SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE May 2, 1994 5:05 p.m. MEMBERS PRESENT Senator Steve Rieger, Chairman Senator Loren Leman Senator Mike Miller Senator Johnny Ellis Senator Judy Salo MEMBERS ABSENT Senator Bert Sharp, Vice-Chairman Senator Jim Duncan COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 412(HES) am "An Act relating to facilities for the care of children; to child placement agencies; to maternity homes; to certain residential facilities for adults; and to foster homes for adults; and providing for an effective date." 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." PREVIOUS SENATE COMMITTEE ACTION HB 412 - No previous action to record. HB 234 - No previous action to record. WITNESS REGISTER Allison Elgee, Budget Director University of Alaska 910 Yukon Drive Fairbanks, AK 99725-2388 POSITION STATEMENT: Offered information on HB 234 ACTION NARRATIVE TAPE 94-36, SIDE A Number 001 CHAIRMAN RIEGER called the Senate Health, Education and Social Services (HESS) Committee to order at 5:05 p.m. He brought CSHB 412(HES) am (COMMUNITY CARE FACILITIES) before the committee as the e first order of business. He explained the legislation is almost identical to SB 268 which was previously heard by the committee. The committee adopted a committee substitute which had language that exempts small private foster homes where there was placement of children for up to 45 days. The House version allows private placement of children without a time limitation. There being no questions on CSHB 412(HES) am, CHAIRMAN RIEGER asked for the pleasure of the committee. SENATOR MILLER moved that CSHB 412(HES) am be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. Number 032 CHAIRMAN RIEGER brought HB 234 (UNIVERSITY OF AK ENDOWMENT TRUST FUND) before the committee as the final order of business. He explained the legislation will transfer the management of the University of Alaska Endowment Trust Fund from the Commissioner of Revenue to the fiduciary responsibility of the President of the University of Alaska. Number 043 SENATOR LEMAN asked what the University of Alaska is going to do that is different from the Department of Revenue. ALLISON ELGEE, Budget Director, University of Alaska, referred to information contained in the members' packets detailing the investment returns by the Department of Revenue and annotated a comparison of the investment returns that the University of Alaska has received during the same time period for the foundation account. Both performances have been rated by outside firms: the Department of Revenue ranks in the bottom one percent nationwide for this type of an account, whereas the University's five-year period performance ranks in the top three percent. Ms. Elgee said the major difference in investment philosophy is that the Department of Revenue maintains the majority of these investments in fixed income accounts. The University uses a more flexible and active management style with their foundation account. Number 081 CHAIRMAN RIEGER said he has had concerns that the Department of Revenue has been too unbalanced out of equities, in particular, real estate equities. He agreed that the University will probably do better with the investments. Number 090 SENATOR ELLIS moved that HB 234 pass out of committee with individual recommendations. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting was adjourned at 5:15 p.m.