Legislature(1995 - 1996)

1995-06-26 Senate Journal

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1995-06-26                     Senate Journal                      Page 1964
SB 16                                                                        
Message of June 16 was received, stating:                                      
                                                                               
Dear President Pearce:                                                         

1995-06-26                     Senate Journal                      Page 1965
SB 16                                                                        
Under the authority of art. 11, sec. 15 of the Alaska Constitution, I          
have vetoed the following bill:                                                
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO.                                           
16(FIN)                                                                        
"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."                                           
                                                                               
The bill provides for the selection and transfer of 350,000 acres of           
state land to the University of Alaska.  Ever since Statehood, the             
University of Alaska has sought to obtain more land for their                  
management to raise revenue to support the university system. I                
would  support the land coming from the federal government.  Like              
school and mental health trusts, the University obtained "in place"            
territorial grants of 111,211 acres from the federal government.               
After Statehood, a bill passed the legislature that would have                 
conveyed additional land to them.  That legislation was vetoed by              
Governor Egan as not being in the best interest of the state because           
"the administrative procedures of the proposed act would complicate            
the work of the division of  lands and would be both inefficient and           
confusing."  Senate Bill 16 creates this same dilemma.                         
                                                                               
In the efforts to settle the Mental Health case, the state went through        
countless versions, including at least five legislative attempts, of           
what was equitable for the mental health trust and what land                   
conveyances industry and public interest groups could support.  At             
the end, the state still came up short of the original 1,000,000-acre          
goal originally established by the courts.  To try again, one year             
later to establish another trust land account, especially with a very          
complicated "process" bill like SB 16, would be extremely difficult            
and is questionable public policy.                                             
                                                                               
This legislation does not adequately protect municipalities that still         
need to select land to fulfill their entitlements.  Over 1.3 million         
acres of state land are committed to municipalities.  Of this, only            
650,000 acres have been conveyed to municipalities, 310,000 acres              
are selected, and an additional 350,000 remain to be selected.  Under        

1995-06-26                     Senate Journal                      Page 1966
SB 16                                                                        
this legislation, the university can file selections before municipalities     
complete their selections.  This problem is further compounded                 
because some of the land already selected by municipalities will be            
rejected  (including  Original  Mental Health Trust lands.)  Boroughs          
that could be significantly negatively impacted by university                  
selections are the Kenai Peninsula Borough, Lake and Peninsula                 
Borough, Northwest Arctic Borough, and Denali Borough.  In                     
addition, this bill will further reduce opportunities for future               
boroughs to obtain land.                                                       
                                                                               
As a result of these two processes (mental health and municipal), the          
state has found that there is minimal suitable land available that can         
generate short term revenues.  By further splitting up what is                 
available, it would add to overhead management costs and create                
further conflicts between land owners and users.  If there was only            
one land owner, however, management would be by one entity and                 
the money would be put in the general fund for  allocation by the              
legislature to appropriate programs, including the university.                 
                                                                               
This bill would convey both surface and subsurface land, including             
mineral, oil, and gas lands which the public strongly believes should          
belong to all Alaskans.  Additional conveyances of the state's oil             
and gas interests to third parties will further fragment ownership in          
oil and gas prospective areas and thus add to the frustration already          
experienced by the oil and gas industry in their efforts to acquire            
leases in Alaska.                                                              
                                                                               
The bill exempts the conveyance process from utilizing AS 38.04                
and 38.05 processes although it does require the department to make            
a "best interest finding."  Not following Title 38 will be very                
controversial and could lead to never-ending administrative and                
judicial appeals.  The bill is convoluted and unclear as to how                
several of the provisions would be implemented.                                
                                                                               
Finally, the land conveyed to the University, under SB 16, is to be            
considered private land.  This has major impacts.  For example, the            
rules for timber harvest and export are different for public versus            
private land.  Private land is not subject to sustained yield, and has         
smaller stream buffers.                                                        
                                                                               
                                                                               

1995-06-26                     Senate Journal                      Page 1967
SB 16                                                                        
For these reasons, I have vetoed SB 16.                                        
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor