Cases

Adrian v. Adrian, 838 P.2d 808 (Alaska 1992) 65

Agostinho v. Fairbanks Clinic Partnership, 821 P.2d 714 (Alaska 1991) 34

Aguchak v. Montgomery Ward Co., Inc., 520 P.2d 1352, 1356 (Alaska 1974) 106

Arctic Slope Regional Corporation 40

Arizona State Land Dept. v. Superior Court, 633 P.2d 330 (Arizona 1981) 43

Armco Steel v. Isaacson Structural Steel, 611 P.2d 507 (Alaska 1980) 90

Burrell v. Burrell, 696 P.2d 157 (Alaska 1984) 55

Carvalho v. Carvalho, 838 P.2d 259 (Alaska 1992) 102, 105

Channel Flying, Inc., v. Berhnhardt, 451 P.2d 570 (Alaska 1969) 106

City of Sierra Vista v. Babbitt, 633 P.2d 333 (Arizona 1981) 43, 51

County of Skamania v. State, 685 P.2d 576(Wash. 1984) 43

DNR v. Arctic Slope Regional Corporation, 834 P.2d 134 (Alaska 1992) 32, 52, 91

Donnybrook Bldg. Supply v. Interior City, 798 P.2d 1263 (Alaska 1990) passim

Eisen v. Carlisle & Jacquelin, 417 U.S. 156 (1974) 101

Ervien v. United States, 251 U.S. 41 (U.S. 1919). 87

Ferguson v. Alaska, 816 P.2d. 134 (Alaska 1991) 29

Fleming v. City of Tacoma, 502 P.2d 327 (Wash. 1972) 45

Freightways Terminal Company v. Industrial & Commercial Construction, Inc., 381 P.2d 977 (Alaska 1963) 3

Frontier Saloon, Inc., v. CAWP Beverage Control Board, 524 P.2d 657 (Alaska 1974) 106

Gladden Farms, Inc., v. State, 633 P.2d 325 (Arizona 1981) 42, 50

GM Pick-Up Fuel Tank Products Liability Litigation, 55 F.3d 768 (3^rd Cir. 1995) passim

Gonzalez v. Cassidy, 474 F.2d 67 (5^th Cir. 1973) 29

Gould v. Alleco, Inc., 883 F.2d 281 (4th Cir. 1989) 102

Hansberry v. Lee, 311 U.S. 32 (1940) 29

Huf v. Arctic Alaska Drilling Company, Inc., 890 P.2d 579 (Alaska 1995) 31, 85

Hughes v. Bobich, 875 P.2d 749 (Alaska 1994) 34, 37, 54

In re Washington Public Power Supply System Securities Litigation, 673 F.Supp 411 (W.D.Wash. 1987) 44, 45

In re: Corrugated Container Antitrust Litigation, 643 F.2d 195 (5th Cir. 1981) 101

In re: Federal Skywalk Cases, 97 F.R.D. 365 (W.D. Mo. 1982) 101

In re: General Motors Corporation Engine Interchange Litigation, 594 F.2d 1106 (7th Cir. 1979) passim

In the Matter of Mendel, 897 P.2d 68 (Alaska 1995) 31, 85, 91

Jackson v. Barbero, 776 P.2d 786 (Alaska 1989) passim

Kadish v. Arizona State Land Dept., 747 P.2d 1183 (Arizona 1987) 42, 43, 59

Krahmer v. McClafferty, 288 A.2d 678 (Del. 1972) 45

Lassen v. Arizona, 385 U.S. 458 (U.S. 1967) 51, 88

Lewis v. Lewis, 469 P.2d 689 (Alaska 1970) 34, 37

Malchman v. Davis, 706 F.2d 426 (2nd Cir. 1983) 91

Morales v. Turman, 569 F. Supp. 332 (1983) 56, 57

Morris v. Morris, 908 P.2d 425 (Alaska 1995) 55

Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (1949) 105

Murphy v. State, 181 P.2d 336 (Arizona 1947) 47

Nass v. Seaton, 904 P.2d 412 (Alaska 1995) passim

O'Link v. O'Link, 632 P.2d 225 (Alaska 1981) 55

Payne v. Travenol Labs, Inc., 673 F.2d 798, (5th Cir 1982) 100

Pettway v. American Cast Iron Pipe Co., 576 F.2d 1157 (5th Cir. 1978) 56, 108

Plateau Min. v. Utah Div. of State Lands, 802 P.2d 720 (Utah 1990) 43

Propst v. Nebraska Bd. of Educational Lands, 55 N.W.2d 653 (Nebraska 1953) 42, 46

Rayner v. City of Leavenworth, 821 P.2d 1204 (Wash. 1992) 46

Saylor v. Lindsey, 456 F.2d 896 (2nd Cir. 1972) 36

Seattle Audubon Soc. v. Robertson, 914 F.2d 1311 (9th Cir. 1990) 44

See Parker v. Alaska Power Authority, (Alaska Slip Opinion No. 4331 - March 29, 1996) 98

Sloan v. Jefferson, 758 P.2d 81 (Alaska 1988) 65

State ex rel Ebke v. Board of Educational Lands and Funds, 47 N.W.2d 520 (Nebraska 1951) 42, 46

State v. 18,013 Square Feet, 621 P.2d 887 (Alaska 1981) 109

State v. Alaska Land Title Ass'n., 667 P.2d 714 (Alaska 1983) 42, 46

State v. Cooley, 56 N.W.2d 129 (Nebraska 1952) 42, 46

State v. Weiss , 706 P.2d 681 (Alaska 1984) passim

Teacher Bldg. Co. v. City of Las Vegas, 232 P.2d 119 (Nev. 1951) 45

United States v. Klein, 80 U.S. 128 (1871) 44

United States v. New Mexico, 536 F.2d 1324 (10th Cir. 1976) 88, 89

United States v. Silver Queen Mining Co., 285 F.2d 506 (10th Cir. 1960) 67

University of Alaska, 624 P.2d 807 (Alaska 1981) 41, 48, 49, 50

Urban Dev.Co.v.Dekreon, 526 P.2d 325 (Alaska 1974) 49, 86

Williams v.Vukovitch, 720 F.2d 909 (6^th Cir. 1983) 36, 58, 79, 85

Statutes

§ 6(i) Alaska Statehood Act, Pub.L. No. 85-508, 72 Stat. 339 99

§ 202(e), Alaska Mental Health Enabling Act (Enabling Act), Pub.L. No. 84-830, 70 Stat. 709 (1956) passim

Chs. 181 & 182 SLA 1978 8

§ 1(b), Ch. 132 SLA 1986 11

§ 2(d), Ch. 132 SLA 1986 10, 12

§ 4, Ch. 132 SLA 1986 10

Ch. 48 SLA 1987 10, 11, 73

§ 1(a)(6), Ch. 48 SLA 1987 8, 64

§ 2, Ch. 48 SLA 1987 10

§ 3, Ch. 48 SLA 1987 10

§ 4, Ch. 48 SLA 1987 10, 11, 72

§ 6, Ch. 48 SLA 1987 10

§ 11, Ch. 48 SLA 1987 11

§ 2, Ch. 210 SLA 1990 12, 73

§ 10, Ch. 66 SLA 1991 14

§ 26, Ch. 66 SLA 1991 25

§ 54, Ch. 66 SLA 1991 13

§ 55 Ch. 66 SLA 1991 13

§ 55(h) Ch. 66 SLA 1991 13

§ 57(c) Ch. 66 SLA 1991 14

§§ 1(8)-(14) and 2 (b)(1)-(5), Ch. 5 FSSLA 1994 21

§ 4, Ch. 5 FSSLA 1994 25

§ 5, Ch. 5 FSSLA 1994 25, 80

§ 7, Ch. 5 FSSLA 1994 25, 80

§ 8(b)(1), Ch. 5 FSSLA 1994 24

§ 9(a)(1), Ch. 5 FSSLA 1994 24

§ 9(a)(4)(A), Ch. 5 FSSLA 1994 24

§ 9(a)(4), Ch. 5 FSSLA 1994 23

§ 9(a)(5), Ch. 5 FSSLA 1994 23

§ 10, Ch. 5 FSSLA 1994 20

§ 11(a), Ch. 5 FSSLA 1994 20

§ 11(b), Ch. 5 FSSLA 1994 21

§ 16, Ch. 5 FSSLA 1994) 78

§ 17(b), Ch. 5 FSSLA 1994 24

§ 17(c), Ch. 5 FSSLA 1994 79

§ 17, Ch. 5 FSSLA 1994 23

§ 22, Ch. 5 FSSLA 1994 23

§ 26, Ch. 5 FSSLA 1994 80

§ 27, Ch. 5 FSSLA 1994 25

§ 37, Ch. 5 FSSLA 1994 19, 26, 103

§ 38, Ch. 5 FSSLA 1994 19

§ 39, Ch. 5 FSSLA 1994 19

§ 40(a)(1), Ch. 5 FSSLA 1994 19

§ 40(c), Ch. 5 FSSLA 1994 20

§ 41(a)(2), Ch. 5 FSSLA 1994 19

§ 42, Ch. 5 FSSLA 1994 19

§ 44(a) Ch. 5 FSSLA 1994 20

§ 44(a), Ch. 5 FSSLA 1994 21

§ 44(b), Ch. 5 FSSLA 1994 20, 21

§ 47, Ch. 5 FSSLA 1994 26

§ 48, Ch. 5 FSSLA 1994 19

§ 49, Ch. 5 FSSLA 1994 19

§ 1(a), Ch. 6 FSSLA 1994 23

§ 2, Ch. 1 SSSLA 1994 19, 103

§ 3, Ch. 1 SSSLA 1994 19

§ 4, Ch. 1 SSSLA 1994 19

§ 8, Ch. 1 SSSLA 1994 19

§ 9, Ch. 1 SSSLA 1994 19

§ 10, Ch. 1 SSSLA 1994 19

§ 11, Ch. 1 SSSLA 1994 19

§ 12, Ch. 1 SSSLA 1994 19

§ 13, Ch. 1 SSSLA 1994 19, 26

§ 14, Ch. 1 SSSLA 1994 19

§ 15, Ch. 1 SSSLA 1994 19

§ 1(a), Ch. 2 SSSLA 1994 23

§ 110, Ch. 21 SLA 1995 25, 80

Treatises

§2864 of Wright & Miller, Federal Practice and Procedure at 213-14 (1973) 55

7B Wright & Miller, § 1797, 100

Manual for Complex Litigation, 2d, §30.44 33

Restatement (Second) of Trusts, §§ 286, 288, 289, 291 and 297 42

Restatement (Third) of Trusts, § 170 43, 49

Restatement (Third) of Trusts, § 205 35

Constitutional Provision, Statutes, Rules of Court

Federal Constitutional Provisions

U.S. Constitution, art. VI, cl. 2

U.S. Constitution, Amendment V

No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

U.S. Constitution, Amendment XIV

State Constitutional Provisions

Alaska Constitution, Art. I, § 7

Due Process. No person shall be deprived of life, liberty, or property, without due process of law. The right of all persons to fair and just treatment in the course of legislative and executive investigations shall not be infringed.

Public Laws

§ 202, Pub. L. 84-830 (Alaska Mental Health Enabling Act, 1956)

Sec 202. (a) The Territory of Alaska is hereby granted and shall be entitled to select, within ten years from the effective date of this Act, not to exceed one million acres from the public lands of the United States in Alaska which are vacant, unappropriated, and unreserved at the time of their selection: Provided, That nothing herein contained shall affect any valid existing rights. All lands duly selected by the Territory of Alaska pursuant to this section shall be patented to the Territory by the Secretary of the Interior.

(b) The lands authorized to be selected by the Territory by subsection (a) of this section shall be selected in such manner as the laws of the Territory may provide, and in conformity with such regulations as the Secretary of the Interior may prescribe. The authority to make selections shall never be alienated or bargained away, in whole or in part, by the Territory. All selections shall be made in reasonably compact tracts, taking into account the situation and potential uses of the lands involved. Upon the revocation of any order of withdrawal in Alaska, the order of revocation shall provide for a period of not less than ninety days before the date on which it otherwise becomes effective during which period the Territory of Alaska shall have a preferred right of selection, subject to the requirements of this Act, except as against prior existing valid rights or as against equitable claims subject to allowance and confirmation. Such preferred right of selection shall have precedence over the preferred right of application created by section 4 of the Act of September 27, 1944 (58 Stat.748; 43 U.S.C., sec. 282), as now or hereafter amended, but not over other preference rights now conferred by law. As used in this subsection, the words "equitable claims subject to allowance and confirmation" include, without limitation, claims of holders of permits issued by the Department of Agriculture on lands eliminated from national forests, whose permits have been terminated only because of such elimination and who own valuable improvements on such lands.

(c) All grants made or confirmed under this section shall include mineral deposits: Provided, however, That mineral deposits in lands which on January 1, 1956, were subject to public land order numbered 82 of January 1943, shall not be included in said grants, but shall continue to be reserved to the United States.

(a) Following the selection of lands by the Territory pursuant to subsection (b), but prior to the issuance of final patent, the Territory shall be authorized to lease and to make conditional sales of such selected lands.

(b) All lands granted to the Territory of Alaska under this section, together with the income therefrom and the proceeds from any dispositions thereof, shall be administered by the Territory of Alaska as a public trust and such proceeds and income shall first be applied to meet the necessary expenses of the mental health program of Alaska. Such lands, income, and proceeds shall be managed and utilized in such manner as the Legislature of Alaska may provide. Such lands, together with any property acquired in exchange therefor or acquired out of the income or proceeds therefrom, may be sold, leased, mortgaged, exchanged, or otherwise disposed of in such manner as the Legislature of Alaska may provide, in order to obtain funds or other property to be invested, expended, or used by the Territory of Alaska. The authority of the Legislature of Alaska under this subsection shall be exercised in a manner compatible with the conditions and requirements imposed by other provisions.

§§ 6(i) and (k), Pub. L. 85-508 (Alaska Statehood Act, 1956)

§ 6(i) All grants made or confirmed under this Act shall include mineral deposits. The grants of mineral lands to the State of Alaska under subsections (a) and (b) of this section are made upon the express conditions that all sales, grants, deeds, or patents for any of the mineral lands so granted shall be subject to and contain a reservation to the State of all of all of the minerals so sold, granted, deeded, or patented, together with the right to prospect for, mine, and remove the same. Mineral deposits in such lands shall be subject to lease by the State as the State legislature may direct: Provided, That any lands or minerals hereafter disposed of contrary to the provisions of this section shall be forfeited to the United States by appropriate proceedings instituted by the Attorney General for that purpose in the United States District Court for the District of Alaska.

§ 6(k) Grants previously made to the Territory of Alaska are hereby confirmed and transferred to the State of Alaska upon its admission. Effective upon the admission of the State of Alaska into the Union, section 1 of the Act of March 4, 1915 (38 Stat. 1214; 48 U.S.C., sec. 353), as amended, and the last sentence of section 35 of the Act of February 25, 1920 (41 Stat. 450; 30 U.S.C., sec. 191), as amended are repealed and all lands therein reserved under the provisions of section 1 as of the date of this Act shall, upon the admission of said State into the Union, be granted to said State for the purposes for which they were reserved; but such repeal shall not affect any outstanding lease, permit, license, or contract issued under said section 1, as amended, or any rights or powers with respect to such lease, permit, license, or contract, and shall not affect the disposition of the proceeds or income derived prior to such repeal from any lands reserved under said section 1, as amended, or derived thereafter from any disposition of the reserved lands or an interest therein made prior to such repeal.

Alaska Statutes

Alaska Statute 37.14.041 [Added by Section 16 of HB 201, (ch. 5 FSSLA 1994)]

Sec. 37.14.041. Use of trust income account. (a) Money in the mental health trust income account may only be used for the following purposes:

(1) the awarding of grants and contracts in fulfillment of the authority's purpose to ensure an integrated comprehensive mental health program for the state;

(2) obtaining private and federal grants for a purpose described in (1) of this subsection;

(3) soliciting gifts, bequests, and contributions for a purpose described in (1) of this subsection;

(4) reimbursement to

(A) the Alaska Permanent Fund Corporation for the costs of managing the principal of the mental health trust fund; and

(B) the Department of Natural Resources for the cost of managing mental health trust land;

(5) offsetting the effect of inflation on the value of the principal of the mental health trust fund; and

(1) subject to AS 37.07 (Executive Budget Act), meeting the necessary administrative expenses of the authority that are required for it to properly discharge its responsibilities.

Ch 132 SLA 1986

"An Act relating to the interim management of the mental health trust; and providing for an effective date."

------

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

* Section 1. (Ch. 132 SLA 1986) INTERIM MENTAL HEALTH TRUST COMMISSION ESTABLISHED. (a) The interim mental health trust commission is established in the Department of Natural Resources.

(b) The commission established under (a) of this section consists of five members, including the commissioner of natural resources and the commissioner of health and social services, or their designees, and three members and three alternates appointed by the governor as follows:

(1) a member and an alternate representing the plaintiffs, appointed by the governor from a list of three names submitted to the governor by the plaintiffs in Weiss v. State, 4 FA 82-2208 Civil;

(2) a member and an alternate representing the intervenors, appointed by the governor from a list of three names submitted to the governor by the intervenors in Weiss v. State, 4 FA 82-2208 Civil; and (3) a member and an alternate representing the Governor's Mental Health Advisory Council, appointed by the governor from a list of three names submitted to the governor by the Governor's Mental Health Advisory Council.

(c) The members of the commission shall elect a presiding officer. A majority of the commission constitutes a quorum. The affirmative vote of three members is required to take official action. A vacancy does not impair the power of the remaining members to exercise the powers of the commission.

(d) In the absence of the member, an alternate appointed under (b) of this section may vote and has all the powers of a member.

(e) Members of the commission serve without compensation but are entitled to per diem and travel expenses authorized by law for other boards under AS 39.20.180.

(f) The commission shall meet at least quarterly and may meet more frequently, either in person or by teleconference.

(g) The commission shall prepare a budget allocating the funds appropriated to it for the performance of its responsibilities and may contract with parties or individuals for the performance of functions it considers necessary, including the services of an executive director and staff.

(b) An individual who acquires information made confidential by law or regulation in the performance of functions authorized by this Act and discloses it without proper authority violates AS 11.56.860.

(c) The commissioner of natural resources shall, with the approval of the commission, retain an appraiser or appraisers to appraise all or a portion of land that, at any time, was part of the mental health trust land of the state. The commissioner shall provide an appraiser conducting an appraisal with written procedures and instructions that have been approved by the commission.

(d) The commissioner of natural resources is responsible for the management of the mental health land of the state as a public trust under P.L. 84-830, 70 Stat. 709. Except as provided in (e) of this section, the commissioner of natural resources may not sell, lease, or exchange mental health trust land of the state or an interest in the mental health trust land of the state without the prior approval of the commission. In reviewing a proposal for the sale, lease, or exchange of mental health trust land from the commissioner of natural resources, the commission may approve the proposal of the commissioner on its determination that the proposal is consistent with the terms of the trust established by the Alaska Mental Health Enabling Act.

(e) The commissioner of natural resources may transfer trust land to the federal government under AS 38.05.035(b)(9) without approval of the commission. The commissioner of natural resources shall advise the commission of an intention to transfer trust land to the federal government and, after the transfer, shall make every effort to acquire replacement land to fulfill the state's remaining entitlement based on a prioritization, approved by the commission, of existing valid mental health selection.

(f) The proceeds from the management of the mental health trust land of the state shall be deposited in a special trust account in the general fund of the state and shall first be applied to meet the necessary expenses of the mental health program of the state.

(b) The legislative auditor shall audit the state's mental health program under the procedures and guidelines established in (a) of this section.

The commission shall submit a report to the legislature by the 10th day of the First Session of the Fifteenth State Legislature on matters of concern to the commission.

The report shall include its recommendations for amendment of the laws relating to the management of the mental health trust account, the mental health trust land, and the mental health program of the state.

§§ 1-4, 6-9, 11 ch 48 SLA 1987 [ Each attempt to convert or reestablish the trust has been sanctioned by the legislative process. It is necessary to refer to the body of law as passed by the legislature prior to the statutory revision process to understand the various settlements. The settlements have taken the name of the Chapter of law proposed, i.e. "Chapter 48 Settlement", "Chapter 66 Settlement" etc. For that reason, various Alaska statutes are cited and referenced as chapters.]

Sec. 1. (Ch. 48 SLA 1987)

(a) The legislature finds: . . .

(6) because of the highly desirable location and character of much of the land selected by the state under the Act, for example, in and around major population centers, suitable for parks and game refuges, and other uses, and the difficulties associated with disposing of or dedicating the land for purposes that would not result in the receipt of funds that could be used for mental health purposes, for example, satisfaction of municipal entitlements, placement in parks and game refuges, and other uses, without compensation to the trust,

* Sec. 2. (Ch. 48 SLA 1987) AS 37.14 is amended by adding a new section to read:

Sec. 37.14.011. MENTAL HEALTH TRUST INCOME ACCOUNT. (a) The mental health trust income account is established as a separate account in the general fund.

(b) The amount determined under (c) of this section as the fair market rental of the land constituting the mental health trust corpus is the earnings of the trust and the commissioner of revenue shall annually allocate that amount from the general fund of the state to the mental health trust income account in the general fund of the state.

(a) The fair market rental value of the land constituting the mental health trust corpus is equal to eight percent of the fair market value of the land. Following the initial determination of the fair market value of the land selected by and patented to the state under sec. 202 of the Alaska Mental Health Enabling Act, the commissioner of natural resources shall redetermine the fair market value of the land constituting the mental health trust corpus at least every five years, and provide the redetermined value to the commissioner of revenue and the board established under AS 47.30.661.

* Sec. 3. AS 37.14 (Ch. 48 SLA 1987) is amended by adding a new section to read:

Sec. 37.14.021. UTILIZATION OF THE MENTAL HEALTH TRUST INCOME ACCOUNT. Money in the mental health trust income account established in AS 37.14.011(a) shall first be appropriated by the legislature to meet the necessary expenses of the mental health program of the state. In making annual appropriations from the mental health trust income account, the legislature shall consider the recommendations of the Alaska Mental Health Board established under AS 47.30.661, including recommendations regarding capital improvements. After the necessary expenses of the state's mental health program have been funded, the legislature may make appropriations from the mental health trust income account for other public purposes.

* Sec. 4. (Ch. 48 SLA 1987) AS 38.05 is amended by adding a new section to article 11 to read:

Sec. 38.05.800. RECONSTITUTION AND ADMINISTRATION OF MENTAL HEALTH LAND TRUST. (a) The commissioner of natural resources, under procedures approved by the interim mental health trust commission, shall determine the fair market value, as of the effective date of this section, of all land selected by and patented to the state under the Alaska Mental Health Enabling Act. The commissioner shall report the determination of that value to the board established under AS 47.30.661.

(b) The commissioner of natural resources, with the approval of the interim mental health trust commission, shall identify land within legislative designations that is equal in value to all land selected by and patented to the state under sec. 202 of the Alaska Mental Health Enabling Act that is not in legislative designations.

* Sec. 6. (Ch. 48 SLA 1987) AS 47.30 is amended by adding new sections to read:

Sec. 47.30.666. POWERS, DUTIES, AND RESPONSIBILITIES OF THE BOARD. The board shall

(3) determine the needs, including those currently unmet, of the persons to be served by the mental health program of the state;

* Sec. 7. (Ch. 48 SLA 1987) Section 1(b), ch. 132, SLA 1986, is amended to read:

(b) The commission established under (a) of this section consists of three FIVE members, including the commissioner of natural resources, or the commissioner's designee AND THE COMMISSIONER OF HEALTH AND SOCIAL SERVICES, OR THEIR DESIGNEES , and two THREE members and two THREE alternates APPOINTED BY THE GOVERNOR as follows:

(1) a member and an alternate representing the plaintiffs who were, appointed by the governor from a list of three names submitted to the governor by the plaintiffs in Weiss v. State, 4 FA 82-2208 Civil;

(2) a member and an alternate representing the intervenors who were, appointed by the governor from a list of three names submitted to the governor by the intervenors in Weiss v. State, 4 FA 82-2208 Civil ; AND

(3) A MEMBER AND AN ALTERNATE REPRESENTING THE GOVERNOR'S MENTAL HEALTH ADVISORY COUNCIL, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE NAMES SUBMITTED TO THE GOVERNOR BY THE GOVERNOR'S MENTAL HEALTH ADVISORY COUNCIL.

* Sec. 9 (Ch. 48 SLA 1987) Section 2, ch. 132, SLA 1986 is repealed and reenacted to read:

(d) The commissioner of natural resources is responsible for the management of the mental health land of the state as a public trust under P.L. 84-830, 70 Stat. 709. Except as provided in (e) of this section, the commissioner of natural resources may not sell, lease, or exchange mental health trust land of the state or an interest in the mental health trust land of the state without the prior approval of the commission. In reviewing a proposal for the sale, lease , or exchange of mental health trust land from the commissioner of natural resources, the commission may approve the proposal of the commissioner on its determination that the proposal is consistent with the terms of the trust established by the Alaska Mental Health Enabling Act.

* Sec. 11. (Ch. 48 SLA 1987) TRANSITIONAL PROVISIONS. Beginning with fiscal year 1989 and continuing until the commissioner of natural resources certifies to the commissioner of revenue that the mental health land trust has been reconstituted under AS 38.05.800, as enacted in sec. 4 of this Act, the commissioner of revenue shall annually allocate from the general fund of the state to the mental health trust income account in the general fund an amount equal to five percent of the unrestricted revenue of the state for the fiscal year.

ch 210 SLA 1990

------

An Act relating to the reconstitution and administration of the mental health trust; and providing for an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

* Section 1. (Ch. 210 SLA 1990) AS 37.14.011(b) is amended to read:

(b) The amount determined under (c) of this section as the [FAIR MARKET] rental value of the land constituting the mental health trust corpus is the earnings of the trust and the commissioner of revenue shall annually allocate that amount from the general fund to the mental health trust income account.

(c) The rental value of the land constituting the mental health trust corpus is equal to six percent of the unrestricted general fund revenue of the state for the fiscal year.

Sec. 37.14.021. UTILIZATION OF THE MENTAL HEALTH TRUST INCOME ACCOUNT. Money in the mental health trust income account established in AS 37.14.011(a) shall first be appropriated by the legislature to meet the necessary expenses of the mental health program of the state. In making annual appropriations from the mental health trust income account, the legislature shall consider the recommendations of the Alaska Mental Health Board established under AS 47.30.661, including recommendations regarding capital improvements. After the necessary expenses of the state's mental health program have been funded, the legislature may authorize transfer of the unobligated and unappropriated fiscal year-end balance in the mental health trust income account as of June 30 to the unreserved portion of the general fund [MAKE APPROPRIATIONS FROM THE MENTAL HEALTH TRUST INCOME ACCOUNT] for other public purposes.

Sec. 38.05.800. RECONSTITUTION AND ADMINISTRATION OF MENTAL HEALTH LAND TRUST. (a) All land within legislative designations on September 7, 1987, constitutes the corpus of the mental health land trust.

(b) On reconstitution of the trust under this section, land the state receives under sec. 202 of the Alaska Mental Health Enabling Act that is not within legislative designations is removed from trust status.

(c) The land within legislative designations that constitutes the mental health land trust shall be administered for the legislatively designated purposes. The state shall continue to manage the legislatively designated areas in accordance with state law and policy; the authority of the state includes the issuance of permits, rights-of-ways, mining leases, oil and gas leases, coal leases, timber contracts, and other actions that do not constitute a conveyance in fee simple. The income from the use of the trust land shall be deposited into the mental health trust income account.

(d) Before the state may remove land that is part of the mental health trust corpus from trust status, and in addition to any other requirements of law, the commissioner, consistent with the state's trust responsibilities, shall consult with the Alaska Mental Health Board, shall identify replacement land, equal in value at the time of replacement, within legislative designations and incorporate them into the mental health trust corpus. The commissioner annually shall report any actions under this subsection to the board established under AS 47.30.661.

* Sec. 5. (Ch. 210 SLA 1990) The provisions of this Act are not severable.

* Sec. 6. (Ch. 210 SLA 1990) Section 2(a), ch. 132, SLA 1986, as amended by sec. 9, ch. 48, SLA 1987, is repealed.

* Sec. 7. (Ch. 210 SLA 1990) Section 11, ch. 48, SLA 1987 is repealed.

* Sec. 8. (Ch. 210 SLA 1990) This Act takes effect immediately under AS 01.10.070(c).

§§ 10, 27, 54, 55, 57 ch 66 SLA 1991

* Sec. 10. (Ch. 66 SLA 1991)

Sec. 37.14.007 AUTHORITY AS TRUSTEE. (a) The Alaska Mental Health Trust Authority, established by AS 47.30.011, is the trustee of the trust established under the Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709.

(b) In exercising the powers, duties, and responsibilities as trustee, the authority is under a duty to the public and the trust beneficiaries to

(1) administer the trust solely in the interest of the beneficiaries;

(2) keep and render clear and accurate accounts with respect to the administration of the trust;

(3) make public and available complete and accurate information as to the nature and amount of the trust property;

(4) exercise a high degree of care in administering the trust;

(5) take reasonable steps to take and keep control of the trust property;

(6) use care and skill to preserve the trust property;

(7) take reasonable steps to realize on claims that are held in trust;

(8) defend against actions that may result in a loss to the trust estate, unless under all the circumstances, considering the other duties owed to the trust, it is reasonable not to make the defense;

(9) separately account for trust property;

(10) ensure that truest property is designated as property of the trust;

(11) use care and skill to make the trust property productive; however, nothing in this paragraph shall prevent the state from using trust property directly or indirectly, by contractual stipulation or otherwise, as a component of the state's mental health trust program; and

(12) deal impartially with the different trust beneficiaries as provided in AS 47.30.056.

* * *

Sec. 37.14.009 TRUST MANAGEMENT. (a) The Alaska Mental Health Trust Authority

(1) shall manage the assets of the trust in a fiduciary manner to fulfill the purposes of the trust;

(2) may, consistent with (1) of this subsection and AS 47.30.036(1), sell, lease, exchange, or otherwise dispose of land in the trust;

(3) may, consistent with (1) of this subsection, use land that is an asset of the trust directly for the integrated comprehensive mental health program;

(4) may contract with the Department of Natural Resources to manage the land assets of the trust; and

(5) shall contract with the Alaska Permanent Fund Corporation for management of the trust's cash assets, unless the authority finds that the best interests of trust beneficiaries would be served by contracting with another entity.

(b) In exercising its power under (a)(2) or (3) of this section, the authority shall give public notice in the manner provided under AS 37.05.945(b) and (c), but is not otherwise bound by the provisions of AS 38.04 or AS 38.05.

* Sec. 27. (Ch. 66 SLA 1991)

Sec. 47.30.036 DUTIES OF THE BOARD. The board shall

(1) preserve and protect the trust corpus;

(2) coordinate with other state agencies involved with programs affecting persons in need of mental health services;

(3) review and consider the recommendations submitted under AS 44.21.230(a)(10), AS 44.29.140(2), AS 47.30.666(6), and AS 47.80.090(13);

(4) adopt bylaws governing its meetings, selection of officers, proceedings, and other aspects of board procedure;

(5) make an annual written report of its activities to the legislature, governor, and the public; and

(6) fulfill its obligations under AS 47.30.046.

* Sec. 54. (Ch. 66 SLA 1991) TRUST CORPUS RECONSTITUTED. For the purpose of reconstituting the mental health trust established under the Alaska Mental Health Enabling Act, P.L. 84-830, 70 Stat. 709 (1956), and after public notice as provided under AS 38.05.945(b) and (c), the commissioner of natural resources shall convey to the mental health trust authority established under AS 47.30.011, the following land in trust:

(1) land granted to the state under the Alaska Mental Health Enabling Act and not conveyed or encumbered by the state on or before the effective date of this Act;

(2) land granted to the state under the Alaska Mental Health Enabling Act that is, on the effective date of this Act, subject only to oil and gas leases, coal leases, or timber contracts;

(3) land granted to the state under the Alaska Mental Health Enabling Act that has been selected, on or before the effective date of this Act, by a municipality under AS 29.65 or under former AS 29.18.190 - 29.18.200 and which on the effective date of this Act has been neither approved nor disapproved by the director of the division of lands, Department of Natural Resources;

(4) land granted to the state under the Alaska Mental Health Enabling Act, that is , on the effective date of this Act, subject to a land use permit or a right-of-way issued by the Department of Natural Resources under AS 38.05;

(5) land granted to the state under the Alaska Mental Health Enabling Act and included, on the effective date of this Act, in the Haines State Forest Resource Management Area (AS 41.15.300) and the Tanana Valley State Forest (AS 41.17.400);

(6) other land granted to the state under the Alaska Mental Health Enabling Act that is acceptable to the plaintiffs in Weiss v. State, 4FA82-2008 Civil, and that has not, at the time of acceptance by the plaintiffs, been designated by law as a state park, state forest, state game refuge, state wildlife refuge, state game sanctuary, state recreational area, state recreational river, state wilderness park, state marine park, state special management area, state public use area, critical habitat area, bald eagle preserve, bison range, or moose range; and

(7) additional land to be conveyed to the authority under sec. 55 of this Act.

* Sec. 55. (Ch. 66 SLA 1991) COMPENSATION TO TRUST FOR ORIGINAL MENTAL HEALTH LAND NOT RETURNED TO TRUST CORPUS. (a) The commissioner of natural resources shall convey to the Alaska Mental Health Trust Authority established under AS 47.30.011, added by sec. 26 of this Act, state land in trust in exchange for the original mental health land and interests therein not returned to the corpus under sec. 54(1) - (6) of this Act.

(b) The commissioner may not convey under this section land in legislatively-designated areas unless specifically authorized by law. In this subsection, "legislatively-designated areas" means land designated by law as a state park, state forest, state game refuge, state wildlife refuge, state game sanctuary, state recreational area, state recreational river, state wilderness park, state marine park, state special management area, state public use area, critical habitat area, bald eagle preserve, bison range, or moose range.

(a) Exchanges under this section shall be based on equal fair market value.

(b) Exchanges under this section shall involve, as nearly as practicable, land of comparable character. In determining whether land proposed for exchange is of comparable character, the factors to be considered are:

(1) terrain;

(2) use;

(3) location;

(4) development potential;

(5) income potential;

(6) accessibility; and

(7) other physical characteristics.

(e) Additional factors that shall be considered in determining whether land proposed for exchange under this section should be conveyed by the commissioner of natural resources in trust to the authority are:

(1) ensuring an appropriate diversity in the character of land in the trust corpus and in state ownership;

(2) additional development and income generating potential as a result of trust ownership;

(3) the public interest in retaining specific land in state ownership;

(4) public benefits resulting from the exchange;

(5) benefits to the trust resulting from the exchange; and

(6) efficiency of land management resulting from the exchange.

(f) Exchanges under this section shall be negotiated by the plaintiffs in Weiss v. State of Alaska, 4FA-82-2208 Civil, and the commissioner of natural resources.

(a) The provisions of AS 38.50 do not apply to exchanges under this section.

(b) If agreement cannot be reached between the plaintiffs in Weiss v. State of Alaska, 4FA-82-2208 Civil, and the commissioner of natural resources under (f) of this section as to appropriate lands to be conveyed to the trust as compensation or as to the value of the original lands taken or of replacement lands, the Alaska Supreme Court shall resolve the disagreements using the criteria set out in this section. The Alaska Supreme Court may order the commissioner of natural resources to convey appropriate state land to the trust without further legislative authorization.

* Sec. 57. (Ch. 66 SLA 1991) JURISDICTION ASSIGNED TO THE ALASKA SUPREME COURT.

(c) The Alaska Supreme Court or the Superior Court may refer the proceedings under this section to a special master.

Ch 5 First Special Session Laws of Alaska (FSSLA) 1994 (HB 201) in its entirety is attached hereto as Appendix A.

Ch 6 FSSLA 1994

* Section 1. (Ch. 6 FSSLA 1994) (a) The sum of $200,000,000 is appropriated to the mental health trust fund (AS 37.14.031), added by sec. 11, ch. 66, SLA 1991, from the following sources, in the amounts listed, to capitalize the mental health trust fund: SOURCE

APPROPRIATION Mental health trust income account $ 33,000,000 (AS 37.14.011) balance on June 30, 1995 Department of Natural Resources - mental health11,700,000 trust income in the general fund Proceeds from sale of Department of 25,000,000 Natural Resources land sale contract portfolio Budget reserve fund (art. IX, 130,300,000 sec. 17(c), Constitution of the State of Alaska)

(b) The appropriations made by (a) of this section are contingent upon

(1) the enactment into law of a bill passed by the Eighteenth Alaska State Legislature that amends ch. 66, SLA 1991, and contains other provisions relating to the mental health land trust and mental health land trust litigation (Weiss v. State, 4FA- 82-2208 Civil); and

(2) not later than December 15, 1994,

(A) the superior court of the State of Alaska having made a final determination that the state has satisfied its obligation to reconstitute the mental health trust under State v. Weiss, 706 P.2d 681 (Alaska 1985);

(B) the superior court having entered a final order dismissing Weiss v. State, 4FA-82-2208 Civil; and

(C) the time for appeals of that determination and that order having expired with no appeals having been taken as of that date or any appeals taken having been finally resolved and the order dismissing Weiss v. State, 4FA-82-2208 Civil, having been affirmed on appeal.

(c) If, on or before November 30, 1994, the governor determines that it is in the best interest of the beneficiaries of the mental health trust and the state that the December 15, 1994, deadline in (b)(2) of this section be extended, the governor at that time may extend the December 15, 1994, deadline for not more than 45 days.

(d) The appropriation made by (a) of this section from the constitutional budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) is made under art. IX, sec. 17(c), Constitution of the State of Alaska.

(e) The appropriations made by (a) of this section are for the capitalization of funds and do not lapse.

* Sec. 2. (Ch. 6 FSSLA 1994) This Act takes effect immediately under AS 01.10.070(c).

Ch 1 Second Special Session Laws of Alaska (SSSLA) 1994

* Section 1. (Ch. 1 SSSLA 1994) AS 37.14.036(a), as added by sec. 11, ch. 66, SLA 1991 and amended by sec. 15, ch. 5, FSSLA 1994, is further amended to read:

(a) The mental health trust settlement income account is established as a separate account of the Alaska Mental Health Trust Authority. The mental health trust settlement income account consists of

(1) fees, charges, income earned on assets, and other money received by the trust that is not attributable to the principal of the trust under AS 37.14.031(d); and

(2) money deposited in the account in accordance with appropriations or allocations made by law.

* Sec. 2. (Ch. 1 SSSLA 1994) Section 58, ch. 66, SLA 1991, as repealed and reenacted by sec. 37, ch. 5, FSSLA 1994, is amended to read:

Sec. 58. (a) This Act takes effect only if, not later than December 15, 1994,

(1) the superior court of the State of Alaska has made a [FINAL] determination that the state has satisfied its obligation to reconstitute the mental health trust under State v. Weiss, 706 P.2d 681 (Alaska 1985); and

(2) the superior court has entered an [A FINAL] order dismissing Weiss v. State, 4FA-82-2208 Civil [; AND

(3) THE TIME FOR APPEALS OF THAT DETERMINATION AND THAT ORDER HAS EXPIRED WITH NO APPEALS HAVING BEEN TAKEN OR ANY APPEALS TAKEN HAVE BEEN FINALLY RESOLVED AND THE ORDER DISMISSING WEISS V. STATE, 4FA-82-2208 CIVIL, HAS BEEN AFFIRMED ON APPEAL].

(b) The attorney general shall advise the lieutenant governor and the revisor of statutes whether the determination required by (a)(1) of this section has been made and [,] whether the [FINAL] order required by (a)(2) of this section has been entered [, AND WHETHER, AS REQUIRED BY (a)(3) OF THIS SECTION, THE TIME FOR APPEALS OF THAT DETERMINATION AND THAT ORDER HAS EXPIRED WITH NO APPEALS HAVING BEEN TAKEN AS OF THAT DATE OR ANY APPEALS TAKEN HAVE BEEN FINALLY RESOLVED AND THE ORDER DISMISSING WEISS V. STATE, 4FA-82-2208 CIVIL, HAS BEEN AFFIRMED ON APPEAL].

* Sec. 3. (Ch. 1 SSSLA 1994) (a) Section 39, ch. 5, FSSLA 1994, is amended to read:

Sec. 39. AS 37.14.009(b), 37.14.011(b), 37.14.011(c) [37.14.011], 37.14.021, 37.14.036(c); AS 38.05.800; AS 47.30.031(b)(2); secs. 1, 2, 4, and 5, ch. 132, SLA 1986; secs. 7 - 10, ch. 48, SLA 1987; and secs. 49, 50, 53 - 57, ch. 66, SLA 1991, are repealed.

(b) The amendment made by (a) of this section is intended to revive AS 37.14.011(a), establishing the mental health trust income account in the general fund. This subsection provides the expression of intent to revive required by AS 01.10.100(c).

* Sec. 4. (Ch. 1 SSSLA 1994) Section 40(a), ch. 5, FSSLA 1994, is amended to read:

(a) For the purpose of reconstituting the mental health trust established under the Alaska Mental Health Enabling Act, P.L. 84-830, 70 Stat. 709 (1956), as required by the Alaska Supreme Court's decision in State v. Weiss [WEISS V. STATE], 706 P.2d 681 (Alaska 1985), the following land is designated as mental health trust land:

(1) the original mental health land listed in "Original Mental Health Land To Be Designated as Mental Health Trust Land, April 28, 1994," as amended by the additions and deletions listed in the September 23, 1994, addendum to the April 28, 1994, list described in this paragraph, both of which are located in the office of the director of the division of lands, Department of Natural Resources, in Anchorage, Alaska; and

(2) the state land listed in "Other State Land To Be Designated as Mental Health Trust Land, April 28, 1994," as amended by the additions and deletions listed in the September 23, 1994, addendum to the April 28, 1994, list described in this paragraph, both of which are located in the office of the director of the division of lands, Department of Natural Resources, in Anchorage, Alaska.

* Sec. 5. (Ch. 1 SSSLA 1994) Section 40(b), ch. 5, FSSLA 1994, is amended to read:

(b) All land designated as mental health trust land under this section remains subject to all encumbrances or interests of record, noted on records maintained by the Department of Natural Resources, or otherwise existing on the date that the land is designated as mental health trust land [EFFECTIVE DATE OF THIS SECTION].

* Sec. 6. (Ch. 1 SSSLA 1994) Section 41(a), ch. 5, FSSLA 1994, is amended to read:

(a) Except for the land described in sec. 40 of this Act,

(1) the conversion to general grant land by sec. 3(a), ch. 181, SLA 1978, and sec. 1(a), ch. 182, SLA 1978, of all land obtained by the state under the Alaska Mental Health Enabling Act, P.L. 84-830, 70 Stat. 709 (1956), and not listed in "Original Mental Health Land To Be Designated as Mental Health Trust Land, April 28, 1994," as amended by the additions and deletions listed in the September 23, 1994, addendum to the April 28, 1994, list described in this paragraph, both of which are located in the office of the director of the division of lands, Department of Natural Resources, in Anchorage, Alaska, is confirmed and ratified; and

(2) land patented to or approved for patent to the state under the Alaska Mental Health Enabling Act after July 1, 1978, and not listed in "Original Mental Health Land To Be Designated as Mental Health Trust Land, April 28, 1994," as amended by the additions and deletions listed in the September 23, 1994, addendum to the April 28, 1994, list described in this paragraph, both of which are located in the office of the director of the division of lands, Department of Natural Resources, in Anchorage, Alaska, is redesignated as general grant land if it was not converted to general grant land by sec. 3(a), ch. 181, SLA 1978, and sec. 1(a), ch. 182, SLA 1978.

* Sec. 7. (Ch. 1 SSSLA 1994) Section 41(b), ch. 5, FSSLA 1994, is amended to read:

(b) The land affected by this section includes the land listed in "Original Mental Health Land Not To Be Returned to Mental Health Trust Status, April 28, 1994," as amended by the additions and deletions listed in the September 23, 1994, addendum to "Original Mental Health Land To Be Designated as Mental Health Trust Land, April 28, 1994," all of which are located in the office of the director of the division of lands, Department of Natural Resources, in Anchorage, Alaska.

* Sec. 8. (Ch. 1 SSSLA 1994) Section 48, ch. 5, FSSLA 1994, is amended to read:

Sec. 48. If the conditions of sec. 58, ch. 66, SLA 1991, as amended by sec. 37 of this Act, are not met on or before December 15, 1994, [OR ON A DATE DETERMINED BY THE GOVERNOR UNDER SEC. 47 OF THIS ACT,] then ch. 66, SLA 1991, is repealed and secs. 3 - 9, 12 -16, 19 - 21, 23 - 30, 33 - 36, 43, and 46 of this Act do not take effect.

* Sec. 9. (Ch. 1 SSSLA 1994) Section 49, ch. 5, FSSLA 1994, is amended to read:

Sec. 49. If the conditions of sec. 58, ch. 66, SLA 1991, as amended by sec. 37 of this Act, are met on or before December 15, 1994, [OR ON A DATE DETERMINED BY THE GOVERNOR UNDER SEC. 47 OF THIS ACT,] then AS 37.14.013, added by sec. 10 of this Act, AS 37.14.023, added by sec. 11 of this Act, AS 47.30.546, and sec. 44 of this Act are repealed.

* Sec. 10. (Ch. 1 SSSLA 1994) Section 50, ch. 5, FSSLA 1994, is amended to read:

Sec. 50. Subject to sec. 48 of this Act, secs. 3 - 9, 12 - 16, 19 - 21, 23 - 30, 33 - 36, 43, and 46 of this Act take effect December 16, 1994 [, OR ON A DATE DETERMINED BY THE GOVERNOR UNDER SEC. 47 OF THIS ACT].

* Sec. 11. (Ch. 1 SSSLA 1994) Section 51, ch. 5, FSSLA 1994, is amended to read:

Sec. 51. Sections 48 and 49 of this Act take effect December 16, 1994 [, OR ON A DATE DETERMINED BY THE GOVERNOR UNDER SEC. 47 OF THIS ACT].

* Sec. 12. (Ch. 1 SSSLA 1994) AS 37.14.011(a) is repealed on the date that the director of the office of management and budget, Office of the Governor, certifies to the revisor of statutes that the mental health trust income account (AS 37.14.011) is no longer needed to finance appropriations enacted by law.

* Sec. 13. (Ch. 1 SSSLA 1994) Section 47, ch. 5, FSSLA 1994 is repealed.

* Sec. 14. (Ch. 1 SSSLA 1994) (a) The benefits conferred on the beneficiaries of the mental health trust under ch. 66, SLA 1991, chs. 5 and 6, FSSLA 1994, a bill passed by the Second Special Session of the Alaska State Legislature that amends ch. 6, FSSLA 1994 and becomes law, and this Act, are intended as part of a comprehensive settlement of the mental health trust land litigation, Weiss v. State, 4FA-82- 2208 Civil, and related cases.

(b) Sections 3 - 9, 12 - 16, 19 - 21, 23 - 30, 33 - 36, 43, and 46, ch. 5, FSSLA 1994 and ch. 66, SLA 1991, as amended by ch. 5, FSSLA 1994 and this Act, are repealed on the date that an order of dismissal entered by the superior court of Weiss v. State, 4FA- 82-2208 Civil, is reversed on appeal including a petition for certiorari to the United States Supreme Court. The attorney general shall certify that date to the lieutenant governor and the revisor of statutes.

* Sec. 15. (Ch. 1 SSSLA 1994) (a) If ch. 66, SLA 1991 and secs. 3 - 9, 12 - 16, 19 - 21, 23 - 30, 33 - 36, 43, and 46, ch. 5, FSSLA 1994 are repealed under sec. 14 of this Act, provisions of the Alaska Statutes that were

(1) enacted by ch. 66, SLA 1991 and those sections of ch. 5, FSSLA 1994 are repealed;

(2) amended by ch. 66, SLA 1991 and those sections of ch. 5, FSSLA 1994 are amended to read as they did on the day before the effective date of the amendments made by the repealed laws; however, unless inconsistent with this Act, amendments to those provisions that were made after the enactment of ch. 66, SLA 1991 and before the effective date of this section are not affected by this Act; and

(3) repealed by ch. 66, SLA 1991 and those sections of ch. 5, FSSLA 1994 are revived to read as they did on the day before the effective date of the repeal; however, a provision that was repealed by ch. 66, SLA 1991 and has been repealed by other legislation enacted after ch. 66, SLA 1991 and before the effective date of this section or that was repealed by ch. 5, FSSLA 1994 and has been repealed by other legislation enacted after ch. 5, FSSLA 1994 and before the effective date of this section is not revived.

(b) AS 37.14.013 and 37.14.023, enacted by secs. 10 and 11, ch. 5, FSSLA 1994, and repealed by sec. 49, ch. 5, FSSLA 1994, are revived.

(c) The effective date of a repeal, amendment, or revival described in (a) and (b) of this section is the date that the attorney general certifies to the lieutenant governor and the revisor of statutes under sec. 14(b) of this Act.

(d) The provisions of (a)(3) and (b) of this section provide the expression of intent to revive required by AS 01.10.100(c).

* Sec. 16. (Ch. 1 SSSLA 1994) If ch. 66, SLA 1991 and secs. 3 - 9, 12 - 16, 19 - 21, 23 - 30, 33 - 36, 43, and 46, ch. 5, FSSLA 1994 are repealed under sec. 14 of this Act, all grants made and contracts entered into by the Alaska Mental Health Trust Authority before the effective date of the repeal are ratified and responsibility for the administration of all grants and contracts of the authority is transferred to the Department of Health and Social Services.

* Sec. 17. (Ch. 1 SSSLA 1994) In ch. 66, SLA 1991 and ch. 5, FSSLA 1994, the revisor of statutes shall change references to the "mental health trust income account," as established by AS 37.14.036, to the "mental health trust settlement income account."

* Sec. 18. (Ch. 1 SSSLA 1994) Section 3 of this Act is retroactive to June 24, 1994.

* Sec. 19. (Ch. 1 SSSLA 1994) Sections 1 and 17 of this Act take effect December 16, 1994.

* Sec. 20. (Ch. 1 SSSLA 1994) Except as provided in sec. 19 of this Act, this Act takes effect immediately under AS 01.10.070(c).

Ch 2 Second Special Session Laws of Alaska (SSSLA) 1994

* Section 1. (Ch. 2 SSSLA 1994) Section 1(a), ch. 6, FSSLA 1994, is amended to read:

(a) The sum of $200,000,000 is appropriated to the mental health trust fund (AS 37.14.031), added by sec. 11, ch. 66, SLA 1991, from the following sources, in the amounts listed, to capitalize the mental health trust fund:

SOURCE

APPROPRIATION (1) Mental health trust income $ 33,000,000 account (AS 37.14.011) [BALANCE ON JUNE 30, 1995] (2) Department of Natural Resources - 11,700,000 mental health trust income in the general fund (3) Proceeds from sale of Department of 25,000,000 Natural Resources land sale contract portfolio (4) Budget reserve fund (art. IX, sec. 17(c), 130,300,000 Constitution of the State of Alaska)

* Sec. 2. (Ch. 2 SSSLA 1994) Section 1(b), ch. 6, FSSLA 1994 is amended to read:

(b) The appropriations made by (a), (f), and (g) of this section are contingent upon

(1) the enactment into law of a bill passed by the Eighteenth Alaska State Legislature that amends ch. 66, SLA 1991, and contains other provisions relating to the mental health land trust and mental health land trust litigation (Weiss v. State, 4FA-82-2208 Civil); and

(2) not later than December 15, 1994,

(A) the superior court of the State of Alaska having made a [FINAL] determination that the state has satisfied its obligation to reconstitute the mental health trust under State v. Weiss, 706 P.2d 681 (Alaska 1985); and

(B) the superior court having entered an [A FINAL] order dismissing Weiss v. State, 4FA-82-2208 Civil [; AND

(C) THE TIME FOR APPEALS OF THAT DETERMINATION AND THAT ORDER HAVING EXPIRED WITH NO APPEALS HAVING BEEN TAKEN AS OF THAT DATE OR ANY APPEALS TAKEN HAVING BEEN FINALLY RESOLVED AND THE ORDER DISMISSING WEISS V. STATE, 4FA-82-2208 CIVIL, HAVING BEEN AFFIRMED ON APPEAL].

* Sec. 3. (Ch. 2 SSSLA 1994) Section 1(e), ch. 6, FSSLA 1994 is amended to read:

(e) The appropriations made by (a), (f), and (g) of this section are for the capitalization of funds and do not lapse.

* Sec. 4. (Ch. 2 SSSLA 1994) Section 1, ch. 6, FSSLA 1994 is amended by adding new subsections to read:

(f) If the money available for appropriation from a funding source identified in (a)(1), (3), or (4) of this section is less than the amount appropriated by any of those paragraphs, then the amount necessary to cover the shortfall is appropriated from the unappropriated balance of mental health trust income deposited in the general fund.

(g) If the money available for appropriation from a funding source identified in (a)(2), (a)(3), (a)(4), or (f) of this section is less than the amount necessary to entirely fund any of the appropriations made by (a)(2), (a)(3), (a)(4), or (f) of this section, then an amount equal to the shortfall, remaining after the appropriation under (f) of this section is made, is appropriated from the unappropriated money in the mental health trust income account (AS 37.14.011).

* Sec. 5. (Ch. 2 SSSLA 1994) If the amount in the mental health trust income account (AS 37.14.011) is insufficient to fund appropriations from that account passed by the Eighteenth Alaska Legislature or a previous legislature, and enacted into law, the amount necessary to fund those appropriations is appropriated from the general fund to the mental health trust income account (AS 37.14.011).

* Sec. 6. (Ch. 2 SSSLA 1994) (a) On the date that AS 37.14.011(a) is repealed, the balance of the mental health trust income account (AS 37.14.011) is transferred to the general fund.

(b) The unexpended, unobligated, and unencumbered balances of appropriations from the mental health trust income account (AS 37.14.011) that lapse after the repeal of AS 37.14.011(a) lapse into the general fund.

* Sec. 7. (Ch. 2 SSSLA 1994) Expenditures, made in accordance with law, from the mental health trust income account (AS 37.14.011) on or after June 24, 1994, and before the effective date of this section, are ratified.

* Sec. 8. (Ch. 2 SSSLA 1994) (a) The sum of $200,000,000 and an amount equivalent to the amount deposited in the mental health trust fund (AS 37.14.031) that is attributable to inflation proofing $200,000,000 of the principal of that fund, determined as of the date of the repeal of AS 37.14.031, is appropriated from that fund to the general fund.

(b) The unexpended and unobligated balance remaining in the mental health trust fund (AS 37.14.031) after the appropriation made by (a) of this section is appropriated to the mental health trust income and proceeds account (AS 37.14.013).

* Sec. 9. (Ch. 2 SSSLA 1994) The unexpended and unobligated balance in the mental health trust settlement income account (AS 37.14.036) on the date of the repeal of AS 37.14.036 is appropriated to the mental health trust income and proceeds account (AS 37.14.013).

* Sec. 10. (Ch. 2 SSSLA 1994) Sections 8 and 9 of this Act take effect only if a dismissal of Weiss v. State, 4FA-82-2208 Civil, by the superior court is reversed on appeal, including a petition for certiorari to the United States Supreme Court.

* Sec. 11. (Ch. 2 SSSLA 1994) Section 1(c), ch. 6, FSSLA 1994, is repealed.

* Sec. 12. (Ch. 2 SSSLA 1994) Sections 1 - 7 and 11 of this Act are retroactive to June 24, 1994.

* Sec. 13. (Ch. 2 SSSLA 1994) If they take effect under sec. 10 of this Act, secs. 8 and 9 of this Act take effect on the date that an order of dismissal entered by the superior court of Weiss v. State, 4FA-82- 2208 Civil, is reversed on appeal, including a petition for certiorari to the United States Supreme Court. The attorney general shall certify that date to the lieutenant governor and the revisor of statutes.

* Sec. 14. (Ch. 2 SSSLA 1994) Except as provided in sec. 13 of this Act, this Act takes effect immediately under AS 01.10.070(c).

Alaska Rules of Civil Procedure

Alaska R. Civ. P. 23(e) : Dismissal or Compromise. A class action shall not be dismissed or compromised without the approval of the court, and notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs.

Alaska R. Civ. P. 54(b) provides: Judgment Upon Multiple Claims or Involving Multiple Parties. When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third-party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order or other form of decision, however designated, which adjudicates fewer than all of the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.

Alaska R. Civ. P. 60(b) provides: Mistakes - Inadvertence - Excusable Neglect - Newly Discovered Evidence - Fraud - Etc. On motion and upon such terms as are just, the court may relieve a party or a party's legal representative from a final judgment, order or proceeding for the following reasons:

(1) mistake, inadvertence, surprise or excusable neglect;

(2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b);

(3) fraud (whether heretofore denominated intrinsic or extrinsic) misrepresentation, or other misconduct of an adverse party;

(4) the judgment is void;

(5) the judgment has been satisfied, released, or discharged, or a prior judgment upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment should have prospective application; or

(6) any other reason justifying relief from operation of the judgment.

Treatises and Other Authorities

Restatement (Second) of Trusts

§ 288. Transferee with Notice

If the trustee in breach of trust transfers trust property to a person who takes with notice of the breach of trust, the transferee does not hold the property free of the trust, although he paid value for the transfer.

§ 289. Donee

If the trustee in breach of trust transfers trust property and no value is given for the transfer, the transferee does not hold the property free of the trust, although he had no notice of the trust.

§ 291. Extent of Liability of Transferee with Notice

(1) where the trustee in breach of trust transfers trust property to a person who takes with notice of the breach of trust, the transferee can be compelled,

(a) if he has not disposed of the property, to restore it to the trust, together with the income which he has received from the property; or

(b) if he has disposed of the property, to pay the proceeds of the sale with the income received from the property and from the proceeds, or the amount of the proceeds with interest thereon and with any income which he received from the property at the time of the decree with the income received from the property; or

(c) if he received the property with knowledge of the breach of trust, to pay its value at the time when he received it with interest thereon; and if with knowledge of the breach of trust he refused to restore the property to the trust, to pay its value at the time of such refusal with interest thereon; and if with knowledge of the breach of trust he disposed of the property, to pay its value at the time he disposed of it with interest thereon.

(2) The beneficiary can enforce an equitable lien upon the property or its proceeds as security for his claim under the rules stated in Clauses (b) and (c).

(3) In each of the cases specified in Subsection (1), the transferee is entitled to a credit of the amount which he paid for the property to the extent to which the trust estate has received a benefit therefrom, and to a credit for any sums paid by him in the discharge of encumbrances upon the property; and, it he did not have knowledge of the breach of trust, he is entitled to a credit for the amount of expenditures made by him for repairs and improvements upon the property to the extent that the property is thereby enhanced or preserved in value.

§ 286. Creation of Equitable Interest in Trust Property

If the trustee in breach of trust purports to create in a third person an equitable interest in the trust property, the third person cannot enforce such equitable interest if to do so would compel the trustee to complete the breach of trust, except as stated in § 314.

§ 297. What Constitutes Notice of Breach of Trust

A person has notice of a breach of trust if

(b) by statute or otherwise he is subjected to the same liabilities as though he knew or should have known of the breach of trust, even though in fact he did not know and had no reason to know of the breach of trust.

Restatement (Third) of Trusts

§ 170. Duty of Loyalty

(1) The trustee is under a duty to the beneficiary to administer the trust solely in the interest of the beneficiary.

(2) The trustee in dealing with the beneficiary on the trustee's own account is under a duty to the beneficiary to deal fairly with him and to communicate to him all material facts in connection with the transaction which the trustee knows or should know.

§ 205 Liability in Case of Breach of Trust

If the trustee commits a breach of trust, he is chargeable with

(a) any loss or depreciation in value of the trust estate resulting from the breach of trust; or

(b) any profit made by him through the breach of trust; or

(c) any profit which would have accrued to the trust estate if there had been no breach of trust.

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