CSHB 110(W&M): "An Act relating to the Alaska permanent fund; relating to income of the Alaska permanent fund; relating to the earnings reserve account; relating to the dividend fund; relating to the permanent fund dividend; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 110(W&M) 01 "An Act relating to the Alaska permanent fund; relating to income of the Alaska 02 permanent fund; relating to the earnings reserve account; relating to the dividend fund; 03 relating to 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. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature to 08 (1) pass a constitutional amendment that 09 (A) requires the payment of permanent fund dividends to eligible state 10 residents; and 11 (B) provides that the payment of permanent fund dividends is a 12 constitutionally allowable dedication of funds; 13 (2) establish, in this Act, the statutory maximum annual draw on the earnings 14 reserve account as a percent of the market value of that account;
01 (3) establish, in this Act, the statutory amount of the annual permanent fund 02 dividend. 03 * Sec. 2. AS 37.05.215(a) is amended to read: 04 (a) The Department of Administration shall develop, operate, and maintain a 05 searchable Internet website that is accessible to the public at no cost and that provides 06 financial information available from the central accounting system or the annual 07 financial report prepared and filed under AS 37.05.210(a)(1), describing 08 (1) unaudited state revenue for the preceding month, including 09 (A) a receipt or deposit by a state agency into a fund or account 10 established within the state treasury; 11 (B) proceeds from taxes received, categorized by source type, 12 including a compulsory contribution imposed by the state for the purpose of 13 financing services; 14 (C) state agency earnings, including amounts collected for sales 15 or services, licenses or permits issued, or otherwise received by a state agency 16 under the agency's regulations; 17 (D) revenue received for the use of state money or property, 18 including interest and lease payments; 19 (E) gifts, donations, and federal receipts; and 20 (F) other revenue; 21 (2) unaudited expenditures for the preceding month, including 22 (A) the name and location of any person to whom payment was 23 made; 24 (B) the amount of the expenditure disbursed; 25 (C) the type of transaction, by account code, including the 26 purpose of the expenditure; 27 (D) other information specified by the Department of 28 Administration; 29 (3) the estimated balances, for the preceding month, of the statutory 30 budget reserve fund (AS 37.05.540), the constitutional budget reserve fund (art. IX, 31 sec. 17, Constitution of the State of Alaska), and the permanent fund earnings reserve
01 account (art. IX, sec. 15, Constitution of the State of Alaska [AS 37.13.145]); 02 (4) the amount deposited into the permanent fund under art. IX, sec 15, 03 Constitution of the State of Alaska for the preceding fiscal year; 04 (5) state revenue and expenditures, summarized for the preceding 05 fiscal year, as follows: 06 (A) general fund revenue sources; 07 (B) general fund expenditures categorized by function; 08 (C) general fund expenditures categorized by state agency; 09 (D) general fund expenditures categorized by account; and 10 (E) total general fund revenue versus expenditures; 11 (6) total assets versus liabilities at the end of the fiscal year; and 12 (7) for the preceding 10 years, by fiscal year, the following: 13 (A) the number of full-time, part-time, and temporary 14 employees employed by the state, by state agency; 15 (B) the number of independent contractors engaged by the 16 state, by state agency; 17 (C) the total long-term debt owed by the state, by state agency; 18 (D) total general fund expenditures; and 19 (E) total general fund payroll, by state agency. 20 * Sec. 3. AS 37.13.140 is amended to read: 21 Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 22 earnings reserve account established under art. IX, sec. 15, Constitution of the State 23 of Alaska [AS 37.13.145]. Net income of the fund shall be computed annually as of 24 the last day of the fiscal year in accordance with generally accepted accounting 25 principles, excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 26 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 27 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 28 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 29 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 30 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 31 (b) The corporation shall determine the income [AMOUNT] available for
01 distribution from the permanent fund [APPROPRIATION] each year. The income 02 [AMOUNT] available for distribution [APPROPRIATION] is five percent of the 03 average market value of the fund for the first five of the preceding six fiscal years, 04 including the fiscal year just ended, computed annually for each fiscal year in 05 accordance with generally accepted accounting principles. In this subsection, "average 06 market value of the fund" includes the balance of the earnings reserve account 07 [ESTABLISHED UNDER AS 37.13.145], but does not include that portion of the 08 principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. 09 (Superior Court, First Judicial District). 10 * Sec. 4. AS 37.13.145(a) is amended to read: 11 (a) Under art. IX, sec. 15, Constitution of the State of Alaska, the [THE] 12 earnings reserve account is established as a separate account in the fund. Income from 13 the fund shall be deposited by the corporation into the account as soon as it is 14 received. Money in the account shall be invested in investments authorized under 15 AS 37.13.120. 16 * Sec. 5. AS 37.13.145(b) is amended to read: 17 (b) Each [AT THE END OF EACH] fiscal year, the corporation shall transfer 18 from the earnings reserve account to the general [DIVIDEND] fund an amount equal 19 to the lesser of 20 (1) [ESTABLISHED UNDER AS 43.23.045, 50 PERCENT OF] the 21 income available for distribution from the permanent fund, determined under 22 AS 37.13.140(b); or 23 (2) the balance of the earnings reserve account [AS 37.13.140]. 24 * Sec. 6. AS 37.13.145(d) is amended to read: 25 (d) Notwithstanding (b) of this section, income earned on money awarded in 26 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 27 Court, First Judicial District), including settlement, summary judgment, or adjustment 28 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 29 on the money, or on the earnings of the money shall be treated in the same manner as 30 other income of the Alaska permanent fund, except that it may not be included in the 31 computation of the income available for distribution from the permanent fund, is
01 not available for transfer [DISTRIBUTION] to the general [DIVIDEND] fund [, 02 FOR TRANSFERS TO THE PRINCIPAL] under (b) [(c)] of this section, [OR FOR 03 AN APPROPRIATION UNDER (E) OF THIS SECTION,] and shall be annually 04 deposited into the Alaska capital income fund (AS 37.05.565). 05 * Sec. 7. AS 37.13.300(c) is amended to read: 06 (c) Net income from the mental health trust fund may not be included in the 07 computation of the [NET] income [OR MARKET VALUE] available for distribution 08 from the permanent fund [OR APPROPRIATION] under AS 37.13.140(b) 09 [AS 37.13.140]. 10 * Sec. 8. AS 37.13.310(d) is amended to read: 11 (d) Net income from the power cost equalization endowment fund may not be 12 included in the computation of the [NET] income [OR MARKET VALUE] available 13 for distribution from the permanent fund [OR APPROPRIATION] under 14 AS 37.13.140(b) [AS 37.13.140]. 15 * Sec. 9. AS 43.23.025(a) is amended to read: 16 (a) By October 1 of each year, the commissioner shall determine the value of 17 each permanent fund dividend for that year by 18 (1) determining the total amount available for dividend payments, 19 which equals 20 (A) the amount of income of the Alaska permanent fund 21 transferred to the dividend fund under AS 43.23.045(a) [AS 37.13.145(b)] 22 during the current year; 23 (B) plus the unexpended and unobligated balances of prior 24 fiscal year transfers and appropriations that lapse into the dividend fund under 25 AS 43.23.045(d); 26 (C) less the amount necessary to pay prior year dividends from 27 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 28 43.23.055(3) and (7); 29 (D) less the amount necessary to pay dividends from the 30 dividend fund due to eligible applicants who, as determined by the department, 31 filed for a previous year's dividend by the filing deadline but who were not
01 included in a previous year's dividend computation; 02 (E) less appropriations from the dividend fund during the 03 current year, including amounts to pay costs of administering the dividend 04 program and the hold harmless provisions of AS 43.23.240; 05 (2) determining the number of individuals eligible to receive a 06 dividend payment for the current year and the number of estates and successors 07 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 08 (3) dividing the amount determined under (1) of this subsection by the 09 amount determined under (2) of this subsection. 10 * Sec. 10. AS 43.23.028(b) is amended to read: 11 (b) To the extent that amounts transferred [APPROPRIATED] for a fiscal 12 year do not exceed the total amount that would have been paid during the previous 13 fiscal year to individuals who were ineligible to receive dividends under 14 AS 43.23.005(d) or under AS 43.23.021(b) if they had been eligible, the notice 15 requirements of (a)(3) of this section do not apply to transfers from the dividend fund 16 to the restorative justice account (AS 43.23.048). 17 * Sec. 11. AS 43.23.045(a) is amended to read: 18 (a) The dividend fund is established as a separate fund in the state treasury. 19 On June 30 of each year, the department shall transfer from the general fund to 20 the dividend fund an amount equal to 50 percent of the amount transferred to the 21 general fund under AS 37.13.145(b). The dividend fund shall be administered by the 22 commissioner and shall be invested by the commissioner in the same manner as 23 provided in AS 37.10.070. 24 * Sec. 12. AS 43.23.045(d) is amended to read: 25 (d) Unless specified otherwise in an appropriation act, the unexpended and 26 unobligated balance of an appropriation to implement this chapter lapses into the 27 dividend fund on June 30 of the fiscal year for which the appropriation was made and 28 shall be used in determining the amount of and paying the subsequent year's dividend 29 as provided in AS 43.23.025(a)(1)(B). The unexpended and unobligated balance of 30 a transfer to implement this chapter lapses into the dividend fund on June 30 of 31 the fiscal year for which the transfer was made and shall be used in determining
01 the amount of and paying the subsequent year's dividend as provided in 02 AS 43.23.025(a)(1)(B). 03 * Sec. 13. AS 37.13.145(c), 37.13.145(e), and 37.13.145(f) are repealed. 04 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 CONDITIONAL EFFECT. This Act takes effect only if a constitutional amendment to 07 art. IX, sec. 15, Constitution of the State of Alaska, requiring an annual permanent fund 08 dividend be paid to eligible residents of the state, is passed by the legislature and approved by 09 the voters at the 2024 general election. 10 * Sec. 15. If this Act takes effect, it takes effect July 1, 2025.