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SSSJR 1: Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund and appropriations from the Alaska permanent fund.

00            SPONSOR SUBSTITUTE FOR SENATE JOINT RESOLUTION NO. 1                                                         
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska                                  
02 permanent fund and appropriations from the Alaska 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 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,                                         
08 [THE PRINCIPAL OF] which shall be used [ONLY] for [THOSE] income-producing                                              
09 investments specifically designated by law as eligible for permanent fund investments.                                  
10       All income from the permanent fund shall be retained [DEPOSITED] in the                                       
11       [GENERAL] fund [UNLESS OTHERWISE PROVIDED BY LAW].                                                                
12    * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding new                       
13 subsections to read:                                                                                                    
14            (b)  At the end of each fiscal year, the following shall be determined in                                    
15       accordance with generally accepted accounting principles:                                                         
16                 (1)  five percent of the average market value of the fund for the first                                 
01       five of the preceding six fiscal years, including the fiscal year just ended, including                           
02       any unrealized gains or losses;                                                                                   
03                 (2)  twenty-one percent of the net income of the fund for the preceding                                 
04       five fiscal years, including the fiscal year just ended, excluding any unrealized gains or                        
05       losses.                                                                                                           
06 (c)  Each year, fifty percent of the amount determined under (b)(1) of this                                             
07 section, or fifty percent of the amount determined under (b)(2) of this section,                                        
08 whichever is greater, shall be transferred for use in a program of dividend payments to                                 
09       State residents as provided by law.                                                                               
10 (d)  After the transfer in (c) of this section, the remainder of the amount                                             
11 calculated under (b)(1) of this section may be appropriated to the general fund for the                                 
12       costs and expenses of State government.                                                                           
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. (a) On June 30,                                                    
16 2021, the unencumbered balance of the earnings reserve account established by law                                       
17 shall be deposited in the Alaska permanent fund and become part of the principal of                                     
18       the fund.                                                                                                         
19 (b)  The 2020 amendments relating to the Alaska permanent fund (art. IX, sec.                                           
20 15) apply to appropriations made for the fiscal year ending June 30, 2022, and                                          
21       thereafter.                                                                                                       
22    * Sec. 4. The amendments proposed by this resolution shall be placed before the voters of                          
23 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
24 State of Alaska, and the election laws of the state.