SENATE BILL NO. 16 An Act relating to the University of Alaska and university land, authorizing the University of Alaska to select additional state public domain land, and defining net income from the University of Alaska's endowment trust fund as 'university receipts' subject to prior legislative appropriation. Co-chairman Halford directed that SB 16 be brought on for consideration. Co-chairman Frank referenced two amendments and explained that Senator Sharp worked with the University to develop an amendment (amendment no. 2) to address his concerns. Amendment no. 1 is a technical amendment deleting the word "displaying" at page 10, line 8, and replacing it with "disposing." Co-chairman Frank than MOVED for adoption of CSSB 16 (CRA) as a working document. No objection having been raised, IT WAS SO ORDERED. Senator Sharp MOVED for adoption of amendment no. 2. Co- chairman Halford announced that there was OBJECTION for purposes of an explanation. Senator Sharp advised that the amendment addresses earlier concerns by members that the state not get into a "Catch 22" situation similar to the mental health lands. The committee seeks to ensure that entry would still be allowed under current Dept. of Natural Resource regulations for filings, leases, mining claims, etc. on lands nominated for selection by the University. Proposed language allows for that under existing Dept. of Natural Resource authority. Provisions within amendment no. 2 specify that 90% of any leases or proceeds from transactions that occur after nomination, during the selection process by the University, would be held in escrow. If the land is indeed transferred to the University, the funds would also be transferred to the University. The 10% would be withheld for processing and Dept. of Natural Resource costs. Co-chairman Halford called for objections or questions concerning the amendment. No objection having been raised, amendment no. 2 was ADOPTED. Co-chairman Frank MOVED and requested unanimous consent for adoption of technical amendment no. 1, explaining that it would correct a typographical error. Senator Zharoff inquired concerning the difference between "displaying" and "disposing." Co-chairman Frank remarked that all the land is on display. Senator Zharoff referenced the section entitled "CUSTOMARY AND TRADITIONAL USES TO BE CONTINUED" at page 10, lines 6 through 11, and asked is subsistence and other uses would continue. Co-chairman Frank responded that they would occur to the extent it is compatible with the use contemplated by the University. That is the intent and part of the reason for tort immunity provisions in the next section of the legislation. Senator Zharoff voiced concern that much would depend upon disposal of the land to a third party. As an example, he voiced his hope that a mining lease or other arrangement with the University would continue to allow for customary and traditional uses. He reiterated concern that disposal to third-party, private ownership would involve other restrictions. Co-chairman Frank acknowledged that the issue depends on use and the degree to which use conflicts with people using the land for customary and traditional uses. He voiced his belief that most of the time there would be no conflict, but he acknowledged that there may be some. It is difficult to lay out every example or circumstance and treat each differently in law. That is why the intent is to maintain customary and traditional uses to the maximum extent practicable. Senator Zharoff asked that he be allowed to work with the sponsor of the legislation on a possible letter of intent. Co-chairman Frank concurred. Co-chairman Halford called for further questions or objections to amendment no. 1. No objection having been raised, amendment no. 1 was ADOPTED. Co-chairman Frank MOVED and requested unanimous consent for passage of CSSB 16 (Fin) with individual recommendations. No objection having been raised, CSSB 16 (Fin) was REPORTED OUT of committee with the following fiscal notes: Dept. of Revenue 0 Dept. of Natural Resources (Land Dev.) 71.0 Dept. of Natural Resources (Info.Res.) 24.0 Dept. of Fish and Game 34.0 University 100.0 Co-chairman Frank and Senators Rieger and Sharp signed the committee report with a "do pass" recommendation. Co- chairman Halford and Senator Zharoff signed "no recommendation." Senator Randy Phillips signed "Do not pass unless amended."