SJR 18: Proposing amendments to the Constitution of the State of Alaska to guarantee the permanent fund dividend, to provide for inflation-proofing, and to require a vote of the people before spending undistributed income from the earnings reserve of the permanent fund; and relating to the permanent fund.
00SENATE JOINT RESOLUTION NO. 18 01 Proposing amendments to the Constitution of the State of Alaska to guarantee the 02 permanent fund dividend, to provide for inflation-proofing, and to require a vote 03 of the people before spending undistributed income from the earnings reserve of 04 the permanent fund; and relating to the permanent fund. 05 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. This resolution shall be known as an amendment to protect the permanent 07 fund dividend, to provide for inflation-proofing, and to require a vote of the people before 08 spending the undistributed income from the earnings reserve of the permanent fund. 09 * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read: 10 Section 15. Alaska Permanent Fund. (a) At least twenty-five per cent of all 11 mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing 12 payments and bonuses received by the State shall be placed in a permanent fund, the 13 principal of which shall be used only for those income-producing investments 14 specifically designated by law as eligible for permanent fund investments. [ALL
01 INCOME FROM THE PERMANENT FUND SHALL BE DEPOSITED IN THE 02 GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW.] 03 * Sec. 3. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding 04 new subsections to read: 05 (b) Income from the permanent fund shall be deposited into a separate account 06 in the fund, the earnings reserve account, as soon as it is received. Money in the 07 account shall be invested in investments designated by law under (a) of this section, 08 and income from the investments shall also be deposited into the account. 09 (c) Net income of the permanent fund includes income of the earnings reserve 10 account. Net income of the fund shall be computed annually as of the last day of the 11 fiscal year in accordance with generally accepted accounting principles, excluding any 12 unrealized gains or losses. At the end of each fiscal year, an amount of income 13 available for distribution shall be calculated. The income available for distribution is 14 equal to twenty-one percent of the net income of the fund for the last five fiscal years, 15 including the fiscal year just ended, but may not exceed the net income of the fund for 16 the fiscal year just ended plus the balance in the earnings reserve account. At the end 17 of each fiscal year, fifty percent of the income available for distribution shall be 18 transferred from the earnings reserve account and distributed as dividends to State 19 residents as provided by law. Income distributed as dividends is not subject to 20 appropriation; however, the amount necessary to pay the costs of administering the 21 dividend program may be appropriated for that purpose from the income transferred 22 under this subsection. 23 (d) After the transfer under (c) of this section, income shall be transferred 24 from the earnings reserve account to the principal of the permanent fund in an amount 25 sufficient to offset the effect of inflation on the principal of the fund during the fiscal 26 year just ended. The amount transferred to the principal may not exceed the balance 27 in the account and shall be calculated by 28 (1) computing the average of the monthly United States Consumer 29 Price Index for all urban consumers for each of the two previous calendar years; 30 (2) computing the percentage change between the first and second 31 calendar year averages; and
01 (3) applying that rate to the value of the principal of the fund on the 02 last day of the fiscal year just ended. 03 (e) Appropriations may be made from the earnings reserve account to the 04 principal of the permanent fund and for costs of administering the permanent fund. 05 Appropriations from the account for other purposes become effective only if referred 06 to a vote at a general election and approved by the majority of those voting. 07 * Sec. 4. The amendments proposed by this resolution shall be placed before the voters of 08 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 09 State of Alaska, and the election laws of the state.