CSHB 466(STA): "An Act relating to investments of Alaska permanent fund assets; authorizing the Board of Trustees of the Alaska Permanent Fund Corporation to loan permanent fund assets to the Alaska Natural Gas Development Authority for use in developing North Slope natural gas resources and in transporting the natural gas, and relating to those loans; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 466(STA) 01 "An Act relating to investments of Alaska permanent fund assets; authorizing the Board 02 of Trustees of the Alaska Permanent Fund Corporation to loan permanent fund assets 03 to the Alaska Natural Gas Development Authority for use in developing North Slope 04 natural gas resources and in transporting the natural gas, and relating to those loans; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 37.13.120(e) is amended to read: 08 (e) The corporation may not borrow money or guarantee from principal of the 09 fund the obligations of others except as provided in this subsection. With respect to 10 [REAL PROPERTY] investments of the fund, the corporation may, through an entity 11 in which the investment is made, borrow money if the borrowing is without recourse 12 to the corporation and the fund. 13 * Sec. 2. AS 37.13.120(k) is amended to read:
01 (k) The board shall establish and from time to time as necessary modify 02 guidelines for the investment of the assets of the fund. Before adoption of any 03 guidelines, the guidelines shall be reported to the Legislative Budget and Audit 04 Committee for review and comment. Notwithstanding (g), (h), and (j) of this section 05 or the percentage investment limitations under (i) of this section and so long as doing 06 so satisfies the prudent-investor rule under (a) of this section, the board may invest up 07 to 15 [FIVE] percent of the total assets of the fund in either or a combination of the 08 following: 09 (1) other types of investments not specifically listed in (g) of this 10 section; 11 (2) categories of investment subject to the percentage investment 12 limitations established in (i) of this section, even though investing additional assets in 13 a category will cause the aggregate investment in the category to exceed the applicable 14 percentage limitation. 15 * Sec. 3. AS 37.13.120 is amended by adding a new subsection to read: 16 (q) In addition to investments made under (g) of this section, the board may 17 make loans of fund assets to the Alaska Natural Gas Development Authority for use in 18 developing North Slope natural gas resources and in transporting the natural gas. The 19 amount and terms of each loan made under this subsection shall be established by the 20 board. 21 * Sec. 4. AS 41.41 is amended by adding a new section to article 2 to read: 22 Sec. 41.41.205. Loans from permanent fund. The authority may enter into 23 loan agreements with the Alaska Permanent Fund Corporation under AS 37.13.120(q). 24 Money from a loan may be used only to carry out one or more of the purposes listed in 25 AS 41.41.010(a)(1) - (4). 26 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).