Legislature(2023 - 2024)BARNES 124
02/06/2024 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB255 | |
| HB282 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 255 | TELECONFERENCED | |
| *+ | HB 282 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 282-STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT
1:44:18 PM
CHAIR MCCABE announced that the final order of business would be
HOUSE BILL NO. 282, "An Act relating to access roads; relating
to state land; relating to contracts for the sale of state land;
relating to the authority of the Department of Education and
Early Development to dispose of state land; relating to the
authority of the Department of Transportation and Public
Facilities to dispose of state land; relating to the authority
of the Department of Natural Resources over certain state land;
relating to the state land disposal income fund; relating to the
sale and lease of state land; relating to covenants and
restrictions on agricultural land; and providing for an
effective date."
1:45:13 PM
BRENT GOODRUM, Deputy Commissioner, Department of Natural
Resources, began by relating that the state manages over 100
million acres of uplands and another 65 million acres of
highlands all belonging to the people of Alaska. He said HB 282
would help to cut bureaucratic red tape, create flexibility and
responsiveness from state departments, and open additional
opportunities to put state lands to work for everyday Alaskans.
The bill would also work to create flexible leasing
requirements, support applicants' needs, and likely lower costs
for lessees. He added that the legislation would also help
facilitate commercial land sales by introducing a new statute
for commercial land leasing and sales.
1:48:51 PM
RACHEL LONGACRE, Chief of Operations, Division of Mining, Land
and Water, Department of Natural Resources, began a PowerPoint
presentation [hard copy included in the committee packet] on
slide 2, titled "Overview," which read as follows [original
punctuation provided]:
• Authorize the Department of Education & Early
Development (DEED) and the Department of
Transportation & Public Facilities (DOT&PF) to
directly dispose of surface land, rather than
transferring land to the Department of Natural
Resources (DNR) for conveyance
• Increase the cap on the Land Disposal Income Fund
(LDIF)
Update and improve provisions relating to DNR's land
disposal procedures in AS 19.30, AS 38.04, AS 38.05
• Amends agricultural use restrictions
• Add a new statute relating to leases and sales of
land for commercial development
1:49:52 PM
MS. LONGACRE moved to slide 3, titled "Authority for Direct
Disposal of State Land," which read as follows [original
punctuation provided]:
• Proposed amendments allow the Department of
Education and Early Development (amending AS
14.07.030) and Department of Transportation & Public
Facilities (amending AS 35.20.070) to sell land
directly to private parties
Streamlining land disposals, reducing multi-agency
involvement
Expanding eligible recipients beyond federal, state
agencies, and political subdivisions
1:51:38 PM
MS. LONGACRE continued to slide 4, titled "Land Disposal Income
Fund (LDIF)," which read as follows [original punctuation
provided]:
• The LDIF holds deposits from the state land disposal
program
• Under current law, the portion of the fund in excess
of $5 million is to be deposited in the state general
fund
• The bill raises state land disposal income fund cap
from $5 million to $12 million
Boosts spending authority for larger projects
• Addresses inflation since 2000; cap unchanged for 20
years
• Adjustment to funding cap, not appropriation
• Department can request limit increase in annual
report
1:52:47 PM
MS. LONGACRE moved to slide 5, titled "Agricultural Land Lease
and Sale Procedures," which read as follows [original
punctuation provided]:
• Amendment to AS 38.05.321 allows broader use of
agricultural land and improvements
• Currently an agricultural landowner can only use the
land for purposes that are incidental to and not
inconsistent with agricultural land
• Proposed amendment would now allow an agricultural
landowner to use land for purposes that are consistent
with and do not interfere with the primary purpose
1:53:23 PM
MS. LONGACRE moved to slide 6, titled "Access Road
Construction," which read as follows [original punctuation
provided]:
• Amends AS 19.30.080 to specify that access roads to
surface disposals may be developed at a pioneer
standard
Clarifying language on right-of-way widths within
municipal boundaries
Align with municipal zoning requirements to the same
extent as private developers
1:53:48 PM
MS. LONGACRE continued on slide 7, titled "Land Sale
Procedures," which read as follows [original punctuation
provided]:
• Land sale disposal contracts
Longer purchase terms from 20 years to 30 years
Consistency in terms from "Foreclosure" to
"Termination"
Allows for paid in full purchase when existing
infrastructure would increase liability of financing a
land sale purchase contract
1:54:11 PM
MS. LONGACRE proceeded to slide 8, titled "Survey Requirements
for Lease," which read as follows [original punctuation
provided]:
• Discretion of cadastral surveys for long-term leases
Survey could be required where infrastructure
boundaries or access management is in the best
interest of the state
Reduces the financial and administrative burden on
industries
Industry is challenged by current requirements
• Ex: Renewable energy projects, grazing leases
1:55:05 PM
MS. LONGACRE proceeded to slide 9, titled "Land for Commercial
Development," which read as follows [original punctuation
provided]:
• Stimulate economic development
• Offers land for leasing, and sale, by requesting
proposals
For state land identified or nominated as a
Qualified Opportunity Zone
For state land nominated by the public
• Land nominated cannot exceed 640 acres
For any other state land the commissioner deems
appropriate for commercial development
• Nominated land may need to be reclassified Provide
additional public notice beyond normal AS 38.05.945
1:55:45 PM
MS. LONGACRE explained the sectional analysis of HB 282, on
slides 10 through 13, which read as follows [original
punctuation provided]:
Section 1 - Amends AS 14.07.030(a) pertaining to the
powers and duties of the Department of Education and
Early Development (DEED), allowing them to dispose of
land directly to a private party rather than just to
federal agencies, state agencies, and political
subdivisions. Under current practice, DEED transfers
land to the Department of Natural Resources (DNR) for
disposal of the parcel in compliance with DNR's
procedures detailed in AS 38, the Alaska Land Act.
Section 2 - Amends AS 19.30.080 pertaining to
construction standards and maintenance of state access
roads. The amendments allow for access roads
constructed under AS 19.30.060-19.30.100 (pertaining
to providing access to state land that is programmed
for surface disposal, and to provide access roads at
the lowest possible cost) to be of low standard and
not necessarily suitable for all weather used. The
amendments would clarify that where an access road to
state land intended for disposal is constructed within
the boundaries of a municipality, the right-ofway
width must conform to the municipality's zoning
requirements to the same extent as private landowners.
Section 3 - Repeals and reenacts AS 35.20.070
(vacating and disposing of land; rights in land),
relating to Department of Transportation & Public
Facilities (DOT&PF) authority to vacate or dispose of
land. Currently, AS 35.20.070 only permits DOT&PF to
transfer such land to DNR for disposal. The reenacted
section would allow DOT&PF to dispose of land to a
third party directly, according to the terms,
standards, and conditions established by the DOT&PF
commissioner. Such land could still be transferred to
DNR for disposal, if requested by DNR. This amendment
will streamline the disposal process and reduce multi-
agency efforts.
Section 4 - Amends AS 38.04.022 pertaining to the
state land disposal income fund. Currently under
subsection (a), the portion of the fund that exceeds
$5,000,000 must be deposited in the state general
fund. This bill would raise that amount to
$12,000,000. This would increase spending authority
from the fund for higher development, multi-year
projects. The increase would also offset inflation
since the fund was established in 2000. The $5 million
cap has not been adjusted in nearly 25 years. This
would be an adjustment to the funding cap, not an
increase in appropriation. Under subsection (b), the
department is granted discretion to request an
increase of the deposit limit in its annual
statutorily required report to the Legislature.
Section 5 - Amends AS 38.04.045(b) to remove long-term
leases under AS 38.05.070 from the requirement to
accomplish an official cadastral survey. Currently, AS
38.04.045, the statute relating to survey and
subdivision, requires that a survey be completed for a
long-term lease, which is defined in statute as a term
over ten years.
Section 6 - Adds a new subsection (c) to AS 38.05.045
to provide that the DNR commissioner may require an
official cadastral survey under .045(b) before the
issuance of a long-term lease under AS 38.05.070.
Section 7 - Repeals and reenacts AS 38.05.055, which
establishes public auction or sealed bid as the
default methods for sale of state land. The re-enacted
version divides this section into four subsections to
improve readability. Each sealed bidder is required to
submit an earnest money deposit of five percent of the
bid amount, and bidders who fail to enter into a
contract to purchase, or default in the payment of the
bid amount, will forfeit the deposit.
Section 8 - Amends AS 38.05.065(a) to a longer term of
30 years. This longer term allows for lower monthly
payments to better assist in higher value purchases.
Sections 9 12 - Amend AS 38.05.065(c), (d), (e), and
(f) to replace the word "foreclosure" with
"termination". Foreclosures are an instrument of
financial institutions rather than state agencies.
Section 13 14 - Amend AS 38.05.065(h) for
consistency pertaining to contracts for state land
disposals. New subsections (j) and (k) require an
earnest money deposit by persons applying to purchase
land by means other than public auction or sealed bid.
The earnest money requirement in cases of auction or
bid is addressed in AS 38.05.055, as amended by the
bill. The new subsections would apply a similar
earnest money requirement to applicants for other
methods of purchasing land under AS 38.05. The
commissioner may, upon a best interest finding,
determine that the purchase price for a parcel of land
with existing improvements valued at greater than
$10,000 must be paid in full within 120 days of
closing.
Section 15 - Amends AS 38.05 by adding a new section
AS 38.05.086 pertaining to leases and sales of land
for commercial development. The new statute supports
commercial or industrial development of state land
nominated and assessed by the state as appropriate for
commercial development. Land could also be nominated
by the public. The statute includes a process for
requesting proposals from prospective lessees,
accepting bids, and then entering a contract to lease.
This statute allows the lessee to apply to purchase
the leased land at any time during the term of the
lease if the department determines the lessee has used
the land for commercial development consistent with
their proposal. The new section also requires notice
to Native Corporation stakeholders.
Section 16 - Amends AS 38.05.321(d) to allow uses on
conveyed agricultural land that are not inconsistent
with and do not limit its use for agricultural
purposes. Currently, AS 38.05.321(d) prohibits the
commissioner of DNR from limiting use of such land for
purposes incidental to and not inconsistent with
agricultural purposes. This section would eliminate
the requirement that uses be incidental to
agricultural purposes.
Section 17 - Amends AS 38.05.965 to add the definition
of "public auction" to expressly include online
auctions in addition to oral outcry auctions.
Section 18 - Repeals AS 38.05.065(b), regarding the
contract of sale for land sold under AS 38.05.057 and
the terms of installment payments. This is a
conforming amendment to account for the changes made
under section 13 of the bill.
Section 19 Provides an immediate effective date
under AS 01.10.090(c).
1:59:41 PM
MS. LONGACRE continued going through the sectional analysis on
Section 7, reiterating its contents.
2:04:07 PM
MS. LONGACRE concluded on slide 14, titled "Fiscal Note," which
read as follows [original punctuation provided]:
• FY 2025 $655.4 (5 positions)
• Two Permanent Full-Time Natural Resource Specialists
3
• Two Permanent Full-Time Natural Resource Specialist
2
• One Permanent Full-Time Appraiser 1
These positions will support timely adjudication of
the expanded Land Sales with Commercial Development
program applications
• FY 2026-2030 $630.4 annually
2:04:58 PM
REPRESENTATIVE STUTES referred to Section 7 and asked for
understanding if one wanted to be a bidder, it requires 5
percent of the value that is nonrefundable whether or not the
bid is won.
MS. LONGACRE clarified that a 5 percent deposit is required for
a successful bidder, and if they do not complete their bid and
move to purchase, they will default the 5 percent.
REPRESENTATIVE STUTES asked if she was an unsuccessful bidder
whether she would get her 5 percent back.
MS. LONGACRE confirmed she would.
2:05:59 PM
REPRESENTATIVE SUMNER brought up installment payments for
purchase and asked about the termination of contracts. He also
touched on foreclosures.
MS. LONGACRE replied that land sale purchase contracts do not
transfer equity in the purchase until the final payment. She
said the language change from "foreclosure" to "termination" is
to support that that is a purchase agreement and not a mortgage.
2:07:27 PM
REPRESENTATIVE VANCE referred to Section 13 and asked whether it
is new language regarding the agriculture uses and installment
payments not exceeding 9.5 percent.
MS. LONGACRE replied yes, it is current language not amended
through this bill.
REPRESENTATIVE VANCE pointed out Section 14, subsection (k) and
asked whether it was realistic content.
MS. LONGACRE replied that recently, land purchased through the
state may be returned for one reason or another. There is a
liability associated that the state is assuming, and if the next
purchaser damages or creates higher liability, then the state is
still "on the hook" for that.
REPRESENTATIVE VANCE spoke to Section 15 referencing leases and
sales of land for commercial development. She asked whether
commercial development is defined in this area of statute.
MS. LONGACRE replied there is no definition in the bill or the
specific section and that she would follow up about a Title 38
definition of commercial activity.
2:10:29 PM
REPRESENTATIVE STUTES questioned, with all the new regulations,
whether a sale of state property would go through the
appropriate public process.
MS. LONGACRE said the bill does not amend any current existing
processes.
2:11:29 PM
REPRESENTATIVE MINA sought additional background and whether
other projects have faced barriers because of the current
statute.
MS. LONGACRE acknowledged that similar bills had been introduced
and had additions made which resulted in hurdles.
REPRESENTATIVE MINA sought to know what land DOT&PF owns and
what land owned by the Department of Education and Early
Development (DEED) would be impacted.
MS. LONGACRE replied she would follow up with the committee on
the inquiry.
2:13:41 PM
CHAIR MCCABE thanked the presenters and discussed future
business.
[HB 282 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB282.Ver.A.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.SponsorStmt.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.Ver.A.Sectional Analysis.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.FiscalNote.DEED.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.FiscalNote.DNR2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB255.VerB.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| HB255.SponsorStatement.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| HB 282, SB 199 State Land_Disposal_Sale_ Briefing Paper 02.06.2024.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 SB 199 |
| HB 282 DNR State Land_Disposal_Sale_Presentation 02.06.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB 255.SectionalAnalysis.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| HB255.VerB.FiscalNote.DCCED.02.6.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| CSHB255.VerS.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| CSHB255.VerS.SummaryChanges.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |