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CSSB 67(2D FIN): "An Act relating to the mental health land trust and the mental health land trust litigation, Weiss v. State, 4FA-82-2208 Civil; and providing for an effective date."

00CS FOR SENATE BILL NO. 67(2d FIN) 01 "An Act relating to the mental health land trust and the mental health land 02 trust litigation, Weiss v. State, 4FA-82-2208 Civil; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. FINDINGS AND PURPOSE. (a) The legislature finds 06 (1) the United States Congress passed the Alaska Mental Health Enabling Act, 07 P.L. 84-830, 70 Stat. 709 (1956), "[t]o confer upon Alaska autonomy in the field of mental 08 health, transfer from the Federal Government to the Territory the fiscal and functional 09 responsibility for the hospitalization of committed mental health patients, and for other 10 purposes;" 11 (2) in sec. 202 of the Alaska Mental Health Enabling Act, the Congress 12 granted the territory the right to select up to 1,000,000 acres of federal land to serve as a 13 source of funds to support the territory's mental health program; 14 (3) in subsection 202(e) of the Alaska Mental Health Enabling Act, the

01 Congress provided that the land so granted, along with the income from the land and proceeds 02 from dispositions of the land, were to be administered "as a public trust and such proceeds 03 and income shall first be applied to meet the necessary expenses of the mental health program 04 of Alaska," that "[s]uch lands, income, and proceeds shall be managed and utilized in such 05 manner as the Legislature of Alaska may provide," that the land "may be sold, leased, 06 mortgaged, exchanged, or otherwise disposed of in such manner as the Legislature of Alaska 07 may provide, in order to obtain funds or other property to be invested, expended, or used by 08 the Territory of Alaska," and that the Alaska legislature must exercise this broad authority "in 09 a manner compatible with the conditions and requirements imposed by this Act"; 10 (4) the Alaska Mental Health Enabling Act grant was "confirmed and 11 transferred to the State of Alaska upon its admission" to the Union under sec. 6(k) of the 12 Alaska Statehood Act, P.L. 85-508, 72 Stat. 339 (1958); 13 (5) in State v. University of Alaska, 624 P.2d 807 (Alaska 1981), the Alaska 14 Supreme Court held that the Alaska State Legislature has plenary authority over all state land 15 under art. VIII, sec. 2, of the Alaska Constitution, and that the legislature may remove from 16 trust status any land obtained by the state in trust if the trust is compensated for the fair 17 market value of that land; 18 (6) chapters 181 and 182, SLA 1978, removed from trust status all original 19 mental health land obtained by the state under the Alaska Mental Health Enabling Act and 20 redesignated it as general grant land, but the trust was not directly compensated for that land; 21 (7) in State v. Weiss, 706 P.2d 681 (Alaska 1985), the Alaska Supreme Court 22 held that the 1978 legislation removing mental health land from trust status and redesignating 23 it as general grant land was a breach of the federally created trust because the trust was never 24 directly compensated for that land, that it was not reasonable to infer that the legislature 25 intended to compensate the mental health trust for all of the original mental health land, that 26 the 1978 redesignation legislation therefore was invalid, and that the appropriate remedy was 27 to return the original mental health land still in state ownership to trust status but, "[t]o the 28 extent former mental health lands have been sold" between 1978 and the date of the court's 29 decision, "the trust must be compensated for the fair market value of the land at the time of 30 sale" with the state entitled to a set-off against that monetary liability for state mental health 31 expenditures during the same period;

01 (8) since statehood, approximately 500,000 acres of original mental health land 02 have been purchased by, conveyed to, or leased by third parties, have been the object of 03 significant development expenditures by third parties, have been conveyed or tentatively 04 approved for conveyance to municipalities, have been placed in legislatively designated areas 05 such as parks, wildlife refuges, and state forests, and have been used by state agencies; 06 (9) the plaintiffs in the Weiss litigation have questioned the validity of those 07 dispositions and uses of original mental health land and in 1990 filed lis pendens on all 08 original mental health land, but have not yet presented the question of the validity of those 09 dispositions and uses to the court for adjudication; 10 (10) not validating those dispositions and uses of original mental health land 11 and, as a result, not removing the legal basis for the lis pendens filed by the Weiss plaintiffs 12 would be contrary to the requirement of art. VIII, sec. 2, of the Alaska Constitution that the 13 legislature "provide for the utilization, development, and conservation of all natural resources 14 belonging to the State, including land and waters, for the maximum benefit of its people;" 15 (11) the questions the Weiss plaintiffs have raised regarding the validity of 16 those dispositions and uses and the lis pendens that they have filed have resulted in substantial 17 criticism of and hostility directed against the mental health trust and the trust's beneficiaries; 18 (12) the original 1,000,000 acre mental health land grant has not generated in 19 the past, and is not likely to generate in the future, sufficient income and proceeds to fully 20 fund the state's mental health program, and the beneficiaries of the mental health trust have 21 been, and will continue to be, dependent on unrestricted state revenue to fund much of the 22 state's mental health program; 23 (13) because of the criticism and hostility directed against the mental health 24 trust and the trust's beneficiaries, failure to resolve the Weiss litigation and validate the 25 dispositions and uses of original mental health land and remove the legal basis for the lis 26 pendens filed by the Weiss plaintiffs will make it increasingly difficult for the beneficiaries 27 of the mental health trust and those concerned about the beneficiaries to obtain appropriations 28 of unrestricted state revenue to fund the state's mental health program; 29 (14) it therefore is in the public interest and in the best interests of the mental 30 health trust and the trust's beneficiaries to exercise the legislature's power under the Alaska 31 Mental Health Enabling Act and art. VIII, sec. 2, of the Alaska Constitution to confirm and

01 ratify the validity of the dispositions and uses of original mental health land and, by answering 02 the questions regarding the validity of those dispositions and uses of original mental health 03 land, remove the legal basis for the lis pendens filed by the Weiss plaintiffs; 04 (15) it is in the best interests of both the public and the beneficiaries of the 05 mental health trust to resolve the Weiss litigation on terms that are fair to both the public and 06 the beneficiaries of the mental health trust; 07 (16) such a resolution can be accomplished by exercising the legislature's 08 power under the Alaska Mental Health Enabling Act and art. VIII, sec. 2, of the Alaska 09 Constitution, through amending ch. 66, SLA 1991, 10  (A) to return certain original mental health land to trust status; 11  (B) to ratify and confirm the removal from trust status of certain 12 original mental health land and the validity of dispositions and uses of that land, 13 including but not necessarily limited to certain original mental health land 14  (i) that has been purchased by, conveyed to, or leased by third 15 parties; 16  (ii) on which third parties have made significant development 17 expenditures; 18  (iii) that has been conveyed to or tentatively approved for 19 conveyance to municipalities; 20  (iv) that has been placed in legislatively designated areas like 21 parks, wildlife refuges, and state forests; or 22  (v) that is used by state agencies; 23  (C) to make clear that the legislature intends to compensate the mental 24 health trust for the original mental health land removed from trust status by this Act 25 through a combination of replacement land and state general fund money; 26  (D) to designate certain other state land as mental health land as partial 27 compensation and in exchange for original mental health land not returned to trust 28 status; 29  (E) to identify state mental health expenditures since 1978 to be set-off 30 against state monetary liability to the trust for original mental health land not returned 31 to trust status; and

01  (F) to satisfy additional state monetary liability to the trust for original 02 mental health land not returned to trust status with state general funds, to provide that 03 those funds will first be appropriated to fund the state's mental health program, and 04 to provide for the transfer of any unappropriated balance to the unrestricted general 05 fund for appropriation for other public purposes as permitted by the Alaska Mental 06 Health Enabling Act; 07 (17) since 1978, state mental health expenditures have totaled more than 08 $1,300,000,000; 09 (18) the sum of the value of the other state land designated as mental health 10 trust land under this Act and the total of state mental health expenditures since 1978 exceeds 11 the value of the original mental health land not returned to trust status under this Act; 12 (19) the management of land designated under this Act as mental health trust 13 land will have significant administrative costs that will reduce the trust's net income and 14 proceeds; 15 (20) the Department of Natural Resources has considerable expertise in 16 managing state land, and it already has in place the facilities, personnel, and other necessary 17 infrastructure for efficient, cost-effective land management of land designated as mental health 18 trust land under this Act; 19 (21) it therefore is in the best interest of the public and of the trust and its 20 beneficiaries that the Department of Natural Resources manage the land designated as mental 21 health trust land under this Act; and 22 (22) if, by December 15, 1994, a final determination has been made by the 23 superior court that the state has satisfied its obligation to reconstitute the mental health trust 24 under State v. Weiss, 706 P.2d 681 (Alaska 1985), the superior court has entered a final order 25 dismissing Weiss v. State, 4FA-82-2208 Civil, and the time for appeals of that determination 26 and that order has expired with no appeals having been taken, even though it is not legally 27 required by the Alaska Mental Health Enabling Act or the Alaska Constitution, it is in the best 28 interest of both the public and the beneficiaries of the mental health trust 29  (A) to have the provisions of ch. 66, SLA 1991, that establish the 30 Alaska Mental Health Trust Authority become law; 31  (B) to amend the provisions of ch. 66, SLA 1991, that establish a

01 procedure for appropriating funds from the mental health trust income account to give 02 the mental health community, acting through the authority, some discretionary control 03 over the expenditure of those funds while retaining the governor's and the legislature's 04 ultimate control over expenditures from the state treasury as required by the Alaska 05 Constitution and to have the provisions, as amended, become law; 06  (C) to have the provisions of ch. 66, SLA 1991, that improve the state's 07 mental health program become law; and 08  (D) to allocate to the mental health trust income account $225,000,000 09 in 15 annual installments of $15,000,000 each as additional compensation for original 10 mental health land not returned to trust status. 11 (b) The purposes of this Act are 12 (1) to reconstitute the mental health trust with approximately 500,000 acres of 13 original mental health land and approximately 400,000 acres of other state land; 14 (2) to ratify and confirm the removal from trust status of approximately 15 500,000 acres of original mental health land; 16 (3) to ratify and confirm the validity of the dispositions and uses of the original 17 mental health land removed from trust status; 18 (4) to define state mental health expenditures since 1978 and provide for them 19 to be considered as additional compensation for original mental health land removed from trust 20 status; 21 (5) to satisfy any additional state monetary liability to the trust for original 22 mental health land not returned to trust status with state general funds, to provide that those 23 funds will first be appropriated to fund the state's mental health program, and to provide for 24 the transfer of any unappropriated balance to the unrestricted general fund for appropriation 25 for other public purposes as permitted by the Alaska Mental Health Enabling Act; and 26 (6) if, by December 15, 1994, a final determination has been made by the 27 superior court that the state has satisfied its obligation to reconstitute the mental health trust 28 under State v. Weiss, 706 P.2d 681 (Alaska 1985), the superior court has entered a final order 29 dismissing Weiss v. State, 4FA-82-2208 Civil, and the time for appeals of that determination 30 and that order has expired with no appeals having been taken, 31  (A) to have the provisions of ch. 66, SLA 1991, that establish the

01 Alaska Mental Health Trust Authority become law; 02  (B) to amend the provisions of ch. 66, SLA 1991, governing the 03 management by the authority of the land of the reconstituted mental health trust to 04 provide additional safeguards of the public interest in the management of that land and 05 to have the provisions, as amended, become law; 06  (C) to amend the provisions of ch. 66, SLA 1991, that establish a 07 procedure for appropriating funds from the mental health trust income account to give 08 the mental health community, acting through the authority, some discretionary control 09 over the expenditure of those funds while retaining the governor's and the legislature's 10 ultimate control over expenditures from the state treasury as required by the Alaska 11 Constitution and to have the provisions, as amended, become law; 12  (D) to have the provisions of ch. 66, SLA 1991, that improve the 13 state's mental health program become law; and 14  (E) to allocate to the mental health trust income account $225,000,000 15 in 15 annual installments of $15,000,000 each as additional compensation for original 16 mental health land not returned to trust status. 17 * Sec. 2. AS 29.65.060 is amended by adding a new subsection to read: 18  (h) To obtain replacement land for mental health land that was conveyed by 19 the state to the municipality under former AS 29.18.190 - 29.18.200, former 20 AS 29.18.201 - 29.18.202, or under this chapter, a municipality may reconvey to the 21 state mental health land that had been conveyed by the state to the municipality. 22 When a municipality reconveys land to the state under this subsection, the municipality 23 has the right to select an equal number of acres of replacement land. The municipality 24 may exercise its right to select replacement land under this subsection only within two 25 years of the date of the reconveyance of land to the state. 26 * Sec. 3. AS 37.14.007(b), added by sec. 10, ch. 66, SLA 1991, is amended to read: 27  (b) In exercising the powers, duties, and responsibilities as trustee, the 28 authority is under a duty to the public and the trust beneficiaries to 29  (1) administer the trust consistent with AS 37.14.009 [SOLELY] in the 30 interest of the beneficiaries; 31  (2) keep and render clear and accurate accounts with respect to the

01 administration of the trust; 02  (3) make public and available complete and accurate information as to 03 the nature and amount of the trust property; 04  (4) exercise a high degree of care in administering the trust; 05  (5) take reasonable steps to take and keep control of the trust property; 06  (6) use care and skill to preserve the trust property; 07  (7) take reasonable steps to realize on claims that are held in trust; 08  (8) defend against actions that may result in a loss to the trust estate, 09 unless under all the circumstances, considering the other duties owed to the trust, it is 10 reasonable not to make the defense; 11  (9) separately account for trust property; 12  (10) ensure that trust property is designated as property of the trust; 13  (11) use care and skill to make the trust property productive; however, 14 nothing in this paragraph shall prevent the state from using trust property directly or 15 indirectly, by contractual stipulation or otherwise, as a component of the state's mental 16 health trust program; and 17  (12) deal impartially with the different trust beneficiaries as provided 18 in AS 47.30.056. 19 * Sec. 4. AS 37.14.009(a), added by sec. 10, ch. 66, SLA 1991, is amended to read: 20  (a) The Alaska Mental Health Trust Authority 21  (1) shall manage the assets of the trust, except assets the management 22 of which is provided for in (2) of this subsection, in a fiduciary manner to fulfill the 23 purposes of the trust; 24  (2) shall [MAY, CONSISTENT WITH (1) OF THIS SUBSECTION 25 AND AS 47.30.036(1), SELL, LEASE, EXCHANGE, OR OTHERWISE DISPOSE OF 26 LAND IN THE TRUST; 27  (3) MAY, CONSISTENT WITH (1) OF THIS SUBSECTION, USE 28 LAND THAT IS AN ASSET OF THE TRUST DIRECTLY FOR THE INTEGRATED 29 COMPREHENSIVE MENTAL HEALTH PROGRAM; 30  (4) MAY] contract with the Department of Natural Resources to 31 manage the land assets of the trust; when the Department of Natural Resources

01 manages land assets of the trust under a contract entered into under this 02 paragraph, the department shall manage in conformity with AS 38.05.801; and 03  (3) [(5)] shall contract with the Alaska Permanent Fund Corporation for 04 management of the trust's cash assets, unless the authority finds that the best interests 05 of trust beneficiaries would be served by contracting with another entity. 06 * Sec. 5. AS 37.14 is amended by adding a new section to read: 07  Sec. 37.14.013. MENTAL HEALTH TRUST INCOME AND PROCEEDS 08 ACCOUNT. (a) The mental health trust income and proceeds account is established 09 as a separate account in the general fund. 10  (b) The mental health trust income and proceeds account consists of 11  (1) the net income and net proceeds received by the state from the use, 12 sale, or other disposal of the state land designated as mental health trust land; and 13  (2) money deposited in the account in accordance with appropriations 14 or allocations made by law. 15 * Sec. 6. AS 37.14 is amended by adding a new section to read: 16  Sec. 37.14.023. UTILIZATION OF THE MENTAL HEALTH TRUST 17 INCOME AND PROCEEDS ACCOUNT. (a) Money in the mental health trust 18 income and proceeds account established in AS 37.14.013(a) shall first be appropriated 19 by the legislature to pay the necessary expenses of the mental health program of the 20 state. In making annual appropriations from the mental health trust income and 21 proceeds account, the legislature shall consider the recommendations of the Alaska 22 Mental Health Board established under AS 47.30.661. 23  (b) After appropriations have been made to pay the necessary expenses of the 24 mental health program of the state, the legislature may authorize the transfer of the 25 unobligated and unappropriated fiscal year-end balance in the mental health trust 26 income and proceeds account as of June 30 to the unrestricted portion of the general 27 fund for use for other public purposes. 28 * Sec. 7. AS 37.14.036(c), added by sec. 11, ch. 66, SLA 1991, is repealed and reenacted 29 to read: 30  (c) During each state fiscal year that begins on or after July 1, 1995, and ends 31 not later than June 30, 2010, the commissioner of natural resources shall annually

01 deposit in the mental health trust income account in the general fund, established in 02 (a) of this section, $15,000,000 from the state's royalty share as lessor of oil and gas 03 leases. 04 * Sec. 8. AS 38.05 is amended by adding a new section to read: 05  Sec. 38.05.801. MANAGEMENT OF MENTAL HEALTH TRUST LAND. 06 (a) Mental health trust land shall be managed consistent with the requirements of the 07 Alaska Mental Health Enabling Act, P.L. 84-830, 70 Stat. 709 (1956). 08  (b) Subject to (a) of this section, the department 09  (1) shall manage mental health trust land under those provisions of law 10 applicable to other state land; 11  (2) may exchange other state land for mental health trust land under the 12 procedures set out in AS 38.50; and 13  (3) may correct errors or omissions in the legal descriptions of mental 14 health trust land. 15  (c) The commissioner shall adopt regulations under AS 44.62 (Administrative 16 Procedure Act) to implement this section. 17 * Sec. 9. AS 47.30.016(b), added by sec. 26, ch. 66, SLA 1991, is amended to read: 18  (b) The board consists of seven members appointed by the governor. The 19 members appointed under this subsection shall be appointed 20  (1) based upon their ability in financial management and investment [, 21 IN LAND MANAGEMENT,] or in services for the beneficiaries of the trust; 22  (2) after the governor has considered a list of persons prepared by a 23 panel of six persons who are beneficiaries, or who are the guardians, family members, 24 or representatives of beneficiaries; the panel shall consist of 25  (A) one person selected by the Alaska Mental Health Board 26 (AS 47.30.661); 27  (B) one person selected by the Governor's Council for the 28 Handicapped and Gifted (AS 47.80.030); 29  (C) one person selected by the Advisory Board on Alcoholism 30 and Drug Abuse (AS 44.29.110); 31  (D) one person selected by the Older Alaskans Commission

01 (AS 44.21.200); 02  (E) one person selected by the Alaska Native Health Board; and 03  (F) one person selected by the authority. 04 * Sec. 10. AS 47.30.470(9), added by sec. 27, ch. 66, SLA 1991, is amended to read: 05  (9) use money appropriated from the mental health trust income 06 account established under AS 37.14.036 and the general fund to provide the 07 necessary services identified in (8) of this section and in accordance with 08 AS 47.30.056. 09 * Sec. 11. AS 47.30.660(a)(3), added by sec. 36, ch. 66, SLA 1991, is amended to read: 10  (3) implement an integrated comprehensive system of care that, within 11 the limits of money appropriated for that purpose, meets the service needs of the 12 beneficiaries of the trust established under the Alaska Mental Health Enabling Act of 13 1956, as determined by the plan. 14 * Sec. 12. AS 47.30.910(d), as amended by sec. 41, ch. 66, SLA 1991, is further amended 15 to read: 16  (d) All money paid by the patient or on the patient's behalf to the department 17 under this section shall be deposited in the general fund [MENTAL HEALTH TRUST 18 INCOME ACCOUNT ESTABLISHED IN AS 37.14.036]. 19 * Sec. 13. Section 58, ch. 66, SLA 1991, is repealed and reenacted to read: 20  Sec. 58. (a) This Act takes effect only if, not later than December 15, 1994, 21  (1) the superior court of the State of Alaska has made a final 22 determination that the state has satisfied its obligation to reconstitute the mental health 23 trust under State v. Weiss, 706 P.2d 681 (Alaska 1985); 24  (2) the superior court has entered a final order dismissing Weiss v. 25 State, 4FA-82-2208 Civil; and 26  (3) the time for appeals of that determination and that order has expired 27 with no appeals having been taken. 28  (b) The attorney general shall advise the lieutenant governor and the revisor 29 of statutes whether the determination required by (a)(1) of this section has been made, 30 whether the final order required by (a)(2) of this section has been entered, and 31 whether, as required by (a)(3) of this section, the time for appeals of that determination

01 and that order has expired with no appeals having been taken as of that date. 02 * Sec. 14. Chapter 66, SLA 1991, is amended by adding a new section to read: 03  Sec. 59. If, under sec. 58 of this Act, this Act takes effect, it takes effect 04 December 16, 1994. 05 * Sec. 15. AS 37.14.011, 37.14.021; AS 38.05.800; secs. 1, 2, 4, and 5, ch. 132, SLA 06 1986; secs. 7 - 10, ch. 48, SLA 1987; and secs. 49, 50, and 54 - 57, ch. 66, SLA 1991, are 07 repealed. 08 * Sec. 16. MENTAL HEALTH TRUST RECONSTITUTED. (a) For the purpose of 09 reconstituting the mental health trust established under the Alaska Mental Health Enabling 10 Act, P.L. 84-830, 70 Stat. 709 (1956), as required by the Alaska Supreme Court's decision in 11 Weiss v. State, 706 P.2d 681 (Alaska 1985), the following land is designated as mental health 12 trust land: 13 (1) the original mental health land listed in "Original Mental Health Land To 14 Be Designated as Mental Health Trust Land, May 1994," located in the office of the director 15 of the division of lands, Department of Natural Resources, in Anchorage, Alaska; and 16 (2) the state land listed in "Other State Land To Be Designated as Mental 17 Health Trust Land, May 1994," located in the office of the director of the division of lands, 18 Department of Natural Resources, in Anchorage, Alaska. 19 (b) All land designated as mental health trust land under this section remains subject 20 to all encumbrances or interests of record, noted on records maintained by the Department of 21 Natural Resources, or otherwise existing on the effective date of this section. 22 (c) To the extent the state's liability to the mental health trust for the fair market value 23 of the land described in sec. 17 of this Act is not satisfied by the set-off for state mental 24 health expenditures authorized by the Alaska Supreme Court in State v. Weiss, 706 P.2d 681 25 (Alaska 1985), the state land described in (a)(2) of this section and the other compensation 26 made by this Act compensates the trust 27 (1) first, for land conveyed or made subject to a contract for conveyance by 28 the Department of Natural Resources to third parties that are not state agencies or political 29 subdivisions of the state; 30 (2) second, for land conveyed by the Department of Natural Resources to 31 municipalities; and

01 (3) third, for the other land described in sec. 17 of this Act. 02 * Sec. 17. CONFIRMATION AND RATIFICATION OF CONVERSION OF CERTAIN 03 ORIGINAL MENTAL HEALTH LAND TO GENERAL GRANT LAND, CONTINGENT 04 CONVERSION OF CERTAIN ORIGINAL MENTAL HEALTH LAND TO GENERAL 05 GRANT LAND, AND CONFIRMATION AND RATIFICATION OF ACTIONS TAKEN 06 WITH RESPECT TO CONVERTED LAND. (a) Except for the land described in sec. 16 of 07 this Act, 08 (1) the conversion to general grant land by sec. 3(a), ch. 181, SLA 1978, and 09 sec. 1(a), ch. 182, SLA 1978, of all land obtained by the state under the Alaska Mental Health 10 Enabling Act, P.L. 84-830, 70 Stat. 709 (1956), and not listed in "Original Mental Health 11 Land To Be Designated as Mental Health Trust Land, May 1994," located in the office of the 12 director of the division of lands, Department of Natural Resources, in Anchorage, Alaska, is 13 confirmed and ratified; and 14 (2) land patented to or approved for patent to the state under the Alaska Mental 15 Health Enabling Act after July 1, 1978, and not listed in "Original Mental Health Land To Be 16 Designated as Mental Health Trust Land, May 1994," located in the office of the director of 17 the division of lands, Department of Natural Resources, in Anchorage, Alaska, is redesignated 18 as general grant land if it was not converted to general grant land by sec. 3(a), ch. 181, SLA 19 1978, and sec. 1(a), ch. 182, SLA 1978. 20 (b) The land affected by this section includes the land listed in "Original Mental 21 Health Land Not To Be Returned to Mental Health Trust Status, May 1994," located in the 22 office of the director of the division of lands, Department of Natural Resources, in Anchorage, 23 Alaska. 24 (c) All dispositions and uses of the land identified under (a) of this section, including 25 without limitation the creation by the state or the transfer by the state of an interest in the land 26 or the designation of the land as part of a state park, state forest, state game refuge, state 27 wildlife refuge, state game sanctuary, state recreational area, state recreational river, state 28 wilderness park, state marine park, state special management area, state public use area, 29 critical habitat area, bald eagle preserve, bison range, or moose range are confirmed and 30 ratified. 31 * Sec. 18. STATE MENTAL HEALTH EXPENDITURES TO BE SET-OFF AGAINST

01 STATE MONETARY LIABILITY FOR ORIGINAL MENTAL HEALTH LAND NOT 02 RETURNED TO TRUST STATUS. To the extent the state is liable to the mental health trust 03 for the fair market value of any original mental health land not returned to trust status under 04 sec. 16(a)(1) of this Act, after taking into account the fair market value of the state land 05 designated as mental health trust land under sec. 16(a)(2) of this Act, the set-off against that 06 liability for state mental health expenditures since 1978 to which the state is entitled under 07 State v. Weiss, 706 P.2d 681 (Alaska 1985), totals $1,300,000,000. 08 * Sec. 19. TRANSITIONAL PROVISIONS; DEVELOPMENT OF MENTAL HEALTH 09 TRUST INCOME ACCOUNT MECHANISM. Not later than January 1, 1996, the Board of 10 Trustees of the Alaska Mental Health Trust Authority, after consulting with organizations and 11 persons affected by this Act, shall 12 (1) consistent with AS 47.30.056(h), added by sec. 26, ch. 66, SLA 1991, 13 adopt regulations regarding persons who are to receive services funded by money in the 14 mental health trust income account under AS 37.14.036, as added by sec. 11, ch. 66, SLA 15 1991, and amended by sec. 7 of this Act; 16 (2) publish its findings and estimates regarding the number of persons in need 17 under the regulations adopted under (1) of this section; 18 (3) consistent with AS 47.30.056(j), added by sec. 26, ch. 66, SLA 1991, adopt 19 regulations regarding the services and facilities upon which expenditures are to be made from 20 money in the mental health trust income account under AS 37.14.036, added by sec. 11, ch. 21 66, SLA 1991, and amended by sec. 7 of this Act; and 22 (4) publish its findings and projections regarding the necessary expenditure of 23 money from the mental health trust income account under AS 37.14.036, as added by sec. 11, 24 ch. 66, SLA 1991, and amended by sec. 7 of this Act. 25 * Sec. 20. ADDITIONAL COMPENSATION TO MENTAL HEALTH TRUST. (a) To 26 the extent the state has any additional monetary liability to the mental health trust for original 27 mental health land not returned to trust status under sec. 16(a)(1) of this Act after taking into 28 account the fair market value of the other state land under sec. 16(a)(2) of this Act and the 29 set-off for state mental health expenditures under sec. 18 of this Act, the commissioner of 30 revenue shall allocate sufficient unrestricted state general funds to the mental health trust 31 income and proceeds account (AS 37.14.013), established by sec. 5 of this Act, to satisfy that

01 liability. The money so allocated is additional compensation to the mental health trust for the 02 original mental health land not returned to trust status under sec. 16(a)(1) of this Act. An 03 allocation under this subsection may not exceed $100,000,000 during any one state fiscal year. 04 (b) After appropriations from the mental health trust income and proceeds account 05 have been made to pay for the state's mental health program, the legislature may 06 (1) transfer to the general fund an amount equal to the remaining unrestricted 07 state general funds allocated by the commissioner of revenue to the mental health trust income 08 and proceeds account under (a) of this section; and 09 (2) appropriate any part or all of the amount transferred under (1) of this 10 subsection for other public purposes. 11 * Sec. 21. If the conditions of sec. 58, ch. 66, SLA 1991, as amended by sec. 13 of this 12 Act, are not met on or before December 15, 1994, then ch. 66, SLA 1991, is repealed and 13 secs. 3, 4, 7, 9 - 12, and 19 of this Act do not take effect. 14 * Sec. 22. If the conditions of sec. 58, ch. 66, SLA 1991, as amended by sec. 13 of this 15 Act, are met on or before December 15, 1994, then AS 37.14.013, added by sec. 5 of this Act, 16 AS 37.14.023, added by sec. 6 of this Act, and sec. 20 of this Act are repealed. 17 * Sec. 23. Subject to sec. 21 of this Act, secs. 3, 4, 7, 9 - 12, and 19 of this Act take effect 18 December 16, 1994. 19 * Sec. 24. Sections 21 and 22 of this Act take effect December 16, 1994. 20 * Sec. 25. Sections 1, 2, 5, 6, 8, 13 - 18, and 20 of this Act take effect immediately under 21 AS 01.10.070(c).