HB 245 Summary

• Expands mineral revenues deposited to the Alaska Permanent Fund by removing date restrictions, allowing 25 percent of all mineral lease bonuses, rentals, royalties, and related payments to be deposited regardless of lease issuance date.

• Allows 100 percent of oil and gas production taxes to be appropriated to the Alaska Permanent Fund, subject to maintaining a target balance in the earnings reserve account.

• Changes the timing of dividend fund transfers from end of fiscal year to beginning of fiscal year and modifies the transfer amount to equal 50 percent of mineral revenues from the prior fiscal year rather than income available for distribution.

• Establishes a "sustainable draw" mechanism capped at $3.3 billion annually (adjustable for inflation beginning fiscal year 2020) to be transferred from the earnings reserve account to the general fund, with periodic sufficiency reviews every four years.

• Sets the 2016 permanent fund dividend at $1,000 per eligible individual and establishes an effective date of July 1, 2016.