CSHJR 26(FIN) am S(fld S): Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, establishing the earnings account, and permitting deposits to the principal of the permanent fund; and providing for an effective date for the amendments.
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.