CSHB 187(FIN): "An Act relating to money deposited into the Alaska permanent fund as a result of the settlement of State v. Amerada Hess; relating to the Alaska capital income fund and to deposits of income from State v. Amerada Hess settlement money into the Alaska capital income fund; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 187(FIN) 01 "An Act relating to money deposited into the Alaska permanent fund as a result of the 02 settlement of State v. Amerada Hess; relating to the Alaska capital income fund and to 03 deposits of income from State v. Amerada Hess settlement money into the Alaska capital 04 income fund; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.05 is amended by adding a new section to read: 07 Sec. 37.05.565. Alaska capital income fund. (a) There is established in the 08 general fund the Alaska capital income fund consisting of money deposited to the fund 09 under AS 37.13.145(d) and of appropriations to the fund. The fund shall be invested 10 by the Department of Revenue to yield competitive market rates as provided in 11 AS 37.10.071. Income earned on money in the fund may be appropriated to the fund. 12 (b) Money may be appropriated from the Alaska capital income fund for any 13 public purpose, including to cover annual debt service and reserves for debt service on 14 bonds authorized by state law. Nothing in this subsection creates a dedicated fund.
01 * Sec. 2. AS 37.13.145(c) is amended to read: 02 (c) After the transfer under (b) of this section, the corporation shall transfer 03 from the earnings reserve account to the principal of the fund an amount sufficient to 04 offset the effect of inflation on principal of the fund during that fiscal year. However, 05 none of the amount transferred shall be applied to increase the value of that 06 portion of the principal attributed to the settlement of State v. Amerada Hess, et 07 al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The 08 corporation shall calculate the amount to transfer to the principal under this subsection 09 by 10 (1) computing the average of the monthly United States Consumer 11 Price Index for all urban consumers for each of the two previous calendar years; 12 (2) computing the percentage change between the first and second 13 calendar year average; and 14 (3) applying that rate to the value of the principal of the fund on the 15 last day of the fiscal year just ended, including that portion of the principal 16 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 17 (Superior Court, First Judicial District). 18 * Sec. 3. AS 37.13.145(d) is amended to read: 19 (d) Notwithstanding (b) of this section, income earned on money awarded in 20 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 21 Court, First Judicial District), including settlement, summary judgment, or adjustment 22 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 23 on the money, or on the earnings of the money shall be treated in the same manner as 24 other income of the Alaska permanent fund, except that it is not available for 25 distribution to the dividend fund or for transfers to the principal under (c) of this 26 section, and shall be annually deposited into the Alaska capital income fund 27 (AS 37.05.565) [PRINCIPAL OF THE ALASKA PERMANENT FUND]. 28 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 RETROACTIVITY. Sections 1 - 3 of this Act are retroactive to July 1, 2004. 31 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).