00               CS FOR HOUSE JOINT RESOLUTION NO. 26(W&M)                                                                
01 Proposing amendments to the Constitution of the State of Alaska relating to and limiting                                
02 appropriations from the Alaska permanent fund based on an averaged percent of the                                       
03 fund market value to protect the fund from inflation and assure that the real value of                                  
04 the fund will be preserved over the long term.                                                                          
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.                               
10       Except as appropriated under  (b) of this section, money in the permanent fund [,                             
11       THE PRINCIPAL OF WHICH] shall be used only for those income-producing                                             
12       investments specifically designated by law as eligible for permanent fund investments.                            
13       [ALL INCOME FROM THE PERMANENT FUND SHALL BE DEPOSITED IN                                                         
14       THE GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW.]                                                               
15    * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                        

01 new subsection to read:                                                                                                 
02            (b)  To protect the permanent fund from the effects of inflation and thereby                                 
03       assure that the real value of the permanent fund will be preserved over the long term,                            
04       appropriations from the permanent fund for a fiscal year may not exceed five percent                              
05       of the average of the market values of the fund on June 30 for the first five of the six                          
06       fiscal years immediately preceding that fiscal year.                                                              
07    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
08 section to read:                                                                                                        
09            Section 30.  Transition.  On the effective date of the 2004 amendment relating                             
10       to the Alaska Permanent Fund (art. IX, sec. 15), the unencumbered, unappropriated                                 
11       balance of the earnings reserve account established under AS 37.13.145(a) is added to                             
12       the balance in the Alaska Permanent Fund.                                                                         
13    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
14 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
15 State of Alaska, and the election laws of the state.