PERMANENT FUND INVESTMENTS

Plain English Breakdown

The official source material does not provide specific details on how the corporation will decide which U.S. companies to include in the stock market index, nor does it specify the exact effective date or any consequences if suitable in-state investments are unavailable.

Permanent Fund Investment Rules

This act changes how the Alaska Permanent Fund Corporation invests money from the permanent fund by requiring a minimum investment in U.S. stocks and allowing more flexibility in rule-making.

What This Bill Does

• Requires at least 25% of the fund's assets to be invested in a stock market index that tracks 500 U.S. companies based on their size.
• Removes the requirement for the board to maintain a balanced mix of different types of investments unless it is clear not to do so.
• Allows the corporation to adopt regulations without needing approval from other parts of the government.

Who It Names or Affects

• The Alaska Permanent Fund Corporation, which manages the state’s permanent fund.
• People who benefit from the earnings of the permanent fund, such as Alaskan residents.

Terms To Know

Permanent Fund

A savings account for the State of Alaska that collects money from oil production and pays out dividends to eligible Alaskans each year.

Stock Market Index

A group of stocks used as a benchmark to measure how well the stock market is doing, like the S&P 500.

Limits and Unknowns

• The bill does not specify what happens if there are no suitable in-state investments available.
• It's unclear how this change will affect the overall performance of the permanent fund.

Official Summary Text

PERMANENT FUND INVESTMENTS
An Act relating to investments of the permanent fund; relating to investments made by the Alaska Permanent Fund Corporation; relating to regulations adopted by the Alaska Permanent Fund Corporation; and providing for an effective date.

Current Bill Text

HB0373a -1- HB 373
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0829\I

HOUSE BILL NO. 373

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY REPRESENTATIVES COSTELLO, Tomaszewski

Introduced: 2/23/26
Referred: State Affairs, Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to investments of the permanent fund; relating to investments made by 1
the Alaska Permanent Fund Corporation; relating to regulations adopted by the Alaska 2
Permanent Fund Corporation; and providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 37.13.120(c) is amended to read: 5
(c) The board shall invest at least 25 percent of fund assets in a stock 6
market index that tracks the stock performance of 500 companies listed on stock 7
exchanges in the United States selected primarily based on stock market 8
capitalization [MAINTAIN A REASONABLE DIVERSIFICATION AMONG 9
INVESTMENTS UNLESS, UNDER THE CIRCUMSTANCES, IT IS CLEARLY 10
PRUDENT NOT TO DO SO. THE BOARD SHALL INVEST THE ASSETS OF 11
THE FUND IN IN-STATE INVESTMENTS TO THE EXTENT THAT IN-STATE 12
INVESTMENTS ARE AVAILABLE AND IF THE IN-STATE INVESTMENTS 13
(1) HAVE A RISK LEVEL AND EXPECTED RETURN 14
34-LS0829\I
HB 373 -2- HB0373a
New Text Underlined [DELETED TEXT BRACKETED]

COMPARABLE TO ALTERNATE INVESTMENT OPPORTUNITIES; AND 1
(2) ARE ELIGIBLE FOR INVESTMENT OF FUND ASSETS 2
UNDER (a) OF THIS SECTION]. 3
* Sec. 2. AS 37.13.206(a) is amended to read: 4
(a) The board may adopt regulations to carry out the purposes of this chapter 5
[AND SHALL ADOPT REGULATIONS UNDER AS 37.13.120(a)]. The provisions 6
of AS 44.62 (Administrative Procedure Act) regarding the adoption of regulations do 7
not apply to regulations of the corporation. 8
* Sec. 3. AS 37.13.120(a) and 37.13.120(e) are repealed. 9
* Sec. 4. This Act takes effect July 1, 2027. 10