SENATE JOINT RESOLUTION NO. 21                                          
       Proposing amendments to  the Constitution of the  State                 
  of           Alaska  creating a special fund related to  the                 
  use of federal         mineral revenue sharing payments  due                 
  the state from certain        federal  leases on the coastal                 
  plain of the Arctic National        Wildlife Refuge.                         
                                                                               
  Ken Erickson,  Legislative  Aid  to  Senate  President  Drue                 
  Pearce joined the committee.  He testified that SJR 21 would                 
  place before the voters of the  State of Alaska at the  next                 
  general election,  an  amendment to  the state  constitution                 
  which  would  create  the Arctic  National  Wildlife  Refuge                 
  Special Revenue Fund.  This fund  would consist of all state                 
  share royalties from any future development from the coastal                 
  plain of the Arctic National Wildlife Refuge, except for the                 
  50% share already required by the state constitution, to  be                 
  placed in the  Alaska Permanent Fund. The  state legislature                 
  could only appropriate money in  this fund for assistance or                 
  aid to a municipality under a program of state aid  to local                 
  government, established by  laws embodied in AS  29.60.100 -                 
  AS 29.60.375 or  for the support of school  construction and                 
                                                                               
                                                                               
  school  major  maintenance  programs established  by  law as                 
  currently  embodied in  AS  14.11.007 -  AS  14.11.135.   If                 
  ratified by the  citizens of  Alaska, this resolution  would                 
  create a dedicated fund.  Senator Pearce believes that it is                 
  essential that Alaskans be given the opportunity to put this                 
  mechanism  in  place   now,  before  ANWR   exploration  and                 
  development is a  reality.   When fields  are developed  and                 
  revenues are  flowing to the  General Fund, the  pressure to                 
  use the royalties  for other purposes will  be overwhelming.                 
  This new fund  will be an  important resource to help  local                 
  governments  meet  their  obligations  in  years  to   come.                 
  Municipal Assistance and State Revenue  Sharing has been cut                 
  approximately 50% in the last ten years while municipalities                 
  have   been   required   to   take    on   ever   increasing                 
  responsibilities.    This  legislation is  supported  by the                 
  Alaska Municipal League.                                                     
                                                                               
  Senator  Sharp  MOVED  to  adopt   SJR  21  with  individual                 
  recommendations  and  accompanying  fiscal  notes.   Without                 
  objection SJR 21 REPORTED OUT of committee with fiscal notes                 
  from the Office  of the Governor,  zero amount; and Dept  of                 
  Revenue  zero  amount  in  1996,  and  $2.2 in  1997.    The                 
  committee signed "no recommendation".