00 HOUSE BILL NO. 469 01 "An Act relating to the University of Alaska and to assets of the University of 02 Alaska; authorizing the University of Alaska to select additional state public 03 domain land, designating that land as `university trust land,' and describing the 04 principles applicable to the land's management; and defining the net income from 05 the University of Alaska's endowment trust fund as `university receipts' subject 06 to prior legislative appropriation." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. FINDINGS AND PURPOSE. The legislature finds that 09 (1) as the beneficiary under the provisions of the Acts of August 30, 1890, and 10 March 4, 1907, designating the Alaska Agricultural College and School of Mines as 11 beneficiary, and of March 4, 1915, 38 Stat. 1214, transferring certain land for its location and 12 support, the University of Alaska is a land grant university; 13 (2) under the Acts of March 4, 1915, 38 Stat. 1214, and January 21, 1929, 45 14 Stat. 1091, the Congress of the United States granted to the Territory of Alaska certain federal 01 land to be held in trust for the benefit of the predecessor of the University of Alaska; 02 (3) the Territory was unable to receive most of the land conveyed by the Act 03 of March 4, 1915, before repeal of that Act by Sec. 6(k) of the Alaska Statehood Act (P.L. 04 85-508, 72 Stat. 339); 05 (4) the Congress of the United States granted the State of Alaska the right to 06 select 102,500,000 acres of federal land under Sec. 6(b) of the Alaska Statehood Act; 07 (5) the land selection rights embodied in the Alaska Statehood Act reflect in 08 part congressional recognition that the state would need the land to support its government and 09 programs, and the Congress assumed that the State of Alaska would in turn devote some of 10 the land or the income from it for the use and benefit of the University of Alaska; 11 (6) most land grant colleges in the western United States have obtained a larger 12 land grant from the federal government than the University of Alaska has received; 13 (7) an academically strong and financially secure state university system is a 14 cornerstone to the long-term development of a stable population and to a healthy, diverse 15 economy in the state; 16 (8) it is in the best interests of the state and the University of Alaska that the 17 university take ownership of a significant and substantial portfolio of income producing land 18 in order to provide income for the support of public higher education in the state; and 19 (9) renewable resources should be managed on a sustained yield basis, taking 20 into account the total land grant. 21 * Sec. 2. LEGISLATIVE INTENT. It is the intent of the legislature that the University 22 of Alaska encourage the development of in-state value-added industries to the maximum extent 23 feasible when developing land conveyed under AS 14.40.365. 24 * Sec. 3. AS 14.40.170(a) is amended to read: 25 (a) The Board of Regents shall 26 (1) appoint the president of the university by a majority vote of the 27 whole board, and the president may attend meetings of the board; 28 (2) fix the compensation of the president of the university, all heads of 29 departments, professors, teachers, instructors, and other officers; 30 (3) confer such appropriate degrees as it may determine and prescribe; 31 (4) have the care, control, and management of 01 (A) all the real and personal property of the university; and 02 (B) land 03 (i) conveyed to the Board of Regents by the 04 commissioner of natural resources in the settlement of the claim of the 05 University of Alaska to land granted to the state in accordance with the 06 Act of March 4, 1915 (38 Stat. 1214), as amended, and in accordance 07 with the Act of January 21, 1929 (45 Stat. 1091), as amended; and 08 (ii) selected by the University of Alaska and conveyed 09 to it by the commissioner of natural resources under AS 14.40.365, 10 except as provided in AS 14.40.368(a)(2); 11 (5) keep a correct and easily understood record of the minutes of every 12 meeting and all acts done by it in pursuance of its duties; 13 (6) under procedures to be established by the commissioner of 14 administration, and in accordance with existing procedures for other state agencies, 15 have the care, control, and management of all money of the university and keep a 16 complete record of all money received and disbursed; 17 (7) adopt reasonable rules for the prudent trust management and the 18 long-term financial benefit to the university of the land of the university; 19 (8) provide public notice of sales, leases, exchanges, and transfers of 20 the land of the university or of interests in land of the university; 21 (9) report each year within the first 10 days of the convening of a 22 regular session of the legislature on the expenditures made during the preceding fiscal 23 year from the funds of the University of Alaska that are derived from sales, leases, 24 exchanges, or transfers of the land of the university or of interests in land of the 25 university 26 (A) that were conveyed to the University of Alaska in 27 settlement of the claim of the University of Alaska to land granted to the state 28 in accordance with the Act of March 4, 1915 (38 Stat. 1214), as amended, and 29 in accordance with the Act of January 21, 1929 (45 Stat. 1091), as amended; 30 and 31 (B) that were selected by and conveyed to the University of 01 Alaska under AS 14.40.365. 02 * Sec. 4. AS 14.40.190 is amended to read: 03 Sec. 14.40.190. REPORT. (a) The Board of Regents shall prepare a written 04 report at the beginning of each first regular session of the legislature of 05 (1) the condition of [THE] university property; 06 (2) [, OF] all receipts and expenditures, including the administration 07 and disposition of appropriated and restricted funds; 08 (3) the management of university trust land under 09 AS 14.40.366(a)(1) and (2); and 10 (4) [, AND OF] the educational and other work performed during the 11 preceding two fiscal years. 12 (b) The board shall notify the legislature that the report is available. 13 * Sec. 5. AS 14.40.280 is amended to read: 14 Sec. 14.40.280. ENDOWMENTS AND DONATIONS. All monetary gifts, 15 bequests, or endowments that are made to the University of Alaska for the purpose of 16 the separate trust fund created under AS 14.40.400 shall be held by the university. 17 The university [TRANSFERRED TO THE DEPARTMENT OF REVENUE. THE 18 DEPARTMENT OF REVENUE] shall manage that money in accordance with 19 AS 14.40.400. Title to and control or possession of land, personal property, and all 20 money [OTHER THAN] that [TRANSFERRED TO THE DEPARTMENT OF 21 REVENUE, WHICH] is devised, bequeathed, or given to the university for the 22 purpose of the endowment trust fund established by AS 14.40.400(a) shall be taken 23 by the university in its corporate capacity acting by and through the regents or an 24 authorized agent, and shall be entered in the perpetual inventory of the university. 25 * Sec. 6. AS 14.40.291 is amended to read: 26 Sec. 14.40.291. LAND OF THE UNIVERSITY OF ALASKA [NOT PUBLIC 27 DOMAIN] LAND SALE CONTRACTS; CONFIDENTIAL INFORMATION. (a) 28 Notwithstanding any other provision of law, university-grant land, state replacement 29 land that becomes university-grant land on conveyance to the university, land selected 30 by and conveyed to the University of Alaska under AS 14.40.365, and any other 31 land owned by the University of Alaska is not and may not be treated as state public 01 domain land. 02 (b) Land conveyed to the University of Alaska under AS 14.40.365 is 03 designated as university trust land. 04 (c) Title to or interest in [TO] land described in (a) of this section may not 05 be acquired by adverse possession, prescription, or in any other manner except by 06 conveyance from the university. 07 (d) The land described in (a) of this section is subject to condemnation for 08 public purpose in accordance with law. 09 * Sec. 7. AS 14.40.291 is amended by adding new subsections to read: 10 (e) If a contract for a sale of land of the university is breached, the president 11 of the university or the president's designee, in addition to other remedies available 12 under the law, may issue a decision to foreclose and terminate the contract at any time 13 31 days after delivering by certified mail a written notice of the breach to the address 14 of record of the purchaser. The purchaser may cure a breach caused by the failure to 15 make payments required by the contract within 30 days after the notice of the breach 16 has been received by the purchaser by payment of the sum in default together with the 17 larger of a fee of $50 or five percent of the sum in default. If there are material facts 18 in dispute between the university and the purchaser, the purchaser may submit a 19 written request to the president or the president's designee for the review of the facts 20 within 30 days after the notice of the breach has been received. 21 (f) On a determination that there has been a breach of the contract based on 22 the administrative record, the president of the university or the president's designee 23 shall issue a decision foreclosing the interest of the purchaser and terminating the 24 contract. The obligation to make payments under the contract continues through the 25 date of the decision to foreclose. 26 (g) The president of the university or the president's designee shall deliver the 27 decision to foreclose and terminate, either by personal delivery to the purchaser or by 28 certified mail, return receipt requested, to the address of record of the purchaser. If 29 the breach is a failure to make payments required by the contract, the decision must 30 include a notice to the purchaser that, if within 30 days the purchaser pays to the 31 university the full amount of the unpaid contract price, including all accrued interest 01 and any fees assessed under (e) of this section, the university shall issue to the 02 purchaser a deed to the land. If full payment is not made within 30 days or the breach 03 is for other than failure to make payment, the decision forecloses and terminates all 04 legal and equitable rights the purchaser has in the land. 05 (h) Notwithstanding AS 09.25.100 - 09.25.220, on a determination that it is 06 in the best interest of the university or on the request of the person who has provided 07 the information, the president may keep the following confidential: 08 (1) the names of a person applying for the sale, lease, or other disposal 09 of university land or an interest in university land; 10 (2) before the announced time of opening of an offer to purchase, lease, 11 or obtain a disposal of university land, the names of the participants and the terms of 12 their offers; 13 (3) all geological, geophysical, engineering, architectural, sales, 14 appraisal, gross receipts, net receipts, or other financial information relating to 15 university land or an interest in university land considered for or offered for disposal 16 or currently subject to a contract; 17 (4) cost data and financial information submitted by an applicant in 18 support of applications for bonds, leases, or other information in offerings and ongoing 19 operations relating to management of university land; 20 (5) applications for rights-of-way or easements across university land; 21 and 22 (6) requests for information about or applications by public agencies 23 for university land that is being considered for use for a public purpose. 24 * Sec. 8. AS 14.40 is amended by adding a new section to read: 25 Sec. 14.40.365. SELECTION AND CONVEYANCE OF STATE LAND TO 26 THE UNIVERSITY OF ALASKA. (a) For the purposes of providing support to the 27 state's public higher education system and for the purpose of generating responsible 28 and appropriate development of the state's land and resources, the University of Alaska 29 is authorized to receive the conveyance of 500,000 acres of land that, on the effective 30 date of this section, is owned by the state, or has been tentatively approved or selected 31 by the state under the Alaska Statehood Act. 01 (b) For purposes of making the selection and conveyance of state land to the 02 university under (a) of this section, the director of the division of land, Department of 03 Natural Resources, and the director of the University of Alaska's land management 04 office shall compile and maintain and may revise a list of the land to be conveyed to 05 the university under this section. The list shall be maintained at the Anchorage office 06 of the director of the division of land. The director of the division of land and the 07 director of the university's land management office shall periodically jointly submit 08 to the legislature, within 30 days of the beginning of a regular legislative session, a list 09 of land proposed to be conveyed by the state to the University of Alaska under this 10 section. Each list must contain not less than 25,000 acres of land, or the remaining 11 entitlement under (a) of this section, whichever is less. The legislature may by law 12 approve or disapprove the list and must approve or disapprove the list within 60 days 13 of its submission. A list submitted shall be deemed approved for conveyance to the 14 University of Alaska if the legislature neither approves nor disapproves the list during 15 the period of 60 days after the date on which the list was submitted. 16 (c) Notwithstanding any other provision of law, on land selected by but not 17 yet patented to the University of Alaska or for which a document of interim 18 conveyance has not been issued to the University of Alaska under this section, 19 (1) the state is authorized to enter into contracts and grant leases, 20 licenses, claims, prospecting sites, sales, permits, rights-of-way, or easements, and any 21 interim conveyance or patent shall be subject to the contract, lease, license, claim, 22 prospecting site, sale, permit, right-of-way, or easement, except that the authority 23 granted the state by this subsection 24 (A) is the authority that the state otherwise would have had 25 under existing laws and regulations had the land not been selected by the 26 University of Alaska; and 27 (B) may be exercised only if the University of Alaska has 28 concurred before the action is taken by the state; 29 (2) until the land has been conveyed by patent or by a document of 30 interim conveyance, 90 percent of the proceeds derived from contracts, leases, licenses, 31 claims, prospecting sites, sales, permits, rights-of-way, or easements, or from 01 trespasses, originating after the date of selection by the University of Alaska shall be 02 held by the state; upon the issuance of a document of interim conveyance or a patent, 03 the state shall pay to the University of Alaska the proceeds held by the state under this 04 paragraph, and subsequent to the issuance of a document of interim conveyance or a 05 patent, the University of Alaska shall receive all of the proceeds derived from the 06 contracts, leases, licenses, claims, prospecting sites, sales, permits, rights-of-way, or 07 easements, or from trespasses; 08 (3) responsibility for management of contracts, leases, licenses, claims, 09 prospecting sites, sales, permits, rights-of-way, or easements, vests with the University 10 of Alaska upon issuance of a patent or a document of interim conveyance. 11 (d) When land is conveyed to the University of Alaska under this section, it 12 shall be conveyed in fee simple. The state shall convey to the university any tideland 13 or submerged land adjacent to the land conveyed under this section. The University 14 of Alaska takes the land subject to any possessory interest held by another person on 15 the effective date of the conveyance. Except as provided in AS 14.40.368(a)(1), the 16 University of Alaska is entitled to receive the consideration due under that possessory 17 interest for the duration of the possessory interest. 18 (e) In conveying land to the University of Alaska under this section, the 19 commissioner of natural resources shall give public notice under AS 38.05.945(b) and 20 (c) and provide for access under AS 38.05.127, but other provisions of AS 38.04 and 21 AS 38.05 do not apply. 22 (f) Land transferred or conveyed to the University of Alaska under this section 23 (1) is subject to 24 (A) Sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 25 339); 26 (B) art. IX of the state constitution; 27 (C) AS 19.10.010; 28 (D) payment to the Alaska permanent fund of the amounts 29 required by AS 37.13.010(a) and (b); and 30 (E) the rights of the state under former 43 U.S.C. 932 (sec. 8, 31 Act of July 26, 1866, 14 Stat. 253); 01 (2) excludes any interest transferred to the state by quit claim deed 02 dated June 30, 1959, under authority of the Alaska Omnibus Act, P.L. 86-70, 73 Stat. 03 141. 04 (g) The University of Alaska shall bear all costs of selection, platting, 05 surveying, and, except for a cost specified in (i) of this section, conveyance of the land 06 that it selects under this section and, subject to appropriation, shall reimburse the 07 Department of Natural Resources for the reasonable costs incurred by that department 08 relating to that selection, platting, surveying, and conveyance. Under this subsection, 09 (1) if the land has been surveyed, 10 (A) the boundaries of the land conveyed must conform to the 11 public land subdivisions established by the approved survey; and 12 (B) the commissioner shall issue a patent to the land within one 13 year of receiving a request for the land's conveyance from the university; 14 (2) if the land is unsurveyed, the commissioner shall 15 (A) survey the exterior boundaries of the land to be conveyed 16 without interior subdivision; and 17 (B) issue a patent to the land in terms of the exterior boundary 18 survey within one year of receiving a request for the land's conveyance by the 19 university. 20 (h) For land due the University of Alaska under this section that is unsurveyed, 21 pending the survey of exterior boundaries and issuance of patent, the commissioner of 22 natural resources shall, within one year of request by the university, prepare and 23 provide to the University of Alaska a document of interim conveyance for the land to 24 be conveyed. 25 (i) Except as provided in AS 14.40.368(a)(2), management of land conveyed 26 to the University of Alaska by patent or by a document of interim conveyance vests 27 with the University of Alaska from the date of recording of the patent or document of 28 interim conveyance. The state shall pay the cost of recording all patents and 29 documents of interim conveyance. 30 (j) The University of Alaska may not make a land selection under this section 31 after December 31, 2011. 01 * Sec. 9. AS 14.40 is amended by adding new sections to read: 02 Sec. 14.40.366. MANAGEMENT AND DISPOSITION OF UNIVERSITY 03 TRUST LAND. (a) University trust land selected and conveyed under AS 14.40.365 04 shall be conveyed to the Board of Regents and held by the Board of Regents in trust 05 for the University of Alaska. The University of Alaska 06 (1) shall manage university trust land in accordance with applicable 07 trust management principles; 08 (2) shall manage university trust land under provisions of law 09 applicable to other university land; and 10 (3) may exchange other state land for university trust land under the 11 procedures set out in AS 38.50. 12 (b) The University of Alaska shall establish policies to provide for public 13 notice and comment on proposals for development, exchange, or sale of university trust 14 land. The Board of Regents shall adopt policies that provide that the university shall 15 every second year prepare a plan for management and disposition of university trust 16 land under this section and shall, not less than 60 days before scheduled approval by 17 the Board of Regents of the plan, 18 (1) make copies of the plan available at all legislative information 19 offices and at such other locations as the university may designate; 20 (2) publish a notice in newspapers of general circulation in the state 21 that provides the public with information on the locations where the plan is available 22 for public inspection; 23 (3) give notice to all legislators and to local governments with 24 jurisdiction over the land affected by the plan; and 25 (4) seek public comment on the plan prior to action by the Board of 26 Regents approving the plan. 27 Sec. 14.40.368. MANAGEMENT AND DISPOSITION OF INCOME FROM 28 EXISTING ENCUMBRANCES ON UNIVERSITY TRUST LAND. (a) For the land 29 selected by and conveyed to the University of Alaska under AS 14.40.365 that is, as 30 of the effective date of the conveyance, subject to a lease, license, contract, claim, 31 prospecting site, sale, permit, or right-of-way 01 (1) the state is entitled to receive 50 percent of the income obtained 02 from the lease, license, contract, claim, prospecting site, sale, permit, or right-of-way 03 for the duration of the term of the lease, contract, claim, prospecting site, sale, permit, 04 or right-of-way, and during any renewal of it that is authorized by the lease, license, 05 contract, claim, prospecting site, sale, permit, or right-of-way, or by law; 06 (2) the responsibility for the management of the land vests with the 07 University of Alaska only upon conclusion of the term of the lease, license, contract, 08 claim, prospecting site, sale, permit, or right-of-way, and any renewal of the lease, 09 license, contract, claim, prospecting site, sale, permit, or right-of-way that is authorized 10 by law. 11 (b) If the state and the university mutually agree that the responsibility for the 12 management of land may be transferred to the university at a date earlier than the date 13 described in (a)(2) of this section, then, notwithstanding (a)(1) of this section, the 14 university is entitled to receive all income described in (a)(1) of this section on or after 15 the effective date of the transfer of the management responsibility. 16 Sec. 14.40.369. CUSTOMARY AND TRADITIONAL USES TO BE 17 CONTINUED. (a) When land selected by the University of Alaska under 18 AS 14.40.365 has been conveyed to it, before conveying or disposing of an interest in 19 land to a third party, the University of Alaska shall manage the land in a manner that 20 permits customary and traditional uses of the resources of that land to the maximum 21 extent practicable. 22 (b) The provisions of (a) of this section do not apply to authorize the 23 commercial harvest of timber from the land conveyed to the university. 24 * Sec. 10. AS 14.40 is amended by adding a new section to read: 25 Sec. 14.40.375. TORT IMMUNITY FOR PERSONAL INJURIES, DEATH, 26 OR PROPERTY DAMAGE OCCURRING ON UNIVERSITY LAND. (a) 27 Notwithstanding AS 09.65.200 and except as provided in (b) of this section, the 28 University of Alaska is not liable in tort, except for an affirmative act that constitutes 29 gross negligence or reckless or intentional misconduct, for damages for the injury to 30 or death of a person, or for property damage to the property of a person, who enters 31 onto or remains on land owned by the University of Alaska. 01 (b) The provisions of (a) of this section do not apply to damages for injury to 02 or death of a person, or for property damage to the property of a person, that occurs 03 on land of the University of Alaska that, after receipt of title to the land by the 04 University of Alaska, has been improved and is actively maintained by the University 05 of Alaska. 06 * Sec. 11. AS 14.40.400(a) is amended to read: 07 (a) The University of Alaska [DEPARTMENT OF REVENUE] shall establish 08 a separate endowment trust fund in which all net income derived from the sale or lease 09 of the land granted under the Act of Congress approved January 21, 1929, and the 10 land selected by and conveyed to the University of Alaska under AS 14.40.365 that 11 under AS 14.40.291(b) is designated university trust land, and in which all 12 monetary gifts, bequests, or endowments made to the University of Alaska for the 13 purpose of the fund [,] shall be held in trust. 14 * Sec. 12. AS 14.40.400(b) is amended to read: 15 (b) The president of the University of Alaska [COMMISSIONER OF 16 REVENUE] is the fiduciary of the trust fund and shall account for and invest the fund 17 as set out for the commissioner of revenue in AS 37.14.110(c), 37.14.160, and 18 37.14.170, except that the president of the university [COMMISSIONER] shall report 19 the condition and investment performance of the fund to the Board of Regents and to 20 the legislature. 21 * Sec. 13. AS 14.40.491 is amended to read: 22 Sec. 14.40.491. DEFINITION OF UNIVERSITY RECEIPTS. In 23 AS 14.40.120 - 14.40.491, "university receipts" includes 24 (1) student fees, including tuition; 25 (2) receipts from university auxiliary services; 26 (3) recovery of indirect costs of university activities; 27 (4) the net income of the trust fund established in AS 14.40.400 and 28 receipts from sales and rentals of university property; 29 (5) federal receipts; 30 (6) gifts, grants, and contracts; and 31 (7) receipts from sales, rentals, and the provision of services of 01 educational activities. 02 * Sec. 14. AS 29.45.030(a) is amended to read: 03 (a) The following property is exempt from general taxation: 04 (1) municipal property, including property held by a public corporation 05 of a municipality, [OR] state property, or property of the University of Alaska, 06 except that 07 (A) a private leasehold, contract, or other interest in the 08 property is taxable to the extent of the interest; 09 (B) notwithstanding any other provision of law, property 10 acquired by an agency, corporation, or other entity of the state through 11 foreclosure or deed in lieu of foreclosure and retained as an investment of a 12 state entity is taxable; this subparagraph does not apply to federal land granted 13 to the University of Alaska under AS 14.40.380 or 14.40.390, [OR] to other 14 land granted to the university by the state to replace land that had been granted 15 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 16 University of Alaska under AS 14.40.365; 17 (C) an ownership interest of a municipality in real property 18 located outside the municipality acquired after December 31, 1990, is taxable 19 by another municipality; however, a borough may not tax an interest in real 20 property located in the borough and owned by a city in that borough; 21 (2) household furniture and personal effects of members of a 22 household; 23 (3) property used exclusively for nonprofit religious, charitable, 24 cemetery, hospital, or educational purposes; 25 (4) property of a nonbusiness organization composed entirely of persons 26 with 90 days or more of active service in the armed forces of the United States whose 27 conditions of service and separation were other than dishonorable, or the property of 28 an auxiliary of that organization; 29 (5) money on deposit; 30 (6) the real property of certain residents of the state to the extent and 31 subject to the conditions provided in (e) of this section; 01 (7) real property or an interest in real property that is exempt from 02 taxation under 43 U.S.C. 1620(d), as amended; 03 (8) property of a political subdivision, agency, corporation, or other 04 entity of the United States to the extent required by federal law; except that a private 05 leasehold, contract, or other interest in the property is taxable to the extent of that 06 interest; 07 (9) natural resources in place including coal, ore bodies, mineral 08 deposits, and other proven and unproven deposits of valuable materials laid down by 09 natural processes, unharvested aquatic plants and animals, and timber. 10 * Sec. 15. AS 36.30.850(b)(15) is amended to read: 11 (15) a contract that is a delegation, in whole or in part, of investment 12 powers held by the commissioner of revenue under [AS 14.40.400,] AS 14.42.200, 13 14.42.210, AS 18.56.095, AS 37.10.070, 37.10.071, or AS 37.14; 14 * Sec. 16. AS 14.40.400(e) is repealed. 15 * Sec. 17. UNIVERSITY OF ALASKA ENDOWMENT TRUST FUND: TRANSITION. 16 A contract, right, liability, or obligation in effect on the effective date of this Act remains in 17 effect notwithstanding the amendments to AS 14.40.280 or 14.40.400 made in secs. 5, 11, 18 12, and 16 of this Act. Assets and liabilities of the University of Alaska endowment trust 19 fund held by the Department of Revenue on the effective date of this Act shall be transferred 20 by the Department of Revenue to the University of Alaska to implement this Act. 21 * Sec. 18. APPLICABILITY OF LAND SALE CONTRACT REMEDY PROVISIONS. 22 AS 14.40.291(e) - (g), added by sec. 7 of this Act, apply to land sale contracts entered into 23 by the University of Alaska on or after the effective date of this Act.