00                            HOUSE BILL NO. 304                                                                          
01 "An Act relating to disposition of income of the permanent fund; and providing for an                                   
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 37.13.145 is amended by adding new subsections to read:                                           
05            (e)  At the end of each fiscal year, the corporation shall calculate the amount of                           
06       money that is equal to the realized income of the earnings reserve account during that                            
07       fiscal year.                                                                                                      
08            (f)  After the transfers under (b) and (c) of this section, the corporation shall                            
09       transfer from the earnings reserve account to the general fund the lesser of the                                  
10       following amounts:                                                                                                
11                 (1)  the amount calculated under (e) of this section; or                                                
12                 (2)  $200,000,000                                                                                       
13                      (A)  plus an amount sufficient to offset the effect of inflation                                   
14            calculated by                                                                                                

01                           (i)  computing the average of the monthly United States                                       
02                 Consumer Price Index for all urban consumers for each of the two                                        
03                 previous calendar years;                                                                                
04                           (ii)  computing the percentage change between the first                                       
05                 and second calendar year average; and                                                                   
06                           (iii)  applying that rate to the amount calculated under                                      
07                 this subparagraph on the last day of the previous fiscal years; and                                     
08                      (B)  plus or minus an amount sufficient to adjust for the change                                   
09            in state population calculated by comparing the estimated population on the                                  
10            last day of the previous fiscal year and the estimated current population.                                   
11    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
12 read:                                                                                                                   
13       TRANSFERS AT THE ENDS OF FISCAL YEARS 2002 AND 2003.  (a)                                                         
14 Notwithstanding AS 37.13.145(e) and (f), added by sec. 1 of this Act, the amount transferred                            
15 to the general fund at the end of fiscal year 2002 is the lesser of the following amounts:  the                         
16 amount calculated under AS 37.13.145(e) or $200,000,000.                                                                
17       (b)  At the end of fiscal year 2003, for purposes of AS 37.13.145(f)(2)(A)(iii), the                              
18 "amount calculated under this subparagraph on the last day of the previous fiscal year" is                              
19 $200,000,000.                                                                                                           
20    * Sec. 3.  This Act takes effect June 30, 2002.