HB 202: "An Act relating to the Alaska permanent fund; relating to dividends for state residents; relating to the use of certain state income; and providing for an effective date."
00 HOUSE BILL NO. 202 01 "An Act relating to the Alaska permanent fund; relating to dividends for state residents; 02 relating to the use of certain state income; 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(a) is amended to read: 05 (a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 06 EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER AS 37.13.145.] Net 07 income of the fund shall be computed annually as of the last day of the fiscal year in 08 accordance with generally accepted accounting principles, excluding any unrealized 09 gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 10 PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 11 YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 12 EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 13 PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 14 IN AS 37.13.145.]
01 * Sec. 2. AS 37.13.145(c) is amended to read: 02 (c) After the [TRANSFER UNDER (b) AND AN] appropriation under (e) of 03 this section, the legislature may appropriate [CORPORATION SHALL 04 TRANSFER] from the earnings reserve account to the principal of the fund an amount 05 sufficient to offset the effect of inflation on the principal of the fund during that fiscal 06 year. However, none of the amount appropriated [TRANSFERRED] shall be applied 07 to increase the value of that portion of the principal attributed to the settlement of State 08 v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 09 July 1, 2004. The corporation shall calculate the amount sufficient to offset the effect 10 of inflation [TO TRANSFER TO THE PRINCIPAL] under this subsection by 11 (1) computing the average of the monthly United States Consumer 12 Price Index for all urban consumers for each of the two previous calendar years; 13 (2) computing the percentage change between the first and second 14 calendar year average; and 15 (3) applying that rate to the value of the principal of the fund on the 16 last day of the fiscal year just ended, including that portion of the principal attributed 17 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 18 First Judicial District). 19 * Sec. 3. AS 37.13.145(d) is amended to read: 20 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 21 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 22 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 23 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 24 outcome of this case, or interest earned on the money, or on the earnings of the money 25 shall be treated in the same manner as other income of the Alaska permanent fund, 26 except that it is not available for appropriation [DISTRIBUTION TO THE 27 DIVIDEND FUND, FOR TRANSFERS] to the principal under (c) of this section [,] 28 or for an appropriation under (e) of this section, and shall be annually deposited into 29 the Alaska capital income fund (AS 37.05.565). 30 * Sec. 4. AS 37.13.145(e) is amended to read: 31 (e) The legislature may not appropriate from the earnings reserve account [TO
01 THE GENERAL FUND] a total amount that exceeds the amount available for 02 appropriation under AS 37.13.140(b) in a fiscal year. 03 * Sec. 5. 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 established under AS 43.23.045 [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 43.23.240; 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. 6. AS 43.23.028(a) is amended to read: 30 (a) By October 1 of each year, the commissioner shall give public notice of 31 the value of each permanent fund dividend for that year and notice of the information
01 required to be disclosed under (3) of this subsection. In addition, the stub attached to 02 each individual dividend disbursement advice must 03 (1) disclose the amount of each dividend attributable to legislative 04 appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 05 DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 06 CONSTITUTION OF THE STATE OF ALASKA]; 07 (2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 08 ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 09 APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 10 THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 11 (3)] disclose the amount by which each dividend has been reduced due 12 to each appropriation from the dividend fund, including amounts to pay the costs of 13 administering the dividend program and the hold harmless provisions of 14 AS 43.23.240; 15 (3) [(4)] include a statement that an individual is not eligible for a 16 dividend when 17 (A) during the qualifying year, the individual was convicted of 18 a felony; 19 (B) during all or part of the qualifying year, the individual was 20 incarcerated as a result of the conviction of a 21 (i) felony; or 22 (ii) misdemeanor if the individual has been convicted of 23 a prior felony or two or more prior misdemeanors; 24 (4) [(5)] include a statement that the legislative purpose for making 25 individuals listed under (3) [(4)] of this subsection ineligible is to 26 (A) provide funds for services for and payments to crime 27 victims and operating costs of the Violent Crimes Compensation Board; 28 (B) provide funds to pay restitution owed to crime victims; 29 (C) provide funds for grants to nonprofit organizations for 30 services for crime victims and for mental health services and substance abuse 31 treatment for offenders;
01 (D) provide funds for the office of victims' rights; 02 (E) provide funds to the Council on Domestic Violence and 03 Sexual Assault for grants for the operation of domestic violence and sexual 04 assault programs; and 05 (F) obtain reimbursement for some of the costs imposed on the 06 Department of Corrections related to incarceration or probation of those 07 individuals; 08 (5) [(6)] disclose the total amount that would have been paid during the 09 previous fiscal year to individuals who were ineligible to receive dividends under 10 AS 43.23.005(d) if they had been eligible; 11 (6) [(7)] disclose the total amount transferred or appropriated for the 12 current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 13 listed in AS 43.23.048. 14 * Sec. 7. AS 43.23.045 is amended by adding a new subsection to read: 15 (f) Each fiscal year, the legislature may appropriate to the dividend fund an 16 amount equal to 30 percent of all mineral lease rentals, royalties, royalty sale 17 proceeds, federal mineral revenue sharing payments, and bonuses received by the state 18 during that fiscal year. 19 * Sec. 8. AS 37.13.145(b) and 37.13.145(f) are repealed. 20 * Sec. 9. This Act takes effect July 1, 2021.