00               SENATE CS FOR CS FOR HOUSE BILL NO. 92(JUD) am S                                                          
01 "An Act relating to the purchase of interests in corporations, including limited liability                              
02 companies, by the University 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 corporation if the Board of Regents of the University of                                
07       Alaska authorizes the purchase and the purchase advances a public purpose of the                                  
08       university.                                                                                                       
09            (b)  If the university purchases an interest in a corporation, the corporation is                            
10       not considered to be a part of the university for any purpose, except to the extent that                          
11       both the Board of Regents of the University of Alaska and the corporation's articles of                           
12       incorporation state otherwise.                                                                                    
13            (c)  Notwithstanding AS 09.50.250 and any other law, the University of Alaska                                
14       is not liable for the obligations of a corporation that the University of Alaska has                              
01       purchased an interest in 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 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 corporation or to the assets of the corporation                          
08       that may be used to pay the obligation.                                                                           
09            (d)  In this section,                                                                                        
10                 (1)  "corporation" means a for-profit corporation, a nonprofit                                          
11       corporation, or a limited liability company, whether or not the corporation or company                            
12       is organized in this state;                                                                                       
13                 (2)  "interest" means a membership, or a share or other ownership                                       
14       interest;                                                                                                         
15                 (3)  "nonprofit corporation" means a corporation that qualifies for                                     
16       exemption from taxation under 26 U.S.C. 501(c) (Internal Revenue Code);                                           
17                 (4)  "university" means the University of Alaska.                                                       
18    * Sec. 2.  AS 37.10.085(a) is amended to read:                                                                     
19            (a)  Except as provided in AS 14.40.458 or (c) or (d) of this section, neither the                       
20       state nor a political subdivision of the state may                                                                
21                 (1)  make a subscription to the capital stock of a corporation;                                         
22                 (2)  lend its credit for the use of a corporation; or                                                   
23                 (3)  borrow money for the use of a corporation.