HB 4008: "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. 4008 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. The amount available for appropriation 06 may not exceed the balance in the earnings reserve account described in 07 AS 37.13.145. In this subsection, "average market value of the fund" includes the 08 balance of the earnings reserve account established under AS 37.13.145, but does not 09 include that portion of the principal attributed to the settlement of State v. Amerada 10 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 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 50 percent of the amount available for appropriation under 15 AS 37.13.140(b) to the general fund and 50 percent of the amount available for 16 appropriation under AS 37.13.140(b) to the dividend fund established under 17 AS 43.23.045. The legislature may reduce the amount appropriated to the 18 dividend fund and increase the amount appropriated to the general fund under 19 this subsection 20 (1) by the amount necessary to respond to a statewide disaster if 21 the governor declares a condition of disaster emergency under AS 26.23.020; or 22 (2) by, if (A) of this paragraph is less than (B) of this paragraph, 23 the difference between 24 (A) 50 percent of the amount available for appropriation 25 under AS 37.13.140(b); and 26 (B) the average annual adjusted appropriations from the 27 general fund for the first five of the preceding six fiscal years, including 28 the fiscal year just ended, adjusted for the cumulative change in inflation 29 and the cumulative change in the estimated population of the state each 30 year; in this subparagraph, 31 (i) "annual adjusted appropriations from the
01 general fund" is equal to the operating, capital, and mental health 02 appropriations from the unrestricted general fund each year less 03 amounts collected as state revenue, grants, loans, money received 04 from the federal government, appropriations for permanent fund 05 dividends, and appropriations intended to offset the effect of 06 inflation on the principal of the permanent fund that year; 07 (ii) "state revenue" does not include income of the 08 permanent fund [, 50 PERCENT OF THE INCOME AVAILABLE 09 FOR DISTRIBUTION UNDER AS 37.13.140]. 10 * Sec. 3. AS 37.13.145(c) is amended to read: 11 (c) After the appropriations [TRANSFER] under (b) [AND AN 12 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 13 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 14 principal of the fund an amount sufficient to offset the effect of inflation on the 15 principal of the fund during that fiscal year. However, none of the amount transferred 16 shall be applied to increase the value of that portion of the principal attributed to the 17 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 18 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 19 transfer to the principal under this subsection by 20 (1) computing the average of the monthly United States Consumer 21 Price Index for all urban consumers for each of the two previous calendar years; 22 (2) computing the percentage change between the first and second 23 calendar year average; and 24 (3) applying that rate to the value of the principal of the fund on the 25 last day of the fiscal year just ended, including that portion of the principal attributed 26 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 27 First Judicial District). 28 * Sec. 4. AS 37.13.145(d) is amended to read: 29 (d) Notwithstanding (b) of this section, income earned on money awarded in 30 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 31 Court, First Judicial District), including settlement, summary judgment, or adjustment
01 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 02 on the money, or on the earnings of the money shall be treated in the same manner as 03 other income of the Alaska permanent fund, except that it may [IS] not be included in 04 the calculation of the amount available for appropriation under AS 37.13.140(b) 05 or [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS] to the 06 principal under (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF 07 THIS SECTION,] and shall be annually deposited into the Alaska capital income fund 08 (AS 37.05.565). 09 * Sec. 5. AS 37.13.300(c) is amended to read: 10 (c) Net income from the mental health trust fund may not be included in the 11 computation of net income of the fund, the [OR] market value of the fund, or the 12 amount available for [DISTRIBUTION OR] appropriation under AS 37.13.140(b) 13 [AS 37.13.140]. 14 * Sec. 6. AS 37.14.031(c) is amended to read: 15 (c) The net income of the fund shall be determined by the Alaska Permanent 16 Fund Corporation and shall be computed annually as of the last day of the fiscal 17 year in accordance with generally accepted accounting principles, excluding any 18 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 19 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 20 UNDER AS 37.13.140]. 21 * Sec. 7. AS 43.23.025(a) is amended to read: 22 (a) By October 1 of each year, the commissioner shall determine the value of 23 each permanent fund dividend for that year by 24 (1) determining the total amount available for dividend payments, 25 which equals 26 (A) the amount appropriated [OF INCOME OF THE 27 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 28 under AS 37.13.145(b) during the current year; 29 (B) plus the unexpended and unobligated balances of prior 30 fiscal year appropriations that lapse into the dividend fund under 31 AS 43.23.045(d);
01 (C) less the amount necessary to pay prior year dividends from 02 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 03 43.23.055(3) and (7); 04 (D) less the amount necessary to pay dividends from the 05 dividend fund due to eligible applicants who, as determined by the department, 06 filed for a previous year's dividend by the filing deadline but who were not 07 included in a previous year's dividend computation; 08 (E) less appropriations from the dividend fund during the 09 current year, including amounts to pay costs of administering the dividend 10 program and the hold harmless provisions of AS 43.23.240; 11 (2) determining the number of individuals eligible to receive a 12 dividend payment for the current year and the number of estates and successors 13 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 14 (3) dividing the amount determined under (1) of this subsection by the 15 amount determined under (2) of this subsection. 16 * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 17 * Sec. 9. This Act takes effect July 1, 2022.