Committee: Executive & Finance Author: Callie Catcher
Date: 6-18-04 Committee Date: 7-01-04 Sponsor:
An Act
Legislative Act 28-04
Title
AN ACT AMENDING LEGISLATIVE ACT 5-02, THE FISCAL POLICY AND
RESPONSIBILITY ACT; AUTHORIZING A LINE OF CREDIT; AND, DECLARING
AN EMERGENCY
Body
BE IT ENACTED BY THE CHEROKEE NATION:
Section 1. Title and Codification
This act shall be known as the "Cherokee Nation Environmental Quality Code Amendments Act of 2004," and codified as (Title) (Section) of the Cherokee Nation Code Annotated.
Section 2. Purpose
The purpose of this Act is to amend the Fiscal Policy and Responsibility Act of 2002 to authorize a line of credit to be utilized in satisfying the permanent Cash Reserve required by the Act, and to permanently provide for operating cash needs of the Nation.
The total annual authorized budget and expenditures of the Nation have grown to such an extent to make it no longer practical or prudent for the Nation to rely only upon cash balances to satisfy the requirements of both the Cash Reserve required by the Act, as well as to provide for day- to-day cash flow needs for operations. A line of credit, authorized by this Act, will provide alternative and supplemental means of addressing cash flow and Cash Reserve requirements of governmental operations.
Section 3. Legislative History
A. The Constitution and laws of the Cherokee Nation, including Title 62 of the Cherokee Nation Code Annotated (CNCA) provide the requirements for appropriations, review and authorization for the use of all funds.
B. Section 7 of Article X of the Cherokee Constitution, and 62 CNCA � 61 contain the specific requirements for pledges of credit of the Cherokee Nation.
C. Legislative Act 5-02, dated January 29, 2002, the "Fiscal Policy and Responsibility Act
of 2002" provides in part for a permanent Cash Reserve to be maintained at 1.75% of total authorized appropriations in the annual comprehensive budget each year.
D. All other applicable resolutions, statutes and Court decisions are hereby acknowledged.
Section 4. Amendments
Legislative Act 5-02 is hereby amended to add the following new provisions: Section 2.1 Definitions
For purposes of this Act:
Line of Credit means a margin or fixed limit of credit intended to cover a series of transactions, in which case it is expected that the debtor will reduce his/her indebtedness by payments before drawing upon it further.
Section 6.1. Line of Credit Authorized
A. A line of credit to provide cash requirements for the Cash Reserve and/or cash flow for operations is hereby authorized, not to exceed $5,000,000 at any given time.
B. Bank of America is the financial institution authorized from which to obtain such line of credit.
C. The Principal Chief or his/her designee is authorized to negotiate and execute the line of credit, including the interest rate applicable to same.
D. Any interest expense incurred under this line of credit must be provided for by appropriations in the annual Comprehensive Budget of the Nation.
E. No additional budget authority is conferred or authorized by this Act. The use of the line of credit is limited to expenditures authorized by the annual Comprehensive Budget.
F. No waiver of sovereign immunity is granted associated with the authorized line of credit.
G. The authorized term of the line of credit will not expire until and unless amended or rescinded by Legislative Act; or, unless limited in the debt agreement executed by the Principal Chief or his/her designee.
H. In accordance with 62 CNCA * 72 the Controller is required to report in the monthly financial report to the Council of the Cherokee Nation the status of the line of credit authorized herein.
Section 5. Provisions as cumulative
The provisions of this act shall be cumulative to existing law.
Section 6. Severability
The provisions of this act are severable and if any part of provision hereof shall be held void the decision of the court so holding shall not affect or impair any of the remaining parts or provisions of this act.
Section 7. Emergency declared
It being immediately necessary for the welfare of the Cherokee Nation, the Council hereby declares that an emergency exists, by reason whereof this act shall take effect and be in full force after its passage and approval.
Enacted by the Council of the Cherokee Nation on the 12th day of July, 2004.
Joe Grayson, Jr. President Cherokee Nation Tribal Council
ATTEST: Bill John Baker, Secretary Cherokee Nation Tribal Council
Approved and signed by the Principal Chief this 16th day of JULY, 2004.
ATTEST: Callie Catcher, Secretary/Treasurer Cherokee Nation
YEAS AND NAYS AS RECORDED:
Audra Smoke-Conner Yea Melvina Shotpouch Yea
Bill John Baker Yea Meredith A. Frailey Yea
Joe Crittenden Yea John F. Keener Yea
Jackie Bob Martin Yea Cara Cowan Yea
Phyllis Yargee Yea Buel Anglen Yea
David W. Thornton, Sr. Absent William G. Johnson Yea
Don Garvin Yea Charles "Chuck" Hoskin Yea
Linda Hughes-O'Leary Yea
Cherokee Nation
Act /Resolution Proposal Form
X Act Resolution
TITLE: "Fiscal Policy and Responsibility Act Amendment of 2004"
DEPARTMENT CONTACT: Callie Catcher
Resolution Presenter: Collie Catcher
SPONSOR:
NARRATIVE:
(See Attached Outline for Information Needed)
This amendment is to authorize a line of credit to be utilized in satisfying the permanent Cash Reserve and to permanently provide for operating cash needs of the Nation required by the Fiscal Policy and Responsibility Act of 2002.
Administrative Clearance
Program/Project Manager
Department Director
Signature/Initial Date
Executive Director:
Signature/Initial Date
Controller
Administration val.
Legislative Clearance
Legislative Aide:
Initial Date C
Standing Committee