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SB 21: "An Act relating to appropriations from the income of the Alaska permanent fund; relating to the calculation of permanent fund dividends; and providing for an effective date."

00                             SENATE BILL NO. 21                                                                          
01 "An Act relating to appropriations from the income of the Alaska permanent fund;                                        
02 relating to the calculation of permanent fund dividends; and providing for an effective                                 
03 date."                                                                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 37.13.140 is amended to read:                                                                      
06 Sec. 37.13.140. Net income [INCOME]. Net income of the fund includes                                                
07 income of the earnings reserve account established under AS 37.13.145. Net income                                       
08 of the fund shall be computed annually as of the last day of the fiscal year in                                         
09 accordance with generally accepted accounting principles, excluding any unrealized                                      
10 gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21                                                           
11 PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL                                                          
12 YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT                                                                
13 EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED                                                            
14 PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED                                                              
01       IN AS 37.13.145.]                                                                                                 
02    * Sec. 2. AS 37.13.145(d) is amended to read:                                                                      
03 (d)  Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME]                                                           
04 earned on money awarded in or received as a result of State v. Amerada Hess, et al.,                                    
05 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement,                                        
06 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the                                       
07 outcome of this case, or interest earned on the money, or on the earnings of the money                                  
08 shall be treated in the same manner as other income of the Alaska permanent fund,                                       
09 except that it is not available for distribution to the dividend fund [OR FOR                                           
10 TRANSFERS TO THE PRINCIPAL UNDER (c) OF THIS SECTION], and shall be                                                     
11       annually deposited into the Alaska capital income fund (AS 37.05.565).                                            
12    * Sec. 3. AS 37.13.145 is amended by adding a new subsection to read:                                              
13 (e)  The legislature may appropriate from the earnings reserve account the                                              
14 following percentages of the average fiscal-year-end market value of the balance of                                     
15 the fund for the last five fiscal years, including the fiscal year just ended and including                             
16       any unrealized gains and losses:                                                                                  
17 (1)  to the dividend fund established under AS 43.23.045, between 2.25                                                  
18       and 4.5 percent; and                                                                                              
19 (2)  to the general fund, following the appropriation in (1) of this                                                    
20 subsection, an additional amount, not to exceed 2.25 percent, except that the total                                     
21 amount appropriated in a fiscal year from the earnings reserve account may not exceed                                   
22       4.5 percent.                                                                                                      
23    * Sec. 4. AS 43.23.025(a) is amended to read:                                                                      
24 (a)  By October 1 of each year, the commissioner shall determine the value of                                           
25       each permanent fund dividend for that year by                                                                     
26 (1)  determining the total amount available for dividend payments,                                                      
27       which equals                                                                                                      
28 (A)  the amount of income of the Alaska permanent fund                                                                  
29 appropriated [TRANSFERRED] to the dividend fund under                                                               
30            AS 37.13.145(e)(1) [AS 37.13.145(b)] during the current year;                                            
31 (B)  plus the unexpended and unobligated balances of prior                                                              
01            fiscal year appropriations that lapse into the dividend fund under                                           
02            AS 43.23.045(d);                                                                                             
03                      (C)  less the amount necessary to pay prior year dividends from                                    
04            the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and                                  
05            43.23.055(3) and (7);                                                                                        
06 (D)  less the amount necessary to pay dividends from the                                                                
07 dividend fund due to eligible applicants who, as determined by the department,                                          
08 filed for a previous year's dividend by the filing deadline but who were not                                            
09            included in a previous year's dividend computation;                                                          
10                      (E)  less appropriations from the dividend fund during the                                         
11            current year, including amounts to pay costs of administering the dividend                                   
12            program and the hold harmless provisions of AS 43.23.075;                                                    
13 (2)  determining the number of individuals eligible to receive a                                                        
14 dividend payment for the current year and the number of estates and successors                                          
15 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and                                  
16 (3)  dividing the amount determined under (1) of this subsection by the                                                 
17       amount determined under (2) of this subsection.                                                                   
18    * Sec. 5. AS 37.13.145(b) and 37.13.145(c) are repealed.                                                           
19    * Sec. 6. This Act takes effect July 1, 2017.