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HOUSE BILL NO. 114
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY REPRESENTATIVE CARRICK
Introduced: 2/26/25
Referred: State Affairs, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to the Alaska permanent fund; relating to permanent fund dividends; 1
relating to the use of state income from mineral lease rentals, royalties, royalty sale 2
proceeds, federal mineral revenue sharing payments, and bonuses from mineral leases; 3
relating to contributions from permanent fund dividends to the general and permanent 4
funds; and providing for an effective date." 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
* Section 1. AS 37.13.140(a) is amended to read: 7
(a) [NET INCOME OF THE FUND INCLUDES INCOME OF THE 8
EARNINGS RESERVE ACCOUNT EST ABLISHED UNDER AS 37.13.145.] Net 9
income of the fund shall be computed annually as of the last day of the fiscal year in 10
accordance with generally accepted accounting principles, excluding any unrealized 11
gains or losses. [INCOME AVAILABLE FOR DISTRIBUTION EQUALS 21 12
PERCENT OF THE NET INCOME OF THE FUND FOR THE LAST FIVE FISCAL 13 34-LS0529\A
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YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY NOT 1
EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED 2
PLUS THE BALANCE IN THE EARNINGS RESERVE ACCOUNT DESCRIBED 3
IN AS 37.13.145.] 4
* Sec. 2. AS 37.13.145(c) is amended to read: 5
(c) After the [TRANSFER UNDER (b) AND AN] appropriation under (e) of 6
this section, the legislature may appropriate [CORPORATION SHALL 7
TRANSFER] from the earnings reserve account to the principal of the fund an amount 8
sufficient to offset the effect of inflation on the principal of the fund during that fiscal 9
year. However, none of the amount appropriated [TRANSFERRED] shall be applied 10
to increase the value of that portion of the principal attributed to the settlement of State 11
v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District) on 12
July 1, 2004. The corporation shall calculate the amount sufficient to offset the effect 13
of inflation [TO TRANSFER TO THE PRINCIPAL] under this subsection by 14
(1) computing the average of the monthly United States Consumer 15
Price Index for all urban consumers for each of the two previous calendar years; 16
(2) computing the percentage change between the first and second 17
calendar year average; and 18
(3) applying that rate to the value of the principal of the fund on the 19
last day of the fiscal year just ended, including that portion of the principal attributed 20
to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 21
First Judicial District). 22
* Sec. 3. AS 37.13.145(d) is amended to read: 23
(d) Income [NOTWITHSTANDING (b) OF THIS SECTION, INCOME] 24
earned on money awarded in or received as a result of State v. Amerada Hess, et al., 25
1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement, 26
summary judgment, or adjustment to a royalty-in-kind contract that is tied to the 27
outcome of this case, or interest earned on the money, or on the earnings of the money 28
shall be treated in the same manner as other income of the Alaska permanent fund, 29
except that it is not available for appropriation [DISTRIBUTION TO THE 30
DIVIDEND FUND, FOR TRANSFERS] to the principal under (c) of this section [,] 31 34-LS0529\A
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or for an appropriation under (e) of this section, and shall be annually deposited into 1
the Alaska capital income fund (AS 37.05.565). 2
* Sec. 4. AS 37.13.145(e) is amended to read: 3
(e) The legislature may not appropriate from the earnings reserve account [TO 4
THE GENERAL FUND] a total amount that exceeds the amount available for 5
appropriation under AS 37.13.140(b) in a fiscal year. 6
* Sec. 5. AS 43.23.025(a) is amended to read: 7
(a) By October 1 of each year, the commissioner shall determine the value of 8
each permanent fund dividend for that year by 9
(1) determining the total amount available for dividend payments, 10
which equals 11
(A) the amount appropriated [OF INCOME OF THE 12
ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 13
established under AS 43.23.045 [AS 37.13.145(b)] during the current year; 14
(B) plus the unexpended and unobligated balances of prior 15
fiscal year appropriations that lapse into the dividend fund under 16
AS 43.23.045(d); 17
(C) less the amount necessary to pay prior year dividends from 18
the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 19
43.23.055(3) and (7); 20
(D) less the amount necessary to pay dividends from the 21
dividend fund due to eligible applicants who, as determined by the department, 22
filed for a previous year's dividend by the filing deadline but who were not 23
included in a previous year's dividend computation; 24
(E) less appropriations from the dividend fund during the 25
current year, including amounts to pay costs of administering the dividend 26
program and the hold harmless provisions of AS 43.23.240; 27
(2) determining the number of individuals eligible to receive a 28
dividend payment for the current year and the number of estates and successors 29
eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 30
(3) dividing the amount determined under (1) of this subsection by the 31 34-LS0529\A
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amount determined under (2) of this subsection. 1
* Sec. 6. AS 43.23.028(a) is amended to read: 2
(a) By October 1 of each year, the commissioner shall give public notice of 3
the value of each permanent fund dividend for that year and notice of the information 4
required to be disclosed under (3) of this subsection. In addition, the stub attached to 5
each individual dividend disbursement advice must 6
(1) disclose the amount of each dividend attributable to legislative 7
appropriations [INCOME EARNED BY THE PERMANENT FUND FROM 8
DEPOSITS TO THAT FUND REQUIRED UNDER ART. IX, SEC. 15, 9
CONSTITUTION OF THE STATE OF ALASKA]; 10
(2) [DISCLOSE THE AMOUNT OF EACH DIVIDEND 11
ATTRIBUTABLE TO INCOME EARNED BY THE PERMANENT FUND FROM 12
APPROPRIATIONS TO THAT FUND AND FROM AMOUNTS ADDED TO 13
THAT FUND TO OFFSET THE EFFECTS OF INFLATION; 14
(3)] disclose the amount by which each dividend has been reduced due 15
to each appropriation from the dividend fund, including amounts to pay the costs of 16
administering the dividend program and the hold harmless provisions of 17
AS 43.23.240; 18
(3) [(4)] include a statement that an individual is not eligible for a 19
dividend when 20
(A) during the qualifying year, the individual was convicted of 21
a felony; 22
(B) during all or part of the qualifying year, the individual was 23
incarcerated as a result of the conviction of a 24
(i) felony; or 25
(ii) misdemeanor if the individual has been convicted of 26
a prior felony or two or more prior misdemeanors; 27
(4) [(5)] include a statement that the legislative purpose for making 28
individuals listed under (3) [(4)] of this subsection ineligible is to 29
(A) provide funds for services for and payments to crime 30
victims and operating costs of the Violent Crimes Compensation Board; 31 34-LS0529\A
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(B) provide funds to pay restitution owed to crime victims; 1
(C) provide funds for grants to nonprofit organizations for 2
services for crime victims and for mental health services and substance abuse 3
treatment for offenders; 4
(D) provide funds for the office of victims' rights; 5
(E) provide funds to the Council on Domestic Violence and 6
Sexual Assault for grants for the operation of domestic violence and sexual 7
assault programs; and 8
(F) obtain reimbursement for some of the costs imposed on the 9
Department of Corrections related to incarceration or probation of those 10
individuals; 11
(5) [(6)] disclose the total amount that would have been paid during the 12
previous fiscal year to individuals who were ineligible to receive dividends under 13
AS 43.23.005(d) if they had been eligible; 14
(6) [(7)] disclose the total amount transferred or appropriated for the 15
current fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies 16
listed in AS 43.23.048. 17
* Sec. 7. AS 43.23.045 is amended by adding a new subsection to read: 18
(f) Each fiscal year, after the appropriations or transfers made under 19
AS 37.13.010 and AS 37.14.150, the legislature may appropriate to the dividend fund 20
69 percent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral 21
revenue sharing payments, and bonuses received by the state during that fiscal year. 22
* Sec. 8. AS 43.23 is amended by adding a new section to read: 23
Sec. 43.23.135. Contributions to the general and permanent funds. (a) 24
Notwithstanding AS 43.23.200, the electronic Alaska permanent fund dividend 25
application must allow an applicant to direct that money be subtracted from the 26
dividend payment and contributed to the state general fund or the principal of the 27
permanent fund. A contribution to the state general fund or the principal of the 28
permanent fund may be $25 or more, in increments of $25, up to the total amount of 29
the permanent fund dividend that the applicant is entitled to receive. If the applicant's 30
total amount of contributions under this subsection, when added to the total amount of 31 34-LS0529\A
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contributions under AS 43.23.130, exceeds the amount of the permanent fund 1
dividend that the applicant is entitled to receive, contributions under AS 43.23.130 2
shall have priority over contributions under this subsection. The electronic application 3
must include notice that seven percent of the money contributed to the state general 4
fund or the principal of the permanent fund will be used for administrative costs 5
incurred in implementing this subsection and that money from the dividend fund will 6
not be used for that purpose. 7
(b) A public agency that claims a permanent fund dividend on behalf of an 8
individual under AS 43.23.015(e) may not elect to make contributions from the 9
dividend under this section. 10
(c) In preparing the electronic Alaska permanent fund dividend application, 11
the department shall ensure that the option to make a contribution under this section is 12
in a separate section of the application than the option to make a contribution under 13
AS 43.23.130. 14
* Sec. 9. AS 37.13.145(b) and 37.13.145(f) are repealed. 15
* Sec. 10. This Act takes effect July 1, 2025. 16