HB 4009: "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. 4009 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 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 five 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. The amount available for appropriation 06 may not exceed the balance in the earnings reserve account described in 07 AS 37.13.145. In this subsection, "average market value of the fund" includes the 08 balance of the earnings reserve account established under AS 37.13.145, but does not 09 include that portion of the principal attributed to the settlement of State v. Amerada 10 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 11 * Sec. 2. AS 37.13.145(b) is amended to read: 12 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 13 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 14 account to the dividend fund established under AS 43.23.045, 15 (1) 10 percent of the amount available for appropriation under 16 AS 37.13.140(b) in fiscal year 2023; 17 (2) 15 percent of the amount available for appropriation under 18 AS 37.13.140(b) in fiscal year 2024; 19 (3) 20 percent of the amount available for appropriation under 20 AS 37.13.140(b) in fiscal year 2025; 21 (4) 25 percent of the amount available for appropriation under 22 AS 37.13.140(b) in each fiscal year after fiscal year 2025 [50 PERCENT OF THE 23 INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 24 * Sec. 3. AS 37.13.145(c) is amended to read: 25 (c) After the appropriations [TRANSFER] under (b) and [AN 26 APPROPRIATION UNDER] (e) of this section, the legislature may appropriate 27 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 28 principal of the fund an amount sufficient to offset the effect of inflation on the 29 principal of the fund during that fiscal year. However, none of the amount 30 appropriated under this subsection [TRANSFERRED] shall be applied to increase 31 the value of that portion of the principal attributed to the settlement of State v.
01 Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 02 July 1, 2004. The corporation shall calculate the amount that may be appropriated 03 [TO TRANSFER] to the principal under this subsection by 04 (1) computing the average of the monthly United States Consumer 05 Price Index for all urban consumers for each of the two previous calendar years; 06 (2) computing the percentage change between the first and second 07 calendar year average; and 08 (3) applying that rate to the value of the principal of the fund on the 09 last day of the fiscal year just ended, including that portion of the principal attributed 10 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 11 First Judicial District). 12 * Sec. 4. AS 37.13.145(d) is amended to read: 13 (d) Notwithstanding (b) of this section, income earned on money awarded in 14 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 15 Court, First Judicial District), including settlement, summary judgment, or adjustment 16 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 17 on the money, or on the earnings of the money shall be treated in the same manner as 18 other income of the Alaska permanent fund, except that it is not available for 19 appropriation [DISTRIBUTION] to the dividend fund under AS 37.13.140(b), for 20 an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 21 appropriation under (e) of this section, and shall be annually deposited into the Alaska 22 capital income fund (AS 37.05.565). 23 * Sec. 5. AS 37.13.145(f) is amended to read: 24 (f) The combined total of the appropriations [TRANSFER] under (b) and 25 [OF THIS SECTION AND AN APPROPRIATION UNDER] (e) of this section may 26 not exceed the amount available for appropriation under AS 37.13.140(b). 27 * Sec. 6. AS 37.13.300(c) is amended to read: 28 (c) Net income from the mental health trust fund may not be included in the 29 computation of the amount [NET INCOME OR MARKET VALUE] available for 30 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 31 * Sec. 7. AS 37.14.031(c) is amended to read:
01 (c) The net income of the fund shall be determined by the Alaska Permanent 02 Fund Corporation and shall be computed annually as of the last day of the fiscal 03 year in accordance with generally accepted accounting principles, excluding any 04 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 05 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND 06 UNDER AS 37.13.140]. 07 * Sec. 8. AS 43.23.025(a) is amended to read: 08 (a) By October 1 of each year, the commissioner shall determine the value of 09 each permanent fund dividend for that year by 10 (1) determining the total amount available for dividend payments, 11 which equals 12 (A) the amount appropriated [OF INCOME OF THE 13 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 14 under AS 37.13.145(b) and AS 43.23.045(f) during the current year; 15 (B) plus the unexpended and unobligated balances of prior 16 fiscal year appropriations that lapse into the dividend fund under 17 AS 43.23.045(d); 18 (C) less the amount necessary to pay prior year dividends from 19 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 20 43.23.055(3) and (7); 21 (D) less the amount necessary to pay dividends from the 22 dividend fund due to eligible applicants who, as determined by the department, 23 filed for a previous year's dividend by the filing deadline but who were not 24 included in a previous year's dividend computation; 25 (E) less appropriations from the dividend fund during the 26 current year, including amounts to pay costs of administering the dividend 27 program and the hold harmless provisions of AS 43.23.240; 28 (2) determining the number of individuals eligible to receive a 29 dividend payment for the current year and the number of estates and successors 30 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 31 (3) dividing the amount determined under (1) of this subsection by the
01 amount determined under (2) of this subsection. 02 * Sec. 9. AS 43.23.028(a) is amended to read: 03 (a) By October 1 of each year, the commissioner shall give public notice of 04 the value of each permanent fund dividend for that year and notice of the information 05 required to be disclosed under (2) [(3)] of this subsection. In addition, the stub 06 attached to each individual dividend disbursement advice must 07 (1) disclose the amount of each dividend attributable to legislative 08 appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 09 DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 10 CONSTITUTION OF THE STATE OF ALASKA]; 11 (2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 12 ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 13 APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 14 THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 15 (3)] disclose the amount by which each dividend has been reduced due 16 to each appropriation from the dividend fund, including amounts to pay the costs of 17 administering the dividend program and the hold harmless provisions of 18 AS 43.23.240; 19 (3) [(4)] include a statement that an individual is not eligible for a 20 dividend when 21 (A) during the qualifying year, the individual was convicted of 22 a felony; 23 (B) during all or part of the qualifying year, the individual was 24 incarcerated as a result of the conviction of a 25 (i) felony; or 26 (ii) misdemeanor if the individual has been convicted of 27 a prior felony or two or more prior misdemeanors; 28 (4) [(5)] include a statement that the legislative purpose for making 29 individuals listed under (3) [(4)] of this subsection ineligible is to 30 (A) provide funds for services for and payments to crime 31 victims and operating costs of the Violent Crimes Compensation Board;
01 (B) provide funds to pay restitution owed to crime victims; 02 (C) provide funds for grants to nonprofit organizations for 03 services for crime victims and for mental health services and substance abuse 04 treatment for offenders; 05 (D) provide funds for the office of victims' rights; 06 (E) provide funds to the Council on Domestic Violence and 07 Sexual Assault for grants for the operation of domestic violence and sexual 08 assault programs; and 09 (F) obtain reimbursement for some of the costs imposed on the 10 Department of Corrections related to incarceration or probation of those 11 individuals; 12 (5) [(6)] disclose the total amount that would have been paid during the 13 previous fiscal year to individuals who were ineligible to receive dividends under 14 AS 43.23.005(d) if they had been eligible; 15 (6) [(7)] disclose the total amount transferred or appropriated for the 16 current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 17 listed in AS 43.23.048. 18 * Sec. 10. AS 43.23.045 is amended by adding new subsections to read: 19 (f) Each fiscal year, the legislature may appropriate to the dividend fund an 20 amount equal to 21 (1) 35 percent of all oil and gas royalties and payments in fiscal year 22 2023; 23 (2) 40 percent of all oil and gas royalties and payments in fiscal year 24 2024; 25 (3) 45 percent of all oil and gas royalties and payments in fiscal year 26 2025; 27 (4) 50 percent of all oil and gas royalties and payments in each fiscal 28 year after fiscal year 2025. 29 (g) In this section, "oil and gas royalties and payments" means oil, gas, or oil 30 and gas lease rentals, royalties, royalty sale proceeds, and federal revenue sharing 31 payments and bonuses received by the state during a fiscal year.