Sponsor Statement for SB 109

Rights to Agricultural Land

SB 109 is similar to legislation passed last year as SB 162. Last session the reform measure passed by huge majorities, was vetoed by the Governor and then the Governor's veto was overridden. However, the override vote, according to Judge Larry Weeks of Juneau, came a day late.

This session SB 109 has been heard in Senate Finance and was amended in an effort to accommodate some concerns of the Department of Natural Resources. While there is not total agreement on the bill with the Administration, we are working together to promote more freedom for farmers, encourage the creation and preservation of the family farm, and to allow private financing for agricultural land while maintaining a restriction for agricultural use.

The key provisions are:

1. The State of Alaska will be taken off the title to the land. This is absolutely essential if farmers with agricultural land are to have an opportunity to finance their operations with private financing.
   
2. Numerous regulations are repealed that provided for micro-management of private farms by the state. It is our understanding that the Department of Natural Resources has no objection to repealing this regulations.
   
3. An original agricultural parcel can now be subdivided into any number of parcels as long as they are no smaller than 40 acres. The subdivisions do not include the ability to build a home on the property. However, current law provides for a home site to go along with any subdivision of an original parcel as long as the parcel is at least 640 acres.
   
   SB 109 would allow an original parcel to be subdivided into no more than four parcels of at least 40 acres that could include home sites.
   
4. For a subdivided parcel that includes a home site, is under 640 acres, and is conveyed to someone outside the owner's immediate family, there are two options. Option 1 provides an increased value fee of $6,000 that is payable to the state. Option 2 allows the owner to do an appraisal and pay the difference in the increased value, if any, from agricultural land with a home site and agricultural land without a home site.
   
5. Agricultural use would be protected by a perpetual covenant running with the land. Any citizen, municipality or the State could bring suit in civil court to enforce the covenant. However, a 90 day cooling off period is mandated by requiring that the complaint first be presented in writing to the local Soil and Water Conservation Board. This process should reduce or eliminate frivolous suits.
   
6. A limited liability report is required to indemnify the State during the transfer of title.
   
7. Existing requirements for a cadastral survey before the state can offer agricultural land are amended to allow the Commissioner of the Department of Natural Resources to waive that expensive process.

This legislation will remove unnecessary regulations, promote family farming, allow farmers the option of private financing, promote more offering of agricultural land, allow a limited number additional home sites on agricultural land and guarantee continued agricultural use of the land.