CSSB 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."
00CS FOR SENATE BILL NO. 16(FIN) 01 "An Act relating to the University of Alaska and university land, authorizing the 02 University of Alaska to select additional state public domain land, and defining 03 net income from the University of Alaska's endowment trust fund as 'university 04 receipts' subject to prior legislative appropriation." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. FINDINGS AND PURPOSE. The legislature finds that 07 (1) as the beneficiary under the provisions of the Acts of August 30, 1890, and 08 March 4, 1907, designating the Alaska Agricultural College and School of Mines as 09 beneficiary, and of March 4, 1915, 38 Stat. 1214, transferring certain land for its location and 10 support, the University of Alaska is a land grant university; 11 (2) under the Acts of March 4, 1915, 38 Stat. 1214, and January 21, 1929, 45 12 Stat. 1091, the Congress of the United States granted to the Territory of Alaska certain federal 13 land to be held in trust for the benefit of the predecessor of the University of Alaska; 14 (3) the Territory was unable to receive most of the land conveyed by the Act
01 of March 4, 1915, before repeal of that Act by Sec. 6(k) of the Alaska Statehood Act (P.L. 02 85-508, 72 Stat. 339); 03 (4) the Congress of the United States granted the State of Alaska the right to 04 select 102,500,000 acres of federal land under Sec. 6(b) of the Alaska Statehood Act; 05 (5) the land selection rights embodied in the Alaska Statehood Act reflect in 06 part congressional recognition that the state would need the land to support its government and 07 programs, and the Congress assumed that the State of Alaska would in turn devote some of 08 the land or the income from it for the use and benefit of the University of Alaska; 09 (6) most land grant colleges in the western United States have obtained a larger 10 land grant from the federal government than the University of Alaska has received; 11 (7) an academically strong and financially secure state university system is a 12 cornerstone to the long-term development of a stable population and to a healthy, diverse 13 economy in the state; and 14 (8) it is in the best interests of the state and the University of Alaska that the 15 university take ownership of a significant and substantial portfolio of income producing land 16 in order to provide income for the support of public higher education in the state. 17 * Sec. 2. AS 14.40.170(a) is amended to read: 18 (a) The Board of Regents shall 19 (1) appoint the president of the university by a majority vote of the 20 whole board, and the president may attend meetings of the board; 21 (2) fix the compensation of the president of the university, all heads of 22 departments, professors, teachers, instructors, and other officers; 23 (3) confer such appropriate degrees as it may determine and prescribe; 24 (4) have the care, control, and management of 25 (A) all the real and personal property of the university; and 26 (B) land 27 (i) conveyed to the Board of Regents by the 28 commissioner of natural resources in the settlement of the claim of the 29 University of Alaska to land granted to the state in accordance with the 30 Act of March 4, 1915 (38 Stat. 1214), as amended, and in accordance 31 with the Act of January 21, 1929 (45 Stat. 1091), as amended; and
01 (ii) selected by the University of Alaska and conveyed 02 to it by the commissioner of natural resources under AS 14.40.365, 03 except as provided in AS 14.40.368(2); 04 (5) keep a correct and easily understood record of the minutes of every 05 meeting and all acts done by it in pursuance of its duties; 06 (6) under procedures to be established by the commissioner of 07 administration, and in accordance with existing procedures for other state agencies, 08 have the care, control, and management of all money of the university and keep a 09 complete record of all money received and disbursed; 10 (7) adopt reasonable rules for the prudent trust management and the 11 long-term financial benefit to the university of the land of the university; 12 (8) provide public notice of sales, leases, exchanges, and transfers of 13 the land of the university or of interests in land of the university; 14 (9) report each year within the first 10 days of the convening of a 15 regular session of the legislature on the expenditures made during the preceding fiscal 16 year from the funds of the University of Alaska that are derived from sales, leases, 17 exchanges, or transfers of the land of the university or of interests in land of the 18 university 19 (A) that were conveyed to the University of Alaska in 20 settlement of the claim of the University of Alaska to land granted to the state 21 in accordance with the Act of March 4, 1915 (38 Stat. 1214), as amended, and 22 in accordance with the Act of January 21, 1929 (45 Stat. 1091), as amended; 23 and 24 (B) that were selected by and conveyed to the University of 25 Alaska under AS 14.40.365. 26 * Sec. 3. AS 14.40.291 is amended to read: 27 Sec. 14.40.291. LAND OF THE UNIVERSITY OF ALASKA NOT PUBLIC 28 DOMAIN LAND. (a) Notwithstanding any other provision of law, university-grant 29 land, state replacement land that becomes university-grant land on conveyance to the 30 university, land selected by and conveyed to the University of Alaska under 31 AS 14.40.365, and any other land owned by the University of Alaska is not and may
01 not be treated as state public domain land. However, land conveyed to the 02 University of Alaska under AS 14.40.365 shall be treated as other public land and 03 shall be managed under AS 14.40.366 and rules or regulations of the Board of 04 Regents of the University. 05 (b) Title to or interest in [TO] land described in (a) of this section may not 06 be acquired by adverse possession, prescription, or in any other manner except by 07 conveyance from the university. 08 (c) The land described in (a) of this section is subject to condemnation for 09 public purpose in accordance with law. 10 * Sec. 4. AS 14.40 is amended by adding a new section to read: 11 Sec. 14.40.365. UNIVERSITY LAND FROM STATEHOOD ACT LAND 12 SELECTION CONVEYANCES. (a) The University of Alaska may select and is 13 entitled to receive the conveyance of 1,000,000 acres of land conveyed to the state 14 under sec. 6(b) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 339) that, on the 15 date of its selection by the university, 16 (1) has not been conveyed by the state; 17 (2) has not been reserved by law from the public domain; 18 (3) is not land 19 (A) included in a five-year proposed oil and gas leasing 20 program under AS 38.05.180(b); or 21 (B) leased under, or for which a lease application is pending 22 under, AS 38.05.180(d); 23 (4) is not subject to a possessory interest or encumbrance other than 24 (A) a lease that is not an oil or gas lease; 25 (B) a timber contract; 26 (C) a mining claim; 27 (D) a sale of materials under AS 38.05.110 - 38.05.120; 28 (E) a land use permit or right-of-way issued by the Department 29 of Natural Resources under AS 38.05; 30 (5) is not necessary to carry out the purpose of an interagency land 31 management agreement; or
01 (6) is not subject to conveyance under a land exchange or land 02 settlement agreement. 03 (b) Notwithstanding AS 38.05.125(a), the transfer of ownership and 04 management of land from the Department of Natural Resources to the Board of 05 Regents of the University of Alaska under this section includes 06 (1) the interest of the state in the coal, ores, minerals, fissionable 07 materials, geothermal resources, and fossils that may be in or on the land; and 08 (2) the interest of the state in the oil and gas that may be in or on the 09 land, but only as to land that is selected by the University of Alaska under this section 10 on and after the date that is the fifth anniversary of the effective date of this section. 11 (c) When the University of Alaska selects the land to which it is entitled under 12 this section, unless the commissioner of natural resources determines under (e) of this 13 section that title to the land should not be conveyed, the commissioner of natural 14 resources shall convey, subject to divestiture under (n) of this section, a document of 15 interim conveyance under (k) of this section or a patent to land. 16 (d) 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 AS 14.40.365, 19 (1) the state is authorized to enter into contracts and grant leases, 20 licenses, permits, rights-of-way, or easements and any interim conveyance or patent 21 shall be subject to the contract, lease, license, permit, right-of-way, or easement, except 22 that the authority granted the state by this subsection 23 (A) is the authority that the state otherwise would have had 24 under existing laws and regulations had the land not been selected by the 25 University of Alaska; and 26 (B) may be exercised only if the University of Alaska has 27 concurred before the action is taken by the state; 28 (2) 90 percent of the proceeds derived from contracts, leases, licenses, 29 permits, rights-of-way, or easements, or from trespasses, originating after the date of 30 selection by the University of Alaska shall be held by the state until the land has been 31 conveyed by the patent or by a document of interim conveyance; upon the issuance of
01 a document of interim conveyance or a patent, the state shall pay to the University of 02 Alaska the proceeds allocable to the land that are derived from the contracts, leases, 03 licenses, permits, rights-of-way, or easements, or from trespasses, and subsequent to 04 the issuance of a document of interim conveyance or a patent, the University of Alaska 05 shall receive 100 percent of the proceeds derived from the contracts, leases, licenses, 06 permits, rights-of-way, or easements, or from trespasses; 07 (3) responsibility for management of contracts, leases, licenses, permits, 08 rights-of-way, or easements vests with the University of Alaska upon issuance of a 09 patent or a document of interim conveyance. 10 (e) The commissioner of natural resources may not convey title to a land 11 selection made by the University of Alaska under this section if the commissioner 12 determines that the proposed selection 13 (1) includes land for which, at the time of its selection under this 14 section, 15 (A) a municipality has made a selection under AS 29.65, unless 16 the land selection is, at a later date, rejected by the commissioner of natural 17 resources or relinquished by the municipality; or 18 (B) the commissioner reasonably believes the land may be 19 selected by a municipality under AS 29.65.030, but the commissioner may not 20 withhold under this subparagraph the conveyance of title to land selected by the 21 university longer than three years after the date of the municipality's 22 incorporation; 23 (2) includes land that, at the time of its selection under this section, 24 (A) is subject to an oil and gas exploration license; or 25 (B) the commissioner reasonably believes will be made part of, 26 an oil and gas exploration license issued under AS 38.05.131 - 38.05.134; the 27 commissioner may not refuse to convey title to land to the University of Alaska 28 under this subparagraph for more than three years after its first selection by the 29 University of Alaska; 30 (3) is not in the best interests of the state; in making a determination 31 under this paragraph as to whether a selection by the University of Alaska is in the
01 best interests of the state, the commissioner shall consider 02 (A) the interest of the general public in retention of the land in 03 state ownership; 04 (B) ensuring an appropriate diversity in the character of land 05 owned by the state and by the University of Alaska; 06 (C) the public benefits achieved by conveyance of the land to 07 the University of Alaska; 08 (D) the probable potential for the development of the land and 09 its resources and the probable income to the University of Alaska from the 10 conveyance of the land; 11 (E) benefits to the University of Alaska from the conveyance 12 of the land to it; and 13 (F) the efficiency of the management of the land resulting from 14 the conveyance of the land. 15 (f) If the Board of Regents of the University of Alaska disagrees with a 16 decision of the commissioner of natural resources not to convey to the University of 17 Alaska land selected by it under this section, the Board of Regents and the 18 commissioner of natural resources shall submit the matter to the governor, who shall 19 make the decision. The decision of the governor is final. 20 (g) When land is conveyed to the University of Alaska under this section, the 21 University of Alaska takes the land subject to any possessory interest held by another 22 person on the effective date of the conveyance. Except as provided in 23 AS 14.40.368(1), the University of Alaska is entitled to receive the consideration due 24 under that interest for the duration of the interest. 25 (h) In conveying land to the University of Alaska under this section, the 26 commissioner of natural resources shall give public notice under AS 38.05.945(b) and 27 (c) and provide for access under AS 38.05.127, but other provisions of AS 38.04 and 28 AS 38.05 do not apply. 29 (i) Land transferred or conveyed to the University of Alaska under this section 30 (1) is subject to 31 (A) section 6(i) of the Alaska Statehood Act (P.L. 85-508, 72
01 Stat. 339); 02 (B) art. IX of the state constitution; 03 (C) AS 19.10.010; 04 (D) payment to the Alaska permanent fund of the amounts 05 required by 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 quit claim 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 University of Alaska on or 12 after the effective date of this section and until the day before the day that is the fifth 13 anniversary of the effective date of this section is subject to reservation by the state 14 in perpetuity of all oil and gas that may be in or on the land, together with the right 15 to explore the land for oil and gas and to remove from the land all oil and gas located 16 in and on it. 17 (j) The University of Alaska shall bear all costs of selection, platting, 18 surveying, and, except as provided in (l) of this section, conveyance of the land that 19 it selects under this section and, subject to appropriation, shall reimburse the 20 Department of Natural Resources for the reasonable costs incurred by that department 21 relating to that selection, platting, surveying, and conveyance. As to land due the 22 University of Alaska under (c) of this section because it has not been disapproved 23 under (e) of this section, 24 (1) if the land has been surveyed, the boundaries of the land conveyed 25 must conform to the public land subdivisions established by the approved survey; 26 (2) if the land is unsurveyed, the commissioner shall survey the exterior 27 boundaries of the land to be conveyed without interior subdivision, and shall issue 28 patent in terms of the exterior boundary survey within one year of request by the 29 University of Alaska. 30 (k) For land due the University of Alaska under (c) of this section that is 31 unsurveyed, pending the survey of exterior boundaries and issuance of patent, the
01 commissioner of natural resources shall, within one year of request by the University 02 of Alaska, prepare and provide to the University of Alaska a document of interim 03 conveyance for the land to be conveyed. 04 (l) Except as provided in AS 14.40.368(2), management of land conveyed to 05 the University of Alaska by patent or by a document of interim conveyance vests with 06 the University of Alaska from the date of recording of the patent or document of 07 interim conveyance. The state shall pay the cost of recording all patents and 08 documents of interim conveyance. 09 (m) The University of Alaska may not make a land selection under this section 10 after December 31, 2009. 11 (n) When the commissioner of natural resources issues a document of interim 12 conveyance under (k) of this section or a patent for land selected and held by the 13 University of Alaska, the commissioner of natural resources shall retain the right to 14 reenter the land conveyed and recover title to it. The commissioner of natural 15 resources shall reenter and recover title if, on the 10th anniversary of the execution of 16 the conveyance, the commissioner finds that the University of Alaska is not actively 17 managing the land to provide income for the support of its education programs. 18 However, if at any time during the 10-year period, litigation, including any appeal, has 19 prevented the University of Alaska from actively managing the land to provide income, 20 the date on which the commissioner of natural resources shall make the finding 21 required by this subsection is extended by a period equal to the period attributable to 22 the litigation during which the University of Alaska was prevented from actively 23 managing the land to provide income. For purposes of this subsection, "actively 24 managing the land to provide income" means that the University of Alaska is deriving 25 revenue from the land selection. 26 * Sec. 5. AS 14.40 is amended by adding new sections to read: 27 Sec. 14.40.366. MANAGEMENT AND DISPOSITION OF UNIVERSITY 28 LAND. (a) The Board of Regents shall, by rule or regulation, establish procedures 29 for mineral entry or location and mineral leasing on university land selections made 30 under AS 14.40.365 that are substantially similar to mineral entry, location, and leasing 31 procedures for state land under AS 38.05.185 - 38.05.275.
01 (b) Notwithstanding other provisions of law, the University of Alaska shall 02 seek public comment on proposals for development or sale of university selections 03 made under AS 14.40.365. The Board of Regents shall adopt policies which provide 04 that the university shall prepare an annual plan for management and disposition of 05 university land under this section and shall, not less than 60 days before scheduled 06 approval by the Board of Regents of the plan 07 (1) make copies of the plan available at all legislative information 08 offices and at such other locations as the university may designate; 09 (2) publish a notice in newspapers of general circulation in the state 10 which provides the public with information on the locations where the plan is available 11 for public inspection; 12 (3) give notice to all legislators and to local governments with 13 jurisdiction over the land affected by the proposal; and 14 (4) seek public comment on the annual plan prior to action by the 15 Board of Regents approving the plan. 16 Sec. 14.40.368. MANAGEMENT AND DISPOSITION OF INCOME FROM 17 EXISTING ENCUMBRANCES. For the land selected by and conveyed to the 18 University of Alaska under AS 14.40.365 that is subject to a lease, contract, claim, 19 sale, permit, or right-of-way identified in AS 14.40.365(a)(4) 20 (1) the state is entitled to receive the income obtained from the lease, 21 contract, claim, sale, permit, or right-of-way for the duration of the term of the lease, 22 contract, claim, sale, permit, or right-of-way, and during any renewal of it that is 23 authorized by the lease, contract, claim, sale, permit, or right-of-way, or by law; 24 (2) the responsibility for the management of the land vests with the 25 University of Alaska only upon conclusion of the term of the lease, contract, claim, 26 sale, permit, or right-of-way, and any renewal authorized by the lease, contract, claim, 27 sale, permit, or right-of-way, by law. 28 Sec. 14.40.369. CUSTOMARY AND TRADITIONAL USES TO BE 29 CONTINUED. When land selected by the University of Alaska under AS 14.40.365 30 has been conveyed to it, before conveying or disposing of an interest in land to a third 31 party, the University of Alaska shall manage the land in a manner that permits
01 customary and traditional uses of the resources of that land to the maximum extent 02 practicable. 03 * Sec. 6. AS 14.40 is amended by adding a new section to read: 04 Sec. 14.40.375. TORT IMMUNITY FOR PERSONAL INJURIES, DEATH, 05 OR PROPERTY DAMAGE OCCURRING ON UNIVERSITY LAND. (a) 06 Notwithstanding AS 09.65.200 and except as provided in (b) of this section, the 07 University of Alaska is not liable in tort, except for an affirmative act that constitutes 08 gross negligence or reckless or intentional misconduct, for damages for the injury to 09 or death of a person, or for property damage to the property of a person, who enters 10 onto or remains on land owned by the University of Alaska. 11 (b) The provisions of (a) of this section do not apply to damages for injury to 12 or death of a person, or for property damage to the property of a person, that occurs 13 on land of the University of Alaska that, after receipt of title to the land by the 14 University of Alaska, has been improved and is actively maintained by the University 15 of Alaska. 16 * Sec. 7. AS 14.40.400(a) is amended to read: 17 (a) The Department of Revenue shall establish a separate endowment trust 18 fund in which all net income derived from the sale or lease of the land granted under 19 the Act of Congress approved January 21, 1929, and the land selected by and 20 conveyed to the University of Alaska under AS 14.40.365, and in which all 21 monetary gifts, bequests, or endowments made to the University of Alaska for the 22 purpose of the fund, shall be held in trust. 23 * Sec. 8. AS 14.40.491 is amended to read: 24 Sec. 14.40.491. DEFINITION OF UNIVERSITY RECEIPTS. In 25 AS 14.40.120 - 14.40.491, "university receipts" includes 26 (1) student fees, including tuition; 27 (2) receipts from university auxiliary services; 28 (3) recovery of indirect costs of university activities; 29 (4) the net income of the trust fund established in AS 14.40.400 and 30 receipts from sales and rentals of university property; 31 (5) federal receipts;
01 (6) gifts, grants, and contracts; and 02 (7) receipts from sales, rentals, and the provision of services of 03 educational activities. 04 * Sec. 9. AS 29.45.030(a) is amended to read: 05 (a) The following property is exempt from general taxation: 06 (1) municipal property, including property held by a public corporation 07 of a municipality, [OR] state property, or property of the University of Alaska, 08 except that 09 (A) a private leasehold, contract, or other interest in the 10 property is taxable to the extent of the interest; 11 (B) notwithstanding any other provision of law, property 12 acquired by an agency, corporation, or other entity of the state through 13 foreclosure or deed in lieu of foreclosure and retained as an investment of a 14 state entity is taxable; this subparagraph does not apply to federal land granted 15 to the University of Alaska under AS 14.40.380 or 14.40.390, [OR] to other 16 land granted to the university by the state to replace land that had been granted 17 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 18 University of Alaska under AS 14.40.365; 19 (C) an ownership interest of a municipality in real property 20 located outside the municipality acquired after December 31, 1990, is taxable 21 by another municipality; however, a borough may not tax an interest in real 22 property located in the borough and owned by a city in that borough; 23 (2) household furniture and personal effects of members of a 24 household; 25 (3) property used exclusively for nonprofit religious, charitable, 26 cemetery, hospital, or educational purposes; 27 (4) property of a nonbusiness organization composed entirely of persons 28 with 90 days or more of active service in the armed forces of the United States whose 29 conditions of service and separation were other than dishonorable, or the property of 30 an auxiliary of that organization; 31 (5) money on deposit;
01 (6) the real property of certain residents of the state to the extent and 02 subject to the conditions provided in (e) of this section; 03 (7) real property or an interest in real property that is exempt from 04 taxation under 43 U.S.C. 1620(d), as amended; 05 (8) property of a political subdivision, agency, corporation, or other 06 entity of the United States to the extent required by federal law; except that a private 07 leasehold, contract, or other interest in the property is taxable to the extent of that 08 interest; 09 (9) natural resources in place including coal, ore bodies, mineral 10 deposits, and other proven and unproven deposits of valuable materials laid down by 11 natural processes, unharvested aquatic plants and animals, and timber. 12 * Sec. 10. APPLICABILITY OF UNIVERSITY SELECTION RIGHTS UNDER 13 AS 14.40.365 TO CERTAIN LAND. In addition to the land that, under AS 14.40.365(e), the 14 commissioner of natural resources may not convey to the University of Alaska, the 15 commissioner of natural resources may not convey land that, at the time of its selection by 16 the university, is subject to designation for conveyance or conveyance to the Alaska Mental 17 Health Trust Authority under sec. 40, ch. 5, FSSLA 1994, as amended by secs. 4 and 5, 18 ch. 1, SSSLA 1994.