SB 122: "An Act establishing the Alaska capital income account within the Alaska permanent fund; relating to deposits into the account; relating to certain transfers regarding the Amerada Hess settlement to offset the effects of inflation on the Alaska permanent fund; and providing for an effective date."
00 SENATE BILL NO. 122 01 "An Act establishing the Alaska capital income account within the Alaska permanent 02 fund; relating to deposits into the account; relating to certain transfers regarding the 03 Amerada Hess settlement to offset the effects of inflation on the Alaska permanent fund; 04 and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.13.145(c) is amended to read: 07 (c) After the transfer under (b) of this section, the corporation shall transfer 08 from the earnings reserve account to the principal of the fund an amount sufficient to 09 offset the effect of inflation on principal of the fund during that fiscal year. The 10 corporation shall calculate the amount to transfer to the principal under this subsection 11 by 12 (1) computing the average of the monthly United States Consumer 13 Price Index for all urban consumers for each of the two previous calendar years; 14 (2) computing the percentage change between the first and second
01 calendar year average; and 02 (3) applying that rate to the value of the principal of the fund on the 03 last day of the fiscal year just ended as adjusted by subtracting from that value 04 $424,399,000, representing the total value of the principal attributed to the 05 settlement of State v. Amerada Hess, et al., 1 JU-77-847 Civ. (Superior Court, 06 First Judicial District) on June 30, 2004. 07 * Sec. 2. AS 37.13.145(d) is amended to read: 08 (d) Notwithstanding (b) of this section, income earned on money awarded in 09 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 10 Court, First Judicial District), including settlement, summary judgment, or adjustment 11 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 12 on the money, or on the earnings of the money shall be treated in the same manner as 13 other income of the Alaska permanent fund, except that it is not available for 14 distribution to the dividend fund, and shall be annually deposited into the Alaska 15 capital income account established in (e) of this section [PRINCIPAL OF THE 16 ALASKA PERMANENT FUND]. 17 * Sec. 3. AS 37.14.145 is amended by adding a new subsection to read: 18 (e) The Alaska capital income account is established as a separate account in 19 the fund. Money in the Alaska capital income account may be appropriated for any 20 valid public purpose, including to cover annual debt service and reserves for debt 21 service on bonds authorized by state law. Money in the account shall be invested in 22 investments authorized under AS 37.13.120. Nothing in this subsection creates a 23 dedicated fund. 24 * Sec. 4. This Act takes effect June 30, 2005.