An Act relating to the Alaska permanent fund; relating to permanent fund dividends; relating to the use of state income from mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments, and bonuses from mineral leases; relating to contributions from permanent fund dividends to the general and permanent funds; and providing for an effective date.

HB 114 amends Alaska's Permanent Fund law to change how dividend payments are calculated and manage fund income. It sets a rule that 21% of the fund's average net income over the last five years (capped by the previous year's income) is available for annual dividends to Alaskans. The bill also directs income from the Amerada Hess settlement to the Alaska Capital Income Fund instead of being used for dividends or inflation adjustments, and limits how much can be taken from the earnings reserve account for inflation adjustments (excluding the settlement amount). These changes affect how the state calculates dividends and allocates revenue from oil-related income.