HB 222: "An Act relating to the Alaska permanent fund and the income and investments of the fund; relating to the permanent fund dividend; and providing for an effective date."
00 HOUSE BILL NO. 222 01 "An Act relating to the Alaska permanent fund and the income and investments of the 02 fund; relating to the permanent fund dividend; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.13.120 is amended by adding a new subsection to read: 05 (f) Notwithstanding (a) and (c) of this section, the board shall invest the fund 06 assets to achieve a 25 percent ownership share of a natural gas pipeline originating on 07 the North Slope. In this subsection, "natural gas pipeline" has the meaning given in 08 AS 31.25.390. 09 * Sec. 2. AS 37.13.145(b) is amended to read: 10 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 11 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 12 account to the dividend fund established under AS 43.23.045, the amount necessary 13 to distribute a dividend of up to $1,000 to each eligible individual [50 PERCENT 14 OF THE INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140].
01 * Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 02 (b) Each fiscal year, the legislature may appropriate from the earnings reserve 03 account to the dividend fund established under AS 43.23.045, 50 percent of the 04 income available for distribution under AS 37.13.140 [THE AMOUNT 05 NECESSARY TO DISTRIBUTE A DIVIDEND OF UP TO $1,000 TO EACH 06 ELIGIBLE INDIVIDUAL]. 07 * Sec. 4. AS 37.13.145(c) is amended to read: 08 (c) After the appropriation [TRANSFER] under (b) and an appropriation 09 under (e) of this section, the legislature may appropriate [CORPORATION SHALL 10 TRANSFER] from the earnings reserve account to the principal of the fund an amount 11 sufficient to offset the effect of inflation on the principal of the fund during that fiscal 12 year. However, none of the amount appropriated [TRANSFERRED] shall be applied 13 to increase the value of that portion of the principal attributed to the settlement of State 14 v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 15 July 1, 2004. The corporation shall calculate the amount to appropriate 16 [TRANSFER] to the principal under this subsection by 17 (1) computing the average of the monthly United States Consumer 18 Price Index for all urban consumers for each of the two previous calendar years; 19 (2) computing the percentage change between the first and second 20 calendar year average; and 21 (3) applying that rate to the value of the principal of the fund on the 22 last day of the fiscal year just ended, including that portion of the principal attributed 23 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 24 First Judicial District). 25 * Sec. 5. AS 37.13.145(d) is amended to read: 26 (d) Notwithstanding (b) of this section, income earned on money awarded in 27 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 28 Court, First Judicial District), including settlement, summary judgment, or adjustment 29 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 30 on the money, or on the earnings of the money shall be treated in the same manner as 31 other income of the Alaska permanent fund, except that it is not available for
01 appropriation [DISTRIBUTION] to the dividend fund under (b) of this section, for 02 an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 03 appropriation under (e) of this section, and shall be annually deposited into the Alaska 04 capital income fund (AS 37.05.565). 05 * Sec. 6. AS 37.13.300(b) is amended to read: 06 (b) The corporation shall 07 (1) hold and invest the mental health trust fund subject to 08 AS 37.13.120, except that it may not be used for an investment described in 09 AS 37.13.120(f); 10 (2) at least quarterly, prepare, publish, and distribute to the Board of 11 Trustees of the Alaska Mental Health Trust Authority a financial report showing 12 investment revenue and expenditures, including the allocation of the cash assets of the 13 mental health trust fund among investments; 14 (3) annually prepare, publish, and distribute to the Board of Trustees of 15 the Alaska Mental Health Trust Authority financial statements prepared in accordance 16 with generally accepted accounting principles consistently applied, and an audit report 17 prepared by a certified public accountant; 18 (4) periodically advise the Board of Trustees of the Alaska Mental 19 Health Trust Authority when revisions to long-range investment policy, including 20 asset allocation changes, are contemplated, and provide an opportunity for 21 consultation and comment on the changes before they are implemented; and 22 (5) transfer to the mental health trust settlement income account the net 23 income available for distribution attributable to the mental health trust fund at the end 24 of each fiscal year. 25 * Sec. 7. AS 37.13.300(c) is amended to read: 26 (c) Net income from the mental health trust fund may not be included in the 27 computation of the amount [NET INCOME OR MARKET VALUE] available for 28 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 29 * Sec. 8. AS 43.23.025(a) is amended to read: 30 (a) By October 1 of each year, the commissioner shall determine the value of 31 each permanent fund dividend for that year by
01 (1) determining the total amount available for dividend payments, 02 which equals 03 (A) the amount appropriated [OF INCOME OF THE 04 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 05 under AS 37.13.145(b) during the current year; 06 (B) plus the unexpended and unobligated balances of prior 07 fiscal year appropriations that lapse into the dividend fund under 08 AS 43.23.045(d); 09 (C) less the amount necessary to pay prior year dividends from 10 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 11 43.23.055(3) and (7); 12 (D) less the amount necessary to pay dividends from the 13 dividend fund due to eligible applicants who, as determined by the department, 14 filed for a previous year's dividend by the filing deadline but who were not 15 included in a previous year's dividend computation; 16 (E) less appropriations from the dividend fund during the 17 current year, including amounts to pay costs of administering the dividend 18 program and the hold harmless provisions of AS 43.23.240; 19 (2) determining the number of individuals eligible to receive a 20 dividend payment for the current year and the number of estates and successors 21 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 22 (3) dividing the amount determined under (1) of this subsection by the 23 amount determined under (2) of this subsection. 24 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 CONDITIONAL EFFECT. (a) Sections 2 and 4 - 8 of the Act take effect only if, 27 before January 1, 2034, construction on a natural gas pipeline originating on the North Slope 28 has begun. 29 (b) Section 3 of this Act takes effect only if, 30 (1) before January 1, 2034, a natural gas pipeline originating on the North 31 Slope is completed; and
01 (2) the pipeline described in (1) of this subsection has at least 25 percent of its 02 ownership share held by Alaska permanent fund assets. 03 (c) On December 1 of each year, beginning in 2024 and ending in 2034, the 04 commissioner of natural resources shall notify the revisor of statutes whether 05 (1) construction on a natural gas pipeline originating on the North Slope has 06 begun; 07 (2) a natural gas pipeline originating on the North Slope is completed. 08 (d) In this section, "natural gas pipeline" has the meaning given in AS 31.25.390. 09 * Sec. 10. If secs. 2 and 4 - 8 of this Act take effect, they take effect July 1 of the calendar 10 year after the commissioner of natural resources determines that construction of a natural gas 11 pipeline originating on the North Slope, as defined in sec. 9(d) of this Act, has begun. 12 * Sec. 11. If sec. 3 of this Act takes effect, it takes effect July 1 of the calendar year after the 13 commissioner of natural resources determines that a natural gas pipeline originating on the 14 North Slope, as defined in sec. 9(d) of this Act, is completed. 15 * Sec. 12. Except as provided in secs. 10 and 11 of this Act, this Act takes effect July 1, 16 2024.