HB 234:             An  Act  relating   to  endowments   and                 
                      donations  of  the University  of Alaska                 
                      and the University  of Alaska  endowment                 
                      trust   fund;   and  providing   for  an                 
                      effective date.                                          
                                                                               
                      Representative John  Davies, sponsor  of                 
                      HB  234,  and  Alison  Elgee,  Director,                 
                      Statewide Budget  Office, University  of                 
                      Alaska,  testified  in  support  of  the                 
                      bill.    HB  234  was  REPORTED  out  of                 
                      committee  with  a  "do  pass,"  a  zero                 
                      fiscal  note  for   the  University   of                 
                      Alaska,  and  a  fiscal   note  for  the                 
                      Department of Revenue for $22.5.                         
  HOUSE BILL NO. 234:                                                          
                                                                               
       An  Act  relating to  endowments  and donations  of the                 
       University  of  Alaska  and  the  University  of Alaska                 
       endowment trust  fund; and  providing for  an effective                 
       date.                                                                   
                                                                               
  Co-chair Pearce invited Representative Davies to come before                 
  the committee and speak to HB 234.                                           
                                                                               
  REPRESENTATIVE  JOHN  DAVIES, sponsor  of  HB 234,  said the                 
  University was  interested in  managing the  endowment trust                 
  fund.  The University felt it could get a better  return for                 
  their money and showed a good track record on other funds it                 
  managed.                                                                     
                                                                               
  Senator  Kelly  asked  if  he  was  referring  to  the  same                 
  University that was unable to maintain its buildings and now                 
  wanted to manage its own money.                                              
                                                                               
  ALISON ELGEE, Director, Statewide  Budget Office, University                 
  of Alaska,  provided a  copy of  the investment  performance                 
  rating by  Callan &  Assoc. of  the Department  of Revenue's                 
  management of the land grant trust funds for the University.                 
  She said  that over the  past three years,  the University's                 
  own performance of  the management  of the foundation  funds                 
                                                                               
                                                                               
  had realized approximately 3 percent  greater rate of return                 
  than the Department of Revenue which  placed them in the top                 
  three percent nationwide  for the management of  these types                 
  of funds.  In comparison, she said the Department of Revenue                 
  was placed in the bottom one percent nationwide.                             
                                                                               
  Co-chair Frank reminded the committee  of the SBS investment                 
  losses made by the Department of Revenue several  years ago.                 
  He  said he did not know if there was any connection between                 
  managing money and coping with deferred maintenance.                         
                                                                               
  Senator  Sharp MOVED for  passage of  HB 234  from committee                 
  with  individual recommendations.  No objection being heard,                 
  the bill was REPORTED  out with a  "do pass", a zero  fiscal                 
  note for the University and a fiscal note for the Department                 
  of Revenue for $22.5.  Co-chairs  Pearce and Frank, Senators                 
  Sharp and Rieger signed "do pass."   Senator Jacko and Kelly                 
  signed a "no recommendation"