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HOUSE CS FOR CS FOR SENATE BILL NO. 107(W&M)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - FIRST SESSION
BY THE HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
Offered: 5/11/23
Referred: Finance
Sponsor(s): SENATE FINANCE COMMITTEE
A BILL
FOR AN ACT ENTITLED
"An Act relating to the Alaska permanent fund; relating to income of the Alaska 1
permanent fund; relating to the amount available for appropriation and appropriations 2
from the earnings reserve account; relating to the permanent fund dividend; and 3
providing for an effective date." 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 6
to read: 7
LEGISLATIVE INTENT. It is the intent of the legislature to 8
(1) pass a constitutional amendment that 9
(A) requires the payment of permanent fund dividends to eligible state 10
residents; and 11
(B) provides that the payment of permanent fund dividends is a 12
constitutionally allowable dedication of funds; 13
(2) establish, in this Act, the statutory maximum annual draw on the earnings 14 33-LS0349\T
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reserve account as a percent of the market value of that account; 1
(3) establish, in this Act, the statutory amount of the annual permanent fund 2
dividend. 3
* Sec. 2. AS 37.13.140 is amended to read: 4
Sec. 37.13.140. Income. (a) Net income of the fund includes income of the 5
earnings reserve account established under AS 37.13.145. Net income of the fund shall 6
be computed annually as of the last day of the fiscal year in accordance with generally 7
accepted accounting principles, excluding any unrealized gains or losses. [INCOME 8
AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 9
INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 10
THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 11
THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 12
THE EARNINGS RESERVE ACC OUNT DESCRIBED IN AS 37.13.145.] 13
(b) The corporation shall determine the amount available for distribution 14
[APPROPRIATION] each year. The amount available for distribution 15
[APPROPRIATION] is five percent of the average market value of the fund for the 16
first five of the preceding six fiscal years, including the fiscal year just ended, 17
computed annually for each fiscal year in accordance with generally accepted 18
accounting principles. In this subsection, "average market value of the fund" includes 19
the balance of the earnings reserve account established under AS 37.13.145, but does 20
not include that portion of the principal attributed to the settlement of State v. 21
Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 22
* Sec. 3. AS 37.13.145(b) is amended to read: 23
(b) Each [AT THE END OF EACH] fiscal year, the corporation shall transfer 24
from the earnings reserve account to the dividend fund established under 25
AS 37.13.470 [AS 43.23.045], 50 percent of the income available for distribution 26
under AS 37.13.140(b) for the payment of permanent fund dividends and for 27
administrative and associated costs for the fiscal year. A transfer under this 28
subsection may not exceed the balance of the earnings reserve account 29
[AS 37.13.140]. 30
* Sec. 4. AS 37.13.145(d) is amended to read: 31 33-LS0349\T
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(d) Notwithstanding (b) of this section, income earned on money awarded in 1
or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 2
Court, First Judicial District), including settlement, summary judgment, or adjustment 3
to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 4
on the money, or on the earnings of the money shall be treated in the same manner as 5
other income of the Alaska permanent fund, except that it may not be included in the 6
computation of the income available for distribution, is not available for transfer 7
[DISTRIBUTION] to the dividend fund [, FOR TRANSFERS TO THE PRINCIPAL] 8
under (b) [(c)] of this section [,] or for an appropriation under (e) of this section, and 9
shall be annually deposited into the Alaska capital income fund (AS 37.05.565). 10
* Sec. 5. AS 37.13.145(e) is amended to read: 11
(e) Each fiscal year, the [THE] legislature may [NOT] appropriate an 12
amount from the earnings reserve account to the general fund [A TOTAL AMOUNT 13
THAT EXCEEDS THE AMOUNT AVAILABLE FOR APPROPRIATION UNDER 14
AS 37.13.140(b) IN A FISCAL YEAR]. 15
* Sec. 6. AS 37.13.145(f) is amended to read: 16
(f) Each fiscal year, the [THE] combined total of the transfer under (b) of this 17
section and an appropriation under (e) of this section may not exceed the lesser of 18
(1) the amount available for distribution [APPROPRIATION] under 19
AS 37.13.140(b); or 20
(2) the balance of the earnings reserve account. 21
* Sec. 7. 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 [NET] income [OR MARKET VALUE] available for distribution 24
[OR APPROPRIATION] under AS 37.13.140(b) [AS 37.13.140]. 25
* Sec. 8. AS 37.13.145(c) is repealed. 26
* Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 27
read: 28
CONDITIONAL EFFECT. This Act takes effect only if, by July 1, 2024, the 29
legislature passes a resolution proposing an amendment to art. IX, sec. 15, Constitution of the 30
State of Alaska, that requires an annual permanent fund dividend be paid to eligible residents 31 33-LS0349\T
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of the state. 1
* Sec. 10. If this Act takes effect, it takes effect July 1, 2024. 2