CSSB 53(FIN): "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 CS FOR SENATE BILL NO. 53(FIN) 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. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature to 08 (1) implement the recommendations of the 2021 Comprehensive Fiscal Plan 09 Working Group; and 10 (2) allow for adequate time to debate, analyze, and implement the revenue 11 measures and cost reductions required for the long-term financial stability of the state. 12 * Sec. 2. AS 37.13.140 is amended to read: 13 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 14 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER
01 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 02 of the fiscal year in accordance with generally accepted accounting principles, 03 excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 04 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 05 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 06 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 07 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 08 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 09 (b) The corporation shall determine the amount available for appropriation 10 each year. The amount available for appropriation is five percent of the average 11 market value of the fund for the first five of the preceding six fiscal years, including 12 the fiscal year just ended, computed annually for each fiscal year in accordance with 13 generally accepted accounting principles. In this subsection, "average market value of 14 the fund" includes the balance of the earnings reserve account established under 15 AS 37.13.145, but does not include that portion of the principal attributed to the 16 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 17 Judicial District). The amount available for appropriation may not exceed the 18 balance in the earnings reserve account described in AS 37.13.145. 19 * Sec. 3. AS 37.13.145(b) is amended to read: 20 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 21 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 22 account to the dividend fund established under AS 43.23.045, the amount necessary 23 to distribute the following amounts for permanent fund dividends to each eligible 24 individual for each of the following fiscal years: 25 (1) $1,100 in fiscal year 2022; 26 (2) $1,100 in fiscal year 2023; 27 (3) $1,200 in fiscal year 2024; 28 (4) $1,300 in fiscal year 2025; and 29 (5) $1,300 in each fiscal year after fiscal year 2025, adjusted for 30 inflation calculated by 31 (A) computing the average of the monthly United States
01 Consumer Price Index for all urban consumers for each of the two 02 previous calendar years; 03 (B) computing the percentage change between the first and 04 second calendar year average; and 05 (C) applying that rate to the value of the dividend paid for 06 the fiscal year just ended [50 PERCENT OF THE INCOME AVAILABLE 07 FOR DISTRIBUTION UNDER AS 37.13.140]. 08 * Sec. 4. AS 37.13.145(b), as amended by sec. 3 of this Act, is amended to read: 09 (b) Each fiscal year, the legislature may appropriate from the earnings reserve 10 account to the 11 (1) dividend fund established under AS 43.23.045, 50 percent of the 12 amount available for appropriation under AS 37.13.140(b); and 13 (2) general fund, 50 percent of the amount available for 14 appropriation under AS 37.13.140(b) [THE AMOUNT NECESSARY TO 15 DISTRIBUTE THE FOLLOWING AMOUNTS FOR PERMANENT FUND 16 DIVIDENDS TO EACH ELIGIBLE INDIVIDUAL FOR EACH OF THE 17 FOLLOWING FISCAL YEARS: 18 (1) $1,100 IN FISCAL YEAR 2022; 19 (2) $1,100 IN FISCAL YEAR 2023; 20 (3) $1,200 IN FISCAL YEAR 2024; 21 (4) $1,300 IN FISCAL YEAR 2025; AND 22 (5) $1,300 IN EACH FISCAL YEAR AFTER FISCAL YEAR 2025, 23 ADJUSTED FOR INFLATION CALCULATED BY 24 (A) COMPUTING THE AVERAGE OF THE MONTHLY 25 UNITED STATES CONSUMER PRICE INDEX FOR ALL URBAN 26 CONSUMERS FOR EACH OF THE TWO PREVIOUS CALENDAR 27 YEARS; 28 (B) COMPUTING THE PERCENTAGE CHANGE 29 BETWEEN THE FIRST AND SECOND CALENDAR YEAR AVERAGE; 30 AND 31 (C) APPLYING THAT RATE TO THE VALUE OF THE
01 DIVIDEND PAID FOR THE FISCAL YEAR JUST ENDED]. 02 * Sec. 5. AS 37.13.145(c) is amended to read: 03 (c) After the appropriations [TRANSFER] under (b) and an appropriation 04 under (e) of this section, the legislature may appropriate [CORPORATION SHALL 05 TRANSFER] from the earnings reserve account to the principal of the fund an amount 06 sufficient to offset the effect of inflation on the principal of the fund during that fiscal 07 year. However, none of the amount transferred shall be applied to increase the value of 08 that portion of the principal attributed to the settlement of State v. Amerada Hess, et 09 al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The 10 corporation shall calculate the amount to transfer to the principal under this subsection 11 by 12 (1) computing the average of the monthly United States Consumer 13 Price Index for all urban consumers for each of the two previous calendar years; 14 (2) computing the percentage change between the first and second 15 calendar year average; and 16 (3) applying that rate to the value of the principal of the fund on the 17 last day of the fiscal year just ended, including that portion of the principal attributed 18 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 19 First Judicial District). 20 * Sec. 6. AS 37.13.145(c), as amended by sec. 5 of this Act, is amended to read: 21 (c) After the appropriations under (b) [AND AN APPROPRIATION UNDER 22 (e)] of this section, the legislature may appropriate from the earnings reserve account 23 to the principal of the fund an amount sufficient to offset the effect of inflation on the 24 principal of the fund during that fiscal year. However, none of the amount transferred 25 shall be applied to increase the value of that portion of the principal attributed to the 26 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 27 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 28 transfer to the principal under this subsection by 29 (1) computing the average of the monthly United States Consumer 30 Price Index for all urban consumers for each of the two previous calendar years; 31 (2) computing the percentage change between the first and second
01 calendar year average; and 02 (3) applying that rate to the value of the principal of the fund on the 03 last day of the fiscal year just ended, including that portion of the principal attributed 04 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 05 First Judicial District). 06 * Sec. 7. AS 37.13.145(d) is amended to read: 07 (d) Notwithstanding (b) of this section, income earned on money awarded in 08 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 09 Court, First Judicial District), including settlement, summary judgment, or adjustment 10 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 11 on the money, or on the earnings of the money shall be treated in the same manner as 12 other income of the Alaska permanent fund, except that it is not available for 13 appropriation [DISTRIBUTION] to the dividend fund under AS 37.13.140(b), for 14 an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 15 appropriation under (e) of this section, and shall be annually deposited into the Alaska 16 capital income fund (AS 37.05.565). 17 * Sec. 8. AS 37.13.145(d), as amended by sec. 7 of this Act, 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 to the dividend fund under AS 37.13.140(b) or [, FOR AN 25 APPROPRIATION] 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. 9. AS 37.13.145(f) is amended to read: 29 (f) An appropriation under (b) of this section may not exceed 50 percent 30 of the amount available for appropriation under AS 37.13.140(b). The combined 31 total of the appropriations [TRANSFER] under (b) [OF THIS SECTION] and [AN
01 APPROPRIATION UNDER] (e) of this section may not exceed the amount available 02 for appropriation under AS 37.13.140(b). 03 * Sec. 10. AS 37.13.300(c) is amended to read: 04 (c) Net income from the mental health trust fund may not be included in the 05 computation of the amount [NET INCOME OR MARKET VALUE] available for 06 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 07 * Sec. 11. AS 37.14.031(c) is amended to read: 08 (c) The net income of the fund shall be determined by the Alaska Permanent 09 Fund Corporation and shall be computed annually as of the last day of the fiscal 10 year in accordance with generally accepted accounting principles, excluding any 11 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 12 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 13 UNDER AS 37.13.140]. 14 * Sec. 12. AS 43.23.025(a) is amended to read: 15 (a) By October 1 of each year, the commissioner shall determine the value of 16 each permanent fund dividend for that year by 17 (1) determining the total amount available for dividend payments, 18 which equals 19 (A) the amount appropriated [OF INCOME OF THE 20 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 21 under AS 37.13.145(b) during the current year; 22 (B) plus the unexpended and unobligated balances of prior 23 fiscal year appropriations that lapse into the dividend fund under 24 AS 43.23.045(d); 25 (C) less the amount necessary to pay prior year dividends from 26 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 27 43.23.055(3) and (7); 28 (D) less the amount necessary to pay dividends from the 29 dividend fund due to eligible applicants who, as determined by the department, 30 filed for a previous year's dividend by the filing deadline but who were not 31 included in a previous year's dividend computation;
01 (E) less appropriations from the dividend fund during the 02 current year, including amounts to pay costs of administering the dividend 03 program and the hold harmless provisions of AS 43.23.240; 04 (2) determining the number of individuals eligible to receive a 05 dividend payment for the current year and the number of estates and successors 06 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 07 (3) dividing the amount determined under (1) of this subsection by the 08 amount determined under (2) of this subsection. 09 * Sec. 13. AS 37.13.145(e) and 37.13.145(f) are repealed. 10 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 CONDITIONAL EFFECT. (a) Sections 4, 6, 8, and 13 of this Act take effect only if, 13 by December 15, 2024, the commissioner of revenue and the director of the legislative 14 finance division jointly agree that revenue measures anticipated to generate at least 15 $700,000,000 of new annually recurring general fund revenue, when compared to annual 16 revenue generated from the statutes as they read on June 30, 2021, have been passed by the 17 Alaska State Legislature and enacted into law. 18 (b) The commissioner of revenue and the director of the legislative finance division 19 shall notify the revisor of statutes in a joint letter if, before December 15, 2024, revenue 20 measures anticipated to generate at least an estimated $700,000,000 of new annually recurring 21 general fund revenue, when compared to annual revenue generated from the statutes as they 22 read on June 30, 2021, have been passed by the Alaska State Legislature and enacted into law. 23 (c) In this section, "general fund revenue" does not include revenue from the 24 permanent fund. 25 * Sec. 15. If, under sec. 14 of this Act, secs. 4, 6, 8, and 13 of this Act take effect, they take 26 effect July 1, 2025. 27 * Sec. 16. Except as provided in sec. 15 of this Act, this Act takes effect immediately under 28 AS 01.10.070(c).