CSHB 231(FIN): "An Act relating to deposits to the Alaska permanent fund from mineral lease rentals, royalties, royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), federal mineral revenue sharing payments received by the state from mineral leases, and bonuses received by the state from mineral leases, and limiting deposits from those sources to the 25 percent required under art. IX, sec. 15, Constitution of the State of Alaska; relating to income of the Alaska permanent fund, to the Alaska Income Account, and to permanent fund dividends; authorizing an advisory vote on the Healthy Alaska Plan, a long term financial plan for the state; and providing for an effective date."
00CS FOR HOUSE BILL NO. 231(FIN) 01 "An Act relating to deposits to the Alaska permanent fund from mineral lease 02 rentals, royalties, royalty sale proceeds, net profit shares under AS 38.05.180(f) 03 and (g), federal mineral revenue sharing payments received by the state from 04 mineral leases, and bonuses received by the state from mineral leases, and 05 limiting deposits from those sources to the 25 percent required under art. IX, 06 sec. 15, Constitution of the State of Alaska; relating to income of the Alaska 07 permanent fund, to the Alaska Income Account, and to permanent fund dividends; 08 authorizing an advisory vote on the Healthy Alaska Plan, a long term financial 09 plan for the state; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 37.05.550(b) is amended to read: 12 (b) The legislature may appropriate to the fund money received by the state 13 as Alaska marine highway system program receipts or from a settlement or final 14 judicial determination of the Dinkum Sands case (United States v. Alaska) and the
01 North Slope royalty case (State v. Amerada Hess, et al.) and not deposited into the 02 Alaska permanent fund under AS 37.13.010(a)(1) [AS 37.13.010(a)(1) or (2)] or into 03 the public school trust fund under AS 37.14.150. 04 * Sec. 2. AS 37.13.010(a) is amended to read: 05 (a) Under art. IX, sec. 15 , of the state constitution, there is established as a 06 separate fund the Alaska permanent fund. The Alaska permanent fund consists of 07 (1) 25 percent of all mineral lease rentals, royalties, royalty sale 08 proceeds, net profit shares under AS 38.05.180(f) and (g), 25 percent of [AND] 09 federal mineral revenue sharing payments received by the state from mineral leases 10 [ISSUED ON OR BEFORE DECEMBER 1, 1979], and 25 percent of all bonuses 11 received by the state from mineral leases [ISSUED ON OR BEFORE FEBRUARY 15, 12 1980]; and 13 (2) [50 PERCENT OF ALL MINERAL LEASE RENTALS, 14 ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER 15 AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING 16 PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED 17 AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED 18 BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15, 19 1980; 20 (3)] any other money appropriated to or otherwise allocated by law or 21 former law to the Alaska permanent fund. 22 * Sec. 3. AS 37.13.140 is repealed and reenacted to read: 23 Sec. 37.13.140. Income. All income of the fund shall be deposited in the 24 Alaska Income Account established under AS 37.13.145. The balance of the Alaska 25 Income Account shall be determined according to generally accepted accounting 26 principles. Income of the fund includes income of the Alaska Income Account. 27 * Sec. 4. AS 37.13.145 is repealed and reenacted to read: 28 Sec. 37.13.145. Disposition of income. (a) The Alaska Income Account is 29 established as a separate account in the fund. Subject to (c) of this section, following 30 the end of each fiscal year, an amount shall be transferred from the account to the 31 general fund that is equal to 5.25 percent of the average of the quarter-end market
01 value of the last 20 fiscal year quarters before the fiscal year just ended of 02 (1) the fund, including the Alaska Income Account; and 03 (2) the budget reserve fund (art. IX, sec. 17, Constitution of the State 04 of Alaska). 05 (b) After the transfer under (a) of this section, the commissioner of revenue 06 shall transfer from the general fund to the dividend fund, (AS 43.23.045) 42 percent 07 of the amount transferred to the general fund under (a) of this section. 08 (c) A transfer following the end of a fiscal year that is required under (a) of 09 this section shall be made during the next fiscal year and may consist of separate 10 installments transferred on different days; however, all installments must be transferred 11 during the same fiscal year. A transfer following the end of a fiscal year that is 12 required under (a) of this section may not exceed the entire balance that is in the 13 Alaska Income Account during the fiscal year in which the installments are transferred. 14 * Sec. 5. AS 37.13.300(c) is amended to read: 15 (c) Net income from the mental health trust fund may not be included in the 16 [COMPUTATION OF NET] income of the Alaska permanent fund [AVAILABLE 17 FOR DISTRIBUTION] under AS 37.13.140. 18 * Sec. 6. AS 37.17.020(b) is amended to read: 19 (b) The endowment shall be held and invested by the Alaska Permanent Fund 20 Corporation subject to AS 37.13.120; however, net income from the endowment shall 21 be distributed under AS 37.17.010 - 37.17.110 and 37.17.225. Net income from the 22 endowment may not be included in the [COMPUTATION OF NET] income of the 23 Alaska permanent fund [AVAILABLE FOR DISTRIBUTION] under AS 37.13.140. 24 * Sec. 7. AS 37.17.440(b) is amended to read: 25 (b) The principal and income of the endowment shall be held and invested by 26 the Alaska Permanent Fund Corporation subject to AS 37.13.120; however, net income 27 from the endowment and subsequent income earned on net income from the 28 endowment shall be held in a separate account until appropriated by the legislature. 29 Net income from the endowment may not be included in the [COMPUTATION OF 30 NET] income of the Alaska permanent fund [AVAILABLE FOR DISTRIBUTION] 31 under AS 37.13.140.
01 * Sec. 8. 1999 PERMANENT FUND DIVIDENDS. Notwithstanding AS 37.13.145(b) and 02 AS 43.23.025, the amount of each permanent fund dividend for 1999 is $1,000. 03 * Sec. 9. TRANSITION. (a) The Alaska Income Account established in AS 37.13.145(a), 04 as repealed and reenacted in sec. 4 of this Act, is the successor to the earnings reserve 05 account, and the balance in the earnings reserve account on the effective date of this section 06 shall be retained in the Alaska Income Account until distributed in accordance with 07 AS 37.13.145, as repealed and reenacted in sec. 4 of this Act. 08 (b) Notwithstanding AS 37.13.145(b), as repealed and reenacted in sec. 4 of this Act, 09 and AS 43.23.025, the amount of each permanent fund dividend for 2000 and each permanent 10 fund dividend for 2001 is $1,000. 11 (c) Notwithstanding AS 37.13.145(a), as repealed and reenacted in sec. 4 of this Act, 12 a transfer from the Alaska Income Account to the general fund is not required following the 13 end of fiscal year 1999 and the amount transferred from the Alaska Income Account to the 14 general fund following the end of 15 (1) fiscal year 2000 is equal to 5.25 percent of the average of the quarter-end 16 market value for the last eight fiscal year quarters before the fiscal year just ended of 17 (A) the Alaska permanent fund (art. IX, sec. 15, Constitution of the 18 State of Alaska), including the Alaska Income Account; and 19 (B) the budget reserve fund (art. IX, sec. 17, Constitution of the State 20 of Alaska); 21 (2) fiscal year 2001 is equal to 5.25 percent of the average of the quarter-end 22 market value for the last 12 fiscal year quarters before the fiscal year just ended of 23 (A) the Alaska permanent fund (art. IX, sec. 15, Constitution of the 24 State of Alaska), including the Alaska Income Account; and 25 (B) the budget reserve fund (art IX, sec. 17, Constitution of the State 26 of Alaska); 27 (3) fiscal year 2002 is equal to 5.25 percent of the average of the quarter-end 28 market value for the last 16 quarters before the fiscal year just ended of 29 (A) the Alaska permanent fund (art. IX, sec. 15, Constitution of the 30 State of Alaska), including the Alaska Income Account; and 31 (B) the budget reserve fund (art. IX, sec. 17, Constitution of the State
01 of Alaska). 02 * Sec. 10. At a special election to be held on September 14, 1999, in substantial 03 compliance with the election laws of the state including absentee voting, the lieutenant 04 governor shall place before the qualified voters of the state a question advisory to the 05 legislature and the governor. The question shall appear on the ballot in the following form: 06 Q U E S T I O N 07 Summary of the Healthy Alaska Plan: This long-range plan requires further 08 limitations and reductions on state spending. In addition, dividends will be 09 guaranteed at a particular rate. The plan also has no personal income tax or 10 sales tax. In more detail, the plan would provide as follows: 11 (1)Spending Reductions: State general fund spending would be reduced 12 at least $100,000,000 over fiscal years 2000 and 2001; 13 (2)Alaska Income Account: The constitutional budget reserve and the 14 permanent fund earnings reserve will be transferred to the Alaska 15 Income Account; 16 (3)Permanent Fund: The corpus of the permanent fund remains 17 untouched; the entire Alaska permanent fund is inflation-proofed to 18 protect the value of the fund for all Alaskans, including future 19 generations; 20 (4)Permanent Fund Dividends: A guaranteed dividend is paid to qualified 21 Alaska residents of $1,000 for annual distribution in 1999, 2000, and 22 2001, and thereafter at a rate not lower than 42 percent of the amount 23 transferred from the fund's investments after inflation-proofing; 24 (5)Operations of State Government: After inflation-proofing the 25 permanent fund and paying dividends, additional earnings of the Alaska 26 Income Account would be used to fund education, public safety, and 27 transportation functions of state government; other functions of state 28 government would be funded at a flat level unless changed by the 29 legislature; 30 (6)New Revenues: No new statewide taxes are enacted as part of this 31 plan;
01 (7)Accountability: Expenditures from the Alaska Income Account will be 02 fully disclosed for public review in the annual permanent fund dividend 03 application. 04 SHOULD THE STATE IMPLEMENT THE HEALTHY ALASKA PLAN? 05 Yes [ ] No [ ] 06 * Sec. 11. Sections 3 - 7 and 9 of this Act take effect July 2, 1999. 07 * Sec. 12. Sections 1, 2, 8, and 10 of this Act take effect immediately under 08 AS 01.10.070(c).