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HJR 3: Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund and establishing the earnings reserve account.

00                        HOUSE JOINT RESOLUTION NO. 3                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska                                  
02 permanent fund and establishing the earnings reserve account.                                                           
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 percent 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. The                                      
10 earnings reserve account is established as a separate account in the fund. Income                                   
11 from the fund shall be deposited into the earnings reserve account as soon as it is                                 
12 received and may be invested as authorized for investments of the principal.                                        
13 Money in the earnings reserve account may be appropriated only as provided in                                       
14 (b) of this section [ALL INCOME FROM THE PERMANENT FUND SHALL BE                                                    
15 DEPOSITED IN THE GENERAL FUND UNLESS OTHERWISE PROVIDED BY                                                              
16       LAW].                                                                                                           
01    * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                         
02 new subsection to read:                                                                                                 
03 (b)  Net income of the permanent fund shall be computed annually as of the                                              
04 last day of the fiscal year in accordance with generally accepted accounting principles.                                
05 Income available for distribution under this section equals four percent of the market                                  
06 value of the permanent fund, but may not exceed the net income of the fund for the                                      
07 fiscal year just ended. Fifty percent of the income available for distribution shall be                                 
08 transferred from the income of the fund for use in a program of dividend payments to                                    
09 State residents as provided by law. The remaining fifty percent of the income available                                 
10 for distribution shall be deposited in the general fund. The transfer from the income of                                
11 the fund for dividend payments and to the general fund shall be made without                                            
12       legislative appropriation.                                                                                        
13    * Sec. 3. Article XV, Constitution of the State of Alaska, is amended by adding a new                              
14 section to read:                                                                                                        
15 Section 30. Permanent Fund Amendments: Transition. The earnings                                                       
16 reserve account established in the 2020 amendments to the Alaska permanent fund                                         
17 (art. IX, sec. 15) replaces the existing earnings reserve account established by law.                                   
18 Money in the existing earnings reserve account on the effective date of the 2020                                        
19 amendments to the Alaska permanent fund (art. IX, sec. 15) shall be deposited into the                                  
20       earnings reserve account established by those amendments.                                                         
21    * Sec. 4. The amendments proposed by this resolution shall be placed before the voters of                          
22 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
23 State of Alaska, and the election laws of the state.