CHAIRMAN KELLY introduced  SB 245  (PERMANENT FUND INVESTMENTS IN             
 REAL ESTATE) as the next order of business and directed attention             
 to a proposed Labor & Commerce committee substitute.                          
                                                                               
 JOSH FINK, committee aide, explained the Labor & Commerce committee           
 substitute makes two changes to the State Affairs committee                   
 substitute.  It raises the cap from $50 million to $100 million on            
 real estate properties with which the permanent fund may invest 100           
 percent.  In addition, while common law currently dictates that the           
 trustees of the permanent fund are fiduciaries, it is not in                  
 statute, and the committee substitute provides in statute that they           
 are fiduciaries.                                                              
                                                                               
 Number 118                                                                    
                                                                               
 It was noted that Bill Scott, Executive Director of the Alaska                
 Permanent Fund Corporation, was present to respond to questions.              
 There being no questions, CHAIRMAN KELLY asked for the pleasure of            
 the committee.                                                                
                                                                               
 SENATOR RIEGER moved the adoption of CSSB 245(L&C).  Hearing no               
 objection, the motion carried.                                                
                                                                               
 SENATOR RIEGER moved that CSSB 245(L&C) be passed out of committee            
 with individual recommendations.  Hearing no objection, it was so             
 ordered.