SB 3004: "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 SENATE BILL NO. 3004 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) Except as provided in (g) of this section, [AT THE END OF] each fiscal 13 year, the legislature may appropriate [CORPORATION SHALL TRANSFER] from 14 the earnings reserve account to the dividend fund established under AS 43.23.045, the 15 amount necessary to distribute the following amounts for permanent fund 16 dividends to each eligible individual for each of the following fiscal years: 17 (1) $1,100 in fiscal year 2022; 18 (2) $1,500 in fiscal year 2023; 19 (3) $2,000 in fiscal year 2024; and 20 (4) $2,250 in fiscal year 2025 [50 PERCENT OF THE INCOME 21 AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 22 * Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 23 (b) Each [EXCEPT AS PROVIDED IN (g) OF THIS SECTION, EACH] 24 fiscal year, the legislature may appropriate from the earnings reserve account to the 25 (1) dividend fund established under AS 43.23.045, 50 percent of the 26 amount available for appropriation under AS 37.13.140(b); and 27 (2) general fund, 50 percent of the amount available for 28 appropriation under AS 37.13.140(b) [THE AMOUNT NECESSARY TO 29 DISTRIBUTE THE FOLLOWING AMOUNTS FOR PERMANENT FUND 30 DIVIDENDS TO EACH ELIGIBLE INDIVIDUAL FOR EACH OF THE 31 FOLLOWING FISCAL YEARS:
01 (1) $1,100 IN FISCAL YEAR 2022; 02 (2) $1,500 IN FISCAL YEAR 2023; 03 (3) $2,000 IN FISCAL YEAR 2024; AND 04 (4) $2,250 IN FISCAL YEAR 2025]. 05 * Sec. 4. AS 37.13.145(c) is amended to read: 06 (c) After the appropriations [TRANSFER] under (b) [AND AN 07 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 08 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 09 principal of the fund an amount sufficient to offset the effect of inflation on the 10 principal of the fund during that fiscal year. However, none of the amount transferred 11 shall be applied to increase the value of 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) on July 1, 2004. The corporation shall calculate the amount to 14 transfer to the principal under this subsection by 15 (1) computing the average of the monthly United States Consumer 16 Price Index for all urban consumers for each of the two previous calendar years; 17 (2) computing the percentage change between the first and second 18 calendar year average; and 19 (3) applying that rate to the value of the principal of the fund on the 20 last day of the fiscal year just ended, including that portion of the principal attributed 21 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 22 First Judicial District). 23 * Sec. 5. AS 37.13.145(d) is amended to read: 24 (d) Notwithstanding (b) of this section, income earned on money awarded in 25 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 26 Court, First Judicial District), including settlement, summary judgment, or adjustment 27 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 28 on the money, or on the earnings of the money shall be treated in the same manner as 29 other income of the Alaska permanent fund, except that it may [IS] not be included in 30 the calculation of the amount available for appropriation under AS 37.13.140(b) 31 or [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS] to the
01 principal under (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF 02 THIS SECTION,] and shall be annually deposited into the Alaska capital income fund 03 (AS 37.05.565). 04 * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read: 05 (g) The amount appropriated for permanent fund dividends each year under 06 (b) of this section may be reduced if the amount necessary to distribute the dividends 07 for that year exceeds the amount available for appropriation under AS 37.13.140(b). 08 * Sec. 7. AS 37.13.300(c) is amended to read: 09 (c) Net income from the mental health trust fund may not be included in the 10 computation of net income of the fund, the [OR] market value of the fund, or the 11 amount available for [DISTRIBUTION OR] appropriation under AS 37.13.140(b) 12 [AS 37.13.140]. 13 * Sec. 8. AS 37.14.031(c) is amended to read: 14 (c) The net income of the fund shall be determined by the Alaska Permanent 15 Fund Corporation and shall be computed annually as of the last day of the fiscal 16 year in accordance with generally accepted accounting principles, excluding any 17 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 18 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 19 UNDER AS 37.13.140]. 20 * Sec. 9. AS 43.23.025(a) is amended to read: 21 (a) By October 1 of each year, the commissioner shall determine the value of 22 each permanent fund dividend for that year by 23 (1) determining the total amount available for dividend payments, 24 which equals 25 (A) the amount appropriated [OF INCOME OF THE 26 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 27 under AS 37.13.145(b) during the current year; 28 (B) plus the unexpended and unobligated balances of prior 29 fiscal year appropriations that lapse into the dividend fund under 30 AS 43.23.045(d); 31 (C) less the amount necessary to pay prior year dividends from
01 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 02 43.23.055(3) and (7); 03 (D) less the amount necessary to pay dividends from the 04 dividend fund due to eligible applicants who, as determined by the department, 05 filed for a previous year's dividend by the filing deadline but who were not 06 included in a previous year's dividend computation; 07 (E) less appropriations from the dividend fund during the 08 current year, including amounts to pay costs of administering the dividend 09 program and the hold harmless provisions of AS 43.23.240; 10 (2) determining the number of individuals eligible to receive a 11 dividend payment for the current year and the number of estates and successors 12 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 13 (3) dividing the amount determined under (1) of this subsection by the 14 amount determined under (2) of this subsection. 15 * Sec. 10. AS 37.13.145(e), 37.13.145(f), and 37.13.145(g) are repealed. 16 * Sec. 11. Sections 2 and 6 of this Act take effect immediately under AS 01.10.070(c). 17 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect July 1, 2025.