Alaska § 38.05.083 - Aquatic farming and hatchery site leases.

§ 38.05.083. Aquatic farming and hatchery site leases.

 (a) The commissioner may offer to the public for lease at public auction or by sealed bid under AS 38.05.075 or by negotiation under AS 38.05.070 a site for aquatic farming or related hatchery operations. Before a final decision to issue a lease under this section, the commissioner shall give notice and allow opportunity for comment in accordance with AS 38.05.945 and may hold a hearing to take testimony. Before a final decision to issue a lease under this section, the commissioner shall consider all relevant comment or testimony submitted under this section, AS 38.05.945 , or 38.05.946.

 (b) The commissioner, for good cause, may deny an application for issuance of a lease under this section but shall provide the applicant with written findings that explain the reasons for the denial.

 (c) An aquatic farming or related hatchery operation site leased under this section is subject to appraisal under AS 38.05.840 only if the commissioner determines in writing that the site is subject to appraisal under AS 38.05.840 .

 (d) A lease under this section may be assigned, but, if the assignee changes the use of the site, the lease reverts to the state.

 (e) Before entering into a lease under this section, the commissioner shall require the lessee to post a performance bond or provide other security to cover the costs to the department of restoring the leased site in the event the lessee abandons the site.

 (f) The commissioner shall adopt regulations establishing criteria for the approval or denial of leases under this section and for limiting the number of sites for which leases may be issued in an area in order to protect the environment and natural resources of the area. The regulations        (1) must provide for the consideration of whether the proposed use of a site is compatible with the traditional and existing uses of the area in which the site is located; and

 (2) may provide for the consideration of upland management policies.

 (g) The commissioner may, under AS 38.05.070 (e) — (g), renew or extend a lease issued under this section.

 (h) Nothing in this section prohibits a lessee under this section using a site for aquatic farming and related hatchery operations from also using that site for a tourism enterprise or educational purpose relating to aquatic farming or related hatchery operations.

 (i) Notwithstanding AS 38.05.035 and 38.05.850, if a site leased under this section is actively used for aquatic farming or related hatchery operations, the commissioner may not charge a lessee, sublessee, or other person assigned all or a part of the lease a fee for using or allowing the use of the site, or passage across the site, for a tourism enterprise or educational purpose relating to aquatic farming or related hatchery operations.

 (j) The compensation to be paid to the state for a lease issued under this section shall be in accordance with AS 38.05.073 (m).

 (k) A site leased under this section is subject to survey under AS 38.04.045 only if the commissioner determines in writing that the site is subject to survey under AS 38.04.045 .

 (l) If the director finds that it is in the best interests of the state, the director shall preference the lessee of a site leased under this section in renewing the lease for the site or in issuing a new lease for the site. A lessee under this section is not eligible for a preference to purchase the site under AS 38.05.102 .

 (m) Except for a site used as a hatchery for aquatic plants or shellfish, a site leased under this section must be used for the commercial production of an aquatic farm product. In this subsection, “aquatic farm product,” “aquatic plant,” “hatchery,” and “shellfish” have the meanings given in AS 16.40.199 .

 (n) A lease issued under this section may be renewed for a period of up to 20 years.