An Act relating to the Alaska permanent fund; relating to income of the Alaska permanent fund; relating to the amount available for appropriation and appropriations from the earnings reserve account; relating to the permanent fund dividend; and providing for an effective date.

SB 109 amends Alaska's Permanent Fund statutes to change how income is calculated and distributed. It sets the annual dividend amount at 21% of the fund's average net income over the previous five years (capped at the most recent year's income), while adjusting the "amount available for appropriation" to 5% of the fund's average market value over the same period. Crucially, it specifies that funds from the Amerada Hess settlement (a major legal case) cannot be used for dividends or inflation adjustments to the fund's principal. This directly affects all Alaska residents who receive the annual Permanent Fund Dividend and the state budget through revised fund transfers to the general fund and dividend accounts.