HCR 26-PFUND: ENCOURAGE INVESTMENTS IN ALASKA Number 1796 REPRESENTATIVE HOLM announced that the next order of business was HOUSE CONCURRENT RESOLUTION NO. 26, Relating to investments in Alaska by corporate America in which the permanent fund invests. Number 1815 REPRESENTATIVE KELLY WOLF, Alaska State Legislature, as sponsor of HCR 26, told the committee that approximately 7,000 nonprofit organizations exist within Alaska. He stated that Alaska is a young state that has businesses "starting and failing on a regular basis." He described HCR 26 as an opportunity to use the power the State of Alaska has in its Permanent Fund Dividend Corporation, without risking the funds in the permanent fund dividend (PFD). The proposed legislation, he explained, would give the opportunity for a small business or nonprofit [organization], with the support of the legislature, to approach the corporations in which the permanent fund holds stock and ask for financial support to start a business, or to ask for a contribution. REPRESENTATIVE WOLF directed attention to Amendment 1, which read as follows [original punctuation provided]: After Line 13 Add new section: Whereas Alaska's own economic well being is tied to businesses in Alaska; and Whereas Alaska's health and well being of our communities is assisted by one or more of the nearly 7000 nonprofit organizations in Alaska; and Whereas by enactment of this resolution we recognize we, as members of Alaska's Legislature, are providing opportunity for Alaska's nonprofit and for profit sectors to declare their independence through encouraging them to recognize the powerful buying support the $24,000,000,000 permanent fund represents; Line 15 - after "to encourage investments in" change Alaska to Alaska's; Then add: nonprofit and for profit sectors Page Two - Line 2 - After Corporation, Please delete: "for public record." Then add: and make available at public request. Number 2076 REPRESENTATIVE GRUENBERG moved to adopt Amendment 1, with a technical amendment, as follows: Between "make" and "available" Insert "it" REPRESENTATIVE SEATON stated, "I'll object for discussion." Number 2103 REPRESENTATIVE SEATON asked Representative Wolf to clarify the meaning of "Alaska's nonprofit and for profit sectors to declare their independence". REPRESENTATIVE WOLF explained that the proposed resolution encourages nonprofit groups to independently seek private funds, without using state funds. He revealed that there are "several hundred million dollars" of corporate monies that go unasked for each year. He stated, "The opportunity for nonprofits here in the state of Alaska to use the power of [the] Permanent Fund Dividend Corporation is second to none." REPRESENTATIVE SEATON said he is confused by the language and is uncertain how to amend it. VICE-CHAIR HOLM announced that HCR 26 would not be moved out of committee today. REPRESENTATIVE COGHILL suggested "incorporating the amendment." Number 2220 REPRESENTATIVE SEATON removed his objection. REPRESENTATIVE GRUENBERG opined that representatives from the Alaska Permanent Fund Corporation would want a chance to respond to Amendment 1. VICE-CHAIR HOLM responded, "It's my understanding they did not want to testify on this, because ... they're testifying through their letter and that's all they're going to do." He said he suspects the corporation will not change its policies based upon [HCR 26]. Number 2288 REPRESENTATIVE WOLF indicated that Amendment 1 would include the for profit businesses with the nonprofit ones in the chance to "reap the benefit" [in regard to requesting funds from corporations in which the state's permanent fund is invested]. REPRESENTATIVE COGHILL changed his earlier remark to suggest instead that the committee leave the amendment on the table. REPRESENTATIVE GRUENBERG asked that [Representative Wolf] consult Legislative Legal and Research Services regarding the language. REPRESENTATIVE SEATON announced that he would maintain his objection. [HCR 26 was heard and held.]