00 HOUSE BILL NO. 300 01 "An Act relating to deposits into the dividend fund and income of and appropriations 02 from the earnings reserve account; relating to the community assistance program; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 29.60.850(b) is amended to read: 06 (b) Each fiscal year, the legislature may appropriate to the community 07 assistance fund money received by the state during the previous calendar year under  08 AS 43.20.030(c) and money from the earnings reserve account under  09 AS 37.13.145(b)(6). The amount may not exceed the greater of 10 (1) $30,000,000; or 11 (2) the amount that, when added to the fund balance on June 30 of the 12 previous fiscal year, equals $90,000,000. 13  * Sec. 2. AS 29.60.855 is amended by adding a new subsection to read: 14 (d) Notwithstanding (b) of this section, a payment under this section may not 01 exceed $1,200 per capita each year. 02  * Sec. 3. AS 29.60.860(a) is amended to read: 03 (a) Subject to (b) of this section, if the amount available for distribution under 04 AS 29.60.850(c) exceeds the amount needed to fully fund all the basic community 05 assistance payments, the balance shall be distributed on a per capita basis to 06 municipalities, to reserves, and to communities in the unorganized borough. A  07 combined payment under AS 29.60.855 and this section may not exceed $1,200  08 per capita each year.  09  * Sec. 4. AS 37.13.140 is amended to read: 10 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 11 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 12 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 13 of the fiscal year in accordance with generally accepted accounting principles, 14 excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 15 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 16 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 17 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 18 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 19 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 20 (b) The corporation shall determine the amount available for appropriation 21 each year. The amount available for appropriation is 5.25 percent of the average 22 market value of the fund for the first five of the preceding six fiscal years, including 23 the fiscal year just ended, computed annually for each fiscal year in accordance with 24 generally accepted accounting principles. In this subsection, "average market value of 25 the fund" includes the balance of the earnings reserve account established under 26 AS 37.13.145, but does not include that portion of the principal attributed to the 27 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 28 Judicial District). The amount available for appropriation may not exceed the  29 balance in the earnings reserve account described in AS 37.13.145.  30  * Sec. 5. AS 37.13.140(b), as amended by sec. 2, ch. 16, SLA 2018, is amended to read: 31 (b) The corporation shall determine the amount available for appropriation 01 each year. The amount available for appropriation is five percent of the average 02 market value of the fund for the first five of the preceding six fiscal years, including 03 the fiscal year just ended, computed annually for each fiscal year in accordance with 04 generally accepted accounting principles. In this subsection, "average market value of 05 the fund" includes the balance of the earnings reserve account established under 06 AS 37.13.145, but does not include that portion of the principal attributed to the 07 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 08 Judicial District). The amount available for appropriation may not exceed the  09 balance in the earnings reserve account described in AS 37.13.145.  10  * Sec. 6. AS 37.13.145(b) is repealed and reenacted to read: 11 (b) Each fiscal year, the legislature may appropriate the following percentages 12 of the amount in the earnings reserve account available for appropriation under 13 AS 37.13.140(b), for the following purposes: 14 (1) 40 percent to the public education fund; 15 (2) 10 percent to fund capital projects; 16 (3) 10 percent to the University of Alaska; 17 (4) 15 percent to the general fund; 18 (5) 15 percent to the dividend fund established under AS 43.23.045; 19 (6) 10 percent to the community assistance fund established under 20 AS 29.60.850. 21  * Sec. 7. AS 37.13.145(c) is amended to read: 22 (c) After the appropriations made [TRANSFER] under (b) [AND AN 23 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 24 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 25 principal of the fund an amount sufficient to offset the effect of inflation on the 26 principal of the fund during that fiscal year. However, none of the amount 27 appropriated [TRANSFERRED] shall be applied to increase the value of that portion 28 of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77- 29 847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 30 calculate the amount to appropriate [TRANSFER] to the principal under this 31 subsection by 01 (1) computing the average of the monthly United States Consumer 02 Price Index for all urban consumers for each of the two previous calendar years; 03 (2) computing the percentage change between the first and second 04 calendar year average; and 05 (3) applying that rate to the value of the principal of the fund on the 06 last day of the fiscal year just ended, including that portion of the principal attributed 07 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 08 First Judicial District). 09  * Sec. 8. AS 37.13.145(d) is amended to read: 10 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 11 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 12 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 13 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 14 outcome of this case, or interest earned on the money, or on the earnings of the money 15 shall be treated in the same manner as other income of the Alaska permanent fund, 16 except that it is not available for appropriation under the calculation under  17 AS 37.13.140(b) or appropriation [DISTRIBUTION TO THE DIVIDEND FUND, 18 FOR TRANSFERS] to the principal under (c) of this section, [OR FOR AN 19 APPROPRIATION UNDER (e) OF THIS SECTION,] and it may [SHALL] be 20 annually appropriated [DEPOSITED] into the Alaska capital income fund 21 (AS 37.05.565). 22  * Sec. 9. AS 37.13.145(e) is amended to read: 23 (e) The legislature may not appropriate from the earnings reserve account [TO 24 THE GENERAL FUND] a total amount that exceeds the amount available for 25 appropriation under AS 37.13.140(b) in a fiscal year. This subsection does not apply  26 to an appropriation from the earnings reserve account to the principal of the  27 fund.  28  * Sec. 10. AS 43.23.025(a) is amended to read: 29 (a) By October 1 of each year, the commissioner shall determine the value of 30 each permanent fund dividend for that year by 31 (1) determining the total amount available for dividend payments, 01 which equals 02 (A) the amount appropriated [OF INCOME OF THE 03 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 04 under AS 37.13.145(b)(5) [AS 37.13.145(b)] during the current year; 05 (B) plus the unexpended and unobligated balances of prior 06 fiscal year appropriations that lapse into the dividend fund under 07 AS 43.23.045(d); 08 (C) less the amount necessary to pay prior year dividends from 09 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 10 43.23.055(3) and (7); 11 (D) less the amount necessary to pay dividends from the 12 dividend fund due to eligible applicants who, as determined by the department, 13 filed for a previous year's dividend by the filing deadline but who were not 14 included in a previous year's dividend computation; 15 (E) less appropriations from the dividend fund during the 16 current year, including amounts to pay costs of administering the dividend 17 program and the hold harmless provisions of AS 43.23.240; 18 (2) determining the number of individuals eligible to receive a 19 dividend payment for the current year and the number of estates and successors 20 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 21 (3) dividing the amount determined under (1) of this subsection by the 22 amount determined under (2) of this subsection. 23  * Sec. 11. AS 37.13.145(f) is repealed. 24  * Sec. 12. Section 5 of this Act takes effect on the effective date of sec. 2, ch. 16, SLA 25 2018. 26  * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 2020.