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HOUSE BILL NO. 353
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY REPRESENTATIVE VANCE
Introduced: 2/23/26
Referred: Community and Regional Affairs, Resources
A BILL
FOR AN ACT ENTITLED
"An Act relating to the sale and lease of agricultural land; defining 'agricultural 1
purposes' under the Alaska Land Act; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 4
to read: 5
LEGISLATIVE INTENT. It is the intent of the legislature that state procedures for the 6
sale and lease of agricultural land support agricultural development in the state and improve 7
food security by encouraging increased in-state production of animal and agricultural products 8
and reducing state residents' reliance on food imported from outside the state. 9
* Sec. 2. AS 38.04.020(i) is amended to read: 10
(i) Nothing in this section prevents the disposal of other land by the 11
commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.059, 38.05.070, the 12
issuance of remote recreational cabin site leases or sales under AS 38.05.600, 13
AS 38.08, AS 38.09, or other law. 14
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* Sec. 3. AS 38.05.059 is amended to read: 1
Sec. 38.05.059. Sale of agricultural land. The commissioner, after consulting 2
with the Board of Agriculture and Conservation (AS 03.09.010), may provide for the 3
sale of land classified under AS 38.05.020(b)(6) for agricultural uses in parcels or 4
tracts described by aliquot parts. The parcels or tracts are subject to state subdivision 5
requirements and municipal ordinances. Money from a sale of agricultural land shall 6
be separately accounted for and may be appropriated to the agricultural revolving loan 7
fund (AS 03.10.040). A parcel or tract sold under this section 8
(1) is subject to AS 38.05.321 and must be used for agricultural 9
purposes; 10
(2) may not be less than five acres or more than 320 acres in total. 11
* Sec. 4. AS 38.05.059 is amended by adding new subsections to read: 12
(b) A person may apply to purchase a parcel or tract of land for an agricultural 13
purpose under this section by submitting an application to the department. An 14
application to purchase agricultural land must include 15
(1) the specific location, description, and amount of land the applicant 16
wants to purchase; 17
(2) a detailed summary of the proposed agricultural purposes the land 18
will be used for and a description of likely agricultural production from the land under 19
the proposal; and 20
(3) additional information and requirements established by the 21
department in regulation, including any application fees. 22
(c) Upon receiving an application to purchase a parcel or tract of state land for 23
agricultural purposes under this section, the department shall solicit competitive 24
interest by issuing a public notice in the manner prescribed in AS 38.05.945. The 25
notice must contain an announcement seeking competitive interest. If competing 26
applications are received following notice, the commissioner will make the sale under 27
(d) of this section. 28
(d) If the director receives two or more applications for the same parcel or 29
tract, the director shall consider reasonable factors in awarding the sale, including 30
proposed monetary consideration, the value to the state, the potential agricultural 31
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production from the proposed uses of the land, and any additional requirement 1
established by the department in regulation. If one or more applicants have proposed 2
different agricultural uses for a parcel or tract, the director shall consider each 3
applicant's proposal and select the proposal the commissioner determines is likely to 4
make a greater contribution to agricultural production in the state notwithstanding the 5
proposed monetary consideration. An application for the purchase of state land under 6
this section, including supporting documentation submitted to the department for 7
review, is a public record subject to AS 40.25.110 - 40.25.220. An aggrieved applicant 8
may appeal to the commissioner for a review of the director's determination within 20 9
days after receiving notice of the determination. 10
(e) Before signing a formal conveyance under this section, the director must 11
(1) evaluate information received during a solicitation of competitive 12
interest under (c) of this section; and 13
(2) find under AS 38.05.035(e) that the sale of the land for the 14
proposed agricultural purpose is in the best interests of the state; the findings must 15
include 16
(A) estimated agricultural production from the land; 17
(B) the proposed monetary consideration under the agreement; 18
(C) the value of the land's potential agricultural production to 19
the state; and 20
(D) a summary of public comments received in response to the 21
solicitation of competitive interest required under (c) of this section and the 22
department's response to those comments. 23
(f) Before a final decision to dispose of agricultural land under this section, the 24
commissioner may hold a hearing to take testimony and shall 25
(1) provide notice and allow opportunity for comment in accordance 26
with AS 38.05.945; and 27
(2) consider all relevant comments or testimony received under this 28
section, AS 38.05.945, and 38.05.946. 29
(g) Before signing the formal conveyance, the commissioner may reject all 30
bids or offers for a parcel of agricultural land if the commissioner determines that the 31
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best interests of the state justify this action. If the commissioner rejects a bid or offer 1
for a parcel of agricultural land under this section, the commissioner shall provide the 2
bidder or offeror with written findings stating the reasons for the rejection. 3
(h) A parcel of land sold under this section is subject to appraisal under 4
AS 38.05.840 only if the commissioner determines in writing that the parcel is subject 5
to appraisal under AS 38.05.840. 6
(i) Before disposing of a parcel of agricultural land under this section, the 7
commissioner shall require the purchaser to post a performance bond or provide other 8
security to ensure compliance with the terms of the sale, including restoration of the 9
land in the event of abandonment. 10
(j) This section does not affect the disposal of minerals under AS 38.05.135 - 11
38.05.183. 12
* Sec. 5. AS 38.05.069(a) is amended to read: 13
(a) After consulting with the Board of Agriculture and Conservation 14
(AS 03.09.010), on a determination that the highest and best use of unoccupied land is 15
for agricultural purposes and that it is in the best interests of the state to sell or lease 16
the land, the commissioner shall grant to an Alaska resident owning and using or 17
leasing and using land for agricultural purposes a first option to purchase or lease the 18
unoccupied land situated adjacent to land presently held by the Alaska resident for the 19
amount of the high bid received at public auction or by sealed bid. If more than one 20
Alaska resident qualifies for a first option under this section, eligibility for the first 21
option shall be determined by lot, and the option must be exercised on the conclusion 22
of the public auction or opening of sealed bids. A parcel of agricultural land sold 23
under this section is subject to the acreage requirements of AS 38.05.059 [MAY 24
NOT BE LESS THAN 20 ACRES, AND A PARCEL OF AGRICULTURAL LAND 25
THAT IS ACQUIRED BY EXERCISE OF THE OPTION GRANTED IN THIS 26
SUBSECTION MAY NOT EXCEED 320 ACRES]. Agricultural land that is acquired 27
under this section must be used for agricultural purposes as required by AS 38.05.321 28
[LAW]. 29
* Sec. 6. AS 38.05.069(d) is amended to read: 30
(d) When not in conflict with this section, the provisions of 31
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(1) AS 38.05.045 - 38.05.105 apply to disposals under this section; 1
and 2
(2) AS 38.05.084 apply to leases issued under this section. 3
* Sec. 7. AS 38.05.070(c) is amended to read: 4
(c) A lease may be issued for a period up to 55 years, if the commissioner 5
determines it to be in the best interests of the state. The commissioner shall consider 6
the useful life of any improvements proposed and approved under AS 38.05.075 in 7
determining the term of the lease. The [IF THE] commissioner may declare a lease 8
void if the commissioner determines that 9
(1) the land or a part of it which is the subject of a grazing lease is not 10
being used for the purpose issued; or 11
(2) land leased under AS 38.05.084 is not being used for 12
agricultural purposes [, THE LEASE MAY BE DECLARED VOID]. 13
* Sec. 8. AS 38.05.070(e) is amended to read: 14
(e) The director may renew a lease issued under this section, AS 38.05.075, 15
38.05.083, or 38.05.810 upon its expiration if the lease is in good standing and the 16
lease renewal is determined to be in the best interests of the state. A renewal issued 17
under this subsection is not subject to AS 38.05.035(e). The director shall provide 18
notice of the lease renewal decision. A lease under 19
(1) this section, AS 38.05.075, or 38.05.810 may be renewed only once 20
for a term not longer than the initial term of the lease; and 21
(2) AS 38.05.084 may be renewed for a term not longer than 20 22
years [. THE DIRECTOR SHALL PROVIDE NOTICE OF THE LEASE RENEWAL 23
DECISION]. 24
* Sec. 9. AS 38.05.081(a) is amended to read: 25
(a) The commissioner may lease state land for carbon management purposes. 26
However, the commissioner may exclude from consideration land for which a person 27
has submitted a lease application under AS 38.05.083 or 38.05.084 if the 28
commissioner finds that excluding the land from consideration is in the public interest. 29
A lease agreement under this section must include land use restrictions and 30
authorizations consistent with the carbon management purpose of the lease. 31
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* Sec. 10. AS 38.05.081(c) is amended to read: 1
(c) Upon receiving an application to use state land for carbon management 2
purposes, unless the land applied for is excluded from consideration by the 3
commissioner under (a) of this section, the department shall solicit competitive 4
interest by issuing a public notice in the manner prescribed in AS 38.05.945. The 5
notice must contain an announcement seeking competitive interest. If competing 6
carbon management applications are received following notice, the applications will 7
be awarded under (d) of this section. In addition to issuing notice under AS 38.05.945, 8
the department shall provide public notice of an application received under this section 9
to a person leasing, or who has applied to lease, land under AS 38.05.083 or 38.05.084 10
that is within 25 miles of the land proposed for lease in the application received under 11
this section. 12
* Sec. 11. AS 38.05 is amended by adding a new section to read: 13
Sec. 38.05.084. Agricultural leases. (a) The commissioner, after consulting 14
with the Board of Agriculture and Conservation, may provide for the lease of land 15
classified under AS 38.05.020(b)(6) for agricultural purposes. The commissioner may 16
offer agricultural land for lease to the public at public auction, by sealed bid under 17
AS 38.05.075, by negotiation under AS 38.05.070, or as provided in this section. 18
Money from the lease of agricultural land shall be separately accounted for and may 19
be appropriated to the agricultural revolving loan fund (AS 03.10.040). A parcel 20
leased under this section 21
(1) must be used for agricultural purposes; 22
(2) may not be less than five acres or more than 320 acres in total. 23
(b) A person may apply to lease state land for an agricultural purpose under 24
this section by submitting an application to the department. An application to lease 25
agricultural land must include 26
(1) the specific location, description, and amount of land the applicant 27
wants to lease; 28
(2) a detailed summary of the proposed agricultural purposes the land 29
will be used for and a description of likely agricultural production from the leased land 30
under the proposal; and 31
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(3) additional information and requirements established by the 1
department in regulation, including any application fees. 2
(c) Upon receiving an application to lease state land for agricultural purposes 3
under this section, the department shall solicit competitive interest by issuing a public 4
notice in the manner prescribed in AS 38.05.945. The notice must contain an 5
announcement seeking competitive interest. If competing applications are received 6
following notice, the commissioner will award the lease under (d) of this section. 7
(d) If the director receives two or more applications for the same land, the 8
director shall consider reasonable factors in awarding the lease, including proposed 9
monetary consideration, the value to the state, the potential agricultural production 10
from the proposed uses of the land, and any additional requirement established by the 11
department in regulation. If one or more applicants have proposed different 12
agricultural uses for a parcel or tract of land, the director shall consider each 13
applicant's proposal and select the proposal the commissioner determines is likely to 14
make a greater contribution to agricultural production in the state notwithstanding the 15
proposed monetary consideration. An application for the lease of state land under this 16
section, including supporting documentation submitted to the department for review, 17
is a public record subject to AS 40.25.110 - 40.25.220. An aggrieved applicant may 18
appeal to the commissioner for a review of the director's determination within 20 days 19
after receiving notice of the determination. 20
(e) Before entering into a lease of agricultural land under this section, the 21
director must 22
(1) evaluate information received during a solicitation of competitive 23
interest under (c) of this section; and 24
(2) find under AS 38.05.035(e) that leasing the land for the proposed 25
agricultural purpose is in the best interests of the state; the findings must include 26
(A) the reasonably foreseeable agricultural production from the 27
lease; 28
(B) anticipated annual revenue that the lease will yield to the 29
state; 30
(C) the value of the land's potential agricultural production to 31
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the state; and 1
(D) a summary of public comments received in response to the 2
solicitation of competitive interest required under (c) of this section and the 3
department's response to those comments. 4
(f) Before a final decision to lease agricultural land under this section, the 5
commissioner may hold a hearing to take testimony and shall 6
(1) provide notice and allow opportunity for comment in accordance 7
with AS 38.05.945; and 8
(2) consider all relevant comments or testimony received under this 9
section, AS 38.05.945, and 38.05.946. 10
(g) The commissioner may deny an application if the commissioner 11
determines that the best interests of the state justify this action. If the commissioner 12
rejects an application for issuance of a lease of agricultural land, the commissioner 13
shall provide the applicant with written findings stating the reasons for the rejection. 14
(h) A parcel of land leased under this section is subject to appraisal under 15
AS 38.05.840 only if the commissioner determines in writing that the parcel is subject 16
to appraisal under AS 38.05.840. 17
(i) Subject to (a)(1) of this section, a person leasing land under this section 18
may sublease or assign the leased land under AS 38.05.095. 19
(j) Before issuing a lease under this section, the commissioner shall require the 20
lessee to post a performance bond or provide other security to ensure compliance with 21
the terms of the lease, including restoration of the land in the event of abandonment. 22
(k) The commissioner shall adopt regulations establishing criteria for the 23
issuance, denial, and renewal of leases of agricultural land and for limiting the amount 24
of agricultural land leased in an area to protect environmental and natural resources 25
and community interests. The regulations must provide for the consideration of 26
whether the proposed use of a parcel of agricultural land is compatible with the 27
traditional and existing uses of the area in which the parcel is located. 28
(l) When not in conflict with this section, the provisions of AS 38.05.070 - 29
38.05.105 apply to leases under this section. 30
(m) The commissioner shall adopt regulations establishing a lease-purchase 31
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program under which, if a lessee purchases leased land under AS 38.05.059, the sale 1
price of the land may be reduced by an amount equal to a portion of the lessee's lease 2
payments made to the state. The regulations must require that the lessee have used the 3
land for agricultural purposes during the lessee's tenancy to qualify for the program. 4
(n) This section does not affect the disposal of minerals under AS 38.05.135 - 5
38.05.183. 6
(o) A parcel leased under this section is subject to survey under AS 38.04.045 7
only if the commissioner determines in writing that the parcel is subject to survey 8
under AS 38.04.045. 9
* Sec. 12. AS 38.05.102 is amended to read: 10
Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081, or 11
38.05.083, or 38.05.084 if land within a leasehold created under AS 38.05.070 - 12
38.05.105 is offered for sale or long-term lease at the termination of the existing 13
leasehold, the director may, upon a finding that it is in the best interest of the state, 14
allow a holder in good standing of the existing leasehold to purchase or lease the land 15
for its appraised fair market value at the time of the sale or long-term lease. If land 16
within a leasehold created under AS 38.05.084 is offered for sale at the 17
termination of the existing leasehold, the director may, upon a finding that it is in 18
the best interest of the state, allow a holder of the lease to purchase the land 19
under AS 38.05.059. 20
* Sec. 13. AS 38.05.102 is amended by adding a new subsection to read: 21
(b) A lessee under AS 38.05.084 may apply to purchase the leased agricultural 22
land from the department under AS 38.05.059. The commissioner shall establish in 23
regulation the length of time a lessee of a parcel or tract of agricultural land under 24
AS 38.05.084 must use the land for agricultural purposes before the lessee is eligible 25
to purchase the land. If the commissioner finds that a lessee has used the leased land 26
for agricultural purposes for the length of time prescribed in regulation, the 27
commissioner shall notify the lessee and the lessee may apply to purchase the land 28
under AS 38.05.059. However, the director may not accept a proposal to purchase 29
leased land under AS 38.05.059 from a lessee who is otherwise qualified under this 30
subsection if the lessee is not currently using the leased land for agricultural purposes. 31
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* Sec. 14. AS 38.05.965 is amended by adding a new paragraph to read: 1
(29) "agricultural purposes" includes 2
(A) the commercial production or processing of crops, 3
livestock, or livestock products; 4
(B) dairying; 5
(C) the operation of greenhouses and hydroponic facilities for 6
the production of agricultural crops; 7
(D) the production, cultivation, rotation, fertilization, growing, 8
harvesting, storage, packaging, and preservation of an agricultural, 9
floricultural, apicultural, or horticultural crop or commodity; 10
(E) soil and land improvements that enhance the agricultural 11
productivity of the land; 12
(F) agricultural-tourism activities, including farm tours, 13
educational programs, and on-site marketing of agricultural products. 14
* Sec. 15. AS 38.05.069(f)(2) and 38.05.321(j) are repealed. 15
* Sec. 16. This Act takes effect July 1, 2026. 16