, he would lose both the cabin and the
property.
MS. COLLES confirmed that that is correct. She related that
under current statute, AS 38.05.090, which is referenced in HB
281, the department is required to work with the individual; if
the property is over $10,000 in value when the state sells it,
the purchaser must help make that individual whole because the
purchaser is getting that improvement on the land.
1:56:15 PM
REPRESENTATIVE SADDLER observed that the bill defines "resident"
as an individual who has resided in the state for one year
before submitting an application. He asked whether this
definition is sufficient or whether resident should be defined
in more detail.
MS. COLLES replied that, based on other programs, she thinks the
current definition is sufficient but that [the department] is
open to other ideas.
1:57:17 PM
CHAIR MCKAY announced that HB 281 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 281 Transmittal Letter.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 281 |
| HB 281 Sectional Analysis 01.25.2024.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 281 |
| HB 281 Fiscal Note.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 281 |
| HB272 Transmittal Letter version A 01.16.24.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 272 |
| HB272 Sectional Analysis version A 01.19.24.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 272 |
| 2024 01 29 HRES DNR HB 281 Remote Rec Presentation.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 281 |
| HB 281 DNR Briefing Paper 1.25.2024.pdf |
HRES 1/29/2024 1:00:00 PM |
HB 281 |