CSHB 333(HES): "An Act relating to an endowment for public education and the University of Alaska; relating to university land; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 333(HES) 01 "An Act relating to an endowment for public education and the University of Alaska; 02 relating to university land; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.40.170(a) is amended to read: 05 (a) The Board of Regents shall 06 (1) appoint the president of the university by a majority vote of the 07 whole board, and the president may attend meetings of the board; 08 (2) fix the compensation of the president of the university, all heads of 09 departments, professors, teachers, instructors, and other officers; 10 (3) confer such appropriate degrees as it may determine and prescribe; 11 (4) except as provided under AS 14.40.505, have the care, control, 12 and management of 13 (A) all the real and personal property of the university; and 14 (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 07 AND CONVEYED TO IT BY THE COMMISSIONER OF 08 NATURAL RESOURCES UNDER AS 14.40.365;] 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 (9) administer, manage, market, and promote a postsecondary 20 education savings program, including the Alaska Higher Education Savings Trust 21 under AS 14.40.802 and the Alaska advance college tuition savings fund under 22 AS 14.40.803 - 14.40.817. 23 * Sec. 2. AS 14.40.291(a) is amended to read: 24 (a) Notwithstanding any other provision of law, university-grant land, state 25 replacement land that becomes university-grant land on conveyance to the university, 26 [LAND SELECTED BY AND CONVEYED TO THE UNIVERSITY OF ALASKA 27 UNDER AS 14.40.365,] and any other land owned by the University of Alaska, 28 except for land transferred under AS 14.40.505, is not and may not be treated as 29 state public domain land. [LAND CONVEYED TO THE UNIVERSITY OF 30 ALASKA UNDER AS 14.40.365 SHALL BE MANAGED UNDER AS 14.40.365 - 31 14.40.368 AND POLICIES OF THE BOARD OF REGENTS OF THE UNIVERSITY
01 OF ALASKA.] 02 * Sec. 3. AS 14.40.400(a) is amended to read: 03 (a) The Board of Regents shall establish a separate endowment trust fund in 04 which shall be held in trust in perpetuity all 05 (1) net income derived from the sale or lease of the land granted under 06 the Act of Congress approved January 21, 1929, as amended; 07 (2) receipts transferred to the fund under AS 14.40.500 [NET 08 INCOME DERIVED FROM THE SALE, LEASE, OR MANAGEMENT OF THE 09 LAND SELECTED BY AND CONVEYED TO THE UNIVERSITY OF ALASKA 10 UNDER AS 14.40.365]; and 11 (3) monetary gifts, bequests, or endowments made to the University of 12 Alaska for the purpose of the fund. 13 * Sec. 4. AS 14.40 is amended by adding new sections to read: 14 Sec. 14.40.495. Use of public school trust fund; percentage of market 15 value. Notwithstanding AS 37.14.140, up to five percent of the market value of that 16 portion of the public school trust fund, as established under AS 37.14.110, that 17 represents the contributions to that fund under AS 14.40.500 may be annually 18 appropriated by the legislature equally for the support of public elementary and 19 secondary education. 20 Sec. 14.40.500. Funding from public school trust fund and university 21 lands. By November 15 of each year, the commissioner of revenue shall transfer to 22 the principal of the public school trust fund (AS 37.14.110) 60 percent, and to the 23 University of Alaska endowment trust fund (AS 14.40.400) 40 percent, of a sum equal 24 to the total receipts derived from the management of the land conveyed under 25 AS 14.40.505, including amounts paid to the state as proceeds of sale or annual rent of 26 surface rights, mineral lease rentals, royalties, or royalty sale proceeds from the 27 previous fiscal year, after deducting contributions to the Alaska permanent fund that 28 are required by law. 29 Sec. 14.40.505. Land endowment. The legislature conveys to the University 30 of Alaska as tenant in common with the state, and subject to the limitations of this 31 section, an undivided two percent interest in land that constitutes the state public
01 domain, and to the public school trust fund as tenant in common with the state, and 02 subject to the limitations of this section, an undivided two percent interest in state land 03 that is managed by the Department of Natural Resources under AS 38. The 04 conveyance shall be recorded under AS 40.17.020. Notwithstanding another provision 05 of law, 06 (1) the interest in land conveyed to the University of Alaska and the 07 public school trust fund is strictly limited to the right to receive income earned and 08 received by the state as proceeds from royalties, rent, sale, lease, and other disposal of 09 land that constitutes the state public domain and state land that is managed by the 10 Department of Natural Resources under AS 38, after deducting contributions to the 11 Alaska permanent fund required by law and after deducting administrative service 12 fees, application fees, filing fees, processing fees, or other similar fees; 13 (2) the interest in land conveyed to the University of Alaska and the 14 public school trust fund does not include a right or interest in possession of land, in the 15 management or disposal of the land, or in a decision-making process relating to the 16 use of the land; except where otherwise provided in law and regulation, the 17 Department of Natural Resources shall be the sole agency to manage or dispose of 18 land subject to this section; 19 (3) the Department of Natural Resources does not owe the University 20 of Alaska or the public school trust fund a fiduciary duty with respect to its 21 management or disposition of the land subject to this section. 22 * Sec. 5. AS 29.45.030(a) is amended to read: 23 (a) The following property is exempt from general taxation: 24 (1) municipal property, including property held by a public corporation 25 of a municipality, state property, property of the University of Alaska, or land that is 26 in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 84- 27 830, 70 Stat. 709, except that 28 (A) a private leasehold, contract, or other interest in the 29 property is taxable to the extent of the interest; however, an interest created by 30 a nonexclusive use agreement between the Alaska Industrial Development and 31 Export Authority and a user of an integrated transportation and port facility
01 owned by the authority and initially placed in service before January 1, 1999, 02 is taxable only to the extent of, and for the value associated with, those specific 03 improvements used for lodging purposes; 04 (B) notwithstanding any other provision of law, property 05 acquired by an agency, corporation, or other entity of the state through 06 foreclosure or deed in lieu of foreclosure and retained as an investment of a 07 state entity is taxable; this subparagraph does not apply to federal land granted 08 to the University of Alaska under AS 14.40.380 or 14.40.390, to other land 09 granted to the university by the state to replace land that had been granted 10 under AS 14.40.380 or 14.40.390, or to an interest in land conveyed by the 11 state to the university under AS 14.40.505 [AS 14.40.365]; 12 (C) an ownership interest of a municipality in real property 13 located outside the municipality acquired after December 31, 1990, is taxable 14 by another municipality; however, a borough may not tax an interest in real 15 property located in the borough and owned by a city in that borough; 16 (2) household furniture and personal effects of members of a 17 household; 18 (3) property used exclusively for nonprofit religious, charitable, 19 cemetery, hospital, or educational purposes; 20 (4) property of a nonbusiness organization composed entirely of 21 persons with 90 days or more of active service in the armed forces of the United States 22 whose conditions of service and separation were other than dishonorable, or the 23 property of an auxiliary of that organization; 24 (5) money on deposit; 25 (6) the real property of certain residents of the state to the extent and 26 subject to the conditions provided in (e) of this section; 27 (7) real property or an interest in real property that is exempt from 28 taxation under 43 U.S.C. 1620(d), as amended; 29 (8) property of a political subdivision, agency, corporation, or other 30 entity of the United States to the extent required by federal law; except that a private 31 leasehold, contract, or other interest in the property is taxable to the extent of that
01 interest; 02 (9) natural resources in place including coal, ore bodies, mineral 03 deposits, and other proven and unproven deposits of valuable materials laid down by 04 natural processes, unharvested aquatic plants and animals, and timber. 05 * Sec. 6. AS 37.14.160 is amended to read: 06 Sec. 37.14.160. Duties of the commissioner of revenue. The commissioner 07 of revenue is the treasurer of the trust fund created in AS 37.14.110 and shall 08 (1) in carrying out investment duties under this section, exercise the 09 same powers and duties established for the Alaska State Pension Investment Board in 10 AS 14.25.180(c); 11 (2) deposit the principal and income from investments in separate 12 principal and income accounts for the fund; 13 (3) invest and maintain accounting records that distinguish between the 14 principal and income of the fund; 15 (4) separately account for contributions to the trust fund under 16 AS 14.40.500 and the principal of the fund attributable to those contributions for 17 the purpose of determining the amount that may be appropriated by the 18 legislature under AS 14.40.495; and 19 (5) provide reports to the board established under AS 37.14.120 on the 20 condition and investment performance of the fund. 21 * Sec. 7. AS 14.40.365, 14.40.366, 14.40.368, and 14.40.461 are repealed. 22 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 APPLICABILITY. AS 14.40.500, as enacted in sec. 4 of this Act, applies to receipts 25 derived from the management of state and university land received on or after the effective 26 date of this Act. 27 * Sec. 9. This Act takes effect July 1, 2004.