JUNEAU, AK — Wednesday, Senate Finance Co-Chair Bert Stedman (R-Sitka) introduced Senate Bill 221 to prohibit investments in or do business with DigitalBridge Group, Inc. or its affiliates. The bill addresses concerns outlined in an independent review by WilmerHale of a $75 million investment from the Constitutional Budget Reserve Fund (CBR) by former Department of Revenue Commissioner Adam Crum involving DigitalBridge. 

The WilmerHale review found that, while the former commissioner had statutory authority to make the investment, the process did not meet the fiduciary standards required for managing public funds. The review cited failure of due diligence, limited risk analysis, failure to follow established investment protocols, and insufficient consultation with legal and financial professionals.

“Fiduciary responsibility by those who manage Alaska’s wealth goes beyond simple statutory authority,” said Sen. Stedman. “Managing billions of dollars of Alaska’s savings comes with a clear fiduciary duty to act prudently, follow established safeguards, and fully evaluate the risks. This review makes clear that these standards were not met.” 

The legislation prohibits any state fiduciary from investing in or doing business with DigitalBridge Group, Inc. or its affiliates. This applies to the Alaska Permanent Fund Corporation, the Alaska Retirement Management Board, and the Department of Revenue. The statutory ban removes any discretion to use public funds for investments or business with DigitalBridge.

“This is about ensuring that investment decisions involving Alaskans’ money are made carefully, transparently, and with full fiduciary responsibility,” said Sen. Stedman. “The Legislature must act when safeguards are not followed and ensure they are strong enough to prevent this from happening.”

Senate Bill 221 was referred to the Finance Committee for consideration.

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