Legislature(2021 - 2022)
2022-05-04 Senate Journal
Full Journal pdf2022-05-04 Senate Journal Page 2511 SB 199 CS FOR SENATE BILL NO. 199(FIN) "An Act relating to use of income of the Alaska permanent fund; relating to the amount of the permanent fund dividend; relating to the duties of the commissioner of revenue; and providing for an effective date" was read the third time. Senator Myers moved the bill be returned to second reading for all amendments offered today. Without objection, the bill was returned to second reading. Senator Myers offered Amendment No. 1 : Page 2, following line 17: Insert a new bill section to read: "* Sec. 3. AS 37.13.140, as amended by sec. 2 of this Act, is amended to read: Sec. 37.13.140. Income. (a) Net income of the fund includes income of the earnings reserve account established under AS 37.13.145. Net income of the fund shall be computed annually as of the last day of the fiscal year in accordance with generally 2022-05-04 Senate Journal Page 2512 accepted accounting principles, excluding any unrealized gains or losses. Income available for distribution equals 21 percent of the net income of the fund for the last five fiscal years, including the fiscal year just ended, but may not exceed net income of the fund for the fiscal year just ended plus the balance in the earnings reserve account described in AS 37.13.145. (b) The corporation shall determine the amount available for appropriation each year. The amount available for appropriation is five percent of the average market value of the fund for the first five of the preceding six fiscal years, including the fiscal year just ended, computed annually for each fiscal year in accordance with generally accepted accounting principles. [THE AMOUNT AVAILABLE FOR APPROPRIATION MAY NOT EXCEED THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] In this subsection, "average market value of the fund" includes the balance of the earnings reserve account established under AS 37.13.145, but does not include that portion of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District)." Renumber the following bill sections accordingly. Page 2, line 27, through page 3, line 9: Delete all material and insert: "* Sec. 5. AS 37.13.145(b), as amended by sec. 4 of this Act, is amended to read: (b) At the end of each [EACH] fiscal year, the corporation shall transfer [LEGISLATURE MAY APPROPRIATE] from the earnings reserve account to the [(1)] dividend fund established under AS 43.23.045, 50 percent of the income [AMOUNT] available for distribution [APPROPRIATION] under AS 37.13.140 [AS 37.13.140(b); AND (2) GENERAL FUND, 50 PERCENT OF THE AMOUNT AVAILABLE FOR APPROPRIATION UNDER AS 37.13.140(b)]." Renumber the following bill sections accordingly. 2022-05-04 Senate Journal Page 2513 Page 3, following line 27: Insert a new bill section to read: "* Sec. 7. AS 37.13.145(c), as amended by sec. 6 of this Act, is amended to read: (c) After the transfer [APPROPRIATION] under (b) and an appropriation under (g) of this section, the corporation shall transfer [LEGISLATURE MAY APPROPRIATE] from the earnings reserve account to the principal of the fund an amount sufficient to offset the effect of inflation on the principal of the fund during that fiscal year. However, none of the amount transferred shall be applied to increase the value of that portion of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall calculate the amount to transfer to the principal under this subsection by (1) computing the average of the monthly United States Consumer Price Index for all urban consumers for each of the two previous calendar years; (2) computing the percentage change between the first and second calendar year average; and (3) applying that rate to the value of the principal of the fund on the last day of the fiscal year just ended, including that portion of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District)." Renumber the following bill sections accordingly. Page 4, following line 8: Insert new bill sections to read: "* Sec. 9. AS 37.13.145(d), as amended by sec. 8 of this Act, is amended to read: (d) Notwithstanding (b) of this section, income earned on money awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, summary judgment, or adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned on the money, or on the earnings of the money shall be treated in the same manner as other income of the Alaska permanent fund, except that it is [MAY] not [BE 2022-05-04 Senate Journal Page 2514 INCLUDED IN THE CALCULATION OF THE AMOUNT] available for distribution to the dividend fund, for transfers [APPROPRIATION UNDER AS 37.13.140(b) OR] to the principal under (c) of this section, or for an appropriation under (g) of this section, and shall be annually deposited into the Alaska capital income fund (AS 37.05.565). * Sec. 10. AS 37.13.145 is amended by adding new subsections to read: (g) The legislature may not appropriate from the earnings reserve account to the general fund a total amount that exceeds the amount available for appropriation under AS 37.13.140(b) in a fiscal year. (h) The combined total of the transfer under (b) of this section and an appropriation under (g) of this section may not exceed the amount available for appropriation under AS 37.13.140(b)." Renumber the following bill sections accordingly. Page 4, following line 13: Insert a new bill section to read: "* Sec. 12. AS 37.13.300(c), as amended by sec 11 of this Act, is amended to read: (c) Net income from the mental health trust fund may not be included in the computation of net income or [OF THE FUND, THE] market value [OF THE FUND, OR THE AMOUNT] available for distribution or appropriation under AS 37.13.140 [AS 37.13.140(b)]." Renumber the following bill sections accordingly. Page 5, following line 8: Insert a new bill section to read: "* Sec. 14. AS 43.23.025(a), as amended by sec. 13 of this Act, is amended to read: (a) By October 1 of each year, the commissioner shall determine the value of each permanent fund dividend for that year by (1) determining the total amount available for dividend payments, which equals 2022-05-04 Senate Journal Page 2515 (A) the amount of income of the Alaska permanent fund transferred [APPROPRIATED] to the dividend fund under AS 37.13.145(b) during the current year; (B) plus the unexpended and unobligated balances of prior fiscal year appropriations that lapse into the dividend fund under AS 43.23.045(d); (C) less the amount necessary to pay prior year dividends from the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 43.23.055(3) and (7); (D) less the amount necessary to pay dividends from the dividend fund due to eligible applicants who, as determined by the department, filed for a previous year's dividend by the filing deadline but who were not included in a previous year's dividend computation; (E) less appropriations from the dividend fund during the current year, including amounts to pay costs of administering the dividend program and the hold harmless provisions of AS 43.23.240; (2) determining the number of individuals eligible to receive a dividend payment for the current year and the number of estates and successors eligible to receive a dividend payment for the current year under AS 43.23.005(h); and (3) dividing the amount determined under (1) of this subsection by the amount determined under (2) of this subsection." Renumber the following bill sections accordingly. Page 5, lines 10 - 25: Delete all material and insert: "* Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT. Sections 3, 5, 7, 9, 10, 12, and 14 of this Act take effect only if, by November 30, 2022, the voters have not approved a resolution appearing on a statewide election ballot that amends the Constitution of the State of Alaska to require (1) that an annual permanent fund dividend be paid to eligible residents of the state; (2) the legislature to appropriate the amount for payment of an annual permanent fund dividend in accordance with statute; 2022-05-04 Senate Journal Page 2516 (3) state voter approval of a change to the statutes calculating the amount appropriated for the annual permanent fund dividend." Renumber the following bill sections accordingly. Page 5, lines 26 - 27: Delete "sec. 11 of this Act, sec. 5 of this Act takes effect, it takes effect July 1, 2027" Insert "sec. 16 of this Act, secs. 3, 5, 7, 9, 10, 12, and 14 take effect, they take effect July 1, 2023" Page 5, lines 28 - 29: Delete "secs. 12 and 13 of this Act, this Act takes effect immediately under AS 01.10.070(c)" Insert "sec. 17 of this Act, this Act takes effect July 1, 2022" Senator Myers moved for the adoption of Amendment No. 1. Senator Bishop objected. Senator Begich called the Senate. The call was satisfied. Senator Reinbold rose to a point of order. President Micciche cautioned members to proceed in order. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSSB 199(FIN) Second Reading Amendment No. 1? YEAS: 8 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Costello, Holland, Hughes, Myers, Olson, Reinbold, Shower, Wilson Nays: Begich, Bishop, Gray-Jackson, Hoffman, Kawasaki, Kiehl, Micciche, Revak, Stedman, Stevens, Wielechowski Excused: von Imhof and so, Amendment No. 1 failed. 2022-05-04 Senate Journal Page 2517 Senator Holland offered Amendment No. 2 : Page 2, following line 17: Insert a new bill section to read: "* Sec. 3. AS 37.13.140, as amended by sec. 2 of this Act, is amended to read: Sec. 37.13.140. Income. (a) Net income of the fund includes income of the earnings reserve account established under AS 37.13.145. Net income of the fund shall be computed annually as of the last day of the fiscal year in accordance with generally accepted accounting principles, excluding any unrealized gains or losses. Income available for distribution equals 21 percent of the net income of the fund for the last five fiscal years, including the fiscal year just ended, but may not exceed net income of the fund for the fiscal year just ended plus the balance in the earnings reserve account described in AS 37.13.145. (b) The corporation shall determine the amount available for appropriation each year. The amount available for appropriation is five percent of the average market value of the fund for the first five of the preceding six fiscal years, including the fiscal year just ended, computed annually for each fiscal year in accordance with generally accepted accounting principles. [THE AMOUNT AVAILABLE FOR APPROPRIATION MAY NOT EXCEED THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] In this subsection, "average market value of the fund" includes the balance of the earnings reserve account established under AS 37.13.145, but does not include that portion of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District)." Renumber the following bill sections accordingly. Page 2, line 27, through page 3, line 9: Delete all material and insert: "* Sec. 5. AS 37.13.145(b), as amended by sec. 4 of this Act, is amended to read: (b) At the end of each [EACH] fiscal year, the corporation shall transfer [LEGISLATURE MAY APPROPRIATE] from the earnings reserve account to the 2022-05-04 Senate Journal Page 2518 [(1)] dividend fund established under AS 43.23.045, 50 percent of the income [AMOUNT] available for distribution [APPROPRIATION] under AS 37.13.140 [AS 37.13.140(b); AND (2) GENERAL FUND, 50 PERCENT OF THE AMOUNT AVAILABLE FOR APPROPRIATION UNDER AS 37.13.140(b)]." Renumber the following bill sections accordingly. Page 3, following line 27: Insert a new bill section to read: "* Sec. 7. AS 37.13.145(c), as amended by sec. 6 of this Act, is amended to read: (c) After the transfer [APPROPRIATION] under (b) and an appropriation under (g) of this section, the corporation shall transfer [LEGISLATURE MAY APPROPRIATE] from the earnings reserve account to the principal of the fund an amount sufficient to offset the effect of inflation on the principal of the fund during that fiscal year. However, none of the amount transferred shall be applied to increase the value of that portion of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall calculate the amount to transfer to the principal under this subsection by (1) computing the average of the monthly United States Consumer Price Index for all urban consumers for each of the two previous calendar years; (2) computing the percentage change between the first and second calendar year average; and (3) applying that rate to the value of the principal of the fund on the last day of the fiscal year just ended, including that portion of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District)." Renumber the following bill sections accordingly. 2022-05-04 Senate Journal Page 2519 Page 4, following line 8: Insert new bill sections to read: "* Sec. 9. AS 37.13.145(d), as amended by sec. 8 of this Act, is amended to read: (d) Notwithstanding (b) of this section, income earned on money awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, summary judgment, or adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned on the money, or on the earnings of the money shall be treated in the same manner as other income of the Alaska permanent fund, except that it is [MAY] not [BE INCLUDED IN THE CALCULATION OF THE AMOUNT] available for distribution to the dividend fund, for transfers [APPROPRIATION UNDER AS 37.13.140(b) OR] to the principal under (c) of this section, or for an appropriation under (g) of this section, and shall be annually deposited into the Alaska capital income fund (AS 37.05.565). * Sec. 10. AS 37.13.145 is amended by adding new subsections to read: (g) The legislature may not appropriate from the earnings reserve account to the general fund a total amount that exceeds the amount available for appropriation under AS 37.13.140(b) in a fiscal year. (h) The combined total of the transfer under (b) of this section and an appropriation under (g) of this section may not exceed the amount available for appropriation under AS 37.13.140(b)." Renumber the following bill sections accordingly. Page 4, following line 13: Insert a new bill section to read: "* Sec. 12. AS 37.13.300(c), as amended by sec 11 of this Act, is amended to read: (c) Net income from the mental health trust fund may not be included in the computation of net income or [OF THE FUND, THE] market value [OF THE FUND, OR THE AMOUNT] available for distribution or appropriation under AS 37.13.140 [AS 37.13.140(b)]." 2022-05-04 Senate Journal Page 2520 Renumber the following bill sections accordingly. Page 5, following line 8: Insert a new bill section to read: "* Sec. 14. AS 43.23.025(a), as amended by sec. 13 of this Act, is amended to read: (a) By October 1 of each year, the commissioner shall determine the value of each permanent fund dividend for that year by (1) determining the total amount available for dividend payments, which equals (A) the amount of income of the Alaska permanent fund transferred [APPROPRIATED] to the dividend fund under AS 37.13.145(b) during the current year; (B) plus the unexpended and unobligated balances of prior fiscal year appropriations that lapse into the dividend fund under AS 43.23.045(d); (C) less the amount necessary to pay prior year dividends from the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 43.23.055(3) and (7); (D) less the amount necessary to pay dividends from the dividend fund due to eligible applicants who, as determined by the department, filed for a previous year's dividend by the filing deadline but who were not included in a previous year's dividend computation; (E) less appropriations from the dividend fund during the current year, including amounts to pay costs of administering the dividend program and the hold harmless provisions of AS 43.23.240; (2) determining the number of individuals eligible to receive a dividend payment for the current year and the number of estates and successors eligible to receive a dividend payment for the current year under AS 43.23.005(h); and (3) dividing the amount determined under (1) of this subsection by the amount determined under (2) of this subsection." Renumber the following bill sections accordingly. 2022-05-04 Senate Journal Page 2521 Page 5, lines 10 - 25: Delete all material and insert: "* Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT. Sections 3, 5, 7, 9, 10, 12, and 14 of this Act take effect only if, by November 30, 2022, the voters have not approved a resolution appearing on a statewide election ballot that amends the Constitution of the State of Alaska to require (1) that an annual permanent fund dividend be paid to eligible residents of the state; (2) the legislature to appropriate the amount for payment of an annual permanent fund dividend in accordance with statute; (3) state voter approval of a change to the statutes calculating the amount appropriated for the annual permanent fund dividend." Renumber the following bill sections accordingly. Page 5, lines 26 - 27: Delete "sec. 11 of this Act, sec. 5 of this Act takes effect, it takes effect July 1, 2027" Insert "sec. 16 of this Act, secs. 3, 5, 7, 9, 10, 12, and 14 take effect, they take effect July 1, 2023" Page 5, line 28: Delete "secs. 12 and 13" Insert "sec. 17" Senator Holland moved for the adoption of Amendment No. 2. Objections were heard. Senators Begich rose to a point of order. President Micciche cautioned members to proceed in order. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 199(FIN) Second Reading Amendment No. 2? 2022-05-04 Senate Journal Page 2522 YEAS: 9 NAYS: 10 EXCUSED: 1 ABSENT: 0 Yeas: Costello, Holland, Hughes, Micciche, Myers, Olson, Reinbold, Shower, Wilson Nays: Begich, Bishop, Gray-Jackson, Hoffman, Kawasaki, Kiehl, Revak, Stedman, Stevens, Wielechowski Excused: von Imhof Olson changed from "NAY" to "YEA" and so, Amendment No. 2 failed. Senator Wilson offered Amendment No. 3 : Page 2, line 19: Delete "may" Insert "shall" Page 2, line 28: Delete "may" Insert "shall" Page 3, line 4: Delete "may" Insert "shall" Senator Wilson moved for the adoption of Amendment No. 3. Senator Bishop objected. Senators Hoffman, Shower, Olson, Reinbold, Kawasaki, Hughes, Holland, Costello moved and asked unanimous consent to be shown as cosponsors on Amendment No. 3. Without objection, it was so ordered. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSSB 199(FIN) Second Reading Amendment No. 3? 2022-05-04 Senate Journal Page 2523 YEAS: 18 NAYS: 1 EXCUSED: 1 ABSENT: 0 Yeas: Begich, Costello, Gray-Jackson, Hoffman, Holland, Hughes, Kawasaki, Kiehl, Micciche, Myers, Olson, Reinbold, Revak, Shower, Stedman, Stevens, Wielechowski, Wilson Nays: Bishop Excused: von Imhof and so, Amendment No. 3 was adopted. Senator Stevens moved and asked unanimous consent CS FOR SENATE BILL NO. 199(FIN) am be returned to the Rules Committee. Without objection, the bill was returned to the Rules Committee.