An Act relating to the Board of Agriculture and Conservation, to the agricultural revolving loan fund, to the disposal of state agricultural land, and to the Alaska Natural Resource Conservation and Development Board; and providing for an effective date

For Immediate Release: March 9, 1999
Contact: Representative Jeannette James at (907) 465-3743.

Section 1 adds an entire new chapter to Title 3 Agriculture and Animals

CHAPTER 9. BOARD OF AGRICULTURE AND CONSERVATION

The NEW BOARD consists of seven members, appointed by the Governor:

One with business or financial experience,
One from statewide agriculture promotion organization,
One from statewide agriculture conservation organization,
Four from different aspects of commercial production agriculture.

They serve staggered three-year terms and receive $100/day compensation. Members elect a chair and a vice-chair. They also may appoint a director who can employ staff and is responsible for daily operations of the ARLF.

A majority of board members constitutes a quorum, and the board shall keep minutes which are submitted to the Commissioner of DNR and to LB&A.

The board may adopt regulations to carry out its duties.

The board may make recommendations to the Commissioner of DNR regarding identification and disposal of agricultural land.

Once a parcel of land is classified as agricultural, the board may carry out disposal of that land, and the proceeds may be appropriated into the ARLF.

Section 2 amends existing statute, authorizing the new board (instead of DNR) to make loans.

Section 3 amends existing statute, changing the interest rate on farm development, chattel, or irrigation loans from eight percent to five percent.

Section 4 amends existing statute, authorizing the new board (instead of the ARLF Board) to extend the term of a loan for up to three years.

Section 5 amends existing statute, authorizing the new board, in place of DNR and Division of Agriculture, to assess delinquency and penalties on loans.

Section 6 amends existing statute, changing the interest on farm product processing loans from eight percent to five percent.

Section 7 amends existing statute, changing the interest on loans for clearing land from eight percent to five percent.

Section 8 amends existing statute, authorizing the new board, instead of the Commissioner of DNR, to adopt regulations to establish other terms and interest rates for loans.

Section 9 amends existing statute, authorizing the new board to restructure loans by reducing interest and extending terms to a borrower who has experienced three years of agricultural disaster during the last five years.

Section 10 amends existing statute, authorizing the new board, rather than the ARLF Board, to approve an application for loan restructuring.

Section 11 amends existing statute, designating the new board, instead of the Commissioner of DNR, to be the recipient of out-standing balance payments.

Section 12 amends existing statue, authorizing the legislature to appropriate money from the ARLF for costs of administering the operations of the new board.

Section 13 amends existing statute, giving the new board, instead of the commissioner of DNR, authority to administer the ARLF. A loan may not be made without the approval of a majority of the board, except that emergency loans up to $50,000 may be approved by majority vote of a committee composed of the board chair, the director of the division of agriculture, and a loan officer employed by the board.

Section 14 amends existing statute, exempting the new board from public meeting requirements.

Section 15 amends existing statute, allowing the new board, rather than DNR, to establish credits for loans maintained in good financial standing.

Section 16 amends existing statute, allowing the new board, rather than the Director of Agriculture, to dispose of property acquired through foreclosure or default. It also allows money from such disposals to be appropriated to the ARLF.

Section 17 amends existing statute and adds a new subsection, specifying that land designated agricultural shall be disposed of by the new board, and authorizes the new board to carry out the duties of the Commissioner or the Director in disposing of land into private ownership.

Section 18 amends existing statute, authorizing the new board to convey agricultural use rights.

Section 19 amends existing statute, permitting the new board to waive, postpone, or modify development requirements of a contract for sale of agricultural land.

Section 20 amends existing statute, requiring the new board to approve action necessary to protect the state's contractual or other property rights.

Section 21 amends existing statute, allowing the new board, rather than the Commissioner of DNR, to adopt regulations specifying qualifications for lottery participants involving agricultural land disposal.

Section 22 amends existing statute, authorizing the new board, instead of the Commissioner of DNR, to provide for the sale of agricultural land subject to state subdivision requirements and municipal ordinances.

Section 23 amends existing statute, allowing the new board, rather than the Commissioner of DNR, to provide for maximum interest rates, to declare a moratorium of up to five years on payments, to certify agreements with purchasers to perform development and expenditures during a moratorium, and to assure compliance with development plans during a moratorium.

Section 24 amends existing statute, authorizing the new board, rather than the commissioner of DNR, to grant an Alaska resident first option on auctioned agricultural land.

Section 25 amends existing statute, allowing the new board, rather than the Director of Agriculture, to transfer state agricultural land at public auction.

Section 26 amends existing statute, giving the new board, rather than DNR, authority to convey covenants.

Section 27 amends existing statute, allowing the new board, rather than the Commissioner of DNR, to require landowners' cooperation with soil and water conservation districts, and to require a development plan. The new board is also prohibited from limiting the landowners' rights to construct housing and other improvements and to subdivide and convey land, within statutory restrictions.

Section 28 amends existing statute, substituting the new board instead of DNR as the authority in dealing with landowners subdivisions of agricultural land. It also allows payments collected under this section to be appropriated to the ARLF.

Section 29 amends existing statute, substituting the new board instead of DNR as the authority in dealing with landowners' subdivisions of agricultural land and conveying it to persons outside the immediate family.

Section 30 amends existing statute, authorizing the new board to put up for competitive lease lots of not less than 320 acres, payments for which may be appropriated to the ARLF.

Section 31 amends existing statute, allowing the Commissioner of DNR to designate homestead entry state land that has been classified for agricultural use by the new board.

Section 32 amends existing statute, specifying conditions before homestead entry state land can be disposed of by the new board.

Section 33 amends existing statute, allowing either the Commissioner of DNR or the new board to give notice of land offered for homestead entry.

Section 34 amends existing statute, adding the new board's director and staff to the list of exempt service employees.

Section 35 adds the new board to the list of boards defined in statute.

Section 36 amends the definition of "board" to mean the new Board of Agriculture and Conservation.

Section 37 REPEALS existing statutes which:

Finally, a provision is repealed which allows the board to review decisions of the director of land and water management. This is unnecessary because the new board members will make these decision themselves.

Section 38 outlines the transition process from existing boards to the new board.

Section 39 sets the effective date of this bill as July 1, 1999.