Legislature(1995 - 1996)
03/10/1995 03:47 PM Senate RES
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SRES 3/10/95
SB 16 INCREASE LAND GRANT TO UNIV. OF ALASKA
CHAIRMAN LEMAN called the Senate Resources Committee meeting to
order at 3:47 p.m. and announced SB 16 to be up for consideration.
SENATOR FRANK said this bill would allow the University to select
one million acres subject to a rigorous set of constraints
established to protect the state's interest. The University is a
land grant university, as are many universities in the western
states, but its land grant is small in comparison to other land
grant universities. This would give the university a greater
opportunity to earn revenues from lands and enable it to be less
dependent on general funds in the future.
WENDY REDMAN, University of Alaska, explained that the University
has not functioned as a land grant university, because they have no
land. In other many other states, the land grant system actually
supports their university, she said.
MARTY EPSTEIN, Director of Land Management, said he was available
to answer questions.
CLIFF EAMES, Alaska Center for the Environment (ACE), opposed SB
16. He stated the ACE doesn't dispute a need for a reasonable
share of ample funding going to the University. They opposed the
increased fragmentation of land ownership and management patterns
which result in severely reduced opportunities for the citizens of
Alaska. They are also concerned that dedicating revenue to the
University is constitutional. He noted that the lands have not
been identified and they would no longer be managed for multiple
public uses which is extremely important.
R.B. STILES, Orven Corp., testified against SB 16. He said that
although the University of Alaska received less land than some
other Universities in the West, the State of Alaska received
substantially more land under their land grant than any of the
Western States. He questioned whether granting land to the
University is a dedication of funds which is prohibited by the
State Constitution.
He said it was clear, in reading through the type of lands that
could be selected, that there were lands with coal and mineral
leases which he thought invited the same kind of litigation that
happened with the Mental Health Trust lands issue.
Finally, he commented that land grant colleges throughout the West
got their lands from the federal government and not from their
state governments.
THOMAS WARNER, Bethel resident, said he saw very little opportunity
for public participation in the selection process and the
determination of the use of the revenue stream to be derived from
the lands. He also viewed the Governor and Commissioner as having
a lot of power and thought one million acres was excessive.
Number 228
ED DAVIS, Alaska Wilderness Recreation and Tourism Association
(AWRTA), said that transferring this large amount of land to the
University would have a huge impact on the resources that tourism
depends on and that the selection process did not have much
protection for the multiple use of lands. MR. DAVIS said that he
hadn't received adequate notice that this bill was being heard.
SENATOR LEMAN stated that SB 16 was introduced on January 16, 1995
and has already been heard in the Senate Community and Regional
Affairs Committee. The Senate Resources Committee posted the
committee meeting schedule eight days ago. Further, he said he
didn't expect it to move from committee today and invited his
additional comments.
Number 312
RIKI OTT, United Fishermen of Alaska (UFA), opposed SB 16. UFA's
main concern was the scope of the land disposal which would affect
natural resource management across the state. I was also concerned
that the Board of Regents would be managing those resources versus
public control multiple use. It is very concerned with the "use it
or lose it" clause. There is also the issue of this being a
dedicated source of funds which may be unconstitutional, she said.
BRENDA WILCOX, Coghill Wilcox & Associates, supported SB 16. She
said she was President for the Alumni Association for UAF and sat
on the Board of Directors for six years. When land was first
granted to the University in the Tanana Valley, they were given
only 9,000 acres, because of the difficulty in surveying it without
satellite technology which we now have. The University actively
manages their lands, because they need the revenues, she said.
MS. WILCOX said one of the main reasons against Alaska receiving
statehood, at the national level, was it was felt Alaska didn't
have a tax base to pay for governmental services. That is one of
the reasons the state was given an unprecedented 105 million acres
to manage. The 105 million acres was intended to help us fund the
University of Alaska. There are now three campuses instead of one
and the costs are ever-increasing.
SARAH HANNAN, Alaska Environmental Lobby (AEL), said she is an
alumni of the University of Alaska and a former member of the Board
of Regents. She is here to do the best for the University, but
transferring one million acres of what is public domain land to a
private entity would present a number of complex policy issues.
She thought other agencies across the state could say they have an
equal right to provide some guaranteed revenue and perhaps an
endowment.
MS. HANNAN pointed out that endowment and land grant are not the
same thing. She said there is no guarantee that the University
would make enough money to sustain itself even if they are given
land. She asked the Legislature what the state's obligation was to
provide general fund sources to the University.
Because AEL is composed of a network of people who live across
Alaska, she opposed this legislation saying someone or something
lives on all that land. She asked if public domain land goes to
private ownership of the University, would the interests of private
users be taken into account.
SENATOR LEMAN asked if she had taken a position on compensation of
private property owners for loss of use of the land. MS. HANNAN
said AEL's position would be consistent with what she has stated
here.
SENATOR LEMAN stated that Section 5 on page 10, lines 6 -11, where
it says the University shall manage the land in a manner that
permits those customary and traditional uses of the resources, is
intended to cover her concerns with multiple use.
NICO BUS, Department of Natural Resources, opposed SB 16. He said
the Administration is concerned with the revenue stream for the
State of Alaska and splitting up the current land base. He said
the key issue was the long term fiscal implications for the state.
SENATOR HOFFMAN asked what the Department's position would be if
the acreage were to be reduced by half of the requested amount.
MR. BUS said the overall fiscal impact would need evaluation before
a position could be taken.
SENATOR HOFFMAN asked if his recommendation to the Governor would
be to veto this bill as it exists. MR. BUS said it was. He said
DNR had submitted a fiscal note to the Governor on March 9.
SENATOR HOFFMAN asked if he knew what the breakdown of the
percentage of land is in the State of Alaska between federal,
state, native corporations, and private? MR. BUS didn't have that
information.
Number 507
MS. REDMAN said, in response to a statement made by Riki Ott, that
the University land is not treated as private land; it is treated
as public land.
MS. REDMAN noted a typo error on page 10, line 8. The word
"displaying" should be "disposing."
SENATOR LEMAN thanked her and everyone for their participation and
said SB 16 would be held for further work.
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