SB 78 — An Act creating the education endowment fund and the dividend raffle fund; authorizing donations from the permanent fund dividend for educational purposes and to enter the permanent fund dividend raffle; relating to transfers from the dividend raffle fund and the education endowment fund; relating to the duties of the Department of Revenue; relating to the definition of 'gambling'; and providing for an effective date.
Last action — FN7: (H.FIN/REV)(CORRECTED)
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✓Introduced
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✓In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 30th Legislature (2017-2018). It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
8 added · 8 removedPlain-language change summary
The latest version of SB 78 adds a section that clarifies the legislature's intention for the funds raised through the permanent fund dividend raffle to supplement, rather than replace, state funding for schools. Additionally, changes were made to the definitions and operations of the education endowment fund and dividend raffle fund, including how donations will be distributed to ensure funds benefit educational purposes. These alterations matter because they establish clearer guidelines on how financial contributions can directly enhance school funding while maintaining transparency and accountability in fund management.
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and providing for an effective date." HOUSE CS FOR CS FOR SENATE BILL NO.
ASThe 11.66.280(3)uncodified law of the State of Alaska is amended by adding a new section 08 to read:
08 (3) "gambling" means that a person stakes or risks something of value 09 uponLEGISLATIVE theINTENT. outcome of a contest of chance or a future contingent event not under the 10 person's control or influence, upon an agreement or understanding that that person or 11 someone else will receive something of value in the event of a certain outcome;
12It "gambling"is doesthe notintent includeof 13the (A)legislature bonathat fide business transactions valid under the lawfunds ofgenerated contractsby for10 the purchasepermanent orfund saledividend atraffle acreated futurein datethis ofAct securitiesbe orused commoditiesto 02supplement and agreementsnot to compensate11 forsupplant lossstate causedaid provided by the happeningpublic ofschool chance,funding 03formula includingunder contractsAS of14.17.410. indemnity or guaranty and life, health, or accident 04 insurance;
0512 (B)* playingSec. an amusement device that 06 (i) confers only an immediate right of replay not 07 exchangeable for something of value other than the privilege of 08 immediate replay and does not contain a method or device by which the 09 privilege of immediate replay may be cancelled or revoked;
10 (ii) confers only tickets, credits, allowances, tokens, or 11 anything of value that can be redeemed for toys, candy, or electronic 12 novelties offered at the same facility where the amusement device is 13 located;
or 14 (iii) allows a player to manipulate a claw machine or 15 similar device within an enclosure and enables a person to receive 16 merchandise directly from the machine;
[OR] 17 (C) an activity authorized by the Department of Revenue under 18 AS 05.15;
or 19 (D) the permanent fund dividend raffle authorized under 20 AS 43.23.064;
21 * Sec.
AS 11.66.280(3) is amended to read:
13 (3) "gambling" means that a person stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under the 02 person's control or influence, upon an agreement or understanding that that person or 03 someone else will receive something of value in the event of a certain outcome;
04 "gambling" does not include 05 (A) bona fide business transactions valid under the law of 06 contracts for the purchase or sale at a future date of securities or commodities 07 and agreements to compensate for loss caused by the happening of chance, 08 including contracts of indemnity or guaranty and life, health, or accident 09 insurance;
10 (B) playing an amusement device that 11 (i) confers only an immediate right of replay not 12 exchangeable for something of value other than the privilege of 13 immediate replay and does not contain a method or device by which the 14 privilege of immediate replay may be cancelled or revoked;
15 (ii) confers only tickets, credits, allowances, tokens, or 16 anything of value that can be redeemed for toys, candy, or electronic 17 novelties offered at the same facility where the amusement device is 18 located;
or 19 (iii) allows a player to manipulate a claw machine or 20 similar device within an enclosure and enables a person to receive 21 merchandise directly from the machine;
[OR] 22 (C) an activity authorized by the Department of Revenue under 23 AS 05.15;
or 24 (D) the permanent fund dividend raffle authorized under 25 AS 43.23.064;
26 * Sec.
3.
2227 Sec.
The department shall 2328 (1) annually pay permanent fund dividends from the dividend fund;
2429 (2) subject to AS 43.23.011 and [PARAGRAPH] (8) of this section, 2530 adopt regulations under AS 44.62 (Administrative Procedure Act) that establish 2631 procedures and time limits for claiming a permanent fund dividend;
the department 27 shall determine the number of eligible applicants by October 1 of the year for which 2802 the dividend is declared and pay the dividends by December 31 of that year;
2903 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 3004 that establish procedures and time limits for an individual upon emancipation or upon 3105 reaching majority to apply for permanent fund dividends not received during minority 06 because the parent, guardian, or other authorized representative did not apply on 0207 behalf of the individual;
0308 (4) assist residents of the state, particularly in rural areas, who, because 0409 of language, disability, or inaccessibility to public transportation, need assistance to 0510 establish eligibility and to apply for permanent fund dividends;
0611 (5) use a list of individuals ineligible for a dividend under 0712 AS 43.23.005(d) provided annually by the Department of Corrections and the 0813 Department of Public Safety to determine the number and identity of those 0914 individuals;
1015 (6) adopt regulations that are necessary to implement AS 43.23.005(d);
1116 (7) adopt regulations that establish procedures for the parent, guardian, 1217 or other authorized representative of a disabled individual to apply for prior year 1318 permanent fund dividends not received by the disabled individual because no 1419 application was submitted on behalf of the individual;
1520 (8) adopt regulations that establish procedures for an individual to 1621 apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 1722 collected within two years after the date of its issuance;
however, the department may 1823 not establish a time limit within which an application to have a disbursement reissued 1924 must be filed;
2025 (9) provide any information, upon request, contained in permanent 2126 fund dividend records to the child support services agency created in AS 25.27.010, or 2227 the child support enforcement agency of another state, for child support purposes 2328 authorized under law;
if the information is contained in an electronic data base, the 2429 department shall provide the requesting agency with either 2530 (A) access to the data base;
or 2631 (B) a copy of the information in the data base and a statement 27 certifying its contents;
2802 (10) establish a fraud investigation unit for the purpose of assisting the 2903 (A) Department of Law in the prosecution of individuals who 3004 apply for or obtain a permanent fund dividend in violation of a provision in 3105 AS 11, by detecting and investigating those crimes;
[AND] 06 (B) commissioner to detect and investigate the claiming or 0207 paying of permanent fund dividends that should not have been claimed by or 0308 paid to an individual and to impose the penalties and enforcement provisions 0409 under AS 43.23.035;
and 0510 (11) adopt regulations under AS 44.62 (Administrative Procedure 0611 Act) so that contributions under AS 43.23.062 are given a priority over donations 0712 under AS 43.23.064 if the total amount of contributions and donations elected by 0813 an applicant exceeds the amount of the permanent fund dividend that the 0914 applicant is entitled to receive.
1015 * Sec.
3.4.
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1116 Sec.
(a) The education endowment 1217 fund is established as a separate account in the general fund.
The fund consists of 1318 appropriations from 1419 (1) donations to the fund under AS 43.23.064(b);
1520 (2) transfers to the fund under AS 43.23.064(c);
1621 (3) interest earned on the fund;
and 1722 (4) any other money appropriated to the fund.
1823 (b) The commissioner is the fiduciary of the fund.
In managing the fund, the 1924 commissioner shall 2025 (1) have the same powers and duties as provided in AS 37.10.071;
and 2126 (2) invest the fund in a manner likely to achieve at least a four percent 2227 nominal return over a five-year period to meet the objectives of the fund.
2328 (c) In managing the fund, the commissioner shall 2429 (1) consider the status of the fund's capital and the income generated 2530 on both current and probable future bases;
2631 (2) determine the appropriate investment objectives;
27 (3) establish investment policies to achieve the objectives;
and 2802 (4) act only in regard to the best financial interests of the fund.
2903 (d) On July 1 of each year, the commissioner shall 3004 (1) determine the fund balance for the previously closed fiscal year, 3105 including the earnings of the fund;
and 06 (2) when the average market value for that fiscal year exceeds 0207 $1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 0308 balance of the fund for the last five fiscal years, including the fiscal year just ended, 0409 and including any unrealized gains and losses, to the publicDepartment educationof fundEducation establishedand 0510 inEarly Development for distribution as supplemental grants to school districts 11 according to the average daily membership for each district adjusted under 12 AS 14.17.300,14.17.410(b)(1)(A) - (D), subject to appropriation.
0613 (e) Money appropriated to the fund does not lapse.
0714 Sec.
dividend donations to the dividend 0815 raffle fund;
(a) The dividend raffle fund is established as an account in the 0916 general fund.
Interest and other income 1017 received on money in the fund shall be separately accounted for and shall be 1118 appropriated to the fund.
The fund consists of donations appropriated to the fund 1219 under (c) of this section.
The commissioner shall use the dividend raffle fund, without 1320 further appropriation, to pay for prizes as set out in (d) of this section and may use up 1421 to two percent of the balance of the fund but not more than $500,000 from the fund 1522 each fiscal year to pay the cost of administering the fund and for promotion and 1623 advertisement of the fund.
When the balance of the dividend raffle fund exceeds 1724 $500,000,000$300,000,000 at the end of a fiscal year, the commissioner shall transfer the amount 1825 above $500,000,000$300,000,000 to the education endowment fund established in AS 43.23.063.
1926 Money donated to the fund does not lapse.
2027 (b) Notwithstanding AS 43.23.069, the department shall provide on the Alaska 2128 permanent fund dividend application an option for an applicant who is 18 years of age 2229 or older to direct that all or a portion of the applicant's dividend payment be donated 2330 for educational purposes and to enter the permanent fund dividend raffle as provided 2431 in (c) of this section.
A donation under this section may be $100 or more, in 25 increments of $100, up to the total amount of the permanent fund dividend that the 2602 applicant is entitled to receive.
2703 (c) Of the donations received in a year under (b) of this section, the legislature 2804 shall appropriate 25 percent to the education endowment fund established in 2905 AS 43.23.063 and shall appropriate 25 percent to the dividend raffle fund.
The 3006 legislature shall appropriate the remaining 50 percent of the donations received under 3107 (b) of this section to the publicDepartment educationof fundEducation establishedand inEarly Development for 08 distribution as supplemental grants to school districts according to the average daily 09 membership for each district adjusted under AS 14.17.300.14.17.410(b)(1)(A) - (D).
10 (d) At the beginning of each year, the commissioner shall conduct a public 0211 drawing to award prizes from the dividend raffle fund.
Each $100 donation as 0312 provided in (b) of this section entitles a person to one entry into the raffle.
The prizes 0413 for the raffle shall be as follows:
0514 (1) the first name drawn receives an amount equal to 10eight percent of the15 06the balance of the dividend raffle fund;
0716 (2) the second name drawn receives an amount equal to fivefour percent of 0817 the balance of the dividend raffle fund;
0918 (3) the third name drawn receives an amount equal to threetwo percent of 1019 the balance of the dividend raffle fund;
and 1120 (4) the fourth name drawn receives an amount equal to twoone percent of 1221 the balance of the dividend raffle fund.
1322 (e) Nothing in this section creates a dedicated fund.
1423 * Sec.
4.5.
This Act takes effect January 1, 2018.2019.
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Action History
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FN7: (H.FIN/REV)(CORRECTED)
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CROSS SPONSOR(S): WILSON
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Referred to Rules
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Fiscal Note 9: (Revenue)
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FN8: (H.FIN/REV)
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FN7: (H.FIN/REV)
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FN6: INDETERMINATE(H.FIN/EED)
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Fiscal Note 5: No fiscal impact (Law)
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FIN No Recommendation: GARA, ORTIZ, TILTON
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FIN Do Not Pass: KAWASAKI, PRUITT, GUTTENBERG, GRENN
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FIN Do Pass: WILSON, THOMPSON, SEATON, FOSTER
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FIN RPT HCS(FIN) 4DP 4DNP 3NR
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Referred to Finance
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Read the first time - REFERRALS
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VERSION: CSSB 78(FIN)
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TRANSMITTED TO (H)
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EFFECTIVE DATE(S) SAME AS PASSAGE
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PASSED Y19 N1
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Read the third time CSSB 78(FIN)
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ADVANCED TO THIRD READING UC
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FIN CS ADOPTED UC
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Read the second time
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RULES TO CALENDAR 4/14/2017
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FN4: (S.FIN/REV)
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Fiscal Note 3: (Revenue)
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Fiscal Note 1: No fiscal impact (Law)
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FIN Amend: VON IMHOF
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FIN No Recommendation: OLSON
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FIN Do Pass: HOFFMAN, MACKINNON, BISHOP, HUGHES, MICCICHE
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FIN RPT CS 5DP 1NR 1AM
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Fiscal Note 3: (Revenue)
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Fiscal Note 2: (Revenue)
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Fiscal Note 1: No fiscal impact (Law)
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EDC No Recommendation: BEGICH, GIESSEL, COGHILL
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EDC Do Pass: HUGHES
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EDC RPT CS 1DP 3NR SAME TITLE
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Cosponsors added: MEYER, DUNLEAVY, VON IMHOF, STEVENS, HUGHES, MICCICHE
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Referred to Education and Finance
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Read the first time - REFERRALS
Sponsors
- BISHOP · Primary
- Dunleavy · Cosponsor
- Lyman Hoffman · Cosponsor
- Meyer · Cosponsor
- Micciche · Cosponsor
- Bert Stedman · Cosponsor
- Gary Stevens · Cosponsor
- Shelley Hughes · Cosponsor
- von Imhof · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 8 co-sponsors · 56 not signed on
Sponsors (1)
- BISHOP
Co-sponsors (8)
- Dunleavy
- Lyman Hoffman D
- Meyer
- Micciche
- Bert Stedman R
- Gary Stevens R
- Shelley Hughes R
- von Imhof
Not signed on (56)
56 members have not signed on to this bill.
Show all 56 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 12 | 1 | 0 | 0 |
| R | 4 | 0 | 0 | 0 |
| D | 3 | 0 | 0 | 0 |
| Total | 19 | 1 | 0 | 0 |
| % of votes cast | 95% | 5% | 0% | 0% |
How each member voted (20)
| Member | Party | Vote |
|---|---|---|
| Begich | — | Yea |
| Bishop | — | Yea |
| Coghill | — | Yea |
| Dunleavy | — | Yea |
| Egan | — | Yea |
| Gardner | — | Yea |
| Hughes | — | Yea |
| Kelly | — | Yea |
| MacKinnon | — | Yea |
| Meyer | — | Yea |
| Micciche | — | Yea |
| Wilson | — | Nay |
| von Imhof | — | Yea |
| Bill Wielechowski | D | Yea |
| Donald Olson | D | Yea |
| Lyman Hoffman | D | Yea |
| Bert Stedman | R | Yea |
| Cathy Giessel | R | Yea |
| Gary Stevens | R | Yea |
| Mia Costello | R | Yea |
Subjects
Frequently asked questions
- Who sponsors SB 78?
- SB 78 is sponsored by BISHOP, Dunleavy, Lyman Hoffman (D), Meyer, Micciche, Bert Stedman (R), Gary Stevens (R), Shelley Hughes (R), and von Imhof.
- What is the current status of SB 78?
- This bill died with 30th Legislature (2017-2018). It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 78?
- Track SB 78 free on One Click Politics — get push/email alerts when it moves.
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