CSSB 7(FIN): "An Act relating to the University of Alaska and university land, and authorizing the University of Alaska to select additional state land."
00CS FOR SENATE BILL NO. 7(FIN) 01 "An Act relating to the University of Alaska and university land, and authorizing 02 the University of Alaska to select additional state land." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS AND PURPOSE. The legislature finds that 05 (1) as the beneficiary under the provisions of the Acts of August 30, 1890, and 06 March 4, 1907, designating the Alaska Agricultural College and School of Mines as 07 beneficiary, and of March 4, 1915, 38 Stat. 1214, transferring certain land for its location and 08 support, the University of Alaska is a land grant university; 09 (2) under the Acts of March 4, 1915, 38 Stat. 1214, and January 21, 1929, 45 10 Stat. 1091, the Congress of the United States granted to the Territory of Alaska certain federal 11 land to be held in trust for the benefit of the predecessor of the University of Alaska; 12 (3) the Territory was unable to receive most of the land conveyed by the Act 13 of March 4, 1915, before repeal of that Act by Sec. 6(k) of the Alaska Statehood Act (P.L. 85- 14 508, 72 Stat. 339);
01 (4) the Congress of the United States granted the State of Alaska the right to 02 select 102,500,000 acres of federal land under Sec. 6(b) of the Alaska Statehood Act; 03 (5) the land selection rights embodied in the Alaska Statehood Act reflect in 04 part congressional recognition that the state would need the land to support its government and 05 programs, and the Congress assumed that the State of Alaska would in turn devote some of 06 the land or the income from it for the use and benefit of the University of Alaska; 07 (6) most land grant colleges in the western United States have obtained a larger 08 land grant from the federal government than the University of Alaska has received; 09 (7) an academically strong and financially secure state university system is a 10 cornerstone to the long-term development of a stable population and to a healthy, diverse 11 economy in the state; 12 (8) it is in the best interests of the state and the University of Alaska that the 13 university take ownership of a significant and substantial portfolio of income producing land 14 in order to provide income for the support of public higher education in the state; and 15 (9) renewable resources should be managed on a sustained yield basis, taking 16 into account the total land grant. 17 * Sec. 2. LEGISLATIVE INTENT. It is the intent of the legislature that the University 18 of Alaska 19 (1) receive land under this Act in an expeditious fashion; and 20 (2) encourage the development of in-state value-added industries to the 21 maximum extent feasible when developing land conveyed under AS 14.40.365. 22 * Sec. 3. AS 14.40.170(a) is amended to read: 23 (a) The Board of Regents shall 24 (1) appoint the president of the university by a majority vote of the 25 whole board, and the president may attend meetings of the board; 26 (2) fix the compensation of the president of the university, all heads of 27 departments, professors, teachers, instructors, and other officers; 28 (3) confer such appropriate degrees as it may determine and prescribe; 29 (4) have the care, control, and management of 30 (A) all the real and personal property of the university; and 31 (B) land
01 (i) conveyed to the Board of Regents by the 02 commissioner of natural resources in the settlement of the claim of the 03 University of Alaska to land granted to the state in accordance with the 04 Act of March 4, 1915 (38 Stat. 1214), as amended , and in accordance 05 with the Act of January 21, 1929 (45 Stat. 1091), as amended; and 06 (ii) selected by the University of Alaska and conveyed 07 to it by the commissioner of natural resources under AS 14.40.365, 08 except as provided in AS 14.40.368(2); 09 (5) keep a correct and easily understood record of the minutes of every 10 meeting and all acts done by it in pursuance of its duties; 11 (6) under procedures to be established by the commissioner of 12 administration, and in accordance with existing procedures for other state agencies, 13 have the care, control, and management of all money of the university and keep a 14 complete record of all money received and disbursed; 15 (7) adopt reasonable rules for the prudent trust management and the 16 long-term financial benefit to the university of the land of the university; 17 (8) provide public notice of sales, leases, exchanges, and transfers of 18 the land of the university or of interests in land of the university. 19 * Sec. 4. AS 14.40.291 is amended to read: 20 Sec. 14.40.291. Land of the University of Alaska not public domain land. 21 (a) Notwithstanding any other provision of law, university-grant land, state 22 replacement land that becomes university-grant land on conveyance to the university, 23 land selected by and conveyed to the University of Alaska under AS 14.40.365, and 24 any other land owned by the University of Alaska is not and may not be treated as 25 state public domain land. Land conveyed to the University of Alaska under 26 AS 14.40.365 shall be managed under AS 14.40.365 - 14.40.368 and policies of the 27 Board of Regents of the University of Alaska. 28 (b) Title to or interest in [TO] land described in (a) of this section may not 29 be acquired by adverse possession, prescription, or in any other manner except by 30 conveyance from the university. 31 (c) The land described in (a) of this section is subject to condemnation for
01 public purpose in accordance with law. 02 * Sec. 5. AS 14.40 is amended by adding new sections to read: 03 Sec. 14.40.365. University land from Statehood Act land selection 04 conveyances. (a) The University of Alaska may select and is entitled to receive the 05 conveyance of not less than 250,000 and not more than 260,000 acres of land 06 conveyed to the state under Sec. 6(b) of the Alaska Statehood Act (P.L. 85-508, 72 07 Stat. 339). The Board of Regents of the University of Alaska shall annually submit 08 a list of selections to the commissioner of natural resources. If there is disagreement 09 between the university and the commissioner of natural resources about the land 10 selected, the disagreement must be submitted to the governor, who shall make the final 11 decision. The Board of Regents and the governor shall annually and jointly submit to 12 the legislature, within 30 days of the beginning of a regular legislative session, a list 13 of the selections of land proposed to be conveyed by the state to the University of 14 Alaska under this section. Each list must contain not more than 25 percent of the total 15 acres of land to which the university is entitled after subtracting previous conveyances 16 under this section, but not less than 25,000 acres or the remaining entitlement under 17 this section, whichever is less. The legislature may by law approve or disapprove the 18 list of selections submitted to it. A list of selections submitted shall be considered 19 approved for conveyance to the University of Alaska if the legislature does not 20 disapprove the list during the legislative session during which the list was submitted. 21 If the amount of land to be conveyed exceeds the balance due the university under this 22 section, the university shall set out the land to be conveyed in priority order. Land 23 may not be selected if, on the date of its selection by the university, it 24 (1) has been reserved by law from the public domain; 25 (2) is land 26 (A) included in a five-year proposed oil and gas leasing 27 program under AS 38.05.180(b); or 28 (B) leased under, or for which a lease application is pending 29 under, AS 38.05.180(d) or 38.05.150; 30 (3) is subject to 31 (A) an oil, gas, or coal lease, or coal prospecting permit;
01 (B) a mining claim, offshore prospecting permit, a prospecting 02 site, an upland mining lease, or a mining leasehold location; 03 (4) is necessary to carry out the purpose of an interagency land 04 management agreement; or 05 (5) is subject to conveyance under a land exchange or land settlement 06 agreement. 07 (b) Notwithstanding AS 38.05.125(a), the transfer of ownership and 08 management of land from the Department of Natural Resources to the Board of 09 Regents of the University of Alaska under this section includes the interest of the state 10 in 11 (1) the coal, ores, minerals, fissionable materials, geothermal resources, 12 and fossils that may be in or on the land; and 13 (2) the oil and gas that may be in or on the land, but only as to land 14 that is selected by the University of Alaska under this section on and after the date that 15 is the fifth anniversary of the effective date of this section. 16 (c) When the University of Alaska selects the land to which it is entitled under 17 this section, selections must be made in parcels of 640 acres or larger unless the 18 selection is an isolated tract or the commissioner of natural resources finds it is in the 19 best interest of the state to convey less. When the University of Alaska becomes 20 entitled to land under this section, the commissioner of natural resources shall convey 21 a document of interim conveyance under (j) of this section or a patent to land. 22 (d) Notwithstanding any other provision of law, for land selected under (a) of 23 this section but not yet patented to the University of Alaska or for which a document 24 of interim conveyance has not been issued to the University of Alaska under this 25 section, 26 (1) the state is authorized to enter into contracts and grant leases, 27 licenses, prospecting sites, claims, permits, rights-of-way, or easements and any interim 28 conveyance or patent shall be subject to the contract, lease, license, prospecting site, 29 claim, permit, right-of-way, or easement, except that the authority granted the state by 30 this subsection 31 (A) is the authority that the state otherwise would have had
01 under existing laws and regulations had the land not been selected by the 02 University of Alaska; and 03 (B) may be exercised only if the University of Alaska has 04 concurred before the action is taken by the state; 05 (2) income from and management of the land is subject to 06 AS 14.40.368. 07 (e) Unless the governor provides otherwise under (a) of this section, the 08 governor may not include on a list of selections of land submitted to the legislature a 09 land selection made by the University of Alaska under this section if the commissioner 10 of natural resources determines that the proposed selection 11 (1) includes land for which, at the time of its selection under this 12 section, 13 (A) a municipality has made a selection under AS 29.65 unless 14 the land selection is, at a later date, rejected by the commissioner of natural 15 resources or relinquished by the municipality; or 16 (B) the commissioner reasonably believes the land may be 17 selected by a municipality under AS 29.65, but the commissioner may not 18 withhold under this subparagraph the conveyance of title to land selected by the 19 university longer than three years after the date of the municipality's 20 incorporation; or 21 (2) includes land that, at the time of its selection under this section, 22 (A) is subject to an oil and gas exploration license; or 23 (B) the commissioner reasonably believes will be made part of 24 an oil and gas exploration license issued under AS 38.05.131 - 38.05.134; the 25 commissioner may not refuse to convey title to land to the University of Alaska 26 under this subparagraph for more than three years after its first selection by the 27 University of Alaska. 28 (f) When land is conveyed to the University of Alaska under this section, the 29 University of Alaska takes the land subject to any possessory interest held by another 30 person on the effective date of the conveyance. 31 (g) In conveying land to the University of Alaska under this section, the
01 commissioner of natural resources shall give public notice that substantially complies 02 with notice requirements under AS 38.05.945(b) and (c) and provide for access under 03 AS 38.05.127, but other provisions of AS 38.04 and AS 38.05 do not apply. 04 (h) Land transferred or conveyed to the University of Alaska under this section 05 (1) is subject to 06 (A) Sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 07 339); 08 (B) art. IX of the state constitution; 09 (C) AS 19.10.010; 10 (D) the payment requirements to the Alaska permanent fund 11 under AS 37.13.010(a) and (b); and 12 (E) the rights of the state under former 43 U.S.C. 932 (sec. 8, 13 Act of July 26, 1866, 14 Stat. 253); 14 (2) excludes any interest transferred to the state by quitclaim deed dated 15 June 30, 1959, under authority of the Alaska Omnibus Act, P.L. 86-70, 73 Stat. 141; 16 (3) based on a land selection filed by the University of Alaska on or 17 after the effective date of this section and until the day before the day that is the fifth 18 anniversary of the effective date of this section, is subject to reservation by the state 19 in perpetuity of all oil and gas that may be in or on the land, together with the right 20 to explore the land for oil and gas and to remove from the land all oil and gas located 21 in and on it. 22 (i) The University of Alaska shall bear all costs of selection, platting, 23 surveying, and, except as provided in (k) of this section, conveyance of the land that 24 it selects under this section and, subject to appropriation, shall reimburse the 25 Department of Natural Resources for the reasonable costs incurred by that department 26 relating to that selection, platting, surveying, and conveyance. As to land due the 27 University of Alaska under (c) of this section, 28 (1) if the land has been surveyed, the boundaries of the land conveyed 29 must conform to the public land subdivisions established by the approved survey; 30 (2) if the land is unsurveyed, the commissioner shall survey the exterior 31 boundaries of the land to be conveyed without interior subdivision and shall issue
01 patent in terms of the exterior boundary survey within one year of the later of the 02 effective date of the approval by the legislature of the list containing the land or the 03 adjournment of the legislative session during which the list containing the land was not 04 disapproved by the legislature. 05 (j) For land due the University of Alaska under (c) of this section that is 06 unsurveyed, pending the survey of exterior boundaries and issuance of patent, the 07 commissioner of natural resources shall, within one year of the later of the effective 08 date of the approval by the legislature of the list containing the land or the 09 adjournment of the legislative session during which the list containing the land was not 10 disapproved by the legislature, prepare and provide to the University of Alaska a 11 document of interim conveyance for the land to be conveyed. 12 (k) Except as provided in AS 14.40.368(2), management of land conveyed to 13 the University of Alaska by patent or by a document of interim conveyance vests with 14 the University of Alaska from the date of recording of the patent or document of 15 interim conveyance. The state shall pay the cost of recording all patents and 16 documents of interim conveyance. 17 (l) The University of Alaska may not make a land selection under this section 18 after December 31, 2010. 19 Sec. 14.40.366. Management requirements for university land. (a) The 20 Board of Regents shall, by policy, establish procedures for mineral entry or location 21 and mineral leasing on university land selections made under AS 14.40.365 that are 22 substantially similar to mineral entry, location, and leasing procedures for state land 23 under AS 38.05.185 - 38.05.275. 24 (b) Notwithstanding other provisions of law, the University of Alaska shall 25 seek public comment on proposals for development, exchange, or sale of university 26 selections made under AS 14.40.365. The Board of Regents shall adopt policies that 27 provide that the university shall prepare an annual plan for management and 28 disposition of university land under this section and shall, not less than 60 days before 29 scheduled approval by the Board of Regents of the plan, 30 (1) make copies of the plan available at all legislative information 31 offices and at other locations as the university may designate;
01 (2) publish a notice in newspapers of general circulation in the state 02 that provides the public with information on the locations where the plan is available 03 for public inspection; 04 (3) give notice to all legislators and to local governments with 05 jurisdiction over the land affected by the proposal; and 06 (4) seek public comment on the annual plan before action by the Board 07 of Regents approving the plan. 08 (c) Subject to appropriation of the income, the Board of Regents shall use an 09 amount up to 20 percent of the earnings derived from the management of university 10 land conveyed to the university under AS 14.40.365 for programs and services 11 supporting the development of natural resources within the region from which the 12 earnings were derived. The earnings shall be used by the campus or campuses located 13 within the region from which the earnings were derived if a municipality within which 14 the campus or campuses are located provides to the campus or campuses a match of 15 the same amount. This subsection does not apply if the match is not made available 16 by a municipality. 17 (d) Before the conveyance or the disposal of an interest in the land to a third 18 party, land conveyed to the University of Alaska under AS 14.40.365 shall be managed 19 in a manner that permits the continuation of traditional uses of the land to the 20 maximum extent practicable. 21 Sec. 14.40.367. Confidential records. Notwithstanding AS 09.25.100 - 22 09.25.220, on a determination that it is in the best interest of the University of Alaska 23 or on the request of the person who has provided the information, the president of the 24 university may keep the following confidential: 25 (1) the name of a person applying for the sale, lease, or other disposal 26 of university land or an interest in university land; 27 (2) before the issuance of a notice of intent to award a contract relating 28 to a sale, lease or disposal of university land or an interest in university land, the 29 names of the participants and the terms of their offers; 30 (3) all geological, geophysical, engineering, architectural, sales, 31 appraisal, gross receipts, net receipts, or other financial information relating to
01 university land or an interest in university land and considered for or offered for 02 disposal or currently subject to a contract; 03 (4) cost data and financial information submitted by an applicant in 04 support of applications for bonds, leases, or other information in offerings and ongoing 05 operations relating to management of university land; 06 (5) applications for rights-of-way or easements across university land; 07 and 08 (6) requests for information about or applications by public agencies 09 for university land that is being considered for use for a public purpose. 10 Sec. 14.40.368. Land subject to encumbrances and trespasses. Except as 11 provided in AS 14.40.365(b), for the land selected by the University of Alaska under 12 AS 14.40.365 that is subject to a lease, license, contract, prospecting site, claim, sale, 13 permit, right-of-way, or easement, or to trespass, 14 (1) if the lease, license, contract, prospecting site, claim, sale, permit, 15 right-of-way, easement, or trespass 16 (A) existed before the selection of the land by the University 17 of Alaska, the state is entitled to receive the income obtained from the lease, 18 license, contract, prospecting site, claim, sale, permit, right-of-way, easement, 19 or trespass for the duration of the term of the lease, license, contract, 20 prospecting site, claim, sale, permit, right-of-way, or easement, or of the 21 trespass, and during any renewal of it that is authorized by the lease, license, 22 contract, prospecting site, claim, sale permit, right-of-way, or easement, or by 23 law; 24 (B) did not exist before the selection of the land by the 25 University of Alaska, 26 (i) the state is entitled to receive the income obtained 27 from the lease, license, contract, prospecting site, claim, sale, permit, 28 right-of-way, or easement, or from trespass before the recording of the 29 conveyance to the University of Alaska by the issuance of a document 30 of interim conveyance or a patent; 31 (ii) the University of Alaska is entitled to receive the
01 income obtained from the lease, license, contract, prospecting site, 02 claim, sale, permit, right-of-way, or easement, or from trespass on the 03 date of and after the recording of the conveyance to the University of 04 Alaska by the issuance of a document of interim conveyance or a 05 patent; 06 (2) the responsibility for the management of the land vests with the 07 University of Alaska only upon conclusion of the term of the lease, license, contract, 08 prospecting site, claim, sale, permit, right-of-way, or easement, and any renewal 09 authorized by the lease, license, contract, prospecting site, claim, sale, permit, right-of- 10 way, or easement, or by law, if the lease, license, contract, prospecting site, claim, sale, 11 permit, right-of-way, or easement existed before the land's being selected by the university; 12 if the lease, license, contract, prospecting site, claim, sale, permit, right-of- 13 way, or easement was entered into after selection, then the responsibility for management vests 14 with the university on the date of recording of the conveyance of the land to the university 15 by a document of interim conveyance or patent. 16 * Sec. 6. AS 14.40.400(a) is amended to read: 17 (a) The Board of Regents shall establish a separate endowment trust fund in 18 which shall be held in trust in perpetuity all 19 (1) [ALL] net income derived from the sale or lease of the land granted 20 under the Act of Congress approved January 21, 1929, as amended; [AND] 21 (2) net income derived from the sale, lease, or management of the 22 land selected by and conveyed to the University of Alaska under AS 14.40.365; 23 and 24 (3) [ALL] monetary gifts, bequests, or endowments made to the 25 University of Alaska for the purpose of the fund. 26 * Sec. 7. AS 29.45.030(a) is amended to read: 27 (a) The following property is exempt from general taxation: 28 (1) municipal property, including property held by a public corporation 29 of a municipality, [OR] state property, property of the University of Alaska, or land 30 that is in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 31 84-830, 70 Stat. 709, except that
01 (A) a private leasehold, contract, or other interest in the 02 property is taxable to the extent of the interest; 03 (B) notwithstanding any other provision of law, property 04 acquired by an agency, corporation, or other entity of the state through 05 foreclosure or deed in lieu of foreclosure and retained as an investment of a 06 state entity is taxable; this subparagraph does not apply to federal land granted 07 to the University of Alaska under AS 14.40.380 or 14.40.390, [OR] to other 08 land granted to the university by the state to replace land that had been granted 09 under AS 14.40.380 or 14.40.390 , or to land conveyed by the state to the 10 university under AS 14.40.365 ; 11 (C) an ownership interest of a municipality in real property 12 located outside the municipality acquired after December 31, 1990, is taxable 13 by another municipality; however, a borough may not tax an interest in real 14 property located in the borough and owned by a city in that borough; 15 (2) household furniture and personal effects of members of a 16 household; 17 (3) property used exclusively for nonprofit religious, charitable, 18 cemetery, hospital, or educational purposes; 19 (4) property of a nonbusiness organization composed entirely of persons 20 with 90 days or more of active service in the armed forces of the United States whose 21 conditions of service and separation were other than dishonorable, or the property of 22 an auxiliary of that organization; 23 (5) money on deposit; 24 (6) the real property of certain residents of the state to the extent and 25 subject to the conditions provided in (e) of this section; 26 (7) real property or an interest in real property that is exempt from 27 taxation under 43 U.S.C. 1620(d), as amended; 28 (8) property of a political subdivision, agency, corporation, or other 29 entity of the United States to the extent required by federal law; except that a private 30 leasehold, contract, or other interest in the property is taxable to the extent of that 31 interest;
01 (9) natural resources in place including coal, ore bodies, mineral 02 deposits, and other proven and unproven deposits of valuable materials laid down by 03 natural processes, unharvested aquatic plants and animals, and timber.