CSHB 304(FIN): "An Act relating to the education fund and the infrastructure and economic development fund, to the market value of the permanent fund, and to distribution of the income of the permanent fund; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 304(FIN) 01 "An Act relating to the education fund and the infrastructure and economic 02 development fund, to the market value of the permanent fund, and to distribution of the 03 income of the permanent fund; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 37.05 is amended by adding new sections to article 6 to read: 06 Sec. 37.05.590. Education fund. (a) There is created as a special account in 07 the general fund the education fund consisting of transfers to the fund under 08 AS 37.13.145(e). Money may be appropriated from the fund for public schools, 09 including the University of Alaska. 10 (b) Nothing in this section dedicates money for a specific purpose. 11 Sec. 37.05.600. Infrastructure and economic development fund. (a) There 12 is created as a special account in the general fund the infrastructure and economic 13 development fund consisting of transfers to the fund under AS 37.13.145(f). Money 14 may be appropriated from the fund for capital projects, economic development
01 projects, or payments of principal and interest on general obligation or revenue bonds 02 issued by the state or an instrumentality of the state. 03 (b) Nothing in this section dedicates money for a specific purpose. 04 * Sec. 2. 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 with 09 generally accepted accounting principles [, EXCLUDING ANY UNREALIZED 10 GAINS OR LOSSES]. Income available for distribution on July 1 equals five [21] 11 percent of the average year-end market value [NET INCOME] of the fund for the 12 last five fiscal years, including the fiscal year just ended, but may not exceed [NET 13 INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS] the 14 balance in the earnings reserve account described in AS 37.13.145. 15 * Sec. 3. AS 37.13.145(b) is amended to read: 16 (b) At the beginning [END] of each fiscal year, the corporation shall transfer 17 from the earnings reserve account to the dividend fund established under 18 AS 43.23.045, 45 [50] percent of the income available for distribution under 19 AS 37.13.140. 20 * Sec. 4. AS 37.13.145(d) is amended to read: 21 (d) Notwithstanding (b), (e), and (f) of this section, income earned on money 22 awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. 23 (Superior Court, First Judicial District), including settlement, summary judgment, or 24 adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or 25 interest earned on the money, or on the earnings of the money shall be treated in the 26 same manner as other income of the Alaska permanent fund, except that it is not 27 available for distribution [TO THE DIVIDEND FUND], and shall be annually 28 deposited into the principal of the Alaska permanent fund. 29 * Sec. 5. AS 37.13.145 is amended by adding new subsections to read: 30 (e) At the beginning of each fiscal year, the corporation shall transfer from the 31 earnings reserve account to the education fund (AS 37.05.590) 35 percent of the
01 income available for distribution under AS 37.13.140. 02 (f) At the beginning of each fiscal year, the corporation shall transfer from the 03 earnings reserve account to the infrastructure and economic development fund 04 (AS 37.05.600) 20 percent of the income available for distribution under 05 AS 37.13.140. 06 (g) If the amount in the earnings reserve account is not sufficient to fully fund 07 all transfers under (b), (e), and (f) of this section, the amount of each transfer shall be 08 reduced on a pro rata basis so that the total amount transferred equals the balance in 09 the earnings reserve account. 10 * Sec. 6. AS 37.13.150 is amended to read: 11 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's 12 investments must be identified as the source of the operating budget of the corporation 13 in the state's operating budget under AS 37.07 (Executive Budget Act). The 14 unexpended balance of the corporation's annual operating budget does not lapse at the 15 end of the fiscal year but shall be treated as income from the fund under 16 AS 37.13.145(a) [AS 37.13.140]. 17 * Sec. 7. AS 37.13.300(c) is amended to read: 18 (c) Income or other money [NET INCOME] from the mental health trust 19 fund may not be included in the computation of [NET] income available for 20 distribution under AS 37.13.140. 21 * Sec. 8. AS 37.14.031(c) is amended to read: 22 (c) The net income of the fund shall be determined by the Alaska Permanent 23 Fund Corporation annually as of the last day of the fiscal year in accordance with 24 generally accepted accounting principles, excluding any unrealized gains or losses 25 [IN THE SAME MANNER THE CORPORATION DETERMINES THE NET 26 INCOME OF THE ALASKA PERMANENT FUND UNDER AS 37.13.140]. 27 * Sec. 9. AS 37.17.020(b) is amended to read: 28 (b) The endowment shall be held and invested by the Alaska Permanent Fund 29 Corporation subject to AS 37.13.120; however, net income from the endowment shall 30 be distributed under AS 37.17.010 - 37.17.110 and 37.17.225. Income or other 31 money [NET INCOME] from the endowment may not be included in the computation
01 of [NET] income available for distribution under AS 37.13.140. 02 * Sec. 10. AS 37.17.440(b) is amended to read: 03 (b) The principal and income of the endowment shall be held and invested by 04 the Alaska Permanent Fund Corporation subject to AS 37.13.120; however, net 05 income from the endowment and subsequent income earned on net income from the 06 endowment shall be held in a separate account until appropriated by the legislature. 07 Income or other money [NET INCOME] from the endowment may not be included 08 in the computation of [NET] income available for distribution under AS 37.13.140. 09 * Sec. 11. AS 37.13.145(c) is repealed. 10 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 TRANSFER TO GENERAL FUND. On July 1, 2002, after the transfers under 13 AS 37.13.145 at the end of fiscal year 2002, an amount equal to $300,000,000 or the balance 14 in the earnings reserve account, whichever is less, is transferred from the earnings reserve 15 account to the general fund. 16 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 TRANSITION. Notwithstanding AS 37.13.140, as amended in sec. 2 of this Act, 19 income available for distribution at the beginning of fiscal year 20 (1) 2004 is equal to seven percent of the average of the year-end market values 21 of the fund for the last five fiscal years, including fiscal year 2003, but may not exceed the 22 balance in the earnings reserve account; 23 (2) 2005 is equal to six percent of the average of the year-end market values of 24 the fund for the last five fiscal years, including fiscal year 2004, but may not exceed the 25 balance in the earnings reserve account. 26 * Sec. 14. Section 12 of this Act takes effect July 1, 2002. 27 * Sec. 15. Sections 1 -11 and 13 of this Act take effect June 29, 2003.