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SJR 1: Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund, establishing the earnings reserve account, and relating to the permanent fund dividend.

00                       SENATE JOINT RESOLUTION NO. 1                                                                     
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska                                  
02 permanent fund, establishing the earnings reserve account, and relating to the                                          
03 permanent fund dividend.                                                                                                
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1. Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:                         
06 Section 15. Alaska Permanent Fund. (a) At least twenty-five percent of all                                        
07 mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                                
08 payments and bonuses received by the State shall be placed in a permanent fund, the                                     
09 principal of which shall be used only for those income-producing investments                                            
10 specifically designated by law as eligible for permanent fund investments. The                                      
11 earnings reserve account is established as a separate account in the fund. Income                                   
12 from the fund shall be deposited in the earnings reserve account as soon as it is                                   
13 received and may be invested as authorized for investments of the principal.                                        
14 Money in the earnings reserve account may be appropriated only as provided in                                       
15 (b) of this section [ALL INCOME FROM THE PERMANENT FUND SHALL BE                                                    
01 DEPOSITED IN THE GENERAL FUND UNLESS OTHERWISE PROVIDED BY                                                              
02       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)  Net income of the permanent fund shall be computed annually as of the                                              
06 last day of the fiscal year in accordance with generally accepted accounting principles,                                
07 excluding any unrealized gains or losses. Income available for distribution under this                                  
08 subsection equals twenty-one percent of the net income of the fund for the last five                                    
09 fiscal years, including the fiscal year just ended, but may not exceed net income of the                                
10 fund for the fiscal year just ended plus the balance in the earning reserve account. On                                 
11 the last day of each fiscal year, fifty percent of the income available for distribution                                
12 calculated under this subsection or the balance in the account, whichever is less, shall                                
13 be transferred from the earnings reserve account for use in a program of dividend                                       
14 payments to State residents as provided in (d) of this section. Money remaining in the                                  
15 earnings reserve account after the transfer may be deposited in the general fund unless                                 
16       otherwise provided by law.                                                                                        
17 (c)  The legislature shall provide by law for a transfer from the earnings                                              
18 reserve account to the fund sufficient to offset the effect of inflation on the principal of                            
19       the fund during that fiscal year.                                                                                 
20 (d)  The amount of the dividend shall be calculated each year by determining                                            
21 the total amount available for dividends and dividing it by the number of recipients                                    
22 eligible for a dividend payment for the current year as designated by law. The total                                    
23 amount available for dividends equals the amount of income of the Alaska permanent                                      
24 fund transferred from the earnings reserve account as provided in (b) of this section,                                  
25 plus the unexpended and unobligated balances of prior appropriations that lapse into                                    
26 the earnings reserve account, less the amount necessary to pay prior year dividends                                     
27 from the earnings reserve account in the current year, less the amount necessary to pay                                 
28 individuals who filed for a previous year's dividend by the filing deadline but were not                                
29 included in the previous year's dividend computation, and less appropriations from the                                  
30 earnings reserve account in the current year, including administrative costs. The                                       
31 legislature may appropriate an additional amount to provide for a larger dividend than                                  
01       the amount calculated under this subsection.                                                                      
02    * Sec. 3. Article XV, Constitution of the State of Alaska, is amended by adding a new                              
03 section to read:                                                                                                        
04 Section 30. Permanent Fund Amendments: Transition. The earnings                                                       
05 reserve account established in the 2020 amendments to the Alaska permanent fund                                         
06 (art. IX, sec. 15) replaces the existing earnings reserve account established by law.                                   
07 Money in the existing earnings reserve account on the effective date of the 2020                                        
08 amendments to the Alaska permanent fund (art. IX, sec. 15) shall be deposited in the                                    
09       earnings reserve account established by those amendments.                                                         
10    * Sec. 4. The amendments proposed by this resolution shall be placed before the voters of                          
11 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
12 State of Alaska, and the election laws of the state.