00                       HOUSE JOINT RESOLUTION NO. 26                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to and limiting                                
02 appropriations from and inflation-proofing the Alaska permanent fund by establishing a                                  
03 percent of market value spending limit.                                                                                 
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:                        
06            Section 15.  Alaska Permanent Fund.  (a)  At least twenty-five per cent of all                         
07       mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                          
08       payments and bonuses received by the State shall be placed in a permanent fund.                               
09       Except as provided in (b) of this section, money in the permanent fund [, THE                                 
10       PRINCIPAL OF WHICH] shall be used only for those income-producing investments                                     
11       specifically designated by law as eligible for permanent fund investments.  [ALL                                  
12       INCOME FROM THE PERMANENT FUND SHALL BE DEPOSITED IN THE                                                          
13       GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW.]                                                                   
14    * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                      
15 new subsection to read:                                                                                                 
01            (b)  Money may not be appropriated from the permanent fund unless the                                        
02       annual amount appropriated is predictable and limited so that the real value of the                               
03       permanent fund is preserved over time.  Appropriations from the permanent fund for a                              
04       fiscal year may not exceed five percent of the average of the fiscal year-end market                              
05       values of the fund for the first five of the preceding six fiscal years.                                          
06    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
07 section to read:                                                                                                        
08            Section 30.  Transition.  On the effective date of the 2004 amendment relating                             
09       to the Alaska Permanent Fund (art. IX, sec. 15), the balance of the earnings reserve                              
10       account established under AS 37.13.145(a) becomes money in the Alaska Permanent                                   
11       Fund.                                                                                                             
12    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
13 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
14 State of Alaska, and the election laws of the state.