STATE CAPITOL PO. Box luneau. AK 998ll-000l 907-465-3500 550 West Seventh Avenue, Suite I700 Anchorage. AK 907?269?7450 Governor Michael J. Dunleavy 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 1. The proposed amendment would provide that any law to establish or increase a State tax any tax will not take effect without an af?rmative vote of the people. Additionally, the proposed amendment would require any initiative passed by the voters that would establish or increase a state tax would not take effect unless approved by the legislature. I propose this measure as the most effective means to require State government to involve all Alaskans in the decision to levy or increase taxes to pay for State services. My proposal retains taxing power with the legislature but ensures that the legislature must listen to the voice of the people, which is exercised through the ballot box. This amendment would be placed before the voters during the next state general election. Our State cannot achieve a permanent ?scal plan if Alaskans are not directly involved in the decisions about the types and levels of State services they desire and are willing to support. With this resolution, we can establish an effective way to implement the will of the people and move the State forward in a transparent and positive manner. All government of?cials work for the people of the State of Alaska. I urge your prompt and favorable action on this measure. Sincerely, ?ag/r; Michael J. Dunleavy Governor Enclosure 10 12 13 14 15 SENATE JOINT RESOLUTION NO. IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FIRST 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 prohibiting the establishment of, or increase to, a state tax without the approval of the voters of the state; and relating to the initiative process. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: Section 1. Article IX, sec. 1, Constitution of the State of Alaska, is amended by adding new subsections to read: Any law enacted under Sections 14 - 18 of Article II establishing a state tax or increasing the rate of an existing state tax 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 becomes 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. -1- New Text Underlined TEXT Any law enacted by the voters through the initiative process under Article XI establishing a state tax or increasing the rate of an existing state tax shall not take effect unless the legislature, by resolution, approves the initiated law by a majority vote in joint session by adjournment of the next regular session occurring after the lieutenant governor certi?es the election returns. If approved by the legislature, the initiated law becomes effective ninety days after approval. If the legislature fails to approve the initiated law by adjournment of the regular session, the initiated law is rejected and does not take effect. Sec. 2. Article XI, sec. 6, Constitution of the State of Alaska, is amended to read: Section 6. Enactment. If a majority of the votes cast on the proposition favor its adoption, the initiated measure is enacted. If a majority of the votes cast on the proposition favor the rejection of an act referred, it is rejected. The lieutenant governor shall certify the election returns. Except as provided in Section 1 of Article 'i an initiated law becomes effective ninety days after certi?cation, is not subject to veto, and may not be repealed by the legislature within two years of its effective date. It may be amended at any time. An act rejected by referendum is void thirty days after certi?cation. Additional procedures for the initiative and referendum may be prescribed by law. Sec. 3. 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 BRACKETEDJ