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SB 5: "An Act relating to management of certain municipal assets by the Alaska Permanent Fund Corporation."

00                              SENATE BILL NO. 5                                                                          
01 "An Act relating to management of certain municipal assets by the Alaska Permanent                                      
02 Fund Corporation."                                                                                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.13 is amended by adding a new section to article 2 to read:                                     
05            Sec. 37.13.310. Management of municipal assets. (a) The corporation shall                                  
06       manage the assets in an account of a municipality if                                                              
07                 (1)  the governing body of the municipality directs the corporation by                                  
08       resolution to manage the assets; and                                                                              
09                 (2)  the account                                                                                        
10                      (A)  was established by the municipality under an ordinance or                                     
11            charter provision;                                                                                           
12                      (B)  is a savings or investment account for the municipality;                                      
13                      (C)  consists of only cash or other financial assets belonging to                                  
14            the municipality; and                                                                                        
01                      (D)  has an asset value of at least $50,000,000.                                                   
02            (b)  In managing the assets of a municipality under (a) of this section, the                                 
03       corporation shall                                                                                                 
04                 (1)  hold and invest the assets subject to AS 37.13.120;                                                
05                 (2)  at least quarterly, prepare, publish, and distribute to the governing                              
06 body of the municipality a financial report showing investment revenue and                                              
07 expenditures, including the allocation of the assets in the account among investments;                                  
08 (3)  annually prepare, publish, and distribute to the governing body of                                                 
09 the municipality financial statements prepared in accordance with generally accepted                                    
10 accounting principles consistently applied and an audit report prepared by a certified                                  
11       public accountant;                                                                                                
12 (4)  periodically advise the governing body of the municipality when                                                    
13 revisions to long-range investment policy, including asset allocation changes, are                                      
14 contemplated and provide an opportunity for consultation and comment on the                                             
15       changes before they are implemented; and                                                                          
16 (5)  if the governing body of the municipality requests by resolution                                                   
17 that the corporation transfer funds from the account to the municipality, transfer the                                  
18 amount requested by the resolution, not to exceed the total value of the assets that the                                
19       corporation is managing for the municipality.                                                                     
20 (c)  A municipality with assets managed by the corporation under this section                                           
21 shall pay to the corporation the amount determined by the corporation to be sufficient                                  
22       to reimburse the corporation for the costs of managing the assets.                                                
23 (d)  Net income from assets managed by the corporation for a municipality                                               
24 under this section may not be included in the computation of net income or market                                       
25       value available for distribution or appropriation under AS 37.13.140.