HB 525: "An Act designating certain permissible investments by the Alaska Permanent Fund Corporation in taxable municipal or state debt securities and corporate debt securities; changing the allocation limits on domestic and nondomestic government and corporate securities, nondomestic corporate promissory notes, domestic and nondomestic corporate stocks, and taxable government debt securities; and providing for an effective date."
00HOUSE BILL NO. 525 01 "An Act designating certain permissible investments by the Alaska Permanent 02 Fund Corporation in taxable municipal or state debt securities and corporate debt 03 securities; changing the allocation limits on domestic and nondomestic government 04 and corporate securities, nondomestic corporate promissory notes, domestic and 05 nondomestic corporate stocks, and taxable government debt securities; and 06 providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 37.13.120(g)(7) is amended to read: 09 (7) domestic corporate debt securities that are rated investment grade 10 [A OR BETTER] by a nationally recognized rating service, or nondomestic corporate 11 debt securities of comparable quality; 12 * Sec. 2. AS 37.13.120(g)(19) is amended to read: 13 (19) taxable municipal or state debt securities that are rated investment 14 grade [A OR BETTER] by a nationally recognized rating service;
01 * Sec. 3. AS 37.13.120(i) is amended to read: 02 (i) The fund may at no time own more than five percent of the voting stock 03 of a corporation. Domestic stocks, except for bank and insurance company stocks, 04 must be listed at the date of purchase on an exchange registered with the Securities 05 and Exchange Commission. At the time of each investment, the aggregate investment 06 of the fund in each stated category of investment may not exceed the following stated 07 percentage of the total investments of the fund: 08 (1) mortgages under (g)(13) of this section - 15 percent; 09 (2) real estate investments under (g)(16) of this section - 15 percent; 10 (3) certificates of deposit, term deposit, or bankers' acceptances under 11 (g)(15) of this section - 20 percent; 12 (4) [SECURITIES OF NONDOMESTIC GOVERNMENTS, 13 NONDOMESTIC GOVERNMENT AGENCIES, AND NONDOMESTIC 14 CORPORATIONS UNDER (g)(7), (17), AND (18) OF THIS SECTION,] domestic 15 and nondomestic corporate stocks under (g)(14) and (18) of this section [, AND 16 SHORT-TERM NONDOMESTIC CORPORATE PROMISSORY NOTES UNDER 17 (g)(8)(B) OF THIS SECTION] - 50 percent [; 18 (5) DOMESTIC CORPORATE DEBT SECURITIES THAT ARE 19 RATED A AND NONDOMESTIC CORPORATE DEBT SECURITIES OF 20 COMPARABLE QUALITY UNDER (g)(7) OF THIS SECTION, AND TAXABLE 21 MUNICIPAL OR STATE DEBT SECURITIES THAT ARE RATED A UNDER 22 (g)(19) OF THIS SECTION - FIVE PERCENT]. 23 * Sec. 4. AS 37.13.120 is amended by adding a new subsection to read: 24 (o) For purposes of (g) of this section, "investment grade" means a Standard 25 & Poor's Corporation rating BBB or better, or Moody's Investors Service, Inc., rating 26 of Baa or better, including a rating with a "+" or "-" designation or other variations 27 that occur within these ratings, or a comparable rating by another nationally recognized 28 rating organization. 29 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).