Sovereign Wealth Fund Creation Act
From The Kodiak Republic Wiki
Article 1: Definition
1.1 - A Kodiak Sovereign Wealth Fund (hereby also referred to as the "Mineral Fund" or simply "the fund") is a government investment firm that invests in foreign markets. The money in the fund belongs to all the citizens of Kodiak and shall only ever be withdrawn to fund services that benefit the citizens.
Article 2: Funding
2.1 - A 16% tax on the income generated from bauxite mining is implemented. All the revenue generated from this tax shall go directly towards the Mineral Fund.
2.2 - A 20% export tariff on raw or refined bauxite is implemented. Raw or refined bauxite is described as a product/commodity that consists of more than 15% bauxite. This tariff does not affect aluminum products which use bauxite to any degree. All the revenue from this export tariff shall go directly towards the Mineral Fund.
Article 3: Operations & Management
3.1 - The Mineral Fund will be jointly operated by the Ministry of Revenue & Treasury and the Central Bank. The Central Bank is responsible for investing the money from the fund and choosing what to invest in. The Ministry of Revenue & Treasury is responsible for depositing money into the fund and withdrawing money from it.
3.2 - In accordance with Article 4, the Central Bank and the Ministry of Revenue & Treasury can jointly add more companies, industries, or countries onto the list defined in 4.2 for ethical malpractice or extreme instability or volatility.
Article 4: Restrictions & Regulations
4.1 - The Mineral Fund can invest in stocks/equity (with exceptions), government and corporate bonds, and real estate. The fund can not invest in any domestic stocks/equity, bonds, or real estate; it can only invest in foreign economies/markets.
4.2 - The fund can not invest in defense companies, mining & oil drilling companies, and energy companies with more than 30% of their sales being in energy made from consuming fossil fuels.
4.3 - As a baseline, the Ministry of Revenue & Treasury can only withdraw a maximum of 4% of the fund’s total value every fiscal year. This value can be decreased by collective agreement between Minister of Revenue & Treasury and the Central Bank; it can be increased by collective agreement between the Chancellor, Minister of Revenue & Treasury, and the Central Bank. It can be increased up to 6.5% in times of economic crises or decreased down to 1.5% in times of economic prosperity.