CSSB 103(FIN): "An Act relating to deposits into the dividend fund and income of and appropriations from the earnings reserve account; and providing for an effective date."
00 CS FOR SENATE BILL NO. 103(FIN) 01 "An Act relating to deposits into the dividend fund and income of and appropriations 02 from the earnings reserve account; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.13.140 is amended to read: 05 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 06 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 07 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 08 of the fiscal year in accordance with generally accepted accounting principles, 09 excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 10 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 11 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 12 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 13 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 14 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.]
01 (b) The corporation shall determine the amount available for appropriation 02 each year. The amount available for appropriation is 5.25 percent of the average 03 market value of the fund for the first five of the preceding six fiscal years, including 04 the fiscal year just ended, computed annually for each fiscal year in accordance with 05 generally accepted accounting principles. In this subsection, "average market value of 06 the fund" includes the balance of the earnings reserve account established under 07 AS 37.13.145, but does not include that portion of the principal attributed to the 08 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 09 Judicial District). The amount available for appropriation may not exceed the 10 balance in the earnings reserve account described in AS 37.13.145. 11 * Sec. 2. AS 37.13.140(b), as amended by sec. 2, ch. 16, SLA 2018, is amended to read: 12 (b) The corporation shall determine the amount available for appropriation 13 each year. The amount available for appropriation is five percent of the average 14 market value of the fund for the first five of the preceding six fiscal years, including 15 the fiscal year just ended, computed annually for each fiscal year in accordance with 16 generally accepted accounting principles. In this subsection, "average market value of 17 the fund" includes the balance of the earnings reserve account established under 18 AS 37.13.145, but does not include that portion of the principal attributed to the 19 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 20 Judicial District). The amount available for appropriation may not exceed the 21 balance in the earnings reserve account described in AS 37.13.145. 22 * Sec. 3. AS 37.13.145(b) is amended to read: 23 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 24 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 25 account to the general fund the amount available for appropriation under 26 AS 37.13.140(b). The legislature may appropriate 50 percent of the amount 27 available for appropriation under AS 37.13.140(b) from the general fund to the 28 dividend fund established under AS 43.23.045 [, 50 PERCENT OF THE INCOME 29 AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 30 * Sec. 4. AS 37.13.145(c) is amended to read: 31 (c) After the appropriation to the general fund [TRANSFER] under (b)
01 [AND AN APPROPRIATION UNDER (e)] of this section, the legislature may 02 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 03 account to the principal of the fund an amount sufficient to offset the effect of inflation 04 on the principal of the fund during that fiscal year. However, none of the amount 05 transferred shall be applied to increase the value of that portion of the principal 06 attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 07 (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 08 calculate the amount to transfer to the principal under this subsection by 09 (1) computing the average of the monthly United States Consumer 10 Price Index for all urban consumers for each of the two previous calendar years; 11 (2) computing the percentage change between the first and second 12 calendar year average; and 13 (3) applying that rate to the value of the principal of the fund on the 14 last day of the fiscal year just ended, including that portion of the principal attributed 15 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 16 First Judicial District). 17 * Sec. 5. AS 37.13.145(d) is amended to read: 18 (d) Notwithstanding (b) of this section, income earned on money awarded in 19 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 20 Court, First Judicial District), including settlement, summary judgment, or adjustment 21 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 22 on the money, or on the earnings of the money shall be treated in the same manner as 23 other income of the Alaska permanent fund, except that it is not available for 24 appropriation under AS 37.13.140(b) or [DISTRIBUTION TO THE DIVIDEND 25 FUND, FOR TRANSFERS] to the principal under (c) of this section [, OR FOR AN 26 APPROPRIATION UNDER (e) OF THIS SECTION,] and shall be annually 27 deposited into the Alaska capital income fund (AS 37.05.565). 28 * Sec. 6. AS 37.13.145(e) is amended to read: 29 (e) The legislature may not appropriate from the earnings reserve account [TO 30 THE GENERAL FUND] a total amount that exceeds the amount available for 31 appropriation under AS 37.13.140(b) in a fiscal year.
01 * Sec. 7. AS 43.23.025(a) is amended to read: 02 (a) By October 1 of each year, the commissioner shall determine the value of 03 each permanent fund dividend for that year by 04 (1) determining the total amount available for dividend payments, 05 which equals 06 (A) the amount appropriated [OF INCOME OF THE 07 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 08 under AS 37.13.145(b) during the current year; 09 (B) plus the unexpended and unobligated balances of prior 10 fiscal year appropriations that lapse into the dividend fund under 11 AS 43.23.045(d); 12 (C) less the amount necessary to pay prior year dividends from 13 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 14 43.23.055(3) and (7); 15 (D) less the amount necessary to pay dividends from the 16 dividend fund due to eligible applicants who, as determined by the department, 17 filed for a previous year's dividend by the filing deadline but who were not 18 included in a previous year's dividend computation; 19 (E) less appropriations from the dividend fund during the 20 current year, including amounts to pay costs of administering the dividend 21 program and the hold harmless provisions of AS 43.23.240; 22 (2) determining the number of individuals eligible to receive a 23 dividend payment for the current year and the number of estates and successors 24 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 25 (3) dividing the amount determined under (1) of this subsection by the 26 amount determined under (2) of this subsection. 27 * Sec. 8. AS 37.13.145(f) is repealed. 28 * Sec. 9. Section 2 of this Act takes effect on the effective date of sec. 2, ch. 16, SLA 2018. 29 * Sec. 10. Except as provided in sec. 9 of this Act, this Act takes effect July 1, 2020.