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CCS SB 26: "An Act relating to the earnings of the Alaska permanent fund and the earnings reserve account; relating to the mental health trust fund; and providing for an effective date."

00                   CONFERENCE CS FOR SENATE BILL NO. 26                                                                  
01 "An Act relating to the earnings of the Alaska permanent fund and the earnings reserve                                  
02 account; relating to the mental health trust fund; and providing for an effective date."                                
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.13.140 is amended by adding a new subsection to read:                                           
05 (b)  The corporation shall determine the amount available for appropriation                                             
06 each year. The amount available for appropriation is 5.25 percent of the average                                        
07 market value of the fund for the first five of the preceding six fiscal years, including                                
08 the fiscal year just ended, computed annually for each fiscal year in accordance with                                   
09 generally accepted accounting principles. In this subsection, "the average market value                                 
10 of the fund" includes the balance of the earnings reserve account established under                                     
11 AS 37.13.145, but does not include that portion of the principal attributed to the                                      
12 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                     
13       Judicial District).                                                                                               
14    * Sec. 2. AS 37.13.140(b), added by sec. 1 of this Act, is amended to read:                                        
01 (b)  The corporation shall determine the amount available for appropriation                                             
02 each year. The amount available for appropriation is five [5.25] percent of the average                             
03 market value of the fund for the first five of the preceding six fiscal years, including                                
04 the fiscal year just ended, computed annually for each fiscal year in accordance with                                   
05 generally accepted accounting principles. In this subsection, "the average market value                                 
06 of the fund" includes the balance of the earnings reserve account established under                                     
07 AS 37.13.145, but does not include that portion of the principal attributed to the                                      
08 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                     
09       Judicial District).                                                                                               
10    * Sec. 3. AS 37.13.145(c) is amended to read:                                                                      
11 (c)  After the transfer under (b) and an appropriation under (e) of this                                            
12 section, the corporation shall transfer from the earnings reserve account to the                                        
13 principal of the fund an amount sufficient to offset the effect of inflation on the                                 
14 principal of the fund during that fiscal year. However, none of the amount transferred                                  
15 shall be applied to increase the value of that portion of the principal attributed to the                               
16 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                     
17 Judicial District) on July 1, 2004. The corporation shall calculate the amount to                                       
18       transfer to the principal under this subsection by                                                                
19 (1)  computing the average of the monthly United States Consumer                                                        
20       Price Index for all urban consumers for each of the two previous calendar years;                                  
21 (2)  computing the percentage change between the first and second                                                       
22       calendar year average; and                                                                                        
23 (3)  applying that rate to the value of the principal of the fund on the                                                
24 last day of the fiscal year just ended, including that portion of the principal attributed                              
25 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court,                                    
26       First Judicial District).                                                                                         
27    * Sec. 4. AS 37.13.145(d) is amended to read:                                                                      
28 (d)  Notwithstanding (b) of this section, income earned on money awarded in                                             
29 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior                                     
30 Court, First Judicial District), including settlement, summary judgment, or adjustment                                  
31 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned                              
01 on the money, or on the earnings of the money shall be treated in the same manner as                                    
02 other income of the Alaska permanent fund, except that it is not available for                                          
03 distribution to the dividend fund, [OR] for transfers to the principal under (c) of this                            
04 section, or for an appropriation under (e) of this section, and shall be annually                                   
05       deposited into the Alaska capital income fund (AS 37.05.565).                                                     
06    * Sec. 5. AS 37.13.145 is amended by adding new subsections to read:                                               
07            (e)  The legislature may not appropriate from the earnings reserve account to                                
08       the general fund a total amount that exceeds the amount available for appropriation                               
09       under AS 37.13.140(b) in a fiscal year.                                                                           
10 (f)  The combined total of the transfer under (b) of this section and an                                                
11 appropriation under (e) of this section may not exceed the amount available for                                         
12       appropriation under AS 37.13.140(b).                                                                              
13    * Sec. 6. AS 37.13.150 is amended to read:                                                                         
14 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's                                               
15 investments must be identified as the source of the operating budget of the corporation                                 
16 in the state's operating budget under AS 37.07 (Executive Budget Act). The                                              
17 unexpended balance of the corporation's annual operating budget does not lapse at the                                   
18 end of the fiscal year but shall be treated as income and part of the market value of                               
19       the fund under AS 37.13.140.                                                                                  
20    * Sec. 7. AS 37.13.300(c) is amended to read:                                                                      
21 (c)  Net income from the mental health trust fund may not be included in the                                            
22 computation of net income or market value available for distribution or                                         
23       appropriation under AS 37.13.140.                                                                             
24    * Sec. 8. Section 2 of this Act takes effect July 1, 2021.                                                       
25    * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect July 1, 2018.