Alaska 2023-2024 Regular Session

Alaska House Bill HB72 Compare Versions

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

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2	2	HB0072a -1- HB 72
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5	5	33-LS0413\B
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10	10
11	11	HOUSE BILL NO. 72
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-THIRD LEGISLATURE - FIRST SESSION
16	16
17	17	BY REPRESENTATIVE ORTIZ
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19	19	Introduced: 2/15/23
20	20	Referred: House Special Committee on Ways and Means, Finance
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 use of income of the Alaska permanent fund; relating to the amount 1
28	28	of the permanent fund dividend; relating to the duties of the commissioner of revenue; 2
29	29	and providing for an effective date." 3
30	30	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
31	31	* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 5
32	32	to read: 6
33	33	SHORT TITLE. This Act may be known as the Protecting Future Dividends Act. 7
34	34	* Sec. 2. AS 37.13.140 is amended to read: 8
35	35	Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 9
36	36	earnings reserve account established under AS 37.13.145. Net income of the fund shall 10
37	37	be computed annually as of the last day of the fiscal year in accordance with generally 11
38	38	accepted accounting principles, excluding any unrealized gains or losses. [INCOME 12
39	39	AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 13
40	40	INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 14 33-LS0413\B
41	41	HB 72 -2- HB0072a
42	42	New Text Underlined [DELETED TEXT BRACKETED]
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44	44	THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 1
45	45	THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 2
46	46	THE EARNINGS RESERVE ACC OUNT DESCRIBED IN AS 37.13.145.] 3
47	47	(b) The corporation shall determine the amount available for appropriation 4
48	48	each year. The amount available for appropriation is five percent of the average 5
49	49	market value of the fund for the first five of the preceding six fiscal years, including 6
50	50	the fiscal year just ended, computed annually for each fiscal year in accordance with 7
51	51	generally accepted accounting principles. The amount available for appropriation 8
52	52	may not exceed the balance in the earnings reserve account described in 9
53	53	AS 37.13.145. In this subsection, "average market value of the fund" includes the 10
54	54	balance of the earnings reserve account established under AS 37.13.145, but does not 11
55	55	include that portion of the principal attributed to the settlement of State v. Amerada 12
56	56	Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 13
57	57	* Sec. 3. AS 37.13.145(b) is amended to read: 14
58	58	(b) Each [AT THE END OF EACH] fiscal year, the legislature may 15
59	59	appropriate [CORPORATION SHALL TRANSFER] from the 16
60	60	(1) earnings reserve account to the general fund the amount 17
61	61	available for appropriation calculated under AS 37.13.140(b); 18
62	62	(2) general fund to the dividend fund established under 19
63	63	AS 43.23.045, 25 [50] percent of the income available for distribution under 20
64	64	AS 37.13.140. 21
65	65	* Sec. 4. AS 37.13.145(c) is amended to read: 22
66	66	(c) After the appropriations [TRANSFER] under (b) [AND AN 23
67	67	APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 24
68	68	[CORPORATION SHALL TRANSFER] from the earnings reserve account to the 25
69	69	principal of the fund an amount sufficient to offset the effect of inflation on the 26
70	70	principal of the fund during that fiscal year. However, none of the amount transferred 27
71	71	shall be applied to increase the value of that portion of the principal attributed to the 28
72	72	settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 29
73	73	Judicial District) on July 1, 2004. The corporation shall calculate the amount to 30
74	74	transfer to the principal under this subsection by 31 33-LS0413\B
75	75	HB0072a -3- HB 72
76	76	New Text Underlined [DELETED TEXT BRACKETED]
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78	78	(1) computing the average of the monthly United States Consumer 1
79	79	Price Index for all urban consumers for each of the two previous calendar years; 2
80	80	(2) computing the percentage change between the first and second 3
81	81	calendar year average; and 4
82	82	(3) applying that rate to the value of the principal of the fund on the 5
83	83	last day of the fiscal year just ended, including that portion of the principal attributed 6
84	84	to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 7
85	85	First Judicial District). 8
86	86	* Sec. 5. AS 37.13.145(d) is amended to read: 9
87	87	(d) Notwithstanding (b) of this section, income earned on money awarded in 10
88	88	or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 11
89	89	Court, First Judicial District), including settlement, summary judgment, or adjustment 12
90	90	to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 13
91	91	on the money, or on the earnings of the money shall be treated in the same manner as 14
92	92	other income of the Alaska permanent fund, except that it is not available for 15
93	93	appropriation [DISTRIBUTION] to the general fund or the dividend fund under 16
94	94	AS 37.13.140(b) or [,] for an appropriation [TRANSFERS] to the principal under 17
95	95	(c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THI S 18
96	96	SECTION,] and shall be annually deposited into the Alaska capital income fund 19
97	97	(AS 37.05.565). 20
98	98	* Sec. 6. AS 37.13.300(c) is amended to read: 21
99	99	(c) Net income from the mental health trust fund may not be included in the 22
100	100	computation of the amount [NET INCOME OR MARKET VALUE] available for 23
101	101	[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 24
102	102	* Sec. 7. AS 43.23.025(a) is amended to read: 25
103	103	(a) By October 1 of each year, the commissioner shall determine the value of 26
104	104	each permanent fund dividend for that year by 27
105	105	(1) determining the total amount available for dividend payments, 28
106	106	which equals 29
107	107	(A) the amount appropriated [OF INCOME OF THE 30
108	108	ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 31 33-LS0413\B
109	109	HB 72 -4- HB0072a
110	110	New Text Underlined [DELETED TEXT BRACKETED]
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112	112	under AS 37.13.145(b) during the current year; 1
113	113	(B) plus the unexpended and unobligated balances of prior 2
114	114	fiscal year appropriations that lapse into the dividend fund under 3
115	115	AS 43.23.045(d); 4
116	116	(C) less the amount necessary to pay prior year dividends from 5
117	117	the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 6
118	118	43.23.055(3) and (7); 7
119	119	(D) less the amount necessary to pay dividends from the 8
120	120	dividend fund due to eligible applicants who, as determined by the department, 9
121	121	filed for a previous year's dividend by the filing deadline but who were not 10
122	122	included in a previous year's dividend computation; 11
123	123	(E) less appropriations from the dividend fund during the 12
124	124	current year, including amounts to pay costs of administering the dividend 13
125	125	program and the hold harmless provisions of AS 43.23.240; 14
126	126	(2) determining the number of individuals eligible to receive a 15
127	127	dividend payment for the current year and the number of estates and successors 16
128	128	eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 17
129	129	(3) dividing the amount determined under (1) of this subsection by the 18
130	130	amount determined under (2) of this subsection. 19
131	131	* Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 20
132	132	* Sec. 9. This Act takes effect immediately under AS 01.10.070(c). 21