HB 242: "An Act relating to unpaid, underpaid, and overpaid royalty and net profit share payments due on leases of state land and to the collection and payment of interest on those payments."
00HOUSE BILL NO. 242 01 "An Act relating to unpaid, underpaid, and overpaid royalty and net profit share 02 payments due on leases of state land and to the collection and payment of 03 interest on those payments." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.135(d) is amended to read: 06 (d) If a royalty or net profit share payment to which the state is entitled under 07 AS 38.05.135 - 38.05.181 is not paid or is underpaid when it becomes due under (c) 08 of this section, the unpaid amount of the royalty or net profit share payment bears 09 interest in a calendar quarter at the rate of five percentage points above the annual rate 10 charged member banks for advances by the 12th Federal Reserve District as of the first 11 day of that calendar quarter, or at the annual rate of 11 percent, whichever is greater, 12 compounded quarterly as of the last day of that quarter. 13 * Sec. 2. AS 38.05.135(e) is amended to read: 14 (e) If a royalty or net profit share payment to which the state is entitled
01 under AS 38.05.135 - 38.05.181 is overpaid, interest [INTEREST] at the rate and 02 compounded in the manner provided in (d) of this section shall be allowed and paid 03 on the [AN] overpayment. The interest allowance is subject to the following: 04 (1) if the state grants a credit against future payments for the 05 overpayment, the state shall pay interest on the overpayment 06 (A) from the date that is the later of the date the 07 overpayment was 08 (i) due; or 09 (ii) received; 10 (B) to the date that is the earlier of the date 11 (i) of notice to the lessee of the credit; or 12 (ii) on which the lessee actually takes the credit; 13 (2) if the state refunds the overpayment, the state shall pay interest 14 on the overpayment 15 (A) from the date that is the later of the date the 16 overpayment was 17 (i) due; or 18 (ii) received; 19 (B) to the date the state issues the refund [OF A ROYALTY 20 OR NET PROFIT SHARE PAYMENT MADE UNDER AS 38.05.135 - 21 38.05.181]. 22 * Sec. 3. AS 38.05.135 is amended by adding new subsections to read: 23 (f) The issuance by the state and acceptance by a lessee of a credit or refund 24 of an overpayment under (e) of this section does not affect any right of the state or 25 lessee to claim an adjustment and interest on the overpayment. 26 (g) Notwithstanding (d) and (e) of this section, interest may not be paid on 27 (1) an underpayment of a royalty or net profit share due under this title 28 if the amount of interest is $150 or less and the underpayment is paid up within 60 29 days after the date upon which the payment was due under (c) of this section without 30 regard to an extension of time for filing of the necessary royalty or net profit report; 31 or
01 (2) an overpayment of a royalty or net profit share due under this title 02 if the amount of interest is $150 or less and the state issues a credit for or refund of 03 the overpayment within 60 days after receipt of the overpayment.