00                CS FOR HOUSE JOINT RESOLUTION NO. 26(FIN)                                                               
01 Proposing amendments to the Constitution of the State of Alaska relating to and limiting                                
02 appropriations from the Alaska permanent fund based on an averaged percent of the                                       
03 fund market value.                                                                                                      
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  Article IX, sec. 15, Constitution of the State of Alaska, is amended to read:                        
06            Section 15.  Alaska Permanent Fund.  (a)  At least twenty-five per cent of all                           
07       mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                          
08       payments and bonuses received by the State shall be placed in a permanent fund.                               
09       Except as appropriated under  (b) of this section, money in the permanent fund [,                             
10       THE PRINCIPAL OF WHICH] shall be used only for those income-producing                                             
11       investments specifically designated by law as eligible for permanent fund investments.                            
12       [ALL INCOME FROM THE PERMANENT FUND SHALL BE DEPOSITED IN                                                         
13       THE GENERAL FUND UNLESS OTHERWISE PROVIDED BY LAW.]                                                               
14    * Sec. 2.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                        
15 new subsection to read:                                                                                                 

01            (b)  Appropriations from the permanent fund for a fiscal year may not exceed                                 
02       five percent of the average of the market values of the fund on June 30 for the first                             
03       five of the six fiscal years immediately preceding that fiscal year.                                              
04    * Sec. 3.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
05 section to read:                                                                                                        
06            Section 30.  Transition.  (a)  On the effective date of the 2004 amendment                                 
07       relating to the Alaska permanent fund (art. IX, sec. 15), the unencumbered,                                       
08       unappropriated balance of the earnings reserve account established under                                          
09       AS 37.13.145(a) is added to the balance in the Alaska permanent fund.                                             
10            (b)  The 2004 amendment relating to the Alaska permanent fund first applies to                               
11       appropriations for fiscal year 2006.  Appropriations from the permanent fund for fiscal                           
12       year 2005 are subject to Section 15 of Article IX as that section read on June 30, 2004.                          
13    * Sec. 4.  The amendments 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.