SB 311: "An Act relating to the public school trust fund, the Alaska children's trust, and the Alaska heritage endowment fund; and providing for an effective date."
00 SENATE BILL NO. 311 01 "An Act relating to the public school trust fund, the Alaska children's trust, and the 02 Alaska heritage endowment fund; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.57.100 is amended to read: 05 Sec. 14.57.100. Acquisitions. Subject to appropriation by the legislature 06 under AS 37.14.530, the director may use money appropriated from [THE 07 BALANCE OF THE NET INCOME ACCOUNT OF] the Alaska heritage endowment 08 fund to acquire culturally or historically significant artifacts, natural history 09 specimens, art objects, collections, and other items, materials, or properties that 10 represent and document Alaska's land, natural history, and people for 11 (1) the Alaska State Museum; and 12 (2) the Sheldon Jackson Museum. 13 * Sec. 2. AS 14.57.120 is amended to read: 14 Sec. 14.57.120. Criteria applicable to acquisitions from the fund. Subject
01 to approval given by the Museum Collections Advisory Committee under 02 AS 14.57.050(b), the director may 03 (1) establish by contract the terms and conditions of custody, 04 protection, conservation, and exhibition of an item acquired by the state museum if the 05 item is acquired and custody of it is assigned to another institution; 06 (2) transfer ownership of an item to an institution having custody of an 07 item acquired from [THE NET INCOME ACCOUNT OF] the fund if the director is 08 satisfied that the institution will provide necessary care and protection of the item; or 09 (3) assign long-term custody of an item to an institution having 10 custody of an item acquired from [THE NET INCOME ACCOUNT OF] the fund if 11 the director is satisfied that the institution to which custody of the item is transferred 12 will provide necessary care and protection of the item in accordance with a contract 13 entered into under (1) of this section. 14 * Sec. 3. AS 14.57.130 is amended to read: 15 Sec. 14.57.130. Disposition of acquired items. Subject to approval of the 16 Museum Collections Advisory Committee under AS 14.57.050(b), the director may 17 establish a deaccession policy under which the director may exchange or otherwise 18 convey title to an item acquired from [THE NET INCOME ACCOUNT OF] the fund 19 in accordance with generally accepted principles governing the disposal of these 20 items. 21 * Sec. 4. AS 28.10.421(d)(14) is amended to read: 22 (14) special request Alaska children's trust plates.........................$100 23 plus the fee required for that vehicle under (b)(1) or (2) of this section; the fee required 24 by this paragraph shall be collected only on the first issuance and the replacement of 25 special request plates; the commissioner of administration shall separately account for 26 the fees received under this paragraph that the department deposits in the general fund; 27 notwithstanding (g) of this section, the annual estimated balance in the account that is 28 in excess of the cost of issuing special request plates may be appropriated by the 29 legislature into [THE PRINCIPAL OF] the Alaska children's trust under 30 AS 37.14.200. 31 * Sec. 5. 37.10.071(d) is amended to read:
01 (d) In exercising investment, custodial, or depository powers or duties under 02 this section, the fiduciary or the fiduciary's designee is liable for a breach of a duty 03 that is assigned or delegated under this section, or under AS 14.25.180, AS 14.40.255, 04 14.40.280(c), 14.40.400(b), AS 37.10.070, AS 37.14.110(c), 37.14.160, [37.14.170,] 05 or AS 39.35.080. However, the fiduciary or the designee is not liable for a breach of a 06 duty that has been delegated to another person if the delegation is prudent under the 07 applicable standard of prudence set out in statute or if the duty is assigned by law to 08 another person, except to the extent that the fiduciary or designee 09 (1) knowingly participates in, or knowingly undertakes to conceal, an 10 act or omission of another person knowing that the act or omission is a breach of that 11 person's duties under this chapter; 12 (2) by failure to comply with this section in the administration of 13 specific responsibilities, enables another person to commit a breach of duty; or 14 (3) has knowledge of a breach of duty by another person, unless the 15 fiduciary or designee makes reasonable efforts under the circumstances to remedy the 16 breach. 17 * Sec. 6. AS 37.14.110(b) is amended to read: 18 (b) The [PRINCIPAL OF THE] fund established in (a) of this section consists 19 of 20 (1) the balance of the public school permanent fund on July 1, 1978; 21 [AND] 22 (2) sums transferred under AS 37.14.150; 23 (3) appropriations to the fund; and 24 (4) income earned on investments of fund assets. 25 * Sec. 7. AS 37.14.110(c) is repealed and reenacted to read: 26 (c) The commissioner of revenue shall manage the fund as an endowment, 27 with the goal that the purchasing power of the fund will not diminish over time 28 without regard to additional contributions that may be made to the fund. The 29 commissioner shall invest the assets of the fund in a manner likely to yield at least a 30 five percent real rate of return over time. 31 * Sec. 8. AS 37.14.110 is amended by adding a new subsection to read:
01 (d) Except for amounts deposited as a continuance of the dedication for the 02 support of public schools existing on April 24, 1956, relating to the Act of March 4, 03 1915, 38 Stat. 1214, nothing in this section creates a dedicated fund with respect to 04 amounts deposited in the fund. 05 * Sec. 9. AS 37.14.130 is amended to read: 06 Sec. 37.14.130. Powers and duties of board. The board created in 07 AS 37.14.120 has the following powers and duties: 08 (1) to hold regular meetings and special meetings considered 09 necessary; and 10 (2) to have prepared an annual accounting of [THE PRINCIPAL AND 11 INCOME OF] the fund established in AS 37.14.110 [; AND 12 (3) REPEALED]. 13 * Sec. 10. AS 37.14.140 is repealed and reenacted to read: 14 Sec. 37.14.140. Use of fund. As soon as practicable after July 1 of each year, 15 the commissioner of revenue shall determine the average month-end market value of 16 the fund for the immediately preceding three fiscal years. The commissioner shall 17 identify five percent of that amount as available for appropriation by the legislature for 18 support of the state public school program and for reimbursement of the administrative 19 costs of the fund. 20 * Sec. 11. AS 37.14.160 is repealed and reenacted to read: 21 Sec. 37.14.160. Powers and duties of the commissioner of revenue. In 22 carrying out the investment duties under AS 37.14.110 - 37.14.170, the commissioner 23 of revenue has the powers and duties set out in AS 37.10.071. The commissioner shall 24 provide reports to the board established in AS 37.14.120 on the condition and 25 investment performance of the fund. 26 * Sec. 12. AS 37.14.200(b) is amended to read: 27 (b) The [PRINCIPAL OF THE] trust consists of 28 (1) legislative appropriations to the trust; [AND] 29 (2) gifts, bequests, and contributions of cash or other assets from a 30 person; and 31 (3) income earned on investments of trust assets.
01 * Sec. 13. AS 37.14.200 is amended by adding new subsections to read: 02 (d) The commissioner of revenue shall manage the trust as an endowment, 03 with the goal that the purchasing power of the trust will not diminish over time 04 without regard to additional contributions that may be made to the trust. The 05 commissioner shall invest the assets of the trust in a manner likely to yield at least a 06 five percent real rate of return over time. 07 (e) Nothing in this section creates a dedicated fund. 08 * Sec. 14. AS 37.14.210 is repealed and reenacted to read: 09 Sec. 37.14.210. Power and duties of the commissioner of revenue. In 10 carrying out the investment duties under AS 37.14.200 - 37.14.270, the commissioner 11 of revenue has the powers and duties set out in AS 37.10.071. The commissioner shall 12 provide reports to the board established in AS 37.14.225 on the condition and 13 investment performance of the trust. 14 * Sec. 15. AS 37.14.230 is amended to read: 15 Sec. 37.14.230. Powers and duties of the board. When acting as 16 administrator of the trust, the board shall 17 (1) hold regular and special meetings it considers necessary; the board 18 may hold meetings by teleconference; 19 (2) award grants from money appropriated from [THE NET 20 INCOME OF] the trust to community-based [PROGRAMS AND] projects that the 21 board finds will aid in the prevention of child abuse and neglect; 22 (3) monitor approved [PROGRAMS AND] projects for compliance 23 with AS 37.14.200 - 37.14.270; 24 (4) before providing assistance to a [PROGRAM OR] project, approve 25 written findings on the [PROGRAM OR] project that include a consideration of the 26 means of measuring the effectiveness of the [PROGRAM OR] project; 27 (5) apply for [,] and use money appropriated from [NET INCOME 28 FROM] the trust to obtain [,] private and federal grants for the prevention of child 29 abuse and neglect; 30 (6) solicit contributions, gifts, and bequests to the trust; 31 (7) keep audio tape or other electronic recordings of each meeting of
01 the board to be made available on request; and 02 (8) submit to the governor and make available to the legislature by 03 February 1 each year a report describing 04 (A) the child abuse and neglect prevention services that were 05 provided by the [PROGRAMS AND] projects to which the board awarded 06 grants; and 07 (B) the annual level of contributions, income, and expenses of 08 the trust. 09 * Sec. 16. AS 37.14.240 is repealed and reenacted to read: 10 Sec. 37.14.240. Use of the trust. (a) As soon as practicable after July 1 of 11 each year, the commissioner of revenue shall determine the average month-end market 12 value of the trust for the immediately preceding three fiscal years. The commissioner 13 shall identify five percent of that amount as available for appropriation by the 14 legislature for uses described in (b) of this section. 15 (b) Appropriations of the amount identified under (a) of this section may be 16 used for the following purposes: 17 (1) the awarding of grants under AS 37.14.230 and 37.14.250; 18 (2) obtaining private and federal grants for the trust; 19 (3) soliciting contributions, gifts, and bequests for the trust; 20 (4) reimbursement of the commissioner of revenue for the costs of 21 managing the trust. 22 (c) In addition to the amount identified under (a) of this section, up to 23 $150,000 a year may be appropriated from the trust for the administrative expenses of 24 the board relating to AS 37.14.200 - 37.14.270. 25 * Sec. 17. AS 37.14.250 is amended to read: 26 Sec. 37.14.250. Grants. (a) In awarding grants from money appropriated 27 from [THE NET INCOME OF] the trust, the board shall consider the proposals of a 28 qualified applicant only after the applicant has submitted a detailed proposal in the 29 form prescribed by the board. The board may not award a grant unless the board 30 makes written findings that 31 (1) the proposed project, if successful, will help prevent child abuse or
01 neglect; 02 (2) the application for financial assistance contains an adequate plan 03 for project implementation, including both financial feasibility and project 04 effectiveness; 05 (3) the applicant demonstrates that sufficient technical expertise is 06 available to accomplish the objectives of the proposed [PROGRAM OR] project; and 07 (4) the applicant has identified costs associated with and ancillary to 08 the project, additional governmental costs, future obligations generated by the 09 [PROGRAM OR] project, and necessary operating, maintenance, or other support 10 costs for the life of the [PROGRAM OR] project. 11 (b) The board may establish, by regulation, other requirements for the award 12 of grants under this section if necessary to carry out the purpose of the trust. 13 (c) The board shall award grants in amounts that 14 (1) are appropriate to the conditions of the applicant and the proposed 15 [PROGRAM OR] project; and 16 (2) will make the most effective use of the money available. 17 (d) The amount of all grants awarded by the board during a 12-month period 18 to a single project [OR PROGRAM] may not exceed $50,000. The board may not 19 finance more than 75 percent of the total cost of a [PROGRAM OR] project during 20 each of the first two years for which the [PROGRAM OR] project receives a grant, 50 21 percent of the original total cost of the project during each of the third and fourth 22 years, and 25 percent of the original total cost of the project during each year 23 thereafter. 24 (e) A recipient of a grant may not use more than 10 percent of the grant for 25 administration of the [PROGRAM OR] project. 26 (f) To the extent consistent with its [THE] terms or conditions [OF THE 27 GRANT], a [PRIVATE OR FEDERAL] grant awarded to the board shall be 28 distributed in the same manner as provided for grants under this section and 29 AS 37.14.260. 30 * Sec. 18. AS 37.14.260 is amended to read: 31 Sec. 37.14.260. Eligibility for grants. The board may award a grant to an
01 applicant if 02 (1) the applicant has submitted a proposal that is acceptable to the 03 board; and 04 (2) [PROGRAMS AND] projects, if any, of the applicant that have 05 previously received a grant from the board have complied with all requirements of that 06 assistance and have performed with sufficient success or promise to warrant further 07 financial assistance. 08 * Sec. 19. AS 37.14.500 is amended to read: 09 Sec. 37.14.500. Alaska heritage endowment fund established. The Alaska 10 heritage endowment fund is established as a separate endowment trust fund of the 11 state. The [PRINCIPAL OF THE] fund consists of 12 (1) legislative appropriations to the fund; [AND] 13 (2) gifts, bequests, and contributions of cash or other assets made by a 14 person who has specified their placement in the fund; and 15 (3) income earned on investments of fund assets [PRINCIPAL]. 16 * Sec. 20. AS 37.14.500 is amended by adding new subsections to read: 17 (b) The commissioner of revenue shall manage the fund as an endowment, 18 with the goal that the purchasing power of the fund will not diminish over time 19 without regard to additional contributions that may be made to the fund. If 20 practicable, the commissioner shall invest the assets of the fund in a manner likely to 21 yield at least a five percent real rate of return over time. 22 (c) Nothing in this section creates a dedicated fund. 23 * Sec. 21. AS 37.14.520 is repealed and reenacted to read: 24 Sec. 37.14.520. Powers and duties of the commissioner of revenue. In 25 carrying out the investment duties under AS 37.14.500 - 37.14.540, the commissioner 26 of revenue has the powers and duties set out in AS 37.10.071. The commissioner shall 27 provide reports to the Museum Collections Advisory Committee established in 28 AS 14.57.020 on the condition and investment performance of the fund. 29 * Sec. 22. AS 37.14.530 is repealed and reenacted to read: 30 Sec. 37.14.530. Use of fund. (a) As soon as practicable after July 1 of each 31 year, the commissioner of revenue shall determine the average month-end market
01 value of the fund for the immediately preceding three fiscal years. The commissioner 02 shall identify five percent of that amount as available for appropriation by the 03 legislature. 04 (b) Money appropriated from the fund may be used for the following 05 purposes: 06 (1) reimbursement to the commissioner of revenue for the costs of 07 managing the fund; 08 (2) the administrative expenses of the Museum Collection Advisory 09 Committee relating to the acquisitions from the fund; 10 (3) acquisitions authorized by AS 14.57.100 - 14.57.199; 11 (4) reimbursement of other costs of administration of the fund. 12 * Sec. 23. AS 14.57.199(3); AS 37.14.170, 37.14.200(c), and 37.14.510 are repealed. 13 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION. (a) On or after the effective date of this Act, the commissioner of 16 revenue shall seek consent from persons who have made gifts, bequests, and contributions of 17 cash or other assets under AS 37.14.500(2), as that statute read on the day before the effective 18 date of this Act, to account for the gifts, bequests, and contributions of cash or other assets as 19 provided for in this Act. If consent is not obtained, the commissioner of revenue shall 20 continue to account for the gift, bequest, or contribution in accordance with sec. 5, ch. 82, 21 SLA 1992. 22 (b) Money in the net income account of the Alaska heritage endowment fund 23 (AS 37.14.510) on the effective date of this Act shall be retained in the Alaska heritage 24 endowment fund (AS 37.14.500). 25 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 REVISOR OF STATUTES INSTRUCTIONS. The revisor of statutes shall change 28 the heading of art. 2, AS 14.57, from "Use of Net Income of Alaska Heritage Endowment 29 Fund" to "Use of Appropriations from Alaska Heritage Endowment Fund." 30 * Sec. 26. This Act takes effect immediately under AS 01.10.070(c).