Alaska 2025-2026 Regular Session

Alaska Senate Bill SB109 Compare Versions

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

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2	2	SB0109A -1- SB 109
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5	5	34-LS0598\N
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11	11	SENATE BILL NO. 109
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
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17	17	BY SENATORS HOFFMAN, Stedman , Olson, Cronk, Kiehl, Merrick, Kaufman
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19	19	Introduced: 2/24/25
20	20	Referred: Finance
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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 income of the Alaska 1
28	28	permanent fund; relating to the amount available for appropriation and appropriations 2
29	29	from the earnings reserve account; relating to the permanent fund dividend; and 3
30	30	providing for an effective date." 4
31	31	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
32	32	* Section 1. AS 37.13.140 is amended to read: 6
33	33	Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 7
34	34	INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 8
35	35	AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 9
36	36	of the fiscal year in accordance with generally accepted accounting principles, 10
37	37	excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 11
38	38	DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 12
39	39	FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 13
40	40	ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 14 34-LS0598\N
41	41	SB 109 -2- SB0109A
42	42	New Text Underlined [DELETED TEXT BRACKETED]
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44	44	FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 1
45	45	RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 2
46	46	(b) The corporation shall determine the amount available for appropriation 3
47	47	each year. The amount available for appropriation is five percent of the average 4
48	48	market value of the fund for the first five of the preceding six fiscal years, including 5
49	49	the fiscal year just ended, computed annually for each fiscal year in accordance with 6
50	50	generally accepted accounting principles. The amount available for appropriation 7
51	51	may not exceed the balance in the earnings reserve account described in 8
52	52	AS 37.13.145. In this subsection, "average market value of the fund" includes the 9
53	53	balance of the earnings reserve account established under AS 37.13.145, but does not 10
54	54	include that portion of the principal attributed to the settlement of State v. Amerada 11
55	55	Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 12
56	56	* Sec. 2. AS 37.13.145(b) is amended to read: 13
57	57	(b) Each [AT THE END OF EACH] fiscal year, the legislature may 14
58	58	appropriate [CORPORATION SHALL TRANSFER] from the 15
59	59	(1) earnings reserve account to the general fund the amount 16
60	60	available for appropriation calculated under AS 37.13.140(b); 17
61	61	(2) general fund to the dividend fund established under 18
62	62	AS 43.23.045, 25 [50] percent of the income available for appropriation 19
63	63	[DISTRIBUTION] under AS 37.13.140(b) [AS 37.13.140]. 20
64	64	* Sec. 3. AS 37.13.145(c) is amended to read: 21
65	65	(c) After the appropriations [TRANSFER] under (b) [AND AN 22
66	66	APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 23
67	67	[CORPORATION SHALL TRANSFER] from the earnings reserve account to the 24
68	68	principal of the fund an amount sufficient to offset the effect of inflation on the 25
69	69	principal of the fund during that fiscal year. However, none of the amount 26
70	70	appropriated [TRANSFERRED] shall be applied to increase the value of that portion 27
71	71	of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-28
72	72	847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 29
73	73	calculate the amount to appropriate [TRANSFER] to the principal under this 30
74	74	subsection by 31 34-LS0598\N
75	75	SB0109A -3- SB 109
76	76	New Text Underlined [DELETED TEXT BRACKETED]
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78	78	(1) computing the average of the monthly United States Consumer 1
79	79	Price Index for all urban consumers for each of the two previous calendar years; 2
80	80	(2) computing the percentage change between the first and second 3
81	81	calendar year average; and 4
82	82	(3) applying that rate to the value of the principal of the fund on the 5
83	83	last day of the fiscal year just ended, including that portion of the principal attributed 6
84	84	to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 7
85	85	First Judicial District). 8
86	86	* Sec. 4. AS 37.13.145(d) is amended to read: 9
87	87	(d) Notwithstanding (b) of this section, income earned on money awarded in 10
88	88	or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 11
89	89	Court, First Judicial District), including settlement, summary judgment, or adjustment 12
90	90	to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 13
91	91	on the money, or on the earnings of the money shall be treated in the same manner as 14
92	92	other income of the Alaska permanent fund, except that it is not available for 15
93	93	appropriation [DISTRIBUTION] to the general fund or the dividend fund under 16
94	94	(b) of this section or [,] for an appropriation [TRANSFERS] to the principal under 17
95	95	(c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THI S 18
96	96	SECTION,] and shall be annually deposited into the Alaska capital income fund 19
97	97	(AS 37.05.565). 20
98	98	* Sec. 5. AS 37.13.300(c) is amended to read: 21
99	99	(c) Net income from the mental health trust fund may not be included in the 22
100	100	computation of the amount [NET INCOME OR MARKET VALUE] available for 23
101	101	[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 24
102	102	* Sec. 6. AS 43.23.025(a) is amended to read: 25
103	103	(a) By October 1 of each year, the commissioner shall determine the value of 26
104	104	each permanent fund dividend for that year by 27
105	105	(1) determining the total amount available for dividend payments, 28
106	106	which equals 29
107	107	(A) the amount appropriated [OF INCOME OF THE 30
108	108	ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 31 34-LS0598\N
109	109	SB 109 -4- SB0109A
110	110	New Text Underlined [DELETED TEXT BRACKETED]
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112	112	under AS 37.13.145(b) during the current year; 1
113	113	(B) plus the unexpended and unobligated balances of prior 2
114	114	fiscal year appropriations that lapse into the dividend fund under 3
115	115	AS 43.23.045(d); 4
116	116	(C) less the amount necessary to pay prior year dividends from 5
117	117	the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 6
118	118	43.23.055(3) and (7); 7
119	119	(D) less the amount necessary to pay dividends from the 8
120	120	dividend fund due to eligible applicants who, as determined by the department, 9
121	121	filed for a previous year's dividend by the filing deadline but who were not 10
122	122	included in a previous year's dividend computation; 11
123	123	(E) less appropriations from the dividend fund during the 12
124	124	current year, including amounts to pay costs of administering the dividend 13
125	125	program and the hold harmless provisions of AS 43.23.240; 14
126	126	(2) determining the number of individuals eligible to receive a 15
127	127	dividend payment for the current year and the number of estates and successors 16
128	128	eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 17
129	129	(3) dividing the amount determined under (1) of this subsection by the 18
130	130	amount determined under (2) of this subsection. 19
131	131	* Sec. 7. AS 37.13.145(e) and 37.13.145(f) are repealed. 20
132	132	* Sec. 8. This Act takes effect immediately under AS 01.10.070(c). 21