AK
Alaska Senate Bill SB107

Alaska 2023-2024 Regular Session

Alaska Senate Bill SB107 Compare Versions

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10-HOUSE CS FOR CS FOR SENATE BILL NO. 107(W&M)
10+CS FOR SENATE BILL NO. 107(FIN)
1111
1212 IN THE LEGISLATURE OF THE STATE OF ALASKA
1313
1414 THIRTY-THIRD LEGISLATURE - FIRST SESSION
1515
16-BY THE HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
16+BY THE SENATE FINANCE COMMITTEE
1717
18-Offered: 5/11/23
19-Referred: Finance
18+Offered: 4/21/23
19+Referred: Rules
2020
2121 Sponsor(s): SENATE FINANCE COMMITTEE
2222 A BILL
2323
2424 FOR AN ACT ENTITLED
2525
2626 "An Act relating to the Alaska permanent fund; relating to income of the Alaska 1
2727 permanent fund; relating to the amount available for appropriation and appropriations 2
2828 from the earnings reserve account; relating to the permanent fund dividend; and 3
2929 providing for an effective date." 4
3030 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
31- * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 6
32-to read: 7
33-LEGISLATIVE INTENT. It is the intent of the legislature to 8
34-(1) pass a constitutional amendment that 9
35-(A) requires the payment of permanent fund dividends to eligible state 10
36-residents; and 11
37-(B) provides that the payment of permanent fund dividends is a 12
38-constitutionally allowable dedication of funds; 13
39-(2) establish, in this Act, the statutory maximum annual draw on the earnings 14 33-LS0349\T
40-HCS CSSB 107(W&M) -2- SB0107c
31+ * Section 1. AS 37.13.140 is amended to read: 6
32+Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 7
33+INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 8
34+AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 9
35+of the fiscal year in accordance with generally accepted accounting principles, 10
36+excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 11
37+DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 12
38+FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 13
39+ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 14 33-LS0349\P
40+CSSB 107(FIN) -2- SB0107B
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43-reserve account as a percent of the market value of that account; 1
44-(3) establish, in this Act, the statutory amount of the annual permanent fund 2
45-dividend. 3
46- * Sec. 2. AS 37.13.140 is amended to read: 4
47-Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 5
48-earnings reserve account established under AS 37.13.145. Net income of the fund shall 6
49-be computed annually as of the last day of the fiscal year in accordance with generally 7
50-accepted accounting principles, excluding any unrealized gains or losses. [INCOME 8
51-AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 9
52-INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 10
53-THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 11
54-THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 12
55-THE EARNINGS RESERVE ACC OUNT DESCRIBED IN AS 37.13.145.] 13
56-(b) The corporation shall determine the amount available for distribution 14
57-[APPROPRIATION] each year. The amount available for distribution 15
58-[APPROPRIATION] is five percent of the average market value of the fund for the 16
59-first five of the preceding six fiscal years, including the fiscal year just ended, 17
60-computed annually for each fiscal year in accordance with generally accepted 18
61-accounting principles. In this subsection, "average market value of the fund" includes 19
62-the balance of the earnings reserve account established under AS 37.13.145, but does 20
63-not include that portion of the principal attributed to the settlement of State v. 21
64-Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 22
65- * Sec. 3. AS 37.13.145(b) is amended to read: 23
66-(b) Each [AT THE END OF EACH] fiscal year, the corporation shall transfer 24
67-from the earnings reserve account to the dividend fund established under 25
68-AS 37.13.470 [AS 43.23.045], 50 percent of the income available for distribution 26
69-under AS 37.13.140(b) for the payment of permanent fund dividends and for 27
70-administrative and associated costs for the fiscal year. A transfer under this 28
71-subsection may not exceed the balance of the earnings reserve account 29
72-[AS 37.13.140]. 30
73- * Sec. 4. AS 37.13.145(d) is amended to read: 31 33-LS0349\T
74-SB0107c -3- HCS CSSB 107(W&M)
43+FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 1
44+RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 2
45+(b) The corporation shall determine the amount available for appropriation 3
46+each year. The amount available for appropriation is five percent of the average 4
47+market value of the fund for the first five of the preceding six fiscal years, including 5
48+the fiscal year just ended, computed annually for each fiscal year in accordance with 6
49+generally accepted accounting principles. The amount available for appropriation 7
50+may not exceed the balance in the earnings reserve account described in 8
51+AS 37.13.145. In this subsection, "average market value of the fund" includes the 9
52+balance of the earnings reserve account established under AS 37.13.145, but does not 10
53+include that portion of the principal attributed to the settlement of State v. Amerada 11
54+Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 12
55+ * Sec. 2. AS 37.13.145(b) is amended to read: 13
56+(b) Each [AT THE END OF EACH] fiscal year, the legislature may 14
57+appropriate [CORPORATION SHALL TRANSFER] from the 15
58+(1) earnings reserve account to the general fund the amount 16
59+available for appropriation calculated under AS 37.13.140(b); 17
60+(2) general fund to the dividend fund established under 18
61+AS 43.23.045, 25 [50] percent of the income available for appropriation 19
62+[DISTRIBUTION] under AS 37.13.140(b) [AS 37.13.140]. 20
63+ * Sec. 3. AS 37.13.145(b), as amended by sec. 2 of this Act, is amended to read: 21
64+(b) Each fiscal year, the legislature may appropriate from the 22
65+(1) earnings reserve account to the general fund the amount available 23
66+for appropriation calculated under AS 37.13.140(b); 24
67+(2) general fund to the dividend fund established under AS 43.23.045, 25
68+50 [25] percent of the income available for appropriation under AS 37.13.140(b). 26
69+ * Sec. 4. AS 37.13.145(c) is amended to read: 27
70+(c) After the appropriations [TRANSFER] under (b) [AND AN 28
71+APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 29
72+[CORPORATION SHALL TRANSFER] from the earnings reserve account to the 30
73+principal of the fund an amount sufficient to offset the effect of inflation on the 31 33-LS0349\P
74+SB0107B -3- CSSB 107(FIN)
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77-(d) Notwithstanding (b) of this section, income earned on money awarded in 1
78-or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 2
79-Court, First Judicial District), including settlement, summary judgment, or adjustment 3
80-to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 4
81-on the money, or on the earnings of the money shall be treated in the same manner as 5
82-other income of the Alaska permanent fund, except that it may not be included in the 6
83-computation of the income available for distribution, is not available for transfer 7
84-[DISTRIBUTION] to the dividend fund [, FOR TRANSFERS TO THE PRINCIPAL] 8
85-under (b) [(c)] of this section [,] or for an appropriation under (e) of this section, and 9
86-shall be annually deposited into the Alaska capital income fund (AS 37.05.565). 10
87- * Sec. 5. AS 37.13.145(e) is amended to read: 11
88-(e) Each fiscal year, the [THE] legislature may [NOT] appropriate an 12
89-amount from the earnings reserve account to the general fund [A TOTAL AMOUNT 13
90-THAT EXCEEDS THE AMOUNT AVAILABLE FOR APPROPRIATION UNDER 14
91-AS 37.13.140(b) IN A FISCAL YEAR]. 15
92- * Sec. 6. AS 37.13.145(f) is amended to read: 16
93-(f) Each fiscal year, the [THE] combined total of the transfer under (b) of this 17
94-section and an appropriation under (e) of this section may not exceed the lesser of 18
95-(1) the amount available for distribution [APPROPRIATION] under 19
96-AS 37.13.140(b); or 20
97-(2) the balance of the earnings reserve account. 21
98- * Sec. 7. AS 37.13.300(c) is amended to read: 22
99-(c) Net income from the mental health trust fund may not be included in the 23
100-computation of the [NET] income [OR MARKET VALUE] available for distribution 24
101-[OR APPROPRIATION] under AS 37.13.140(b) [AS 37.13.140]. 25
102- * Sec. 8. AS 37.13.145(c) is repealed. 26
77+principal of the fund during that fiscal year. However, none of the amount 1
78+appropriated [TRANSFERRED] shall be applied to increase the value of that portion 2
79+of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-3
80+847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 4
81+calculate the amount to appropriate [TRANSFER] to the principal under this 5
82+subsection by 6
83+(1) computing the average of the monthly United States Consumer 7
84+Price Index for all urban consumers for each of the two previous calendar years; 8
85+(2) computing the percentage change between the first and second 9
86+calendar year average; and 10
87+(3) applying that rate to the value of the principal of the fund on the 11
88+last day of the fiscal year just ended, including that portion of the principal attributed 12
89+to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 13
90+First Judicial District). 14
91+ * Sec. 5. AS 37.13.145(d) is amended to read: 15
92+(d) Notwithstanding (b) of this section, income earned on money awarded in 16
93+or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 17
94+Court, First Judicial District), including settlement, summary judgment, or adjustment 18
95+to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 19
96+on the money, or on the earnings of the money shall be treated in the same manner as 20
97+other income of the Alaska permanent fund, except that it is not available for 21
98+appropriation [DISTRIBUTION] to the general fund or the dividend fund under 22
99+(b) of this section or [,] for an appropriation [TRANSFERS] to the principal under 23
100+(c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THI S 24
101+SECTION,] and shall be annually deposited into the Alaska capital income fund 25
102+(AS 37.05.565). 26
103+ * Sec. 6. AS 37.13.300(c) is amended to read: 27
104+(c) Net income from the mental health trust fund may not be included in the 28
105+computation of the amount [NET INCOME OR MARKET VALUE] available for 29
106+[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 30
107+ * Sec. 7. AS 43.23.025(a) is amended to read: 31 33-LS0349\P
108+CSSB 107(FIN) -4- SB0107B
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111+(a) By October 1 of each year, the commissioner shall determine the value of 1
112+each permanent fund dividend for that year by 2
113+(1) determining the total amount available for dividend payments, 3
114+which equals 4
115+(A) the amount appropriated [OF INCOME OF THE 5
116+ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 6
117+under AS 37.13.145(b) during the current year; 7
118+(B) plus the unexpended and unobligated balances of prior 8
119+fiscal year appropriations that lapse into the dividend fund under 9
120+AS 43.23.045(d); 10
121+(C) less the amount necessary to pay prior year dividends from 11
122+the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 12
123+43.23.055(3) and (7); 13
124+(D) less the amount necessary to pay dividends from the 14
125+dividend fund due to eligible applicants who, as determined by the department, 15
126+filed for a previous year's dividend by the filing deadline but who were not 16
127+included in a previous year's dividend computation; 17
128+(E) less appropriations from the dividend fund during the 18
129+current year, including amounts to pay costs of administering the dividend 19
130+program and the hold harmless provisions of AS 43.23.240; 20
131+(2) determining the number of individuals eligible to receive a 21
132+dividend payment for the current year and the number of estates and successors 22
133+eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 23
134+(3) dividing the amount determined under (1) of this subsection by the 24
135+amount determined under (2) of this subsection. 25
136+ * Sec. 8. AS 37.13.145(e) and 37.13.145(f) are repealed. 26
103137 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 27
104138 read: 28
105-CONDITIONAL EFFECT. This Act takes effect only if, by July 1, 2024, the 29
106-legislature passes a resolution proposing an amendment to art. IX, sec. 15, Constitution of the 30
107-State of Alaska, that requires an annual permanent fund dividend be paid to eligible residents 31 33-LS0349\T
108-HCS CSSB 107(W&M) -4- SB0107c
139+CONDITIONAL EFFECT. (a) Section 3 of this Act takes effect only if, before 29
140+January 1, 2031, in a letter described in (b) of this section, the commissioner of revenue and 30
141+the director of the legislative finance division jointly agree that revenue measures that 31 33-LS0349\P
142+SB0107B -5- CSSB 107(FIN)
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111-of the state. 1
112- * Sec. 10. If this Act takes effect, it takes effect July 1, 2024. 2
145+(1) generated at least $1,300,000,000 of new annually recurring general fund 1
146+revenue, when compared to annual revenue generated from the statutes as they read on 2
147+January 1, 2023, have been passed by the Alaska State Legislature and enacted into law; and 3
148+(2) the estimated balance of the constitutional budget reserve fund established 4
149+in art. IX, sec. 17(a), Constitution of the State of Alaska, that is available for appropriation 5
150+exceeds $3,500,000,000, adjusted for inflation as described in (b)(2) of this section. 6
151+(b) On December 1 of each year, beginning in 2026 and ending in 2030, the 7
152+commissioner of revenue and the director of the legislative finance division shall notify the 8
153+revisor of statutes in a joint letter if 9
154+(1) revenue measures that generated at least $1,300,000,000 of new annually 10
155+recurring general fund revenue in the preceding calendar year, when compared to annual 11
156+revenue generated from the statutes as they read on January 1, 2023, have been passed by the 12
157+Alaska State Legislature and enacted into law by December 31 of the preceding calendar year; 13
158+and 14
159+(2) on June 30 of the year the letter is issued, the estimated balance of the 15
160+constitutional budget reserve fund established in art. IX, sec. 17(a), Constitution of the State 16
161+of Alaska, that is available for appropriation exceeds $3,500,000,000, adjusted for inflation by 17
162+(A) computing the average of the monthly United States Consumer 18
163+Price Index for all urban consumers for calendar year 2025; 19
164+(B) computing the average of the monthly United States Consumer 20
165+Price Index for all urban consumers for the preceding calendar year; 21
166+(C) computing the percentage change between the amounts in (A) and 22
167+(B) of this paragraph; and 23
168+(D) applying the rate calculated in (C) of this paragraph to 24
169+$3,500,000,000. 25
170+(c) In this section, "general fund revenue" does not include revenue from the 26
171+permanent fund. 27
172+ * Sec. 10. If sec. 3 of this Act takes effect, it takes effect July 1 of the calendar year after the 28
173+commissioner of revenue and the director of the legislative finance division jointly agree 29
174+under sec. 9 of this Act that 30
175+(1) revenue measures that generated at least $1,300,000,000 of new annually 31 33-LS0349\P
176+CSSB 107(FIN) -6- SB0107B
177+ New Text Underlined [DELETED TEXT BRACKETED]
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179+recurring general fund revenue, when compared to annual revenue generated from the statutes 1
180+as they read on January 1, 2023, have been passed by the Alaska State Legislature and 2
181+enacted into law; and 3
182+(2) the estimated balance of the constitutional budget reserve fund established 4
183+in art. IX, sec. 17(a), Constitution of the State of Alaska, that is available for appropriation 5
184+exceeds $3,500,000,000, adjusted for inflation as described in sec. 9(b)(2) of this Act. 6
185+ * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect July 1, 2024. 7