SB0199B -1- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] 33-GS2634\S CS FOR SENATE BILL NO. 199(TRA) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE SENATE TRANSPORTATION COMMITTEE Offered: 2/21/24 Referred: Resources, Finance Sponsor(s): SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR A BILL FOR AN ACT ENTITLED "An Act relating to access roads; relating to state land; relating to contracts for the sale 1 of state land; relating to the authority of the Department of Education and Early 2 Development to dispose of state land; relating to the authority of the Department of 3 Transportation and Public Facilities to dispose of state land; relating to the acceptance 4 of gifts, donations, and grants by the Department of Natural Resources; relating to 5 accounting for certain program receipts; relating to the authority of the Department of 6 Natural Resources over certain state land; relating to the state land disposal income 7 fund; relating to the sale and lease of state land; relating to covenants and restrictions 8 on agricultural land; and providing for an effective date." 9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 14.07.030(a) is amended to read: 11 (a) The department may 12 33-GS2634\S CSSB 199(TRA) -2- SB0199B New Text Underlined [DELETED TEXT BRACKETED] (1) establish, maintain, govern, operate, discontinue, and combine area, 1 regional, and special schools; 2 (2) enter into contractual agreements with the Bureau of Indian Affairs 3 or with a school district to share boarding costs of secondary school students; 4 (3) provide for citizenship night schools when and where expedient; 5 (4) provide for the sale or other disposition of abandoned or obsolete 6 buildings and other state-owned school property; 7 (5) prescribe a classification for items of expense of school districts; 8 (6) acquire and transfer personal property, acquire real property, and 9 transfer an interest in real property according to terms, standards, and conditions 10 established by the commissioner [TO FEDERAL AGENCIES, STATE AGENCIES, 11 OR TO POLITICAL SUBDIVISIONS]; 12 (7) enter into contractual agreements with school districts to provide 13 more efficient or economical education services; reasonable fees may be charged by 14 the department to cover the costs of providing services under an agreement, including 15 costs for professional services, reproduction or printing, and mailing and distribution 16 of educational materials; 17 (8) provide for the issuance of elementary and secondary diplomas to 18 persons not in school who have completed the equivalent of an 8th or 12th grade 19 education, respectively, in accordance with standards established by the department; 20 (9) apply for, accept, and spend endowments, grants, and other private 21 money available to the state for educational purposes in accordance with AS 37.07 22 (Executive Budget Act); 23 (10) set student tuition and fees for educational and extracurricular 24 programs and services provided and schools operated by the department under the 25 provisions of (1) of this section and AS 14.07.020(a)(9), (11), and (12); 26 (11) charge fees to cover the costs of care and handling with respect to 27 the acquisition, warehousing, distribution, or transfer of donated foods; 28 (12) establish and collect fees for the rental of school facilities and for 29 other programs and services provided by the schools; 30 (13) develop a model curriculum and provide technical assistance for 31 33-GS2634\S SB0199B -3- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] early childhood education programs; 1 (14) notwithstanding any other provision of this title, intervene in a 2 school district to improve instructional practices under standards established by the 3 department in regulation, including directing the 4 (A) employees identified by the department to exercise 5 supervisory authority for instructional practices in the district or in a specified 6 school; 7 (B) use of appropriations under this title for distribution to a 8 district; 9 (15) notwithstanding any other provision of this title, redirect public 10 school funding under AS 14.17 appropriated for distribution to a school district, after 11 providing notice to the district and an opportunity for the district to respond, 12 (A) when necessary to contract for services to improve 13 instructional practices in the district; 14 (B) when the district has failed to take an action required by the 15 department to improve instructional practices in the district; if funding is 16 redirected under this subparagraph, the department shall provide the redirected 17 funding to the district when the department has determined that the required 18 action is satisfactorily completed; or 19 (C) in accordance with AS 14.07.070, when the district has 20 failed to comply with the school laws of the state or with the regulations 21 adopted by the department. 22 * Sec. 2. AS 19.30.080 is amended to read: 23 Sec. 19.30.080. Construction standards and maintenance. An access road 24 constructed under AS 19.30.060 - 19.30.100 may [SHALL] be of low standard, not 25 necessarily suitable for all weather use. The state is not under obligation to maintain 26 an access road constructed under AS 19.30.060 - 19.30.100. If an access road is 27 constructed outside a municipality that has zoning ordinances, the right-of-way width 28 for the road shall be determined by the division of lands and the Department of 29 Transportation and Public Facilities. If an access road under AS 19.30.060 - 30 19.30.100 is constructed within the boundaries of a municipality that has zoning 31 33-GS2634\S CSSB 199(TRA) -4- SB0199B New Text Underlined [DELETED TEXT BRACKETED] ordinances, the right-of-way width must [SHALL] conform to the subdivision control 1 ordinances of the municipality in the same manner and to the same extent as 2 private landowners. Contracts for the work on an access road are governed by 3 AS 36.30 (State Procurement Code). 4 * Sec. 3. AS 35.20.070 is repealed and reenacted to read: 5 Sec. 35.20.070. Vacating and disposing of land; rights in land. (a) The 6 department may vacate an easement acquired for a public works purpose by executing 7 and filing a deed in the appropriate recording district. Upon filing, title to the vacated 8 rights in land inures to the underlying real property owner in the manner and 9 proportion considered equitable by the commissioner and set out in the deed. 10 (b) If the department determines that land or rights in land acquired by the 11 department are no longer necessary for public works purposes, the department shall 12 offer the land to the Department of Natural Resources. If the Department of Natural 13 Resources accepts the offer within 45 days after it receives the offer, the department 14 shall transfer the land to the Department of Natural Resources. If the Department of 15 Natural Resources rejects the offer or fails to accept the offer within 45 days after it 16 receives the offer, the offer is terminated and the department may sell, contract to sell, 17 lease, or exchange the land according to terms, standards, and conditions established 18 by the commissioner. 19 (c) Proceeds received from the sale or lease of land under this section shall be 20 credited to the funds from which the purchase of the land was originally made. 21 * Sec. 4. AS 37.05.146(c) is amended by adding a new paragraph to read: 22 (86) gifts, donations, and grants received by the Department of Natural 23 Resources under AS 38.05.033. 24 * Sec. 5. AS 38.04.022 is amended to read: 25 Sec. 38.04.022. State land disposal income fund. (a) The revenue from the 26 state land disposal program shall be deposited in the state land disposal income fund in 27 the state treasury. On June 30 of each fiscal year, the portion of that fund that exceeds 28 $12,000,000 [$5,000,000] shall be deposited in the state general fund. The legislature 29 may appropriate money from the state land disposal income fund for expenditure by 30 the Department of Natural Resources for necessary costs incurred by the 31 33-GS2634\S SB0199B -5- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] commissioner in the implementation of state land disposal programs authorized under 1 this title or for any other public purpose. 2 (b) Within five days after the legislature convenes in regular session, the 3 Department of Natural Resources shall notify the legislature that a report reflecting all 4 money deposited in the fund established under (a) of this section during the previous 5 [PRIOR] fiscal year is available. The report may include a recommendation to 6 amend the deposit limit established in (a) of this section. 7 * Sec. 6. AS 38.04.045(b) is amended to read: 8 (b) Before the issuance of [A LONG-TERM LEASE UNDER AS 38.05.070 9 OR OF] a patent for state land, an official cadastral survey shall be accomplished, 10 unless a comparable, approved survey exists that has been conducted by the federal 11 Bureau of Land Management. Before land may be offered under AS 38.08 or 12 AS 38.09, or before land may be offered under AS 38.05.055 or 38.05.057, except 13 land that is classified for agricultural uses, an official rectangular survey grid shall be 14 established. The rectangular survey section corner positions shall be monumented and 15 shown on a cadastral survey plat approved by the state. For those areas where the state 16 may wish to convey surface estate outside of an official rectangular survey grid, the 17 commissioner may waive monumentation of individual section corner positions and 18 substitute an official control survey with control points being monumented and shown 19 on control survey plats approved by the state. The commissioner may not issue more 20 than one conveyance for each section within a township outside of an official 21 rectangular survey grid. Land to be conveyed may not be located more than two miles 22 from an official survey control monument except that the commissioner may waive 23 this requirement on a determination that a single purpose use does not justify the 24 requirement if the existing status of the land is known with reasonable certainty. The 25 lots and tracts in state subdivisions shall be monumented and the cadastral survey and 26 plats for the subdivision shall be approved by the state. Where land is located within a 27 municipality with planning, platting, and zoning powers, plats for state subdivisions 28 shall comply with local ordinances and regulations in the same manner and to the 29 same extent as plats for subdivisions by other landowners. State subdivisions shall be 30 filed and recorded in the district recorder's office. The requirements of this section do 31 33-GS2634\S CSSB 199(TRA) -6- SB0199B New Text Underlined [DELETED TEXT BRACKETED] not apply to land made available for material sales, for short-term leases, for parcels 1 adjoining a surveyed right-of-way, or for land that has been open to random staking 2 under the homestead program in the past; however, for short-term leases, the lessee 3 shall comply with local subdivision ordinances unless waived by the municipality 4 under procedures specified by ordinance. In this subsection, "a single purpose use" 5 includes a communication site, an aid to navigation, and a park site. 6 * Sec. 7. AS 38.04.045 is amended by adding a new subsection to read: 7 (c) The commissioner may require an official cadastral survey under (b) of 8 this section before the issuance of a long-term lease under AS 38.05.070. 9 * Sec. 8. AS 38.05 is amended by adding a new section to read: 10 Sec. 38.05.033. Gifts, donations, and grants to the department. (a) The 11 commissioner may apply for and accept on behalf of the state grants from a federal or 12 state agency, foundation, or person for any function or purpose of the department. 13 (b) The department may accept gifts, donations, and grants from a person or 14 agency for the purpose of providing signage for an asset under the control of the 15 department. All gifts, donations, and grants shall be used in accordance with a 16 memorandum of understanding agreed on by the donor and the department. Any 17 signage created under this subsection is subject to the necessary funds being collected 18 from the donor. State funds may not be expended for signage under this subsection 19 until the necessary funds have been collected from the donor. 20 (c) Nothing in this section prevents the state from using state funds to provide 21 signage for an asset under the control of the department. 22 * Sec. 9. AS 38.05.055 is repealed and reenacted to read: 23 Sec. 38.05.055. Auction sale or sealed bid procedures. (a) Unless another 24 method of sale is allowed under this chapter, AS 38.08, or AS 38.09, the sale of state 25 land shall be made at public auction or by sealed bid, at the discretion of the director, 26 to the highest qualified bidder as determined by the director. The director may accept 27 bids and sell state land under this section at not less than 70 percent of the appraised 28 fair market value of the land. 29 (b) To qualify to participate under this section in a public auction or sale by 30 sealed bid of state land that is other than commercial, industrial, or agricultural land, a 31 33-GS2634\S SB0199B -7- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] bidder must be a resident of the state for at least one year immediately preceding the 1 date of the sale and submit proof of that fact as required by regulation. A bidder may 2 be represented by an attorney or agent at a public auction. 3 (c) An aggrieved bidder may appeal to the commissioner within five days after 4 the sale for a review of the director's determination. 5 (d) The director shall conduct a sale under this section. The successful bidder 6 at a public auction, or, for a sealed bid, each bidder when submitting a bid, shall 7 provide an earnest money deposit in the amount of at least five percent of the bid 8 amount. Not later than 10 days after the public auction or sale by sealed bid, the 9 director shall issue a receipt to the successful bidder. The director's receipt shall 10 contain a description of the land or property purchased, the bid price, and the amount 11 deposited. If the bidder fails to enter into a contract to purchase or defaults in the 12 payment of the bid amount, five percent of the bid amount shall be forfeited to the 13 state. 14 * Sec. 10. AS 38.05.065(a) is amended to read: 15 (a) A [THE] contract of sale for land, an interest in land, or property sold 16 under this chapter, including under AS 38.05.057, may be issued for [AT PUBLIC 17 AUCTION OR BY SEALED BID UNDER AS 38.05.055 SHALL REQUIRE] the 18 remainder of the purchase price to be paid in monthly, quarterly, or annual 19 installments over a period of not more than 30 [20] years, with interest at the rate 20 provided in (i) of this section. Installment payments plus interest shall be set on the 21 level-payment basis. 22 * Sec. 11. AS 38.05.065(c) is amended to read: 23 (c) The director shall, for contracts under (a) [, (b),] or (h) of this section, set 24 out in the contract for each sale the period for the payment of installments and the total 25 purchase price plus interest. The director, with the consent of the commissioner, may 26 also include in contracts under this section conditions, limitations, and terms 27 considered necessary and proper to protect the interest of the state. Violations of any 28 provision of this chapter or the terms of the contract of sale subject the purchaser to 29 appropriate administrative and legal action, including but not limited to specific 30 performance, termination [FORECLOSURE], ejectment, or other legal remedies in 31 33-GS2634\S CSSB 199(TRA) -8- SB0199B New Text Underlined [DELETED TEXT BRACKETED] accordance with applicable state law. 1 * Sec. 12. AS 38.05.065(d) is amended to read: 2 (d) If a contract for a sale of state land has been breached, the director may 3 issue a decision to [FORECLOSE AND] terminate the contract at any time 31 days 4 after delivering by certified mail a written notice of the breach to the address of record 5 of the purchaser. A breach caused by the failure to make payments required by the 6 contract may be cured within 30 days after the notice of the breach has been received 7 by the purchaser by payment of the sum in default together with the larger of a fee of 8 $50 or five percent of the sum in default. If there are material facts in dispute between 9 the state and the purchaser, the purchaser may submit a written request for a public 10 hearing for the review of the facts within 30 days after the notice of the breach has 11 been received. 12 * Sec. 13. AS 38.05.065(e) is amended to read: 13 (e) Upon [ON] a determination that there has been a breach of the contract 14 based on the administrative record and the evidence presented at a hearing, if a 15 hearing is requested under (d) of this section, the director shall issue a decision 16 [FORECLOSING THE INTEREST OF THE PURCHASER AND] terminating the 17 contract. The obligation to make payments under the contract continues through the 18 date of the director's decision to terminate the contract [FORECLOSE BY THE 19 DIRECTOR]. 20 * Sec. 14. 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 commissioner [DEPARTMENT] shall issue to the purchaser a deed to the 28 land. If full payment is not made within 30 days or the breach is for other than failure 29 to make payment, the decision [FORECLOSES AND] terminates all legal and 30 equitable rights the purchaser has in the land. 31 33-GS2634\S SB0199B -9- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] * Sec. 15. AS 38.05.065(h) is amended to read: 1 (h) The commissioner, after consulting with the Board of Agriculture and 2 Conservation (AS 03.09.010), 3 (1) shall provide that, notwithstanding (a) [AND (b)] of this section, in 4 a contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural 5 uses, the interest rate to be charged on installment payments may not exceed 9.5 6 percent; and 7 (2) may declare a moratorium of up to five years on payments on land 8 sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 9 uses if 10 (A) the commissioner determines that the moratorium is in the 11 best interest of the state; 12 (B) the commissioner certifies and the contract purchaser 13 agrees to perform farm development, crop production, and harvesting, not 14 including land clearing or related activity, requiring the expenditure of 15 amounts equivalent to the payments that would otherwise be made during the 16 moratorium; 17 (C) the sale of the agricultural land takes place after July 1, 18 1979; and 19 (D) the contract purchaser is in compliance with the 20 development plan specified in the purchase contract at the time the purchaser 21 applies for a moratorium under this paragraph and remains in compliance with 22 the development plan during the moratorium; for the payments subject to the 23 moratorium declared under this paragraph, interest payments are subject to the 24 moratorium but interest continues to accrue during the moratorium. 25 * Sec. 16. AS 38.05.065 is amended by adding new subsections to read: 26 (j) If a sale of state land is to be made by means other than as prescribed by 27 AS 38.05.055, the director shall require a person applying to purchase land, an interest 28 in land, or property to submit an earnest money deposit of at least five percent of the 29 purchase price with the application for a contract to purchase land, an interest in land, 30 or property. The earnest money deposit shall be applied toward the purchase price. If 31 33-GS2634\S CSSB 199(TRA) -10- SB0199B New Text Underlined [DELETED TEXT BRACKETED] the applicant fails to enter into a contract to purchase or defaults in the payment of the 1 purchase price, five percent of the purchase price shall be forfeited to the state. 2 (k) Notwithstanding (a) of this section, the commissioner may, upon a best 3 interest finding, determine that the purchase price for a parcel of land with existing 4 improvements valued at greater than $10,000 must be paid in full within 120 days of 5 closing. 6 * Sec. 17. AS 38.05 is amended by adding a new section to read: 7 Sec. 38.05.086. Leases and sales of land for commercial development. (a) 8 For purposes of stimulating economic development in the state, the commissioner may 9 offer land identified under (b) of this section for lease for commercial development by 10 issuing a request for proposals. A lessee eligible under (m) of this section may 11 purchase the leased land. 12 (b) The commissioner may identify land appropriate for commercial 13 development from any or all of the following categories: 14 (1) state land identified or nominated as a qualified opportunity zone 15 under 26 U.S.C. 1400Z-1 and 1400Z-2; 16 (2) state land nominated by the public; a public nomination may not 17 exceed 640 acres in size; 18 (3) any other state land the commissioner deems appropriate for 19 commercial development. 20 (c) If land identified in (b) of this section is classified in a manner that does 21 not allow disposal of the land, the commissioner may classify or reclassify the land 22 under AS 38.04.065 and AS 38.05.300. Before classifying or reclassifying land under 23 this subsection, the commissioner shall provide public notice under AS 38.05.945. 24 Notwithstanding AS 38.05.945(c)(2) and (3), regardless of whether the land is located 25 inside or outside a municipality, the commissioner shall provide notice to a 26 (1) regional corporation if the boundaries of the corporation as 27 established by 43 U.S.C. 1606(a) (sec. 7(a), Alaska Native Claims Settlement Act) 28 encompass the land; 29 (2) village corporation organized under 43 U.S.C. 1607(a) (sec. 8(a), 30 Alaska Native Claims Settlement Act) if the land is within 25 miles of the village for 31 33-GS2634\S SB0199B -11- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] which the corporation was established. 1 (d) Upon a finding under AS 38.05.035(e) that the lease and sale of the land 2 within the areas opened is in the best interests of the state, the commissioner may 3 request in writing proposals to lease land within the areas identified in (b) of this 4 section for commercial development. 5 (e) A person may apply to develop land within the areas by responding to the 6 commissioner's request for proposals and paying an application fee established by 7 regulation. In addition to information requested by the commissioner in the request for 8 proposals, a response to the request for proposals must include the specific 9 (1) type of commercial development proposed; and 10 (2) location, description, and size of the land for the proposed 11 commercial development; the size of land requested in a response to a request for 12 proposals may not exceed 20 acres and must be reasonably compact. 13 (f) The commissioner's request for proposals must be posted on the Alaska 14 Online Public Notice System (AS 44.62.175) for at least 30 consecutive days and must 15 be furnished in electronic format or by mail to each person who received notice of the 16 decision issued under AS 38.05.035(e). 17 (g) A response to the commissioner's request for proposals must be in writing 18 and submitted by the deadline set by the commissioner. The commissioner may reject 19 a proposal that does not meet the requirements of this section or that the commissioner 20 determines in writing is not in the best interests of the state. The commissioner's 21 decision to reject a proposal is subject to appeal or a petition for reconsideration under 22 AS 44.37.011. 23 (h) If the commissioner determines that only one suitable proposal for a 24 specific area of land exists, the commissioner may issue a lease to that person as 25 provided in this section as long as the proposal is in the best interests of the state. If 26 the commissioner determines that there are two or more suitable proposals for the 27 same or overlapping land, the commissioner shall hold a public auction or sealed bid, 28 limited to those persons who submitted proposals for the same or overlapping land, 29 and award the lease to the highest bidder as long as the proposal of the highest bidder 30 is in the best interests of the state. 31 33-GS2634\S CSSB 199(TRA) -12- SB0199B New Text Underlined [DELETED TEXT BRACKETED] (i) If a potential lessee selected under (h) of this section declines the lease 1 offer, the commissioner may begin negotiations with the potential lessee who provided 2 the next highest bid to develop the terms and conditions for a lease. 3 (j) The commissioner shall set, using a method of compensation set out in 4 AS 38.05.073(m), an annual fee for a commercial land lease under this section to 5 ensure that the state receives, for the term of the lease, a fair return for the use of the 6 land granted by the lease. 7 (k) A lease under this section may only be assigned by a lessee at the 8 discretion of the director. The initial term of the lease may not be more than five years. 9 At the director's discretion and only if the lease is in good standing, the lease may 10 renewed for one additional term of not more than five years. The director may extend 11 a lease in good standing for up to two years beyond the renewal term if the director 12 determines the extension will facilitate sale of the parcel to the lessee. 13 (l) The commissioner may terminate a commercial land lease under this 14 section before the expiration of the lease for a breach of the terms of the lease, 15 including a failure to use the land in a manner required by the lease. Upon expiration 16 of the term of a lease or the termination of the lease before expiration, improvements 17 to or personal property on the land subject to the lease shall be managed in the manner 18 required by AS 38.05.090. 19 (m) At any time during the lease, a lessee in good standing may submit an 20 application to the department to purchase all or a portion of the land leased under this 21 section for the fair market value of the land at the time of purchase. The lessee shall 22 pay an application fee provided by regulation. 23 (n) If an application to purchase land under (m) of this section is approved, 24 before closing, the lessee, at the lessee's expense, shall have the parcel appraised and 25 surveyed in a manner acceptable to the department. 26 (o) An eligible lessee under (m) of this section may apply the amount of the 27 lease payments made under the lease to the purchase price of the land. Other amounts 28 paid, including fees, penalties, survey costs, and appraisal costs, may not be applied to 29 the purchase price of the land. 30 (p) If an application to purchase land under (m) of this section is denied, the 31 33-GS2634\S SB0199B -13- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] lessee may continue to hold the lease according to the terms of the lease, and may 1 reapply to purchase the land. A subsequent application to purchase the land must 2 address the reasons the previous application was denied. 3 (q) The commissioner shall adopt regulations under AS 44.62 (Administrative 4 Procedure Act) to implement this section. Regulations adopted under this subsection 5 must, at a minimum, address 6 (1) the application procedures for a commercial land lease or sale 7 under this section; 8 (2) the auction or sealed bid process to be used, if necessary, under (h) 9 of this section; 10 (3) the terms and conditions that may be included in a commercial land 11 lease under this section; 12 (4) the method for resolving competitive bidding disputes and issues; 13 (5) the procedure for requesting proposals; 14 (6) the criteria for assessing proposals; and 15 (7) any administrative fees. 16 (r) The commissioner shall reserve easements and rights-of-way on and across 17 land made available for commercial development under this section after providing 18 regional corporations, village corporations, tribes, municipal governments, and other 19 interested parties an opportunity to review and comment on the proposed reserved 20 easements and rights-of-way, and an opportunity to appeal a decision under 21 AS 44.37.011. The commissioner shall reserve easements and rights-of-way under this 22 section for trails that have an established history of use for commerce, recreation, 23 transportation, or providing access to a traditional outdoor activity. In this subsection, 24 "traditional outdoor activity" has the meaning given in AS 38.04.200. 25 (s) Before leasing or disposing of land under this section, the commissioner 26 shall provide notice under AS 38.05.945 and prepare a best interest finding in writing 27 in accordance with AS 38.05.035(e). In making a best interest finding under this 28 subsection, the commissioner shall consider the effects of the lease or sale on 29 subsistence uses, fish and wildlife habitat and populations and their uses, and 30 historical and cultural resources. 31 33-GS2634\S CSSB 199(TRA) -14- SB0199B New Text Underlined [DELETED TEXT BRACKETED] (t) If the commissioner identifies land appropriate for commercial 1 development under (b)(1) of this section, the commissioner shall prepare a report that 2 describes the municipal and state government services that the commissioner 3 anticipates would be required in the identified area if the land is commercially 4 developed and the municipal and state tax revenue that would be required to provide 5 those services. The commissioner shall submit each report prepared under this 6 subsection in a calendar year to the senate secretary and chief clerk of the house of 7 representatives on or before the first day of each regular session of the legislature the 8 following year and shall notify the legislature that the reports are available. 9 (u) In this section, "good standing" means that a lessee is not in default on any 10 material term of a lease under this section and has satisfied all the development 11 requirements of the lease. 12 * Sec. 18. AS 38.05.321(d) is amended to read: 13 (d) For state land classified as agricultural land that is conveyed under (a) of 14 this section, 15 (1) the commissioner may require the landowner to cooperate with the 16 appropriate soil and water conservation district under AS 41.10 in the development 17 and implementation of soil conservation plans as authorized by AS 41.10.110(6); 18 (2) as a condition of the conveyance, the commissioner may not 19 require preparation and implementation of a schedule of planned agricultural 20 development or a farm development plan specified in a land purchase contract unless 21 the commissioner permits modification of a plan in cases of economic hardship or 22 other extenuating circumstances; 23 (3) the commissioner may not 24 (A) limit the right of the landowner to use the land and 25 improvements for purposes that are consistent and do not interfere 26 [INCIDENTAL TO AND NOT INCONSISTENT] with the primary use of the 27 land for agricultural purposes; 28 (B) except as provided by (i) of this section, limit the right of a 29 landowner to construct housing for the landowner and farm laborers, to 30 construct improvements for animals, or to construct improvements that are 31 33-GS2634\S SB0199B -15- CSSB 199(TRA) New Text Underlined [DELETED TEXT BRACKETED] reasonably required for or related to agricultural use on the original parcel and 1 on additional subdivided parcels, not to exceed the limits and restrictions set by 2 (a)(2) of this section; and 3 (C) limit the right of the landowner to subdivide and convey 4 the land if the resulting parcels are not in violation of the limits and restrictions 5 set out in (a)(2) of this section. 6 * Sec. 19. AS 38.05.965 is amended by adding a new paragraph to read: 7 (29) "public auction" means a public oral outcry auction or a public 8 online auction. 9 * Sec. 20. AS 38.05.065(b) is repealed. 10 * Sec. 21. This Act takes effect immediately under AS 01.10.070(c). 11