HB 192: "An Act relating to procurement by the Alaska Permanent Fund Corporation; relating to an appropriation limit; relating to the budget responsibilities of the governor; relating to the Alaska permanent fund, the earnings of the Alaska permanent fund, and the earnings reserve account; relating to the mental health trust fund; relating to deposits into the dividend fund; relating to the calculation and payment of permanent fund dividends; and providing for an effective date."
00 HOUSE BILL NO. 192 01 "An Act relating to procurement by the Alaska Permanent Fund Corporation; relating 02 to an appropriation limit; relating to the budget responsibilities of the governor; relating 03 to the Alaska permanent fund, the earnings of the Alaska permanent fund, and the 04 earnings reserve account; relating to the mental health trust fund; relating to deposits 05 into the dividend fund; relating to the calculation and payment of permanent fund 06 dividends; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 LEGISLATIVE INTENT. It is the intent of the legislature that the legislature 11 (1) reevaluate the use of earnings of the Alaska permanent fund, as prescribed 12 under this Act, in three years; and 13 (2) reduce the state operating budget by $600,000,000 over the next four fiscal
01 years. 02 * Sec. 2. AS 36.30.015 is amended by adding a new subsection to read: 03 (l) The board of trustees of the Alaska Permanent Fund Corporation shall 04 adopt regulations to govern the procurement of supplies, services, and professional 05 services. The regulations must be similar to the procedures described in this chapter 06 and in regulations adopted under this chapter. Notwithstanding any other provisions of 07 this subsection, the Alaska Permanent Fund Corporation shall comply with the five 08 percent preference under AS 36.30.321(a) and the requirement that contracts for legal 09 services be approved by the attorney general under (d) of this section. 10 * Sec. 3. AS 36.30.990(1) is amended to read: 11 (1) "agency" 12 (A) means a department, institution, board, commission, 13 division, authority, public corporation, the Alaska Pioneers' Home, the Alaska 14 Veterans' Home, or other administrative unit of the executive branch of state 15 government; 16 (B) does not include 17 (i) the University of Alaska; 18 (ii) the Alaska Railroad Corporation; 19 (iii) the Alaska Housing Finance Corporation; 20 (iv) a regional Native housing authority created under 21 AS 18.55.996 or a regional electrical authority created under 22 AS 18.57.020; 23 (v) the Department of Transportation and Public 24 Facilities, in regard to the repair, maintenance, and reconstruction of 25 vessels, docking facilities, and passenger and vehicle transfer facilities 26 of the Alaska marine highway system; 27 (vi) the Alaska Aerospace Corporation; 28 (vii) the Alaska Retirement Management Board; 29 (viii) the Alaska Seafood Marketing Institute; 30 (ix) the Alaska children's trust and the Alaska 31 Children's Trust Board;
01 (x) the Alaska Industrial Development and Export 02 Authority; 03 (xi) the Alaska Permanent Fund Corporation; 04 * Sec. 4. AS 37.05.540(a) is amended to read: 05 (a) There is established as a separate fund in the state treasury the budget 06 reserve fund. The budget reserve fund consists of appropriations to the fund. 07 [MONEY RECEIVED BY THE STATE THAT IS SUBJECT TO THE 08 APPROPRIATION LIMIT UNDER (b) OF THIS SECTION AND THAT EXCEEDS 09 THAT LIMIT, MAY BE APPROPRIATED TO THE BUDGET RESERVE FUND.] 10 * Sec. 5. AS 37.05 is amended by adding a new section to read: 11 Sec. 37.05.545. Appropriation limit. (a) Unrestricted general fund 12 appropriations made for a fiscal year may not exceed $4,100,000,000 by more than the 13 cumulative change in inflation since July 1, 2016, derived from federal indices. The 14 determination of the change in inflation for purposes of this subsection shall be based 15 on the Consumer Price Index for all urban consumers for Anchorage prepared by the 16 United States Bureau of Labor Statistics. 17 (b) The appropriation limit in (a) of this section does not apply to an 18 appropriation 19 (1) to the Alaska permanent fund; 20 (2) for payment of permanent fund dividends; 21 (3) required to pay debt obligations of the state; or 22 (4) for a capital project. 23 (c) In this section, 24 (1) "capital project" has the meaning given in AS 37.06.090; 25 (2) "program receipts" has the meaning given in AS 37.05.146; 26 (3) "unrestricted general fund" does not include program receipts or 27 reappropriations. 28 * Sec. 6. AS 37.07.020 is amended by adding a new subsection to read: 29 (f) In addition to the budget and bills submitted under (a) of this section and 30 the fiscal plan submitted under (b) of this section, the governor shall submit a report 31 with a calculation of appropriations in the budget prepared under (a) of this section as
01 applied to the appropriation limit under AS 37.05.545. 02 * Sec. 7. AS 37.13.140 is amended to read: 03 Sec. 37.13.140. Income. Net income of the fund includes income of the 04 earnings reserve account established under AS 37.13.145. The corporation shall 05 determine the net [NET] income of the fund [SHALL BE COMPUTED 06 ANNUALLY AS OF THE LAST DAY OF THE FISCAL YEAR] in accordance with 07 generally accepted accounting principles, excluding any unrealized gains or losses. 08 [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE 09 NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, 10 INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET 11 INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE 12 BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED IN 13 AS 37.13.145.] 14 * Sec. 8. AS 37.13.140 is amended by adding new subsections to read: 15 (b) The corporation shall determine the amount available for distribution each 16 year. The amount available for distribution equals five and one-quarter percent of the 17 average market value of the fund for the first five of the preceding six fiscal years, 18 including the fiscal year just ended, computed annually for each fiscal year in 19 accordance with generally accepted accounting principles. In this subsection, "the 20 average market value of the fund" includes the balance of the earnings reserve account 21 established under AS 37.13.145, but does not include that portion of the principal 22 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 23 (Superior Court, First Judicial District). 24 (c) In accordance with AS 37.13.146(a), 50 percent of the amount available 25 for distribution under (b) of this section shall be reserved for dividends. The remainder 26 of the amount available for distribution under (b) of this section shall be reduced by 27 the difference between the amount calculated under (1) of this subsection and the 28 amount under (2) of this subsection if the amount calculated under (1) of this 29 subsection exceeds the amount under (2) of this subsection: 30 (1) the total amount of oil and gas production taxes under 31 AS 43.55.011 - 43.55.180, mineral lease rentals, royalties, royalty sale proceeds, net
01 profit shares under AS 38.05.180(f) and (g), and federal mineral revenue sharing 02 payments and bonuses received by the state from mineral leases that are deposited into 03 the general fund in the current fiscal year; 04 (2) the sum of $1,200,000,000. 05 * Sec. 9. AS 37.13.145(d) is amended to read: 06 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 07 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 08 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 09 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 10 outcome of this case, or interest earned on the money, or on the earnings of the money 11 shall be treated in the same manner as other income of the Alaska permanent fund, 12 except that it is not available for distribution [TO THE DIVIDEND FUND OR FOR 13 TRANSFERS TO THE PRINCIPAL] under AS 37.13.140(b) and (c) [OF THIS 14 SECTION], and shall be annually deposited into the Alaska capital income fund 15 (AS 37.05.565). 16 * Sec. 10. AS 37.13.145 is amended by adding new subsections to read: 17 (e) Each year the legislature may appropriate from the earnings reserve 18 account to the general fund an amount that does not exceed the amount available for 19 distribution under AS 37.13.140(b) and (c). 20 (f) Each year the legislature may appropriate from the earnings reserve 21 account to the principal of the fund an amount by which the balance of the earnings 22 reserve account exceeds the amount available for distribution under AS 37.13.140(b) 23 multiplied by four, less the amount appropriated under (e) of this section. 24 * Sec. 11. AS 37.13 is amended by adding a new section to read: 25 Sec. 37.13.146. Appropriations to the dividend fund. (a) Each year, the 26 legislature may appropriate 50 percent of the amount calculated under 27 AS 37.13.140(b) from the general fund to the dividend fund established in 28 AS 43.23.045. 29 (b) Nothing in this section creates a dedicated fund. 30 * Sec. 12. AS 37.13.300(c) is amended to read: 31 (c) Net income from the mental health trust fund may not be included in the
01 computation of [NET] income available for distribution under AS 37.13.140(b) 02 [AS 37.13.140]. 03 * Sec. 13. AS 43.23.025(a) is amended to read: 04 (a) By October 1 of each year, the commissioner shall determine the value of 05 each permanent fund dividend for that year by 06 (1) determining the total amount available for dividend payments, 07 which equals 08 (A) the amount appropriated [OF INCOME OF THE 09 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 10 under AS 37.13.146 [AS 37.13.145(b)] during the current year; 11 (B) plus the unexpended and unobligated balances of prior 12 fiscal year appropriations that lapse into the dividend fund under 13 AS 43.23.045(d); 14 (C) less the amount necessary to pay prior year dividends from 15 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 16 43.23.055(3) and (7); 17 (D) less the amount necessary to pay dividends from the 18 dividend fund due to eligible applicants who, as determined by the department, 19 filed for a previous year's dividend by the filing deadline but who were not 20 included in a previous year's dividend computation; 21 (E) less appropriations from the dividend fund during the 22 current year, including amounts to pay costs of administering the dividend 23 program and the hold harmless provisions of AS 43.23.075; 24 (2) determining the number of individuals eligible to receive a 25 dividend payment for the current year and the number of estates and successors 26 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 27 (3) dividing the amount determined under (1) of this subsection by the 28 amount determined under (2) of this subsection. 29 * Sec. 14. AS 43.23.045(a) is amended to read: 30 (a) The dividend fund is established as a separate fund in the state treasury. 31 The fund consists of money appropriated to it under AS 37.13.146. The dividend
01 fund shall be administered by the commissioner and shall be invested by the 02 commissioner in the same manner as provided in AS 37.10.070. 03 * Sec. 15. AS 43.23.055 is amended to read: 04 Sec. 43.23.055. Duties of the department. The department shall 05 (1) annually pay permanent fund dividends from the dividend fund, 06 without further appropriation; 07 (2) subject to AS 43.23.011 and paragraph (8) of this section, adopt 08 regulations under AS 44.62 (Administrative Procedure Act) that establish procedures 09 and time limits for claiming a permanent fund dividend; the department shall 10 determine the number of eligible applicants by October 1 of the year for which the 11 dividend is declared and pay the dividends by December 31 of that year; 12 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 13 that establish procedures and time limits for an individual upon emancipation or upon 14 reaching majority to apply for permanent fund dividends not received during minority 15 because the parent, guardian, or other authorized representative did not apply on 16 behalf of the individual; 17 (4) assist residents of the state, particularly in rural areas, who because 18 of language, disability, or inaccessibility to public transportation need assistance to 19 establish eligibility and to apply for permanent fund dividends; 20 (5) use a list of individuals ineligible for a dividend under 21 AS 43.23.005(d) provided annually by the Department of Corrections and the 22 Department of Public Safety to determine the number and identity of those 23 individuals; 24 (6) adopt regulations that are necessary to implement AS 43.23.005(d); 25 (7) adopt regulations that establish procedures for the parent, guardian, 26 or other authorized representative of a disabled individual to apply for prior year 27 permanent fund dividends not received by the disabled individual because no 28 application was submitted on behalf of the individual; 29 (8) adopt regulations that establish procedures for an individual to 30 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 31 collected within two years after the date of its issuance; however, the department may
01 not establish a time limit within which an application to have a disbursement reissued 02 must be filed; 03 (9) provide any information, upon request, contained in permanent 04 fund dividend records to the child support services agency created in AS 25.27.010, or 05 the child support enforcement agency of another state, for child support purposes 06 authorized under law; if the information is contained in an electronic data base, the 07 department shall provide the requesting agency with either 08 (A) access to the data base; or 09 (B) a copy of the information in the data base and a statement 10 certifying its contents; 11 (10) establish a fraud investigation unit for the purpose of assisting the 12 (A) Department of Law in the prosecution of individuals who 13 apply for or obtain a permanent fund dividend in violation of a provision in 14 AS 11, by detecting and investigating those crimes; and 15 (B) commissioner to detect and investigate the claiming or 16 paying of permanent fund dividends that should not have been claimed by or 17 paid to an individual and to impose the penalties and enforcement provisions 18 under AS 43.23.035. 19 * Sec. 16. AS 37.05.540(b), 37.05.540(c), 37.05.540(e); AS 37.13.145(b), and 37.13.145(c) 20 are repealed. 21 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 TRANSITION: REGULATIONS. (a) The commissioner of revenue and the Alaska 24 Permanent Fund Corporation may adopt regulations, policies, and procedures necessary to 25 implement this Act. The regulations, policies, or procedures may not take effect before the 26 effective date of the law implemented by the regulation, policy, or procedure. 27 (b) The commissioner of revenue and the Alaska Permanent Fund Corporation may 28 adopt regulations, policies, and procedures necessary to implement this Act. The regulations, 29 policies, or procedures may not take effect before the effective date of the law implemented 30 by the regulation, policy, or procedure. 31 * Sec. 18. Section 17 of this Act takes effect immediately under AS 01.10.070(c).