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HJR 2: 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                        HOUSE JOINT RESOLUTION NO. 2                                                                     
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 percent 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 from                            
13       the permanent fund, determined in accordance with generally accepted accounting                               
14       principles as provided by law, shall be accounted for [DEPOSITED] in the                                  
15       earnings account. Appropriations may only be made from the earnings account                                   
01       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 section from the earnings account for a fiscal                                
06       year may not exceed four and one-half percent of the average of the market values of                              
07       the 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, 2017, 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       2017, all appropriations made to the fund principal before January 1, 2017, and all                               
20       other transfers made to the fund principal before January 1, 2017;                                                
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       2018. Appropriations from the Alaska permanent fund for fiscal year 2017 are subject                              
25       to Section 15 of Article IX as that section read on June 30, 2016.                                                
26            (c)  The 2016 amendments relating to the Alaska permanent fund (art. IX, sec.                                
27       15) and this section take effect January 1, 2017.                                                                 
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.