How SB 5 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes a framework for the Alaska Permanent Fund Corporation to manage certain municipal assets.

• AS 37.13

  Sec. 37.13.310. Management of municipal assets. (a) The corporation shall manage the assets in an account of a municipality if (1) the governing body of the municipality directs the corporation by resolution to manage the assets; and (2) the account (A) was established by the municipality under an ordinance or charter provision; (B) is a savings or investment account for the municipality; (C) consists of only cash or other financial assets belonging to the municipality; and (D) has an asset value of at least $50,000,000. (b) In managing the assets of a municipality under (a) of this section, the corporation shall (1) hold and invest the assets subject to AS 37.13.120; (2) at least quarterly, prepare, publish, and distribute to the governing body of the municipality a financial report showing investment revenue and expenditures, including the allocation of the assets in the account among investments; (3) annually prepare, publish, and distribute to the governing body of the municipality financial statements prepared in accordance with generally accepted accounting principles consistently applied and an audit report prepared by a certified public accountant; (4) periodically advise the governing body of the municipality when revisions to long-range investment policy, including asset allocation changes, are contemplated and provide an opportunity for consultation and comment on the changes before they are implemented; and (5) if the governing body of the municipality requests by resolution that the corporation transfer funds from the account to the municipality, transfer the amount requested by the resolution, not to exceed the total value of the assets that the corporation is managing for the municipality. (c) A municipality with assets managed by the corporation under this section shall pay to the corporation the amount determined by the corporation to be sufficient to reimburse the corporation for the costs of managing the assets. (d) Net income from assets managed by the corporation for a municipality under this section may not be included in the computation of net income or market value available for distribution or appropriation under AS 37.13.140.

  This adds a new section allowing the management of municipal assets by the Alaska Permanent Fund Corporation under specified conditions.