00                      HOUSE JOINT RESOLUTION NO. 46                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to the                                         
02 principal of the Alaska permanent fund; limiting appropriations from the Alaska                                         
03 permanent fund to amounts equal to that part of the market value of the fund that                                       
04 exceeds the principal based on an averaged percent of the fund market value.                                            
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.  Only                              
12       amounts equal to that part of the market value of the fund that exceeds the                                   
13       principal may be appropriated, subject to (b) of this section.  The principal of the                          
14       fund equals $22,988,019,019.78 plus the sum of the following deposits made                                    
15       between June 30, 2003, and the date the principal is being determined:                                        

01                 (1)  all deposits to the fund made under this subsection; and                                       
02                 (2)  all appropriations made to the principal [ALL INCOME FROM                                      
03       THE PERMANENT FUND SHALL BE DEPOSITED IN THE GENERAL FUND                                                         
04       UNLESS OTHERWISE PROVIDED BY LAW].                                                                                
05    * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                        
06 new subsection to read:                                                                                                 
07                 (b)  Appropriations from the permanent fund for a fiscal year may not                                   
08       exceed five percent of the average of the market values of the fund on June 30 for the                            
09       first five of the six fiscal years immediately preceding that fiscal year.                                        
10    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
11 section to read:                                                                                                        
12            Section 30.  Transition.  (a)  On the effective date of the 2004 amendment                                 
13       relating to the Alaska permanent fund (art. IX, sec. 15), the unencumbered,                                       
14       unappropriated balance of the earnings reserve account established under                                          
15       AS 37.13.145(a) is added to the Alaska permanent fund, but not as part of the                                     
16       principal.                                                                                                        
17            (b)  The 2004 amendment relating to the Alaska permanent fund first applies to                               
18       appropriations for fiscal year 2006.  Appropriations from the permanent fund for fiscal                           
19       year 2005 are subject to Section 15 of Article IX as that section read on June 30, 2004.                          
20    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
21 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
22 State of Alaska, and the election laws of the state.