SB 16: "An Act relating to the University of Alaska and university land, authorizing the University of Alaska to select additional state public domain land, and defining net income from the University of Alaska's endowment trust fund as 'university receipts' subject to prior legislative appropriation."
00SENATE BILL NO. 16 01 "An Act relating to the University of Alaska and university land, authorizing the 02 University of Alaska to select additional state public domain land, and defining 03 net income from the University of Alaska's endowment trust fund as 'university 04 receipts' subject to prior legislative appropriation." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. FINDINGS AND PURPOSE. The legislature finds that 07 (1) as the beneficiary under the provisions of the Acts of August 30, 1890, and 08 March 4, 1907, designating the Alaska Agricultural College and School of Mines as 09 beneficiary, and of March 4, 1915, 38 Stat. 1214, transferring certain land for its location and 10 support, the University of Alaska is a land grant university; 11 (2) under the Acts of March 4, 1915, 38 Stat. 1214, and January 21, 1929, 45 12 Stat. 1091, the Congress of the United States granted to the Territory of Alaska certain federal 13 land to be held in trust for the benefit of the predecessor of the University of Alaska; 14 (3) the Territory was unable to receive most of the land conveyed by the Act
01 of March 4, 1915, before repeal of that Act by Sec. 6(k) of the Alaska Statehood Act (P.L. 02 85-508, 72 Stat. 339); 03 (4) the Congress of the United States granted the State of Alaska the right to 04 select 102,500,000 acres of federal land under Sec. 6(b) of the Alaska Statehood Act; 05 (5) the land selection rights embodied in the Alaska Statehood Act reflect in 06 part congressional recognition that the state would need the land to support its government and 07 programs, and the Congress assumed that the State of Alaska would in turn devote some of 08 the land or the income from it for the use and benefit of the University of Alaska; 09 (6) most land grant colleges in the western United States have obtained a larger 10 land grant from the federal government than the University of Alaska has received; 11 (7) an academically strong and financially secure state university system is a 12 cornerstone to the long-term development of a stable population and to a healthy, diverse 13 economy in the state; and 14 (8) it is in the best interests of the state and the University of Alaska that the 15 university take ownership of a significant and substantial portfolio of income producing land 16 in order to provide income for the support of public higher education in the state. 17 * Sec. 2. AS 14.40.170(a) is amended to read: 18 (a) The Board of Regents shall 19 (1) appoint the president of the university by a majority vote of the 20 whole board, and the president may attend meetings of the board; 21 (2) fix the compensation of the president of the university, all heads of 22 departments, professors, teachers, instructors, and other officers; 23 (3) confer such appropriate degrees as it may determine and prescribe; 24 (4) have the care, control, and management of 25 (A) all the real and personal property of the university; and 26 (B) land 27 (i) conveyed to the Board of Regents by the 28 commissioner of natural resources in the settlement of the claim of the 29 University of Alaska to land granted to the state in accordance with the 30 Act of March 4, 1915 (38 Stat. 1214), as amended, and in accordance 31 with the Act of January 21, 1929 (45 Stat. 1091), as amended; and
01 (ii) selected by the University of Alaska and conveyed 02 to it by the commissioner of natural resources under AS 14.40.365, 03 except as provided in AS 14.40.368(2); 04 (5) keep a correct and easily understood record of the minutes of every 05 meeting and all acts done by it in pursuance of its duties; 06 (6) under procedures to be established by the commissioner of 07 administration, and in accordance with existing procedures for other state agencies, 08 have the care, control, and management of all money of the university and keep a 09 complete record of all money received and disbursed; 10 (7) adopt reasonable rules for the prudent trust management and the 11 long-term financial benefit to the university of the land of the university; 12 (8) provide public notice of sales, leases, exchanges, and transfers of 13 the land of the university or of interests in land of the university; 14 (9) report each year within the first 10 days of the convening of a 15 regular session of the legislature on the expenditures made during the preceding fiscal 16 year from the funds of the University of Alaska that are derived from sales, leases, 17 exchanges, or transfers of the land of the university or of interests in land of the 18 university 19 (A) that were conveyed to the University of Alaska in 20 settlement of the claim of the University of Alaska to land granted to the state 21 in accordance with the Act of March 4, 1915 (38 Stat. 1214), as amended, and 22 in accordance with the Act of January 21, 1929 (45 Stat. 1091), as amended; 23 and 24 (B) that were selected by and conveyed to the University of 25 Alaska under AS 14.40.365. 26 * Sec. 3. AS 14.40.291 is amended to read: 27 Sec. 14.40.291. LAND OF THE UNIVERSITY OF ALASKA NOT PUBLIC 28 DOMAIN LAND. Notwithstanding any other provision of law, university-grant land, 29 state replacement land that becomes university-grant land on conveyance to the 30 university, land selected by and conveyed to the University of Alaska under 31 AS 14.40.365, and any other land owned by the University of Alaska is not and may
01 not be treated as state public domain land. Title to or interest in [TO] land described 02 in this section may not be acquired by adverse possession, prescription, or in any other 03 manner except by conveyance from the university. The land is subject to 04 condemnation for public purpose in accordance with law. 05 * Sec. 4. AS 14.40 is amended by adding a new section to read: 06 Sec. 14.40.365. UNIVERSITY LAND FROM STATEHOOD ACT LAND 07 SELECTION CONVEYANCES. (a) The University of Alaska may select and is 08 entitled to receive the conveyance of 1,000,000 acres of land conveyed to the state 09 under Sec. 6(b) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 339) that, on the 10 date of its selection by the university, 11 (1) has not been conveyed by the state; 12 (2) has not been reserved by law from the public domain; 13 (3) is not land 14 (A) included in a five-year proposed oil and gas leasing 15 program under AS 38.05.180(b); or 16 (B) leased under, or for which a lease application is pending 17 under, AS 38.05.180(d); 18 (4) is not subject to a possessory interest or encumbrance other than 19 (A) a lease that is not an oil or gas lease; 20 (B) a timber contract; 21 (C) a mining claim; 22 (D) a sale of materials under AS 38.05.110 - 38.05.120; 23 (E) a land use permit or right-of-way issued by the Department 24 of Natural Resources under AS 38.05; 25 (5) is not necessary to carry out the purpose of an interagency land 26 management agreement; or 27 (6) is not subject to conveyance under a land exchange or land 28 settlement agreement. 29 (b) Notwithstanding AS 38.05.125(a), the transfer of ownership and 30 management of land from the Department of Natural Resources to the Board of 31 Regents of the University of Alaska under this section includes
01 (1) the interest of the state in the coal, ores, minerals, fissionable 02 materials, geothermal resources, and fossils that may be in or on the land; and 03 (2) the interest of the state in the oil and gas that may be in or on the 04 land, but only as to land that is selected by the University of Alaska under this section 05 on and after the date that is the fifth anniversary of the effective date of this section. 06 (c) When the University of Alaska selects the land to which it is entitled under 07 this section, unless the commissioner of natural resources determines under (e) of this 08 section that title to the land should not be conveyed, the commissioner of natural 09 resources shall convey, subject to divestiture under (n) of this section, a document of 10 interim conveyance under (k) of this section or a patent to land. 11 (d) When a selection has been made by the University of Alaska under (c) of 12 this section, the land selected is closed to entry until the land selected has been 13 conveyed or the selection has been rejected by the commissioner of natural resources. 14 (e) The commissioner of natural resources may not convey title to any land 15 selection made by the University of Alaska under this section if the commissioner 16 determines that the proposed selection 17 (1) includes land for which, at the time of its selection under this 18 section, 19 (A) a municipality has made a selection under AS 29.65, unless 20 the land selection is, at a later date, rejected by the commissioner of natural 21 resources or relinquished by the municipality; or 22 (B) the commissioner reasonably believes the land may be 23 selected by a municipality under AS 29.65.030, but the commissioner may not 24 withhold under this subparagraph the conveyance of title to land selected by the 25 university longer than three years after the date of the municipality's 26 incorporation; 27 (2) includes land that, at the time of its selection under this section, 28 (A) is subject to an oil and gas exploration license; or 29 (B) the commissioner reasonably believes will be made part of, 30 an oil and gas exploration license issued under AS 38.05.131 - 38.05.134; the 31 commissioner may not refuse to convey title to land to the University of Alaska
01 under this subparagraph for more than three years after its first selection by the 02 University of Alaska; 03 (3) is not in the best interests of the state; in making a determination 04 under this paragraph as to whether a selection by the University of Alaska is in the 05 best interests of the state, the commissioner shall consider 06 (A) the interest of the general public in retention of the land in 07 state ownership; 08 (B) ensuring an appropriate diversity in the character of land 09 owned by the state and by the University of Alaska; 10 (C) the public benefits achieved by conveyance of the land to 11 the University of Alaska; 12 (D) the probable potential for the development of the land and 13 its resources and the probable income to the University of Alaska from the 14 conveyance of the land; 15 (E) benefits to the University of Alaska from the conveyance 16 of the land to it; and 17 (F) the efficiency of the management of the land resulting from 18 the conveyance of the land. 19 (f) If the Board of Regents of the University of Alaska disagrees with a 20 decision of the commissioner of natural resources not to convey to the University of 21 Alaska land selected by it under this section, the Board of Regents and the 22 commissioner of natural resources shall submit the matter to the governor, who shall 23 make the decision. The decision of the governor is final. 24 (g) When land is conveyed to the University of Alaska under this section, the 25 University of Alaska takes the land subject to any possessory interest held by another 26 person on the effective date of the conveyance. Except as provided in 27 AS 14.40.368(1), the University of Alaska is entitled to receive the consideration due 28 under that interest for the duration of the interest. 29 (h) In conveying land to the University of Alaska under this section, the 30 commissioner of natural resources shall give public notice under AS 38.05.945(b) and 31 (c) and provide for access under AS 38.05.127, but other provisions of AS 38.04 and
01 AS 38.05 do not apply. 02 (i) Land transferred or conveyed to the University of Alaska under this section 03 (1) is subject to 04 (A) section 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 05 Stat. 339); 06 (B) art. IX of the state constitution; 07 (C) AS 19.10.010; and 08 (D) the rights of the state under former 43 U.S.C. 932 (sec. 8, 09 Act of July 26, 1866, 14 Stat. 253); 10 (2) excludes any interest transferred to the state by quit claim deed 11 dated June 30, 1959, under authority of the Alaska Omnibus Act, P.L. 86-70, 73 Stat. 12 141; 13 (3) based on a land selection filed by the University of Alaska on or 14 after the effective date of this section and until the day before the day that is the fifth 15 anniversary of the effective date of this section is subject to reservation by the state 16 in perpetuity of all oil and gas that may be in or on the land, together with the right 17 to explore the land for oil and gas and to remove from the land all oil and gas located 18 in and on it. 19 (j) The University of Alaska shall bear all costs of selection, platting, 20 surveying, and conveyance of the land that it selects under this section and, subject to 21 appropriation, shall reimburse the Department of Natural Resources for the reasonable 22 costs incurred by that department relating to that selection, platting, surveying, and 23 conveyance. As to land due the University of Alaska under (c) of this section because 24 it has not been disapproved under (e) of this section, 25 (1) if the land has been surveyed, the boundaries of the land conveyed 26 must conform to the public land subdivisions established by the approved survey; 27 (2) if the land is unsurveyed, the commissioner shall survey the exterior 28 boundaries of the land to be conveyed without interior subdivision, and shall issue 29 patent in terms of the exterior boundary survey. 30 (k) For land due the University of Alaska under (c) of this section that is 31 unsurveyed, pending the survey of exterior boundaries and issuance of patent, the
01 commissioner of natural resources shall prepare and provide to the University of 02 Alaska a document of interim conveyance for the land to be conveyed. 03 (l) Except as provided in AS 14.40.368(2), management of land conveyed to 04 the University of Alaska by patent or by a document of interim conveyance vests with 05 the University of Alaska from the date of execution of the patent or document of 06 interim conveyance. 07 (m) The University of Alaska may not make a land selection under this section 08 after December 31, 2009. 09 (n) When the commissioner of natural resources issues a document of interim 10 conveyance under (k) of this section or a patent for land selected and held by the 11 University of Alaska, the commissioner of natural resources shall retain the right to 12 reenter the land conveyed and recover title to it. The commissioner of natural 13 resources shall reenter and recover title if, on the 10th anniversary of the execution of 14 the conveyance, the commissioner finds that the University of Alaska is not actively 15 managing the land to provide income for the support of its education programs. 16 However, if at any time during the 10-year period, litigation, including any appeal, has 17 prevented the University of Alaska from actively managing the land to provide income, 18 the date on which the commissioner of natural resources shall make the finding 19 required by this subsection is extended by a period equal to the period attributable to 20 the litigation during which the University of Alaska was prevented from actively 21 managing the land to provide income. For purposes of this subsection, "actively 22 managing the land to provide income" means that the University of Alaska is deriving 23 revenue from the land selection. 24 * Sec. 5. AS 14.40 is amended by adding new sections to read: 25 Sec. 14.40.366. MANAGEMENT AND DISPOSITION OF UNIVERSITY 26 LAND. (a) The Board of Regents shall, by rule or regulation, establish procedures 27 for mineral entry or location and mineral leasing on university land selections made 28 under AS 14.40.365 that are substantially similar to mineral entry, location, and leasing 29 procedures for state land under AS 38.05.185 - 38.05.275. 30 (b) Notwithstanding other provisions of law, the University of Alaska shall 31 seek public comment on proposals for development or sale of university selections
01 made under AS 14.40.365. The Board of Regents shall adopt policies which provide 02 that the university shall prepare an annual plan for management and disposition of 03 university land under this section and shall, not less that 30 days prior to scheduled 04 approval by the Board of Regents of the plan 05 (1) make copies of the plan available at all legislative information 06 offices and at such other locations as the university may designate; 07 (2) publish a notice in newspapers of general circulation in the state 08 which provides the public with information on the locations where the plan is available 09 for public inspection; 10 (3) give notice to all legislators and to local governments with 11 jurisdiction over the land affected by the proposal; and 12 (4) seek public comment on the annual plan prior to action by the 13 Board of Regents approving the plan. 14 Sec. 14.40.368. MANAGEMENT AND DISPOSITION OF INCOME FROM 15 EXISTING ENCUMBRANCES. For the land selected by and conveyed to the 16 University of Alaska under AS 14.40.365 that is subject to a lease, contract, claim, 17 sale, permit, or right-of-way identified in AS 14.40.365(a)(4) 18 (1) the state is entitled to receive the income obtained from the lease, 19 contract, claim, sale, permit, or right-of-way for the duration of the term of the lease, 20 contract, claim, sale, permit, or right-of-way, and during any renewal of it that is 21 authorized by the lease, contract, claim, sale, permit, or right-of-way, or by law; 22 (2) the responsibility for the management of the land vests with the 23 University of Alaska only upon conclusion of the term of the lease, contract, claim, 24 sale, permit, or right-of-way, and any renewal authorized by the lease, contract, claim, 25 sale, permit, or right-of-way, by law. 26 Sec. 14.40.369. CUSTOMARY AND TRADITIONAL USES TO BE 27 CONTINUED. When land selected by the University of Alaska under AS 14.40.365 28 has been conveyed to it, the University of Alaska shall manage the land in a manner 29 that permits customary and traditional uses of the resources of that land to the 30 maximum extent practicable. 31 * Sec. 6. AS 14.40.400(a) is amended to read:
01 (a) The Department of Revenue shall establish a separate endowment trust 02 fund in which all net income derived from the sale or lease of the land granted under 03 the Act of Congress approved January 21, 1929, and the land selected by and 04 conveyed to the University of Alaska under AS 14.40.365, and in which all 05 monetary gifts, bequests, or endowments made to the University of Alaska for the 06 purpose of the fund, shall be held in trust. 07 * Sec. 7. AS 14.40.400(e) is amended to read: 08 (e) Subject to legislative appropriation, the [THE] Department of 09 Administration shall disburse the net income from the trust fund upon vouchers 10 approved by the president and treasurer of the University of Alaska specifying the 11 purpose for which the money is to be used and showing it is to be used in conformity 12 with this section. 13 * Sec. 8. AS 14.40.491 is amended to read: 14 Sec. 14.40.491. DEFINITION OF UNIVERSITY RECEIPTS. In 15 AS 14.40.120 - 14.40.491, "university receipts" includes 16 (1) student fees, including tuition; 17 (2) receipts from university auxiliary services; 18 (3) recovery of indirect costs of university activities; 19 (4) the net income of the trust fund established in AS 14.40.400 and 20 receipts from sales and rentals of university property; 21 (5) federal receipts; 22 (6) gifts, grants, and contracts; and 23 (7) receipts from sales, rentals, and the provision of services of 24 educational activities. 25 * Sec. 9. AS 29.45.030(a) is amended to read: 26 (a) The following property is exempt from general taxation: 27 (1) municipal property, including property held by a public corporation 28 of a municipality, or state property, except that 29 (A) a private leasehold, contract, or other interest in the 30 property is taxable to the extent of the interest; 31 (B) notwithstanding any other provision of law, property
01 acquired by an agency, corporation, or other entity of the state through 02 foreclosure or deed in lieu of foreclosure and retained as an investment of a 03 state entity is taxable; this subparagraph does not apply to federal land granted 04 to the University of Alaska under AS 14.40.380 or 14.40.390, [OR] to other 05 land granted to the university by the state to replace land that had been granted 06 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 07 University of Alaska under AS 14.40.365; 08 (C) an ownership interest of a municipality in real property 09 located outside the municipality acquired after December 31, 1990, is taxable 10 by another municipality; however, a borough may not tax an interest in real 11 property located in the borough and owned by a city in that borough; 12 (2) household furniture and personal effects of members of a 13 household; 14 (3) property used exclusively for nonprofit religious, charitable, 15 cemetery, hospital, or educational purposes; 16 (4) property of a nonbusiness organization composed entirely of persons 17 with 90 days or more of active service in the armed forces of the United States whose 18 conditions of service and separation were other than dishonorable, or the property of 19 an auxiliary of that organization; 20 (5) money on deposit; 21 (6) the real property of certain residents of the state to the extent and 22 subject to the conditions provided in (e) of this section; 23 (7) real property or an interest in real property that is exempt from 24 taxation under 43 U.S.C. 1620(d), as amended; 25 (8) property of a political subdivision, agency, corporation, or other 26 entity of the United States to the extent required by federal law; except that a private 27 leasehold, contract, or other interest in the property is taxable to the extent of that 28 interest; 29 (9) natural resources in place including coal, ore bodies, mineral 30 deposits, and other proven and unproven deposits of valuable materials laid down by 31 natural processes, unharvested aquatic plants and animals, and timber.
01 * Sec. 10. APPLICABILITY OF UNIVERSITY SELECTION RIGHTS UNDER 02 AS 14.40.365 TO CERTAIN LAND. In addition to the land that, under AS 14.40.365(e), the 03 commissioner of natural resources may not convey to the University of Alaska, the 04 commissioner of natural resources may not convey land that, at the time of its selection by 05 the university, is subject to designation for conveyance or conveyance to the Alaska Mental 06 Health Trust Authority under sec. 40, ch. 5, FSSLA 1994, as amended by secs. 4 and 5, 07 SSSLA 1994.