Alaska 2025-2026 Regular Session

Alaska Senate Bill SB128 Latest Draft

Bill / Introduced Version Filed 03/12/2025

                             
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 SENATE BILL NO. 128 
 
IN THE LEGISLATURE OF THE STATE OF ALASKA 
 
THIRTY-FOURTH LEGISLATURE - FIRST SESSION 
 
BY THE SENATE RULES COMMITTEE 
 
Introduced:  3/12/25 
Referred:  Resources, Finance  
 
 
A BILL 
 
FOR AN ACT ENTITLED 
 
"An Act establishing the Department of Agriculture; relating to the establishment of the 1 
Department of Agriculture; transferring functions of the Department of Natural 2 
Resources related to agriculture to the Department of Agriculture; and providing for an 3 
effective date." 4 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5 
   * Section 1. AS 03.05.010 is amended to read: 6 
Sec. 03.05.010. Powers and duties of commissioner of agriculture 
7 
[NATURAL RESOURCES]. (a) The commissioner of agriculture [NATURAL 8 
RESOURCES] shall  9 
(1) direct, administer, and supervise promotional and experimental 10 
work, extension services, and agricultural projects for the purpose of promoting and 11 
developing commercial and noncommercial agricultural industry in the state, 12 
including horticulture, dairying, cattle raising, fur farming, grain production, vegetable 13 
production, and agricultural products;  14    34-LS0694\N 
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(2)  procure and preserve all information pertaining to developing the 1 
agricultural industry in the state and disseminate that information to the public;  2 
(3)  assist prospective settlers and others to engage in the agricultural 3 
industry in the state by providing information about activities and programs essential 4 
to developing the agricultural industry and areas in the state that are suitable for 5 
agriculture;  6 
(4)  review the marketing, financing, transportation, and development 7 
of agricultural products in the state, with special emphasis on local production, and 8 
negotiate for the marketing of agricultural products of the state with federal and state 9 
agencies operating in the state;  10 
(5)  regulate and control the entry in the state and the transportation, 11 
sale, or use in the state of plants, seeds, vegetables, shell eggs, fruits and berries, 12 
nursery stock, animal feeds, remedies and mineral supplements, fertilizers, and 13 
agricultural chemicals to prevent the spread of pests, diseases, or toxic substances 14 
injurious to the public interest and protect the agricultural industry against fraud, 15 
deception, and misrepresentation; for purposes of this paragraph, the commissioner 16 
may require registration, inspection, and testing and may establish procedures and 17 
fees;  18 
(6)  regulate the farming of elk in a manner similar to the manner in 19 
which the commissioner regulates domestic animals and livestock, to the extent that is 20 
appropriate;  21 
(7)  adopt regulations relating to industrial hemp, including regulations 22 
that  23 
(A)  specify approved sources or varieties of hemp seed to be 24 
grown, sold, or offered for sale by an individual registered to produce 25 
industrial hemp;  26 
(B)  require testing, paid for by the registrant, for delta-9-27 
tetrahydrocannabinol concentration following harvest of the industrial hemp;  28 
(C) provide for general production practices to avoid the 29 
unintended distribution of industrial hemp seeds by registrants into 30 
nonagricultural land;  31    34-LS0694\N 
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(D)  establish isolation distances for the production of industrial 1 
hemp; in this subparagraph, "isolation distance" means the minimum 2 
separation required between two or more varieties of the plant (genus) 3 
Cannabis for the purpose of keeping the seed pure;  4 
(E)  permit manufacturing and retail sale of industrial hemp and 5 
products made from industrial hemp;  6 
(F) establish a registration and renewal procedure for a 7 
participant in the industrial hemp program developed under AS 03.05.076;  8 
(8)  submit a list of individuals registered to produce industrial hemp 9 
under AS 03.05.076 and the expiration dates of the registrations to the Marijuana 10 
Control Board and the Department of Public Safety;  11 
(9) regulate the labeling of seed that does not comply with the 12 
requirements of AS 03.20.130.  13 
(b) To carry out the requirements of this title, the commissioner of 14 
agriculture [NATURAL RESOURCES] may issue orders, regulations, quarantines, 15 
and embargoes relating to  16 
(1) examination and inspection of premises containing products, 17 
articles, and commodities carrying pests;  18 
(2)  establishment of quarantines for eradication of pests;  19 
(3)  establishment of standards and labeling requirements pertaining to 20 
the sale of agricultural and vegetable seeds;  21 
(4)  tests and analyses that may be made and hearings that may be held 22 
to determine whether the commissioner will issue a stop order or quarantine;  23 
(5)  cooperation with federal and other state agencies; and  24 
(6)  industrial hemp.  25 
(c)  The commissioner of agriculture [NATURAL RESOURCES] shall notify 26 
the Marijuana Control Board and the Department of Public Safety when the 27 
commissioner issues a stop order. The commissioner of agriculture [NATURAL 28 
RESOURCES]  29 
(1)  shall issue a stop order to a person  30 
(A) not registered under AS 03.05.076 who is found to be 31    34-LS0694\N 
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producing a plant with delta-9-tetrahydrocannabinol; or  1 
(B) registered under AS 03.05.076 who is found to be 2 
producing a plant with delta-9-tetrahydrocannabinol over one percent; and  3 
(2)  may issue a stop order to a person registered under AS 03.05.076 4 
who is found to be producing a plant with delta-9-tetrahydrocannabinol between 0.3 5 
percent and one percent.  6 
(d)  The commissioner of agriculture [NATURAL RESOURCES] may sell 7 
promotional merchandise related to the "Alaska Grown" trademark and may charge or 8 
collect a fee for the sale of promotional merchandise related to the "Alaska Grown" 9 
trademark. The commissioner may issue a license and charge a license fee for the sale 10 
of promotional merchandise related to the "Alaska Grown" trademark. The 11 
commissioner shall price merchandise sold by the commissioner under this subsection 12 
in a manner that ensures a reasonable monetary return to the state. To the extent 13 
practicable, the commissioner shall sell only merchandise produced or manufactured 14 
in the United States that, subject to AS 36.30, is procured from either an Alaska bidder 15 
or a person that employs prisoners under AS 33.30.191(b).  16 
   * Sec. 2. AS 03.05.027(a) is amended to read: 17 
(a) The commissioner of agriculture [NATURAL RESOURCES] shall 18 
employ or appoint a state coordinator for noxious weed, invasive plant, and 19 
agricultural pest management and education.  20 
   * Sec. 3. AS 03.05.040(b) is amended to read: 21 
(b) In this section, "commissioner" means commissioner of agriculture 22 
[NATURAL RESOURCES] with respect to those products over which t he 23 
commissioner of agriculture [NATURAL RESOURCES] has jurisdiction under this 24 
title, and the commissioner of environmental conservation with respect to those 25 
products over which the commissioner of environmental conservation has jurisdiction 26 
under this title.  27 
   * Sec. 4. AS 03.05.050(b) is amended to read: 28 
(b) In this section, "commissioner" means commissioner of agriculture 29 
[NATURAL RESOURCES] with respect to those products over which t he 30 
commissioner of agriculture [NATURAL RESOURCES] has jurisdiction under this 31    34-LS0694\N 
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title, and the commissioner of environmental conservation with respect to those 1 
products over which the commissioner of environmental conservation has jurisdiction 2 
under this title.  3 
   * Sec. 5. AS 03.05.075(a) is amended to read: 4 
(a)  Elk may be raised and bred as domestic stock for commercial purposes, 5 
including the sale of meat, by a person who lawfully owns the elk and who holds a 6 
current valid elk farming license. The commissioner of agriculture [NATURAL 7 
RESOURCES] may issue an elk farming license for the farming of elk to a person 8 
who applies on a form provided by the commissioner, pays the biennial elk farming 9 
license fee, and proves to the satisfaction of the commissioner that the person lawfully 10 
owns the elk, intends to raise and breed elk, and possesses facilities for maintaining 11 
the elk under positive control. Before issuing or renewing an elk farming license, the 12 
commissioner shall conduct a physical inspection of the elk farming facilities and 13 
determine that the facilities are in good repair and comply with the fencing standards 14 
established under (d) of this section. In this subsection, "lawfully owns" means 15 
ownership that was obtained without violating a state or federal law or regulation or a 16 
condition of a license or permit issued with respect to elk.  17 
   * Sec. 6. AS 03.05.075(b) is amended to read: 18 
(b) The commissioner of agriculture [NATURAL RESOURCES] shall 19 
provide to the Department of Fish and Game a copy of each application for an elk 20 
farming license received by the commissioner and each elk farming license issued by 21 
the commissioner.  22 
   * Sec. 7. AS 03.05.075(d) is amended to read: 23 
(d) The commissioner of agriculture [NATURAL RESOURCES] shall 24 
establish fencing standards for elk farming facilities to maintain elk under positive 25 
control. Proposed fencing standards shall be submitted to the commissioner of fish and 26 
game for review before the standards are adopted or amended.  27 
   * Sec. 8. AS 03.05.075(e) is amended to read: 28 
(e)  Notwithstanding other provisions of law, a license or permit is not required 29 
from the Department of Fish and Game in order to import, export, or possess elk for 30 
the purpose of elk farming. Elk imported, exported, or possessed for the purpose of elk 31    34-LS0694\N 
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farming are subject to the provisions of this title and regulations adopted under this 1 
title by the commissioner of agriculture [NATURAL RESOURCES] or the 2 
commissioner of environmental conservation for domestic animals and livestock, to 3 
the extent they are made applicable to elk by the commissioners.  4 
   * Sec. 9. AS 03.05.090(a) is amended to read: 5 
(a)  A person who violates a provision of this chapter or a regulation, order, or 6 
quarantine made under authority of this chapter, or violates a provision of a permit 7 
issued under this chapter, or sells seeds failing to meet the labeling requirements, 8 
standards, and tests provided for by regulation of the commissioner of agriculture 9 
[NATURAL RESOURCES] or the commissioner of environmental conservation is 10 
guilty of a class A misdemeanor for each offense.  11 
   * Sec. 10. AS 03.09.020(a) is amended to read: 12 
(a) The commissioner of [DIRECTOR OF THE DIVISION OF THE 13 
DEPARTMENT WITH RESPONSIBILITY FOR] agriculture or the commissioner's 14 
designee shall serve as the director of the Board of Agriculture and Conservation. The 15 
director may employ staff and, as directed by the board, is responsible for the daily 16 
operations of the agricultural revolving loan fund (AS 03.10.040).  17 
   * Sec. 11. AS 03.20.140 is amended to read: 18 
Sec. 03.20.140. Online publication of noncommercial giving or exchanging 19 
of seed. A person involved in noncommercial giving or exchanging of seed under 20 
AS 03.20.110 and 03.20.120 may register online with the department under 21 
AS 44.38.020(b) [AS 44.37.030(b)] and submit to the department information, 22 
including the person's name, telephone number, and electronic mail address, and the 23 
location where the person gives or exchanges seed, for publication on the department's 24 
Internet website.  25 
   * Sec. 12. AS 03.20.200(a) is amended to read: 26 
(a)  The [DIVISION OF THE] department [WITH RESPONSIBILITY FOR 27 
AGRICULTURE] shall establish a forgivable loan program in regulation, under which 28 
a recipient's loan may be forgiven by the department if the recipient implements a 29 
business plan approved by the department to develop or make improvements to the 30 
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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to fund investments in agriculture to build resiliency in the state's food supply. The 1 
forgivable loan program must allow a loan to be forgiven if the recipient implements 2 
the approved business plan and demonstrates a subsequent increase in food production 3 
and distribution.  4 
   * Sec. 13. AS 03.22.010 is amended to read: 5 
Sec. 03.22.010. Establishment of plant materials center. The Department of 6 
Agriculture [NATURAL RESOURCES], in cooperation with the college or 7 
department of the University of Alaska responsible for the Agricultural and Forestry 8 
Experiment Station, shall establish and maintain a plant materials center.  9 
   * Sec. 14. AS 03.22.040 is amended to read: 10 
Sec. 03.22.040. Personnel. The department shall ensure that competent 11 
professional, secretarial, and subprofessional personnel necessary to carry on the work 12 
of the center are employed. The administrator of the plant materials center is a joint 13 
appointment between the Department of Agriculture [NATURAL RESOURCES] and 14 
the college or department of the University of Alaska responsible for the Agricultural 15 
and Forestry Experiment Station.  16 
   * Sec. 15. AS 03.47.020 is amended to read: 17 
Sec. 03.47.020. Importation of bees. All bees imported into the state shall be 18 
accompanied by a health certificate that states that the bees come from an apiary 19 
apparently free of bee diseases and that is signed by an apiary inspector determined to 20 
be qualified by the department [DIVISION]. 21 
   * Sec. 16. AS 03.47.030(a) is amended to read: 22 
(a)  The department [DIVISION] shall investigate reported cases of diseased 23 
bees and cases of diseased bees discovered by the department [DIVISION].  24 
   * Sec. 17. AS 03.47.030(b) is amended to read: 25 
(b)  The department [DIVISION] shall take action necessary to prevent the 26 
spread of bee diseases. Bees or used beekeeping equipment found to contain the 27 
causative organisms of American foulbrood (Bacillus larvae) or European foulbrood 28 
(Streptococcus pluton) shall be immediately quarantined and treated within five days 29 
by  30 
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by the department [DIVISION];  1 
(2)  sterilization by boiling in lyewater for at least 15 minutes; or  2 
(3)  destruction of bees, bee combs, and frames by burning followed by 3 
burying 18 inches deep.  4 
   * Sec. 18. AS 03.47.030(d) is amended to read: 5 
(d)  A quarantine imposed under this section may not be removed until infected 6 
bees and used beekeeping equipment are destroyed or the department [DIVISION] 7 
determines through testing that the used beekeeping equipment is free of the disease.  8 
   * Sec. 19. AS 03.47.030(e) is amended to read: 9 
(e)  The department [DIVISION] shall adopt regulations necessary to carry 10 
out the purposes of this chapter. 11 
   * Sec. 20. AS 03.90.010 is amended to read: 12 
Sec. 03.90.010. Definitions. In this title, unless otherwise indicated,  13 
(1) "commissioner" means the commissioner of agriculture 14 
[NATURAL RESOURCES];  15 
(2)  "department" means the Department of Agriculture [NATURAL 16 
RESOURCES].  17 
   * Sec. 21. AS 09.45.235(a) is amended to read: 18 
(a) An agricultural facility or an agricultural operation at an agricultural 19 
facility is not and does not become a private nuisance as a result of a changed 20 
condition that exists in the area of the agricultural facility if the agricultural facility 21 
was not a nuisance at the time the agricultural facility began agricultural operations. 22 
For purposes of this subsection, the time an agricultural facility began agricultural 23 
operations refers to the date on which any type of agricultural operation began on that 24 
site regardless of any subsequent expansion of the agricultural facility or adoption of 25 
new technology. An agricultural facility or an agricultural operation at an agricultural 26 
facility is not a private nuisance if the governing body of the local soil and water 27 
conservation district advises the commissioner of agriculture in writing that the 28 
facility or operation is consistent with a soil conservation plan developed and 29 
implemented in cooperation with the district.  30 
   * Sec. 22. AS 14.40.450 is amended to read: 31    34-LS0694\N 
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Sec. 14.40.450. Governor authorized to make certificates to obtain federal 1 
grants of money. The governor is authorized to make all certificates required by law 2 
or the regulations of the United States Department of Agriculture or of the United 3 
States Department of the Interior necessary to be made to entitle the state to grants of 4 
money for the benefits of state colleges of agriculture and mechanic arts authorized 5 
under any Act of Congress.  6 
   * Sec. 23. AS 16.20.310(c) is amended to read: 7 
(c)  The commissioner shall develop and amend the game management plan to 8 
coordinate, as closely as possible, the game management plan with the activities of the 9 
Department of Agriculture [NATURAL RESOURCES] relating to the Big Delta 10 
agricultural development project.  11 
   * Sec. 24. AS 27.19.030(b) is amended to read: 12 
(b)  In reviewing a reclamation plan for state, federal, or municipal land under 13 
(a) of this section, the commissioner may consider, after consultation with the 14 
commissioners of environmental conservation, agriculture, and fish and game and 15 
with the concurrence of the miner and landowner, uses to which the land may be put 16 
after mining has been completed, including trails, lakes, recreation sites, fish and 17 
wildlife enhancement, commercial, and agriculture uses.  18 
   * Sec. 25. AS 37.05.146(c)(78) is amended to read: 19 
(78) fees collected by the Department of Agriculture [NATURAL 20 
RESOURCES] under AS 03.05.010(d);  21 
   * Sec. 26. AS 38.04.020(g) is amended to read: 22 
(g)  After July 1 of each year, the commissioner shall direct the expenditure of 23 
money appropriated for the disposal of land in response to requests made under (e) 24 
and (f) of this section for the following:  25 
(1) land designated as suitable for homestead disposal shall be 26 
classified and surveyed under this chapter and AS 38.05 and made available for 27 
staking and lease under AS 38.09;  28 
(2)  land designated as suitable for subdivision and homesite disposal 29 
shall be surveyed, subdivided, classified, and disposed of under this chapter, 30 
AS 38.05, and AS 38.08;  31    34-LS0694\N 
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(3) land designated commercial, industrial, or suitable for other 1 
disposal shall be sold under AS 38.05.055 or 38.05.057;  2 
(4) land designated agricultural shall be disposed of under 3 
AS 38.05.055 - 38.05.065, except the commissioner of agriculture [BOARD OF 4 
AGRICULTURE AND CONSERVATION (AS 03.09.010)] shall receive notice of 5 
each proposed disposal and be given an opportunity to comment before the final 6 
disposal decision is made.  7 
   * Sec. 27. AS 38.04.030 is amended to read: 8 
Sec. 38.04.030. Land availability programs. Programs that may be used by 9 
the director to make the state's land surface available for private use under 10 
AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 11 
estate, including conveyance of agricultural use rights; leasing; open-to-entry; 12 
homesiting; homesteading; permitting for construction and occupation of cabins in 13 
isolated locations on land retained in state ownership; and other methods as provided 14 
by law. However, agricultural use rights may be conveyed only after consulting with 15 
the commissioner of agriculture [BOARD OF AGRICULTURE AND 16 
CONSERVATION].  17 
   * Sec. 28. AS 38.05.020(b) is amended to read: 18 
(b)  The commissioner may  19 
(1)  establish reasonable procedures and adopt reasonable regulations 20 
necessary to carry out this chapter and, whenever necessary, issue directives or orders 21 
to the director to carry out specific functions and duties; regulations adopted by the 22 
commissioner shall be adopted under AS 44.62 (Administrative Procedure Act); 23 
orders by the commissioner classifying land, issued after January 3, 1959, are not 24 
required to be adopted under AS 44.62 (Administrative Procedure Act);  25 
(2) enter into agreements considered necessary to carry out the 26 
purposes of this chapter, including agreements with federal and state agencies;  27 
(3)  review any order or action of the director;  28 
(4) exercise the powers and do the acts necessary to carry out the 29 
provisions and objectives of this chapter;  30 
(5)  notwithstanding the provisions of any other section of this chapter, 31    34-LS0694\N 
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grant an extension of the time within which payments due on any exploration license, 1 
lease, or sale of state land, minerals, or materials may be made, including payment of 2 
rental and royalties, on a finding that compliance with the requirements is or was 3 
prevented by reason of war, riots, or acts of God;  4 
(6)  classify tracts for agricultural uses;  5 
(7)  after consulting with the commissioner of agriculture [BOARD 6 
OF AGRICULTURE AND CONSERVAT ION (AS 03.09.010)], waive, postpone, or 7 
otherwise modify the development requirements of a contract for the sale of 8 
agricultural land if  9 
(A)  the land is inaccessible by road; or  10 
(B) transportation, marketing, and development costs render 11 
the required development uneconomic;  12 
(8) reconvey or relinquish land or an interest in land to the federal 13 
government if  14 
(A) the land is described in an amended application for an 15 
allotment under 43 U.S.C. 1617; and  16 
(B)  the reconveyance or relinquishment is  17 
(i)  for the purposes provided in 43 U.S.C. 1617; and  18 
(ii)  in the best interests of the state;  19 
(9)  lead and coordinate all matters relating to the state's review and 20 
authorization of resource development projects;  21 
(10) enter into commercial agreements with a duration of not more 22 
than two years for project services related to a North Slope natural gas project;  23 
(11)  in consultation with the commissioner of revenue, participate in 24 
the negotiation of agreements that include balancing, marketing, disposition of natural 25 
gas, and offtake and contracts and development of terms for inclusion in those 26 
proposed agreements and contracts associated with a North Slope natural gas project; 27 
an agreement or contract negotiated under this paragraph to which the state is a party 28 
is not effective unless the legislature authorizes the governor to execute the agreement 29 
or contract;  30 
(12) enter into confidentiality agreements to maintain the 31    34-LS0694\N 
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confidentiality of information related to contract negotiations and contract 1 
implementation associated with a North Slope natural gas project; information under 2 
those confidentiality agreements is not subject to AS 40.25.100 - 40.25.295 (Alaska 3 
Public Records Act), except that  4 
(A) the terms of a proposed contract that the commissioner 5 
presents to the legislature for the purpose of obtaining authorization for the 6 
governor to execute are not confidential and must be made available to the 7 
public at least 90 days before the proposed effective date for the terms; and  8 
(B) the commissioner may share confidential information 9 
obtained under this paragraph with members of the legislature, their agents, 10 
and contractors on request under confidentiality agreements, either in 11 
committees held in executive session or individually;  12 
(13)  consult with the Alaska Gasline Development Corporation in the 13 
development of agreements or contracts under (10) or (11) of this subsection for 14 
project services related to a gas treatment plant, pipeline, liquefaction facility, marine 15 
terminal, or marine transportation services necessary to transport natural gas to 16 
market;  17 
(14)  in consultation with the commissioner of revenue, take custody of 18 
gas delivered to the state under AS 43.55.014(b) and manage the project services and 19 
disposition and sale of that gas;  20 
(15) exercise the powers and do the acts necessary to carry out the 21 
provisions and objectives of AS 43.90 that relate to this chapter.  22 
   * Sec. 29. AS 38.05.035(b) is amended to read: 23 
(b)  The director may  24 
(1)  delegate the administrative duties, functions, or powers imposed 25 
upon the director to a responsible employee in the division;  26 
(2)  grant preference rights for the lease or purchase of state land 27 
without competitive bid in order to correct errors or omissions of a state or federal 28 
administrative agency when inequitable detriment would otherwise result to a diligent 29 
claimant or applicant due to situations over which the claimant or applicant had no 30 
control; the exercise of this discretionary power operates only to divest the state of its 31    34-LS0694\N 
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title to or interests in land and may be exercised only  1 
(A)  with the express approval of the commissioner; and  2 
(B)  if the application for the preference right is filed with the 3 
director within three years from  4 
(i)  the occurrence of the error or omission;  5 
(ii)  the date of acquisition by the state of the land; or  6 
(iii)  the date of a court decision or settlement nullifying 7 
a disposal of state land;  8 
(3) grant a preference right to a claimant who shows bona fide 9 
improvement of state land or of federal land subsequently acquired by the state and 10 
who has in good faith sought to obtain title to the land but who, through error or 11 
omission of others occurring within the three years before (A) the application for the 12 
preference right, (B) the date of acquisition by the state of the land, or (C) the date of a 13 
court decision or settlement nullifying a disposal of state land, has been denied title to 14 
it; upon a showing satisfactory to the commissioner, the claimant may lease or 15 
purchase the land at the price set on the date of original entry on the land or, if a price 16 
was not set at that time at a price determined by the director to fairly represent the 17 
value of unimproved land at the time the claim was established, but in no event less 18 
than the cost of administration including survey; the error or omission of a predecessor 19 
in interest or an agent, administrator, or executor that has clearly prejudiced the 20 
claimant may be the basis for granting a preference right;  21 
(4)  sell land by lottery for less than the appraised value when, in the 22 
judgment of the director, past scarcity of land suitable for private ownership in any 23 
particular area has resulted in unrealistic land values;  24 
(5)  when the director determines it is in the best interest of the state 25 
and will avoid injustice to a person or the heirs or devisees of a person, dispose of 26 
land, by direct negotiation to that person who presently uses and who used and made 27 
improvements to that land before January 3, 1959, or to the heirs or devisees of the 28 
person; the amount paid for the land shall be its fair market value on the date that the 29 
person first entered the land, as determined by the director; a parcel of land disposed 30 
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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may not exceed five acres;  1 
(6)  after consulting with the commissioner of agriculture [BOARD 2 
OF AGRICULTURE AND CONSERVAT ION (AS 03.09.010)], dispose of an interest 3 
in land limited to use for agricultural purposes by lottery;  4 
(7) convey to an adjoining landowner for its fair market value a 5 
remnant of land that the director considers unmanageable or a parcel of land created 6 
by a highway right-of-way alignment or realignment, or a parcel created by the 7 
vacation of a state-owned right-of-way if  8 
(A)  the director determines that it is in the best interests of the 9 
state;  10 
(B)  the parcel  11 
(i) does not exceed the minimum lot size under an 12 
applicable zoning code; or  13 
(ii)  is smaller than 20 acres and is completely enclosed 14 
by property owned by the adjacent landowner; and  15 
(C) the director and the platting authority having land use 16 
planning jurisdiction agree that conveyance of the parcel to the adjoining 17 
landowner will result in boundaries that are convenient for the use of the land 18 
by the landowner and compatible with municipal land use plans;  19 
(8) for good cause extend for up to 90 days the time for rental or 20 
installment payments by a lessee or purchaser of state land under this chapter if 21 
reasonable penalties and interest set by the director are paid; 22 
(9)  quitclaim land or an interest in land to the federal government on a 23 
determination that the land or the interest in land was wrongfully or erroneously 24 
conveyed by the federal government to the state;  25 
(10)  negotiate the sale or lease of state land at fair market value to a 26 
person who acquired by contract, purchase, or lease rights to improvements on the 27 
land from another state agency or who leased the land from another state agency.  28 
   * Sec. 30. AS 38.05.057(c) is amended to read: 29 
(c)  The commissioner, after consulting with the commissioner of agriculture 30 
[BOARD OF AGRICULTURE AND C ONSERVATION (AS 03.09.010)], may adopt 31    34-LS0694\N 
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regulations under AS 44.62 (Administrative Procedure Act) [THE 1 
ADMINISTRATIVE PROCEDURE ACT (A S 44.62)] that specify qualifications for 2 
lottery participants different from those specified in (b) of this section if  3 
(1) an interest in land limited to agricultural purposes is to be sold 4 
under (a) of this section;  5 
(2) the sale is a part of a program to develop agricultural land as a 6 
renewable resource of the state; and  7 
(3)  the regulations include residency, skill, experience, and financial 8 
requirements necessary to qualify persons who are competent and financially able to 9 
develop the land as a successful agricultural enterprise.  10 
   * Sec. 31. AS 38.05.059 is amended to read: 11 
Sec. 38.05.059. Sale of agricultural land. The commissioner, after consulting 12 
with the commissioner of agriculture [BOARD OF AGRICULTURE AND 13 
CONSERVATION (AS 03.09.010)], may provide for the sale of land classified under 14 
AS 38.05.020(b)(6) for agricultural uses in parcels or tracts described by aliquot parts. 15 
The parcels or tracts are subject to state subdivision requirements and municipal 16 
ordinances. Money from a sale of agricultural land shall be separately accounted for 17 
and may be appropriated to the agricultural revolving loan fund (AS 03.10.040).  18 
   * Sec. 32. AS 38.05.065(h) is amended to read: 19 
(h)  The commissioner, after consulting with the commissioner of agriculture 20 
[BOARD OF AGRICULTURE AND CONSERVATION (AS 03.09.010)],  21 
(1)  shall provide that, notwithstanding (a) and (b) of this section, in a 22 
contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses, 23 
the interest rate to be charged on installment payments may not exceed 9.5 percent; 24 
and  25 
(2)  may declare a moratorium of up to five years on payments on land 26 
sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 27 
uses if  28 
(A)  the commissioner determines that the moratorium is in the 29 
best interest of the state;  30 
(B) the commissioner certifies and the contract purchaser 31    34-LS0694\N 
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agrees to perform farm development, crop production, and harvesting, not 1 
including land clearing or related activity, requiring the expenditure of 2 
amounts equivalent to the payments that would otherwise be made during the 3 
moratorium;  4 
(C)  the sale of the agricultural land takes place after July 1, 5 
1979; and  6 
(D) the contract purchaser is in compliance with the 7 
development plan specified in the purchase contract at the time the purchaser 8 
applies for a moratorium under this paragraph and remains in compliance with 9 
the development plan during the moratorium; for the payments subject to the 10 
moratorium declared under this paragraph, interest payments are subject to the 11 
moratorium but interest continues to accrue during the moratorium.  12 
   * Sec. 33. AS 38.05.069(a) is amended to read: 13 
(a) After consulting with the commissioner of agriculture [BOARD OF 14 
AGRICULTURE AND CONSERVATION (AS 03.09.010)], on a determination that 15 
the highest and best use of unoccupied land is for agricultural purposes and that it is in 16 
the best interests of the state to sell or lease the land, the commissioner shall grant to 17 
an Alaska resident owning and using or leasing and using land for agricultural 18 
purposes a first option to purchase or lease the unoccupied land situated adjacent to 19 
land presently held by the Alaska resident for the amount of the high bid received at 20 
public auction or by sealed bid. If more than one Alaska resident qualifies for a first 21 
option under this section, eligibility for the first option shall be determined by lot, and 22 
the option must be exercised on the conclusion of the public auction or opening of 23 
sealed bids. A parcel of agricultural land sold under this section may not be less than 24 
20 acres, and a parcel of agricultural land that is acquired by exercise of the option 25 
granted in this subsection may not exceed 320 acres. Agricultural land that is acquired 26 
under this section must be used for agricultural purposes as required by law.  27 
   * Sec. 34. AS 38.07.030(a) is amended to read: 28 
(a)  An owner of agricultural land, or a lessee from the state of agricultural 29 
land, in the general vicinity of the land to be cleared or drained under AS 38.07.010(a) 30 
may apply to the commissioner to have the land cleared or drained or both along with 31    34-LS0694\N 
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the state land. The applicant's land shall be included in the contract of land to be 1 
cleared or drained if, in the discretion of the commissioner, the inclusion is feasible 2 
and furthers the agricultural policies of the state [DIVISION OF THE 3 
DEPARTMENT OF NATURAL RESOURCES WITH RESPONSIBILITY FOR 4 
AGRICULTURE].  5 
   * Sec. 35. AS 38.09.010(a) is amended to read: 6 
(a)  The commissioner shall designate and make available for homestead entry 7 
state land, including, after consulting with the commissioner of agriculture [BOARD 8 
OF AGRICULTURE AND CONSERVATI ON (AS 03.09.010)], land classified for 9 
agricultural use. State land made available for homestead entry under this chapter shall 10 
be distributed throughout the state.  11 
   * Sec. 36. AS 41.10.040 is amended to read: 12 
Sec. 41.10.040. Soil and Water [NATURAL RESOURCE] Conservation 13 
and Development Board. The Alaska Soil and Water [NATURAL RESOURCE] 14 
Conservation and Development Board is composed of five members. The 15 
commissioner [OR, IN THE ABSENCE OF THE COMMISSIONER, THE 16 
DIRECTOR] of agriculture [,] serves ex officio but without a vote on the board.  17 
   * Sec. 37. AS 41.10.045 is amended to read: 18 
Sec. 41.10.045. Executive director. The commissioner of agriculture shall 19 
appoint an executive director and clerical staff to assist the board.  20 
   * Sec. 38. AS 41.10.100 is amended to read: 21 
Sec. 41.10.100. Duties of board. (a) At the request of the commissioner of 22 
agriculture, the board shall meet and advise the commissioner of agriculture in the 23 
exercise of the powers, duties, and functions of the commissioner of agriculture.  24 
(b)  The board shall also  25 
(1)  receive and review reports concerning the use of soil resources of 26 
the state;  27 
(2)  hold public hearings and meetings to determine whether land in the 28 
state is being used in a manner consistent with sound soil and water conservation 29 
practices;  30 
(3)  make recommendations to the commissioner of agriculture and 31    34-LS0694\N 
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the commissioner of natural resources, as appropriate, for specific action 1 
necessary to provide for the effective and orderly development of agricultural, forest, 2 
and grazing land in the state;  3 
(4)  review an appeal by an applicant or lessee from a decision of the 4 
director of the division of lands concerning a sale or lease of state agricultural or 5 
grazing land and submit its recommendations to the commissioner of natural 6 
resources or hearing officer;  7 
(5) act in an advisory capacity to the soil and water conservation 8 
districts in the state;  9 
(6)  act in an advisory capacity to the commissioner [AND DIRECTOR 10 
OF THE DIVISION] of [THE DEPARTMENT WITH RESPONSIBILITY FOR] 11 
agriculture in the review of farm conservation plans for all state agricultural land sales 12 
in the state.  13 
   * Sec. 39. AS 41.10.110 is amended to read: 14 
Sec. 41.10.110. Powers of commissioner. The commissioner of agriculture 15 
has the power to  16 
(1) conduct land capability surveys and investigations of potential 17 
agricultural areas and of soil conservation and erosion control, including necessary 18 
preventative and control measures, in the state; to publish the results of these surveys 19 
and investigations and to disseminate information concerning the results of the surveys 20 
and investigations to prospective settlers and the general public;  21 
(2)  make technical guidance and other assistance available to settlers 22 
of new land to ensure [ASSURE] the development of the land in a manner that will 23 
permit it to be used in accordance with its capabilities and treated in accordance with 24 
its needs;  25 
(3)  carry out measures for soil conservation and erosion control within 26 
the state, including engineering operations, methods of cultivation, the growing of 27 
vegetation, and changes in use of land, with the consent and cooperation of the land 28 
user or agency having jurisdiction of the land;  29 
(4) cooperate with, furnish assistance to, and enter into agreements 30 
with [,] a user of land or agency within the state;  31    34-LS0694\N 
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(5) construct, improve, and maintain soil erosion control and 1 
conservation structures as are necessary and practical for carrying out the purposes of 2 
this chapter;  3 
(6) develop comprehensive plans for the conservation of soil and 4 
control of soil erosion within the state, cropping programs, tillage practices and 5 
changes in land use, and publish plans and information and bring them to the attention 6 
of users of land within the state;  7 
(7) accept contributions in money, services, materials, or equipment 8 
from the United States or its agencies, from an agency of the state, and from any other 9 
source [,] for use in carrying out the purposes of this chapter.  10 
   * Sec. 40. AS 41.10.120 is amended to read: 11 
Sec. 41.10.120. Approval of land user. A survey, investigation, or plan for 12 
land may not be undertaken by the commissioner of agriculture and measures for soil 13 
conservation and erosion control may not be carried out without the prior approval of 14 
the user of the land.  15 
   * Sec. 41. AS 41.10.130(a) is amended to read: 16 
(a) The commissioner of agriculture may, on the recommendation of the 17 
board, create soil and water conservation districts in the state upon petition signed by 18 
25 or more land users setting out the proposed boundaries of the proposed district. The 19 
commissioner of agriculture shall fix a time for and give notice of a public hearing 20 
based on the petition at a convenient location or locations within the boundaries of the 21 
proposed district. The commissioner of agriculture may fix the boundaries of the 22 
district created, supervise the election of, prescribe the duties of, and install a 23 
governing body of five land users to be known as district supervisors for each district 24 
created, and delegate to the district supervisors powers as the commissioner of 25 
agriculture considers necessary to accomplish the purposes of this chapter within the 26 
district boundaries.  27 
   * Sec. 42. AS 41.10.140(1) is amended to read: 28 
(1) "board" means the Alaska Soil and Water [NATURAL 29 
RESOURCE] Conservation and Development Board;  30 
   * Sec. 43. AS 44.17.005 is amended to read: 31    34-LS0694\N 
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Sec. 44.17.005. Offices and departments. There are in the state government 1 
the following principal offices and departments:  2 
(1)  Office of the Governor;  3 
(2)  Department of Administration;  4 
(3)  Department of Law;  5 
(4)  Department of Revenue;  6 
(5)  Department of Education and Early Development;  7 
(6)  Department of Health;  8 
(7)  Department of Labor and Workforce Development;  9 
(8) Department of Commerce, Community, and Economic 10 
Development;  11 
(9)  Department of Military and Veterans' Affairs;  12 
(10)  Department of Natural Resources;  13 
(11)  Department of Fish and Game;  14 
(12)  Department of Public Safety;  15 
(13)  Department of Transportation and Public Facilities;  16 
(14)  Department of Environmental Conservation;  17 
(15)  Department of Corrections;  18 
(16)  Department of Family and Community Services; 19 
(17)  Department of Agriculture. 20 
   * Sec. 44. AS 44.37.020(a) is amended to read: 21 
(a)  The Department of Natural Resources shall administer the state program 22 
for the conservation and development of natural resources, including forests, parks, 23 
and recreational areas, land, water, [AGRICULTURE, SOIL CONSERVATION,] and 24 
minerals including petroleum and natural gas, but excluding commercial fisheries, 25 
sport fish, game, and fur-bearing animals in their natural state.  26 
   * Sec. 45. AS 44 is amended by adding a new chapter to read: 27 
Chapter 38. Department of Agriculture. 28 
Sec. 44.38.010. Commissioner of agriculture. The principal executive officer 29 
of the Department of Agriculture is the commissioner of agriculture. 30 
Sec. 44.38.020. Duties of the department. (a) The Department of Agriculture 31    34-LS0694\N 
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shall administer state programs for agriculture, soil conservation, and the conservation 1 
and development of state agricultural land. The department shall 2 
(1) obtain and publish information electronically and in print on 3 
subjects connected with agriculture, including community seed libraries established 4 
under AS 03.20.120; 5 
(2)  control and regulate the entry and transportation of seeds, plants, 6 
and other horticultural products; 7 
(3)  control and eradicate the spread of pests injurious to plants, trees, 8 
vegetables, livestock, and poultry; 9 
(4)  aid in developing used and unused agricultural resources; and 10 
(5) experiment and determine practical methods of growing, 11 
processing, soil analysis, eradication of obnoxious weeds, control of insects, and 12 
cheaper and more satisfactory methods of land clearing. 13 
(b)  The Department of Agriculture may 14 
(1)  advise persons who establish or operate a community seed library 15 
under AS 03.20.120; and 16 
(2)  post on the department's Internet website and annually update the 17 
following: 18 
(A)  information about noncommercial giving or exchanging of 19 
seed, including information about community seed libraries established under 20 
AS 03.20.120, community seed library locations, community seed library 21 
facilitators, and best practices for noncommercial giving or exchanging of 22 
seed; 23 
(B) an online registration form for a person involved in 24 
noncommercial giving or exchanging of seed to submit to the department for 25 
publication, without a fee, information under AS 03.20.140; 26 
(C) information provided for publication under (B) of this 27 
paragraph. 28 
Sec. 44.38.030. Regulations. The commissioner of agriculture may adopt 29 
regulations to carry out or assist in carrying out the powers and duties of the 30 
Department of Agriculture. 31    34-LS0694\N 
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   * Sec. 46. AS 44.62.330(a)(31) is amended to read: 1 
(31) Department of Agriculture [NATURAL RESOURCES] 2 
concerning the Alaska grain reserve program under former AS 03.12;  3 
   * Sec. 47. AS 03.09.020(b); AS 03.47.040(2); and AS 44.37.030 are repealed. 4 
   * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 5 
read: 6 
TRANSITION. (a) Employees of the Department of Natural Resources whose duties 7 
have been transferred by this Act to the Department of Agriculture shall be transferred to the 8 
Department of Agriculture on the effective date of this Act.  9 
(b)  Members of any board or commission transferred by this Act whose terms have 10 
not expired by the effective date of this Act may continue to serve the remainder of their 11 
terms. 12 
(c) Litigation, hearings, investigations, and other proceedings pending under a law 13 
repealed or amended by this Act, or in connection with a function transferred by this Act, 14 
continue in effect and may be completed notwithstanding a transfer, repeal, or amendment 15 
provided for in this Act. 16 
(d)  Contracts, rights, liabilities, and obligations created by or under a law repealed or 17 
affected by this Act, and in effect on the effective date of this Act, remain in effect 18 
notwithstanding this Act's taking effect. 19 
(e)  Certificates, licenses, orders, and regulations in effect on the effective date of this 20 
Act that were issued or adopted under the authority of a law amended or repealed by this Act, 21 
or in connection with a function transferred by this Act, remain in effect for the term issued 22 
and shall be enforced by the agency to which the function is transferred under this Act until 23 
revoked, vacated, or amended by the agency to which the function is transferred. 24 
(f)  Records, equipment, appropriations, and other property of an agency of the state 25 
whose functions are transferred under this Act shall be transferred to implement the 26 
provisions of this Act. 27 
   * Sec. 49. This Act takes effect July 1, 2025. 28