00 HOUSE BILL NO. 177                                                                                                      
01 "An Act relating to disposition of income from the permanent fund; and                                                  
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 37.13.145(b) is amended to read:                                                                    
05  (b)  At the end of each fiscal year after the transfer under (c) of this section,                                   
06 the corporation shall transfer from the earnings reserve account to the dividend fund                                   
07 established under AS 43.23.045 50 percent of the income available for distribution                                      
08 under AS 37.13.140, or, if less than that amount is in the earnings reserve account,                                   
09 the corporation shall transfer the balance in the account to the dividend fund.                                        
10    * Sec. 2.  AS 37.13.145(c) is amended to read:                                                                       
11  (c)  At the end of each fiscal year before [AFTER] the transfer under (b) of                                        
12 this section, the corporation shall transfer from the earnings reserve account to the                                   
13 principal of the fund an amount sufficient to offset the effect of inflation on principal                               
14 of the fund during that fiscal year.  The corporation shall calculate the amount to                                     
01 transfer to the principal under this subsection by                                                                      
02   (1)  computing the average of the monthly United States Consumer                                                     
03 Price Index for all urban consumers for each of the two previous calendar years;                                        
04   (2)  computing the percentage change between the first and second                                                    
05 calendar year average; and                                                                                              
06   (3)  applying that rate to the value of the principal of the fund on the                                             
07 last day of the fiscal year just ended.                                                                                 
08    * Sec. 3.  This Act takes effect July 1, 1993.