22nd Legislature(2001-2002)
Bill Text 22nd Legislature
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00 HOUSE BILL NO. 35
01 "An Act relating to the market value of the permanent fund and to distribution of
02 income of the permanent fund; and providing for an effective date."
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
04 * Section 1. AS 37.13.140 is amended to read:
05 Sec. 37.13.140. Income available for distribution. The market value [NET
06 INCOME] of the fund includes the market value [INCOME] of the earnings reserve
07 account established under AS 37.13.145. The market value [NET INCOME] of the
08 fund shall be computed annually as of the last day of the fiscal year in accordance with
09 generally accepted accounting principles [, EXCLUDING ANY UNREALIZED
10 GAINS OR LOSSES]. Income available for distribution equals 5.3 [21] percent of the
11 average year-end market value [NET INCOME] of the fund for the last three
12 [FIVE] fiscal years, including the fiscal year just ended, but may not exceed [NET
13 INCOME OF THE FUND FOR THE FISCAL YEAR JUST ENDED PLUS] the
14 balance in the earnings reserve account described in AS 37.13.145.
01 * Sec. 2. AS 37.13.145(b) is amended to read:
02 (b) By October 1 [AT THE END OF] each [FISCAL] year, the corporation
03 shall transfer from the earnings reserve account to the dividend fund established under
04 AS 43.23.045, 75 [50] percent of the income available for distribution under
05 AS 37.13.140, or the balance in the account, whichever is less.
06 * Sec. 3. AS 37.13.145(d) is amended to read:
07 (d) Notwithstanding (b) and (e) of this section, income earned on money
08 awarded in or received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ.
09 (Superior Court, First Judicial District), including settlement, summary judgment, or
10 adjustment to a royalty-in-kind contract that is tied to the outcome of this case, or
11 interest earned on the money, or on the earnings of the money shall be treated in the
12 same manner as other income of the Alaska permanent fund, except that it is not
13 available for distribution [TO THE DIVIDEND FUND], and shall be annually
14 deposited into the principal of the Alaska permanent fund.
15 * Sec. 4. AS 37.13.145 is amended by adding a new subsection to read:
16 (e) By October 1 each year after the transfer under (b) of this section, the
17 corporation shall transfer from the earnings reserve account to the general fund 25
18 percent of the income available for distribution under AS 37.13.140, or the balance in
19 the account, whichever is less.
20 * Sec. 5. AS 37.13.150 is amended to read:
21 Sec. 37.13.150. Corporation budget. The revenue generated by the fund's
22 investments must be identified as the source of the operating budget of the corporation
23 in the state's operating budget under AS 37.07 (Executive Budget Act). The
24 unexpended balance of the corporation's annual operating budget does not lapse at the
25 end of the fiscal year but shall be treated as income from the fund under
26 AS 37.13.145(a) [AS 37.13.140].
27 * Sec. 6. AS 37.13.300(c) is amended to read:
28 (c) Income or other money [NET INCOME] from the mental health trust
29 fund may not be included in the computation of [NET] income available for
30 distribution under AS 37.13.140.
31 * Sec. 7. AS 37.14.031(c) is amended to read:
01 (c) The net income of the fund shall be determined by the Alaska Permanent
02 Fund Corporation annually as of the last day of the fiscal year in accordance with
03 generally accepted accounting principles, excluding any unrealized gains or losses
04 [IN THE SAME MANNER THE CORPORATION DETERMINES THE NET
05 INCOME OF THE ALASKA PERMANENT FUND UNDER AS 37.13.140].
06 * Sec. 8. AS 37.17.020(b) is amended to read:
07 (b) The endowment shall be held and invested by the Alaska Permanent Fund
08 Corporation subject to AS 37.13.120; however, net income from the endowment shall
09 be distributed under AS 37.17.010 - 37.17.110 and 37.17.225. Income or other
10 money [NET INCOME] from the endowment may not be included in the computation
11 of [NET] income available for distribution under AS 37.13.140.
12 * Sec. 9. AS 37.17.440(b) is amended to read:
13 (b) The principal and income of the endowment shall be held and invested by
14 the Alaska Permanent Fund Corporation subject to AS 37.13.120; however, net
15 income from the endowment and subsequent income earned on net income from the
16 endowment shall be held in a separate account until appropriated by the legislature.
17 Income or other money [NET INCOME] from the endowment may not be included
18 in the computation of [NET] income available for distribution under AS 37.13.140.
19 * Sec. 10. AS 37.13.145(c) is repealed.
20 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to
21 read:
22 TRANSITION. Notwithstanding AS 37.13.140, as amended in sec. 1 of this Act,
23 income available for distribution following the end of fiscal year
24 (1) 2001 is equal to 5.3 percent of the year-end market value of the fund, but
25 may not exceed the balance in the earnings reserve account;
26 (2) 2002 is equal to 5.3 percent of the average of the year-end market value of
27 the fund for the last two fiscal years, including the fiscal year just ended, but may not exceed
28 the balance in the earnings reserve account.
29 * Sec. 12. This Act takes effect June 30, 2001.
