PERMANENT FUND INVESTMENTS

Plain English Breakdown

The effective date is July 1, 2027, which was not included in the candidate explanation but is confirmed by Section 4 of the official text.

Changes to Alaska Permanent Fund Investment Rules

This bill requires the board managing the permanent fund to invest at least one-quarter of its money in a specific U.S. stock index and removes old rules about investing locally.

What This Bill Does

• Requires the board to put at least 25 percent of fund assets into a stock market index tracking 500 large U.S. companies listed on exchanges primarily based on their size.
• Removes previous laws that asked the board to invest in Alaska-based opportunities when they were available and had similar risk and return levels as other options.
• Changes rules so the corporation can choose whether or not to write new regulations for its investments, instead of being required to do so.
• Repeals two existing sections of state law regarding investment diversification and regulation requirements.

Who It Names or Affects

• The Alaska Permanent Fund Corporation board

Terms To Know

Stock market index

A list of stocks used to measure how a part of the stock market is doing.

Repeal

To officially cancel or remove an existing law.

Limits and Unknowns

• The bill does not say which specific companies are in the stock index, only that it tracks 500 U.S. firms selected primarily by size.
• The text does not explain how much money will be moved to meet the new 25 percent rule.

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