00 HOUSE BILL NO. 209 01 "An Act relating to the Alaska permanent fund; relating to income of the Alaska 02 permanent fund; relating to the amount available for appropriation and appropriations 03 from the earnings reserve account; relating to the permanent fund dividend; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06  * Section 1. AS 37.13.140(a) is amended to read: 07 (a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 08 EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER AS 37.13.145.] Net 09 income of the fund shall be computed annually as of the last day of the fiscal year in 10 accordance with generally accepted accounting principles, excluding any unrealized 11 gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 12 PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 13 YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 14 EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 01 PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 02 IN AS 37.13.145.] 03  * Sec. 2. AS 37.13.145(b) is amended to read: 04 (b) Each [AT THE END OF EACH] fiscal year, the legislature may  05 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 06 account to the dividend fund established under AS 43.23.045 the amount necessary  07 to distribute a dividend of $1,000 to each eligible resident, as determined under  08 AS 43.23.005 - 43.23.015 [, 50 PERCENT OF THE INCOME AVAILABLE FOR 09 DISTRIBUTION UNDER AS 37.13.140]. 10  * Sec. 3. AS 37.13.145(c) is amended to read: 11 (c) After the appropriations [TRANSFER] under (b) and [AN 12 APPROPRIATION UNDER] (e) of this section, the legislature may appropriate 13 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 14 principal of the fund an amount sufficient to offset the effect of inflation on the 15 principal of the fund during that fiscal year. However, none of the amount 16 appropriated [TRANSFERRED] shall be applied to increase the value of that portion 17 of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77- 18 847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 19 calculate the amount to appropriate [TRANSFER] to the principal under this 20 subsection by 21 (1) computing the average of the monthly United States Consumer 22 Price Index for all urban consumers for each of the two previous calendar years; 23 (2) computing the percentage change between the first and second 24 calendar year average; and 25 (3) applying that rate to the value of the principal of the fund on the 26 last day of the fiscal year just ended, including that portion of the principal attributed 27 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 28 First Judicial District). 29  * Sec. 4. AS 37.13.145(d) is amended to read: 30 (d) Notwithstanding (b) of this section, income earned on money awarded in 31 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 01 Court, First Judicial District), including settlement, summary judgment, or adjustment 02 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 03 on the money, or on the earnings of the money shall be treated in the same manner as 04 other income of the Alaska permanent fund, except that it is not available for 05 appropriation [DISTRIBUTION] to the dividend fund under (b) of this section, for 06 an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 07 appropriation under (e) of this section, and shall be annually deposited into the Alaska 08 capital income fund (AS 37.05.565). 09  * Sec. 5. AS 37.13.145(f) is amended to read: 10 (f) The combined total of appropriations [THE TRANSFER] under (b) [OF 11 THIS SECTION] and [AN APPROPRIATION UNDER] (e) of this section may not 12 exceed the amount available for appropriation under AS 37.13.140(b). 13  * Sec. 6. AS 37.13.300(c) is amended to read: 14 (c) Net income from the mental health trust fund may not be included in the 15 computation of net income or market value available for [DISTRIBUTION OR] 16 appropriation under AS 37.13.140(b) [AS 37.13.140]. 17  * Sec. 7. AS 43.23.005(a) is amended to read: 18 (a) An individual is eligible to receive one permanent fund dividend each year 19 [IN AN AMOUNT TO BE DETERMINED UNDER AS 43.23.025] if the individual 20 (1) applies to the department; 21 (2) is a state resident on the date of application; 22 (3) was a state resident during the entire qualifying year; 23 (4) has been physically present in the state for at least 72 consecutive 24 hours at some time during the prior two years before the current dividend year; 25 (5) is 26 (A) a citizen of the United States; 27 (B) an alien lawfully admitted for permanent residence in the 28 United States; 29 (C) an alien with refugee status under federal law; or 30 (D) an alien that has been granted asylum under federal law; 31 (6) was, at all times during the qualifying year, physically present in 01 the state or, if absent, was absent only as allowed in AS 43.23.008; [AND] 02 (7) was in compliance during the qualifying year with the military 03 selective service registration requirements imposed under 50 U.S.C. App. 453 04 (Military Selective Service Act), if those requirements were applicable to the 05 individual, or has come into compliance after being notified of the lack of compliance;  06 and  07 (8) for the qualifying year,  08 (A) is exempt from filing a federal income tax return  09 because the individual has less income than is required to file a federal  10 income tax return; or  11 (B) has a federal adjusted gross income of  12 (i) $50,000 or less for an individual who filed a  13 federal income tax return as single, married filing separately, head  14 of household, or qualifying surviving spouse;  15 (ii) $100,000 or less of combined income for an  16 individual who filed a federal income tax return as married filing  17 jointly. 18  * Sec. 8. AS 43.23.028(a) is amended to read: 19 (a) The [BY OCTOBER 1 OF EACH YEAR, THE COMMISSIONER 20 SHALL GIVE PUBLIC NOTICE OF THE VALUE OF EACH PERMANENT FUND 21 DIVIDEND FOR THAT YEAR AND NOTICE OF THE INFORMATION 22 REQUIRED TO BE DISCLOSED UNDER (3) OF THIS SUBSECTION. IN 23 ADDITION, THE] stub attached to each individual dividend disbursement advice 24 must 25 (1) disclose the amount of each dividend attributable to income earned 26 by the permanent fund from deposits to that fund required under art. IX, sec. 15, 27 Constitution of the State of Alaska; 28 (2) disclose the amount of each dividend attributable to income earned 29 by the permanent fund from appropriations to that fund and from amounts added to 30 that fund to offset the effects of inflation; 31 (3) [DISCLOSE THE AMOUNT BY WHICH EACH DIVIDEND 01 HAS BEEN REDUCED DUE TO EACH APPROPRIATION FROM THE 02 DIVIDEND FUND, INCLUDING AMOUNTS TO PAY THE COSTS OF 03 ADMINISTERING THE DIVIDEND PROGRAM AND THE HOLD HARMLESS 04 PROVISIONS OF AS 43.23.240; 05 (4)] include a statement that an individual is not eligible for a dividend 06 when, 07 (A) during the qualifying year, the individual was convicted of 08 a felony; 09 (B) during all or part of the qualifying year, the individual was 10 incarcerated as a result of the conviction of a 11 (i) felony; or 12 (ii) misdemeanor if the individual has been convicted of 13 a prior felony or two or more prior misdemeanors; 14 (4) [(5)] include a statement that the legislative purpose for making 15 individuals listed under (3) [(4)] of this subsection ineligible is to 16 (A) provide funds for services for and payments to crime 17 victims and operating costs of the Violent Crimes Compensation Board; 18 (B) provide funds to pay restitution owed to crime victims; 19 (C) provide funds for grants to nonprofit organizations for 20 services for crime victims and for mental health services and substance abuse 21 treatment for offenders; 22 (D) provide funds for the office of victims' rights; 23 (E) provide funds to the Council on Domestic Violence and 24 Sexual Assault for grants for the operation of domestic violence and sexual 25 assault programs; and 26 (F) obtain reimbursement for some of the costs imposed on the 27 Department of Corrections related to incarceration or probation of those 28 individuals; 29 (5) [(6)] disclose the total amount that would have been paid during the 30 previous fiscal year to individuals who were ineligible to receive dividends under 31 AS 43.23.005(d) if they had been eligible; 01 (6) [(7)] disclose the total amount transferred or appropriated for the 02 current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 03 listed in AS 43.23.048. 04  * Sec. 9. AS 43.23.045(d) is amended to read: 05 (d) Unless specified otherwise in an appropriation act, the unexpended and 06 unobligated balance of an appropriation to implement this chapter lapses into the 07 dividend fund on June 30 of the fiscal year for which the appropriation was made and 08 shall be used in [DETERMINING THE AMOUNT OF AND] paying the subsequent 09 year's dividend [AS PROVIDED IN AS 43.23.025(a)(1)(B)]. 10  * Sec. 10. AS 43.23.025(a) and 43.23.028(b) are repealed.  11  * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 APPLICABILITY. AS 37.13.145(b), as amended by sec. 2 of this Act, 14 AS 43.23.005(a), as amended by sec. 7 of this Act, and AS 43.23.028(a), as amended by sec. 15 8 of this Act, apply to the permanent fund dividend 2025 qualifying year for the 2026 16 dividend year and thereafter. 17  * Sec. 12. This Act takes effect immediately under AS 01.10.070(c).