ATTACHMENT A THE STATE Department of Law OJALASKA CIVIL DIVISION P.O. Box 310300 Juneau. Atosko 998] I Moln: 907.465.3600 Fax: 907 465.2520 GOVERNOR BILL WALKER May 1,2018 The Honorable Bill Walker Governor State of Alaska P.O. Box 110001 Juneau, Alaska 99811-000] Re: HB 287: Appropriations: Pupil education and transportation: (SCS HB Our ?le: 2018200330 Dear Governor Walker: At the request of your legislative director, we have reviewed SCS HB 287 (FIN), an appropriation bill making appropriations for ?scal years 2019 and 2020 for public education and transportation of students. Since this is an apprOpriation bill, it is exempt from the constitutional requirement that it be con?ned to one subject; however, since it is an appropriation bill it ?shall be con?ned to appropriations? (art. II, sec. 13, Constitution of the State of Alaska). Accordingly, you may ?veto, strike, or reduce items? in the bill (art. 11, sec. 15, Constitution of the State of Alaska). Further, some provisions of this bill are contingent upon enactment of a separate bill - Senate bill 26, a bill primarily relating to spending from the earnings of the Alaska permanent ?lnd. Sections 1, 2, and 3 of the bill present typical appropriation provisions to apprOpriate to the Department of Education and Early Development aid to school districts, support, and appropriations for Mt. Edgecumbe boarding school. Section 2 details the funding by agency (federal receipts, unrestricted general ?md, etc.) for the made in sec. 1. Next, Section 3 sets out the statewide funding sources for appropriations made in sec. 1 (unrestricted or designated general ?mds, public school trust ?mds, statutory designated program receipts, federal receipts, and interagency receipts). Except for the fact this bill addresses only education ?mding, nothing appears unusual about secs. 1 3. The Honorable Bill Walker, Governor May 1, 2018 Our ?le: 2018200330 Page 2 of 3 Sections 5(a) and are fund capitalization provisions that apprOpriate from the general fund to the public education ?rnd. Sections 4, and 5(d) include education related appropriations for ?scal year 2020 from the general fund. Pursuant to see. 8, these appropriations do not take effect until July 1, 2019. Although not common, it is permissible for the legislature to include in a budget bill appropriations for ?rture ?scal years. These appropriations do not bind a ?Jture legislature because a future legislature can always amend, reappropriate, or repeal the future appropriations. Section 6 provides that the apprOpriations in sec. 5 are for the capitalization of a fund and do not lapse. Section 7 is a contingency provision. It provides that the ?scal year 2020 appropriations in sections 4, and 5(d) are contingent on passage and enactment into law by the Thirtieth Alaska State Legislature of a version of Senate Bill 26. Senate Bill 26 pr0poses a ?'amework for the spending of permanent fund income. The Alaska Supreme Court has found that contingency language should be subject to the same analysis as legislative intent language.l This requires consideration of whether such a provision violates the con?nement clause of the Alaska Constitution which states that "[b]ills for appropriations shall be con?ned to appropriations.? Alaska courts have used a ?ve factor test to determine whether language added to an appropriations bill violates the con?nement clause. Under this test (the Hammond factors), the qualifying language must (1) not administer the program of expenditures; (2) not enact law or amend existing law; (3) be the minimum necessary to explain the legislature's intent regarding how the money appropriated is to be Spent; (4) be germane, that is, appropriate, to an appropriations bill; and (5) not extend beyond the life of the appropriation.3 Here, an appropriation to ?rnd education for ?scal year 2020 appears to be reasonably related (germane) to the contingency provision regarding enactment into law of SB 26 given that SB 26 concerns a possible funding source for the ?rture appropriations.? Additionally, we would raise constitutional concerns if the linkage between enactment of SB 26 into law and the appropriations would infringe on the govemor?s veto authority. We do not see such an issue with sec. 4 as it establishes a $30,000,000 appropriation and you could reduce or strike that amount. Section 5(c) and presents unusual language because the provisions do not include an estimated amount, likely because the legislature is not able to determine an amount given that these appropriations are for ?scal year 2020. In these circumstances, you could strike language concerning the estimated 1 See Alaska Legislative Council v. Knowles, 21 P.3d 367, 373-84 (Alaska 2001). 2 Art. II, sec. 13. 3 Alaska Legislative Council, 21 P.3d 367, 377 (Alaska 2001). 4 Under the gerrnaneness test, courts will generally uphold conditions expressed for purposes of the appropriation. Id. The Honorable Bill Walker, Governor May I, 2018 Our ?le: 2018200330 Page 3 of 3 amount so long as it did not alter the purpose of the appropriation.5 We are available for additional consultation on that issue if desired. We have identi?ed no other constitutional or legal issues in the bill. We will assist the agencies throughout the year in interpreting and applying the provisions of the bill, as well as related legislation, to make certain that appropriations are implemented in a manner that is consistent with enabling statutes and valid legislative intent. Sincerely, JAHNA LINDEMUTH ATTORNEY GENERAL William E. Milks Senior Assistant Attorney General Labor and State Affairs Section By: 5 See Wielechowski v. State. 403 P.3d 1141 (Alaska 2017).