SJR 21: Proposing amendments to the Constitution of the State of Alaska relating to the public facilities capital fund, the Alaska Permanent Fund Corporation, and to appropriations from the constitutional budget reserve fund to the public facilities capital fund.
00SENATE JOINT RESOLUTION NO. 21 01 Proposing amendments to the Constitution of the State of Alaska relating to the 02 public facilities capital fund, the Alaska Permanent Fund Corporation, and to 03 appropriations from the constitutional budget reserve fund to the public facilities 04 capital fund. 05 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read: 07 Section 15. Alaska Permanent Fund. (a) At least twenty-five per cent of 08 all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue 09 sharing payments and bonuses received by the State shall be placed in a permanent 10 fund, the principal of which shall be used only for those income-producing investments 11 specifically designated by law as eligible for permanent fund investments. All income 12 from the permanent fund shall be deposited in the general fund unless otherwise 13 provided by law. 14 (b) The Alaska Permanent Fund Corporation, a public corporation, shall
01 manage and invest the assets of the permanent fund and assets of the public 02 facilities capital fund established in Section 18 of this article. 03 * Sec. 2. Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read: 04 (a) There is established as a separate fund in the State treasury the budget 05 reserve fund. Except for money deposited into the permanent fund under Section 15 06 of this article, all money received by the State after July 1, 1990, as a result of the 07 termination, through settlement or otherwise, of an administrative proceeding or of 08 litigation in a State or federal court involving mineral lease bonuses, rentals, royalties, 09 royalty sale proceeds, federal mineral revenue sharing payments or bonuses, or 10 involving taxes imposed on mineral income, production, or property, shall be deposited 11 in the budget reserve fund. Money in the budget reserve fund shall be invested so as 12 to yield competitive market rates to the fund. Income of the fund shall be retained in 13 the fund. Section 7 of this article does not apply to deposits made to the fund under 14 this subsection. Money may be appropriated from the fund only as authorized under 15 (b), (c), or (e) [OR (c)] of this section. 16 * Sec. 3. Article IX, sec. 17, Constitution of the State of Alaska, is amended by adding a 17 new subsection to read: 18 (e) An appropriation may be made from the budget reserve fund to the 19 principal of the public facilities capital fund established in Section 18 of this article 20 at any time. Subsection (d) of this section does not apply to appropriations made 21 under this subsection. 22 * Sec. 4. Article IX, Constitution of the State of Alaska, is amended by adding a new 23 section to read: 24 Section 18. Public Facilities Capital Fund. (a) There is established as a 25 separate fund in the State treasury the public facilities capital fund, the principal of 26 which shall be used only for those income-producing investments specifically 27 designated by law as eligible for permanent fund investments. Appropriations may be 28 made to the principal of the fund. Income of the fund shall be retained in the fund 29 until withdrawn under (b) of this section or appropriated under (c) of this section. 30 (b) Notwithstanding other provisions of this constitution, income of the public 31 facilities capital fund shall be withdrawn and used to pay the principal and interest on
01 state general obligation bonds issued for acquisition, construction, and major 02 maintenance and renovation of roads and highways, schools, airports, harbors and 03 ports, water and sewer projects, correctional facilities, and buildings that are wholly 04 owned by the State, by a municipality or school district of the State, or by the 05 University of Alaska. The income may be withdrawn from the fund only to make 06 bond payments that are due or will be due within thirty days after the date the income 07 is withdrawn. Income withdrawn from the fund under this subsection and used for 08 bond payments is not subject to appropriation. 09 (c) At the end of each fiscal year after withdrawals for bond payments under 10 (b) of this section have been made, the balance of the income of the public facilities 11 capital fund may be appropriated only for acquisition, construction, and major 12 maintenance and renovation of roads and highways, schools, airports, harbors and 13 ports, water and sewer projects, correctional facilities, and buildings. Income from the 14 fund may be appropriated only if the capital project is wholly owned by the State, by 15 a municipality or school district of the State, or by the University of Alaska. Income 16 from the fund may not be appropriated for ongoing operating expenses of public 17 facilities. On February 1 of each fiscal year, the Alaska Permanent Fund Corporation 18 shall report to the legislature the amount of fund income that will be available for 19 appropriation at the end of that fiscal year. Section 7 of this article does not apply to 20 appropriations made under this subsection. 21 (d) Income from the public facilities capital fund that is appropriated under (c) 22 of this section for a capital project owned by a municipality or school district may be 23 expended only if the municipality or school district makes a contribution of local 24 money or land for the project as established by law. 25 * Sec. 5. The amendments proposed by this resolution shall be placed before the voters of 26 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 27 State of Alaska, and the election laws of the state.