HB 132: "An Act relating to the Alaska permanent fund; relating to the earnings reserve account; relating to the permanent fund dividend; relating to deposits into the permanent fund; relating to appropriations to the dividend fund and general fund; and providing for an effective date."
00 HOUSE BILL NO. 132 01 "An Act relating to the Alaska permanent fund; relating to the earnings reserve 02 account; relating to the permanent fund dividend; relating to deposits into the 03 permanent fund; relating to appropriations to the dividend fund and general fund; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.05.565(a) is amended to read: 07 (a) There is established in the general fund the Alaska capital income fund 08 consisting of money appropriated [DEPOSITED TO THE FUND UNDER 09 AS 37.13.145(d) AND OF APPROPRIATIONS] to the fund. The fund shall be 10 invested by the Department of Revenue to yield competitive market rates as provided 11 in AS 37.10.071. Income earned on money in the fund may be appropriated to the 12 fund. 13 * Sec. 2. AS 37.13.010(a) is amended to read: 14 (a) Under art. IX, sec. 15, of the state constitution, there is established as a
01 separate fund the Alaska permanent fund. The Alaska permanent fund consists of 02 (1) 25 percent of all mineral lease rentals, royalties, royalty sale 03 proceeds, bonuses, net profit shares under AS 38.05.180(f) and (g), and federal 04 mineral revenue sharing payments received by the state [FROM MINERAL LEASES 05 ISSUED ON OR BEFORE DECEMBER 1, 1979, AND 25 PERCENT OF ALL 06 BONUSES RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED ON 07 OR BEFORE FEBRUARY 15, 1980; 08 (2) 50 PERCENT OF ALL MINERAL LEASE RENTALS, 09 ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER 10 AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING 11 PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED 12 AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED 13 BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15, 14 1980]; and 15 (2) [(3)] any other money appropriated to or otherwise allocated by 16 law or former law to the Alaska permanent fund. 17 * Sec. 3. AS 37.13.140 is amended to read: 18 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 19 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 20 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 21 of the fiscal year in accordance with generally accepted accounting principles, 22 excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 23 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 24 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 25 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 26 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 27 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 28 (b) The corporation shall determine the amount available for appropriation to 29 the general fund each year. The amount available for appropriation is 5.25 percent of 30 the average market value of the fund for the first five of the preceding six fiscal years, 31 including the fiscal year just ended, computed annually for each fiscal year in
01 accordance with generally accepted accounting principles. In this subsection, "average 02 market value of the fund" includes the balance of the earnings reserve account 03 established under AS 37.13.145 [, BUT DOES NOT INCLUDE THAT PORTION OF 04 THE PRINCIPAL ATTRIBUTED TO THE SETTLEMENT OF STATE v. 05 AMERADA HESS, ET AL., 1JU-77-847 CIV. (SUPERIOR COURT, FIRST 06 JUDICIAL DISTRICT)]. 07 * Sec. 4. AS 37.13.140(b), as amended by sec. 2, ch. 16, SLA 2018, is amended to read: 08 (b) The corporation shall determine the amount available for appropriation 09 each year. The amount available for appropriation is five percent of the average 10 market value of the fund for the first five of the preceding six fiscal years, including 11 the fiscal year just ended, computed annually for each fiscal year in accordance with 12 generally accepted accounting principles. In this subsection, "average market value of 13 the fund" includes the balance of the earnings reserve account established under 14 AS 37.13.145 [, BUT DOES NOT INCLUDE THAT PORTION OF THE 15 PRINCIPAL ATTRIBUTED TO THE SETTLEMENT OF STATE v. AMERADA 16 HESS, ET AL., 1JU-77-847 CIV. (SUPERIOR COURT, FIRST JUDICIAL 17 DISTRICT)]. 18 * Sec. 5. AS 37.13.145(c) is amended to read: 19 (c) After the appropriations [TRANSFER] under (b) and [AN 20 APPROPRIATION UNDER] (e) of this section, the legislature may appropriate 21 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 22 principal of the fund an amount sufficient to offset the effect of inflation on the 23 principal of the fund during that fiscal year. [HOWEVER, NONE OF THE AMOUNT 24 TRANSFERRED SHALL BE APPLIED TO INCREASE THE VALUE OF THAT 25 PORTION OF THE PRINCIPAL ATTRIBUTED TO THE SETTLEMENT OF 26 STATE v. AMERADA HESS, ET AL., 1JU-77-847 CIV. (SUPERIOR COURT, 27 FIRST JUDICIAL DISTRICT) ON JULY 1, 2004.] The corporation shall calculate 28 the amount to appropriate [TRANSFER] to the principal under this subsection by 29 (1) computing the average of the monthly United States Consumer 30 Price Index for all urban consumers for each of the two previous calendar years; 31 (2) computing the percentage change between the first and second
01 calendar year average; and 02 (3) applying that rate to the value of the principal of the fund on the 03 last day of the fiscal year just ended [, INCLUDING THAT PORTION OF THE 04 PRINCIPAL ATTRIBUTED TO THE SETTLEMENT OF STATE v. AMERADA 05 HESS, ET AL., 1JU-77-847 CIV. (SUPERIOR COURT, FIRST JUDICIAL 06 DISTRICT)]. 07 * Sec. 6. AS 37.13.145(e) is amended to read: 08 (e) The legislature may [NOT] appropriate from the earnings reserve account 09 to the general fund a total amount not to exceed [THAT EXCEEDS] the amount 10 available for appropriation under AS 37.13.140(b) in a fiscal year. 11 * Sec. 7. AS 37.13.150 is amended to read: 12 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's 13 investments must be identified as the source of the operating budget of the corporation 14 in the state's operating budget under AS 37.07 (Executive Budget Act). The 15 unexpended balance of the corporation's annual operating budget does not lapse at the 16 end of the fiscal year but shall be treated as [INCOME AND] part of the market value 17 of the fund under AS 37.13.140. 18 * Sec. 8. AS 37.13.300(c) is amended to read: 19 (c) Net income from the mental health trust fund may not be included in the 20 computation of [NET INCOME OR] market value available for [DISTRIBUTION 21 OR] appropriation under AS 37.13.140. 22 * Sec. 9. AS 43.23.025(a) is amended to read: 23 (a) By October 1 of each year, the commissioner shall determine the value of 24 each permanent fund dividend for that year by 25 (1) determining the total amount available for dividend payments, 26 which equals 27 (A) the amount of income of the Alaska permanent fund 28 appropriated [TRANSFERRED] to the dividend fund under AS 43.23.023 29 [AS 37.13.145(b)] during the current year; 30 (B) plus the unexpended and unobligated balances of prior 31 fiscal year appropriations that lapse into the dividend fund under
01 AS 43.23.045(d); 02 (C) less the amount necessary to pay prior year dividends from 03 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 04 43.23.055(3) and (7); 05 (D) less the amount necessary to pay dividends from the 06 dividend fund due to eligible applicants who, as determined by the department, 07 filed for a previous year's dividend by the filing deadline but who were not 08 included in a previous year's dividend computation; 09 (E) less appropriations from the dividend fund during the 10 current year, including amounts to pay costs of administering the dividend 11 program and the hold harmless provisions of AS 43.23.240; 12 (2) determining the number of individuals eligible to receive a 13 dividend payment for the current year and the number of estates and successors 14 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 15 (3) dividing the amount determined under (1) of this subsection by the 16 amount determined under (2) of this subsection. 17 * Sec. 10. AS 43.23 is amended by adding a new section to read: 18 Sec. 43.23.047. Appropriations to the dividend fund. Each fiscal year, the 19 legislature may appropriate from the general fund to the dividend fund established 20 under AS 43.23.045 the lesser of 21 (1) the amount equal to 33 percent of 22 (A) mineral lease bonuses, rentals, royalties, royalty sale 23 proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral 24 revenue sharing payments received by the state during the previous fiscal year; 25 and 26 (B) the oil and gas production tax deposited into the general 27 fund during the previous calendar year under AS 43.55; or 28 (2) the amount necessary for a $1,800 permanent fund dividend for 29 each individual 30 (A) eligible to receive a dividend under AS 43.23.005; and 31 (B) ineligible to receive a dividend under AS 43.23.005(d).
01 * Sec. 11. AS 37.13.145(b), 37.13.145(d), and 37.13.145(f) are repealed. 02 * Sec. 12. Section 28, ch. 134, SLA 1992, is repealed. 03 * Sec. 13. Section 4 of this Act takes effect on the effective date of sec. 2, ch. 16, SLA 04 2018. 05 * Sec. 14. Except as provided in sec. 13 of this Act, this Act takes effect July 1, 2020.