00                       CS FOR HOUSE BILL NO. 92(JUD)                                                                     
01 "An Act relating to the purchase of interests in nonprofit corporations by the University                               
02 of Alaska."                                                                                                             
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.40 is amended by adding a new section to read:                                                 
05            Sec. 14.40.458.  University corporate interests.  (a)  The university may                                  
06       purchase an interest in a nonprofit corporation if the Board of Regents of the                                    
07       University of Alaska authorizes the purchase and the purchase advances a public                                   
08       purpose of the university.                                                                                        
09            (b)  If the university purchases an interest in a nonprofit corporation, the                                 
10       nonprofit corporation is not considered to be a part of the university for any purpose,                           
11       except to the extent that both the Board of Regents of the University of Alaska and the                           
12       nonprofit corporation's articles of incorporation state otherwise.                                                
13            (c)  Notwithstanding AS 09.50.250, AS 10.20, and any other law, the                                          
14       University of Alaska is not liable for the obligations of a nonprofit corporation in                              
01       which the University of Alaska has purchased an interest under (a) of this section,                               
02                 (1)  except to the extent that the president of the university signs a                                  
03       written agreement on behalf of the university that expressly states that the university is                        
04       liable for the obligations of the nonprofit corporation and the obligations for which the                         
05       university is liable are identified in the written agreement; or                                                  
06                 (2)  unless the university has engaged in fraudulent or other wrongful                                  
07       conduct relating to an obligation of the nonprofit corporation or to the assets of the                            
08       nonprofit corporation that may be used to pay the obligation.                                                     
09            (d)  In this section,                                                                                        
10                 (1)  "nonprofit corporation" means a corporation that qualifies for                                     
11       exemption from taxation under 26 U.S.C. 501(c) (Internal Revenue Code);                                           
12                 (2)  "university" means the University of Alaska.                                                       
13    * Sec. 2.  AS 37.10.085(a) is amended to read:                                                                     
14            (a)  Except as provided in AS 14.40.458 or (c) or (d) of this section, neither the                       
15       state nor a political subdivision of the state may                                                                
16                 (1)  make a subscription to the capital stock of a corporation;                                         
17                 (2)  lend its credit for the use of a corporation; or                                                   
18                 (3)  borrow money for the use of a corporation.