State of Alaska
Fiscal Note
Bill Version: HB 222
2024 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 3/4/2024
Identifier: HB222-DOR-APFC-01-26-24 Department: Department of Revenue
Title: PERMANENT FUND Appropriation: Alaska Permanent Fund Corporation
APPROPRIATIONS/INVESTMENTS Allocation: APFC Operations
Sponsor: SUMNER OMB Component Number: 109
Requester: (H) RESOURCES
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2025 Governor's
Appropriation FY2025 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2025 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Personal Services *** *** *** *** *** ***
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating *** 0.0 *** *** *** *** ***
Fund Source (Operating Only)
None
Total *** 0.0 *** *** *** *** ***
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2024) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2025) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Initial version, not applicable.
Prepared By: Alysha Guthrie Phone: (907)796-1540
Division: Alaska Permanent Fund Corporation Date: 01/26/2024 04:30 PM
Approved By: Deven Mitchell Date: 01/26/24
Agency: Alaska Permanent Fund Corporation
Printed 3/1/2024 Page 1 of 2 Control Code: xdTic
 HB 222 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB 222
2024 LEGISLATIVE SESSION
Analysis
APFC invests the permanent fund as directed by constitutional and statutory mandates. The constitution requires every
permanent fund investment to be: (1) incoming producing; and (2) consistent with the investment criteria designated by
law. Current law requires APFC to invest the permanent fund consistent with the diversification standards and prudent
investor rule that other large institutional investors follow.
This legislation would direct APFC to invest a portion of the permanent fund into a specific in‐state investment project. In
directing APFC to make this specific investment, this legislation would suspend APFC’s obligation to apply the prudent
investor rule and diversification standards that are applied to the remaining permanent fund investments.
What is unclear from the face of this legislation is just how large of an investment this in‐state project would be and what
the expected investment return is for this investment. Once the size and return projections for this investment are
known, APFC can provide additional details on how this statutorily directed investment would impact the annual five
percent POMV transfer, which is currently relied upon to fund essential government services and the annual permanent
fund dividend.
At this time, without further clarification on project size, scope, and funding schedule, this fiscal note is indeterminate.
(Revised 10/31/2023 OMB/LFD) Page 2 of 2
HB222-DOR-APFC-01-26-24 Page 2 of 2 Control Code: xdTic


Statutes affected:
HB0222A, AM HB 222, introduced 01/08/2024: 37.13.120, 31.25.390, 37.13.145, 43.23.045, 37.13.140, 37.05.565, 37.13.300, 43.23.025, 43.23.005, 43.23.021, 43.23.055, 43.23.240