Legislature(1997 - 1998)
04/29/1998 03:50 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 340 - INCREASE LAND GRANT TO UNIV. OF ALASKA
CHAIRMAN HALFORD brought SB 340 before the committee as the next
order of business.
RALPH BENNETT, staff to the Senate Judiciary Committee read the
following sponsor statement into the record:
"The provisions of SB 340 allow the University of Alaska to select
250,000 acres of state land subject to approval by the Legislature.
Land approved for transfer would include interests in minerals and
to oil and gas subject to certain limitations. Also lands subject
to a coal lease or where a lease application is pending are not
available for selection. The University would bear the costs of
selection, platting, surveying and conveyance. All land selections
must be made by December 31, 2012. Twenty percent of income
derived from selected lands must be used at the campus closest to
the income generating parcel(s). All lands conveyed under this
program are exempted from municipal taxation. SB 340 is compatible
with Senator Murkowski's S.660, the legislation, pending in
Congress, that will convey additional public lands to the
University of Alaska.
"The University of Alaska system was created under federal
authority as a land grant institution to provide for the higher
education requirements of Alaska's people in perpetuity. Most
colleges established under the land grant program were endowed with
sizable land bases from which to generate income to be used for
operating purposes. Unlike most institutions in the Lower 48
states, the University of Alaska does not have the relatively
larger population base and proximity to other support services that
are so beneficial. The University of Alaska also suffers from a
smaller pool of alumni and other normal sources of endowment income
which many institutions rely on to help support operations,
especially subsidies for teaching positions.
"In the past decade several legislators have introduced legislation
allowing the University of Alaska to select additional lands from
the State. The purpose of all legislative attempts to provide more
land for the University statewide system has been to provide more
income producing assets where monetary resources are becoming
scarcer and unpredictable. This bill continues the effort to give
the University of Alaska a larger, more productive land base. The
bill also provides clear expectations that land conveyed is to be
used for the development of value added industries where
appropriate."
MR. BENNETT informed the committee that Senator Murkowski's
legislation has been reported out of the last committee of referral
and is headed to the floor for a vote.
MR. BENNETT also presented a section-by-section analysis of SB 340.
He noted there was a proposed committee substitute, which makes a
simple change to Section 5, the section that deals with the new
land selections. The coal industry pointed out that coal leases in
lease applications for coal were not included in the draft, so the
committee substitute would include coal leases and the land for
which a coal lease application is pending that would not be
available to the University for selection.
CHAIRMAN HALFORD asked what happens if the University gets the land
and does nothing with it.
SENATOR TAYLOR said like him he wants to see somebody producing
something on it.
Number 261
SENATOR GREEN referenced page 9, line 22, which is basically the
beginning of a reversionary clause, and she said questioned why
get back into reversionary clauses after spending two years getting
out of one.
MR. BENNETT related that S.660 would grant the University 250,000
acres of federal land, and in order to receive this land, the
University must relinquish 11,852 of valuable inholdings in Alaska.
The University would be eligible to receive an additional 250,000
acres of federal land on a matching basis with the state for a
total of 500,000 additional acres.
CHAIRMAN HALFORD questioned what happens if we don't want them to
give up the only state land owned in those federal enclaves. MR.
BENNETT responded that was a legislative call.
SENATOR TORGERSON said in Section 6, it says the net income goes
into the endowment trust fund, and he asked how the endowment
works.
WENDY REDMAN, Vice President, University of Alaska, explained that,
by statute, the money goes into a land grant trust fund, and the
earnings of the trust fund are what is extended.
SENATOR GREEN referenced subsection (c) on page 10 and commented
that you can't get to the money, that 20 percent of the income
derived from the management of land selections for use on the
closest campuses because, by law, all the proceeds go into the
University trust fund.
MS. REDMAN stated the University would not support that kind of
amendment for a lot of reasons, primarily because the purpose of
the natural resource fund is to support natural resource programs
in Alaska. She said they try to expend the money where the faculty
and staff exist.
MS. REDMAN said this is the fourth version of this type of
legislation that has been introduced over the years, and it is
probably the cleanest version. However, she said there were a
couple of things that were dropped in subsequent bills, and she had
some amendments for the committee's consideration. There are two
issues that are very important to the University. The first one is
on proprietary information. The University is not covered the same
way that the state is for the protection of proprietary information
for people who wish to do leasing, etc., with them, and they would
like to have that protection written into the bill. The second
issue is tort immunity, and they feel it is important for them to
have some sort of immunity while people are out doing their
customary and traditional things on their land.
Returning to Senator Green's reference to a reversionary clause on
page nine, MS. REDMAN said that unless there was some strong reason
for keeping that section in the bill, she would encourage that it
be removed. She said they believe the University can get those
lands into a productive and appropriate development for the state
of Alaska.
Number 498
SENATOR TAYLOR said he likes the provision in there to either "use
it or lose it." He said he wants the University motivated to
harvest the resources or else it might as well go back to the feds.
MS. REDMAN said she thought the University's history of managing
land is a lot better than DNR's history of managing land.
CHAIRMAN HALFORD commented the fact is that the University has a
strong constituency for preservation, and, if they are given the
land without some kind of a push, they are probably not going to
generate much money. Generating money takes active management, and
it takes dealing with conflicts, it takes exploration, it takes
access, numerous things that some people in the University's
constituency don't like.
MS. REDMAN said she didn't think he would see that if he would look
at what the University has been doing in the last 10 years since
they have had possession of their lands.
Number 537
SENATOR LEMAN said if the University had a plan in place for use of
the land, he didn't think the reversionary clause would be as much
of a burden as was suggested.
TAPE 98-37, SIDE B
SENATOR LINCOLN moved an amendment to page 2, line 20, to delete
"to the maximum extent practicable" so that it just says that the
University of Alaska shall manage the land in a manner that permits
customary and traditional uses of the resources of that land.
SENATOR TORGERSON proposed as an amendment to the amendment to
delete "manage" and insert "grant the use of" in its place.
SENATOR TAYLOR proposed to delete after the word "shall" the phrase
"manage the land in a manner that permits" and to insert the word
"allow" in its place.
SENATOR GREEN, speaking against the amendment, said on the one
hand we're saying to take this land, develop it and make money, and
on the other hand, we're saying they can't refuse letting anyone
on the property for any reason.
MS. REDMAN suggested that if that section was going to be left in
the bill, she thought the way it was currently worded worked the
best.
CHAIRMAN HALFORD stated Senator Lincoln's motion to delete "to the
maximum extent practicable" was before the committee. SENATOR
GREEN objected. A hand vote was taken and the amendment failed on
a 1-5 vote.
Number 514
MS. REDMAN requested that the committee consider a conceptual
amendment to subsection (c) on page 10, which provides that 20
percent of the income derived goes to the campus that is located
within the closest proximity. She said it is a very troubling
section to the University, however, she thinks they might be able
to live with it if it were broadened to say "to support resource
development within the region of the campus." SENATOR TAYLOR
voiced his objection to the amendment.
SENATOR LEMAN moved to adopt a confidentiality amendment in the
bill. Hearing no objection, the amendment was adopted.
SENATOR LEMAN moved to adopt an immunity amendment to include the
language in AS 09.65.200. Hearing no objection, the amendment was
adopted.
Number 432
SENATOR GREEN stated she was still uncomfortable with the
reversionary clause language. She moved as an amendment to page 9,
beginning on line 22, to delete paragraph (1) in its entirety.
CHAIRMAN HALFORD called for a show of hands on Senator Green's
amendment, and by a 1-4 vote, the amendment failed.
CHAIRMAN HALFORD stated the amendments adopted by the committee
would be incorporated into a Resources CS.
SENATOR TAYLOR moved CSSB 340(RES) be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
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