SB 84 — An Act relating to the earnings of the permanent fund; and providing for an effective date.

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"An Act relating to the Alaskaearnings of the permanent fund;

relatingand toproviding thefor earningsan ofeffective thedate." permanentSPONSOR fund;SUBSTITUTE FOR SENATE BILL NO.

and84 providing01 for"An anAct effectiverelating date."to SENATEthe BILLearnings NO.of the permanent fund;

84and 01providing "Anfor Actan relatingeffective to02 thedate." Alaska03 permanentBE fund;IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

relating to the earnings of the 02 permanent fund;

and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

AS 37.05.550(b)37.13.020 is amended by adding a new subsection to read:

05 (b) TheIt legislatureis maythe appropriateintent toof the fundlegislature moneythat received by the stateearnings asof 06the Alaska marinepermanent highway06 systemfund programbe receiptsappropriated orconsistent fromwith aan settlementequal ordraw finalprinciple. judicial 07 determination of the Dinkum Sands case (United States v.

Alaska)Under andthe equal draw 07 principle, the Northamount appropriated from the earnings of the Alaska permanent fund in 08 Slopea royaltygiven caseyear (Statefor v.purposes other than for payment of dividends may not exceed the 09 amount appropriated from the earnings of the Alaska permanent fund for the payment 10 of dividends.

Amerada Hess, et al.) and not deposited into the Alaska 09 permanent fund under AS 37.13.010(a)(1) [OR (2)] or into the public school trust fund 10 under AS 37.14.150.

AS 37.13.010(a)37.13.140 is amended by adding a new subsection to read:

12 (b) Following the appropriation to the dividend fund under 13 AS 37.13.145(b)(1), the remainder of the amount available for distribution under (a) Underof art.14 this section shall be reduced by the difference between the amount calculated under (1) of this subsection and the amount under (2) of this subsection if the amount 02 calculated under (1) of this subsection exceeds the amount under (2) of this 03 subsection:

IX,04 sec.(1) the total amount of oil and gas production taxes under 05 AS 43.55.011 - 43.55.180, mineral lease rentals, royalties, royalty sale proceeds, net 06 profit shares under AS 38.05.180(f) and (g), and federal mineral revenue sharing 07 payments and bonuses received by the state from mineral leases that are deposited into 08 the general fund in the current fiscal year;

15,09 of(2) the statesum constitution,of there$1,000,000,000. is established as a 13 separate fund the Alaska permanent fund.

The10 Alaska* permanentSec. fund consists of 14 (1) 25 percent of all mineral lease rentals, royalties, royalty sale proceeds, net profit shares under AS 38.05.180(f) and (g), and federal mineral revenue 02 sharing payments received by the state from mineral leases [ISSUED ON OR 03 BEFORE DECEMBER 1, 1979,] and 25 percent of all bonuses received by the state 04 from mineral leases [ISSUED ON OR BEFORE FEBRUARY 15, 1980;

05 (2) 50 PERCENT OF ALL MINERAL LEASE RENTALS, 06 ROYALTIES, ROYALTY SALE PROCEEDS, NET PROFIT SHARES UNDER 07 AS 38.05.180(f) AND (g), AND FEDERAL MINERAL REVENUE SHARING 08 PAYMENTS RECEIVED BY THE STATE FROM MINERAL LEASES ISSUED 09 AFTER DECEMBER 1, 1979, AND 50 PERCENT OF ALL BONUSES RECEIVED 10 BY THE STATE FROM MINERAL LEASES ISSUED AFTER FEBRUARY 15, 11 1980];

and 12 (2) [(3)] any other money appropriated to or otherwise allocated by 13 law or former law to the Alaska permanent fund.

14 * Sec.

AS 37.13.02037.13.145(b) is amended by adding a new subsection to read:

1511 (b) ItAt is the intentend of each fiscal year, the legislaturecorporation thatshall transfer from the 12 earnings ofreserve account to the Alaska13 permanent(1) 16dividend fund beestablished appropriatedunder consistentAS with43.23.045, an50 equalpercent drawof principle.the 14 income available for distribution under AS 37.13.140;

Under15 the(2) equalgeneral drawfund, 17 principle, the amountremainder appropriated from the earnings of the Alaskaincome permanentavailable fund in 18 a given year for purposes16 otherdistribution thanunder forAS payment37.13.140. of dividends may not exceed the 19 amount appropriated from the earnings of the Alaska permanent fund for the payment 20 of dividends.

2117 * Sec.

AS 37.13.14037.13.140(b) isand amended37.13.145(b)(2) byare addingrepealed. a new subsection to read:

2218 (b)* FollowingSec. the appropriation to the dividend fund under 23 AS 37.13.145(b)(1), the remainder of the amount available for distribution under (a) of 24 this section shall be reduced by the difference between the amount calculated under 25 (1) of this subsection and the amount under (2) of this subsection if the amount 26 calculated under (1) of this subsection exceeds the amount under (2) of this 27 subsection:

28 (1) the total amount of oil and gas production taxes under 29 AS 43.55.011 - 43.55.180, mineral lease rentals, royalties, royalty sale proceeds, net 30 profit shares under AS 38.05.180(f) and (g), and federal mineral revenue sharing 31 payments and bonuses received by the state from mineral leases that are deposited into the general fund in the current fiscal year;

02 (2) the sum of $1,000,000,000.

03 * Sec.

ASSection 37.13.145(b)4 isof amendedthis toAct read:takes effect July 1, 2021.

0419 (b)* AtSec. the end of each fiscal year, the corporation shall transfer from the 05 earnings reserve account to the 06 (1) dividend fund established under AS 43.23.045, 50 percent of the 07 income available for distribution under AS 37.13.140;

08 (2) general fund, the remainder of the income available for 09 distribution under AS 37.13.140.

10 * Sec.

AS 37.13.140(b) and 37.13.145(b)(2) are repealed.

11 * Sec.

7.

Section 6 of this Act takes effect July 1, 2021.

12 * Sec.

8.

75 of this Act, this Act takes effect July 1, 2017.