SRES 3/10/95 SB 16 INCREASE LAND GRANT TO UNIV. OF ALASKA  CHAIRMAN LEMAN called the Senate Resources Committee meeting to order at 3:47 p.m. and announced SB 16 to be up for consideration. SENATOR FRANK said this bill would allow the University to select one million acres subject to a rigorous set of constraints established to protect the state's interest. The University is a land grant university, as are many universities in the western states, but its land grant is small in comparison to other land grant universities. This would give the university a greater opportunity to earn revenues from lands and enable it to be less dependent on general funds in the future. WENDY REDMAN, University of Alaska, explained that the University has not functioned as a land grant university, because they have no land. In other many other states, the land grant system actually supports their university, she said. MARTY EPSTEIN, Director of Land Management, said he was available to answer questions. CLIFF EAMES, Alaska Center for the Environment (ACE), opposed SB 16. He stated the ACE doesn't dispute a need for a reasonable share of ample funding going to the University. They opposed the increased fragmentation of land ownership and management patterns which result in severely reduced opportunities for the citizens of Alaska. They are also concerned that dedicating revenue to the University is constitutional. He noted that the lands have not been identified and they would no longer be managed for multiple public uses which is extremely important. R.B. STILES, Orven Corp., testified against SB 16. He said that although the University of Alaska received less land than some other Universities in the West, the State of Alaska received substantially more land under their land grant than any of the Western States. He questioned whether granting land to the University is a dedication of funds which is prohibited by the State Constitution. He said it was clear, in reading through the type of lands that could be selected, that there were lands with coal and mineral leases which he thought invited the same kind of litigation that happened with the Mental Health Trust lands issue. Finally, he commented that land grant colleges throughout the West got their lands from the federal government and not from their state governments. THOMAS WARNER, Bethel resident, said he saw very little opportunity for public participation in the selection process and the determination of the use of the revenue stream to be derived from the lands. He also viewed the Governor and Commissioner as having a lot of power and thought one million acres was excessive. Number 228 ED DAVIS, Alaska Wilderness Recreation and Tourism Association (AWRTA), said that transferring this large amount of land to the University would have a huge impact on the resources that tourism depends on and that the selection process did not have much protection for the multiple use of lands. MR. DAVIS said that he hadn't received adequate notice that this bill was being heard. SENATOR LEMAN stated that SB 16 was introduced on January 16, 1995 and has already been heard in the Senate Community and Regional Affairs Committee. The Senate Resources Committee posted the committee meeting schedule eight days ago. Further, he said he didn't expect it to move from committee today and invited his additional comments. Number 312 RIKI OTT, United Fishermen of Alaska (UFA), opposed SB 16. UFA's main concern was the scope of the land disposal which would affect natural resource management across the state. I was also concerned that the Board of Regents would be managing those resources versus public control multiple use. It is very concerned with the "use it or lose it" clause. There is also the issue of this being a dedicated source of funds which may be unconstitutional, she said. BRENDA WILCOX, Coghill Wilcox & Associates, supported SB 16. She said she was President for the Alumni Association for UAF and sat on the Board of Directors for six years. When land was first granted to the University in the Tanana Valley, they were given only 9,000 acres, because of the difficulty in surveying it without satellite technology which we now have. The University actively manages their lands, because they need the revenues, she said. MS. WILCOX said one of the main reasons against Alaska receiving statehood, at the national level, was it was felt Alaska didn't have a tax base to pay for governmental services. That is one of the reasons the state was given an unprecedented 105 million acres to manage. The 105 million acres was intended to help us fund the University of Alaska. There are now three campuses instead of one and the costs are ever-increasing. SARAH HANNAN, Alaska Environmental Lobby (AEL), said she is an alumni of the University of Alaska and a former member of the Board of Regents. She is here to do the best for the University, but transferring one million acres of what is public domain land to a private entity would present a number of complex policy issues. She thought other agencies across the state could say they have an equal right to provide some guaranteed revenue and perhaps an endowment. MS. HANNAN pointed out that endowment and land grant are not the same thing. She said there is no guarantee that the University would make enough money to sustain itself even if they are given land. She asked the Legislature what the state's obligation was to provide general fund sources to the University. Because AEL is composed of a network of people who live across Alaska, she opposed this legislation saying someone or something lives on all that land. She asked if public domain land goes to private ownership of the University, would the interests of private users be taken into account. SENATOR LEMAN asked if she had taken a position on compensation of private property owners for loss of use of the land. MS. HANNAN said AEL's position would be consistent with what she has stated here.   SENATOR LEMAN stated that Section 5 on page 10, lines 6 -11, where it says the University shall manage the land in a manner that permits those customary and traditional uses of the resources, is intended to cover her concerns with multiple use. NICO BUS, Department of Natural Resources, opposed SB 16. He said the Administration is concerned with the revenue stream for the State of Alaska and splitting up the current land base. He said the key issue was the long term fiscal implications for the state. SENATOR HOFFMAN asked what the Department's position would be if the acreage were to be reduced by half of the requested amount. MR. BUS said the overall fiscal impact would need evaluation before a position could be taken. SENATOR HOFFMAN asked if his recommendation to the Governor would be to veto this bill as it exists. MR. BUS said it was. He said DNR had submitted a fiscal note to the Governor on March 9. SENATOR HOFFMAN asked if he knew what the breakdown of the percentage of land is in the State of Alaska between federal, state, native corporations, and private? MR. BUS didn't have that information. Number 507 MS. REDMAN said, in response to a statement made by Riki Ott, that the University land is not treated as private land; it is treated as public land. MS. REDMAN noted a typo error on page 10, line 8. The word "displaying" should be "disposing." SENATOR LEMAN thanked her and everyone for their participation and said SB 16 would be held for further work.