SB 5001: "An Act relating to the Alaska Permanent Fund Corporation, the earnings of the Alaska permanent fund, and the earnings reserve account; relating to management of the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) by the Alaska Permanent Fund Corporation; relating to procurement by the Alaska Permanent Fund Corporation; relating to the mental health trust fund; relating to deposits into the dividend fund; relating to the calculation of permanent fund dividends; relating to unrestricted state revenue available for appropriation; and providing for an effective date."
00 SENATE BILL NO. 5001 01 "An Act relating to the Alaska Permanent Fund Corporation, the earnings of the Alaska 02 permanent fund, and the earnings reserve account; relating to management of the 03 budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) by the Alaska 04 Permanent Fund Corporation; relating to procurement by the Alaska Permanent Fund 05 Corporation; relating to the mental health trust fund; relating to deposits into the 06 dividend fund; relating to the calculation of permanent fund dividends; relating to 07 unrestricted state revenue available for appropriation; and providing for an effective 08 date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 LEGISLATIVE INTENT. It is the intent of the legislature that the legislature
01 reevaluate the use of earnings of the Alaska permanent fund, as prescribed under this Act, in 02 three years. 03 * Sec. 2. AS 36.30.015 is amended by adding a new subsection to read: 04 (l) The board of trustees of the Alaska Permanent Fund Corporation shall 05 adopt regulations to govern the procurement of supplies, services, and professional 06 services. The regulations must be similar to the procedures described in this chapter 07 and in regulations adopted under this chapter. Notwithstanding any other provisions of 08 this subsection, the Alaska Permanent Fund Corporation shall comply with the five 09 percent preference under AS 36.30.321(a) and the requirement that contracts for legal 10 services be approved by the attorney general under (d) of this section. 11 * Sec. 3. AS 36.30.990(1) is amended to read: 12 (1) "agency" 13 (A) means a department, institution, board, commission, 14 division, authority, public corporation, the Alaska Pioneers' Home, the Alaska 15 Veterans' Home, or other administrative unit of the executive branch of state 16 government; 17 (B) does not include 18 (i) the University of Alaska; 19 (ii) the Alaska Railroad Corporation; 20 (iii) the Alaska Housing Finance Corporation; 21 (iv) a regional Native housing authority created under 22 AS 18.55.996 or a regional electrical authority created under 23 AS 18.57.020; 24 (v) the Department of Transportation and Public 25 Facilities, in regard to the repair, maintenance, and reconstruction of 26 vessels, docking facilities, and passenger and vehicle transfer facilities 27 of the Alaska marine highway system; 28 (vi) the Alaska Aerospace Corporation; 29 (vii) the Alaska Retirement Management Board; 30 (viii) the Alaska Seafood Marketing Institute; 31 (ix) the Alaska children's trust and the Alaska
01 Children's Trust Board; 02 (x) the Alaska Industrial Development and Export 03 Authority; 04 (xi) the Alaska Permanent Fund Corporation; 05 * Sec. 4. AS 37.10.430(a) is amended to read: 06 (a) The Alaska Permanent Fund Corporation shall manage and invest the 07 assets of [DEPARTMENT OF REVENUE MAY TRANSFER MANAGEMENT 08 RESPONSIBILITY OVER ALL OR A PORTION OF] the budget reserve fund (art. 09 IX, sec. 17, Constitution of the State of Alaska) in the manner set out for the 10 management and investment of the assets of the Alaska permanent fund under 11 AS 37.13.120 [TO THE ALASKA PERMANENT FUND CORPORATION]. 12 * Sec. 5. AS 37.10.430(b) is amended to read: 13 (b) By March 15 of each year, the Alaska Permanent Fund Corporation 14 [DEPARTMENT OF REVENUE] shall [, AFTER CONSULTING WITH THE 15 ALASKA PERMANENT FUND CORPORATION,] prepare a report setting out the 16 balance in the budget reserve fund (art. IX, sec. 17, Constitution of the State of 17 Alaska) on July 1 [JANUARY 1] and on June 30 [DECEMBER 31] of the previous 18 fiscal [CALENDAR] year. The report shall state the nominal, real, and realized return 19 on the budget reserve fund compared to the nominal, real, and realized return on the 20 permanent fund and the general fund during the previous fiscal [CALENDAR] year. 21 * Sec. 6. AS 37.13.010(a) is amended to read: 22 (a) Under art. IX, sec. 15, of the state constitution, there is established as a 23 separate fund the Alaska permanent fund. The Alaska permanent fund consists of 24 (1) 25 percent of all mineral lease rentals, royalties, royalty sale 25 proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue 26 sharing payments received by the state from mineral leases [ISSUED ON OR 27 BEFORE DECEMBER 1, 1979,] and 25 percent of all bonuses received by the state 28 from mineral leases [ISSUED ON OR BEFORE FEBRUARY 15, 1980; 29 (2) 50 PERCENT OF ALL MINERAL LEASE RENTALS, 30 ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER 31 AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING
01 PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED 02 AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED 03 BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15, 04 1980]; and 05 (2) [(3)] any other money appropriated to or otherwise allocated by 06 law or former law to the Alaska permanent fund. 07 * Sec. 7. AS 37.13.140 is amended to read: 08 Sec. 37.13.140. Income. Net income of the fund includes income of the 09 earnings reserve account established under AS 37.13.145. The corporation shall 10 determine the net [NET] income of the fund [SHALL BE COMPUTED 11 ANNUALLY AS OF THE LAST DAY OF THE FISCAL YEAR] in accordance with 12 generally accepted accounting principles, excluding any unrealized gains or losses. 13 [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE 14 NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, 15 INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET 16 INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE 17 BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED IN 18 AS 37.13.145.] 19 * Sec. 8. AS 37.13.140 is amended by adding new subsections to read: 20 (b) The corporation shall determine the amount available for distribution each 21 year. The amount available for distribution equals five and one-quarter percent of the 22 average market value of the fund for the first five of the preceding six fiscal years, 23 including the fiscal year just ended, computed annually for each fiscal year in 24 accordance with generally accepted accounting principles. In this subsection, "the 25 average market value of the fund" includes the balance of the earnings reserve account 26 established under AS 37.13.145, but does not include that portion of the principal 27 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 28 (Superior Court, First Judicial District). 29 (c) In accordance with AS 37.13.146(a)(1), 20 percent of the amount available 30 for distribution under (b) of this section shall be reserved for dividends. The remainder 31 of the amount available for distribution under (b) of this section shall be reduced by
01 the difference between the amount calculated under (1) of this subsection and the 02 amount under (2) of this subsection if the amount calculated under (1) of this 03 subsection exceeds the amount under (2) of this subsection 04 (1) the total amount of oil and gas production taxes under 05 AS 43.55.011 - 43.55.180, mineral lease rentals, royalties, royalty sale proceeds, net 06 profit shares under AS 38.05.180(f) and (g), federal mineral revenue sharing 07 payments, and bonuses received by the state from mineral leases that are deposited 08 into the general fund in the current fiscal year, less the amount under 09 AS 37.13.146(a)(2); 10 (2) the sum of $1,200,000,000. 11 * Sec. 9. AS 37.13.145(d) is amended to read: 12 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 13 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 14 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 15 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 16 outcome of this case, or interest earned on the money, or on the earnings of the money 17 shall be treated in the same manner as other income of the Alaska permanent fund, 18 except that it is not available for distribution [TO THE DIVIDEND FUND OR FOR 19 TRANSFERS TO THE PRINCIPAL] under AS 37.13.140(b) and (c) [OF THIS 20 SECTION], and shall be annually deposited into the Alaska capital income fund 21 (AS 37.05.565). 22 * Sec. 10. AS 37.13.145 is amended by adding new subsections to read: 23 (e) Each year the legislature may appropriate from the earnings reserve 24 account to the general fund an amount that does not exceed the amount available for 25 distribution under AS 37.13.140(b) and (c). 26 (f) Each year the legislature may appropriate from the earnings reserve 27 account to the principal of the fund an amount by which the balance of the earnings 28 reserve account exceeds the amount available for distribution under AS 37.13.140(b) 29 multiplied by four, less the amount appropriated under (e) of this section. 30 * Sec. 11. AS 37.13 is amended by adding new sections to read: 31 Sec. 37.13.146. Appropriations to the dividend fund. (a) The legislature may
01 appropriate to the dividend fund established in AS 43.23.045 the following amounts 02 from the general fund: 03 (1) 20 percent of the amount calculated under AS 37.13.140(b); and 04 (2) an amount equal to 20 percent of the money deposited in the 05 general fund during the fiscal year just ended from all mineral lease rentals, royalties, 06 royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), federal mineral 07 revenue sharing payments, and bonuses received by the state from mineral leases. 08 (b) Nothing in this section creates a dedicated fund. 09 Sec. 37.13.148. Appropriation of revenue. (a) If the unrestricted state 10 revenue available for appropriation in the preceding fiscal year exceeds the 11 unrestricted general fund appropriations made for the same fiscal year, the legislature 12 may appropriate the amount of unrestricted state revenue in excess of unrestricted 13 general fund appropriations as follows: 14 (1) 50 percent to the Alaska permanent fund (art. IX, sec. 15, 15 Constitution of the State of Alaska); and 16 (2) 50 percent to the budget reserve fund (art. IX, sec. 17, Constitution 17 of the State of Alaska). 18 (b) In this section, "unrestricted state revenue" does not include the balance or 19 earnings of the earnings reserve account established under AS 37.13.145(a). 20 * Sec. 12. AS 37.13.206(a) is amended to read: 21 (a) The board may adopt regulations to carry out the purposes of this chapter 22 and shall adopt regulations under AS 36.30.015(l) and AS 37.13.120(a). The provisions 23 of AS 44.62 (Administrative Procedure Act) regarding the adoption of regulations do 24 not apply to regulations of the corporation. 25 * Sec. 13. AS 37.13.300(c) is amended to read: 26 (c) Net income from the mental health trust fund may not be included in the 27 computation of [NET] income available for distribution under AS 37.13.140(b) 28 [AS 37.13.140]. 29 * Sec. 14. AS 43.23.025(a) is amended to read: 30 (a) By October 1 of each year, the commissioner shall determine the value of 31 each permanent fund dividend for that year by
01 (1) determining the total amount available for dividend payments, 02 which equals 03 (A) the amount appropriated [OF INCOME OF THE 04 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund under 05 AS 37.13.146 [AS 37.13.145(b)] during the current year; 06 (B) plus the unexpended and unobligated balances of prior 07 fiscal year appropriations that lapse into the dividend fund under 08 AS 43.23.045(d); 09 (C) less the amount necessary to pay prior year dividends from 10 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 11 43.23.055(3) and (7); 12 (D) less the amount necessary to pay dividends from the 13 dividend fund due to eligible applicants who, as determined by the department, 14 filed for a previous year's dividend by the filing deadline but who were not 15 included in a previous year's dividend computation; 16 (E) less appropriations from the dividend fund during the 17 current year, including amounts to pay costs of administering the dividend 18 program and the hold harmless provisions of AS 43.23.075; 19 (2) determining the number of individuals eligible to receive a dividend 20 payment for the current year and the number of estates and successors eligible to 21 receive a dividend payment for the current year under AS 43.23.005(h); and 22 (3) dividing the amount determined under (1) of this subsection by the 23 amount determined under (2) of this subsection. 24 * Sec. 15. AS 43.23.025 is amended by adding a new subsection to read: 25 (c) Notwithstanding (a) of this section, the amount of each permanent fund 26 dividend for fiscal years 2017, 2018, and 2019 shall be $1,000. 27 * Sec. 16. AS 43.23.045(a) is amended to read: 28 (a) The dividend fund is established as a separate fund in the state treasury. 29 The fund consists of money appropriated to it under AS 37.13.146. The dividend 30 fund shall be administered by the commissioner and shall be invested by the 31 commissioner in the same manner as provided in AS 37.10.070.
01 * Sec. 17. AS 43.23.055 is amended to read: 02 Sec. 43.23.055. Duties of the department. The department shall 03 (1) annually pay permanent fund dividends from the dividend fund, 04 without further appropriation; 05 (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 06 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 07 and time limits for claiming a permanent fund dividend; the department shall 08 determine the number of eligible applicants by October 1 of the year for which the 09 dividend is declared and pay the dividends by December 31 of that year; 10 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 11 that establish procedures and time limits for an individual upon emancipation or upon 12 reaching majority to apply for permanent fund dividends not received during minority 13 because the parent, guardian, or other authorized representative did not apply on 14 behalf of the individual; 15 (4) assist residents of the state, particularly in rural areas, who because 16 of language, disability, or inaccessibility to public transportation need assistance to 17 establish eligibility and to apply for permanent fund dividends; 18 (5) use a list of individuals ineligible for a dividend under 19 AS 43.23.005(d) provided annually by the Department of Corrections and the 20 Department of Public Safety to determine the number and identity of those 21 individuals; 22 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 23 (7) adopt regulations that establish procedures for the parent, guardian, 24 or other authorized representative of a disabled individual to apply for prior year 25 permanent fund dividends not received by the disabled individual because no 26 application was submitted on behalf of the individual; 27 (8) adopt regulations that establish procedures for an individual to 28 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 29 collected within two years after the date of its issuance; however, the department may 30 not establish a time limit within which an application to have a disbursement reissued 31 must be filed;
01 (9) provide any information, upon request, contained in permanent 02 fund dividend records to the child support services agency created in AS 25.27.010, or 03 the child support enforcement agency of another state, for child support purposes 04 authorized under law; if the information is contained in an electronic data base, the 05 department shall provide the requesting agency with either 06 (A) access to the data base; or 07 (B) a copy of the information in the data base and a statement 08 certifying its contents; 09 (10) establish a fraud investigation unit for the purpose of assisting the 10 (A) Department of Law in the prosecution of individuals who 11 apply for or obtain a permanent fund dividend in violation of a provision in 12 AS 11, by detecting and investigating those crimes; and 13 (B) commissioner to detect and investigate the claiming or 14 paying of permanent fund dividends that should not have been claimed by or 15 paid to an individual and to impose the penalties and enforcement provisions 16 under AS 43.23.035. 17 * Sec. 18. AS 37.10.430(c); AS 37.13.145(b) and 37.13.145(c) are repealed. 18 * Sec. 19. AS 43.23.025(c) is repealed June 30, 2020. 19 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 TRANSITION. The commissioner of revenue and the Alaska Permanent Fund 22 Corporation may adopt regulations, policies, and procedures necessary to implement this Act. 23 The regulations, policies, or procedures may not take effect before the effective date of the 24 law implemented by the regulation, policy, or procedure. 25 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 RETROACTIVITY. If secs. 6 - 11 and 13 - 18 of this Act take effect after July 1, 28 2016, secs. 6 - 11 and 13 - 18 of this Act are retroactive to July 1, 2016. 29 * Sec. 22. This Act takes effect immediately under AS 01.10.070(c).