STATE CAPITOL PO. Box luneau, AK 998 907-465-3500 550 West Seventh Avenue. Suite I700 Anchorage, AK 9950l 907-269-7450 Governor Michael J. Dunleaw STATE OF ALASKA January 29, 2019 The Honorable Cathy Giessel Senate President Alaska State Legislature State Capitol, Room 111 Juneau, AK 99801 Dear President Giessel: Under the authority of Article 111, Section 18, of the Alaska Constitution, I am transmitting a resolution to amend the Constitution of the State of Alaska, Article IX, Section 15. For decades, the Alaska Permanent Fund and the Alaska Permanent Fund Dividend (PFD) have functioned as intended. Its recent politicization has broken trust with Alaskans, taken important dollars from our state economy, and placed a direct ?nancial burden on Alaskans and their families without an af?rmative vote of the people. The proposed amendment would constitutionally protect the people?s right to determine the future of the PFD. The amendment requires voter approval for any changes to the existing dividend program in the future. The PFD creates a vital connection between the people and the government by providing every Alaskan a share of our great state?s natural resources. Distributing a dividend which is based on performance of the fund also creates an important connection between its owners and the activities and investments that provide the fund?s security and growth. I propose this measure as the most effective means of protecting the PFD and ensuring its sustainable use for generations to come. The principle of the Alaska Permanent Fund is constitutionally protected, and I believe that Alaskans share of the common resource wealth should also be protected. Any change to the statutory PFD formula would require a vote of the people. It is Alaskans? PFD and I trust them with its future. This amendment would be placed before the voters at the next state general election. Sincerely, Michael J. Dunleavy Governor Enclosure SENATE JOINT RESOLUTION NO. IN THE LEGISLATURE OF THE STATE OF ALASKA LEGISLATURE - FIRST SESSION BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR Introduced: Referred: A RESOLUTION Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund and the permanent fund dividend. 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. At least twenty-?ve percent 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 speci?cally designated by law as eligible for permanent fund investments. Except as provided under of Lhi_s section, all income from the pem1anent fund shall be deposited in the 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: Each ?scal year, a portion of the income from the permanent fund shall be transferred solely for a program of dividend payments to state residents as provided by -1- New Text Underlined TEXT the law as that law read on January 1, 2019, subject to any law approved by the voters under of this section. No appropriation under Section 13 of this article shall be necessary under this subsection. Any law enacted under Sections 14 - 18 of Article II that would amend the program of dividend payments to state residents under of this section, including the amount of the dividend and eligibility requirements, shall not take effect unless approved by the voters of the state in the next statewide election held more than one hundred twenty days from enactment of the proposed law. The lieutenant governor shall prepare a ballot title and proposition summarizing the proposed law, and shall place it on the ballot. If a majority of the votes cast on the proposition favor its adoption, it shall become effective ninety days after the certi?cation of the election returns by the lieutenant governor. If a majority of votes cast on the proposition favor its rejection, the proposed law is rejected and does not take effect. Sec. 3. Article XV, Constitution of the State of Alaska, is amended by adding a new section to read: Section 30. Permanent Fund Amendments: Transition. For purposes of the 2020 amendments to the permanent fund (art. IX, sec. 15), the law in place January 1, 2019 is the program of dividend payments under Section 15(b) of Article IX, subject to the enactment of a law amending the program of dividend payments in accordance with the requirements of Section 15(c) of Article IX. Any amendments to the program of dividend payments enacted after January 1, 2019, but prior to January 1, 2021, are repealed. Sec. 4. The amendments proposed by this resolution shall be placed before the voters of the state at the next general election in conformity with art. sec. 1, Constitution of the State of Alaska, and the election laws of the state. -2- New Text Underlined TEXT