Legislature(2003 - 2004)
05/09/2004 04:28 PM House RLS
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ALASKA STATE LEGISLATURE
HOUSE RULES STANDING COMMITTEE
May 9, 2004
4:28 p.m.
MEMBERS PRESENT
Representative Norman Rokeberg, Chair
Representative John Coghill
Representative Lesil McGuire
Representative Carl Morgan
Representative Ethan Berkowitz
Representative Beth Kerttula
MEMBERS ABSENT
Representative Pete Kott
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 326(STA)
"An Act relating to investments of Alaska permanent fund assets;
and providing for an effective date."
- MOVED CSSB 326(STA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 326
SHORT TITLE: PERMANENT FUND INVESTMENTS
SPONSOR(S): RULES BY REQUEST OF LEG BUDGET & AUDIT
02/13/04 (S) READ THE FIRST TIME - REFERRALS
02/13/04 (S) STA, FIN
02/24/04 (S) STA AT 3:30 PM BELTZ 211
02/24/04 (S) Heard & Held
02/24/04 (S) MINUTE(STA)
03/04/04 (S) STA AT 3:30 PM BELTZ 211
03/04/04 (S) Moved CSSB 326(STA) Out of Committee
03/04/04 (S) MINUTE(STA)
03/05/04 (S) STA RPT CS 1DP 2NR SAME TITLE
03/05/04 (S) NR: STEVENS G, STEDMAN; DP: COWDERY
03/29/04 (S) FIN RPT CS(STA) 2DP 5NR
03/29/04 (S) DP: GREEN, WILKEN; NR: DYSON, HOFFMAN,
03/29/04 (S) STEVENS B, BUNDE, OLSON
03/29/04 (H) FIN AT 9:00 AM HOUSE FINANCE 519
03/29/04 (S) Moved CSSB 326(STA) Out of Committee
03/29/04 (S) MINUTE(FIN)
05/07/04 (S) TRANSMITTED TO (H)
05/07/04 (S) VERSION: CSSB 326(STA)
05/08/04 (H) READ THE FIRST TIME - REFERRALS
05/08/04 (H) RLS
05/08/04 (H) HB 466 SIMILAR BILL
05/08/04 (H) RLS AT 12:00 AM CAPITOL 124
05/08/04 (H) <Pending Referral>
05/09/04 (H) RLS AT 3:45 PM CAPITOL 102
WITNESS REGISTER
ROBERT STORER, Executive Director
Alaska Permanent Fund Corporation (APFC)
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Explained SB 326.
ACTION NARRATIVE
TAPE 04-8, SIDE A
Number 0001
CHAIR NORMAN ROKEBERG called the House Rules Standing Committee
meeting to order at 4:28 p.m. Representatives Rokeberg,
Coghill, McGuire, Morgan, Berkowitz, and Kerttula were present
at the call to order.
SB 326-PERMANENT FUND INVESTMENTS
CHAIR ROKEBERG announced that the only order of business would
be CS FOR SENATE BILL NO. 326(STA), "An Act relating to
investments of Alaska permanent fund assets; and providing for
an effective date."
Number 0059
ROBERT STORER, Executive Director, Alaska Permanent Fund
Corporation (APFC), Department of Revenue, explained that the
APFC must follow the prudent investor rule as well as the
statutory list specifying investments APFC is allowed to make.
Approximately four years ago, the legislature assisted the APFC
in allowing it to invest 5 percent of its total assets outside
of the statutory list while following the prudent investor rule.
Mr. Storer referred to it as the basket clause.
MR. STORER further explained that on page 1, line 14, the
legislation cleans up some of the original intent language. On
page 2, line 3, the Senate increased the original percentage to
10 percent, which will provide greater investment flexibility.
However, it doesn't mean that the permanent fund would take a
lot more risk. He explained that it means that when APFC's
investments appreciate, APFC won't be forced to sell or
liquidate those investments because of statutory constraints.
Number 0163
REPRESENTATIVE BERKOWITZ inquired as to how CSSB 326(STA)
differs from the House State Affairs Standing Committee's
version.
MR. STORER specified that the Senate asked if APFC would amend
its original request of 15 percent down to 10 percent, to which
he agreed. He related his belief that the 10 percent would
provide the minimum that could be utilized over the next couple
of years. However, he noted that APFC would be back before the
legislature [on this matter] in a couple of years. In further
response to Representative Berkowitz, Mr. Storer confirmed that
CSSB 326(STA) is what is necessary to move the legislation
through the process is these last days of the session.
Number 0224
REPRESENTATIVE BERKOWITZ moved to report CSSB 326(STA) out of
committee [with individual recommendations and the accompanying
fiscal notes]. There being no objection, CSSB 326(STA) was
reported from the House Rules Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Rules Standing Committee meeting was adjourned at 4:33 p.m.
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