HB 376 Summary

• Establishes the Alaska State Bank as a public corporation under the Department of Commerce, Community, and Economic Development with a primary purpose to promote infrastructure, education, science, technology, and productive capacity through financial instruments and fractional reserve banking.

• Creates a board of directors consisting of the governor, commissioner of commerce/community/economic development, commissioner of revenue, and commissioner of labor/workforce development, with a seven-member advisory board and requires quarterly examinations by the department.

• Grants the bank broad powers to accept deposits, make loans, issue bonds and stocks, provide insurance, leverage financial packages, and facilitate transactions with the Federal Reserve System and U.S. Treasury, while prohibiting certain high-risk derivatives like credit default swaps.

• Allows permanent fund dividend applicants to direct the Department of Revenue to purchase Alaska State Bank shares at a discounted rate and establishes four project categories with varying interest rates and benefits based on risk level.

• Exempts the bank from standard state procurement requirements, banking regulations, and corporate law while requiring compliance with federal law, with the bill effective July 1, 2019.