Shown verbatim: the complete text as captured from the official page posted by the Alaska State Legislature, fetched 2026-09-21. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
00Enrolled SB 208 01Relating to industrial hemp; relating to the sale and lease of state land for agricultural uses; 02 designating the O-S Cross cabbage, commonly known as "giant green cabbage," as the 03 official state vegetable; and providing for an effective date. 04 _______________ 05 * Section 1. AS 03.05.010(a) is amended to read: 06 (a) The commissioner of natural resources shall 07 (1) direct, administer, and supervise promotional and experimental 08 work, extension services, and agricultural projects for the purpose of promoting and 09 developing commercial and noncommercial agricultural industry in the state, 10 including horticulture, dairying, cattle raising, fur farming, grain production, vegetable 11 production, and agricultural products; 12 (2) procure and preserve all information pertaining to developing the 13 agricultural industry in the state and disseminate that information to the public; 14 (3) assist prospective settlers and others to engage in the agricultural 01industry in the state by providing information about activities and programs essential 02 to developing the agricultural industry and areas in the state that are suitable for 03 agriculture; 04 (4) review the marketing, financing, transportation, and development 05 of agricultural products in the state, with special emphasis on local production, and 06 negotiate for the marketing of agricultural products of the state with federal and state 07 agencies operating in the state; 08 (5) regulate and control the entry in the state and the transportation, 09 sale, or use in the state of plants, seeds, vegetables, shell eggs, fruits and berries, 10 nursery stock, animal feeds, remedies and mineral supplements, fertilizers, and 11 agricultural chemicals to prevent the spread of pests, diseases, or toxic substances 12 injurious to the public interest and protect the agricultural industry against fraud, 13 deception, and misrepresentation; for purposes of this paragraph, the commissioner 14 may require registration, inspection, and testing and may establish procedures and 15 fees; 16 (6) regulate the farming of elk in a manner similar to the manner in 17 which the commissioner regulates domestic animals and livestock, to the extent that is 18 appropriate; 19 (7) adopt regulations relating to industrial hemp, including regulations 20 that 21 (A) specify approved sources or varieties of hemp seed or 22 propagation material to be grown, sold, or offered for sale by an individual 23 registered to produce industrial hemp, including material certified under a 24 federally approved hemp program, federally certified seed scheme, or 25 recognized third-party certifier, without requiring grow-out trials 26 conducted by the department; 27 (B) require testing, paid for by the registrant, for delta-9- 28 tetrahydrocannabinol concentration following harvest of the industrial hemp, 29 allowing for independently accredited laboratories and samplers; 30 (C) provide for general production practices to avoid the 31 unintended distribution of industrial hemp seeds by registrants into 01 nonagricultural land; 02 (D) establish an isolation distance [DISTANCES] for the 03 production of industrial hemp grown for certified or seed-purity production 04 of at least 1,000 meters and recommend isolation distances for the 05 production of other industrial hemp; in this subparagraph, "isolation 06 distance" means the minimum separation required between two or more 07 varieties of the plant (genus) Cannabis for the purpose of keeping the seed 08 pure; 09 (E) permit manufacturing and retail sale of industrial hemp and 10 products made from industrial hemp; 11 (F) establish a registration and renewal procedure for a 12 participant in the industrial hemp program developed under AS 03.05.076; 13 (G) establish a tiered testing frequency based on risk 14 categories developed in regulation that considers crop history and past 15 compliance; 16 (H) allow a harvest window of not more than 30 days after 17 sample collection, with permissible extensions for weather or other good 18 cause; 19 (I) establish tiered grower categories, including a micro- 20 grower category, with scaled reporting, inspection, testing, and fee 21 requirements; 22 (J) eliminate permits for in-state transportation of 23 industrial hemp between registered parties when a shipment is 24 accompanied by a certificate of analysis or other approved shipping 25 documentation; 26 (K) establish corrective-action-plan procedures to enforce 27 an industrial hemp violation that prioritize compliance, include a written 28 notice of the registrant's noncompliance, provide an opportunity for the 29 registrant to cure the noncompliance, and establish objective criteria for 30 escalation, including civil penalties, suspension, or revocation; 31 (8) submit a list of individuals registered to produce industrial hemp 01 under AS 03.05.076 and the expiration dates of the registrations to the Marijuana 02 Control Board and the Department of Public Safety; 03 (9) regulate the labeling of seed that does not comply with the 04 requirements of AS 03.20.130. 05 * Sec. 2. AS 03.05.010(c) is amended to read: 06 (c) The commissioner of natural resources shall notify the Marijuana Control 07 Board and the Department of Public Safety of a person's repeated or knowing 08 violations of state statutes or regulations relating to industrial hemp. Industrial 09 hemp shall be tested using a federally compliant testing method that accounts for 10 measurement uncertainty. Noncompliant industrial hemp is industrial hemp that 11 tests above 0.3 percent delta-9-tetrahydrocannabinol on a dry-weight basis 12 [WHEN THE COMMISSIONER ISSUES A STOP ORDER]. The commissioner of 13 natural resources shall 14 (1) [SHALL] issue a stop order to a person 15 [(A) NOT REGISTERED UNDER AS 03.05.076 WHO IS 16 FOUND TO BE PRODUCING A PLANT WITH DELTA-9- 17 TETRAHYDROCANNABINOL; OR 18 (B)] registered under AS 03.05.076 who is found to be 19 producing a plant with delta-9-tetrahydrocannabinol over one percent; and 20 (2) allow [MAY ISSUE A STOP ORDER TO] a person registered 21 under AS 03.05.076 who is found to be producing a plant with delta-9- 22 tetrahydrocannabinol between 0.3 percent and one percent to retain and recondition, 23 remediate, or convert the plant to a nonintoxicating industrial use before issuing 24 a stop order requiring destruction of the plant. 25 * Sec. 3. AS 03.05.010 is amended by adding a new subsection to read: 26 (e) The commissioner of natural resources may issue enforcement actions for 27 an industrial hemp violation using the corrective action plan developed under 28 (a)(7)(K) of this section. 29 * Sec. 4. AS 03.05.076(a) is amended to read: 30 (a) Industrial hemp is an agricultural crop in the state. An individual who 31 produces industrial hemp shall apply to the department for registration under this 01 section. Registration is valid for one year but may be renewed. An application for 02 registration or renewal must be on a form prescribed by the department that includes 03 (1) the name and address of the applicant; 04 (2) the address and global positioning system coordinates of the area to 05 be used for the production of industrial hemp; and 06 (3) the applicant's acreage or estimated plant count sufficient to 07 determine the applicant's tiered grower category under AS 03.05.010(a)(7)(I) [A 08 SIGNED STATEMENT BY THE APPLICANT, MADE UNDER THE PENALTY 09 OF PERJURY, AFFIRMING THAT THE APPLICANT 10 (A) HAS NOT BEEN CONVICTED OF A FELONY 11 RELATED TO A CONTROLLED SUBSTANCE IN THIS OR ANOTHER 12 JURISDICTION WITHIN THE 10 YEARS IMMEDIATELY PRECEDING 13 THE DATE OF APPLICATION; OR 14 (B) WAS LAWFULLY GROWING HEMP BEFORE 15 DECEMBER 20, 2018, AND WAS NOT CONVICTED OF A FELONY 16 RELATED TO A CONTROLLED SUBSTANCE IN THIS OR ANOTHER 17 JURISDICTION AFTER THAT DATE]. 18 * Sec. 5. AS 03.05.076(b) is amended to read: 19 (b) An individual registered under this section may 20 (1) produce industrial hemp, including growing, harvesting, 21 possessing, transporting, processing, selling, or buying industrial hemp; 22 (2) use any propagation method, including planting seeds or starts or 23 using clones or cuttings to produce industrial hemp; 24 (3) retain industrial hemp seeds for the purpose of propagating 25 industrial hemp in future growing seasons [YEARS]; 26 (4) retain and recondition, remediate, or convert any industrial hemp 27 that tests between 0.3 percent and one percent delta-9-tetrahydrocannabinol on a dry- 28 weight basis. 29 * Sec. 6. AS 03.05.076(c) is amended to read: 30 (c) An individual registered under this section shall 31 (1) comply with testing standards and procedures established by the 01 commissioner of natural resources by regulation; 02 (2) maintain, for at least three years following the sale or transfer of 03 industrial hemp, records showing 04 (A) the name and address of the person that received the 05 industrial hemp; 06 (B) the amount of industrial hemp transferred; 07 (3) make the records required under (2) of this subsection available for 08 inspection by the department during normal business hours if the department provides 09 at least 10 [THREE] days' notice before inspecting the records. 10 * Sec. 7. AS 03.05.076(d) is amended to read: 11 (d) The department shall 12 (1) establish fee levels for application, registration, and renewal of 13 registration so that the total amount of fees collected under this section approximately 14 equals the regulatory costs for regulating the industrial hemp industry, with reduced 15 or waived fees for micro-growers; 16 (2) annually review each fee level to determine whether the regulatory 17 cost of industrial hemp is approximately equal to the fees collected; 18 (3) notify the Marijuana Control Board and the Department of Public 19 Safety when the department issues a notice for a repeated or knowing [A STOP- 20 SALE ORDER AND ISSUES A] violation [NOTICE] under this section; 21 (4) require an individual registered under this section whose industrial 22 hemp tests over one percent delta-9-tetrahydrocannabinol to destroy the product so 23 that it cannot be used for the purpose of reconditioning other hemp crops or gifted or 24 transferred to another individual other than for the purpose of having the industrial 25 hemp destroyed in full form; 26 (5) issue a notice to an individual for a repeated or knowing 27 violation of state statutes or regulations relating to industrial hemp. 28 * Sec. 8. AS 03.05.076(e) is amended to read: 29 (e) The department may 30 (1) [SHALL] issue a stop-sale order and issue a violation notice to a 31 person who is producing industrial hemp without a current registration; 01 (2) [MAY] adopt regulations regarding approved shipping 02 documentation for the transportation of industrial hemp and eliminate permits for in- 03 state transportation between registered parties; 04 (3) [MAY] conduct random tests and inspections of industrial hemp 05 for delta-9-tetrahydrocannabinol concentration produced by an individual registered 06 under this section; random tests and inspections under this paragraph may use 07 risk-based tiers with reduced frequency for low-risk growers, products, or 08 production or testing methods approved by the department in regulation. 09 * Sec. 9. AS 03.05.079 is amended to read: 10 Sec. 03.05.079. Production in violation of delta-9-tetrahydrocannabinol 11 limit. (a) Notwithstanding AS 11.71.040 - 11.71.060, an individual registered under 12 AS 03.05.076 to produce industrial hemp whose product has a delta-9- 13 tetrahydrocannabinol content between 0.3 percent and one percent may retain and 14 recondition, remediate, or convert the product as provided in AS 03.05.076(b)(4). 15 (b) An individual who retains but fails to recondition, remediate, or convert 16 an industrial hemp product described in (a) of this section is guilty of a violation. 17 * Sec. 10. AS 03.05.100 is amended by adding a new paragraph to read: 18 (6) "micro-grower" means an individual registered under AS 03.05.076 19 to produce industrial hemp whose product is cultivated on less than one-quarter of an 20 acre or who has fewer than 200 plants, including indoor or greenhouse production. 21 * Sec. 11. AS 38.04.020(i) is amended to read: 22 (i) Nothing in this section prevents the disposal of other land by the 23 commissioner in accordance with AS 38.05.055, 38.05.057, 38.05.059, 38.05.070, the 24 issuance of remote recreational cabin site leases or sales under AS 38.05.600, 25 AS 38.08, AS 38.09, or other law. 26 * Sec. 12. AS 38.05.059 is amended to read: 27 Sec. 38.05.059. Sale of agricultural land. The commissioner, after consulting 28 with the Board of Agriculture and Conservation (AS 03.09.010), may provide for the 29 sale of land classified under AS 38.05.020 [AS 38.05.020(b)(6)] for agricultural uses 30 in parcels or tracts described by aliquot parts. The parcels or tracts are subject to state 31 subdivision requirements and municipal ordinances. The commissioner shall publish 01a schedule that provides per-acre prices of land, based on the region within which 02 the land is located. The commissioner shall ensure that the schedule serves the 03 best interest of the state. The commissioner may set land sale prices below the 04 market rate. Money from a sale of agricultural land shall be deposited in the state 05 land disposal income fund (AS 38.04.022). The commissioner may offer land 06 classified for agricultural uses for sale at public auction under AS 38.05.057(c), 07 by sealed bid under AS 38.05.055, or as provided in (b) of this section. A parcel or 08 tract sold under this section is subject to AS 38.05.321 and must be used for 09 agricultural uses [SEPARATELY ACCOUNTED FOR AND MAY BE 10 APPROPRIATED TO THE AGRICULTURAL REVOLVING LOAN FUND 11 (AS 03.10.040)]. 12 * Sec. 13. AS 38.05.059 is amended by adding new subsections to read: 13 (b) The department may solicit applications for the purchase of state 14 agricultural land under this section after the director issues a written finding under 15 AS 38.05.035(e) that the sale is in the best interests of the state and the department 16 provides notice of the sale under AS 38.05.945. A person may apply to purchase a 17 parcel or tract of land offered for sale under this section by submitting an application 18 to the department. An application to purchase agricultural land must include 19 (1) the specific land the applicant wants to purchase; 20 (2) a detailed summary of the proposed agricultural uses the land will 21 be used for; 22 (3) a plan for soil and water conservation; 23 (4) information supporting the financial viability of the applicant's 24 proposed agricultural uses for the land, including any marketing plans; 25 (5) the applicant's relevant qualifications, training, and experience; and 26 (6) additional information and requirements established by the 27 department by regulation, including any application fees. 28 (c) The director shall, in consultation with the director of agriculture, evaluate 29 an application submitted under this section using scoring criteria established in 30 regulation by the department. Criteria developed under this subsection must be 31 flexible in application and account for the range of land offered under this section and 01the variety of agricultural uses that the land may accommodate. The department may 02 provide the applicable criteria, and how an application submitted under this section 03 will be scored under those criteria, in a solicitation of interest for a particular parcel or 04 tract. The criteria must include 05 (1) the department's assessment of the feasibility and value of the 06 proposed agricultural use; 07 (2) applicable conservation and stewardship considerations; 08 (3) applicant qualifications and experience; and 09 (4) financial viability of the proposed agricultural use. 10 (d) If the director, in consultation with the director of agriculture, finds, using 11 the scoring criteria established under (c) of this section, that a sale of agricultural land 12 to an applicant under (b) of this section is in the best interests of the state, the 13 commissioner may sell the parcel or tract to the applicant. If the director has received 14 two or more applications for the same parcel or tract, the commissioner may sell the 15 parcel or tract to the applicant whose proposal the director finds, using the scoring 16 criteria established under (c) of this section, and after consulting with the director of 17 agriculture, best serves the interests of the state. An application for the purchase of 18 state land under this section, including supporting documentation submitted to the 19 department for review, is a public record subject to AS 40.25.110 - 40.25.220. The 20 commissioner shall publish all applications received for the purchase of the land, 21 including supporting documentation submitted to the department, and the department's 22 evaluation and scoring of the applications under (c) of this section. An aggrieved 23 applicant may appeal to the commissioner for a review of the director's finding within 24 20 days after receiving notice of the finding. 25 * Sec. 14. AS 38.05.069(d) is amended to read: 26 (d) When not in conflict with this section, the provisions of 27 (1) AS 38.05.045 - 38.05.105 apply to disposals under this section; 28 and 29 (2) AS 38.05.084 apply to leases issued under this section. 30 * Sec. 15. AS 38.05.070(c) is amended to read: 31 (c) A lease may be issued for a period up to 55 years, if the commissioner 01determines it to be in the best interests of the state. The commissioner shall consider 02 the useful life of any improvements proposed and approved under AS 38.05.075 in 03 determining the term of the lease. The [IF THE] commissioner may declare a lease 04 void if the commissioner determines that 05 (1) the land or a part of it which is the subject of a grazing lease is not 06 being used for the purpose issued; or 07 (2) land leased under AS 38.05.084 is not being used for 08 agricultural uses [, THE LEASE MAY BE DECLARED VOID]. 09 * Sec. 16. AS 38.05.070(e) is amended to read: 10 (e) The director may renew a lease issued under this section, AS 38.05.075, 11 38.05.083, 38.05.084, or 38.05.810 upon its expiration if the lease is in good standing 12 and the lease renewal is determined to be in the best interests of the state. A renewal 13 issued under this subsection is not subject to AS 38.05.035(e). The director shall 14 provide notice of the lease renewal decision. A lease under 15 (1) this section, AS 38.05.075, or 38.05.810 may be renewed only once 16 for a term not longer than the initial term of the lease; and 17 (2) AS 38.05.084 may not exceed 20 years under AS 38.05.084(e) [. 18 THE DIRECTOR SHALL PROVIDE NOTICE OF THE LEASE RENEWAL 19 DECISION]. 20 * Sec. 17. AS 38.05.075(a) is amended to read: 21 (a) Except as provided in AS 38.05.035, 38.05.070, 38.05.073, 38.05.081, 22 38.05.082, 38.05.083, 38.05.084, 38.05.087, 38.05.102, 38.05.565, 38.05.600, 23 38.05.810, and this section, when competitive interest has been demonstrated or the 24 commissioner determines that it is in the state's best interests, leasing shall be made at 25 public auction or by sealed bid, at the discretion of the director, to the highest qualified 26 bidder as determined by the commissioner. A bidder may be represented by an 27 attorney or agent at a public auction. In the public notice of a lease to be offered at 28 public auction or by sealed bid, the commissioner shall specify a minimum acceptable 29 bid and the lease compensation method. The lease compensation method shall be 30 designed to maximize the return on the lease to the state and shall be a form of 31 compensation set out in AS 38.05.073(m). An aggrieved bidder may appeal to the 01commissioner within five days for a review of the determination. The leasing shall be 02 conducted by the commissioner, and the successful bidder shall deposit at the public 03 auction or with the sealed bid the first year's rental or other lease compensation as 04 specified by the commissioner, or that portion of it that the commissioner requires in 05 accordance with the bid. The commissioner shall require, under AS 38.05.860, 06 qualified bidders to deposit a sum equal to any survey or appraisal costs reasonably 07 incurred by another qualified bidder acting in accordance with the regulations of the 08 commissioner or incurred by the department under AS 38.04.045 and AS 38.05.840. If 09 a bidder making a deposit of survey or appraisal costs is determined by the 10 commissioner to be the highest qualified bidder under this subsection, the deposit shall 11 be paid to the unsuccessful bidder who incurred those costs or to the department if the 12 department incurred the costs. All costs for survey and appraisal shall be approved in 13 advance in writing by the commissioner. The commissioner shall immediately issue a 14 receipt containing a description of the land or interest leased, the price bid, and the 15 terms of the lease to the successful qualified bidder. If the receipt is not accepted in 16 writing by the bidder under this subsection, the commissioner may offer the land for 17 lease again under this subsection. A lease, on a form approved by the attorney general, 18 shall be signed by the successful bidder and by the commissioner. 19 * Sec. 18. AS 38.05 is amended by adding a new section to read: 20 Sec. 38.05.084. Leases of state land for agricultural uses. (a) The 21 commissioner may lease state land classified under AS 38.05.020 for agricultural uses. 22 Money from the lease of agricultural land shall be deposited in the state land disposal 23 income fund (AS 38.04.022). The commissioner may offer agricultural land for lease 24 to the public at public auction, by sealed bid under AS 38.05.075, by negotiation under 25 AS 38.05.070, or as provided in this section. State land that is not classified as 26 agricultural land under AS 38.05.020 may also be leased for agricultural uses under 27 this section. A lease issued under this section must include land use restrictions and 28 authorizations consistent with the agricultural use of the lease. However, the 29 commissioner shall permit a person leasing land under this section to construct 30 housing for farmers and farm laborers if the construction accords with the person's 31 agricultural development plan approved by the director under (c) of this section. 01 (b) A person may apply to lease state land for an agricultural use under this 02 section by submitting an application to the department. An application to lease 03 agricultural land must include 04 (1) the specific location, description, and amount of land the applicant 05 wants to lease; 06 (2) a detailed summary of the proposed agricultural uses the land will 07 be used for; 08 (3) an agricultural development plan that 09 (A) details proposed crop plans or livestock production; 10 (B) includes a timeline for agricultural production and 11 infrastructure development on the land; 12 (C) provides how soil and water will be conserved; 13 (D) describes proposed infrastructure, including housing, 14 support, or other auxiliary infrastructure; 15 (4) information supporting the financial viability of the proposal, 16 including any marketing plans; 17 (5) the applicant's relevant qualifications, training, and experience; and 18 (6) additional information and requirements established by the 19 department by regulation, including any application fees. 20 (c) The director shall, in consultation with the director of agriculture, evaluate 21 an application submitted under this section using scoring criteria established in 22 regulation by the department under AS 38.05.059(c). Upon the director's request, an 23 applicant may amend and resubmit an application provided under this section before 24 the director approves or denies the application. 25 (d) If the director finds that a lease is in the best interests of the state, the 26 department shall, upon receiving an application to lease state land for agricultural uses 27 under this section, solicit competitive interest by issuing a public notice in the manner 28 prescribed in AS 38.05.945. The notice must contain an announcement seeking 29 competitive interest. If, following notice, the director has received only one 30 application and finds, using the scoring criteria established in regulation by the 31 department under AS 38.05.059(c), that the lease is in the best interests of the state, 01the commissioner may award a lease to the applicant. If, following notice, the director 02 has received two or more applications for the same land, the commissioner may award 03 a lease to the applicant whose proposal the director finds, using the scoring criteria 04 established in regulation by the department under AS 38.05.059(c), best serves the 05 interests of the state, notwithstanding the proposed monetary consideration. An 06 application for the lease of state land under this section, including supporting 07 documentation submitted to the department for review, is a public record subject to 08 AS 40.25.110 - 40.25.220. The commissioner shall publish all applications received 09 for the lease of the land, including supporting documentation submitted to the 10 department, and the department's evaluation and scoring of the applications under (c) 11 of this section. An aggrieved applicant may appeal to the commissioner for a review of 12 the director's finding within 20 days after receiving notice of the finding. 13 (e) Notwithstanding AS 38.05.070(c) and (e), a lease for state land under this 14 section may not exceed 20 years, with an option for renewal terms that may not 15 exceed 20 years each, if the lessee continues to meet the conditions of the lease. The 16 director shall establish by regulation criteria for lease termination, lease renewal, and 17 requirements for returning land to the state. The commissioner may terminate a lease 18 under this section if the lessee fails to use the leased land for agricultural uses or 19 otherwise fails to adhere to the terms and conditions of the agricultural development 20 plan approved by the director under this section. However, the commissioner may 21 modify a lessee's agricultural development plan if the commissioner makes a written 22 finding that the plan should be modified because of economic hardship or other 23 extenuating circumstances. 24 (f) Land leased under this section may be subleased or assigned as provided in 25 AS 38.05.095 if the sublessee or assignee agrees in writing to adhere to the terms and 26 conditions of the agricultural development plan for the land approved by the director 27 under this section and provides a copy of the agreement to the director. 28 (g) If the commissioner determines that it is in the best interests of the state to 29 sell land leased under this section, the commissioner shall grant a lessee who has used 30 the land for agricultural uses for at least seven years and who is in compliance with the 31 terms and conditions of the lease a first option to purchase the land under 01AS 38.05.059. Notwithstanding whether the land is classified as agricultural land 02 under AS 38.04.020, land sold under this section is subject to AS 38.05.321. If a 03 lessee does not use the land leased under this section for agricultural uses for at least 04 seven years, the lessee is not eligible for a preference under this subsection. 05 (h) The director shall establish by regulation an agricultural fee schedule for 06 compensation for a lease under this section. Rent may be set below fair market rate. 07 (i) State land leased for agricultural uses under this section is subject to 08 (1) appraisal under AS 38.05.840 only if the commissioner determines 09 in writing that the site is subject to appraisal under AS 38.05.840; 10 (2) survey under AS 38.04.045(b) only if the commissioner determines 11 in writing that the site is subject to survey under AS 38.04.045(b); and 12 (3) inspection by the department under (j) of this section to ascertain 13 and enforce compliance with the terms and conditions of a lease under this section. 14 (j) The department shall inspect land leased under this section at least once 15 biennially. An inspection under this section, at the discretion of the department, may 16 be conducted virtually or employ an unmanned aircraft system. In this subsection, 17 "unmanned aircraft system" has the meaning given in AS 18.65.909. 18 (k) A lessee who violates a provision of this section may be assessed a civil 19 penalty by the director. The director shall establish by regulation a schedule of 20 (1) applicable fines that a person may be required to pay under this 21 section; and 22 (2) administrative and enforcement actions applicable to a violation of 23 the terms and conditions of a lease issued under this section. 24 (l) The commissioner shall adopt regulations establishing a lease-purchase 25 program under which, if a lessee purchases leased land under AS 38.05.059, the sale 26 price of the land may be reduced by an amount equal to a portion of the lessee's lease 27 payments made to the state. The regulations must require that the lessee have used the 28 land for agricultural uses during the lessee's tenancy to qualify for the program. 29 (m) In this section, "agricultural use" means 30 (1) the commercial production of useful plants and animals; 31 (2) the construction of improvements for animals or improvements that 01 are reasonably required for or related to agricultural use; 02 (3) the use of gravel reasonably required for or related to agricultural 03 production on the leased land; and 04 (4) the removal and disposal of timber on the leased land to bring the 05 land into agricultural use. 06 * Sec. 19. AS 38.05.102 is amended to read: 07 Sec. 38.05.102. Lessee preference. Except for a lease under AS 38.05.081, 08 [OR] 38.05.083, or 38.05.084, if land within a leasehold created under AS 38.05.070 - 09 38.05.105 is offered for sale or long-term lease at the termination of the existing 10 leasehold, the director may, upon a finding that it is in the best interest of the state, 11 allow a holder in good standing of the existing leasehold to purchase or lease the land 12 for its appraised fair market value at the time of the sale or long-term lease. If land 13 within a leasehold created under AS 38.05.084 is offered for sale, the director 14 may, upon a finding that it is in the best interests of the state, allow a holder of 15 the lease to purchase the land under AS 38.05.059. 16 * Sec. 20. AS 38.05.321(g) is amended to read: 17 (g) A perpetual covenant described in (a) of this section may be enforced by 18 the department under (k) of this section or [ONLY] by a civil action brought by the 19 state, a municipality, or a resident. If a municipality or a resident brings an action 20 under this subsection, the municipality or resident shall also serve a copy of the 21 summons and complaint on the state in the manner prescribed by the Alaska Rules of 22 Civil Procedure for service on the state. An action may be maintained under this 23 subsection only if 24 (1) commenced within six years after the cause of action has accrued; 25 and 26 (2) the plaintiff has first notified in writing the appropriate soil and 27 water conservation district under AS 41.10 of the violation of the covenant at least 90 28 days before the civil action is filed. 29 * Sec. 21. AS 38.05.321 is amended by adding a new subsection to read: 30 (k) If a landowner does not cooperate with a soil and water conservation 31 district as required by (d)(1) of this section, fails to prepare and implement a schedule 01of agricultural development required by the commissioner under (d)(2) of this section, 02 or violates the covenant described in (a) of this section, the department may assess 03 civil penalties. In accordance with a schedule adopted in regulation, the department 04 may assess and collect these and other civil penalties for violations of this section and 05 regulations adopted under this section. 06 * Sec. 22. AS 43.61.010 is amended by adding a new subsection to read: 07 (g) The tax imposed by (a) of this section does not apply to industrial hemp 08 produced in compliance with AS 03.05.076 or to a product made from industrial hemp 09 if the product contains not more than 0.3 percent delta-9-tetrahydrocannabinol content 10 on a dry-weight basis as determined by testing that complies with the requirements of 11 AS 03.05.010(c). 12 * Sec. 23. AS 44.09 is amended by adding a new section to read: 13 Sec. 44.09.055. State vegetable. The O-S Cross cabbage (Brassica oleracea 14 var. capitata), commonly known as "giant green cabbage," is the official vegetable of 15 the state. 16 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 TRANSITION: REGISTRANTS. (a) An individual who held a valid registration 19 under AS 03.05.076 during the period between January 1, 2021, and December 31, 2025, and 20 whose registration lapsed solely as a result of regulatory action by the Department of Natural 21 Resources during the period between January 1, 2024, and December 31, 2025, is eligible for 22 reinstatement following application without paying a renewal of registration fee. 23 (b) The Department of Natural Resources may not require the destruction of industrial 24 hemp or a product made from industrial hemp that is lawfully held by a registrant under (a) of 25 this section if the industrial hemp or product made from industrial hemp satisfies the testing 26 standards in AS 03.05.076(c), as amended by sec. 6 of this Act. 27 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION: REGULATIONS. The Department of Natural Resources may adopt 30 regulations necessary to implement secs. 1 - 10, 22, and 24 of this Act. The regulations take 31 effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 01law implemented by the regulation. 02 * Sec. 26. Sections 23 and 25 of this Act take effect immediately under AS 01.10.070(c). 03 * Sec. 27. Sections 1 - 10, 22, and 24 of this Act take effect July 1, 2026. 04 * Sec. 28. Except as provided in secs. 26 and 27 of this Act, this Act takes effect January 1, 05 2027.
Every fact on this page links to its source, starting with the official bill record.