HB 4003: "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; and providing for an effective date."
00 HOUSE BILL NO. 4003 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 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 is amended to read: 06 Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 07 earnings reserve account established under AS 37.13.145. Net income of the fund shall 08 be computed annually as of the last day of the fiscal year in accordance with generally 09 accepted accounting principles, excluding any unrealized gains or losses. [INCOME 10 AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 11 INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 12 THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 13 THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 14 THE EARNINGS 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 five 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 37.13.145(b) is amended to read: 12 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 13 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 14 account to the 15 (1) dividend fund established under AS 43.23.045, 25  percent of 16 the amount [INCOME] available for appropriation [DISTRIBUTION] under 17 AS 37.13.140(b); and 18 (2) general fund, 75 percent of the amount available for 19 appropriation under AS 37.13.140(b) [AS 37.13.140]. 20 * Sec. 3. AS 37.13.145(c) is amended to read: 21 (c) After the appropriations [TRANSFER] under (b) [AND AN 22 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 23 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 24 principal of the fund an amount sufficient to offset the effect of inflation on the 25 principal of the fund during that fiscal year. However, none of the amount transferred 26 shall be applied to increase the value of that portion of the principal attributed to the 27 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 28 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 29 transfer to the principal under this subsection by 30 (1) computing the average of the monthly United States Consumer 31 Price Index for all urban consumers for each of the two previous calendar years;
01 (2) computing the percentage change between the first and second 02 calendar year average; and 03 (3) applying that rate to the value of the principal of the fund on the 04 last day of the fiscal year just ended, including that portion of the principal attributed 05 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 06 First Judicial District). 07 * Sec. 4. AS 37.13.145(d) is amended to read: 08 (d) Notwithstanding (b) of this section, income earned on money awarded in 09 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 10 Court, First Judicial District), including settlement, summary judgment, or adjustment 11 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 12 on the money, or on the earnings of the money shall be treated in the same manner as 13 other income of the Alaska permanent fund, except that it may [IS] not be included in 14 the calculation of the amount available for appropriation under AS 37.13.140(b) 15 or [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS] to the 16 principal under (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF 17 THIS SECTION,] and shall be annually deposited into the Alaska capital income fund 18 (AS 37.05.565). 19 * Sec. 5. AS 37.13.300(c) is amended to read: 20 (c) Net income from the mental health trust fund may not be included in the 21 computation of net income of the fund, the [OR] market value of the fund, or the 22 amount available for [DISTRIBUTION OR] appropriation under AS 37.13.140(b) 23 [AS 37.13.140]. 24 * Sec. 6. AS 37.14.031(c) is amended to read: 25 (c) The net income of the fund shall be determined by the Alaska Permanent 26 Fund Corporation and shall be computed annually as of the last day of the fiscal 27 year in accordance with generally accepted accounting principles, excluding any 28 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 29 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 30 UNDER AS 37.13.140]. 31 * Sec. 7. AS 43.23.025(a) is amended to read:
01 (a) By October 1 of each year, the commissioner shall determine the value of 02 each permanent fund dividend for that year by 03 (1) determining the total amount available for dividend payments, 04 which equals 05 (A) the amount appropriated [OF INCOME OF THE 06 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 07 under AS 37.13.145(b) during the current year; 08 (B) plus the unexpended and unobligated balances of prior 09 fiscal year appropriations that lapse into the dividend fund under 10 AS 43.23.045(d); 11 (C) less the amount necessary to pay prior year dividends from 12 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 13 43.23.055(3) and (7); 14 (D) less the amount necessary to pay dividends from the 15 dividend fund due to eligible applicants who, as determined by the department, 16 filed for a previous year's dividend by the filing deadline but who were not 17 included in a previous year's dividend computation; 18 (E) less appropriations from the dividend fund during the 19 current year, including amounts to pay costs of administering the dividend 20 program and the hold harmless provisions of AS 43.23.240; 21 (2) determining the number of individuals eligible to receive a 22 dividend payment for the current year and the number of estates and successors 23 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 24 (3) dividing the amount determined under (1) of this subsection by the 25 amount determined under (2) of this subsection. 26 * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 27 * Sec. 9. This Act takes effect July 1, 2022.