CSSB 78(EDC): "An Act creating the education endowment fund and the dividend lottery fund; authorizing contributions from the permanent fund dividend to the dividend lottery fund; relating to transfers from the dividend lottery fund and the education endowment fund; relating to the definition of 'gambling'; and providing for an effective date."
00 CS FOR SENATE BILL NO. 78(EDC) 01 "An Act creating the education endowment fund and the dividend lottery fund; 02 authorizing contributions from the permanent fund dividend to the dividend lottery 03 fund; relating to transfers from the dividend lottery fund and the education endowment 04 fund; relating to the definition of 'gambling'; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 11.66.280(3) is amended to read: 07 (3) "gambling" means that a person stakes or risks something of value 08 upon the outcome of a contest of chance or a future contingent event not under the 09 person's control or influence, upon an agreement or understanding that that person or 10 someone else will receive something of value in the event of a certain outcome; 11 "gambling" does not include 12 (A) bona fide business transactions valid under the law of 13 contracts for the purchase or sale at a future date of securities or commodities 14 and agreements to compensate for loss caused by the happening of chance,
01 including contracts of indemnity or guaranty and life, health, or accident 02 insurance; 03 (B) playing an amusement device that 04 (i) confers only an immediate right of replay not 05 exchangeable for something of value other than the privilege of 06 immediate replay and does not contain a method or device by which the 07 privilege of immediate replay may be cancelled or revoked; 08 (ii) confers only tickets, credits, allowances, tokens, or 09 anything of value that can be redeemed for toys, candy, or electronic 10 novelties offered at the same facility where the amusement device is 11 located; or 12 (iii) allows a player to manipulate a claw machine or 13 similar device within an enclosure and enables a person to receive 14 merchandise directly from the machine; [OR] 15 (C) an activity authorized by the Department of Revenue under 16 AS 05.15; or 17 (D) the permanent fund dividend drawing authorized 18 under AS 43.23.064; 19 * Sec. 2. AS 43.23 is amended by adding new sections to read: 20 Sec. 43.23.063. Education endowment fund. (a) The education endowment 21 fund is established as a separate account in the general fund. The fund consists of 22 appropriations from 23 (1) contributions to the fund under AS 43.23.064(b); 24 (2) transfers to the fund under AS 43.23.064(c); 25 (3) interest earned on the fund; and 26 (4) any other money appropriated to the fund. 27 (b) The commissioner is the fiduciary of the fund. In managing the fund, the 28 commissioner shall 29 (1) have the same powers and duties as provided in AS 37.10.071; and 30 (2) invest the fund in a manner likely to achieve at least a four percent 31 nominal return over a five-year period to meet the objectives of the fund.
01 (c) In managing the fund, the commissioner shall 02 (1) consider the status of the fund's capital and the income generated 03 on both current and probable future bases; 04 (2) determine the appropriate investment objectives; 05 (3) establish investment policies to achieve the objectives; and 06 (4) act only in regard to the best financial interests of the fund. 07 (d) On July 1 of each year, the commissioner shall 08 (1) determine the fund balance for the previously closed fiscal year, 09 including the earnings of the fund; and 10 (2) when the average market value for that fiscal year exceeds 11 $1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 12 balance of the fund for the last five fiscal years, including the fiscal year just ended, 13 and including any unrealized gains and losses, to the public education fund established 14 in AS 14.17.300, subject to appropriation. 15 (e) Money appropriated to the fund does not lapse. 16 Sec. 43.23.064. Dividend lottery fund; dividend contributions to the 17 dividend lottery fund; drawing. (a) The dividend lottery fund is established as an 18 account in the general fund. The commissioner shall manage the fund. Interest and 19 other income received on money in the fund shall be separately accounted for and may 20 be appropriated to the fund. The fund consists of contributions appropriated to the 21 fund under (c) of this section. The commissioner may use the dividend lottery fund, 22 without further appropriation, to pay for prizes as set out in (d) of this section and may 23 use up to two percent of the balance of the fund but not more than $500,000 from the 24 fund each fiscal year to pay the cost of administering the fund and for promotion and 25 advertisement of the fund. When the balance of the dividend lottery fund exceeds 26 $500,000,000 at the end of a fiscal year, the commissioner shall transfer the amount 27 above $500,000,000 to the education endowment fund established in AS 43.23.063. 28 Money contributed to the fund does not lapse. 29 (b) Notwithstanding AS 43.23.069, the department shall provide on the Alaska 30 permanent fund dividend application an option for an applicant who is 18 years of age 31 or older to direct that all or a portion of the applicant's dividend payment be
01 contributed as provided in (c) of this section. A contribution under this section may be 02 $100 or more, in increments of $100, up to the total amount of the permanent fund 03 dividend that the applicant is entitled to receive. 04 (c) Of the contributions received in a year under (b) of this section, the 05 legislature may appropriate 25 percent to the education endowment fund established in 06 AS 43.23.063 and 25 percent to the dividend lottery fund. The legislature may 07 appropriate the remaining 50 percent of the contributions received under (b) of this 08 section to the public education fund established in AS 14.17.300. Nothing in this 09 subsection creates a dedicated fund. 10 (d) At the beginning of each year, the commissioner shall conduct a public 11 drawing to award prizes from the dividend lottery fund. Each $100 contribution to the 12 fund entitles a person to one entry into the drawing. The prizes for the drawing shall 13 be as follows: 14 (1) the first name drawn receives an amount equal to 10 percent of the 15 balance of the dividend lottery fund; 16 (2) the second name drawn receives an amount equal to five percent of 17 the balance of the dividend lottery fund; 18 (3) the third name drawn receives an amount equal to three percent of 19 the balance of the dividend lottery fund; and 20 (4) the fourth name drawn receives an amount equal to two percent of 21 the balance of the dividend lottery fund. 22 * Sec. 3. This Act takes effect January 1, 2018.