SCS CSHB 213(FIN): "An Act relating to the investment, appropriation, and administration of the public school trust fund."

00                SENATE CS FOR CS FOR HOUSE BILL NO. 213(FIN)                                                             
01 "An Act relating to the investment, appropriation, and administration of the public                                     
02 school trust fund."                                                                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.10.071(d) is amended to read:                                                                   
05 (d)  In exercising investment, custodial, or depository powers or duties under                                          
06 this section, the fiduciary or the fiduciary's designee is liable for a breach of a duty                                
07 that is assigned or delegated under this section, or under AS 14.40.255, 14.40.280(c),                                  
08 14.40.400(b), AS 37.10.070, AS 37.14.160 [AS 37.14.110(c), 37.14.160], or                                           
09 37.14.170. However, the fiduciary or the designee is not liable for a breach of a duty                                  
10       that has been delegated to another person if the delegation is prudent under the                                  
11       applicable standard of prudence set out in statute or if the duty is assigned by law to                           
12       another person, except to the extent that the fiduciary or designee                                               
13                 (1)  knowingly participates in, or knowingly undertakes to conceal, an                                  
14       act or omission of another person knowing that the act or omission is a breach of that                            
01       person's duties under this chapter;                                                                               
02                 (2)  by failure to comply with this section in the administration of                                    
03       specific responsibilities, enables another person to commit a breach of duty; or                                  
04                 (3)  has knowledge of a breach of duty by another person, unless the                                    
05       fiduciary or designee makes reasonable efforts under the circumstances to remedy the                              
06       breach.                                                                                                         
07    * Sec. 2. AS 37.14.160 is amended to read:                                                                         
08            Sec. 37.14.160. Duties of the commissioner of revenue. The commissioner of                                 
09       revenue is the treasurer of the trust fund created in AS 37.14.110 and shall                                      
10 (1)  in carrying out investment duties under this section, exercise the                                                 
11 same powers and duties established for the Alaska Retirement Management Board in                                        
12       AS 37.10.220;                                                                                                     
13 (2)  deposit the principal and income from investments into [IN                                                     
14       SEPARATE PRINCIPAL AND INCOME ACCOUNTS FOR] the fund;                                                             
15 (3)  invest and maintain accounting records [THAT DISTINGUISH                                                           
16       BETWEEN THE PRINCIPAL AND INCOME OF THE FUND];                                                                    
17 (4)  provide reports to the board established under AS 37.14.120 on the                                                 
18       condition and investment performance of the fund;                                                             
19 (5)  determine, on July 1 of each year, the monthly average market                                                  
20       value of the fund for the five fiscal years preceding the previous fiscal year.                               
21    * Sec. 3. AS 37.14 is amended by adding a new section to read:                                                     
22 Sec. 37.14.165. Use of the public school trust fund. Each year, the legislature                                       
23 may appropriate not more than five percent of the amount determined by the                                              
24       commissioner of revenue under AS 37.14.160(5) for the following purposes:                                         
25                 (1)  funding support of the state public school program; and                                            
26                 (2)  reimbursement of the costs of administration of the fund.                                          
27    * Sec. 4. AS 37.14.170 is amended to read:                                                                         
28 Sec. 37.14.170. Investments. The commissioner of revenue is the fiduciary of                                          
29 the trust fund and shall invest the fund to provide increasing returns from capital                                 
30 appreciation and net income over long-term periods to the fund's current                                        
31 [INCOME] beneficiaries. The commissioner may invest the money in the fund on the                                        
01       basis of probable total rate of return to promote the long-term generation of capital                         
02       appreciation and income. In managing the trust fund, the commissioner shall                                   
03                 (1)  consider the status of the fund's capital and the income generated                                 
04       on both a current and a probable future basis;                                                                    
05                 (2)  determine the appropriate investment objectives;                                                   
06                 (3)  establish investment policies to achieve the objectives; and                                       
07                 (4)  act only in regard to the financial interests of the fund's                                        
08       beneficiaries.                                                                                                    
09    * Sec. 5. AS 37.14.110(c) and 37.14.140 are repealed.