00 HOUSE BILL NO. 255 01 "An Act relating to permanent fund dividend raffles; creating the senior citizen grants 02 endowment fund and the senior citizen grants dividend raffle fund; authorizing 03 donations from permanent fund dividends for grants to organizations that provide 04 support for senior citizens and for entry into the senior citizen grants dividend raffle; 05 relating to transfers from the senior citizen grants endowment fund and the senior 06 citizen grants dividend raffle fund; relating to the duties of the Department of Revenue; 07 and relating to the definition of 'gambling.'" 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. AS 11.66.280(3) is amended to read: 10 (3) "gambling" means that a person stakes or risks something of value 11 upon the outcome of a contest of chance or a future contingent event not under the 12 person's control or influence, upon an agreement or understanding that that person or 13 someone else will receive something of value in the event of a certain outcome; 01 "gambling" does not include 02 (A) bona fide business transactions valid under the law of 03 contracts for the purchase or sale at a future date of securities or commodities 04 and agreements to compensate for loss caused by the happening of chance, 05 including contracts of indemnity or guaranty and life, health, or accident 06 insurance; 07 (B) playing an amusement device that 08 (i) confers only an immediate right of replay not 09 exchangeable for something of value other than the privilege of 10 immediate replay and does not contain a method or device by which the 11 privilege of immediate replay may be cancelled or revoked; 12 (ii) confers only tickets, credits, allowances, tokens, or 13 anything of value that can be redeemed for toys, candy, or electronic 14 novelties offered at the same facility where the amusement device is 15 located; or 16 (iii) allows a player to manipulate a claw machine or 17 similar device within an enclosure and enables a person to receive 18 merchandise directly from the machine; 19 (C) an activity authorized by the Department of Revenue under 20 AS 05.15; or 21 (D) a [THE] permanent fund dividend raffle authorized under 22 AS 43.23.230 or 43.23.238; 23  * Sec. 2. AS 43.23.055 is amended to read: 24 Sec. 43.23.055. Duties of the department. The department shall 25 (1) annually pay permanent fund dividends from the dividend fund; 26 (2) subject to AS 43.23.011 and (8) of this section, adopt regulations 27 under AS 44.62 (Administrative Procedure Act) that establish procedures and time 28 limits for claiming a permanent fund dividend; the department shall determine the 29 number of eligible applicants by October 1 of the year for which the dividend is 30 declared and pay the dividends by December 31 of that year; 31 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 01 that establish procedures and time limits for an individual upon emancipation or upon 02 reaching majority to apply for permanent fund dividends not received during minority 03 because the parent, guardian, or other authorized representative did not apply on 04 behalf of the individual; 05 (4) assist residents of the state, particularly in rural areas, who, because 06 of language, disability, or inaccessibility to public transportation, need assistance to 07 establish eligibility and to apply for permanent fund dividends; 08 (5) use a list of individuals ineligible for a dividend under 09 AS 43.23.005(d) provided annually by the Department of Corrections and the 10 Department of Public Safety to determine the number and identity of those 11 individuals; 12 (6) adopt regulations that are necessary to implement AS 43.23.005(d) 13 and 43.23.048; 14 (7) adopt regulations that establish procedures for the parent, guardian, 15 or other authorized representative of a disabled individual to apply for prior year 16 permanent fund dividends not received by the disabled individual because no 17 application was submitted on behalf of the individual; 18 (8) adopt regulations that establish procedures for an individual to 19 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 20 collected within two years after the date of its issuance; however, the department may 21 not establish a time limit within which an application to have a disbursement reissued 22 must be filed; 23 (9) provide any information, upon request, contained in permanent 24 fund dividend records to the child support services agency created in AS 25.27.010, or 25 the child support enforcement agency of another state, for child support purposes 26 authorized under law; if the information is contained in an electronic data base, the 27 department shall provide the requesting agency with either 28 (A) access to the data base; or 29 (B) a copy of the information in the data base and a statement 30 certifying its contents; 31 (10) establish a fraud investigation unit for the purpose of assisting the 01 (A) Department of Law in the prosecution of individuals who 02 apply for or obtain a permanent fund dividend in violation of a provision in 03 AS 11, by detecting and investigating those crimes; and 04 (B) commissioner to detect and investigate the claiming or 05 paying of permanent fund dividends that should not have been claimed by or 06 paid to an individual and to impose the penalties and enforcement provisions 07 under AS 43.23.270; 08 (11) adopt regulations under AS 44.62 (Administrative Procedure Act) 09 so that contributions made under AS 43.23.130 are given a priority over donations 10 made under AS 43.23.230 and 43.23.238 and that donations made under  11 AS 43.23.230 are given priority over donations made under AS 43.23.238, if the 12 total amount of contributions and donations elected by an applicant exceeds the 13 amount of the permanent fund dividend that the applicant is entitled to receive; 14 (12) submit fingerprints and fees to the Department of Public Safety 15 for a national criminal history record check under AS 12.62.400 for the purpose of 16 determining a person's qualifications and suitability for administering the permanent 17 fund dividend program under this chapter. 18  * Sec. 3. AS 43.23.230(a) is amended to read: 19 (a) The education dividend raffle fund is established as an account in the 20 general fund. The commissioner shall manage the fund. Interest and other income 21 received on money in the fund shall be separately accounted for and shall be 22 appropriated to the fund. The fund consists of donations appropriated to the fund 23 under (c) of this section. The commissioner shall use the education dividend raffle 24 fund, without further appropriation, to pay for prizes as set out in (d) of this section 25 and may use up to two percent of the balance of the fund but not more than $500,000 26 from the fund each fiscal year to pay the cost of administering the fund and for 27 promotion and advertisement of the fund. When the balance of the education dividend 28 raffle fund exceeds $300,000,000 at the end of a fiscal year, the commissioner shall 29 transfer the amount above $300,000,000 to the education endowment fund established 30 in AS 43.23.220. Money donated to the fund does not lapse. 31  * Sec. 4. AS 43.23.230(b) is amended to read: 01 (b) Notwithstanding AS 43.23.200, the department shall provide on the Alaska 02 permanent fund dividend application an option for an applicant who is 18 years of age 03 or older to direct that all or a portion of the applicant's dividend payment be donated 04 for educational purposes and to enter the education [PERMANENT FUND] dividend 05 raffle as provided in (d) [(c)] of this section. A donation under this section may be 06 $100 or more, in increments of $100, up to the total amount of the permanent fund 07 dividend that the applicant is entitled to receive. 08  * Sec. 5. AS 43.23.230(c) is amended to read: 09 (c) Of the donations received in a year under (b) of this section, the legislature 10 shall appropriate 25 percent to the education endowment fund established in 11 AS 43.23.220 and shall appropriate 25 percent to the education dividend raffle fund. 12 The legislature shall appropriate the remaining 50 percent of the donations received 13 under (b) of this section to the Department of Education and Early Development for 14 distribution as supplemental grants to school districts according to the average daily 15 membership for each district adjusted under AS 14.17.410(b)(1)(A) - (D). 16  * Sec. 6. AS 43.23.230(d) is amended to read: 17 (d) At the beginning of each year, the commissioner shall conduct a public 18 drawing to award prizes from the education dividend raffle fund. Each $100 donation 19 as provided in (b) of this section entitles a person to one entry into the raffle. The 20 prizes for the raffle shall be as follows: 21 (1) the first name drawn receives an amount equal to eight percent of 22 the balance of the education dividend raffle fund; 23 (2) the second name drawn receives an amount equal to four percent of 24 the balance of the education dividend raffle fund; 25 (3) the third name drawn receives an amount equal to two percent of 26 the balance of the education dividend raffle fund; and 27 (4) the fourth name drawn receives an amount equal to one percent of 28 the balance of the education dividend raffle fund. 29  * Sec. 7. AS 43.23 is amended by adding new sections to article 4 to read: 30 Sec. 43.23.235. Senior citizen grants endowment fund. (a) The senior citizen 31 grants endowment fund is established as a separate account in the general fund. The 01 fund consists of appropriations from 02 (1) donations to the fund under AS 43.23.238(b); 03 (2) transfers to the fund under AS 43.23.238(a); 04 (3) interest earned on the fund; and 05 (4) any other money appropriated to the fund. 06 (b) The commissioner is the fiduciary of the fund. In managing the fund, the 07 commissioner shall 08 (1) have the same powers and duties as provided in AS 37.10.071; and 09 (2) invest the fund in a manner likely to achieve at least a four percent 10 nominal return over a five-year period to meet the objectives of the fund. 11 (c) In managing the fund, the commissioner shall 12 (1) consider the status of the fund's capital and the income generated 13 on both current and probable future bases; 14 (2) determine the appropriate investment objectives; 15 (3) establish investment policies to achieve the objectives; and 16 (4) act only in regard to the best financial interests of the fund. 17 (d) On July 1 of each year, the commissioner shall 18 (1) determine the fund balance for the previously closed fiscal year, 19 including the earnings of the fund; and 20 (2) when the average market value for that fiscal year exceeds 21 $1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 22 balance of the fund for the last five fiscal years, including the fiscal year just ended, 23 and including any unrealized gains and losses, to the Department of Health for 24 distribution as grants to organizations that provide support for senior citizens as 25 specified in AS 43.23.238(c), subject to appropriation. 26 (e) Money appropriated to the fund does not lapse. 27 Sec. 43.23.238. Senior citizen grants dividend raffle fund; dividend  28 donations to the fund; drawing. (a) The senior citizen grants dividend raffle fund is 29 established as an account in the general fund. The commissioner shall manage the 30 fund. Interest and other income received on money in the fund shall be separately 31 accounted for and shall be appropriated to the fund. The fund consists of donations 01 appropriated to the fund under (c) of this section. The commissioner shall use the 02 senior citizen grants dividend raffle fund, without further appropriation, to pay for 03 prizes as set out in (d) of this section and may use up to two percent of the balance of 04 the fund but not more than $500,000 from the fund each fiscal year to pay the cost of 05 administering the fund and for promotion and advertisement of the fund. When the 06 balance of the senior citizen grants dividend raffle fund exceeds $300,000,000 at the 07 end of a fiscal year, the commissioner shall transfer the amount above $300,000,000 to 08 the senior citizen grants endowment fund established in AS 43.23.235. Money donated 09 to the fund does not lapse. 10 (b) Notwithstanding AS 43.23.200, the department shall provide on the Alaska 11 permanent fund dividend application an option for an applicant who is 18 years of age 12 or older to direct that all or a portion of the applicant's dividend payment be donated 13 for senior citizen grants and to enter the senior citizen grants dividend raffle as 14 provided in (d) of this section. A donation under this section may be $100 or more, in 15 increments of $100, up to the total amount of the permanent fund dividend that the 16 applicant is entitled to receive. 17 (c) Of the donations received in a year under (b) of this section, the legislature 18 shall appropriate 25 percent to the senior citizen grants endowment fund established in 19 AS 43.23.235 and shall appropriate 25 percent to the senior citizen grants dividend 20 raffle fund. The legislature shall appropriate the remaining 50 percent of the donations 21 received under (b) of this section to the Department of Health for distribution as 22 grants, as follows: 23 (1) 50 percent to organizations that deliver meals to the homes of 24 seniors; 25 (2) 25 percent to organizations that provide transportation services to 26 seniors; 27 (3) 25 percent to organizations that provide supportive housing 28 services to seniors. 29 (d) At the beginning of each year, the commissioner shall conduct a public 30 drawing to award prizes from the senior citizen grants dividend raffle fund. Each $100 31 donation as provided in (b) of this section entitles a person to one entry into the raffle. 01 The prizes for the raffle shall be as follows: 02 (1) the first name drawn receives an amount equal to eight percent of 03 the balance of the senior citizen grants dividend raffle fund; 04 (2) the second name drawn receives an amount equal to four percent of 05 the balance of the senior citizen grants dividend raffle fund; 06 (3) the third name drawn receives an amount equal to two percent of 07 the balance of the senior citizen grants dividend raffle fund; and 08 (4) the fourth name drawn receives an amount equal to one percent of 09 the balance of the senior citizen grants dividend raffle fund. 10 (e) Nothing in this section creates a dedicated fund. 11  * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 APPLICABILITY. AS 43.23.235 and 43.23.238, added by sec. 7 of this Act, apply to 14 a permanent fund dividend applied for on or after January 1, 2027.