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.