00           SPONSOR SUBSTITUTE FOR SENATE JOINT RESOLUTION NO. 2                                                         
01 Proposing amendments to the Constitution of the State of Alaska relating to the Alaska                                  
02 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 percent of all                                          
06 mineral lease rentals, royalties, royalty sale proceeds, federal mineral revenue sharing                                
07 payments and bonuses received by the State shall be placed in a permanent fund, the                                     
08 principal of which shall be used only for [THOSE INCOME-PRODUCING]                                                      
09 investments made according to the prudent investor rule [SPECIFICALLY                                               
10 DESIGNATED BY LAW AS ELIGIBLE FOR PERMANENT FUND                                                                        
11 INVESTMENTS. ALL INCOME FROM THE PERMANENT FUND SHALL BE                                                                
12 DEPOSITED IN THE GENERAL FUND UNLESS OTHERWISE PROVIDED BY                                                              
13       LAW].                                                                                                             
14    * Sec. 2. Article IX, sec. 15, Constitution of the State of Alaska, is amended by adding a                         
15 new subsection to read:                                                                                                 
16            (b)  Net income of the permanent fund shall be computed annually as of the                                   

01 last day of the fiscal year in accordance with generally accepted accounting principles.                                
02 Income available for distribution under this section equals four percent of the fiscal-                                 
03 year-end market value of the permanent fund, but may not exceed the net income of                                       
04 the fund for the fiscal year just ended. Fifty percent of the income available for                                      
05 distribution shall be transferred from the income of the fund for use in a program of                                   
06 dividend payments to State residents as provided by law. Fifty percent of the income                                    
07 available for distribution shall be deposited in the general fund. The transfer from the                                
08 income of the fund for dividend payments and to the general fund shall be made                                          
09       without legislative appropriation.                                                                                
10    * Sec. 3. The amendments proposed by this resolution shall be placed before the voters of                          
11 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
12 State of Alaska, and the election laws of the state.