HB 266: "An Act relating to the Alaska permanent fund; relating to dividends for state residents; relating to the use of certain state income; relating to contributions from permanent fund dividends to the general and permanent funds; and providing for an effective date."
00 HOUSE BILL NO. 266 01 "An Act relating to the Alaska permanent fund; relating to dividends for state residents; 02 relating to the use of certain state income; relating to contributions from permanent 03 fund dividends to the general and permanent funds; and providing for an effective 04 date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.13.140(a) is amended to read: 07 (a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 08 EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER AS 37.13.145.] Net 09 income of the fund shall be computed annually as of the last day of the fiscal year in 10 accordance with generally accepted accounting principles, excluding any unrealized 11 gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 12 PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 13 YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 14 EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED
01 PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 02 IN AS 37.13.145.] 03 * Sec. 2. AS 37.13.145(c) is amended to read: 04 (c) After the [TRANSFER UNDER (b) AND AN] appropriation under (e) of 05 this section, the legislature may appropriate [CORPORATION SHALL 06 TRANSFER] from the earnings reserve account to the principal of the fund an amount 07 sufficient to offset the effect of inflation on the principal of the fund during that fiscal 08 year. However, none of the amount appropriated [TRANSFERRED] shall be applied 09 to increase the value of that portion of the principal attributed to the settlement of State 10 v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 11 July 1, 2004. The corporation shall calculate the amount sufficient to offset the effect 12 of inflation [TO TRANSFER TO THE PRINCIPAL] under this subsection by 13 (1) computing the average of the monthly United States Consumer 14 Price Index for all urban consumers for each of the two previous calendar years; 15 (2) computing the percentage change between the first and second 16 calendar year average; and 17 (3) applying that rate to the value of the principal of the fund on the 18 last day of the fiscal year just ended, including that portion of the principal attributed 19 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 20 First Judicial District). 21 * Sec. 3. AS 37.13.145(d) is amended to read: 22 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 23 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 24 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 25 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 26 outcome of this case, or interest earned on the money, or on the earnings of the money 27 shall be treated in the same manner as other income of the Alaska permanent fund, 28 except that it is not available for appropriation [DISTRIBUTION TO THE 29 DIVIDEND FUND, FOR TRANSFERS] to the principal under (c) of this section [,] 30 or for an appropriation under (e) of this section, and shall be annually deposited into 31 the Alaska capital income fund (AS 37.05.565).
01 * Sec. 4. AS 37.13.145(e) is amended to read: 02 (e) The legislature may not appropriate from the earnings reserve account [TO 03 THE GENERAL FUND] a total amount that exceeds the amount available for 04 appropriation under AS 37.13.140(b) in a fiscal year. 05 * Sec. 5. AS 43.23.025(a) is amended to read: 06 (a) By October 1 of each year, the commissioner shall determine the value of 07 each permanent fund dividend for that year by 08 (1) determining the total amount available for dividend payments, 09 which equals 10 (A) the amount appropriated [OF INCOME OF THE 11 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 12 established under AS 43.23.045 [AS 37.13.145(b)] during the current year; 13 (B) plus the unexpended and unobligated balances of prior 14 fiscal year appropriations that lapse into the dividend fund under 15 AS 43.23.045(d); 16 (C) less the amount necessary to pay prior year dividends from 17 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 18 43.23.055(3) and (7); 19 (D) less the amount necessary to pay dividends from the 20 dividend fund due to eligible applicants who, as determined by the department, 21 filed for a previous year's dividend by the filing deadline but who were not 22 included in a previous year's dividend computation; 23 (E) less appropriations from the dividend fund during the 24 current year, including amounts to pay costs of administering the dividend 25 program and the hold harmless provisions of AS 43.23.240; 26 (2) determining the number of individuals eligible to receive a 27 dividend payment for the current year and the number of estates and successors 28 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 29 (3) dividing the amount determined under (1) of this subsection by the 30 amount determined under (2) of this subsection. 31 * Sec. 6. AS 43.23.028(a) is amended to read:
01 (a) By October 1 of each year, the commissioner shall give public notice of 02 the value of each permanent fund dividend for that year and notice of the information 03 required to be disclosed under (3) of this subsection. In addition, the stub attached to 04 each individual dividend disbursement advice must 05 (1) disclose the amount of each dividend attributable to legislative 06 appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 07 DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 08 CONSTITUTION OF THE STATE OF ALASKA]; 09 (2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 10 ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 11 APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 12 THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 13 (3)] disclose the amount by which each dividend has been reduced due 14 to each appropriation from the dividend fund, including amounts to pay the costs of 15 administering the dividend program and the hold harmless provisions of 16 AS 43.23.240; 17 (3) [(4)] include a statement that an individual is not eligible for a 18 dividend when 19 (A) during the qualifying year, the individual was convicted of 20 a felony; 21 (B) during all or part of the qualifying year, the individual was 22 incarcerated as a result of the conviction of a 23 (i) felony; or 24 (ii) misdemeanor if the individual has been convicted of 25 a prior felony or two or more prior misdemeanors; 26 (4) [(5)] include a statement that the legislative purpose for making 27 individuals listed under (3) [(4)] of this subsection ineligible is to 28 (A) provide funds for services for and payments to crime 29 victims and operating costs of the Violent Crimes Compensation Board; 30 (B) provide funds to pay restitution owed to crime victims; 31 (C) provide funds for grants to nonprofit organizations for
01 services for crime victims and for mental health services and substance abuse 02 treatment for offenders; 03 (D) provide funds for the office of victims' rights; 04 (E) provide funds to the Council on Domestic Violence and 05 Sexual Assault for grants for the operation of domestic violence and sexual 06 assault programs; and 07 (F) obtain reimbursement for some of the costs imposed on the 08 Department of Corrections related to incarceration or probation of those 09 individuals; 10 (5) [(6)] disclose the total amount that would have been paid during the 11 previous fiscal year to individuals who were ineligible to receive dividends under 12 AS 43.23.005(d) if they had been eligible; 13 (6) [(7)] disclose the total amount transferred or appropriated for the 14 current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 15 listed in AS 43.23.048. 16 * Sec. 7. AS 43.23.045 is amended by adding a new subsection to read: 17 (f) Each fiscal year, the legislature may appropriate to the dividend fund an 18 amount equal to 69 percent of all mineral lease rentals, royalties, royalty sale 19 proceeds, federal mineral revenue sharing payments, and bonuses received by the state 20 during that fiscal year. 21 * Sec. 8. AS 43.23 is amended by adding a new section to read: 22 Sec. 43.23.135. Contributions to the general and permanent funds. (a) 23 Notwithstanding AS 43.23.200, the electronic Alaska permanent fund dividend 24 application must allow an applicant to direct that money be subtracted from the 25 dividend payment and contributed to the state general fund or the principal of the 26 permanent fund. A contribution to the state general fund or the principal of the 27 permanent fund may be $25 or more, in increments of $25, up to the total amount of 28 the permanent fund dividend that the applicant is entitled to receive. If the applicant's 29 total amount of contributions under this subsection, when added to the total amount of 30 contributions under AS 43.23.130, exceeds the amount of the permanent fund 31 dividend that the applicant is entitled to receive, contributions under AS 43.23.130
01 shall have priority over contributions under this subsection. The electronic application 02 must include notice that seven percent of the money contributed to the state general 03 fund or the principal of the permanent fund will be used for administrative costs 04 incurred in implementing this subsection and that money from the dividend fund will 05 not be used for that purpose. 06 (b) A public agency that claims a permanent fund dividend on behalf of an 07 individual under AS 43.23.015(e) may not elect to make contributions from the 08 dividend under this section. 09 (c) In preparing the electronic Alaska permanent fund dividend application, 10 the department shall ensure that the option to make a contribution under this section is 11 in a separate section of the application than the option to make a contribution under 12 AS 43.23.130. 13 * Sec. 9. AS 37.13.145(b) and 37.13.145(f) are repealed. 14 * Sec. 10. This Act takes effect July 1, 2024.