00 CS FOR SENATE BILL NO. 88(RES) 01 "An Act authorizing a land exchange with the federal government in which certain 02 Alaska mental health trust land is exchanged for certain national forest land and 03 relating to the costs of the exchange; and 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 or federal Act with similar terms, 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 or 12 comparable value; 13 (2) aid the Alaska Mental Health Trust Authority in achieving its goals and 14 objectives, including increasing trust revenue; 01 (3) contribute to the economic health of communities in Southeast Alaska; and 02 (4) preserve land adjacent to the communities of Ketchikan, Petersburg, 03 Wrangell, Sitka, Juneau, and Meyers Chuck. 04 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 EXCHANGE OF MENTAL HEALTH TRUST LAND FOR FEDERAL LAND. (a) 07 Notwithstanding AS 38.05.801, AS 38.50, or any other provision of law, and subject to the 08 provisions of this Act, the Alaska Mental Health Trust Land Exchange Act of 2017 or federal 09 Act with similar terms, and any valid existing rights, reservations, rights-of-way, or other 10 encumbrances in, to, or on land conveyed under this Act, the Department of Natural 11 Resources may convey all right, title, and interest of certain mental health trust land described 12 in sec. 3(a) of this Act to the federal government in exchange for the conveyance of certain 13 federal land described in sec. 3(b) of this Act. 14 (b) The Alaska Mental Health Trust Authority shall pay all costs of the exchange, 15 including 16 (1) the costs incurred completing the land surveys, appraisals, and 17 environmental reviews described in the Alaska Mental Health Trust Land Exchange Act of 18 2017 or federal Act with similar terms; and 19 (2) upon request of the United States Secretary of Agriculture, the costs of 20 federal agency staff, additional federal agency staff, or third-party contractors hired by the 21 federal government to effect the exchange as described in the Alaska Mental Health Trust 22 Land Exchange Act of 2017 or federal Act with similar terms. 23 (c) All surveys required to complete the exchange shall be conducted in the manner 24 described in the Alaska Mental Health Trust Land Exchange Act of 2017 or federal Act with 25 similar terms. 26 (d) In accordance with the Alaska Mental Health Trust Land Exchange Act of 2017 or 27 federal Act with similar terms, conveyance of both federal and mental health trust land under 28 this Act is subject to 29 (1) reciprocal easements on existing roads as necessary to access the parcels 30 that each party acquires in the exchange; the easements must also provide for public access; 31 and 01 (2) conservation and research easements and related land use limitations 02 described in the Alaska Mental Health Trust Land Exchange Act of 2017 or federal Act with 03 similar terms that 04 (A) provide a buffer adjacent to the Ketchikan landfill; 05 (B) allow for the completion of United States Forest Service research 06 on designated study plots; and 07 (C) protect certain karst areas of concern. 08 (e) The Department of Natural Resources may enter into a cost-share agreement to 09 cover the cost of road maintenance with respect to any reciprocal road easements exchanged 10 under (d)(1) of this section. 11 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 LAND TO BE EXCHANGED. (a) Subject to the provisions of this Act, the following 14 mental health trust land, as generally depicted on maps one through six and 10, comprising a 15 total of approximately 18,258 acres, may be exchanged for the federal land described in (b) of 16 this section: 17 (1) land generally depicted as parcel K-1 on map 1, comprising approximately 18 1,878 acres; 19 (2) land generally depicted as parcel K-2 on map 1, comprising approximately 20 707 acres; 21 (3) land generally depicted as parcel K-3 on map 1, comprising approximately 22 901 acres, including the depicted conservation easement area; 23 (4) land generally depicted as parcel K-4A on map 1, comprising 24 approximately 3,180 acres; 25 (5) land generally depicted as parcel P-1A on map 2, comprising 26 approximately 3,174 acres; 27 (6) land generally depicted as parcel P-1B on map 2, comprising 28 approximately 144 acres; 29 (7) land generally depicted as parcel P-2B on map 2, comprising 30 approximately 181 acres; 31 (8) land generally depicted as parcel P-3B on map 2, comprising 01 approximately 92 acres; 02 (9) land generally depicted as parcel P-4 on map 2, comprising approximately 03 280 acres; 04 (10) land generally depicted as parcel W-1 on map 3, comprising 05 approximately 204 acres; 06 (11) land generally depicted as parcel W-2 on map 3, comprising 07 approximately 104 acres; 08 (12) land generally depicted as parcel W-3 on map 3, comprising 09 approximately 63 acres; 10 (13) land generally depicted as parcel W-4 on map 3, comprising 11 approximately 700 acres; 12 (14) land generally depicted as parcel S-2 on map 4, comprising 13 approximately 284 acres; 14 (15) land generally depicted as parcel S-3 on map 4, comprising 15 approximately 109 acres; 16 (16) land generally depicted as parcel S-4 on map 4, comprising 17 approximately 26 acres; 18 (17) land generally depicted as parcel MC-1 on map 5, comprising 19 approximately 169 acres; 20 (18) land generally depicted as parcel J-1B on map 6, comprising 21 approximately 2,261 acres; 22 (19) land generally depicted as parcel J-1A on map 6, comprising 23 approximately 428 acres; and 24 (20) land generally depicted as parcel NB-1 on map 10, comprising 25 approximately 3,374 acres. 26 (b) Subject to the provisions of this Act, the mental health trust land described in (a) 27 of this section may be exchanged, in the manner provided in secs. 4 and 5 of this Act, for the 28 following United States Forest Service land, comprising a total of approximately 20,580 29 acres, as generally depicted on maps seven through nine: 30 (1) land generally depicted as the "Naukati Phase 1" parcel on map 8, 31 comprising approximately 2,400 acres; 01 (2) land generally depicted as the "West Naukati" parcel on map 8, comprising 02 approximately 4,182 acres; 03 (3) land generally depicted as the "North Naukati" parcel on map 8, 04 comprising approximately 1,311 acres; 05 (4) land generally depicted as the "East Naukati/2016 Naukati addition" parcel 06 on map 8, comprising approximately 1,067 acres; 07 (5) land generally depicted as the "Central Naukati" parcel on map 8, 08 comprising approximately 1,858 acres; 09 (6) land generally depicted as the "Hollis" parcel on map 9, comprising 10 approximately 1,538 acres; and 11 (7) land generally depicted as the "Shelter Cove Area" parcel on map 7, 12 comprising approximately 8,224 acres. 13 (c) The Department of Natural Resources may, by mutual agreement with the United 14 States Secretary of Agriculture, correct minor errors in any map, acreage estimate, or 15 description of land subject to exchange under this section. 16 (d) If there is a conflict between a map, acreage estimate, or description of land 17 subject to exchange under this section, the map shall be given effect unless the Department of 18 Natural Resources and the United States Secretary of Agriculture mutually agree otherwise. 19 (e) In this section, "map" means the applicable map prepared by the Alaska Region of 20 the United States Forest Service entitled "Alaska Mental Health Trust Act of 2017," 21 numbered 22 (1) 1 - 9, and dated March 3, 2017; or 23 (2) 10, and dated March 9, 2017. 24 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 LAND EXCHANGE PHASES. (a) Subject to the time limitations of the Alaska 27 Mental Health Trust Land Exchange Act of 2017 or federal Act with similar terms, the land 28 described in sec. 3(a) and (b) of this Act shall be exchanged in two phases, as described in this 29 section. 30 (b) Subject to sec. 5 of this Act, if the United States Secretary of Agriculture has 31 conveyed the parcel of federal land described in sec. 3(b)(1) of this Act to the Alaska Mental 01 Health Trust Authority, the Department of Natural Resources shall convey the parcels of trust 02 land described in sec. 3(a)(1) and (2) of this Act to the federal government. 03 (c) Land to be conveyed under (b) of this section shall be appraised before land to be 04 conveyed under (e) of this section. 05 (d) Notwithstanding sec. 5 of this Act, any cash equalization payment due under sec. 06 5 of this Act shall be 07 (1) deferred until the completion of land conveyances under (e) of this section; 08 and 09 (2) debited or credited, as appropriate, to any final land or cash equalization 10 that may be required under sec. 5 of this Act from either party upon completion of the 11 conveyances under (e) of this section. 12 (e) Subject to sec. 5 of this Act, if the United States Secretary of Agriculture has 13 conveyed the parcels of federal land described in sec. 3(b)(2) - (7) of this Act to the Alaska 14 Mental Health Trust Authority, the Department of Natural Resources shall convey the parcels 15 of trust land described in sec. 3(a)(3) - (20) of this Act to the federal government. 16 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 EQUAL VALUE OF LAND AND OTHER CONSIDERATION EXCHANGED. (a) 19 The value of the mental health trust land and other consideration exchanged for federal land 20 and other consideration under this Act shall be equalized under this section when the 21 Department of Natural Resources completes the land exchange described in sec. 4(e) of this 22 Act. 23 (b) If the final appraised value of all of the federal land described in sec. 3(b) of this 24 Act exceeds the final appraised value of all of the mental health trust land described in sec. 25 3(a) of this Act, the Department of Natural Resources may, in consultation with the United 26 States Secretary of Agriculture, 27 (1) consent to the removal of one or more parcels of federal land described in 28 sec. 3(b) of this Act from the exchange, beginning in the reverse order that the parcels are 29 listed under that subsection until, to the maximum extent practicable, approximate equal value 30 is achieved in the exchange; and 31 (2) equalize any remaining difference in value by 01 (A) removing a portion of a parcel of the federal land described in sec. 02 3(b) of this Act from the exchange; 03 (B) making a cash payment to the federal government that is equal to 04 the difference in value; or 05 (C) using both methods described in (A) and (B) of this paragraph. 06 (c) If the final appraised value of all of the mental health trust land described in sec. 07 3(a) of this Act exceeds the final appraised value of all of the federal land described in sec. 08 3(b) of this Act, the Department of Natural Resources may, in consultation with the United 09 States Secretary of Agriculture, 10 (1) remove one or more parcels of mental health trust land described in sec. 11 3(a) of this Act from the exchange, beginning in the reverse order that the parcels are listed 12 under that subsection, until, to the maximum extent practicable, approximate equal value is 13 achieved in the exchange; and 14 (2) equalize any remaining difference in value by 15 (A) removing a portion of a parcel of the mental health trust land 16 described in sec. 3(a) of this Act from the exchange; 17 (B) accepting a cash payment from the federal government that is 18 equal to the difference in value; or 19 (C) using both methods described in (A) and (B) of this paragraph. 20 (d) If a portion of a parcel of the federal land or the mental health trust land to be 21 conveyed under sec. 3 of this Act cannot be conveyed by the federal government or the 22 Department of Natural Resources because of the presence of hazardous material, 23 (1) that portion may be removed from the exchange; and 24 (2) the final values of the land exchanged under this Act shall be equalized 25 under this section. 26 (e) To expedite completion of the exchange, if the values of the federal land and the 27 mental health trust land cannot be exactly equalized under this section, the Department of 28 Natural Resources may, if the public officer in the Department of Natural Resources who is 29 responsible for the management of the land assets of the Alaska Mental Health Trust 30 Authority under AS 38.05.801 determines that it is in the best interests of the trust established 31 under the Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, waive any 01 cash equalization payment due from the federal government under (c)(2) of this section. 02 (f) All land exchanged under this Act shall be appraised 03 (1) in accordance with nationally recognized appraisal standards, including the 04 Uniform Appraisal Standards for Federal Land Acquisitions and the Uniform Standards of 05 Professional Appraisal Practice; and 06 (2) subject to any appraisal instructions issued by the United States Secretary 07 of Agriculture under the Alaska Mental Health Trust Land Exchange Act of 2017 or federal 08 Act with similar terms. 09 (g) Once the value of a parcel of federal land or mental health trust land subject to 10 exchange under sec. 3 of this Act is approved as the final appraised value of the parcel by 11 both the federal government and the Department of Natural Resources under this section, the 12 state may not require the land to be reappraised or revalued. 13 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 CONDITIONAL EFFECT; DUTY TO NOTIFY. (a) This Act takes effect only if 16 (1) the Alaska Mental Health Trust Land Exchange Act of 2017 or federal Act 17 with similar terms is passed by the 115th United States Congress and enacted into law; 18 (2) on or before January 1, 2024, the public officer in the Department of 19 Natural Resources who is responsible for the management of the land assets of the Alaska 20 Mental Health Trust Authority under AS 38.05.801 determines that the exchange authorized 21 by this Act is in the best interests of the trust established under the Alaska Mental Health 22 Enabling Act of 1956, P.L. 84-830, 70 Stat. 709; and 23 (3) on or before January 1, 2024, the Alaska Mental Health Trust Authority 24 approves the exchange authorized by this Act. 25 (b) The chair of the board of trustees of the Alaska Mental Health Trust Authority 26 shall certify in writing to the lieutenant governor and the revisor of statutes if, on or before 27 January 1, 2024, the Alaska Mental Health Trust Authority determines that the conditions in 28 (a) of this section have occurred. 29 * Sec. 7. If, under sec. 6 of this Act, this Act takes effect, it takes effect on the day after the 30 date on which the chair of the board of trustees of the Alaska Mental Health Trust Authority 31 makes the certification to the revisor of statutes under sec. 6 of this Act.