00SENATE BILL NO. 312                                                                                                   
01 "An Act relating to the bond redemption subaccount in the earnings reserve                                              
02 account of the permanent fund; and providing for an effective date."                                                    
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 37.13.140 is amended to read:                                                                     
05  Sec. 37.13.140.  Income.  Net income of the fund includes  all the  income of                                     
06 the earnings reserve account established under AS 37.13.145  except income of the                                      
07 bond redemption subaccount .  Net income of the fund shall be computed annually                                        
08 as of the last day of the fiscal year in accordance with generally accepted accounting                                  
09 principles, excluding any unrealized gains or losses.  Income available for distribution                                
10 equals 21 percent of the net income of the fund for the last five fiscal years, including                               
11 the fiscal year just ended, but may not exceed net income of the fund for the fiscal                                    
12 year just ended plus the balance in the earnings reserve account described in                                           
13 AS 37.13.145.                                                                                                           
14    * Sec. 2.  AS 37.13.145 is amended by adding a new subsection to read:                                             

01  (e)  The bond redemption subaccount is established in the earnings reserve                                            
02 account and consists of money appropriated to it from the budget reserve fund (Art.                                     
03 IX, sec. 17, Constitution of the State of Alaska).  Money may be appropriated from                                      
04 the subaccount to make all required payments of redemption premiums for, principal                                      
05 of, and  interest on general obligation bonds of the state that are approved by the                                     
06 voters in 2000.  The balance in the subaccount remaining after the bonded                                               
07 indebtedness has been fully repaid shall be transferred by the corporation to the                                       
08 principal of the fund.  Transfers may not be made from the subaccount under (b) or                                      
09 (c) of this section.                                                                                                    
10    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section                            
11 to read:                                                                                                                
12  CONDITIONAL EFFECT.  This Act takes effect only if, during 2000, the voters                                            
13 approve a proposal to issue state general obligation bonds.                                                             
14    * Sec. 4.  If this Act takes effect, it takes effect on December 1, 2000.