Alaska 2025-2026 Regular Session

Alaska House Bill HB114 Compare Versions

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

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2	2	HB0114a -1- HB 114
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5	5	34-LS0529\A
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11	11	HOUSE BILL NO. 114
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
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15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
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17	17	BY REPRESENTATIVE CARRICK
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19	19	Introduced: 2/26/25
20	20	Referred: State Affairs, 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 the Alaska permanent fund; relating to permanent fund dividends; 1
28	28	relating to the use of state income from mineral lease rentals, royalties, royalty sale 2
29	29	proceeds, federal mineral revenue sharing payments, and bonuses from mineral leases; 3
30	30	relating to contributions from permanent fund dividends to the general and permanent 4
31	31	funds; and providing for an effective date." 5
32	32	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
33	33	* Section 1. AS 37.13.140(a) is amended to read: 7
34	34	(a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 8
35	35	EARNINGS RESERVE ACCOUNT EST ABLISHED UNDER AS 37.13.145.] Net 9
36	36	income of the fund shall be computed annually as of the last day of the fiscal year in 10
37	37	accordance with generally accepted accounting principles, excluding any unrealized 11
38	38	gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 12
39	39	PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 13 34-LS0529\A
40	40	HB 114 -2- HB0114a
41	41	New Text Underlined [DELETED TEXT BRACKETED]
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43	43	YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 1
44	44	EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 2
45	45	PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 3
46	46	IN AS 37.13.145.] 4
47	47	* Sec. 2. AS 37.13.145(c) is amended to read: 5
48	48	(c) After the [TRANSFER UNDER (b) AND AN] appropriation under (e) of 6
49	49	this section, the legislature may appropriate [CORPORATION SHALL 7
50	50	TRANSFER] from the earnings reserve account to the principal of the fund an amount 8
51	51	sufficient to offset the effect of inflation on the principal of the fund during that fiscal 9
52	52	year. However, none of the amount appropriated [TRANSFERRED] shall be applied 10
53	53	to increase the value of that portion of the principal attributed to the settlement of State 11
54	54	v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 12
55	55	July 1, 2004. The corporation shall calculate the amount sufficient to offset the effect 13
56	56	of inflation [TO TRANSFER TO THE PRINCIPAL] under this subsection by 14
57	57	(1) computing the average of the monthly United States Consumer 15
58	58	Price Index for all urban consumers for each of the two previous calendar years; 16
59	59	(2) computing the percentage change between the first and second 17
60	60	calendar year average; and 18
61	61	(3) applying that rate to the value of the principal of the fund on the 19
62	62	last day of the fiscal year just ended, including that portion of the principal attributed 20
63	63	to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 21
64	64	First Judicial District). 22
65	65	* Sec. 3. AS 37.13.145(d) is amended to read: 23
66	66	(d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 24
67	67	earned on money awarded in or received as a result of State v. Amerada Hess, et al., 25
68	68	1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 26
69	69	summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 27
70	70	outcome of this case, or interest earned on the money, or on the earnings of the money 28
71	71	shall be treated in the same manner as other income of the Alaska permanent fund, 29
72	72	except that it is not available for appropriation [DISTRIBUTION TO THE 30
73	73	DIVIDEND FUND, FOR TRANSFERS] to the principal under (c) of this section [,] 31 34-LS0529\A
74	74	HB0114a -3- HB 114
75	75	New Text Underlined [DELETED TEXT BRACKETED]
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77	77	or for an appropriation under (e) of this section, and shall be annually deposited into 1
78	78	the Alaska capital income fund (AS 37.05.565). 2
79	79	* Sec. 4. AS 37.13.145(e) is amended to read: 3
80	80	(e) The legislature may not appropriate from the earnings reserve account [TO 4
81	81	THE GENERAL FUND] a total amount that exceeds the amount available for 5
82	82	appropriation under AS 37.13.140(b) in a fiscal year. 6
83	83	* Sec. 5. AS 43.23.025(a) is amended to read: 7
84	84	(a) By October 1 of each year, the commissioner shall determine the value of 8
85	85	each permanent fund dividend for that year by 9
86	86	(1) determining the total amount available for dividend payments, 10
87	87	which equals 11
88	88	(A) the amount appropriated [OF INCOME OF THE 12
89	89	ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 13
90	90	established under AS 43.23.045 [AS 37.13.145(b)] during the current year; 14
91	91	(B) plus the unexpended and unobligated balances of prior 15
92	92	fiscal year appropriations that lapse into the dividend fund under 16
93	93	AS 43.23.045(d); 17
94	94	(C) less the amount necessary to pay prior year dividends from 18
95	95	the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 19
96	96	43.23.055(3) and (7); 20
97	97	(D) less the amount necessary to pay dividends from the 21
98	98	dividend fund due to eligible applicants who, as determined by the department, 22
99	99	filed for a previous year's dividend by the filing deadline but who were not 23
100	100	included in a previous year's dividend computation; 24
101	101	(E) less appropriations from the dividend fund during the 25
102	102	current year, including amounts to pay costs of administering the dividend 26
103	103	program and the hold harmless provisions of AS 43.23.240; 27
104	104	(2) determining the number of individuals eligible to receive a 28
105	105	dividend payment for the current year and the number of estates and successors 29
106	106	eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 30
107	107	(3) dividing the amount determined under (1) of this subsection by the 31 34-LS0529\A
108	108	HB 114 -4- HB0114a
109	109	New Text Underlined [DELETED TEXT BRACKETED]
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111	111	amount determined under (2) of this subsection. 1
112	112	* Sec. 6. AS 43.23.028(a) is amended to read: 2
113	113	(a) By October 1 of each year, the commissioner shall give public notice of 3
114	114	the value of each permanent fund dividend for that year and notice of the information 4
115	115	required to be disclosed under (3) of this subsection. In addition, the stub attached to 5
116	116	each individual dividend disbursement advice must 6
117	117	(1) disclose the amount of each dividend attributable to legislative 7
118	118	appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 8
119	119	DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 9
120	120	CONSTITUTION OF THE STATE OF ALASKA]; 10
121	121	(2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 11
122	122	ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 12
123	123	APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 13
124	124	THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 14
125	125	(3)] disclose the amount by which each dividend has been reduced due 15
126	126	to each appropriation from the dividend fund, including amounts to pay the costs of 16
127	127	administering the dividend program and the hold harmless provisions of 17
128	128	AS 43.23.240; 18
129	129	(3) [(4)] include a statement that an individual is not eligible for a 19
130	130	dividend when 20
131	131	(A) during the qualifying year, the individual was convicted of 21
132	132	a felony; 22
133	133	(B) during all or part of the qualifying year, the individual was 23
134	134	incarcerated as a result of the conviction of a 24
135	135	(i) felony; or 25
136	136	(ii) misdemeanor if the individual has been convicted of 26
137	137	a prior felony or two or more prior misdemeanors; 27
138	138	(4) [(5)] include a statement that the legislative purpose for making 28
139	139	individuals listed under (3) [(4)] of this subsection ineligible is to 29
140	140	(A) provide funds for services for and payments to crime 30
141	141	victims and operating costs of the Violent Crimes Compensation Board; 31 34-LS0529\A
142	142	HB0114a -5- HB 114
143	143	New Text Underlined [DELETED TEXT BRACKETED]
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145	145	(B) provide funds to pay restitution owed to crime victims; 1
146	146	(C) provide funds for grants to nonprofit organizations for 2
147	147	services for crime victims and for mental health services and substance abuse 3
148	148	treatment for offenders; 4
149	149	(D) provide funds for the office of victims' rights; 5
150	150	(E) provide funds to the Council on Domestic Violence and 6
151	151	Sexual Assault for grants for the operation of domestic violence and sexual 7
152	152	assault programs; and 8
153	153	(F) obtain reimbursement for some of the costs imposed on the 9
154	154	Department of Corrections related to incarceration or probation of those 10
155	155	individuals; 11
156	156	(5) [(6)] disclose the total amount that would have been paid during the 12
157	157	previous fiscal year to individuals who were ineligible to receive dividends under 13
158	158	AS 43.23.005(d) if they had been eligible; 14
159	159	(6) [(7)] disclose the total amount transferred or appropriated for the 15
160	160	current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 16
161	161	listed in AS 43.23.048. 17
162	162	* Sec. 7. AS 43.23.045 is amended by adding a new subsection to read: 18
163	163	(f) Each fiscal year, after the appropriations or transfers made under 19
164	164	AS 37.13.010 and AS 37.14.150, the legislature may appropriate to the dividend fund 20
165	165	69 percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral 21
166	166	revenue sharing payments, and bonuses received by the state during that fiscal year. 22
167	167	* Sec. 8. AS 43.23 is amended by adding a new section to read: 23
168	168	Sec. 43.23.135. Contributions to the general and permanent funds. (a) 24
169	169	Notwithstanding AS 43.23.200, the electronic Alaska permanent fund dividend 25
170	170	application must allow an applicant to direct that money be subtracted from the 26
171	171	dividend payment and contributed to the state general fund or the principal of the 27
172	172	permanent fund. A contribution to the state general fund or the principal of the 28
173	173	permanent fund may be $25 or more, in increments of $25, up to the total amount of 29
174	174	the permanent fund dividend that the applicant is entitled to receive. If the applicant's 30
175	175	total amount of contributions under this subsection, when added to the total amount of 31 34-LS0529\A
176	176	HB 114 -6- HB0114a
177	177	New Text Underlined [DELETED TEXT BRACKETED]
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179	179	contributions under AS 43.23.130, exceeds the amount of the permanent fund 1
180	180	dividend that the applicant is entitled to receive, contributions under AS 43.23.130 2
181	181	shall have priority over contributions under this subsection. The electronic application 3
182	182	must include notice that seven percent of the money contributed to the state general 4
183	183	fund or the principal of the permanent fund will be used for administrative costs 5
184	184	incurred in implementing this subsection and that money from the dividend fund will 6
185	185	not be used for that purpose. 7
186	186	(b) A public agency that claims a permanent fund dividend on behalf of an 8
187	187	individual under AS 43.23.015(e) may not elect to make contributions from the 9
188	188	dividend under this section. 10
189	189	(c) In preparing the electronic Alaska permanent fund dividend application, 11
190	190	the department shall ensure that the option to make a contribution under this section is 12
191	191	in a separate section of the application than the option to make a contribution under 13
192	192	AS 43.23.130. 14
193	193	* Sec. 9. AS 37.13.145(b) and 37.13.145(f) are repealed. 15
194	194	* Sec. 10. This Act takes effect July 1, 2025. 16