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HB 155: "An Act authorizing a land exchange in which certain Alaska mental health trust land is exchanged for certain national forest land and relating to the costs of the exchange; and providing for an effective date."

00                             HOUSE BILL NO. 155                                                                          
01 "An Act authorizing a land exchange in which certain Alaska mental health trust land is                                 
02 exchanged for certain national forest land and relating to the costs of the exchange; and                               
03 providing for an effective date."                                                                                       
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
06 to read:                                                                                                                
07       PURPOSE. In accordance with the Alaska Mental Health Trust Land Exchange Act of                                   
08 2017, the purposes of this Act are to                                                                                   
09            (1)  authorize the Department of Natural Resources, acting on behalf of the                                  
10 Alaska Mental Health Trust Authority, to exchange mental health trust land managed by the                               
11 Department of Natural Resources for United States Forest Service land of equal value;                                   
12            (2)  aid the Alaska Mental Health Trust Authority in achieving its goals and                                 
13 objectives, including increasing trust revenue;                                                                         
14            (3)  contribute to the economic health of communities in Southeast Alaska; and                               
01 (4)  preserve land adjacent to the communities of Ketchikan, Petersburg,                                                
02 Wrangell, Sitka, Juneau, and Meyers Chuck.                                                                              
03    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
04 read:                                                                                                                   
05 EXCHANGE OF MENTAL HEALTH TRUST LAND FOR FEDERAL LAND. (a)                                                              
06 Notwithstanding AS 38.05.801, AS 38.50, or any other provision of law, and subject to the                               
07 provisions of this Act, the Alaska Mental Health Trust Land Exchange Act of 2017, and any                               
08 valid existing rights, reservations, rights-of-way, or other encumbrances in, to, or on land                            
09 conveyed under this Act, the Department of Natural Resources shall convey all right, title, and                         
10 interest of certain mental health trust land described in sec. 3(a) of this Act to the federal                          
11 government in exchange for the conveyance of certain federal land described in sec. 3(b) of                             
12 this Act.                                                                                                               
13 (b)  The Alaska Mental Health Trust Authority shall pay all costs of the exchange,                                      
14 including                                                                                                               
15 (1)  the costs incurred completing the land surveys, appraisals, and                                                    
16 environmental reviews described in the Alaska Mental Health Trust Land Exchange Act of                                  
17 2017; and                                                                                                               
18 (2)  upon request of the United States Secretary of Agriculture, the costs of                                           
19 federal agency staff, additional federal agency staff, or third-party contractors hired by the                          
20 federal government to effect the exchange as described in the Alaska Mental Health Trust                                
21 Land Exchange Act of 2017.                                                                                              
22 (c)  All surveys required to complete the exchange shall be conducted in the manner                                     
23 described in the Alaska Mental Health Trust Land Exchange Act of 2017.                                                  
24 (d)  In accordance with the Alaska Mental Health Trust Land Exchange Act of 2017,                                       
25 conveyance of both federal and mental health trust land under this Act is subject to                                    
26 (1)  reciprocal easements on existing roads as necessary to access the parcels                                          
27 that each party acquires in the exchange; the easements must also provide for public access;                            
28 and                                                                                                                     
29 (2)  conservation and research easements and related land use limitations                                               
30 described in the Alaska Mental Health Trust Land Exchange Act of 2017 that                                              
31                 (A)  provide a buffer adjacent to the Ketchikan landfill;                                               
01                 (B)  allow for the completion of United States Forest Service research                                  
02       on designated study plots; and                                                                                    
03                 (C)  protect certain karst areas of concern.                                                            
04       (e)  The Department of Natural Resources may enter into a cost-share agreement to                                 
05 cover the cost of road maintenance with respect to any reciprocal road easements exchanged                              
06 under (d)(1) of this section.                                                                                           
07    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
08 read:                                                                                                                   
09       LAND TO BE EXCHANGED. (a) Subject to the provisions of this Act, the following                                    
10 mental health trust land, as generally depicted on maps one through six and 10, comprising a                            
11 total of approximately 18,278 acres, shall be exchanged for the federal land described in (b) of                        
12 this section:                                                                                                           
13 (1)  land generally depicted as parcel K-1 on map 1, comprising approximately                                           
14 1,878 acres;                                                                                                            
15 (2)  land generally depicted as parcel K-2 on map 1, comprising approximately                                           
16 707 acres;                                                                                                              
17 (3)  land generally depicted as parcel K-3 on map 1, comprising approximately                                           
18 901 acres, including the depicted conservation easement area;                                                           
19 (4)  land generally depicted as parcel K-4A on map 1, comprising                                                        
20 approximately 3,180 acres;                                                                                              
21 (5)  land generally depicted as parcel P-1A on map 2, comprising                                                        
22 approximately 3,174 acres;                                                                                              
23 (6)  land generally depicted as parcel P-1B on map 2, comprising                                                        
24 approximately 144 acres;                                                                                                
25 (7)  land generally depicted as parcel P-2B on map 2, comprising                                                        
26 approximately 181 acres;                                                                                                
27 (8)  land generally depicted as parcel P-3B on map 2, comprising                                                        
28 approximately 92 acres;                                                                                                 
29 (9)  land generally depicted as parcel P-4 on map 2, comprising approximately                                           
30 280 acres;                                                                                                              
31 (10)  land generally depicted as parcel W-1 on map 3, comprising                                                        
01 approximately 204 acres;                                                                                                
02            (11)  land generally depicted as parcel W-2 on map 3, comprising                                             
03 approximately 104 acres;                                                                                                
04            (12)  land generally depicted as parcel W-3 on map 3, comprising                                             
05 approximately 63 acres;                                                                                                 
06            (13)  land generally depicted as parcel W-4 on map 3, comprising                                             
07 approximately 700 acres;                                                                                                
08            (14)  land generally depicted as parcel S-2 on map 4, comprising                                             
09 approximately 284 acres;                                                                                                
10 (15)  land generally depicted as parcel S-3 on map 4, comprising                                                        
11 approximately 109 acres;                                                                                                
12 (16)  land generally depicted as parcel S-4 on map 4, comprising                                                        
13 approximately 26 acres;                                                                                                 
14 (17)  land generally depicted as parcel MC-1 on map 5, comprising                                                       
15 approximately 169 acres;                                                                                                
16 (18)  land generally depicted as parcel J-1B on map 6, comprising                                                       
17 approximately 2,261 acres;                                                                                              
18 (19)  land generally depicted as parcel J-1A on map 6, comprising                                                       
19 approximately 428 acres;                                                                                                
20 (20)  land generally depicted as parcel NB-1 on map 10, comprising                                                      
21 approximately 3,176 acres; and                                                                                          
22 (21)  land generally depicted as parcel NB-2 on map 10, comprising                                                      
23 approximately 217 acres.                                                                                                
24 (b)  Subject to the provisions of this Act, the mental health trust land described in (a)                               
25 of this section shall be exchanged, in the manner provided in secs. 4 and 5 of this Act, for the                        
26 following United States Forest Service land, comprising a total of approximately 20,580                                 
27 acres, as generally depicted on maps seven through nine:                                                                
28 (1)  land generally depicted as the "Naukati Phase 1" parcel on map 8,                                                  
29 comprising approximately 2,400 acres;                                                                                   
30 (2)  land generally depicted as the "West Naukati" parcel on map 8, comprising                                          
31 approximately 4,182 acres;                                                                                              
01            (3)  land generally depicted as the "North Naukati" parcel on map 8,                                         
02 comprising approximately 1,311 acres;                                                                                   
03            (4)  land generally depicted as the "East Naukati/2016 Naukati addition" parcel                              
04 on map 8, comprising approximately 1,067 acres;                                                                         
05            (5)  land generally depicted as the "Central Naukati" parcel on map 8,                                       
06 comprising approximately 1,858 acres;                                                                                   
07            (6)  land generally depicted as the "Hollis" parcel on map 9, comprising                                     
08 approximately 1,538 acres; and                                                                                          
09            (7)  land generally depicted as the "Shelter Cove Area" parcel on map 7,                                     
10 comprising approximately 8,224 acres.                                                                                   
11 (c)  The Department of Natural Resources may, by mutual agreement with the United                                       
12 States Secretary of Agriculture, correct minor errors in any map, acreage estimate, or                                  
13 description of land subject to exchange under this section.                                                             
14 (d)  If there is a conflict between a map, acreage estimate, or description of land                                     
15 subject to exchange under this section, the map shall be given effect unless the Department of                          
16 Natural Resources and the United States Secretary of Agriculture mutually agree otherwise.                              
17       (e)  In this section, "map" means the applicable map                                                              
18 (1)  prepared by the Alaska Region of the United States Forest Service entitled                                         
19 "Alaska Mental Health Trust Act of 2016" and                                                                            
20                 (A)  numbered 1, 2, 3, 4, 5, 6, 7, or 9 and dated September 19, 2016;                                   
21                 (B)  numbered 8 and dated November 28, 2016; or                                                         
22            (2)  numbered 10.                                                                                            
23    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
24 read:                                                                                                                   
25 LAND EXCHANGE PHASES. (a) Subject to the time limitations of the Alaska                                                 
26 Mental Health Trust Land Exchange Act of 2017, the land described in sec. 3(a) and (b) of                               
27 this Act shall be exchanged in two phases, as described in this section.                                                
28 (b)  Subject to sec. 5 of this Act, if the United States Secretary of Agriculture has                                   
29 conveyed the parcel of federal land described in sec. 3(b)(1) of this Act to the Alaska Mental                          
30 Health Trust Authority, the Department of Natural Resources shall convey the parcels of trust                           
31 land described in sec. 3(a)(1) and (2) of this Act to the federal government.                                           
01       (c)  Land conveyed under (b) of this section shall be appraised before the land                                   
02 described in (e) of this section.                                                                                       
03       (d)  Notwithstanding sec. 5 of this Act, any cash equalization payment due under sec.                             
04 5 of this Act shall be                                                                                                  
05            (1)  deferred until the completion of land conveyances under (e) of this section;                            
06 and                                                                                                                     
07            (2)  debited or credited, as appropriate, to any final land or cash equalization                             
08 that may be required under sec. 5 of this Act from either party upon completion of the                                  
09 conveyances under (e) of this section.                                                                                  
10 (e)  Subject to sec. 5 of this Act, if the United States Secretary of Agriculture has                                   
11 conveyed the parcels of federal land described in sec. 3(b)(2) - (7) of this Act to the Alaska                          
12 Mental Health Trust Authority, the Department of Natural Resources shall convey the parcels                             
13 of trust land described in sec. 3(a)(3) - (21) of this Act to the federal government.                                   
14    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to                          
15 read:                                                                                                                   
16 EQUAL VALUE OF LAND AND OTHER CONSIDERATION EXCHANGED. (a)                                                              
17 The value of the mental health trust land and other consideration exchanged for federal land                            
18 and other consideration under this Act shall be equalized under this section when the                                   
19 Department of Natural Resources completes the land exchange described in sec. 4(e) of this                              
20 Act.                                                                                                                    
21 (b)  If the final appraised value of all of the federal land described in sec. 3(b) of this                             
22 Act exceeds the final appraised value of all of the mental health trust land described in sec.                          
23 3(a) of this Act, the Department of Natural Resources may, in consultation with the United                              
24 States Secretary of Agriculture,                                                                                        
25 (1)  consent to the removal of one or more parcels of federal land described in                                         
26 sec. 3(b) of this Act from the exchange, beginning in the reverse order that the parcels are                            
27 listed under that subsection until, to the maximum extent practicable, approximate equal value                          
28 is achieved in the exchange; and                                                                                        
29            (2)  equalize any remaining difference in value by                                                           
30 (A)  removing a portion of a parcel of the federal land described in sec.                                               
31       3(b) of this Act from the exchange;                                                                               
01                 (B)  making a cash payment to the federal government that is equal to                                   
02       the difference in value; or                                                                                       
03                 (C)  using both methods described in (A) and (B) of this paragraph.                                     
04 (c)  If the final appraised value of all of the mental health trust land described in sec.                              
05 3(a) of this Act exceeds the final appraised value of all of the federal land described in sec.                         
06 3(b) of this Act, the Department of Natural Resources may, in consultation with the United                              
07 States Secretary of Agriculture,                                                                                        
08            (1)  remove one or more parcels of mental health trust land described in sec.                                
09 3(a) of this Act from the exchange, beginning in the reverse order that the parcels are listed                          
10 under that subsection, until, to the maximum extent practicable, approximate equal value is                             
11 achieved in the exchange; and                                                                                           
12            (2)  equalize any remaining difference in value by                                                           
13 (A)  removing a portion of a parcel of the mental health trust land                                                     
14       described in sec. 3(a) of this Act from the exchange;                                                             
15 (B)  accepting a cash payment from the federal government that is                                                       
16       equal to the difference in value; or                                                                              
17                 (C)  using both methods described in (A) and (B) of this paragraph.                                     
18 (d)  If a portion of a parcel of the federal land or the mental health trust land to be                                 
19 conveyed under sec. 3 of this Act cannot be conveyed by the federal government or the                                   
20 Department of Natural Resources because of the presence of hazardous material,                                          
21            (1)  that portion may be removed from the exchange; and                                                      
22 (2)  the final values of the land exchanged under this Act shall be equalized                                           
23 under this section.                                                                                                     
24 (e)  To expedite completion of the exchange, if the values of the federal land and the                                  
25 mental health trust land cannot be exactly equalized under this section, the Department of                              
26 Natural Resources may, if the public officer in the Department of Natural Resources who is                              
27 responsible for the management of the land assets of the Alaska Mental Health Trust                                     
28 Authority under AS 38.05.801 determines that it is in the best interests of the trust established                       
29 under the Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, waive any                               
30 cash equalization payment due from the federal government under (c)(2) of this section.                                 
31       (f)  All land exchanged under this Act shall be appraised                                                         
01            (1)  in accordance with nationally recognized appraisal standards, including the                             
02 Uniform Appraisal Standards for Federal Land Acquisitions and the Uniform Standards of                                  
03 Professional Appraisal Practice; and                                                                                    
04            (2)  subject to any appraisal instructions issued by the United States Secretary                             
05 of Agriculture under the Alaska Mental Health Trust Land Exchange Act of 2017.                                          
06 (g)  Once the value of a parcel of federal land or mental health trust land subject to                                  
07 exchange under sec. 3 of this Act is approved as the final appraised value of the parcel by                             
08 both the federal government and the Department of Natural Resources under this section, the                             
09 state may not require the land to be reappraised or revalued.                                                           
10    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
11 read:                                                                                                                   
12       CONDITIONAL EFFECT; DUTY TO NOTIFY. (a) This Act takes effect only if                                             
13 (1)  the Alaska Mental Health Trust Land Exchange Act of 2017 is passed by                                              
14 the 115th United States Congress and enacted into law;                                                                  
15 (2)  on or before January 1, 2024, the public officer in the Department of                                              
16 Natural Resources who is responsible for the management of the land assets of the Alaska                                
17 Mental Health Trust Authority under AS 38.05.801 determines that the exchange authorized                                
18 by this Act is in the best interests of the trust established under the Alaska Mental Health                            
19 Enabling Act of 1956, P.L. 84-830, 70 Stat. 709; and                                                                    
20 (3)  on or before January 1, 2024, the Alaska Mental Health Trust Authority                                             
21 approves the exchange authorized by this Act.                                                                           
22 (b)  The chair of the board of trustees of the Alaska Mental Health Trust Authority                                     
23 shall certify in writing to the lieutenant governor and the revisor of statutes if, on or before                        
24 January 1, 2024, the Alaska Mental Health Trust Authority determines that the conditions in                             
25 (a) of this section have occurred.                                                                                      
26    * Sec. 7. If, under sec. 6 of this Act, this Act takes effect, it takes effect on the day after the                
27 date on which the chair of the board of trustees of the Alaska Mental Health Trust Authority                            
28 makes the certification to the revisor of statutes under sec. 6 of this Act.