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CSSB 196(FIN): "An Act relating to an appropriation limit; relating to the budget responsibilities of the governor; and providing for an effective date."

00                       CS FOR SENATE BILL NO. 196(FIN)                                                                   
01 "An Act relating to an appropriation limit; relating to the budget responsibilities of the                              
02 governor; and providing for an effective date."                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06       LEGISLATIVE INTENT. It is the intent of the legislature that the legislature                                      
07 reevaluate the appropriation limit, as prescribed under this Act, three years after the effective                       
08 date of this Act.                                                                                                     
09    * Sec. 2. AS 37.05.540(a) is amended to read:                                                                      
10 (a)  There is established as a separate fund in the state treasury the budget                                           
11 reserve fund. The budget reserve fund consists of appropriations to the fund.                                           
12 [MONEY RECEIVED BY THE STATE THAT IS SUBJECT TO THE                                                                     
13 APPROPRIATION LIMIT UNDER (b) OF THIS SECTION AND THAT EXCEEDS                                                          
14 THAT LIMIT, MAY BE APPROPRIATED TO THE BUDGET RESERVE FUND.]                                                            
01    * Sec. 3. AS 37.05 is amended by adding a new section to read:                                                     
02 Sec. 37.05.545. Appropriation limit. (a) Unrestricted general fund                                                    
03 appropriations made for a fiscal year may not exceed $4,100,000,000 by more than the                                    
04 cumulative change in inflation since July 1, 2018, derived from federal indices. The                                    
05 determination of the change in inflation for purposes of this subsection shall be based                                 
06 on the Consumer Price Index for all urban consumers for Anchorage prepared by the                                       
07       United States Bureau of Labor Statistics.                                                                         
08            (b)  The appropriation limit in (a) of this section does not apply to an                                     
09       appropriation                                                                                                     
10                 (1)  to the Alaska permanent fund;                                                                      
11                 (2)  for payment of permanent fund dividends;                                                           
12                 (3)  required to pay debt obligations of the state;                                                     
13                 (4)  for a capital project; or                                                                          
14 (5)  to meet a state of disaster declared by the governor as prescribed by                                              
15       law.                                                                                                              
16            (c)  In this section,                                                                                        
17                 (1)  "capital project" has the meaning given in AS 37.06.090;                                           
18                 (2)  "program receipts" has the meaning given in AS 37.05.146;                                          
19 (3)  "unrestricted general fund" means money deposited in the state                                                     
20 treasury that has not been dedicated or designated for use by the Constitution of the                                   
21 State of Alaska or by law; "unrestricted general fund" does not include program                                         
22       receipts or reappropriations.                                                                                     
23    * Sec. 4. AS 37.07.020 is amended by adding a new subsection to read:                                              
24 (f)  In addition to the budget and bills submitted under (a) of this section and                                        
25 the fiscal plan submitted under (b) of this section, the governor shall submit a report                                 
26 with a calculation of appropriations in the budget prepared under (a) of this section as                                
27 applied to the appropriation limit under AS 37.05.545. The report under this                                            
28 subsection must be updated upon submission of the governor's supplemental                                               
29 appropriation bills and the governor's budget amendments under the time limits                                          
30       prescribed in AS 37.07.070.                                                                                       
31    * Sec. 5. AS 37.05.540(b), 37.05.540(c), and 37.05.540(e) are repealed.                                            
01    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
02 read:                                                                                                                   
03       APPLICABILITY. AS 37.05.545, added by sec. 3 of this Act, and AS 37.07.020(f),                                    
04 added by sec. 4 of this Act, apply to appropriations that take effect in the fiscal year ending                         
05 June 30, 2020.                                                                                                          
06    * Sec. 7.  The uncodified law of the State of Alaska is amended by adding a new section to                         
07 read:                                                                                                                   
08       TRANSITION: CALCULATION OF APPROPRIATION LIMIT. Notwithstanding                                                   
09 AS 37.05.545(a), added by sec. 3 of this Act, unrestricted general fund appropriations made                             
10 for the fiscal year ending June 30, 2020, may not exceed $4,100,000,000, excluding                                      
11 appropriations under AS 37.05.545(b), added by sec. 3 of this Act.                                                      
12    * Sec. 8. This Act takes effect July 1, 2018.