HB 374: "An Act relating to establishment of a retirement benefit liability account in the Department of Revenue and redirecting deposit of annual dividends of the Alaska Housing Finance Corporation to that account; and providing for an effective date."
00 HOUSE BILL NO. 374 01 "An Act relating to establishment of a retirement benefit liability account in the 02 Department of Revenue and redirecting deposit of annual dividends of the Alaska 03 Housing Finance Corporation to that account; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 18.56.089(c) is amended to read: 06 (c) The corporation shall make a dividend available to the state each fiscal 07 year. The corporation shall pay the dividend for a current fiscal year into the 08 retirement benefit liability account established in AS 37.10.200 [TO THE STATE] 09 before the end of that fiscal year. [THE LEGISLATURE MAY APPROPRIATE THE 10 DIVIDEND FOR CAPITAL PROJECTS.] The corporation shall notify the 11 commissioner of revenue of the amount of each dividend under this subsection for 12 inclusion in the state operating budget and shall also notify the commissioner when 13 each dividend is available for payment [TO THE STATE]. The amount of the 14 dividend for a current fiscal year is calculated as follows:
01 (1) the lesser of $103,000,000 or 75 percent of the net income of the 02 corporation for the base fiscal year; 03 (2) minus the amount of money from the corporation used during that 04 current fiscal year for bond repayment and other costs related to the bonds issued 05 under 06 (A) ch. 26, SLA 1996, up to a maximum of $1,000,000; 07 (B) sec. 10(b), ch. 130, SLA 2000; 08 (C) sec. 1, ch. 1, SSSLA 2002; 09 (D) sec. 4, ch. 120, SLA 2004; and 10 (3) minus any appropriation of unrestricted unencumbered money of 11 the corporation during the current fiscal year, other than an appropriation for the 12 corporation's operating budget. 13 * Sec. 2. AS 37.10 is amended by adding a new section to read: 14 Article 4A. Retirement Benefit Liability Account. 15 Sec. 37.10.200. Retirement benefit liability account. (a) The retirement 16 benefit liability account is created in the Department of Revenue. 17 (b) Money in the retirement benefit liability account may be appropriated to 18 the state and political subdivisions of the state, including regional educational 19 attendance areas, for employer contributions to pay past service liabilities of the public 20 employees' retirement system and the teachers' retirement system and for other 21 purposes. Income earned on money in the account may be appropriated to the account 22 annually. 23 (c) Nothing in this section dedicates funds for a specific purpose. 24 (d) In this section, "employer contribution" means a contribution described in 25 AS 14.25.070(a) and AS 39.35.270(a). 26 * Sec. 3. AS 37.10.220 is amended by adding a new paragraph to read: 27 (16) recommend to the legislature an amount to be appropriated for the 28 next fiscal year from the account established under AS 37.10.200 to each political 29 subdivision, including regional educational attendance areas, participating in the 30 teachers' retirement system under AS 14.25 or the public employees' retirement system 31 under AS 39.35, which amount shall be determined by
01 (A) calculating the amount needed by the political subdivision 02 for that fiscal year to liquidate past service liability using the rate determined 03 under (8)(B) of this section; 04 (B) deducting from the amount determined under (A) of this 05 paragraph the amount of the total appropriation from the account under 06 AS 37.10.200 that was received by that political subdivision for the previous 07 fiscal year and spent for a purpose other than the purpose for which the 08 appropriation was made. 09 * Sec. 4. This Act takes effect June 30, 2006.