SB 26: "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; relating to the calculation of permanent fund dividends; relating to unrestricted state revenue available for appropriation; and providing for an effective date."
00 SENATE BILL NO. 26 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; relating to the calculation of 04 permanent fund dividends; relating to unrestricted state revenue available for 05 appropriation; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE INTENT. It is the intent of the legislature that the legislature 10 reevaluate the use of earnings of the Alaska permanent fund, as prescribed under this Act, in 11 three years. 12 * Sec. 2. AS 37.13.010(a) is amended to read: 13 (a) Under art. IX, sec. 15, of the state constitution, there is established as a
01 separate fund the Alaska permanent fund. The Alaska permanent fund consists of 02 (1) 25 percent of all mineral lease rentals, royalties, royalty sale 03 proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue 04 sharing payments received by the state from mineral leases [ISSUED ON OR 05 BEFORE DECEMBER 1, 1979,] and 25 percent of all bonuses received by the state 06 from mineral leases [ISSUED ON OR BEFORE FEBRUARY 15, 1980; 07 (2) 50 PERCENT OF ALL MINERAL LEASE RENTALS, 08 ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER 09 AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING 10 PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED 11 AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED 12 BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15, 13 1980]; and 14 (2) [(3)] any other money appropriated to or otherwise allocated by 15 law or former law to the Alaska permanent fund. 16 * Sec. 3. AS 37.13.140 is amended to read: 17 Sec. 37.13.140. Income. Net income of the fund includes income of the 18 earnings reserve account established under AS 37.13.145. The corporation shall 19 determine the net [NET] income of the fund [SHALL BE COMPUTED 20 ANNUALLY AS OF THE LAST DAY OF THE FISCAL YEAR] in accordance with 21 generally accepted accounting principles, excluding any unrealized gains or losses. 22 [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE 23 NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, 24 INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET 25 INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE 26 BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED IN 27 AS 37.13.145.] 28 * Sec. 4. AS 37.13.140 is amended by adding new subsections to read: 29 (b) The corporation shall determine the amount available for distribution each 30 year. The amount available for distribution equals five and one-quarter percent of the 31 average market value of the fund for the first five of the preceding six fiscal years,
01 including the fiscal year just ended, computed annually for each fiscal year in 02 accordance with generally accepted accounting principles. In this subsection, "the 03 average market value of the fund" includes the balance of the earnings reserve account 04 established under AS 37.13.145, but does not include that portion of the principal 05 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 06 (Superior Court, First Judicial District). 07 (c) In accordance with AS 37.13.146(a)(1), and subject to appropriation, 20 08 percent of the amount available for distribution under (b) of this section shall be 09 reserved for dividends. The remainder of the amount available for distribution under 10 (b) of this section shall be reduced by the difference between the amount calculated 11 under (1) of this subsection and the amount under (2) of this subsection if the amount 12 calculated under (1) of this subsection exceeds the amount under (2) of this 13 subsection: 14 (1) the total amount of oil and gas production taxes under 15 AS 43.55.011 - 43.55.180, mineral lease rentals, royalties, royalty sale proceeds, net 16 profit shares under AS 38.05.180(f) and (g), and federal mineral revenue sharing 17 payments and bonuses received by the state from mineral leases that are deposited into 18 the general fund in the current fiscal year, less the amount under AS 37.13.146(a)(2); 19 (2) the sum of $1,200,000,000. 20 * Sec. 5. AS 37.13.145(d) is amended to read: 21 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 22 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 23 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 24 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 25 outcome of this case, or interest earned on the money, or on the earnings of the money 26 shall be treated in the same manner as other income of the Alaska permanent fund, 27 except that it is not available for distribution [TO THE DIVIDEND FUND OR FOR 28 TRANSFERS TO THE PRINCIPAL] under AS 37.13.140(b) and (c) [OF THIS 29 SECTION], and shall be annually deposited into the Alaska capital income fund 30 (AS 37.05.565). 31 * Sec. 6. AS 37.13.145 is amended by adding new subsections to read:
01 (e) Each year the legislature may appropriate from the earnings reserve 02 account to the general fund an amount that does not exceed the amount available for 03 distribution under AS 37.13.140(b) and (c). 04 (f) Each year the legislature may appropriate from the earnings reserve 05 account to the principal of the fund an amount by which the balance of the earnings 06 reserve account exceeds the amount available for distribution under AS 37.13.140(b) 07 multiplied by four, less the amount appropriated under (e) of this section. 08 * Sec. 7. AS 37.13 is amended by adding new sections to read: 09 Sec. 37.13.146. Appropriations to the dividend fund. (a) The legislature may 10 appropriate to the dividend fund established in AS 43.23.045 the following amounts 11 from the general fund: 12 (1) 20 percent of the amount calculated under AS 37.13.140(b); and 13 (2) an amount equal to 20 percent of the money deposited in the 14 general fund during the fiscal year just ended from all mineral lease rentals, royalties, 15 royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), federal mineral 16 revenue sharing payments, and bonuses received by the state from mineral leases. 17 (b) Nothing in this section creates a dedicated fund. 18 * Sec. 8. AS 37.13.300(c) is amended to read: 19 (c) Net income from the mental health trust fund may not be included in the 20 computation of [NET] income available for distribution under AS 37.13.140(b) 21 [AS 37.13.140]. 22 * Sec. 9. AS 43.23.025(a) is amended to read: 23 (a) By October 1 of each year, the commissioner shall determine the value of 24 each permanent fund dividend for that year by 25 (1) determining the total amount available for dividend payments, 26 which equals 27 (A) the amount appropriated [OF INCOME OF THE 28 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 29 under AS 37.13.146 [AS 37.13.145(b)] during the current year; 30 (B) plus the unexpended and unobligated balances of prior 31 fiscal year appropriations that lapse into the dividend fund under
01 AS 43.23.045(d); 02 (C) less the amount necessary to pay prior year dividends from 03 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 04 43.23.055(3) and (7); 05 (D) less the amount necessary to pay dividends from the 06 dividend fund due to eligible applicants who, as determined by the department, 07 filed for a previous year's dividend by the filing deadline but who were not 08 included in a previous year's dividend computation; 09 (E) less appropriations from the dividend fund during the 10 current year, including amounts to pay costs of administering the dividend 11 program and the hold harmless provisions of AS 43.23.075; 12 (2) determining the number of individuals eligible to receive a 13 dividend payment for the current year and the number of estates and successors 14 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 15 (3) dividing the amount determined under (1) of this subsection by the 16 amount determined under (2) of this subsection. 17 * Sec. 10. AS 43.23.025 is amended by adding a new subsection to read: 18 (c) Notwithstanding (a) of this section, the amount of each permanent fund 19 dividend for fiscal years 2018 and 2019 shall be $1,000. 20 * Sec. 11. AS 43.23.045(a) is amended to read: 21 (a) The dividend fund is established as a separate fund in the state treasury. 22 The fund consists of money appropriated to it under AS 37.13.146. The dividend 23 fund shall be administered by the commissioner and shall be invested by the 24 commissioner in the same manner as provided in AS 37.10.070. 25 * Sec. 12. AS 43.23.055 is amended to read: 26 Sec. 43.23.055. Duties of the department. The department shall 27 (1) annually pay permanent fund dividends from the dividend fund, 28 without further appropriation; 29 (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 30 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 31 and time limits for claiming a permanent fund dividend; the department shall
01 determine the number of eligible applicants by October 1 of the year for which the 02 dividend is declared and pay the dividends by December 31 of that year; 03 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 04 that establish procedures and time limits for an individual upon emancipation or upon 05 reaching majority to apply for permanent fund dividends not received during minority 06 because the parent, guardian, or other authorized representative did not apply on 07 behalf of the individual; 08 (4) assist residents of the state, particularly in rural areas, who because 09 of language, disability, or inaccessibility to public transportation need assistance to 10 establish eligibility and to apply for permanent fund dividends; 11 (5) use a list of individuals ineligible for a dividend under 12 AS 43.23.005(d) provided annually by the Department of Corrections and the 13 Department of Public Safety to determine the number and identity of those 14 individuals; 15 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 16 (7) adopt regulations that establish procedures for the parent, guardian, 17 or other authorized representative of a disabled individual to apply for prior year 18 permanent fund dividends not received by the disabled individual because no 19 application was submitted on behalf of the individual; 20 (8) adopt regulations that establish procedures for an individual to 21 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 22 collected within two years after the date of its issuance; however, the department may 23 not establish a time limit within which an application to have a disbursement reissued 24 must be filed; 25 (9) provide any information, upon request, contained in permanent 26 fund dividend records to the child support services agency created in AS 25.27.010, or 27 the child support enforcement agency of another state, for child support purposes 28 authorized under law; if the information is contained in an electronic data base, the 29 department shall provide the requesting agency with either 30 (A) access to the data base; or 31 (B) a copy of the information in the data base and a statement
01 certifying its contents; 02 (10) establish a fraud investigation unit for the purpose of assisting the 03 (A) Department of Law in the prosecution of individuals who 04 apply for or obtain a permanent fund dividend in violation of a provision in 05 AS 11, by detecting and investigating those crimes; and 06 (B) commissioner to detect and investigate the claiming or 07 paying of permanent fund dividends that should not have been claimed by or 08 paid to an individual and to impose the penalties and enforcement provisions 09 under AS 43.23.035. 10 * Sec. 13. AS 37.10.430(c); AS 37.13.145(b), and 37.13.145(c) are repealed. 11 * Sec. 14. AS 43.23.025(c) is repealed June 30, 2020. 12 * Sec. 15. This Act takes effect immediately under AS 01.10.070(c).