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HOUSE BILL NO. 90
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - FIRST SESSION
BY REPRESENTATIVE FIELDS
Introduced: 3/1/23
Referred: House Special Committee on Ways and Means, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to income of the Alaska permanent fund and the amount available for 1
appropriation; relating to appropriations from the earnings reserve account; relating to 2
the amount of the permanent fund dividend; and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 37.13.140 is amended to read: 5
Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 6
earnings reserve account established under AS 37.13.145. Net income of the fund shall 7
be computed annually as of the last day of the fiscal year in accordance with generally 8
accepted accounting principles, excluding any unrealized gains or losses. [INCOME 9
AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 10
INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 11
THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 12
THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 13
THE EARNINGS RESERVE ACC OUNT DESCRIBED IN AS 37.13.145.] 14 33-LS0500\A
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(b) The corporation shall determine the amount available for appropriation 1
each year. The amount available for appropriation is five percent of the average 2
market value of the fund for the first five of the preceding six fiscal years, including 3
the fiscal year just ended, computed annually for each fiscal year in accordance with 4
generally accepted accounting principles. The amount available for appropriation 5
may not exceed the balance in the earnings reserve account described in 6
AS 37.13.145. In this subsection, "average market value of the fund" includes the 7
balance of the earnings reserve account established under AS 37.13.145, but does not 8
include that portion of the principal attributed to the settlement of State v. Amerada 9
Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 10
* Sec. 2. AS 37.13.145(b) is amended to read: 11
(b) Each [AT THE END OF EACH] fiscal year, the legislature may 12
appropriate [CORPORATION SHALL TRANSFER] from the earnings reserve 13
account to the dividend fund established under AS 43.23.045, the amount necessary 14
to distribute a dividend of up to $1,000 to each eligible individual [50 PERCENT 15
OF THE INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140]. 16
* Sec. 3. AS 37.13.145(c) is amended to read: 17
(c) After the appropriations [TRANSFER] under (b) and (f) [AN 18
APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 19
[CORPORATION SHALL TRANSFER] from the earnings reserve account to the 20
principal of the fund an amount sufficient to offset the effect of inflation on the 21
principal of the fund during that fiscal year. However, none of the amount transferred 22
shall be applied to increase the value of that portion of the principal attributed to the 23
settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First 24
Judicial District) on July 1, 2004. The corporation shall calculate the amount to 25
transfer to the principal under this subsection by 26
(1) computing the average of the monthly United States Consumer 27
Price Index for all urban consumers for each of the two previous calendar years; 28
(2) computing the percentage change between the first and second 29
calendar year average; and 30
(3) applying that rate to the value of the principal of the fund on the 31 33-LS0500\A
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last day of the fiscal year just ended, including that portion of the principal attributed 1
to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 2
First Judicial District). 3
* Sec. 4. AS 37.13.145(d) is amended to read: 4
(d) Notwithstanding (b) of this section, income earned on money awarded in 5
or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 6
Court, First Judicial District), including settlement, summary judgment, or adjustment 7
to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 8
on the money, or on the earnings of the money shall be treated in the same manner as 9
other income of the Alaska permanent fund, except that it is not available for 10
appropriation [DISTRIBUTION] to the dividend fund under (b) of this section, for 11
an appropriation [TRANSFERS] to the principal under (c) of this section, or for an 12
appropriation under (f) [(e)] of this section, and shall be annually deposited into the 13
Alaska capital income fund (AS 37.05.565). 14
* Sec. 5. AS 37.13.145(f) is amended to read: 15
(f) Each year, the legislature may appropriate an amount from the 16
earnings reserve account established under this section to the general fund. The 17
combined total of the appropriations under this subsection and [TRANSFER 18
UNDER] (b) of this section [AND AN APPROPRIATION UNDER (e) OF THIS 19
SECTION] may not exceed the am ount available for appropriation under 20
AS 37.13.140(b). 21
* Sec. 6. AS 37.13.300(c) is amended to read: 22
(c) Net income from the mental health trust fund may not be included in the 23
computation of the amount [NET INCOME OR MARKET VALUE] available for 24
[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 25
* Sec. 7. AS 43.23.025(a) is amended to read: 26
(a) By October 1 of each year, the commissioner shall determine the value of 27
each permanent fund dividend for that year by 28
(1) determining the total amount available for dividend payments, 29
which equals 30
(A) the amount appropriated [OF INCOME OF THE 31 33-LS0500\A
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ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 1
under AS 37.13.145(b) during the current year; 2
(B) plus the unexpended and unobligated balances of prior 3
fiscal year appropriations that lapse into the dividend fund under 4
AS 43.23.045(d); 5
(C) less the amount necessary to pay prior year dividends from 6
the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 7
43.23.055(3) and (7); 8
(D) less the amount necessary to pay dividends from the 9
dividend fund due to eligible applicants who, as determined by the department, 10
filed for a previous year's dividend by the filing deadline but who were not 11
included in a previous year's dividend computation; 12
(E) less appropriations from the dividend fund during the 13
current year, including amounts to pay costs of administering the dividend 14
program and the hold harmless provisions of AS 43.23.240; 15
(2) determining the number of individuals eligible to receive a 16
dividend payment for the current year and the number of estates and successors 17
eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 18
(3) dividing the amount determined under (1) of this subsection by the 19
amount determined under (2) of this subsection. 20
* Sec. 8. AS 37.13.145(e) is repealed. 21
* Sec. 9. This Act takes effect immediately under AS 01.10.070(c). 22