Legislature(2021 - 2022)GRUENBERG 120
04/21/2022 03:00 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB396 | |
| HB66 | |
| HB316 | |
| SB161 | |
| HB256 | |
| SB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 161 | TELECONFERENCED | |
| += | HB 66 | TELECONFERENCED | |
| + | SB 66 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 396 | TELECONFERENCED | |
| += | HB 316 | TELECONFERENCED | |
| += | HB 271 | TELECONFERENCED | |
| += | HB 256 | TELECONFERENCED | |
HB 396-DIVEST INVESTMENTS IN RUSSIAN ENTITIES
3:06:37 PM
CHAIR KREISS-TOMKINS announced that the first order of business
would be HOUSE BILL NO. 396, "An Act restricting certain
investments of state funds in certain Russian entities; and
providing for an effective date."
3:07:08 PM
REPRESENTATIVE TARR moved to adopt the proposed committee
substitute (CS)for HB 396, labeled 32-LS1618\I, Nauman, 4/15/22,
as the working document.
CHAIR KREISS-TOMKINS objected for presentation purposes.
3:07:28 PM
XANNIE BORSETH, Staff, Representative Jonathan Kreiss-Tomkins,
Alaska State Legislature, on behalf of Representative Kreiss-
Tomkins, provided an explanation of changes in the proposed CS
for HB 396, ("Version I"), sponsored by the House State Affairs
Standing Committee, which read as follows [original punctuation
provided]:
Section 1 (page 1, sections a. and b.): changes
divestment timeline from 90 to 180 days on page 1,
lines 11, 13, and 14 and on page 2, line 6.
Section 1 (page 3, section g., lines 5-7): adds "the
commissioner or a fiduciary of a fund is not required
to divest from an investment under this section if the
commissioner or fiduciary determines that divestment
is not consistent with the fiduciary responsibilities
of the commissioner or the fiduciary."
Section 1 (page 3, section i., line 13): adds "debt
instrument issued by the government of Russia" to the
definition of "Russian entity.
Section 1 (page 3, section i., lines 20-21): adds that
the definition of "Russian entity? does not include a
company the United States federal government excludes
from federal sanctions related to Russia," so if a
company is not included on OFAC's list, or if it is
removed, that company is no longer regarded as a
"Russian entity" under this legislation.
Section 2 (page 3, section a., lines 22-26): specifies
that the uncodified law shall establish guidelines for
transition, stating that "within 30 days after the
effective date of this Act, the commissioner of
revenue shall create an initial list of Russian
entities" as specified by this Act.
Section 2 (page 3, line 27 - page 4, line 4, section
b.): establishes that section 1(g) of this Act
notwithstanding, "the commissioner of revenue, a
fiduciary of a fund subject to AS 37, or an outside
investment manager shall, within 180 days after the
effective date, divest ownership in the initial list
of Russian entities created," and specified that the
commissioner of revenue or the fiduciary shall submit
a letter consistent with section 1(b) to the manager
of a commingled investment.
3:11:19 PM
REPRESENTATIVE TARR inquired about the repealer language in
Section 3 and asked whether the January 1, 2024, timeline was
consistent with the original version of the bill.
MS. BORSETH shared her understanding that the date was
consistent.
REPRESENTATIVE CLAMAN asked what version of the bill
Representative Tarr was referring to.
MS. BORSETH reported that the original version of the bill was
Version A.
REPRESENTATIVE CLAMAN confirmed that the date in Version A was
January 1, 2024.
MS. BORSETH noted that the governor's bill pertaining to
divestment from Russian entities expired on July 1, 2023.
CHAIR KREISS-TOMKINS removed his objection. There being no
further objection, Version I was adopted as the working
document.
3:13:09 PM
CHAIR KREISS-TOMKINS opened public testimony on HB 396.
3:13:41 PM
KAREN MATTHIAS stated her support for HB 396. She expressed her
strong belief that generally, the managers of the Alaska
Permanent Fund should abide by the mandate to make investment
decisions that protected and grew the fund to benefit Alaskans
today and in the future; however, she acknowledged that these
were not normal times. Russia's invasion of a peaceful,
sovereign nation must be met with global responses, including
divestment from Russian assets, she opined. She urged the
legislature not to turn a blind eye to the atrocities being
committed by Russia. She encouraged the committee to rely on
the expertise found in the Alaska Permanent Fund Corporation
(APFC) and the Department of Revenue (DOR) to ensure swift,
efficient action and a well-crafted piece of legislation.
CHAIR KREISS-TOMKINS closed public testimony on HB 396 and
announced that the bill was held over.