Session: State Capitol, Room 427 Juneau, AK 99801-1182 Phone: (907) 465-2828 Fax: (907) 465-4779 Interim: 35477 Kenai Spur Highway, Suite 101 B Soldotna, AK 99669 Phone: (907) 260-3041 Fax: (907) 260-3044 345 W. Sterling Highway, Suite 102 Homer, AK 99603 Phone: (907) 235-0690 Fax: (907) 235-4008

Sponsor Statement for SB 167
Agricultural Land

An Act instructing the commissioner of natural resources to issue a patent for the remaining interest in certain state land to the owner of the agricultural rights to that land.

This legislation is intended to resolve a problem that dates back to the 1964 earthquake. In 1943, the Ross Miller family homesteaded twenty-seven acres of land in Hope. In the early 1950s, the Millers leased fifteen acres of adjoining land from the Forest Service, which they used for pasture. During the '64 earthquake, the Millers lost eighteen of their twenty-seven acre homestead. The earthquake exchange program compensated the Millers for their loss by giving them only one acre of land. Subsequently, the state determined that the Millers had been treated unfairly and were entitled to the fifteen acres of leased Forest Service land as relief. In 1978, agricultural rights to this land were conveyed as provided by former state law AS 38.05.321.

For many reasons, fee simple title should have been granted at this time. Recently, DNR has declared that the state has no compelling interest in retaining the remaining interest in this property and therefore, supports conveying full land rights. Unfortunately, there are no existing statutes that would authorize DNR to remove the agricultural restrictions on this land.

SB 167 would make a minor statutory change to correct this situation. Anyone who received agricultural rights to land under sec. 6(a) of the Alaska Statehood Act would be eligible for fee simple title if the owner pays the fair market value for the state's remaining interest. This would only apply to tracts that are 15 acres or less.

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