SCRA - 2/20/95 SB 16 INCREASE LAND GRANT TO UNIV. OF ALASKA  Number 246 SENATOR TORGERSON introduced SB 16 as the next order of business. SENATOR STEVE FRANK, prime sponsor of SB 16, noted the same legislation was passed by the Senate the previous session, but failed to come to a vote on the House floor during the final hours of that session. The legislation would allow the University of Alaska to select one million acres of unencumbered land from the State of Alaska. The University previously received 112,000 acres of land, which is small by comparison to most of the rest of the western public land states. Some universities in states with much smaller state land grants, such as New Mexico and Oklahoma, have received up to one million acres. SENATOR FRANK believes the legislature should follow through on the intent of the Congressional Moral Act of 1862, which granted states the right to receive public lands to support universities, by increasing the grant to the University and to allow them to develop the lands in a responsible manner and benefit from the revenues that they can generate. With the decline in the state's general fund revenues, providing the University a greater land grant and an opportunity for more revenues from land development would let the University continue to meet its mission with a more diversified financial system of support, he stated. SENATOR FRANK stated the legislation contains adequate protection for the state, and he urged its favorable consideration by the committee. Number 290 SENATOR KELLY asked if there are differences between the bill passed by the Senate last year and this version. SENATOR FRANK said the final version passed by the Senate last year decreased the amount of the land grant from one million acres to 500,000 acres. SB 16 increases it back to the original one million acres. SENATOR R. PHILLIPS commented that he is more favorable to the 500,000 acre figure. Number 332 SENATOR ZHAROFF noted that on a map of Prince of Wales Island, he observed that the community of Whale Pass has a couple of subdivisions and University land is identified within those subdivisions. He asked how the University acquired parts of those subdivisions. SENATOR FRANK answered that those lands are probably part of the existing 112,000 acres granted. Number 350 WENDY REDMAN, Vice President, University Relations, University of Alaska, speaking to other differences between last year's legislation and SB 16, directed attention to page 8, line 9, subsection (n). It provides that if the University is not actively managing the land to provide income within a 10-year period of time, DNR can recover title to those lands. The other change was made in Section 5, on page 8. It requires the University to establish substantially similar regulations for mineral entry, location, and leasing procedures. Number 400 SENATOR R. PHILLIPS questioned a possible conflict between subsection (n) and Section 5. SENATOR FRANK acknowledged that there is and said they will try to find a better way to address it. He said the whole message to the University is to go ahead and develop these lands, but it needs to have language that is workable. WENDY REDMAN added that concern has been expressed on the possibility of the University flooding the market with land, and she agreed that this provision needs to be worked on. She has had discussions with DNR on Section 5 and they have given her some ideas of language changes that would be better for the University and also address the major concern of the mining industry. Number 415 SENATOR HOFFMAN asked if land taken back will be deducted permanently from the amount of land conveyed to the University, or will the University be allowed to select lands in another area. WENDY REDMAN responded it is her understanding is that there is no reselection provision so it is permanently lost. Number 430 SENATOR ZHAROFF asked, in the case of a legal dispute over the land, if the University or the state handles the matter. SENATOR FRANK answered that the state has the final word and that there is no opportunity for the University to take the state to court. Number 445 SENATOR HOFFMAN asked what the rationale was for reducing the figure to 500,000 acres in last year's legislation. SENATOR FRANK answered that he didn't think there was a specific rationale. Number 460 SENATOR KELLY inquired who takes precedence over the University in terms of selecting land. SENATOR FRANK replied that full authority is given to the commissioner of DNR to make those million acres subordinate to any other state interest. Number 490 SENATOR TORGERSON directed attention to some proposed amendments to SB 16 and SENATOR FRANK offered the following overview: Page 4, line 4: Clarifies that the University lands would be considered public lands as they are already in law. Page 7, line 5: Clarifies that earnings from oil and gas development are subject to the permanent fund royalties and bonuses language. Page 7, line 29 and page 8, line 1: Decreases the time frame to make it a more efficient process for the conveyance of the lands. Page 8, lines 5 & 6: Clarifies that the state will bear the cost of recording all documents and deeds. Page 9, line 28: Clarifies that after conveyance if they were to sell the land or put it into mineral production, etc., that the requirement for customary and traditional uses doesn't follow with it after conveyance. Page 9, line 31: Clarifies that until any conveyance is made the property can continue to be used for customary and traditional uses and provides tort immunity to the University except in cases of gross negligence or reckless or intentional misconduct, etc. Page 10, lines 7-12 and line 28: Clarifying language. Number 546 SENATOR KELLY referred to the amendment to page 7, line 28, and asked if it means that the University will be selling some of the land. WENDY REDMAN answered that it is there hope that they would be eventually selling the land to make money for the University. She added that in the past they have improved and converted some of their land into homesites and then sold it for tidy profits. She also clarified that the land conveyed to the University is not subject to taxation until such time as it is sold to private ownership. SENATOR FRANK added that he believes it is the University's intent to get into the actually selling of any this land in a very small and limited fashion, and it is not designed to be a major portion of their overall program. TAPE 95-3, SIDE B Number 001 SENATOR TORGERSON announced that the committee would take testimony on SB 16 over the teleconference network. FRED KLOUDA, testifying from Anchorage and representing the Alaska Sport Fishing Association, stated that with the lack of state control over fish and game resources, they are against conveying land out of public ownership. Number 035 CLIFF EAMES, testifying from Anchorage and representing the Alaska Center for the Environment, voiced their opposition to SB 16 and the transfer of these lands out of general public ownership. They oppose the increased fragmentation of Alaska's land ownership and the severely reduced opportunities for the citizens of Alaska to determine how Alaska's public lands should be managed. He cited numerous problems connected to the transfer of lands to the Mental Health Lands Trust. Number 090 RICK SMERIGLIO, a resident of Moose Pass, testified in opposition to SB 16. He said Moose Pass is a small unincorporated community on the road system that has traditional or recreational use of their private and public lands, as well as a proud tradition of public input. He noted that because of ANCSA (Alaska Native Claims Settlement Act), municipal entitlement, the Mental Health Trust settlement, a lot of the good land in their area has been selected already, and he fears that with another conveyance to the University, Moose Pass will get targeted again. Number 150 RON SWANSON, Director, Division of Lands, Department of Natural Resources, stated he was present in Anchorage to answer questions. Number 155 BRIAN ROGERS, formerly Vice President for Finance at the University of Alaska, addressed issues raised earlier in the meeting. In response to Senator Zharoff's inquiry concerning University land on Prince of Wales Island, he said those subdivisions were received in 1982 as a result of settlement of claims by the University when the state took land away from the University under the Municipal Entitlement Act. Responding to Senator Hoffman's inquiry for examples of some of the University's income from lands, Mr. Rogers related that last year the University earned $10 million, against expenses of around $800,000 for land management. The major activities have been timber, subdivision lands, oil and gas, and commercial leases. He noted the Board of Regents' policy on land favors the University retaining ownership and leasing the land in most circumstances. However, he added that it is not appropriate for subdivisions and for certain commercial development and it is in the University's best interest to sell those lands. In response to Senator Kelly's question on what takes precedence over the University in selecting land, Mr. Rogers said any land that has already been identified by the Legislature for parks, refuges or is otherwise designated by the Legislature is not available to the University for selection under SB 16. Number 230 CHARITY GREEN, a student at the Kenai Peninsula College, pointed out that at the Board of Regents' most recent meeting, they voted to eliminate the consolidation cap and to increase tuition, which, she said, will have a drastic impact on all of the University's campuses. She added that with the budget shortfalls, the students recognize that they have to do their part. She voiced support for SB 16 and urged its passage which, she said, will show the legislators are still concerned about the university's problems and the students' needs. Number 270 JERRY MCCUNE, President, United Fishermen of Alaska, stated support for SB 16, but he does have concerns with certain areas of it, such as the amount of acreage to be conveyed. He suggested extending the time frame for the Board of Regents to adopt policies for an annual plan for management and disposition of university land, as well as limiting where the University might be able to sell the land. Number 300 SENATOR TORGERSON closed the public hearing on SB 16, bringing it back before the committee. Number 302 SENATOR KELLY moved the following amendments be adopted into a committee substitute. Hearing no objection, it was so ordered. Page 4, line 4 Following last sentence insert: "Provided, however, that land conveyed to the University under AS 14.40.365 shall be treated as other public land and shall be managed in accordance with AS. 14.40.366 and regulations promulgated by the University." Page 7, line 5 Following the semicolon (;) insert "and AS 37.13.010;" Page 7, line 29 Delete the period (.) and insert "within one year of request by the University." Page 8, line 1 Following "resources shall" insert "within one year of request by the University" Page 8, line 5 Delete "execution" and insert "recording" Page 8, line 6 Following the period (.) insert "The State shall bear the cost of recording all documents and deeds." Page 9, line 28 Following "University of Alaska shall" insert ",prior to disposal or conveyance to third parties," Page 9, line 31 Add new section to read as follows: *Sec.___. AS 14.40 is amended by adding a new section to read: Sec. 14.40.371. TORT IMMUNITY FOR CLAIMS ARISING ON UNIVERSITY LAND NO IMPROVED BY THE UNIVERSITY. The University of Alaska is not liable in tort, except for an affirmative act that constitutes gross negligence or reckless or intentional misconduct, for property damage or for injury to or death of a person who enters or remains on land owned by the University of Alaska; provided that the above exemption from liability does not apply to claims which arise on that portion of those lands which have been improved and actively maintained by the University of Alaska after its receipt of tide thereto. Page 10, lines 7-12 Delete Page 10, line 28 Delete "or" Following "state property," insert "or property owned by the University of Alaska" Number 315 SENATOR KELLY moved that on page 9, line 3, delete "30" and insert "60" in its place. Hearing no objection, the amendment was adopted. SENATOR KELLY moved that on page 4, line 8, change "one million acres" to "two million acres." After brief discussion, he withdrew the amendment. Number 347 SENATOR PHILLIPS moved that on page 4, line 8, change "one million acres" to "500,000 acres. After brief discussion, he withdrew the amendment. SENATOR ZHAROFF voiced his concern of the University selecting land within an area that has not incorporated as a municipality, but when they do incorporate as a municipality, under their entitlement, they should be able to have the opportunity to select land within that area if the University has not done anything with the land. He said he would possibly offer such an amendment in the Finance Committee. Number 430 SENATOR PHILLIPS moved that CSSB 16(CRA) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.