Legislature(2003 - 2004)
2004-05-07 Senate Journal
Full Journal pdf2004-05-07 Senate Journal Page 3436 HJR 26 CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) Proposing amendments to the Constitution of the State of Alaska relating to and limiting appropriations from the Alaska permanent fund based on an averaged percent of the fund market value, was read the third time. Senator French moved that the resolution be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Without objection, the resolution was returned to second reading. Senator French offered Amendment No. 1 : Page 2, line 3, following "year.": Insert "Appropriations from the fund for a fiscal year may be made only as follows: (1) two-thirds of the total amount appropriated for a fiscal year shall be used for a program of annual permanent fund dividend payments to State residents established by law; (2) one-third of the total amount appropriated for a fiscal year shall be appropriated to the general fund." 2004-05-07 Senate Journal Page 3437 Senator French moved for the adoption of Amendment No. 1. Senator Ben Stevens objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSHJR 26(FIN) Second Reading Amendment No. 1 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Davis, Ellis, Elton, French, Guess, Hoffman, Lincoln, Olson Nays: Bunde, Cowdery, Dyson, Green, Ogan, Seekins, Stedman, Stevens B, Stevens G, Therriault, Wagoner, Wilken and so, Amendment No. 1 failed. CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) was automatically in third reading. In accordance with Mason's Manual Rule 583, President Therriault relinquished the chair to Senator Ben Stevens, President pro tempore, in order to participate in debate. Senator Therriault moved that the resolution be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the resolution was returned to second reading. Senator Therriault offered Amendment No. 2 : Page 1, line 1, through page 2, line 12: Delete all material and insert: "Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, establishing the earnings account, and permitting distribution from the account only for costs of administering the permanent fund, permanent fund dividends, public education, and deposits to the principal of the permanent fund; and providing for an effective date for the amendments. 2004-05-07 Senate Journal Page 3438 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read: Section 15. Alaska Permanent Fund. (a) At least twenty- five per cent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments and bonuses received by the State shall be placed in a permanent fund, the principal of which shall be used only for those income-producing investments specifically designated by law as eligible for permanent fund investments. The earnings account is established as a separate account in the fund. All income from the permanent fund, determined in accordance with generally accepted accounting principles as provided by law, shall be accounted for [DEPOSITED] in the earnings account. Appropriations may only be made from the earnings account as provided in (b) and (c) of this section [GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW]. * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding new subsections to read: (b) Appropriations under this subsection from the earnings account for a fiscal year may not exceed five percent of the average of the market values of the fund on June 30 for the first five of the six fiscal years immediately preceding that fiscal year. Appropriations from the earnings account may be made only for the following purposes: (1) costs of administering the permanent fund; (2) a program of dividend payments for State residents established by law; and (3) public education. (c) Appropriations from the earnings account to the principal of the permanent fund may be made at any time. * Sec. 3. Article XV, Constitution of the State of Alaska, is amended by adding a new section to read: Section 30. Transition; Effective Date. (a) On January 1, 2005, the unencumbered, unappropriated balance of the earnings reserve account established under AS 37.13.145(a) becomes part of the Alaska permanent fund, and the fund shall be reconstituted as follows: 2004-05-07 Senate Journal Page 3439 (1) the fund principal consists of that portion of the total fund value attributable to all deposits made under Section 15 of Article IX before January 1, 2005, all appropriations made to the fund principal before January 1, 2005, and all other transfers made to the fund principal before January 1, 2005; (2) the earnings account consists of that portion of the total fund value not attributed to principal under (1) of this subsection. (b) Section 15(b) of Article IX first applies to appropriations for fiscal year 2006. Appropriations from the permanent fund for fiscal year 2005 are subject to Section 15 of Article IX as that section read on June 30, 2004. (c) The 2004 amendments relating to the Alaska permanent fund (art. IX, sec. 15) and this section take effect January 1, 2005." Senator Therriault moved for the adoption of Amendment No. 2. Senator Guess objected. Senator Cowdery called the Senate. The call was satisfied. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHJR 26(FIN) Second Reading Amendment No. 2 YEAS: 6 NAYS: 14 EXCUSED: 0 ABSENT: 0 Yeas: Cowdery, Dyson, Green, Seekins, Stevens G, Therriault Nays: Bunde, Davis, Ellis, Elton, French, Guess, Hoffman, Lincoln, Ogan, Olson, Stedman, Stevens B, Wagoner, Wilken and so, Amendment No. 2 failed. CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) was automatically in third reading. 2004-05-07 Senate Journal Page 3440 Senator Therriault moved that the resolution be returned to second reading for the purpose of a specific amendment, that being Amendment No. 3. Without objection, the resolution was returned to second reading. Senator Therriault offered Amendment No. 3 : Page 1, line 1, through page 2, line 12: Delete all material and insert: "Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, establishing the earnings account, and permitting deposits to the principal of the permanent fund; and providing for an effective date for the amendments. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read: Section 15. Alaska Permanent Fund. (a) At least twenty-five per cent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments and bonuses received by the State shall be placed in a permanent fund, the principal of which shall be used only for those income-producing investments specifically designated by law as eligible for permanent fund investments. The earnings account is established as a separate account in the fund. All income from the permanent fund, determined in accordance with generally accepted accounting principles as provided by law, shall be accounted for [DEPOSITED] in the earnings account. Appropriations may only be made from the earnings account as provided in (b) and (c) of this section [GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW]. * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding new subsections to read: (b) Appropriations under this subsection from the earnings account for a fiscal year may not exceed five percent of the average of the market values of the fund on June 30 for the first five of the six fiscal years immediately preceding that fiscal year. 2004-05-07 Senate Journal Page 3441 (c) Appropriations from the earnings account to the principal of the permanent fund may be made at any time. * Sec. 3. Article XV, Constitution of the State of Alaska, is amended by adding a new section to read: Section 30. Transition; Effective Date. (a) On January 1, 2005, the unencumbered, unappropriated balance of the earnings reserve account established under AS 37.13.145(a) becomes part of the Alaska permanent fund, and the fund shall be reconstituted as follows: (1) the fund principal consists of that portion of the total fund value attributable to all deposits made under Section 15 of Article IX before January 1, 2005, all appropriations made to the fund principal before January 1, 2005, and all other transfers made to the fund principal before January 1, 2005; (2) the earnings account consists of that portion of the total fund value not attributed to principal under (1) of this subsection. (b) Section 15(b) of Article IX first applies to appropriations for fiscal year 2006. Appropriations from the permanent fund for fiscal year 2005 are subject to Section 15 of Article IX as that section read on June 30, 2004. (c) The 2004 amendments relating to the Alaska permanent fund (art. IX, sec. 15) and this section take effect January 1, 2005." Senator Therriault moved for the adoption of Amendment No. 3. Senator Ellis objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHJR 26(FIN) Second Reading Amendment No. 3 YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Bunde, Cowdery, Dyson, Green, Guess, Hoffman, Seekins, Stedman, Stevens G, Therriault, Wagoner, Wilken Nays: Davis, Ellis, Elton, French, Lincoln, Ogan, Olson, Stevens B 2004-05-07 Senate Journal Page 3442 and so, Amendment No. 3 was adopted. CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, establishing the earnings account, and permitting deposits to the principal of the permanent fund; and providing for an effective date for the amendments, was automatically in third reading. President Therriault and Senator Ben Stevens resumed their original places. Senator Guess called the Senate. The call was satisfied. The question being: "Shall CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, establishing the earnings account, and permitting deposits to the principal of the permanent fund; and providing for an effective date for the amendments, pass the Senate?" The roll was taken with the following result: CSHJR 26(FIN) am S Third Reading - Final Passage YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Bunde, Seekins, Stedman, Stevens G, Therriault Nays: Cowdery, Davis, Dyson, Ellis, Elton, French, Green, Guess, Hoffman, Lincoln, Ogan, Olson, Stevens B, Wagoner, Wilken and so, CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S failed to pass the Senate. Senator Ben Stevens gave notice of reconsideration on CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S(fld S).