00 SENATE BILL NO. 153 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 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 37.13.140 is amended to read: 06 Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 07 earnings reserve account established under AS 37.13.145. Net income of the fund shall 08 be computed annually as of the last day of the fiscal year in accordance with generally 09 accepted accounting principles, excluding any unrealized gains or losses. [INCOME 10 AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 11 INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 12 THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 13 THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 14 THE EARNINGS RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 01 (b) The corporation shall determine the amount available for appropriation 02 each year. The amount available for appropriation is five percent of the average 03 market value of the fund for the first five of the preceding six fiscal years, including 04 the fiscal year just ended, computed annually for each fiscal year in accordance with 05 generally accepted accounting principles. The amount available for appropriation  06 may not exceed the balance in the earnings reserve account described in  07 AS 37.13.145. In this subsection, "average market value of the fund" includes the 08 balance of the earnings reserve account established under AS 37.13.145, but does not 09 include that portion of the principal attributed to the settlement of State v. Amerada 10 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 11  * Sec. 2. AS 37.13.145(b) is amended to read: 12 (b) Except as provided in (g) of this section, [AT THE END OF] each fiscal 13 year, the legislature may appropriate [CORPORATION SHALL TRANSFER] from 14 the earnings reserve account to the dividend fund established under AS 43.23.045, the  15 amount necessary to distribute the following amounts for permanent fund  16 dividends to each eligible individual for each of the following fiscal years:  17 (1) $1,100 in fiscal year 2022;  18 (2) $1,500 in fiscal year 2023;  19 (3) $2,000 in fiscal year 2024; and  20 (4) $2,250 in fiscal year 2025 [50 PERCENT OF THE INCOME 21 AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 22  * Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 23 (b) Each [EXCEPT AS PROVIDED IN (g) OF THIS SECTION, EACH] 24 fiscal year, the legislature may appropriate from the earnings reserve account to the 25 (1) dividend fund established under AS 43.23.045, 50 percent of the  26 amount available for appropriation under AS 37.13.140(b); and  27 (2) general fund, 50 percent of the amount available for  28 appropriation under AS 37.13.140(b) [THE AMOUNT NECESSARY TO 29 DISTRIBUTE THE FOLLOWING AMOUNTS FOR PERMANENT FUND 30 DIVIDENDS TO EACH ELIGIBLE INDIVIDUAL FOR EACH OF THE 31 FOLLOWING FISCAL YEARS: 01 (1) $1,100 IN FISCAL YEAR 2022; 02 (2) $1,500 IN FISCAL YEAR 2023; 03 (3) $2,000 IN FISCAL YEAR 2024; AND 04 (4) $2,250 IN FISCAL YEAR 2025]. 05  * Sec. 4. AS 37.13.145(c) is amended to read: 06 (c) After the appropriations [TRANSFER] under (b) and [AN 07 APPROPRIATION UNDER] (e) of this section, the corporation shall transfer from 08 the earnings reserve account to the principal of the fund an amount sufficient to offset 09 the effect of inflation on the principal of the fund during that fiscal year. However, 10 none of the amount transferred shall be applied to increase the value of that portion of 11 the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 12 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 13 calculate the amount to transfer to the principal under this subsection by 14 (1) computing the average of the monthly United States Consumer 15 Price Index for all urban consumers for each of the two previous calendar years; 16 (2) computing the percentage change between the first and second 17 calendar year average; and 18 (3) applying that rate to the value of the principal of the fund on the 19 last day of the fiscal year just ended, including that portion of the principal attributed 20 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 21 First Judicial District). 22  * Sec. 5. AS 37.13.145(c), as amended by sec. 4 of this Act, is amended to read: 23 (c) After the appropriation [APPROPRIATIONS] under (b) [AND (e)] of 24 this section, the legislature may appropriate [CORPORATION SHALL 25 TRANSFER] from the earnings reserve account to the principal of the fund an amount 26 sufficient to offset the effect of inflation on the principal of the fund during that fiscal 27 year. However, none of the amount appropriated under this subsection 28 [TRANSFERRED] shall be applied to increase the value of that portion of the 29 principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 30 (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 31 calculate the amount that may be appropriated [TO TRANSFER] to the principal 01 under this subsection by 02 (1) computing the average of the monthly United States Consumer 03 Price Index for all urban consumers for each of the two previous calendar years; 04 (2) computing the percentage change between the first and second 05 calendar year average; and 06 (3) applying that rate to the value of the principal of the fund on the 07 last day of the fiscal year just ended, including that portion of the principal attributed 08 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 09 First Judicial District). 10  * Sec. 6. AS 37.13.145(d) is amended to read: 11 (d) Notwithstanding (b) of this section, income earned on money awarded in 12 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 13 Court, First Judicial District), including settlement, summary judgment, or adjustment 14 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 15 on the money, or on the earnings of the money shall be treated in the same manner as 16 other income of the Alaska permanent fund, except that it may [IS] not be included in  17 the calculation of the amount available for appropriation under AS 37.13.140(b)  18 or [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS] to the 19 principal under (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF 20 THIS SECTION,] and shall be annually deposited into the Alaska capital income fund 21 (AS 37.05.565). 22  * Sec. 7. AS 37.13.145(f) is amended to read: 23 (f) The combined total of the appropriations [TRANSFER] under (b) [OF 24 THIS SECTION] and [AN APPROPRIATION UNDER] (e) of this section may not 25 exceed the amount available for appropriation under AS 37.13.140(b). 26  * Sec. 8. AS 37.13.145 is amended by adding a new subsection to read: 27 (g) The amount appropriated for permanent fund dividends each year under 28 (b) of this section may be reduced if the amount necessary to distribute the dividends 29 for that year exceeds the amount available for appropriation under AS 37.13.140(b). 30  * Sec. 9. AS 37.13.300(c) is amended to read: 31 (c) Net income from the mental health trust fund may not be included in the 01 computation of net income of the fund, the [OR] market value of the fund, or the  02 amount available for [DISTRIBUTION OR] appropriation under AS 37.13.140(b) 03 [AS 37.13.140]. 04  * Sec. 10. AS 37.14.031(c) is amended to read: 05 (c) The net income of the fund shall be determined by the Alaska Permanent 06 Fund Corporation and shall be computed annually as of the last day of the fiscal  07 year in accordance with generally accepted accounting principles, excluding any  08 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 09 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 10 UNDER AS 37.13.140]. 11  * Sec. 11. AS 43.23.025(a) is amended to read: 12 (a) By October 1 of each year, the commissioner shall determine the value of 13 each permanent fund dividend for that year by 14 (1) determining the total amount available for dividend payments, 15 which equals 16 (A) the amount appropriated [OF INCOME OF THE 17 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 18 under AS 37.13.145(b) during the current year; 19 (B) plus the unexpended and unobligated balances of prior 20 fiscal year appropriations that lapse into the dividend fund under 21 AS 43.23.045(d); 22 (C) less the amount necessary to pay prior year dividends from 23 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 24 43.23.055(3) and (7); 25 (D) less the amount necessary to pay dividends from the 26 dividend fund due to eligible applicants who, as determined by the department, 27 filed for a previous year's dividend by the filing deadline but who were not 28 included in a previous year's dividend computation; 29 (E) less appropriations from the dividend fund during the 30 current year, including amounts to pay costs of administering the dividend 31 program and the hold harmless provisions of AS 43.23.240; 01 (2) determining the number of individuals eligible to receive a 02 dividend payment for the current year and the number of estates and successors 03 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 04 (3) dividing the amount determined under (1) of this subsection by the 05 amount determined under (2) of this subsection. 06  * Sec. 12. AS 37.13.145(e), 37.13.145(f), and 37.13.145(g) are repealed. 07  * Sec. 13. Sections 2, 4, 7, 8, and 11 of this Act take effect immediately under 08 AS 01.10.070(c). 09  * Sec. 14. Except as provided in sec. 13 of this Act, this Act takes effect July 1, 2025.