State of Alaska
Fiscal Note
Bill Version: CSHB 396(STA)
2022 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 4/27/2022
Identifier: HB396CS(STA)-DOR-TRS-4-22-22 Department: Department of Revenue
Title: DIVEST INVESTMENTS IN RUSSIAN ENTITIES Appropriation: Taxation and Treasury
Sponsor: STATE AFFAIRS Allocation: Treasury Division
Requester: House State Affairs OMB Component Number: 121
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2023 Governor's
Appropriation FY2023 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Personal Services *** *** *** *** *** *** ***
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating *** *** *** *** *** *** ***
Fund Source (Operating Only)
None
Total *** *** *** *** *** *** ***
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 (FY2022) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2023) 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If yes, by what date are the regulations to be adopted, amended or repealed?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:
The fiscal note remains indeterminate based on the new committee substitute, Version I.
Prepared By: Pam Leary, Director Phone: (907)465-3751
Division: Treasury Division Date: 04/22/2022 04:30 PM
Approved By: Eric DeMoulin, Administrative Services Director Date: 04/22/22
Agency: Department of Revenue
Printed 4/27/2022 Page 1 of 2 Control Code: amSCt
 CSHB 396(STA) - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB396
2022 LEGISLATIVE SESSION
Analysis
The bill would require divestment, by all fiduciaries of funds subject to AS 37, of publicly traded securities of Russian
entities identified by the Commissioner of Revenue to include all Russian sovereign debt or securities of an entity
identified by the Office of Foreign Assets Control of the US Treasury.
The Russian market is currently closed and the opportunities for divestment remain slim. The bill directs a 180-day exit
from assets after they are identified. For comingled funds or other investment structures where the fund is not the sole
owner, divestiture is not required but the fiduciary would be required to request that the fund manager consider similar
divestment within 180 days.
The bill also states that, "the commissioner or a fiduciary of a fund is not required to divest from an investment under this
section if the commissioner or fiduciary determines that divestment is not consistent with the fiduciary responsibilities of
the commissioner or the fiduciary."
The bill exempts those taking divestment actions or inactions from liability for doing so and provides reporting
mechanisms to the Legislature as to the divestment activity undertaken.
The fiscal impact of the bill is indeterminate as a result of the timing and proceeds from sale of Russian assets being not
known at this stage.
(Revised 11/23/2021 OMB/LFD) Page 2 of 2
HB396CS(STA)-DOR-TRS-4-22-22 Page 2 of 2 Control Code: amSCt


Statutes affected:
HB0396B, AM CSHB 396(STA), introduced 04/27/2022: