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SJR 2: Proposing amendments to the Constitution of the State of Alaska relating to the Alaska permanent fund.

00                       SENATE JOINT RESOLUTION NO. 2                                                                     
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 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]                                                      
09 investments made according to the prudent investor rule [SPECIFICALLY                                               
10 DESIGNATED BY LAW AS ELIGIBLE FOR PERMANENT FUND                                                                        
11 INVESTMENTS. ALL INCOME FROM THE PERMANENT FUND SHALL BE                                                                
12 DEPOSITED IN THE GENERAL FUND UNLESS OTHERWISE PROVIDED BY                                                              
13       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)  Net income of the permanent fund shall be computed annually as of the                                   
01 last day of the fiscal year in accordance with generally accepted accounting principles.                                
02 Income available for distribution under this section equals five percent of the market                                  
03 value of the permanent fund, but may not exceed the net income of the fund for the                                      
04 fiscal year just ended. Forty percent of the income available for distribution shall be                                 
05 transferred from the income of the fund for use in a program of dividend payments to                                    
06 State residents as provided by law. An additional forty percent of the income available                                 
07 for distribution shall be deposited in the general fund. Finally, up to twenty percent of                               
08 the income available for distribution may be transferred to the principal of the fund to                                
09 offset the effect of inflation. The transfer from the income of the fund for dividend                                   
10       payments and to the general fund shall be made without legislative appropriation.                                 
11    * Sec. 3. The amendments proposed by this resolution shall be placed before the voters of                          
12 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
13 State of Alaska, and the election laws of the state.