HJR 26: Proposing amendments to the Constitution of the State of Alaska relating to and limiting appropriations from and inflation-proofing the Alaska permanent fund by establishing a percent of market value spending limit.
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.