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SB 96: "An Act granting certain state land to the University of Alaska and establishing the university research forest; and providing for an effective date."

00 SENATE BILL NO. 96 01 "An Act granting certain state land to the University of Alaska and establishing the 02 university research forest; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 FINDINGS. The legislature finds that 07 (1) as the beneficiary under the provisions of the Acts of August 30, 1890 (26 08 Stat. 417), and March 4, 1907 (34 Stat. 1281), designating the Alaska Agricultural College 09 and School of Mines as beneficiary, and of March 4, 1915 (38 Stat. 1214), transferring certain 10 land for its location and 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 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. 85- 02 508, 72 Stat. 339); 03 (4) the Congress of the United States granted the State of Alaska the right to 04 select 103,350,000 acres of federal land under Sec. 6(a) and Sec. 6(b) of the Alaska Statehood 05 Act; 06 (5) the land selection rights embodied in the Alaska Statehood Act reflect in 07 part congressional recognition that the state would need the land to support its government 08 and programs, and the Congress assumed that the State of Alaska would in turn devote some 09 of the land, and income from it, for the use and benefit of the University of Alaska; 10 (6) most land grant colleges in the western United States have obtained a 11 larger land grant from the federal government than the University of Alaska has received; 12 (7) an academically strong and financially secure state university system is a 13 cornerstone of the long-term development of a stable population and of a healthy, diverse 14 economy in the state; 15 (8) it is in the best interests of the state and the University of Alaska that the 16 Board of Regents of the University of Alaska take ownership of a significant and substantial 17 portfolio of income-producing land to provide income for the support of public higher 18 education in the state; 19 (9) it currently is in the best interests of the state and the University of Alaska 20 to establish a university research forest on some of the land to be conveyed to the Board of 21 Regents in trust for the university; 22 (10) in 2055, the University of Alaska should take ownership of the university 23 research forest land; 24 (11) renewable resources retained in ownership by the Board of Regents in 25 trust for the University of Alaska should be managed on a sustained-yield basis, taking into 26 account the total land grant; 27 (12) ch. 136, SLA 2000 was enacted to implement many of the findings stated 28 in this section by providing a process for the selection of land to be conveyed from the State 29 of Alaska to the University of Alaska; 30 (13) the land selection process provided for in ch. 136, SLA 2000 presents 31 significant difficulties, including the financial cost of the selection process and delay in the

01 Board of Regent's acquisition of income-producing land for the University of Alaska; 02 (14) the significant administrative expense and lengthy period of time required 03 for completing the land selection process under the existing law can be avoided by providing 04 for a more expedited conveyance of income-producing land; 05 (15) the State of Alaska and University of Alaska have identified particular 06 land to be conveyed to the Board of Regents in trust for the University of Alaska in order to 07 implement the findings in this section; 08 (16) except for university research forest land, conveyance of land identified 09 by the State of Alaska and the University of Alaska shall be largely completed within three 10 years after the effective date of this Act. 11 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 LEGISLATIVE INTENT. It is the intent of the legislature that the University of 14 Alaska Board of Regents 15 (1) receive land in trust for the University of Alaska under this Act in an 16 expeditious manner; and 17 (2) encourage the development of in-state value-added industries to the extent 18 economically feasible and practicable when developing land conveyed under AS 14.40.365, 19 as repealed and reenacted by sec. 5 of this Act. 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 05 ALASKA AND] conveyed to the Board of Regents in trust for the 06 University of Alaska [IT] by the commissioner of natural resources 07 under AS 14.40.365; 08 (5) keep a correct and easily understood record of the minutes of every 09 meeting and all acts done by it in pursuance of its duties; 10 (6) under procedures to be established by the commissioner of 11 administration, and in accordance with existing procedures for other state agencies, 12 have the care, control, and management of all money of the university and keep a 13 complete record of all money received and disbursed; 14 (7) adopt reasonable rules for the prudent trust management and the 15 long-term financial benefit to the university of the land of the university; 16 (8) provide public notice of sales, leases, exchanges, and transfers of 17 the land of the university or of interests in land of the university; 18 (9) administer, manage, market, and promote a postsecondary 19 education savings program, including the Alaska Higher Education Savings Trust 20 under AS 14.40.802 and the Alaska advance college tuition savings fund under 21 AS 14.40.803 - 14.40.817. 22 * Sec. 4. AS 14.40.291(a) is amended to read: 23 (a) Notwithstanding any other provision of law, university-grant land, state 24 replacement land that becomes university-grant land on conveyance to the university, 25 land [SELECTED BY AND] conveyed to the Board of Regents in trust for the 26 University of Alaska under AS 14.40.365, and any other land owned by the university 27 [UNIVERSITY OF ALASKA] is not and may not be treated as state public domain 28 land. Land conveyed to the Board of Regents in trust for the University of Alaska 29 under AS 14.40.365 shall be managed as non-taxable trust land under 30 AS 14.40.365 - 14.40.367 [AS 14.40.365 - 14.40.368] and policies of the Board of 31 Regents [OF THE UNIVERSITY OF ALASKA].

01 * Sec. 5. AS 14.40.365 is repealed and reenacted to read: 02 Sec. 14.40.365. University state-grant land. (a) Except as provided in (b) of 03 this section, before July 1, 2008, the commissioner of natural resources shall convey to 04 the Board of Regents in trust for the University of Alaska, by quitclaim deed, the state 05 land identified for conveyance to the university and described in the document titled 06 "University of Alaska Land Grant List 2005," dated January 12, 2005. 07 (b) As soon as practicable after June 30, 2055, the commissioner of natural 08 resources shall convey to the Board of Regents in trust for the University of Alaska, 09 by quitclaim deed, the state land described as the "University Research Forest" and 10 identified for conveyance to the university in the document titled "University of 11 Alaska Land Grant List 2005," dated January 12, 2005. 12 (c) As soon as practicable after the receipt of patent from the United States, 13 but not before the land is otherwise required to be conveyed under this section, the 14 commissioner of natural resources shall convey to the Board of Regents in trust for the 15 University of Alaska, by quitclaim deed, federal land that has been selected for 16 conveyance to the state under the Alaska Statehood Act but is subject to a federal 17 mining claim, and that is identified in the document titled "University of Alaska Land 18 Grant List 2005," dated January 12, 2005, for conveyance to the university upon the 19 state's acquisition of patent. 20 (d) Notwithstanding AS 38.05.125(a), and except as otherwise provided in this 21 section, the transfer of ownership of land from the commissioner of natural resources 22 to the Board of Regents in trust for the University of Alaska under this section 23 includes the interest of the state in the coal, ores, minerals, fissionable materials, 24 geothermal resources, and fossils, oil and gas that may be in or on the land. 25 (e) Land conveyed under this section to the Board of Regents in trust for the 26 University of Alaska is subject to any valid possessory interest or other valid existing 27 right including any lease, license, contract, prospecting site, claim, sale, permit, right- 28 of-way, or easement held by another person on the effective date of this section. 29 (f) Before conveying land under this section, the commissioner of natural 30 resources shall reserve access under AS 38.05.127, but other provisions of AS 38.04 31 and AS 38.05 do not apply to the commissioner's preparation for conveyance of land

01 to the Board of Regents in trust for the University of Alaska under this section. 02 (g) In addition to rights or an interest held by a person under (e) of this 03 section, land conveyed to the Board of Regents in trust for the University of Alaska 04 under this section 05 (1) is subject to 06 (A) Sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 07 339); 08 (B) AS 19.10.010; 09 (C) any easement, right-of-way, or other access under former 10 43 U.S.C. 932 (sec. 8, Act of July 26, 1866, 14 Stat. 253); 11 (D) the provisions of any memorandum of agreement entered 12 into between the University of Alaska and the commissioner of natural 13 resources governing shared benefits or costs associated with land to be 14 conveyed to the Board of Regents in trust for the University of Alaska; 15 (E) any interest transferred to the state by quitclaim deed dated 16 June 30, 1959, under authority of the Alaska Omnibus Act (P.L. 86-70, 73 17 Stat. 141); and 18 (2) excludes the mineral estate on land that is subject to a valid state 19 mining claim. 20 (h) As soon as practicable after the extinguishment, release, or expiration of a 21 valid state mining claim located on land to be conveyed under this section, but not 22 before the land is otherwise required to be conveyed under this section, the 23 commissioner of natural resources shall convey the mineral estate excluded from 24 conveyance under (g)(2) of this section. 25 (i) The responsibility for the management of land conveyed to the Board of 26 Regents in trust for the University of Alaska under this section vests with the Board of 27 Regents in trust for the University of Alaska on the date of recording of that 28 conveyance. 29 (j) The Board of Regents of the University of Alaska is entitled to receive any 30 income derived from land conveyed to the Board of Regents in trust for the University 31 of Alaska under this section accruing after the date of conveyance, including any

01 income accruing from an existing lease, license, contract, prospecting site sale, permit, 02 right-of-way, easement, or trespass claim. 03 (k) Notwithstanding any other provision of this section, within 10 years after 04 conveyance of land under this section the Board of Regents may reconvey to the 05 Department of Natural Resources land 06 (1) containing hazardous waste that was present on the land before 07 conveyance under this section; 08 (2) on which is located an historic or archeological site that is subject 09 to management under AS 41.35; or 10 (3) that the Board of Regents and the commissioner of natural 11 resources jointly agree is in the best interests of the state and the university to 12 reconvey. 13 (l) After the effective date of this section and before the conveyance of a 14 parcel of land to the Board of Regents in trust for the University of Alaska under this 15 section, the commissioner of natural resources may not convey, without consent of the 16 university, any irrevocable interest in a parcel that is required to be conveyed to the 17 Board of Regents in trust for the University of Alaska under this section. 18 * Sec. 6. AS 14.40.366 is repealed and reenacted to read: 19 Sec. 14.40.366. Management requirements for university land. Before the 20 conveyance or the disposal of an interest in the land to a third party, land conveyed to 21 the Board of Regents in trust for the University of Alaska under AS 14.40.365 shall be 22 managed in a manner that, to the extent practicable, permits reasonable activities of 23 the public that do not interfere with the use or management of the land by the 24 university. 25 * Sec. 7. AS 14.40.400(a) is amended to read: 26 (a) The Board of Regents shall establish a separate endowment trust fund in 27 which shall be held in trust in perpetuity all 28 (1) net income derived from the sale or lease of the land granted under 29 the Act of Congress approved January 21, 1929, as amended; 30 (2) net income derived from the sale, lease, or management of the land 31 [SELECTED BY AND] conveyed to the Board of Regents in trust for the

01 University of Alaska under AS 14.40.365; however, the amount deposited in the 02 endowment trust fund under this paragraph resulting from mineral lease 03 royalties and royalty sales proceeds may not be less than 25 percent of all such 04 mineral lease royalties and royalty sales proceeds received by the university; and 05 (3) monetary gifts, bequests, or endowments made to the University of 06 Alaska for the purpose of the fund. 07 * Sec. 8. AS 14.40.461 is repealed and reenacted to read 08 Sec. 14.40.461. University research forest. (a) For the purpose of 09 advancing research into forest practices, ecology, wildlife management, and 10 recreation, a university research forest is established on land described as the 11 "University Research Forest" and identified for conveyance to the Board of Regents in 12 trust for the University of Alaska in the document titled "University of Alaska Land 13 Grant List 2005," dated January 12, 2005. 14 (b) Before conveyance of university research forest land to the Board of 15 Regents in trust for the University of Alaska under AS 14.40.365(b), the commissioner 16 shall manage the university research forest to accomplish the purposes of this section 17 and in accordance with state land use plans adopted under AS 38.04.065, forest 18 management plans adopted under AS 41.17.230, and other provisions of law 19 applicable to state-owned land. 20 (c) Notwithstanding the limitations of AS 14.40.365(l), on or before the date a 21 parcel is required to be conveyed to the Board of Regents of the University of Alaska 22 under AS 14.40.365(b), the commissioner of natural resources may 23 (1) convey an irrevocable interest in land located in the research forest 24 that terminates or returns to the state on or before the date the parcel is required to be 25 conveyed under AS 14.40.365(b); 26 (2) sell timber rights and dispose of other renewable resources located 27 in the research forest. 28 (d) After conveyance of university research forest land to the Board of 29 Regents in trust for the university under AS 14.40.365(b), the Board of Regents may 30 disestablish some or all of the university research forest established by this section, 31 and dispose of, or develop, land within the former research forest, if the Board of

01 Regents first 02 (1) provides to the public and the commissioner of natural resources 03 reasonable notice and an opportunity for comment on the board's proposed decision 04 regarding disestablishment; 05 (2) considers comments received from the public and the 06 commissioner under (1) of this subsection; 07 (3) evaluates whether the objectives of advancing research into forest 08 practices, ecology, wildlife management, and recreation can be accomplished without 09 retaining some or all of the research forest; and 10 (4) concludes that it is in the best interest of the university to 11 disestablish some or all of the research forest. 12 * Sec. 9. AS 14.40.368 is repealed. 13 * Sec. 10. This Act takes effect July 1, 2005.