Legislature(1993 - 1994)
1994-09-26 Senate Journal
Full Journal pdf1994-09-26 Senate Journal Page 4851 SENATE JOURNAL ALASKA STATE LEGISLATURE EIGHTEENTH LEGISLATURE - SECOND SPECIAL SESSION Juneau, Alaska Monday September 26, 1994 First Day Pursuant to the September 9th Proclamation of the Governor calling for the convening of the Second Special Session of the Eighteenth Legislature, the Senate was called to order by President Halford at 3:02 p.m. The roll showed seventeen members present. Senators Ellis, Lincoln and Zharoff were absent. The prayer was offered by the Chaplain, Senator Taylor. Senator Duncan moved and asked unanimous consent that the prayer be spread. Without objection, it was so ordered. Father, when we feel alone and burdened, let us feel your gentle touch. Be with us this day as we make decisions that involve those who trust us. Teach us that marvelous lesson that it is very possible we may be mistaken occasionally. When we are wrong, make us willing to admit it; and when we are right, make us easy to live with. Amen Senator Jacko led the Senate in the pledge of allegiance. CERTIFICATION Senator Taylor moved and asked unanimous consent that the final supplemental journal for the second regular and first special sessions of the eighteenth legislature be approved as certified by the Secretary. Without objection, it was so ordered. 4851 1994-09-26 Senate Journal Page 4852 The presence of Senator Ellis was noted. The Secretary read the following: PROCLAMATION Under the authority of art II, sec. 9, and art III, sec. 17, of the Alaska Constitution, and in the public interest, I call the Eighteenth Legislature of the State of Alaska into second special session at Juneau, Alaska in the legislative chambers on September 26, 1994 at 3:00 p.m. to consider enactment of laws: (1) addressing problems identified by the superior court with respect to settlement of the mental health trust litigation Weiss v. State, 4FA-82-2208 Civil as to (a) the Salcha land designated as mental health trust land; (b) miscellaneous errors and omissions in the list of land designated as mental health trust land; and (c) funding sources and amounts in the $200,000,000 appropriation to capitalize the mental health trust fund; (2) clarifying legal deadlines and modifying court appeals provisions to remove obstacles to the approval of the settlement of mental health land trust litigation, Weiss v. State, 4FA-82-2208 Civil; (3) regarding the funding source for certain appropriations relating to the mental health trust fund and the mental health trust income account, including technical corrections necessary to implement the settlement of the mental health trust litigation, Weiss v. State, 4FA-82-2208 Civil. 1994-09-26 Senate Journal Page 4853 Dated at Anchorage, Alaska this 9th day of September, 1994. /s/ Walter J. Hickel Governor INTRODUCTION AND REFERENCE OF SENATE BILLS SB 382 SENATE BILL NO. 382 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to the mental health land trust, the mental health trust income account, and the mental health land trust litigation, Weiss v. State, 4FA-82- 2208 Civil, and amending ch. 66, SLA 1991, and ch. 5, FSSLA 1994 relating to the trust, the account, and the litigation; and providing for an effective date." was read the first time and referred to the Finance Committee. Zero fiscal note from Office of the Governor published today. Governor's transmittal letter dated September 26: Dear Mr. President: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a substantive bill and an appropriation bill that relate to the mental health trust, the mental health trust income account, and the mental health trust litigation, Weiss v. State, 4FA- 82-2208 Civil. These bills do not, however, change the substance of the proposed settlement already enacted. While enactment of these bills may not be absolutely necessary for the court to grant final approval of the proposed settlement, they will clarify and implement certain provisions in the proposed settlement. This will significantly improve the probability of final court approval. 1994-09-26 Senate Journal Page 4854 SB 382 The bills have three main components: (1) corrections to the lists of land designated as mental health trust land or removed from the trust; (2) clarifying the funding sources for the $200,000,000 appropriation to capitalize the mental health trust fund and for certain other mental health operating and capital appropriations; and (3) clarifying and amending legal deadlines to remove obstacles to the settlement actually taking effect. With regard to the first of these components, corrections made by the substantive bill would add certain parcels to and delete certain parcels from the lists of land designated as mental health trust land under ch. 5, FSSLA 1994. This provision also would amend the list of land identified as removed from the trust under ch. 5, FSSLA 1994. (Although this second change is not legally required, it will serve to prevent any ambiguity.) The most significant correction relates to approximately 116,000 acres near Salcha, the mineral estate of which is designated as trust land. That land is included within a federal military land withdrawal and may never become available for designation to the trust. Accordingly, the parties have agreed to replace that land with other land of similar character and income producing potential. The other corrections are technical and address problems discovered after the legislature adjourned from the first special session this year. In granting preliminary approval of the settlement, the trial court encouraged the parties to find solutions to the problems with the land lists, especially the federal military withdrawal of the Salcha land. The court also warned that the court and beneficiaries would be forced to examine the degree of risk posed by those problems and the impact on the settlement if no solutions are found. The substantive bill provides the solution to these problems. The second component addresses a change in conditions affecting the funding sources of the $200,000,000 appropriation to capitalize the mental health fund. It now appears there may be a shortfall from one or more of the funding sources for that appropriation. Therefore, the appropriation bill provides that shortfalls may be made up through additional amounts from the mental health land revenue on deposit in the general fund and the mental health trust income account. In addition, there is ambiguity as to the funding source for $33,000,000 of the $200,000,000 appropriation to capitalize the 1994-09-26 Senate Journal Page 4855 SB 382 mental health trust fund and certain other mental health appropriations. The $33,000,000 was appropriated from the mental health trust income account (AS 37.14.011), but that account was repealed on June 24, 1994, (secs. 39 and 52, ch. 5, FSSLA 1994). To resolve the ambiguity, the substantive bill revives the mental health trust income account (AS 37.14.011(a)) retroactive to June 24, 1994. It also provides for the repeal of the account when it is no longer needed to finance appropriations enacted by law. Finally, because the revenues that previously went into the account (AS 37.14.011(b) and (c)) now go into the general fund, the appropriation bill also provides that the general fund is to cover any shortfall in funding appropriations from the account. (And, to distinguish it from the mental health trust income account that will be repealed once it is no longer necessary, the name of the new account into which trust income will be deposited and from which the Mental Health Trust Authority will fund grants and contracts is changed to the "mental health trust settlement income account.") In granting preliminary approval, the trial court identified the potential shortfall in the $200,000,000 appropriation as a problem. As with the land lists, the trial court encouraged the parties to find a solution. The court further warned that it and the beneficiaries would be forced to examine the degree of risk posed by the funding source problem and the impact on the settlement if no solution is found. Provisions in the substantive and appropriation bills take care of these potential problems. Finally, the bills modify the requirement for dismissal of the mental health trust litigation for the settlement to become effective. First, they provide that the deadline only applies to dismissal of the case by the superior court. This modification will preclude any person or party from unilaterally preventing the settlement from taking effect simply by appealing the dismissal to a higher court. In the unlikely event the superior court's dismissal is reversed on appeal, the settlement provisions are repealed through sunset clauses. Second, they clarify that the statutory benefits offered the mental health community under the settlement become effective if the litigation is dismissed by the specified deadline, December 15, 1994. Third, because the settlement takes effect upon dismissal by the superior court, the authorization for the governor to extend the deadline by up to 45 days is repealed. 1994-09-26 Senate Journal Page 4856 SB 382 In granting preliminary approval of the settlement, the trial court noted as "problematic" the possibility of a party preventing the settlement from taking effect simply by filing an appeal. These modifications eliminate that possibility and give all the terms of the settlement a common effective date. The people of Alaska will substantially benefit from the final resolution of this almost 12-year-old litigation. The proposed settlement offers significant advantages to the mental health community, many of which could not be obtained through continued litigation. In addition, settlement will enable the mental health community to focus its energies on the important task of delivering mental health services rather than on the litigation. The rest of the Alaska public also will benefit from the significant savings of litigation expenses and from the lifting of the cloud the litigation has placed on development of state and private land. I urge your prompt action on these measures. Sincerely, /s/ Walter J. Hickel Governor SB 383 SENATE BILL NO. 383 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act making and amending appropriations relating to the mental health trust fund, the mental health trust income account, and the mental health trust settlement income account; and providing for an effective date." was read the first time and referred to the Finance Committee. See SENATE BILL NO. 382 for Governor's transmittal letter. 1994-09-26 Senate Journal Page 4857 The presence of Senators Lincoln and Zharoff was noted. ANNOUNCEMENTS Announcements are at the end of the journal. ADJOURNMENT Senator Taylor moved and asked unanimous consent that the Senate stand in adjournment until 11:00 a.m., September 27, 1994. Without objection, the Senate adjourned at 3:15 p.m. Nancy Quinto Secretary of the Senate September 1994 1994-09-26 Senate Journal Page 4858 ANNOUNCEMENTS NOTICE - AMERICANS WITH DISABILITIES ACT Persons with disabilities who require special accommodation or alternative communication formats to access committee meetings may contact the appropriate committee office or the Legislative Information Office in their community. Reasonable advance notice is needed to accommodate the request. For further information, call the ADA Coordinator at 465-3854 Voice/465-4980 TDD. STANDING COMMITTEES FINANCE SENATE FINANCE 518 SEP 26 MONDAY 4:00 PM JOINT WITH HOUSE FINANCE SB 382 MENTAL HEALTH LAND TRUST SETTLEMENT SB 383 AMENDMENTS TO MENTAL HEALTH TRUST APPROPS TELECONFERENCED FROM 4 - 6:00 PM HB 549 AND HB 550, SIMILAR LEGISLATION, WILL ALSO BE HEARD JOINT COMMITTEES LEGISLATIVE BUDGET AND AUDIT HOUSE FINANCE 519 SEP 26 MONDAY 11:00 AM TELECONFERENCED - ANCHORAGE - FAIRBANKS SEP 27 TUESDAY 8:30 AM LEGISLATIVE BUDGET AND AUDIT ---------------------------------------- SELECT CMTE ON LEGISLATIVE ETHICS ANCHORAGE OCT 06 THURSDAY 10:00 AM ANCHORAGE LIO - SECOND FLOOR CONFERENCE ROOM 10:00 AM - NOON LEGISLATION SUBCOMMITTEE 1:00 PM - 4:00 PM OPEN MEETINGS ADVISORY COMMITTEE OCT 07 FRIDAY 9:30 AM ANCHORAGE LIO - SECOND FLOOR CONFERENCE ROOM 9:30 AM - 5:00 PM