SB 21: "An Act relating to appropriations from the income of the Alaska permanent fund; relating to the calculation of permanent fund dividends; and providing for an effective date."
00 SENATE BILL NO. 21 01 "An Act relating to appropriations from the income of the Alaska permanent fund; 02 relating to the calculation of permanent fund dividends; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 37.13.140 is amended to read: 06 Sec. 37.13.140. Net income [INCOME]. Net income of the fund includes 07 income of the earnings reserve account established under AS 37.13.145. Net income 08 of the fund shall be computed annually as of the last day of the fiscal year in 09 accordance with generally accepted accounting principles, excluding any unrealized 10 gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 11 PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 12 YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 13 EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 14 PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED
01 IN AS 37.13.145.] 02 * Sec. 2. AS 37.13.145(d) is amended to read: 03 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 04 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 05 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 06 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 07 outcome of this case, or interest earned on the money, or on the earnings of the money 08 shall be treated in the same manner as other income of the Alaska permanent fund, 09 except that it is not available for distribution to the dividend fund [OR FOR 10 TRANSFERS TO THE PRINCIPAL UNDER (c) OF THIS SECTION], and shall be 11 annually deposited into the Alaska capital income fund (AS 37.05.565). 12 * Sec. 3. AS 37.13.145 is amended by adding a new subsection to read: 13 (e) The legislature may appropriate from the earnings reserve account the 14 following percentages of the average fiscal-year-end market value of the balance of 15 the fund for the last five fiscal years, including the fiscal year just ended and including 16 any unrealized gains and losses: 17 (1) to the dividend fund established under AS 43.23.045, between 2.25 18 and 4.5 percent; and 19 (2) to the general fund, following the appropriation in (1) of this 20 subsection, an additional amount, not to exceed 2.25 percent, except that the total 21 amount appropriated in a fiscal year from the earnings reserve account may not exceed 22 4.5 percent. 23 * Sec. 4. AS 43.23.025(a) is amended to read: 24 (a) By October 1 of each year, the commissioner shall determine the value of 25 each permanent fund dividend for that year by 26 (1) determining the total amount available for dividend payments, 27 which equals 28 (A) the amount of income of the Alaska permanent fund 29 appropriated [TRANSFERRED] to the dividend fund under 30 AS 37.13.145(e)(1) [AS 37.13.145(b)] during the current year; 31 (B) plus the unexpended and unobligated balances of prior
01 fiscal year appropriations that lapse into the dividend fund under 02 AS 43.23.045(d); 03 (C) less the amount necessary to pay prior year dividends from 04 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 05 43.23.055(3) and (7); 06 (D) less the amount necessary to pay dividends from the 07 dividend fund due to eligible applicants who, as determined by the department, 08 filed for a previous year's dividend by the filing deadline but who were not 09 included in a previous year's dividend computation; 10 (E) less appropriations from the dividend fund during the 11 current year, including amounts to pay costs of administering the dividend 12 program and the hold harmless provisions of AS 43.23.075; 13 (2) determining the number of individuals eligible to receive a 14 dividend payment for the current year and the number of estates and successors 15 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 16 (3) dividing the amount determined under (1) of this subsection by the 17 amount determined under (2) of this subsection. 18 * Sec. 5. AS 37.13.145(b) and 37.13.145(c) are repealed. 19 * Sec. 6. This Act takes effect July 1, 2017.