00                      CS FOR SENATE BILL NO. 178(STA)                                                                   
01 "An Act relating to the Alaska operating endowment fund; and providing for an                                           
02 effective date."                                                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.14 is amended by adding new sections to read:                                                   
05                 Article 10. Alaska Operating Endowment Fund.                                                          
06            Sec. 37.14.850. Alaska operating endowment fund established. (a) The                                       
07       Alaska operating endowment fund is established as a separate endowment fund of the                                
08       state. Appropriations may be made to the Alaska operating endowment fund.                                         
09            (b)  Money in the fund does not lapse under AS 37.25.010. Nothing in this                                    
10       section exempts money transferred to the fund from the requirements of AS 37.07                                   
11       (Executive Budget Act).                                                                                           
12            Sec. 37.14.860. Fund management. The Alaska operating endowment fund                                       
13       shall be managed and invested by the Department of Revenue, subject to the same                                   
14       powers and duties established for the Alaska Permanent Fund Corporation in                                        

01       AS 37.13.120 and the regulations adopted by the Board of Trustees of the Alaska                                   
02       Permanent Fund Corporation. The department shall retain income in the fund. The                                   
03       department shall, not less frequently than annually, prepare, publish, and distribute a                           
04       financial report showing fund investment revenue and expenditures.                                                
05            Sec. 37.14.870. Use of the fund. (a) As soon as practicable after June 30 of                               
06       each fiscal year, the Department of Revenue shall determine the average month-end                                 
07       market value of the Alaska operating endowment fund for the immediately preceding                                 
08       three fiscal years. The department shall identify four percent of that amount as                                  
09       available for appropriation by the legislature for the purpose described in (b) of this                           
10       section.                                                                                                          
11            (b)  Each fiscal year, the legislature may appropriate the amount identified                                 
12       under (a) of this section from the Alaska operating endowment fund for any public                                 
13       purpose.                                                                                                          
14            Sec. 37.14.880. No dedicated fund. Nothing in AS 37.14.850 - 37.14.870                                     
15       creates a dedicated fund or dedicates state revenue.                                                              
16    * Sec. 2. This Act takes effect July 1, 2012.