[Senate Report 114-322]
[From the U.S. Government Publishing Office]
Calendar No. 595
114th Congress } { Report
SENATE
2d Session } { 114-322
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CONVEYANCE OF THE REVERSIONARY INTERESTS OF THE UNITED STATES IN AND TO
CERTAIN NON FEDERAL LAND IN GLENNALLEN, ALASKA
_______
September 6, 2016.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 2018]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2018) to convey, without consideration,
the reversionary interests of the United States in and to
certain non-Federal land in Glennallen, Alaska, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
PURPOSE
The purpose of S. 2018 is to convey, without consideration,
the reversionary interests of the United States in and to
certain non-Federal land in Glennallen, Alaska.
BACKGROUND AND NEED
In 1961, the Secretary of the Interior patented 210 acres
of land in Glennallen, Alaska, to the Central Alaska Mission
(patent number 1221491) under the Recreation and Public
Purposes Act of 1926 (R&PP Act, 43 U.S.C. 869 et seq.). In
accordance with the Act, the patent contains a reversionary
clause, which provides that title to the land will revert to
the United States if the tract is used for a non-public
purpose. The Central Alaska Mission established a religious
college, the Alaska Bible College, as well as the region's only
radio station and the town's only hospital, on the tract. The
Central Alaska Mission subsequently transferred the patents to
SEND North, another nonprofit organization, under the
provisions of the Act.
SEND North now wishes to sell the land but cannot find a
qualified buyer under the R&PP Act because of the reversionary
clause in the patent. It considered purchasing the reversionary
interest from the United States, but the fair market value of
the tract has been appraised at $210,000, which is more than
the nonprofit organization can afford to pay.
Legislation is needed to convey the reversionary interest
of the United States to the landowner without consideration.
The land is located in the business center of Glennallen,
Alaska. It is not suitable for a park. It is not needed for any
federal purpose or facility, given its location in a remote and
sparsely populated area of east central Alaska. Further, being
inside the Glennallen city limits and under local ordinance,
the land is prohibited from reverting to its natural vegetative
state.
LEGISLATIVE HISTORY
Senator Murkowski introduced S. 2018 on September 9, 2015.
The Subcommittee on Public Lands, Forests, and Mining held a
hearing to consider S. 2018 on April 21, 2016.
The Committee on Energy and Natural Resources met in open
business session on July 13, 2016, and ordered S. 2018
favorably reported.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on July 13, 2016, by a majority voice
vote of a quorum present, recommends that the Senate pass S.
2018.
SECTION-BY-SECTION ANALYSIS
Section 1. Conveyance of reversionary interest, Glennallen, Alaska
Section 1 provides definitions and directs the Secretary to
convey the reversionary interests of the United States in and
to the non-federal land in Glenallen, Alaska to the landowner
without consideration. This section further directs the
Secretary to provide exact legal descriptions of the non-
federal lands and assigns all costs associated with the
conveyance to the landowner.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 25, 2016.
Hon. Lisa Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2018, a bill to
convey, without consideration, the reversionary interests of
the United States in and to certain non-Federal land in
Glennallen, Alaska.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jeff LaFave.
Sincerely,
Keith Hall.
Enclosure.
S. 2018--A bill to convey, without consideration, the reversionary
interests of the United States in and to certain non-Federal
land in Glennallen, Alaska
S. 2018 would direct the Bureau of Land Management (BLM) to
convey, without consideration, a reversionary interest in 210
acres of land in Glennallen, Alaska to SEND North, a non-profit
organization. Based on an analysis of information provided by
BLM, CBO estimates that enacting the bill would reduce
offsetting receipts, which would have the effect of increasing
direct spending, by $105,000 over the 2017-2026 period;
therefore, pay-as-you-go procedures apply. Enacting the bill
would not affect revenues.
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2027.
In 1961, BLM conveyed 210 acres of federal land to a non-
profit organization under the condition that the land be used
for providing education, medical, and religious services. If,
at any time, the affected lands are used for any other purpose,
they would revert back to federal ownership. The bill would
eliminate BLM's reversionary interest in the property allowing
SEND North, the organization currently in possession of those
lands, to use or dispose of the property without restrictions.
In 2011, SEND North entered into negotiations to purchase
BLM's reversionary interest in the affected lands. A subsequent
appraisal determined that the fair market value of the property
was $210,000. On April 7, 2016, BLM published a Notice of
Realty Action in the Federal Register indicating the agency's
desire to conduct a non-competitive sale of the reversionary
interest in the property to Send North. Any proceeds from that
sale will be deposited in the U.S. Treasury as offsetting
receipts. Under the bill, the reversionary interest would be
conveyed to SEND North without consideration.
Because the BLM decision to sell the reversionary interest
to SEND North has not been finalized and no sales agreement has
been reached between the parties, it is uncertain whether the
sale will be completed under current law. However, based on the
parties' mutual interest in consummating the sale, CBO expects
that there is a 50 percent likelihood that a sale will occur
within the next 10 years. Thus, after accounting for that
uncertainty, CBO estimates that enacting the bill would reduce
offsetting receipts by $105,000 over the 2017-2026 period.
S. 2018 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was approved by Theresa Gullo, Assistant Director for
Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 2018. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 2018, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 2018, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Bureau of Land Management at
the April 21, 2016, Subcommittee on Public Lands, Forests, and
Mining hearing on S. 2018 follows:
Statement of Mike Pool, Acting Deputy Director, Bureau of Land
Management, Department of the Interior
Thank you for inviting the Department of the Interior to
testify on S. 2018, which provides for the conveyance of the
Federal government's reversionary interest in certain land
located in the City of Glennallen, Alaska, to SEND North, a
not-for-profit organization located in Anchorage, Alaska. While
the Department supports the goal of conveying the reversionary
interest to SEND North, we cannot support S. 2018 in its
current form. The Department could support S. 2018 if it were
amended to ensure the payment of fair market value for the
conveyance of the reversionary interest.
background
The Bureau of Land Management (BLM) regularly transfers
public land to local governments and nonprofits for a variety
of public purposes. These transfers are typically accomplished
under the provisions of the Recreation and Public Purposes Act
(R&PP) or through direction supplied through specific Acts of
Congress. The R&PP Act is a statute frequently used by the BLM
to help states, local communities, and nonprofit organizations
obtain lands at no or low cost for important public purposes.
Examples include parks, schools, hospitals and other health
facilities, fire and law enforcement facilities, courthouses,
social services facilities, and public works. Because these
lands are transferred at far below market value, R&PP
conveyances and many similarly legislated conveyances include a
reversionary clause requiring that lands be used for public
purposes or revert to the Federal government. Over the years,
the BLM has addressed many requests to release the Federal
government's reversionary interest in such lands and has
consistently required the payment of fair market value for the
reversionary interest.
In 1961, a 210-acre parcel of Federal land was patented to
the Central Alaska Mission under the authority of the R&PP Act.
The Mission came to Glennallen, Alaska, to assist the
Glennallen community and the surrounding area with not-for-
profit educational, medical, and religious services. The patent
was subsequently transferred under the provisions of the R&PP
Act to the non-profit organization SEND North.
The BLM is currently considering a request by SEND North to
purchase at fair market value the Federal government's
reversionary interest in the 210 acres patented in 1961. On
April 7, 2016, the BLM published a Notice of Realty Action in
the Federal Register providing an opportunity to comment on the
proposed sale. The public comment period for this action will
remain open until May 9, 2016. The proposed non-competitive
direct sale is consistent with the BLM's East Alaska Resource
Management Plan approved in September 2007. The BLM understands
that after acquiring the reversionary interest, SEND North
would like to sell or transfer the parcels for commercial
development without threat of reversion for breach of patent
conditions.
s. 2018
S. 2018 would convey, without consideration, the
reversionary interest of the United States in the land
identified in the bill to SEND North, and requires the
organization to pay all costs associated with the conveyance.
The BLM supports the goal of conveying the reversionary
interest in this land to SEND North, but cannot support S. 2018
as currently written. The BLM recommends amending the
legislation to ensure the payment of fair market value for the
reversionary interest.
conclusion
Thank you for the opportunity to testify. We look forward
to working with the sponsor and the Committee to address the
needs of the landowner and the city of Glennallen.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill as ordered
reported.
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