SB 3003: "An Act relating to the Alaska permanent fund; relating to the sustainable dividend and power cost equalization accounts in the Alaska permanent fund; relating to the power cost equalization endowment fund; relating to the dividend fund; relating to dividends for state residents; relating to the use of certain state income; and providing for an effective date."
00 SENATE BILL NO. 3003 01 "An Act relating to the Alaska permanent fund; relating to the sustainable dividend and 02 power cost equalization accounts in the Alaska permanent fund; relating to the power 03 cost equalization endowment fund; relating to the dividend fund; relating to dividends 04 for state residents; relating to the use of certain state income; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE INTENT. It is the intent of the legislature to set the amount of each 10 permanent fund dividend to be distributed in 2021 and 2022 at $1,000 for each eligible 11 individual. 12 * Sec. 2. AS 37.13.140(b) is amended to read: 13 (b) The corporation shall determine the amount available for appropriation
01 each year from the permanent fund. The amount available for appropriation from 02 the permanent fund is 4.5 [FIVE] percent of the average market value of the 03 permanent fund for the [FIRST FIVE OF THE] preceding five [SIX] fiscal years, 04 excluding [INCLUDING] the fiscal year just ended, computed annually for each 05 fiscal year in accordance with generally accepted accounting principles. In this 06 subsection, "average market value of the permanent fund" includes the balance of the 07 sustainable dividend and power cost equalization accounts [EARNINGS 08 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. 3. AS 37.13.140 is amended by adding new subsections to read: 12 (c) The corporation shall determine the amount available for appropriation 13 from the sustainable dividend account each year. The amount available for 14 appropriation is five percent of the average market value of the sustainable dividend 15 account for the first five of the preceding six fiscal years, excluding the fiscal year just 16 ended, computed annually for each fiscal year in accordance with generally accepted 17 accounting principles. 18 (d) The corporation shall determine the amount available for appropriation 19 from the power cost equalization account each year. The amount available for 20 appropriation is five percent of the average market value of the power cost 21 equalization account for the first five of the preceding six fiscal years, excluding the 22 fiscal year just ended, computed annually for each fiscal year in accordance with 23 generally accepted accounting principles. 24 * Sec. 4. AS 37.13.145(b) is amended to read: 25 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 26 appropriate the amount available for appropriation, as determined under 27 AS 37.13.140(b), [CORPORATION SHALL TRANSFER] from the earnings reserve 28 account as follows: 29 (1) 25 percent to the dividend fund established under AS 43.23.045; 30 and 31 (2) 75 percent to the general fund [, 50 PERCENT OF THE
01 INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 02 * Sec. 5. AS 37.13.145(d) is amended to read: 03 (d) Money [NOTWITHSTANDING (b) OF THIS SECTION, INCOME 04 EARNED ON MONEY] awarded in or received as a result of State v. Amerada Hess, 05 et al., 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 06 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 07 outcome of this case, and [OR] interest or income earned on the money, [OR ON 08 THE EARNINGS OF THE MONEY] shall be treated in the same manner as other 09 income of the Alaska permanent fund, except that it is not available for 10 [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS TO THE 11 PRINCIPAL UNDER (c) OF THIS SECTION, OR FOR AN] appropriation under (g) 12 [(e)] of this section, and shall be annually deposited into the Alaska capital income 13 fund (AS 37.05.565). 14 * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read: 15 (g) Each year, the legislature may appropriate up to 4.5 percent of the average 16 market value of the permanent fund, as determined under AS 37.13.140(b), to the 17 general fund. Money appropriated under this subsection may not be drawn from the 18 sustainable dividend or power cost equalization accounts in the permanent fund. 19 * Sec. 7. AS 37.13 is amended by adding new sections to read: 20 Sec. 37.13.147. Disposition of the sustainable dividend account. Each fiscal 21 year, the legislature shall appropriate the amount available for appropriation from the 22 sustainable dividend account as determined under AS 37.13.140(c) for the payment of 23 dividends to residents of the state. The legislature may appropriate this amount to the 24 dividend fund established under AS 43.23.045. Money appropriated under this section 25 may be drawn only from the sustainable dividend account in the permanent fund. 26 Sec. 37.13.148. Disposition of the power cost equalization account. Each 27 fiscal year, the legislature shall appropriate the amount available for appropriation 28 from the power cost equalization account as determined under AS 37.13.140(d) for the 29 payment of energy subsidies to rural communities in the state. Money appropriated 30 under this section may be drawn only from the power cost equalization account in the 31 permanent fund. The legislature may appropriate this amount to the power cost
01 equalization and rural electric capitalization fund established under AS 42.45.100. 02 * Sec. 8. AS 37.13.300(c) is amended to read: 03 (c) Net income from the mental health trust fund may not be included in the 04 computation of the [NET INCOME OR] market value available for [DISTRIBUTION 05 OR] appropriation under AS 37.13.140. 06 * Sec. 9. AS 37.14.031(c) is amended to read: 07 (c) The net income of the fund shall be determined by the Alaska Permanent 08 Fund Corporation annually as of the last day of the fiscal year in accordance with 09 generally accepted accounting principles, excluding any unrealized gains or losses 10 [IN THE SAME MANNER THE CORPORATION DETERMINES THE NET 11 INCOME OF THE ALASKA PERMANENT FUND UNDER AS 37.13.140]. 12 * Sec. 10. AS 42.45.085(a) is amended to read: 13 (a) The [FIVE PERCENT OF THE] amount appropriated from the power 14 cost equalization account of the Alaska permanent fund [DETERMINED BY THE 15 COMMISSIONER OF REVENUE ON JULY 1 OF] each year under AS 37.13.148 16 [AS 42.45.080(c)(1)] may be appropriated for the following purposes: 17 (1) funding the power cost equalization and rural electric capitalization 18 fund (AS 42.45.100); 19 (2) reimbursement to the Department of Revenue for the costs of 20 establishing and managing the power cost equalization account [FUND]; and 21 (3) reimbursement of other costs of administration of the power cost 22 equalization account [FUND]. 23 * Sec. 11. AS 42.45.085(c) is amended to read: 24 (c) If the amount appropriated under (a) of this section is insufficient to 25 achieve the purposes of (a)(1) - (3) of this section, the amount may [SHALL] be 26 prorated among the purposes listed in (a)(1) and (2) of this section. 27 * Sec. 12. AS 42.45.085(d) is amended to read: 28 (d) If the amount appropriated from the power cost equalization account 29 of the Alaska permanent fund under AS 37.13.148 exceeds [EARNINGS OF THE 30 FUND FOR THE PREVIOUS CLOSED FISCAL YEAR, AS CALCULATED 31 UNDER AS 42.45.080(c)(2), EXCEED] the amount of the appropriations
01 [APPROPRIATION] under (a) of this section for the current fiscal year, the legislature 02 may appropriate the amount remaining [70 PERCENT OF THE DIFFERENCE 03 BETWEEN THE EARNINGS OF THE FUND FOR THE PREVIOUS CLOSED 04 FISCAL YEAR, AS CALCULATED UNDER AS 42.45.080(c)(2), AND THE 05 APPROPRIATION MADE UNDER (a) OF THIS SECTION FOR THE CURRENT 06 FISCAL YEAR] as follows: 07 (1) if the amount remaining [CALCULATED UNDER THIS 08 SUBSECTION] is less than $30,000,000, that amount to a community revenue sharing 09 or community assistance fund; or 10 (2) if the amount remaining [CALCULATED UNDER THIS 11 SUBSECTION] is $30,000,000 or more, 12 (A) $30,000,000 to a community revenue sharing or 13 community assistance fund; and 14 (B) the remaining amount, not to exceed $25,000,000, to the 15 renewable energy grant fund established under AS 42.45.045, to the bulk fuel 16 revolving loan fund established under AS 42.45.250, or for rural power system 17 upgrades or to a combination of the funds or purposes listed in this 18 subparagraph. 19 * Sec. 13. AS 42.45.100(b) is amended to read: 20 (b) The fund shall be administered by the authority as a fund distinct from the 21 other funds of the authority. The fund is composed of 22 (1) money appropriated to provide power cost equalization to eligible 23 electric utilities and to provide grants for utility improvements; 24 (2) money appropriated from the National Petroleum Reserve - Alaska 25 special revenue fund under AS 37.05.530(g); 26 (3) money appropriated from the power cost equalization account of 27 the Alaska permanent fund [ENDOWMENT FUND (AS 42.45.070)] under 28 AS 37.13.148 [AS 42.45.085(a)]; 29 (4) gifts, bequests, contributions from other sources, and federal 30 money; and 31 (5) interest earned on the fund balance.
01 * Sec. 14. AS 42.45.100(c) is amended to read: 02 (c) The fund is not a dedicated fund, except that amounts deposited into the 03 fund from the Alaska permanent fund must be used for the payment of energy 04 subsidies and capital improvements to energy infrastructure to rural 05 communities in the state and for community assistance payments and renewable 06 energy projects in the state, in conformance with art. IX, sec. 15(d), Constitution 07 of the State of Alaska. 08 * Sec. 15. AS 42.45.170(a) is amended to read: 09 (a) An electric utility that is not subject to rate regulation by the Regulatory 10 Commission of Alaska under AS 42.05 may receive power cost equalization if the 11 utility is otherwise eligible for equalization assistance under AS 42.45.100 - 42.45.150 12 and if the utility 13 (1) files with the commission financial data necessary to determine the 14 power cost equalization per kilowatt-hour as prescribed by the commission and that is 15 in compliance with AS 42.45.100 - 42.45.150; 16 (2) reports monthly to the authority, within the time and in the form 17 required, the information required in (b) of this section; 18 (3) sets rates 19 (A) that consider the power cost equalization provided under 20 AS 42.45.100 - 42.45.150 by subtracting from its revenue requirements for 21 electric services the power cost equalization per kilowatt-hour that it is eligible 22 to receive; and 23 (B) under which the power cost equalization provided in 24 AS 42.45.100 and 42.45.110 [AS 42.45.070 - 42.45.110] is applied as a credit 25 only against the cost of kilowatt-hours eligible for equalization assistance 26 under AS 42.45.100 - 42.45.150 that are consumed by each customer in any 27 month; 28 (4) allows audits that the commission determines are necessary to 29 ensure compliance with this section; and 30 (5) furnishes its electric service customers eligible under this program 31 a notice as specified in AS 42.45.120.
01 * Sec. 16. 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, as modified under (c) of this section as 04 necessary, 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 established under AS 43.23.045 [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. 17. AS 43.23.025 is amended by adding a new subsection to read: 29 (c) If the commissioner determines that the amount of the dividend under (a) 30 of this section is less than $1,200 for each individual, the legislature shall appropriate 31 the additional amount necessary to provide at least a $1,200 dividend for each
01 individual. If an appropriation is made under this subsection, the commissioner shall 02 recalculate the value of each permanent fund dividend under (a) of this section by 03 including the amount of the additional appropriation in (a)(1)(A) of this section. 04 * Sec. 18. AS 43.23.028(a) is amended to read: 05 (a) By October 1 of each year, the commissioner shall give public notice of 06 the value of each permanent fund dividend for that year and notice of the information 07 required to be disclosed under (3) of this subsection. In addition, the stub attached to 08 each individual dividend disbursement advice must 09 (1) disclose the amount of each dividend attributable to 10 (A) [INCOME EARNED BY] the sustainable dividend 11 account, as [PERMANENT FUND FROM DEPOSITS TO THAT FUND] 12 required under art. IX, sec. 15(c) [15], Constitution of the State of Alaska; and 13 (B) additional legislative appropriations required by art. 14 IX, sec. 18, Constitution of the State of Alaska; 15 (2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 16 ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 17 APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 18 THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 19 (3)] disclose the amount by which each dividend has been reduced due 20 to each appropriation from the dividend fund, including amounts to pay the costs of 21 administering the dividend program and the hold harmless provisions of 22 AS 43.23.240; 23 (3) [(4)] include a statement that an individual is not eligible for a 24 dividend when 25 (A) during the qualifying year, the individual was convicted of 26 a felony; 27 (B) during all or part of the qualifying year, the individual was 28 incarcerated as a result of the conviction of a 29 (i) felony; or 30 (ii) misdemeanor if the individual has been convicted of 31 a prior felony or two or more prior misdemeanors;
01 (4) [(5)] include a statement that the legislative purpose for making 02 individuals listed under (3) [(4)] of this subsection ineligible is to 03 (A) provide funds for services for and payments to crime 04 victims and operating costs of the Violent Crimes Compensation Board; 05 (B) provide funds to pay restitution owed to crime victims; 06 (C) provide funds for grants to nonprofit organizations for 07 services for crime victims and for mental health services and substance abuse 08 treatment for offenders; 09 (D) provide funds for the office of victims' rights; 10 (E) provide funds to the Council on Domestic Violence and 11 Sexual Assault for grants for the operation of domestic violence and sexual 12 assault programs; and 13 (F) obtain reimbursement for some of the costs imposed on the 14 Department of Corrections related to incarceration or probation of those 15 individuals; 16 (5) [(6)] disclose the total amount that would have been paid during the 17 previous fiscal year to individuals who were ineligible to receive dividends under 18 AS 43.23.005(d) if they had been eligible; 19 (6) [(7)] disclose the total amount transferred or appropriated for the 20 current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 21 listed in AS 43.23.048. 22 * Sec. 19. AS 37.13.140(a), 37.13.145(a), 37.13.145(b), 37.13.145(c), 37.13.145(e), 23 37.13.145(f); AS 42.45.070, 42.45.080, 42.45.085(b), and 42.45.099 are repealed. 24 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 CALCULATION OF VALUE OF SUSTAINABLE DIVIDEND AND POWER 27 COST EQUALIZATION ACCOUNTS IN THE ALASKA PERMANENT FUND. (a) For 28 purposes of art. IX, sec. 15(c), and art. XV, sec. 30(e), Constitution of the State of Alaska, the 29 average market value of the sustainable dividend account for fiscal years 2023, 2022, 2021, 30 2020, 2019, 2018, and 2017 is the sustainable dividend fund fraction multiplied by the fiscal 31 year end value of the earnings reserve account for the applicable fiscal year. The sustainable
01 dividend fund fraction is the value of the amount appropriated to the sustainable dividend 02 fund under art. XV, sec. 30(a), Constitution of the State of Alaska, divided by the value of the 03 earnings reserve account immediately before the appropriation under art. XV, sec. 30(a), 04 Constitution of the State of Alaska. 05 (b) For purposes of art. IX, sec. 15(d), and art. XV, sec. 30(e), Constitution of the 06 State of Alaska, the average market value of the power cost equalization account for fiscal 07 years 2023, 2022, 2021, 2020, 2019, 2018, and 2017 is the fiscal year end value of the power 08 cost equalization endowment fund (former AS 42.45.070) for the applicable fiscal year. 09 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 CONDITIONAL EFFECT. (a) Sections 2, 3, and 5 - 20 of this Act take effect only if, 12 before January 1, 2023, the voters approve an enabling resolution. 13 (b) Section 4 of this Act takes effect only if, before January 1, 2023, the voters have 14 not approved an enabling resolution. 15 (c) In this section, "enabling resolution" means a resolution that amends the 16 constitution that 17 (1) creates a sustainable dividend account in art. IX, sec. 15, Constitution of 18 the State of Alaska; 19 (2) requires certain funds to be deposited into the Alaska permanent fund and 20 the sustainable dividend account (art. IX, sec. 15, Constitution of the State of Alaska); 21 (3) requires appropriations from the Alaska permanent fund (art. IX, sec. 15, 22 Constitution of the State of Alaska) to the budget reserve fund (art. IX, sec. 17, Constitution 23 of the State of Alaska); 24 (4) requires the legislature to appropriate certain amounts for dividends and 25 guarantees a certain amount for dividends to state residents; and 26 (5) provides that the unencumbered balance of the earnings reserve account 27 established by law shall be deposited in the Alaska permanent fund (art. IX, sec. 15, 28 Constitution of the State of Alaska) and become part of the principal of the fund. 29 * Sec. 22. If, under sec. 21(a) of this Act, secs. 2, 3, and 5 - 20 of this Act take effect, they 30 take effect July 1, 2023. 31 * Sec. 23. If, under sec. 21(b) of this Act, sec. 4 of this Act takes effect, it takes effect
01 July 1, 2023. 02 * Sec. 24. Except as provided in secs. 22 and 23 of this Act, this Act takes effect 03 immediately under AS 01.10.070(c).