HB 251: "An Act relating to the Board of Trustees of the Alaska Permanent Fund Corporation; and providing for an effective date."
00 HOUSE BILL NO. 251 01 "An Act relating to the Board of Trustees of the Alaska Permanent Fund Corporation; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.13.050(a) is repealed and reenacted to read: 05 (a) The Board of Trustees of the Alaska Permanent Fund Corporation consists 06 of seven members. One member shall be the commissioner of revenue. The six public 07 members shall be appointed by the Alaska Permanent Fund Corporation appointment 08 committee. Members appointed by the committee may not hold any other state or 09 federal office, position, or employment, either elective or appointive, except as a 10 member of the armed forces of either the United States or of this state. 11 * Sec. 2. AS 37.13.050(b) is amended to read: 12 (b) The six [FOUR] public members of the board must have recognized 13 competence and wide experience in finance, investments, or other business 14 management-related fields. One of the members must have wide experience in
01 socially responsible investing. 02 * Sec. 3. AS 37.13.060 is amended to read: 03 Sec. 37.13.060. Term of office. The public members of the board shall be 04 appointed for terms of six [FOUR] years, and they may be reappointed. The terms of 05 the public members shall be staggered so that not [NO] more than one term of a public 06 member expires each year. 07 * Sec. 4. AS 37.13 is amended by adding a new section to read: 08 Sec. 37.13.065. Appointment committee. (a) The Alaska Permanent Fund 09 Corporation appointment committee consists of the following nine members: 10 (1) two members appointed by the governor; 11 (2) two members appointed by the speaker of the house of 12 representatives; 13 (3) two members appointed by the president of the senate; 14 (4) one member appointed by the leader of the minority organizational 15 caucus of the house of representatives with the greatest number of members; 16 (5) one member appointed by the leader of the minority organizational 17 caucus of the senate with the greatest number of members; and 18 (6) one member appointed by the commissioner of revenue. 19 (b) The purpose of the committee is to appoint the six public members of the 20 board. 21 (c) Appointment committee members are appointed for indefinite terms and 22 may be removed at any time by the governor, the speaker of the house of 23 representatives, the president of the senate, the leader of the minority organizational 24 caucus of the house of representatives with the greatest number of members, the leader 25 of the minority organizational caucus of the senate with the greatest number of 26 members, or the commissioner of revenue, respectively. 27 (d) A vacancy on the appointment committee shall be promptly filled by the 28 governor, the speaker of the house of representatives, the president of the senate, the 29 leader of the minority organizational caucus of the house of representatives with the 30 greatest number of members, the leader of the minority organizational caucus of the 31 senate with the greatest number of members, or the commissioner of revenue, as
01 applicable. 02 (e) Five members of the appointment committee constitute a quorum for the 03 transaction of business and the exercise of the powers and duties of the committee. 04 Action may be taken only upon affirmative vote of a majority of the full membership 05 of the committee. 06 (f) A vacancy on the appointment committee does not impair the authority of a 07 quorum of the committee to exercise all the powers and perform all the duties of the 08 committee. 09 * Sec. 5. AS 37.13.070(a) is amended to read: 10 (a) The Alaska Permanent Fund Corporation appointment committee 11 [GOVERNOR] may remove a public member of the board from office only for cause. 12 A removal by the appointment committee [GOVERNOR] must be in writing and 13 must state the reason for the removal. A member who is removed by the appointment 14 committee [GOVERNOR] may not participate in board business and may not be 15 counted for purposes of establishing a quorum after the member receives written 16 notice of removal from the appointment committee [GOVERNOR]. 17 * Sec. 6. AS 37.13.070(b) is amended to read: 18 (b) A vacancy on the board shall be promptly filled by appointment by the 19 appointment committee [GOVERNOR]. An appointee to a vacancy shall hold office 20 for the balance of the term for which the appointee's predecessor on the board was 21 appointed. 22 * Sec. 7. AS 37.13.080 is amended to read: 23 Sec. 37.13.080. Quorum and voting. Four members of the board constitute a 24 quorum for the transaction of business and the exercise of the powers and duties of the 25 board. Except as provided in AS 37.13.100, action [ACTION] may be taken only 26 upon affirmative vote of a majority of the full membership of the board. 27 * Sec. 8. AS 37.13.100 is amended to read: 28 Sec. 37.13.100. Corporation staff. The board may employ and determine the 29 salary of an executive director. The board may remove the executive director for 30 cause. The board may remove the executive director without cause upon 31 affirmative vote of five members. The executive director may, with the approval of
01 the board, select and employ additional staff as necessary. An employee of the 02 corporation, including the executive director, may not be a member of the board. The 03 executive director and the other employees of the board are in the exempt service 04 under AS 39.25. 05 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 BOARD OF TRUSTEES OF THE ALASKA PERMANENT FUND 08 CORPORATION; TRANSITION. (a) The terms of the members of the Board of Trustees of 09 the Alaska Permanent Fund Corporation, other than the commissioner of revenue, expire on 10 the effective date of this Act. 11 (b) Notwithstanding AS 37.13.060, as amended by sec. 3 of this Act, members of the 12 Board of Trustees of the Alaska Permanent Fund Corporation appointed by the Alaska 13 Permanent Fund Corporation appointment committee under AS 37.13.050(a), as repealed and 14 reenacted by sec. 1 of this Act, are appointed by the appointment committee to initial terms as 15 follows: 16 (1) one member for one year; 17 (2) one member for two years; 18 (3) one member for three years; 19 (4) one member for four years; 20 (5) one member for five years; 21 (6) the member with widespread experience in socially responsible investing 22 under AS 37.13.050(b), as amended by sec. 2 of this Act, for six years. 23 (c) Nothing in this section prevents the appointment of a person whose term expires 24 under (a) of this section to the Board of Trustees of the Alaska Permanent Fund Corporation if 25 the person meets the qualifications of AS 37.13.050(b), as amended by sec. 2 of this Act. 26 * Sec. 10. This Act takes effect January 1, 2023.