Enrolled SB 26: 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.
00Enrolled SB 26 01 Relating to the earnings of the Alaska permanent fund and the earnings reserve account; 02 relating to the mental health trust fund; and providing for an effective date. 03 _______________ 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, "average market value of 10 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, "average market value of 06 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.