SB 292: "An Act relating to the longevity bonus program; and providing for an effective date."

00 SENATE BILL NO. 292                                                                                                     
01 "An Act relating to the longevity bonus program; and providing for an effective                                         
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 47.45 is amended by adding a new section to read:                                                   
05  Sec. 47.45.005.  LONGEVITY BONUS FUND.  (a)  In order to support the                                                  
06 longevity bonus program, the longevity bonus fund is established, consisting of money                                   
07 appropriated to the fund.  The fund shall be held and invested by the Alaska                                            
08 Permanent Fund Corporation subject to AS 37.13.120.  However, net income from the                                       
09 fund may not be included in the computation of net income available for distribution                                    
10 under AS 37.13.140.                                                                                                     
11  (b)  The income account is established as a separate account in the longevity                                         
12 bonus fund.  Income from the fund shall be deposited by the Alaska Permanent Fund                                       
13 Corporation into the account as soon as it is received and shall be retained in the                                     
14 account unless appropriated.  Money in the account shall be invested in investments                                     
01 authorized under AS 37.13.120, and the income shall be retained in the account unless                                   
02 appropriated.                                                                                                           
03  (c)  Subject to appropriation for the purpose, on the last day of each fiscal year                                    
04 the  Alaska Permanent Fund Corporation shall transfer from the income account to the                                    
05 principal of the longevity bonus fund an amount sufficient to offset the effect of                                      
06 inflation on the principal of the fund during that fiscal year.  The corporation shall                                  
07 calculate the amount to transfer to the principal under this subsection by                                              
08   (1)  computing the average of the monthly United States Consumer                                                     
09 Price Index for all urban consumers for each of the two previous calendar years;                                        
10   (2)  computing the percentage change between the first and second                                                    
11 calendar year average; and                                                                                              
12   (3)  applying that rate to the value of the principal of the fund on the                                             
13 last day of the fiscal year just ended.                                                                                 
14  (d)  After the transfer under (c) of this section and subject to appropriation for                                    
15 the purpose, the Alaska Permanent Fund Corporation shall transfer the balance of the                                    
16 money in the income account to the bonus payment fund (AS 47.45.090).                                                   
17    * Sec. 2.  AS 47.45.010(a) is amended to read:                                                                       
18  (a)  A person who is 65 years of age or over who resides in the state for at                                          
19 least one year immediately preceding application for a longevity bonus under this                                       
20 chapter may apply to the commissioner of administration [NO LATER THAN                                                  
21 DECEMBER 31, 1996,] for qualification to receive a monthly bonus.  The amount                                          
22 of the bonus during a calendar year shall be calculated by the commissioner                                             
23 before the beginning of that year based upon the amount available in the bonus                                          
24 payment fund for distribution during that year.  However, a bonus may not                                               
25 exceed $250 [OF                                                                                                        
26   (1)  $250, IF THE PERSON'S APPLICATION WAS SUBMITTED                                                                 
27 BEFORE JANUARY 1, 1994;                                                                                                 
28   (2)  $200, IF THE PERSON'S APPLICATION WAS SUBMITTED ON                                                              
29 OR AFTER JANUARY 1, 1994, BUT BEFORE JANUARY 1, 1995;                                                                   
30   (3)  $150, IF THE PERSON'S APPLICATION WAS SUBMITTED ON                                                              
31 OR AFTER JANUARY 1, 1995, BUT BEFORE JANUARY 1, 1996; OR                                                                
01   (4)  $100, IF THE PERSON'S APPLICATION WAS SUBMITTED ON                                                              
02 OR AFTER JANUARY 1, 1996, BUT BEFORE JANUARY 1, 1997].                                                                  
03    * Sec. 3.  AS 47.45.070(a) is amended to read:                                                                       
04  (a)  An unqualified person is one who                                                                                 
05   (1)  does not meet the age or residence requirements as provided for                                                 
06 under this chapter;                                                                                                     
07   (2)  meets the age and residence requirements of this chapter but either                                             
08 is confined in a state or federal mental health institution or facility and is certified by                             
09 the state as unable to manage personal affairs, or resides in a nursing home as that                                    
10 term is defined in AS 08.70.180; however, if that person, at the time of commitment                                     
11 or commencement of residence, provided the principal support of a spouse, the                                           
12 commissioner of administration may determine to pay the confined person's bonus to                                      
13 the person's spouse until the spouse is qualified for a bonus;                                                          
14   (3)  is otherwise qualified but confined in a penal or correctional                                                  
15 institution or facility; upon completion of sentence or upon the conferral of a pardon,                                 
16 parole, or probation, the person may make application; confinement outside the state                                    
17 shall be considered as residence in the state if a person was convicted and sentenced                                   
18 from a court in Alaska; revocation of parole or probation shall be cause for immediate                                  
19 disqualification until release from confinement is again effected;                                                      
20   (4)  voluntarily leaves the state and remains absent from the state for                                              
21 a continuous period of more than 90 days;                                                                               
22   (5)  did not apply, under AS 47.45.010(a), [BEFORE JANUARY 1,                                                        
23 1997,] for qualification to receive a [LONGEVITY] bonus [;                                                              
24   (6)  WAS FOUND QUALIFIED TO RECEIVE A LONGEVITY                                                                      
25 BONUS, WAS SUBSEQUENTLY DISQUALIFIED FOR 12 CONSECUTIVE                                                                 
26 MONTHS OR MORE, AND DID NOT REAPPLY BEFORE JANUARY 1, 1997].                                                            
27    * Sec. 4.  AS 47.45.090(a) is amended to read:                                                                       
28  (a)  The [ALASKA LONGEVITY] bonus payment fund is created for the                                                   
29 purpose of paying the monthly bonuses provided for in this chapter.  The bonus                                         
30 payment fund consists only of money made available for distribution as bonus                                          
31 payments and to pay costs of administering this chapter by appropriations from the                                    
01 income account of the longevity bonus fund under AS 47.45.005(d), from [OF THE                                         
02 LEGISLATURE FROM THE GENERAL FUND, AND] income and interest derived                                                     
03 from the investment of money of the [LONGEVITY] bonus payment fund, and from                                         
04 other sources.  Any income or other money in the bonus payment fund that has                                            
05 not been appropriated for distribution or exceeds the amount needed for                                                 
06 distribution during a calendar year lapses into the income account of the longevity                                     
07 bonus fund on January 1 of the following year.                                                                         
08    * Sec. 5.  AS 47.45.100 is amended to read:                                                                          
09  Sec. 47.45.100.  POWERS AND DUTIES OF THE ADMINISTRATOR.  The                                                         
10 commissioner of administration shall                                                                                    
11   (1)  adopt regulations necessary to carry out the provisions of this                                                 
12 chapter;                                                                                                                
13   (2)  make expenditures from the bonus payment fund necessary to                                                    
14 administer this chapter;                                                                                                
15   (3)  establish and maintain an adequate system of accounts for the                                                  
16 bonus payment fund [;                                                                                                  
17   (4)  REPEALED].                                                                                                      
18    * Sec. 6.  AS 47.45.110 is amended to read:                                                                          
19  Sec. 47.45.110.  CUSTODY OF FUNDS.  The commissioner of revenue is the                                                
20 treasurer of the system and has powers and duties for this purpose including [BUT                                       
21 NOT LIMITED TO] the following:                                                                                          
22   (1)  to act as official custodian of the cash and securities belonging to                                            
23 the bonus payment fund;                                                                                               
24   (2)  to receive all items of cash belonging to the bonus payment fund.                                             
25    * Sec. 7.  AS 47.45.045 is repealed.                                                                                 
26    * Sec. 8.  Section 1 of this Act takes effect July 1, 1996.                                                          
27    * Sec. 9.  Sections 2 - 7 of this Act take effect January 1, 1998.