00SENATE BILL NO. 245                                                                                                     
01 "An Act relating to investments of the permanent fund involving equity interests                                        
02 in and debt obligations secured by mortgages on real estate; and providing for                                          
03 an effective date."                                                                                                     
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 37.13.120(g)(16) is amended to read:                                                                
06   (16)  equity interests in, and debt obligations secured by mortgages                                                 
07 granting a first lien on, real estate improved by completed and substantially rented                                    
08 buildings and located in the United States [, IF THESE INVESTMENTS ARE MADE                                             
09    (A)  IN A CORPORATION, PARTNERSHIP, TRUST, OR                                                                      
10 OTHER ENTITY IN WHICH, AT THE CONCLUSION OF EACH                                                                        
11 INVESTMENT TRANSACTION, AT LEAST 60 PERCENT OF THE                                                                      
12 BENEFICIAL OWNERSHIP INTERESTS ARE HELD BY OTHER                                                                        
13 INSTITUTIONAL INVESTORS, AND WHICH IS ORGANIZED AND                                                                     
14 OPERATED FOR THE PURPOSE OF MAKING REAL ESTATE                                                                          

01 INVESTMENTS BY A BANK, INSURANCE COMPANY, OR OTHER                                                                      
02 MANAGER OF INSTITUTIONAL FUNDS THAT HAS HAD AT LEAST                                                                    
03 FIVE YEARS OF EXPERIENCE IN THE MANAGEMENT OF REAL                                                                      
04 ESTATE INVESTMENTS OF INSTITUTIONAL INVESTORS; OR                                                                       
05   (B)  WITH CORPORATIONS, PARTNERSHIPS, TRUSTS, OR                                                                    
06 ENTITIES IN WHICH, AT THE CONCLUSION OF EACH INVESTMENT                                                                 
07 TRANSACTION, AT LEAST 60 PERCENT OF THE BENEFICIAL                                                                      
08 OWNERSHIP INTERESTS IN THE CO-INVESTING ENTITY OR ENTITIES                                                              
09 AS A WHOLE ARE HELD BY INSTITUTIONAL INVESTORS, AND IF                                                                  
10   (i)  AT THE TIME OF INVESTMENT THE FUND                                                                            
11 HAS NO MORE THAN A 40 PERCENT BENEFICIAL OWNERSHIP                                                                      
12 INTEREST IN THE REAL ESTATE INVESTED IN AS A WHOLE;                                                                     
13   (ii)  THE RIGHTS AND OBLIGATIONS OF THE                                                                            
14 FUND ARE SUBSTANTIALLY SIMILAR TO THOSE OF THE                                                                          
15 OTHER INSTITUTIONAL INVESTORS, EXCEPT FOR THE                                                                           
16 PERCENTAGE INTEREST IN THE PROPERTY; AND                                                                                
17   (iii)  THE PROPERTY IS MANAGED AND                                                                                 
18 OPERATED BY AN ENTITY THAT HAS HAD AT LEAST FIVE                                                                        
19 YEARS OF EXPERIENCE IN THE MANAGEMENT OF REAL                                                                           
20 ESTATE INVESTMENTS OF INSTITUTIONAL INVESTORS];                                                                         
21    * Sec. 2.  This Act takes effect immediately under AS 01.10.070(c).