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CSSB 103(FIN): "An Act relating to deposits into the dividend fund and income of and appropriations from the earnings reserve account; and providing for an effective date."

00                       CS FOR SENATE BILL NO. 103(FIN)                                                                   
01 "An Act relating to deposits into the dividend fund and income of and appropriations                                    
02 from the earnings reserve account; 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 to read:                                                                      
05 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES                                                          
06 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER                                                                
07 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day                                     
08 of the fiscal year in accordance with generally accepted accounting principles,                                         
09 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 (b)  The corporation shall determine the amount available for appropriation                                             
02 each year. The amount available for appropriation is 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). The amount available for appropriation may not exceed the                                       
10       balance in the earnings reserve account described in AS 37.13.145.                                            
11    * Sec. 2. AS 37.13.140(b), as amended by sec. 2, ch. 16, SLA 2018, is amended to read:                           
12 (b)  The corporation shall determine the amount available for appropriation                                             
13 each year. The amount available for appropriation is five percent of the average                                        
14 market value of the fund for the first five of the preceding six fiscal years, including                                
15 the fiscal year just ended, computed annually for each fiscal year in accordance with                                   
16 generally accepted accounting principles. In this subsection, "average market value of                                  
17 the fund" includes the balance of the earnings reserve account established under                                        
18 AS 37.13.145, but does not include that portion of the principal attributed to the                                      
19 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First                                     
20 Judicial District). The amount available for appropriation may not exceed the                                       
21       balance in the earnings reserve account described in AS 37.13.145.                                            
22    * Sec. 3. AS 37.13.145(b) is amended to read:                                                                      
23 (b)  Each [AT THE END OF EACH] fiscal year, the legislature may                                                 
24 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve                                                  
25 account to the general fund the amount available for appropriation under                                            
26 AS 37.13.140(b). The legislature may appropriate 50 percent of the amount                                           
27 available for appropriation under AS 37.13.140(b) from the general fund to the                                      
28 dividend fund established under AS 43.23.045 [, 50 PERCENT OF THE INCOME                                                
29       AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140].                                                                   
30    * Sec. 4. AS 37.13.145(c) is amended to read:                                                                      
31 (c)  After the appropriation to the general fund [TRANSFER] under (b)                                               
01 [AND AN APPROPRIATION UNDER (e)] of this section, the legislature may                                               
02 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve                                                  
03 account to the principal of the fund an amount sufficient to offset the effect of inflation                             
04 on the principal of the fund during that fiscal year. However, none of the amount                                       
05 transferred shall be applied to increase the value of that portion of the principal                                     
06 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ.                                          
07 (Superior Court, First Judicial District) on July 1, 2004. The corporation shall                                        
08       calculate the amount to transfer to the principal under this subsection by                                        
09 (1)  computing the average of the monthly United States Consumer                                                        
10       Price Index for all urban consumers for each of the two previous calendar years;                                  
11 (2)  computing the percentage change between the first and second                                                       
12       calendar year average; and                                                                                        
13 (3)  applying that rate to the value of the principal of the fund on the                                                
14 last day of the fiscal year just ended, including that portion of the principal attributed                              
15 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court,                                    
16       First Judicial District).                                                                                         
17    * Sec. 5. AS 37.13.145(d) is amended to read:                                                                      
18 (d)  Notwithstanding (b) of this section, income earned on money awarded in                                             
19 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior                                     
20 Court, First Judicial District), including settlement, summary judgment, or adjustment                                  
21 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned                              
22 on the money, or on the earnings of the money shall be treated in the same manner as                                    
23 other income of the Alaska permanent fund, except that it is not available for                                          
24 appropriation under AS 37.13.140(b) or [DISTRIBUTION TO THE DIVIDEND                                                
25 FUND, FOR TRANSFERS] to the principal under (c) of this section [, OR FOR AN                                            
26 APPROPRIATION UNDER (e) OF THIS SECTION,] and shall be annually                                                         
27       deposited into the Alaska capital income fund (AS 37.05.565).                                                     
28    * Sec. 6. AS 37.13.145(e) is amended to read:                                                                      
29 (e)  The legislature may not appropriate from the earnings reserve account [TO                                          
30 THE GENERAL FUND] a total amount that exceeds the amount available for                                                  
31       appropriation under AS 37.13.140(b) in a fiscal year.                                                             
01    * Sec. 7. AS 43.23.025(a) is amended to read:                                                                      
02            (a)  By October 1 of each year, the commissioner shall determine the value of                                
03       each permanent fund dividend for that year by                                                                     
04                 (1)  determining the total amount available for dividend payments,                                      
05       which equals                                                                                                      
06                      (A)  the amount appropriated [OF INCOME OF THE                                                 
07            ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund                                                      
08            under AS 37.13.145(b) during the current year;                                                               
09                      (B)  plus the unexpended and unobligated balances of prior                                         
10 fiscal year appropriations that lapse into the dividend fund under                                                      
11            AS 43.23.045(d);                                                                                             
12 (C)  less the amount necessary to pay prior year dividends from                                                         
13 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and                                             
14            43.23.055(3) and (7);                                                                                        
15 (D)  less the amount necessary to pay dividends from the                                                                
16 dividend fund due to eligible applicants who, as determined by the department,                                          
17 filed for a previous year's dividend by the filing deadline but who were not                                            
18            included in a previous year's dividend computation;                                                          
19 (E)  less appropriations from the dividend fund during the                                                              
20 current year, including amounts to pay costs of administering the dividend                                              
21            program and the hold harmless provisions of AS 43.23.240;                                                    
22 (2)  determining the number of individuals eligible to receive a                                                        
23 dividend payment for the current year and the number of estates and successors                                          
24 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and                                  
25 (3)  dividing the amount determined under (1) of this subsection by the                                                 
26       amount determined under (2) of this subsection.                                                                   
27    * Sec. 8. AS 37.13.145(f) is repealed.                                                                             
28    * Sec. 9. Section 2 of this Act takes effect on the effective date of sec. 2, ch. 16, SLA 2018.                    
29    * Sec. 10. Except as provided in sec. 9 of this Act, this Act takes effect July 1, 2020.