SENIOR CITIZEN GRANTS DIVIDEND RAFFLE

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SENATE BILL NO. 240

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE STATE AFFAIRS COMMITTEE BY REQUEST

Introduced: 2/11/26
Referred: Health & Social Services, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to permanent fund dividend raffles; creating the senior citizen grants 1
endowment fund and the senior citizen grants dividend raffle fund; authorizing 2
donations from permanent fund dividends for grants to organizations that provide 3
support for senior citizens and for entry into the senior citizen grants dividend raffle; 4
relating to transfers from the senior citizen grants endowment fund and the senior 5
citizen grants dividend raffle fund; relating to the duties of the Department of Revenue; 6
and relating to the definition of 'gambling.'" 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8
* Section 1. AS 11.66.280(3) is amended to read: 9
(3) "gambling" means that a person stakes or risks something of value 10
upon the outcome of a contest of chance or a future contingent event not under the 11
person's control or influence, upon an agreement or understanding that that person or 12
someone else will receive something of value in the event of a certain outcome; 13
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"gambling" does not include 1
(A) bona fide business transactions valid under the law of 2
contracts for the purchase or sale at a future date of securities or commodities 3
and agreements to compensate for loss caused by the happening of chance, 4
including contracts of indemnity or guaranty and life, health, or accident 5
insurance; 6
(B) playing an amusement device that 7
(i) confers only an immediate right of replay not 8
exchangeable for something of value other than the privilege of 9
immediate replay and does not contain a method or device by which the 10
privilege of immediate replay may be cancelled or revoked; 11
(ii) confers only tickets, credits, allowances, tokens, or 12
anything of value that can be redeemed for toys, candy, or electronic 13
novelties offered at the same facility where the amusement device is 14
located; or 15
(iii) allows a player to manipulate a claw machine or 16
similar device within an enclosure and enables a person to receive 17
merchandise directly from the machine; 18
(C) an activity authorized by the Department of Revenue under 19
AS 05.15; or 20
(D) a [THE] permanent fund dividend raffle authorized under 21
AS 43.23.230 or 43.23.238; 22
* Sec. 2. AS 43.23.055 is amended to read: 23
Sec. 43.23.055. Duties of the department. The department shall 24
(1) annually pay permanent fund dividends from the dividend fund; 25
(2) subject to AS 43.23.011 and (8) of this section, adopt regulations 26
under AS 44.62 (Administrative Procedure Act) that establish procedures and time 27
limits for claiming a permanent fund dividend; the department shall determine the 28
number of eligible applicants by October 1 of the year for which the dividend is 29
declared and pay the dividends by December 31 of that year; 30
(3) adopt regulations under AS 44.62 (Administrative Procedure Act) 31
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that establish procedures and time limits for an individual upon emancipation or upon 1
reaching majority to apply for permanent fund dividends not received during minority 2
because the parent, guardian, or other authorized representative did not apply on 3
behalf of the individual; 4
(4) assist residents of the state, particularly in rural areas, who, because 5
of language, disability, or inaccessibility to public transportation, need assistance to 6
establish eligibility and to apply for permanent fund dividends; 7
(5) use a list of individuals ineligible for a dividend under 8
AS 43.23.005(d) provided annually by the Department of Corrections and the 9
Department of Public Safety to determine the number and identity of those 10
individuals; 11
(6) adopt regulations that are necessary to implement AS 43.23.005(d) 12
and 43.23.048; 13
(7) adopt regulations that establish procedures for the parent, guardian, 14
or other authorized representative of a disabled individual to apply for prior year 15
permanent fund dividends not received by the disabled individual because no 16
application was submitted on behalf of the individual; 17
(8) adopt regulations that establish procedures for an individual to 18
apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not 19
collected within two years after the date of its issuance; however, the department may 20
not establish a time limit within which an application to have a disbursement reissued 21
must be filed; 22
(9) provide any information, upon request, contained in permanent 23
fund dividend records to the child support services agency created in AS 25.27.010, or 24
the child support enforcement agency of another state, for child support purposes 25
authorized under law; if the information is contained in an electronic data base, the 26
department shall provide the requesting agency with either 27
(A) access to the data base; or 28
(B) a copy of the information in the data base and a statement 29
certifying its contents; 30
(10) establish a fraud investigation unit for the purpose of assisting the 31
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(A) Department of Law in the prosecution of individuals who 1
apply for or obtain a permanent fund dividend in violation of a provision in 2
AS 11, by detecting and investigating those crimes; and 3
(B) commissioner to detect and investigate the claiming or 4
paying of permanent fund dividends that should not have been claimed by or 5
paid to an individual and to impose the penalties and enforcement provisions 6
under AS 43.23.270; 7
(11) adopt regulations under AS 44.62 (Administrative Procedure Act) 8
so that contributions made under AS 43.23.130 are given a priority over donations 9
made under AS 43.23.230 and 43.23.238 and that donations made under 10
AS 43.23.230 are given priority over donations made under AS 43.23.238, if the 11
total amount of contributions and donations elected by an applicant exceeds the 12
amount of the permanent fund dividend that the applicant is entitled to receive; 13
(12) submit fingerprints and fees to the Department of Public Safety 14
for a national criminal history record check under AS 12.62.400 for the purpose of 15
determining a person's qualifications and suitability for administering the permanent 16
fund dividend program under this chapter. 17
* Sec. 3. AS 43.23.230(a) is amended to read: 18
(a) The education dividend raffle fund is established as an account in the 19
general fund. The commissioner shall manage the fund. Interest and other income 20
received on money in the fund shall be separately accounted for and shall be 21
appropriated to the fund. The fund consists of donations appropriated to the fund 22
under (c) of this section. The commissioner shall use the education dividend raffle 23
fund, without further appropriation, to pay for prizes as set out in (d) of this section 24
and may use up to two percent of the balance of the fund but not more than $500,000 25
from the fund each fiscal year to pay the cost of administering the fund and for 26
promotion and advertisement of the fund. When the balance of the education dividend 27
raffle fund exceeds $300,000,000 at the end of a fiscal year, the commissioner shall 28
transfer the amount above $300,000,000 to the education endowment fund established 29
in AS 43.23.220. Money donated to the fund does not lapse. 30
* Sec. 4. AS 43.23.230(b) is amended to read: 31
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(b) Notwithstanding AS 43.23.200, the department shall provide on the Alaska 1
permanent fund dividend application an option for an applicant who is 18 years of age 2
or older to direct that all or a portion of the applicant's dividend payment be donated 3
for educational purposes and to enter the education [PERMANENT FUND] dividend 4
raffle as provided in (d) [(c)] of this section. A donation under this section may be 5
$100 or more, in increments of $100, up to the total amount of the permanent fund 6
dividend that the applicant is entitled to receive. 7
* Sec. 5. AS 43.23.230(c) is amended to read: 8
(c) Of the donations received in a year under (b) of this section, the legislature 9
shall appropriate 25 percent to the education endowment fund established in 10
AS 43.23.220 and shall appropriate 25 percent to the education dividend raffle fund. 11
The legislature shall appropriate the remaining 50 percent of the donations received 12
under (b) of this section to the Department of Education and Early Development for 13
distribution as supplemental grants to school districts according to the average daily 14
membership for each district adjusted under AS 14.17.410(b)(1)(A) - (D). 15
* Sec. 6. AS 43.23.230(d) is amended to read: 16
(d) At the beginning of each year, the commissioner shall conduct a public 17
drawing to award prizes from the education dividend raffle fund. Each $100 donation 18
as provided in (b) of this section entitles a person to one entry into the raffle. The 19
prizes for the raffle shall be as follows: 20
(1) the first name drawn receives an amount equal to eight percent of 21
the balance of the education dividend raffle fund; 22
(2) the second name drawn receives an amount equal to four percent of 23
the balance of the education dividend raffle fund; 24
(3) the third name drawn receives an amount equal to two percent of 25
the balance of the education dividend raffle fund; and 26
(4) the fourth name drawn receives an amount equal to one percent of 27
the balance of the education dividend raffle fund. 28
* Sec. 7. AS 43.23 is amended by adding new sections to article 4 to read: 29
Sec. 43.23.235. Senior citizen grants endowment fund. (a) The senior citizen 30
grants endowment fund is established as a separate account in the general fund. The 31
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fund consists of appropriations from 1
(1) donations to the fund under AS 43.23.238(b); 2
(2) transfers to the fund under AS 43.23.238(a); 3
(3) interest earned on the fund; and 4
(4) any other money appropriated to the fund. 5
(b) The commissioner is the fiduciary of the fund. In managing the fund, the 6
commissioner shall 7
(1) have the same powers and duties as provided in AS 37.10.071; and 8
(2) invest the fund in a manner likely to achieve at least a four percent 9
nominal return over a five-year period to meet the objectives of the fund. 10
(c) In managing the fund, the commissioner shall 11
(1) consider the status of the fund's capital and the income generated 12
on both current and probable future bases; 13
(2) determine the appropriate investment objectives; 14
(3) establish investment policies to achieve the objectives; and 15
(4) act only in regard to the best financial interests of the fund. 16
(d) On July 1 of each year, the commissioner shall 17
(1) determine the fund balance for the previously closed fiscal year, 18
including the earnings of the fund; and 19
(2) when the average market value for that fiscal year exceeds 20
$1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 21
balance of the fund for the last five fiscal years, including the fiscal year just ended, 22
and including any unrealized gains and losses, to the Department of Health for 23
distribution as grants to organizations that provide support for senior citizens as 24
specified in AS 43.23.238(c), subject to appropriation. 25
(e) Money appropriated to the fund does not lapse. 26
Sec. 43.23.238. Senior citizen grants dividend raffle fund; dividend 27
donations to the fund; drawing. (a) The senior citizen grants dividend raffle fund is 28
established as an account in the general fund. The commissioner shall manage the 29
fund. Interest and other income received on money in the fund shall be separately 30
accounted for and shall be appropriated to the fund. The fund consists of donations 31
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appropriated to the fund under (c) of this section. The commissioner shall use the 1
senior citizen grants dividend raffle fund, without further appropriation, to pay for 2
prizes as set out in (d) of this section and may use up to two percent of the balance of 3
the fund but not more than $500,000 from the fund each fiscal year to pay the cost of 4
administering the fund and for promotion and advertisement of the fund. When the 5
balance of the senior citizen grants dividend raffle fund exceeds $300,000,000 at the 6
end of a fiscal year, the commissioner shall transfer the amount above $300,000,000 to 7
the senior citizen grants endowment fund established in AS 43.23.235. Money donated 8
to the fund does not lapse. 9
(b) Notwithstanding AS 43.23.200, the department shall provide on the Alaska 10
permanent fund dividend application an option for an applicant who is 18 years of age 11
or older to direct that all or a portion of the applicant's dividend payment be donated 12
for senior citizen grants and to enter the senior citizen grants dividend raffle as 13
provided in (d) of this section. A donation under this section may be $100 or more, in 14
increments of $100, up to the total amount of the permanent fund dividend that the 15
applicant is entitled to receive. 16
(c) Of the donations received in a year under (b) of this section, the legislature 17
shall appropriate 25 percent to the senior citizen grants endowment fund established in 18
AS 43.23.235 and shall appropriate 25 percent to the senior citizen grants dividend 19
raffle fund. The legislature shall appropriate the remaining 50 percent of the donations 20
received under (b) of this section to the Department of Health for distribution as 21
grants, as follows: 22
(1) 50 percent to organizations that deliver meals to the homes of 23
seniors; 24
(2) 25 percent to organizations that provide transportation services to 25
seniors; 26
(3) 25 percent to organizations that provide supportive housing 27
services to seniors. 28
(d) At the beginning of each year, the commissioner shall conduct a public 29
drawing to award prizes from the senior citizen grants dividend raffle fund. Each $100 30
donation as provided in (b) of this section entitles a person to one entry into the raffle. 31
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The prizes for the raffle shall be as follows: 1
(1) the first name drawn receives an amount equal to eight percent of 2
the balance of the senior citizen grants dividend raffle fund; 3
(2) the second name drawn receives an amount equal to four percent of 4
the balance of the senior citizen grants dividend raffle fund; 5
(3) the third name drawn receives an amount equal to two percent of 6
the balance of the senior citizen grants dividend raffle fund; and 7
(4) the fourth name drawn receives an amount equal to one percent of 8
the balance of the senior citizen grants dividend raffle fund. 9
(e) Nothing in this section creates a dedicated fund. 10
* Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 11
read: 12
APPLICABILITY. AS 43.23.235 and 43.23.238, added by sec. 7 of this Act, apply to 13
a permanent fund dividend applied for on or after January 1, 2027. 14