Alaska 2023-2024 Regular Session

Alaska House Bill HB266 Compare Versions

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

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2	2	HB0266a -1- HB 266
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5	5	33-LS1157\B
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11	11	HOUSE BILL NO. 266
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-THIRD LEGISLATURE - SECOND SESSION
16	16
17	17	BY REPRESENTATIVE CARRICK
18	18
19	19	Introduced: 1/16/24
20	20	Referred: House Special Committee on Ways and Means, Finance
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to the Alaska permanent fund; relating to dividends for state residents; 1
28	28	relating to the use of certain state income; relating to contributions from permanent 2
29	29	fund dividends to the general and permanent funds; and providing for an effective 3
30	30	date." 4
31	31	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
32	32	* Section 1. AS 37.13.140(a) is amended to read: 6
33	33	(a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 7
34	34	EARNINGS RESERVE ACCOUNT EST ABLISHED UNDER AS 37.13.145.] Net 8
35	35	income of the fund shall be computed annually as of the last day of the fiscal year in 9
36	36	accordance with generally accepted accounting principles, excluding any unrealized 10
37	37	gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 11
38	38	PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 12
39	39	YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 13
40	40	EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 14 33-LS1157\B
41	41	HB 266 -2- HB0266a
42	42	New Text Underlined [DELETED TEXT BRACKETED]
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44	44	PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 1
45	45	IN AS 37.13.145.] 2
46	46	* Sec. 2. AS 37.13.145(c) is amended to read: 3
47	47	(c) After the [TRANSFER UNDER (b) AND AN] appropriation under (e) of 4
48	48	this section, the legislature may appropriate [CORPORATION SHALL 5
49	49	TRANSFER] from the earnings reserve account to the principal of the fund an amount 6
50	50	sufficient to offset the effect of inflation on the principal of the fund during that fiscal 7
51	51	year. However, none of the amount appropriated [TRANSFERRED] shall be applied 8
52	52	to increase the value of that portion of the principal attributed to the settlement of State 9
53	53	v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 10
54	54	July 1, 2004. The corporation shall calculate the amount sufficient to offset the effect 11
55	55	of inflation [TO TRANSFER TO THE PRINCIPAL] under this subsection by 12
56	56	(1) computing the average of the monthly United States Consumer 13
57	57	Price Index for all urban consumers for each of the two previous calendar years; 14
58	58	(2) computing the percentage change between the first and second 15
59	59	calendar year average; and 16
60	60	(3) applying that rate to the value of the principal of the fund on the 17
61	61	last day of the fiscal year just ended, including that portion of the principal attributed 18
62	62	to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 19
63	63	First Judicial District). 20
64	64	* Sec. 3. AS 37.13.145(d) is amended to read: 21
65	65	(d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 22
66	66	earned on money awarded in or received as a result of State v. Amerada Hess, et al., 23
67	67	1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 24
68	68	summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 25
69	69	outcome of this case, or interest earned on the money, or on the earnings of the money 26
70	70	shall be treated in the same manner as other income of the Alaska permanent fund, 27
71	71	except that it is not available for appropriation [DISTRIBUTION TO THE 28
72	72	DIVIDEND FUND, FOR TRANSFERS] to the principal under (c) of this section [,] 29
73	73	or for an appropriation under (e) of this section, and shall be annually deposited into 30
74	74	the Alaska capital income fund (AS 37.05.565). 31 33-LS1157\B
75	75	HB0266a -3- HB 266
76	76	New Text Underlined [DELETED TEXT BRACKETED]
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78	78	* Sec. 4. AS 37.13.145(e) is amended to read: 1
79	79	(e) The legislature may not appropriate from the earnings reserve account [TO 2
80	80	THE GENERAL FUND] a total amount that exceeds the amount available for 3
81	81	appropriation under AS 37.13.140(b) in a fiscal year. 4
82	82	* Sec. 5. AS 43.23.025(a) is amended to read: 5
83	83	(a) By October 1 of each year, the commissioner shall determine the value of 6
84	84	each permanent fund dividend for that year by 7
85	85	(1) determining the total amount available for dividend payments, 8
86	86	which equals 9
87	87	(A) the amount appropriated [OF INCOME OF THE 10
88	88	ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 11
89	89	established under AS 43.23.045 [AS 37.13.145(b)] during the current year; 12
90	90	(B) plus the unexpended and unobligated balances of prior 13
91	91	fiscal year appropriations that lapse into the dividend fund under 14
92	92	AS 43.23.045(d); 15
93	93	(C) less the amount necessary to pay prior year dividends from 16
94	94	the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 17
95	95	43.23.055(3) and (7); 18
96	96	(D) less the amount necessary to pay dividends from the 19
97	97	dividend fund due to eligible applicants who, as determined by the department, 20
98	98	filed for a previous year's dividend by the filing deadline but who were not 21
99	99	included in a previous year's dividend computation; 22
100	100	(E) less appropriations from the dividend fund during the 23
101	101	current year, including amounts to pay costs of administering the dividend 24
102	102	program and the hold harmless provisions of AS 43.23.240; 25
103	103	(2) determining the number of individuals eligible to receive a 26
104	104	dividend payment for the current year and the number of estates and successors 27
105	105	eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 28
106	106	(3) dividing the amount determined under (1) of this subsection by the 29
107	107	amount determined under (2) of this subsection. 30
108	108	* Sec. 6. AS 43.23.028(a) is amended to read: 31 33-LS1157\B
109	109	HB 266 -4- HB0266a
110	110	New Text Underlined [DELETED TEXT BRACKETED]
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112	112	(a) By October 1 of each year, the commissioner shall give public notice of 1
113	113	the value of each permanent fund dividend for that year and notice of the information 2
114	114	required to be disclosed under (3) of this subsection. In addition, the stub attached to 3
115	115	each individual dividend disbursement advice must 4
116	116	(1) disclose the amount of each dividend attributable to legislative 5
117	117	appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 6
118	118	DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 7
119	119	CONSTITUTION OF THE STATE OF ALASKA]; 8
120	120	(2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 9
121	121	ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 10
122	122	APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 11
123	123	THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 12
124	124	(3)] disclose the amount by which each dividend has been reduced due 13
125	125	to each appropriation from the dividend fund, including amounts to pay the costs of 14
126	126	administering the dividend program and the hold harmless provisions of 15
127	127	AS 43.23.240; 16
128	128	(3) [(4)] include a statement that an individual is not eligible for a 17
129	129	dividend when 18
130	130	(A) during the qualifying year, the individual was convicted of 19
131	131	a felony; 20
132	132	(B) during all or part of the qualifying year, the individual was 21
133	133	incarcerated as a result of the conviction of a 22
134	134	(i) felony; or 23
135	135	(ii) misdemeanor if the individual has been convicted of 24
136	136	a prior felony or two or more prior misdemeanors; 25
137	137	(4) [(5)] include a statement that the legislative purpose for making 26
138	138	individuals listed under (3) [(4)] of this subsection ineligible is to 27
139	139	(A) provide funds for services for and payments to crime 28
140	140	victims and operating costs of the Violent Crimes Compensation Board; 29
141	141	(B) provide funds to pay restitution owed to crime victims; 30
142	142	(C) provide funds for grants to nonprofit organizations for 31 33-LS1157\B
143	143	HB0266a -5- HB 266
144	144	New Text Underlined [DELETED TEXT BRACKETED]
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146	146	services for crime victims and for mental health services and substance abuse 1
147	147	treatment for offenders; 2
148	148	(D) provide funds for the office of victims' rights; 3
149	149	(E) provide funds to the Council on Domestic Violence and 4
150	150	Sexual Assault for grants for the operation of domestic violence and sexual 5
151	151	assault programs; and 6
152	152	(F) obtain reimbursement for some of the costs imposed on the 7
153	153	Department of Corrections related to incarceration or probation of those 8
154	154	individuals; 9
155	155	(5) [(6)] disclose the total amount that would have been paid during the 10
156	156	previous fiscal year to individuals who were ineligible to receive dividends under 11
157	157	AS 43.23.005(d) if they had been eligible; 12
158	158	(6) [(7)] disclose the total amount transferred or appropriated for the 13
159	159	current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 14
160	160	listed in AS 43.23.048. 15
161	161	* Sec. 7. AS 43.23.045 is amended by adding a new subsection to read: 16
162	162	(f) Each fiscal year, the legislature may appropriate to the dividend fund an 17
163	163	amount equal to 69 percent of all mineral lease rentals, royalties, royalty sale 18
164	164	proceeds, federal mineral revenue sharing payments, and bonuses received by the state 19
165	165	during that fiscal year. 20
166	166	* Sec. 8. AS 43.23 is amended by adding a new section to read: 21
167	167	Sec. 43.23.135. Contributions to the general and permanent funds. (a) 22
168	168	Notwithstanding AS 43.23.200, the electronic Alaska permanent fund dividend 23
169	169	application must allow an applicant to direct that money be subtracted from the 24
170	170	dividend payment and contributed to the state general fund or the principal of the 25
171	171	permanent fund. A contribution to the state general fund or the principal of the 26
172	172	permanent fund may be $25 or more, in increments of $25, up to the total amount of 27
173	173	the permanent fund dividend that the applicant is entitled to receive. If the applicant's 28
174	174	total amount of contributions under this subsection, when added to the total amount of 29
175	175	contributions under AS 43.23.130, exceeds the amount of the permanent fund 30
176	176	dividend that the applicant is entitled to receive, contributions under AS 43.23.130 31 33-LS1157\B
177	177	HB 266 -6- HB0266a
178	178	New Text Underlined [DELETED TEXT BRACKETED]
179	179
180	180	shall have priority over contributions under this subsection. The electronic application 1
181	181	must include notice that seven percent of the money contributed to the state general 2
182	182	fund or the principal of the permanent fund will be used for administrative costs 3
183	183	incurred in implementing this subsection and that money from the dividend fund will 4
184	184	not be used for that purpose. 5
185	185	(b) A public agency that claims a permanent fund dividend on behalf of an 6
186	186	individual under AS 43.23.015(e) may not elect to make contributions from the 7
187	187	dividend under this section. 8
188	188	(c) In preparing the electronic Alaska permanent fund dividend application, 9
189	189	the department shall ensure that the option to make a contribution under this section is 10
190	190	in a separate section of the application than the option to make a contribution under 11
191	191	AS 43.23.130. 12
192	192	* Sec. 9. AS 37.13.145(b) and 37.13.145(f) are repealed. 13
193	193	* Sec. 10. This Act takes effect July 1, 2024. 14