HB 73: "An Act relating to use of income of the Alaska permanent fund; relating to the amount of the permanent fund dividend; relating to the duties of the commissioner of revenue; relating to an advisory vote on the permanent fund; providing for an effective date by repealing the effective date of sec. 8, ch. 16, SLA 2018; and providing for an effective date."
00 HOUSE BILL NO. 73 01 "An Act relating to use of income of the Alaska permanent fund; relating to the amount 02 of the permanent fund dividend; relating to the duties of the commissioner of revenue; 03 relating to an advisory vote on the permanent fund; providing for an effective date by 04 repealing the effective date of sec. 8, ch. 16, SLA 2018; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 37.13.140 is amended to read: 08 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 09 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 10 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 11 of the fiscal year in accordance with generally accepted accounting principles, 12 excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 13 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND
01 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 02 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 03 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 04 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 05 (b) The corporation shall determine the amount available for appropriation 06 each year. The amount available for appropriation is five [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). The amount available for appropriation may not exceed the 14 balance in the earnings reserve account described in AS 37.13.145. 15 * Sec. 2. AS 37.13.145(b) is amended to read: 16 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 17 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 18 account to the 19 (1) dividend fund established under AS 43.23.045, 50 percent of the 20 amount [INCOME] available for appropriation [DISTRIBUTION] under 21 AS 37.13.140(b); and 22 (2) general fund, 50 percent of the amount available for 23 appropriation under AS 37.13.140(b) [AS 37.13.140]. 24 * Sec. 3. AS 37.13.145(c) is amended to read: 25 (c) After the appropriations [TRANSFER] under (b) [AND AN 26 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 27 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 28 principal of the fund an amount sufficient to offset the effect of inflation on the 29 principal of the fund during that fiscal year. However, none of the amount transferred 30 shall be applied to increase the value of that portion of the principal attributed to the 31 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First
01 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 02 transfer to the principal under this subsection by 03 (1) computing the average of the monthly United States Consumer 04 Price Index for all urban consumers for each of the two previous calendar years; 05 (2) computing the percentage change between the first and second 06 calendar year average; and 07 (3) applying that rate to the value of the principal of the fund on the 08 last day of the fiscal year just ended, including that portion of the principal attributed 09 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 10 First Judicial District). 11 * Sec. 4. AS 37.13.145(d) is amended to read: 12 (d) Notwithstanding (b) of this section, income earned on money awarded in 13 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 14 Court, First Judicial District), including settlement, summary judgment, or adjustment 15 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 16 on the money, or on the earnings of the money shall be treated in the same manner as 17 other income of the Alaska permanent fund, except that it is not available for 18 appropriations [DISTRIBUTION] to the dividend fund under AS 37.13.140(b) or [, 19 FOR TRANSFERS] to the principal under (c) of this section [, OR FOR AN 20 APPROPRIATION UNDER (e) OF THIS SECTION,] and shall be annually 21 deposited into the Alaska capital income fund (AS 37.05.565). 22 * Sec. 5. AS 37.13.300(c) is amended to read: 23 (c) Net income from the mental health trust fund may not be included in the 24 computation of the amount [NET INCOME OR MARKET VALUE] available for 25 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 26 * Sec. 6. AS 37.14.031(c) is amended to read: 27 (c) The net income of the fund shall be determined by the Alaska Permanent 28 Fund Corporation and shall be computed annually as of the last day of the fiscal 29 year in accordance with generally accepted accounting principles, excluding any 30 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 31 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND
01 UNDER AS 37.13.140]. 02 * Sec. 7. AS 43.23.025(a) is amended to read: 03 (a) By October 1 of each year, the commissioner shall determine the value of 04 each permanent fund dividend for that year by 05 (1) determining the total amount available for dividend payments, 06 which equals 07 (A) the amount appropriated [OF INCOME OF THE 08 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 09 under AS 37.13.145(b) during the current year; 10 (B) plus the unexpended and unobligated balances of prior 11 fiscal year appropriations that lapse into the dividend fund under 12 AS 43.23.045(d); 13 (C) less the amount necessary to pay prior year dividends from 14 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 15 43.23.055(3) and (7); 16 (D) less the amount necessary to pay dividends from the 17 dividend fund due to eligible applicants who, as determined by the department, 18 filed for a previous year's dividend by the filing deadline but who were not 19 included in a previous year's dividend computation; 20 (E) less appropriations from the dividend fund during the 21 current year, including amounts to pay costs of administering the dividend 22 program and the hold harmless provisions of AS 43.23.240; 23 (2) determining the number of individuals eligible to receive a 24 dividend payment for the current year and the number of estates and successors 25 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 26 (3) dividing the amount determined under (1) of this subsection by the 27 amount determined under (2) of this subsection. 28 * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 29 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 ADVISORY VOTE. The lieutenant governor shall place before the qualified voters of
01 the state at a special statewide election to be held on a date not less than 90 days nor more 02 than 120 days after adjournment of the First Regular Session of the Thirty-Second Alaska 03 State Legislature, a question advisory to the legislature regarding the permanent fund. The 04 question shall appear on the ballot in the following form: 05 Q U E S T I O N 06 The legislature has passed a law providing that each year the legislature 07 may appropriate five percent of the market value of the permanent fund, and 08 that 50 percent of that amount of money may be used to provide dividends to 09 state residents and 50 percent of that amount of money may be used to provide 10 government services. Should this continue to be the state's law regarding 11 spending from the permanent fund? 12 Yes [ ] No [ ] 13 * Sec. 10. Section 2, ch. 16, SLA 2018, is repealed. 14 * Sec. 11. Section 8, ch. 16, SLA 2018, is repealed. 15 * Sec. 12. Section 9 of this Act takes effect immediately under AS 01.10.070(c). 16 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 2021.