HB 129: "An Act relating to fiscal management of endowment assets of the University of Alaska; amending the definition of `university receipts' to include distribution from university endowments and the total return from the University of Alaska's endowment trust fund for land obtained under the Act of Congress of January 21, 1929, as amended, and transferring responsibility for management and investment of those assets; and making technical amendments to provisions relating to federal grants and appropriations from federal land grant college fund sources that must be paid to the state."
00HOUSE BILL NO. 129 01 "An Act relating to fiscal management of endowment assets of the University of 02 Alaska; amending the definition of `university receipts' to include distribution from 03 university endowments and the total return from the University of Alaska's 04 endowment trust fund for land obtained under the Act of Congress of 05 January 21, 1929, as amended, and transferring responsibility for management and 06 investment of those assets; and making technical amendments to provisions relating 07 to federal grants and appropriations from federal land grant college fund sources 08 that must be paid to the state." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 14.40.280 is amended to read: 11 Sec. 14.40.280. Endowments and donations. [ALL MONETARY GIFTS, 12 BEQUESTS, OR ENDOWMENTS THAT ARE MADE TO THE UNIVERSITY OF 13 ALASKA FOR THE PURPOSE OF THE SEPARATE TRUST FUND CREATED 14 UNDER AS 14.40.400 SHALL BE TRANSFERRED TO THE DEPARTMENT OF
01 REVENUE. THE DEPARTMENT OF REVENUE SHALL MANAGE THAT MONEY 02 IN ACCORDANCE WITH AS 14.40.400.] Title to and control or possession of land, 03 personal property, [AND ALL] money, and other property that [OTHER THAN 04 THAT TRANSFERRED TO THE DEPARTMENT OF REVENUE, WHICH] is 05 devised, bequeathed, or given to the university shall be taken by the university in its 06 corporate capacity acting by and through the Board of Regents [REGENTS] or an 07 authorized agent [,] and shall be entered in the perpetual inventory of the university 08 established in AS 14.40.330. 09 * Sec. 2. AS 14.40.280 is amended by adding new subsections to read: 10 (b) All monetary gifts, bequests, or endowments that are made to the 11 University of Alaska for the purpose of the separate endowment trust fund established 12 under AS 14.40.400 shall be deposited into that endowment trust fund. 13 (c) Except as provided by (b) of this section, the monetary gifts, bequests, or 14 endowments that are made to the University of Alaska shall be managed and invested 15 by the Board of Regents. In carrying out its management and investment 16 responsibilities under this subsection, the Board of Regents has the same power and 17 obligations to carry out duties with respect to the endowments of the University of 18 Alaska as are provided to and required of the Alaska State Pension Investment Board 19 under AS 14.25.180. 20 * Sec. 3. AS 14.40.290(a) is amended to read: 21 (a) Federal grants and appropriations paid to the commissioner of revenue 22 under AS 14.40.380, 14.40.410, or 14.40.430, or from a source described in 23 AS 14.40.450, shall be transferred to the state treasury under AS 37.10.060 [THE 24 UNIVERSITY OF ALASKA SHALL HOLD ALL PROPERTY ACQUIRED BY IT]. 25 The Department of Administration, upon requisitions by the Board of Regents signed 26 by its president and secretary, shall pay to the treasurer of the Board of Regents all 27 federal land grant college funds coming into the possession of the Department of 28 Administration and subject to requisition by the Board of Regents and shall disburse 29 federal funds in aid of land grant colleges in accordance with the federal statute 30 providing for disbursement. 31 * Sec. 4. AS 14.40.360 is amended to read:
01 Sec. 14.40.360. Board of Regents authorized to select and to sell or lease 02 land granted by Act of Congress. The Board of Regents may select the land granted 03 to Alaska by the Act of Congress approved January 21, 1929, as amended, [AND] 04 may sell or lease the land, and may deposit the net income as provided in 05 AS 14.40.400(a) [PROCEEDS IN THE STATE TREASURY] in conformity with that 06 Act. 07 * Sec. 5. AS 14.40.400(a) is amended to read: 08 (a) The Board of Regents [DEPARTMENT OF REVENUE] shall establish 09 a separate endowment trust fund in which shall be held in trust in perpetuity 10 (1) all net income derived from the sale or lease of the land granted 11 under the Act of Congress approved January 21, 1929, as amended; and 12 (2) [IN WHICH] all monetary gifts, bequests, or endowments made to 13 the University of Alaska for the purpose of the fund [, SHALL BE HELD IN TRUST]. 14 * Sec. 6. AS 14.40.400(b) is amended to read: 15 (b) The Board of Regents [COMMISSIONER OF REVENUE] is the fiduciary 16 of the [TRUST] fund. The Board of Regents [AND] shall account for and invest the 17 fund. In carrying out its investment responsibilities under this subsection, the 18 Board of Regents has the same powers and duties with respect to the fund as are 19 provided to and required of the Alaska State Pension Investment Board under 20 AS 14.25.180 [AS SET OUT IN AS 37.14.110(c), 37.14.160, AND 37.14.170, 21 EXCEPT THAT THE COMMISSIONER SHALL REPORT THE CONDITION AND 22 INVESTMENT PERFORMANCE OF THE FUND TO THE BOARD OF REGENTS]. 23 * Sec. 7. AS 14.40.400(c) is amended to read: 24 (c) The total return [NET INCOME] from the [TRUST] fund shall be used 25 exclusively for the University of Alaska, as the successor under AS 14.40.030 of the 26 Agricultural College and School of Mines. 27 * Sec. 8. AS 14.40.400(d) is amended to read: 28 (d) The [NO PART OF THE] proceeds arising from the sale or disposal of 29 land granted under the Act of Congress approved January 21, 1929, as amended, 30 [THIS GRANT] may not be used for the support of a sectarian or denominational 31 college or school.
01 * Sec. 9. AS 14.40.400 is amended by adding a new subsection to read: 02 (f) In this section, 03 (1) "fund" means the separate endowment trust fund established under 04 (a) of this section; 05 (2) "total return" means the total earning of the fund, including current 06 yield, gains, and capital appreciation, less all costs, expenses, losses, and capital 07 depreciation. 08 * Sec. 10. AS 14.40.491 is amended to read: 09 Sec. 14.40.491. Definition of university receipts. In AS 14.40.120 - 10 14.40.491, "university receipts" includes 11 (1) student fees, including tuition; 12 (2) receipts from university auxiliary services; 13 (3) recovery of indirect costs of university activities; 14 (4) receipts from sales and rentals of university property; 15 (5) federal receipts; 16 (6) gifts, grants, and contracts; [AND] 17 (7) receipts from sales, rentals, and the provision of services of 18 educational activities; and 19 (8) receipts attributable to amounts distributed from university 20 endowments established and managed under AS 14.40.280 and from the 21 endowment trust fund established and managed under AS 14.40.400. 22 * Sec. 11. AS 36.30.850(b)(15) is amended to read: 23 (15) a contract that is a delegation, in whole or in part, of investment 24 powers held by 25 (A) the commissioner of revenue under [AS 14.40.400,] 26 AS 14.42.200, 14.42.210, AS 18.56.095, AS 37.10.070, 37.10.071, or 27 AS 37.14; 28 (B) the Board of Regents of the University of Alaska under 29 AS 14.40.250 - 14.40.491; 30 * Sec. 12. AS 37.10.071(d) is amended to read: 31 (d) In exercising investment, custodial, or depository powers or duties under
01 this section, the fiduciary or the fiduciary's designee is liable for a breach of a duty 02 that is assigned or delegated under this section, or under AS 14.25.180, AS 14.40.255, 03 14.40.280(c), 14.40.400(b) [AS 14.40.400(b)], AS 37.10.070, AS 37.14.110(c), 04 37.14.160, 37.14.170, or AS 39.35.080. However, the fiduciary or the designee is not 05 liable for a breach of a duty that has been delegated to another person if the delegation 06 is prudent under the applicable standard of prudence set out in statute or if the duty 07 is assigned by law to another person, except to the extent that the fiduciary or designee 08 (1) knowingly participates in, or knowingly undertakes to conceal, an 09 act or omission of another person knowing that the act or omission is a breach of that 10 person's duties under this chapter; 11 (2) by failure to comply with this section in the administration of 12 specific responsibilities, enables another person to commit a breach of duty; or 13 (3) has knowledge of a breach of duty by another person, unless the 14 fiduciary or designee makes reasonable efforts under the circumstances to remedy the 15 breach. 16 * Sec. 13. AS 14.40.400(e) is repealed. 17 * Sec. 14. UNIVERSITY OF ALASKA ENDOWMENTS AND DONATIONS AND 18 UNIVERSITY OF ALASKA ENDOWMENT TRUST FUND: TRANSITION. (a) A contract, 19 right, liability, or obligation in effect on the effective date of this Act remains in effect 20 notwithstanding the amendments to AS 14.40.280 or 14.40.400 made in secs. 1, 2, 5 - 9, and 21 13 of this Act. 22 (b) Assets and liabilities of the University of Alaska endowment trust fund established 23 in AS 14.40.400(a) held by the Department of Revenue on the effective date of this Act shall 24 be transferred by the Department of Revenue to the University of Alaska to implement this 25 Act.