Alaska 2025-2026 Regular Session

Alaska Senate Bill SB128 Compare Versions

Only one version of the bill is available at this time.

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11	11	SENATE BILL NO. 128
12	12
13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY THE SENATE RULES COMMITTEE
18	18
19	19	Introduced: 3/12/25
20	20	Referred: Resources, Finance
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act establishing the Department of Agriculture; relating to the establishment of the 1
28	28	Department of Agriculture; transferring functions of the Department of Natural 2
29	29	Resources related to agriculture to the Department of Agriculture; and providing for an 3
30	30	effective date." 4
31	31	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
32	32	* Section 1. AS 03.05.010 is amended to read: 6
33	33	Sec. 03.05.010. Powers and duties of commissioner of agriculture
34	34	7
35	35	[NATURAL RESOURCES]. (a) The commissioner of agriculture [NATURAL 8
36	36	RESOURCES] shall 9
37	37	(1) direct, administer, and supervise promotional and experimental 10
38	38	work, extension services, and agricultural projects for the purpose of promoting and 11
39	39	developing commercial and noncommercial agricultural industry in the state, 12
40	40	including horticulture, dairying, cattle raising, fur farming, grain production, vegetable 13
41	41	production, and agricultural products; 14 34-LS0694\N
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45	45	(2) procure and preserve all information pertaining to developing the 1
46	46	agricultural industry in the state and disseminate that information to the public; 2
47	47	(3) assist prospective settlers and others to engage in the agricultural 3
48	48	industry in the state by providing information about activities and programs essential 4
49	49	to developing the agricultural industry and areas in the state that are suitable for 5
50	50	agriculture; 6
51	51	(4) review the marketing, financing, transportation, and development 7
52	52	of agricultural products in the state, with special emphasis on local production, and 8
53	53	negotiate for the marketing of agricultural products of the state with federal and state 9
54	54	agencies operating in the state; 10
55	55	(5) regulate and control the entry in the state and the transportation, 11
56	56	sale, or use in the state of plants, seeds, vegetables, shell eggs, fruits and berries, 12
57	57	nursery stock, animal feeds, remedies and mineral supplements, fertilizers, and 13
58	58	agricultural chemicals to prevent the spread of pests, diseases, or toxic substances 14
59	59	injurious to the public interest and protect the agricultural industry against fraud, 15
60	60	deception, and misrepresentation; for purposes of this paragraph, the commissioner 16
61	61	may require registration, inspection, and testing and may establish procedures and 17
62	62	fees; 18
63	63	(6) regulate the farming of elk in a manner similar to the manner in 19
64	64	which the commissioner regulates domestic animals and livestock, to the extent that is 20
65	65	appropriate; 21
66	66	(7) adopt regulations relating to industrial hemp, including regulations 22
67	67	that 23
68	68	(A) specify approved sources or varieties of hemp seed to be 24
69	69	grown, sold, or offered for sale by an individual registered to produce 25
70	70	industrial hemp; 26
71	71	(B) require testing, paid for by the registrant, for delta-9-27
72	72	tetrahydrocannabinol concentration following harvest of the industrial hemp; 28
73	73	(C) provide for general production practices to avoid the 29
74	74	unintended distribution of industrial hemp seeds by registrants into 30
75	75	nonagricultural land; 31 34-LS0694\N
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79	79	(D) establish isolation distances for the production of industrial 1
80	80	hemp; in this subparagraph, "isolation distance" means the minimum 2
81	81	separation required between two or more varieties of the plant (genus) 3
82	82	Cannabis for the purpose of keeping the seed pure; 4
83	83	(E) permit manufacturing and retail sale of industrial hemp and 5
84	84	products made from industrial hemp; 6
85	85	(F) establish a registration and renewal procedure for a 7
86	86	participant in the industrial hemp program developed under AS 03.05.076; 8
87	87	(8) submit a list of individuals registered to produce industrial hemp 9
88	88	under AS 03.05.076 and the expiration dates of the registrations to the Marijuana 10
89	89	Control Board and the Department of Public Safety; 11
90	90	(9) regulate the labeling of seed that does not comply with the 12
91	91	requirements of AS 03.20.130. 13
92	92	(b) To carry out the requirements of this title, the commissioner of 14
93	93	agriculture [NATURAL RESOURCES] may issue orders, regulations, quarantines, 15
94	94	and embargoes relating to 16
95	95	(1) examination and inspection of premises containing products, 17
96	96	articles, and commodities carrying pests; 18
97	97	(2) establishment of quarantines for eradication of pests; 19
98	98	(3) establishment of standards and labeling requirements pertaining to 20
99	99	the sale of agricultural and vegetable seeds; 21
100	100	(4) tests and analyses that may be made and hearings that may be held 22
101	101	to determine whether the commissioner will issue a stop order or quarantine; 23
102	102	(5) cooperation with federal and other state agencies; and 24
103	103	(6) industrial hemp. 25
104	104	(c) The commissioner of agriculture [NATURAL RESOURCES] shall notify 26
105	105	the Marijuana Control Board and the Department of Public Safety when the 27
106	106	commissioner issues a stop order. The commissioner of agriculture [NATURAL 28
107	107	RESOURCES] 29
108	108	(1) shall issue a stop order to a person 30
109	109	(A) not registered under AS 03.05.076 who is found to be 31 34-LS0694\N
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113	113	producing a plant with delta-9-tetrahydrocannabinol; or 1
114	114	(B) registered under AS 03.05.076 who is found to be 2
115	115	producing a plant with delta-9-tetrahydrocannabinol over one percent; and 3
116	116	(2) may issue a stop order to a person registered under AS 03.05.076 4
117	117	who is found to be producing a plant with delta-9-tetrahydrocannabinol between 0.3 5
118	118	percent and one percent. 6
119	119	(d) The commissioner of agriculture [NATURAL RESOURCES] may sell 7
120	120	promotional merchandise related to the "Alaska Grown" trademark and may charge or 8
121	121	collect a fee for the sale of promotional merchandise related to the "Alaska Grown" 9
122	122	trademark. The commissioner may issue a license and charge a license fee for the sale 10
123	123	of promotional merchandise related to the "Alaska Grown" trademark. The 11
124	124	commissioner shall price merchandise sold by the commissioner under this subsection 12
125	125	in a manner that ensures a reasonable monetary return to the state. To the extent 13
126	126	practicable, the commissioner shall sell only merchandise produced or manufactured 14
127	127	in the United States that, subject to AS 36.30, is procured from either an Alaska bidder 15
128	128	or a person that employs prisoners under AS 33.30.191(b). 16
129	129	* Sec. 2. AS 03.05.027(a) is amended to read: 17
130	130	(a) The commissioner of agriculture [NATURAL RESOURCES] shall 18
131	131	employ or appoint a state coordinator for noxious weed, invasive plant, and 19
132	132	agricultural pest management and education. 20
133	133	* Sec. 3. AS 03.05.040(b) is amended to read: 21
134	134	(b) In this section, "commissioner" means commissioner of agriculture 22
135	135	[NATURAL RESOURCES] with respect to those products over which t he 23
136	136	commissioner of agriculture [NATURAL RESOURCES] has jurisdiction under this 24
137	137	title, and the commissioner of environmental conservation with respect to those 25
138	138	products over which the commissioner of environmental conservation has jurisdiction 26
139	139	under this title. 27
140	140	* Sec. 4. AS 03.05.050(b) is amended to read: 28
141	141	(b) In this section, "commissioner" means commissioner of agriculture 29
142	142	[NATURAL RESOURCES] with respect to those products over which t he 30
143	143	commissioner of agriculture [NATURAL RESOURCES] has jurisdiction under this 31 34-LS0694\N
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147	147	title, and the commissioner of environmental conservation with respect to those 1
148	148	products over which the commissioner of environmental conservation has jurisdiction 2
149	149	under this title. 3
150	150	* Sec. 5. AS 03.05.075(a) is amended to read: 4
151	151	(a) Elk may be raised and bred as domestic stock for commercial purposes, 5
152	152	including the sale of meat, by a person who lawfully owns the elk and who holds a 6
153	153	current valid elk farming license. The commissioner of agriculture [NATURAL 7
154	154	RESOURCES] may issue an elk farming license for the farming of elk to a person 8
155	155	who applies on a form provided by the commissioner, pays the biennial elk farming 9
156	156	license fee, and proves to the satisfaction of the commissioner that the person lawfully 10
157	157	owns the elk, intends to raise and breed elk, and possesses facilities for maintaining 11
158	158	the elk under positive control. Before issuing or renewing an elk farming license, the 12
159	159	commissioner shall conduct a physical inspection of the elk farming facilities and 13
160	160	determine that the facilities are in good repair and comply with the fencing standards 14
161	161	established under (d) of this section. In this subsection, "lawfully owns" means 15
162	162	ownership that was obtained without violating a state or federal law or regulation or a 16
163	163	condition of a license or permit issued with respect to elk. 17
164	164	* Sec. 6. AS 03.05.075(b) is amended to read: 18
165	165	(b) The commissioner of agriculture [NATURAL RESOURCES] shall 19
166	166	provide to the Department of Fish and Game a copy of each application for an elk 20
167	167	farming license received by the commissioner and each elk farming license issued by 21
168	168	the commissioner. 22
169	169	* Sec. 7. AS 03.05.075(d) is amended to read: 23
170	170	(d) The commissioner of agriculture [NATURAL RESOURCES] shall 24
171	171	establish fencing standards for elk farming facilities to maintain elk under positive 25
172	172	control. Proposed fencing standards shall be submitted to the commissioner of fish and 26
173	173	game for review before the standards are adopted or amended. 27
174	174	* Sec. 8. AS 03.05.075(e) is amended to read: 28
175	175	(e) Notwithstanding other provisions of law, a license or permit is not required 29
176	176	from the Department of Fish and Game in order to import, export, or possess elk for 30
177	177	the purpose of elk farming. Elk imported, exported, or possessed for the purpose of elk 31 34-LS0694\N
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181	181	farming are subject to the provisions of this title and regulations adopted under this 1
182	182	title by the commissioner of agriculture [NATURAL RESOURCES] or the 2
183	183	commissioner of environmental conservation for domestic animals and livestock, to 3
184	184	the extent they are made applicable to elk by the commissioners. 4
185	185	* Sec. 9. AS 03.05.090(a) is amended to read: 5
186	186	(a) A person who violates a provision of this chapter or a regulation, order, or 6
187	187	quarantine made under authority of this chapter, or violates a provision of a permit 7
188	188	issued under this chapter, or sells seeds failing to meet the labeling requirements, 8
189	189	standards, and tests provided for by regulation of the commissioner of agriculture 9
190	190	[NATURAL RESOURCES] or the commissioner of environmental conservation is 10
191	191	guilty of a class A misdemeanor for each offense. 11
192	192	* Sec. 10. AS 03.09.020(a) is amended to read: 12
193	193	(a) The commissioner of [DIRECTOR OF THE DIVISION OF THE 13
194	194	DEPARTMENT WITH RESPONSIBILITY FOR] agriculture or the commissioner's 14
195	195	designee shall serve as the director of the Board of Agriculture and Conservation. The 15
196	196	director may employ staff and, as directed by the board, is responsible for the daily 16
197	197	operations of the agricultural revolving loan fund (AS 03.10.040). 17
198	198	* Sec. 11. AS 03.20.140 is amended to read: 18
199	199	Sec. 03.20.140. Online publication of noncommercial giving or exchanging 19
200	200	of seed. A person involved in noncommercial giving or exchanging of seed under 20
201	201	AS 03.20.110 and 03.20.120 may register online with the department under 21
202	202	AS 44.38.020(b) [AS 44.37.030(b)] and submit to the department information, 22
203	203	including the person's name, telephone number, and electronic mail address, and the 23
204	204	location where the person gives or exchanges seed, for publication on the department's 24
205	205	Internet website. 25
206	206	* Sec. 12. AS 03.20.200(a) is amended to read: 26
207	207	(a) The [DIVISION OF THE] department [WITH RESPONSIBILITY FOR 27
208	208	AGRICULTURE] shall establish a forgivable loan program in regulation, under which 28
209	209	a recipient's loan may be forgiven by the department if the recipient implements a 29
210	210	business plan approved by the department to develop or make improvements to the 30
211	211	recipient's farm as described in (d) of this section. A loan may be used by a recipient 31 34-LS0694\N
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215	215	to fund investments in agriculture to build resiliency in the state's food supply. The 1
216	216	forgivable loan program must allow a loan to be forgiven if the recipient implements 2
217	217	the approved business plan and demonstrates a subsequent increase in food production 3
218	218	and distribution. 4
219	219	* Sec. 13. AS 03.22.010 is amended to read: 5
220	220	Sec. 03.22.010. Establishment of plant materials center. The Department of 6
221	221	Agriculture [NATURAL RESOURCES], in cooperation with the college or 7
222	222	department of the University of Alaska responsible for the Agricultural and Forestry 8
223	223	Experiment Station, shall establish and maintain a plant materials center. 9
224	224	* Sec. 14. AS 03.22.040 is amended to read: 10
225	225	Sec. 03.22.040. Personnel. The department shall ensure that competent 11
226	226	professional, secretarial, and subprofessional personnel necessary to carry on the work 12
227	227	of the center are employed. The administrator of the plant materials center is a joint 13
228	228	appointment between the Department of Agriculture [NATURAL RESOURCES] and 14
229	229	the college or department of the University of Alaska responsible for the Agricultural 15
230	230	and Forestry Experiment Station. 16
231	231	* Sec. 15. AS 03.47.020 is amended to read: 17
232	232	Sec. 03.47.020. Importation of bees. All bees imported into the state shall be 18
233	233	accompanied by a health certificate that states that the bees come from an apiary 19
234	234	apparently free of bee diseases and that is signed by an apiary inspector determined to 20
235	235	be qualified by the department [DIVISION]. 21
236	236	* Sec. 16. AS 03.47.030(a) is amended to read: 22
237	237	(a) The department [DIVISION] shall investigate reported cases of diseased 23
238	238	bees and cases of diseased bees discovered by the department [DIVISION]. 24
239	239	* Sec. 17. AS 03.47.030(b) is amended to read: 25
240	240	(b) The department [DIVISION] shall take action necessary to prevent the 26
241	241	spread of bee diseases. Bees or used beekeeping equipment found to contain the 27
242	242	causative organisms of American foulbrood (Bacillus larvae) or European foulbrood 28
243	243	(Streptococcus pluton) shall be immediately quarantined and treated within five days 29
244	244	by 30
245	245	(1) chamber fumigation using ethylene oxide or other gases approved 31 34-LS0694\N
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249	249	by the department [DIVISION]; 1
250	250	(2) sterilization by boiling in lyewater for at least 15 minutes; or 2
251	251	(3) destruction of bees, bee combs, and frames by burning followed by 3
252	252	burying 18 inches deep. 4
253	253	* Sec. 18. AS 03.47.030(d) is amended to read: 5
254	254	(d) A quarantine imposed under this section may not be removed until infected 6
255	255	bees and used beekeeping equipment are destroyed or the department [DIVISION] 7
256	256	determines through testing that the used beekeeping equipment is free of the disease. 8
257	257	* Sec. 19. AS 03.47.030(e) is amended to read: 9
258	258	(e) The department [DIVISION] shall adopt regulations necessary to carry 10
259	259	out the purposes of this chapter. 11
260	260	* Sec. 20. AS 03.90.010 is amended to read: 12
261	261	Sec. 03.90.010. Definitions. In this title, unless otherwise indicated, 13
262	262	(1) "commissioner" means the commissioner of agriculture 14
263	263	[NATURAL RESOURCES]; 15
264	264	(2) "department" means the Department of Agriculture [NATURAL 16
265	265	RESOURCES]. 17
266	266	* Sec. 21. AS 09.45.235(a) is amended to read: 18
267	267	(a) An agricultural facility or an agricultural operation at an agricultural 19
268	268	facility is not and does not become a private nuisance as a result of a changed 20
269	269	condition that exists in the area of the agricultural facility if the agricultural facility 21
270	270	was not a nuisance at the time the agricultural facility began agricultural operations. 22
271	271	For purposes of this subsection, the time an agricultural facility began agricultural 23
272	272	operations refers to the date on which any type of agricultural operation began on that 24
273	273	site regardless of any subsequent expansion of the agricultural facility or adoption of 25
274	274	new technology. An agricultural facility or an agricultural operation at an agricultural 26
275	275	facility is not a private nuisance if the governing body of the local soil and water 27
276	276	conservation district advises the commissioner of agriculture in writing that the 28
277	277	facility or operation is consistent with a soil conservation plan developed and 29
278	278	implemented in cooperation with the district. 30
279	279	* Sec. 22. AS 14.40.450 is amended to read: 31 34-LS0694\N
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283	283	Sec. 14.40.450. Governor authorized to make certificates to obtain federal 1
284	284	grants of money. The governor is authorized to make all certificates required by law 2
285	285	or the regulations of the United States Department of Agriculture or of the United 3
286	286	States Department of the Interior necessary to be made to entitle the state to grants of 4
287	287	money for the benefits of state colleges of agriculture and mechanic arts authorized 5
288	288	under any Act of Congress. 6
289	289	* Sec. 23. AS 16.20.310(c) is amended to read: 7
290	290	(c) The commissioner shall develop and amend the game management plan to 8
291	291	coordinate, as closely as possible, the game management plan with the activities of the 9
292	292	Department of Agriculture [NATURAL RESOURCES] relating to the Big Delta 10
293	293	agricultural development project. 11
294	294	* Sec. 24. AS 27.19.030(b) is amended to read: 12
295	295	(b) In reviewing a reclamation plan for state, federal, or municipal land under 13
296	296	(a) of this section, the commissioner may consider, after consultation with the 14
297	297	commissioners of environmental conservation, agriculture, and fish and game and 15
298	298	with the concurrence of the miner and landowner, uses to which the land may be put 16
299	299	after mining has been completed, including trails, lakes, recreation sites, fish and 17
300	300	wildlife enhancement, commercial, and agriculture uses. 18
301	301	* Sec. 25. AS 37.05.146(c)(78) is amended to read: 19
302	302	(78) fees collected by the Department of Agriculture [NATURAL 20
303	303	RESOURCES] under AS 03.05.010(d); 21
304	304	* Sec. 26. AS 38.04.020(g) is amended to read: 22
305	305	(g) After July 1 of each year, the commissioner shall direct the expenditure of 23
306	306	money appropriated for the disposal of land in response to requests made under (e) 24
307	307	and (f) of this section for the following: 25
308	308	(1) land designated as suitable for homestead disposal shall be 26
309	309	classified and surveyed under this chapter and AS 38.05 and made available for 27
310	310	staking and lease under AS 38.09; 28
311	311	(2) land designated as suitable for subdivision and homesite disposal 29
312	312	shall be surveyed, subdivided, classified, and disposed of under this chapter, 30
313	313	AS 38.05, and AS 38.08; 31 34-LS0694\N
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317	317	(3) land designated commercial, industrial, or suitable for other 1
318	318	disposal shall be sold under AS 38.05.055 or 38.05.057; 2
319	319	(4) land designated agricultural shall be disposed of under 3
320	320	AS 38.05.055 - 38.05.065, except the commissioner of agriculture [BOARD OF 4
321	321	AGRICULTURE AND CONSERVATION (AS 03.09.010)] shall receive notice of 5
322	322	each proposed disposal and be given an opportunity to comment before the final 6
323	323	disposal decision is made. 7
324	324	* Sec. 27. AS 38.04.030 is amended to read: 8
325	325	Sec. 38.04.030. Land availability programs. Programs that may be used by 9
326	326	the director to make the state's land surface available for private use under 10
327	327	AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 11
328	328	estate, including conveyance of agricultural use rights; leasing; open-to-entry; 12
329	329	homesiting; homesteading; permitting for construction and occupation of cabins in 13
330	330	isolated locations on land retained in state ownership; and other methods as provided 14
331	331	by law. However, agricultural use rights may be conveyed only after consulting with 15
332	332	the commissioner of agriculture [BOARD OF AGRICULTURE AND 16
333	333	CONSERVATION]. 17
334	334	* Sec. 28. AS 38.05.020(b) is amended to read: 18
335	335	(b) The commissioner may 19
336	336	(1) establish reasonable procedures and adopt reasonable regulations 20
337	337	necessary to carry out this chapter and, whenever necessary, issue directives or orders 21
338	338	to the director to carry out specific functions and duties; regulations adopted by the 22
339	339	commissioner shall be adopted under AS 44.62 (Administrative Procedure Act); 23
340	340	orders by the commissioner classifying land, issued after January 3, 1959, are not 24
341	341	required to be adopted under AS 44.62 (Administrative Procedure Act); 25
342	342	(2) enter into agreements considered necessary to carry out the 26
343	343	purposes of this chapter, including agreements with federal and state agencies; 27
344	344	(3) review any order or action of the director; 28
345	345	(4) exercise the powers and do the acts necessary to carry out the 29
346	346	provisions and objectives of this chapter; 30
347	347	(5) notwithstanding the provisions of any other section of this chapter, 31 34-LS0694\N
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351	351	grant an extension of the time within which payments due on any exploration license, 1
352	352	lease, or sale of state land, minerals, or materials may be made, including payment of 2
353	353	rental and royalties, on a finding that compliance with the requirements is or was 3
354	354	prevented by reason of war, riots, or acts of God; 4
355	355	(6) classify tracts for agricultural uses; 5
356	356	(7) after consulting with the commissioner of agriculture [BOARD 6
357	357	OF AGRICULTURE AND CONSERVAT ION (AS 03.09.010)], waive, postpone, or 7
358	358	otherwise modify the development requirements of a contract for the sale of 8
359	359	agricultural land if 9
360	360	(A) the land is inaccessible by road; or 10
361	361	(B) transportation, marketing, and development costs render 11
362	362	the required development uneconomic; 12
363	363	(8) reconvey or relinquish land or an interest in land to the federal 13
364	364	government if 14
365	365	(A) the land is described in an amended application for an 15
366	366	allotment under 43 U.S.C. 1617; and 16
367	367	(B) the reconveyance or relinquishment is 17
368	368	(i) for the purposes provided in 43 U.S.C. 1617; and 18
369	369	(ii) in the best interests of the state; 19
370	370	(9) lead and coordinate all matters relating to the state's review and 20
371	371	authorization of resource development projects; 21
372	372	(10) enter into commercial agreements with a duration of not more 22
373	373	than two years for project services related to a North Slope natural gas project; 23
374	374	(11) in consultation with the commissioner of revenue, participate in 24
375	375	the negotiation of agreements that include balancing, marketing, disposition of natural 25
376	376	gas, and offtake and contracts and development of terms for inclusion in those 26
377	377	proposed agreements and contracts associated with a North Slope natural gas project; 27
378	378	an agreement or contract negotiated under this paragraph to which the state is a party 28
379	379	is not effective unless the legislature authorizes the governor to execute the agreement 29
380	380	or contract; 30
381	381	(12) enter into confidentiality agreements to maintain the 31 34-LS0694\N
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385	385	confidentiality of information related to contract negotiations and contract 1
386	386	implementation associated with a North Slope natural gas project; information under 2
387	387	those confidentiality agreements is not subject to AS 40.25.100 - 40.25.295 (Alaska 3
388	388	Public Records Act), except that 4
389	389	(A) the terms of a proposed contract that the commissioner 5
390	390	presents to the legislature for the purpose of obtaining authorization for the 6
391	391	governor to execute are not confidential and must be made available to the 7
392	392	public at least 90 days before the proposed effective date for the terms; and 8
393	393	(B) the commissioner may share confidential information 9
394	394	obtained under this paragraph with members of the legislature, their agents, 10
395	395	and contractors on request under confidentiality agreements, either in 11
396	396	committees held in executive session or individually; 12
397	397	(13) consult with the Alaska Gasline Development Corporation in the 13
398	398	development of agreements or contracts under (10) or (11) of this subsection for 14
399	399	project services related to a gas treatment plant, pipeline, liquefaction facility, marine 15
400	400	terminal, or marine transportation services necessary to transport natural gas to 16
401	401	market; 17
402	402	(14) in consultation with the commissioner of revenue, take custody of 18
403	403	gas delivered to the state under AS 43.55.014(b) and manage the project services and 19
404	404	disposition and sale of that gas; 20
405	405	(15) exercise the powers and do the acts necessary to carry out the 21
406	406	provisions and objectives of AS 43.90 that relate to this chapter. 22
407	407	* Sec. 29. AS 38.05.035(b) is amended to read: 23
408	408	(b) The director may 24
409	409	(1) delegate the administrative duties, functions, or powers imposed 25
410	410	upon the director to a responsible employee in the division; 26
411	411	(2) grant preference rights for the lease or purchase of state land 27
412	412	without competitive bid in order to correct errors or omissions of a state or federal 28
413	413	administrative agency when inequitable detriment would otherwise result to a diligent 29
414	414	claimant or applicant due to situations over which the claimant or applicant had no 30
415	415	control; the exercise of this discretionary power operates only to divest the state of its 31 34-LS0694\N
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419	419	title to or interests in land and may be exercised only 1
420	420	(A) with the express approval of the commissioner; and 2
421	421	(B) if the application for the preference right is filed with the 3
422	422	director within three years from 4
423	423	(i) the occurrence of the error or omission; 5
424	424	(ii) the date of acquisition by the state of the land; or 6
425	425	(iii) the date of a court decision or settlement nullifying 7
426	426	a disposal of state land; 8
427	427	(3) grant a preference right to a claimant who shows bona fide 9
428	428	improvement of state land or of federal land subsequently acquired by the state and 10
429	429	who has in good faith sought to obtain title to the land but who, through error or 11
430	430	omission of others occurring within the three years before (A) the application for the 12
431	431	preference right, (B) the date of acquisition by the state of the land, or (C) the date of a 13
432	432	court decision or settlement nullifying a disposal of state land, has been denied title to 14
433	433	it; upon a showing satisfactory to the commissioner, the claimant may lease or 15
434	434	purchase the land at the price set on the date of original entry on the land or, if a price 16
435	435	was not set at that time at a price determined by the director to fairly represent the 17
436	436	value of unimproved land at the time the claim was established, but in no event less 18
437	437	than the cost of administration including survey; the error or omission of a predecessor 19
438	438	in interest or an agent, administrator, or executor that has clearly prejudiced the 20
439	439	claimant may be the basis for granting a preference right; 21
440	440	(4) sell land by lottery for less than the appraised value when, in the 22
441	441	judgment of the director, past scarcity of land suitable for private ownership in any 23
442	442	particular area has resulted in unrealistic land values; 24
443	443	(5) when the director determines it is in the best interest of the state 25
444	444	and will avoid injustice to a person or the heirs or devisees of a person, dispose of 26
445	445	land, by direct negotiation to that person who presently uses and who used and made 27
446	446	improvements to that land before January 3, 1959, or to the heirs or devisees of the 28
447	447	person; the amount paid for the land shall be its fair market value on the date that the 29
448	448	person first entered the land, as determined by the director; a parcel of land disposed 30
449	449	of under this paragraph shall be of a size consistent with the person's prior use, but 31 34-LS0694\N
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453	453	may not exceed five acres; 1
454	454	(6) after consulting with the commissioner of agriculture [BOARD 2
455	455	OF AGRICULTURE AND CONSERVAT ION (AS 03.09.010)], dispose of an interest 3
456	456	in land limited to use for agricultural purposes by lottery; 4
457	457	(7) convey to an adjoining landowner for its fair market value a 5
458	458	remnant of land that the director considers unmanageable or a parcel of land created 6
459	459	by a highway right-of-way alignment or realignment, or a parcel created by the 7
460	460	vacation of a state-owned right-of-way if 8
461	461	(A) the director determines that it is in the best interests of the 9
462	462	state; 10
463	463	(B) the parcel 11
464	464	(i) does not exceed the minimum lot size under an 12
465	465	applicable zoning code; or 13
466	466	(ii) is smaller than 20 acres and is completely enclosed 14
467	467	by property owned by the adjacent landowner; and 15
468	468	(C) the director and the platting authority having land use 16
469	469	planning jurisdiction agree that conveyance of the parcel to the adjoining 17
470	470	landowner will result in boundaries that are convenient for the use of the land 18
471	471	by the landowner and compatible with municipal land use plans; 19
472	472	(8) for good cause extend for up to 90 days the time for rental or 20
473	473	installment payments by a lessee or purchaser of state land under this chapter if 21
474	474	reasonable penalties and interest set by the director are paid; 22
475	475	(9) quitclaim land or an interest in land to the federal government on a 23
476	476	determination that the land or the interest in land was wrongfully or erroneously 24
477	477	conveyed by the federal government to the state; 25
478	478	(10) negotiate the sale or lease of state land at fair market value to a 26
479	479	person who acquired by contract, purchase, or lease rights to improvements on the 27
480	480	land from another state agency or who leased the land from another state agency. 28
481	481	* Sec. 30. AS 38.05.057(c) is amended to read: 29
482	482	(c) The commissioner, after consulting with the commissioner of agriculture 30
483	483	[BOARD OF AGRICULTURE AND C ONSERVATION (AS 03.09.010)], may adopt 31 34-LS0694\N
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487	487	regulations under AS 44.62 (Administrative Procedure Act) [THE 1
488	488	ADMINISTRATIVE PROCEDURE ACT (A S 44.62)] that specify qualifications for 2
489	489	lottery participants different from those specified in (b) of this section if 3
490	490	(1) an interest in land limited to agricultural purposes is to be sold 4
491	491	under (a) of this section; 5
492	492	(2) the sale is a part of a program to develop agricultural land as a 6
493	493	renewable resource of the state; and 7
494	494	(3) the regulations include residency, skill, experience, and financial 8
495	495	requirements necessary to qualify persons who are competent and financially able to 9
496	496	develop the land as a successful agricultural enterprise. 10
497	497	* Sec. 31. AS 38.05.059 is amended to read: 11
498	498	Sec. 38.05.059. Sale of agricultural land. The commissioner, after consulting 12
499	499	with the commissioner of agriculture [BOARD OF AGRICULTURE AND 13
500	500	CONSERVATION (AS 03.09.010)], may provide for the sale of land classified under 14
501	501	AS 38.05.020(b)(6) for agricultural uses in parcels or tracts described by aliquot parts. 15
502	502	The parcels or tracts are subject to state subdivision requirements and municipal 16
503	503	ordinances. Money from a sale of agricultural land shall be separately accounted for 17
504	504	and may be appropriated to the agricultural revolving loan fund (AS 03.10.040). 18
505	505	* Sec. 32. AS 38.05.065(h) is amended to read: 19
506	506	(h) The commissioner, after consulting with the commissioner of agriculture 20
507	507	[BOARD OF AGRICULTURE AND CONSERVATION (AS 03.09.010)], 21
508	508	(1) shall provide that, notwithstanding (a) and (b) of this section, in a 22
509	509	contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses, 23
510	510	the interest rate to be charged on installment payments may not exceed 9.5 percent; 24
511	511	and 25
512	512	(2) may declare a moratorium of up to five years on payments on land 26
513	513	sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 27
514	514	uses if 28
515	515	(A) the commissioner determines that the moratorium is in the 29
516	516	best interest of the state; 30
517	517	(B) the commissioner certifies and the contract purchaser 31 34-LS0694\N
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521	521	agrees to perform farm development, crop production, and harvesting, not 1
522	522	including land clearing or related activity, requiring the expenditure of 2
523	523	amounts equivalent to the payments that would otherwise be made during the 3
524	524	moratorium; 4
525	525	(C) the sale of the agricultural land takes place after July 1, 5
526	526	1979; and 6
527	527	(D) the contract purchaser is in compliance with the 7
528	528	development plan specified in the purchase contract at the time the purchaser 8
529	529	applies for a moratorium under this paragraph and remains in compliance with 9
530	530	the development plan during the moratorium; for the payments subject to the 10
531	531	moratorium declared under this paragraph, interest payments are subject to the 11
532	532	moratorium but interest continues to accrue during the moratorium. 12
533	533	* Sec. 33. AS 38.05.069(a) is amended to read: 13
534	534	(a) After consulting with the commissioner of agriculture [BOARD OF 14
535	535	AGRICULTURE AND CONSERVATION (AS 03.09.010)], on a determination that 15
536	536	the highest and best use of unoccupied land is for agricultural purposes and that it is in 16
537	537	the best interests of the state to sell or lease the land, the commissioner shall grant to 17
538	538	an Alaska resident owning and using or leasing and using land for agricultural 18
539	539	purposes a first option to purchase or lease the unoccupied land situated adjacent to 19
540	540	land presently held by the Alaska resident for the amount of the high bid received at 20
541	541	public auction or by sealed bid. If more than one Alaska resident qualifies for a first 21
542	542	option under this section, eligibility for the first option shall be determined by lot, and 22
543	543	the option must be exercised on the conclusion of the public auction or opening of 23
544	544	sealed bids. A parcel of agricultural land sold under this section may not be less than 24
545	545	20 acres, and a parcel of agricultural land that is acquired by exercise of the option 25
546	546	granted in this subsection may not exceed 320 acres. Agricultural land that is acquired 26
547	547	under this section must be used for agricultural purposes as required by law. 27
548	548	* Sec. 34. AS 38.07.030(a) is amended to read: 28
549	549	(a) An owner of agricultural land, or a lessee from the state of agricultural 29
550	550	land, in the general vicinity of the land to be cleared or drained under AS 38.07.010(a) 30
551	551	may apply to the commissioner to have the land cleared or drained or both along with 31 34-LS0694\N
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555	555	the state land. The applicant's land shall be included in the contract of land to be 1
556	556	cleared or drained if, in the discretion of the commissioner, the inclusion is feasible 2
557	557	and furthers the agricultural policies of the state [DIVISION OF THE 3
558	558	DEPARTMENT OF NATURAL RESOURCES WITH RESPONSIBILITY FOR 4
559	559	AGRICULTURE]. 5
560	560	* Sec. 35. AS 38.09.010(a) is amended to read: 6
561	561	(a) The commissioner shall designate and make available for homestead entry 7
562	562	state land, including, after consulting with the commissioner of agriculture [BOARD 8
563	563	OF AGRICULTURE AND CONSERVATI ON (AS 03.09.010)], land classified for 9
564	564	agricultural use. State land made available for homestead entry under this chapter shall 10
565	565	be distributed throughout the state. 11
566	566	* Sec. 36. AS 41.10.040 is amended to read: 12
567	567	Sec. 41.10.040. Soil and Water [NATURAL RESOURCE] Conservation 13
568	568	and Development Board. The Alaska Soil and Water [NATURAL RESOURCE] 14
569	569	Conservation and Development Board is composed of five members. The 15
570	570	commissioner [OR, IN THE ABSENCE OF THE COMMISSIONER, THE 16
571	571	DIRECTOR] of agriculture [,] serves ex officio but without a vote on the board. 17
572	572	* Sec. 37. AS 41.10.045 is amended to read: 18
573	573	Sec. 41.10.045. Executive director. The commissioner of agriculture shall 19
574	574	appoint an executive director and clerical staff to assist the board. 20
575	575	* Sec. 38. AS 41.10.100 is amended to read: 21
576	576	Sec. 41.10.100. Duties of board. (a) At the request of the commissioner of 22
577	577	agriculture, the board shall meet and advise the commissioner of agriculture in the 23
578	578	exercise of the powers, duties, and functions of the commissioner of agriculture. 24
579	579	(b) The board shall also 25
580	580	(1) receive and review reports concerning the use of soil resources of 26
581	581	the state; 27
582	582	(2) hold public hearings and meetings to determine whether land in the 28
583	583	state is being used in a manner consistent with sound soil and water conservation 29
584	584	practices; 30
585	585	(3) make recommendations to the commissioner of agriculture and 31 34-LS0694\N
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589	589	the commissioner of natural resources, as appropriate, for specific action 1
590	590	necessary to provide for the effective and orderly development of agricultural, forest, 2
591	591	and grazing land in the state; 3
592	592	(4) review an appeal by an applicant or lessee from a decision of the 4
593	593	director of the division of lands concerning a sale or lease of state agricultural or 5
594	594	grazing land and submit its recommendations to the commissioner of natural 6
595	595	resources or hearing officer; 7
596	596	(5) act in an advisory capacity to the soil and water conservation 8
597	597	districts in the state; 9
598	598	(6) act in an advisory capacity to the commissioner [AND DIRECTOR 10
599	599	OF THE DIVISION] of [THE DEPARTMENT WITH RESPONSIBILITY FOR] 11
600	600	agriculture in the review of farm conservation plans for all state agricultural land sales 12
601	601	in the state. 13
602	602	* Sec. 39. AS 41.10.110 is amended to read: 14
603	603	Sec. 41.10.110. Powers of commissioner. The commissioner of agriculture 15
604	604	has the power to 16
605	605	(1) conduct land capability surveys and investigations of potential 17
606	606	agricultural areas and of soil conservation and erosion control, including necessary 18
607	607	preventative and control measures, in the state; to publish the results of these surveys 19
608	608	and investigations and to disseminate information concerning the results of the surveys 20
609	609	and investigations to prospective settlers and the general public; 21
610	610	(2) make technical guidance and other assistance available to settlers 22
611	611	of new land to ensure [ASSURE] the development of the land in a manner that will 23
612	612	permit it to be used in accordance with its capabilities and treated in accordance with 24
613	613	its needs; 25
614	614	(3) carry out measures for soil conservation and erosion control within 26
615	615	the state, including engineering operations, methods of cultivation, the growing of 27
616	616	vegetation, and changes in use of land, with the consent and cooperation of the land 28
617	617	user or agency having jurisdiction of the land; 29
618	618	(4) cooperate with, furnish assistance to, and enter into agreements 30
619	619	with [,] a user of land or agency within the state; 31 34-LS0694\N
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623	623	(5) construct, improve, and maintain soil erosion control and 1
624	624	conservation structures as are necessary and practical for carrying out the purposes of 2
625	625	this chapter; 3
626	626	(6) develop comprehensive plans for the conservation of soil and 4
627	627	control of soil erosion within the state, cropping programs, tillage practices and 5
628	628	changes in land use, and publish plans and information and bring them to the attention 6
629	629	of users of land within the state; 7
630	630	(7) accept contributions in money, services, materials, or equipment 8
631	631	from the United States or its agencies, from an agency of the state, and from any other 9
632	632	source [,] for use in carrying out the purposes of this chapter. 10
633	633	* Sec. 40. AS 41.10.120 is amended to read: 11
634	634	Sec. 41.10.120. Approval of land user. A survey, investigation, or plan for 12
635	635	land may not be undertaken by the commissioner of agriculture and measures for soil 13
636	636	conservation and erosion control may not be carried out without the prior approval of 14
637	637	the user of the land. 15
638	638	* Sec. 41. AS 41.10.130(a) is amended to read: 16
639	639	(a) The commissioner of agriculture may, on the recommendation of the 17
640	640	board, create soil and water conservation districts in the state upon petition signed by 18
641	641	25 or more land users setting out the proposed boundaries of the proposed district. The 19
642	642	commissioner of agriculture shall fix a time for and give notice of a public hearing 20
643	643	based on the petition at a convenient location or locations within the boundaries of the 21
644	644	proposed district. The commissioner of agriculture may fix the boundaries of the 22
645	645	district created, supervise the election of, prescribe the duties of, and install a 23
646	646	governing body of five land users to be known as district supervisors for each district 24
647	647	created, and delegate to the district supervisors powers as the commissioner of 25
648	648	agriculture considers necessary to accomplish the purposes of this chapter within the 26
649	649	district boundaries. 27
650	650	* Sec. 42. AS 41.10.140(1) is amended to read: 28
651	651	(1) "board" means the Alaska Soil and Water [NATURAL 29
652	652	RESOURCE] Conservation and Development Board; 30
653	653	* Sec. 43. AS 44.17.005 is amended to read: 31 34-LS0694\N
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657	657	Sec. 44.17.005. Offices and departments. There are in the state government 1
658	658	the following principal offices and departments: 2
659	659	(1) Office of the Governor; 3
660	660	(2) Department of Administration; 4
661	661	(3) Department of Law; 5
662	662	(4) Department of Revenue; 6
663	663	(5) Department of Education and Early Development; 7
664	664	(6) Department of Health; 8
665	665	(7) Department of Labor and Workforce Development; 9
666	666	(8) Department of Commerce, Community, and Economic 10
667	667	Development; 11
668	668	(9) Department of Military and Veterans' Affairs; 12
669	669	(10) Department of Natural Resources; 13
670	670	(11) Department of Fish and Game; 14
671	671	(12) Department of Public Safety; 15
672	672	(13) Department of Transportation and Public Facilities; 16
673	673	(14) Department of Environmental Conservation; 17
674	674	(15) Department of Corrections; 18
675	675	(16) Department of Family and Community Services; 19
676	676	(17) Department of Agriculture. 20
677	677	* Sec. 44. AS 44.37.020(a) is amended to read: 21
678	678	(a) The Department of Natural Resources shall administer the state program 22
679	679	for the conservation and development of natural resources, including forests, parks, 23
680	680	and recreational areas, land, water, [AGRICULTURE, SOIL CONSERVATION,] and 24
681	681	minerals including petroleum and natural gas, but excluding commercial fisheries, 25
682	682	sport fish, game, and fur-bearing animals in their natural state. 26
683	683	* Sec. 45. AS 44 is amended by adding a new chapter to read: 27
684	684	Chapter 38. Department of Agriculture. 28
685	685	Sec. 44.38.010. Commissioner of agriculture. The principal executive officer 29
686	686	of the Department of Agriculture is the commissioner of agriculture. 30
687	687	Sec. 44.38.020. Duties of the department. (a) The Department of Agriculture 31 34-LS0694\N
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691	691	shall administer state programs for agriculture, soil conservation, and the conservation 1
692	692	and development of state agricultural land. The department shall 2
693	693	(1) obtain and publish information electronically and in print on 3
694	694	subjects connected with agriculture, including community seed libraries established 4
695	695	under AS 03.20.120; 5
696	696	(2) control and regulate the entry and transportation of seeds, plants, 6
697	697	and other horticultural products; 7
698	698	(3) control and eradicate the spread of pests injurious to plants, trees, 8
699	699	vegetables, livestock, and poultry; 9
700	700	(4) aid in developing used and unused agricultural resources; and 10
701	701	(5) experiment and determine practical methods of growing, 11
702	702	processing, soil analysis, eradication of obnoxious weeds, control of insects, and 12
703	703	cheaper and more satisfactory methods of land clearing. 13
704	704	(b) The Department of Agriculture may 14
705	705	(1) advise persons who establish or operate a community seed library 15
706	706	under AS 03.20.120; and 16
707	707	(2) post on the department's Internet website and annually update the 17
708	708	following: 18
709	709	(A) information about noncommercial giving or exchanging of 19
710	710	seed, including information about community seed libraries established under 20
711	711	AS 03.20.120, community seed library locations, community seed library 21
712	712	facilitators, and best practices for noncommercial giving or exchanging of 22
713	713	seed; 23
714	714	(B) an online registration form for a person involved in 24
715	715	noncommercial giving or exchanging of seed to submit to the department for 25
716	716	publication, without a fee, information under AS 03.20.140; 26
717	717	(C) information provided for publication under (B) of this 27
718	718	paragraph. 28
719	719	Sec. 44.38.030. Regulations. The commissioner of agriculture may adopt 29
720	720	regulations to carry out or assist in carrying out the powers and duties of the 30
721	721	Department of Agriculture. 31 34-LS0694\N
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725	725	* Sec. 46. AS 44.62.330(a)(31) is amended to read: 1
726	726	(31) Department of Agriculture [NATURAL RESOURCES] 2
727	727	concerning the Alaska grain reserve program under former AS 03.12; 3
728	728	* Sec. 47. AS 03.09.020(b); AS 03.47.040(2); and AS 44.37.030 are repealed. 4
729	729	* Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 5
730	730	read: 6
731	731	TRANSITION. (a) Employees of the Department of Natural Resources whose duties 7
732	732	have been transferred by this Act to the Department of Agriculture shall be transferred to the 8
733	733	Department of Agriculture on the effective date of this Act. 9
734	734	(b) Members of any board or commission transferred by this Act whose terms have 10
735	735	not expired by the effective date of this Act may continue to serve the remainder of their 11
736	736	terms. 12
737	737	(c) Litigation, hearings, investigations, and other proceedings pending under a law 13
738	738	repealed or amended by this Act, or in connection with a function transferred by this Act, 14
739	739	continue in effect and may be completed notwithstanding a transfer, repeal, or amendment 15
740	740	provided for in this Act. 16
741	741	(d) Contracts, rights, liabilities, and obligations created by or under a law repealed or 17
742	742	affected by this Act, and in effect on the effective date of this Act, remain in effect 18
743	743	notwithstanding this Act's taking effect. 19
744	744	(e) Certificates, licenses, orders, and regulations in effect on the effective date of this 20
745	745	Act that were issued or adopted under the authority of a law amended or repealed by this Act, 21
746	746	or in connection with a function transferred by this Act, remain in effect for the term issued 22
747	747	and shall be enforced by the agency to which the function is transferred under this Act until 23
748	748	revoked, vacated, or amended by the agency to which the function is transferred. 24
749	749	(f) Records, equipment, appropriations, and other property of an agency of the state 25
750	750	whose functions are transferred under this Act shall be transferred to implement the 26
751	751	provisions of this Act. 27
752	752	* Sec. 49. This Act takes effect July 1, 2025. 28