CSSB 107(FIN): "An Act relating to the Alaska permanent fund; relating to income of the Alaska permanent fund; relating to the amount available for appropriation and appropriations from the earnings reserve account; relating to the permanent fund dividend; and providing for an effective date."
00 CS FOR SENATE BILL NO. 107(FIN) 01 "An Act relating to the Alaska permanent fund; relating to income of the Alaska 02 permanent fund; relating to the amount available for appropriation and appropriations 03 from the earnings reserve account; relating to the permanent fund dividend; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.13.140 is amended to read: 07 Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 08 INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 09 AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 10 of the fiscal year in accordance with generally accepted accounting principles, 11 excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 12 DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 13 FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 14 ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE
01 FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 02 RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 03 (b) The corporation shall determine the amount available for appropriation 04 each year. The amount available for appropriation is five percent of the average 05 market value of the fund for the first five of the preceding six fiscal years, including 06 the fiscal year just ended, computed annually for each fiscal year in accordance with 07 generally accepted accounting principles. The amount available for appropriation 08 may not exceed the balance in the earnings reserve account described in 09 AS 37.13.145. In this subsection, "average market value of the fund" includes the 10 balance of the earnings reserve account established under AS 37.13.145, but does not 11 include that portion of the principal attributed to the settlement of State v. Amerada 12 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 13 * Sec. 2. AS 37.13.145(b) is amended to read: 14 (b) Each [AT THE END OF EACH] fiscal year, the legislature may 15 appropriate [CORPORATION SHALL TRANSFER] from the 16 (1) earnings reserve account to the general fund the amount 17 available for appropriation calculated under AS 37.13.140(b); 18 (2) general fund to the dividend fund established under 19 AS 43.23.045, 25 [50] percent of the income available for appropriation 20 [DISTRIBUTION] under AS 37.13.140(b) [AS 37.13.140]. 21 * Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 22 (b) Each fiscal year, the legislature may appropriate from the 23 (1) earnings reserve account to the general fund the amount available 24 for appropriation calculated under AS 37.13.140(b); 25 (2) general fund to the dividend fund established under AS 43.23.045, 26 50 [25] percent of the income available for appropriation under AS 37.13.140(b). 27 * Sec. 4. AS 37.13.145(c) is amended to read: 28 (c) After the appropriations [TRANSFER] under (b) [AND AN 29 APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 30 [CORPORATION SHALL TRANSFER] from the earnings reserve account to the 31 principal of the fund an amount sufficient to offset the effect of inflation on the
01 principal of the fund during that fiscal year. However, none of the amount 02 appropriated [TRANSFERRED] shall be applied to increase the value of that portion 03 of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77- 04 847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 05 calculate the amount to appropriate [TRANSFER] to the principal under this 06 subsection by 07 (1) computing the average of the monthly United States Consumer 08 Price Index for all urban consumers for each of the two previous calendar years; 09 (2) computing the percentage change between the first and second 10 calendar year average; and 11 (3) applying that rate to the value of the principal of the fund on the 12 last day of the fiscal year just ended, including that portion of the principal attributed 13 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 14 First Judicial District). 15 * Sec. 5. AS 37.13.145(d) is amended to read: 16 (d) Notwithstanding (b) of this section, income earned on money awarded in 17 or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 18 Court, First Judicial District), including settlement, summary judgment, or adjustment 19 to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 20 on the money, or on the earnings of the money shall be treated in the same manner as 21 other income of the Alaska permanent fund, except that it is not available for 22 appropriation [DISTRIBUTION] to the general fund or the dividend fund under 23 (b) of this section or [,] for an appropriation [TRANSFERS] to the principal under 24 (c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THIS 25 SECTION,] and shall be annually deposited into the Alaska capital income fund 26 (AS 37.05.565). 27 * Sec. 6. AS 37.13.300(c) is amended to read: 28 (c) Net income from the mental health trust fund may not be included in the 29 computation of the amount [NET INCOME OR MARKET VALUE] available for 30 [DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 31 * Sec. 7. AS 43.23.025(a) is amended to read:
01 (a) By October 1 of each year, the commissioner shall determine the value of 02 each permanent fund dividend for that year by 03 (1) determining the total amount available for dividend payments, 04 which equals 05 (A) the amount appropriated [OF INCOME OF THE 06 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 07 under AS 37.13.145(b) during the current year; 08 (B) plus the unexpended and unobligated balances of prior 09 fiscal year appropriations that lapse into the dividend fund under 10 AS 43.23.045(d); 11 (C) less the amount necessary to pay prior year dividends from 12 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 13 43.23.055(3) and (7); 14 (D) less the amount necessary to pay dividends from the 15 dividend fund due to eligible applicants who, as determined by the department, 16 filed for a previous year's dividend by the filing deadline but who were not 17 included in a previous year's dividend computation; 18 (E) less appropriations from the dividend fund during the 19 current year, including amounts to pay costs of administering the dividend 20 program and the hold harmless provisions of AS 43.23.240; 21 (2) determining the number of individuals eligible to receive a 22 dividend payment for the current year and the number of estates and successors 23 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 24 (3) dividing the amount determined under (1) of this subsection by the 25 amount determined under (2) of this subsection. 26 * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 27 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 CONDITIONAL EFFECT. (a) Section 3 of this Act takes effect only if, before 30 January 1, 2031, in a letter described in (b) of this section, the commissioner of revenue and 31 the director of the legislative finance division jointly agree that revenue measures that
01 (1) generated at least $1,300,000,000 of new annually recurring general fund 02 revenue, when compared to annual revenue generated from the statutes as they read on 03 January 1, 2023, have been passed by the Alaska State Legislature and enacted into law; and 04 (2) the estimated balance of the constitutional budget reserve fund established 05 in art. IX, sec. 17(a), Constitution of the State of Alaska, that is available for appropriation 06 exceeds $3,500,000,000, adjusted for inflation as described in (b)(2) of this section. 07 (b) On December 1 of each year, beginning in 2026 and ending in 2030, the 08 commissioner of revenue and the director of the legislative finance division shall notify the 09 revisor of statutes in a joint letter if 10 (1) revenue measures that generated at least $1,300,000,000 of new annually 11 recurring general fund revenue in the preceding calendar year, when compared to annual 12 revenue generated from the statutes as they read on January 1, 2023, have been passed by the 13 Alaska State Legislature and enacted into law by December 31 of the preceding calendar year; 14 and 15 (2) on June 30 of the year the letter is issued, the estimated balance of the 16 constitutional budget reserve fund established in art. IX, sec. 17(a), Constitution of the State 17 of Alaska, that is available for appropriation exceeds $3,500,000,000, adjusted for inflation by 18 (A) computing the average of the monthly United States Consumer 19 Price Index for all urban consumers for calendar year 2025; 20 (B) computing the average of the monthly United States Consumer 21 Price Index for all urban consumers for the preceding calendar year; 22 (C) computing the percentage change between the amounts in (A) and 23 (B) of this paragraph; and 24 (D) applying the rate calculated in (C) of this paragraph to 25 $3,500,000,000. 26 (c) In this section, "general fund revenue" does not include revenue from the 27 permanent fund. 28 * Sec. 10. If sec. 3 of this Act takes effect, it takes effect July 1 of the calendar year after the 29 commissioner of revenue and the director of the legislative finance division jointly agree 30 under sec. 9 of this Act that 31 (1) revenue measures that generated at least $1,300,000,000 of new annually
01 recurring general fund revenue, when compared to annual revenue generated from the statutes 02 as they read on January 1, 2023, have been passed by the Alaska State Legislature and 03 enacted into law; and 04 (2) the estimated balance of the constitutional budget reserve fund established 05 in art. IX, sec. 17(a), Constitution of the State of Alaska, that is available for appropriation 06 exceeds $3,500,000,000, adjusted for inflation as described in sec. 9(b)(2) of this Act. 07 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect July 1, 2024.