SENATE BILL NO. 118                                                     
                                                                               
       "An Act relating to investments of the Alaska Permanent                 
  Fund      Corporation."                                                      
                                                                               
  Jim  Kelly, Research and  Liaison Officer,  Alaska Permanent                 
  Fund Corporation, Department of Revenue  was invited to join                 
  the committee.   He explained  the bill.   US stocks  earned                 
  over 18% and the stock market had done  very well this year.                 
  However,  he did  say that  volatility increased risks.   He                 
  referred briefly to  the APFC packet  in the file.   Senator                 
  Pearce said she was  opposed to the bill.  It was built on a                 
  house of cards that  would come tumbling down like  in 1929.                 
  She did not feel that stocks  should be increased.  Co-chair                 
  Sharp referred the Department of  Revenue (APFC) fiscal note                 
  in the amount of $4.2 million.                                               
                                                                               
  Senator   Phillips    moved   SB    118   with    individual                 
  recommendations and  accompanying  fiscal  notes.    Senator                 
  Pearce  objected.  By  a vote of  2 -  3 (Torgerson, Pearce,                 
  Sharp, nay; Parnell, Donley,  absent) the bill failed  to be                 
  reported out of committee.                                                   
                                                                               
                                                                               
  Co-chair Sharp called HB 210.