Legislature(1993 - 1994)
1993-01-22 Senate Journal
Full Journal pdf1993-01-22 Senate Journal Page 0119 SJR 18 SENATE JOINT RESOLUTION NO. 18 by the Senate Rules Committee by request of the Governor, Proposing amendments to the Constitution of the State of Alaska creating a transportation fund. was read the first time and referred to the Transportation Committee, the Judiciary Committee and the Finance Committee. Fiscal note from Department of Revenue and zero fiscal notes from Department of Transportation and Public Facilities and Department of Public Safety published today. Governor's transmittal letter dated January 22: Dear Mr. President: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a resolution to amend the Alaska Constitution to provide for a dedicated transportation fund. Section 1 of the resolution repeals and readopts art. IX, sec. 7, of the Alaska Constitution so that it permits the dedication of revenue under a new sec. 18 of art. IX, which is created by sec. 2 of the resolution. No other substantive change is made to sec. 7. Section 2 of the resolution amends art. IX of the Alaska Constitution by adding a new sec. 18. New sec. 18(a) requires that certain revenue received after June 30, 1995 that is derived from transportation-related functions be placed into a transportation fund. The revenue that is to be dedicated to the transportation fund is 1)revenue from state licenses and fees for the registration, operation, and use of motor vehicles, aircraft, and watercraft; 2)revenue from the use of state transportation facilities, including the state ferry system; 1993-01-22 Senate Journal Page 0120 SJR 18 3)revenue from state taxes on fuel used in and on watercraft and on fuel used by motor vehicles and aircraft. Refunds or credits from state fuel taxes, as provided by law, and costs for the collection of license, fee, and tax revenue, as provided for by law, would not be required to be placed in the transportation fund. New sec. 18(a) also provides that the legislature may appropriate revenue from the transportation fund only for 1)the maintenance and operation of a state or local government transportation facility (including a highway or marine highway system vessel) if the facility is related to the mode of transportation from which the tax, license, or fee revenue to be appropriated was originally received; 2)the construction and improvement of harbor facilities if the tax, license, or fee revenue to be appropriated was obtained from the use of watercraft; and 3)the administration and enforcement of motor vehicle laws. Section 18(b) exempts the following transportation-related revenue from the requirement that it be placed into the new transportation fund: 1)revenue received from taxes, licenses, or fees that the state collects on behalf of a local government; 2)revenue received by a public corporation whose revenue must, by federal law, be retained and managed by the corporation; and 3)revenue received from the use or operation of a transportation facility constructed with bond proceeds if law or bond covenants require that the revenue be used for some other purpose. 1993-01-22 Senate Journal Page 0121 SJR 18 Section 18(c) requires the legislature to provide by law for the management and investment of the fund and provides further that income earned from the management and investment of the fund be deposited into the fund. Section 18(d) allows the legislature, upon three-fourths majority vote of both houses, to make appropriations from the fund for any other public purpose. Section 3 of the resolution requires that the amendment proposed by this resolution be placed before the voters of the state at the next general election in accord with the election laws of the state. Because transportation facility maintenance and operation, like other state services, is currently a general fund expenditure, declining oil revenue will surely mean a reduction in the funding available for those critical activities. I believe that the most appropriate means to guard against such a reduction, and to provide for stability and continuity in the provision of transportation services, is to permit "user fees" from transportation-related facilities to be dedicated to maintaining and operating Alaska's transportation system. I urge your favorable consideration of this resolution. Sincerely, /s/ Walter J. Hickel Governor