Bill Summary – FastDemocracy

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                                          HOUSE BILL NO. 4006
                        IN THE LEGISLATURE OF THE STATE OF ALASKA
                 THIRTY-SECOND LEGISLATURE - FOURTH SPECIAL SESSION
     BY REPRESENTATIVES KAUFMAN, Rasmussen
     Introduced: 10/4/21
     Referred: Judiciary, House Special Committee on Ways and Means, Finance
                                                   A BILL
                                        FOR AN ACT ENTITLED
 "An Act relating to an appropriation limit; relating to the budget responsibilities of the
 governor; and providing for an effective date."
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
   * Section 1. AS 37.05.540(b) is amended to read:
                  (b) Except for appropriations to the permanent fund or for Alaska permanent
         fund dividends, appropriations to the budget reserve fund, appropriations of revenue
         bond and general obligation bond proceeds, appropriations required to pay the
         principal of and interest on revenue bonds and general obligation bonds,
         appropriations to a state account or fund that requires a subsequent
         appropriation from that account or fund as prescribed by law, appropriations to
         meet a state of disaster declared by the governor as prescribed by law, [AND]
         appropriations of money received from a nonstate source in trust for a specific purpose
         [, INCLUDING REVENUE OF A PUBLIC ENTERPRISE OR PUBLIC
         CORPORATION OF THE STATE THAT ISSUES REVENUE BONDS],
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       appropriations from the mental health trust settlement income account (AS 37.14.036),
       and appropriations made to the mental health trust fund (AS 37.14.031),
       appropriations from the treasury made for [IN] a fiscal year may not exceed an
       amount equal to 11.5 percent of the average of the value of the real gross
       domestic product of the state reported by the Bureau of Economic Analysis in the
       United States Department of Commerce for the five fiscal years immediately
       preceding the previous fiscal year. The value of the real gross domestic product
       in this section may not include expenditures for government spending
       [APPROPRIATIONS MADE IN THE PRECEDING FISCAL YEAR BY MORE
       THAN FIVE PERCENT PLUS THE CHANGE IN POPULATION AND
       INFLATION SINCE THE BEGINNING OF THE PRECEDING FISCAL YEAR].
       For purposes of applying this limit, an appropriation is considered to be made in the
       fiscal year in which it is enacted and a reappropriation remains attributed to the fiscal
       year in which the original appropriation is enacted. [THE DETERMINATION OF
       THE CHANGE IN POPULATION FOR PURPOSES OF THIS SUBSECTION
       SHALL BE BASED ON AN ANNUAL ESTIMATE OF POPULATION BY THE
       DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT. THE
       DETERMINATION OF THE CHANGE IN INFLATION FOR PURPOSES OF THIS
       SUBSECTION SHALL BE BASED ON THE CONSUMER PRICE INDEX FOR
       ALL URBAN CONSUMERS FOR ANCHORAGE PREPARED BY THE UNITED
       STATES BUREAU OF LABOR STATISTICS.] The amount of money received by
       the state that is subject to the appropriation limit includes the balance in the general
       fund carried forward from the preceding fiscal year.
  * Sec. 2. AS 37.07.020 is amended by adding a new subsection to read:
              (f) In addition to the budget and bills submitted under (a) of this section and
       the capital improvements program and fiscal plan submitted under (b) of this section,
       the governor shall submit a report with a calculation of appropriations provided in the
       budget prepared under (a) of this section as applied to the appropriation limit under
       AS 37.05.540. The governor shall update the report upon submission of the governor's
       supplemental appropriation bills and the governor's budget amendments in accordance
       with the time limits prescribed in AS 37.07.070.
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  * Sec. 3. AS 37.05.540(e) is repealed.
  * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to
 read:
         CONDITIONAL EFFECT. This Act is contingent on enactment into law of an
 amendment to art. IX, sec. 16, Constitution of the State of Alaska, changing the appropriation
 limit to provide that
                (1) appropriations from the treasury made for a fiscal year may not exceed an
 amount equal to a percentage of the average of the value of the real gross domestic product of
 the state reported by federal indices as prescribed by law for the five fiscal years immediately
 preceding the previous fiscal year; and
                (2)      general obligation bond proceeds, appropriations required to pay the
 principal of and interest on revenue bonds, appropriations to a state account or fund that
 requires a subsequent appropriation from that account or fund as prescribed by law, and
 appropriations to meet a state of disaster declared by the governor as prescribed by law must
 be excluded when calculating the appropriation limit.
  * Sec. 5. This Act takes effect July 1, 2023.
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Statutes affected: 
HB4006A, AM HB 4006, introduced 10/04/2021: 37.05.540, 37.14.036, 37.14.031, 37.07.020, 37.07.070