AK HB396

State funds subject to AS 37 are prohibited from investing in publicly traded securities of Russian entities, with divestment required within 180 days of identification.

Russian entities include debt instruments issued by the Russian government and entities identified by the U.S. Office of Foreign Assets Control as owned/controlled by Russia or operating in Russia's financial services sector, excluding companies exempt from federal sanctions.

State fiduciaries managing commingled investments or index funds must request removal of Russian entities rather than divest directly, within 180 days of identification.

The commissioner of revenue is authorized to identify Russian entities, maintain an updated list, provide written notice to identified entities, and adopt regulations under AS 44.62.

Commissioners, fiduciaries, and related parties are granted immunity from liability, exemption from conflicting state law obligations, and state indemnification for actions taken in good faith to comply with divestment requirements; the provision repeals January 1, 2024, and takes effect immediately.