Alaska 2023-2024 Regular Session

Alaska House Bill HB222 Compare Versions

Only one version of the bill is available at this time.

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2	2	HB0222a -1- HB 222
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11	11	HOUSE BILL NO. 222
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-THIRD LEGISLATURE - SECOND SESSION
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17	17	BY REPRESENTATIVE SUMNER
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19	19	Introduced: 1/8/24
20	20	Referred: Prefiled
21	21
22	22
23	23	A BILL
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25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to the Alaska permanent fund and the income and investments of the 1
28	28	fund; relating to the permanent fund dividend; and providing for an effective date." 2
29	29	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
30	30	* Section 1. AS 37.13.120 is amended by adding a new subsection to read: 4
31	31	(f) Notwithstanding (a) and (c) of this section, the board shall invest the fund 5
32	32	assets to achieve a 25 percent ownership share of a natural gas pipeline originating on 6
33	33	the North Slope. In this subsection, "natural gas pipeline" has the meaning given in 7
34	34	AS 31.25.390. 8
35	35	* Sec. 2. AS 37.13.145(b) is amended to read: 9
36	36	(b) Each [AT THE END OF EACH] fiscal year, the legislature may
37	37	10
38	38	appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 11
39	39	account to the dividend fund established under AS 43.23.045, the amount necessary 12
40	40	to distribute a dividend of up to $1,000 to each eligible individual [50 PERCENT 13
41	41	OF THE INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 14 33-LS0819\B
42	42	HB 222 -2- HB0222a
43	43	New Text Underlined [DELETED TEXT BRACKETED]
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45	45	* Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 1
46	46	(b) Each fiscal year, the legislature may appropriate from the earnings reserve 2
47	47	account to the dividend fund established under AS 43.23.045, 50 percent of the 3
48	48	income available for distribution under AS 37.13.140 [THE AMOUNT 4
49	49	NECESSARY TO DISTRIBUTE A DIVIDEND OF UP TO $1,000 TO EACH 5
50	50	ELIGIBLE INDIVIDUAL]. 6
51	51	* Sec. 4. AS 37.13.145(c) is amended to read: 7
52	52	(c) After the appropriation [TRANSFER] under (b) and an appropriation 8
53	53	under (e) of this section, the legislature may appropriate [CORPORATION SHALL 9
54	54	TRANSFER] from the earnings reserve account to the principal of the fund an amount 10
55	55	sufficient to offset the effect of inflation on the principal of the fund during that fiscal 11
56	56	year. However, none of the amount appropriated [TRANSFERRED] shall be applied 12
57	57	to increase the value of that portion of the principal attributed to the settlement of State 13
58	58	v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 14
59	59	July 1, 2004. The corporation shall calculate the amount to appropriate 15
60	60	[TRANSFER] to the principal under this subsection by 16
61	61	(1) computing the average of the monthly United States Consumer 17
62	62	Price Index for all urban consumers for each of the two previous calendar years; 18
63	63	(2) computing the percentage change between the first and second 19
64	64	calendar year average; and 20
65	65	(3) applying that rate to the value of the principal of the fund on the 21
66	66	last day of the fiscal year just ended, including that portion of the principal attributed 22
67	67	to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 23
68	68	First Judicial District). 24
69	69	* Sec. 5. AS 37.13.145(d) is amended to read: 25
70	70	(d) Notwithstanding (b) of this section, income earned on money awarded in 26
71	71	or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 27
72	72	Court, First Judicial District), including settlement, summary judgment, or adjustment 28
73	73	to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 29
74	74	on the money, or on the earnings of the money shall be treated in the same manner as 30
75	75	other income of the Alaska permanent fund, except that it is not available for 31 33-LS0819\B
76	76	HB0222a -3- HB 222
77	77	New Text Underlined [DELETED TEXT BRACKETED]
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79	79	appropriation [DISTRIBUTION] to the dividend fund under (b) of this section, for 1
80	80	an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 2
81	81	appropriation under (e) of this section, and shall be annually deposited into the Alaska 3
82	82	capital income fund (AS 37.05.565). 4
83	83	* Sec. 6. AS 37.13.300(b) is amended to read: 5
84	84	(b) The corporation shall 6
85	85	(1) hold and invest the mental health trust fund subject to 7
86	86	AS 37.13.120, except that it may not be used for an investment described in 8
87	87	AS 37.13.120(f); 9
88	88	(2) at least quarterly, prepare, publish, and distribute to the Board of 10
89	89	Trustees of the Alaska Mental Health Trust Authority a financial report showing 11
90	90	investment revenue and expenditures, including the allocation of the cash assets of the 12
91	91	mental health trust fund among investments; 13
92	92	(3) annually prepare, publish, and distribute to the Board of Trustees of 14
93	93	the Alaska Mental Health Trust Authority financial statements prepared in accordance 15
94	94	with generally accepted accounting principles consistently applied, and an audit report 16
95	95	prepared by a certified public accountant; 17
96	96	(4) periodically advise the Board of Trustees of the Alaska Mental 18
97	97	Health Trust Authority when revisions to long-range investment policy, including 19
98	98	asset allocation changes, are contemplated, and provide an opportunity for 20
99	99	consultation and comment on the changes before they are implemented; and 21
100	100	(5) transfer to the mental health trust settlement income account the net 22
101	101	income available for distribution attributable to the mental health trust fund at the end 23
102	102	of each fiscal year. 24
103	103	* Sec. 7. AS 37.13.300(c) is amended to read: 25
104	104	(c) Net income from the mental health trust fund may not be included in the 26
105	105	computation of the amount [NET INCOME OR MARKET VALUE] available for 27
106	106	[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 28
107	107	* Sec. 8. AS 43.23.025(a) is amended to read: 29
108	108	(a) By October 1 of each year, the commissioner shall determine the value of 30
109	109	each permanent fund dividend for that year by 31 33-LS0819\B
110	110	HB 222 -4- HB0222a
111	111	New Text Underlined [DELETED TEXT BRACKETED]
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113	113	(1) determining the total amount available for dividend payments, 1
114	114	which equals 2
115	115	(A) the amount appropriated [OF INCOME OF THE 3
116	116	ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 4
117	117	under AS 37.13.145(b) during the current year; 5
118	118	(B) plus the unexpended and unobligated balances of prior 6
119	119	fiscal year appropriations that lapse into the dividend fund under 7
120	120	AS 43.23.045(d); 8
121	121	(C) less the amount necessary to pay prior year dividends from 9
122	122	the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 10
123	123	43.23.055(3) and (7); 11
124	124	(D) less the amount necessary to pay dividends from the 12
125	125	dividend fund due to eligible applicants who, as determined by the department, 13
126	126	filed for a previous year's dividend by the filing deadline but who were not 14
127	127	included in a previous year's dividend computation; 15
128	128	(E) less appropriations from the dividend fund during the 16
129	129	current year, including amounts to pay costs of administering the dividend 17
130	130	program and the hold harmless provisions of AS 43.23.240; 18
131	131	(2) determining the number of individuals eligible to receive a 19
132	132	dividend payment for the current year and the number of estates and successors 20
133	133	eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 21
134	134	(3) dividing the amount determined under (1) of this subsection by the 22
135	135	amount determined under (2) of this subsection. 23
136	136	* Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 24
137	137	read: 25
138	138	CONDITIONAL EFFECT. (a) Sections 2 and 4 - 8 of the Act take effect only if, 26
139	139	before January 1, 2034, construction on a natural gas pipeline originating on the North Slope 27
140	140	has begun. 28
141	141	(b) Section 3 of this Act takes effect only if, 29
142	142	(1) before January 1, 2034, a natural gas pipeline originating on the North 30
143	143	Slope is completed; and 31 33-LS0819\B
144	144	HB0222a -5- HB 222
145	145	New Text Underlined [DELETED TEXT BRACKETED]
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147	147	(2) the pipeline described in (1) of this subsection has at least 25 percent of its 1
148	148	ownership share held by Alaska permanent fund assets. 2
149	149	(c) On December 1 of each year, beginning in 2024 and ending in 2034, the 3
150	150	commissioner of natural resources shall notify the revisor of statutes whether 4
151	151	(1) construction on a natural gas pipeline originating on the North Slope has 5
152	152	begun; 6
153	153	(2) a natural gas pipeline originating on the North Slope is completed. 7
154	154	(d) In this section, "natural gas pipeline" has the meaning given in AS 31.25.390. 8
155	155	* Sec. 10. If secs. 2 and 4 - 8 of this Act take effect, they take effect July 1 of the calendar 9
156	156	year after the commissioner of natural resources determines that construction of a natural gas 10
157	157	pipeline originating on the North Slope, as defined in sec. 9(d) of this Act, has begun. 11
158	158	* Sec. 11. If sec. 3 of this Act takes effect, it takes effect July 1 of the calendar year after the 12
159	159	commissioner of natural resources determines that a natural gas pipeline originating on the 13
160	160	North Slope, as defined in sec. 9(d) of this Act, is completed. 14
161	161	* Sec. 12. Except as provided in secs. 10 and 11 of this Act, this Act takes effect July 1, 15
162	162	2024. 16