00                      SENATE JOINT RESOLUTION NO. 24                                                                    
01 Proposing amendments to the Constitution of the State of Alaska to guarantee the                                        
02 permanent fund dividend, establishing the earnings reserve account, and relating to the                                 
03 Alaska permanent fund; and providing for an effective date.                                                             
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05    * Section 1.  This resolution shall be known as an amendment to guarantee the permanent                            
06 fund dividend.                                                                                                          
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.  The                               
13       earnings reserve account is established as a separate account in the fund.  Income                            
14       from the fund shall be deposited into the earnings reserve account as soon as it is                           
15       received.  Except as provided in (b) of this section, money in the earnings reserve                           
16       account may be appropriated for any public purpose.  [ALL INCOME FROM                                         

01       THE PERMANENT FUND SHALL BE DEPOSITED IN THE GENERAL FUND                                                         
02       UNLESS OTHERWISE PROVIDED BY LAW.]                                                                                
03    * Sec. 3.  Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                        
04 new subsection to read:                                                                                                 
05            (b)  Net income of the permanent fund shall be computed annually as of the                                   
06       last day of the fiscal year in accordance with generally accepted accounting principles,                          
07       excluding any unrealized gains or losses.  Income available for distribution under this                           
08       subsection equals twenty-one percent of the net income of the fund for the last five                              
09       fiscal years, including the fiscal year just ended, but may not exceed net income of the                          
10       fund for the fiscal year just ended plus the balance in the earning reserve account.  At                          
11       the end of each fiscal year, fifty percent of the income available for distribution,                              
12       calculated under this subsection, shall be transferred from the earnings reserve account                          
13       and used for a program established by law of dividend payments to State residents.                                
14    * Sec. 4.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
15 section to read:                                                                                                        
16            Section 30.  Conditional Effect.  The 2004 amendments to the Alaska                                        
17       permanent fund (art. IX, sec. 15) take effect only if, in 2004, the voters approve an                             
18       amendment relating to an appropriation limit (art. IX, sec. 16).                                                  
19    * Sec. 5.  The amendments proposed by this resolution shall be placed before the voters of                         
20 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
21 State of Alaska, and the election laws of the state.