HB 553: "An Act relating to investments of the Alaska permanent fund and to the income of and appropriations from the Alaska permanent fund and making conforming amendments; relating to the determination of net income of the mental health trust fund; and providing for an effective date."
00 HOUSE BILL NO. 553 01 "An Act relating to investments of the Alaska permanent fund and to the income of and 02 appropriations from the Alaska permanent fund and making conforming amendments; 03 relating to the determination of net income of the mental health trust fund; and 04 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 The Legislative Budget and Audit Committee shall 08 (1) [REPEALED 09 (2)] annually review the long-range operating plans of all agencies of 10 the state that perform lending or investment functions; 11 (2) [(3)] review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 37.13.120(a) is amended to read: 03 (a) This section applies to investment of fund principal and all other 04 amounts in the fund. The prudent-investor rule shall be applied by the board in the 05 management and investment of fund assets. The prudent-investor rule as applied to 06 investments of the fund means that in making investments the board shall exercise the 07 judgment and care under the circumstances then prevailing that an institutional 08 investor of ordinary prudence, discretion, and intelligence exercises in the 09 management of large investments entrusted to it not in regard to speculation but in 10 regard to the permanent disposition of funds, considering probable safety of capital as 11 well as probable income. 12 * Sec. 4. AS 37.13 is amended by adding a new section to read: 13 Sec. 37.13.143. Appropriations from the fund. (a) The legislature may 14 appropriate from the fund for each fiscal year the amount for costs of the corporation 15 associated with operating and investing the fund. 16 (b) After the appropriation under (a) of this section, appropriations by the 17 legislature for a specific fiscal year are limited as follows, based on the total amount 18 remaining available for appropriation under art. IX, sec. 15, Constitution of the State 19 of Alaska: 20 (1) not more than 50 percent may be appropriated to the general fund; 21 (2) not more than 50 percent may be appropriated to the dividend fund 22 established under AS 43.23.045. 23 (c) The corporation shall transfer money appropriated under this section from 24 the fund within 14 days after the effective date of the appropriation. 25 * Sec. 5. AS 37.13 is amended by adding a new section to read: 26 Sec. 37.13.148. Market value of the fund. For the purposes of art. IX, sec. 27 15, Constitution of the State of Alaska, the corporation shall determine the principal 28 and market value of the fund annually as of the close of business on June 30 in 29 accordance with generally accepted accounting principles for the determination of fair 30 value. 31 * Sec. 6. AS 37.13.150 is amended to read:
01 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's 02 investments must be identified as the source of the operating budget of the corporation 03 and shall be included in the state's operating budget under AS 37.07 (Executive 04 Budget Act). [THE UNEXPENDED BALANCE OF THE CORPORATION'S 05 ANNUAL OPERATING BUDGET DOES NOT LAPSE AT THE END OF THE 06 FISCAL YEAR BUT SHALL BE TREATED AS INCOME UNDER AS 37.13.140.] 07 * Sec. 7. AS 37.14.031(c) is amended to read: 08 (c) The net income of the fund shall be determined by the Alaska Permanent 09 Fund Corporation annually as of the last day of the fiscal year in accordance with 10 generally accepted accounting principles [IN THE SAME MANNER THE 11 CORPORATION DETERMINES THE NET INCOME OF THE ALASKA 12 PERMANENT FUND UNDER AS 37.13.140]. 13 * Sec. 8. AS 43.23.025(a) is amended to read: 14 (a) By October 1 of each year, the commissioner shall determine the value of 15 each permanent fund dividend for that year by 16 (1) determining the total amount available for dividend payments, 17 which equals 18 (A) the amount of money appropriated from [INCOME OF] 19 the Alaska permanent fund [TRANSFERRED] to the dividend fund under 20 AS 37.13.143 [AS 37.13.145(b)] during the current year; 21 (B) plus the unexpended and unobligated balances of prior 22 fiscal year appropriations that lapse into the dividend fund under 23 AS 43.23.045(d); 24 (C) less the amount necessary to pay prior year dividends from 25 the dividend fund in the current year under AS 43.23.005(h) and under 26 AS 43.23.055(3) and (7); 27 (D) less the amount necessary to pay dividends from the 28 dividend fund due to eligible applicants who, as determined by the department, 29 filed for a previous year's dividend by the filing deadline but who were not 30 included in a previous year's dividend computation; 31 (E) less appropriations from the dividend fund during the
01 current year, including amounts to pay costs of administering the dividend 02 program and the hold harmless provisions of AS 43.23.075; 03 (2) determining the number of individuals eligible to receive a 04 dividend payment for the current year and the number of estates and successors 05 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 06 (3) dividing the amount determined under (1) of this subsection by the 07 amount determined under (2) of this subsection. 08 * Sec. 9. AS 43.23.028(a) is amended to read: 09 (a) By October 1 of each year, the commissioner shall give public notice of 10 the value of each permanent fund dividend for that year and notice of the information 11 required to be disclosed under (3) of this subsection. In addition, the stub attached to 12 each individual dividend check and direct deposit advice must 13 (1) disclose the amount of each dividend attributable to [INCOME 14 EARNED BY THE PERMANENT FUND FROM] deposits to that fund required 15 under art. IX, sec. 15, Constitution of the State of Alaska; 16 (2) disclose the amount of each dividend attributable to [INCOME 17 EARNED BY THE PERMANENT FUND FROM] appropriations to the permanent 18 fund [THAT FUND AND FROM AMOUNTS ADDED TO THAT FUND TO 19 OFFSET THE EFFECTS OF INFLATION]; 20 (3) disclose the amount by which each dividend has been reduced due 21 to each appropriation from the dividend fund, including amounts to pay the costs of 22 administering the dividend program and the hold harmless provisions of 23 AS 43.23.075; 24 (4) include a statement that an individual is not eligible for a dividend 25 when 26 (A) during the qualifying year, the individual was convicted of 27 a felony; 28 (B) during all or part of the qualifying year, the individual was 29 incarcerated as a result of the conviction of a 30 (i) felony; or 31 (ii) misdemeanor if the individual has been convicted of
01 a prior felony or two or more prior misdemeanors; 02 (5) include a statement that the legislative purpose for making 03 individuals listed under (4) of this subsection ineligible is to 04 (A) obtain reimbursement for some of the costs imposed on the 05 state criminal justice system related to incarceration or probation of those 06 individuals; 07 (B) provide funds for services for and payments to crime 08 victims and for grants for the operation of domestic violence and sexual assault 09 programs; 10 (6) disclose the total amount that would have been paid during the 11 previous fiscal year to individuals who were ineligible to receive dividends under 12 AS 43.23.005(d) if they had been eligible; 13 (7) disclose the total amount appropriated for the current fiscal year 14 under (b) of this section for each of the funds and agencies listed in (b) of this section. 15 * Sec. 10. AS 37.13.140, 37.13.145, and 37.13.300(c) are repealed. 16 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 CONDITIONAL EFFECT. This Act takes effect only if an amendment to art. IX, sec. 19 15, Constitution of the State of Alaska, relating to and limiting appropriations from the Alaska 20 permanent fund based on an averaged percent of the fund market value, is approved by the 21 voters during the 2004 general election and takes effect. 22 * Sec. 12. If this Act takes effect under sec. 11 of this Act, it takes effect on January 1, 23 2005.