00 HOUSE BILL NO. 365 01 "An Act relating to the permanent fund dividend disbursement; relating to the taxation 02 of income of individuals; relating to tax credit against the individual income tax in the 03 amount of a permanent fund disbursement; repealing tax credits applied against the tax 04 on individuals under the Alaska Net Income Tax Act; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07  * Section 1. AS 11.56.205(a) is amended to read: 08 (a) A person commits the crime of unsworn falsification in the first degree if 09 the person violates AS 11.56.210(a)(1) and the application is an application for a 10 permanent fund refundable income tax credit [DIVIDEND]. 11  * Sec. 2. AS 11.56.205(b) is amended to read: 12 (b) In this section, 13 (1) "application for a permanent fund refundable income tax credit 01 [DIVIDEND]" includes a written or electronic application and any other 02 documentation submitted to support an application for a permanent fund refundable  03 income tax credit [DIVIDEND]; 04 (2) "permanent fund refundable income tax credit [DIVIDEND]" has 05 the meaning given in AS 43.23.095. 06  * Sec. 3. AS 11.56.800(a) is amended to read: 07 (a) A person commits the crime of false information or report if the person 08 knowingly 09 (1) gives false information to a peace officer 10 (A) with the intent of implicating another in an offense; or 11 (B) concerning the person's identity while the person is 12 (i) under arrest, detention, or investigation for a crime; 13 or 14 (ii) being served with an arrest warrant or being issued a 15 citation; 16 (2) makes a false report to a peace officer that a crime has occurred or 17 is about to occur; 18 (3) makes a false report or gives a false alarm, under circumstances not 19 amounting to terroristic threatening in the second degree under AS 11.56.810, that a 20 fire or other incident dangerous to life or property calling for an emergency response 21 has occurred or is about to occur; 22 (4) makes a false report to the Department of Natural Resources under 23 AS 46.17 concerning the condition of a dam or reservoir; or 24 (5) gives false information to a public employee relating to a person's 25 eligibility for a permanent fund refundable income tax credit [DIVIDEND] under 26 AS 43.23 and the false information does not also violate AS 11.56.205. 27  * Sec. 4. AS 12.25.200(b) is amended to read: 28 (b) A citation issued under AS 12.25.180 or other law authorizing the issuance 29 of a citation must be in writing and indicate, if applicable, 30 (1) the amount of bail or fine and the surcharge applicable to the 31 offense; 01 (2) the procedure a person must follow in responding to the citation; 02 (3) that, if the person fails to pay the bail or fine, the person must 03 appear in court; 04 (4) that failure to pay the bail or fine or appear in court for an offense 05 involving a moving motor vehicle may result in 06 (A) suspension of the person's driver's license, privilege to 07 drive, or privilege to obtain a license; or 08 (B) attachment of the person's permanent fund refundable  09 income tax credit [DIVIDEND] to pay the fine plus court and collection costs 10 under AS 28.05.155; and 11 (5) that the person has a right to 12 (A) a trial; 13 (B) engage counsel; 14 (C) confront and question witnesses; 15 (D) testify; 16 (E) subpoena witnesses on the person's behalf. 17  * Sec. 5. AS 12.55.041(d) is amended to read: 18 (d) The court shall include a surcharge imposed under (a) of this section in the 19 judgment of conviction. The court shall include the imposition of a surcharge under 20 (c) of this section in the order revoking probation. For a surcharge that is not paid by 21 the person as required by this section, the state shall seek reimbursement from the 22 person's permanent fund refundable income tax credit [DIVIDED] as provided 23 under AS 43.23.065. For purposes of collection and priority of attachment under 24 AS 43.23.065, a surcharge imposed under this section is accounted for in the same 25 manner as a cost of imprisonment under as 28.35.030(k) and 28.35.032(o). The state 26 may enforce payment of a surcharge under this section under AS 09.35 as if it were a 27 civil judgment enforceable by execution. This subsection does not limit the authority 28 of the court to enforce surcharges. 29  * Sec. 6. AS 14.40.251(a) is amended to read: 30 (a) For the purposes of this chapter, tuition, a fee, or another charge to an 31 individual by the University of Alaska is in default after payment has become 180 or 01 more days past due. Upon default, the university may take the individual's permanent 02 fund refundable income tax credit [DIVIDEND] under AS 43.23.073. 03  * Sec. 7. AS 14.40.803(b) is amended to read: 04 (b) The fund consists of 05 (1) permanent fund refundable income tax credit [DIVIDEND] and 06 cash contributions made under AS 14.40.807 under the terms of an advance college 07 tuition savings contract; 08 (2) appropriations, gifts, bequests, and contributions; and 09 (3) income and earnings of the fund. 10  * Sec. 8. AS 14.40.807(a) is amended to read: 11 (a) Contributions to the fund under the terms of an advance college tuition 12 savings contract may be made by direct cash payments or by contributions from the 13 permanent fund refundable income tax credit [DIVIDEND]. The Department of 14 Revenue shall 15 (1) prepare the permanent fund refundable income tax credit 16 [DIVIDEND] application to allow an applicant or a parent, legal guardian, or other 17 authorized representative of an applicant who is an unemancipated minor to contribute 18 50 percent of a refundable income tax credit [DIVIDEND] to the fund; and 19 (2) include with each application for a permanent fund refundable  20 income tax credit [DIVIDEND] an explanation of the advance college tuition savings 21 program, including the right to receive a refund, a disclosure of the potential tax 22 liability of the fund, and disclosure of the possible general effect of the tax liability on 23 the advance college tuition savings program. 24  * Sec. 9. AS 14.43.145(a) is amended to read: 25 (a) For the purposes of this chapter, a loan is in default after a loan payment 26 has become 180 or more days past due or, for a loan under AS 14.43.161 - 14.43.168 27 or 14.43.170 - 14.43.175, the default requirements established by the commission have 28 been met. Upon default, 29 (1) repayment of the remaining balance is accelerated and due; 30 (2) the commission may take the borrower's permanent fund 31 refundable income tax credit [DIVIDEND] under AS 43.23.067; 01 (3) the commission may issue an order to withhold and deliver under 02 AS 14.43.147; 03 (4) the commission may provide notice of the default to a licensing 04 entity for nonrenewal of the license under AS 14.43.148; 05 (5) the commission may record the lien created under AS 14.43.149; 06 and 07 (6) the commission may establish an administrative collection order 08 under AS 14.43.151 - 14.43.155. 09  * Sec. 10. AS 15.07.055(e) is amended to read: 10 (e) The director shall enter into an agreement with the Department of 11 Administration and the Department of Revenue to match identifying information 12 provided by a voter who initially registers by mail or by facsimile or other electronic 13 transmission approved by the director under AS 15.07.050 with existing identification 14 records 15 (1) maintained by the administrative component of the Department of 16 Administration that administers motor vehicle and driver's license laws and by the 17 administrative component of the Department of Revenue that administers the 18 permanent fund refundable income tax credit [DIVIDEND] laws; and 19 (2) bearing the same identifying number, name, and date of birth 20 provided on the registration. 21  * Sec. 11. AS 15.07.064(g) is amended to read: 22 (g) Notwithstanding (a) - (f) of this section, the director may substitute a 23 mailing address provided by the voter for the permanent fund refundable income tax  24 credit [DIVIDEND] program under AS 43.23 as the mailing address for the voter on 25 the registration records of the director under procedures specified in regulations of the 26 director if necessary to maintain accuracy of voting registration records. 27  * Sec. 12. AS 22.10.025(b) is amended to read: 28 (b) The superior court, in an action for divorce, separation, or child support, 29 may issue orders to aid in the enforcement of child support, including orders requiring 30 an individual who owes support under an order of support to 31 (1) make payments according to an approved payment plan; 01 (2) participate in appropriate work activities if the individual is not 02 incapacitated; or 03 (3) complete and submit an application for a permanent fund 04 refundable income tax credit [DIVIDEND] under AS 43.23.015 or provide proof to 05 the agency or the court that the individual is not eligible for a refundable income tax  06 credit [DIVIDEND] in a given year. 07  * Sec. 13. AS 28.05.155 is amended to read: 08 Sec. 28.05.155. Court and collection costs. If a person's permanent fund 09 refundable income tax credit [DIVIDEND] is attached to pay the bail or fine for an 10 offense involving a moving motor vehicle, the court shall increase the bail or fine of 11 that person by at least 12 (1) $25 for court costs; and 13 (2) $10 for collection costs. 14  * Sec. 14. AS 28.35.030(k) is amended to read: 15 (k) Imprisonment required under (b)(1)(A) of this section shall be served at a 16 community residential center or by electronic monitoring at a private residence. If a 17 community residential center or electronic monitoring at a private residence is not 18 available, imprisonment required under (b)(1)(A) of this section may be served at 19 another appropriate place determined by the commissioner of corrections. 20 Imprisonment required under (b)(1)(B) - (F) of this section may be served at a 21 community residential center or at a private residence if approved by the 22 commissioner of corrections. Imprisonment served at a private residence must include 23 electronic monitoring. The cost of imprisonment resulting from the sentence imposed 24 under (b)(1) of this section shall be paid to the state by the person being sentenced.  25 The [PROVIDED, HOWEVER, THAT THE] cost of imprisonment required to be 26 paid under this subsection may not exceed $2,000. Upon the person's conviction, the 27 court shall include the costs of imprisonment as a part of the judgment of conviction. 28 Except for reimbursement from a permanent fund refundable income tax credit 29 [DIVIDEND] as provided in this subsection, payment of the cost of imprisonment is 30 not required if the court determines the person is indigent. For costs of imprisonment 31 that are not paid by the person as required by this subsection, the state shall seek 01 reimbursement from the person's permanent fund refundable income tax credit 02 [DIVIDEND] as provided under AS 43.23.065. While at the community residential 03 center or other appropriate place, a person sentenced under (b)(1)(A) of this section 04 shall perform at least 24 hours of community service work. A person sentenced under 05 (b)(1)(B) of this section shall perform at least 160 hours of community service work, 06 as required by the director of the community residential center or other appropriate 07 place, or as required by the commissioner of corrections if the sentence is being served 08 at a private residence. In this subsection, "appropriate place" means a facility with 24- 09 hour on-site staff supervision that is specifically adapted to provide a residence, and 10 includes a correctional center, residential treatment facility, hospital, halfway house, 11 group home, work farm, work camp, or other place that provides varying levels of 12 restriction. 13  * Sec. 15. AS 28.35.032(o) is amended to read: 14 (o) Imprisonment required under (g)(1)(A) of this section shall be served at a 15 community residential center, or if a community residential center is not available, at 16 another appropriate place determined by the commissioner of corrections. 17 Imprisonment required under (g)(1)(B) - (F) of this section may be served at a 18 community residential center or at a private residence if approved by the 19 commissioner of corrections. Imprisonment served at a private residence must include 20 electronic monitoring. The cost of imprisonment resulting from the sentence imposed 21 under (g)(1) of this section shall be paid to the state by the person being sentenced.  22 The [PROVIDED, HOWEVER, THAT THE] cost of imprisonment required to be 23 paid under this subsection may not exceed $2,000. Upon the person's conviction, the 24 court shall include the costs of imprisonment as a part of the judgment of conviction. 25 Except for reimbursement from a permanent fund refundable income tax credit 26 [DIVIDEND] as provided in this subsection, payment of the cost of imprisonment is 27 not required if the court determines the person is indigent. For costs of imprisonment 28 that are not paid by the person as required by this subsection, the state shall seek 29 reimbursement from the person's permanent fund refundable income tax credit 30 [DIVIDEND] as provided under AS 43.23.065. While at the community residential 31 center or other appropriate place, a person sentenced under (g)(1)(A) of this section 01 shall perform at least 24 hours of community service work. A person sentenced under 02 (g)(1)(B) of this section shall perform at least 160 hours of community service work, 03 as required by the director of the community residential center or other appropriate 04 place, or as required by the commissioner of corrections if the sentence is being served 05 at a private residence. In this subsection, "appropriate place" means a facility with 24- 06 hour on-site staff supervision that is specifically adapted to provide a residence, and 07 includes a correctional center, residential treatment facility, hospital, halfway house, 08 group home, work farm, work camp, or other place that provides varying levels of 09 restriction. 10  * Sec. 16. AS 29.45.030(f) is amended to read: 11 (f) To be eligible for an exemption under (e) of this section for a year, a 12 municipality may by ordinance require that an individual also meet requirements 13 under one of the following paragraphs: (1) the individual shall be eligible for a 14 permanent fund refundable income tax credit [DIVIDEND] under AS 43.23.005 for 15 that same year or for the immediately preceding year; or (2) if the individual has not 16 applied or does not apply for one or both of the permanent fund refundable income  17 tax credits [DIVIDENDS], the individual would have been eligible for one of the 18 permanent fund refundable income tax credits [DIVIDENDS] identified in (1) of 19 this subsection had the individual applied. An exemption may not be granted under (e) 20 of this section except upon written application for the exemption. Each municipality 21 shall, by ordinance, establish procedures and deadlines for filing the application. The 22 governing body of the municipality for good cause shown may waive the claimant's 23 failure to make timely application for exemption and authorize the assessor to accept 24 the application as if timely filed. If an application is filed within the required time and 25 is approved by the assessor, the assessor shall allow an exemption in accordance with 26 the provisions of (e) of this section. If the application for exemption is approved after 27 taxes have been paid, the amount of tax that the claimant has already paid for the 28 property exempted shall be refunded to the claimant. The assessor shall require proof 29 in the form the assessor considers necessary of the right to and amount of an 30 exemption claimed under (e) of this section, and shall require a disabled veteran 31 claiming an exemption under (e) of this section to provide evidence of the disability 01 rating. The assessor may require proof under this subsection at any time. 02  * Sec. 17. AS 29.60.860(c) is amended to read: 03 (c) For purposes of this section, the population of a municipality, reserve, or 04 community shall be determined by using the numbers of permanent fund refundable  05 income tax credit [DIVIDEND] recipients or other population data that the 06 department determines is reliable. For purposes of determining the population of a 07 borough, the population of each city in the borough shall be deducted from the total 08 borough population. 09  * Sec. 18. AS 34.45.720(c) is amended to read: 10 (c) AS 34.45.110 - 34.45.780 do not apply to a refund from 11 [DISBURSEMENT FOR THE PAYMENT OF] a permanent fund refundable  12 income tax credit [DIVIDEND]. 13  * Sec. 19. AS 36.10.005(c) is amended to read: 14 (c) The legislature finds that the following factors are reasonable but not 15 exclusive indicators of the ratio of nonresident to resident employees in the state: 16 (1) the ratio of applicants for unemployment insurance who list out-of- 17 state residences to applicants who list residences in the state; 18 (2) the ratio of employees who are subject to unemployment insurance 19 coverage and who did not apply for or were denied a permanent fund refundable  20 income tax credit [DIVIDEND] to employees who were found eligible for the  21 refundable income tax credit [A DIVIDEND]. 22  * Sec. 20. AS 37.05.180 is amended to read: 23 Sec. 37.05.180. Limitation on payment of warrants. A warrant on [UPON] 24 the state treasury may not be paid unless presented at the office of the commissioner of 25 revenue within six months of the date of its issuance. A warrant not presented within 26 that time is presumed abandoned, except where the warrant is for the refund 27 [PAYMENT] of a permanent fund refundable income tax credit [DIVIDEND] or a 28 benefit payment or refund under AS 14.25, AS 22.25, AS 26.05, AS 39.30, AS 39.35, 29 former AS 39.37, or AS 39.45. Money held for an abandoned warrant shall be 30 delivered to the custody of the Department of Revenue to be administered as 31 unclaimed property under AS 34.45. 01  * Sec. 21. AS 37.10.210(b) is amended to read: 02 (b) The Alaska Retirement Management Board consists of nine trustees, as 03 follows: 04 (1) two members, consisting of the commissioner of administration 05 and the commissioner of revenue; 06 (2) seven trustees appointed by the governor who meet the eligibility 07 requirements for an Alaska permanent fund refundable income tax credit 08 [DIVIDEND] and who are professionally credentialed or have recognized competence 09 in investment management, finance, banking, economics, accounting, pension 10 administration, or actuarial analysis as follows: 11 (A) two trustees who are members of the general public; the 12 trustees appointed under this subparagraph may not hold another state office, 13 position, or employment and may not be members or beneficiaries of a 14 retirement system managed by the board; 15 (B) one trustee who is employed as a finance officer for a 16 political subdivision participating in either the public employees' retirement 17 system or the teachers' retirement system; 18 (C) two trustees who are members of the public employees' 19 retirement system, selected from a list of four nominees submitted from among 20 the public employees' retirement system bargaining units; 21 (D) two trustees who are members of the teachers' retirement 22 system selected from a list of four nominees submitted from among the 23 teachers' retirement system bargaining units; 24 (E) the lists of the nominees shall be submitted to the governor 25 under (C) and (D) of this paragraph within the time period specified in 26 regulations adopted under AS 37.10.240(a). 27  * Sec. 22. AS 37.13.145(b) is amended to read: 28 (b) At the end of each fiscal year, the corporation shall transfer from the 29 earnings reserve account to the 30 (1) refundable income tax credit [DIVIDEND] fund established 31 under AS 43.23.045, 25 [50] percent of the income available for distribution under 01 AS 37.13.140; and  02 (2) general fund, 25 percent of the income available for  03 distribution under AS 37.13.140. 04  * Sec. 23. AS 37.13.145(d) is amended to read: 05 (d) Notwithstanding (b) of this section, income earned on money awarded in 06 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 07 Court, First Judicial District), including settlement, summary judgment, or adjustment 08 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 09 on the money, or on the earnings of the money shall be treated in the same manner as 10 other income of the Alaska permanent fund, except that it is not available for 11 distribution to the refundable income tax credit [DIVIDEND] fund or for transfers to 12 the principal under (c) of this section, and shall be annually deposited into the Alaska 13 capital income fund (AS 37.05.565). 14  * Sec. 24. AS 43 is amended by adding a new chapter to read: 15 Chapter 22. Individual Income Tax.  16 Sec. 43.22.010. Tax on individuals. (a) A tax is imposed for each calendar 17 year or fraction of a calendar year on every 18 (1) resident individual with income from a source in the state; and 19 (2) nonresident individual with income from a source in the state. 20 (b) The tax under this section is equal to the sum of 21 (1) 15 percent of the taxpayer's total federal income tax due on the 22 amount of the taxpayer's income that is from a source in the state; and 23 (2) the amount resulting from multiplying the taxpayer's long-term 24 capital gains for the calendar year by the lesser of 25 (A) 10 percent; or 26 (B) the difference between the taxpayer's incremental federal 27 income tax rate on ordinary income and the taxpayer's federal tax rate on long- 28 term capital gains. 29 (c) In this section, 30 (1) "federal income tax due" means the total tax due to the federal 31 government as reported by the taxpayer on a federal individual income tax return; 01 (2) "long-term capital gains" means the total long-term capital gains 02 required to be reported on the federal individual income tax form related to capital 03 gains attached to a federal individual income tax return. 04 Sec. 43.22.020. Returns and payment of taxes. (a) An individual required to 05 make a return under the provisions of the Internal Revenue Code shall file with the 06 department a return setting out 07 (1) the amount of tax due under this chapter; and 08 (2) other information for the purpose of carrying out the provisions of 09 this chapter that the department requires. 10 (b) The return shall either be on oath or contain a written declaration that it is 11 made under penalty of perjury, and the department shall prescribe forms accordingly. 12 (c) The total amount of tax imposed by this chapter is due and payable to the 13 department at the same time and in the same manner as the tax payable to the United 14 States Internal Revenue Service. 15 (d) A taxpayer, upon request by the department, shall furnish to the 16 department a true and correct copy of the tax return that the taxpayer has filed with the 17 United States Internal Revenue Service. Every taxpayer shall notify the department in 18 writing of an alteration in, or modification of, the taxpayer's federal income tax return 19 and of a recomputation of tax or determination of deficiency, whether with or without 20 assessment. A full statement of the facts must accompany this notice. The taxpayer 21 shall file the notice within 60 days after the final determination of the alteration, 22 modification, recomputation, or deficiency, and the taxpayer shall pay the additional 23 tax under this chapter. For purposes of this subsection, a final determination means the 24 time that an amended federal return is filed or a notice of deficiency or an assessment 25 is mailed to the taxpayer by the Internal Revenue Service, and the taxpayer has 26 exhausted rights of appeal under federal law. 27 (e) The department may credit or refund overpayments of taxes, taxes 28 erroneously or illegally assessed or collected, penalties collected without authority, 29 and taxes that are found unjustly assessed or excessive in amount, or otherwise 30 wrongfully collected. The department shall set limitations, specify the manner in 31 which claims for credits or refunds are made, and give notice of allowance or 01 disallowance. When a refund is allowed to a taxpayer, it shall be paid out of the 02 general fund on a warrant issued under a voucher approved by the department. 03 Sec. 43.22.030. Income from sources in the state. (a) For purposes of 04 AS 43.22.010(a), income from a source in the state includes 05 (1) compensation for personal services rendered in the state; 06 (2) salary or wages earned in the state; 07 (3) income from real or tangible personal property located in the state; 08 (4) income from stocks, bonds, notes, bank deposits, and other 09 intangible personal property having a taxable or business situs in the state; however, 10 the receipt of interest income from intangible property in the state does not alone 11 establish a taxable or business situs in the state; 12 (5) rentals and royalties for the use of or for the privilege of using, in 13 the state, patents, copyrights, secret processes and formulas, good will, marks, trade 14 brands, franchises, and other property having a taxable or business situs in the state; 15 (6) income distributed from a trust established under or governed by 16 the laws of the state; 17 (7) income from a source with a taxable or business situs in the state of 18 (A) a trust not established under or governed by the laws of the 19 state; or 20 (B) the estate of a decedent who on the date of death was not 21 domiciled in the state; 22 (8) income of whatever nature from a source with a taxable or business 23 situs in the state. 24 (b) In (a) of this section, income is from a source with a taxable or business 25 situs in the state if it is attributed to or derived from 26 (1) business facilities or property in the state; 27 (2) business, farming, or fishing activities in the state; 28 (3) conducting in the state the management or investment function for 29 intangible property; 30 (4) a partnership, limited liability company, estate, or trust conducting 31 business activities in the state; 01 (5) a corporation transacting business activities in the state that has 02 elected to file federal returns under subchapter S of the Internal Revenue Code; 03 (6) any other activity from which income is received, realized, or 04 derived in the state. 05 (c) For purposes of (a) of this section, if a business, trade, or profession is 06 carried on partly inside and partly outside the state, other than the rendering of purely 07 personal services by an individual, the income from sources in the state shall be 08 determined as provided in AS 43.19. 09 (d) For purposes of AS 43.22.010(b), long-term capital gains shall be reported 10 from all property, regardless of the location of the property. 11 Sec. 43.22.035. Credit for taxes paid. (a) A resident is entitled to a credit 12 against the tax liability under this chapter for the amount of tax paid to other states, 13 territories, or possessions of the United States on income derived from sources in 14 those jurisdictions that is also subject to tax in this chapter. 15 (b) The claim for credit under (a) of this section may include tax paid by an S 16 corporation or partnership on behalf of the individual, based on that individual's share 17 of income derived in the other jurisdiction. In this subsection, "S corporation" has the 18 meaning given in 26 U.S.C. 1361. 19 (c) The credit allowed under this section may not exceed an amount equal to 20 the tax imposed under this chapter multiplied by a ratio equal to federal adjusted gross 21 income derived from sources in the other jurisdiction divided by total federal adjusted 22 gross income. 23 (d) The application of the tax credit provided under this section may not 24 operate to reduce the tax payable under this chapter to an amount less than would have 25 been payable if the income from the other state was disregarded.  26 Sec. 43.22.040. Permanent fund refundable tax credit. (a) An individual 27 eligible for an income tax credit under AS 43.23.005 may apply a tax credit against the 28 tax due under this chapter in the amount determined under AS 43.23, less any 29 garnishment, levy, assignment, attachment, or other claim, reduction, or donation 30 allowed by law. 31 (b) The tax credit under this section shall be refundable. The department shall 01 adopt regulations that establish procedures for an individual to be reimbursed under 02 AS 37.25.050(a)(2). To receive a refund under this section, an individual must file an 03 income tax return under AS 43.22.020. 04 (c) Except as otherwise limited by law, if an individual is eligible for a tax 05 credit under this section but fails to file an income tax return or fails to claim the tax 06 credit, the individual may file a return or an amended return for that year. 07 Sec. 43.22.050. Tax withholding on wages of individuals. (a) Every 08 employer making payment of wages, salaries, or crew shares 09 (1) shall deduct and withhold an amount of tax computed in a manner 10 to approximate the amount of tax due on those wages, salaries, or crew shares under 11 this chapter for that calendar year; 12 (2) shall remit the tax withheld to the department accompanied by a 13 return on a form prescribed by the department at the times required by the department 14 by regulation; 15 (3) is liable for the payment of the tax required to be deducted and 16 withheld under this section but is not liable to any individual for the amount of the 17 payment; and 18 (4) shall furnish to the employee on or before January 31 of the 19 succeeding year, or within 30 days after a request by the employee after the 20 employee's termination if the 30-day period ends before January 31, a written 21 statement on a form prescribed by the department showing 22 (A) the name and taxpayer identification number of the 23 employer; 24 (B) the name and social security number of the employee; 25 (C) the total amount of wages, salary, or crew shares for the 26 calendar year; and 27 (D) the total amount deducted and withheld as tax under this 28 chapter for the calendar year. 29 (b) The department shall publish the rate of withholding required by this 30 section. 31 (c) In this section, 01 (1) "employee" includes an individual who receives compensation on a 02 crew share basis in connection with a commercial fishing activity; 03 (2) "employer" includes a person who pays compensation to an 04 individual on a crew share basis in connection with a commercial fishing activity. 05 Sec. 43.22.055. Refunds. Notwithstanding AS 43.05.230, information on an 06 individual income tax return may be released to a banking institution to verify the 07 direct deposit of an income tax refund or correct an error in that deposit. 08 Sec. 43.22.060. Administration. The department shall prescribe all necessary 09 forms and adopt regulations to implement and interpret this chapter, including 10 regulations for the online filing and payment of tax due under this chapter. The 11 department may incorporate into the regulations provisions of the Internal Revenue 12 Code that are necessary or useful to the administration of this chapter. 13 Sec. 43.22.190. Definitions. In this chapter, 14 (1) "domiciled" means established in a true principal permanent home 15 to which the individual has the intention of returning whenever absent; 16 (2) "individual" means a natural person, married or unmarried, adult or 17 minor, subject to payment of income tax under 26 U.S.C. (Internal Revenue Code); 18 (3) "Internal Revenue Code" means the Internal Revenue Code of the 19 United States (26 U.S.C.) as the code exists now or as hereafter amended, as the code 20 and amendments apply to the normal taxes and surtax on net incomes, which 21 amendments are operative for the purposes of this chapter as of the time they became 22 operative or will become operative under federal law; 23 (4) "nonresident" means an individual who is not a resident; 24 (5) "resident" means an individual who 25 (A) was domiciled in the state or resided in the state for the 26 entire calendar year; 27 (B) claims to be a resident of the state on the individual's 28 federal tax forms; 29 (C) receives a permanent fund refundable income tax credit 30 under AS 43.23; 31 (D) is registered to vote under AS 15; or 01 (E) received a resident fishing, hunting, or trapping license 02 during the calendar year under AS 16; 03 (6) "taxpayer" means a person subject to a tax imposed by this chapter. 04  * Sec. 25. AS 43.23.005(a) is amended to read: 05 (a) An individual is eligible to receive one permanent fund refundable  06 income tax credit [DIVIDEND] each year in an amount to be determined under 07 AS 43.23.025 if the individual 08 (1) applies to the department; 09 (2) is a state resident on the date of application; 10 (3) was a state resident during the entire qualifying year; 11 (4) has been physically present in the state for at least 72 consecutive 12 hours at some time during the prior two years before the current refundable income  13 tax credit [DIVIDEND] year; 14 (5) is 15 (A) a citizen of the United States; 16 (B) an alien lawfully admitted for permanent residence in the 17 United States; 18 (C) an alien with refugee status under federal law; or 19 (D) an alien that has been granted asylum under federal law; 20 (6) was, at all times during the qualifying year, physically present in 21 the state or, if absent, was absent only as allowed in AS 43.23.008; and 22 (7) was in compliance during the qualifying year with the military 23 selective service registration requirements imposed under 50 U.S.C. App. 453 24 (Military Selective Service Act), if those requirements were applicable to the 25 individual, or has come into compliance after being notified of the lack of compliance. 26  * Sec. 26. AS 43.23.005(c) is amended to read: 27 (c) A parent, guardian, or other authorized representative may claim a 28 permanent fund refundable income tax credit [DIVIDEND] on behalf of an 29 unemancipated minor or on behalf of a disabled or an incompetent individual who is 30 eligible to receive a payment under this section. Notwithstanding (a)(2) - (4) of this 31 section, a minor is eligible for a refundable income tax credit [A DIVIDEND] if, 01 during the two calendar years immediately preceding the current refundable income  02 tax credit [DIVIDEND] year, the minor was born to or adopted by an individual who 03 is eligible for a refundable income tax credit [A DIVIDEND] for the current 04 refundable income tax credit [DIVIDEND] year. 05  * Sec. 27. AS 43.23.005(d) is amended to read: 06 (d) Notwithstanding the provisions of (a) - (c) of this section, an individual is 07 not eligible for a permanent fund refundable income tax credit [DIVIDEND] for a  08 refundable income tax credit [A DIVIDEND] year when 09 (1) during the qualifying year, the individual was sentenced as a result 10 of conviction in this state of a felony; 11 (2) during all or part of the qualifying year, the individual was 12 incarcerated as a result of the conviction in this state of a 13 (A) felony; or 14 (B) misdemeanor if the individual has been convicted of 15 (i) a prior felony as defined in AS 11.81.900; or 16 (ii) two or more prior misdemeanors as defined in 17 AS 11.81.900. 18  * Sec. 28. AS 43.23.005(h) is amended to read: 19 (h) If an individual who would otherwise have been eligible for a permanent 20 fund refundable income tax credit [DIVIDEND] dies after applying for the 21 refundable income tax credit [DIVIDEND] but before the refundable income tax  22 credit [DIVIDEND] is used against a tax due [PAID], the [DEPARTMENT SHALL 23 PAY THE DIVIDEND TO A] personal representative of the estate or [TO] a 24 successor claiming personal property under AS 13.16.680 may apply the credit  25 against the tax due of the deceased person. If an individual who would otherwise 26 have been eligible for the refundable income tax credit [A DIVIDEND] and who did 27 not apply for the refundable income tax credit [DIVIDEND] dies during the 28 application period, a personal representative of the estate or a successor claiming 29 personal property under AS 13.16.680 may apply for and receive the income tax  30 credit for use against the deceased person's tax liability [DIVIDEND]. If an 31 individual who received a refundable income tax credit [A DIVIDEND] for the year 01 immediately before the qualifying year and who would otherwise have been eligible 02 for a refundable income tax credit [A DIVIDEND] dies during the qualifying year 03 after having been a state resident for at least 180 days immediately before the date of 04 death, notwithstanding (a)(1) - (3) and (a)(6) of this section, a personal representative 05 of the estate or a successor claiming personal property under AS 13.16.680 may apply 06 for and receive the refundable income tax credit [DIVIDEND]. Notwithstanding 07 AS 43.23.011, an application for the refundable income tax credit [A DIVIDEND] 08 may be filed by the personal representative or the successor under this subsection at 09 any time before the end of the application period for the next refundable income tax  10 credit [DIVIDEND] year. 11  * Sec. 29. AS 43.23.008(a) is amended to read: 12 (a) Subject to (b) and (d) of this section, an otherwise eligible individual who is 13 absent from the state during the qualifying year remains eligible for a current year 14 permanent fund refundable income tax credit [DIVIDEND] if the individual was 15 absent 16 (1) receiving secondary or postsecondary education on a full-time 17 basis; 18 (2) receiving vocational, professional, or other specific education on a 19 full-time basis for which, as determined by the Alaska Commission on Postsecondary 20 Education, a comparable program is not reasonably available in the state; 21 (3) serving on active duty as a member of the armed forces of the 22 United States or accompanying, as that individual's spouse, minor dependent, or 23 disabled dependent, an individual who is 24 (A) serving on active duty as a member of the armed forces of 25 the United States; and 26 (B) eligible for a current year refundable income tax credit 27 [DIVIDEND]; 28 (4) serving under foreign or coastal articles of employment aboard an 29 oceangoing vessel of the United States merchant marine; 30 (5) receiving continuous medical treatment recommended by a licensed 31 physician or convalescing as recommended by the physician who treated the illness if 01 the treatment or convalescence is not based on a need for climatic change; 02 (6) providing care for a parent, spouse, sibling, child, or stepchild with 03 a critical life-threatening illness whose treatment plan, as recommended by the 04 attending physician, requires travel outside the state for treatment at a medical 05 specialty complex; 06 (7) providing care for the individual's terminally ill family member; 07 (8) settling the estate of the individual's deceased parent, spouse, 08 sibling, child, or stepchild, provided the absence does not exceed 220 cumulative days; 09 (9) serving as a member of the United States Congress; 10 (10) serving on the staff of a member from this state of the United 11 States Congress; 12 (11) serving as an employee of the state in a field office or other 13 location; 14 (12) accompanying a minor who is absent under (5) of this subsection; 15 (13) accompanying another eligible resident who is absent for a reason 16 permitted under (1), (2), (5) - (12), (16), or (17) of this subsection as the spouse, minor 17 dependent, or disabled dependent of the eligible resident; 18 (14) serving as a volunteer in the federal peace corps program; 19 (15) because of training or competing as a member of the United States 20 Olympic Team or a United States national team for an Olympic sport; 21 (16) participating for educational purposes in a student fellowship 22 sponsored by the United States Department of Education or by the United States 23 Department of State; 24 (17) for any reason consistent with the individual's intent to remain a 25 state resident, provided the absence or cumulative absences do not exceed 26 (A) 180 days in addition to any absence or cumulative absences 27 claimed under (3) of this subsection if the individual is not claiming an absence 28 under (1), (2), or (4) - (16) of this subsection; 29 (B) 120 days in addition to any absence or cumulative absences 30 claimed under (1) - (3) of this subsection if the individual is not claiming an 31 absence under (4) - (16) of this subsection but is claiming an absence under (1) 01 or (2) of this subsection; or 02 (C) 45 days in addition to any absence or cumulative absences 03 claimed under (1) - (16) of this subsection if the individual is claiming an 04 absence under (4) - (16) of this subsection. 05  * Sec. 30. AS 43.23.011 is amended to read: 06 Sec. 43.23.011. Application period. (a) An application for a permanent fund 07 refundable income tax credit [DIVIDEND] shall be filed during the period that 08 begins January 1 and ends March 31 of that refundable income tax credit 09 [DIVIDEND] year. 10 (b) An otherwise eligible individual may apply for a current year refundable  11 income tax credit [DIVIDEND] after March 31 of that year if the individual was 12 eligible during the application period under (a) of this section for hostile fire or 13 imminent danger pay while serving on active duty as a member of the armed forces of 14 the United States. The individual must apply under this subsection within 90 days after 15 the last day the individual was eligible for hostile fire or imminent danger pay. If the 16 individual was eligible for hostile fire or imminent danger pay on March 31 of the 17 current refundable income tax credit [DIVIDEND] year, the 90-day application 18 period extension begins on the first day after March 31 that the individual was no 19 longer eligible for the pay. 20 (c) The commissioner may permit an individual to apply for a permanent fund 21 refundable income tax credit [DIVIDEND] for any year after the application 22 deadline under (a) or (b) of this section if the individual 23 (1) at any time during the application period for that refundable  24 income tax credit [DIVIDEND] established in (a) or (b) of this section, 25 (A) served on active duty as a member of the armed forces of 26 the United States; and 27 (B) was eligible for hostile fire or imminent danger pay; and 28 (2) demonstrates a reasonable cause for the delay in applying for that 29 refundable income tax credit [DIVIDEND]. 30  * Sec. 31. AS 43.23.015(a) is amended to read: 31 (a) The commissioner shall adopt regulations under AS 44.62 (Administrative  01 Procedure Act) [THE ADMINISTRATIVE PROCEDURE ACT (AS 44.62)] for 02 determining the eligibility of an individual [INDIVIDUALS] for a permanent fund 03 refundable income tax credit [DIVIDENDS]. The commissioner may require an 04 individual to provide proof of eligibility, and the commissioner may use other 05 information available from other state departments or agencies to determine the 06 eligibility of an individual. The commissioner shall consider all relevant circumstances 07 in determining the eligibility of an individual. However, the residency of an 08 individual's spouse may not be the principal factor relied on [UPON] by the 09 commissioner in determining the residency of the individual. 10  * Sec. 32. AS 43.23.015(b) is amended to read: 11 (b) The department shall prescribe and furnish an application form for claiming 12 a permanent fund refundable income tax credit [DIVIDEND]. The application must 13 include notice of the penalties provided for under AS 43.05, AS 43.10, and 14 AS 43.23.035 and contain a statement of eligibility and a certification of residency. 15  * Sec. 33. AS 43.23.015(c) is amended to read: 16 (c) Except as provided in (d) of this section or as may be provided by 17 regulations adopted by the department, an individual must personally sign the 18 application for a permanent fund refundable income tax credit [DIVIDENDS], 19 including the certification of residency required under (b) of this section. 20  * Sec. 34. AS 43.23.015(e) is amended to read: 21 (e) If a public agency receives [CLAIMS] a refund resulting from a 22 permanent fund refundable income tax credit [DIVIDEND] on behalf of an 23 individual, the public agency shall hold the refund [DIVIDEND] in trust for the 24 individual. Money held in trust under this subsection shall be invested by the 25 commissioner in accordance with AS 37.10.070. 26  * Sec. 35. AS 43.23.015(f) is amended to read: 27 (f) A minor or a disabled or an incompetent individual may not maintain a 28 claim against the state or an officer or employee of the state based on the manner in 29 which the parent, guardian, or authorized representative other than a public agency of 30 the state managed or disposed of a permanent fund refundable income tax credit  31 refund [DIVIDENDS] received on behalf of the minor or disabled or incompetent 01 individual. 02  * Sec. 36. AS 43.23.015(g) is amended to read: 03 (g) If an individual is aggrieved by a decision of the department determining 04 the individual's eligibility for a permanent fund refundable income tax credit 05 [DIVIDEND] or the individual's authority to claim a permanent fund refundable  06 income tax credit [DIVIDEND] on behalf of another, the individual may, upon 07 payment of a $25 appeal fee, request the department to review its decision. Within 12 08 months after the administrative appeal is filed, the department shall provide the 09 individual with a final written decision. If the individual is aggrieved by the decision 10 of the department after all administrative proceedings, the individual may appeal that 11 decision to the superior court in accordance with AS 44.62.560. An appeal to the court 12 under this section does not entitle the aggrieved individual to a trial de novo. The 13 appeal shall be based on the record of the administrative proceeding from which 14 appeal is taken and the scope of appeal is limited to matters contained in the record of 15 the administrative proceeding. If, as a result of an administrative proceeding or a court 16 appeal, the individual prevails, the $25 appeal fee shall be returned to the individual 17 by the department. 18  * Sec. 37. AS 43.23.015(h) is amended to read: 19 (h) The penalty and enforcement provisions of AS 43.23.035 apply to an 20 individual who claims a permanent fund refundable income tax credit [DIVIDEND] 21 on behalf of another. 22  * Sec. 38. AS 43.23.015(j) is amended to read: 23 (j) The application form for claiming a permanent fund refundable income  24 tax credit [DIVIDEND] must include a place for the applicant to voluntarily indicate 25 that the applicant is a veteran, the branch of service, including the Alaska Territorial 26 Guard, and the dates of service. Notwithstanding AS 43.23.017, the department shall 27 release information provided under this subsection to the Department of Military and 28 Veterans' Affairs and may not otherwise release the information. The Department of 29 Military and Veterans' Affairs may only release the information to congressionally 30 chartered veterans service organizations in the state. The application form must 31 contain notice that providing the information under this subsection is voluntary, that 01 the information will be released as provided in this subsection, and that the veterans 02 service organizations are not required to keep it confidential. 03  * Sec. 39. AS 43.23.016 is amended to read: 04 Sec. 43.23.016. Voter registration. The commissioner shall include, at the 05 department's expense, voter registration forms prepared under AS 15.07.070(b) in the 06 permanent fund refundable income tax credit [DIVIDEND] application packet. The 07 forms must include a notice that an individual is not required to register to vote in 08 order to be eligible to receive a permanent fund refundable income tax credit 09 [DIVIDEND]. For purposes of maintaining accurate voter registration records, the 10 commissioner shall provide the director of elections with the mailing addresses of all 11 applicants for a permanent fund refundable income tax credit [DIVIDEND]. 12  * Sec. 40. AS 43.23.017 is amended to read: 13 Sec. 43.23.017. Applicant information confidential. (a) Information on each 14 permanent fund refundable income tax credit [DIVIDEND] application, except the 15 applicant's name, is confidential. The department may only release information that is 16 confidential under this section 17 (1) to a local, state, or federal government agency; 18 (2) in compliance with a court order; 19 (3) to the individual who or agency that files an application on behalf of 20 another; 21 (4) [TO A BANKING INSTITUTION TO VERIFY THE DIRECT 22 DEPOSIT OF A PERMANENT FUND DIVIDEND OR CORRECT AN ERROR IN 23 THAT DEPOSIT; (5)] as directed to do so by the applicant; and 24 (5) [(6)] to a contractor who has a contract with a person entitled to 25 obtain the information under (1) - (4) [(1) - (5)] of this subsection [SECTION] to 26 receive, store, or manage the information on that person's behalf; a contractor 27 receiving data under this paragraph may only use the data as directed by and for the 28 purposes of the person entitled to obtain the information. 29 (b) Notwithstanding (a) of this section, the department may release the names 30 and addresses of permanent fund refundable income tax credit [DIVIDEND] 31 applicants to a legislator of this state and to the legislator's office staff for official 01 legislative purposes. 02  * Sec. 41. AS 43.23.021(a) is amended to read: 03 (a) Notwithstanding other provisions regarding the eligibility of an individual  04 for a [PAYMENT OF] permanent fund refundable income tax credit 05 [DIVIDENDS], if an individual is required to register as a sex offender or child 06 kidnapper under AS 12.63 and has not registered or has not completed the required 07 periodic verifications or notices required under AS 12.63, eligibility for the  08 refundable income tax credit [PAYMENT OF THE DIVIDEND] for that individual 09 shall be delayed. 10  * Sec. 42. AS 43.23.021(b) is amended to read: 11 (b) If eligibility for the refundable income tax credit [PAYMENT OF A 12 DIVIDEND] is delayed, the department shall notify the individual in writing of the 13 delayed eligibility [PAYMENT] status, explain the requirements of this section, and 14 request proof of registration and compliance with the verifications and notices 15 required under AS 12.63. The refundable income tax credit [DIVIDEND] may not 16 be applied against an individual's taxes [PAID] unless, within one year after the 17 notification, the department determines that the individual has registered and is in 18 compliance with the verifications and notices required under AS 12.63. 19  * Sec. 43. AS 43.23.021(c) is amended to read: 20 (c) The permanent fund refundable income tax credit [DIVIDEND] of an 21 individual for whom eligibility [PAYMENT] has been delayed, but that remains 22 eligible [PAYABLE] under (b) of this section, is subject to levy, execution, 23 garnishment, attachment, or any other remedy for the collection of debt. The 24 department shall immediately disburse [PAY] that portion of the refundable income  25 tax credit [DIVIDEND, OR THE PORTION OF IT] that has been claimed by a 26 debtor, as provided in AS 43.23.065 - 43.23.068. 27  * Sec. 44. AS 43.23.021(d) is amended to read: 28 (d) If an individual for whom payment of a permanent fund refundable  29 income tax credit [DIVIDEND] has been delayed but remains eligible [PAYABLE] 30 under (b) of this section dies before the refundable income tax credit [DIVIDEND] 31 is applied against tax due [PAID OR PAYABLE], the department shall allow [PAY 01 THE DIVIDEND TO] a personal representative of the individual's estate to apply the  02 refundable income tax credit against the income tax due against the individual's  03 estate. 04  * Sec. 45. AS 43.23.021(e) is amended to read: 05 (e) The department shall include notice with the refundable income tax credit 06 [DIVIDEND] application form of the requirements of (a) and (b) of this section. 07  * Sec. 46. AS 43.23.025(a) is amended to read: 08 (a) By October 1 of each year, the commissioner shall determine the value of 09 each permanent fund refundable income tax credit [DIVIDEND] for that year by 10 (1) determining the total amount available for refundable income tax  11 credits [DIVIDEND PAYMENTS], which equals 12 (A) the amount of income of the Alaska permanent fund 13 transferred to the refundable income tax credit [DIVIDEND] fund under 14 AS 37.13.145(b) during the current year; 15 (B) plus the unexpended and unobligated balances of prior 16 fiscal year appropriations that lapse into the refundable income tax credit 17 [DIVIDEND] fund under AS 43.23.045(d); 18 (C) less the amount necessary to account for [PAY] prior year 19 tax credits [DIVIDENDS] from the refundable income tax credit 20 [DIVIDEND] fund in the current year under AS 43.23.005(h), 43.23.021, and 21 43.23.055(3) and (7); 22 (D) less the amount necessary to provide refundable income  23 tax credits [PAY DIVIDENDS] from the refundable income tax credit 24 [DIVIDEND] fund due to eligible applicants who, as determined by the 25 department, filed for a previous year's refundable income tax credit 26 [DIVIDEND] by the filing deadline but who were not included in a previous 27 year's refundable income tax credit [DIVIDEND] computation; 28 (E) less appropriations from the refundable income tax credit 29 [DIVIDEND] fund during the current year, including amounts to pay costs of 30 administering the refundable income tax credit [DIVIDEND] program and 31 the hold harmless provisions of AS 43.23.075; 01 (2) determining the number of individuals eligible to receive a  02 refundable income tax credit [A DIVIDEND PAYMENT] for the current year and 03 the number of estates and successors eligible to receive a refundable income tax  04 credit [A DIVIDEND PAYMENT] for the current year under AS 43.23.005(h); and 05 (3) dividing the amount determined under (1) of this subsection by the 06 amount determined under (2) of this subsection. 07  * Sec. 47. AS 43.23.025 is amended by adding a new subsection to read: 08 (c) A refundable income tax credit calculated under (a) of this section may not 09 be issued in excess of $1,200 for each individual. If a refundable income tax credit 10 calculated under (a) of this section exceeds $1,200 for each individual, the amount in 11 excess of $1,200 for each individual shall be appropriated to the general fund. 12  * Sec. 48. AS 43.23.028(a) is amended to read: 13 (a) By October 1 of each year, the commissioner shall give public notice of the 14 value of each permanent fund refundable income tax credit [DIVIDEND] for that 15 year and notice of the information required to be disclosed under (3) of this 16 subsection. In addition, the notice [STUB ATTACHED TO EACH INDIVIDUAL 17 DIVIDEND DISBURSEMENT ADVICE] must 18 (1) disclose the amount of each refundable income tax credit 19 [DIVIDEND] attributable to income earned by the permanent fund from deposits to 20 that fund required under art. IX, sec. 15, Constitution of the State of Alaska; 21 (2) disclose the amount of each refundable income tax credit 22 [DIVIDEND] attributable to income earned by the permanent fund from 23 appropriations to that fund and from amounts added to that fund to offset the effects of 24 inflation; 25 (3) disclose the amount by which each refundable income tax credit 26 [DIVIDEND] has been reduced due to each appropriation from the refundable  27 income tax credit [DIVIDEND] fund, including amounts to pay the costs of 28 administering the refundable income tax credit [DIVIDEND] program and the hold 29 harmless provisions of AS 43.23.075; 30 (4) include a statement that an individual is not eligible for a  31 refundable income tax credit [A DIVIDEND] when 01 (A) during the qualifying year, the individual was convicted of a 02 felony; 03 (B) during all or part of the qualifying year, the individual was 04 incarcerated as a result of the conviction of a 05 (i) felony; or 06 (ii) misdemeanor if the individual has been convicted of 07 a prior felony or two or more prior misdemeanors; 08 (5) include a statement that the legislative purpose for making 09 individuals listed under (4) of this subsection ineligible is to 10 (A) obtain reimbursement for some of the costs imposed on the 11 state criminal justice system related to incarceration or probation of those 12 individuals; 13 (B) provide funds for services for and payments to crime 14 victims and for grants for the operation of domestic violence and sexual assault 15 programs; 16 (6) disclose the total amount of tax credits that would have been 17 issued [PAID] during the previous fiscal year to individuals who were ineligible to 18 receive refundable income tax credits [DIVIDENDS] under AS 43.23.005(d) if they 19 had been eligible; 20 (7) disclose the total amount appropriated for the current fiscal year 21 under (b) of this section for each of the funds and agencies listed in (b) of this section. 22  * Sec. 49. AS 43.23.028(b) is amended to read: 23 (b) To the extent that amounts appropriated for a fiscal year do not exceed the 24 total amount that would have been applied against individual income taxes [PAID] 25 during the previous fiscal year to individuals who were ineligible to apply the  26 permanent fund refundable income tax credit [RECEIVE DIVIDENDS] under 27 AS 43.23.005(d) or under AS 43.23.021(b) if they had been eligible, the notice 28 requirements of (a)(3) of this section do not apply to appropriations from the 29 refundable income tax credit [DIVIDEND] fund to 30 (1) the crime victim compensation fund established under 31 AS 18.67.162 for payments to crime victims; 01 (2) the Council on Domestic Violence and Sexual Assault established 02 under AS 18.66.010 for grants for the operation of domestic violence and sexual 03 assault programs; 04 (3) the Department of Corrections for incarceration and probation 05 programs; 06 (4) the office of victims' rights; 07 (5) nonprofit victims' rights organizations for grants for services to 08 crime victims; or 09 (6) the Department of Revenue for grants to minor children of 10 incarcerated individuals under a grant program established by regulations of the 11 Department of Revenue under AS 44.62 (Administrative Procedure Act). 12  * Sec. 50. AS 43.23.035(a) is amended to read: 13 (a) In addition to any criminal penalties imposed by state law, if an individual 14 is convicted of a crime in connection with a false statement made in a certification 15 required under AS 43.23.015, and the conviction is not reversed, that individual 16 forfeits eligibility for all permanent fund refundable income tax credits issued to  17 the individual [DIVIDENDS PAID] and is not eligible for a future permanent fund 18 refundable income tax credit [DIVIDEND]. 19  * Sec. 51. AS 43.23.035(c) is amended to read: 20 (c) In addition to any criminal penalties imposed by state law, if the 21 department finds that an individual, in claiming a permanent fund refundable income  22 tax credit [DIVIDEND], or an individual, in certifying another person's eligibility, 23 willfully misrepresents, exercises gross negligence with respect to, or recklessly 24 disregards a material fact pertaining to, eligibility, the department may issue an order 25 against the individual for the 26 (1) forfeiture of the refundable income tax credit [DIVIDEND]; 27 (2) imposition of a civil fine of up to $3,000; and 28 (3) loss of eligibility to receive the next five refundable income tax  29 credits [DIVIDENDS] following the forfeited refundable income tax credit 30 [DIVIDEND]. 31  * Sec. 52. AS 43.23.045(a) is amended to read: 01 (a) The refundable income tax credit [DIVIDEND] fund is established as a 02 separate fund in the state treasury. The refundable income tax credit [DIVIDEND] 03 fund shall be administered by the commissioner and shall be invested by the 04 commissioner in the same manner as provided in AS 37.10.070. 05  * Sec. 53. AS 43.23.045(d) is amended to read: 06 (d) Unless specified otherwise in an appropriation act, the unexpended and 07 unobligated balance of an appropriation to implement this chapter lapses into the 08 refundable income tax credit [DIVIDEND] fund on June 30 of the fiscal year for 09 which the appropriation was made and shall be used in determining the amount of and 10 paying the subsequent year's refundable income tax credit [DIVIDEND] as provided 11 in AS 43.23.025(a)(1)(B). 12  * Sec. 54. AS 43.23.055 is amended to read: 13 Sec. 43.23.055. Duties of the department. The department shall 14 (1) annually administer [PAY] permanent fund refundable income  15 tax credit [DIVIDENDS] from the refundable income tax credit [DIVIDEND] 16 fund; 17 (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 18 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 19 and time limits for claiming a permanent fund refundable income tax credit 20 [DIVIDEND]; the department shall determine the number of eligible applicants by 21 October 1 of the year for which the refundable income tax credit [DIVIDEND] is 22 declared and administer the application of [PAY] the refundable income tax  23 credits for the subsequent tax [DIVIDENDS BY DECEMBER 31 OF THAT] year; 24 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 25 that establish procedures and time limits for an individual upon emancipation or upon 26 reaching majority to apply for a permanent fund refundable income tax credit 27 [DIVIDENDS] not received during minority because the parent, guardian, or other 28 authorized representative did not apply on behalf of the individual; 29 (4) assist residents of the state, particularly in rural areas, who because 30 of language, disability, or inaccessibility to public transportation need assistance to 31 establish eligibility and to apply for a permanent fund refundable income tax credit 01 [DIVIDENDS]; 02 (5) use a list of individuals ineligible for a refundable income tax  03 credit [A DIVIDEND] under AS 43.23.005(d) provided annually by the Department 04 of Corrections and the Department of Public Safety to determine the number and 05 identity of those individuals; 06 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 07 (7) adopt regulations that establish procedures for the parent, guardian, 08 or other authorized representative of a disabled individual to apply for a prior year 09 permanent fund refundable income tax credit [DIVIDENDS] not received by the 10 disabled individual because no application was submitted on behalf of the individual; 11 (8) adopt regulations that establish procedures for an individual to 12 apply a refundable income tax credit to previous tax years [TO HAVE A 13 DIVIDEND DISBURSEMENT UNDER AS 37.25.050(a)(2) REISSUED] if it is not 14 applied [COLLECTED] within two years after the date of its issuance; however, the 15 department may not establish a time limit [WITHIN WHICH AN APPLICATION] to 16 apply a back tax credit [HAVE A DISBURSEMENT REISSUED MUST BE 17 FILED]; 18 (9) provide any information, upon request, contained in permanent fund 19 refundable income tax credit [DIVIDEND] records to the child support services 20 agency created in AS 25.27.010, or the child support enforcement agency of another 21 state, for child support purposes authorized under law; if the information is contained 22 in an electronic data base, the department shall provide the requesting agency with 23 either 24 (A) access to the data base; or 25 (B) a copy of the information in the data base and a statement 26 certifying its contents; 27 (10) establish a fraud investigation unit for the purpose of assisting the 28 (A) Department of Law in the prosecution of individuals who 29 apply for [OR OBTAIN] a permanent fund refundable income tax credit 30 [DIVIDEND] in violation of a provision in AS 11, by detecting and 31 investigating those crimes; and 01 (B) commissioner to detect and investigate the claiming or 02 application [PAYING] of a permanent fund refundable income tax credit 03 [DIVIDENDS] that should not have been claimed by or applied against the  04 income tax of [PAID TO] an individual and to impose the penalties and 05 enforcement provisions under AS 43.05, AS 43.10, and AS 43.23.035. 06  * Sec. 55. AS 43.23.062(a) is amended to read: 07 (a) Notwithstanding AS 43.23.069, the Department of Revenue shall prepare 08 the electronic [ALASKA] permanent fund refundable income tax credit 09 [DIVIDEND] application to allow an applicant who files electronically to direct that 10 money be subtracted from the refundable income tax credit [DIVIDEND 11 PAYMENT] and contributed to one or more of the educational organizations, 12 community foundations, or charitable organizations that appear on the contribution list 13 contained in the application. A contribution to an organization may be $25, $50, $75, 14 $100, or more, in increments of $50, up to the total amount of the permanent fund 15 refundable income tax credit [DIVIDEND] that the applicant is entitled to receive. If 16 the total amount of contributions elected by an applicant exceeds the amount of the 17 permanent fund refundable income tax credit [DIVIDEND] that the applicant is 18 entitled to receive, contributions shall be deducted from the refundable income tax  19 credit [DIVIDEND] in the order of priority elected by the applicant on the application 20 until the entire amount of the refundable income tax credit [DIVIDEND] that the 21 applicant is entitled to receive is allocated for contribution. The electronic refundable  22 income tax credit [DIVIDEND] application form must include notice that seven 23 percent of the money contributed will be used for administrative costs incurred in 24 implementing this section, and money from the refundable income tax credit 25 [DIVIDEND] fund will not be used for that purpose. 26  * Sec. 56. AS 43.23.062(c) is amended to read: 27 (c) The department may not include a charitable organization, other than a 28 community foundation, on the contribution list for a refundable income tax credit 29 [DIVIDEND] year unless the purpose of the charitable organization is to provide 30 services for youth development, workforce development, arts and culture, aid and 31 services to the elderly, low-income individuals, individuals in emergency situations, 01 victims of crime, disabled individuals, individuals with mental illness, primary, 02 vocational, and higher education, health and dental care, recreational facilities, child 03 abuse and neglect, economic development, food assistance, libraries, public 04 broadcasting, recycling of waste, animal rescue, and zoos. The department may not 05 include on the contribution list an educational organization, community foundation, or 06 charitable organization that is the affiliate of a group. For purposes of this subsection, 07 (1) "affiliate" means an organization or foundation that directly or 08 indirectly through one or more intermediaries controls, is controlled by, or is under 09 common control with, a group; 10 (2) "group" has the meaning given in AS 15.13.400(8)(B). 11  * Sec. 57. AS 43.23.062(d) is amended to read: 12 (d) Except for each campus of the University of Alaska, the department may 13 include an educational organization, community foundation, or charitable organization 14 on the contribution list for a current refundable income tax credit [DIVIDEND] year 15 only if the organization 16 (1) before March 31 of the qualifying year, files an application for 17 inclusion on the list for that refundable income tax credit [DIVIDEND] year on the 18 form required by the department; 19 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 20 Revenue Code) as an educational or a charitable organization on the date of 21 application; 22 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 23 (Internal Revenue Code) as an educational or a charitable organization during the two 24 calendar years that immediately precede the year the application is filed; 25 (4) unless exempted under federal law, has a current Internal Revenue 26 Service Form 990 on file with the United States Department of the Treasury, Internal 27 Revenue Service, or, if the Internal Revenue Service has granted a filing extension for 28 the current year, has on file that form for the immediately preceding year; 29 (5) is directed by a voluntary board of directors or local advisory board, 30 a majority of whose members are residents of the state; 31 (6) if a community foundation, provided in the state aid during the two 01 calendar years that immediately precede the year the application is filed, or, if an 02 education organization or charitable organization, provided in the state services during 03 the two calendar years that immediately precede the year the application is filed; 04 (7) receives at least $100,000 or five percent of its total annual receipts, 05 whichever is less, from contributions; 06 (8) has completed and provided to the department a financial audit with 07 an unqualified opinion conducted by an independent certified public accountant for the 08 fiscal year to which the Internal Revenue Service Form 990 required under (4) of this 09 subsection applies; this paragraph applies only to an organization that is required by 10 the federal government to complete a financial audit by an independent certified 11 public accountant; and 12 (9) does not make grants or contributions to an organization that is 13 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 14  * Sec. 58. AS 43.23.062(e) is amended to read: 15 (e) Unless an appropriation specifically directs that the money be used for 16 costs incurred in implementing this section, the department may not use money from 17 the refundable income tax credit [DIVIDEND] fund for administrative costs 18 incurred in implementing this section, even if it has been appropriated for costs of 19 administering the refundable income tax credit [DIVIDEND] program. 20 Contributions shall be distributed to each organization as soon as practicable. 21  * Sec. 59. AS 43.23.062(h) is amended to read: 22 (h) A public agency that claims a refundable income tax credit [DIVIDEND] 23 on behalf of an individual under AS 43.23.015(e) may not elect to make contributions 24 from the refundable income tax credit [DIVIDEND] under (a) of this section. 25  * Sec. 60. AS 43.23.062(l) is amended to read: 26 (l) The University of Alaska shall apply separately for each of the three main 27 campuses to be listed on the contribution list for the current refundable income tax  28 credit [DIVIDEND] year in the manner prescribed by the department. The University 29 of Alaska may apply for each campus other than the three main campuses to be listed 30 on the contribution list for the current refundable income tax credit [DIVIDEND] 31 year in the manner prescribed by the department. 01  * Sec. 61. AS 43.23.062(m) is amended to read: 02 (m) In addition to the application fee in (f) of this section, the department shall 03 withhold a coordination fee from each organization, foundation, or university campus 04 that receives contributions under this section in the immediately preceding refundable  05 income tax credit [DIVIDEND] year. The coordination fee for an organization, 06 foundation, or university campus that receives contributions under this section shall be 07 seven percent of the amount of contributions reported by the department under (j) of 08 this section for the organization, foundation, or university campus for the immediately 09 preceding refundable income tax credit [DIVIDEND] year. The coordination fee 10 shall be separately accounted for under AS 37.05.142 and shall be accounted for 11 separately from the application fee collected under (f) of this section. The annual 12 estimated balance in the account maintained under AS 37.05.142 for coordination fees 13 collected under this subsection may be appropriated for costs of administering this 14 section. 15  * Sec. 62. AS 43.23.065 is amended to read: 16 Sec. 43.23.065. Exemption of and levy on permanent fund refundable  17 income tax credits [DIVIDENDS]. (a) Except as provided in (b) of this section, 20 18 percent of the annual permanent fund refundable income tax credit that 19 [DIVIDEND PAYABLE TO] an individual is eligible for under AS 43.23.025 is 20 exempt from levy, execution, garnishment, attachment, or any other remedy for the 21 collection of debt. No other exemption applies to a refundable income tax credit 22 [DIVIDEND]. Notwithstanding other laws, a writ of execution upon a refundable  23 income tax credit [DIVIDEND] that has not been delivered to the debtor may be 24 served on the commissioner by 25 (1) certified mail, return receipt requested; or 26 (2) a civilian process server licensed by the commissioner of public 27 safety using electronic execution procedures, as provided under regulations adopted by 28 the department. 29 (b) An exemption is not available under this section for a permanent fund 30 refundable income tax credit [DIVIDENDS] taken to satisfy 31 (1) child support obligations required by court order or decision of the 01 child support services agency under AS 25.27.140 - 25.27.220; 02 (2) court ordered restitution under AS 12.55.045 - 12.55.051, 03 12.55.100, or AS 47.12.120(b)(4); 04 (3) claims on defaulted education loans under AS 43.23.067; 05 (4) court ordered fines; 06 (5) writs of execution under AS 09.35 of a judgment that is entered 07 (A) against a minor in a civil action to recover damages and 08 court costs; 09 (B) under AS 09.65.255 against the parent, parents, or legal 10 guardian of an unemancipated minor; 11 (6) a debt owed by an eligible individual to an agency of the state, 12 including the University of Alaska, unless the debt is contested and an appeal is 13 pending, or the time limit for filing an appeal has not expired; 14 (7) a debt owed to a person for a program for the rehabilitation of 15 perpetrators of domestic violence required under AS 12.55.101, AS 18.66.100(c)(15), 16 AS 25.20.061(3), or AS 33.16.150(f)(2); 17 (8) a judgment for unpaid rent or damage owed to a landlord by an 18 eligible individual that was a tenant of the landlord; in this paragraph, "tenant" has the 19 meaning given in AS 34.03.360. 20 (c) Claims listed in (b) of this section have priority in the order listed over 21 other claims on a permanent fund refundable income tax credit [DIVIDEND] 22 whether payments are sought through legal actions for the collection of debts or 23 through assignments from the debtor. 24 (d) An assignment of or levy, execution, garnishment, attachment, or other 25 remedy for the collection of debt applied to a refundable income tax credit 26 [DIVIDEND] for a year may not be accepted by the department before April 1 of that 27 same year. AS 09.38.080(c) and 09.38.085 do not apply to a levy on a permanent fund 28 refundable income tax credit [DIVIDEND]. Upon receipt of a writ of execution 29 under (a) of this section or another court order, the commissioner shall deliver to the 30 court that portion of the refundable income tax credit [DIVIDEND] executed upon 31 along with the case name and number. At the time payment is made to the court, the 01 department shall send to the individual at the address provided in the individual's 02 refundable income tax credit [DIVIDEND] application and to the court that issued 03 the writ or order a notice that contains 04 (1) notification that all or part of the individual's refundable income  05 tax credit [DIVIDEND] has been seized under a writ of execution or court order; 06 (2) the name and address of the court that issued the writ or order; 07 (3) the case number for which the writ or order was issued; 08 (4) the amount seized under the writ or order; and 09 (5) notification that the individual has 30 days from the date the notice 10 is mailed in which to file with the court an objection to the seizure if a mistake has 11 been made. 12  * Sec. 63. AS 43.23.066(a) is amended to read: 13 (a) AS 09.38 does not apply to a permanent fund refundable income tax  14 credit [DIVIDENDS] taken under AS 47.12.155(c). Notwithstanding AS 09.35, 15 execution on a refundable income tax credit [DIVIDEND] claimed under 16 AS 47.12.155(c) is accomplished by delivering a certified claim to the department 17 containing the following information: 18 (1) the name and social security number of the individual whose 19 refundable income tax credit [DIVIDEND] is being claimed; 20 (2) the amount the individual owes on the reimbursement claim; and 21 (3) a statement that 22 (A) the Department of Health and Social Services has notified 23 the individual that future permanent fund refundable income tax credits 24 [DIVIDENDS] of the individual will be taken to satisfy the reimbursement 25 claim; 26 (B) the individual was notified of the right to request a hearing 27 and allowed 30 days after the date of the notice described in (A) of this 28 paragraph to request the Department of Health and Social Services to hold a 29 hearing on the reimbursement claim; 30 (C) the reimbursement claim has not been contested, or, if 31 contested, that the issue has been resolved in favor of the Department of Health 01 and Social Services; and 02 (D) if the reimbursement claim has been contested and resolved 03 in favor of the Department of Health and Social Services, no appeal is pending, 04 the time limit for filing an appeal has expired, or the appeal has been resolved 05 in favor of the Department of Health and Social Services. 06  * Sec. 64. AS 43.23.066(b) is amended to read: 07 (b) The Department of Health and Social Services shall notify the individual if 08 a refundable income tax credit [DIVIDEND] is claimed under (a) of this section. 09 The notice shall be sent to the address provided in the individual's permanent fund 10 refundable income tax credit [DIVIDEND] application and must provide the 11 following information: 12 (1) the amount of the reimbursement claim; 13 (2) notice that the permanent fund refundable income tax credit 14 [DIVIDEND], or that portion of the permanent fund refundable income tax credit 15 [DIVIDEND] that does not exceed the amount of the reimbursement claim, shall be 16 paid to the Department of Health and Social Services; and 17 (3) notification that the individual has a right to request a hearing and 18 has 30 days after the date the notice is mailed in which to file with the Department of 19 Health and Social Services an objection to the refundable income tax credit 20 [DIVIDEND] claim if a mistake has been made. 21  * Sec. 65. AS 43.23.067(a) is amended to read: 22 (a) AS 09.38 does not apply to a permanent fund refundable income tax  23 credit [DIVIDEND] taken under AS 14.43.145. Notwithstanding AS 09.35, the 24 Alaska Commission on Postsecondary Education may take a permanent fund 25 refundable income tax credit [DIVIDEND] under AS 14.43.145 by delivering a 26 claim to the department certifying the following information: 27 (1) the name and social security number of the individual whose 28 refundable income tax credit [DIVIDEND] is being claimed; 29 (2) the amount the individual owes on a loan awarded under AS 14.43; 30 and 31 (3) a statement that the loan is in default under AS 14.43.145, or, if the 01 individual has requested review of the status of the loan under AS 14.43.145(c), that a 02 final determination has been made that the loan is in default. 03  * Sec. 66. AS 43.23.067(b) is amended to read: 04 (b) The Alaska Commission on Postsecondary Education shall notify the 05 individual of a claim under (a) of this section. The notice shall be sent to the address 06 provided in the individual's permanent fund refundable income tax credit 07 [DIVIDEND] application and must provide the following information: 08 (1) the amount of the claim; 09 (2) notice that the amount of the permanent fund refundable income  10 tax credit [DIVIDEND] up to the amount of the claim shall be paid to the Alaska 11 Commission on Postsecondary Education to be credited against the individual's loan 12 balance; and 13 (3) the individual's right to a hearing under (c) of this section. 14  * Sec. 67. AS 43.23.067(c) is amended to read: 15 (c) Within 30 days after the date of the notice under (b) of this section, the 16 individual may request a hearing. AS 44.62.330 - 44.62.630 apply to a hearing under 17 this section. At the hearing, the borrower has the burden to show that 18 (1) the commission has not sent a notice of default in compliance with 19 AS 14.43.145(b); 20 (2) the notice of default has been rescinded after review under 21 AS 14.43.145(c); or 22 (3) the amount owed by the borrower is less than the amount claimed 23 from the permanent fund refundable income tax credit [DIVIDEND]. 24  * Sec. 68. AS 43.23.068(a) is amended to read: 25 (a) AS 09.38 does not apply to a permanent fund refundable income tax  26 credit [DIVIDENDS] taken under AS 47.05.080(b). Notwithstanding AS 09.35, 27 execution on a refundable income tax credit [DIVIDEND] claimed under 28 AS 47.05.080(b) is accomplished by delivering a certified claim to the department 29 containing the following information: 30 (1) the name and social security number of the individual whose 31 refundable income tax credit [DIVIDEND] is being claimed; 01 (2) the amount the individual owes on the overpayment claim; and 02 (3) a statement that 03 (A) the Department of Health and Social Services has notified 04 the individual that future permanent fund refundable income tax credits 05 [DIVIDENDS] of the individual will be taken to satisfy the overpayment 06 claim; 07 (B) the individual was notified of the right to request a hearing 08 and allowed 30 days from the date of the notice under (A) of this paragraph to 09 request the Department of Health and Social Services to hold a hearing on the 10 overpayment claim; 11 (C) the overpayment claim has not been contested, or, if 12 contested, that the issue has been resolved in favor of the Department of Health 13 and Social Services; and 14 (D) if the overpayment claim has been contested and resolved in 15 favor of the Department of Health and Social Services, no appeal is pending, 16 the time limit for filing an appeal has expired, or the appeal has been resolved 17 in favor of the Department of Health and Social Services. 18  * Sec. 69. AS 43.23.068(b) is amended to read: 19 (b) The Department of Health and Social Services shall notify the individual if 20 a refundable income tax credit [DIVIDEND] is claimed under (a) of this section. 21 The notice shall be sent to the address provided in the individual's permanent fund 22 refundable income tax credit [DIVIDEND] application and must provide the 23 following information: 24 (1) the amount of the overpayment claim; 25 (2) notice that the amount of the permanent fund refundable income  26 tax credit [DIVIDEND] that does not exceed the amount of the overpayment claim 27 shall be paid to the Department of Health and Social Services; and 28 (3) notification that the individual has a right to request a hearing and 29 has 30 days from the date the notice is mailed in which to file with the Department of 30 Health and Social Services an objection to the refundable income tax credit 31 [DIVIDEND] claim if a mistake has been made. 01  * Sec. 70. AS 43.23.069(a) is amended to read: 02 (a) Except as provided in (b) of this section, a person eligible to receive a 03 permanent fund refundable income tax credit [DIVIDEND] may not assign the right 04 to the refundable income tax credit [DIVIDEND]. An attempted assignment of the 05 right to receive a permanent fund refundable income tax credit [DIVIDEND] is 06 against public policy and is void. 07  * Sec. 71. AS 43.23.069(b) is amended to read: 08 (b) A person may assign the right to receive a permanent fund refundable  09 income tax credit [DIVIDEND] to a federal, state, or municipal government agency 10 or to a court. 11  * Sec. 72. AS 43.23.071 is amended to read: 12 Sec. 43.23.071. Fees for processing claims and assignments. The department 13 shall by regulation adopted under AS 44.62 (Administrative Procedure Act) establish 14 fees for processing claims on refundable income tax credits [DIVIDENDS] received 15 by the department under AS 43.23.065, 43.23.067, or 43.23.072 and for processing 16 assignments of refundable income tax credits [DIVIDENDS] received by the 17 department under AS 43.23.069(b). The fees shall cover the administrative expenses 18 of the department associated with the claims and assignments. Fees shall be deducted 19 from the amount of the refundable income tax credit [DIVIDEND] remaining after 20 payment of the portion claimed or assigned, or, if the entire refundable income tax  21 credit [DIVIDEND] is claimed or assigned, the fees shall be deducted before the 22 refundable income tax credit [DIVIDEND] is paid to the creditor or assignee. 23  * Sec. 73. AS 43.23.072(a) is amended to read: 24 (a) AS 09.38 does not apply to a permanent fund refundable income tax  25 credit [DIVIDENDS] taken by the Department of Labor and Workforce Development 26 for a claim for payment of money owed under AS 23.20 (Alaska Employment 27 Security Act). Notwithstanding AS 09.35, execution on a refundable income tax  28 credit [DIVIDEND] claimed under this section is accomplished by delivering a 29 certified claim to the Department of Revenue containing the following information: 30 (1) the name and social security number of the individual whose 31 refundable income tax credit [DIVIDEND] is being claimed; if the Department of 01 Labor and Workforce Development does not have access to the individual's social 02 security number for this purpose, the department may supply other identification 03 information authorized under regulations to make a claim under AS 43.23.065; 04 (2) the amount the individual owes on the claim under AS 23.20; 05 (3) a statement that 06 (A) the Department of Labor and Workforce Development has 07 notified the individual that future permanent fund refundable income tax  08 credits [DIVIDENDS] of the individual will be taken to satisfy the claim 09 under AS 23.20; 10 (B) the individual was notified of the right to request a hearing 11 under AS 23.20 and the Department of Labor and Workforce Development has 12 allowed the individual at least 30 days after the date of the notice described in 13 (A) of this paragraph to request a hearing on the claim; 14 (C) the claim under AS 23.20 has not been contested, or, if 15 contested, the issue has been resolved in favor of the Department of Labor and 16 Workforce Development; and 17 (D) if the claim under AS 23.20 has been contested and 18 resolved in favor of the Department of Labor and Workforce Development, an 19 appeal is not pending, the time limit for filing an appeal has expired, or the 20 appeal has been resolved in favor of the department. 21  * Sec. 74. AS 43.23.072(b) is amended to read: 22 (b) The Department of Labor and Workforce Development shall notify the 23 individual if a refundable income tax credit [DIVIDEND] is claimed under (a) of 24 this section. The notice shall be sent to the mailing address provided in the individual's 25 permanent fund refundable income tax credit [DIVIDEND] application and must 26 provide the following information: 27 (1) the amount of the claim under AS 23.20; 28 (2) notice that the permanent fund refundable income tax credit 29 [DIVIDEND], or that portion of the permanent fund refundable income tax credit 30 [DIVIDEND] that does not exceed the amount of the claim under AS 23.20, shall be 31 paid to the Department of Labor and Workforce Development in accordance with 01 priorities established in state law; 02 (3) notice that the individual has a right to request a hearing and has a 03 specific time after the date that the notice is mailed in which to file with the 04 Department of Labor and Workforce Development an objection to paying the claim 05 from the individual's permanent fund refundable income tax credit [DIVIDEND]. 06  * Sec. 75. AS 43.23.073(a) is amended to read: 07 (a) AS 09.38 does not apply to a permanent fund refundable income tax  08 credit [DIVIDEND] taken under AS 14.40.251. Notwithstanding AS 09.35, the 09 University of Alaska may take a permanent fund refundable income tax credit 10 [DIVIDEND] under AS 14.40.251 by delivering a claim to the department certifying 11 the following information: 12 (1) the name and social security number of the individual whose 13 refundable income tax credit [DIVIDEND] is being claimed; 14 (2) the amount the individual owes the university; and 15 (3) a statement that 16 (A) the amount claimed is in default under AS 14.40.251; 17 (B) the university has notified the individual that future 18 permanent fund refundable income tax credits [DIVIDENDS] will be taken 19 to satisfy the claim; 20 (C) the individual was notified of the right to request a hearing 21 and allowed 30 days after the date of the notice described in (B) of this 22 paragraph to request the university to hold a hearing on the claim; 23 (D) the claim has not been contested or, if contested, the issue 24 has been resolved in favor of the university; and 25 (E) if the claim has been contested and resolved in favor of the 26 university, no appeal is pending, the time limit for filing an appeal has expired, 27 or the appeal has been resolved in favor of the university. 28  * Sec. 76. AS 43.23.073(b) is amended to read: 29 (b) The University of Alaska shall notify the individual of a claim under (a) of 30 this section. The notice shall be sent to the address provided in the individual's 31 permanent fund refundable income tax credit [DIVIDEND] application and must 01 provide the following information: 02 (1) the amount of the claim; 03 (2) notice that the amount of the permanent fund refundable income  04 tax credit [DIVIDEND] up to the amount of the claim shall be paid to the university 05 to be credited against the individual's default balance; and 06 (3) notice of the individual's right to a hearing under (c) of this section. 07  * Sec. 77. AS 43.23.073(c) is amended to read: 08 (c) Within 30 days after the date of the notice under (b) of this section, the 09 individual may request a hearing. AS 44.62.330 - 44.62.630 apply to a hearing under 10 this subsection. At the hearing, the individual has the burden to show that 11 (1) the university has not sent a notice of default in compliance with 12 AS 14.40.251(b); 13 (2) the notice of default has been rescinded after review under 14 AS 14.40.251(c); or 15 (3) the amount owed by the individual is less than the amount claimed 16 from the permanent fund refundable income tax credit [DIVIDEND]. 17  * Sec. 78. AS 43.23.075 is amended to read: 18 Sec. 43.23.075. Eligibility for public assistance. (a) In determining the 19 eligibility of an individual under a public assistance program administered by the 20 Department of Health and Social Services in which eligibility for assistance is based 21 on financial need, the Department of Health and Social Services may not consider a 22 permanent fund refundable income tax credit [DIVIDEND] as income or resources 23 received by the recipient of public assistance or by a member of the recipient's 24 household unless required to do so by federal law or regulation. The Department of 25 Health and Social Services shall notify all recipients of public assistance of the effects 26 of being issued [RECEIVING] a permanent fund refundable income tax credit 27 [DIVIDEND]. 28 (b) An individual who is denied medical assistance under 42 U.S.C. 1396 - 29 1396p (Social Security Act, Title XIX) solely because [OF] the individual was issued 30 [RECEIPT OF] a permanent fund refundable income tax credit [DIVIDEND] by the 31 individual or by a member of the individual's household is eligible for state-funded 01 medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance 02 program). The individual is entitled to receive, for a period not to exceed four months, 03 the same level of medical assistance as the individual would have received under 42 04 U.S.C. 1396 - 1396p (Social Security Act, Title XIX) had there been no permanent 05 fund refundable income tax credit [DIVIDEND] program. 06 (c) An individual who is denied assistance solely because the individual was  07 issued a permanent fund refundable income tax credit [DIVIDENDS] received by 08 the individual or by a member of the individual's household are counted as income or 09 resources under federal law or regulation is eligible for cash assistance under 10 AS 47.25.120 - 47.25.300 (general relief assistance program). Notwithstanding the 11 limit in AS 47.25.130, the individual is entitled to receive, for a period not to exceed 12 four months, the same amount as the individual would have received under other 13 public assistance programs had there been no permanent fund refundable income tax  14 credit [DIVIDEND] program. 15  * Sec. 79. AS 43.23.085 is amended to read: 16 Sec. 43.23.085. Eligibility for state programs. A program administered by 17 the state or any of its instrumentalities or municipalities, the eligibility for which is 18 based on financial need, may not consider a permanent fund refundable income tax  19 credit issued to the individual [DIVIDEND] as income or resources unless required 20 to do so by federal law or regulation. 21  * Sec. 80. AS 43.23.095(3) is amended to read: 22 (3) "refundable income tax credit [DIVIDEND] fund" means the fund 23 established by AS 43.23.045; 24  * Sec. 81. AS 43.23.095(5) is amended to read: 25 (5) "permanent fund refundable income tax credit [DIVIDEND]" 26 means a tax credit issued [RIGHT TO RECEIVE A PAYMENT] from the 27 refundable income tax credit [DIVIDEND] fund and applied against an  28 individual's state income tax; 29  * Sec. 82. AS 45.35.040 is amended to read: 30 Sec. 45.35.040. Prohibited provisions. A lease-purchase agreement may not 31 contain 01 (1) a confession of judgment; 02 (2) a negotiable instrument; 03 (3) a security interest in, or another claim on, real or personal property 04 that is not the subject of the agreement; 05 (4) a wage assignment; 06 (5) an assignment of an Alaska permanent fund refundable income tax  07 credit [DIVIDEND]; 08 (6) a waiver by the consumer of claims or defenses relating to the 09 agreement; 10 (7) a provision authorizing the lessor or a person acting on the lessor's 11 behalf to enter the consumer's premises or to commit a breach of the peace in the 12 repossession of personal property; 13 (8) an agreement by the consumer to pay attorney fees and costs, except 14 as allowed under court rules. 15  * Sec. 83. AS 43.40.092(b) is amended to read: 16 (b) For purposes of this section, 17 (1) the term "resident worker" means an individual who 18 (A) is physically present in the state with the intent to remain in 19 the state indefinitely and has a home in the state; 20 (B) demonstrates that intent by maintaining a residence in the 21 state; 22 (C) possesses a resident fishing, trapping, or hunting license, or 23 receives a permanent fund refundable income tax credit [DIVIDEND]; and 24 (D) may be required to state under oath that the individual is not 25 claiming residency outside of the state or obtaining benefits under a claim of 26 residency outside of the state; 27 (2) the phrases "Alaska-licensed contractors" and "Alaska firms" mean 28 a contractor or firm that 29 (A) has held an Alaska business license for one year before 30 performing any work in connection with the commitment described in (a) of 31 this section; 01 (B) has maintained for one year a place of business within the 02 state that deals in the supplies, services, or construction of the nature required 03 for the commitment described in (a) of this section; and 04 (C) is 05 (i) a sole proprietorship and the proprietor is an Alaska 06 resident; 07 (ii) a partnership and more than 50 percent of the 08 partners are Alaska residents; 09 (iii) a corporation that has been incorporated in the state 10 or is authorized to do business in the state; or 11 (iv) a joint venture composed entirely of ventures that qualify under this 12 subparagraph. 13  * Sec. 84. AS 43.82.230(e)(3) is amended to read: 14 (3) "Alaska resident" means a natural person who 15 (A) is eligible for and applies against a state income tax 16 [RECEIVES] a permanent fund refundable income tax credit [DIVIDEND] 17 under AS 43.23; or 18 (B) is registered to vote under AS 15 and qualifies for a resident 19 fishing, hunting, or trapping license under AS 16; 20  * Sec. 85. AS 44.99.205(c)(3) is amended to read: 21 (3) "program" includes the permanent fund refundable income tax  22 credit [DIVIDEND] program under AS 43.23 and the longevity bonus program under 23 AS 47.45; 24  * Sec. 86. AS 47.05.080(b) is amended to read: 25 (b) The permanent fund refundable income tax credit [DIVIDEND] of a 26 former recipient of a public assistance program listed under (a) of this section may be 27 taken under AS 43.23.065(b)(6) and 43.23.068 to satisfy the balance due on a 28 defaulted overpayment claim. 29  * Sec. 87. AS 47.10.115(a) is amended to read: 30 (a) The department shall annually apply for a permanent fund refundable  31 income tax credit, file an individual income tax return, [DIVIDEND] and retain in 01 trust any refund from an individual income tax return under AS 43.23.015(e) for 02 the benefit of the child the refund [DIVIDEND] and accrued interest on the refund  03 [DIVIDEND] if the child is in the custody of the department when the application is 04 due. 05  * Sec. 88. AS 47.12.155(c) is amended to read: 06 (c) If a court orders a minor's parent or guardian to participate in treatment 07 under (b) of this section, the court also shall order the parent or guardian to use any 08 available insurance or another resource to cover the treatment, or to pay for the 09 treatment if other coverage is unavailable. If the court determines that the parent or 10 guardian is unable to pay for the treatment due to indigence and the department pays 11 for the treatment, the department may seek reimbursement only from the indigent 12 parent's or guardian's permanent fund refundable income tax credit [DIVIDEND]. 13  * Sec. 89. AS 47.12.155(d) is amended to read: 14 (d) The permanent fund refundable income tax credit [DIVIDEND] of an 15 indigent parent or guardian participating in treatment ordered under (b) of this section 16 may be taken under AS 43.23.065(b)(6) and 43.23.066 to satisfy the balance due on a 17 reimbursement claim by the department under (c) of this section. 18  * Sec. 90. AS 47.55.020(d) is amended to read: 19 (d) Notwithstanding AS 47.55.070 and (b) of this section, a resident of a home 20 whose income, assets, and other resources are insufficient to pay the monthly rate set 21 under AS 47.55.030(b), and who does not have private insurance to cover the cost of 22 care, qualifies for payment assistance if the resident is otherwise in compliance with 23 requirements under this chapter. The amount of payment assistance equals the amount 24 needed, when added to other income and assets of the resident, to pay the monthly rate 25 set under AS 47.55.030(b). Payment assistance received by a home resident is a debt 26 to the state. In determining the amount of payment assistance for which a home 27 resident qualifies, the following income, assets, and other resources of the resident 28 shall be disregarded: 29 (1) income from any source in an amount up to $200 a month as 30 established by the department by regulation; 31 (2) the following assets received under 43 U.S.C. 1601 et seq. (Alaska 01 Native Claims Settlement Act): 02 (A) cash dividends and other income equal to at least $2,000 as 03 established by the department by regulation; 04 (B) stock; 05 (C) noncash dividends from stock; and 06 (D) land; 07 (3) a permanent fund refundable income tax credit [DIVIDEND] 08 issued under AS 43.23; 09 (4) compensation to volunteers under the federal retired and senior 10 volunteers (42 U.S.C. 5001), foster grandparents (42 U.S.C. 5011), and senior 11 companion (42 U.S.C. 5013) programs made in accordance with 42 U.S.C. 5044(f); 12 (5) federal World War II restitution payments made under 50 U.S.C. 13 App. 1989b-4 and c-5; 14 (6) payments under AS 18.67 (Violent Crimes Compensation Board); 15 (7) an amount, determined by the department by regulation, that is 16 sufficient for burial expenses of the resident, the resident's spouse, and dependents of 17 the resident; 18 (8) real property being used as the primary residence of the resident's 19 spouse or a dependent of the resident; 20 (9) other real or personal property equal to at least a total value of up to 21 $10,000 as established by the department by regulation; 22 (10) federal payments that are excluded by law from income for federal 23 assistance purposes. 24  * Sec. 91. AS 09.38.015(a)(9); AS 43.05.085; AS 43.20.012(b), 43.20.013; 25 AS 43.23.035(b), and 43.23.035(d) are repealed. 26  * Sec. 92. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 APPLICABILITY. (a) The individual income tax under AS 43.22, enacted by sec. 24 29 of this Act, applies to income received on or after the effective date of this Act. 30 (b) Notwithstanding the changes made in secs. 1 - 23 and 25 - 91 of this Act related to 31 the change of the permanent fund dividend to a refundable income tax credit, for purposes of 01 awarding a dividend, or considering or disputing the eligibility of an individual for a 02 permanent fund dividend, before the effective date of this Act, the Department of Revenue 03 shall apply AS 43.23 and the regulations adopted thereunder, as those statutes and regulations 04 read on the day before the effective date of this Act. 05  * Sec. 93. This Act takes effect January 1, 2017.