HB 160: "An Act relating to the calculation of the amount available for appropriation from the Alaska permanent fund; and providing for an effective date."
00 HOUSE BILL NO. 160 01 "An Act relating to the calculation of the amount available for appropriation from the 02 Alaska permanent fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.13.140(b) is amended to read: 05 (b) The corporation shall determine the amount available for appropriation 06 each year. The amount available for appropriation is the balance of the fund, 07 including the balance of the earnings reserve account established under 08 AS 37.13.145 but not including the portion of the principal attributed to the 09 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 10 First Judicial District), multiplied by [FIVE PERCENT OF] the average real rate 11 of return [MARKET VALUE] of the fund for the first 20 [FIVE] of the preceding 21 12 [SIX] fiscal years, including the fiscal year just ended, computed annually for each 13 fiscal year in accordance with generally accepted accounting principles. In this 14 subsection, "real rate of return" means the difference between
01 (1) the rate of return on the fund for the fiscal year; for the 02 purpose of calculating the rate of return under this paragraph, the corporation 03 shall include returns on ["AVERAGE MARKET VALUE OF THE FUND" 04 INCLUDES] the balance of the earnings reserve account established under 05 AS 37.13.145 [,] but may [DOES] not include returns on that portion of the principal 06 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 07 (Superior Court, First Judicial District); and 08 (2) the rate of inflation, as calculated by computing the average of 09 the monthly United States Consumer Price Index for all urban consumers for the 10 fiscal year. 11 * Sec. 2. AS 37.13.150 is amended to read: 12 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's 13 investments must be identified as the source of the operating budget of the corporation 14 in the state's operating budget under AS 37.07 (Executive Budget Act). The 15 unexpended balance of the corporation's annual operating budget does not lapse at the 16 end of the fiscal year but shall be treated as income and part of the balance 17 [MARKET VALUE] of the fund under AS 37.13.140. 18 * Sec. 3. AS 37.13.300(c) is amended to read: 19 (c) Net income from the mental health trust fund may not be included in the 20 computation of net income or the rate of return, balance of the fund, or amount 21 available for [MARKET VALUE AVAILABLE FOR DISTRIBUTION OR] 22 appropriation under AS 37.13.140. 23 * Sec. 4. This Act takes effect July 1, 2023.