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SENATE BILL NO. 109
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATORS HOFFMAN, Stedman , Olson, Cronk, Kiehl, Merrick, Kaufman
Introduced: 2/24/25
Referred: Finance
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. AS 37.13.140 is amended to read: 6
Sec. 37.13.140. Income. (a) [NET INCOME OF THE FUND INCLUDES 7
INCOME OF THE EARNINGS RESERVE ACCOUNT ESTABLISHED UNDER 8
AS 37.13.145.] Net income of the fund shall be computed annually as of the last day 9
of the fiscal year in accordance with generally accepted accounting principles, 10
excluding any unrealized gains or losses. [INCOME AVAILABLE FOR 11
DISTRIBUTION EQUALS 21 PERCENT OF THE NET INCOME OF THE FUND 12
FOR THE LAST FIVE FISCAL YEARS, INCLUDING THE FISCAL YEAR JUST 13
ENDED, BUT MAY NOT EXCEED NET INCOME OF THE FUND FOR THE 14 34-LS0598\N
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FISCAL YEAR JUST ENDED PLUS THE BALANCE IN THE EARNINGS 1
RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 2
(b) The corporation shall determine the amount available for appropriation 3
each year. The amount available for appropriation is five percent of the average 4
market value of the fund for the first five of the preceding six fiscal years, including 5
the fiscal year just ended, computed annually for each fiscal year in accordance with 6
generally accepted accounting principles. The amount available for appropriation 7
may not exceed the balance in the earnings reserve account described in 8
AS 37.13.145. In this subsection, "average market value of the fund" includes the 9
balance of the earnings reserve account established under AS 37.13.145, but does not 10
include that portion of the principal attributed to the settlement of State v. Amerada 11
Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District). 12
* Sec. 2. AS 37.13.145(b) is amended to read: 13
(b) Each [AT THE END OF EACH] fiscal year, the legislature may 14
appropriate [CORPORATION SHALL TRANSFER] from the 15
(1) earnings reserve account to the general fund the amount 16
available for appropriation calculated under AS 37.13.140(b); 17
(2) general fund to the dividend fund established under 18
AS 43.23.045, 25 [50] percent of the income available for appropriation 19
[DISTRIBUTION] under AS 37.13.140(b) [AS 37.13.140]. 20
* Sec. 3. AS 37.13.145(c) is amended to read: 21
(c) After the appropriations [TRANSFER] under (b) [AND AN 22
APPROPRIATION UNDER (e)] of this section, the legislature may appropriate 23
[CORPORATION SHALL TRANSFER] from the earnings reserve account to the 24
principal of the fund an amount sufficient to offset the effect of inflation on the 25
principal of the fund during that fiscal year. However, none of the amount 26
appropriated [TRANSFERRED] shall be applied to increase the value of that portion 27
of the principal attributed to the settlement of State v. Amerada Hess, et al., 1JU-77-28
847 Civ. (Superior Court, First Judicial District) on July 1, 2004. The corporation shall 29
calculate the amount to appropriate [TRANSFER] to the principal under this 30
subsection by 31 34-LS0598\N
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(1) computing the average of the monthly United States Consumer 1
Price Index for all urban consumers for each of the two previous calendar years; 2
(2) computing the percentage change between the first and second 3
calendar year average; and 4
(3) applying that rate to the value of the principal of the fund on the 5
last day of the fiscal year just ended, including that portion of the principal attributed 6
to the settlement of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, 7
First Judicial District). 8
* Sec. 4. AS 37.13.145(d) is amended to read: 9
(d) Notwithstanding (b) of this section, income earned on money awarded in 10
or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior 11
Court, First Judicial District), including settlement, summary judgment, or adjustment 12
to a royalty-in-kind contract that is tied to the outcome of this case, or interest earned 13
on the money, or on the earnings of the money shall be treated in the same manner as 14
other income of the Alaska permanent fund, except that it is not available for 15
appropriation [DISTRIBUTION] to the general fund or the dividend fund under 16
(b) of this section or [,] for an appropriation [TRANSFERS] to the principal under 17
(c) of this section [, OR FOR AN APPROPRIATION UNDER (e) OF THI S 18
SECTION,] and shall be annually deposited into the Alaska capital income fund 19
(AS 37.05.565). 20
* Sec. 5. AS 37.13.300(c) is amended to read: 21
(c) Net income from the mental health trust fund may not be included in the 22
computation of the amount [NET INCOME OR MARKET VALUE] available for 23
[DISTRIBUTION OR] appropriation under AS 37.13.140(b) [AS 37.13.140]. 24
* Sec. 6. AS 43.23.025(a) is amended to read: 25
(a) By October 1 of each year, the commissioner shall determine the value of 26
each permanent fund dividend for that year by 27
(1) determining the total amount available for dividend payments, 28
which equals 29
(A) the amount appropriated [OF INCOME OF THE 30
ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 31 34-LS0598\N
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under AS 37.13.145(b) during the current year; 1
(B) plus the unexpended and unobligated balances of prior 2
fiscal year appropriations that lapse into the dividend fund under 3
AS 43.23.045(d); 4
(C) less the amount necessary to pay prior year dividends from 5
the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 6
43.23.055(3) and (7); 7
(D) less the amount necessary to pay dividends from the 8
dividend fund due to eligible applicants who, as determined by the department, 9
filed for a previous year's dividend by the filing deadline but who were not 10
included in a previous year's dividend computation; 11
(E) less appropriations from the dividend fund during the 12
current year, including amounts to pay costs of administering the dividend 13
program and the hold harmless provisions of AS 43.23.240; 14
(2) determining the number of individuals eligible to receive a 15
dividend payment for the current year and the number of estates and successors 16
eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 17
(3) dividing the amount determined under (1) of this subsection by the 18
amount determined under (2) of this subsection. 19
* Sec. 7. AS 37.13.145(e) and 37.13.145(f) are repealed. 20
* Sec. 8. This Act takes effect immediately under AS 01.10.070(c). 21