AS Title 37, Chapter 14: Special Funds

Article 1. Mental Health Trust. Chapter 14. Special Funds. Sec. 37.14.001. Mental health trust. In carrying out its trust obligations under the Mental Health Enabling Act of 1956, the state acts through the governor, the legislature, and the Alaska Mental Health Trust Authority ( AS 44.25.200 ). Sec. 37.14.003. Responsibilities of the governor. (a) At the time the governor submits the report under AS 37.07.060 (b), the governor shall submit to the legislature a separate appropriation bill limited to appropriations for the state's integrated comprehensive mental health program. (b) If the appropriations in the bill submitted by the governor under (a) of this section differ from those proposed by the authority, the bill must be accompanied by a report explaining the reasons for the differences between the proposed appropriations in the governor's bill and the authority's recommendations for expenditures from the general fund for the state's integrated comprehensive mental health program. (c) If the governor vetoes all or a part of an appropriation for the integrated comprehensive mental health program, the governor's veto message must explain the vetoes in light of the authority's recommendations for expenditures from the general fund for the state's integrated comprehensive mental health program. Sec. 37.14.005. Responsibilities of the legislature. (a) The legislature shall annually pass and transmit to the governor a bill making appropriations of money for the state's integrated comprehensive mental health program. (b) The legislature shall make appropriations for the state's integrated comprehensive mental health program in a separate appropriation bill limited to appropriations for the state's integrated comprehensive mental health program. (c) If the appropriations in the bill passed by the legislature differ from those proposed by the authority, the bill must be accompanied by a report explaining the reasons for the differences between the appropriations in the bill and the authority's recommendations for expenditures from the general fund for the state's integrated comprehensive mental health program. Sec. 37.14.007. Authority as trustee. (a) The Alaska Mental Health Trust Authority, established by AS 44.25.200 , is the trustee of the trust established under the Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709. (b) In exercising the powers, duties, and responsibilities as trustee, the authority is under a duty to the public and the trust beneficiaries to (1) administer the trust consistent with AS 37.14.009 in the interest of the beneficiaries; (2) keep and render clear and accurate accounts with respect to the administration of the trust; (3) make public and available complete and accurate information as to the nature and amount of the trust property; (4) exercise a high degree of care in administering the trust; (5) take reasonable steps to take and keep control of the trust property; (6) use care and skill to preserve the trust property; (7) take reasonable steps to realize on claims that are held in trust; (8) defend against actions that may result in a loss to the trust estate, unless under all the circumstances, considering the other duties owed to the trust, it is reasonable not to make the defense; (9) separately account for trust property; (10) ensure that trust property is designated as property of the trust; (11) use care and skill to make the trust property productive; however, nothing in this paragraph shall prevent the state from using trust property directly or indirectly, by contractual stipulation or otherwise, as a component of the state's mental health trust program; and (12) deal impartially with the different trust beneficiaries as provided in AS 44.25.290 . Sec. 37.14.009. Trust management. (a) The Alaska Mental Health Trust Authority (1) has a fiduciary obligation to ensure that the assets of the trust are managed consistent with the requirements of the Alaska Mental Health Enabling Act, P.L. 84-830, 70 Stat. 709 (1956); (2) shall contract with the Department of Natural Resources to manage the land assets of the trust; the contract must provide for the recording of at least one conveyance to the authority by quitclaim deed of mental health trust land in each recording district in the state in which mental health trust land is located; a conveyance to the authority is exempt from the platting and surveying requirements of AS 38.04.045 (b) and municipal ordinances adopted under AS 29.40 ; when the Department of Natural Resources manages land assets of the trust under a contract entered into under this paragraph, the department shall (A) manage in conformity with AS 38.05.801 ; (B) consult with the authority before adopting regulations under AS 38.05.801 (c); (C) provide notice to, and consult with, the authority regarding all proposed actions subject to public notice under AS 38.05.945 before giving that public notice; (D) annually provide the authority with a report including (i) a description of all land management activities undertaken under this section during the prior year; (ii) an accounting of all income and proceeds generated from mental health trust land; (iii) an explanation of the manner in which the income and proceeds were allocated between the mental health trust fund and the mental health trust settlement income account; and (E) obtain the approval of the authority before exchanging mental health trust land under AS 38.05.801 (b)(2); and (3) shall contract with Alaska Permanent Fund Corporation for management of the mental health trust fund. (b) [Repealed, § 39 ch 5 FSSLA 1994.] Sec. 37.14.010. Mental health fund established. [Repealed, § 13 ch 48 SLA 1987.] Sec. 37.14.011. Mental health trust income account. [Repealed, § 12 ch 1 SSSLA 1994.] Sec. 37.14.013. Mental health trust income and proceeds account. [Repealed, § 49 ch 5 FSSLA 1994; § 9 ch 1 SSSLA 1994.] Sec. 37.14.020. Mental Health Fund Advisory Board created. [Repealed, § 13 ch 48 SLA 1987.] Sec. 37.14.021. Utilization of the mental health trust income account. [Repealed, § 39 ch 5 FSSLA 1994.] Sec. 37.14.023. Utilization of the mental health trust income and proceeds account. [Repealed, § 49 ch 5 FSSLA 1994; § 9 ch 1 SSSLA 1994.] Sec. 37.14.030. Powers and duties of board. [Repealed, § 13 ch 48 SLA 1987.] Sec. 37.14.031. Trust fund established. (a) The mental health trust fund is established as a separate fund of the Alaska Mental Health Trust Authority. (b) The fund consists of the cash assets of the principal of the trust, and includes (1) money appropriated to the fund; (2) the proceeds of sale or other disposals of mental health trust land, and the fees, charges, income earned, royalty proceeds, and other money received from the management of mental health trust land attributable to principal; and (3) gifts, bequests, and contributions from other sources. (c) The net income of the fund shall be determined by the Alaska Permanent Fund Corporation in the same manner the corporation determines the net income of the Alaska permanent fund under AS 37.13.140 . (d) The authority shall adopt regulations providing for the determination of amounts attributable to principal under (b)(2) of this section. The regulations must provide for the allocation between principal and income of money received from the management of mental health trust land, and the manner of allocation must be in the long-term best interest of the trust and its beneficiaries. Sec. 37.14.033. Management of trust fund. The mental health trust fund shall be managed by the Alaska Permanent Fund Corporation under AS 37.13.300 . Sec. 37.14.035. Trust fund utilization. (a) The cash principal of the mental health trust fund shall be retained perpetually in the fund for investment by the Alaska Permanent Fund Corporation, as specified in AS 37.13.300 . (b) The net income of the fund shall be transferred by the corporation to the mental health trust settlement income account at the end of each fiscal year. (c) The net income of the fund may only be utilized by the Alaska Mental Health Trust Authority for the purposes listed in AS 37.14.041 . Sec. 37.14.036. Trust settlement income account established. (a) The mental health trust settlement income account is established as a separate account of the Alaska Mental Health Trust Authority. The mental health trust settlement income account consists of (1) fees, charges, income earned on assets, and other money received by the trust that is not attributable to the principal of the trust under AS 37.14.031 (d); and (2) money deposited in the account in accordance with appropriations or allocations made by law. (b) The authority may establish subaccounts within the mental health trust settlement income account. (c) [Repealed, § 39 ch 5 FSSLA 1994.] Sec. 37.14.039. Trust settlement income account administration. (a) The mental health trust settlement income account shall be administered by the Alaska Mental Health Trust Authority. (b) If the authority determines that there is a surplus of money in the account above the amount sufficient to meet current and projected cash expenditure needs of the authority, the surplus shall be invested by the authority as provided in AS 37.10.071 for the making of investments by the fiduciary of a state fund. Income earned on investments made under this subsection may be retained by the authority and expended under AS 37.14.041 . Sec. 37.14.040. Fund utilization. [Repealed, § 13 ch 48 SLA 1987.] Sec. 37.14.041. Use of trust settlement income account. (a) Money in the mental health trust settlement income account may only be used for the following purposes: (1) the awarding of grants and contracts in fulfillment of the authority's purpose to ensure an integrated comprehensive mental health program for the state; (2) obtaining private and federal grants for a purpose described in (1) of this subsection; (3) soliciting gifts, bequests, and contributions for a purpose described in (1) of this subsection; (4) reimbursement to (A) the Alaska Permanent Fund Corporation for the costs of managing the principal of the mental health trust fund; and (B) the Department of Natural Resources for the cost of managing mental health trust land; (5) offsetting the effect of inflation on the value of the principal of the mental health trust fund; and (6) subject to AS 37.07 (Executive Budget Act), meeting the necessary administrative expenses of the authority that are required for it to properly discharge its responsibilities. (b) If money in the mental health trust settlement income account is not needed to meet the necessary expenses of the state's integrated comprehensive mental health program, the authority shall transfer the money to the unrestricted general fund for expenditure through legislative appropriation for other public purposes. Sec. 37.14.045. Limitation on grants and contracts paid for from mental health trust settlement income account. (a) The authority may award grants and contracts that are paid for from money in the mental health trust settlement income account only in furtherance of its purpose to ensure an integrated comprehensive mental health program. (b) In awarding grants and contracts that are paid for from money in the mental health trust settlement income account, the authority shall consider proposals only from applicants submitting a detailed proposal in the form prescribed by the authority. (c) The authority may not award a grant or contract that is to be paid for from money in the mental health trust settlement income account unless the authority makes written findings explaining that (1) the grant or contract awarded will further the authority's purpose to ensure an integrated comprehensive mental health program; (2) the applicant has submitted an adequate plan for project implementation, including both financial feasibility and project effectiveness; (3) the applicant has demonstrated that sufficient expertise is available to accomplish the objectives of the proposed program or project; and (4) the applicant has identified operating, maintenance, and other costs associated with the project, including those ancillary to the project, and future obligations associated with the project. (d) The authority may establish other requirements for the award of grants and contracts under this section to ensure an integrated comprehensive mental health program. (e) The authority shall award grants and contracts that are paid for from money in the mental health trust settlement income account in amounts that (1) are appropriate to the conditions of the applicant and the proposed program or project; and (2) will make the most effective use of the funds in the mental health trust settlement income account that are available for expenditure. Sec. 37.14.050. Contributions. [Repealed, § 13 ch 48 SLA 1987.] Sec. 37.14.099. Definitions. In AS 37.14.001 — 37.14.099, (1) “authority” means the Alaska Mental Health Trust Authority established under AS 44.25.200 ; (2) “board” means the board of trustees of the authority; (3) “enabling Act” means the Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709. Article 2. Public School Trust Fund. Sec. 37.14.110. Public school trust fund established. (a) There is established as a separate endowment trust fund the public school trust fund. (b) The principal of the fund established in (a) of this section consists of (1) the balance of the public school permanent fund on July 1, 1978; and (2) sums transferred under AS 37.14.150 . (c) [Repealed § 9 ch 80 SLA 2018.] Sec. 37.14.120. Public School Fund Advisory Board created. (a) There is created in the Department of Revenue the Public School Fund Advisory Board composed of the commissioner of education and early development, three members elected by the Board of Education and Early Development from among its membership, and the commissioner of revenue. (b) The board created in (a) of this section shall elect a chairman from the membership of the board. Members serve without compensation but are entitled to per diem and travel expenses authorized by law for other boards. Sec. 37.14.130. Powers and duties of board. The board created in AS 37.14.120 has the following powers and duties: (1) to hold regular meetings and special meetings considered necessary; and (2) to have prepared an annual accounting of the principal and income of the fund established in AS 37.14.110 . Sec. 37.14.140. Utilization of income. Sec. 37.14.150. Contributions. During each fiscal year the commissioner of revenue shall transfer to the fund created in AS 37.14.110 a sum equal to one-half of one percent of the total receipts derived from the management of state land, including amounts paid to the state as proceeds of sale or annual rent of surface rights, mineral lease rentals, royalties, royalty sale proceeds, and federal mineral revenue-sharing payments or bonuses. Sec. 37.14.160. Duties of the commissioner of revenue. The commissioner of revenue is the treasurer of the trust fund created in AS 37.14.110 and shall (1) in carrying out investment duties under this section, exercise the same powers and duties established for the Alaska Retirement Management Board in AS 37.10.220 ; (2) deposit the principal and income from investments into the fund; (3) invest and maintain accounting records; (4) provide reports to the board established under AS 37.14.120 on the condition and investment performance of the fund; (5) determine, on July 1 of each year, the monthly average market value of the fund for the five fiscal years preceding the previous fiscal year. Sec. 37.14.165. Use of the public school trust fund. Each year, the legislature may appropriate not more than five percent of the amount determined by the commissioner of revenue under AS 37.14.160 (5) for the following purposes: (1) funding support of the state public school program; and (2) reimbursement of the costs of administration of the fund. Sec. 37.14.170. Investments. The commissioner of revenue is the fiduciary of the trust fund and shall invest the fund to provide increasing returns from capital appreciation and net income over long-term periods to the fund's current beneficiaries. The commissioner may invest the money in the fund on the basis of probable total rate of return to promote the long-term generation of capital appreciation and income. In managing the trust fund, the commissioner shall (1) consider the status of the fund's capital and the income generated on both a current and a probable future basis; (2) determine the appropriate investment objectives; (3) establish investment policies to achieve the objectives; and (4) act only in regard to the financial interests of the fund's beneficiaries. Article 3. Alaska Children's Trust. Sec. 37.14.200. Alaska children's trust established. (a) The Alaska children's trust is established as a separate endowment trust of the state. (b) The trust consists of (1) legislative appropriations to the trust; (2) donations to the trust; and (3) income earned on investments of trust assets appropriated by the legislature to the trust. (c) The commissioner of revenue shall manage the trust as an endowment, with the goal that the purchasing power of the trust will not diminish over time without regard to additional contributions that may be made to the trust. The commissioner shall invest the assets of the trust in a manner likely to yield at least a five percent real rate of return over time. The commissioner may commingle the assets of the trust with other public funds for purposes of investment. (d) In carrying out the investment duties under AS 37.14.200 — 37.14.270, the commissioner of revenue has the powers and duties set out in AS 37.10.071 . The commissioner shall provide reports to the board on the condition and investment performance of the trust. (e) As soon as is practicable after July 1 of each year, the commissioner of revenue shall determine the average of the market values of the trust on June 30 for the immediately preceding three fiscal years. The commissioner shall identify five percent of that amount as available for appropriation to the grant account from which the board may award grants under AS 37.14.230 . The commissioner shall also report as available for appropriation a total of amounts previously identified as available for appropriation to the grant account that have not been appropriated. (f) The legislature may appropriate from the principal of the trust up to $150,000 each year for the administrative expenses of the board relating to AS 37.14.200 — 37.14.270. The legislature may also appropriate from the principal of the trust expenses related to the commissioner of revenue's management of trust assets. (g) Nothing in this section creates a dedicated fund. Sec. 37.14.205. Alaska children's trust grant account. (a) The Alaska children's trust grant account is established as an account in the general fund. The legislature may appropriate funds to the grant account from (1) the trust account in the amount described in AS 37.14.200 (e); (2) program receipts from special request Alaska children's trust plates under AS 28.10.421 (d)(14); (3) program receipts from birth certificates under AS 18.50.225 ; (4) program receipts from certificates of marriage under AS 18.50.272 ; (5) private restricted-use donations; and (6) any other source. (b) The board may use money in the grant account for the following purposes and without further appropriation: (1) to make grants under AS 37.14.230 ; (2) to obtain private and federal grants for the trust and the grant account; (3) to solicit contributions, gifts, and bequests for the trust and the grant account; (4) to expend private restricted-use donations in conformity with the donor's restrictions. Sec. 37.14.210. Powers and duties of the commissioner of revenue. [Repealed, § 14 ch 115 SLA 2010.] Sec. 37.14.220. Administration of the trust. The trust shall be administered by the Alaska Children's Trust Board. Sec. 37.14.225. Trust board established. The Alaska Children's Trust Board is established in the Office of the Governor. The board is composed of (1) the governor or a designee of the governor; (2) the commissioner of family and community services or the commissioner's designee; (3) the commissioner of education and early development or the commissioner's designee; and (4) four public members appointed by the governor who have experience and expertise in (A) children's or prevention programs, including child abuse and neglect prevention programs; or (B) private sector finance. Sec. 37.14.230. Powers and duties of the board. (a) The board shall (1) hold regular and special meetings it considers necessary; the board may hold meetings by teleconference; (2) award grants from the grant account to community-based programs that the board finds will aid in the prevention of child abuse and neglect; (3) monitor approved programs for compliance with AS 37.14.200 — 37.14.270 and specified grant conditions; (4) maintain records for all donations to the trust and the grant account; the records must reflect the amount of the donation, the date of the donation, the donor's intent, if any, with respect to how the donation is to be used, the account into which the donation was deposited, and the manner in which the donation was expended; (5) apply for and use funds from the grant account to obtain private and federal grants for the prevention of child abuse and neglect; (6) solicit contributions, gifts, and bequests to the trust and the grant account; (7) keep electronic recordings of each meeting of the board to be made available on request; (8) submit to the governor and make available to the legislature by February 1 each year a report describing (A) the child abuse and neglect prevention services that were provided by the programs to which the board awarded grants; and (B) the annual level of contributions, income, and expenses of the trust and the grant account; (9) make arrangements with the commissioner or a financial depository to manage private restricted-use donations that are not fully expended and account for any interest earned on the donations. (b) The board may enter into joint arrangements with a private nonprofit entity or entities for the purpose of making grants and fundraising for the support of child abuse and neglect prevention programs. In entering into a joint arrangement, the board may not delegate its duties or authority under AS 37.14.200 — 37.14.270. Sec. 37.14.240. Fund utilization. [Repealed, § 14 ch 115 SLA 2010.] Sec. 37.14.245. Regulations. (a) The board may adopt regulations to implement AS 37.14.200 — 37.14.270. Regulations adopted by the board are not subject to AS 44.62 (Administrative Procedure Act). The board shall comply with the requirements of AS 44.62.310 and 44.62.312. (b) Notwithstanding (a) of this section, a regulation adopted under AS 37.14.200 — 37.14.270 shall be published in the Alaska Administrative Register and Alaska Administrative Code for informational purposes. A regulation adopted under this section shall conform to the style and format requirements of the drafting manual for administrative regulations that is published under AS 44.62.050 . (c) At least 30 days before the adoption, amendment, or repeal of a regulation under this section, the board shall provide notice of the action that is being considered. The notice must include publication in a newspaper of general circulation in the state. (d) A regulation adopted under this section takes effect 30 days after adoption by the board unless a later effective date is stated in the regulation. (e) Notwithstanding the other provisions of this section, a regulation may be adopted, amended, or repealed, effective immediately, as an emergency regulation. For an emergency regulation to be effective, the board must find that the immediate adoption, amendment, or repeal of the regulation is necessary. The board shall, within 10 days after adoption of an emergency regulation, give notice of the adoption under (c) of this section. An emergency regulation adopted under this subsection may not remain in effect past the date of the next regular meeting of the board unless the board complies with the procedures set out in this section and adopts the regulation as a permanent regulation. (f) In this section, “regulation” has the meaning given in AS 44.62.640 (a). Secs. 37.14.250 — 37.14.260. Grants; eligibility for grants. [Repealed, § 14 ch 115 SLA 2010.] Sec. 37.14.270. Definitions. In AS 37.14.200 — 37.14.270, unless the context otherwise requires, (1) “board” means the Alaska Children's Trust Board; (2) “grant account” means the Alaska children's trust grant account established in AS 37.14.205 ; (3) “private restricted-use donation” means a donation related to the prevention of child abuse and neglect where a donor specifies in writing that the donation be used for any purpose other than to be placed in the corpus of the trust and invested with trust assets; (4) “trust” means the Alaska children's trust established in AS 37.14.200 . Article 4. Investment Loss Trust Fund. Sec. 37.14.300. Investment loss trust fund. (a) There is established as a separate fund in the state treasury the investment loss trust fund. The trust fund consists of money appropriated to it by the legislature. The Department of Revenue is the custodian of the trust fund and shall invest the trust fund in accordance with AS 37.10.071 . Subject to appropriation, the amount earned on money in the trust fund shall be retained in the trust fund. The trust fund shall be held in trust for the benefit of participants in the supplemental annuity plan established under AS 39.30.150 — 39.30.180 and for other purposes authorized by this section, subject to the conditions set out in this section. (b) The Department of Administration shall spend money from the trust fund as necessary to (1) hold participants in the plan and annuity holders harmless from a loss on investments in guaranteed investment and annuity contracts issued by Executive Life Insurance Company of California; (2) pursue a right to recover amounts from persons who may have unlawfully caused or contributed to the loss on investments; and (3) protect the interest of participants in the plan and annuity holders during proceedings to conserve or liquidate the assets of Executive Life Insurance Company of California. (c) If the plan or an annuity holder does not incur a loss on investments, or, if after compensating the plan and annuity holders for the loss on investments, a balance remains in the trust fund, the trust fund created in (a) of this section is terminated and the balance of the trust fund lapses pro rata into the funds from which the appropriations to the trust fund were made. The state is subrogated to a right of claim held by participants in the plan and annuity holders to the extent of amounts spent from the trust fund. (d) In this section, (1) “annuity holder” means (A) a plan participant who elects to receive an annuity contract acquired by the Department of Administration and issued by Executive Life Insurance Company of California; and (B) members of the Unlicensed Vessel Personnel Annuity Retirement Plan who receive an annuity contract acquired by the Department of Administration and issued by Executive Life Insurance Company of California; (2) “loss on investments” means (A) the difference between the principal amount plus accrued interest earned through May 3, 1991, on the guaranteed investment contracts issued by Executive Life Insurance Company of California, according to the terms of the contracts, and a lesser amount received by the plan upon maturity, sale, or other termination of the contracts; plus (B) accrued earnings on the amount described in (A) of this subsection, beginning May 4, 1991, and continuing until the earlier of a participant's benefit commencement date or the maturity, sale, or other termination of the contracts, at a rate equal to the rate, less one percent to be used for the purposes of (b)(2) — (3) of this section, earned each month on the investment loss trust fund; or (C) any unpaid annuity amounts due to annuity holders under an annuity contract issued by Executive Life Insurance Company of California; (3) “plan” means the supplemental annuity plan established under AS 39.30.150 — 39.30.180; (4) “trust fund” means the investment loss trust fund established under this section. Article 5. Exxon Valdez Oil Spill Trust. Sec. 37.14.400. Trust recognized. The trust established under the Memorandum of Agreement and Consent Decree entered into by the United States and the state in settlement of claims to money received for injury, loss, or destruction of the natural resources affected by the March 24, 1989, Exxon Valdez oil spill, and approved by the United States District Court on August 28, 1991, is recognized. It shall be managed as provided in the Memorandum of Agreement and Consent Decree that established it. Sec. 37.14.405. Appropriations required. (a) Notwithstanding any other provision of law, a state agency may not expend money received from the trust unless the expenditure is in accordance with an appropriation made by law. (b) Appropriations made to satisfy the requirement of (a) of this section may be made by general appropriations of program receipts conditioned on compliance with the program review provisions of AS 37.07.080 (h). (c) The provisions of (b) of this section do not apply to amounts paid as reimbursements to the state, as authorized by the Memorandum of Agreement and Consent Decree establishing the trust, for expenses that are (1) related to the Exxon Valdez oil spill; and (2) incurred by the state on or before December 31, 1992. Sec. 37.14.410. Reimbursed expenditures. (a) Amounts received by the state as reimbursement for expenses related to the Exxon Valdez oil spill incurred by the state on or before December 31, 1992, shall be deposited in the general fund and, except as required under (b) of this section, may not be credited to an oil and hazardous substance release mitigation account under AS 46.04.010 or to an account established in AS 46.08.020 or 46.08.025. (b) A percentage of each payment deposited in the general fund under (a) of this section shall be credited to the prevention account established in AS 46.08.010 (a)(1). That percentage is determined by dividing (1) the amount of the expenses for which the state may be reimbursed under (a) of this section that were paid from the oil and hazardous substance release response fund established under AS 46.08.010 , by (2) the total amount of expenses for which the state may be reimbursed under (a) of this section. Sec. 37.14.415. Budget and reports. The state trustees shall (1) submit to the governor and the legislature by December 15 of each year a report setting out, for each object or purpose of expenditure, the amounts approved for expenditure from the trust during the preceding fiscal year and the amounts actually expended during the preceding fiscal year; (2) prepare and submit, under AS 37.07 (Executive Budget Act), a budget for the next fiscal year setting out, for each object or purpose of expenditure, the trustees' estimate of the amounts that are, during the next fiscal year, to be funded by the trust and expended by state agencies; and (3) prepare and submit to the legislature at the same time the budget for state agency expenditures is submitted under (2) of this section, a proposal setting out, for each object or purpose of expenditure, the trustees' estimate of the amounts that are to be funded by the trust in the next fiscal year and that are not included in the budget submitted under (2) of this section. Sec. 37.14.420. Payments to persons other than governments. The state trustees may not agree to an expenditure of money from the trust to a person or entity other than an agency of the state or federal government unless the expenditure is for administrative expenses of the trust and is consistent with the competitive principles of AS 36.30 (State Procurement Code). This section does not prevent an agency receiving trust money from expending the money in accordance with procurement or other law applicable to that agency. Sec. 37.14.425. Public records. For purposes of AS 40.25.120 , records of the trust in the custody of or subject to the control of state officers and agencies are public records. Sec. 37.14.430. Applicability of open meetings law. (a) The provisions of AS 44.62.310 — 44.62.319 (Open Meetings Act) apply to a meeting related to the trust in which (1) one or more of the state trustees and one or more of the federal trustees participate, except to the extent that applicable federal law conflicts with AS 44.62.310 or 44.62.312, in which case the applicable federal law governs; or (2) two or more of the state trustees, but none of the federal trustees, participate. (b) Notwithstanding (a) of this section, the provisions of AS 44.62.310 — 44.62.319 (Open Meetings Act) do not apply to a discussion between the trustees outside of a formal meeting about matters related to the trust if, during the discussion, no decision is made and none of the trustees agrees to vote in a particular way. (c) The state trustees may discuss the establishment of an official common state position regarding the trust in executive session under AS 44.62.310 (b) and (c)(1). (d) For the purposes of this section, (1) a person to whom a state trustee has delegated any of the trustee's authority related to the trust is considered a state trustee; and (2) a person to whom a federal trustee has delegated any of the trustee's authority related to the trust is considered a federal trustee. Sec. 37.14.450. Definitions. In AS 37.14.400 — 37.14.450, (1) “federal trustee” means a person appointed by the President of the United States to serve as a co-trustee of the trust; (2) “state trustee” means a state officer designated by the governor to serve as a co-trustee of the trust; (3) “trust” means the trust established for natural resource damage recoveries under the Memorandum of Agreement and Consent Decree entered into by the United States and the state in settlement of claims to money received by the state and federal governments for injury, loss, or destruction to the natural resources affected by the March 24, 1989, Exxon Valdez oil spill, and approved by the court on August 28, 1991. Article 6. Alaska Heritage Endowment Fund. Sec. 37.14.500. Alaska heritage endowment fund established. The Alaska heritage endowment fund is established as a separate endowment trust fund of the state. The principal of the fund consists of (1) legislative appropriations to the fund; and (2) gifts, bequests, and contributions of cash or other assets made by a person who has specified their placement in the fund principal. Sec. 37.14.510. Net income account. (a) The net income account is established in the Alaska heritage endowment fund. The net income account of the fund consists of (1) money and other assets given by persons to the fund whose placement in the principal of the fund is not required by AS 37.14.500 (2); and (2) amounts earned on the investment of gifts, bequests, and contributions of cash or other assets whose placement in the principal of the fund is required under AS 37.14.500 (2). (b) The legislature may appropriate from the net income account to the principal of the fund under AS 37.14.500 (1). (c) The net income of the fund shall be determined by the commissioner of revenue in accordance with investment accounting principles and in a manner that preserves the distinction between principal and income. (d) Unless otherwise provided by the act making an appropriation under (b) of this section, an amount appropriated to the net income account under (b) of this section does not lapse. Sec. 37.14.520. Powers and duties of the commissioner of revenue. The commissioner of revenue is the treasurer of the fund and has the power and duty to (1) act as official custodian of the cash and investments belonging to the fund by securing adequate and safe custodial facilities; (2) receive all items of cash and investments belonging to the fund; (3) collect the principal and income from investments owned or acquired by the fund and deposit the amounts in separate principal and income accounts for the fund; (4) invest and reinvest the assets of the fund as provided in this section and as provided for the investment of funds under AS 37.14.170 ; (5) exercise the powers of an owner with respect to the assets of the fund; (6) maintain accounting records of the fund in accordance with investment accounting principles and with distinction between the principal and income accounts of the fund; (7) engage an independent firm of certified public accountants to annually audit the financial condition of the fund's investments and investment transactions; (8) enter into and enforce contracts or agreements considered necessary for the investment purposes of the fund; (9) report to the commission the condition and investment performance of the fund; (10) do all acts, whether or not expressly authorized, that the commissioner of revenue considers necessary or proper in administering the assets of the fund. Sec. 37.14.530. Use of fund. (a) The principal of the fund and any capital gains or losses realized on the principal shall be retained perpetually in the fund for investment as specified in AS 37.14.520 . (b) The net income account of the fund may be appropriated for the following purposes: (1) reimbursement to the Department of Revenue for the costs of establishing and managing the fund; (2) the administrative expenses of the Museum Collection Advisory Committee relating to acquisitions from the fund, as determined by the legislature; (3) acquisitions authorized by AS 14.57.100 — 14.57.199; and (4) reimbursement of other costs of administration of the fund. (c) The balance remaining in the net income account that, at the end of the fiscal year, has not been appropriated, or that has been appropriated but not expended, shall be invested until appropriated or expended. Sec. 37.14.540. Definition. In AS 37.14.500 — 37.14.540, “fund” means the Alaska heritage endowment fund established by AS 37.14.500 . Article 7. Arctic Winter Games Team Alaska Trust. Sec. 37.14.600. Arctic Winter Games Team Alaska trust fund established. (a) The Arctic Winter Games Team Alaska trust fund is established as a separate endowment trust of the state consisting of (1) appropriations to the trust; (2) donations to the trust; and (3) income earned on investments of trust assets. (b) The commissioner of revenue shall manage the trust as an endowment, with the goal of ensuring that the purchasing power of the trust will not diminish over time without regard to additional contributions that may be made to the trust. (c) Nothing in this section creates a dedicated fund. Sec. 37.14.610. Duties of the commissioner. The commissioner of revenue has the power and duty to (1) act as official custodian of the cash and investments belonging to the Arctic Winter Games Team Alaska trust by securing adequate and safe custodial facilities; (2) exercise the same powers and duties as those established for the Alaska Retirement Management Board in AS 37.10.220 ; (3) invest the assets of the trust in a manner likely to yield at least five percent real rate of return over time; (4) maintain accounting records of the trust in accordance with investment accounting principles; (5) enter into and enforce contracts or agreements considered necessary for the investment purposes of the trust; (6) report annually to the board of directors of the Arctic Winter Games Team Alaska the condition and performance of the trust; (7) monitor use of trust money by the Arctic Winter Games Team Alaska; and (8) do all acts that the commissioner of revenue considers necessary or proper in administering the assets of the trust. Sec. 37.14.620. Transfers from the trust fund. (a) As soon as practicable after July 1 of each year, the commissioner of revenue shall determine the average month-end market value of the Arctic Winter Games Team Alaska trust fund for the immediately preceding three fiscal years. Five percent of that amount shall be identified by the commissioner as available for appropriation to the Department of Revenue for (1) costs to the department of administering the trust; and (2) transfers to Arctic Winter Games Team Alaska, a nonprofit corporation, in amounts requested by the corporation for purposes authorized in AS 37.14.630 . (b) As soon as practicable after July 1 of each fiscal year that the Arctic Winter Games are held in the state, the commissioner of revenue shall determine whether more money may be made available to support the state's participation in the games from the Arctic Winter Games Team Alaska trust fund than the amount determined under (a) of this section. The determination of the amount of additional money available shall be based on consideration of AS 37.14.600 (b) and any amounts identified during prior fiscal years as available for appropriation under (a) of this section that were never transferred from the trust fund. The additional amount shall be identified by the commissioner and is available for appropriation to the Department of Revenue for transfers to Arctic Winter Games Team Alaska. Sec. 37.14.630. Use of trust money. The board of directors of the Arctic Winter Games Team Alaska may use money transferred from the Arctic Winter Games Team Alaska trust fund only for (1) equipment, uniforms, travel, and food and lodging for Arctic Winter Games Team Alaska athletes, coaches, staff, and directors; (2) staging tryouts for Arctic Winter Games Team Alaska in events; (3) costs of athletic skill clinics; (4) grants to youth sports organizations for equipment; (5) providing for cultural performers and exhibitions to accompany the Arctic Winter Games Team Alaska sports delegation; (6) costs incurred by the Arctic Winter Games Host Society for expenses associated with holding the Arctic Winter Games in the state; and (7) administrative expenses related solely to the state's participation in the Arctic Winter Games. Article 8. Alaska Veterans' Memorial Endowment Fund. Sec. 37.14.700. Alaska veterans' memorial endowment fund established. (a) The Alaska veterans' memorial endowment fund is established as a separate endowment trust fund of the state. The fund consists of (1) appropriations to the fund; (2) donations to the fund; and (3) income earned on investments of fund assets. (b) The commissioner of revenue shall manage the fund as an endowment, with the goal that the purchasing power of the fund will not diminish over time without regard to additional contributions that may be made to the fund. The commissioner shall invest the assets of the fund in a manner likely to yield at least a five percent real rate of return over time. (c) Nothing in this section creates a dedicated fund. Sec. 37.14.720. Powers and duties of the commissioner of revenue. In carrying out the investment duties under AS 37.14.700 — 37.14.740, the commissioner of revenue has the powers and duties set out in AS 37.10.071 . The commissioner shall provide reports to the adjutant general of the Department of Military and Veterans' Affairs on the condition and investment performance of the fund. Sec. 37.14.730. Use of fund. (a) As soon as practicable after July 1 of each year, the commissioner of revenue shall determine the average month-end market value of the fund for the immediately preceding three fiscal years. The commissioner shall identify five percent of that amount as available for appropriation by the legislature for uses described in (b) of this section. (b) Appropriations of the amount identified in (a) of this section may be used for the following purposes: (1) grants for the maintenance, repair, replacement, and enhancement of, or addition to, veterans' memorials or monuments to the military; (2) grants for the development and construction of new veterans' memorials or monuments to the military if the adjutant general determines that the purposes set out in (1) of this subsection have been met in a fiscal year; (3) reimbursement of the costs of establishment, management, and administration of the fund. (c) After consultation with appropriate veterans' organizations, the adjutant general of the Department of Military and Veterans' Affairs shall administer the grant program and award grants from the money appropriated from the fund. The adjutant general may adopt regulations under AS 44.62 (Administrative Procedure Act) to establish procedures and standards to administer the grant program and for the award of grants. The standards may include requirements for recipients to match grant awards, if appropriate. Sec. 37.14.740. Definition. In AS 37.14.700 — 37.14.740, “fund” means the Alaska veterans' memorial endowment fund established in AS 37.14.700 . Article 9. Alaska Higher Education Investment Fund. Sec. 37.14.750. Alaska higher education investment fund established. (a) The Alaska higher education investment fund is established as a separate fund in the state treasury for the purpose of making grants awarded under AS 14.43.400 — 14.43.420 by appropriation to the account established under AS 14.43.915 (a), making scholarship payments to qualified postsecondary institutions for students under AS 14.43.810 — 14.43.849 by appropriation to the account established under AS 14.43.915 (b), and funding agreements for medical education under AS 14.42.033 . Money in the fund does not lapse. The fund consists of (1) money appropriated to the fund; (2) income earned on investment of fund assets; (3) donations to the fund; and (4) money redeposited under AS 14.43.915 (c). (b) The legislature may appropriate any amount to the fund established in (a) of this section. Nothing in this section creates a dedicated fund. (c) As soon as is practicable after July 1 of each year, the commissioner of revenue shall determine the market value of the fund established in this section on June 30 for the immediately preceding fiscal year. The commissioner shall identify seven percent of that amount as available for appropriation as follows: (1) one-third for the grant account established under AS 14.43.915 (a), from which the Alaska Commission on Postsecondary Education may award grants; and (2) two-thirds for the scholarship account established under AS 14.43.915 (b), from which the Alaska Commission on Postsecondary Education may award scholarships. (d) In this section, unless the context requires otherwise, “fund” means the Alaska higher education investment fund established in (a) of this section. Article 10. Mine Reclamation Trust Fund. Sec. 37.14.800. Mine reclamation trust fund established. (a) The mine reclamation trust fund is established as a separate trust fund of the state. The principal and earnings of the fund shall be held by the state for the purpose of protecting the public interest in reclaiming mine sites in the state. The fund is composed of the mine reclamation trust fund income account and the mine reclamation trust fund operating account. (b) The mine reclamation trust fund income account consists of payments and deposits made by miners to satisfy the miners' reclamation bonding or financial assurance obligation under AS 27.19.040 or AS 27.21.160 and earnings on the income account. The mine reclamation trust fund operating account consists of appropriations by the legislature of the annual balance of the mine reclamation trust fund income account and any earnings on those appropriations while in the operating account.

(c) Before payments are accepted into the mine reclamation trust fund income account for a particular mining operation, the commissioner of natural resources and the miner may execute a memorandum of understanding that outlines a schedule of expected payments into the trust fund and the relationship of the payments and accumulated earnings in the trust fund to reclamation obligations of the miner under AS 27.19.040 or AS 27.21.160 . The memorandum of understanding may also address expected use of the fund under AS 37.14.820 . If the memorandum of understanding addresses investment of the fund with respect to payments made by the miner, the commissioner of revenue must also sign the memorandum. (d) Nothing in this section creates a dedicated fund. Sec. 37.14.810. Powers and duties of the commissioner of revenue. The commissioner of revenue is a fiduciary to the fund. The commissioner shall manage both the mine reclamation trust fund income account and the mine reclamation trust fund operating account and shall invest their assets in accordance with AS 37.10.071 . Sec. 37.14.820. Use of the mine reclamation trust fund operating account. (a) The commissioner of natural resources may make expenditures from the mine reclamation trust fund operating account for the following purposes: (1) reclamation of mining operations for which a payment or deposit has been made into the fund; (2) maintenance of dams and other permanent features related to a mining operation; (3) monitoring of site stability and water quality related to a mining operation; (4) control and treatment of acid rock drainage and other leachate related to a mining operation; (5) protection and treatment of surface water and groundwater related to a mining operation; (6) long-term site management of a mining operation; (7) refunds to miners of the deposits to the fund upon satisfactory completion of reclamation tasks as determined by the Department of Natural Resources. (b) Subject to appropriation, the mine reclamation trust fund operating account may be used to pay the expenses incurred by the commissioner of revenue in managing the fund and administrative expenses incurred by the Department of Natural Resources in administering the fund and programs under AS 27.19 and AS 27.21 . (c) The Department of Natural Resources may not spend money deposited in the fund for one mining operation at another mining operation. (d) In accordance with AS 37.14.800 (b), and except as provided in (b) of this section, earnings on the mine reclamation trust fund operating account are added to that account and are available for expenditure without further appropriation. Sec. 37.14.830. Regulations. The commissioner of natural resources may adopt regulations necessary to carry out the purposes of AS 37.14.800 and 37.14.820 — 37.14.840. Sec. 37.14.840. Definition. Unless the context otherwise requires, in AS 37.14.800 — 37.14.840, “fund” means the mine reclamation trust fund established in AS 37.14.800 . Article 11. Carbon Storage Closure Trust Fund. Sec. 37.14.850. Carbon storage closure trust fund. (a) The carbon storage closure trust fund is established as a separate trust fund of the state outside and separate from the general fund. The legislature may appropriate the principal and earnings of the fund for the purpose of protecting the public interest in maintaining and closing carbon storage facilities in the state. Money in the fund does not lapse. (b) The carbon storage closure trust fund consists of payments received under AS 41.06.175 and earnings on the fund. The payments received for each storage facility shall be separately accounted for under AS 37.05.142 . The commissioner of revenue is a fiduciary of the fund. The commissioner of revenue shall manage and invest the fund assets as provided in AS 37.10.071 . (c) The commissioner of natural resources may make expenditures from the carbon storage closure trust fund for the purpose of conducting long-term monitoring and maintenance of a storage facility under AS 41.06.305 . If a storage operator is unable to fulfill the storage operator's duties and the financial assurance provided by the storage operator under AS 41.06.110 (c)(2) is exhausted or insufficient, the Alaska Oil and Gas Conservation Commission may make expenditures from the fund for the purposes allowed under AS 41.06.105 — 41.06.210. (d) Nothing in this section creates a dedicated fund. (e) In this section, (1) “fund” means the carbon storage closure trust fund; (2) “storage facility” and “storage operator” have the meanings given in AS 41.06.210 .