00CS FOR HOUSE JOINT RESOLUTION NO. 25(STA)                                                                               
01 Proposing amendments to the Constitution of the State of Alaska to guarantee the                                        
02 permanent fund dividend and to provide for inflation-proofing; and relating to the                                      
03 permanent fund.                                                                                                         
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  This resolution shall be known as an amendment to protect the permanent                                
06 fund dividend and to provide for inflation-proofing.                                                                    
07    * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:                             
08  Section 15.  Alaska Permanent Fund.  (a) At least twenty-five per cent of all                                       
09 mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                                
10 payments and bonuses received by the State shall be placed in a permanent fund, the                                     
11 principal of which shall be used only for those income-producing investments                                            
12 specifically designated by law as eligible for permanent fund investments.  [ALL                                        
13 INCOME FROM THE PERMANENT FUND SHALL BE DEPOSITED IN THE                                                                
14 GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW.]                                                                         

01    * Sec. 3.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding                            
02 new subsections to read:                                                                                                
03  (b)  Income from the permanent fund shall be deposited into a separate account                                        
04 in the fund, the earnings reserve account, as soon as it is received.  Money in the                                     
05 account shall be invested in investments designated by law under (a) of this section,                                   
06 and income from the investments shall also be deposited into the account.                                               
07  (c)  On the first day of each fiscal year, an amount of income shall be                                               
08 transferred from the earnings reserve account for distribution as dividends to State                                    
09 residents as provided by law.  An amount of income shall also be transferred as                                         
10 provided by law from the earnings reserve account to the principal of the permanent                                     
11 fund to offset the effect of inflation on the principal of the fund during the fiscal year                              
12 just ended.  Income distributed as dividends or transferred to the principal is not                                     
13 subject to appropriation.                                                                                               
14  (d)  Appropriations may be made from the earnings reserve account; however,                                           
15 the amount appropriated during a fiscal year may not exceed the amount in the account                                   
16 on the first day of that fiscal year after transfers have been made under (c) of this                                   
17 section.                                                                                                                
18    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                           
19 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
20 State of Alaska, and the election laws of the state.