Legislature(2021 - 2022)

2021-02-18 House Journal

Full Journal pdf

2021-02-18                     House Journal                      Page 0106
HJR 7                                                                                                                         
HOUSE JOINT RESOLUTION NO. 7 by the House Rules Committee                                                                       
by request of the Governor:                                                                                                     
     Proposing amendments to the Constitution of the State of Alaska                                                            
     relating to the Alaska permanent fund, appropriations from the                                                             
     permanent fund, and the permanent fund dividend.                                                                           

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was read the first time and referred to the State Affairs, Judiciary, and                                                       
Finance Committees.                                                                                                             
The following fiscal note(s) apply:                                                                                             
1.  Zero, Office of the Governor                                                                                                
The Governor's transmittal letter dated January 19 follows:                                                                     
"Dear Chief Clerk:                                                                                                              
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a resolution to amend the Constitution                                                          
of the State of Alaska, Article IX, Section 15. The proposed                                                                    
amendment would establish a percent-of-market-value (POMV) rule                                                                 
to limit annual expenditures from the permanent fund and establish the                                                          
permanent fund dividend (PFD) in the Alaska Constitution.                                                                       
Since it was created by constitutional amendment in 1976, the                                                                   
permanent fund has become a vital component to Alaska's financial                                                               
and economic health. Alaskans had the foresight to ensure that a                                                                
portion of Alaska's newfound oil wealth would be saved for the future                                                           
benefit of our state. The PFD, established soon thereafter, has created                                                         
a critical link between the people and their government by providing                                                            
every Alaskan a share of the state's natural resource wealth.                                                                   
Today, the permanent fund and the earnings it generates are Alaska's                                                            
largest source of revenue. It has never been more important for us to                                                           
increase protections of the fund for future generations. I'm proposing                                                          
the adoption of a spending rule limiting yearly withdraws to a                                                                  
percentage of its market value as the most effective means to preserve                                                          
the fund. The resolution would also require that a portion of funds                                                             
withdrawn be used for a dividend and require that any future change to                                                          
the dividend program be approved by the voters.                                                                                 
With this resolution, we respect the will of the people and the                                                                 
Constitutional Convention delegates who wanted all Alaskans to                                                                  
benefit from our state's natural resources. The resolution will protect                                                         
the permanent fund and the dividend program. I urge your prompt and                                                             
favorable action on this measure.                                                                                               

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This amendment would be placed before the voters at the next state                                                              
general election.                                                                                                               
Mike Dunleavy