§712 Functions of Association

Summary

The Association can watch the Corporation’s finances and check if the law’s goals are being met. It may buy, hold, and sell the Corporation’s stocks, bonds, and receivables. It can hire staff and set their pay. It must figure the value of the Alaska Railroad if required by law. Money that is not committed must be kept as cash, put in U.S. government-backed investments, or invested in funds that are allowed for public or trust money. The Association and most of its assets do not have to pay taxes by the United States or by states, but any real property it owns is taxed the same as other real property. The Association must send a full report to the President and Congress within 90 days after each fiscal year ends. That report must list its goals, measure how well its programs worked, give recommendations, show statistics on obligations and loans, list problems in order of priority, include other required information, and show plans for the next year. For the fiscal year from October 1, 1977, to September 30, 1978, it must also send detailed quarterly reports within 30 days after each quarter. Every quarter it must report on the special court valuation proceedings, including exact federal funds spent, the case status, and who is doing the work. The Association’s program receipts and spending (with some exceptions) are kept out of the totals on the U.S. Government budget and are not subject to annual federal spending limits. The Chairman must send Congress an annual budget for programs and for administrative costs, and must report yearly how much net lending the Association made. The Chairman must also send the Office of Management and Budget an annual administrative budget, and any budget request sent to OMB must also go to Congress. Congress should give the Association as much sensible budget flexibility as it can. By March 1, 1980, the Association and the Attorney General must give Congress a study about moving the government’s litigation role in the special court cases to the proper federal agency. By the same date, the Association and the Secretary of Transportation must give Congress a study on moving or ending the Association’s other functions. The Board must adopt rules so contractors give written proof of work, let the Association audit those reports, and require those reports before any payment, applying the rules to all contractors.