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CSHB 201(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 amending and repealing other laws relating to mental health institutions, programs, and services that are affected by ch. 66, SLA 1991; and providing for an effective date."

00CS FOR HOUSE BILL NO. 201(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 amending and repealing 03 other laws relating to mental health institutions, programs, and services that are 04 affected by ch. 66, SLA 1991; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. FINDINGS AND PURPOSE. (a) The legislature finds 07 (1) the United States Congress passed the Alaska Mental Health Enabling Act, 08 P.L. 84-830, 70 Stat. 709 (1956), "[t]o confer upon Alaska autonomy in the field of mental 09 health, transfer from the Federal Government to the Territory the fiscal and functional 10 responsibility for the hospitalization of committed mental health patients, and for other 11 purposes;" 12 (2) in sec. 202 of the Alaska Mental Health Enabling Act, the Congress 13 granted the territory the right to select up to 1,000,000 acres of federal land to serve as a 14 source of funds to support the territory's mental health program;

01 (3) in subsection 202(e) of the Alaska Mental Health Enabling Act, the 02 Congress provided that the land so granted, along with the income from the land and proceeds 03 from dispositions of the land, were to be administered "as a public trust and such proceeds 04 and income shall first be applied to meet the necessary expenses of the mental health program 05 of Alaska," that "[s]uch lands, income, and proceeds shall be managed and utilized in such 06 manner as the Legislature of Alaska may provide," that the land "may be sold, leased, 07 mortgaged, exchanged, or otherwise disposed of in such manner as the Legislature of Alaska 08 may provide, in order to obtain funds or other property to be invested, expended, or used by 09 the Territory of Alaska," and that the Alaska legislature must exercise this broad authority "in 10 a manner compatible with the conditions and requirements imposed by this Act"; 11 (4) the Alaska Mental Health Enabling Act grant was "confirmed and 12 transferred to the State of Alaska upon its admission" to the Union under sec. 6(k) of the 13 Alaska Statehood Act, P.L. 85-508, 72 Stat. 339 (1958); 14 (5) in State v. University of Alaska, 624 P.2d 807 (Alaska 1981), the Alaska 15 Supreme Court held that the Alaska State Legislature has plenary authority over all state land 16 under art. VIII, sec. 2, of the Alaska Constitution, and that the legislature may remove from 17 trust status any land obtained by the state in trust if the trust is compensated for the fair 18 market value of that land; 19 (6) chapters 181 and 182, SLA 1978, removed from trust status all original 20 mental health land obtained by the state under the Alaska Mental Health Enabling Act and 21 redesignated it as general grant land, but the trust was not directly compensated for that land; 22 (7) in State v. Weiss, 706 P.2d 681 (Alaska 1985), the Alaska Supreme Court 23 held that the 1978 legislation removing mental health land from trust status and redesignating 24 it as general grant land was a breach of the federally created trust because the trust was never 25 directly compensated for that land, that it was not reasonable to infer that the legislature 26 intended to compensate the mental health trust for all of the original mental health land, that 27 the 1978 redesignation legislation therefore was invalid, and that the appropriate remedy was 28 to return the original mental health land still in state ownership to trust status but, "[t]o the 29 extent former mental health lands have been sold" between 1978 and the date of the court's 30 decision, "the trust must be compensated for the fair market value of the land at the time of 31 sale" with the state entitled to a set-off against that monetary liability for state mental health

01 expenditures during the same period; 02 (8) since statehood, approximately 500,000 acres of original mental health land 03 have been purchased by, conveyed to, or leased by third parties, have been the object of 04 significant development expenditures by third parties, have been conveyed or tentatively 05 approved for conveyance to municipalities, have been placed in legislatively designated areas 06 such as parks, wildlife refuges, and state forests, and have been used by state agencies; 07 (9) the plaintiffs in the Weiss litigation have questioned the validity of those 08 dispositions and uses of original mental health land and in 1990 filed lis pendens on all 09 original mental health land; 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 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 and to provide 03 that those funds will first be appropriated to fund the state's mental health program; 04 (17) since 1978, state mental health expenditures have totaled more than 05 $1,300,000,000; 06 (18) the sum of the value of the other state land designated as mental health 07 trust land under this Act and the total of state mental health expenditures since 1978 exceeds 08 the value of the original mental health land not returned to trust status under this Act; 09 (19) the management of land designated under this Act as mental health trust 10 land will have significant administrative costs that will reduce the trust's net income and 11 proceeds; 12 (20) the Department of Natural Resources has considerable expertise in 13 managing state land, and it already has in place the facilities, personnel, and other necessary 14 infrastructure for efficient, cost-effective land management of land designated as mental health 15 trust land under this Act; 16 (21) it therefore is in the best interest of the public and of the trust and its 17 beneficiaries that the Department of Natural Resources manage the land designated as mental 18 health trust land under this Act; and 19 (22) if, by December 15, 1994, a final determination has been made by the 20 superior court that the state has satisfied its obligation to reconstitute the mental health trust 21 under State v. Weiss, 706 P.2d 681 (Alaska 1985), the superior court has entered a final order 22 dismissing Weiss v. State, 4FA-82-2208 Civil, and the time for appeals of that determination 23 and that order has expired with no appeals having been taken, even though it is not legally 24 required by the Alaska Mental Health Enabling Act or the Alaska Constitution, it is in the best 25 interest of both the public and the beneficiaries of the mental health trust 26  (A) to have the provisions of ch. 66, SLA 1991, that establish the 27 Alaska Mental Health Trust Authority become law; 28  (B) to amend the provisions of ch. 66, SLA 1991, that establish the 29 mental health trust fund, to provide for preserving the corpus of the mental health trust, 30 including an initial appropriation of $200,000,000 to that fund, in perpetuity and to 31 have the provisions, as amended, become law;

01  (C) to provide for the Alaska Mental Health Trust Authority to use the 02 income from the mental health trust fund to assist it in fulfilling its purpose of 03 ensuring an integrated comprehensive mental health program for the state; and 04  (D) to have the provisions of ch. 66, SLA 1991, that improve the 05 state's mental health program become law. 06 (b) The purposes of this Act are 07 (1) to reconstitute the mental health trust with some original mental health land 08 and some other state land; 09 (2) to ratify and confirm the removal from trust status of some original mental 10 health land; 11 (3) to ratify and confirm the validity of the dispositions and uses of the original 12 mental health land removed from trust status; 13 (4) to define state mental health expenditures since 1978 and provide for them 14 to be considered as additional compensation for original mental health land removed from trust 15 status; 16 (5) to satisfy any additional state monetary liability to the trust for original 17 mental health land not returned to trust status with state general funds, to provide that those 18 funds will first be appropriated to fund the state's mental health program, and to provide for 19 the transfer of any unappropriated balance to the unrestricted general fund for appropriation 20 for other public purposes as permitted by the Alaska Mental Health Enabling Act; and 21 (6) if, by December 15, 1994, a final determination has been made by the 22 superior court that the state has satisfied its obligation to reconstitute the mental health trust 23 under State v. Weiss, 706 P.2d 681 (Alaska 1985), the superior court has entered a final order 24 dismissing Weiss v. State, 4FA-82-2208 Civil, and the time for appeals of that determination 25 and that order has expired with no appeals having been taken, 26  (A) to have the provisions of ch. 66, SLA 1991, that establish the 27 Alaska Mental Health Trust Authority become law; 28  (B) to amend the provisions of ch. 66, SLA 1991, that establish the 29 mental health trust fund to provide for preserving the corpus of the mental health trust, 30 including an initial appropriation of $200,000,000, in perpetuity and to have the 31 provisions, as amended, become law;

01  (C) to provide for the Alaska Mental Health Trust Authority to use the 02 income from the mental health trust fund to assist it in fulfilling its purpose of 03 ensuring an integrated comprehensive mental health program for the state; and 04  (D) to have the provisions of ch. 66, SLA 1991, that improve the 05 state's mental health program become law. 06 * Sec. 2. AS 29.65.060 is amended by adding a new subsection to read: 07  (h) To obtain replacement land for mental health land that was conveyed by 08 the state to the municipality under former AS 29.18.190 - 29.18.200, former 09 AS 29.18.201 - 29.18.202, or under this chapter, a municipality may reconvey to the 10 state land that had been conveyed by the state to the municipality. When a 11 municipality reconveys land to the state under this subsection, the municipality has the 12 right to select an equal number of acres of replacement land. The municipality may 13 exercise its right to select replacement land under this subsection only within two years 14 of the date of the reconveyance of land to the state. 15 * Sec. 3. AS 37.13.300, added by sec. 9, ch. 66, SLA 1991, is amended to read: 16  Sec. 37.13.300. CORPORATION TO MANAGE CERTAIN ASSETS OF THE 17 MENTAL HEALTH TRUST. (a) The [SUBJECT TO AGREEMENT WITH THE 18 ALASKA MENTAL HEALTH TRUST AUTHORITY (AS 47.30.011) ENTERED 19 INTO UNDER AS 37.14.009(a)(5), THE] corporation shall manage the mental health 20 trust fund [CASH ASSETS OF THE CORPUS OF THE TRUST ESTABLISHED 21 UNDER THE ALASKA MENTAL HEALTH ENABLING ACT OF 1956, P.L. 84-830, 70 STAT. 709]. 22  (b) The corporation shall 23  (1) hold and invest the mental health trust fund [CASH ASSETS OF 24 THE CORPUS OF THE TRUST THAT ARE TRANSFERRED TO ITS CUSTODY] 25 subject to AS 37.13.120; 26  (2) at least quarterly, prepare, publish, and distribute to the Board of 27 Trustees of the Alaska Mental Health Trust Authority a financial report showing 28 investment revenue and expenditures, including the allocation of the cash assets of the 29 mental health trust fund among investments; 30  (3) annually prepare, publish, and distribute to the Board of Trustees 31 of the Alaska Mental Health Trust Authority financial statements prepared in

01 accordance with generally accepted accounting principles consistently applied, and an 02 audit report prepared by a certified public accountant; [AND] 03  (4) periodically advise the Board of Trustees of the Alaska Mental 04 Health Trust Authority when revisions to long-range investment policy, including asset 05 allocation changes, are contemplated, and provide an opportunity for consultation and 06 comment on the changes before they are implemented; and 07  (5) transfer to the mental health trust income account the net 08 income available for distribution attributable to the mental health trust fund at 09 the end of each fiscal year. 10  (c) Net income from the mental health trust fund [CASH ASSETS OF THE 11 CORPUS OF THE TRUST MANAGED UNDER THIS SECTION] may not be 12 included in the computation of net income available for distribution under 13 AS 37.13.140. 14 * Sec. 4. AS 37.14.003(a), added by sec. 10, ch. 66, SLA 1991, is amended to read: 15  (a) [IN REVIEWING APPROPRIATIONS FROM THE MENTAL HEALTH 16 TRUST INCOME ACCOUNT PROPOSED BY THE AUTHORITY, THE 17 GOVERNOR SHALL CONSIDER THE NEEDS OF THE BENEFICIARIES OF THE 18 TRUST WITHOUT REGARD TO OTHER POTENTIAL OBJECTS OF STATE 19 EXPENDITURE.] The governor shall, at the time the governor submits the 20 proposed comprehensive operating and capital improvements program and 21 financial plan under AS 37.07.060(b) [BY DECEMBER 15 OF EACH YEAR], 22 submit to the legislature a separate appropriation bill limited to appropriations for the 23 state's integrated comprehensive [FROM THE] mental health program [TRUST 24 INCOME ACCOUNT]. 25 * Sec. 5. AS 37.14.003(b), added by sec. 10, ch. 66, SLA 1991, is amended to read: 26  (b) If the appropriations in the bill submitted by the governor under (a) of this 27 section differ from those proposed by the authority, the bill must be accompanied by 28 a report [CONTAIN FINDINGS] explaining the reasons for the differences between 29 the proposed appropriations in the governor's bill and the authority's 30 recommendations for expenditures from the general fund for the state's integrated 31 comprehensive mental health program [AND PROVIDING THE BASIS FOR

01 DETERMINING THAT THE PROPOSED APPROPRIATIONS MEET THE NEEDS 02 OF THE BENEFICIARIES OF THE TRUST. IF THE GOVERNOR PROPOSES TO 03 INCREASE THE AMOUNT OF MONEY TO BE TRANSFERRED FROM THE 04 MENTAL HEALTH TRUST INCOME ACCOUNT TO THE UNRESTRICTED 05 GENERAL FUND OVER THE AUTHORITY'S RECOMMENDATION MADE 06 UNDER AS 47.30.046(a)(3), THE BILL MUST CONTAIN FINDINGS 07 SUPPORTING THE DETERMINATION THAT THE ADDITIONAL MONEY IS 08 NOT REASONABLY NECESSARY TO MEET THE PROJECTED OPERATING 09 AND CAPITAL EXPENSES OF THE INTEGRATED COMPREHENSIVE MENTAL 10 HEALTH PROGRAM TO BE FINANCED FROM THE TRUST]. 11 * Sec. 6. AS 37.14.003(c), added by sec. 10, ch. 66, SLA 1991, is repealed and reenacted 12 to read: 13  (c) If the governor vetoes all or a part of an appropriation for the integrated 14 comprehensive mental health program, the governor's veto message must explain the 15 vetoes in light of the authority's recommendations for expenditures from the general 16 fund for the state's integrated comprehensive mental health program. 17 * Sec. 7. AS 37.14.005, added by sec. 10, ch. 66, SLA 1991, is amended to read: 18  Sec. 37.14.005. RESPONSIBILITIES OF THE LEGISLATURE. (a) The 19 legislature shall annually pass and transmit to the governor a bill making 20 appropriations of money for the state's integrated comprehensive [FROM THE] 21 mental health program [TRUST INCOME ACCOUNT NO LATER THAN THE 22 75TH DAY OF THE REGULAR SESSION]. 23  (b) [BEFORE TAKING ACTION ON APPROPRIATIONS FROM THE 24 MENTAL HEALTH TRUST INCOME ACCOUNT PROPOSED BY THE 25 GOVERNOR, THE LEGISLATURE SHALL CONSIDER THE NEEDS OF THE 26 BENEFICIARIES OF THE TRUST WITHOUT REGARD TO OTHER POTENTIAL 27 OBJECTS OF STATE EXPENDITURE.] The legislature shall make appropriations 28 for the state's integrated comprehensive [FROM THE] mental health program 29 [TRUST INCOME ACCOUNT] in a separate appropriation bill limited to 30 appropriations for the state's integrated comprehensive [FROM THE] mental health 31 program [TRUST INCOME ACCOUNT].

01  (c) If the appropriations in the bill passed by the legislature differ from those 02 proposed by the authority, the bill must be accompanied by a report [CONTAIN 03 FINDINGS] explaining the reasons for the differences between the appropriations 04 in the bill and the authority's recommendations for expenditures from the general 05 fund for the state's integrated comprehensive mental health program [AND 06 PROVIDING THE BASIS FOR DETERMINING THAT THE APPROPRIATIONS 07 MEET THE NEEDS OF THE BENEFICIARIES OF THE TRUST. IF THE 08 LEGISLATURE INCREASES THE AMOUNT OF MONEY TO BE TRANSFERRED 09 FROM THE TRUST TO THE GENERAL FUND OVER THE AUTHORITY'S 10 RECOMMENDATION MADE UNDER AS 47.30.046(a)(3), THE BILL MUST 11 CONTAIN FINDINGS SUPPORTING THE DETERMINATION THAT THE 12 ADDITIONAL MONEY IS NOT REASONABLY NECESSARY TO MEET THE 13 PROJECTED OPERATING AND CAPITAL EXPENSES OF THE INTEGRATED 14 COMPREHENSIVE MENTAL HEALTH PROGRAM TO BE FINANCED FROM 15 THE TRUST]. 16 * Sec. 8. AS 37.14.007(b), added by sec. 10, ch. 66, SLA 1991, is amended to read: 17  (b) In exercising the powers, duties, and responsibilities as trustee the authority 18 is under a duty to the public and the trust beneficiaries to 19  (1) administer the trust consistent with AS 37.14.009 [SOLELY] in the 20 interest of the beneficiaries; 21  (2) keep and render clear and accurate accounts with respect to the 22 administration of the trust; 23  (3) make public and available complete and accurate information as to 24 the nature and amount of the trust property; 25  (4) exercise a high degree of care in administering the trust; 26  (5) take reasonable steps to take and keep control of the trust property; 27  (6) use care and skill to preserve the trust property; 28  (7) take reasonable steps to realize on claims that are held in trust; 29  (8) defend against actions that may result in a loss to the trust estate, 30 unless under all the circumstances, considering the other duties owed to the trust, it is 31 reasonable not to make the defense;

01  (9) separately account for trust property; 02  (10) ensure that trust property is designated as property of the trust; 03  (11) use care and skill to make the trust property productive; however, 04 nothing in this paragraph shall prevent the state from using trust property directly or 05 indirectly, by contractual stipulation or otherwise, as a component of the state's mental 06 health trust program; and 07  (12) deal impartially with the different trust beneficiaries as provided 08 in AS 47.30.056. 09 * Sec. 9. AS 37.14.009(a), added by sec. 10, ch. 66, SLA 1991, is amended to read: 10  (a) The Alaska Mental Health Trust Authority 11  (1) has a fiduciary obligation to ensure that the assets of the trust 12 are managed consistent with the requirements of the Alaska Mental Health 13 Enabling Act, P.L. 84-830, 70 Stat. 709 (1956); 14  (2) shall [MANAGE THE ASSETS OF THE TRUST IN A 15 FIDUCIARY MANNER TO FULFILL THE PURPOSES OF THE TRUST; 16  (2) MAY, CONSISTENT WITH (1) OF THIS SUBSECTION AND 17 AS 47.30.036(1), SELL, LEASE, EXCHANGE, OR OTHERWISE DISPOSE OF 18 LAND IN THE TRUST; 19  (3) MAY, CONSISTENT WITH (1) OF THIS SUBSECTION, USE 20 LAND THAT IS AN ASSET OF THE TRUST DIRECTLY FOR THE INTEGRATED 21 COMPREHENSIVE MENTAL HEALTH PROGRAM; 22  (4) MAY] contract with the Department of Natural Resources to 23 manage the land assets of the trust; the contract must provide for the recording of 24 at least one conveyance to the authority by quitclaim deed of mental health trust 25 land in each recording district in the state in which mental health trust land is 26 located; a conveyance to the authority is exempt from the platting and surveying 27 requirements of AS 38.04.045(b) and municipal ordinances adopted under 28 AS 29.40; when the Department of Natural Resources manages land assets of the 29 trust under a contract entered into under this paragraph, the department shall 30  (A) manage in conformity with AS 38.05.801; 31  (B) consult with the authority before adopting regulations

01 under AS 38.05.801(c); 02  (C) provide notice to, and consult with, the authority 03 regarding all proposed actions subject to public notice under AS 38.05.945 04 before giving that public notice; 05  (D) annually provide the authority with a report including 06  (i) a description of all land management activities 07 undertaken under this section during the prior year; 08  (ii) an accounting of all income and proceeds 09 generated from mental health trust land; 10  (iii) an explanation of the manner in which the 11 income and proceeds were allocated between the mental health trust 12 fund and the mental health trust income account; and 13  (E) obtain the approval of the authority before exchanging 14 mental health trust land under AS 38.05.801(b)(2); and 15  (3) [(5) SHALL] contract with the Alaska Permanent Fund Corporation 16 for management of the mental health trust fund [TRUST'S CASH ASSETS, 17 UNLESS THE AUTHORITY FINDS THAT THE BEST INTERESTS OF TRUST 18 BENEFICIARIES WOULD BE SERVED BY CONTRACTING WITH ANOTHER 19 ENTITY]. 20 * Sec. 10. AS 37.14 is amended by adding a new section to read: 21  Sec. 37.14.013. MENTAL HEALTH TRUST INCOME AND PROCEEDS 22 ACCOUNT. (a) The mental health trust income and proceeds account is established 23 as a separate account in the general fund. 24  (b) The mental health trust income and proceeds account consists of 25  (1) the net income and net proceeds received by the state from the use, 26 sale, or other disposal of the state land designated as mental health trust land; and 27  (2) money deposited in the account in accordance with appropriations 28 or allocations made by law. 29 * Sec. 11. AS 37.14 is amended by adding a new section to read: 30  Sec. 37.14.023. UTILIZATION OF THE MENTAL HEALTH TRUST 31 INCOME AND PROCEEDS ACCOUNT. (a) Money in the mental health trust

01 income and proceeds account established in AS 37.14.013(a) shall first be appropriated 02 by the legislature to pay the necessary expenses of the mental health program of the 03 state. In making annual appropriations from the mental health trust income and 04 proceeds account, the legislature shall consider the recommendations of the Alaska 05 Mental Health Board established under AS 47.30.661. 06  (b) After appropriations have been made to pay the necessary expenses of the 07 mental health program of the state, the legislature may authorize the transfer of the 08 unobligated and unappropriated fiscal year-end balance in the mental health trust 09 income and proceeds account as of June 30 to the unrestricted portion of the general 10 fund for use for other public purposes. 11 * Sec. 12. AS 37.14.031, added by sec. 11, ch. 66, SLA 1991, is amended to read: 12  Sec. 37.14.031. TRUST FUND ESTABLISHED. (a) The mental health trust 13 fund is established as a separate fund of the Alaska Mental Health Trust Authority 14 [WITHIN THE STATE TREASURY]. 15  (b) The fund consists of the cash assets of the principal of the trust, and 16 includes 17  (1) money appropriated to the fund; 18  (2) the proceeds of sale or other disposals of mental health trust 19 land, and the fees, charges, income earned, royalty proceeds, and other money 20 received from the management of mental health trust land attributable to 21 principal; and 22  (3) gifts, bequests, and contributions from other sources. 23 * Sec. 13. AS 37.14.031, added by sec. 11, ch. 66, SLA 1991, is amended by adding new 24 subsections to read: 25  (c) The net income of the fund shall be determined by the Alaska Permanent 26 Fund Corporation in the same manner the corporation determines the net income of the 27 Alaska permanent fund under AS 37.13.140. 28  (d) The provisions of AS 13.38 apply to determine amounts attributable to the 29 principal under (b)(2) of this section. 30 * Sec. 14. AS 37.14 is amended by adding new sections to read: 31  Sec. 37.14.033. MANAGEMENT OF TRUST FUND. The mental health trust

01 fund shall be managed by the Alaska Permanent Fund Corporation under 02 AS 37.13.300. 03  Sec. 37.14.035. TRUST FUND UTILIZATION. (a) The cash principal of the 04 mental health trust fund shall be retained perpetually in the fund for investment by the 05 Alaska Permanent Fund Corporation, as specified in AS 37.13.300. 06  (b) The net income of the fund shall be transferred by the corporation to the 07 mental health trust income account at the end of each fiscal year. 08  (c) The net income of the fund may only be utilized by the Alaska Mental 09 Health Trust Authority for the purposes listed in AS 37.14.041. 10 * Sec. 15. AS 37.14.036(a), added by sec. 11, ch. 66, SLA 1991, is amended to read: 11  (a) The mental health trust income account is established as a separate account 12 of the Alaska Mental Health Trust Authority [WITHIN THE GENERAL FUND OF 13 THE STATE]. The mental health trust income account consists of 14  (1) fees, charges, income earned on assets, and other money received 15 by the trust that is not attributable to the principal of the trust under AS 37.14.031(d); 16 and 17  (2) money deposited in the account in accordance with appropriations 18 or allocations made by law [; 19  (3) THE AMOUNTS ALLOCATED TO IT UNDER (c) OF THIS 20 SECTION]. 21 * Sec. 16. AS 37.14 is amended by adding new sections to read: 22  Sec. 37.14.039. TRUST INCOME ACCOUNT ADMINISTRATION. (a) The 23 mental health trust income account shall be administered by the Alaska Mental Health 24 Trust Authority. 25  (b) If the authority determines that there is a surplus of money in the account 26 above the amount sufficient to meet current and projected cash expenditure needs of 27 the authority, the surplus shall be invested by the authority as provided in 28 AS 37.10.071 for the making of investments by the fiduciary of a state fund. Income 29 earned on investments made under this subsection may be retained by the authority and 30 expended under AS 37.14.041. 31  Sec. 37.14.041. USE OF TRUST INCOME ACCOUNT. (a) Money in the

01 mental health trust income account may only be used for the following purposes: 02  (1) the awarding of grants and contracts in fulfillment of the authority's 03 purpose to ensure an integrated comprehensive mental health program for the state; 04  (2) obtaining private and federal grants for a purpose described in (1) 05 of this subsection; 06  (3) soliciting gifts, bequests, and contributions for a purpose described 07 in (1) of this subsection; 08  (4) reimbursement to 09  (A) the Alaska Permanent Fund Corporation for the costs of 10 managing the principal of the mental health trust fund; and 11  (B) the Department of Natural Resources for the cost of 12 managing mental health trust land; 13  (5) offsetting the effect of inflation on the value of the principal of the 14 mental health trust fund; and 15  (6) meeting the administrative expenses of the authority. 16  (b) If money in the mental health trust income account is not needed to meet 17 the necessary expenses of the state's integrated comprehensive mental health program, 18 the authority shall transfer the money to the unrestricted general fund for expenditure 19 through legislative appropriation for other public purposes. 20  Sec. 37.14.045. LIMITATION ON GRANTS AND CONTRACTS PAID FOR 21 FROM MENTAL HEALTH TRUST INCOME ACCOUNT. (a) The authority may 22 award grants and contracts that are paid for from money in the mental health trust 23 income account only in furtherance of its purpose to ensure an integrated 24 comprehensive mental health program. 25  (b) In awarding grants and contracts that are paid for from money in the 26 mental health trust income account, the authority shall consider proposals only from 27 applicants submitting a detailed proposal in the form prescribed by the authority. 28  (c) The authority may not award a grant or contract that is to be paid for from 29 money in the mental health trust income account unless the authority makes written 30 findings explaining that 31  (1) the grant or contract awarded will further the authority's purpose

01 to ensure an integrated comprehensive mental health program; 02  (2) the applicant has submitted an adequate plan for project 03 implementation, including both financial feasibility and project effectiveness; 04  (3) the applicant has demonstrated that sufficient expertise is available 05 to accomplish the objectives of the proposed program or project; and 06  (4) the applicant has identified operating, maintenance, and other costs 07 associated with the project, including those ancillary to the project, and future 08 obligations associated with the project. 09  (d) The authority may establish other requirements for the award of grants and 10 contracts under this section to ensure an integrated comprehensive mental health 11 program. 12  (e) The authority shall award grants and contracts that are paid for from money 13 in the mental health trust income account in amounts that 14  (1) are appropriate to the conditions of the applicant and the proposed 15 program or project; and 16  (2) will make the most effective use of the funds in the mental health 17 trust income account that are available for expenditure. 18 * Sec. 17. AS 38.05 is amended by adding a new section to read: 19  Sec. 38.05.801. MANAGEMENT OF MENTAL HEALTH TRUST LAND. 20 (a) Mental health trust land shall be managed consistent with the trust principles 21 imposed on the state by the Alaska Mental Health Enabling Act, P.L. 84-830, 70 Stat. 22 709 (1956). 23  (b) Subject to (a) of this section, the department 24  (1) shall manage mental health trust land under those provisions of law 25 applicable to other state land; 26  (2) may exchange other state land for mental health trust land under the 27 procedures set out in AS 38.50; and 28  (3) may correct errors or omissions in the legal descriptions of mental 29 health trust land. 30  (c) The commissioner shall adopt regulations under AS 44.62 (Administrative 31 Procedure Act) to implement this section. The regulations adopted under this

01 subsection must, at a minimum, address 02  (1) maintenance of the trust land base; 03  (2) management for the benefit of the trust; 04  (3) management for long-term sustained yield of products from the 05 land; and 06  (4) management for multiple use of trust land. 07 * Sec. 18. AS 39.25.120(c) is amended by adding a new paragraph to read: 08  (23) employees of the unit established under AS 44.37.050. 09 * Sec. 19. AS 44.21.230(a), as amended by sec. 15, ch. 66, SLA 1991, is amended to read: 10  (a) The commission shall 11  (1) formulate a comprehensive statewide plan that identifies the 12 concerns and needs of older Alaskans and, with reference to the plan adopted, prepare 13 and submit to the governor and legislature an annual analysis and evaluation of the 14 services that are provided to older Alaskans; 15  (2) make recommendations directly to the governor and legislature with 16 respect to legislation, regulations, and appropriations for programs or services that 17 benefit older Alaskans; 18  (3) encourage and aid the development of municipal commissions 19 serving older Alaskans and community-oriented programs and services for the benefit 20 of older Alaskans; 21  (4) employ an executive director who serves at the pleasure of the 22 commission; 23  (5) help older Alaskans lead dignified, independent, and useful lives; 24  (6) request and receive reports and audits from state agencies and local 25 institutions concerned with the conditions and needs of older Alaskans; 26  (7) administer, with the approval of the commissioner of administration, 27 federal programs as provided under 42 U.S.C. 3001 - 3045i (Older Americans Act), 28 as amended; 29  (8) administer, with the approval of the commissioner of administration, 30 state programs as provided under AS 47.65; 31  (9) give assistance, on request, to the senior housing office in the

01 Alaska Housing Finance Corporation in administration of the senior housing loan 02 program under AS 18.56.710 - 18.56.799 and in the performance of the office's other 03 duties under AS 18.56.700; and 04  (10) provide to the Alaska Mental Health Trust Authority, for its review 05 and consideration, recommendations concerning the integrated comprehensive mental 06 health program for persons who are described in (d) of this section 07 [AS 47.30.056(b)(4)] and the use of the money in the mental health trust income 08 account in a manner consistent with regulations adopted under AS 47.30.031. 09 * Sec. 20. AS 20.21.230 is amended by adding a new subsection to read: 10  (d) When the commission formulates a comprehensive statewide plan under 11 (a) of this section, it shall include within the plan specific reference to the concerns 12 and needs of older Alaskans who have a disorder described in AS 47.30.056(b)(4). 13 * Sec. 21. AS 44.29.140(c), as added by sec. 25, ch. 66, SLA 1991, is amended to read: 14  (c) The board shall prepare and maintain a comprehensive plan of services 15  (1) for the prevention and treatment of alcohol, drug, and other 16 substance abuse; and 17  (2) for persons described in AS 47.30.056(b)(3). 18 * Sec. 22. AS 44.37 is amended by adding a new section to read: 19  Sec. 44.37.050. DUTIES OF DEPARTMENT WITH RESPECT TO 20 MANAGEMENT OF MENTAL HEALTH TRUST LAND. To carry out its duties 21 under AS 38.05.801, the Department of Natural Resources shall establish a separate 22 unit with responsibility for management of the mental health trust land. 23 * Sec. 23. AS 47.30.011(c), added by sec. 26, ch. 66, SLA 1991, is amended to read: 24  (c) The authority 25  (1) shall, as provided in AS 37.14.009, administer the trust established 26 under the Alaska Mental Health Enabling Act of 1956; 27  (2) may sue and be sued; 28  (3) may retain the services of independent counsel when, in the 29 judgment of the authority's board of trustees, independent counsel is needed; 30  (4) shall insure or indemnify and protect the board, a member of the 31 board, or an agent or employee of the authority against financial loss and expense,

01 including reasonable legal fees and costs, arising out of a claim, demand, suit, or judg- 02 ment by reason of alleged negligence, alleged violation of civil rights, or alleged 03 wrongful act resulting in death or bodily injury to a person or accidental damage to 04 or destruction of property if the board member, agent, or employee, at the time of the 05 occurrence, was acting under the direction of the authority within the course or scope 06 of the duties of the board member, agent, or employee; and 07  (5) shall exercise the powers granted to it under AS 37.14.041, 08 subject to the limitations imposed by AS 37.14.045. 09 * Sec. 24. AS 47.30.016(b), added by sec. 26, ch. 66, SLA 1991, is amended to read: 10  (b) The board consists of seven members appointed by the governor. The 11 members appointed under this subsection shall be appointed 12  (1) based upon their ability in financial management and investment, 13 in land management, or in services for the beneficiaries of the trust; 14  (2) after the governor has considered a list of persons prepared by a 15 panel of six persons who are beneficiaries, or who are the guardians, family members, 16 or representatives of beneficiaries; the panel shall consist of 17  (A) one person selected by the Alaska Mental Health Board 18 (AS 47.30.661); 19  (B) one person selected by the Governor's Council on 20 Disabilities and Special Education [FOR THE HANDICAPPED AND 21 GIFTED (AS 47.80.030)]; 22  (C) one person selected by the Advisory Board on Alcoholism 23 and Drug Abuse (AS 44.29.110); 24  (D) one person selected by the Older Alaskans Commission 25 (AS 44.21.200); 26  (E) one person selected by the Alaska Native Health Board; and 27  (F) one person selected by the authority. 28 * Sec. 25. AS 47.30.016(c), added by sec. 26, ch. 66, SLA 1991, is amended to read: 29  (c) A member of the board appointed by the governor under (b) of this section 30 may not 31  (1) be an officer or employee of the state; or

01  (2) within the preceding two years or during the member's term of 02 office have an interest in, served on the governing board of, or been employed by an 03 organization that has received, during that same period, money from the mental health 04 trust income account under a grant or contract for services. 05 * Sec. 26. AS 47.30.036(1), added by sec. 26, ch. 66, SLA 1991, is amended to read: 06  (1) preserve and protect the trust corpus under AS 37.14.009; 07 * Sec. 27. AS 47.30.046(a), added by sec. 26, ch. 66, SLA 1991, is amended to read: 08  (a) The board shall annually, not later than September 15, submit to the 09 governor and the Legislative Budget and Audit Committee a budget for the next fiscal 10 year and a proposed plan of implementation based on the integrated comprehensive 11 mental health program plan prepared under AS 47.30.660(a)(1). The budget must 12 include the authority's determination of the amount 13  (1) [RECOMMENDED FOR EXPENDITURE FROM THE MENTAL 14 HEALTH TRUST INCOME ACCOUNT DURING THE NEXT FISCAL YEAR TO 15  (A) MEET THE ADMINISTRATIVE EXPENSES OF THE 16 AUTHORITY; 17  (B) OFFSET THE EFFECT OF INFLATION ON THE VALUE 18 OF THE TRUST CORPUS; AND 19  (C) MEET THE NECESSARY OPERATING AND CAPITAL 20 EXPENSES OF THE INTEGRATED COMPREHENSIVE MENTAL HEALTH 21 PROGRAM; 22  (2)] recommended for expenditure from the general fund [, IF ANY,] during 23 the next fiscal year to meet the [NECESSARY] operating and capital expenses of the 24 integrated comprehensive mental health program; 25  (2) [AND (3)] in the mental health trust income account, if any, that 26 is not reasonably necessary to meet the projected operating and capital expenses of the 27 integrated comprehensive mental health program that may be transferred into the 28 general fund; and 29  (3) of the expenditures the authority intends to make under 30 AS 37.14.041 and 37.14.045, including the specific purposes and amounts of any 31 grants or contracts as part of the state's integrated comprehensive mental health

01 program. 02 * Sec. 28. AS 47.30.056(a), added by sec. 26, ch. 66, SLA 1991, is amended to read: 03  (a) The [IF APPROPRIATED BY LAW, THE] money in the mental health 04 trust income account established in AS 37.14.036 shall be used as provided in 05 AS 37.14.041, including to 06  (1) provide an integrated comprehensive mental health program as 07 required by this section; 08  (2) meet the authority's annual administrative expenses; and 09  (3) offset the effect of inflation on the mental health trust fund 10 [CORPUS OF THE TRUST]. 11 * Sec. 29. AS 47.30.470(9), added by sec. 27, ch. 66, SLA 1991, is amended to read: 12  (9) use money awarded to the department by grant or contract 13 [APPROPRIATED] from the mental health trust income account established under 14 AS 37.14.036 and appropriated from the general fund to provide the necessary 15 services identified in (8) of this section and in accordance with AS 47.30.056. 16 * Sec. 30. AS 47.30.520, as amended by sec. 28, ch. 66, SLA 1991, is amended to read: 17  Sec. 47.30.520. LEGISLATIVE PURPOSE. It is the purpose of the 18 Community Mental Health Services Act to 19  (1) provide a range of community based inpatient, outpatient, and 20 support services for persons with mental disorders; 21  (2) assist communities in planning, organizing, and financing 22 community mental health services through locally developed, administered, and 23 controlled community mental health programs; 24  (3) better develop and use resources at both state and local levels; 25  (4) develop and implement plans for comprehensive mental health 26 services based on demonstrated need on a regional basis; 27  (5) improve the effectiveness of existing mental health services; 28  (6) integrate state-operated and community mental health programs into 29 a unified mental health system; 30  (7) ensure that consumers, families, and representatives of communities 31 within mental health planning regions can participate in planning for, determining the

01 need for, and allocating [THE ALLOCATION OF] mental health resources; 02  (8) provide a means of allocating money available for state mental 03 health services according to community needs; 04  (9) encourage the full use of all existing public or private agencies, 05 facilities, personnel, and funds to accomplish these objectives; and 06  (10) prevent unnecessary duplication and fragmentation of services and 07 expenditures. 08 * Sec. 31. AS 47.30.530(a) is amended to read: 09  (a) The department shall administer the provisions of AS 47.30.520 - 10 47.30.620 and shall 11  (1) define and develop standards for various levels and qualities of 12 mental health care; 13  (2) provide fiscal and professional technical assistance in planning, 14 organizing, developing, implementing, and administering local mental health services; 15  (3) develop budgets and receive and distribute state appropriations and 16 funds in accordance with the provisions of AS 47.30.520 - 47.30.620; 17  (4) establish standards of education and experience for professional, 18 technical, and administrative personnel employed in community mental health services; 19  (5) assist the community in establishing the organization and operation 20 of community mental health services; 21  (6) develop a standardized system for measuring and reporting to the 22 department the types, quantities, and quality of services; and develop a cost accounting 23 system that will demonstrate the cost of various levels and qualities of care; 24  (7) provide each local community planning and services delivery entity 25 with statistics, reports, and other data relevant to development of indices indicating the 26 need for mental health services, or relevant to evaluating the effectiveness of existing 27 services; 28  (8) review each local community plan and require each plan to include 29  (A) an affirmative showing that the most effective and 30 economic use will be made of all available public and private resources in the 31 community including careful consideration of the most effective and economic

01 alternative forms and patterns of services; 02  (B) a five-year projection of needs, services, and resources; and 03  (C) adequate provisions for review and evaluation of services 04 provided in the local community; 05  (9) adopt regulations and establish priorities, after consultation with 06 local communities affected and in conjunction with the Alaska Mental Health Board 07 [A STATE MENTAL HEALTH ADVISORY COUNCIL], that are necessary to carry 08 out the purposes of AS 47.30.520 - 47.30.620. 09 * Sec. 32. AS 47.30.550 is amended by adding a new subsection to read: 10  (e) In (a) and (b) of this section, "poverty area" means a census district in 11 which at least 15 percent of the population, based upon the most recent census date, 12 falls under 125 percent of the United States Department of Health and Human 13 Services' Poverty Income Guidelines for Alaska, as reported in the Federal Register. 14 * Sec. 33. AS 47.30.660, as amended by sec. 36, ch. 66, SLA 1991, and by sec. 2, ch. 109, 15 SLA 1992, is amended to read: 16  Sec. 47.30.660. POWERS AND DUTIES OF DEPARTMENT. (a) The 17 department shall 18  (1) prepare, and periodically revise and amend, a plan for an integrated 19 comprehensive mental health program, as that term is defined by AS 47.30.056(i); 20 the preparation of the plan and any revision or amendment of it shall 21  (A) be made in conjunction with the Alaska Mental Health 22 Trust Authority; 23  (B) be coordinated with federal, state, regional, local, and 24 private entities involved in mental health services; 25  (2) in planning expenditures from the mental health trust income 26 account, conform to the regulations adopted by the Alaska Mental Health Trust 27 Authority under AS 47.30.031(b)(6); and 28  (3) implement an integrated comprehensive system of care that, within 29 the limits of money appropriated for that purpose and using grants and contracts 30 that are to be paid for from the mental health trust income account, meets the 31 service needs of the beneficiaries of the trust established under the Alaska Mental

01 Health Enabling Act of 1956, as determined by the plan. 02  (b) The department, in fulfilling its duties under this section and through its 03 division of mental health and developmental disabilities, shall 04  (1) administer a comprehensive program of services for persons with 05 mental disorders, for the prevention of mental illness, and for the care and treatment 06 of persons with mental disorders, including inpatient and outpatient care and treatment 07 and the procurement of services of specialists or other persons on a contractual or 08 other basis; 09  (2) take the actions and undertake the obligations that are necessary to 10 participate in federal grants-in-aid programs and accept federal or other financial aid 11 from whatever sources for the study, prevention, examination, care, and treatment of 12 persons with mental disorders; 13  (3) administer AS 47.30.660 - 47.30.915; 14  (4) designate, operate, and maintain treatment facilities equipped and 15 qualified to provide inpatient and outpatient care and treatment for persons with mental 16 disorders; 17  (5) provide for the placement of patients with mental disorders in 18 designated treatment facilities; 19  (6) enter into arrangements with governmental agencies for the care or 20 treatment of persons with mental disorders in facilities of the governmental agencies 21 in the state or in another state; 22  (7) enter into contracts with treatment facilities for the custody and care 23 or treatment of persons with mental disorders; contracts under this paragraph are 24 governed by AS 36.30 (State Procurement Code); 25  (8) enter into contracts, which incorporate safeguards consistent with 26 AS 47.30.660 - 47.30.915 and the preservation of the civil rights of the patients with 27 another state for the custody and care or treatment of patients previously committed 28 from this state under 48 U.S.C. 46 et seq., and P.L. 84-830, 70 Stat. 709; 29  (9) prescribe the form of applications, records, reports, request for 30 release, and consents to medical or psychological treatment required by AS 47.30.660 - 47.30.915; 31  (10) require reports from the head of a treatment facility concerning the

01 care of patients; 02  (11) visit each treatment facility at least annually to review methods 03 of care or treatment for patients; 04  (12) investigate complaints made by a patient or an interested party on 05 behalf of a patient; 06  (13) delegate upon mutual agreement to another officer or agency of 07 it, or a political subdivision of the state, or a treatment facility designated, any of the 08 duties and powers imposed upon it by AS 47.30.660 - 47.30.915; 09  (14) after consultation with the Alaska Mental Health Trust Authority, 10 adopt regulations to implement the provisions of AS 47.30.660 - 47.30.915; 11  (15) provide technical assistance and training to providers of mental 12 health services; and 13  (16) set standards under which each designated treatment facility shall 14 provide programs to meet patients' medical, psychological, social, vocational, 15 educational, and recreational needs. 16 * Sec. 34. AS 47.30.662(a), as repealed and reenacted by sec. 37, ch. 66, SLA 1991, is 17 amended to read: 18  (a) The board consists of not fewer than 12 [18] nor more than 16 [24] 19 members appointed by the governor, with due regard for the demographics of the state 20 and balanced geographic representation of the state. The membership and committees 21 of the board shall fulfill the requirements of P.L. 99-660, as amended. 22 * Sec. 35. AS 47.30.666, as repealed and reenacted by sec. 39, ch. 66, SLA 1991, is 23 amended to read: 24  Sec. 47.30.666. DUTIES OF THE BOARD. The board is the state planning 25 and coordinating body for the purpose of federal and state laws relating to mental 26 health services for persons with mental disorders identified in AS 47.30.056(b)(1) 27 [AND (4)]. On behalf of those persons, the board shall 28  (1) prepare and maintain a comprehensive plan of treatment and 29 rehabilitation services; 30  (2) propose an annual implementation plan consistent with the 31 comprehensive plan and with due regard for the findings from evaluation of existing

01 programs; 02  (3) provide a public forum for the discussion of issues related to the 03 mental health services for which the board has planning and coordinating 04 responsibility; 05  (4) advocate the needs of persons with mental disorders before the 06 governor, executive agencies, the legislature, and the public; 07  (5) advise the legislature, the governor, the Alaska Mental Health Trust 08 Authority, and other state agencies in matters affecting persons with mental disorders, 09 including, but not limited to, 10  (A) development of necessary services for diagnosis, treatment, 11 and rehabilitation; 12  (B) evaluation of the effectiveness of programs in the state for 13 diagnosis, treatment, and rehabilitation; 14  (C) legal processes that affect screening, diagnosis, treatment, 15 and rehabilitation; 16  (6) provide to the Alaska Mental Health Trust Authority for its review 17 and consideration recommendations concerning the integrated comprehensive mental 18 health program for those persons who are described in AS 47.30.056(b)(1) [AND (4)] 19 and the use of money in the mental health trust income account in a manner consistent 20 with regulations adopted under AS 47.30.031; and 21  (7) submit periodic reports regarding its planning, evaluation, advocacy, 22 and other activities. 23 * Sec. 36. AS 47.30.910(d), as amended by sec. 41, ch. 66, SLA 1991, is further amended 24 to read: 25  (d) All money paid by the patient or on the patient's behalf to the department 26 under this section shall be deposited in the general fund [MENTAL HEALTH TRUST 27 INCOME ACCOUNT ESTABLISHED IN AS 37.14.036]. 28 * Sec. 37. Section 58, ch. 66, SLA 1991, is repealed and reenacted to read: 29  Sec. 58. (a) This Act takes effect only if, not later than December 15, 1994, 30  (1) the superior court of the State of Alaska has made a final 31 determination that the state has satisfied its obligation to reconstitute the mental health

01 trust under State v. Weiss, 706 P.2d 681 (Alaska 1985); 02  (2) the superior court has entered a final order dismissing Weiss v. 03 State, 4FA-82-2208 Civil; and 04  (3) the time for appeals of that determination and that order has expired 05 with no appeals having been taken or any appeals taken have been finally resolved and 06 the order dismissing Weiss v. State, 4FA-82-2208 Civil, has been affirmed on appeal. 07  (b) The attorney general shall advise the lieutenant governor and the revisor 08 of statutes whether the determination required by (a)(1) of this section has been made, 09 whether the final order required by (a)(2) of this section has been entered, and 10 whether, as required by (a)(3) of this section, the time for appeals of that determination 11 and that order has expired with no appeals having been taken as of that date or any 12 appeals taken have been finally resolved and the order dismissing Weiss v. State, 4FA-82-2208 Civil, has been 13 affirmed on appeal. 14 * Sec. 38. Chapter 66, SLA 1991, is amended by adding a new section to read: 15  Sec. 59. If, under sec. 58 of this Act, this Act takes effect, it takes effect 16 December 16, 1994. 17 * Sec. 39. AS 37.14.009(b), 37.14.011, 37.14.021, 37.14.036(c); AS 38.05.800; 18 AS 47.30.031(b)(2); secs. 1, 2, 4, and 5, ch. 132, SLA 1986; secs. 7 - 10, ch. 48, SLA 1987; 19 and secs. 49, 50, 53 - 57, ch. 66, SLA 1991, are repealed. 20 * Sec. 40. MENTAL HEALTH TRUST RECONSTITUTED. (a) For the purpose of 21 reconstituting the mental health trust established under the Alaska Mental Health Enabling 22 Act, P.L. 84-830, 70 Stat. 709 (1956), as required by the Alaska Supreme Court's decision in 23 Weiss v. State, 706 P.2d 681 (Alaska 1985), the following land is designated as mental health 24 trust land: 25 (1) the original mental health land listed in "Original Mental Health Land To 26 Be Designated as Mental Health Trust Land, April 28, 1994," located in the office of the 27 director of the division of lands, Department of Natural Resources, in Anchorage, Alaska; and 28 (2) the state land listed in "Other State Land To Be Designated as Mental 29 Health Trust Land, April 28, 1994," located in the office of the director of the division of 30 lands, Department of Natural Resources, in Anchorage, Alaska. 31 (b) All land designated as mental health trust land under this section remains subject

01 to all encumbrances or interests of record, noted on records maintained by the Department of 02 Natural Resources, or otherwise existing on the effective date of this section. 03 (c) To the extent the state's liability to the mental health trust for the fair market value 04 of the land described in sec. 41 of this Act is not satisfied by the set-off for state mental 05 health expenditures authorized by the Alaska Supreme Court in State v. Weiss, 706 P.2d 681 06 (Alaska 1985), the state land described in (a)(2) of this section, the other compensation made 07 by this Act, and appropriations from the general fund for the state's integrated comprehensive 08 mental health program compensate the trust 09 (1) first, for land conveyed or made subject to a contract for conveyance by 10 the Department of Natural Resources to third parties that are not state agencies or political 11 subdivisions of the state; 12 (2) second, for land conveyed by the Department of Natural Resources to 13 municipalities; and 14 (3) third, for the other land described in sec. 41 of this Act. 15 * Sec. 41. CONFIRMATION AND RATIFICATION OF CONVERSION OF CERTAIN 16 ORIGINAL MENTAL HEALTH LAND TO GENERAL GRANT LAND, CONTINGENT 17 CONVERSION OF CERTAIN ORIGINAL MENTAL HEALTH LAND TO GENERAL 18 GRANT LAND, AND CONFIRMATION AND RATIFICATION OF ACTIONS TAKEN 19 WITH RESPECT TO CONVERTED LAND. (a) Except for the land described in sec. 40 of 20 this Act, 21 (1) the conversion to general grant land by sec. 3(a), ch. 181, SLA 1978, and 22 sec. 1(a), ch. 182, SLA 1978, of all land obtained by the state under the Alaska Mental Health 23 Enabling Act, P.L. 84-830, 70 Stat. 709 (1956), and not listed in "Original Mental Health 24 Land To Be Designated as Mental Health Trust Land, April 28, 1994," located in the office 25 of the director of the division of lands, Department of Natural Resources, in Anchorage, 26 Alaska, is confirmed and ratified; and 27 (2) land patented to or approved for patent to the state under the Alaska Mental 28 Health Enabling Act after July 1, 1978, and not listed in "Original Mental Health Land To Be 29 Designated as Mental Health Trust Land, April 28, 1994," located in the office of the director 30 of the division of lands, Department of Natural Resources, in Anchorage, Alaska, is 31 redesignated as general grant land if it was not converted to general grant land by sec. 3(a),

01 ch. 181, SLA 1978, and sec. 1(a), ch. 182, SLA 1978. 02 (b) The land affected by this section includes the land listed in "Original Mental 03 Health Land Not To Be Returned to Mental Health Trust Status, April 28, 1994," located in 04 the office of the director of the division of lands, Department of Natural Resources, in 05 Anchorage, Alaska. 06 (c) All dispositions and uses of the land identified under (a) of this section, including 07 without limitation the creation by the state or the transfer by the state of an interest in the land 08 or the designation of the land as part of a state park, state forest, state game refuge, state 09 wildlife refuge, state game sanctuary, state recreational area, state recreational river, state 10 wilderness park, state marine park, state special management area, state public use area, 11 critical habitat area, bald eagle preserve, bison range, or moose range are confirmed and 12 ratified. 13 * Sec. 42. STATE MENTAL HEALTH EXPENDITURES TO BE SET-OFF AGAINST 14 STATE MONETARY LIABILITY FOR ORIGINAL MENTAL HEALTH LAND NOT 15 RETURNED TO TRUST STATUS. To the extent the state is liable to the mental health trust 16 for the fair market value of any original mental health land not returned to trust status under 17 sec. 40(a)(1) of this Act, after taking into account the fair market value of the state land 18 designated as mental health trust land under sec. 40(a)(2) of this Act, the set-off against that 19 liability for state mental health expenditures since 1978 to which the state is entitled under 20 State v. Weiss, 706 P.2d 681 (Alaska 1985), totals $1,320,000,000. 21 * Sec. 43. TRANSITIONAL PROVISIONS; DEVELOPMENT OF MENTAL HEALTH 22 TRUST INCOME ACCOUNT MECHANISM. Not later than January 1, 1996, the Board of 23 Trustees of the Alaska Mental Health Trust Authority, after consulting with organizations and 24 persons affected by this Act, shall 25 (1) consistent with AS 47.30.056(h), added by sec. 26, ch. 66, SLA 1991, 26 adopt regulations regarding persons who are to receive services funded by money in the 27 mental health trust income account under AS 37.14.036, as added by sec. 11, ch. 66, SLA 28 1991, and amended by secs. 15 and 39 of this Act; 29 (2) publish its findings and estimates regarding the number of persons in need 30 under the regulations adopted under (1) of this section; 31 (3) consistent with AS 47.30.056(j), added by sec. 26, ch. 66, SLA 1991, adopt

01 regulations regarding the services and facilities upon which expenditures are to be made from 02 money in the mental health trust income account under AS 37.14.036, added by sec. 11, 03 ch. 66, SLA 1991, and amended by secs. 15 and 39 of this Act; and 04 (4) publish its findings and projections regarding the necessary expenditure of 05 money from the mental health trust income account under AS 37.14.036, as added by sec. 11, 06 ch. 66, SLA 1991, and amended by secs. 15 and 39 of this Act. 07 * Sec. 44. ADDITIONAL COMPENSATION TO MENTAL HEALTH TRUST. (a) To 08 the extent the state has any additional monetary liability to the mental health trust for original 09 mental health land not returned to trust status under sec. 40(a)(1) of this Act after taking into 10 account the fair market value of the other state land under sec. 40(a)(2) of this Act and the 11 set-off for state mental health expenditures under sec. 42 of this Act, the commissioner of 12 revenue shall allocate sufficient unrestricted state general funds to the mental health trust 13 income and proceeds account (AS 37.14.013), established by sec. 10 of this Act, to satisfy that 14 liability. The money so allocated is additional compensation to the mental health trust for the 15 original mental health land not returned to trust status under sec. 40(a)(1) of this Act. An 16 allocation under this subsection may not exceed $100,000,000 during any one state fiscal year. 17 (b) After appropriations from the mental health trust income and proceeds account 18 have been made to pay for the state's mental health program, the legislature may 19 (1) transfer to the general fund an amount equal to the remaining unrestricted 20 state general funds allocated by the commissioner of revenue to the mental health trust income 21 and proceeds account under (a) of this section; and 22 (2) appropriate any part or all of the amount transferred under (1) of this 23 subsection for other public purposes. 24 * Sec. 45. REPLACEMENT LAND OF MUNICIPALITIES. A municipality may obtain 25 replacement land under AS 29.65.060(h), added by sec. 2 of this Act, for land that had been 26 conveyed by the state to the municipality only if the land is on the list of "Original Mental 27 Health Land To Be Designated as Mental Health Trust Land, April 28, 1994," or on the list 28 of "Other State Land To Be Designated as Mental Health Trust Land, April 28, 1994," both 29 of which are located in the office of the director of the division of lands, Department of 30 Natural Resources, in Anchorage, Alaska. 31 * Sec. 46. TRANSITIONAL PROVISIONS: MEMBERS OF THE ALASKA MENTAL

01 HEALTH BOARD. Notwithstanding AS 47.30.662, as amended by sec. 37, ch. 66, SLA 02 1991, and sec. 34 of this Act, the members of the Alaska Mental Health Board who are 03 serving on the effective date of this section continue to serve their unexpired terms. 04 Vacancies on the board occurring after the effective date of this section, and new positions 05 created by this section, shall be filled by the governor under the provisions of AS 47.30.662, 06 as amended by sec. 37, ch. 66, SLA 1991, and sec. 34 of this Act. When making 07 appointments to new positions on the board, the governor shall ensure that the initial terms 08 of new members maintain the staggered term requirement of AS 47.30.663. 09 * Sec. 47. If the conditions of sec. 58, ch. 66, SLA 1991, as amended by sec. 37 of this 10 Act, are not met on or before December 15, 1994, then ch. 66, SLA 1991, is repealed and 11 secs. 3 - 9, 12 - 16, 19 - 21, 23 - 30, 33 - 36, 43, and 46 of this Act do not take effect. 12 * Sec. 48. If the conditions of sec. 58, ch. 66, SLA 1991, as amended by sec. 37 of this 13 Act, are met on or before December 15, 1994, then AS 37.14.013, added by sec. 10 of this 14 Act, AS 37.14.023, added by sec. 11 of this Act, AS 47.30.546, and sec. 44 of this Act are 15 repealed. 16 * Sec. 49. Subject to sec. 47 of this Act, secs. 3 - 9, 12 - 16, 19 - 21, 23 - 30, 33 - 36, 43, 17 and 46 of this Act take effect December 16, 1994. 18 * Sec. 50. Sections 47 and 48 of this Act take effect December 16, 1994. 19 * Sec. 51. Sections 1, 2, 10, 11, 17, 18, 22, 31, 32, 37 - 42, 44, and 45 of this Act take 20 effect immediately under AS 01.10.070(c).