Legislature(2003 - 2004)

2004-05-07 Senate Journal

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2004-05-07                     Senate Journal                      Page 3436
HJR 26                                                                                            
CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) Proposing                                                 
amendments to the Constitution of the State of Alaska relating to and                               
limiting appropriations from the Alaska permanent fund based on an                                  
averaged percent of the fund market value, was read the third time.                                 
                                                                                                    
Senator French moved that the resolution be returned to second                                      
reading for the purpose of a specific amendment, that being                                         
Amendment No. 1. Without objection, the resolution was returned to                                  
second reading.                                                                                     
                                                                                                    
Senator French offered Amendment No. 1:                                                             
                                                                                                    
Page 2, line 3, following "year.":                                                                  
     Insert "Appropriations from the fund for a fiscal year may be                                  
made only as follows:                                                                               
          (1)  two-thirds of the total amount appropriated for a fiscal                             
          year shall be used for a program of annual permanent fund                                 
           dividend payments to State residents established by law;                                
          (2)  one-third of the total amount appropriated for a fiscal year                         
          shall be appropriated to the general fund."                                               
                                                                                                    

2004-05-07                     Senate Journal                      Page 3437
Senator French moved for the adoption of Amendment No. 1. Senator                                   
Ben Stevens objected.                                                                               
                                                                                                    
The question being: "Shall Amendment No. 1 be adopted?" The roll                                    
was taken with the following result:                                                                
                                                                                                    
CSHJR 26(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  8   NAYS:  12   EXCUSED:  0   ABSENT:  0                                                   
                                                                                                    
Yeas:  Davis, Ellis, Elton, French, Guess, Hoffman, Lincoln, Olson                                  
                                                                                                    
Nays:  Bunde, Cowdery, Dyson, Green, Ogan, Seekins, Stedman,                                        
Stevens B, Stevens G, Therriault, Wagoner, Wilken                                                   
                                                                                                    
and so, Amendment No. 1 failed.                                                                     
                                                                                                    
CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) was                                                       
automatically in third reading.                                                                     
                                                                                                    
In accordance with Mason's Manual Rule 583, President Therriault                                    
relinquished the chair to Senator Ben Stevens, President pro tempore,                               
in order to participate in debate.                                                                  
                                                                                                    
Senator Therriault moved that the resolution be returned to second                                  
reading for the purpose of a specific amendment, that being                                         
Amendment No. 2. Without objection, the resolution was returned to                                  
second reading.                                                                                     
                                                                                                    
Senator Therriault offered Amendment No. 2:                                                         
                                                                                                    
Page 1, line 1, through page 2, line 12:                                                            
 Delete all material and insert:                                                                    
 "Proposing amendments to the Constitution of the State of                                        
Alaska relating to the Alaska permanent fund, establishing the                                    
earnings account, and permitting distribution from the account                                    
only for costs of administering the permanent fund, permanent                                     
fund dividends, public education, and deposits to the principal of                                
the permanent fund; and providing for an effective date for the                                   
amendments.                                                                                       

2004-05-07                     Senate Journal                      Page 3438
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE                                                    
OF ALASKA:                                                                                        
   * Section 1.  Article IX, sec. 15, Constitution of the State of Alaska,                        
is amended to read:                                                                                 
          Section 15.  Alaska Permanent Fund.  (a)  At least twenty-                          
          five per cent of all mineral lease rentals, royalties, royalty sale                       
          proceeds, federal mineral revenue sharing payments and                                    
          bonuses received by the State shall be placed in a permanent                              
          fund, the principal of which shall be used only for those                                 
          income-producing investments specifically designated by law                               
          as eligible for permanent fund investments.  The earnings                             
          account is established as a separate account in the fund.                             
          All income from the permanent fund, determined in                                     
          accordance with generally accepted accounting principles                              
          as provided by law, shall be accounted for [DEPOSITED]                            
          in the earnings account.  Appropriations may only be                                  
          made from the earnings account as provided in (b) and (c)                             
          of this section [GENERAL FUND UNLESS OTHERWISE                                        
          PROVIDED BY LAW].                                                                         
   * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is                        
amended by adding new subsections to read:                                                          
                   (b)  Appropriations under this subsection from the                               
          earnings account for a fiscal year may not exceed five percent                            
          of the average of the market values of the fund on June 30 for                            
          the first five of the six fiscal years immediately preceding that                         
          fiscal year.  Appropriations from the earnings account may be                             
          made only for the following purposes:                                                     
                        (1)  costs of administering the permanent fund;                             
                        (2)  a program of dividend payments for State                               
          residents established by law; and                                                         
                        (3)  public education.                                                      
                   (c)  Appropriations from the earnings account to the                             
          principal of the permanent fund may be made at any time.                                  
   * Sec. 3.  Article XV, Constitution of the State of Alaska, is                                 
amended by adding a new section to read:                                                            
            Section 30.  Transition; Effective Date.  (a)  On January 1,                          
          2005, the unencumbered, unappropriated balance of the                                     
          earnings reserve account established under AS 37.13.145(a)                                
          becomes part of the Alaska permanent fund, and the fund                                   
          shall be reconstituted as follows:                                                        

2004-05-07                     Senate Journal                      Page 3439
                       (1)  the fund principal consists of that portion of                          
          the total fund value attributable to all deposits made under                              
          Section 15 of Article IX before January 1, 2005, all                                      
          appropriations made to the fund principal before January 1,                               
          2005, and all other transfers made to the fund principal before                           
          January 1, 2005;                                                                          
                       (2)  the earnings account consists of that portion                           
          of the total fund value not attributed to principal under (1) of                          
          this subsection.                                                                          
                 (b)  Section 15(b) of Article IX first applies to                                  
          appropriations for fiscal year 2006.  Appropriations from the                             
          permanent fund for fiscal year 2005 are subject to Section 15                             
          of Article IX as that section read on June 30, 2004.                                      
                 (c)  The 2004 amendments relating to the Alaska                                    
          permanent fund (art. IX, sec. 15) and this section take effect                            
          January 1, 2005."                                                                         
                                                                                                    
Senator Therriault moved for the adoption of Amendment No. 2.                                       
                                                                                                    
Senator Guess objected.                                                                             
                                                                                                    
Senator Cowdery called the Senate. The call was satisfied.                                          
                                                                                                    
The question being: "Shall Amendment No. 2 be adopted?" The roll                                    
was taken with the following result:                                                                
                                                                                                    
CSHJR 26(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 2                                                                                     
                                                                                                    
YEAS:  6   NAYS:  14   EXCUSED:  0   ABSENT:  0                                                   
                                                                                                    
Yeas:  Cowdery, Dyson, Green, Seekins, Stevens G, Therriault                                        
                                                                                                    
Nays:  Bunde, Davis, Ellis, Elton, French, Guess, Hoffman, Lincoln,                                 
Ogan, Olson, Stedman, Stevens B, Wagoner, Wilken                                                    
                                                                                                    
and so, Amendment No. 2 failed.                                                                     
                                                                                                    
CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) was                                                       
automatically in third reading.                                                                     
                                                                                                    

2004-05-07                     Senate Journal                      Page 3440
Senator Therriault moved that the resolution be returned to second                                  
reading for the purpose of a specific amendment, that being                                         
Amendment No. 3. Without objection, the resolution was returned to                                  
second reading.                                                                                     
                                                                                                    
Senator Therriault offered Amendment No. 3:                                                         
                                                                                                    
Page 1, line 1, through page 2, line 12:                                                            
     Delete all material and insert:                                                                
     "Proposing amendments to the Constitution of the State of                                    
Alaska relating to the Alaska permanent fund, establishing the                                    
earnings account, and permitting deposits to the principal of the                                 
permanent fund; and providing for an effective date for the                                       
amendments.                                                                                       
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE                                                    
OF ALASKA:                                                                                        
   * Section 1.  Article IX, sec. 15, Constitution of the State of Alaska,                        
is amended to read:                                                                                 
              Section 15.  Alaska Permanent Fund.  (a)  At least                              
          twenty-five per cent of all mineral lease rentals, royalties,                             
          royalty sale proceeds, federal mineral revenue sharing                                    
          payments and bonuses received by the State shall be placed in                             
          a permanent fund, the principal of which shall be used only                               
          for those income-producing investments specifically                                       
          designated by law as eligible for permanent fund investments.                             
          The earnings account is established as a separate account                             
          in the fund.  All income from the permanent fund,                                 
          determined in accordance with generally accepted                                      
          accounting principles as provided by law, shall be                                    
          accounted for [DEPOSITED] in the earnings account.                                
          Appropriations may only be made from the earnings                                     
          account as provided in (b) and (c) of this section                                    
          [GENERAL FUND UNLESS OTHERWISE PROVIDED BY                                                
          LAW].                                                                                     
   * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is                        
amended by adding new subsections to read:                                                          
                   (b)  Appropriations under this subsection from the                               
          earnings account for a fiscal year may not exceed five percent                            
          of the average of the market values of the fund on June 30 for                            
          the first five of the six fiscal years immediately preceding that                         
          fiscal year.                                                                              

2004-05-07                     Senate Journal                      Page 3441
                   (c)  Appropriations from the earnings account to the                             
          principal of the permanent fund may be made at any time.                                  
   * Sec. 3.  Article XV, Constitution of the State of Alaska, is                                 
amended by adding a new section to read:                                                            
              Section 30.  Transition; Effective Date.  (a)  On                                   
          January 1, 2005, the unencumbered, unappropriated balance                                 
          of the earnings reserve account established under                                         
          AS 37.13.145(a) becomes part of the Alaska permanent fund,                                
          and the fund shall be reconstituted as follows:                                           
                        (1)  the fund principal consists of that portion of                         
          the total fund value attributable to all deposits made under                              
          Section 15 of Article IX before January 1, 2005, all                                      
          appropriations made to the fund principal before January 1,                               
          2005, and all other transfers made to the fund principal before                           
          January 1, 2005;                                                                          
                        (2)  the earnings account consists of that portion                          
          of the total fund value not attributed to principal under (1) of                          
          this subsection.                                                                          
                 (b)  Section 15(b) of Article IX first applies to                                  
          appropriations for fiscal year 2006.  Appropriations from the                             
          permanent fund for fiscal year 2005 are subject to Section 15                             
          of Article IX as that section read on June 30, 2004.                                      
                 (c)  The 2004 amendments relating to the Alaska                                    
          permanent fund (art. IX, sec. 15) and this section take effect                            
          January 1, 2005."                                                                         
                                                                                                    
Senator Therriault moved for the adoption of Amendment No. 3.                                       
Senator Ellis objected.                                                                             
                                                                                                    
The question being: "Shall Amendment No. 3 be adopted?" The roll                                    
was taken with the following result:                                                                
                                                                                                    
CSHJR 26(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 3                                                                                     
                                                                                                    
YEAS:  12   NAYS:  8   EXCUSED:  0   ABSENT:  0                                                   
                                                                                                    
Yeas:  Bunde, Cowdery, Dyson, Green, Guess, Hoffman, Seekins,                                       
Stedman, Stevens G, Therriault, Wagoner, Wilken                                                     
                                                                                                    
Nays:  Davis, Ellis, Elton, French, Lincoln, Ogan, Olson, Stevens B                                 
                                                                                                    

2004-05-07                     Senate Journal                      Page 3442
and so, Amendment No. 3 was adopted.                                                                
                                                                                                    
CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S                                                      
Proposing amendments to the Constitution of the State of Alaska                                     
relating to the Alaska permanent fund, establishing the earnings                                    
account, and permitting deposits to the principal of the permanent                                  
fund; and providing for an effective date for the amendments, was                                   
automatically in third reading.                                                                     
                                                                                                    
President Therriault and Senator Ben Stevens resumed their original                                 
places.                                                                                             
                                                                                                    
Senator Guess called the Senate. The call was satisfied.                                            
                                                                                                    
The question being: "Shall CS FOR HOUSE JOINT RESOLUTION                                            
NO. 26(FIN) am S Proposing amendments to the Constitution of the                                    
State of Alaska relating to the Alaska permanent fund, establishing the                             
earnings account, and permitting deposits to the principal of the                                   
permanent fund; and providing for an effective date for the                                         
amendments, pass the Senate?" The roll was taken with the following                                 
result:                                                                                             
                                                                                                    
CSHJR 26(FIN) am S                                                                                  
Third Reading - Final Passage                                                                       
                                                                                                    
YEAS:  5   NAYS:  15   EXCUSED:  0   ABSENT:  0                                                   
                                                                                                    
Yeas:  Bunde, Seekins, Stedman, Stevens G, Therriault                                               
                                                                                                    
Nays:  Cowdery, Davis, Dyson, Ellis, Elton, French, Green, Guess,                                   
Hoffman, Lincoln, Ogan, Olson, Stevens B, Wagoner, Wilken                                           
                                                                                                    
and so, CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S                                              
failed to pass the Senate.                                                                          
                                                                                                    
Senator Ben Stevens gave notice of reconsideration on CS FOR                                        
HOUSE JOINT RESOLUTION NO. 26(FIN) am S(fld S).