Sec. 38.05.057. - Disposal of land by lottery.
(a) The commissioner may dispose of land, including land limited to use for agricultural purposes, by lottery. The purchase price of land sold by lottery shall be the fair market value of the land as determined by the commissioner. The commissioner may sell land by lottery for less than the fair market value of the land on a determination that scarcity of land for private use in the area of the land to be sold has resulted in unrealistic land values. The lottery shall be conducted in public by the commissioner. A purchaser selected by lot shall deposit an amount equal to five percent of the purchase price within 30 days after receiving notification of the selection.
(b) To qualify to participate in a lottery under (a) of this section, an applicant shall
(1) at the time of application have attained the age of 18;
(2) have been a resident of the state for not less than one year immediately preceding the date of application and submit proof of that fact as required by regulation;
(3) not have purchased land at a sale by lottery in the state within eight years immediately preceding the sale date and certify that fact in the application.
(c) The commissioner, after consulting with the Board of Agriculture and Conservation (AS 03.09.010 ), may adopt regulations under the Administrative Procedure Act (AS 44.62) that specify qualifications for lottery participants different from those specified in (b) of this section if
(1) an interest in land limited to agricultural purposes is to be sold under (a) of this section;
(2) the sale is a part of a program to develop agricultural land as a renewable resource of the state; and
(3) the regulations include residency, skill, experience, and financial requirements necessary to qualify persons who are competent and financially able to develop the land as a successful agricultural enterprise.
(d) To apply for participation in a lottery under this section an applicant shall
(1) be qualified under the applicable provisions of this section and certify that fact in the application; and
(2) pay a nonrefundable application fee of not more than $25 for each application.
(e) The director shall accept applications to purchase particular parcels under the following procedures and conditions:
(1) the application period may not be less than 45 days;
(2) no application may be accepted less than 15 days before each lottery;
(3) notice of the application period and the date of the lottery shall be given in accordance with AS 38.05.945 ; and
(4) the application shall be made on a form provided by the department.
(f) If only one application for a parcel is received, the commissioner shall offer the parcel to the applicant who applied for the parcel if the applicant is qualified to participate in the lottery. If more than one application is received for a parcel, the commissioner shall select the applicant who is entitled to receive a conveyance of the land by lottery. If the commissioner does not receive an application for a parcel of state land or if a purchaser fails to sign a lease agreement or contract of sale, the parcel shall be offered to the first eligible person to apply for the parcel. If the parcel was designated as a homesite and offered to the public under former AS 38.05.047 (f), the parcel shall be disposed of under the terms required by AS 38.08.
(g) [Repealed, Sec. 38 ch 91 SLA 1997].
(h) An aggrieved lottery participant may appeal to the commissioner within five days after the lottery is conducted for a review of the lottery procedures.
(i) The director may include in contracts for sale of land under this section terms which
(1) require purchasers to use or occupy, or both, the land purchased for a reasonable period of time after a sale;
(2) prohibit the resale of land purchased by the initial purchaser until the requirements imposed under (1) of this subsection, if any, are satisfied.
(j) The commissioner may require a participant in a lottery under this section for the sale of land that is part of an agricultural development project under former AS 44.33.475 to submit a single application for that land. Immediately following the drawing of an applicant's name in the lottery, the applicant shall be given an opportunity to select for purchase one parcel of the land that is offered in the lottery. The names of alternate applicants shall be drawn after all parcels have been selected. If the applicant who originally selected a parcel unequivocally rejects the offer to purchase the parcel or fails to sign the contract of sale within the period of time specified by the commissioner, the parcel shall be offered for sale to alternate applicants in the order in which their names were drawn.