HB 114: "An Act relating to the Alaska permanent fund; relating to permanent fund dividends; relating to the use of state income from mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments, and bonuses from mineral leases; relating to contributions from permanent fund dividends to the general and permanent funds; and providing for an effective date."
00 HOUSE BILL NO. 114 01 "An Act relating to the Alaska permanent fund; relating to permanent fund dividends; 02 relating to the use of state income from mineral lease rentals, royalties, royalty sale 03 proceeds, federal mineral revenue sharing payments, and bonuses from mineral leases; 04 relating to contributions from permanent fund dividends to the general and permanent 05 funds; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 37.13.140(a) is amended to read: 08 (a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 09 EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER AS 37.13.145.] Net 10 income of the fund shall be computed annually as of the last day of the fiscal year in 11 accordance with generally accepted accounting principles, excluding any unrealized 12 gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 13 PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL
01 YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 02 EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 03 PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 04 IN AS 37.13.145.] 05 * Sec. 2. AS 37.13.145(c) is amended to read: 06 (c) After the [TRANSFER UNDER (b) AND AN] appropriation under (e) of 07 this section, the legislature may appropriate [CORPORATION SHALL 08 TRANSFER] from the earnings reserve account to the principal of the fund an amount 09 sufficient to offset the effect of inflation on the principal of the fund during that fiscal 10 year. However, none of the amount appropriated [TRANSFERRED] shall be applied 11 to increase the value of that portion of the principal attributed to the settlement of State 12 v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 13 July 1, 2004. The corporation shall calculate the amount sufficient to offset the effect 14 of inflation [TO TRANSFER TO THE PRINCIPAL] under this subsection by 15 (1) computing the average of the monthly United States Consumer 16 Price Index for all urban consumers for each of the two previous calendar years; 17 (2) computing the percentage change between the first and second 18 calendar year average; and 19 (3) applying that rate to the value of the principal of the fund on the 20 last day of the fiscal year just ended, including that portion of the principal attributed 21 to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 22 First Judicial District). 23 * Sec. 3. AS 37.13.145(d) is amended to read: 24 (d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 25 earned on money awarded in or received as a result of State v. Amerada Hess, et al., 26 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 27 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 28 outcome of this case, or interest earned on the money, or on the earnings of the money 29 shall be treated in the same manner as other income of the Alaska permanent fund, 30 except that it is not available for appropriation [DISTRIBUTION TO THE 31 DIVIDEND FUND, FOR TRANSFERS] to the principal under (c) of this section [,]
01 or for an appropriation under (e) of this section, and shall be annually deposited into 02 the Alaska capital income fund (AS 37.05.565). 03 * Sec. 4. AS 37.13.145(e) is amended to read: 04 (e) The legislature may not appropriate from the earnings reserve account [TO 05 THE GENERAL FUND] a total amount that exceeds the amount available for 06 appropriation under AS 37.13.140(b) in a fiscal year. 07 * Sec. 5. AS 43.23.025(a) is amended to read: 08 (a) By October 1 of each year, the commissioner shall determine the value of 09 each permanent fund dividend for that year by 10 (1) determining the total amount available for dividend payments, 11 which equals 12 (A) the amount appropriated [OF INCOME OF THE 13 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 14 established under AS 43.23.045 [AS 37.13.145(b)] during the current year; 15 (B) plus the unexpended and unobligated balances of prior 16 fiscal year appropriations that lapse into the dividend fund under 17 AS 43.23.045(d); 18 (C) less the amount necessary to pay prior year dividends from 19 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 20 43.23.055(3) and (7); 21 (D) less the amount necessary to pay dividends from the 22 dividend fund due to eligible applicants who, as determined by the department, 23 filed for a previous year's dividend by the filing deadline but who were not 24 included in a previous year's dividend computation; 25 (E) less appropriations from the dividend fund during the 26 current year, including amounts to pay costs of administering the dividend 27 program and the hold harmless provisions of AS 43.23.240; 28 (2) determining the number of individuals eligible to receive a 29 dividend payment for the current year and the number of estates and successors 30 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 31 (3) dividing the amount determined under (1) of this subsection by the
01 amount determined under (2) of this subsection. 02 * Sec. 6. AS 43.23.028(a) is amended to read: 03 (a) By October 1 of each year, the commissioner shall give public notice of 04 the value of each permanent fund dividend for that year and notice of the information 05 required to be disclosed under (3) of this subsection. In addition, the stub attached to 06 each individual dividend disbursement advice must 07 (1) disclose the amount of each dividend attributable to legislative 08 appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 09 DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 10 CONSTITUTION OF THE STATE OF ALASKA]; 11 (2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 12 ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 13 APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 14 THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 15 (3)] disclose the amount by which each dividend has been reduced due 16 to each appropriation from the dividend fund, including amounts to pay the costs of 17 administering the dividend program and the hold harmless provisions of 18 AS 43.23.240; 19 (3) [(4)] include a statement that an individual is not eligible for a 20 dividend when 21 (A) during the qualifying year, the individual was convicted of 22 a felony; 23 (B) during all or part of the qualifying year, the individual was 24 incarcerated as a result of the conviction of a 25 (i) felony; or 26 (ii) misdemeanor if the individual has been convicted of 27 a prior felony or two or more prior misdemeanors; 28 (4) [(5)] include a statement that the legislative purpose for making 29 individuals listed under (3) [(4)] of this subsection ineligible is to 30 (A) provide funds for services for and payments to crime 31 victims and operating costs of the Violent Crimes Compensation Board;
01 (B) provide funds to pay restitution owed to crime victims; 02 (C) provide funds for grants to nonprofit organizations for 03 services for crime victims and for mental health services and substance abuse 04 treatment for offenders; 05 (D) provide funds for the office of victims' rights; 06 (E) provide funds to the Council on Domestic Violence and 07 Sexual Assault for grants for the operation of domestic violence and sexual 08 assault programs; and 09 (F) obtain reimbursement for some of the costs imposed on the 10 Department of Corrections related to incarceration or probation of those 11 individuals; 12 (5) [(6)] disclose the total amount that would have been paid during the 13 previous fiscal year to individuals who were ineligible to receive dividends under 14 AS 43.23.005(d) if they had been eligible; 15 (6) [(7)] disclose the total amount transferred or appropriated for the 16 current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 17 listed in AS 43.23.048. 18 * Sec. 7. AS 43.23.045 is amended by adding a new subsection to read: 19 (f) Each fiscal year, after the appropriations or transfers made under 20 AS 37.13.010 and AS 37.14.150, the legislature may appropriate to the dividend fund 21 69 percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral 22 revenue sharing payments, and bonuses received by the state during that fiscal year. 23 * Sec. 8. AS 43.23 is amended by adding a new section to read: 24 Sec. 43.23.135. Contributions to the general and permanent funds. (a) 25 Notwithstanding AS 43.23.200, the electronic Alaska permanent fund dividend 26 application must allow an applicant to direct that money be subtracted from the 27 dividend payment and contributed to the state general fund or the principal of the 28 permanent fund. A contribution to the state general fund or the principal of the 29 permanent fund may be $25 or more, in increments of $25, up to the total amount of 30 the permanent fund dividend that the applicant is entitled to receive. If the applicant's 31 total amount of contributions under this subsection, when added to the total amount of
01 contributions under AS 43.23.130, exceeds the amount of the permanent fund 02 dividend that the applicant is entitled to receive, contributions under AS 43.23.130 03 shall have priority over contributions under this subsection. The electronic application 04 must include notice that seven percent of the money contributed to the state general 05 fund or the principal of the permanent fund will be used for administrative costs 06 incurred in implementing this subsection and that money from the dividend fund will 07 not be used for that purpose. 08 (b) A public agency that claims a permanent fund dividend on behalf of an 09 individual under AS 43.23.015(e) may not elect to make contributions from the 10 dividend under this section. 11 (c) In preparing the electronic Alaska permanent fund dividend application, 12 the department shall ensure that the option to make a contribution under this section is 13 in a separate section of the application than the option to make a contribution under 14 AS 43.23.130. 15 * Sec. 9. AS 37.13.145(b) and 37.13.145(f) are repealed. 16 * Sec. 10. This Act takes effect July 1, 2025.