CSSB 78(FIN): "An Act creating the education endowment fund and the dividend raffle fund; authorizing donations from the permanent fund dividend for educational purposes and to enter the permanent fund dividend raffle; relating to transfers from the dividend raffle fund and the education endowment fund; relating to the duties of the Department of Revenue; relating to the definition of 'gambling'; and providing for an effective date."
00 CS FOR SENATE BILL NO. 78(FIN) 01 "An Act creating the education endowment fund and the dividend raffle fund; 02 authorizing donations from the permanent fund dividend for educational purposes and 03 to enter the permanent fund dividend raffle; relating to transfers from the dividend 04 raffle fund and the education endowment fund; relating to the duties of the Department 05 of Revenue; relating to the definition of 'gambling'; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 11.66.280(3) is amended to read: 08 (3) "gambling" means that a person stakes or risks something of value 09 upon the outcome of a contest of chance or a future contingent event not under the 10 person's control or influence, upon an agreement or understanding that that person or 11 someone else will receive something of value in the event of a certain outcome; 12 "gambling" does not include 13 (A) bona fide business transactions valid under the law of
01 contracts for the purchase or sale at a future date of securities or commodities 02 and agreements to compensate for loss caused by the happening of chance, 03 including contracts of indemnity or guaranty and life, health, or accident 04 insurance; 05 (B) playing an amusement device that 06 (i) confers only an immediate right of replay not 07 exchangeable for something of value other than the privilege of 08 immediate replay and does not contain a method or device by which the 09 privilege of immediate replay may be cancelled or revoked; 10 (ii) confers only tickets, credits, allowances, tokens, or 11 anything of value that can be redeemed for toys, candy, or electronic 12 novelties offered at the same facility where the amusement device is 13 located; or 14 (iii) allows a player to manipulate a claw machine or 15 similar device within an enclosure and enables a person to receive 16 merchandise directly from the machine; [OR] 17 (C) an activity authorized by the Department of Revenue under 18 AS 05.15; or 19 (D) the permanent fund dividend raffle authorized under 20 AS 43.23.064; 21 * Sec. 2. AS 43.23.055 is amended to read: 22 Sec. 43.23.055. Duties of the department. The department shall 23 (1) annually pay permanent fund dividends from the dividend fund; 24 (2) subject to AS 43.23.011 and [PARAGRAPH] (8) of this section, 25 adopt regulations under AS 44.62 (Administrative Procedure Act) that establish 26 procedures and time limits for claiming a permanent fund dividend; the department 27 shall determine the number of eligible applicants by October 1 of the year for which 28 the dividend is declared and pay the dividends by December 31 of that year; 29 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 30 that establish procedures and time limits for an individual upon emancipation or upon 31 reaching majority to apply for permanent fund dividends not received during minority
01 because the parent, guardian, or other authorized representative did not apply on 02 behalf of the individual; 03 (4) assist residents of the state, particularly in rural areas, who, because 04 of language, disability, or inaccessibility to public transportation, need assistance to 05 establish eligibility and to apply for permanent fund dividends; 06 (5) use a list of individuals ineligible for a dividend under 07 AS 43.23.005(d) provided annually by the Department of Corrections and the 08 Department of Public Safety to determine the number and identity of those 09 individuals; 10 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 11 (7) adopt regulations that establish procedures for the parent, guardian, 12 or other authorized representative of a disabled individual to apply for prior year 13 permanent fund dividends not received by the disabled individual because no 14 application was submitted on behalf of the individual; 15 (8) adopt regulations that establish procedures for an individual to 16 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 17 collected within two years after the date of its issuance; however, the department may 18 not establish a time limit within which an application to have a disbursement reissued 19 must be filed; 20 (9) provide any information, upon request, contained in permanent 21 fund dividend records to the child support services agency created in AS 25.27.010, or 22 the child support enforcement agency of another state, for child support purposes 23 authorized under law; if the information is contained in an electronic data base, the 24 department shall provide the requesting agency with either 25 (A) access to the data base; or 26 (B) a copy of the information in the data base and a statement 27 certifying its contents; 28 (10) establish a fraud investigation unit for the purpose of assisting the 29 (A) Department of Law in the prosecution of individuals who 30 apply for or obtain a permanent fund dividend in violation of a provision in 31 AS 11, by detecting and investigating those crimes; [AND]
01 (B) commissioner to detect and investigate the claiming or 02 paying of permanent fund dividends that should not have been claimed by or 03 paid to an individual and to impose the penalties and enforcement provisions 04 under AS 43.23.035; and 05 (11) adopt regulations under AS 44.62 (Administrative Procedure 06 Act) so that contributions under AS 43.23.062 are given a priority over donations 07 under AS 43.23.064 if the total amount of contributions and donations elected by 08 an applicant exceeds the amount of the permanent fund dividend that the 09 applicant is entitled to receive. 10 * Sec. 3. AS 43.23 is amended by adding new sections to read: 11 Sec. 43.23.063. Education endowment fund. (a) The education endowment 12 fund is established as a separate account in the general fund. The fund consists of 13 appropriations from 14 (1) donations to the fund under AS 43.23.064(b); 15 (2) transfers to the fund under AS 43.23.064(c); 16 (3) interest earned on the fund; and 17 (4) any other money appropriated to the fund. 18 (b) The commissioner is the fiduciary of the fund. In managing the fund, the 19 commissioner shall 20 (1) have the same powers and duties as provided in AS 37.10.071; and 21 (2) invest the fund in a manner likely to achieve at least a four percent 22 nominal return over a five-year period to meet the objectives of the fund. 23 (c) In managing the fund, the commissioner shall 24 (1) consider the status of the fund's capital and the income generated 25 on both current and probable future bases; 26 (2) determine the appropriate investment objectives; 27 (3) establish investment policies to achieve the objectives; and 28 (4) act only in regard to the best financial interests of the fund. 29 (d) On July 1 of each year, the commissioner shall 30 (1) determine the fund balance for the previously closed fiscal year, 31 including the earnings of the fund; and
01 (2) when the average market value for that fiscal year exceeds 02 $1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 03 balance of the fund for the last five fiscal years, including the fiscal year just ended, 04 and including any unrealized gains and losses, to the public education fund established 05 in AS 14.17.300, subject to appropriation. 06 (e) Money appropriated to the fund does not lapse. 07 Sec. 43.23.064. Dividend raffle fund; dividend donations to the dividend 08 raffle fund; drawing. (a) The dividend raffle fund is established as an account in the 09 general fund. The commissioner shall manage the fund. Interest and other income 10 received on money in the fund shall be separately accounted for and shall be 11 appropriated to the fund. The fund consists of donations appropriated to the fund 12 under (c) of this section. The commissioner shall use the dividend raffle fund, without 13 further appropriation, to pay for prizes as set out in (d) of this section and may use up 14 to two percent of the balance of the fund but not more than $500,000 from the fund 15 each fiscal year to pay the cost of administering the fund and for promotion and 16 advertisement of the fund. When the balance of the dividend raffle fund exceeds 17 $500,000,000 at the end of a fiscal year, the commissioner shall transfer the amount 18 above $500,000,000 to the education endowment fund established in AS 43.23.063. 19 Money donated to the fund does not lapse. 20 (b) Notwithstanding AS 43.23.069, the department shall provide on the Alaska 21 permanent fund dividend application an option for an applicant who is 18 years of age 22 or older to direct that all or a portion of the applicant's dividend payment be donated 23 for educational purposes and to enter the permanent fund dividend raffle as provided 24 in (c) of this section. A donation under this section may be $100 or more, in 25 increments of $100, up to the total amount of the permanent fund dividend that the 26 applicant is entitled to receive. 27 (c) Of the donations received in a year under (b) of this section, the legislature 28 shall appropriate 25 percent to the education endowment fund established in 29 AS 43.23.063 and shall appropriate 25 percent to the dividend raffle fund. The 30 legislature shall appropriate the remaining 50 percent of the donations received under 31 (b) of this section to the public education fund established in AS 14.17.300.
01 (d) At the beginning of each year, the commissioner shall conduct a public 02 drawing to award prizes from the dividend raffle fund. Each $100 donation as 03 provided in (b) of this section entitles a person to one entry into the raffle. The prizes 04 for the raffle shall be as follows: 05 (1) the first name drawn receives an amount equal to 10 percent of the 06 balance of the dividend raffle fund; 07 (2) the second name drawn receives an amount equal to five percent of 08 the balance of the dividend raffle fund; 09 (3) the third name drawn receives an amount equal to three percent of 10 the balance of the dividend raffle fund; and 11 (4) the fourth name drawn receives an amount equal to two percent of 12 the balance of the dividend raffle fund. 13 (e) Nothing in this section creates a dedicated fund. 14 * Sec. 4. This Act takes effect January 1, 2018.