HJR 404: Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit; and proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, appropriations from the Alaska permanent fund, and a dividend from the Alaska permanent fund.
00 HOUSE JOINT RESOLUTION NO. 404 01 Proposing amendments to the Constitution of the State of Alaska relating to an 02 appropriation limit; and proposing amendments to the Constitution of the State of 03 Alaska relating to the Alaska permanent fund, appropriations from the Alaska 04 permanent fund, and a dividend from the Alaska permanent 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 percent of all 08 mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing 09 payments and bonuses received by the State shall be placed in a permanent fund, 10 [THE PRINCIPAL OF] which shall be used [ONLY] for [THOSE] income-producing 11 investments specifically designated by law as eligible for permanent fund investments. 12 The principal and [ALL] income from the permanent fund shall be retained 13 [DEPOSITED] in the permanent [GENERAL] fund. Appropriations may only be 14 made from the permanent fund as provided in (b) of this section [UNLESS 15 OTHERWISE PROVIDED BY LAW].
01 * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a 02 new subsection to read: 03 (b) The net income of the permanent fund shall be computed annually. The 04 amount available for distribution from the permanent fund equals twenty-one percent 05 of the average annual net income of the permanent fund for the last five fiscal years. 06 Each fiscal year, an amount equal to fifty percent of the amount available for 07 distribution from the permanent fund shall be transferred from the permanent fund to a 08 dividend fund for payments to eligible residents of the State. Each fiscal year, the 09 legislature may appropriate from the permanent fund not more than an amount equal 10 to fifty percent of the amount available for distribution from the permanent fund, less 11 the amount necessary to offset the effect of inflation on the fund during that fiscal 12 year. The amount necessary to offset the effect of inflation shall be retained in the 13 permanent fund. 14 * Sec. 3. Article IX, sec. 16, Constitution of the State of Alaska, is amended to read: 15 Section 16. Appropriation Limit. (a) Except for appropriations of money 16 received from the federal government, appropriations to the permanent fund 17 under Section 15 of this article, appropriations of money dedicated for special 18 purposes existing on the date of ratification of Section 7 of this article 19 [APPROPRIATIONS FOR ALASKA PERMANENT FUND DIVIDENDS], 20 appropriations of revenue bond proceeds, appropriations required to pay the principal 21 and interest on general obligation bonds, and appropriations of money received from a 22 non-State source in trust for a specific purpose, including revenues of a public 23 enterprise or public corporation of the State that issues revenue bonds, appropriations 24 from the treasury made in [FOR] a fiscal year shall not exceed the average of the 25 State revenue generated in the previous three fiscal years [$2,500,000,000] by 26 more than the cumulative change [, DERIVED FROM FEDERAL INDICES AS 27 PRESCRIBED BY LAW,] in [POPULATION AND] inflation over the previous two 28 calendar years. If the annualized monthly change in inflation exceeds 10 percent 29 between the end of the second calendar year and the start of the fiscal year for 30 which the limit calculated under this subsection applies, appropriations may 31 exceed the limit by the annualized change in inflation over the six months
01 preceding the beginning of the fiscal year. Inflation under this subsection shall be 02 calculated using the United States Consumer Price Index for all urban 03 consumers, as calculated by the federal government in 1980. The average of the 04 State revenue in this section shall not include money received from the federal 05 government, inflation of the permanent fund, or loans received by the State. 06 (b) [SINCE JULY 1, 1981. WITHIN THIS LIMIT, AT LEAST ONE-THIRD 07 SHALL BE RESERVED FOR CAPITAL PROJECTS AND LOAN 08 APPROPRIATIONS. THE LEGISLATURE MAY EXCEED THIS LIMIT IN BILLS 09 FOR APPROPRIATIONS TO THE ALASKA PERMANENT FUND AND IN 10 BILLS FOR APPROPRIATIONS FOR CAPITAL PROJECTS, WHETHER OF 11 BOND PROCEEDS OR OTHERWISE, IF EACH BILL IS APPROVED BY THE 12 GOVERNOR, OR PASSED BY AFFIRMATIVE VOTE OF THREE-FOURTHS OF 13 THE MEMBERSHIP OF THE LEGISLATURE OVER A VETO OR ITEM VETO, 14 OR BECOMES LAW WITHOUT SIGNATURE, AND IS ALSO APPROVED BY 15 THE VOTERS AS PRESCRIBED BY LAW. EACH BILL FOR APPROPRIATIONS 16 FOR CAPITAL PROJECTS IN EXCESS OF THE LIMIT SHALL BE CONFINED 17 TO CAPITAL PROJECTS OF THE SAME TYPE, AND THE VOTERS SHALL, AS 18 PROVIDED BY LAW, BE INFORMED OF THE COST OF OPERATIONS AND 19 MAINTENANCE OF THE CAPITAL PROJECTS.] No other appropriation in excess 20 of this limit may be made except 21 (1) to meet a state of disaster declared by the governor as prescribed by 22 law upon affirmative vote of three-fourths of the elected members of each house 23 of the legislature; and 24 (2) to repel invasion, suppress insurrection, or defend the State in 25 war declared by the governor as prescribed by law upon affirmative vote of four- 26 fifths of the elected members of each house of the legislature. 27 (c) The governor shall cause any unexpended and unappropriated balance to 28 be invested so as to yield competitive market rates to the treasury. 29 (d) If an appropriation in excess of this limit is made under (b)(1) of this 30 section, the limit for the immediately succeeding fiscal year shall be reduced by 31 the excess amount appropriated.
01 * Sec. 4. Article XV, Constitution of the State of Alaska, is amended by adding new 02 sections to read: 03 Section 30. Permanent Fund Amendments: Transition. (a) On June 30, 04 2023, the unencumbered balance of the earnings reserve account established by law 05 shall be deposited in the Alaska permanent fund and become part of the principal of 06 the fund. 07 (b) The 2022 amendments relating to the Alaska permanent fund (art. IX, sec. 08 15) apply to appropriations made for the fiscal year ending June 30, 2024, and 09 thereafter. 10 Section 31. Appropriation Limit Amendments: Transition. (a) The 2022 11 amendments relating to an appropriation limit (art. IX, sec. 16) take effect 12 immediately upon certification of the election returns by the lieutenant governor and 13 apply to appropriations made after the amendments take effect. 14 (b) For the fiscal years ending June 30, 2024, June 30, 2025, and June 30, 15 2026, the average of the State revenue generated in the previous three fiscal years 16 under the 2022 amendments relating to an appropriation limit (art. IX, sec. 16) shall 17 not include appropriations to the dividend fund for permanent fund dividends in the 18 fiscal years ending June 30, 2021, June 30, 2022, and June 30, 2023. 19 * Sec. 5. The amendments proposed by this resolution shall be placed before the voters of 20 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 21 State of Alaska, and the election laws of the state.