Legislature(2021 - 2022)BUTROVICH 205

03/15/2021 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SJR 8 COMPLETION OF UNIVERSITY LAND GRANT TELECONFERENCED
Moved CSSJR 8(RES) Out of Committee
-- Invited & Public Testimony --
+= SB 64 SHELLFISH PROJECTS; HATCHERIES; FEES TELECONFERENCED
Moved SB 64 Out of Committee
-- Invited & Public Testimony --
*+ SB 79 HUNTING/TRAPPING/FISHING: DISABLED VETS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
           SJR  8-COMPLETION OF UNIVERSITY LAND GRANT                                                                       
                                                                                                                                
3:34:13 PM                                                                                                                    
CHAIR  REVAK   announced  the   consideration  of   SENATE  JOINT                                                               
RESOLUTION NO.  8 Urging the  Alaska delegation in  Congress, the                                                               
United States  Department of  the Interior,  and the  Governor to                                                               
facilitate  the  completion of  a  land  grant endowment  to  the                                                               
University of Alaska.                                                                                                           
                                                                                                                                
He requested a motion to adopt the committee substitute (CS).                                                                   
                                                                                                                                
3:34:29 PM                                                                                                                    
SENATOR MICCICHE moved to adopt the  CS for SJR 8, work order 32-                                                               
LS0420\B, as the working document.                                                                                              
                                                                                                                                
3:34:43 PM                                                                                                                    
CHAIR REVAK objected for discussion purposes.                                                                                   
                                                                                                                                
3:34:53 PM                                                                                                                    
SENATOR GARY  STEVENS, speaking as  sponsor of SJR 8,  stated the                                                               
University of Alaska (UA) refers  to its situation as being  land                                                               
deficit.   He  encouraged  the  committee  to  read  the  resolve                                                               
section of  the resolution which  urges the  Alaska congressional                                                               
delegation to create a permanent land endowment.                                                                                
                                                                                                                                
3:35:31 PM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature, Juneau,  Alaska, stated  that SJR  8, version  B, is                                                               
the result  of a collaborative  effort between the  University of                                                               
Alaska and  the Department  of Natural  Resources (DNR)  to craft                                                               
language to help resolve the  university's ongoing  land deficit                                                                
situation.                                                                                                                      
                                                                                                                                
CHAIR REVAK found no questions and  asked him to proceed with the                                                               
summary of changes.                                                                                                             
                                                                                                                                
3:36:19 PM                                                                                                                    
MR. LAMKIN  briefly mentioned  that changes No.  1 through  No. 7                                                               
were  a  collaboration  between  UA  and  DNR  to  find  mutually                                                               
agreeable  language.  Mr.  Lampkin   then  highlighted  the  more                                                               
substantive change No.  8. The Summary of Changes  from version A                                                               
to version B read as follows:                                                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Change #1                                                                                                              
        Page 1, Line 2, following "facilitate"                                                                                  
        Delete: "the completion of"                                                                                         
        Insert: "urging the Alaska delegation in Congress to                                                                
        reintroduce  the   University   of   Alaska   Fiscal                                                                    
        Foundation Act; and urging the Department of Natural                                                                    
        Resources to work with  the University of  Alaska to                                                                    
        identify lands suitable for the land endowment.                                                                         
                                                                                                                                
     Change #2                                                                                                              
        (Version A) Page 1, Lines 13-15                                                                                         
        Delete:  "Whereas,   the   United  States   Congress                                                                
        intended for the Alaska State Legislature to provide                                                                    
        the University of Alaska with a  land endowment from                                                                    
        Alaska Statehood Act land;"                                                                                             
                                                                                                                                
     Change #3                                                                                                              
        Page 2, line 16, following "government,"                                                                                
        Delete:  "and   the  land   grant  deficit   remains                                                                
        unremedied;"                                                                                                            
        Insert: "leaving  the University  of Alaska  with an                                                                
        inadequate and deficit land endowment;"                                                                                 
                                                                                                                                
     Change #4                                                                                                              
        Page 2, Line 26, following "which"                                                                                      
        Delete: "lands"                                                                                                     
        Insert: "up to 360,000 acres of land"                                                                               
                                                                                                                                
     Change #5                                                                                                              
        Page 3, line 1, following "resolution"                                                                                  
        Insert: "as soon as possible"                                                                                       
                                                                                                                                
     Change #6                                                                                                              
        Page 3, lines 1-2, following "will"                                                                                     
        Delete: "facilitate the creation of a permanent land                                                                
        endowment for the University of Alaska,"                                                                                
        Insert: "address  this long-standing  land endowment                                                                
        issue,"                                                                                                                 
                                                                                                                                
     Change #7                                                                                                              
        Page 3, line 3, following "requirements"                                                                                
        Delete:   "and   will   remedy    the   university's                                                                
        longstanding land grant deficit                                                                                         
        Insert: "and provide  the University of  Alaska with                                                                
        an appropriately sized land  endowment proportionate                                                                    
        to the great natural resources of the state;"                                                                           
                                                                                                                                
     Change #8                                                                                                              
        Page 3, two new sections inserted as follows:                                                                           
        "FURTHER RESOLVED that the  Alaska State Legislature                                                                
        respectfully urges the Alaska delegation in Congress                                                                    
        to  reintroduce  the  University  of  Alaska  Fiscal                                                                    
        Foundation Act; and be it                                                                                               
                                                                                                                                
        FURTHER RESOLVED that  the Alaska  State Legislature                                                                
        respectfully  urges   the   Department  of   Natural                                                                    
        Resources to continue to work cooperatively with the                                                                    
        university of Alaska to prioritize identification of                                                                    
        lands suitable for the land endowment.                                                                                  
                                                                                                                                
     Change #9                                                                                                              
        Page 3, under "Copies                                                                                                 
        Delete: "Scott de la Vega, Acting"                                                                                  
        Insert: "Deb Haaland"                                                                                               
                                                                                                                                
3:37:31 PM                                                                                                                    
CHAIR REVAK turned to invited testimony for SJR 8.                                                                              
                                                                                                                                
3:37:43 PM                                                                                                                    
ED FOGELS, Advisor  to the Land Management  Office, University of                                                               
Alaska,  Anchorage,  stated  he  was  retained  and  specifically                                                             
tasked   with   obtaining   the   UA     remaining   land   grant                                                               
entitlements.                                                                                                                   
                                                                                                                                
MR.  FOGELS  gave  a slide  presentation  titled  "University  of                                                               
Alaska  Land  Grant  Status  (Senate  Joint  Resolution  8)."  He                                                               
explained  the problem  is the  university has  not received  its                                                               
full land grant entitlement from the federal government.                                                                        
                                                                                                                                
MR. FOGELS provided  a brief history of land  grants promised the                                                               
university  on  slide 2.  Under  the  Morrill  Act and  the  1915                                                               
Wickersham  Act, there  was an  expectation of  90,000 acres  and                                                               
270,000  acres,   respectively.  These  two  federal   acts  were                                                               
superseded  by  the Alaska  Statehood  Act,  so the  university's                                                               
270,000  acres were  rolled  into the  state's  103 million  acre                                                               
endowment.                                                                                                                      
                                                                                                                                
MR.  FOGELS  stated, to  date,  the  university received  111,000                                                               
acres  of  federal land.  This  along  with state  and  municipal                                                               
sources, private  gifts and bequests,  and UA  land acquisitions,                                                               
puts the  university's current land  portfolio at  151,000 acres,                                                               
which leaves the land grant deficit at 360,000 acres.                                                                           
                                                                                                                                
MR. FOGELS displayed a synopsis  of the university's 151,000-acre                                                               
land  holdings  on  slide  3. The  charts  indicate  two  percent                                                               
(12,000 acres)  of the  holdings are  in an  educational category                                                               
which  includes campuses,  research sites  and other  facilities.                                                               
Twenty-seven  percent (139,000  acres) of  the holdings  generate                                                               
revenue  and  are  invested in  sales/leases,  forest  resources,                                                               
mining and  material, mitigation  management, oil, gas  and coal.                                                               
The chart  also indicates  that a majority  of the  endowment, 71                                                               
percent  or  360,000 acres  of  university  holdings is  missing,                                                               
which essentially  translates into lost  revenue, as seen  on the                                                               
next slide.                                                                                                                     
                                                                                                                                
MR. FOGELS  turned to slide  4 that compared the  university land                                                               
grant acreage to  that of the University of Texas  and the Alaska                                                               
Mental  Health Trust  Authority  (AMHTA).  Despite an  incomplete                                                               
land endowment, UA has generated  more than $220 million from its                                                               
trust  land assets  since  the 1980s.  The  chart indicates  that                                                               
while UA's investments did proportionately  well in 2019 compared                                                               
to  AMHTA,  UA lacked  in  cumulative  earnings compared  to  the                                                               
University of Texas. The chart  emphasizes the effect the missing                                                               
360,000 acres  has had on  UA's ability to generate  revenue over                                                               
time.                                                                                                                         
                                                                                                                                
3:40:55 PM                                                                                                                    
SENATOR  REVAK requested  Mr. Fogels  pause for  a question  from                                                               
Mr. Lampkin.                                                                                                                    
                                                                                                                                
MR. LAMPKIN clarified  a misstatement. He said  the University of                                                               
Texas generated $21.4 billion, not 21.4 billion acres.                                                                          
                                                                                                                                
MR. FOGELS apologized for the  misstatement and advanced to slide                                                               
5  regarding fulfilling  the university's  land grant.  He stated                                                               
that without question,  UA could generate more  revenue over time                                                               
with  the  infusion  of  a   robust  land  endowment.  The  state                                                               
attempted  to  remedy  the  land   deficit  with  a  250,000-acre                                                               
conveyance to the university in  2000. However, in 2009 an Alaska                                                               
Supreme  Court   decision  ruled  the  conveyance   violated  the                                                               
"prohibition on dedicated  funds,so   the land  was reconveyed to                                                               
the state.  Mr. Fogels stated  the federal  government's position                                                               
is that its obligation to  the university has been satisfied; the                                                               
university land  was included  in the  Alaska Statehood  Act land                                                               
grant.                                                                                                                          
                                                                                                                                
MR. FOGELS  advanced to  slide 6 and  recapped roadblocks  to the                                                               
land  deficit  problem.  Mainly,  he  restated  that  state  land                                                               
dedications are  unconstitutional, and remedies that  rely solely                                                               
on  additional   federal  lands  are  resisted   by  the  federal                                                               
government.  He suggested  a solution  which bypasses  both these                                                               
obstacles,  uses  an  alternate land  conveyance  mechanism,  and                                                               
works in  cooperation with  the Alaska  congressional delegation,                                                               
the governor, DNR and the Department of the Interior.                                                                           
                                                                                                                                
MR. FOGELS introduced the University  of Alaska Fiscal Foundation                                                               
Act on slide 7:                                                                                                                 
                                                                                                                                
                      University of Alaska                                                                                      
                     Fiscal Foundation Act                                                                                      
                                                                                                                                
     • Federal legislation by Alaska's Congressional Delegation                                                                 
                                                                                                                                
     • Establishes program within Bureau of Land Management to                                                                  
        identify and convey available lands to UA from lands                                                                    
        selected by State of Alaska                                                                                             
                                                                                                                                
MR.  FOGELS stated  that this  federal legislation  establishes a                                                               
federal program by  which the Department of  the Interior conveys                                                               
360,000 acres of federal land to the University of Alaska.                                                                      
                                                                                                                                
MR. FOGELS reiterated that 105  million acres of land was granted                                                               
the state  in the Alaska  Statehood Act,  5 million of  which has                                                               
yet to  be conveyed. Under  this federal program,  the Department                                                               
of the Interior  would deduct 360,000 acres  from the outstanding                                                               
5  million and  convey  it  directly to  UA  instead  of DNR  for                                                               
management.                                                                                                                     
                                                                                                                                
     • Framework for UA and State to jointly identify up to                                                                     
        360,000 acres                                                                                                           
                                                                                                                                
     • U.S. Dept. of Interior will provide technical assistance                                                                 
        identifying lands for inclusion in program                                                                              
                                                                                                                                
     • Delegation working towards reintroduction in 117th                                                                       
        Congress                                                                                                                
                                                                                                                                
MR. FOGELS stated that although  this legislation did not succeed                                                               
last year, the intention is to reintroduce it in this Congress.                                                                 
                                                                                                                                
3:45:11 PM                                                                                                                    
SENATOR MICCICHE questioned why it  says "up to 360,000 acres" on                                                               
page 2, line 25 of the  bill. He also asked for verification that                                                               
360,000 was the maximum acreage to be conveyed.                                                                                 
                                                                                                                                
MR. FOGELS confirmed  that the maximum allotment  in this program                                                               
is  360,000  acres; it  is  the  sum  total  of the  Morrill  Act                                                               
endowment  and the  1915 Wickersham  Act  endowment. He  stressed                                                               
that the university's goal is  to receive the full 360,000 acres,                                                               
but for drafting purposes "up to" allows room to negotiate.                                                                     
                                                                                                                                
3:46:32 PM                                                                                                                    
SENATOR  KIEHL noted  that the  state has  already applied  for a                                                               
great deal  more than 5  million acres and the  university's land                                                               
is  to be  derived  from these  acres. He  asked  if the  federal                                                               
legislation which  SJR 8 encourages,  pertains strictly  to lands                                                               
for  which the  state  has  already applied,  or  if the  federal                                                               
legislation  proposes to  change  priority orders  or areas  from                                                               
which an application may be submitted.                                                                                          
                                                                                                                                
MR. FOGELS confirmed the state  has already filed selections on 5                                                               
million acres, and added, the  state actually over-selected about                                                               
10 million acres.  In addition, the state has  another 10 million                                                               
acres in  top filings.  He explained  the federal  government has                                                               
the  authority  to  preclude  land   from  conveyance,  known  as                                                               
withdrawals,  but  can  later  decide  to  lift  the  withdrawal.                                                               
Perchance the  federal government  lifts a withdrawal,  the state                                                               
is then free to choose from its selection of top filed lands.                                                                   
                                                                                                                                
MR.  FOGELS stated  the state's  role is  to submit  requests for                                                               
conveyance from  the Department  of the  Interior. He  thinks the                                                               
current policy is  to wait a bit, request  the federal government                                                               
lift some top filings, and try to obtain land of greater value.                                                                 
                                                                                                                                
SENATOR KIEHL asked if the  Alaska Fiscal Foundation Act operates                                                               
within the  current framework that  exists between the  state and                                                               
the federal government (the one  notable exception being that the                                                               
360,000-acre  conveyance travels  directly  to UA  as opposed  to                                                               
through  DNR),  and if  not,  would  the  Act alter  top  filing,                                                               
selection and withdrawal procedures.                                                                                            
                                                                                                                                
MR.  FOGELS   answered  correct,   although  the   Alaska  Fiscal                                                               
Foundation Act  would redirect 360,000  of the  state's remaining                                                               
5 million acres  directly to the  university, it does  not affect                                                               
the foundation of the state's land grant.                                                                                       
                                                                                                                                
3:50:14 PM                                                                                                                    
CHAIR REVAK  removed his  objection to the  adoption of  CSSJR 8,                                                               
work order  32-LS0420\B. There being no  further objection, CSSJR
8  was  adopted.  Senator  Revak offered  the  floor  to  Senator                                                               
Stevens for final remarks.                                                                                                      
                                                                                                                                
3:50:40 PM                                                                                                                    
SENATOR STEVENS  said the resolution  was a big step  forward for                                                               
the university and it was long awaited.                                                                                         
                                                                                                                                
3:50:48 PM                                                                                                                    
CHAIR REVAK  opened public testimony  on SJR 8; finding  none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
CHAIR REVAK  stated that it  is important to make  the university                                                               
whole and solicited a motion to move the bill from committee.                                                                   
                                                                                                                                
3:51:42 PM                                                                                                                    
SENATOR  MICCICHE  moved  to  report  CSSJR  8,  work  order  32-                                                               
LS0420\B,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
3:51:55 PM                                                                                                                    
CHAIR REVAK  stated, without objection, CSSJR  8(RES) is reported                                                               
from the Senate Resources Standing Committee.                                                                                   

Document Name Date/Time Subjects
SJR08_UnivAK-Land-Grant_Summary-of-Changes_Version A to B.pdf SRES 3/15/2021 3:30:00 PM
SJR 8
SJR08_UnivAK_Landgrant_BillText_Version B.pdf SRES 3/15/2021 3:30:00 PM
SJR 8
SJR08_UnivAK_LandGrant_Research_Presentation_12March2021.pdf HRES 4/12/2021 1:00:00 PM
SRES 3/15/2021 3:30:00 PM
SJR 8
SB 79 - Sectional Analysis version A.pdf SRES 3/15/2021 3:30:00 PM
SB 79
SB 79 - Sponsor Statement version A.pdf SRES 3/15/2021 3:30:00 PM
SB 79
SB064 Nancy Hillstrand oppose 2.22.21.pdf SRES 3/15/2021 3:30:00 PM
SB 64
SB 79 RHAK Support Letter Support 3.15.21.pdf SRES 3/15/2021 3:30:00 PM
SB 79
SB064 Milo Adkinson Oppose 3.15.21.pdf SRES 3/15/2021 3:30:00 PM
SB 64