00 SENATE JOINT RESOLUTION NO. 35                                                                                          
01 Proposing an amendment to the Constitution of the State of Alaska relating to                                           
02 the education endowment account in the 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 per                                                  
06 cent of all mineral lease rentals, royalties, royalty sale proceeds, federal mineral                                    
07 revenue sharing payments and bonuses received by the State shall be placed in a                                         
08 permanent fund, 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 deposited in the general fund unless                                        
11 otherwise provided by law and except as provided in (b) and (c) of this section.                                      
12  (b)  The education endowment account is established as a separate account                                            
13 in the permanent fund.  Money in the account shall be invested in the same                                              
14 manner as the principal of the permanent fund, and the income shall be retained                                         
01 in the account until it is appropriated.  All money in the account may be                                               
02 appropriated, but only for elementary and secondary education.                                                         
03  (c)  On January 1, 1997, $350,000,000 shall be transferred from the income                                           
04 of the permanent fund earned under (a) of this section to the education                                                 
05 endowment account.  On January 1 of each of the years 1998 through 2003, an                                             
06 amount equal to fifteen percent more than the amount transferred during the                                             
07 immediately previous year under this subsection shall be transferred from the                                           
08 income of the permanent fund to the education endowment account.  On                                                    
09 January 1, 2004, and on January 1 of each year thereafter, an amount equal to                                           
10 three percent more than the amount transferred during the immediately previous                                          
11 year under this subsection shall be transferred from the income of the permanent                                        
12 fund to the education endowment account.                                                                               
13    * Sec. 2.  The amendment proposed by this resolution shall be placed before the voters of                            
14 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
15 State of Alaska, and the election laws of the state.