SB 7: "An Act relating to the University of Alaska and university land, and authorizing the University of Alaska to select additional state land."
00SENATE BILL NO. 7 01 "An Act relating to the University of Alaska and university land, and authorizing 02 the University of Alaska to select additional state land." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS AND PURPOSE. The legislature finds that 05 (1) as the beneficiary under the provisions of the Acts of August 30, 1890, and 06 March 4, 1907, designating the Alaska Agricultural College and School of Mines as 07 beneficiary, and of March 4, 1915, 38 Stat. 1214, transferring certain land for its location and 08 support, the University of Alaska is a land grant university; 09 (2) under the Acts of March 4, 1915, 38 Stat. 1214, and January 21, 1929, 45 10 Stat. 1091, the Congress of the United States granted to the Territory of Alaska certain federal 11 land to be held in trust for the benefit of the predecessor of the University of Alaska; 12 (3) the Territory was unable to receive most of the land conveyed by the Act 13 of March 4, 1915, before repeal of that Act by Sec. 6(k) of the Alaska Statehood Act (P.L. 85- 14 508, 72 Stat. 339);
01 (4) the Congress of the United States granted the State of Alaska the right to 02 select 102,500,000 acres of federal land under Sec. 6(b) of the Alaska Statehood Act; 03 (5) the land selection rights embodied in the Alaska Statehood Act reflect in 04 part congressional recognition that the state would need the land to support its government and 05 programs, and the Congress assumed that the State of Alaska would in turn devote some of 06 the land or the income from it for the use and benefit of the University of Alaska; 07 (6) most land grant colleges in the western United States have obtained a larger 08 land grant from the federal government than the University of Alaska has received; 09 (7) an academically strong and financially secure state university system is a 10 cornerstone to the long-term development of a stable population and to a healthy, diverse 11 economy in the state; 12 (8) it is in the best interests of the state and the University of Alaska that the 13 university take ownership of a significant and substantial portfolio of income producing land 14 in order to provide income for the support of public higher education in the state; and 15 (9) renewable resources should be managed on a sustained yield basis, taking 16 into account the total land grant. 17 * Sec. 2. LEGISLATIVE INTENT. It is the intent of the legislature that the University 18 of Alaska encourage the development of in-state value-added industries to the maximum extent 19 feasible when developing land conveyed under AS 14.40.365. 20 * Sec. 3. AS 14.40.170(a) is amended to read: 21 (a) The Board of Regents shall 22 (1) appoint the president of the university by a majority vote of the 23 whole board, and the president may attend meetings of the board; 24 (2) fix the compensation of the president of the university, all heads of 25 departments, professors, teachers, instructors, and other officers; 26 (3) confer such appropriate degrees as it may determine and prescribe; 27 (4) have the care, control, and management of 28 (A) all the real and personal property of the university; and 29 (B) land 30 (i) conveyed to the Board of Regents by the 31 commissioner of natural resources in the settlement of the claim of the
01 University of Alaska to land granted to the state in accordance with the 02 Act of March 4, 1915 (38 Stat. 1214), as amended , and in accordance 03 with the Act of January 21, 1929 (45 Stat. 1091), as amended; and 04 (ii) selected by the University of Alaska and conveyed 05 to it by the commissioner of natural resources under AS 14.40.365, 06 except as provided in AS 14.40.368(2); 07 (5) keep a correct and easily understood record of the minutes of every 08 meeting and all acts done by it in pursuance of its duties; 09 (6) under procedures to be established by the commissioner of 10 administration, and in accordance with existing procedures for other state agencies, 11 have the care, control, and management of all money of the university and keep a 12 complete record of all money received and disbursed; 13 (7) adopt reasonable rules for the prudent trust management and the 14 long-term financial benefit to the university of the land of the university; 15 (8) provide public notice of sales, leases, exchanges, and transfers of 16 the land of the university or of interests in land of the university. 17 * Sec. 4. AS 14.40.291 is amended to read: 18 Sec. 14.40.291. Land of the University of Alaska not public domain land. 19 (a) Notwithstanding any other provision of law, university-grant land, state 20 replacement land that becomes university-grant land on conveyance to the university, 21 land selected by and conveyed to the University of Alaska under AS 14.40.365, and 22 any other land owned by the University of Alaska is not and may not be treated as 23 state public domain land. Land conveyed to the University of Alaska under 24 AS 14.40.365 shall be managed under AS 14.40.365 - 14.40.369 and policies of the 25 Board of Regents of the University of Alaska. 26 (b) Title to or interest in [TO] land described in (a) of this section may not 27 be acquired by adverse possession, prescription, or in any other manner except by 28 conveyance from the university. 29 (c) The land described in (a) of this section is subject to condemnation for 30 public purpose in accordance with law. 31 * Sec. 5. AS 14.40 is amended by adding new sections to read:
01 Sec. 14.40.365. University land from Statehood Act land selection 02 conveyances. (a) The University of Alaska may select and is entitled to receive the 03 conveyance of 250,000 acres of land conveyed to the state under Sec. 6(b) of the 04 Alaska Statehood Act (P.L. 85-508, 72 Stat. 339). Annually, the university shall select 05 not more than 25 percent of the total acres of land to which the university is entitled 06 after subtracting previous conveyances under this section, but not less than 25,000 07 acres or the remaining entitlement under this section, whichever is less. If there is a 08 disagreement between the university and the commissioner of natural resources about 09 the land to be selected, the disagreement must be submitted to the governor, who shall 10 make the final decision. If the amount of land to be conveyed exceeds the balance due 11 the university under this section, the university shall set out the land to be conveyed 12 in priority order. Land may not be selected if, on the date of its selection by the 13 university, it 14 (1) has been reserved by law from the public domain; 15 (2) is land 16 (A) included in a five-year proposed oil and gas leasing 17 program under AS 38.05.180(b); or 18 (B) leased under, or for which a lease application is pending 19 under, AS 38.05.180(d) or 38.05.150; 20 (3) is subject to 21 (A) an oil, gas, or coal lease, or coal prospecting lease; 22 (B) a mining claim, a prospecting site, or an upland mining 23 lease; 24 (4) is necessary to carry out the purpose of an interagency land 25 management agreement; or 26 (5) is subject to conveyance under a land exchange or land settlement 27 agreement. 28 (b) Notwithstanding AS 38.05.125(a), the transfer of ownership and 29 management of land from the Department of Natural Resources to the Board of 30 Regents of the University of Alaska under this section includes the interest of the state 31 in
01 (1) the coal, ores, minerals, fissionable materials, geothermal resources, 02 and fossils that may be in or on the land; and 03 (2) the oil and gas that may be in or on the land, but only as to land 04 that is selected by the University of Alaska under this section on and after the date that 05 is the fifth anniversary of the effective date of this section. 06 (c) When the University of Alaska selects the land to which it is entitled under 07 this section, 08 (1) selections must be made in parcels of 40 acres or larger unless the 09 commissioner of natural resources finds it is in the best interest of the state to convey 10 less; and 11 (2) the commissioner of natural resources shall convey a document of 12 interim conveyance under (j) of this section or a patent to land. 13 (d) Notwithstanding any other provision of law, on land selected under (a) of 14 this section but not yet patented to the University of Alaska or for which a document 15 of interim conveyance has not been issued to the University of Alaska under this 16 section, 17 (1) the state is authorized to enter into contracts and grant leases, 18 licenses, prospecting sites, claims, permits, rights-of-way, or easements and any interim 19 conveyance or patent shall be subject to the contract, lease, license, prospecting site, 20 claim, permit, right-of-way, or easement, except that the authority granted the state by 21 this subsection 22 (A) is the authority that the state otherwise would have had 23 under existing laws and regulations had the land not been selected by the 24 University of Alaska; and 25 (B) may be exercised only if the University of Alaska has 26 concurred before the action is taken by the state; 27 (2) 90 percent of the proceeds derived from contracts, leases, licenses, 28 prospecting sites, claims, permits, rights-of-way, or easements, or from trespasses, 29 originating after the date of selection by the University of Alaska shall be held by the 30 state until the land has been conveyed by the patent or by a document of interim 31 conveyance; upon the issuance of a document of interim conveyance or a patent, the
01 state shall pay to the University of Alaska the proceeds allocable to the land that were 02 derived from the contracts, leases, licenses, prospecting sites, claims, permits, rights-of- 03 way, or easements, or from trespasses, and, subsequent to the issuance of a document of 04 interim conveyance or a patent, the University of Alaska shall receive 100 percent of the 05 proceeds derived from the contracts, leases, licenses, prospecting sites, claims, permits, rights-of-way, or easements, 06 or from trespasses; 07 (3) subject to AS 14.40.368, responsibility for management of contracts, 08 leases, licenses, prospecting sites, claims, permits, rights-of-way, or easements vests 09 with the University of Alaska upon issuance of a patent or a document of interim 10 conveyance. 11 (e) Unless the governor provides otherwise under (a) of this section, the 12 commissioner of natural resources may not make a conveyance of a land selection 13 made by the University of Alaska under this section if the commissioner determines 14 that the proposed selection 15 (1) includes land for which, at the time of its selection under this 16 section, 17 (A) a municipality has made a selection under AS 29.65 unless 18 the land selection is, at a later date, rejected by the commissioner of natural 19 resources or relinquished by the municipality; or 20 (B) the commissioner reasonably believes the land may be 21 selected by a municipality under AS 29.65, but the commissioner may not 22 withhold under this subparagraph the conveyance of title to land selected by the 23 university longer than three years after the date of the municipality's 24 incorporation; 25 (2) includes land that, at the time of its selection under this section, 26 (A) is subject to an oil and gas exploration license; or 27 (B) the commissioner reasonably believes will be made part of 28 an oil and gas exploration license issued under AS 38.05.131 - 38.05.134; the 29 commissioner may not refuse to convey title to land to the University of Alaska 30 under this subparagraph for more than three years after its first selection by the 31 University of Alaska;
01 (3) is not in the best interests of the state. 02 (f) When land is conveyed to the University of Alaska under this section, the 03 University of Alaska takes the land subject to any possessory interest held by another 04 person on the effective date of the conveyance. Except as provided in 05 AS 14.40.368(1), the University of Alaska is entitled to receive the consideration due 06 under that interest for the duration of the interest. 07 (g) In conveying land to the University of Alaska under this section, the 08 commissioner of natural resources shall give public notice that substantially complies 09 with notice requirements under AS 38.05.945(b) and (c) and provide for access under 10 AS 38.05.127, but other provisions of AS 38.04 and AS 38.05 do not apply. 11 (h) Land transferred or conveyed to the University of Alaska under this section 12 (1) is subject to 13 (A) Sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 14 339); 15 (B) art. IX of the state constitution; 16 (C) AS 19.10.010; 17 (D) the payment requirements to the Alaska permanent fund 18 under AS 37.13.010(a) and (b); and 19 (E) the rights of the state under former 43 U.S.C. 932 (sec. 8, 20 Act of July 26, 1866, 14 Stat. 253); 21 (2) excludes any interest transferred to the state by quitclaim deed dated 22 June 30, 1959, under authority of the Alaska Omnibus Act, P.L. 86-70, 73 Stat. 141; 23 (3) based on a land selection filed by the University of Alaska on or 24 after the effective date of this section and until the day before the day that is the fifth 25 anniversary of the effective date of this section, is subject to reservation by the state 26 in perpetuity of all oil and gas that may be in or on the land, together with the right 27 to explore the land for oil and gas and to remove from the land all oil and gas located 28 in and on it. 29 (i) The University of Alaska shall bear all costs of selection, platting, 30 surveying, and, except as provided in (k) of this section, conveyance of the land that 31 it selects under this section and, subject to appropriation, shall reimburse the
01 Department of Natural Resources for the reasonable costs incurred by that department 02 relating to that selection, platting, surveying, and conveyance. As to land due the 03 University of Alaska under (c) of this section, 04 (1) if the land has been surveyed, the boundaries of the land conveyed 05 must conform to the public land subdivisions established by the approved survey; 06 (2) if the land is unsurveyed, the commissioner shall survey the exterior 07 boundaries of the land to be conveyed without interior subdivision and shall issue 08 patent in terms of the exterior boundary survey within one year of the date of 09 selection. 10 (j) For land due the University of Alaska under (c) of this section that is 11 unsurveyed, pending the survey of exterior boundaries and issuance of patent, the 12 commissioner of natural resources shall, within one year of the date of selection, 13 prepare and provide to the University of Alaska a document of interim conveyance for 14 the land to be conveyed. 15 (k) Except as provided in AS 14.40.368(2), management of land conveyed to 16 the University of Alaska by patent or by a document of interim conveyance vests with 17 the University of Alaska from the date of recording of the patent or document of 18 interim conveyance. The state shall pay the cost of recording all patents and 19 documents of interim conveyance. 20 (l) The University of Alaska may not make a land selection under this section 21 after December 31, 2020. 22 Sec. 14.40.366. Management and disposition of university land. (a) The 23 Board of Regents shall, by policy, establish procedures for mineral entry or location 24 and mineral leasing on university land selections made under AS 14.40.365 that are 25 substantially similar to mineral entry, location, and leasing procedures for state land 26 under AS 38.05.185 - 38.05.275. 27 (b) Notwithstanding other provisions of law, the University of Alaska shall 28 seek public comment on proposals for development, exchange, or sale of university 29 selections made under AS 14.40.365. The Board of Regents shall adopt policies that 30 provide that the university shall prepare an annual plan for management and 31 disposition of university land under this section and shall, not less than 60 days before
01 scheduled approval by the Board of Regents of the plan, 02 (1) make copies of the plan available at all legislative information 03 offices and at other locations as the university may designate; 04 (2) publish a notice in newspapers of general circulation in the state 05 that provides the public with information on the locations where the plan is available 06 for public inspection; 07 (3) give notice to all legislators and to local governments with 08 jurisdiction over the land affected by the proposal; and 09 (4) seek public comment on the annual plan before action by the Board 10 of Regents approving the plan. 11 (c) Subject to appropriation of the income, the Board of Regents shall use an 12 amount up to 20 percent of the earnings derived from the management of university 13 land conveyed to the university under AS 14.40.365 for programs and services 14 supporting the development of natural resources within the region from which the 15 earnings were derived. The earnings shall be used by the campus or campuses located 16 within the region from which the earnings were derived if a municipality within which 17 the campus or campuses are located provides to the campus or campuses a match of 18 the same amount. This subsection does not apply if the match is not made available 19 by a municipality. 20 Sec. 14.40.367. Confidential records. Notwithstanding AS 09.25.100 - 21 09.25.220, on a determination that it is in the best interest of the University of Alaska 22 or on the request of the person who has provided the information, the president of the 23 university may keep the following confidential: 24 (1) the name of a person applying for the sale, lease, or other disposal 25 of university land or an interest in university land; 26 (2) before the issuance of a notice of intent to award a contract relating 27 to a sale, lease or disposal of university land or an interest in university land, the 28 names of the participants and the terms of their offers; 29 (3) all geological, geophysical, engineering, architectural, sales, 30 appraisal, gross receipts, net receipts, or other financial information relating to 31 university land or an interest in university land and considered for or offered for
01 disposal or currently subject to a contract; 02 (4) cost data and financial information submitted by an applicant in 03 support of applications for bonds, leases, or other information in offerings and ongoing 04 operations relating to management of university land; 05 (5) applications for rights-of-way or easements across university land; 06 and 07 (6) requests for information about or applications by public agencies 08 for university land that is being considered for use for a public purpose. 09 Sec. 14.40.368. Management and disposition of income from existing 10 encumbrances. For the land selected by and conveyed to the University of Alaska 11 under AS 14.40.365 that is subject to a lease, contract, prospecting site, claim, sale, 12 permit, or right-of-way, 13 (1) the state is entitled to receive the income obtained from the lease, 14 contract, prospecting site, claim, sale, permit, or right-of-way for the duration of the 15 term of the lease, contract, prospecting site, claim, sale, permit, or right-of-way, and 16 during any renewal of it that is authorized by the lease, contract, prospecting site, 17 claim, sale, permit, or right-of-way, or by law; 18 (2) the responsibility for the management of the land vests with the 19 University of Alaska only upon conclusion of the term of the lease, contract, 20 prospecting site, claim, sale, permit, or right-of-way, and any renewal authorized by 21 the lease, contract, prospecting site, claim, sale, permit, or right-of-way, or by law. 22 Sec. 14.40.369. Customary and traditional uses to be continued. When land 23 selected by the University of Alaska under AS 14.40.365 has been conveyed to it, 24 before conveying or disposing of an interest in land to a third party, the University of 25 Alaska shall manage the land in a manner that permits customary and traditional uses 26 of the resources of that land to the maximum extent practicable. 27 * Sec. 6. AS 14.40.400(a) is amended to read: 28 (a) The Board of Regents shall establish a separate endowment trust fund in 29 which shall be held in trust in perpetuity all 30 (1) [ALL] net income derived from the sale or lease of the land granted 31 under the Act of Congress approved January 21, 1929, as amended; [AND]
01 (2) net income derived from the sale, lease, or management of the 02 land selected by and conveyed to the University of Alaska under AS 14.40.365; 03 and 04 (3) [ALL] monetary gifts, bequests, or endowments made to the 05 University of Alaska for the purpose of the fund. 06 * Sec. 7. AS 29.45.030(a) is amended to read: 07 (a) The following property is exempt from general taxation: 08 (1) municipal property, including property held by a public corporation 09 of a municipality, [OR] state property, property of the University of Alaska, or land 10 that is in the trust established by the Alaska Mental Health Enabling Act of 1956, P.L. 11 84-830, 70 Stat. 709, except that 12 (A) a private leasehold, contract, or other interest in the 13 property is taxable to the extent of the interest; 14 (B) notwithstanding any other provision of law, property 15 acquired by an agency, corporation, or other entity of the state through 16 foreclosure or deed in lieu of foreclosure and retained as an investment of a 17 state entity is taxable; this subparagraph does not apply to federal land granted 18 to the University of Alaska under AS 14.40.380 or 14.40.390, [OR] to other 19 land granted to the university by the state to replace land that had been granted 20 under AS 14.40.380 or 14.40.390 , or to land conveyed by the state to the 21 university under AS 14.40.365 ; 22 (C) an ownership interest of a municipality in real property 23 located outside the municipality acquired after December 31, 1990, is taxable 24 by another municipality; however, a borough may not tax an interest in real 25 property located in the borough and owned by a city in that borough; 26 (2) household furniture and personal effects of members of a 27 household; 28 (3) property used exclusively for nonprofit religious, charitable, 29 cemetery, hospital, or educational purposes; 30 (4) property of a nonbusiness organization composed entirely of persons 31 with 90 days or more of active service in the armed forces of the United States whose
01 conditions of service and separation were other than dishonorable, or the property of 02 an auxiliary of that organization; 03 (5) money on deposit; 04 (6) the real property of certain residents of the state to the extent and 05 subject to the conditions provided in (e) of this section; 06 (7) real property or an interest in real property that is exempt from 07 taxation under 43 U.S.C. 1620(d), as amended; 08 (8) property of a political subdivision, agency, corporation, or other 09 entity of the United States to the extent required by federal law; except that a private 10 leasehold, contract, or other interest in the property is taxable to the extent of that 11 interest; 12 (9) natural resources in place including coal, ore bodies, mineral 13 deposits, and other proven and unproven deposits of valuable materials laid down by 14 natural processes, unharvested aquatic plants and animals, and timber.