HB 411: "An Act relating to the market value of the permanent fund and to distribution of income of the permanent fund; and providing for an effective date."
00HOUSE BILL NO. 411 01 "An Act relating to the market value of the permanent fund and to distribution 02 of income of the permanent fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.13.140 is amended to read: 05 Sec. 37.13.140. Income available for distribution . The market value [NET 06 INCOME] of the fund includes the market value [INCOME] of the earnings reserve 07 account established under AS 37.13.145. The market value [NET INCOME] of the 08 fund shall be computed annually as of the last day of the fiscal year in accordance 09 with generally accepted accounting principles [, EXCLUDING ANY UNREALIZED 10 GAINS OR LOSSES]. Income available for distribution equals five [21] percent of 11 the average of the quarter-end market values [NET INCOME] of the fund during 12 [FOR] the last 20 fiscal year quarters [FIVE FISCAL YEARS], including the fiscal 13 year just ended, but may not exceed [NET INCOME OF THE FUND FOR THE 14 FISCAL YEAR JUST ENDED PLUS] the balance in the earnings reserve account
01 described in AS 37.13.145. 02 * Sec. 2. AS 37.13.145(b) is amended to read: 03 (b) At the end of each fiscal year, the corporation shall transfer from the 04 earnings reserve account to the dividend fund established under AS 43.23.045, 80 [50] 05 percent of the income available for distribution under AS 37.13.140 , or the balance 06 in the account, whichever is less . 07 * Sec. 3. AS 37.13.145 is amended by adding a new subsection to read: 08 (e) After the transfer under (b) of this section, the corporation shall transfer 09 from the earnings reserve account to the general fund 20 percent of the income 10 available for distribution under AS 37.13.140, or the balance in the account, whichever 11 is less. 12 * Sec. 4. AS 37.13.300(c) is amended to read: 13 (c) Income or other money [NET INCOME] from the mental health trust 14 fund may not be included in the computation of [NET] income available for 15 distribution under AS 37.13.140. 16 * Sec. 5. AS 37.14.031(c) is amended to read: 17 (c) The net income of the fund shall be determined by the Alaska Permanent 18 Fund Corporation annually as of the last day of the fiscal year in accordance with 19 generally accepted accounting principles [IN THE SAME MANNER THE 20 CORPORATION DETERMINES THE NET INCOME OF THE ALASKA 21 PERMANENT FUND UNDER AS 37.13.140]. 22 * Sec. 6. AS 37.17.020(b) is amended to read: 23 (b) The endowment shall be held and invested by the Alaska Permanent Fund 24 Corporation subject to AS 37.13.120; however, net income from the endowment shall 25 be distributed under AS 37.17.010 - 37.17.110 and 37.17.225. Income or other 26 money [NET INCOME] from the endowment may not be included in the computation 27 of [NET] income available for distribution under AS 37.13.140. 28 * Sec. 7. AS 37.17.440(b) is amended to read: 29 (b) The principal and income of the endowment shall be held and invested by 30 the Alaska Permanent Fund Corporation subject to AS 37.13.120; however, net income 31 from the endowment and subsequent income earned on net income from the
01 endowment shall be held in a separate account until appropriated by the legislature. 02 Income or other money [NET INCOME] from the endowment may not be included 03 in the computation of [NET] income available for distribution under AS 37.13.140. 04 * Sec. 8. AS 37.13.145(c) is repealed. 05 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 TRANSITION. Notwithstanding AS 37.13.140, as amended in sec. 1 of this Act, 08 income available for distribution following the end of 09 (1) fiscal year 2001 is equal to five percent of the average of the quarter-end 10 market values of the fund during the last eight fiscal year quarters, including the fiscal year 11 just ended, but may not exceed the balance in the earnings reserve account; 12 (2) fiscal year 2002 is equal to five percent of the average of the quarter-end 13 market values of the fund during the last 12 fiscal year quarters, including the fiscal year just 14 ended, but may not exceed the balance in the earnings reserve account; and 15 (3) fiscal year 2003 is equal to five percent of the average of the quarter-end 16 market values of the fund during the last 16 fiscal year quarters, including the fiscal year just 17 ended, but may not exceed the balance in the earnings reserve account. 18 * Sec. 10. This Act takes effect July 1, 2000.