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HOUSE BILL NO. 222
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY REPRESENTATIVE SUMNER
Introduced: 1/8/24
Referred: Prefiled
A BILL
FOR AN ACT ENTITLED
"An Act relating to the Alaska permanent fund and the income and investments of the 1
fund; relating to the permanent fund dividend; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 37.13.120 is amended by adding a new subsection to read: 4
(f) Notwithstanding (a) and (c) of this section, the board shall invest the fund 5
assets to achieve a 25 percent ownership share of a natural gas pipeline originating on 6
the North Slope. In this subsection, "natural gas pipeline" has the meaning given in 7
AS 31.25.390. 8
* Sec. 2. AS 37.13.145(b) is amended to read: 9
(b) Each [AT THE END OF EACH] fiscal year, the legislature may
10
appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 11
account to the dividend fund established under AS 43.23.045, the amount necessary 12
to distribute a dividend of up to $1,000 to each eligible individual [50 PERCENT 13
OF THE INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 14 33-LS0819\B
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* Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 1
(b) Each fiscal year, the legislature may appropriate from the earnings reserve 2
account to the dividend fund established under AS 43.23.045, 50 percent of the 3
income available for distribution under AS 37.13.140 [THE AMOUNT 4
NECESSARY TO DISTRIBUTE A DIVIDEND OF UP TO $1,000 TO EACH 5
ELIGIBLE INDIVIDUAL]. 6
* Sec. 4. AS 37.13.145(c) is amended to read: 7
(c) After the appropriation [TRANSFER] under (b) and an appropriation 8
under (e) of this section, the legislature may appropriate [CORPORATION SHALL 9
TRANSFER] from the earnings reserve account to the principal of the fund an amount 10
sufficient to offset the effect of inflation on the principal of the fund during that fiscal 11
year. However, none of the amount appropriated [TRANSFERRED] shall be applied 12
to increase the value of that portion of the principal attributed to the settlement of State 13
v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 14
July 1, 2004. The corporation shall calculate the amount to appropriate 15
[TRANSFER] to the principal under this subsection by 16
(1) computing the average of the monthly United States Consumer 17
Price Index for all urban consumers for each of the two previous calendar years; 18
(2) computing the percentage change between the first and second 19
calendar year average; and 20
(3) applying that rate to the value of the principal of the fund on the 21
last day of the fiscal year just ended, including that portion of the principal attributed 22
to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 23
First Judicial District). 24
* Sec. 5. AS 37.13.145(d) is amended to read: 25
(d) Notwithstanding (b) of this section, income earned on money awarded in 26
or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 27
Court, First Judicial District), including settlement, summary judgment, or adjustment 28
to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 29
on the money, or on the earnings of the money shall be treated in the same manner as 30
other income of the Alaska permanent fund, except that it is not available for 31 33-LS0819\B
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appropriation [DISTRIBUTION] to the dividend fund under (b) of this section, for 1
an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 2
appropriation under (e) of this section, and shall be annually deposited into the Alaska 3
capital income fund (AS 37.05.565). 4
* Sec. 6. AS 37.13.300(b) is amended to read: 5
(b) The corporation shall 6
(1) hold and invest the mental health trust fund subject to 7
AS 37.13.120, except that it may not be used for an investment described in 8
AS 37.13.120(f); 9
(2) at least quarterly, prepare, publish, and distribute to the Board of 10
Trustees of the Alaska Mental Health Trust Authority a financial report showing 11
investment revenue and expenditures, including the allocation of the cash assets of the 12
mental health trust fund among investments; 13
(3) annually prepare, publish, and distribute to the Board of Trustees of 14
the Alaska Mental Health Trust Authority financial statements prepared in accordance 15
with generally accepted accounting principles consistently applied, and an audit report 16
prepared by a certified public accountant; 17
(4) periodically advise the Board of Trustees of the Alaska Mental 18
Health Trust Authority when revisions to long-range investment policy, including 19
asset allocation changes, are contemplated, and provide an opportunity for 20
consultation and comment on the changes before they are implemented; and 21
(5) transfer to the mental health trust settlement income account the net 22
income available for distribution attributable to the mental health trust fund at the end 23
of each fiscal year. 24
* Sec. 7. AS 37.13.300(c) is amended to read: 25
(c) Net income from the mental health trust fund may not be included in the 26
computation of the amount [NET INCOME OR MARKET VALUE] available for 27
[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 28
* Sec. 8. AS 43.23.025(a) is amended to read: 29
(a) By October 1 of each year, the commissioner shall determine the value of 30
each permanent fund dividend for that year by 31 33-LS0819\B
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(1) determining the total amount available for dividend payments, 1
which equals 2
(A) the amount appropriated [OF INCOME OF THE 3
ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 4
under AS 37.13.145(b) during the current year; 5
(B) plus the unexpended and unobligated balances of prior 6
fiscal year appropriations that lapse into the dividend fund under 7
AS 43.23.045(d); 8
(C) less the amount necessary to pay prior year dividends from 9
the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 10
43.23.055(3) and (7); 11
(D) less the amount necessary to pay dividends from the 12
dividend fund due to eligible applicants who, as determined by the department, 13
filed for a previous year's dividend by the filing deadline but who were not 14
included in a previous year's dividend computation; 15
(E) less appropriations from the dividend fund during the 16
current year, including amounts to pay costs of administering the dividend 17
program and the hold harmless provisions of AS 43.23.240; 18
(2) determining the number of individuals eligible to receive a 19
dividend payment for the current year and the number of estates and successors 20
eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 21
(3) dividing the amount determined under (1) of this subsection by the 22
amount determined under (2) of this subsection. 23
* Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 24
read: 25
CONDITIONAL EFFECT. (a) Sections 2 and 4 - 8 of the Act take effect only if, 26
before January 1, 2034, construction on a natural gas pipeline originating on the North Slope 27
has begun. 28
(b) Section 3 of this Act takes effect only if, 29
(1) before January 1, 2034, a natural gas pipeline originating on the North 30
Slope is completed; and 31 33-LS0819\B
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(2) the pipeline described in (1) of this subsection has at least 25 percent of its 1
ownership share held by Alaska permanent fund assets. 2
(c) On December 1 of each year, beginning in 2024 and ending in 2034, the 3
commissioner of natural resources shall notify the revisor of statutes whether 4
(1) construction on a natural gas pipeline originating on the North Slope has 5
begun; 6
(2) a natural gas pipeline originating on the North Slope is completed. 7
(d) In this section, "natural gas pipeline" has the meaning given in AS 31.25.390. 8
* Sec. 10. If secs. 2 and 4 - 8 of this Act take effect, they take effect July 1 of the calendar 9
year after the commissioner of natural resources determines that construction of a natural gas 10
pipeline originating on the North Slope, as defined in sec. 9(d) of this Act, has begun. 11
* Sec. 11. If sec. 3 of this Act takes effect, it takes effect July 1 of the calendar year after the 12
commissioner of natural resources determines that a natural gas pipeline originating on the 13
North Slope, as defined in sec. 9(d) of this Act, is completed. 14
* Sec. 12. Except as provided in secs. 10 and 11 of this Act, this Act takes effect July 1, 15
2024. 16