03/27/1995 10:40 AM Senate FIN

                                                                               
  SENATE BILL NO. 16                                                           
                                                                               
       An  Act  relating  to  the  University  of  Alaska  and                 
       university land,  authorizing the University  of Alaska                 
       to  select additional  state  public  domain land,  and                 
       defining  net income  from  the University  of Alaska's                 
       endowment trust  fund as 'university  receipts' subject                 
       to prior legislative appropriation.                                     
                                                                               
  Co-chairman Halford  directed that SB  16 be brought  on for                 
  consideration.  Co-chairman Frank  referenced two amendments                 
  and explained that Senator Sharp  worked with the University                 
  to develop  an amendment  (amendment no. 2)  to address  his                 
  concerns.  Amendment no. 1 is a technical amendment deleting                 
  the word "displaying" at  page 10, line 8, and  replacing it                 
  with "disposing."  Co-chairman Frank than MOVED for adoption                 
  of CSSB 16 (CRA) as a working document.  No objection having                 
  been raised, IT WAS SO ORDERED.                                              
                                                                               
  Senator Sharp MOVED  for adoption of  amendment no. 2.   Co-                 
  chairman  Halford announced  that  there  was OBJECTION  for                 
  purposes  of an explanation.  Senator Sharp advised that the                 
  amendment  addresses  earlier concerns  by members  that the                 
  state not get  into a  "Catch 22" situation  similar to  the                 
  mental  health lands.   The committee  seeks to  ensure that                 
  entry would still be allowed under current Dept. of  Natural                 
  Resource  regulations for  filings,  leases, mining  claims,                 
  etc. on  lands nominated  for selection  by the  University.                 
  Proposed language allows  for that  under existing Dept.  of                 
  Natural Resource authority.  Provisions within amendment no.                 
  2  specify  that   90%  of  any  leases  or   proceeds  from                 
  transactions  that  occur   after  nomination,  during   the                 
  selection  process  by  the  University,  would be  held  in                 
  escrow.    If  the  land   is  indeed  transferred  to   the                 
  University,  the  funds  would also  be  transferred  to the                 
  University.   The 10% would  be withheld for  processing and                 
  Dept. of Natural Resource costs.  Co-chairman Halford called                 
  for objections or  questions concerning  the amendment.   No                 
  objection having been raised, amendment no. 2 was ADOPTED.                   
                                                                               
  Co-chairman Frank MOVED and requested unanimous consent  for                 
  adoption of technical  amendment no.  1, explaining that  it                 
  would  correct  a  typographical  error.    Senator  Zharoff                 
  inquired concerning the difference  between "displaying" and                 
  "disposing."  Co-chairman  Frank remarked that all  the land                 
  is on display.                                                               
                                                                               
  Senator Zharoff  referenced the section  entitled "CUSTOMARY                 
  AND TRADITIONAL USES  TO BE CONTINUED"  at page 10, lines  6                 
                                                                               
                                                                               
  through 11, and  asked is subsistence  and other uses  would                 
  continue.  Co-chairman Frank responded that they would occur                 
  to the extent it is compatible  with the use contemplated by                 
  the University.  That is  the intent and part of  the reason                 
  for tort  immunity provisions  in the  next  section of  the                 
  legislation.  Senator Zharoff voiced concern that much would                 
  depend upon disposal  of the land to  a third party.   As an                 
  example, he voiced  his hope  that a mining  lease or  other                 
  arrangement with the University would  continue to allow for                 
  customary and traditional uses.   He reiterated concern that                 
  disposal  to third-party,  private  ownership would  involve                 
  other restrictions.  Co-chairman Frank acknowledged that the                 
  issue depends on use  and the degree to which  use conflicts                 
  with people  using the  land for  customary and  traditional                 
  uses.   He voiced  his belief  that most of  the time  there                 
  would be no conflict, but he  acknowledged that there may be                 
  some.    It  is  difficult  to  lay  out  every  example  or                 
  circumstance and treat each differently in law.  That is why                 
  the intent is  to maintain customary and traditional uses to                 
  the maximum extent practicable.   Senator Zharoff asked that                 
  he be allowed to work with the sponsor of the legislation on                 
  a possible letter of intent.  Co-chairman Frank concurred.                   
                                                                               
  Co-chairman   Halford  called   for  further   questions  or                 
  objections to amendment  no. 1.   No  objection having  been                 
  raised, amendment no. 1 was ADOPTED.                                         
                                                                               
  Co-chairman Frank MOVED and requested  unanimous consent for                 
  passage of  CSSB 16  (Fin) with individual  recommendations.                 
  No objection having been raised, CSSB 16  (Fin) was REPORTED                 
  OUT of committee with the following fiscal notes:                            
                                                                               
       Dept. of Revenue                          0                             
       Dept. of Natural Resources (Land Dev.)   71.0                           
       Dept. of Natural Resources (Info.Res.)   24.0                           
       Dept. of Fish and Game                   34.0                           
       University                              100.0                           
                                                                               
  Co-chairman Frank and  Senators Rieger and Sharp  signed the                 
  committee  report  with  a "do  pass"  recommendation.   Co-                 
  chairman   Halford   and   Senator   Zharoff   signed    "no                 
  recommendation."  Senator Randy Phillips signed "Do not pass                 
  unless amended."