HB 190: "An Act privatizing the Alaska children's trust as a separate endowment fund; providing for an administrator for the assets of the former trust; establishing conditions for a grant of the balance of the former Alaska children's trust; designating certain receipts as available for grants to the trust's successor; and providing for an effective date."
00 HOUSE BILL NO. 190 01 "An Act privatizing the Alaska children's trust as a separate endowment fund; 02 providing for an administrator for the assets of the former trust; establishing conditions 03 for a grant of the balance of the former Alaska children's trust; designating certain 04 receipts as available for grants to the trust's successor; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 18.50.225(d) is amended to read: 08 (d) The legislature may use the annual estimated balance of the account 09 maintained by the commissioner of administration under AS 37.05.142 to make an 10 appropriation for a grant to a named recipient under AS 37.05.316 to hold in an 11 endowment fund for child abuse and neglect prevention activities and programs 12 [TO THE ALASKA CHILDREN'S TRUST ESTABLISHED UNDER AS 37.14.200]. 13 * Sec. 2. AS 18.50.272(e) is amended to read:
01 (e) The legislature may use the annual estimated balance of the account 02 maintained by the commissioner of administration under AS 37.05.142 for the fees 03 paid for heirloom certificates of marriage under (b) of this section to make an 04 appropriation for a grant to a named recipient under AS 37.05.316 to hold in an 05 endowment fund for child abuse and neglect prevention activities and programs 06 [TO THE ALASKA CHILDREN'S TRUST ESTABLISHED UNDER AS 37.14.200]. 07 * Sec. 3. AS 28.10.181(t) is amended to read: 08 (t) Special request [ALASKA] children's endowment fund [TRUST] plates. 09 Upon application by the owner of a motor vehicle, the department may design and 10 issue registration plates representing the [ALASKA] children's endowment fund 11 [TRUST UNDER AS 37.14.200]. The department may disapprove the issuance of 12 registration plates under this subsection when the requested plates are a duplication of 13 an existing registration. 14 * Sec. 4. AS 28.10.421(d)(14) is amended to read: 15 (14) special request [ALASKA] children's endowment fund [TRUST] 16 plates............................................................................................................ 17 plus the fee required for that vehicle under (b), (c), (h), or (i) of this section; the fee 18 required by this paragraph shall be collected only on the first issuance and the 19 replacement of special request plates; the commissioner of administration shall 20 separately account for the fees received under this paragraph that the department 21 deposits in the general fund; notwithstanding (g) of this section, the annual estimated 22 balance in the account that is in excess of the cost of issuing special request plates may 23 be appropriated by the legislature as a grant to a named recipient under 24 AS 37.05.316 to hold in an endowment fund for child abuse and neglect 25 prevention activities and programs [INTO THE PRINCIPAL OF THE ALASKA 26 CHILDREN'S TRUST UNDER AS 37.14.200]; 27 * Sec. 5. AS 37.05.146(c)(20) is repealed and reenacted to read: 28 (20) receipts for birth certificates suitable for display (AS 18.50.225), 29 heirloom certificates of marriage (AS 18.50.272), and special request children's 30 endowment fund plates (AS 28.10.421(d)(14)); 31 * Sec. 6. AS 37.14 is amended by adding a new section to read:
01 Sec. 37.14.205. Management of endowment fund for prevention of child 02 abuse and neglect. (a) Under an appropriation for the purpose, the commissioner of 03 revenue shall transfer the balance of the former Alaska children's trust, including any 04 reserves and income, to a recipient organized for charitable purposes. The recipient 05 shall hold and manage the amount transferred by the commissioner of revenue as a 06 permanent endowment fund for child abuse and neglect prevention activities and 07 programs, subject to the terms of a grant agreement under (b) of this section in which 08 the recipient is the grantee. 09 (b) The transfer of assets of the former Alaska children's trust under this 10 section is subject to execution of an agreement between the Department of Commerce, 11 Community, and Economic Development and a grantee that establishes grant 12 conditions that, in addition to usual and customary provisions, include the following: 13 (1) the grantee shall execute a grant agreement to specify the 14 conditions and use of the grant funds under this subsection; 15 (2) amounts of the former Alaska children's trust shall be held in and 16 managed as a permanent endowment fund that is qualified as a component fund of the 17 grantee under 26 C.F.R. 1.170A-9(f)(11) (Federal Income Tax Regulations), as 18 amended; 19 (3) the principal of the endowment fund may not be expended; 20 however, not more than $150,000 may be expended during each fiscal year from the 21 principal for grant administration expenses of the corporate grant administrator; 22 (4) the grantee shall maintain a reserve to finance grants and grant 23 administration operations at a consistent level from year to year; an initial reserve 24 account shall be established on transfer of the assets of the former Alaska children's 25 trust to the named recipient grantee at four times the amount paid in grants under 26 former AS 37.14.230(2) for the fiscal year preceding the year in which the transfer is 27 completed; 28 (5) the grantee may provide for the distribution of amounts from the 29 interest on the endowment fund to the corporate grant administrator for the charitable 30 purpose of preventing child abuse and neglect; and 31 (6) the grantee shall annually report the investment performance of the
01 endowment to the commissioner of revenue and the board of directors of the corporate 02 grant administrator in AS 37.14.215. 03 (c) If the grantee ceases to exist or is unable to fulfill the purposes of the grant 04 agreement, as determined by the board of directors of the corporate grant administrator 05 or the commissioner of revenue, the balance of the grant reverts to the state treasury. 06 (d) The legislature may appropriate money that has reverted to the state 07 treasury under (c) of this section for the prevention of child abuse and neglect. 08 * Sec. 7. AS 37.14 is amended by adding a new section to read: 09 Sec. 37.14.215. Corporate grant administrator. (a) Authority for 10 administration of grants received to aid in the prevention of child abuse and neglect 11 from the endowment fund established under AS 37.14.205 and from the income of the 12 fund is vested in a corporate grant administrator. The corporate grant administrator is 13 independent from the charitable grantee identified in AS 37.14.205. The corporate 14 grant administrator shall be organized as a nonprofit corporation under AS 10.20. The 15 corporate name of the corporate grant administrator may include the words, "the 16 children's endowment trust." 17 (b) The board of directors of the corporate grant administrator described in (a) 18 of this section consists of nine members, as follows: 19 (1) the commissioner of health and social services or the 20 commissioner's designee; 21 (2) the commissioner of education and early development or the 22 commissioner's designee; 23 (3) four members appointed by the governor; and 24 (4) three additional members selected by the members identified in (1) 25 - (3) of this subsection. 26 (c) The board of directors of the corporate grant administrator shall 27 (1) hold regular and special meetings as the board of directors 28 considers necessary and may hold meetings by teleconference; 29 (2) award grants from the endowment fund under AS 37.14.205 to 30 community-based programs and projects that the board finds will aid in the prevention 31 of child abuse and neglect;
01 (3) monitor the community-based programs and projects to which 02 grants are awarded for compliance with the goals of the endowment fund; 03 (4) before providing a grant to a program or project, approve written 04 findings about the program or project that include a consideration of the means of 05 measuring the effectiveness of the program or project; 06 (5) apply for, and use amounts received from the endowment fund 07 described in AS 37.14.205 to obtain private and federal grants for the prevention of 08 child abuse and neglect; 09 (6) solicit contributions, gifts, and bequests to the endowment fund 10 described in AS 37.14.205; 11 (7) keep audio tape recordings of each meeting of the board of 12 directors to be made available on request; and 13 (8) submit to the governor and make available to the legislature by 14 February 1 each year a report describing 15 (A) the child abuse and neglect prevention services that were 16 provided by the programs and projects to which the board of directors awarded 17 grants; and 18 (B) the annual level of contributions, income, and expenses of 19 the endowment fund. 20 * Sec. 8. AS 37.14.200, 37.14.210, 37.14.220, 37.14.225, 37.14.230, 37.14.240, 37.14.250, 21 37.14.260, and 37.14.270 are repealed. 22 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 CONTINGENT EFFECT. This Act is contingent on passage by the Twenty-Sixth 25 Alaska State Legislature and enactment into law of a bill appropriating an amount equal to the 26 unencumbered balance of the former Alaska children's trust, established under AS 37.14.200, 27 as a grant to a named recipient under AS 37.05.316, as described in AS 37.14.205, added by 28 sec. 6 of this Act, for community-based programs and projects in the state that aid in the 29 prevention of child abuse and neglect. 30 * Sec. 10. If, under sec. 9 of this Act, this Act takes effect, it takes effect on the effective 31 date of the appropriation described in sec. 9 of this Act.