00 CS FOR SENATE BILL NO. 161(FIN)                                                                                         
01 "An Act relating to management of certain municipal assets by the Alaska                                                
02 Permanent 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 read:                                                   
05  Sec. 37.13.310.  Management of municipal assets.  (a)  When directed to do                                            
06 so by resolution of the governing body of a municipality, the corporation shall manage                                  
07 the assets in an account of that municipality if the account was established by the                                     
08 municipality under an ordinance or charter provision and the account                                                    
09   (1)  is a savings or investment account for the municipality;                                                        
10   (2)  has investment goals and objectives similar to those established by                                             
11 the corporation for the fund;                                                                                           
12   (3)  consists only of cash and other financial assets belonging to the                                               
13 municipality; and                                                                                                       
14   (4)  has an asset value of at least $50,000,000.                                                                     
01  (b)  In managing the assets of a municipality under (a) of this section, the                                          
02 corporation shall                                                                                                       
03   (1)  hold and invest those assets subject to AS 37.13.120;                                                           
04   (2)  at least quarterly, prepare, publish, and distribute to the governing                                           
05 body of the municipality a financial report showing investment revenue and                                              
06 expenditures, including the allocation of the assets in the account among investments;                                  
07   (3)  annually prepare, publish, and distribute to the governing body of                                              
08 the municipality financial statements prepared in accordance with generally accepted                                    
09 accounting principles consistently applied and an audit report prepared by a certified                                  
10 public accountant;                                                                                                      
11   (4)  periodically advise the governing body of the municipality when                                                 
12 revisions to long-range investment policy, including asset allocation changes, are                                      
13 contemplated and provide an opportunity for consultation and comment on the changes                                     
14 before they are implemented; and                                                                                        
15   (5)  when directed by resolution of the governing body of the                                                        
16 municipality, transfer from the account to the municipality the amount requested in the                                 
17 resolution, but not to exceed the total value of the assets being managed for the                                       
18 municipality.                                                                                                           
19  (c)  A municipality with assets managed by the corporation under this section                                         
20 shall pay to the corporation the amount determined by the corporation to be sufficient                                  
21 to reimburse the corporation for the costs of managing those assets.  All charges                                       
22 collected by the corporation under this subsection shall be deposited in the earnings                                   
23 reserve account in the fund.  The corporation may request the legislature to appropriate                                
24 the amount deposited in the earnings reserve account under this subsection for                                          
25 operations of the corporation.                                                                                          
26  (d)  Net income from assets managed by the corporation for a municipality                                             
27 under this section may not be included in the computation of net income available for                                   
28 distribution under AS 37.13.140.