00CS FOR SENATE BILL NO. 245(L&C)                                                                                         
01 "An Act relating to the board of trustees of the Alaska Permanent Fund                                                  
02 Corporation, investments of the permanent fund involving equity interests in, and                                       
03 debt obligations secured by, mortgages on real estate; and providing for an                                             
04 effective date."                                                                                                        
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  AS 37.13.040 is amended to read:                                                                       
07  Sec. 37.13.040.  ALASKA PERMANENT FUND CORPORATION.  There is                                                         
08 established the Alaska Permanent Fund Corporation.  The corporation is a public                                         
09 corporation and government instrumentality in the Department of Revenue managed                                         
10 by the board of trustees, who have fiduciary responsibility to the people of the state.                                 
11 The purpose of the corporation is to manage and invest the assets of the permanent                                      
12 fund and other funds designated by law in accordance with this chapter.                                                 
13    * Sec. 2.  AS 37.13.120(g)(16) is amended to read:                                                                   
14   (16)  equity interests in, and debt obligations secured by mortgages                                                 

01 granting a first lien on, real estate improved by completed and substantially rented                                    
02 buildings and located in the United States [,] if the total value held by the fund in                                  
03 each investment does not exceed $100,000,000, and, if the total value held by the                                       
04 fund in each investment exceeds $100,000,000, these investments are made                                               
05    (A)  in a corporation, partnership, trust, or other entity in which,                                               
06 at the conclusion of each investment transaction, at least 33 [60] percent of the                                     
07 beneficial ownership interests are held by other institutional investors, and                                           
08 which is organized and operated for the purpose of making real estate                                                   
09 investments by a bank, insurance company, or other manager of institutional                                             
10 funds that has had at least five years of experience in the management of real                                          
11 estate investments of institutional investors; or                                                                       
12   (B)  with corporations, partnerships, trusts, or entities in which,                                                 
13 at the conclusion of each investment transaction, at least 33 [60] percent of the                                     
14 beneficial ownership interests in the co-investing entity or entities as a whole                                        
15 are held by institutional investors, and if                                                                             
16   (i)  at the time of investment the fund has no more than                                                           
17 a 67 [40] percent beneficial ownership interest in the real estate                                                    
18 invested in as a whole;                                                                                                 
19   (ii)  the rights and obligations of the fund are                                                                   
20 substantially similar to those of the other institutional investors, except                                             
21 for the percentage interest in the property; and                                                                        
22   (iii)  the property is managed and operated by an entity                                                           
23 that has had at least five years of experience in the management of real                                                
24 estate investments of institutional investors;                                                                          
25    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).