In November 1976, Alaskans voted to amend their state constitution to create the Permanent Fund. The Constitution provides the framework for the Permanent Fund, and has three key points:
Since the Permanent Fund was created, a number of pieces of legislation were passed that created and then fine tuned the guidelines for investing and accounting for the Permanent Fund.
1980 – SB 161, Sponsored by Sen. Tim Kelly, Sen. George Hohman, Sen. Mike Colletta, and Sen. John Sacket
SB 161 created the Alaska Permanent Fund Corporation to manage the Permanent Fund and started the existing statutory list of allowed investments. This list extended beyond the Fund’s initial investment limitation of Treasury bonds to include corporate bonds, certificate of deposits and bankers acceptances. The list initially allowed the Permanent Fund to invest in shares of savings and loan associations, but this provision was later removed.
1982 – SB 684, sponsored by Gov. Jay Hammond
SB 684 allowed the Permanent Fund to invest in common stocks, partial ownership of real estate properties (not to exceed 40%), loans for commercial real estate and deposits of US dollars held overseas.
1989- HB 69, sponsored by Gov. Steve Cowper
HB 69 gave the APFC authority to invest in non-domestic (International) stocks and bonds.
1992 – SB 39, sponsored by the Senate Finance Committee
2004 – SB 326, sponsored by the Legislative Budget and Audit Committee
SB 326 increased the “basket clause” allocation limit from 5 to 10 percent. The bill also provided clean-up language explicitly stating that the investments restricted under AS 37.13.120(h) and (j) are allowed under the basket clause.
2004 – SB 379, sponsored by Governor Frank Murkowski
SB 379 requires cause before one of the four public members of the Board of Trustees may be removed before the expiration of their term.
2005 – HB 215, sponsored by Representative Norman Rokeberg
HB 215 removed the list of allowed investments from statute and placed it in regulation where it is maintained and amended as needed by the APFC Board of Trustees. Certain key provisions were retained in statute, including the requirement that investments be made under the Prudent Investor Rule.