CSHB 304(RLS): "An Act relating to the education fund and the infrastructure and economic development fund, to the market value of the permanent fund, to distribution of the income of the permanent fund, and to the determination of net income of the mental health trust fund."
00 CS FOR HOUSE BILL NO. 304(RLS) 01 "An Act relating to the education fund and the infrastructure and economic 02 development fund, to the market value of the permanent fund, to distribution of the 03 income of the permanent fund, and to the determination of net income of the mental 04 health trust fund." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.05 is amended by adding new sections to article 6 to read: 07 Sec. 37.05.590. Education fund. (a) There is created as a special account in 08 the general fund the education fund consisting of transfers to the fund under 09 AS 37.13.145(e). Money may be appropriated from the fund for public schools, 10 including the University of Alaska. 11 (b) Nothing in this section dedicates money for a specific purpose. 12 Sec. 37.05.600. Infrastructure and economic development fund. (a) There 13 is created as a special account in the general fund the infrastructure and economic 14 development fund consisting of transfers to the fund under AS 37.13.145(f). Money
01 may be appropriated from the fund for capital projects, economic development 02 projects, or payments of principal and interest on general obligation or revenue bonds 03 issued by the state or an instrumentality of the state. 04 (b) Nothing in this section dedicates money for a specific purpose. 05 * Sec. 2. AS 37.13.140 is amended to read: 06 Sec. 37.13.140. Income available for distribution. The market value [NET 07 INCOME] of the fund includes the market value [INCOME] of the earnings reserve 08 account established under AS 37.13.145. The market value [NET INCOME] of the 09 fund shall be computed annually as of the last day of the fiscal year in accordance with 10 generally accepted accounting principles [, EXCLUDING ANY UNREALIZED 11 GAINS OR LOSSES]. Income available for distribution on July 1 equals five [21] 12 percent of the average year-end market value [NET INCOME] of the fund for the 13 last five fiscal years, including the fiscal year just ended, but may not exceed [NET 14 INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS] the 15 balance in the earnings reserve account described in AS 37.13.145. 16 * Sec. 3. AS 37.13.145(b) is amended to read: 17 (b) At the beginning [END] of each fiscal year, the corporation shall transfer 18 from the earnings reserve account to the dividend fund established under 19 AS 43.23.045, 45 [50] percent of the income available for distribution under 20 AS 37.13.140. 21 * Sec. 4. AS 37.13.145(d) is amended to read: 22 (d) Notwithstanding (b), (e), and (f) of this section, income earned on money 23 awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. 24 (Superior Court, First Judicial District), including settlement, summary judgment, or 25 adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or 26 interest earned on the money, or on the earnings of the money shall be treated in the 27 same manner as other income of the Alaska permanent fund, except that it is not 28 available for distribution [TO THE DIVIDEND FUND], and shall be annually 29 deposited into the principal of the Alaska permanent fund. 30 * Sec. 5. AS 37.13.145 is amended by adding new subsections to read: 31 (e) At the beginning of each fiscal year, the corporation shall transfer from the
01 earnings reserve account to the education fund (AS 37.05.590) 35 percent of the 02 income available for distribution under AS 37.13.140. 03 (f) At the beginning of each fiscal year, the corporation shall transfer from the 04 earnings reserve account to the infrastructure and economic development fund 05 (AS 37.05.600) 20 percent of the income available for distribution under 06 AS 37.13.140. 07 (g) If the amount in the earnings reserve account is not sufficient to fully fund 08 all transfers under (b), (e), and (f) of this section, the amount of each transfer shall be 09 reduced on a pro rata basis so that the total amount transferred equals the balance in 10 the earnings reserve account. 11 * Sec. 6. AS 37.13.150 is amended to read: 12 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's 13 investments must be identified as the source of the operating budget of the corporation 14 in the state's operating budget under AS 37.07 (Executive Budget Act). The 15 unexpended balance of the corporation's annual operating budget does not lapse at the 16 end of the fiscal year but shall be treated as income from the fund under 17 AS 37.13.145(a) [AS 37.13.140]. 18 * Sec. 7. AS 37.13.300(c) is amended to read: 19 (c) Income or other money [NET INCOME] from the mental health trust 20 fund may not be included in the computation of [NET] income available for 21 distribution under AS 37.13.140. 22 * Sec. 8. AS 37.14.031(c) is amended to read: 23 (c) The net income of the fund shall be determined by the Alaska Permanent 24 Fund Corporation annually as of the last day of the fiscal year in accordance with 25 generally accepted accounting principles [IN THE SAME MANNER THE 26 CORPORATION DETERMINES THE NET INCOME OF THE ALASKA 27 PERMANENT FUND UNDER AS 37.13.140]. 28 * Sec. 9. AS 37.17.020(b) is amended to read: 29 (b) The endowment shall be held and invested by the Alaska Permanent Fund 30 Corporation subject to AS 37.13.120; however, net income from the endowment shall 31 be distributed under AS 37.17.010 - 37.17.110 and 37.17.225. Income or other
01 money [NET INCOME] from the endowment may not be included in the computation 02 of [NET] income available for distribution under AS 37.13.140. 03 * Sec. 10. AS 37.17.440(b) is amended to read: 04 (b) The principal and income of the endowment shall be held and invested by 05 the Alaska Permanent Fund Corporation subject to AS 37.13.120; however, net 06 income from the endowment and subsequent income earned on net income from the 07 endowment shall be held in a separate account until appropriated by the legislature. 08 Income or other money [NET INCOME] from the endowment may not be included 09 in the computation of [NET] income available for distribution under AS 37.13.140. 10 * Sec. 11. AS 37.13.145(c) is repealed. 11 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 TRANSFER TO GENERAL FUND. At the beginning of fiscal year 2003, after the 14 transfers under AS 37.13.145 at the end of fiscal year 2002, an amount equal to $300,000,000 15 or the balance in the earnings reserve account, whichever is less, is transferred from the 16 earnings reserve account to the general fund. 17 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 TRANSITION. Notwithstanding AS 37.13.140, as amended in sec. 2 of this Act, 20 income available for distribution at the beginning of fiscal year 21 (1) 2004 is equal to seven percent of the average of the year-end market values 22 of the fund for the last five fiscal years, including fiscal year 2003, but may not exceed the 23 balance in the earnings reserve account; 24 (2) 2005 is equal to six percent of the average of the year-end market values of 25 the fund for the last five fiscal years, including fiscal year 2004, but may not exceed the 26 balance in the earnings reserve account.