00                            HOUSE BILL NO. 409                                                                          
01 "An Act requiring a taxpayer with an unsatisfied judgment against the taxpayer in                                       
02 favor of the state or a political subdivision for more than $100,000 who appeals that                                   
03 judgment to deposit a bond or other security on appeal and setting the postjudgment                                     
04 interest rate on that judgment; and amending Rules 204, 602, and 603, Alaska Rules of                                   
05 Appellate Procedure."                                                                                                   
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1. AS 09.30.070 is amended by adding new subsections to read:                                            
08            (d)  For a calendar year after 2007, if a state court or administrative agency or                            
09       federal court that has subject matter jurisdiction has entered a judgment in favor of the                         
10       state or a political subdivision of the state for unpaid taxes in an amount greater than                          
11       $100,000 against a taxpayer, the taxpayer has not satisfied the judgment, and the                                 
12       judgment concerns a matter having connections with this state that are sufficient to                              
13       satisfy constitutional jurisdictional requirements, during the pendency of an appeal,                             

01       the taxpayer shall deposit in the court where the judgment was entered or the appeal is                           
02       pending, in the form of cash, bond, or other security, the full amount of the judgment                            
03       and postjudgment interest on the full amount of the judgment; the postjudgment                                    
04       interest rate compounded daily on the full amount of the judgment is equal to the                                 
05       greater of the applicable statutory rate or the rate of return on the taxpayer's equity as                        
06       shown on the taxpayer's most recent quarterly earnings report as of the date of the                               
07       notice of appeal.                                                                                                 
08            (e)  In (d) of this section,                                                                                 
09                 (1)  "judgment" means any final administrative determination or                                         
10       judgment in favor of the state or a political subdivision of the state;                                           
11                 (2)  "taxpayer" includes an affiliate of a taxpayer.                                                    
12    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
13 read:                                                                                                                   
14       INDIRECT COURT RULE AMENDMENT. AS 09.30.070(d) and (e), added                                                     
15 by sec. 1 of this Act have the effect of changing Rules 204, 602, and 603, Alaska                                       
16 Rules of Appellate Procedure, by setting the amount and requiring the deposit of                                        
17 cash, bond, or other security during the pendency of an appeal.                                                       
18    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
19 read:                                                                                                                   
20       TRANSITION. A taxpayer that is required to make a deposit under AS 09.30.070(d),                                  
21 enacted in sec. 1 of this Act, before the effective date of this Act shall make the deposit                             
22 required by AS 09.30.070(d) within 30 days after the effective date of this Act.                                        
23    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
24 read:                                                                                                                   
25       REVISOR'S INSTRUCTIONS. The revisor of statutes is instructed to change the                                       
26 catchline of AS 09.30.070 from "Interest on judgments; prejudgment interest" to "Interest on                            
27 judgments; prejudgment interest; required taxpayer deposits."                                                           
28    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a                                           
29 new section to read:                                                                                                    
30       CONDITIONAL EFFECT. AS 09.30.070(d) and (e), added by sec. 1 of this                                              
31 Act, take effect only if sec. 2 of this Act receives the two-thirds majority vote of                                    

01 each house required by art. IV, sec. 15, Constitution of the State of Alaska.