CSSB 67(JUD): "An Act amending provisions of ch. 66, SLA 1991, that relate to reconstitution of the corpus of the mental health trust, the management of trust assets, and to the manner of enforcement of the obligation to compensate the trust; relating to survey requirements applicable to the land to be conveyed by the state to the Alaska Mental Health Trust Authority; relating to the jurisdiction of courts in the resolution of disputes arising under the reconstitution of the corpus of the mental health trust; and providing for an effective date."
00CS FOR SENATE BILL NO. 67(JUD) 01 "An Act amending provisions of ch. 66, SLA 1991, that relate to reconstitution 02 of the corpus of the mental health trust, the management of trust assets, and 03 to the manner of enforcement of the obligation to compensate the trust; relating 04 to survey requirements applicable to the land to be conveyed by the state to the 05 Alaska Mental Health Trust Authority; relating to the jurisdiction of courts in 06 the resolution of disputes arising under the reconstitution of the corpus of the 07 mental health trust; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 22.10.020 is amended by adding a new subsection to read: 10 (j) The superior court is the court of original jurisdiction to hear and determine 11 any dispute arising under AS 37.14.036(c) - (e). 12 * Sec. 2. AS 37.14.009(a), added by sec. 10, ch. 66, SLA 1991, is amended to read: 13 (a) Except for land and minerals managed under AS 38.05.802 - 38.05.809, 14 the [THE] Alaska Mental Health Trust Authority
01 (1) shall 02 (A) manage the assets of the trust in a fiduciary manner to 03 fulfill the purposes of the trust; or 04 (B) contract for management of the assets of the trust under 05 (4) or (5) of this subsection; 06 (2) may, consistent with (1) of this subsection and AS 47.30.036(1), 07 sell, lease, exchange, or otherwise dispose of the land or minerals in the trust; 08 (3) may, consistent with (1) of this subsection, use land that is an asset 09 of the trust directly for the integrated comprehensive mental health program; 10 (4) shall 11 (A) under AS 47.30.031, adopt regulations relating to 12 management and disposal of the land and minerals of the trust; and 13 (B) [MAY] contract with the Department of Natural Resources 14 to manage and dispose of the land and minerals [ASSETS] of the trust, 15 unless the authority determines that the best interests of trust beneficiaries 16 would be served by other arrangements; if, under this subparagraph, the 17 Department of Natural Resources manages and disposes of the land and 18 minerals of the trust, it shall do so 19 (i) in accordance with the regulations adopted by the 20 Alaska Mental Health Trust Authority under (A) of this paragraph; 21 (ii) in a fiduciary manner to fulfill the purposes of the 22 trust; and 23 (5) shall contract with the Alaska Permanent Fund Corporation for 24 management of the trust's cash assets, unless the authority finds that the best interests 25 of trust beneficiaries would be served by contracting with another entity. 26 * Sec. 3. AS 37.14.009(b), added by sec. 10, ch. 66, SLA 1991, is amended to read: 27 (b) In exercising its power under (a)(1) - (3) [(a)(2) OR (3)] of this section, 28 the authority, or the Department of Natural Resources to the extent it is managing 29 or disposing of the land or minerals of the trust under (a)(4) of this section, is not 30 required to comply with AS 38.04 or AS 38.05, except that the authority and the 31 department shall
01 (1) comply with AS 38.05.285; however, the authority and the 02 department are excused from complying with the requirements of AS 38.05.285 03 if disposal or use of trust land or minerals in conformity with that section would 04 conflict with a power, duty, or responsibility of the trustee set out in AS 37.14.007 05 or 37.14.009; 06 (2) give public notice in the manner provided under AS 38.05.945(b) 07 and (c) 08 (A) of a preliminary decision to dispose of trust land or 09 minerals and consider any written comments submitted within 30 days of 10 the giving of the public notice before making a final decision; and 11 (B) of a final decision to dispose of trust land or minerals 12 [, BUT IS NOT OTHERWISE BOUND BY THE PROVISIONS OF AS 38.04 13 OR AS 38.05]. 14 * Sec. 4. AS 37.14.009, added by sec. 10, ch. 66, SLA 1991, is amended by adding a new 15 subsection to read: 16 (c) In exercising its power under (a)(1) - (4) and (b) of this section with 17 respect to land or minerals where there is a protected interest under AS 38.05.802, the 18 authority or, to the extent that it is managing or disposing of the land or minerals of 19 the trust under (a)(4) of this section, the Department of Natural Resources, shall 20 comply with all statutes, regulations, and the common law applicable to conflicts 21 between different owners of the land and mineral interests in the same land. 22 * Sec. 5. AS 37.14.036(c), added by sec. 11, ch. 66, SLA 1991, is repealed and reenacted 23 to read: 24 (c) As compensation (1) for the land and minerals, or interests in them, that 25 constituted the trust established by the enabling Act and that are not reconstituted as 26 part of the mental health trust corpus established under AS 38.05.800, and (2) for any 27 reduction in value to the trust resulting from the management or disposal of land or 28 minerals under AS 38.05.802, the state shall make an annual payment of six percent 29 of the unrestricted general fund revenue of the state during each fiscal year. The 30 commissioner of revenue shall annually allocate that amount from the general fund to 31 the mental health trust income account established in (a) of this section. In this
01 subsection, "unrestricted general fund revenue of the state" means all the categories of 02 accounting for money accruing to the state general fund that, under the statewide 03 accounting system as established on the effective date of ch. 66, SLA 1991, were 04 identified as revenue that was not restricted by law to a specific use. 05 * Sec. 6. AS 37.14.036, added by sec. 11, ch. 66, SLA 1991, is amended by adding new 06 subsections to read: 07 (d) To secure the allocation of amounts required under (c) of this section, 08 except for land and minerals identified in AS 38.05.800(a)(1), land and minerals 09 granted to the state under the enabling Act, and that are, on the effective date of ch. 10 66, SLA 1991, designated by law as a state park, state forest, state game refuge, state 11 wildlife refuge, state game sanctuary, state recreational area, state recreational river, 12 state wilderness park, state marine park, state special management area, state public 13 use area, critical habitat area, bald eagle preserve, bison range, or moose range, are 14 pledged as security to the mental health trust. Title to this land and minerals remains 15 in the state and 16 (1) notwithstanding the grant of the land and minerals to the state under 17 the enabling Act or the pledge of the land and minerals as security, the state may 18 continue to conduct all activities on the land and minerals that are authorized by law; 19 and 20 (2) so long as a default does not exist under (c) of this section, income 21 from that land and minerals shall be deposited in the general fund and considered 22 unrestricted general funds of the state. 23 (e) Upon default, the foreclosure of the land and minerals pledged as security 24 under (d) of this section, including the parcels to be foreclosed and the manner of 25 foreclosure, shall be determined by the superior court. 26 * Sec. 7. AS 38.04.045(b) is amended to read: 27 (b) Before the issuance of a long-term lease under AS 38.05.070 or of a patent 28 for state land, an official cadastral survey shall be accomplished, unless a comparable, 29 approved survey exists that has been conducted by the federal Bureau of Land 30 Management. Before land may be offered under AS 38.05.055, 38.05.057, AS 38.08, 31 or AS 38.09, an official rectangular survey grid shall be established. The rectangular
01 survey section corner positions shall be monumented and shown on a cadastral survey 02 plat approved by the state. For those areas where the state may wish to convey 03 surface estate outside of an official rectangular survey grid, the commissioner may 04 waive monumentation of individual section corner positions and substitute an official 05 control survey with control points being monumented and shown on control survey 06 plats approved by the state. The commissioner may not issue more than one 07 conveyance for each section within a township outside of an official rectangular survey 08 grid. No portion of land to be conveyed may be located more than two miles from an 09 official survey control monument except that the commissioner may waive this 10 requirement on a determination that a single purpose use does not justify the 11 requirement if the existing status of the land is known with reasonable certainty. The 12 lots and tracts in state subdivisions shall be monumented and the cadastral survey and 13 plats for the subdivision shall be approved by the state. Where land is located within 14 a municipality with planning, platting, and zoning powers, plats for state subdivisions 15 shall comply with local ordinances and regulations in the same manner and to the same 16 extent as plats for subdivisions by other landowners. State subdivisions shall be filed 17 and recorded in the district recorder's office. The requirements of this section do not 18 apply to the conveyance of land to the Alaska Mental Health Trust Authority 19 established by AS 47.30.011 or to land made available through a cabin permit system, 20 for material sales, for short-term leases, for parcels adjoining a surveyed right-of-way, 21 or for land that has been open to random staking under the remote parcel program or 22 homestead program in the past; however, for short-term leases, the lessee must comply 23 with local subdivision ordinances unless waived by the municipality under procedures 24 specified by ordinance. In this subsection, "a single purpose use" includes a 25 communication site, an aid to navigation, and a park site. 26 * Sec. 8. AS 38.05.800 is repealed and reenacted to read: 27 Sec. 38.05.800. RECONSTITUTION OF MENTAL HEALTH TRUST 28 CORPUS. (a) The corpus of the mental health trust includes land and minerals 29 granted to the state under the Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, that, on the 30 effective date of ch. 66, SLA 1991, have not been 31 conveyed by the state or reserved by law from the public domain. In this subsection,
01 (1) "conveyed" means that the land or minerals 02 (A) are subject to a contract for the sale of the land entered into 03 by the state or a municipality of the state; 04 (B) are subject to a patent or deed executed in favor of a 05 person, a municipality, or the University of Alaska; 06 (C) are subject to a selection by a municipality under AS 29.65 07 or under former AS 29.18.190 - 29.18.200 that has been approved or 08 disapproved by the director before the effective date of ch. 66, SLA 1991; 09 (D) were purchased by the state with federal, state, or joint 10 federal and state funds in which the related program imposes restrictions on the 11 management or use of the land or minerals purchased; 12 (E) have been selected by a Native corporation under 43 U.S.C. 13 1611; 14 (F) are subject to a claim of allotment under 43 U.S.C. 1634 or 15 is land or minerals for which a certificate of allotment has been issued to a 16 Native under applicable federal law; 17 (G) have been identified for conveyance as part of an exchange 18 agreement between the state and a Native corporation or between the state and 19 the University of Alaska, but the land or minerals were not, on the effective 20 date of ch. 66, SLA 1991, subject to a patent or deed; 21 (H) are subject to an interagency land management agreement, 22 interagency land management transfer, management agreement, or management 23 right and the land or minerals are necessary to carry out the purpose of the 24 interagency land management agreement, interagency land management 25 transfer, management agreement, or management right; 26 (2) "reserved by law from the public domain" means that the land or 27 minerals were, on the effective date of ch. 66, SLA 1991, designated by law as a state 28 park, state forest, state game refuge, state wildlife refuge, state game sanctuary, state 29 recreational area, state recreational river, state wilderness park, state marine park, state 30 special management area, state public use area, critical habitat area, bald eagle 31 preserve, bison range, or moose range.
01 (b) For purposes of reconstituting the corpus of the mental health trust, the 02 land and minerals described in (a) of this section are includable in the trust corpus only 03 if both the land and the minerals meet the requirements of (a) of this section. 04 * Sec. 9. AS 38.05 is amended by adding new sections to read: 05 Sec. 38.05.802. MANAGEMENT OF EXISTING LAND AND MINERAL 06 INTERESTS IN RECONSTITUTED MENTAL HEALTH TRUST CORPUS. (a) 07 Land and minerals included in the corpus of the mental health trust under 08 AS 38.05.800 are subject to the terms, conditions, and provisions, and all rights related 09 thereto, of a lease, land right convertible to title, timber contract, material sale contract, 10 land use permit, right-of-way, prospecting permit, exploration permit, water right, or 11 other land or mineral interest issued by or acquired from the United States or the state 12 before the effective date of ch. 66, SLA 1991. 13 (b) Land and minerals included in the corpus of the mental health trust under 14 AS 38.05.800 are subject to a mining claim or mining leasehold location if the claim 15 or location 16 (1) was acquired on or before the effective date of ch. 66, SLA 1991; 17 (2) was in compliance with applicable laws and regulations that were 18 in effect on the effective date of ch. 66, SLA 1991; and 19 (3) continues in compliance with applicable laws and regulations at all 20 times after the effective date of ch. 66, SLA 1991. 21 (c) The department shall manage an interest in land or minerals that is 22 identified in (a) or (b) of this section as general grant land, subject only to the laws, 23 including regulations and standards, applicable to general grant land of the state and 24 without regard to any law that may be applicable to management of other land or 25 minerals of the trust. However, the proceeds of the management of the land or 26 minerals managed under this section shall be deposited into the mental health trust 27 income account under AS 37.14.036(a)(1). 28 (d) The department shall manage an interest in land or minerals that is 29 identified in (a) or (b) of this section for only as long as the lease, land right 30 convertible to title, timber contract, material sale contract, land use permit, right-of-way, prospecting permit, 31 exploration permit, water right, mining claim, mining
01 leasehold, or other land or mineral interest that qualifies the land or minerals for 02 management under this section continues in effect. When a lease, land right 03 convertible to title, timber contract, material sale contract, land use permit, right-of-way, prospecting permit, 04 exploration permit, water right, mining claim, mining 05 leasehold, or other land or mineral interest identified in (a) or (b) of this section 06 expires, the land or minerals of the trust that were subject to that interest shall be 07 managed under AS 37.14.009. 08 (e) In the case of land subject to a land right convertible to title issued or 09 obtained before the effective date of ch. 66, SLA 1991, the authority shall join in 10 executing the patent or deed that is issued to consummate the issuance of title upon 11 the conversion of the right. When a patent or deed issues under this paragraph, 12 (1) the land covered by the patent or deed and the minerals are no 13 longer part of the corpus of the mental health trust; and 14 (2) the land and minerals are released from the mental health trust 15 established by the enabling Act and from any claim of the authority or of the 16 beneficiaries of the trust. 17 (f) For purposes of (b) of this section, unless closed by court order or by an 18 order of the department, land and minerals obtained by the state under the enabling 19 Act are considered to have been open to mineral entry. 20 Sec. 38.05.804. RIGHT OF INTEREST HOLDER TO WAIVE PROVISIONS. 21 A person who holds an interest described in AS 38.05.802(a) or (b) may enter into an 22 agreement with the authority and with the department to waive the provisions of 23 AS 38.05.802(c) and have the interest managed as provided by AS 37.14.009. 24 Sec. 38.05.809. DEFINITIONS APPLICABLE TO MENTAL HEALTH 25 TRUST LAND. In AS 38.05.800 - 38.05.809, 26 (1) "authority" means the Alaska Mental Health Trust Authority; 27 (2) "enabling Act" means the Alaska Mental Health Enabling Act of 28 1956, P.L. 84-830, 70 Stat. 709; 29 (3) "land right convertible to title" means a lease, entry program right, 30 or homestead right that includes a right to obtain a patent or deed; 31 (4) "land use permit" means a permit issued by the state authorizing the
01 use of land; 02 (5) "lease" means an oil and gas lease, coal lease, mining lease, land 03 lease, and any other surface or mineral lease; 04 (6) "right-of-way" means 05 (A) a right-of-way permit or easement; or 06 (B) a road, utility, or other improvement constructed under an 07 approved land use application, permit, or letter of entry issued by the 08 department and for which a right-of-way permit or easement has not, on the 09 effective date of ch. 66, SLA 1991, been issued; 10 (7) "trust" has the meaning given in AS 47.30.061. 11 * Sec. 10. AS 47.30.046(a), added by sec. 26, ch. 66, SLA 1991, is amended to read: 12 (a) The board shall annually, not later than September 15, submit to the 13 governor and the Legislative Budget and Audit Committee a budget for the next fiscal 14 year and a proposed plan of implementation based on the integrated comprehensive 15 mental health program plan prepared under AS 47.30.660(a)(1). The budget must 16 include the authority's determination of the amount 17 (1) recommended for expenditure from the mental health trust income 18 account during the next fiscal year to 19 (A) meet the administrative expenses of the authority, including 20 the funding for the Department of Natural Resources to manage and 21 dispose of trust land and minerals under AS 37.14.009 and AS 38.05.802 -38.05.809; 22 (B) offset the effect of inflation on the value of the trust corpus; 23 and 24 (C) meet the necessary operating and capital expenses of the 25 integrated comprehensive mental health program; 26 (2) recommended for expenditure from the general fund, if any, during 27 the next fiscal year to meet the necessary operating and capital expenses of the 28 integrated comprehensive mental health program; and 29 (3) in the mental health trust income account, if any, that is not 30 reasonably necessary to meet the projected operating and capital expenses of the 31 integrated comprehensive mental health program that may be transferred into the
01 general fund. 02 * Sec. 11. AS 47.30.056(a), added by sec. 26, ch. 66, SLA 1991, is amended to read: 03 (a) If appropriated by law, the money in the mental health trust income 04 account established in AS 37.14.036 shall be used to 05 (1) provide an integrated comprehensive mental health program as 06 required by this section; 07 (2) meet the authority's annual administrative expenses, including the 08 costs incurred by the Department of Natural Resources in managing and 09 disposing of trust land and minerals under AS 37.14.009 and AS 38.05.802 - 10 38.05.809; and 11 (3) offset the effect of inflation on the corpus of the trust. 12 * Sec. 12. Section 49, ch. 66, SLA 1991, is amended to read: 13 Sec. 49. AS 37.14.011, 37.14.021, [AS 38.05.800,] AS 47.30.546, secs. 1, 2, 14 4, and 5, ch. 132, SLA 1986; and secs. 7 - 10, ch. 48, SLA 1987 are repealed. 15 * Sec. 13. Sections 54, 55, 56, and 57, ch. 66, SLA 1991, are repealed. 16 * Sec. 14. SPECIAL MASTER. The superior court may refer the proceedings under 17 AS 22.10.020(j), added by sec. 1 of this Act, to a special master. 18 * Sec. 15. STATUS OF LAND GRANTED TO THE STATE UNDER THE ALASKA 19 MENTAL HEALTH ENABLING ACT OF 1956 AND NOT INCLUDED WITHIN THE 20 CORPUS OF THE RECONSTITUTED MENTAL HEALTH TRUST. On the effective date 21 of ch. 66, SLA 1991, the land and minerals granted to the state under the Alaska Mental 22 Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, that are not includable within the 23 corpus of the reconstituted mental health trust under AS 38.05.800(a), repealed and reenacted 24 by sec. 8 of this Act, are released from the mental health trust established by that Act and 25 from any claim of the Alaska Mental Health Trust Authority established by sec. 26, ch. 66, 26 SLA 1991, or the beneficiaries of the trust established by the Alaska Mental Health Enabling 27 Act of 1956. 28 * Sec. 16. CONVEYANCE OF LAND TO TRUST. On and after the effective date of ch. 29 66, SLA 1991, after giving public notice in the manner provided under AS 38.05.945(b) and 30 (c), the commissioner of natural resources shall convey by patent without survey to the Alaska 31 Mental Health Trust Authority established by sec. 26, ch. 66, SLA 1991, title to the land and
01 minerals that are includable within the corpus of the reconstituted mental health trust under 02 AS 38.05.800(a), repealed and reenacted by sec. 8 of this Act. 03 * Sec. 17. CONDITIONAL RETROACTIVE APPLICATION. If ch. 66, SLA 1991, takes 04 effect before this Act takes effect, this Act is retroactive to the actual effective date of ch. 66, 05 SLA 1991. 06 * Sec. 18. This Act does not take effect unless ch. 66, SLA 1991, takes effect. 07 * Sec. 19. If this Act takes effect, it takes effect on the effective date of ch. 66, SLA 1991.