SJR 18: Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, the Alaska resource ownership revenue account, appropriations from the permanent fund, and a dividend for state residents.
00 SENATE JOINT RESOLUTION NO. 18 01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska 02 permanent fund, the Alaska resource ownership revenue account, appropriations from 03 the permanent fund, and a dividend for state residents. 04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. Article IX, sec. 7, Constitution of the State of Alaska, is amended to read: 06 Section 7. Dedicated Funds. The proceeds of any state tax or license shall not 07 be dedicated to any special purpose, except as provided in sections [SECTION] 15 08 and 18 of this article or when required by the federal government for state 09 participation in federal programs. This provision shall not prohibit the continuance of 10 any dedication for special purposes existing upon the date of ratification of this section 11 by the people of Alaska. 12 * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read: 13 Section 15. Alaska Permanent Fund. At least twelve and one-half 14 [TWENTY-FIVE] percent of all mineral lease rentals, royalties, royalty sale proceeds, 15 federal mineral revenue sharing payments and bonuses received by the State shall be
01 placed in a permanent fund, [THE PRINCIPAL OF] which shall be used [ONLY] for 02 [THOSE] income-producing investments specifically designated by law as eligible for 03 permanent fund investments. The principal of and the income [ALL INCOME] from 04 the permanent fund shall be retained [DEPOSITED] in the [GENERAL] fund 05 [UNLESS OTHERWISE PROVIDED BY LAW]. The legislature may appropriate 06 from the fund only as provided in (b) and (c) of this section. 07 * Sec. 3. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding new 08 subsections to read: 09 (b) Each fiscal year, the legislature may appropriate from the permanent fund 10 to the general fund a percentage of the average market value of the fund. The average 11 market value of the fund is the average value of the fund for the preceding five fiscal 12 years, including the fiscal year just ended. The percentage of the average market value 13 appropriated under this subsection shall be set out in law and shall not exceed five 14 percent. The value of the fund shall be calculated on the last day of the fiscal year. 15 (c) The permanent fund may be used to pay costs associated with investments 16 made under (a) of this section. 17 * Sec. 4. Article IX, Constitution of the State of Alaska, is amended by adding a new 18 section to read: 19 Section 18. Alaska Resource Ownership Revenue Account. (a) At least 20 twelve and one-half percent of all mineral lease rentals, royalties, royalty sale 21 proceeds, federal mineral revenue sharing payments, and bonuses received by the 22 State shall be placed in the Alaska resource ownership revenue account, which shall 23 be used for income-producing investments specifically designated by law as eligible 24 for resource ownership revenue account investments. Income from the resource 25 ownership account shall be retained in the account. The legislature may appropriate 26 from the account only as provided in (b) of this section. 27 (b) Each fiscal year, the legislature may appropriate from the resource 28 ownership revenue account for the payment of dividends to residents of the State a 29 percentage of the average market value of the account. The average market value of 30 the account is the average value of the account for the preceding five fiscal years, 31 including the fiscal year just ended. The percentage of the average market value
01 appropriated under this subsection shall be set out in law and shall not exceed five 02 percent. The value of the fund shall be calculated on the last day of the fiscal year. 03 * Sec. 5. Article XV, Constitution of the State of Alaska, is amended by adding a new 04 section to read: 05 Section 30. Permanent Fund and Resource Ownership Revenue Account 06 Amendments: Transition. (a) On June 30, 2023, the unencumbered balance of the 07 earnings reserve account established by law shall be deposited in the Alaska 08 permanent fund and become part of the principal of the fund. 09 (b) Notwithstanding the restriction on the use of the principal of the permanent 10 fund in art. IX, sec. 15, on June 30, 2023, the legislature shall appropriate from the 11 Alaska permanent fund to the Alaska resource ownership revenue account the greater 12 of $6,770,000,000 or the sum of the difference between the amount calculated for 13 appropriation to the dividend account under AS 37.13.145(b), for that fiscal year, as 14 that section read on January 1, 2020, and the amount actually appropriated for 15 dividends in fiscal years 2017, 2018, 2019, 2020, 2021, 2022, and 2023. 16 (c) The 2022 amendments relating to the Alaska permanent fund (art. IX, sec. 17 15) and the Alaska resource ownership revenue account (art. IX, sec. 18) apply to 18 appropriations made for fiscal year 2024 and thereafter. 19 * Sec. 6. 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.