Legislature(1995 - 1996)

03/10/1995 03:47 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 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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