CSHB 92(JUD): "An Act relating to the purchase of interests in nonprofit corporations by the University of Alaska."
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.