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CSSB 128(FIN): "An Act relating to the Alaska Permanent Fund Corporation, the earnings of the Alaska permanent fund, and the earnings reserve account; relating to management of the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) by the Alaska Permanent Fund Corporation; relating to procurement by the Alaska Permanent Fund Corporation; relating to the mental health trust fund; relating to deposits into the dividend fund; relating to the calculation of permanent fund dividends; relating to unrestricted state revenue available for appropriation; and providing for an effective date."

00                       CS FOR SENATE BILL NO. 128(FIN)                                                                   
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 management of the                                         
03 budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) by the Alaska                               
04 Permanent Fund Corporation; relating to procurement by the Alaska Permanent Fund                                        
05 Corporation; relating to the mental health trust fund; relating to deposits into the                                    
06 dividend fund; relating to the calculation of permanent fund dividends; relating to                                     
07 unrestricted state revenue available for appropriation; and providing for an effective                                  
08 date."                                                                                                                  
09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
10    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
11 to read:                                                                                                                
12       LEGISLATIVE INTENT. It is the intent of the legislature that the legislature                                      
01 reevaluate the use of earnings of the Alaska permanent fund, as prescribed under this Act, in                           
02 three years.                                                                                                            
03    * Sec. 2. AS 36.30.015 is amended by adding a new subsection to read:                                              
04            (l)  The board of trustees of the Alaska Permanent Fund Corporation shall                                    
05       adopt regulations to govern the procurement of supplies, services, and professional                               
06       services. The regulations must be similar to the procedures described in this chapter                             
07       and in regulations adopted under this chapter. Notwithstanding any other provisions of                            
08       this subsection, the Alaska Permanent Fund Corporation shall comply with the five                                 
09       percent preference under AS 36.30.321(a) and the requirement that contracts for legal                             
10       services be approved by the attorney general under (d) of this section.                                           
11    * Sec. 3. AS 36.30.990(1) is amended to read:                                                                      
12                 (1)  "agency"                                                                                           
13                      (A)  means a department, institution, board, commission,                                           
14            division, authority, public corporation, the Alaska Pioneers' Home, the Alaska                               
15            Veterans' Home, or other administrative unit of the executive branch of state                                
16            government;                                                                                                  
17                      (B)  does not include                                                                              
18                           (i)  the University of Alaska;                                                                
19                           (ii)  the Alaska Railroad Corporation;                                                        
20                           (iii)  the Alaska Housing Finance Corporation;                                                
21                           (iv)  a regional Native housing authority created under                                       
22                 AS 18.55.996 or a regional electrical authority created under                                           
23                 AS 18.57.020;                                                                                           
24                           (v)  the Department of Transportation and Public                                              
25                 Facilities, in regard to the repair, maintenance, and reconstruction of                                 
26                 vessels, docking facilities, and passenger and vehicle transfer facilities                              
27                 of the Alaska marine highway system;                                                                    
28                           (vi)  the Alaska Aerospace Corporation;                                                       
29                           (vii)  the Alaska Retirement Management Board;                                                
30                           (viii)  the Alaska Seafood Marketing Institute;                                               
31                           (ix)  the Alaska children's trust and the Alaska                                              
01                 Children's Trust Board;                                                                                 
02                           (x)  the Alaska Industrial Development and Export                                             
03                 Authority;                                                                                              
04                           (xi)  the Alaska Permanent Fund Corporation;                                              
05    * Sec. 4. AS 37.10.430(a) is amended to read:                                                                      
06            (a)  The Alaska Permanent Fund Corporation shall manage and invest the                                   
07       assets of [DEPARTMENT OF REVENUE MAY TRANSFER MANAGEMENT                                                      
08       RESPONSIBILITY OVER ALL OR A PORTION OF] the budget reserve fund (art.                                            
09       IX, sec. 17, Constitution of the State of Alaska) in the manner set out for the                               
10       management and investment of the assets of the Alaska permanent fund under                                    
11       AS 37.13.120 [TO THE ALASKA PERMANENT FUND CORPORATION].                                                      
12    * Sec. 5. AS 37.10.430(b) is amended to read:                                                                      
13            (b)  By March 15 of each year, the Alaska Permanent Fund Corporation                                     
14       [DEPARTMENT OF REVENUE] shall [, AFTER CONSULTING WITH THE                                                        
15       ALASKA PERMANENT FUND CORPORATION,] prepare a report setting out the                                              
16       balance in the budget reserve fund (art. IX, sec. 17, Constitution of the State of                                
17       Alaska) on July 1 [JANUARY 1] and on June 30 [DECEMBER 31] of the previous                                
18       fiscal [CALENDAR] year. The report shall state the nominal, real, and realized return                         
19       on the budget reserve fund compared to the nominal, real, and realized return on the                              
20       permanent fund and the general fund during the previous fiscal [CALENDAR] year.                               
21    * Sec. 6. AS 37.13.010(a) is amended to read:                                                                      
22            (a)  Under art. IX, sec. 15, of the state constitution, there is established as a                            
23       separate fund the Alaska permanent fund. The Alaska permanent fund consists of                                    
24                 (1)  25 percent of all mineral lease rentals, royalties, royalty sale                                   
25       proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue                            
26       sharing payments received by the state from mineral leases [ISSUED ON OR                                          
27       BEFORE DECEMBER 1, 1979,] and 25 percent of all bonuses received by the state                                     
28       from mineral leases [ISSUED ON OR BEFORE FEBRUARY 15, 1980;                                                       
29                 (2)  50 PERCENT OF ALL MINERAL LEASE RENTALS,                                                           
30       ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER                                                         
31       AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING                                                      
01       PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED                                                         
02       AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED                                                    
03       BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15,                                                        
04       1980]; and                                                                                                        
05                 (2) [(3)]  any other money appropriated to or otherwise allocated by                                
06       law or former law to the Alaska permanent fund.                                                                   
07    * Sec. 7. AS 37.13.140 is amended to read:                                                                         
08            Sec. 37.13.140. Income. Net income of the fund includes income of the                                      
09       earnings reserve account established under AS 37.13.145. The corporation shall                                
10       determine the net [NET] income of the fund [SHALL BE COMPUTED                                                 
11       ANNUALLY AS OF THE LAST DAY OF THE FISCAL YEAR] in accordance with                                                
12       generally accepted accounting principles, excluding any unrealized gains or losses.                               
13       [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE                                                       
14       NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS,                                                            
15       INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET                                                      
16       INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE                                                        
17       BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED IN                                                              
18       AS 37.13.145.]                                                                                                    
19    * Sec. 8. AS 37.13.140 is amended by adding new subsections to read:                                               
20            (b)  The corporation shall determine the amount available for distribution each                              
21       year. The amount available for distribution equals five and one-quarter percent of the                            
22       average market value of the fund for the first five of the preceding six fiscal years,                            
23       including the fiscal year just ended, computed annually for each fiscal year in                                   
24       accordance with generally accepted accounting principles. In this subsection, "the                                
25       average market value of the fund" includes the balance of the earnings reserve account                            
26       established under AS 37.13.145, but does not include that portion of the principal                                
27       attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ.                                    
28       (Superior Court, First Judicial District).                                                                        
29            (c)  In accordance with AS 37.13.146(a)(1), 20 percent of the amount available                               
30       for distribution under (b) of this section shall be reserved for dividends. The remainder                         
31       of the amount available for distribution under (b) of this section shall be reduced by                            
01       the difference between the amount calculated under (1) of this subsection and the                                 
02       amount under (2) of this subsection if the amount calculated under (1) of this                                    
03       subsection exceeds the amount under (2) of this subsection:                                                       
04                 (1)  the total amount of oil and gas production taxes under                                             
05       AS 43.55.011 - 43.55.180, mineral lease rentals, royalties, royalty sale proceeds, net                            
06       profit shares under AS 38.05.180(f) and (g), and federal mineral revenue sharing                                  
07       payments and bonuses received by the state from mineral leases that are deposited into                            
08       the general fund in the current fiscal year, less the amount under AS 37.13.146(a)(2);                            
09                 (2)  the sum of $1,200,000,000.                                                                         
10    * Sec. 9. AS 37.13.145(d) is amended to read:                                                                      
11            (d)  Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME]                                                
12       earned on money awarded in or received as a result of State v. Amerada Hess, et al.,                              
13       1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement,                                  
14       summary judgment, or adjustment to a royalty-in-kind contract that is tied to the                                 
15       outcome of this case, or interest earned on the money, or on the earnings of the money                            
16       shall be treated in the same manner as other income of the Alaska permanent fund,                                 
17       except that it is not available for distribution [TO THE DIVIDEND FUND OR FOR                                     
18       TRANSFERS TO THE PRINCIPAL] under AS 37.13.140(b) and (c) [OF THIS                                            
19       SECTION], and shall be annually deposited into the Alaska capital income fund                                     
20       (AS 37.05.565).                                                                                                   
21    * Sec. 10. AS 37.13.145 is amended by adding new subsections to read:                                              
22            (e)  Each year the legislature may appropriate from the earnings reserve                                     
23       account to the general fund an amount that does not exceed the amount available for                               
24       distribution under AS 37.13.140(b) and (c).                                                                       
25            (f)  Each year the legislature may appropriate from the earnings reserve                                     
26       account to the principal of the fund an amount by which the balance of the earnings                               
27       reserve account exceeds the amount available for distribution under AS 37.13.140(b)                               
28       multiplied by four, less the amount appropriated under (e) of this section.                                       
29    * Sec. 11. AS 37.13 is amended by adding new sections to read:                                                     
30            Sec. 37.13.146. Appropriations to the dividend fund. (a) The legislature may                               
31       appropriate to the dividend fund established in AS 43.23.045 the following amounts                                
01       from the general fund:                                                                                            
02                 (1)  20 percent of the amount calculated under AS 37.13.140(b); and                                     
03                 (2)  an amount equal to 20 percent of the money deposited in the                                        
04       general fund during the fiscal year just ended from all mineral lease rentals, royalties,                         
05       royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), federal mineral                           
06       revenue sharing payments, and bonuses received by the state from mineral leases.                                  
07            (b)  Nothing in this section creates a dedicated fund.                                                       
08            Sec. 37.13.148. Appropriation of revenue. (a) If the unrestricted state                                    
09       revenue available for appropriation in the preceding fiscal year exceeds the                                      
10       unrestricted general fund appropriations made for the same fiscal year, the legislature                           
11       may appropriate the amount of unrestricted state revenue in excess of unrestricted                                
12       general fund appropriations as follows:                                                                           
13                 (1)  50 percent to the Alaska permanent fund (art. IX, sec. 15,                                         
14       Constitution of the State of Alaska); and                                                                         
15                 (2)  50 percent to the budget reserve fund (art. IX, sec. 17, Constitution                              
16       of the State of Alaska).                                                                                          
17            (b)  In this section, "unrestricted state revenue" does not include the balance or                           
18       earnings of the earnings reserve account established under AS 37.13.145(a).                                     
19    * Sec. 12. AS 37.13.206(a) is amended to read:                                                                     
20            (a)  The board may adopt regulations to carry out the purposes of this chapter                               
21       and shall adopt regulations under AS 36.30.015(l) and AS 37.13.120(a). The                                    
22       provisions of AS 44.62 (Administrative Procedure Act) regarding the adoption of                                   
23       regulations do not apply to regulations of the corporation.                                                       
24    * Sec. 13. AS 37.13.300(c) is amended to read:                                                                     
25            (c)  Net income from the mental health trust fund may not be included in the                                 
26       computation of [NET] income available for distribution under AS 37.13.140(b)                                  
27       [AS 37.13.140].                                                                                                   
28    * Sec. 14. AS 43.23.025(a) is amended to read:                                                                     
29            (a)  By October 1 of each year, the commissioner shall determine the value of                                
30       each permanent fund dividend for that year by                                                                     
31                 (1)  determining the total amount available for dividend payments,                                      
01       which equals                                                                                                      
02                      (A)  the amount appropriated [OF INCOME OF THE                                                 
03            ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund                                                      
04            under AS 37.13.146 [AS 37.13.145(b)] during the current year;                                            
05                      (B)  plus the unexpended and unobligated balances of prior                                         
06            fiscal year appropriations that lapse into the dividend fund under                                           
07            AS 43.23.045(d);                                                                                             
08                      (C)  less the amount necessary to pay prior year dividends from                                    
09            the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and                                  
10            43.23.055(3) and (7);                                                                                        
11                      (D)  less the amount necessary to pay dividends from the                                           
12            dividend fund due to eligible applicants who, as determined by the department,                               
13            filed for a previous year's dividend by the filing deadline but who were not                                 
14            included in a previous year's dividend computation;                                                          
15                      (E)  less appropriations from the dividend fund during the                                         
16            current year, including amounts to pay costs of administering the dividend                                   
17            program and the hold harmless provisions of AS 43.23.075;                                                    
18                 (2)  determining the number of individuals eligible to receive a                                        
19       dividend payment for the current year and the number of estates and successors                                    
20       eligible to receive a dividend payment for the current year under AS 43.23.005(h); and                            
21                 (3)  dividing the amount determined under (1) of this subsection by the                                 
22       amount determined under (2) of this subsection.                                                                   
23    * Sec. 15. AS 43.23.025 is amended by adding a new subsection to read:                                             
24            (c)  Notwithstanding (a) of this section, the amount of each permanent fund                                  
25       dividend for fiscal years 2017, 2018, and 2019 shall be $1,000.                                                   
26    * Sec. 16. AS 43.23.045(a) is amended to read:                                                                     
27            (a)  The dividend fund is established as a separate fund in the state treasury.                              
28       The fund consists of money appropriated to it under AS 37.13.146. The dividend                                
29       fund shall be administered by the commissioner and shall be invested by the                                       
30       commissioner in the same manner as provided in AS 37.10.070.                                                      
31    * Sec. 17. AS 43.23.055 is amended to read:                                                                        
01            Sec. 43.23.055. Duties of the department. The department shall                                             
02                 (1)  annually pay permanent fund dividends from the dividend fund,                                  
03       without further appropriation;                                                                                
04                 (2)  subject to AS 43.23.011 and paragraph (8) of this section, adopt                                   
05       regulations under AS 44.62 (Administrative Procedure Act) that establish procedures                               
06       and time limits for claiming a permanent fund dividend; the department shall                                      
07       determine the number of eligible applicants by October 1 of the year for which the                                
08       dividend is declared and pay the dividends by December 31 of that year;                                           
09                 (3)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                    
10       that establish procedures and time limits for an individual upon emancipation or upon                             
11       reaching majority to apply for permanent fund dividends not received during minority                              
12       because the parent, guardian, or other authorized representative did not apply on                                 
13       behalf of the individual;                                                                                         
14                 (4)  assist residents of the state, particularly in rural areas, who because                            
15       of language, disability, or inaccessibility to public transportation need assistance to                           
16       establish eligibility and to apply for permanent fund dividends;                                                  
17                 (5)  use a list of individuals ineligible for a dividend under                                          
18       AS 43.23.005(d) provided annually by the Department of Corrections and the                                        
19       Department of Public Safety to determine the number and identity of those                                         
20       individuals;                                                                                                      
21                 (6)  adopt regulations that are necessary to implement AS 43.23.005(d);                                 
22                 (7)  adopt regulations that establish procedures for the parent, guardian,                              
23       or other authorized representative of a disabled individual to apply for prior year                               
24       permanent fund dividends not received by the disabled individual because no                                       
25       application was submitted on behalf of the individual;                                                            
26                 (8)  adopt regulations that establish procedures for an individual to                                   
27       apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not                              
28       collected within two years after the date of its issuance; however, the department may                            
29       not establish a time limit within which an application to have a disbursement reissued                            
30       must be filed;                                                                                                    
31                 (9)  provide any information, upon request, contained in permanent                                      
01       fund dividend records to the child support services agency created in AS 25.27.010, or                            
02       the child support enforcement agency of another state, for child support purposes                                 
03       authorized under law; if the information is contained in an electronic data base, the                             
04       department shall provide the requesting agency with either                                                        
05                      (A)  access to the data base; or                                                                   
06                      (B)  a copy of the information in the data base and a statement                                    
07            certifying its contents;                                                                                     
08                 (10)  establish a fraud investigation unit for the purpose of assisting the                             
09                      (A)  Department of Law in the prosecution of individuals who                                       
10            apply for or obtain a permanent fund dividend in violation of a provision in                                 
11            AS 11, by detecting and investigating those crimes; and                                                      
12                      (B)  commissioner to detect and investigate the claiming or                                        
13            paying of permanent fund dividends that should not have been claimed by or                                   
14            paid to an individual and to impose the penalties and enforcement provisions                                 
15            under AS 43.23.035.                                                                                          
16    * Sec. 18. AS 37.10.430(c); AS 37.13.145(b), and 37.13.145(c) are repealed.                                      
17    * Sec. 19. AS 43.23.025(c) is repealed June 30, 2020.                                                              
18    * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to                         
19 read:                                                                                                                   
20       TRANSITION. The commissioner of revenue and the Alaska Permanent Fund                                             
21 Corporation may adopt regulations, policies, and procedures necessary to implement this Act.                            
22 The regulations, policies, or procedures may not take effect before the effective date of the                           
23 law implemented by the regulation, policy, or procedure.                                                                
24    * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to                         
25 read:                                                                                                                   
26       RETROACTIVITY. If secs. 6 - 11 and 13 - 18 of this Act take effect after July 1,                                  
27 2016, secs. 6 - 11 and 13 - 18 of this Act are retroactive to July 1, 2016.                                             
28    * Sec. 22. Sections 2, 3, 12, 20, and 21 of this Act take effect immediately under                                 
29 AS 01.10.070(c).                                                                                                        
30    * Sec. 23. Except as provided in sec. 22 of this Act, this Act takes effect July 1, 2016.