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SJR 6: Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit; relating to the budget reserve fund and establishing the savings reserve fund; and relating to the permanent fund.

00                       SENATE JOINT RESOLUTION NO. 6                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to an                                          
02 appropriation limit; relating to the budget reserve fund and establishing the savings                                   
03 reserve fund; and relating to the permanent fund.                                                                       
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  Article IX, sec. 16, Constitution of the State of Alaska, is repealed and                            
06 readopted to read:                                                                                                      
07 Section 16. Appropriation Limit. (a)  Appropriations made for a fiscal year                                           
08 shall not exceed the average of the appropriations made in the previous three fiscal                                    
09 years by more than fifty percent of the cumulative change in population and inflation                                   
10       since January 1 of the previous calendar year, derived from federal indices as                                    
11       prescribed by law, or two percent, whichever is less. This subsection does not apply to                           
12       an appropriation                                                                                                  
13                 (1)  to the principal of the Alaska permanent fund and from the Alaska                                  
14       permanent fund income for the administration of the fund or payment of permanent                                  
15       fund dividends;                                                                                                   
01                 (2)  to meet a state of disaster declared by the governor as prescribed by                              
02       law;                                                                                                              
03                 (3)  to pay obligations or spend the proceeds or revenue of State general                               
04       obligation bonds and revenue bonds;                                                                               
05                 (4)  that is a reappropriation of a previous unobligated appropriation;                                 
06                 (5)  that is duplicating the authorization to expend funds from another                                 
07       appropriation;                                                                                                    
08                 (6)  of money held in trust by the State or received from the federal                                   
09       government for a particular purpose;                                                                              
10 (7)  of money received by the State from a source other than the State                                                  
11 or federal government that is restricted to a specific use by the terms of a gift, grant,                               
12       bequest, or contract; and                                                                                         
13 (8)  of money to a State savings account or fund that requires a                                                        
14       subsequent appropriation from that account or fund as prescribed by law.                                          
15  (b)  Any unexpended, unobligated, and unappropriated balance in the general                                            
16 fund at the end of a fiscal year shall be deposited into the following funds in the                                     
17       priority order listed:                                                                                            
18 (1)  the permanent fund under Section 15 of this article in an amount                                                   
19 not to exceed fifty-percent of the income produced from the permanent fund during                                       
20       the fiscal year just ended;                                                                                       
21 (2)  the savings reserve fund under Section 17 of this article in an                                                    
22 amount necessary to bring the savings reserve fund balance equal to the appropriation                                   
23       limit for the next fiscal year;                                                                                   
24                 (3)  the permanent fund under Section 15 of this article.                                               
25 (c)  Section 7 of this article does not apply to deposits made to the permanent                                         
26       fund under this (b) of this section.                                                                              
27    * Sec. 2.  Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read:                        
28 (a) There is established as a separate fund in the State treasury the savings                                       
29 [BUDGET] reserve fund. Except for money deposited into the permanent fund under                                         
30 Section 15 of this article, all money received by the State [AFTER JULY 1, 1990], as                                    
31 a result of the termination, through settlement or otherwise, of an administrative                                      
01 proceeding or of litigation in a State or federal court directly involving mineral lease                            
02 bonuses, rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                                     
03 payments or bonuses, or involving taxes imposed on mineral income, production, or                                       
04 property, shall be deposited in the savings [BUDGET] reserve fund. Money in the                                     
05 savings [BUDGET] reserve fund shall be invested so as to yield competitive market                                   
06 rates to the fund. Income of the fund shall be retained in the fund. Section 7 of this                                  
07 article does not apply to deposits made to the fund under this subsection. Money may                                    
08       be appropriated from the fund only as authorized under (b) [OR (C)] of this section.                              
09    * Sec. 3.  Article IX, sec. 17(b), Constitution of the State of Alaska, is amended to read:                        
10 (b) If the amount in the general fund available for appropriation for a fiscal                                      
11 year is less than the appropriation limit under Section 16 of this article [AMOUNT                                  
12 APPROPRIATED FOR THE PREVIOUS FISCAL YEAR], an appropriation may be                                                     
13 made from the savings [BUDGET] reserve fund. However, the amount appropriated                                       
14 from the fund under this subsection may not exceed the amount necessary, when                                           
15 added to other funds in the general fund available for appropriation, to provide for                                
16 total appropriations equal to the appropriation limit under section 16 of this article                              
17 [AMOUNT OF APPROPRIATIONS MADE IN THE PREVIOUS CALENDAR                                                                 
18       YEAR FOR THE PREVIOUS FISCAL YEAR].                                                                               
19    * Sec. 4.  Article XV, Constitution of the State of Alaska, is amended by adding new                               
20 sections to read:                                                                                                       
21 Section 30. Application of Appropriation Limit. The 2020 amendment                                                    
22 limiting appropriation increases and requiring a portion of the unexpended,                                             
23 unobligated, and unappropriated balance in the general fund to go to the permanent                                      
24 fund (art. IX, sec. 15) applies to appropriations made for the fiscal year ending                                       
25       June 30, 2022, and thereafter.                                                                                    
26 Section 31. Budget Reserve Fund to Savings Reserve Fund Transition.                                                   
27 Under the 2020 amendments to the former budget reserve fund (art. IX, sec. 17), the                                     
28 savings reserve fund replaces the former budget reserve fund. The money in the                                          
29 former budget reserve fund on the effective date of the 2020 amendments shall be                                        
30 deposited into the savings reserve fund. The repeal of Section 17(d) of Article IX in                                   
31 the 2020 amendments to the former budget reserve fund eliminates any repayment                                          
01       required under that subsection through the fiscal year ending June 30, 2021.                                      
02    * Sec. 5.  Article IX, sec. 17(c) and (d), Constitution of the State of Alaska, is repealed.                     
03    * Sec. 6.  The amendments proposed by this resolution shall be placed before the voters of                         
04 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
05 State of Alaska, and the election laws of the state.