00 CS FOR SENATE JOINT RESOLUTION NO. 5(JUD)
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska
02 permanent fund and the permanent fund dividend, relating to an appropriation limit,
03 and relating to the budget reserve fund.
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:
05 * Section 1. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:
06 Section 15. Alaska Permanent Fund. (a) At least twenty-five percent of all
07 mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing
08 payments and bonuses received by the State shall be placed in a permanent fund, the
09 principal of which shall be used only for those income-producing investments
10 specifically designated by law as eligible for permanent fund investments. Except as
11 provided under (b) of this section, all [ALL] income from the permanent fund shall
12 be deposited in the general fund unless otherwise provided by law.
13 * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding new
14 subsections to read:
15 (b) Each fiscal year, a portion of the income from the permanent fund shall be
01 transferred solely for dividend payments to residents of the State as provided by law as
02 it read on January 1, 2019, unless a change to the law is approved by the voters under
03 (c) of this section. The transfer of income for the payment of dividends to State
04 residents under this subsection does not require an appropriation under Section 13 of
05 this article. Dividend payments under this subsection shall be distributed in four equal
06 quarterly payments over the calendar year.
07 (c) Notwithstanding Section 18 of Article II, a law enacted under Sections 14 -
08 17 of Article II that would amend the amount transferred for the payment of dividends
09 to State residents under (b) of this section shall not take effect unless approved by the
10 voters of the State in the next statewide election held more than one hundred twenty
11 days after enactment of the law. The lieutenant governor shall prepare a ballot title and
12 proposition summarizing the law and shall place it on the ballot. If a majority of the
13 votes cast on the proposition favor its adoption, it shall become effective on the later
14 of ninety days after the certification of the election returns by the lieutenant governor
15 or an effective date provided for by concurrence of two-thirds of the membership of
16 each house. If a majority of votes cast on the proposition favor its rejection, the law is
17 rejected and does not take effect.
18 * Sec. 3. Article IX, sec. 16, Constitution of the State of Alaska, is repealed and readopted
19 to read:
20 Section 16. Appropriation Limit. (a) Except as provided in (b) of this
21 section, appropriations made for a fiscal year shall not exceed the average of the
22 appropriations made in the previous three fiscal years by more than the average
23 change in inflation in the previous five fiscal years. In this subsection, the change in
24 inflation shall be based on the Consumer Price Index for Anchorage, Alaska, as
25 prescribed by law. This subsection does not apply to an appropriation
26 (1) to the principal of the Alaska permanent fund and from the Alaska
27 permanent fund income for the administration of the fund or payment of permanent
28 fund dividends;
29 (2) to meet a state of disaster declared by the governor as prescribed by
31 (3) to pay obligations or spend the proceeds or revenue of State general
01 obligation bonds and revenue bonds;
02 (4) that is a reappropriation of a previous unobligated appropriation;
03 (5) that is duplicating the authorization to expend funds from another
05 (6) from a non-State source in trust for a specific purpose, including
06 revenues of a public enterprise or public corporation of the State that issues revenue
07 bonds; and
08 (7) of money to a State savings account or fund that requires a
09 subsequent appropriation from that account or fund as prescribed by law.
10 (b) The legislature may appropriate an additional amount in excess of the
11 appropriation limit under (a) of this section for capital improvements, except that the
12 amount for capital improvements made in excess of the appropriation limit in a fiscal
13 year shall not exceed ten percent of the total appropriation limit for that fiscal year.
14 Appropriations for capital improvements that exceed the appropriation limit shall not
15 be used in calculating the appropriation limit in subsequent fiscal years.
16 (c) Any unexpended, unobligated, and unappropriated balance in the general
17 fund at the end of a fiscal year shall be deposited into the following funds in the
18 priority order listed:
19 (1) the permanent fund under Section 15 of this article in an amount
20 not to exceed fifty-percent of the income produced from the permanent fund during
21 the fiscal year just ended;
22 (2) the budget reserve fund under Section 17 of this article in an
23 amount necessary to bring the budget reserve fund balance equal to the appropriation
24 limit for the next fiscal year;
25 (3) the permanent fund under Section 15 of this article.
26 (d) Section 7 of this article does not apply to deposits made under (c) of this
28 * Sec. 4. Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read:
29 (a) There is established as a separate fund in the State treasury the budget
30 reserve fund. Except for money deposited into the permanent fund under Section 15 of
31 this article, all money received by the State [AFTER JULY 1, 1990], as a result of the
01 termination, through settlement or otherwise, of an administrative proceeding or of
02 litigation in a State or federal court directly involving mineral lease bonuses, rentals,
03 royalties, royalty sale proceeds, federal mineral revenue sharing payments or bonuses,
04 or involving taxes imposed on mineral income, production, or property, shall be
05 deposited in the budget reserve fund. Money in the budget reserve fund shall be
06 invested so as to yield competitive market rates to the fund. Income of the fund shall
07 be retained in the fund. Section 7 of this article does not apply to deposits made to the
08 fund under this subsection. Money may be appropriated from the fund only as
09 authorized under (b) [OR (c)] of this section.
10 * Sec. 5. Article IX, sec. 17(b), Constitution of the State of Alaska, is amended to read:
11 (b) If the amount in the general fund available for appropriation for a fiscal
12 year is less than the appropriation limit under Section 16 of this article [AMOUNT
13 APPROPRIATED FOR THE PREVIOUS FISCAL YEAR], an appropriation may be
14 made from the budget reserve fund. However, the amount appropriated from the fund
15 under this subsection may not exceed the amount necessary, when added to other
16 funds in the general fund available for appropriation, to provide for total
17 appropriations equal to the appropriation limit under section 16 of this article
18 [AMOUNT OF APPROPRIATIONS MADE IN THE PREVIOUS CALENDAR
19 YEAR FOR THE PREVIOUS FISCAL YEAR].
20 * Sec. 6. Article XV, Constitution of the State of Alaska, is amended by adding new
21 sections to read:
22 Section 30. Permanent Fund Amendments: Transition. For purposes of the
23 2020 amendments to Section 15 of Article IX, the law in place January 1, 2019, is the
24 program of dividend payments under Section 15(b) of Article IX, subject to the
25 enactment of a law amending the program of dividend payments in accordance with
26 the requirements of Section 15(c) of Article IX. Any amendments to the program of
27 dividend payments enacted after January 1, 2019, but before January 1, 2021, are
29 Section 31. Application of Appropriation Limit. The 2020 amendment
30 limiting appropriation increases and requiring a portion of the unexpended,
31 unobligated, and unappropriated balance in the general fund to go to the permanent
01 fund (art. IX, sec. 15) applies to appropriations made for the fiscal year ending
02 June 30, 2022, and thereafter.
03 Section 32. Budget Reserve Fund Transition. The repeal of Section 17(d) of
04 Article IX in the 2020 amendments eliminates any repayment required under that
05 subsection through the fiscal year ending June 30, 2021.
06 * Sec. 7. Article IX, secs. 17(c) and 17(d), Constitution of the State of Alaska, are repealed.
07 * Sec. 8. The amendments proposed by this resolution shall be placed before the voters of
08 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the
09 State of Alaska, and the election laws of the state.