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HB 303: "An Act relating to the Alaska Permanent Fund Corporation, the earnings of the Alaska permanent fund, and the earnings reserve account; relating to the mental health trust fund; relating to deposits into the dividend fund; and providing for an effective date."

00                             HOUSE BILL NO. 303                                                                          
01 "An Act relating to the Alaska Permanent Fund Corporation, the earnings of the Alaska                                   
02 permanent fund, and the earnings reserve account; relating to the mental health trust                                   
03 fund; relating to deposits into the dividend fund; and providing for an effective date."                                
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 37.13.010(a) is amended to read:                                                                   
06            (a)  Under art. IX, sec. 15, of the state constitution, there is established as a                            
07       separate fund the Alaska permanent fund. The Alaska permanent fund consists of                                    
08                 (1)  25 percent of all mineral lease rentals, royalties, royalty sale                                   
09       proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue                            
10       sharing payments received by the state from mineral leases [ISSUED ON OR                                          
11       BEFORE DECEMBER 1, 1979,] and 25 percent of all bonuses received by the state                                     
12       from mineral leases [ISSUED ON OR BEFORE FEBRUARY 15, 1980;                                                       
13                 (2)  50 PERCENT OF ALL MINERAL LEASE RENTALS,                                                           
14       ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER                                                         
01       AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING                                                      
02       PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED                                                         
03       AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED                                                    
04       BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15,                                                        
05       1980]; and                                                                                                        
06                 (2) [(3)]  any other money appropriated to or otherwise allocated by                                
07       law or former law to the Alaska permanent fund.                                                                   
08    * Sec. 2. AS 37.13 is amended by adding a new section to read:                                                     
09            Sec. 37.13.015. Appropriations to the dividend fund. The legislature may                                   
10       appropriate to the dividend fund established in AS 43.23.045, 74.5 percent of all                                 
11       mineral lease rentals, royalties, royalty sale proceeds, net profit shares under                                  
12       AS 38.05.180(f) and (g), and federal mineral revenue sharing payments received by                                 
13       the state from mineral leases and 74.5 percent of all bonuses received by the state from                          
14       mineral leases. Nothing in the section creates a dedicated fund.                                                  
15    * Sec. 3. AS 37.13.140 is amended to read:                                                                         
16            Sec. 37.13.140. Income. (a) Net income of the fund includes income of the                                
17       earnings reserve account established under AS 37.13.145. The corporation shall                                
18       determine the net [NET] income of the fund [SHALL BE COMPUTED                                                 
19       ANNUALLY AS OF THE LAST DAY OF THE FISCAL YEAR] in accordance with                                                
20       generally accepted accounting principles as the income is realized and received.                              
21            (b)  The corporation shall determine the amount available for distribution                               
22       on July 1 of each year. The amount [, EXCLUDING ANY UNREALIZED GAINS                                          
23       OR LOSSES. INCOME] available for distribution equals five [21] percent of the                                 
24       average market value [NET INCOME] of the fund, including the balance of the                               
25       earnings reserve account established under AS 37.13.145, for the preceding                                
26       [LAST] five fiscal years, including the fiscal year just ended, computed annually for                         
27       each fiscal year in accordance with generally accepted accounting principles                                  
28       [BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE FISCAL                                                         
29       YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS RESERVE                                                          
30       ACCOUNT DESCRIBED IN AS 37.13.145].                                                                               
31    * Sec. 4. AS 37.13.145(a) is amended to read:                                                                      
01            (a)  The earnings reserve account is established as a separate account in the                                
02       fund. Except for income deposited into the general fund under (e) of this section,                            
03       income [INCOME] from the fund shall be deposited by the corporation into the                                  
04       account as soon as it is received. Money in the account shall be invested in                                      
05       investments authorized under AS 37.13.120.                                                                        
06    * Sec. 5. AS 37.13.145(d) is amended to read:                                                                      
07            (d)  Notwithstanding (e) [(b)] of this section, income earned on money                                   
08       awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ.                              
09       (Superior Court, First Judicial District), including settlement, summary judgment, or                             
10       adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or                             
11       interest earned on the money, or on the earnings of the money shall be treated in the                             
12       same manner as other income of the Alaska permanent fund, except that it is not                                   
13       available for distribution to the dividend fund or for transfers to the general fund                          
14       [PRINCIPAL] under (e) [(c)] of this section, and shall be annually deposited into the                         
15       Alaska capital income fund (AS 37.05.565).                                                                      
16    * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read:                                              
17            (e)  Under art. IX, sec. 15, Constitution of the State of Alaska, income from the                            
18       fund, including the earnings reserve account established under AS 37.13.145, shall be                             
19       deposited by the corporation into the general fund within 30 days after it is received,                           
20       until the amount available for distribution determined by the corporation under                                   
21       AS 37.13.140(b) has been deposited into the general fund for that fiscal year. If the                             
22       actual net income of the fund for a fiscal year is less than the amount of income                                 
23       available for distribution under AS 37.13.140(b) for that fiscal year, on the last day of                         
24       the fiscal year, the corporation shall deposit into the general fund the amount from the                          
25       earnings reserve account necessary to satisfy the amount of income available for                                  
26       distribution for that fiscal year or the balance of the earnings reserve account,                                 
27       whichever is less.                                                                                                
28    * Sec. 7. AS 37.13.300(c) is amended to read:                                                                      
29            (c)  Net income from the mental health trust fund may not be included in the                                 
30       computation of [NET] income available for distribution under AS 37.13.140(b)                                  
31       [AS 37.13.140].                                                                                                   
01    * Sec. 8. AS 37.14.031(c) is amended to read:                                                                      
02            (c)  The net income of the fund shall be computed annually [DETERMINED]                                  
03       by the Alaska Permanent Fund Corporation as of the last day of the fiscal year in                             
04       accordance with generally accepted accounting principles, excluding any                                       
05       unrealized gains or losses [IN THE SAME MANNER THE CORPORATION                                                
06       DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND                                                            
07       UNDER AS 37.13.140].                                                                                              
08    * Sec. 9. AS 43.23.025(a) is amended to read:                                                                      
09            (a)  By October 1 of each year, the commissioner shall determine the value of                                
10       each permanent fund dividend for that year by                                                                     
11                 (1)  determining the total amount available for dividend payments,                                      
12       which equals                                                                                                      
13                      (A)  the amount appropriated [OF INCOME OF THE                                                 
14            ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund                                                      
15            under AS 37.13.015 [AS 37.13.145(b)] during the current year;                                            
16                      (B)  plus the unexpended and unobligated balances of prior                                         
17            fiscal year appropriations that lapse into the dividend fund under                                           
18            AS 43.23.045(d);                                                                                             
19                      (C)  less the amount necessary to pay prior year dividends from                                    
20            the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and                                  
21            43.23.055(3) and (7);                                                                                        
22                      (D)  less the amount necessary to pay dividends from the                                           
23            dividend fund due to eligible applicants who, as determined by the department,                               
24            filed for a previous year's dividend by the filing deadline but who were not                                 
25            included in a previous year's dividend computation;                                                          
26                      (E)  less appropriations from the dividend fund during the                                         
27            current year, including amounts to pay costs of administering the dividend                                   
28            program and the hold harmless provisions of AS 43.23.075;                                                    
29                 (2)  determining the number of individuals eligible to receive a                                        
30       dividend payment for the current year and the number of estates and successors                                    
31       eligible to receive a dividend payment for the current year under AS 43.23.005(h); and                            
01                 (3)  dividing the amount determined under (1) of this subsection by the                                 
02       amount determined under (2) of this subsection.                                                                   
03    * Sec. 10. AS 43.23.025 is amended by adding a new subsection to read:                                             
04            (c)  If the value of each permanent fund dividend calculated under (a) of this                               
05       section results in a dividend for each eligible individual that is less than $1,000, then                         
06       the legislature may appropriate from the earnings reserve account established in                                  
07       AS 37.13.145 an amount necessary to pay each eligible individual a permanent fund                                 
08       dividend of $1,000.                                                                                               
09    * Sec. 11. AS 43.23.045(d) is amended to read:                                                                     
10            (d)  Unless specified otherwise in an appropriation act, the unexpended and                                  
11       unobligated balance of an appropriation to implement this chapter lapses into the                                 
12       dividend fund on June 30 of the fiscal year for which the appropriation was made and                              
13       may [SHALL] be used in determining the amount of and paying the subsequent year's                             
14       dividend as provided in AS 43.23.025(a)(1)(B).                                                                    
15    * Sec. 12. AS 37.13.145(b) and 37.13.145(c) are repealed.                                                          
16    * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to                         
17 read:                                                                                                                   
18       TRANSITION. (a) Notwithstanding AS 43.23.025(a), as amended by sec. 9 of this                                     
19 Act, AS 43.23.025(c), added by sec. 10 of this Act, and AS 43.23.045(d), as amended by sec.                             
20 11 of this Act, the commissioner of revenue shall determine the value of each permanent fund                            
21 dividend for the 2016 dividend year under AS 43.23.025 and 43.23.045(d), as those sections                              
22 read on the day before the effective date of secs. 9 - 11 of this Act.                                                  
23       (b)  The commissioner of revenue and the Alaska Permanent Fund Corporation may                                    
24 adopt regulations, policies, and procedures necessary to implement this Act. The regulations,                           
25 policies, or procedures may not take effect before the effective date of the law implemented                            
26 by the regulation, policy, or procedure.                                                                                
27    * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                   
29       RETROACTIVITY. If secs. 1 - 13 of this Act take effect after July 1, 2016, secs. 1 -                              
30 13 of this Act are retroactive to July 1, 2016.                                                                         
31    * Sec. 15. Sections 13 and 14 of this Act take effect immediately under AS 01.10.070(c).                           
01    * Sec. 16. Except as provided in sec. 15 of this Act, this Act takes effect July 1, 2016.