CSHB 298(W&M): "An Act relating to the income of and appropriations from the Alaska permanent fund under art. IX, sec. 15(b), Constitution of the State of Alaska, and making conforming amendments; relating to the determination of net income of the mental health trust fund; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 298(W&M) 01 "An Act relating to the income of and appropriations from the Alaska permanent fund 02 under art. IX, sec. 15(b), Constitution of the State of Alaska, and making conforming 03 amendments; relating to the determination of net income of the mental health trust 04 fund; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 09.20.050(b) is amended to read: 07 (b) The jury list shall be based on a list prepared by the Department of 08 Revenue of all persons who filed an application for a [DISTRIBUTION OF 09 ALASKA] permanent fund dividend [INCOME] under AS 43.23 during the current 10 calendar year that shows an Alaska [ALASKAN] address, and of all persons who 11 volunteer for jury duty under (d) of this section. If considered necessary by the 12 administrative director of the Alaska Court System, the jury list shall incorporate a list 13 prepared by the Department of Administration of all persons who hold a valid Alaska 14 driver's license. The departments shall submit their respective lists to the Alaska
01 Court System not later than September 30 of each year. To the extent that it is 02 available, the departments shall include on the lists they submit the following 03 information for each person: first name, middle initial, and last name; mailing address, 04 including the zip code; and birth date. The lists shall be recorded on magnetic tape 05 compatible with Alaska Court System data processing equipment. 06 * Sec. 2. AS 24.20.206 is amended to read: 07 Sec. 24.20.206. Duties. The Legislative Budget and Audit Committee shall 08 (1) [REPEALED 09 (2)] annually review the long-range operating plans of all agencies of 10 the state that perform lending or investment functions; 11 (2) [(3)] review periodic reports from all agencies of the state that 12 perform lending or investment functions; 13 (3) [(4)] prepare a complete report of investment programs, plans, 14 performance, and policies of all agencies of the state that perform lending or 15 investment functions and notify the legislature within 30 days after the convening of 16 each regular session that the report is available; 17 (4) [(5)] in conjunction with the finance committee of each house, 18 recommend annually to the legislature the investment policy for the general fund 19 surplus and for the [INCOME FROM THE] permanent fund; 20 (5) [(6)] provide for an annual post audit and annual operational and 21 performance evaluation of the Alaska Permanent Fund Corporation investments and 22 investment programs; 23 (6) [(7)] provide for an annual operational and performance evaluation 24 of the Alaska Housing Finance Corporation and the Alaska Industrial Development 25 and Export Authority; the performance evaluation must include, but is not limited to, a 26 comparison of the effect on various sectors of the economy by public and private 27 lending, the effect on resident and nonresident employment, the effect on real wages, 28 and the effect on state and local operating and capital budgets of the programs of the 29 Alaska Housing Finance Corporation and the Alaska Industrial Development and 30 Export Authority; 31 (7) [(8)] provide assistance to the trustees of the trust established in
01 AS 37.14.400 - 37.14.450 in carrying out their duties under AS 37.14.415. 02 * Sec. 3. AS 37.13 is amended by adding a new section to read: 03 Sec. 37.13.143. Appropriations from the fund. (a) The total amount 04 available for appropriation from the fund for a specific fiscal year is determined under 05 art. IX, sec. 15(b), Constitution of the State of Alaska. However, if the average real 06 rate of return of the fund during the 10 calendar years immediately preceding the 07 specific fiscal year was less than five percent, the amount available for appropriation 08 for that specific fiscal year may not exceed that 10-year average real rate of return 09 multiplied by the average of the fiscal year-end market values of the fund for the first 10 five of the six fiscal years immediately preceding that specific fiscal year. For 11 purposes of this subsection, "real rate of return" means the total rate of return of the 12 fund's investments for the period measured, minus the rate of inflation for that period, 13 stated on an annualized basis. 14 (b) Appropriations by the legislature under (a) of this section for a specific 15 fiscal year are limited as follows, based on the total amount available for 16 appropriation: 17 (1) 50 percent may be appropriated to the general fund; 18 (2) 50 percent may be appropriated to the dividend fund established 19 under AS 43.23.045. 20 (c) For purposes of (a) of this section, the corporation shall calculate the rate 21 of inflation for a specific fiscal year by 22 (1) computing the average of the monthly United States Consumer 23 Price Index, or its equivalent, for all urban consumers for each of the two previous 24 calendar years; and 25 (2) computing the percentage change between the first and second 26 calendar year average. 27 * Sec. 4. AS 37.13 is amended by adding a new section to read: 28 Sec. 37.13.148. Market value of the fund. For the purposes of art. IX, sec. 29 15(b), Constitution of the State of Alaska, the corporation shall determine the market 30 value of the fund annually as of the close of business on June 30 in accordance with 31 generally accepted accounting principles for the determination of fair value.
01 * Sec. 5. AS 37.13.150 is amended to read: 02 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's 03 investments must be identified as the source of the operating budget of the corporation 04 in the state's operating budget under AS 37.07 (Executive Budget Act). [THE 05 UNEXPENDED BALANCE OF THE CORPORATION'S ANNUAL OPERATING 06 BUDGET DOES NOT LAPSE AT THE END OF THE FISCAL YEAR BUT SHALL 07 BE TREATED AS INCOME UNDER AS 37.13.140.] 08 * Sec. 6. AS 37.14.031(c) is amended to read: 09 (c) The net income of the fund shall be determined by the Alaska Permanent 10 Fund Corporation annually as of the last day of the fiscal year in accordance with 11 generally accepted accounting principles [IN THE SAME MANNER THE 12 CORPORATION DETERMINES THE NET INCOME OF THE ALASKA 13 PERMANENT FUND UNDER AS 37.13.140]. 14 * Sec. 7. AS 43.23.025(a) is amended to read: 15 (a) By October 1 of each year, the commissioner shall determine the value of 16 each permanent fund dividend for that year by 17 (1) determining the total amount available for dividend payments, 18 which equals 19 (A) the amount of money appropriated from [INCOME OF] 20 the Alaska permanent fund [TRANSFERRED] to the dividend fund under 21 AS 37.13.143 [AS 37.13.145(b)] during the current year; 22 (B) plus the unexpended and unobligated balances of prior 23 fiscal year appropriations that lapse into the dividend fund under 24 AS 43.23.045(d); 25 (C) less the amount necessary to pay prior year dividends from 26 the dividend fund in the current year under AS 43.23.005(h) and under 27 AS 43.23.055(3) and (7); 28 (D) less the amount necessary to pay dividends from the 29 dividend fund due to eligible applicants who, as determined by the department, 30 filed for a previous year's dividend by the filing deadline but who were not 31 included in a previous year's dividend computation;
01 (E) less appropriations from the dividend fund during the 02 current year, including amounts to pay costs of administering the dividend 03 program and the hold harmless provisions of AS 43.23.075; 04 (2) determining the number of individuals eligible to receive a 05 dividend payment for the current year and the number of estates and successors 06 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 07 (3) dividing the amount determined under (1) of this subsection by the 08 amount determined under (2) of this subsection. 09 * Sec. 8. AS 43.23.028(a) is amended to read: 10 (a) By October 1 of each year, the commissioner shall give public notice of 11 the value of each permanent fund dividend for that year and notice of the information 12 required to be disclosed under (3) of this subsection. In addition, the stub attached to 13 each individual dividend check and direct deposit advice must 14 (1) disclose the amount of each dividend attributable to [INCOME 15 EARNED BY THE PERMANENT FUND FROM] deposits to that fund required 16 under art. IX, sec. 15, Constitution of the State of Alaska; 17 (2) disclose the amount of each dividend attributable to [INCOME 18 EARNED BY THE PERMANENT FUND FROM] appropriations to that fund and 19 the amount of each dividend attributable to [FROM] amounts added to that fund 20 before January 1, 2005, to offset the effects of inflation; 21 (3) disclose the amount by which each dividend has been reduced due 22 to each appropriation from the dividend fund, including amounts to pay the costs of 23 administering the dividend program and the hold harmless provisions of 24 AS 43.23.075; 25 (4) include a statement that an individual is not eligible for a dividend 26 when 27 (A) during the qualifying year, the individual was convicted of 28 a felony; 29 (B) during all or part of the qualifying year, the individual was 30 incarcerated as a result of the conviction of a 31 (i) felony; or
01 (ii) misdemeanor if the individual has been convicted of 02 a prior felony or two or more prior misdemeanors; 03 (5) include a statement that the legislative purpose for making 04 individuals listed under (4) of this subsection ineligible is to 05 (A) obtain reimbursement for some of the costs imposed on the 06 state criminal justice system related to incarceration or probation of those 07 individuals; 08 (B) provide funds for services for and payments to crime 09 victims and for grants for the operation of domestic violence and sexual assault 10 programs; 11 (6) disclose the total amount that would have been paid during the 12 previous fiscal year to individuals who were ineligible to receive dividends under 13 AS 43.23.005(d) if they had been eligible; 14 (7) disclose the total amount appropriated for the current fiscal year 15 under (b) of this section for each of the funds and agencies listed in (b) of this section. 16 * Sec. 9. AS 37.13.140, 37.13.145, and 37.13.300(c) are repealed. 17 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 CONDITIONAL EFFECT. Sections 3, 4, and 6 - 9 of this Act take effect only if an 20 amendment to art. IX, sec. 15, Constitution of the State of Alaska, relating to and limiting 21 appropriations from the Alaska permanent fund based on an averaged percent of the fund 22 market value, is approved by the voters during the 2004 general election and takes effect. 23 * Sec. 11. If secs. 3, 4, and 6 - 9 of this Act take effect under sec. 10 of this Act, they take 24 effect on January 1, 2005. 25 * Sec. 12. Sections 1, 2, and 5 of this Act take effect immediately under AS 01.10.070(c).