00 CS FOR SENATE JOINT RESOLUTION NO. 5(JUD) 01 Proposing amendments to the Constitution of the State of Alaska relating to an 02 appropriation limit; and relating to the budget reserve fund. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. Article IX, sec. 16, Constitution of the State of Alaska, is amended to read: 05 Section 16. Appropriation Limit. (a) Except as provided in (b) of this  06 section and except [EXCEPT] for appropriations for Alaska permanent fund 07 dividends, appropriations to the Alaska permanent fund, appropriations of revenue 08 and general obligation bond proceeds, appropriations required to pay the principal 09 and interest on revenue and general obligation bonds, appropriations to a State  10 account or fund that requires a subsequent appropriation from that account or  11 fund as prescribed by law, appropriations for payment of the unfunded liability  12 of a State retirement system, appropriations to meet a state of disaster declared  13 by the governor as prescribed by law, and appropriations of money received from a 14 non-State source in trust for a specific purpose, including revenues of a public 15 enterprise or public corporation of the State that issues revenue bonds, appropriations 01 from the treasury made for a fiscal year shall not exceed the average of the  02 appropriations made in the previous three fiscal years [$2,500,000,000] by more 03 than the cumulative percent change, derived from [FEDERAL] indices as prescribed 04 by law, in population or [AND] inflation, whichever is greater, over the previous  05 two calendar years [SINCE JULY 1, 1981. WITHIN THIS LIMIT, AT LEAST 06 ONE-THIRD SHALL BE RESERVED FOR CAPITAL PROJECTS AND LOAN 07 APPROPRIATIONS. THE LEGISLATURE MAY EXCEED THIS LIMIT IN BILLS 08 FOR APPROPRIATIONS TO THE ALASKA PERMANENT FUND AND IN 09 BILLS FOR APPROPRIATIONS FOR CAPITAL PROJECTS, WHETHER OF 10 BOND PROCEEDS OR OTHERWISE, IF EACH BILL IS APPROVED BY THE 11 GOVERNOR, OR PASSED BY AFFIRMATIVE VOTE OF THREE-FOURTHS OF 12 THE MEMBERSHIP OF THE LEGISLATURE OVER A VETO OR ITEM VETO, 13 OR BECOMES LAW WITHOUT SIGNATURE, AND IS ALSO APPROVED BY 14 THE VOTERS AS PRESCRIBED BY LAW. EACH BILL FOR APPROPRIATIONS 15 FOR CAPITAL PROJECTS IN EXCESS OF THE LIMIT SHALL BE CONFINED 16 TO CAPITAL PROJECTS OF THE SAME TYPE, AND THE VOTERS SHALL, AS 17 PROVIDED BY LAW, BE INFORMED OF THE COST OF OPERATIONS AND 18 MAINTENANCE OF THE CAPITAL PROJECTS. NO OTHER APPROPRIATION 19 IN EXCESS OF THIS LIMIT MAY BE MADE EXCEPT TO MEET A STATE OF 20 DISASTER DECLARED BY THE GOVERNOR AS PRESCRIBED BY LAW]. The 21 governor shall cause any unexpended and unappropriated balance to be invested so as 22 to yield competitive market rates to the treasury. 23  * Sec. 2. Article IX, sec. 16, Constitution of the State of Alaska, is amended by adding a 24 new subsection to read: 25 (b) The legislature may appropriate an additional amount in excess of the 26 appropriation limit under (a) of this section for capital projects, if the appropriation is 27 approved by a majority of the qualified voters of the State who vote on the question. 28 Appropriations for capital projects that exceed the appropriation limit shall not be used 29 in calculating the appropriation limit in subsequent fiscal years. 30  * Sec. 3. Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read: 31 (a) There is established as a separate fund in the State treasury the budget 01 reserve fund. Except for money deposited into the permanent fund under Section 15 of 02 this article, all money received by the State [AFTER JULY 1, 1990,] as a result of the 03 termination, through settlement or otherwise, of an administrative proceeding or of 04 litigation in a State or federal court directly involving mineral lease bonuses, rentals, 05 royalties, royalty sale proceeds, federal mineral revenue sharing payments or bonuses, 06 or involving taxes imposed on mineral income, production, or property, shall be 07 deposited in the budget reserve fund. The [MONEY IN THE BUDGET RESERVE] 08 fund shall be invested so as to yield competitive market rates [TO THE FUND]. 09 Income of the fund shall be retained in the fund. Deposits [SECTION 7 OF THIS 10 ARTICLE DOES NOT APPLY TO DEPOSITS] made to the fund under this 11 subsection are not prohibited under Section 7 of this article. Money may be 12 appropriated from the fund only as authorized under [(b) OR] (c) of this section. 13  * Sec. 4. Article XV, Constitution of the State of Alaska, is amended by adding new 14 sections to read: 15 Section 30. Application of Appropriation Limit. The 2022 amendment 16 limiting appropriation increases applies to appropriations made for the fiscal year 17 ending June 30, 2024, and thereafter. 18 Section 31. Budget Reserve Fund Transition. The 2022 amendments to the 19 budget reserve fund (art. IX, sec. 17) apply to the fiscal year ending June 30, 2024, 20 and thereafter. 21  * Sec. 5. Article IX, sec. 17(b), Constitution of the State of Alaska, is repealed. 22  * Sec. 6. The amendments proposed by this resolution shall be placed before the voters of 23 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 24 State of Alaska, and the election laws of the state.