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.