HB 11

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                              CS FOR HOUSE BILL NO. 11(STA)
                     IN THE LEGISLATURE OF THE STATE OF ALASKA
                     THIRTY-FOURTH LEGISLATURE - FIRST SESSION
 BY THE HOUSE STATE AFFAIRS COMMITTEE
 Offered: 5/16/25
 Referred: Finance
 Sponsor(s): REPRESENTATIVES PRAX, Saddler, Johnson, Tomaszewski, Schwanke, Vance, Coulombe,
 Elam, Ruffridge, Gray, Eischeid
                                                A BILL
                                    FOR AN ACT ENTITLED
1 "An Act relating to contributions and donations from permanent fund dividends; and
2 relating to disclosures included with an individual permanent fund dividend."
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
4  * Section 1. AS 43.23.028(a) is amended to read:
5(a) By October 1 of each year, the commissioner shall give public notice of
6the value of each permanent fund dividend for that year and notice of the information
7required to be disclosed under (3) of this subsection. In addition, the stub attached to
8each individual dividend disbursement advice must
9(1) disclose the amount of each dividend attributable to income earned
10by the permanent fund from deposits to that fund required under art. IX, sec. 15,
11Constitution of the State of Alaska;
12(2) disclose the amount of each dividend attributable to income earned
13by the permanent fund from appropriations to that fund and from amounts added to
14that fund to offset the effects of inflation;
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1(3) disclose the amount by which each dividend has been reduced due
2to each appropriation from the dividend fund, including amounts to pay the costs of
3administering the dividend program and the hold harmless provisions of
4AS 43.23.240;
5(4) include a statement that an individual is not eligible for a dividend
6when
7(A) during the qualifying year, the individual was convicted of
8a felony;
9(B) during all or part of the qualifying year, the individual was
10incarcerated as a result of the conviction of a
11(i) felony; or
12(ii) misdemeanor if the individual has been convicted of
13a prior felony or two or more prior misdemeanors;
14(5)     include a statement that the legislative purpose for making
15individuals listed under (4) of this subsection ineligible is to
16(A)   provide funds for services for and payments to crime
17victims and operating costs of the Violent Crimes Compensation Board;
18(B) provide funds to pay restitution owed to crime victims;
19(C)   provide funds for grants to nonprofit organizations for
20services for crime victims and for mental health services and substance abuse
21treatment for offenders;
22(D) provide funds for the office of victims' rights;
23(E) provide funds to the Council on Domestic Violence and
24Sexual Assault for grants for the operation of domestic violence and sexual
25assault programs; and
26(F) obtain reimbursement for some of the costs imposed on the
27Department of Corrections related to incarceration or probation of those
28individuals;
29(6) disclose the total amount that would have been paid during the
30previous fiscal year to individuals who were ineligible to receive dividends under
31AS 43.23.005(d) if they had been eligible;
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1(7) disclose the total amount transferred or appropriated for the current
2fiscal year under AS 43.23.048 for each of the accounts, funds, and agencies listed in
3AS 43.23.048;
4(8) include a statement that the total amount of the dividend may
5be subject to federal individual income tax, regardless of donations or
6contributions made under AS 43.23.130, 43.23.135, or 43.23.230.
7  * Sec. 2. AS 43.23.055 is amended to read:
8Sec. 43.23.055. Duties of the department. The department shall
9(1) annually pay permanent fund dividends from the dividend fund;
10(2) subject to AS 43.23.011 and (8) of this section, adopt regulations
11under AS 44.62 (Administrative Procedure Act) that establish procedures and time
12limits for claiming a permanent fund dividend; the department shall determine the
13number of eligible applicants by October 1 of the year for which the dividend is
14declared and pay the dividends by December 31 of that year;
15(3) adopt regulations under AS 44.62 (Administrative Procedure Act)
16that establish procedures and time limits for an individual upon emancipation or upon
17reaching majority to apply for permanent fund dividends not received during minority
18because the parent, guardian, or other authorized representative did not apply on
19behalf of the individual;
20(4) assist residents of the state, particularly in rural areas, who, because
21of language, disability, or inaccessibility to public transportation, need assistance to
22establish eligibility and to apply for permanent fund dividends;
23(5)    use a list of individuals ineligible for a dividend under
24AS 43.23.005(d) provided annually by the Department of Corrections and the
25Department of Public Safety to determine the number and identity of those
26individuals;
27(6) adopt regulations that are necessary to implement AS 43.23.005(d)
28and 43.23.048;
29(7) adopt regulations that establish procedures for the parent, guardian,
30or other authorized representative of a disabled individual to apply for prior year
31permanent fund dividends not received by the disabled individual because no
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1application was submitted on behalf of the individual;
2(8) adopt regulations that establish procedures for an individual to
3apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not
4collected within two years after the date of its issuance; however, the department may
5not establish a time limit within which an application to have a disbursement reissued
6must be filed;
7(9) provide any information, upon request, contained in permanent
8fund dividend records to the child support services agency created in AS 25.27.010, or
9the child support enforcement agency of another state, for child support purposes
10authorized under law; if the information is contained in an electronic data base, the
11department shall provide the requesting agency with either
12(A) access to the data base; or
13(B) a copy of the information in the data base and a statement
14certifying its contents;
15(10) establish a fraud investigation unit for the purpose of assisting the
16(A) Department of Law in the prosecution of individuals who
17apply for or obtain a permanent fund dividend in violation of a provision in
18AS 11, by detecting and investigating those crimes; and
19(B) commissioner to detect and investigate the claiming or
20paying of permanent fund dividends that should not have been claimed by or
21paid to an individual and to impose the penalties and enforcement provisions
22under AS 43.23.270;
23(11) adopt regulations under AS 44.62 (Administrative Procedure Act)
24so that, [CONTRIBUTIONS UNDER AS 43.23.130 ARE GIVEN A PRIORITY
25OVER DONATIONS UNDER AS 43.23.230] if the total amount of contributions and
26donations elected by an applicant exceeds the amount of the permanent fund dividend
27that the applicant is entitled to receive, contributions and donations are given the
28following priority order:
29(A) contributions under AS 43.23.130;
30(B) donations under AS 43.23.230;
31(C) contributions under AS 43.23.135.
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1  * Sec. 3. AS 43.23 is amended by adding a new section to read:
2Sec. 43.23.135. Contributions to the general and permanent funds. (a)
3Notwithstanding AS 43.23.200, the electronic Alaska permanent fund dividend
4application must allow an applicant to direct that money be subtracted from the
5dividend payment and contributed to the state general fund or the principal of the
6permanent fund. A contribution to the state general fund or the principal of the
7permanent fund may be $25 dollars or more, in increments of $25 dollars, up to the
8total amount of the permanent fund dividend that the applicant is entitled to receive. If
9the applicant's total amount of contributions under this subsection, when added to the
10total amount of contributions under AS 43.23.130 and donations under AS 43.23.230,
11exceeds the amount of the permanent fund dividend that the applicant is entitled to
12receive, contributions under AS 43.23.130 and donations under AS 43.23.230 shall
13have priority over contributions under this subsection. Money from a contribution
14under this subsection or from the dividend fund may not be used for administrative
15costs incurred in implementing this subsection.
16(b) A public agency that claims a permanent fund dividend on behalf of an
17individual under AS 43.23.015(e) may not elect to make contributions from the
18dividend under this section.
19(c) In preparing the electronic Alaska permanent fund dividend application,
20the department shall ensure that the option to make a contribution under this section is
21in a separate section of the application than the option to make a contribution under
22AS 43.23.130.
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