SB 114: "An Act relating to deposits into the dividend fund; and relating to the Alaska permanent fund."
00 SENATE BILL NO. 114 01 "An Act relating to deposits into the dividend fund; and relating to the Alaska 02 permanent fund." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.13.010(a) is amended to read: 05 (a) Under art. IX, sec. 15, of the state constitution, there is established as a 06 separate fund the Alaska permanent fund. The Alaska permanent fund consists of 07 (1) 25 percent of all mineral lease rentals, royalties, royalty sale 08 proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue 09 sharing payments received by the state from mineral leases issued on or before 10 December 1, 1979, and 25 percent of all bonuses received by the state from mineral 11 leases issued on or before February 15, 1980; 12 (2) 25  percent of all mineral lease rentals, royalties, royalty sale 13 proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue 14 sharing payments received by the state from mineral leases issued after December 1,
01 1979, and 25  percent of all bonuses received by the state from mineral leases 02 issued after February 15, 1980; and 03 (3) any other money appropriated to or otherwise allocated by law or 04 former law to the Alaska permanent fund. 05 * Sec. 2. AS 37.13 is amended by adding a new section to read: 06 Sec. 37.13.015. Appropriations to the dividend fund. The legislature may 07 appropriate to the dividend fund established in AS 43.23.045, 74.5 percent of all 08 mineral lease rentals, royalties, royalty sale proceeds, net profit shares under 09 AS 38.05.180(f) and (g), and federal mineral revenue sharing payments received by 10 the state from mineral leases issued after December 1, 1979, and 74.5 percent of all 11 bonuses received by the state from mineral leases issued after February 15, 1980. 12 Nothing in the section creates a dedicated fund. 13 * Sec. 3. AS 37.13.140 is amended to read: 14 Sec. 37.13.140. Income. Net income of the fund includes income of the 15 earnings reserve account established under AS 37.13.145. Net income of the fund shall 16 be computed annually as of the last day of the fiscal year in accordance with generally 17 accepted accounting principles, excluding any unrealized gains or losses. [INCOME 18 AVAILABLE FOR DISTRIBUTION EQUALS 21 PERCENT OF THE NET 19 INCOME OF THE FUND FOR THE LAST FIVE FISCAL YEARS, INCLUDING 20 THE FISCAL YEAR JUST ENDED, BUT MAY NOT EXCEED NET INCOME OF 21 THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS THE BALANCE IN 22 THE EARNINGS RESERVE ACCOUNT DESCRIBED IN AS 37.13.145.] 23 * Sec. 4. AS 37.13.145(d) is amended to read: 24 (d) Notwithstanding (e) [(b)] of this section, income earned on money 25 awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. 26 (Superior Court, First Judicial District), including settlement, summary judgment, or 27 adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or 28 interest earned on the money, or on the earnings of the money shall be treated in the 29 same manner as other income of the Alaska permanent fund, except that it is not 30 available for distribution to the dividend fund or for transfers to the general fund 31 [PRINCIPAL] under (e) [(c)] of this section, and shall be annually deposited into the
01 Alaska capital income fund (AS 37.05.565). 02 * Sec. 5. AS 37.13.145 is amended by adding a new subsection to read: 03 (e) At the end of each fiscal year, the corporation shall transfer from the 04 earnings reserve account to the general fund five percent of the average market value 05 of the permanent fund during the preceding five fiscal years. If the amount available 06 for transfer under this subsection is less than five percent of the average market value 07 of the permanent fund during the preceding five fiscal years, the corporation shall 08 transfer the balance of the earnings reserve account to the general fund. 09 * Sec. 6. AS 37.13.300(c) is amended to read: 10 (c) Net income from the mental health trust fund may not be included in the 11 computation of net income [AVAILABLE FOR DISTRIBUTION] under 12 AS 37.13.140. 13 * Sec. 7. AS 43.23.025(a) is amended to read: 14 (a) By October 1 of each year, the commissioner shall determine the value of 15 each permanent fund dividend for that year by 16 (1) determining the total amount available for dividend payments, 17 which equals 18 (A) the amount appropriated [OF INCOME OF THE 19 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund 20 under AS 37.13.015 [AS 37.13.145(b)] during the current year; 21 (B) plus the unexpended and unobligated balances of prior 22 fiscal year appropriations that lapse into the dividend fund under 23 AS 43.23.045(d); 24 (C) less the amount necessary to pay prior year dividends from 25 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and 26 43.23.055(3) and (7); 27 (D) less the amount necessary to pay dividends from the 28 dividend fund due to eligible applicants who, as determined by the department, 29 filed for a previous year's dividend by the filing deadline but who were not 30 included in a previous year's dividend computation; 31 (E) less appropriations from the dividend fund during the
01 current year, including amounts to pay costs of administering the dividend 02 program and the hold harmless provisions of AS 43.23.075; 03 (2) determining the number of individuals eligible to receive a 04 dividend payment for the current year and the number of estates and successors 05 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and 06 (3) dividing the amount determined under (1) of this subsection by the 07 amount determined under (2) of this subsection. 08 * Sec. 8. AS 43.23.025 is amended by adding a new subsection to read: 09 (c) If the value of each permanent fund dividend calculated under (a) of this 10 section results in a dividend for each eligible individual that is less than $1,000, then 11 the legislature may appropriate from the earnings reserve account established in 12 AS 37.13.145 an amount necessary to pay each eligible individual a permanent fund 13 dividend of $1,000. 14 * Sec. 9. AS 43.23.045(d) is amended to read: 15 (d) Unless specified otherwise in an appropriation act, the unexpended and 16 unobligated balance of an appropriation to implement this chapter lapses into the 17 dividend fund on June 30 of the fiscal year for which the appropriation was made and 18 may [SHALL] be used in determining the amount of and paying the subsequent year's 19 dividend as provided in AS 43.23.025(a)(1)(B). 20 * Sec. 10. AS 37.13.145(b) and 37.13.145(c) are repealed.