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HB 479: "An Act establishing an education fund and a land endowment for public education; and providing for an effective date."

00                             HOUSE BILL NO. 479                                                                          
01 "An Act establishing an education fund and a land endowment for public education;                                       
02 and providing for an effective date."                                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 37.14 is amended by adding new sections to read:                                                  
05                        Article 9.  Education Fund.                                                                    
06            Sec. 37.14.800.  Education fund established.  (a)  Under art. IX, sec. 18,                                 
07       Constitution of the State of Alaska, the education fund is established as a separate fund                         
08       of the state.                                                                                                     
09            (b)  The principal of the fund consists of                                                                   
10                 (1)  legislative appropriations to the fund;                                                            
11                 (2)  transfers of land to the fund; and                                                                 
12                 (3)  gifts, bequests, and contributions of cash or other assets from a                                  
13       person.                                                                                                           
14            (c)  The net income of the fund shall be determined by the commissioner of                                   
01       revenue in accordance with investment accounting principles and in a manner that                                  
02       preserves the distinction between principal and income.                                                           
03            Sec. 37.14.810.  Powers and duties of the commissioner of revenue.  The                                    
04       commissioner of revenue is the treasurer of the fund and has the power and duty to                                
05                 (1)  act as official custodian of the cash and investments belonging to                                 
06       the fund by securing adequate and safe custodial facilities;                                                      
07                 (2)  receive all items of cash and investments belonging to the fund;                                   
08                 (3)  collect the principal and income from investments owned or                                         
09       acquired by the fund and deposit the amounts in separate principal and income                                     
10       accounts for the fund;                                                                                            
11                 (4)  invest and reinvest the assets of the fund as provided in this section                             
12       and as provided for the investment of funds under AS 37.14.170;                                                   
13                 (5)  exercise the powers of an owner with respect to the assets of the                                  
14       fund;                                                                                                             
15                 (6)  maintain accounting records of the fund in accordance with                                         
16       investment accounting principles and with distinction between the principal and                                   
17       income accounts of the fund;                                                                                      
18                 (7)  engage an independent firm of certified public accountants to                                      
19       annually audit the financial condition of the fund's investments and investment                                   
20       transactions;                                                                                                     
21                 (8)  enter into and enforce contracts or agreements considered                                          
22       necessary for the investment purposes of the fund;                                                                
23                 (9)  report to the board the condition and investment performance of the                                
24       fund;                                                                                                             
25                 (10)  do all acts, whether or not expressly authorized, that the                                        
26       commissioner of revenue considers necessary or proper in administering the assets of                              
27       the fund.                                                                                                         
28            Sec. 37.14.820.  Administration of the fund; fund board established.  (a)                                  
29       The fund shall be administered by the Education Fund Board.                                                       
30            (b)  The Education Fund Board is established in the Department of Education                                  
31       and Early Development.  The board is composed of                                                                  
01                 (1)  the governor or a designee of the governor;                                                        
02                 (2)  the commissioner of natural resources or the commissioner's                                        
03       designee;                                                                                                         
04                 (3)  the commissioner of education and early development or the                                         
05       commissioner's designee; and                                                                                      
06                 (4)  four public members appointed by the governor; in appointing the                                   
07       public members, the governor shall give a preference to persons who have experience                               
08       and expertise in                                                                                                  
09                      (A)  education; or                                                                                 
10                      (B)  private sector resource development.                                                          
11            Sec. 37.14.830.  Powers and duties of the board.  When acting as                                           
12       administrator of the fund, the board shall                                                                        
13                 (1)  hold regular and special meetings it considers necessary; the board                                
14       may hold meetings by teleconference;                                                                              
15                 (2)  have the care, control, and management of land selected by and                                     
16       conveyed to the fund by the commissioner of natural resources under AS 37.14.850;                                 
17                 (3)  keep audio tape recordings of each meeting of the board to be made                                 
18       available on request; and                                                                                         
19                 (4)  submit to the governor and make available to the legislature by                                    
20       February 1 each year a report describing                                                                          
21                      (A)  expenditures made during the preceding fiscal year from                                       
22            the fund that are derived from sales, leases, exchanges, or transfers of the land                            
23            of the fund or of interests in land of the fund that were selected by and                                    
24            conveyed to the fund under AS 37.14.850; and                                                                 
25                      (B)  the annual level of contributions to, income of, and                                          
26            expenses of the fund.                                                                                        
27            Sec. 37.14.840.  Uses of fund principal and net income.  (a)  The principal of                             
28       the fund shall be retained perpetually in the fund for investment as specified in                                 
29       AS 37.14.810.                                                                                                     
30            (b)  The net income of the fund may be annually appropriated by the                                          
31       legislature for the support of public elementary and secondary education and for                                  
01       support of the University of Alaska.                                                                              
02            Sec. 37.14.850.  Fund land from Statehood Act land selection conveyances.                                  
03       (a)  The board may select and is entitled to receive the conveyance of 5,000,000 acres                            
04       of land conveyed to the state under sec. 6(b) of the Alaska Statehood Act (P.L. 85-508,                           
05       72 Stat. 339).  The board shall annually submit a list of selections to the commissioner                          
06       of natural resources.  If there is disagreement between the board and the commissioner                            
07       of natural resources about the land selected, the disagreement must be submitted to the                           
08       governor, who shall make the final decision.  The board and the governor shall                                    
09       annually and jointly submit to the legislature, within 30 days after the beginning of a                           
10       regular legislative session, a list of the selections of land proposed to be conveyed to                          
11       the fund under this section.  Each list must contain not more than 25 percent of the                              
12       total acres of land to which the fund is entitled after subtracting previous conveyances                          
13       under this section, but not less than 25,000 acres or the remaining entitlement under                             
14       this section, whichever is less.  The legislature may by law approve or disapprove the                            
15       list of selections submitted to it.  A list of selections submitted shall be considered                           
16       approved for conveyance to the fund if the legislature does not disapprove the list                               
17       during the legislative session during which the list was submitted.  If the amount of                             
18       land to be conveyed exceeds the balance due the fund under this section, the fund shall                           
19       set out the land to be conveyed in priority order.  Land may not be selected if, on the                           
20       date of its selection by the board, it                                                                            
21                 (1)  has been reserved by law from the public domain;                                                   
22                 (2)  is land                                                                                            
23                      (A)  included in a five-year proposed oil and gas leasing                                          
24            program under AS 38.05.180(b); or                                                                            
25                      (B)  leased under, or for which a lease application is pending                                     
26            under, AS 38.05.180(d) or 38.05.150;                                                                         
27                 (3)  is subject to                                                                                      
28                      (A)  an oil, gas, or coal lease, or coal prospecting permit;                                       
29                      (B)  a mining claim, offshore prospecting permit, a prospecting                                    
30            site, an upland mining lease, or a mining leasehold location;                                                
31                 (4)  is necessary to carry out the purpose of an interagency land                                       
01       management agreement; or                                                                                          
02                 (5)  is subject to conveyance under a land exchange or land settlement                                  
03       agreement.                                                                                                        
04            (b)  Notwithstanding AS 38.05.125(a), the transfer of ownership and                                          
05       management of land from the Department of Natural Resources to the fund under this                                
06       section includes the interest of the state in                                                                     
07                 (1)  the coal, ores, minerals, fissionable materials, geothermal                                        
08       resources, and fossils that may be in or on the land; and                                                         
09                 (2)  the oil and gas that may be in or on the land, but only as to land                                 
10       that is selected by the board under this section on and after the date that is the fifth                          
11       anniversary of the effective date of this section.                                                                
12            (c)  When the board selects the land to which it is entitled under this section,                             
13       selections must be made in parcels of 640 acres or larger unless the selection is an                              
14       isolated tract or the commissioner of natural resources finds it is in the best interest of                       
15       the state to convey less.  When the fund becomes entitled to land under this section,                             
16       the commissioner of natural resources shall convey a document of interim conveyance                               
17       under (j) of this section or a patent to land.                                                                    
18            (d)  Notwithstanding any other provision of law, for land selected under (a) of                              
19       this section but not yet patented to the fund or for which a document of interim                                  
20       conveyance has not been issued to the fund under this section,                                                    
21                 (1)  the commissioner of natural resources is authorized to enter into                                  
22       contracts and grant leases, licenses, prospecting sites, claims, permits, rights-of-way,                          
23       or easements and any interim conveyance or patent shall be subject to the contract,                               
24       lease, license, prospecting site, claim, permit, right-of-way, or easement, except that                           
25       the authority granted the commissioner by this subsection                                                         
26                      (A)  is the authority that the commissioner otherwise would                                        
27            have had under existing laws and regulations had the land not been selected by                               
28            the fund; and                                                                                                
29                      (B)  may be exercised only if the fund has concurred before the                                    
30            action is taken by the commissioner;                                                                         
31                 (2)  income from and management of the land is subject to                                               
01       AS 37.14.880.                                                                                                     
02            (e)  Unless the governor provides otherwise under (a) of this section, the                                   
03       governor may not include on a list of selections of land submitted to the legislature a                           
04       land selection made by the fund under this section if the commissioner of natural                                 
05       resources determines that the proposed selection                                                                  
06                 (1)  includes land for which, at the time of its selection under this                                   
07       section,                                                                                                          
08                      (A)  a municipality has made a selection under AS 29.65 unless                                     
09            the land selection is, at a later date, rejected by the commissioner of natural                              
10            resources or relinquished by the municipality; or                                                            
11                      (B)  the commissioner reasonably believes the land may be                                          
12            selected by a municipality under AS 29.65, but the commissioner may not                                      
13            withhold under this subparagraph the conveyance of title to land selected by                                 
14            the fund longer than three years after the date of the municipality's                                        
15            incorporation; or                                                                                            
16                 (2)  includes land that, at the time of its selection under this section,                               
17                      (A)  is subject to an oil and gas exploration license; or                                          
18                      (B)  the commissioner reasonably believes will be made part of                                     
19            an oil and gas exploration license issued under AS 38.05.131 - 38.05.134; the                                
20            commissioner may not refuse to convey title to land to the fund under this                                   
21            subparagraph for more than three years after its first selection by the fund.                                
22            (f)  When land is conveyed to the fund under this section, the fund takes the                                
23       land subject to any possessory interest held by another person on the effective date of                           
24       the conveyance.                                                                                                   
25            (g)  In conveying land to the fund under this section, the commissioner of                                   
26       natural resources shall give public notice that substantially complies with notice                                
27       requirements under AS 38.05.945(b) and (c) and provide for access under                                           
28       AS 38.05.127, but other provisions of AS 38.04 and AS 38.05 do not apply.                                         
29            (h)  Land transferred to the fund under this section                                                         
30                 (1)  is subject to                                                                                      
31                      (A)  sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat.                                  
01            339);                                                                                                        
02                      (B)  art. IX of the state constitution;                                                            
03                      (C)  AS 19.10.010;                                                                                 
04                      (D)  the payment requirements to the Alaska permanent fund                                         
05            under AS 37.13.010(a) and (b); and                                                                           
06                      (E)  the rights of the state under former 43 U.S.C. 932 (sec. 8,                                   
07            Act of July 26, 1866, 14 Stat. 253);                                                                         
08                 (2)  excludes any interest transferred to the state by quitclaim deed                                   
09       dated June 30, 1959, under authority of the Alaska Omnibus Act, P.L. 86-70, 73 Stat.                              
10       141;                                                                                                              
11                 (3)  based on a land selection filed by the fund on or after the effective                              
12       date of this section and until the day before the day that is the fifth anniversary of the                        
13       effective date of this section, is subject to reservation by the Department of Natural                            
14       Resources in perpetuity of all oil and gas that may be in or on the land, together with                           
15       the right to explore the land for oil and gas and to remove from the land all oil and gas                         
16       located in and on it.                                                                                             
17            (i)  The fund shall bear all costs of selection, platting, surveying, and, except as                         
18       provided in (k) of this section, conveyance of the land that it selects under this section                        
19       and, subject to appropriation, shall reimburse the Department of Natural Resources for                            
20       the reasonable costs incurred by that department relating to that selection, platting,                            
21       surveying, and conveyance.  As to land due the fund under (c) of this section,                                    
22                 (1)  if the land has been surveyed, the boundaries of the land conveyed                                 
23       must conform to the public land subdivisions established by the approved survey;                                  
24                 (2)  if the land is unsurveyed, the commissioner shall survey the                                       
25       exterior boundaries of the land to be conveyed without interior subdivision and shall                             
26       issue patent in terms of the exterior boundary survey within one year of the later of the                         
27       effective date of the approval by the legislature of the list containing the land or the                          
28       adjournment of the legislative session during which the list containing the land was                              
29       not disapproved by the legislature.                                                                               
30            (j)  For land due the fund under (c) of this section that is unsurveyed, pending                             
31       the survey of exterior boundaries and issuance of patent, the commissioner of natural                             
01       resources shall, within one year of the later of the effective date of the approval by the                        
02       legislature of the list containing the land or the adjournment of the legislative session                         
03       during which the list containing the land was not disapproved by the legislature,                                 
04       prepare and provide to the fund a document of interim conveyance for the land to be                               
05       conveyed.                                                                                                         
06            (k)  Except as provided in AS 37.14.880(2), management of land conveyed to                                   
07       the fund by patent or by a document of interim conveyance vests with the fund from                                
08       the date of recording of the patent or document of interim conveyance.  The                                       
09       Department of Natural Resources shall pay the cost of recording all patents and                                   
10       documents of interim conveyance.                                                                                  
11            (l)  The board may not make a land selection under this section after                                        
12       December 31, 2008.                                                                                                
13            Sec. 37.14.860.  Management and disposition of land.  (a)  The board shall,                                
14       by policy, establish procedures for mineral entry or location and mineral leasing on                              
15       land selections made under AS 37.14.850 that are substantially similar to mineral                                 
16       entry, location, and leasing procedures for state land under AS 38.05.185 - 38.05.275.                            
17            (b)  Notwithstanding other provisions of law, the board shall seek public                                    
18       comment on proposals for development, exchange, or sale of land selections made                                   
19       under AS 37.14.850.  The board shall adopt policies that provide that the fund shall                              
20       prepare an annual plan for management and disposition of fund land under this section                             
21       and shall, not less than 60 days before scheduled approval by the board of the plan,                              
22                 (1)  make copies of the plan available at all legislative information                                   
23       offices and at other locations as the board may designate;                                                        
24                 (2)  publish a notice in newspapers of general circulation in the state                                 
25       that provides the public with information on the locations where the plan is available                            
26       for public inspection;                                                                                            
27                 (3)  give notice to all legislators and to local governments with                                       
28       jurisdiction over the land affected by the proposal; and                                                          
29                 (4)  seek public comment on the annual plan before action by the board                                  
30       approving the plan.                                                                                               
31            Sec. 37.14.870.  Confidential records.  Notwithstanding AS 40.25.110 -                                     
01       40.25.125 and 40.25.220, on a determination that it is in the best interest of the fund or                        
02       on the request of the person who has provided the information, the board may keep the                             
03       following confidential:                                                                                           
04                 (1)  the name of a person applying for the sale, lease, or other disposal                               
05       of land or an interest in land conveyed to the fund under AS 37.14.850;                                           
06                 (2)  before the announced time of opening of an offer to purchase,                                      
07       lease, or obtain a disposal of land conveyed to the fund under AS 37.14.850, the                                  
08       names of the participants and the terms of their offers;                                                          
09                 (3)  all geological, geophysical, engineering, architectural, sales,                                    
10       appraisal, gross receipts, net receipts, or other financial information relating to land or                       
11       an interest in land conveyed to the fund under AS 37.14.850 and considered for or                                 
12       offered for disposal or currently subject to a contract;                                                          
13                 (4)  cost data and financial information submitted by an applicant in                                   
14       support of applications for bonds, leases, or other information in offerings and                                  
15       ongoing operations relating to management of land conveyed to the fund under                                      
16       AS 37.14.850;                                                                                                     
17                 (5)  applications for rights-of-way or easements across land conveyed                                   
18       to the fund under AS 37.14.850; and                                                                               
19                 (6)  requests for information about or applications by public agencies                                  
20       for land conveyed to the fund under AS 37.14.850 that is being considered for use for                             
21       a public purpose.                                                                                                 
22            Sec. 37.14.880.  Land subject to encumbrances and trespasses.  Except as                                   
23       provided in AS 37.14.850(b), for the land selected by the board under AS 37.14.850                                
24       that is subject to a lease, license, contract, prospecting site, claim, sale, permit, right-                      
25       of-way, or easement, or to trespass,                                                                              
26                 (1)  if the lease, license, contract, prospecting site, claim, sale, permit,                            
27       right-of-way, easement, or trespass                                                                               
28                      (A)  existed before the selection of the land by the board, the                                    
29            general fund or permanent fund, as appropriate, the state is entitled to receive                             
30            the income obtained from the lease, license, contract, prospecting site, claim,                              
31            sale, permit, right-of-way, easement, or trespass for the duration of the term of                            
01            the lease, license, contract, prospecting site, claim, sale, permit, right-of-way,                           
02            or easement, or of the  trespass, and during any renewal of it that is authorized                            
03            by the lease, license, contract, prospecting site, claim, sale permit, right-of-                             
04            way, or easement, or by law;                                                                                 
05                      (B)  did not exist before the selection of the land by the board,                                  
06                           (i)  the general fund or permanent fund, as appropriate,                                      
07                 is entitled to receive the income obtained from the lease, license,                                     
08                 contract, prospecting site, claim, sale, permit, right-of-way, or                                       
09                 easement, or from trespass before the recording of the conveyance to                                    
10                 the fund by the issuance of a document of interim conveyance or a                                       
11                 patent;                                                                                                 
12                           (ii)  the fund is entitled to receive the income obtained                                     
13                 from the lease, license, contract, prospecting site, claim, sale, permit,                               
14                 right-of-way, or easement, or from trespass on the date of and after the                                
15                 recording of the conveyance to the fund by the issuance of a document                                   
16                 of interim conveyance or a patent;                                                                      
17                 (2)  the responsibility for the management of the land vests with the                                   
18       fund only upon conclusion of the term of the lease, license, contract, prospecting site,                          
19       claim, sale, permit, right-of-way, or easement, and any renewal authorized by the                                 
20       lease, license, contract, prospecting site, claim, sale, permit, right-of-way, or easement,                       
21       or by law, if the lease, license, contract, prospecting site, claim, sale, permit, right-of-                      
22       way, or easement existed before the land's being selected by the board; if the lease,                             
23       license, contract, prospecting site, claim, sale, permit, right-of-way, or easement was                           
24       entered into after selection, then the responsibility for management vests with the fund                          
25       on the date of recording of the conveyance of the land to the fund by a document of                               
26       interim conveyance or patent.                                                                                   
27            Sec. 37.14.890.  Customary and traditional uses to be continued.  When                                     
28       land selected by the fund under AS 37.14.850 has been conveyed to it, before                                      
29       conveying or disposing of an interest in land to a third party, the fund shall manage the                         
30       land in a manner that permits customary and traditional uses of the resources of that                             
31       land to the maximum extent practicable.                                                                           
01            Sec. 37.14.899.  Definitions.  In AS 37.14.800 - 37.14.899,                                                
02                 (1)  "board" means the Education Fund Board;                                                            
03                 (2)  "fund" means the education fund established in art. IX, sec. 18,                                   
04       Constitution of the State of Alaska.                                                                              
05    * Sec. 2.  AS 29.45.030(a) is amended to read:                                                                     
06            (a)  The following property is exempt from general taxation:                                                 
07                 (1)  municipal property, including property held by a public corporation                                
08       of a municipality, state property, property of the University of Alaska, property of the                      
09       education fund, or land that is in the trust established by the Alaska Mental Health                          
10       Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, except that                                                      
11                      (A)  a private leasehold, contract, or other interest in the                                       
12            property is taxable to the extent of the interest; however, an interest created by                           
13            a nonexclusive use agreement between the Alaska Industrial Development and                                   
14            Export Authority and a user of an integrated transportation and port facility                                
15            owned by the authority and initially placed in service before January 1, 1999,                               
16            is taxable only to the extent of, and for the value associated with, those specific                          
17            improvements used for lodging purposes;                                                                      
18                      (B)  notwithstanding any other provision of law, property                                          
19            acquired by an agency, corporation, or other entity of the state through                                     
20            foreclosure or deed in lieu of foreclosure and retained as an investment of a                                
21            state entity is taxable; this subparagraph does not apply to federal land granted                            
22            to the University of Alaska under AS 14.40.380 or 14.40.390, to other land                                   
23            granted to the university by the state to replace land that had been granted                                 
24            under AS 14.40.380 or 14.40.390, [OR] to land conveyed by the state to the                                   
25            university under AS 14.40.365, or to land conveyed by the state to the                                   
26            education fund under AS 37.14.850;                                                                       
27                      (C)  an ownership interest of a municipality in real property                                      
28            located outside the municipality acquired after December 31, 1990, is taxable                                
29            by another municipality; however, a borough may not tax an interest in real                                  
30            property located in the borough and owned by a city in that borough;                                         
31                 (2)  household furniture and personal effects of members of a                                           
01       household;                                                                                                        
02                 (3)  property used exclusively for nonprofit religious, charitable,                                     
03       cemetery, hospital, or educational purposes;                                                                      
04                 (4)  property of a nonbusiness organization composed entirely of                                        
05       persons with 90 days or more of active service in the armed forces of the United States                           
06       whose conditions of service and separation were other than dishonorable, or the                                   
07       property of an auxiliary of that organization;                                                                    
08                 (5)  money on deposit;                                                                                  
09                 (6)  the real property of certain residents of the state to the extent and                              
10       subject to the conditions provided in (e) of this section;                                                        
11                 (7)  real property or an interest in real property that is exempt from                                  
12       taxation under 43 U.S.C. 1620(d), as amended;                                                                     
13                 (8)  property of a political subdivision, agency, corporation, or other                                 
14       entity of the United States to the extent required by federal law; except that a private                          
15       leasehold, contract, or other interest in the property is taxable to the extent of that                           
16       interest;                                                                                                         
17                 (9)  natural resources in place including coal, ore bodies, mineral                                     
18       deposits, and other proven and unproven deposits of valuable materials laid down by                               
19       natural processes, unharvested aquatic plants and animals, and timber.                                            
20    * Sec. 3.  Section 3, ch. 117, SLA 2000, is repealed and reenacted to read:                                        
21            Sec. 3.  AS 29.45.030(a) is amended to read:                                                               
22            (a)  The following property is exempt from general taxation:                                                 
23                 (1)  municipal property, including property held by a public corporation                                
24       of a municipality, state property, property of the University of Alaska, property of the                          
25       education fund, or land that is in the trust established by the Alaska Mental Health                              
26       Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, except that                                                      
27                      (A)  a private leasehold, contract, or other interest in the                                       
28            property is taxable to the extent of the interest; [HOWEVER, AN INTEREST                                     
29            CREATED BY A NONEXCLUSIVE USE AGREEMENT BETWEEN THE                                                          
30            ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY                                                           
31            AND A USER OF AN INTEGRATED TRANSPORTATION AND PORT                                                          
01            FACILITY OWNED BY THE AUTHORITY AND INITIALLY PLACED IN                                                      
02            SERVICE BEFORE JANUARY 1, 1999, IS TAXABLE ONLY TO THE                                                       
03            EXTENT OF, AND FOR THE VALUE ASSOCIATED WITH, THOSE                                                          
04            SPECIFIC IMPROVEMENTS USED FOR LODGING PURPOSES;]                                                            
05                      (B)  notwithstanding any other provision of law, property                                          
06            acquired by an agency, corporation, or other entity of the state through                                     
07            foreclosure or deed in lieu of foreclosure and retained as an investment of a                                
08            state entity is taxable; this subparagraph does not apply to federal land granted                            
09            to the University of Alaska under AS 14.40.380 or 14.40.390, to other land                                   
10            granted to the university by the state to replace land that had been granted                                 
11            under AS 14.40.380 or 14.40.390, to land conveyed by the state to the                                        
12            university under AS 14.40.365, or to land conveyed by the state to the                                       
13            education fund under AS 37.14.850;                                                                           
14                      (C)  an ownership interest of a municipality in real property                                      
15            located outside the municipality acquired after December 31, 1990, is taxable                                
16            by another municipality; however, a borough may not tax an interest in real                                  
17            property located in the borough and owned by a city in that borough;                                         
18                 (2)  household furniture and personal effects of members of a                                           
19       household;                                                                                                        
20                 (3)  property used exclusively for nonprofit religious, charitable,                                     
21       cemetery, hospital, or educational purposes;                                                                      
22                 (4)  property of a nonbusiness organization composed entirely of                                        
23       persons with 90 days or more of active service in the armed forces of the United States                           
24       whose conditions of service and separation were other than dishonorable, or the                                   
25       property of an auxiliary of that organization;                                                                    
26                 (5)  money on deposit;                                                                                  
27                 (6)  the real property of certain residents of the state to the extent and                              
28       subject to the conditions provided in (e) of this section;                                                        
29                 (7)  real property or an interest in real property that is exempt from                                  
30       taxation under 43 U.S.C. 1620(d), as amended;                                                                     
31                 (8)  property of a political subdivision, agency, corporation, or other                                 
01       entity of the United States to the extent required by federal law; except that a private                          
02       leasehold, contract, or other interest in the property is taxable to the extent of that                           
03       interest;                                                                                                         
04                 (9)  natural resources in place including coal, ore bodies, mineral                                     
05       deposits, and other proven and unproven deposits of valuable materials laid down by                               
06       natural processes, unharvested aquatic plants and animals, and timber.                                            
07    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       CONDITIONAL EFFECT.  This Act takes effect only if the voters at the 2004 general                                 
10 election approve an amendment to the Constitution of the State of Alaska proposed by the                                
11 Twenty-Third Alaska State Legislature that creates an education fund for public education.                              
12    * Sec. 5.  If this Act takes effect, it takes effect on the effective date of an amendment to the                  
13 Constitution of the State of Alaska proposed by the Twenty-Third Alaska State Legislature                               
14 that creates an education fund for public education.