This bill amends existing laws regarding the leasing of state land for agricultural purposes in Alaska. It introduces a new section, AS 38.05.084, which allows the commissioner to lease state land not classified as agricultural for agricultural purposes, provided that the lease agreements include land use restrictions consistent with agricultural objectives. The application process for leasing such land is detailed, requiring applicants to submit specific information about the land and proposed use. The bill also establishes a competitive bidding process for leases, prioritizing the merit of agricultural proposals over monetary considerations when multiple applications are received.

Additionally, the bill modifies existing sections to include the new agricultural leasing provisions and updates the lessee preference rules to incorporate leases under the new section. It specifies that leases for agricultural purposes will have a term of 10 years with options for five-year renewals, and lessees may apply to purchase the land after seven years of agricultural use. The bill also mandates the establishment of a fee schedule for leases, which may be set below fair market rates, and outlines penalties for violations of the leasing provisions. The effective date for this act is set for January 1, 2027.

Statutes affected:
SB0208A, AM SB 208, introduced 01/16/2026: 38.05.070, 38.05.075, 38.05.083, 38.05.084, 38.05.810, 38.05.035, 38.05.073, 38.05.081, 38.05.082, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 38.05.860, 38.04.045, 38.05.840, 38.05.020, 38.05.945, 40.25.110, 40.25.220