The Alaska Mental Health Trust was reconstituted in 1994 through a court settlement and associated State of Alaska legislation. The Alaska Mental Health Trust Authority (the Trust), a public corporation, was established at that time and is responsible for the ongoing management of the Trust (click here for more information). As required by the settlement and legislation, the Trust contracts with the Alaska Permanent Fund Corporation to manage the cash corpus of the Trust and with the Department of Natural Resources (DNR) to manage the land corpus of the Trust. The Trust Land Office (TLO) was established within DNR for this purpose and manages about one million acres of Trust land throughout the state on behalf of the Trust Authority.

It is important to understand that Trust Lands are managed separately from other State of Alaska lands, in accordance with regulations adopted in 1997. The regulations provide that Trust Lands are managed solely in the best interest of the Alaska Mental Health Trust and its beneficiaries and among other things, require that the TLO:

• Protect and enhance the long-term productivity of Trust Land;
• Maximize long-term revenue from Trust Land;
• Encourage a diversity of revenue-producing uses of Trust Land; and
• Manage Trust Land prudently, efficiently and with accountability to the Trust and its beneficiaries.

In addition to the adopted regulations, the TLO manages Trust Land in accordance with a long-term asset management strategy, which was adopted by the TLO in 2003 and made part of the Trust's overall Asset Management Policy Statement that same year.

Revenue generated by the TLO from Trust Land is characterized as Distributable Income (proceeds from non-disposal actions on Trust land) and Principal (proceeds from the disposal of nonrenewable Trust Land assets).  Distributable Income is transmitted to the Trust Authority and expended in accordance with Trust Authority policies and procedures. Trust Land principal is deposited in the Principal Fund (cash corpus) of the Trust or, with Trust Authority approval, used to purchase substitute Trust Lands.  Trust Land principal continues to generate income in the Principal Fund, with that income making up a significant portion of annual Trust Authority income distributions.