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HOUSE CS FOR CS FOR SENATE BILL NO. 208(RES) am H
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE RESOURCES COMMITTEE
Amended: 5/17/26
Offered: 5/16/26
Sponsor(s): SENATORS BJORKMAN, Kiehl, Giessel, Yundt, Claman, Kaufman, Cronk, Rauscher, Tilton
REPRESENTATIVE Elam
A BILL
FOR AN ACT ENTITLED
"An Act relating to industrial hemp; relating to the sale and lease of state land for 1
agricultural uses; designating the O-S Cross cabbage, commonly known as 'giant green 2
cabbage,' as the official state vegetable; and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 03.05.010(a) is amended to read: 5
(a) The commissioner of natural resources shall 6
(1) direct, administer, and supervise promotional and experimental 7
work, extension services, and agricultural projects for the purpose of promoting and 8
developing commercial and noncommercial agricultural industry in the state, 9
including horticulture, dairying, cattle raising, fur farming, grain production, vegetable 10
production, and agricultural products; 11
(2) procure and preserve all information pertaining to developing the 12
agricultural industry in the state and disseminate that information to the public; 13
(3) assist prospective settlers and others to engage in the agricultural 14
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industry in the state by providing information about activities and programs essential 1
to developing the agricultural industry and areas in the state that are suitable for 2
agriculture; 3
(4) review the marketing, financing, transportation, and development 4
of agricultural products in the state, with special emphasis on local production, and 5
negotiate for the marketing of agricultural products of the state with federal and state 6
agencies operating in the state; 7
(5) regulate and control the entry in the state and the transportation, 8
sale, or use in the state of plants, seeds, vegetables, shell eggs, fruits and berries, 9
nursery stock, animal feeds, remedies and mineral supplements, fertilizers, and 10
agricultural chemicals to prevent the spread of pests, diseases, or toxic substances 11
injurious to the public interest and protect the agricultural industry against fraud, 12
deception, and misrepresentation; for purposes of this paragraph, the commissioner 13
may require registration, inspection, and testing and may establish procedures and 14
fees; 15
(6) regulate the farming of elk in a manner similar to the manner in 16
which the commissioner regulates domestic animals and livestock, to the extent that is 17
appropriate; 18
(7) adopt regulations relating to industrial hemp, including regulations 19
that 20
(A) specify approved sources or varieties of hemp seed or 21
propagation material to be grown, sold, or offered for sale by an individual 22
registered to produce industrial hemp, including material certified under a 23
federally approved hemp program, federally certified seed scheme, or 24
recognized third-party certifier, without requiring grow-out trials 25
conducted by the department; 26
(B) require testing, paid for by the registrant, for delta-9-27
tetrahydrocannabinol concentration following harvest of the industrial hemp, 28
allowing for independently accredited laboratories and samplers; 29
(C) provide for general production practices to avoid the 30
unintended distribution of industrial hemp seeds by registrants into 31
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nonagricultural land; 1
(D) establish an isolation distance [DISTANCES] for the 2
production of industrial hemp grown for certified or seed-purity production 3
of at least 1,000 meters, and recommend isolation distances for the 4
production of other industrial hemp; in this subparagraph, "isolation 5
distance" means the minimum separation required between two or more 6
varieties of the plant (genus) Cannabis for the purpose of keeping the seed 7
pure; 8
(E) permit manufacturing and retail sale of industrial hemp and 9
products made from industrial hemp; 10
(F) establish a registration and renewal procedure for a 11
participant in the industrial hemp program developed under AS 03.05.076; 12
(G) establish a tiered testing frequency based on risk 13
categories developed in regulation that considers crop history and past 14
compliance; 15
(H) allow a harvest window of not more than 30 days after 16
sample collection, with permissible extensions for weather or other good 17
cause; 18
(I) establish tiered grower categories, including a micro-19
grower category, with scaled reporting, inspection, testing, and fee 20
requirements; 21
(J) eliminate permits for in-state transportation of 22
industrial hemp between registered parties when a shipment is 23
accompanied by a certificate of analysis or other approved shipping 24
documentation; 25
(K) establish corrective-action-plan procedures to enforce 26
an industrial hemp violation that prioritize compliance, include a written 27
notice of the registrant's noncompliance, provide an opportunity for the 28
registrant to cure the noncompliance, and establish objective criteria for 29
escalation, including civil penalties, suspension, or revocation; 30
(8) submit a list of individuals registered to produce industrial hemp 31
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under AS 03.05.076 and the expiration dates of the registrations to the Marijuana 1
Control Board and the Department of Public Safety; 2
(9) regulate the labeling of seed that does not comply with the 3
requirements of AS 03.20.130. 4
* Sec. 2. AS 03.05.010(c) is amended to read: 5
(c) The commissioner of natural resources shall notify the Marijuana Control 6
Board and the Department of Public Safety of a person's repeated or knowing 7
violations of state statutes or regulations relating to industrial hemp. Industrial 8
hemp shall be tested using a federally compliant testing method that accounts for 9
measurement uncertainty. Noncompliant industrial hemp is industrial hemp that 10
tests above 0.3 percent delta-9 tetrahydrocannabinol on a dry-weight basis 11
[WHEN THE COMMISSIONER ISSUES A STOP ORDER]. The commissioner of 12
natural resources shall 13
(1) [SHALL] issue a stop order to a person 14
[(A) NOT REGISTERED UNDER AS 03.05.076 WHO IS 15
FOUND TO BE PRODUCING A PLANT WITH DELTA-9-16
TETRAHYDROCANNABINOL; OR 17
(B)] registered under AS 03.05.076 who is found to be 18
producing a plant with delta-9-tetrahydrocannabinol over one percent; and 19
(2) allow [MAY ISSUE A STOP ORDER TO] a person registered 20
under AS 03.05.076 who is found to be producing a plant with delta-9-21
tetrahydrocannabinol between 0.3 percent and one percent to retain and recondition, 22
remediate, or convert the plant to a nonintoxicating industrial use before issuing 23
a stop order requiring destruction of the plant. 24
* Sec. 3. AS 03.05.010 is amended by adding a new subsection to read: 25
(e) The commissioner of natural resources may issue enforcement actions for 26
an industrial hemp violation using the corrective-action plan developed under 27
(a)(7)(K) of this section. 28
* Sec. 4. AS 03.05.076(a) is amended to read: 29
(a) Industrial hemp is an agricultural crop in the state. An individual who 30
produces industrial hemp shall apply to the department for registration under this 31
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section. Registration is valid for one year but may be renewed. An application for 1
registration or renewal must be on a form prescribed by the department that includes 2
(1) the name and address of the applicant; 3
(2) the address and global positioning system coordinates of the area to 4
be used for the production of industrial hemp; and 5
(3) the applicant's acreage or estimated plant count sufficient to 6
determine the applicant's tiered grower category under AS 03.05.010(a)(7)(I) [A 7
SIGNED STATEMENT BY THE APPLICANT, MADE UNDER THE PENALTY 8
OF PERJURY, AFFIRMING THAT THE APPLICANT 9
(A) HAS NOT BEEN CONVICTED OF A FELONY 10
RELATED TO A CONTROLLED SUBSTANCE IN THIS OR ANOTHER 11
JURISDICTION WITHIN THE 10 YEARS IMMEDIATELY PRECEDING 12
THE DATE OF APPLICATION; OR 13
(B) WAS LAWFULLY GROWING HEMP BEFORE 14
DECEMBER 20, 2018, AND WAS NOT CONVICTED OF A FELONY 15
RELATED TO A CONTROLLED SUBSTANCE IN THIS OR ANOTHER 16
JURISDICTION AFTER THAT DATE]. 17
* Sec. 5. AS 03.05.076(b) is amended to read: 18
(b) An individual registered under this section may 19
(1) produce industrial hemp, including growing, harvesting, 20
possessing, transporting, processing, selling, or buying industrial hemp; 21
(2) use any propagation method, including planting seeds or starts or 22
using clones or cuttings to produce industrial hemp; 23
(3) retain industrial hemp seeds for the purpose of propagating 24
industrial hemp in future growing seasons [YEARS]; 25
(4) retain and recondition, remediate, or convert any industrial hemp 26
that tests between 0.3 percent and one percent delta-9-tetrahydrocannabinol on a dry-27
weight basis. 28
* Sec. 6. AS 03.05.076(c) is amended to read: 29
(c) An individual registered under this section shall 30
(1) comply with testing standards and procedures established by the 31
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commissioner of natural resources by regulation; 1
(2) maintain, for at least three years following the sale or transfer of 2
industrial hemp, records showing 3
(A) the name and address of the person that received the 4
industrial hemp; 5
(B) the amount of industrial hemp transferred; 6
(3) make the records required under (2) of this subsection available for 7
inspection by the department during normal business hours if the department provides 8
at least 10 [THREE] days' notice before inspecting the records. 9
* Sec. 7. AS 03.05.076(d) is amended to read: 10
(d) The department shall 11
(1) establish fee levels for application, registration, and renewal of 12
registration so that the total amount of fees collected under this section approximately 13
equals the regulatory costs for regulating the industrial hemp industry, with reduced 14
or waived fees for micro-growers; 15
(2) annually review each fee level to determine whether the regulatory 16
cost of industrial hemp is approximately equal to the fees collected; 17
(3) notify the Marijuana Control Board and the Department of Public 18
Safety when the department issues a notice for a repeated or knowing [A STOP-19
SALE ORDER AND ISSUES A] violation [NOTICE] under this section; 20
(4) require an individual registered under this section whose industrial 21
hemp tests over one percent delta-9-tetrahydrocannabinol to destroy the product so 22
that it cannot be used for the purpose of reconditioning other hemp crops or gifted or 23
transferred to another individual other than for the purpose of having the industrial 24
hemp destroyed in full form; 25
(5) issue a notice to an individual for a repeated or knowing 26
violation of state statutes or regulations relating to industrial hemp. 27
* Sec. 8. AS 03.05.076(e) is amended to read: 28
(e) The department may 29
(1) [SHALL] issue a stop-sale order and issue a violation notice to a 30
person who is producing industrial hemp without a current registration; 31
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(2) [MAY] adopt regulations regarding approved shipping 1
documentation for the transportation of industrial hemp and eliminate permits for in-2
state transportation between registered parties; 3
(3) [MAY] conduct random tests and inspections of industrial hemp 4
for delta-9-tetrahydrocannabinol concentration produced by an individual registered 5
under this section; random tests and inspections under this paragraph may use 6
risk-based tiers with reduced frequency for low-risk growers, products, or 7
production or testing methods approved by the department in regulation. 8
* Sec. 9. AS 03.05.079 is amended to read: 9
Sec. 03.05.079. Production in violation of delta-9-tetrahydrocannabinol 10
limit. (a) Notwithstanding AS 11.71.040 - 11.71.060, an individual registered under 11
AS 03.05.076 to produce industrial hemp whose product has a delta-9-12
tetrahydrocannabinol content between 0.3 percent and one percent may retain and 13
recondition, remediate, or convert the product as provided in AS 03.05.076(b)(4). 14
(b) An individual who retains but fails to recondition, remediate, or convert 15
an industrial hemp product described in (a) of this section is guilty of a violation. 16
* Sec. 10. AS 03.05.100 is amended by adding a new paragraph to read: 17
(6) "micro-grower" means an individual registered under AS 03.05.076 18
to produce industrial hemp whose product is cultivated on less than one-quarter of an 19
acre or who has fewer than 200 plants, including indoor or greenhouse production. 20
* Sec. 11. AS 38.04.020(i) is amended to read: 21
(i) Nothing in this section prevents the disposal of other land by the 22
commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.059, 38.05.070, the 23
issuance of remote recreational cabin site leases or sales under AS 38.05.600, 24
AS 38.08, AS 38.09, or other law. 25
* Sec. 12. AS 38.05.059 is amended to read: 26
Sec. 38.05.059. Sale of agricultural land. The commissioner, after consulting 27
with the Board of Agriculture and Conservation (AS 03.09.010), may provide for the 28
sale of land classified under AS 38.05.020 [AS 38.05.020(b)(6)] for agricultural uses 29
in parcels or tracts described by aliquot parts. The parcels or tracts are subject to state 30
subdivision requirements and municipal ordinances. The commissioner shall 31
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publish a schedule that provides per-acre prices of land, based on the region 1
within which the land is located. The commissioner shall ensure that the 2
schedule serves the best interest of the state. The commissioner may set land sale 3
prices below the market rate. Money from a sale of agricultural land shall be 4
deposited in the state land disposal income fund (AS 38.04.022). The 5
commissioner may offer land classified for agricultural uses for sale at public 6
auction under AS 38.05.057(c), by sealed bid under AS 38.05.055, or as provided 7
in (b) of this section. A parcel or tract sold under this section is subject to 8
AS 38.05.321 and must be used for agricultural uses [SEPARATELY 9
ACCOUNTED FOR AND MAY BE APPROPRIATED TO THE AGRICULTURAL 10
REVOLVING LOAN FUND (AS 03.10.040)]. 11
* Sec. 13. AS 38.05.059 is amended by adding new subsections to read: 12
(b) The department may solicit applications for the purchase of state 13
agricultural land under this section after the director issues a written finding under 14
AS 38.05.035(e) that the sale is in the best interests of the state and the department 15
provides notice of the sale under AS 38.05.945. A person may apply to purchase a 16
parcel or tract of land offered for sale under this section by submitting an application 17
to the department. An application to purchase agricultural land must include 18
(1) the specific land the applicant wants to purchase; 19
(2) a detailed summary of the proposed agricultural uses the land will 20
be used for; 21
(3) a plan for soil and water conservation; 22
(4) information supporting the financial viability of the applicant's 23
proposed agricultural uses for the land, including any marketing plans; 24
(5) the applicant's relevant qualifications, training, and experience; and 25
(6) additional information and requirements established by the 26
department by regulation, including any application fees. 27
(c) The director shall, in consultation with the director of agriculture, evaluate 28
an application submitted under this section using scoring criteria established in 29
regulation by the department. Criteria developed under this subsection must be 30
flexible in application and account for the range of land offered under this subsection 31
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and the variety of agricultural uses that the land may accommodate. The department 1
may provide the applicable criteria, and how an application submitted under this 2
section will be scored under those criteria, in a solicitation of interest for a particular 3
parcel or tract. The criteria must include 4
(1) the department's assessment of the feasibility and value of the 5
proposed agricultural use; 6
(2) applicable conservation and stewardship considerations; 7
(3) applicant qualifications and experience; and 8
(4) financial viability of the proposed agricultural use. 9
(d) If the director, in consultation with the director of agriculture, finds, using 10
the scoring criteria established under (c) of this section, that a sale of agricultural land 11
to an applicant under (b) of this section is in the best interests of the state, the 12
commissioner may sell the parcel or tract to the applicant. If the director has received 13
two or more applications for the same parcel or tract, the commissioner may sell the 14
parcel or tract to the applicant whose proposal the director finds, using the scoring 15
criteria established under (c) of this section, and after consulting with the director of 16
agriculture, best serves the interests of the state. An application for the purchase of 17
state land under this section, including supporting documentation submitted to the 18
department for review, is a public record subject to AS 40.25.110 - 40.25.220. The 19
commissioner shall publish all applications received for the purchase of the land, 20
including supporting documentation submitted to the department, and the department's 21
evaluation and scoring of the applications under (c) of this section. An aggrieved 22
applicant may appeal to the commissioner for a review of the director's finding within 23
20 days after receiving notice of the finding. 24
* Sec. 14. AS 38.05.069(d) is amended to read: 25
(d) When not in conflict with this section, the provisions of 26
(1) AS 38.05.045 - 38.05.105 apply to disposals under this section; 27
and 28
(2) AS 38.05.084 apply to leases issued under this section. 29
* Sec. 15. AS 38.05.070(c) is amended to read: 30
(c) A lease may be issued for a period up to 55 years, if the commissioner 31
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determines it to be in the best interests of the state. The commissioner shall consider 1
the useful life of any improvements proposed and approved under AS 38.05.075 in 2
determining the term of the lease. The [IF THE] commissioner may declare a lease 3
void if the commissioner determines that 4
(1) the land or a part of it which is the subject of a grazing lease is not 5
being used for the purpose issued; or 6
(2) land leased under AS 38.05.084 is not being used for 7
agricultural uses [, THE LEASE MAY BE DECLARED VOID]. 8
* Sec. 16. AS 38.05.070(e) is amended to read: 9
(e) The director may renew a lease issued under this section, AS 38.05.075, 10
38.05.083, 38.05.084, or 38.05.810 upon its expiration if the lease is in good standing 11
and the lease renewal is determined to be in the best interests of the state. A renewal 12
issued under this subsection is not subject to AS 38.05.035(e). The director shall 13
provide notice of the lease renewal decision. A lease under 14
(1) this section, AS 38.05.075, or 38.05.810 may be renewed only once 15
for a term not longer than the initial term of the lease; and 16
(2) AS 38.05.084 may not exceed 20 years under AS 38.05.084(e) [. 17
THE DIRECTOR SHALL PROVIDE NOTICE OF THE LEASE RENEWAL 18
DECISION]. 19
* Sec. 17. AS 38.05.075(a) is amended to read: 20
(a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.081, 21
38.05.082, 38.05.083, 38.05.084, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 22
38.05.810, and this section, when competitive interest has been demonstrated or the 23
commissioner determines that it is in the state's best interests, leasing shall be made at 24
public auction or by sealed bid, at the discretion of the director, to the highest qualified 25
bidder as determined by the commissioner. A bidder may be represented by an 26
attorney or agent at a public auction. In the public notice of a lease to be offered at 27
public auction or by sealed bid, the commissioner shall specify a minimum acceptable 28
bid and the lease compensation method. The lease compensation method shall be 29
designed to maximize the return on the lease to the state and shall be a form of 30
compensation set out in AS 38.05.073(m). An aggrieved bidder may appeal to the 31
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commissioner within five days for a review of the determination. The leasing shall be 1
conducted by the commissioner, and the successful bidder shall deposit at the public 2
auction or with the sealed bid the first year's rental or other lease compensation as 3
specified by the commissioner, or that portion of it that the commissioner requires in 4
accordance with the bid. The commissioner shall require, under AS 38.05.860, 5
qualified bidders to deposit a sum equal to any survey or appraisal costs reasonably 6
incurred by another qualified bidder acting in accordance with the regulations of the 7
commissioner or incurred by the department under AS 38.04.045 and AS 38.05.840. If 8
a bidder making a deposit of survey or appraisal costs is determined by the 9
commissioner to be the highest qualified bidder under this subsection, the deposit shall 10
be paid to the unsuccessful bidder who incurred those costs or to the department if the 11
department incurred the costs. All costs for survey and appraisal shall be approved in 12
advance in writing by the commissioner. The commissioner shall immediately issue a 13
receipt containing a description of the land or interest leased, the price bid, and the 14
terms of the lease to the successful qualified bidder. If the receipt is not accepted in 15
writing by the bidder under this subsection, the commissioner may offer the land for 16
lease again under this subsection. A lease, on a form approved by the attorney 17
general, shall be signed by the successful bidder and by the commissioner. 18
* Sec. 18. AS 38.05 is amended by adding a new section to read: 19
Sec. 38.05.084. Leases of state land for agricultural uses. (a) The 20
commissioner may lease state land classified under AS 38.05.020 for agricultural uses. 21
Money from the lease of agricultural land shall be deposited in the state land disposal 22
income fund (AS 38.04.022). The commissioner may offer agricultural land for lease 23
to the public at public auction, by sealed bid under AS 38.05.075, by negotiation under 24
AS 38.05.070, or as provided in this section. State land that is not classified as 25
agricultural land under AS 38.05.020 may also be leased for agricultural uses under 26
this section. A lease issued under this section must include land use restrictions and 27
authorizations consistent with the agricultural use of the lease. However, the 28
commissioner shall permit a person leasing land under this section to construct 29
housing for farmers and farm laborers if the construction accords with the person's 30
agricultural development plan approved by the director under (c) of this section. 31
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(b) A person may apply to lease state land for an agricultural use under this 1
section by submitting an application to the department. An application to lease 2
agricultural land must include 3
(1) the specific location, description, and amount of land the applicant 4
wants to lease; 5
(2) a detailed summary of the proposed agricultural uses the land will 6
be used for; 7
(3) an agricultural development plan that 8
(A) details proposed crop plans or livestock production; 9
(B) includes a timeline for agricultural production and 10
infrastructure development on the land; 11
(C) provides how soil and water will be conserved; 12
(D) describes proposed infrastructure, including housing, 13
support, or other auxiliary infrastructure; 14
(4) information supporting the financial viability of the proposal, 15
including any marketing plans; 16
(5) the applicant's relevant qualifications, training, and experience; and 17
(6) additional information and requirements established by the 18
department by regulation, including any application fees. 19
(c) The director shall, in consultation with the director of agriculture, evaluate 20
an application submitted under this section using scoring criteria established in 21
regulation by the department under AS 38.05.059(c). Upon the director's request, an 22
applicant may amend and resubmit an application provided under this section before 23
the director approves or denies the application. 24
(d) If the director finds that a lease is in the best interests of the state, the 25
department shall, upon receiving an application to lease state land for agricultural uses 26
under this section, solicit competitive interest by issuing a public notice in the manner 27
prescribed in AS 38.05.945. The notice must contain an announcement seeking 28
competitive interest. If, following notice, the director has received only one 29
application and finds, using the scoring criteria established in regulation by the 30
department under AS 38.05.059(c), that the lease is in the best interests of the state, 31
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the commissioner may award a lease to the applicant. If, following notice, the director 1
has received two or more applications for the same land, the commissioner may award 2
a lease to the applicant whose proposal the director finds, using the scoring criteria 3
established in regulation by the department under AS 38.05.059(c), best serves the 4
interests of the state, notwithstanding the proposed monetary consideration. An 5
application for the lease of state land under this section, including supporting 6
documentation submitted to the department for review, is a public record subject to 7
AS 40.25.110 - 40.25.220. The commissioner shall publish all applications received 8
for the lease of the land, including supporting documentation submitted to the 9
department, and the department's evaluation and scoring of the applications under (c) 10
of this section. An aggrieved applicant may appeal to the commissioner for a review 11
of the director's finding within 20 days after receiving notice of the finding. 12
(e) Notwithstanding AS 38.05.070(c) and (e), a lease for state land under this 13
section may not exceed 20 years, with an option for renewal terms that may not 14
exceed 20 years each, if the lessee continues to meet the conditions of the lease. The 15
director shall establish by regulation criteria for lease termination, lease renewal, and 16
requirements for returning land to the state. The commissioner may terminate a lease 17
under this section if the lessee fails to use the leased land for agricultural uses or 18
otherwise fails to adhere to the terms and conditions of the agricultural development 19
plan approved by the director under this section. However, the commissioner may 20
modify a lessee's agricultural development plan if the commissioner makes a written 21
finding that the plan should be modified because of economic hardship or other 22
extenuating circumstances. 23
(f) Land leased under this section may be subleased or assigned as provided in 24
AS 38.05.095 if the sublessee or assignee agrees in writing to adhere to the terms and 25
conditions of the agricultural development plan for the land approved by the director 26
under this section, and provides a copy of the agreement to the director. 27
(g) If the commissioner determines that it is in the best interests of the state to 28
sell land leased under this section, the commissioner shall grant a lessee who has used 29
the land for agricultural uses for at least seven years and who is in compliance with the 30
terms and conditions of the lease a first option to purchase the land under 31
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AS 38.05.059. Notwithstanding whether the land is classified as agricultural land 1
under AS 38.04.020, land sold under this section is subject to AS 38.05.321. If a 2
lessee does not use the land leased under this section for agricultural uses for at least 3
seven years, the lessee is not eligible for a preference under this subsection. 4
(h) The director shall establish by regulation an agricultural fee schedule for 5
compensation for a lease under this section. Rent may be set below fair market rate. 6
(i) State land leased for agricultural uses under this section is subject to 7
(1) appraisal under AS 38.05.840 only if the commissioner determines 8
in writing that the site is subject to appraisal under AS 38.05.840; 9
(2) survey under AS 38.04.045(b) only if the commissioner determines 10
in writing that the site is subject to survey under AS 38.04.045(b); and 11
(3) inspection by the department under (j) of this section to ascertain 12
and enforce compliance with the terms and conditions of a lease under this section. 13
(j) The department shall inspect land leased under this section at least once 14
biennially. An inspection under this section, at the discretion of the department, may 15
be conducted virtually or employ an unmanned aircraft system. In this subsection, 16
"unmanned aircraft system" has the meaning given in AS 18.65.909. 17
(k) A lessee who violates a provision of this section may be assessed a civil 18
penalty by the director. The director shall establish by regulation a schedule of 19
(1) applicable fines that a person may be required to pay under this 20
section; and 21
(2) administrative and enforcement actions applicable to violation of 22
the terms and conditions of a lease issued under this section. 23
(l) The commissioner shall adopt regulations establishing a lease-purchase 24
program under which, if a lessee purchases leased land under AS 38.05.059, the sale 25
price of the land may be reduced by an amount equal to a portion of the lessee's lease 26
payments made to the state. The regulations must require that the lessee have used the 27
land for agricultural uses during the lessee's tenancy to qualify for the program. 28
(m) In this section, "agricultural uses" means 29
(1) the commercial production of useful plants and animals; 30
(2) the construction of improvements for animals or improvements that 31
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are reasonably required for or related to agricultural use; 1
(3) the use of gravel reasonably required or related to agricultural 2
production on the leased land; and 3
(4) the removal and disposal of timber on the leased land to bring the 4
land into agricultural use. 5
* Sec. 19. AS 38.05.102 is amended to read: 6
Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081, 7
[OR] 38.05.083, or 38.05.084, if land within a leasehold created under AS 38.05.070 - 8
38.05.105 is offered for sale or long-term lease at the termination of the existing 9
leasehold, the director may, upon a finding that it is in the best interest of the state, 10
allow a holder in good standing of the existing leasehold to purchase or lease the land 11
for its appraised fair market value at the time of the sale or long-term lease. If land 12
within a leasehold created under AS 38.05.084 is offered for sale, the director 13
may, upon a finding that it is in the best interests of the state, allow a holder of 14
the lease to purchase the land under AS 38.05.059. 15
* Sec. 20. AS 38.05.321(g) is amended to read: 16
(g) A perpetual covenant described in (a) of this section may be enforced by 17
the department under (k) of this section or [ONLY] by a civil action brought by the 18
state, a municipality, or a resident. If a municipality or a resident brings an action 19
under this subsection, the municipality or resident shall also serve a copy of the 20
summons and complaint on the state in the manner prescribed by the Alaska Rules of 21
Civil Procedure for service on the state. An action may be maintained under this 22
subsection only if 23
(1) commenced within six years after the cause of action has accrued; 24
and 25
(2) the plaintiff has first notified in writing the appropriate soil and 26
water conservation district under AS 41.10 of the violation of the covenant at least 90 27
days before the civil action is filed. 28
* Sec. 21. AS 38.05.321 is amended by adding a new subsection to read: 29
(k) If a landowner does not cooperate with a soil and water conservation 30
district as required by (d)(1) of this section, fails to prepare and implement a schedule 31
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of agricultural development required by the commissioner under (d)(2) of this section, 1
or violates the covenant described in (a) of this section, the department may assess 2
civil penalties. In accordance with a schedule adopted in regulation, the department 3
may assess and collect these and other civil penalties for violations of this section and 4
regulations adopted under this section. 5
* Sec. 22. AS 43.61.010 is amended by adding a new subsection to read: 6
(g) The tax imposed by (a) of this section does not apply to industrial hemp 7
produced in compliance with AS 03.05.076, or to a product made from industrial 8
hemp if the product contains not more than 0.3 percent delta-9-tetrahydrocannabinol 9
content on a dry-weight basis as determined by testing that complies with the 10
requirements of AS 03.05.010(c). 11
* Sec. 23. AS 44.09 is amended by adding a new section to read: 12
Sec. 44.09.055. State vegetable. The O-S Cross cabbage (Brassica oleracea 13
var. capitata), commonly known as "giant green cabbage," is the official vegetable of 14
the state. 15
* Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 16
read: 17
TRANSITION: REGISTRANTS. (a) An individual who held a valid 18
registration under AS 03.05.076 during the period between January 1, 2021, and 19
December 31, 2025, and whose registration lapsed solely as a result of regulatory 20
action by the Department of Natural Resources during the period between January 1, 21
2024, and December 31, 2025, is eligible for reinstatement following application 22
without paying a renewal of registration fee. 23
(b) The Department of Natural Resources may not require the destruction of 24
industrial hemp or a product made from industrial hemp that is lawfully held by a 25
registrant under (a) of this section if the industrial hemp or product made from 26
industrial hemp satisfies the testing standards in AS 03.05.076(c), as amended by sec. 27
6 of this Act. 28
* Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 29
read: 30
REGULATIONS. The Department of Natural Resources may adopt 31
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regulations necessary to implement secs. 1 - 10, 22, and 24 of this Act. The 1
regulations take effect under AS 44.62 (Administrative Procedure Act), but not before 2
the effective date of this section. 3
* Sec. 26. Sections 23 and 25 of this Act take effect immediately under AS 01.10.070(c). 4
* Sec. 27. Sections 1 - 10, 22, and 23 of this Act take effect July 1, 2026. 5
* Sec. 28. Except as provided in secs. 26 and 27 of this Act, this Act takes effect January 1, 6
2027. 7