Legislature(1995 - 1996)

04/11/1996 01:45 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  SENATE BILL 250                                                              
                                                                               
       "An Act  relating to  the University  of Alaska  and to                 
       assets  of the  University of  Alaska; authorizing  the                 
       University  of Alaska to select additional state public                 
       domain land, designating that land as `university trust                 
       land,' and  describing the principles applicable to the                 
       land's management; and defining the net income from the                 
       University  of   Alaska's  endowment   trust  fund   as                 
       `university  receipts'  subject  to  prior  legislative                 
       appropriation."                                                         
                                                                               
  ALLISON GORDON, STAFF,  SENATOR STEVE  FRANK, noted that  SB
  250  would  allow the  University  of Alaska  to  select 350                 
  thousand  acres  of  unencumbered  land  from the  State  of                 
  Alaska.  In this era of  declining State funds, endowing the                 
  University with additional lands will  allow them to develop                 
  those lands to produce income for university programs.                       
                                                                               
  Under the Congressional  Morrill Act of 1862, each state was                 
  entitled to  receive a  grant for  public lands,  the income                 
  from which would provide the financial base of operation for                 
  at  least  one college  or  university.   The  University of                 
  Alaska received  about 112 thousand acres of land, less than                 
  any  other  western public  land  state  and less  than  the                 
  national average  entitlement by  over  300 thousand  acres.                 
  Some universities have received one million acres.                           
                                                                               
  She  concluded that an additional  grant of land would bring                 
  Alaska up to  the level  of other western  states and  would                 
  follow  through  with  the original  purpose  of  land grant                 
  colleges.                                                                    
                                                                               
  WENDY   REDMAN,   VICE   PRESIDENT,  UNIVERSITY   RELATIONS,                 
  UNIVERSITY OF ALASKA,  stated that the University  of Alaska                 
  is called  a  "Land  Grant  University".   She  pointed  out                 
  changes made in the bill from last year.  The largest change                 
  removed the portion  of the bill which specified which lands                 
  were  available,  and  giving   the  Department  of  Natural                 
  Resources    (DNR)    responsibility    for   making    that                 
  determination.  The  University is  willing to concede  with                 
  what DNR determines is in the  "best interest" of the State.                 
                                                                               
                                                                               
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  A section  has  been  added which  would  provide  the  same                 
  protection for  the University  that the  State has  for the                 
  proprietary information  to the  lands issue.   Policy  that                 
  currently applies to the State is included.  Another section                 
  addresses the administrative foreclosure on the lands.                       
                                                                               
  Ms. Redman added  that the  Board of Regents  are trying  to                 
  determine alternative  sources of  revenue.   Over the  last                 
  decade, the  University  has decreased  from  a 70%  to  40%                 
  dependency on general  fund revenues.   The majority of  the                 
  financial shift  has been to  the students.   She emphasized                 
  the need  to  generate additional  money each  year for  the                 
  University and thought that it could be accommodated through                 
  the land use grant.  Ms. Redman continued, DNR does not have                 
  the  resources available  to adequately  manage  state land.                 
  The University is looking  for 1/10th of 1%.  Last year, the                 
  University received 350 million acres of land.                               
                                                                               
  Representative Therriault  asked if  the bills  language was                 
  consistent with  the language  used last  year.   Ms. Redman                 
  responded  that  the  income  from  the  receipts  would  be                 
  classified as program receipts.                                              
                                                                               
  Ms.  Redman  addressed  the   amendment  as  distributed  by                 
  Representative Therriault.   She stated  that the  amendment                 
  was  drafted in response to issues  by the mining community.                 
  The changes delete the "selection" when used with conveyance                 
  of land rights.  The intent of  the bill is that land not be                 
  tied up in  any way, until  the Legislature takes action  to                 
  give the lands  to the University through  the appropriation                 
  process.                                                                     
                                                                               
  SARA HANNAN, EXECUTIVE  DIRECTOR, ALASKA ENVIRONMENTAL LOBBY                 
  (AEL),  JUNEAU,  voiced strong  opposition to  SB 250.   She                 
  stated that the University of Alaska's land grant obligation                 
  is fulfilled.   The State of  Alaska has no additional  land                 
  obligation  to the University,  and has monetarily supported                 
  the  University  since  Statehood.   The  University  has no                 
  higher right to State resources than any other agency.                       
                                                                               
  Ms. Hannan continued,  in a time  when we cannot fully  fund                 
  our public schools,  it is  inappropriate to give  resources                 
  worth millions of dollars to the University.                                 
                                                                               
  All Alaskans currently have access  to share the opportunity                 
  to the  use of State  lands.  Putting 350  thousand acres of                 
  State  owned  land  into  the  "private"  ownership  of  the                 
  University   preempts   equal   access.     "Customary   and                 
  traditional  use"  of  the  land,   like  fishing,  hunting,                 
  camping, trapping and  hiking will  only be protected  until                 
  the University development plans conflict with it.                           
                                                                               
                                                                               
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  Ms. Hannan concluded that  fracturing the ownership  platter                 
  of Alaska lands would  not be in the State's  best interest.                 
  If the  lands should  be developed  by the  State, then  the                 
  State  should  lease them.    Giving away  valuable resource                 
  lands, without a plan for future Alaska's land management is                 
  short sighted.                                                               
                                                                               
  DAN   RITZMAN,   NORTHERN   ALASKA   ENVIRONMENTAL   CENTER,                 
  FAIRBANKS,  stated that the Northern Center is opposed to SB
  250 noting that the bill would  remove 350 thousand acres of                 
  public land from public control.                                             
                                                                               
  SB 250 exempts the selected lands from public oversight  and                 
  State land planning requirements.   The University claims to                 
  be concerned about  public input  into it's land  management                 
  although their recent history does not demonstrate this.  He                 
  added that the University tried to fast-track the bill right                 
  past the public.  SB 250 had only one hearing in the Senate,                 
  which was not tele-conferenced.                                              
                                                                               
  Mr. Ritzman noted that the Northern Center  believes that SB
  250 is a "dangerous" bill for public lands.  It would negate                 
  years of good faith  public participation in state land  use                 
  planning, that resulted  in decisions  to retain most  lands                 
  for fish and wildlife habitat, public recreation, and a host                 
  of  other  purposes.     The  University's  draft  financial                 
  management plan indicates that they would like to dispose of                 
  much of their land holdings for cash that can be invested.                   
                                                                               
  Mr. Ritzman noted that SB 250 fails to address the  issue of                 
  contiguity of land ownership.  There  is no provision in the                 
  bill  to  prevent our  land  from being  fragmented further,                 
  which will lead to development  conflicts with existing uses                 
  on neighboring public and  private land.  He  concluded that                 
  the bill would violate the dedicated fund prohibition in the                 
  State constitution.   In addition,  the University does  not                 
  have any more  right to a  land entitlement than the  public                 
  safety providers or the secondary school system.                             
                                                                               
  Representative  Therriault  referenced Page  10,  Section 9,                 
  which speaks to the management and disposition of University                 
  trust lands, with policy to provide for public notice, plans                 
  and  seeking  of public  comments.   He  disagreed  that the                 
  public was being excluded.                                                   
  (Tape Change, HFC 96-113, Side 2).                                           
                                                                               
  Representative  Therriault  MOVED  to  adopt  Amendment  #1.                 
  Representative   Brown  OBJECTED   in  order  to   read  the                 
  amendment.   Amendment #1 was HELD with  the MOTION pending.                 
  Representative Mulder  requested that staff  from Department                 
  of Natural Resources DNR) be present for the next hearing of                 
  SB 250 was heard.                                                            
                                                                               
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  SB 250 was HELD for further discussion.                                      

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