HB 306: "An Act relating to deposits into the dividend fund and income of and appropriations from the earnings reserve account; establishing a permanent fund dividend task force; and providing for an effective date."
00 HOUSE BILL NO. 306 01 "An Act relating to deposits into the dividend fund and income of and appropriations 02 from the earnings reserve account; establishing a permanent fund dividend task force; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 37.13.140(a) is amended to read: 06 (a) Net income of the fund includes income of the earnings reserve account 07 established under AS 37.13.145. Net income of the fund shall be computed annually 08 as of the last day of the fiscal year in accordance with generally accepted accounting 09 principles, excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 10 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 11 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 12 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 13 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 14 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.]
01 * Sec. 2. AS 37.13.145(b) is amended to read: 02 (b) At the end of each fiscal year, the corporation shall transfer from the 03 earnings reserve account to the 04 (1) dividend fund established under AS 43.23.045, 20  percent of 05 the amount [INCOME] available for appropriation [DISTRIBUTION] under 06 AS 37.13.140(b); and 07 (2) general fund, 80 percent of the amount available for 08 appropriation under AS 37.13.140(b) [AS 37.13.140]. 09 * Sec. 3. AS 37.13.145(c) is amended to read: 10 (c) After the transfer under (b) [AND AN APPROPRIATION UNDER (e)] of 11 this section, the corporation shall transfer from the earnings reserve account to the 12 principal of the fund an amount sufficient to offset the effect of inflation on the 13 principal of the fund during that fiscal year. However, none of the amount transferred 14 shall be applied to increase the value of that portion of the principal attributed to the 15 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 16 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 17 transfer to the principal under this subsection by 18 (1) computing the average of the monthly United States Consumer 19 Price Index for all urban consumers for each of the two previous calendar years; 20 (2) computing the percentage change between the first and second 21 calendar year average; and 22 (3) applying that rate to the value of the principal of the fund on the 23 last day of the fiscal year just ended, including that portion of the principal attributed 24 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 25 First Judicial District). 26 * Sec. 4. AS 37.13.145(d) is amended to read: 27 (d) Notwithstanding (b) of this section, income earned on money awarded in 28 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 29 Court, First Judicial District), including settlement, summary judgment, or adjustment 30 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 31 on the money, or on the earnings of the money shall be treated in the same manner as
01 other income of the Alaska permanent fund, except that it is not available for 02 appropriation under the calculation under AS 37.13.140(b) or [DISTRIBUTION 03 TO THE DIVIDEND FUND,] for transfers to the principal under (c) of this section [, 04 OR FOR AN APPROPRIATION UNDER (e) OF THIS SECTION,] and shall be 05 annually deposited into the Alaska capital income fund (AS 37.05.565). 06 * Sec. 5. AS 37.13.145(e) is amended 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 09 appropriation under AS 37.13.140(b) in a fiscal year. This subsection does not apply 10 to an appropriation from the earnings reserve account to the principal of the 11 fund. 12 * Sec. 6. AS 37.13.145(f) is repealed. 13 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 PERMANENT FUND DIVIDEND TASK FORCE. (a) The permanent fund dividend 16 task force is established, effective February 1, 2026, in the legislative branch of state 17 government. The task force consists of seven voting members appointed as follows: 18 (1) the speaker of the house of representatives shall appoint three members 19 from the house of representatives; 20 (2) the president of the senate shall appoint three members from the senate; 21 (3) the governor shall appoint one member. 22 (b) The members of the task force shall, by a majority vote, select a member who is a 23 legislator to chair the task force. The staff of the members who are legislators shall serve as 24 staff to the task force. 25 (c) The task force shall prepare a report. The report must include 26 (1) a review and evaluation of the permanent fund and the permanent fund 27 dividend, including 28 (A) the economic, social, and fiscal impacts of the fund and the 29 dividend; 30 (B) the effectiveness of current methods employed in statute to protect 31 the permanent fund; and
01 (C) the sustainability of the permanent fund; and 02 (2) recommendations for a future sustainable permanent fund dividend 03 calculation. 04 (d) The task force shall submit the report described in (c) of this section to the senate 05 secretary and chief clerk of the house of representatives on or before September 30, 2026, and 06 shall notify the legislature that the report is available. 07 (e) The permanent fund dividend task force terminates on January 31, 2027. 08 * Sec. 8. This Act takes effect July 1, 2020.