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