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HOUSE BILL NO. 72
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - FIRST SESSION
BY REPRESENTATIVE ORTIZ
Introduced: 2/15/23
Referred: House Special Committee on Ways and Means, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to use of income of the Alaska permanent fund; relating to the amount 1
of the permanent fund dividend; relating to the duties of the commissioner of revenue; 2
and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 5
to read: 6
SHORT TITLE. This Act may be known as the Protecting Future Dividends Act. 7
* Sec. 2. AS 37.13.140 is amended to read: 8
Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 9
earnings reserve account established under AS 37.13.145. Net income of the fund shall 10
be computed annually as of the last day of the fiscal year in accordance with generally 11
accepted accounting principles, excluding any unrealized gains or losses. [INCOME 12
AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 13
INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 14 33-LS0413\B
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THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 1
THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 2
THE EARNINGS RESERVE ACC OUNT DESCRIBED IN AS 37.13.145.] 3
(b) The corporation shall determine the amount available for appropriation 4
each year. The amount available for appropriation is five percent of the average 5
market value of the fund for the first five of the preceding six fiscal years, including 6
the fiscal year just ended, computed annually for each fiscal year in accordance with 7
generally accepted accounting principles. The amount available for appropriation 8
may not exceed the balance in the earnings reserve account described in 9
AS 37.13.145. In this subsection, "average market value of the fund" includes the 10
balance of the earnings reserve account established under AS 37.13.145, but does not 11
include that portion of the principal attributed to the settlement of State v. Amerada 12
Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 13
* Sec. 3. AS 37.13.145(b) is amended to read: 14
(b) Each [AT THE END OF EACH] fiscal year, the legislature may 15
appropriate [CORPORATION SHALL TRANSFER] from the 16
(1) earnings reserve account to the general fund the amount 17
available for appropriation calculated under AS 37.13.140(b); 18
(2) general fund to the dividend fund established under 19
AS 43.23.045, 25 [50] percent of the income available for distribution under 20
AS 37.13.140. 21
* Sec. 4. AS 37.13.145(c) is amended to read: 22
(c) After the appropriations [TRANSFER] under (b) [AND AN 23
APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 24
[CORPORATION SHALL TRANSFER] from the earnings reserve account to the 25
principal of the fund an amount sufficient to offset the effect of inflation on the 26
principal of the fund during that fiscal year. However, none of the amount transferred 27
shall be applied to increase the value of that portion of the principal attributed to the 28
settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 29
Judicial District) on July 1, 2004. The corporation shall calculate the amount to 30
transfer to the principal under this subsection by 31 33-LS0413\B
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(1) computing the average of the monthly United States Consumer 1
Price Index for all urban consumers for each of the two previous calendar years; 2
(2) computing the percentage change between the first and second 3
calendar year average; and 4
(3) applying that rate to the value of the principal of the fund on the 5
last day of the fiscal year just ended, including that portion of the principal attributed 6
to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 7
First Judicial District). 8
* Sec. 5. AS 37.13.145(d) is amended to read: 9
(d) Notwithstanding (b) of this section, income earned on money awarded in 10
or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 11
Court, First Judicial District), including settlement, summary judgment, or adjustment 12
to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 13
on the money, or on the earnings of the money shall be treated in the same manner as 14
other income of the Alaska permanent fund, except that it is not available for 15
appropriation [DISTRIBUTION] to the general fund or the dividend fund under 16
AS 37.13.140(b) or [,] for an appropriation [TRANSFERS] to the principal under 17
(c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THI S 18
SECTION,] and shall be annually deposited into the Alaska capital income fund 19
(AS 37.05.565). 20
* Sec. 6. AS 37.13.300(c) is amended to read: 21
(c) Net income from the mental health trust fund may not be included in the 22
computation of the amount [NET INCOME OR MARKET VALUE] available for 23
[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 24
* Sec. 7. AS 43.23.025(a) is amended to read: 25
(a) By October 1 of each year, the commissioner shall determine the value of 26
each permanent fund dividend for that year by 27
(1) determining the total amount available for dividend payments, 28
which equals 29
(A) the amount appropriated [OF INCOME OF THE 30
ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 31 33-LS0413\B
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under AS 37.13.145(b) during the current year; 1
(B) plus the unexpended and unobligated balances of prior 2
fiscal year appropriations that lapse into the dividend fund under 3
AS 43.23.045(d); 4
(C) less the amount necessary to pay prior year dividends from 5
the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 6
43.23.055(3) and (7); 7
(D) less the amount necessary to pay dividends from the 8
dividend fund due to eligible applicants who, as determined by the department, 9
filed for a previous year's dividend by the filing deadline but who were not 10
included in a previous year's dividend computation; 11
(E) less appropriations from the dividend fund during the 12
current year, including amounts to pay costs of administering the dividend 13
program and the hold harmless provisions of AS 43.23.240; 14
(2) determining the number of individuals eligible to receive a 15
dividend payment for the current year and the number of estates and successors 16
eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 17
(3) dividing the amount determined under (1) of this subsection by the 18
amount determined under (2) of this subsection. 19
* Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 20
* Sec. 9. This Act takes effect immediately under AS 01.10.070(c). 21