HB 4010: "An Act relating to use of income of the Alaska permanent fund; relating to the amount of the permanent fund dividend; relating to the duties of the commissioner of revenue; and providing for an effective date."
00 HOUSE BILL NO. 4010 01 "An Act relating to use of income of the Alaska permanent fund; relating to the amount 02 of the permanent fund dividend; relating to the duties of the commissioner of revenue; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 37.13.140 is amended to read: 06 Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 07 earnings reserve account established under AS 37.13.145. Net income of the fund shall 08 be computed annually as of the last day of the fiscal year in accordance with generally 09 accepted accounting principles, excluding any unrealized gains or losses. [INCOME 10 AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 11 INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 12 THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 13 THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 14 THE EARNINGS 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 shall 13 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 14 account to the 15 (1) dividend fund established under AS 43.23.045, 35 [50] percent of 16 the amount [INCOME] available for appropriation [DISTRIBUTION] under 17 AS 37.13.140(b); and 18 (2) general fund, 65 percent of the amount available for 19 appropriation under AS 37.13.140(b); the legislature shall appropriate at least 20 20 percent of the amount appropriated under this paragraph for capital projects 21 [AS 37.13.140]. 22 * Sec. 3. AS 37.13.145(c) is amended to read: 23 (c) After the appropriations [TRANSFER] under (b) [AND AN 24 APPROPRIATION UNDER (e)] of this section, the legislature shall appropriate 25 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 26 principal of the fund an amount sufficient to offset the effect of inflation on the 27 principal of the fund during that fiscal year. However, none of the amount transferred 28 shall be applied to increase the value of that portion of the principal attributed to the 29 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 30 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 31 transfer to the principal under this subsection by
01 (1) computing the average of the monthly United States Consumer 02 Price Index for all urban consumers for each of the two previous calendar years; 03 (2) computing the percentage change between the first and second 04 calendar year average; and 05 (3) applying that rate to the value of the principal of the fund on the 06 last day of the fiscal year just ended, including that portion of the principal attributed 07 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 08 First Judicial District). 09 * Sec. 4. AS 37.13.145(d) is amended to read: 10 (d) Notwithstanding (b) of this section, income earned on money awarded in 11 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 12 Court, First Judicial District), including settlement, summary judgment, or adjustment 13 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 14 on the money, or on the earnings of the money shall be treated in the same manner as 15 other income of the Alaska permanent fund, except that it may [IS] not be included in 16 the calculation of the amount available for appropriation under AS 37.13.140(b) 17 or [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS] to the 18 principal under (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF 19 THIS SECTION,] and shall be annually deposited into the Alaska capital income fund 20 (AS 37.05.565). 21 * Sec. 5. AS 37.13.300(c) is amended to read: 22 (c) Net income from the mental health trust fund may not be included in the 23 computation of net income of the fund, the [OR] market value of the fund, or the 24 amount available for [DISTRIBUTION OR] appropriation under AS 37.13.140(b) 25 [AS 37.13.140]. 26 * Sec. 6. AS 37.14.031(c) is amended to read: 27 (c) The net income of the fund shall be determined by the Alaska Permanent 28 Fund Corporation and shall be computed annually as of the last day of the fiscal 29 year in accordance with generally accepted accounting principles, excluding any 30 unrealized gains or losses [IN THE SAME MANNER THE CORPORATION 31 DETERMINES THE NET INCOME OF THE ALASKA PERMANENT FUND
01 UNDER AS 37.13.140]. 02 * Sec. 7. AS 43.23.025(a) is amended to read: 03 (a) By October 1 of each year, the commissioner shall determine the value of 04 each permanent fund dividend for that year by 05 (1) determining the total amount available for dividend payments, 06 which equals 07 (A) the amount appropriated [OF INCOME OF THE 08 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 09 under AS 37.13.145(b) during the current year; 10 (B) plus the unexpended and unobligated balances of prior 11 fiscal year appropriations that lapse into the dividend fund under 12 AS 43.23.045(d); 13 (C) less the amount necessary to pay prior year dividends from 14 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 15 43.23.055(3) and (7); 16 (D) less the amount necessary to pay dividends from the 17 dividend fund due to eligible applicants who, as determined by the department, 18 filed for a previous year's dividend by the filing deadline but who were not 19 included in a previous year's dividend computation; 20 (E) less appropriations from the dividend fund during the 21 current year, including amounts to pay costs of administering the dividend 22 program and the hold harmless provisions of AS 43.23.240; 23 (2) determining the number of individuals eligible to receive a 24 dividend payment for the current year and the number of estates and successors 25 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 26 (3) dividing the amount determined under (1) of this subsection by the 27 amount determined under (2) of this subsection. 28 * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 29 * Sec. 9. This Act takes effect July 1, 2022.