00                      SENATE JOINT RESOLUTION NO. 19                                                                    
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 earnings reserve account and                                
11       distributed as provided for under AS 37.13.140, 37.13.145, and AS 43.23.025, as                               
12       those statutes read on July 1, 2002 [GENERAL FUND UNLESS OTHERWISE                                            
13       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:                                                                                                 
16            (b)  Notwithstanding other provisions of this constitution,                                                  

01                 (1)  AS 37.13.140, 37.13.145, AS 43.23.025, and any provisions of law                                   
02       referred to in those sections, remain in effect as they read on July 1, 2002, unless they                         
03       are amended or repealed and the amendment or repeal is ratified by affirmative vote of                            
04       a majority of the voters of the State voting on the question; and                                                 
05                 (2)  money may be appropriated from the earnings reserve account only                                   
06       as authorized under AS 37.13.145(b) and (c) as those subsections read on July 1, 2002,                            
07       unless the appropriation is ratified by affirmative vote of a majority of the voters of the                       
08       State voting on the question.                                                                                     
09    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
10 section to read:                                                                                                        
11            Section 30.  Suspension and Repeal of amendments.  (a)  Notwithstanding                                    
12       Section 1 of Article XIII, the 2004 amendments to Section 15 of Article IX are                                    
13       suspended on the date of an initial determination by the Internal Revenue Service that                            
14       all or a portion of the permanent fund is subject to federal taxation.  The suspension is                         
15       terminated on the date the amendments are repealed under (b) of this section or one                               
16       hundred eighty days after the date of a final, nonappealable judgment or order by a                               
17       federal court deciding that no portion of the permanent fund would be subject to                                  
18       federal taxation as a result of the amendments.  During the period of suspension under                            
19       this subsection, Section 15 of Article IX shall apply as it read on January 1, 2003.                              
20            (b)  Notwithstanding Section 1 of Article XIII, the 2004 amendments to                                       
21       Section 15 of Article IX are repealed one hundred eighty days after the date of a final,                          
22       nonappealable judgment or order by a federal court deciding that all or a portion of the                          
23       permanent fund is subject to federal taxation.  Upon repeal of the 2004 amendments                                
24       under this subsection, Section 15 of Article IX is amended to read as it read on                                  
25       January 1, 2003.                                                                                                  
26    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
27 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
28 State of Alaska, and the election laws of the state.