Legislature(1995 - 1996)
02/20/1995 01:35 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SCRA - 2/20/95
SB 16 INCREASE LAND GRANT TO UNIV. OF ALASKA
Number 246
SENATOR TORGERSON introduced SB 16 as the next order of business.
SENATOR STEVE FRANK, prime sponsor of SB 16, noted the same
legislation was passed by the Senate the previous session, but
failed to come to a vote on the House floor during the final hours
of that session.
The legislation would allow the University of Alaska to select one
million acres of unencumbered land from the State of Alaska. The
University previously received 112,000 acres of land, which is
small by comparison to most of the rest of the western public land
states. Some universities in states with much smaller state land
grants, such as New Mexico and Oklahoma, have received up to one
million acres.
SENATOR FRANK believes the legislature should follow through on the
intent of the Congressional Moral Act of 1862, which granted states
the right to receive public lands to support universities, by
increasing the grant to the University and to allow them to develop
the lands in a responsible manner and benefit from the revenues
that they can generate. With the decline in the state's general
fund revenues, providing the University a greater land grant and an
opportunity for more revenues from land development would let the
University continue to meet its mission with a more diversified
financial system of support, he stated.
SENATOR FRANK stated the legislation contains adequate protection
for the state, and he urged its favorable consideration by the
committee.
Number 290
SENATOR KELLY asked if there are differences between the bill
passed by the Senate last year and this version. SENATOR FRANK
said the final version passed by the Senate last year decreased the
amount of the land grant from one million acres to 500,000 acres.
SB 16 increases it back to the original one million acres. SENATOR
R. PHILLIPS commented that he is more favorable to the 500,000 acre
figure.
Number 332
SENATOR ZHAROFF noted that on a map of Prince of Wales Island, he
observed that the community of Whale Pass has a couple of
subdivisions and University land is identified within those
subdivisions. He asked how the University acquired parts of those
subdivisions. SENATOR FRANK answered that those lands are probably
part of the existing 112,000 acres granted.
Number 350
WENDY REDMAN, Vice President, University Relations, University of
Alaska, speaking to other differences between last year's
legislation and SB 16, directed attention to page 8, line 9,
subsection (n). It provides that if the University is not actively
managing the land to provide income within a 10-year period of
time, DNR can recover title to those lands.
The other change was made in Section 5, on page 8. It requires the
University to establish substantially similar regulations for
mineral entry, location, and leasing procedures.
Number 400
SENATOR R. PHILLIPS questioned a possible conflict between
subsection (n) and Section 5. SENATOR FRANK acknowledged that
there is and said they will try to find a better way to address it.
He said the whole message to the University is to go ahead and
develop these lands, but it needs to have language that is
workable. WENDY REDMAN added that concern has been expressed on
the possibility of the University flooding the market with land,
and she agreed that this provision needs to be worked on. She has
had discussions with DNR on Section 5 and they have given her some
ideas of language changes that would be better for the University
and also address the major concern of the mining industry.
Number 415
SENATOR HOFFMAN asked if land taken back will be deducted
permanently from the amount of land conveyed to the University, or
will the University be allowed to select lands in another area.
WENDY REDMAN responded it is her understanding is that there is no
reselection provision so it is permanently lost.
Number 430
SENATOR ZHAROFF asked, in the case of a legal dispute over the
land, if the University or the state handles the matter. SENATOR
FRANK answered that the state has the final word and that there is
no opportunity for the University to take the state to court.
Number 445
SENATOR HOFFMAN asked what the rationale was for reducing the
figure to 500,000 acres in last year's legislation. SENATOR FRANK
answered that he didn't think there was a specific rationale.
Number 460
SENATOR KELLY inquired who takes precedence over the University in
terms of selecting land. SENATOR FRANK replied that full authority
is given to the commissioner of DNR to make those million acres
subordinate to any other state interest.
Number 490
SENATOR TORGERSON directed attention to some proposed amendments to
SB 16 and SENATOR FRANK offered the following overview:
Page 4, line 4: Clarifies that the University lands would be
considered public lands as they are already in law.
Page 7, line 5: Clarifies that earnings from oil and gas
development are subject to the permanent fund royalties and bonuses
language.
Page 7, line 29 and page 8, line 1: Decreases the time frame to
make it a more efficient process for the conveyance of the lands.
Page 8, lines 5 & 6: Clarifies that the state will bear the cost
of recording all documents and deeds.
Page 9, line 28: Clarifies that after conveyance if they were to
sell the land or put it into mineral production, etc., that the
requirement for customary and traditional uses doesn't follow with
it after conveyance.
Page 9, line 31: Clarifies that until any conveyance is made the
property can continue to be used for customary and traditional uses
and provides tort immunity to the University except in cases of
gross negligence or reckless or intentional misconduct, etc.
Page 10, lines 7-12 and line 28: Clarifying language.
Number 546
SENATOR KELLY referred to the amendment to page 7, line 28, and
asked if it means that the University will be selling some of the
land. WENDY REDMAN answered that it is there hope that they would
be eventually selling the land to make money for the University.
She added that in the past they have improved and converted some of
their land into homesites and then sold it for tidy profits. She
also clarified that the land conveyed to the University is not
subject to taxation until such time as it is sold to private
ownership. SENATOR FRANK added that he believes it is the
University's intent to get into the actually selling of any this
land in a very small and limited fashion, and it is not designed to
be a major portion of their overall program.
TAPE 95-3, SIDE B
Number 001
SENATOR TORGERSON announced that the committee would take testimony
on SB 16 over the teleconference network.
FRED KLOUDA, testifying from Anchorage and representing the Alaska
Sport Fishing Association, stated that with the lack of state
control over fish and game resources, they are against conveying
land out of public ownership.
Number 035
CLIFF EAMES, testifying from Anchorage and representing the Alaska
Center for the Environment, voiced their opposition to SB 16 and
the transfer of these lands out of general public ownership. They
oppose the increased fragmentation of Alaska's land ownership and
the severely reduced opportunities for the citizens of Alaska to
determine how Alaska's public lands should be managed. He cited
numerous problems connected to the transfer of lands to the Mental
Health Lands Trust.
Number 090
RICK SMERIGLIO, a resident of Moose Pass, testified in opposition
to SB 16. He said Moose Pass is a small unincorporated community
on the road system that has traditional or recreational use of
their private and public lands, as well as a proud tradition of
public input. He noted that because of ANCSA (Alaska Native Claims
Settlement Act), municipal entitlement, the Mental Health Trust
settlement, a lot of the good land in their area has been selected
already, and he fears that with another conveyance to the
University, Moose Pass will get targeted again.
Number 150
RON SWANSON, Director, Division of Lands, Department of Natural
Resources, stated he was present in Anchorage to answer questions.
Number 155
BRIAN ROGERS, formerly Vice President for Finance at the University
of Alaska, addressed issues raised earlier in the meeting.
In response to Senator Zharoff's inquiry concerning University land
on Prince of Wales Island, he said those subdivisions were received
in 1982 as a result of settlement of claims by the University when
the state took land away from the University under the Municipal
Entitlement Act.
Responding to Senator Hoffman's inquiry for examples of some of the
University's income from lands, Mr. Rogers related that last year
the University earned $10 million, against expenses of around
$800,000 for land management. The major activities have been
timber, subdivision lands, oil and gas, and commercial leases. He
noted the Board of Regents' policy on land favors the University
retaining ownership and leasing the land in most circumstances.
However, he added that it is not appropriate for subdivisions and
for certain commercial development and it is in the University's
best interest to sell those lands.
In response to Senator Kelly's question on what takes precedence
over the University in selecting land, Mr. Rogers said any land
that has already been identified by the Legislature for parks,
refuges or is otherwise designated by the Legislature is not
available to the University for selection under SB 16.
Number 230
CHARITY GREEN, a student at the Kenai Peninsula College, pointed
out that at the Board of Regents' most recent meeting, they voted
to eliminate the consolidation cap and to increase tuition, which,
she said, will have a drastic impact on all of the University's
campuses. She added that with the budget shortfalls, the students
recognize that they have to do their part. She voiced support for
SB 16 and urged its passage which, she said, will show the
legislators are still concerned about the university's problems and
the students' needs.
Number 270
JERRY MCCUNE, President, United Fishermen of Alaska, stated support
for SB 16, but he does have concerns with certain areas of it, such
as the amount of acreage to be conveyed. He suggested extending
the time frame for the Board of Regents to adopt policies for an
annual plan for management and disposition of university land, as
well as limiting where the University might be able to sell the
land.
Number 300
SENATOR TORGERSON closed the public hearing on SB 16, bringing it
back before the committee.
Number 302
SENATOR KELLY moved the following amendments be adopted into a
committee substitute. Hearing no objection, it was so ordered.
Page 4, line 4
Following last sentence insert: "Provided, however, that land
conveyed to the University under AS 14.40.365 shall be treated as
other public land and shall be managed in accordance with AS.
14.40.366 and regulations promulgated by the University."
Page 7, line 5
Following the semicolon (;) insert "and AS 37.13.010;"
Page 7, line 29
Delete the period (.) and insert "within one year of request by the
University."
Page 8, line 1
Following "resources shall" insert "within one year of request by
the University"
Page 8, line 5
Delete "execution" and insert "recording"
Page 8, line 6
Following the period (.) insert "The State shall bear the cost of
recording all documents and deeds."
Page 9, line 28
Following "University of Alaska shall" insert ",prior to disposal
or conveyance to third parties,"
Page 9, line 31
Add new section to read as follows:
*Sec.___. AS 14.40 is amended by adding a new section to read:
Sec. 14.40.371. TORT IMMUNITY FOR CLAIMS ARISING ON
UNIVERSITY LAND NO IMPROVED BY THE UNIVERSITY. The University of
Alaska is not liable in tort, except for an affirmative act that
constitutes gross negligence or reckless or intentional misconduct,
for property damage or for injury to or death of a person who
enters or remains on land owned by the University of Alaska;
provided that the above exemption from liability does not apply to
claims which arise on that portion of those lands which have been
improved and actively maintained by the University of Alaska after
its receipt of tide thereto.
Page 10, lines 7-12
Delete
Page 10, line 28
Delete "or"
Following "state property," insert "or property owned by the
University of Alaska"
Number 315
SENATOR KELLY moved that on page 9, line 3, delete "30" and insert
"60" in its place. Hearing no objection, the amendment was
adopted.
SENATOR KELLY moved that on page 4, line 8, change "one million
acres" to "two million acres." After brief discussion, he withdrew
the amendment.
Number 347
SENATOR PHILLIPS moved that on page 4, line 8, change "one million
acres" to "500,000 acres. After brief discussion, he withdrew the
amendment.
SENATOR ZHAROFF voiced his concern of the University selecting land
within an area that has not incorporated as a municipality, but
when they do incorporate as a municipality, under their
entitlement, they should be able to have the opportunity to select
land within that area if the University has not done anything with
the land. He said he would possibly offer such an amendment in the
Finance Committee.
Number 430
SENATOR PHILLIPS moved that CSSB 16(CRA) be passed out of committee
with individual recommendations. Hearing no objection, it was so
ordered.
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