00SENATE BILL NO. 161                                                                                                     
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 a fund of that municipality if the fund was established by the municipality                               
08 under an ordinance or charter provision and the fund                                                                    
09   (1)  is a savings or investment fund or account for the municipality;                                                
10   (2)  consists only of cash and other financial assets belonging to the                                               
11 municipality; and                                                                                                       
12   (3)  has an asset value of at least $50,000,000.                                                                     
13  (b)  In managing the assets of a municipality under (a) of this section, the                                          
14 corporation shall                                                                                                       

01   (1)  hold and invest those assets subject to AS 37.13.120;                                                           
02   (2)  at least quarterly, prepare, publish, and distribute to the governing                                           
03 body of the municipality a financial report showing investment revenue and                                              
04 expenditures, including the allocation of the assets in the fund among investments;                                     
05   (3)  annually prepare, publish, and distribute to the governing body of                                              
06 the municipality financial statements prepared in accordance with generally accepted                                    
07 accounting principles consistently applied and an audit report prepared by a certified                                  
08 public accountant;                                                                                                      
09   (4)  periodically advise the governing body of the municipality when                                                 
10 revisions to long-range investment policy, including asset allocation changes, are                                      
11 contemplated and provide an opportunity for consultation and comment on the changes                                     
12 before they are implemented; and                                                                                        
13   (5)  when directed by resolution of the governing body of the                                                        
14 municipality, transfer from the fund to the municipality the amount requested in the                                    
15 resolution, but not to exceed the total value of the assets being managed for the                                       
16 municipality.                                                                                                           
17  (c)  A municipality with assets managed by the corporation under this section                                         
18 shall pay to the corporation the amount determined by the corporation to be sufficient                                  
19 to reimburse the corporation for the costs of managing those assets.  All charges                                       
20 collected by the corporation under this subsection shall be deposited in the general                                    
21 fund.  The corporation may request the legislature to appropriate the amount deposited                                  
22 in the general fund under this subsection for operations of the corporation.                                            
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 available for                                   
25 distribution under AS 37.13.140.