HB 72: "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. 72 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. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 SHORT TITLE. This Act may be known as the Protecting Future Dividends Act. 08 * Sec. 2. AS 37.13.140 is amended to read: 09 Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 10 earnings reserve account established under AS 37.13.145. Net income of the fund shall 11 be computed annually as of the last day of the fiscal year in accordance with generally 12 accepted accounting principles, excluding any unrealized gains or losses. [INCOME 13 AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 14 INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING
01 THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 02 THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 03 THE EARNINGS RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 04 (b) The corporation shall determine the amount available for appropriation 05 each year. The amount available for appropriation is five percent of the average 06 market value of the fund for the first five of the preceding six fiscal years, including 07 the fiscal year just ended, computed annually for each fiscal year in accordance with 08 generally accepted accounting principles. The amount available for appropriation 09 may not exceed the balance in the earnings reserve account described in 10 AS 37.13.145. In this subsection, "average market value of the fund" includes the 11 balance of the earnings reserve account established under AS 37.13.145, but does not 12 include that portion of the principal attributed to the settlement of State v. Amerada 13 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 14 * Sec. 3. AS 37.13.145(b) is amended to read: 15 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 16 appropriate [CORPORATION SHALL TRANSFER] from the 17 (1) earnings reserve account to the general fund the amount 18 available for appropriation calculated under AS 37.13.140(b); 19 (2) general fund to the dividend fund established under 20 AS 43.23.045, 25 [50] percent of the income available for distribution under 21 AS 37.13.140. 22 * Sec. 4. 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 may 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. 5. 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 is not available for 16 appropriation [DISTRIBUTION] to the general fund or the dividend fund under 17 AS 37.13.140(b) or [,] for an appropriation [TRANSFERS] to the principal under 18 (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THIS 19 SECTION,] and shall be annually deposited into the Alaska capital income fund 20 (AS 37.05.565). 21 * Sec. 6. 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 the amount [NET INCOME OR MARKET VALUE] available for 24 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 25 * Sec. 7. AS 43.23.025(a) is amended to read: 26 (a) By October 1 of each year, the commissioner shall determine the value of 27 each permanent fund dividend for that year by 28 (1) determining the total amount available for dividend payments, 29 which equals 30 (A) the amount appropriated [OF INCOME OF THE 31 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund
01 under AS 37.13.145(b) during the current year; 02 (B) plus the unexpended and unobligated balances of prior 03 fiscal year appropriations that lapse into the dividend fund under 04 AS 43.23.045(d); 05 (C) less the amount necessary to pay prior year dividends from 06 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 07 43.23.055(3) and (7); 08 (D) less the amount necessary to pay dividends from the 09 dividend fund due to eligible applicants who, as determined by the department, 10 filed for a previous year's dividend by the filing deadline but who were not 11 included in a previous year's dividend computation; 12 (E) less appropriations from the dividend fund during the 13 current year, including amounts to pay costs of administering the dividend 14 program and the hold harmless provisions of AS 43.23.240; 15 (2) determining the number of individuals eligible to receive a 16 dividend payment for the current year and the number of estates and successors 17 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 18 (3) dividing the amount determined under (1) of this subsection by the 19 amount determined under (2) of this subsection. 20 * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 21 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).