00 HOUSE BILL NO. 259 01 "An Act relating to use of income of the Alaska permanent fund; relating to the amount 02 of the permanent fund dividend; relating to the duties of the commissioner of revenue; 03 relating to funding for state aid for school districts, the state boarding school, 04 centralized correspondence study, and transportation of pupils; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.17.300 is amended by adding a new subsection to read: 08 (c) The amount of state aid for distribution to school districts, to the state 09 boarding school, for centralized correspondence study, and for transportation of pupils 10 under (a) of this section may be appropriated by the legislature from the general fund 11 under AS 37.13.145(g). If the amount appropriated under AS 37.13.145(g) is 12 insufficient to fund the state aid as calculated under this chapter and AS 14.09.010, the 13 legislature may appropriate the outstanding amount from the general fund. 01 * Sec. 2. AS 37.13.140 is amended to read: 02 Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 03 earnings reserve account established under AS 37.13.145. Net income of the fund shall 04 be computed annually as of the last day of the fiscal year in accordance with generally 05 accepted accounting principles, excluding any unrealized gains or losses. [INCOME 06 AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 07 INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 08 THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 09 THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 10 THE EARNINGS RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 11 (b) The corporation shall determine the amount available for appropriation 12 each year. The amount available for appropriation is five percent of the average 13 market value of the fund for the first five of the preceding six fiscal years, including 14 the fiscal year just ended, computed annually for each fiscal year in accordance with 15 generally accepted accounting principles. The amount available for appropriation 16 may not exceed the balance in the earnings reserve account described in 17 AS 37.13.145. In this subsection, "average market value of the fund" includes the 18 balance of the earnings reserve account established under AS 37.13.145, but does not 19 include that portion of the principal attributed to the settlement of State v. Amerada 20 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 21 * Sec. 3. AS 37.13.145(b) is amended to read: 22 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 23 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 24 account to the 25 (1) dividend fund established under AS 43.23.045, 25 [50] percent of 26 the amount [INCOME] available for appropriation [DISTRIBUTION] under 27 AS 37.13.140(b); and 28 (2) general fund, 75 percent of the amount available for 29 appropriation under AS 37.13.140(b); the legislature may further appropriate 30 the amount appropriated under this paragraph in accordance with (g) of this 31 section [AS 37.13.140]. 01 * Sec. 4. AS 37.13.145(c) is amended to read: 02 (c) After the appropriations [TRANSFER] under (b) [AND AN 03 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 04 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 05 principal of the fund an amount sufficient to offset the effect of inflation on the 06 principal of the fund during that fiscal year. However, none of the amount 07 appropriated under this subsection [TRANSFERRED] shall be applied to increase 08 the value of that portion of the principal attributed to the settlement of State v. 09 Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 10 July 1, 2004. The corporation shall calculate the amount to that may be appropriated 11 [TRANSFER] to the principal under this subsection by 12 (1) computing the average of the monthly United States Consumer 13 Price Index for all urban consumers for each of the two previous calendar years; 14 (2) computing the percentage change between the first and second 15 calendar year average; and 16 (3) applying that rate to the value of the principal of the fund on the 17 last day of the fiscal year just ended, including that portion of the principal attributed 18 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 19 First Judicial District). 20 * Sec. 5. AS 37.13.145(d) is amended to read: 21 (d) Notwithstanding (b) of this section, income earned on money awarded in 22 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 23 Court, First Judicial District), including settlement, summary judgment, or adjustment 24 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 25 on the money, or on the earnings of the money shall be treated in the same manner as 26 other income of the Alaska permanent fund, except that it may [IS] not be included in 27 the calculation of the amount available for appropriation under AS 37.13.140(b) 28 or [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS] to the 29 principal under (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF 30 THIS SECTION,] and shall be annually deposited into the Alaska capital income fund 31 (AS 37.05.565). 01 * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read: 02 (g) The legislature may appropriate at least 50 percent of the amount 03 appropriated under (b)(2) of this section to the public education fund established under 04 AS 14.17.300 for state aid for distribution to school districts, to the state boarding 05 school, for centralized correspondence study, and for transportation of pupils as 06 calculated under AS 14.09.010 and AS 14.17. If the amount appropriated under this 07 subsection exceeds the amounts calculated for state aid under AS 14.09.010 and 08 AS 14.17, the legislature may appropriate the remaining amount to school districts in 09 proportion to the funding under the formulas set out in AS 14.17. 10 * Sec. 7. AS 37.13.300(c) is amended to read: 11 (c) Net income from the mental health trust fund may not be included in the 12 computation of net income of the fund, the [OR] market value of the fund, or the 13 amount available for [DISTRIBUTION OR] appropriation under AS 37.13.140(b) 14 [AS 37.13.140]. 15 * Sec. 8. AS 37.14.031(c) is amended to read: 16 (c) The net income of the fund shall be determined by the Alaska Permanent 17 Fund Corporation and shall be computed annually as of the last day of the fiscal 18 year in accordance with generally accepted accounting principles, excluding any 19 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 20 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 21 UNDER AS 37.13.140]. 22 * Sec. 9. AS 43.23.025(a) is amended to read: 23 (a) By October 1 of each year, the commissioner shall determine the value of 24 each permanent fund dividend for that year by 25 (1) determining the total amount available for dividend payments, 26 which equals 27 (A) the amount appropriated [OF INCOME OF THE 28 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 29 under AS 37.13.145(b) during the current year; 30 (B) plus the unexpended and unobligated balances of prior 31 fiscal year appropriations that lapse into the dividend fund under 01 AS 43.23.045(d); 02 (C) less the amount necessary to pay prior year dividends from 03 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 04 43.23.055(3) and (7); 05 (D) less the amount necessary to pay dividends from the 06 dividend fund due to eligible applicants who, as determined by the department, 07 filed for a previous year's dividend by the filing deadline but who were not 08 included in a previous year's dividend computation; 09 (E) less appropriations from the dividend fund during the 10 current year, including amounts to pay costs of administering the dividend 11 program and the hold harmless provisions of AS 43.23.240; 12 (2) determining the number of individuals eligible to receive a 13 dividend payment for the current year and the number of estates and successors 14 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 15 (3) dividing the amount determined under (1) of this subsection by the 16 amount determined under (2) of this subsection. 17 * Sec. 10. AS 37.13.145(e) and 37.13.145(f) are repealed. 18 * Sec. 11. This Act takes effect July 1, 2023.