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HJR 3: Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund.

00                        HOUSE JOINT RESOLUTION NO. 3                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska                                  
02 permanent fund.                                                                                                         
03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:                        
05            Section 15.  Alaska Permanent Fund.  (a)  At least twenty-five per cent of all                         
06       mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                          
07       payments and bonuses received by the State shall be placed in a permanent fund, the                               
08       principal of which shall be used only for those income-producing investments                                      
09       specifically designated by law as eligible for permanent fund investments.  All income                            
10       from the permanent fund shall be deposited in the permanent [GENERAL] fund                                    
11       [UNLESS OTHERWISE PROVIDED BY LAW].                                                                               
12            (b)  For any fiscal year, appropriations from the permanent fund shall be                                
13       limited to five percent of the average of the year-end market values of the                                   
14       permanent fund for the last five fiscal years, including the fiscal year just ended.                          
15       No other appropriations from the permanent fund may be made.                                                  
16            (c)  At least fifty percent of the amount appropriated under (b) of this                                 
01       section during a fiscal year shall be used during that same fiscal year for a                                 
02       program of dividend payments to state residents established by law.                                           
03    * Sec. 2.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
04 section to read:                                                                                                        
05            Section 30.  Suspension and Repeal of Subsection.  (a)  Notwithstanding                                    
06       Section 1 of Article XIII, Section 15(c) of Article IX is suspended on the date of an                             
07       initial determination by the Internal Revenue Service that all or a portion of the                                
08       permanent fund is subject to federal taxation.  The suspension is terminated on the                               
09       date Section 15(c) of Article IX is repealed under (b) of this section or 180 days after                          
10       the date of a final, nonappealable judgment or order by a federal court deciding that no                          
11       portion of the permanent fund would be subject to federal taxation as a result of the                             
12       application of Section 15(c) of Article IX.                                                                       
13            (b)  Notwithstanding Section 1 of Article XIII, Section 15(c) of Article IX is                               
14       repealed 180 days after the date of a final, nonappealable judgment or order by a                                 
15       federal court deciding that all or a portion of the permanent fund is subject to federal                          
16       taxation.                                                                                                         
17            (c)  In this section, "final, nonappealable judgment or order" means a judgment                              
18       or an order that cannot be appealed because all possible appeals, including a petition                            
19       for certiorari to the United States Supreme Court, have been taken or the time for                                
20       taking an appeal has expired without appeal.                                                                      
21    * Sec. 3.  The amendments proposed by this resolution shall be placed before the voters of                         
22 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
23 State of Alaska, and the election laws of the state.