HB 160: "An Act relating to the operation of the public school trust fund and the Alaska children's trust, and making a conforming amendment relating to the commissioner of revenue's power and duty to manage investments for the Alaska heritage endowment fund; and providing for an effective date."
00 HOUSE BILL NO. 160 01 "An Act relating to the operation of the public school trust fund and the Alaska 02 children's trust, and making a conforming amendment relating to the commissioner of 03 revenue's power and duty to manage investments for the Alaska heritage endowment 04 fund; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 37.10.071(d) is amended to read: 07 (d) In exercising investment, custodial, or depository powers or duties under 08 this section, the fiduciary or the fiduciary's designee is liable for a breach of a duty 09 that is assigned or delegated under this section, or under AS 14.40.255, 14.40.280(c), 10 14.40.400(b), AS 37.10.070, AS 37.14.110(c), or 37.14.160 [, OR 37.14.170]. 11 However, the fiduciary or the designee is not liable for a breach of a duty that has been 12 delegated to another person if the delegation is prudent under the applicable standard 13 of prudence set out in statute or if the duty is assigned by law to another person, 14 except to the extent that the fiduciary or designee
01 (1) knowingly participates in, or knowingly undertakes to conceal, an 02 act or omission of another person knowing that the act or omission is a breach of that 03 person's duties under this chapter; 04 (2) by failure to comply with this section in the administration of 05 specific responsibilities, enables another person to commit a breach of duty; or 06 (3) has knowledge of a breach of duty by another person, unless the 07 fiduciary or designee makes reasonable efforts under the circumstances to remedy the 08 breach. 09 * Sec. 2. AS 37.14.110(b) is amended to read: 10 (b) The principal of the fund established in (a) of this section consists of 11 (1) the balance of the public school permanent fund on July 1, 1978; 12 [AND] 13 (2) sums transferred under AS 37.14.150; 14 (3) appropriations to the fund; and 15 (4) income earned on investments of trust assets. 16 * Sec. 3. AS 37.14.110(c) is repealed and reenacted to read: 17 (c) The commissioner of revenue shall manage the fund as an endowment, 18 with the goal that the purchasing power of the fund will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. The 20 commissioner shall invest the assets of the fund in a manner likely to yield at least a 21 five percent real rate of return over time. 22 * Sec. 4. AS 37.14.110 is amended by adding a new subsection to read: 23 (d) Except for amounts deposited as a continuance of the dedication for the 24 support of public schools existing on April 24, 1956, relating to 38 Stat. 1214 (Act of 25 March 4, 1915), nothing in this section creates a dedicated fund with respect to 26 amounts deposited into the fund. 27 * Sec. 5. AS 37.14.130 is amended to read: 28 Sec. 37.14.130. Powers and duties of board. The board created in 29 AS 37.14.120 has the following powers and duties: 30 (1) to hold regular meetings and special meetings considered 31 necessary; and
01 (2) to have prepared an annual accounting of [THE PRINCIPAL AND 02 INCOME OF] the fund established in AS 37.14.110. 03 (3) [REPEALED] 04 * Sec. 6. AS 37.14.140 is repealed and reenacted to read: 05 Sec. 37.14.140. Use of the fund. As soon as practicable after July 1 of each 06 year, the commissioner of revenue shall determine the average month-end market 07 value of the fund for the immediately preceding five fiscal years. The commissioner 08 shall identify five percent of that amount as available for appropriation by the 09 legislature for support of the state public school program and for reimbursement of the 10 administrative costs of the fund. 11 * Sec. 7. AS 37.14.160 is repealed and reenacted to read: 12 Sec. 37.14.160. Powers and duties of the commissioner of revenue. In 13 carrying out the investment duties under AS 37.14.110 - 37.14.160, the commissioner 14 of revenue has the powers and duties set out in AS 37.10.071. The commissioner shall 15 provide reports to the board established under AS 37.14.120 on the condition and 16 investment performance of the fund. 17 * Sec. 8. AS 37.14.200(b) is amended to read: 18 (b) The principal of the trust consists of 19 (1) legislative appropriations to the trust; [AND] 20 (2) gifts, bequests, and contributions of cash or other assets from a 21 person; and 22 (3) income earned on investments of trust assets. 23 * Sec. 9. AS 37.14.200(c) is repealed and reenacted to read: 24 (c) The commissioner of revenue shall manage the trust as an endowment, 25 with the goal that the purchasing power of the trust will not diminish over time 26 without regard to additional contributions that may be made to the trust. The 27 commissioner shall invest the assets of the trust in a manner likely to yield at least a 28 five percent real rate of return over time. 29 * Sec. 10. AS 37.14.200 is amended by adding a new subsection to read: 30 (d) Nothing in this section creates a dedicated fund. 31 * Sec. 11. AS 37.14.210 is repealed and reenacted to read:
01 Sec. 37.14.210. Powers and duties of the commissioner of revenue. In 02 carrying out the investment duties under AS 37.14.200 - 37.14.270, the commissioner 03 of revenue has the powers and duties set out in AS 37.10.071. The commissioner shall 04 provide reports to the board established under AS 37.14.225 on the condition and 05 investment performance of the trust. 06 * Sec. 12. AS 37.14.230 is amended to read: 07 Sec. 37.14.230. Powers and duties of the board. When acting as 08 administrator of the trust, the board shall 09 (1) hold regular and special meetings it considers necessary; the board 10 may hold meetings by teleconference; 11 (2) award grants from the money appropriated from [NET INCOME 12 OF] the trust to community-based programs and projects that the board finds will aid 13 in the prevention of child abuse and neglect; 14 (3) monitor approved programs and projects for compliance with 15 AS 37.14.200 - 37.14.270; 16 (4) before providing assistance to a program or project, approve 17 written findings on the program or project that include a consideration of the means of 18 measuring the effectiveness of the program or project; 19 (5) apply for [,] and use money appropriated [NET INCOME] from 20 the trust to obtain, private and federal grants for the prevention of child abuse and 21 neglect; 22 (6) solicit contributions, gifts, and bequests to the trust; 23 (7) keep audio tape or other electronic recordings of each meeting of 24 the board to be made available on request; and 25 (8) submit to the governor and make available to the legislature by 26 February 1 each year a report describing 27 (A) the child abuse and neglect prevention services that were 28 provided by the programs and projects to which the board awarded grants; and 29 (B) the annual level of contributions, income, and expenses of 30 the trust. 31 * Sec. 13. AS 37.14.240 is repealed and reenacted to read:
01 Sec. 37.14.240. Use of the trust. (a) As soon as practicable after July 1 of each 02 year, the commissioner of revenue shall determine the average month-end market 03 value of the trust for the immediately preceding five fiscal years. The commissioner 04 shall identify five percent of that amount as available for appropriation by the 05 legislature for uses described in (b) of this section. 06 (b) Appropriations of the amount identified under (a) of this section may be 07 used for 08 (1) awarding grants; 09 (2) obtaining private and federal grants for the trust; 10 (3) soliciting contributions, gifts, and bequests for the trust; 11 (4) reimbursing the commissioner of revenue for costs incurred in 12 managing the trust. 13 * Sec. 14. AS 37.14.250(a) is amended to read: 14 (a) In awarding grants from the money appropriated from [NET INCOME 15 OF] the trust, the board shall consider the proposals of a qualified applicant only after 16 the applicant has submitted a detailed proposal in the form prescribed by the board. 17 The board may not award a grant unless the board makes written findings that 18 (1) the proposed project, if successful, will help prevent child abuse or 19 neglect; 20 (2) the application for financial assistance contains an adequate plan 21 for project implementation, including both financial feasibility and project 22 effectiveness; 23 (3) the applicant demonstrates that sufficient technical expertise is 24 available to accomplish the objectives of the proposed program or project; 25 (4) the applicant has identified costs associated with and ancillary to 26 the project, additional governmental costs, future obligations generated by the 27 program or project, and necessary operating, maintenance, or other support costs for 28 the life of the program or project; and 29 (5) the applicant has included in the program or project proposal a plan 30 for sustainability and self-sufficiency after the grant period. 31 * Sec. 15. AS 37.14.520 is amended to read:
01 Sec. 37.14.520. Powers and duties of the commissioner of revenue. The 02 commissioner of revenue is the treasurer of the fund and has the power and duty to 03 (1) act as official custodian of the cash and investments belonging to 04 the fund by securing adequate and safe custodial facilities; 05 (2) receive all items of cash and investments belonging to the fund; 06 (3) collect the principal and income from investments owned or 07 acquired by the fund and deposit the amounts in separate principal and income 08 accounts for the fund; 09 (4) invest and reinvest the assets of the fund as provided in this section 10 and as provided for the investment of funds under AS 37.10.071 [AS 37.14.170]; 11 (5) exercise the powers of an owner with respect to the assets of the 12 fund; 13 (6) maintain accounting records of the fund in accordance with 14 investment accounting principles and with distinction between the principal and 15 income accounts of the fund; 16 (7) engage an independent firm of certified public accountants to 17 annually audit the financial condition of the fund's investments and investment 18 transactions; 19 (8) enter into and enforce contracts or agreements considered 20 necessary for the investment purposes of the fund; 21 (9) report to the commission the condition and investment performance 22 of the fund; 23 (10) do all acts, whether or not expressly authorized, that the 24 commissioner of revenue considers necessary or proper in administering the assets of 25 the fund. 26 * Sec. 16. AS 37.14.170 is repealed. 27 * Sec. 17. This Act takes effect immediately under AS 01.10.070(c).