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SENATE BILL NO. 3003
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-SECOND LEGISLATURE - THIRD SPECIAL SESSION
BY SENATORS BEGICH, Gray-Jackson
Introduced: 9/1/21
Referred: Finance
A BILL
FOR AN ACT ENTITLED
1 "An Act relating to the Alaska permanent fund; relating to the sustainable dividend and
2 power cost equalization accounts in the Alaska permanent fund; relating to the power
3 cost equalization endowment fund; relating to the dividend fund; relating to dividends
4 for state residents; relating to the use of certain state income; and providing for an
5 effective date."
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
7 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section
8 to read:
9 LEGISLATIVE INTENT. It is the intent of the legislature to set the amount of each
10 permanent fund dividend to be distributed in 2021 and 2022 at $1,000 for each eligible
11 individual.
12 * Sec. 2. AS 37.13.140(b) is amended to read:
13 (b) The corporation shall determine the amount available for appropriation
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1 each year from the permanent fund. The amount available for appropriation from
2 the permanent fund is 4.5 [FIVE] percent of the average market value of the
3 permanent fund for the [FIRST FIVE OF THE] preceding five [SIX] fiscal years,
4 excluding [INCLUDING] the fiscal year just ended, computed annually for each
5 fiscal year in accordance with generally accepted accounting principles. In this
6 subsection, "average market value of the permanent fund" includes the balance of the
7 sustainable dividend and power cost equalization accounts [EARNINGS
8 RESERVE ACCOUNT ESTABLISHED UNDER AS 37.13.145,] but does not
9 include that portion of the principal attributed to the settlement of State v. Amerada
10 Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District).
11 * Sec. 3. AS 37.13.140 is amended by adding new subsections to read:
12 (c) The corporation shall determine the amount available for appropriation
13 from the sustainable dividend account each year. The amount available for
14 appropriation is five percent of the average market value of the sustainable dividend
15 account for the first five of the preceding six fiscal years, excluding the fiscal year just
16 ended, computed annually for each fiscal year in accordance with generally accepted
17 accounting principles.
18 (d) The corporation shall determine the amount available for appropriation
19 from the power cost equalization account each year. The amount available for
20 appropriation is five percent of the average market value of the power cost
21 equalization account for the first five of the preceding six fiscal years, excluding the
22 fiscal year just ended, computed annually for each fiscal year in accordance with
23 generally accepted accounting principles.
24 * Sec. 4. AS 37.13.145(b) is amended to read:
25 (b) Each [AT THE END OF EACH] fiscal year, the legislature may
26 appropriate the amount available for appropriation, as determined under
27 AS 37.13.140(b), [CORPORATION SHALL TRANSFER] from the earnings reserve
28 account as follows:
29 (1) 25 percent to the dividend fund established under AS 43.23.045;
30 and
31 (2) 75 percent to the general fund [, 50 PERCENT OF THE
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1 INCOME AVAILABLE FOR DISTRIBUTION UNDER AS 37.13.140].
2 * Sec. 5. AS 37.13.145(d) is amended to read:
3 (d) Money [NOTWITHSTANDING (b) OF THIS SECTION, INCOME
4 EARNED ON MONEY] awarded in or received as a result of State v. Amerada Hess,
5 et al., 1JU-77-847 Civ. (Superior Court, First Judicial District), including settlement,
6 summary judgment, or adjustment to a royalty-in-kind contract that is tied to the
7 outcome of this case, and [OR] interest or income earned on the money, [OR ON
8 THE EARNINGS OF THE MONEY] shall be treated in the same manner as other
9 income of the Alaska permanent fund, except that it is not available for
10 [DISTRIBUTION TO THE DIVIDEND FUND, FOR TRANSFERS TO THE
11 PRINCIPAL UNDER (c) OF THIS SECTION, OR FOR AN] appropriation under (g)
12 [(e)] of this section, and shall be annually deposited into the Alaska capital income
13 fund (AS 37.05.565).
14 * Sec. 6. AS 37.13.145 is amended by adding a new subsection to read:
15 (g) Each year, the legislature may appropriate up to 4.5 percent of the average
16 market value of the permanent fund, as determined under AS 37.13.140(b), to the
17 general fund. Money appropriated under this subsection may not be drawn from the
18 sustainable dividend or power cost equalization accounts in the permanent fund.
19 * Sec. 7. AS 37.13 is amended by adding new sections to read:
20 Sec. 37.13.147. Disposition of the sustainable dividend account. Each fiscal
21 year, the legislature shall appropriate the amount available for appropriation from the
22 sustainable dividend account as determined under AS 37.13.140(c) for the payment of
23 dividends to residents of the state. The legislature may appropriate this amount to the
24 dividend fund established under AS 43.23.045. Money appropriated under this section
25 may be drawn only from the sustainable dividend account in the permanent fund.
26 Sec. 37.13.148. Disposition of the power cost equalization account. Each
27 fiscal year, the legislature shall appropriate the amount available for appropriation
28 from the power cost equalization account as determined under AS 37.13.140(d) for the
29 payment of energy subsidies to rural communities in the state. Money appropriated
30 under this section may be drawn only from the power cost equalization account in the
31 permanent fund. The legislature may appropriate this amount to the power cost
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1 equalization and rural electric capitalization fund established under AS 42.45.100.
2 * Sec. 8. AS 37.13.300(c) is amended to read:
3 (c) Net income from the mental health trust fund may not be included in the
4 computation of the [NET INCOME OR] market value available for [DISTRIBUTION
5 OR] appropriation under AS 37.13.140.
6 * Sec. 9. AS 37.14.031(c) is amended to read:
7 (c) The net income of the fund shall be determined by the Alaska Permanent
8 Fund Corporation annually as of the last day of the fiscal year in accordance with
9 generally accepted accounting principles, excluding any unrealized gains or losses
10 [IN THE SAME MANNER THE CORPORATION DETERMINES THE NET
11 INCOME OF THE ALASKA PERMANENT FUND UNDER AS 37.13.140].
12 * Sec. 10. AS 42.45.085(a) is amended to read:
13 (a) The [FIVE PERCENT OF THE] amount appropriated from the power
14 cost equalization account of the Alaska permanent fund [DETERMINED BY THE
15 COMMISSIONER OF REVENUE ON JULY 1 OF] each year under AS 37.13.148
16 [AS 42.45.080(c)(1)] may be appropriated for the following purposes:
17 (1) funding the power cost equalization and rural electric capitalization
18 fund (AS 42.45.100);
19 (2) reimbursement to the Department of Revenue for the costs of
20 establishing and managing the power cost equalization account [FUND]; and
21 (3) reimbursement of other costs of administration of the power cost
22 equalization account [FUND].
23 * Sec. 11. AS 42.45.085(c) is amended to read:
24 (c) If the amount appropriated under (a) of this section is insufficient to
25 achieve the purposes of (a)(1) - (3) of this section, the amount may [SHALL] be
26 prorated among the purposes listed in (a)(1) and (2) of this section.
27 * Sec. 12. AS 42.45.085(d) is amended to read:
28 (d) If the amount appropriated from the power cost equalization account
29 of the Alaska permanent fund under AS 37.13.148 exceeds [EARNINGS OF THE
30 FUND FOR THE PREVIOUS CLOSED FISCAL YEAR, AS CALCULATED
31 UNDER AS 42.45.080(c)(2), EXCEED] the amount of the appropriations
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1 [APPROPRIATION] under (a) of this section for the current fiscal year, the legislature
2 may appropriate the amount remaining [70 PERCENT OF THE DIFFERENCE
3 BETWEEN THE EARNINGS OF THE FUND FOR THE PREVIOUS CLOSED
4 FISCAL YEAR, AS CALCULATED UNDER AS 42.45.080(c)(2), AND THE
5 APPROPRIATION MADE UNDER (a) OF THIS SECTION FOR THE CURRENT
6 FISCAL YEAR] as follows:
7 (1) if the amount remaining [CALCULATED UNDER THIS
8 SUBSECTION] is less than $30,000,000, that amount to a community revenue sharing
9 or community assistance fund; or
10 (2) if the amount remaining [CALCULATED UNDER THIS
11 SUBSECTION] is $30,000,000 or more,
12 (A) $30,000,000 to a community revenue sharing or
13 community assistance fund; and
14 (B) the remaining amount, not to exceed $25,000,000, to the
15 renewable energy grant fund established under AS 42.45.045, to the bulk fuel
16 revolving loan fund established under AS 42.45.250, or for rural power system
17 upgrades or to a combination of the funds or purposes listed in this
18 subparagraph.
19 * Sec. 13. AS 42.45.100(b) is amended to read:
20 (b) The fund shall be administered by the authority as a fund distinct from the
21 other funds of the authority. The fund is composed of
22 (1) money appropriated to provide power cost equalization to eligible
23 electric utilities and to provide grants for utility improvements;
24 (2) money appropriated from the National Petroleum Reserve - Alaska
25 special revenue fund under AS 37.05.530(g);
26 (3) money appropriated from the power cost equalization account of
27 the Alaska permanent fund [ENDOWMENT FUND (AS 42.45.070)] under
28 AS 37.13.148 [AS 42.45.085(a)];
29 (4) gifts, bequests, contributions from other sources, and federal
30 money; and
31 (5) interest earned on the fund balance.
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1 * Sec. 14. AS 42.45.100(c) is amended to read:
2 (c) The fund is not a dedicated fund, except that amounts deposited into the
3 fund from the Alaska permanent fund must be used for the payment of energy
4 subsidies and capital improvements to energy infrastructure to rural
5 communities in the state and for community assistance payments and renewable
6 energy projects in the state, in conformance with art. IX, sec. 15(d), Constitution
7 of the State of Alaska.
8 * Sec. 15. AS 42.45.170(a) is amended to read:
9 (a) An electric utility that is not subject to rate regulation by the Regulatory
10 Commission of Alaska under AS 42.05 may receive power cost equalization if the
11 utility is otherwise eligible for equalization assistance under AS 42.45.100 - 42.45.150
12 and if the utility
13 (1) files with the commission financial data necessary to determine the
14 power cost equalization per kilowatt-hour as prescribed by the commission and that is
15 in compliance with AS 42.45.100 - 42.45.150;
16 (2) reports monthly to the authority, within the time and in the form
17 required, the information required in (b) of this section;
18 (3) sets rates
19 (A) that consider the power cost equalization provided under
20 AS 42.45.100 - 42.45.150 by subtracting from its revenue requirements for
21 electric services the power cost equalization per kilowatt-hour that it is eligible
22 to receive; and
23 (B) under which the power cost equalization provided in
24 AS 42.45.100 and 42.45.110 [AS 42.45.070 - 42.45.110] is applied as a credit
25 only against the cost of kilowatt-hours eligible for equalization assistance
26 under AS 42.45.100 - 42.45.150 that are consumed by each customer in any
27 month;
28 (4) allows audits that the commission determines are necessary to
29 ensure compliance with this section; and
30 (5) furnishes its electric service customers eligible under this program
31 a notice as specified in AS 42.45.120.
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1 * Sec. 16. AS 43.23.025(a) is amended to read:
2 (a) By October 1 of each year, the commissioner shall determine the value of
3 each permanent fund dividend for that year, as modified under (c) of this section as
4 necessary, by
5 (1) determining the total amount available for dividend payments,
6 which equals
7 (A) the amount appropriated [OF INCOME OF THE
8 ALASKA PERMANENT FUND TRANSFERRED] to the dividend fund
9 established under AS 43.23.045 [AS 37.13.145(b)] during the current year;
10 (B) plus the unexpended and unobligated balances of prior
11 fiscal year appropriations that lapse into the dividend fund under
12 AS 43.23.045(d);
13 (C) less the amount necessary to pay prior year dividends from
14 the dividend fund in the current year under AS 43.23.005(h), 43.23.021, and
15 43.23.055(3) and (7);
16 (D) less the amount necessary to pay dividends from the
17 dividend fund due to eligible applicants who, as determined by the department,
18 filed for a previous year's dividend by the filing deadline but who were not
19 included in a previous year's dividend computation;
20 (E) less appropriations from the dividend fund during the
21 current year, including amounts to pay costs of administering the dividend
22 program and the hold harmless provisions of AS 43.23.240;
23 (2) determining the number of individuals eligible to receive a
24 dividend payment for the current year and the number of estates and successors
25 eligible to receive a dividend payment for the current year under AS 43.23.005(h); and
26 (3) dividing the amount determined under (1) of this subsection by the
27 amount determined under (2) of this subsection.
28 * Sec. 17. AS 43.23.025 is amended by adding a new subsection to read:
29 (c) If the commissioner determines that the amount of the dividend under (a)
30 of this section is less than $1,200 for each individual, the legislature shall appropriate
31 the additional amount necessary to provide at least a $1,200 dividend for each
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1 individual. If an appropriation is made under this subsection, the commissioner shall
2 recalculate the value of each permanent fund dividend under (a) of this section by
3 including the amount of the additional appropriation in (a)(1)(A) of this section.
4 * Sec. 18. AS 43.23.028(a) is amended to read:
5 (a) By October 1 of each year, the commissioner shall give public notice of
6 the value of each permanent fund dividend for that year and notice of the information
7 required to be disclosed under (3) of this subsection. In addition, the stub attached to<