SB 292: "An Act relating to the longevity bonus program; and providing for an effective date."
00SENATE BILL NO. 292 01 "An Act relating to the longevity bonus program; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 47.45 is amended by adding a new section to read: 05 Sec. 47.45.005. LONGEVITY BONUS FUND. (a) In order to support the 06 longevity bonus program, the longevity bonus fund is established, consisting of money 07 appropriated to the fund. The fund shall be held and invested by the Alaska 08 Permanent Fund Corporation subject to AS 37.13.120. However, net income from the 09 fund may not be included in the computation of net income available for distribution 10 under AS 37.13.140. 11 (b) The income account is established as a separate account in the longevity 12 bonus fund. Income from the fund shall be deposited by the Alaska Permanent Fund 13 Corporation into the account as soon as it is received and shall be retained in the 14 account unless appropriated. Money in the account shall be invested in investments
01 authorized under AS 37.13.120, and the income shall be retained in the account unless 02 appropriated. 03 (c) Subject to appropriation for the purpose, on the last day of each fiscal year 04 the Alaska Permanent Fund Corporation shall transfer from the income account to the 05 principal of the longevity bonus fund an amount sufficient to offset the effect of 06 inflation on the principal of the fund during that fiscal year. The corporation shall 07 calculate the amount to transfer to the principal under this subsection by 08 (1) computing the average of the monthly United States Consumer 09 Price Index for all urban consumers for each of the two previous calendar years; 10 (2) computing the percentage change between the first and second 11 calendar year average; and 12 (3) applying that rate to the value of the principal of the fund on the 13 last day of the fiscal year just ended. 14 (d) After the transfer under (c) of this section and subject to appropriation for 15 the purpose, the Alaska Permanent Fund Corporation shall transfer the balance of the 16 money in the income account to the bonus payment fund (AS 47.45.090). 17 * Sec. 2. AS 47.45.010(a) is amended to read: 18 (a) A person who is 65 years of age or over who resides in the state for at 19 least one year immediately preceding application for a longevity bonus under this 20 chapter may apply to the commissioner of administration [NO LATER THAN 21 DECEMBER 31, 1996,] for qualification to receive a monthly bonus. The amount 22 of the bonus during a calendar year shall be calculated by the commissioner 23 before the beginning of that year based upon the amount available in the bonus 24 payment fund for distribution during that year. However, a bonus may not 25 exceed $250 [OF 26 (1) $250, IF THE PERSON'S APPLICATION WAS SUBMITTED 27 BEFORE JANUARY 1, 1994; 28 (2) $200, IF THE PERSON'S APPLICATION WAS SUBMITTED ON 29 OR AFTER JANUARY 1, 1994, BUT BEFORE JANUARY 1, 1995; 30 (3) $150, IF THE PERSON'S APPLICATION WAS SUBMITTED ON 31 OR AFTER JANUARY 1, 1995, BUT BEFORE JANUARY 1, 1996; OR
01 (4) $100, IF THE PERSON'S APPLICATION WAS SUBMITTED ON 02 OR AFTER JANUARY 1, 1996, BUT BEFORE JANUARY 1, 1997]. 03 * Sec. 3. AS 47.45.070(a) is amended to read: 04 (a) An unqualified person is one who 05 (1) does not meet the age or residence requirements as provided for 06 under this chapter; 07 (2) meets the age and residence requirements of this chapter but either 08 is confined in a state or federal mental health institution or facility and is certified by 09 the state as unable to manage personal affairs, or resides in a nursing home as that 10 term is defined in AS 08.70.180; however, if that person, at the time of commitment 11 or commencement of residence, provided the principal support of a spouse, the 12 commissioner of administration may determine to pay the confined person's bonus to 13 the person's spouse until the spouse is qualified for a bonus; 14 (3) is otherwise qualified but confined in a penal or correctional 15 institution or facility; upon completion of sentence or upon the conferral of a pardon, 16 parole, or probation, the person may make application; confinement outside the state 17 shall be considered as residence in the state if a person was convicted and sentenced 18 from a court in Alaska; revocation of parole or probation shall be cause for immediate 19 disqualification until release from confinement is again effected; 20 (4) voluntarily leaves the state and remains absent from the state for 21 a continuous period of more than 90 days; 22 (5) did not apply, under AS 47.45.010(a), [BEFORE JANUARY 1, 23 1997,] for qualification to receive a [LONGEVITY] bonus [; 24 (6) WAS FOUND QUALIFIED TO RECEIVE A LONGEVITY 25 BONUS, WAS SUBSEQUENTLY DISQUALIFIED FOR 12 CONSECUTIVE 26 MONTHS OR MORE, AND DID NOT REAPPLY BEFORE JANUARY 1, 1997]. 27 * Sec. 4. AS 47.45.090(a) is amended to read: 28 (a) The [ALASKA LONGEVITY] bonus payment fund is created for the 29 purpose of paying the monthly bonuses provided for in this chapter. The bonus 30 payment fund consists only of money made available for distribution as bonus 31 payments and to pay costs of administering this chapter by appropriations from the
01 income account of the longevity bonus fund under AS 47.45.005(d), from [OF THE 02 LEGISLATURE FROM THE GENERAL FUND, AND] income and interest derived 03 from the investment of money of the [LONGEVITY] bonus payment fund, and from 04 other sources. Any income or other money in the bonus payment fund that has 05 not been appropriated for distribution or exceeds the amount needed for 06 distribution during a calendar year lapses into the income account of the longevity 07 bonus fund on January 1 of the following year. 08 * Sec. 5. AS 47.45.100 is amended to read: 09 Sec. 47.45.100. POWERS AND DUTIES OF THE ADMINISTRATOR. The 10 commissioner of administration shall 11 (1) adopt regulations necessary to carry out the provisions of this 12 chapter; 13 (2) make expenditures from the bonus payment fund necessary to 14 administer this chapter; 15 (3) establish and maintain an adequate system of accounts for the 16 bonus payment fund [; 17 (4) REPEALED]. 18 * Sec. 6. AS 47.45.110 is amended to read: 19 Sec. 47.45.110. CUSTODY OF FUNDS. The commissioner of revenue is the 20 treasurer of the system and has powers and duties for this purpose including [BUT 21 NOT LIMITED TO] the following: 22 (1) to act as official custodian of the cash and securities belonging to 23 the bonus payment fund; 24 (2) to receive all items of cash belonging to the bonus payment fund. 25 * Sec. 7. AS 47.45.045 is repealed. 26 * Sec. 8. Section 1 of this Act takes effect July 1, 1996. 27 * Sec. 9. Sections 2 - 7 of this Act take effect January 1, 1998.