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SJR 4: Proposing amendments to the Constitution of the State of Alaska relating to the budget reserve fund and to uses of money in the general fund available for appropriation at the end of each fiscal year; and providing for an effective date for the amendments.

00                       SENATE JOINT RESOLUTION NO. 4                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to the budget                                  
02 reserve fund and to uses of money in the general fund available for appropriation at the                                
03 end of each fiscal year; and providing for an effective date for the amendments.                                        
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  Article IX, sec. 7, Constitution of the State of Alaska, is amended to read:                         
06            Section 7.  Dedicated Funds.  The proceeds of any state tax or license shall                               
07       not be dedicated to any special purpose, except as provided in Sections 15 and 17                             
08       [SECTION 15] of this article or when required by the federal government for state                                 
09       participation in federal programs.  This provision shall not prohibit the continuance of                          
10       any dedication for special purposes existing upon the date of ratification of this section                        
11       by the people of Alaska.                                                                                          
12    * Sec. 2.  Article IX, sec. 17, Constitution of the State of Alaska, is amended to read:                           
13            Section 17.  Budget Reserve Fund.  (a)  There is established as a separate                                 
14       fund in the State treasury the budget reserve fund consisting of a primary account                            
15       and a deferred maintenance account.  Except for money deposited into the                                      
01       permanent fund under Section 15 of this article, all money received by the State after                            
02       July 1, 1990, as a result of the termination, through settlement or otherwise, of an                              
03       administrative proceeding or of litigation in a State or federal court involving mineral                          
04       lease bonuses, rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                         
05       payments or bonuses, or involving taxes imposed on mineral income, production, or                                 
06       property, shall be deposited in the primary account of the budget reserve fund.                               
07       Money in the budget reserve fund shall be invested so as to yield competitive market                              
08       rates to the fund.  Income of the primary account [FUND] shall be retained in the                             
09       primary account and income of the deferred maintenance account shall be                                       
10       retained in the deferred maintenance account [FUND. SECTION 7 OF THIS                                         
11       ARTICLE DOES NOT APPLY TO DEPOSITS MADE TO THE FUND UNDER                                                         
12       THIS SUBSECTION].  Money may be appropriated from the fund only as authorized                                     
13       under (b) or (c) of this section.                                                                                 
14            (b)  If the amount available for appropriation for a fiscal year is less than the                            
15       amount appropriated for the previous fiscal year, an appropriation may be made from                               
16       the primary account of the budget reserve fund upon affirmative vote of at least a                        
17       majority of the members of each house.  However, the amount appropriated from                                 
18       the fund under this subsection may not exceed the amount necessary, when added to                                 
19       other funds available for appropriation, to provide for total appropriations equal to the                         
20       amount of appropriations made in the previous calendar year for the previous fiscal                               
21       year.                                                                                                             
22            (c)  An appropriation from the primary account of the budget reserve fund                                
23       may be made for any public purpose upon affirmative vote of at least three-fourths of                         
24       the members of each house of the legislature.  An appropriation from the deferred                             
25       maintenance account of the fund may be made upon affirmative vote of at least a                               
26       majority of the members of each house, but shall be made only for maintenance                                 
27       of public schools, roads, or highways that has been deferred for at least twelve                              
28       months.                                                                                                       
29            (d)  The [IF AN APPROPRIATION IS MADE FROM THE BUDGET                                                    
30       RESERVE FUND, UNTIL THE AMOUNT APPROPRIATED IS REPAID, THE]                                                       
31       amount of money in the general fund available for appropriation at the end of each                                
01       [SUCCEEDING] fiscal year shall be deposited in the primary account of the budget                              
02       reserve fund.  Only the amount of the deposit under this subsection needed to                                 
03       repay amounts appropriated from the primary account shall be retained in the                                  
04       account and only to the extent that the account does not exceed $5,000,000,000.                               
05       Any excess amount shall be administratively transferred from the primary                                      
06       account as follows:                                                                                           
07                 (1)  fifty percent to the principal of the permanent fund established                               
08       in Section 15 of this article;                                                                                
09                 (2)  twenty-five percent to a program of dividend payments to State                                 
10       residents established by law; and                                                                             
11                 (3)  twenty-five percent to the deferred maintenance account in the                                 
12       budget reserve fund [THE LEGISLATURE SHALL IMPLEMENT THIS                                                     
13       SUBSECTION BY LAW].                                                                                               
14    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
15 section to read:                                                                                                        
16            Section 30.  Transition and Effective Date.  (a)  The 2006 amendments                                      
17       relating to the budget reserve fund (art. IX, secs. 7 and 17) take effect on June 30,                             
18       2007.                                                                                                             
19            (b)  On June 30, 2007, the amount equal to the balance in the budget reserve                                 
20       fund on June 29, 2007, shall be allocated in the fund to the primary account.                                     
21    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
22 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
23 State of Alaska, and the election laws of the state.