HCS 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 HOUSE CS FOR 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. 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 funds generated by 10 the permanent fund dividend raffle created in this Act be used to supplement and not to 11 supplant state aid provided by the public school funding formula under AS 14.17.410. 12 * Sec. 2. AS 11.66.280(3) is amended to read: 13 (3) "gambling" means that a person stakes or risks something of value
01 upon the outcome of a contest of chance or a future contingent event not under the 02 person's control or influence, upon an agreement or understanding that that person or 03 someone else will receive something of value in the event of a certain outcome; 04 "gambling" does not include 05 (A) bona fide business transactions valid under the law of 06 contracts for the purchase or sale at a future date of securities or commodities 07 and agreements to compensate for loss caused by the happening of chance, 08 including contracts of indemnity or guaranty and life, health, or accident 09 insurance; 10 (B) playing an amusement device that 11 (i) confers only an immediate right of replay not 12 exchangeable for something of value other than the privilege of 13 immediate replay and does not contain a method or device by which the 14 privilege of immediate replay may be cancelled or revoked; 15 (ii) confers only tickets, credits, allowances, tokens, or 16 anything of value that can be redeemed for toys, candy, or electronic 17 novelties offered at the same facility where the amusement device is 18 located; or 19 (iii) allows a player to manipulate a claw machine or 20 similar device within an enclosure and enables a person to receive 21 merchandise directly from the machine; [OR] 22 (C) an activity authorized by the Department of Revenue under 23 AS 05.15; or 24 (D) the permanent fund dividend raffle authorized under 25 AS 43.23.064; 26 * Sec. 3. AS 43.23.055 is amended to read: 27 Sec. 43.23.055. Duties of the department. The department shall 28 (1) annually pay permanent fund dividends from the dividend fund; 29 (2) subject to AS 43.23.011 and [PARAGRAPH] (8) of this section, 30 adopt regulations under AS 44.62 (Administrative Procedure Act) that establish 31 procedures and time limits for claiming a permanent fund dividend; the department
01 shall determine the number of eligible applicants by October 1 of the year for which 02 the 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; and 10 (11) adopt regulations under AS 44.62 (Administrative Procedure 11 Act) so that contributions under AS 43.23.062 are given a priority over donations 12 under AS 43.23.064 if the total amount of contributions and donations elected by 13 an applicant exceeds the amount of the permanent fund dividend that the 14 applicant is entitled to receive. 15 * Sec. 4. AS 43.23 is amended by adding new sections to read: 16 Sec. 43.23.063. Education endowment fund. (a) The education endowment 17 fund is established as a separate account in the general fund. The fund consists of 18 appropriations from 19 (1) donations to the fund under AS 43.23.064(b); 20 (2) transfers to the fund under AS 43.23.064(c); 21 (3) interest earned on the fund; and 22 (4) any other money appropriated to the fund. 23 (b) The commissioner is the fiduciary of the fund. In managing the fund, the 24 commissioner shall 25 (1) have the same powers and duties as provided in AS 37.10.071; and 26 (2) invest the fund in a manner likely to achieve at least a four percent 27 nominal return over a five-year period to meet the objectives of the fund. 28 (c) In managing the fund, the commissioner shall 29 (1) consider the status of the fund's capital and the income generated 30 on both current and probable future bases; 31 (2) determine the appropriate investment objectives;
01 (3) establish investment policies to achieve the objectives; and 02 (4) act only in regard to the best financial interests of the fund. 03 (d) On July 1 of each year, the commissioner shall 04 (1) determine the fund balance for the previously closed fiscal year, 05 including the earnings of the fund; and 06 (2) when the average market value for that fiscal year exceeds 07 $1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 08 balance of the fund for the last five fiscal years, including the fiscal year just ended, 09 and including any unrealized gains and losses, to the Department of Education and 10 Early Development for distribution as supplemental grants to school districts 11 according to the average daily membership for each district adjusted under 12 AS 14.17.410(b)(1)(A) - (D), subject to appropriation. 13 (e) Money appropriated to the fund does not lapse. 14 Sec. 43.23.064. Dividend raffle fund; dividend donations to the dividend 15 raffle fund; drawing. (a) The dividend raffle fund is established as an account in the 16 general fund. The commissioner shall manage the fund. Interest and other income 17 received on money in the fund shall be separately accounted for and shall be 18 appropriated to the fund. The fund consists of donations appropriated to the fund 19 under (c) of this section. The commissioner shall use the dividend raffle fund, without 20 further appropriation, to pay for prizes as set out in (d) of this section and may use up 21 to two percent of the balance of the fund but not more than $500,000 from the fund 22 each fiscal year to pay the cost of administering the fund and for promotion and 23 advertisement of the fund. When the balance of the dividend raffle fund exceeds 24 $300,000,000 at the end of a fiscal year, the commissioner shall transfer the amount 25 above $300,000,000 to the education endowment fund established in AS 43.23.063. 26 Money donated to the fund does not lapse. 27 (b) Notwithstanding AS 43.23.069, the department shall provide on the Alaska 28 permanent fund dividend application an option for an applicant who is 18 years of age 29 or older to direct that all or a portion of the applicant's dividend payment be donated 30 for educational purposes and to enter the permanent fund dividend raffle as provided 31 in (c) of this section. A donation under this section may be $100 or more, in
01 increments of $100, up to the total amount of the permanent fund dividend that the 02 applicant is entitled to receive. 03 (c) Of the donations received in a year under (b) of this section, the legislature 04 shall appropriate 25 percent to the education endowment fund established in 05 AS 43.23.063 and shall appropriate 25 percent to the dividend raffle fund. The 06 legislature shall appropriate the remaining 50 percent of the donations received under 07 (b) of this section to the Department of Education and Early Development for 08 distribution as supplemental grants to school districts according to the average daily 09 membership for each district adjusted under AS 14.17.410(b)(1)(A) - (D). 10 (d) At the beginning of each year, the commissioner shall conduct a public 11 drawing to award prizes from the dividend raffle fund. Each $100 donation as 12 provided in (b) of this section entitles a person to one entry into the raffle. The prizes 13 for the raffle shall be as follows: 14 (1) the first name drawn receives an amount equal to eight percent of 15 the balance of the dividend raffle fund; 16 (2) the second name drawn receives an amount equal to four percent of 17 the balance of the dividend raffle fund; 18 (3) the third name drawn receives an amount equal to two percent of 19 the balance of the dividend raffle fund; and 20 (4) the fourth name drawn receives an amount equal to one percent of 21 the balance of the dividend raffle fund. 22 (e) Nothing in this section creates a dedicated fund. 23 * Sec. 5. This Act takes effect January 1, 2019.