CHAIRMAN RIEGER introduced  SB 217  (INCREASE LAND GRANT TO UNIV. OF     F    
 ALASKA) as the first order of business before the committee.                  
                                                                               
 SENATOR FRANK stated that Jack Chenoweth had a new committee                  
 substitute incorporating the previously discussed amendments.                 
                                                                               
 JACK CHENOWETH explained, as does his memorandum, the six changes             
 incorporated in his committee substitute.                                     
                                                                               
 SENATOR MILLER moved to adopt Chenoweth's 1/31/94 work draft of               
 CSSB 217, letter J.  Hearing no objections, it was so ordered.                
                                                                               
 SENATOR LEMAN asked for further explanation of Chenoweth's changes            
 to AS 14.40.365.  MR. CHENOWETH directed Senator Leman to page 4              
 lines 14 - 20 and explained that his expansion of (a)(1) into                 
 (a)(1) - (3) and his new version of (a)(3) attempt to clarify the             
 land selection issue.                                                         
                                                                               
 CHAIRMAN RIEGER asked what the reference to "other than" means.               
 MR. CHENOWETH specified that there are many possessory interests              
 and the five listed on page 4 line 14 are the only ones allowing              
 the university selection; any other possessory interest or                    
 encumbrance not of the five listed cannot be selected by the                  
 university.                                                                   
                                                                               
                                                                               
 Number 182                                                                    
                                                                               
 SENATOR MILLER moved CSSB 217 HES out of committee with individual            
 recommendations.  SENATOR LEMAN objected.                                     
                                                                               
 SENATOR LEMAN stated that the Department of Natural Resources (DNR)           
 has expressed their desire not to include oil and gas lease land to           
 the university, but reserve it for the state.  He did not know if             
 this issue would hamper the bill.  Senator Leman removed his                  
 objection.                                                                    
                                                                               
 SENATOR FRANK acknowledged DNR's objection to include oil and gas             
 land.  He said they should be able to reach a compromise that is              
 reasonable and can be worked on in Resources.                                 
                                                                               
 SENATOR MILLER said that this issue is a policy call.  He stated              
 that at some point the university is a state agency.  He pointed              
 out that good lands should be available to the university for                 
 selection in order to provide income for the university and jobs in           
 the community.                                                                
                                                                               
 BRIAN ROGERS, Vice-President of Finance for the University of                 
 Alaska system, stated support for SB 217 in its current form and is           
 prepared to deal with the oil and gas issue in the next committee.            
                                                                               
 CHAIRMAN RIEGER asked if there were any objections to the motion to           
 move CSSB 217 out of committee with individual recommendations.               
 Hearing no objections, it was so ordered.