00 HOUSE JOINT RESOLUTION NO. 14
01 Proposing amendments to the Constitution of the State of Alaska relating to the budget
02 reserve fund and to the Alaska heritage fund; and providing for an effective date for the
03 amendments.
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:
05 * Section 1. Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read:
06 Section 17. Alaska Heritage [BUDGET RESERVE] Fund. (a) There is
07 established as a separate fund in the State treasury the Alaska heritage [BUDGET
08 RESERVE] fund. Except for money deposited into the permanent fund under Section
09 15 of this article, all money received by the State after June 30, 2003 [JULY 1, 1990],
10 as a result of the termination, through settlement or otherwise, of an administrative
11 proceeding or of litigation in a State or federal court involving mineral lease bonuses,
12 rentals, royalties, royalty sale proceeds, federal mineral revenue sharing payments or
13 bonuses, or involving taxes imposed on mineral income, production, or property, shall
14 be deposited in the Alaska heritage [BUDGET RESERVE] fund. Except as
15 provided in (b) of this section and subject to (d) of this section, money [MONEY]
01 in the Alaska heritage [BUDGET RESERVE] fund shall be used only for those
02 income-producing investments specifically designated by law as eligible for
03 Alaska heritage fund investments [INVESTED SO AS TO YIELD COMPETITIVE
04 MARKET RATES TO THE FUND]. Income of the fund shall be retained in the fund.
05 Section 7 of this article does not apply to deposits made to the fund under this
06 subsection. Money may be appropriated from the fund only as authorized under (b)
07 [OR (c)] of this section.
08 * Sec. 2. Article IX, sec. 17(b), Constitution of the State of Alaska, is repealed and
09 readopted to read:
10 (b) Appropriations from the Alaska heritage fund for a fiscal year may not
11 exceed five percent of the average of the year-end market values of the fund for the
12 five fiscal years that immediately precede the fiscal year for which the appropriations
13 are made.
14 * Sec. 3. Article IX, sec. 17(c), Constitution of the State of Alaska, is repealed and
15 readopted to read:
16 (c) Appropriations may be made to the Alaska heritage fund at any time.
17 * Sec. 4. Article IX, sec. 17(d), Constitution of the State of Alaska, is repealed and
18 readopted to read:
19 (d) The prudent investor rule shall be applied in the management and
20 investment of Alaska heritage fund assets. The prudent investor rule as applied to
21 investments of the fund requires exercise of the judgment and care under the
22 circumstances then prevailing that an institutional investor of ordinary prudence,
23 discretion, and intelligence exercises in the management of large investments
24 entrusted to the investor, not in regard to speculation but in regard to permanent
25 disposition of funds, considering probable safety of capital as well as probable
26 income.
27 * Sec. 5. Article XV, Constitution of the State of Alaska, is amended by adding a new
28 section to read:
29 Section 30. Effective Date and Transition for Amendments Relating to the
30 Alaska Heritage Fund. (a) The 2002 amendments establishing the Alaska heritage
31 fund and repealing the budget reserve fund (art. IX, sec. 17) take effect July 1, 2003.
01 (b) The Alaska heritage fund is the successor to the budget reserve fund (art.
02 IX, sec. 17), and, on July 1, 2003, the balance in the budget reserve fund shall be
03 transferred to the Alaska heritage fund.
04 * Sec. 6. The amendments proposed by this resolution shall be placed before the voters of
05 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the
06 State of Alaska, and the election laws of the state.