HB 90: "An Act relating to income of the Alaska permanent fund and the amount available for appropriation; relating to appropriations from the earnings reserve account; relating to the amount of the permanent fund dividend; and providing for an effective date."
00 HOUSE BILL NO. 90 01 "An Act relating to income of the Alaska permanent fund and the amount available for 02 appropriation; relating to appropriations from the earnings reserve account; relating to 03 the amount of the permanent fund dividend; 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 may 13 appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 14 account to the dividend fund established under AS 43.23.045, the amount necessary 15 to distribute a dividend of up to $1,000 to each eligible individual [50 PERCENT 16 OF THE INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 17 * Sec. 3. AS 37.13.145(c) is amended to read: 18 (c) After the appropriations [TRANSFER] under (b) and (f) [AN 19 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 20 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 21 principal of the fund an amount sufficient to offset the effect of inflation on the 22 principal of the fund during that fiscal year. However, none of the amount transferred 23 shall be applied to increase the value of that portion of the principal attributed to the 24 settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 25 Judicial District) on July 1, 2004. The corporation shall calculate the amount to 26 transfer to the principal under this subsection by 27 (1) computing the average of the monthly United States Consumer 28 Price Index for all urban consumers for each of the two previous calendar years; 29 (2) computing the percentage change between the first and second 30 calendar year average; and 31 (3) applying that rate to the value of the principal of the fund on the
01 last day of the fiscal year just ended, including that portion of the principal attributed 02 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 03 First Judicial District). 04 * Sec. 4. AS 37.13.145(d) is amended to read: 05 (d) Notwithstanding (b) of this section, income earned on money awarded in 06 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 07 Court, First Judicial District), including settlement, summary judgment, or adjustment 08 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 09 on the money, or on the earnings of the money shall be treated in the same manner as 10 other income of the Alaska permanent fund, except that it is not available for 11 appropriation [DISTRIBUTION] to the dividend fund under (b) of this section, for 12 an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 13 appropriation under (f) [(e)] of this section, and shall be annually deposited into the 14 Alaska capital income fund (AS 37.05.565). 15 * Sec. 5. AS 37.13.145(f) is amended to read: 16 (f) Each year, the legislature may appropriate an amount from the 17 earnings reserve account established under this section to the general fund. The 18 combined total of the appropriations under this subsection and [TRANSFER 19 UNDER] (b) of this section [AND AN APPROPRIATION UNDER (e) OF THIS 20 SECTION] may not exceed the amount available for appropriation under 21 AS 37.13.140(b). 22 * Sec. 6. AS 37.13.300(c) is amended to read: 23 (c) Net income from the mental health trust fund may not be included in the 24 computation of the amount [NET INCOME OR MARKET VALUE] available for 25 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 26 * Sec. 7. AS 43.23.025(a) is amended to read: 27 (a) By October 1 of each year, the commissioner shall determine the value of 28 each permanent fund dividend for that year by 29 (1) determining the total amount available for dividend payments, 30 which equals 31 (A) the amount appropriated [OF INCOME OF THE
01 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 02 under AS 37.13.145(b) during the current year; 03 (B) plus the unexpended and unobligated balances of prior 04 fiscal year appropriations that lapse into the dividend fund under 05 AS 43.23.045(d); 06 (C) less the amount necessary to pay prior year dividends from 07 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 08 43.23.055(3) and (7); 09 (D) less the amount necessary to pay dividends from the 10 dividend fund due to eligible applicants who, as determined by the department, 11 filed for a previous year's dividend by the filing deadline but who were not 12 included in a previous year's dividend computation; 13 (E) less appropriations from the dividend fund during the 14 current year, including amounts to pay costs of administering the dividend 15 program and the hold harmless provisions of AS 43.23.240; 16 (2) determining the number of individuals eligible to receive a 17 dividend payment for the current year and the number of estates and successors 18 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 19 (3) dividing the amount determined under (1) of this subsection by the 20 amount determined under (2) of this subsection. 21 * Sec. 8. AS 37.13.145(e) is repealed. 22 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).