00             CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN) am S(fld S)                                                       
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska                                  
02 permanent fund, establishing the earnings account, and permitting deposits to the                                       
03 principal of the permanent fund; and providing for an effective date for the                                            
04 amendments.                                                                                                             
05 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
06    * Section 1.  Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:                        
07            Section 15.  Alaska Permanent Fund.  (a)  At least twenty-five per cent of all                         
08       mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                          
09       payments and bonuses received by the State shall be placed in a 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.  The                               
12       earnings account is established as a separate account in the fund.  All income                                
13       from the permanent fund, determined in accordance with generally accepted                                     
14       accounting principles as provided by law, shall be accounted for [DEPOSITED] in                           
15       the earnings account.  Appropriations may only be made from the earnings                                      
01       account as provided in (b) and (c) of this section [GENERAL FUND UNLESS                                       
02       OTHERWISE PROVIDED BY LAW].                                                                                       
03    * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding new                      
04 subsections to read:                                                                                                    
05                 (b)  Appropriations under this subsection from the earnings account for                                 
06       a fiscal year may not exceed five percent of the average of the market values of the                              
07       fund on June 30 for the first five of the six fiscal years immediately preceding that                             
08       fiscal year.                                                                                                      
09            (c)  Appropriations from the earnings account to the principal of the permanent                              
10       fund may be made at any time.                                                                                     
11    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
12 section to read:                                                                                                        
13            Section 30.  Transition; Effective Date.  (a)  On January 1, 2005, the                                     
14       unencumbered, unappropriated balance of the earnings reserve account established                                  
15       under AS 37.13.145(a) becomes part of the Alaska permanent fund, and the fund shall                               
16       be reconstituted as follows:                                                                                      
17                 (1)  the fund principal consists of that portion of the total fund value                                
18       attributable to all deposits made under Section 15 of Article IX before January 1,                                
19       2005, all appropriations made to the fund principal before January 1, 2005, and all                               
20       other transfers made to the fund principal before January 1, 2005;                                                
21                 (2)  the earnings account consists of that portion of the total fund value                              
22       not attributed to principal under (1) of this subsection.                                                         
23            (b)  Section 15(b) of Article IX first applies to appropriations for fiscal year                             
24       2006.  Appropriations from the permanent fund for fiscal year 2005 are subject to                                 
25       Section 15 of Article IX as that section read on June 30, 2004.                                                   
26            (c)  The 2004 amendments relating to the Alaska permanent fund (art. IX, sec.                                
27       15) and this section take effect January 1, 2005.                                                                 
28    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
29 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
30 State of Alaska, and the election laws of the state.