Legislature(2007 - 2008)

2007-01-19 Senate Journal

Full Journal pdf

2007-01-19                     Senate Journal                      Page 0058
SB 61                                                                                                                         
SENATE BILL NO. 61 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act making appropriations for qualified regional                                                                  
          seafood development associations, for investigation                                                                   
          and litigation relating to the public employees'                                                                      
          retirement system and the teachers' retirement                                                                        
          system, and for a special advisory election; and                                                                      
          providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 17:                                                                                 
                                                                                                                                
Dear President Green:                                                                                                           
                                                                                                                                
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                                                      
transmitting a bill making appropriations for qualified regional                                                                
seafood development associations; for investigation and litigation                                                              
relating to the public employees' retirement system and the teachers'                                                           
retirement system; and for a special advisory election.                                                                         
                                                                                                                                
                                                                                                                                
                                                                                                                                

2007-01-19                     Senate Journal                      Page 0059
This early supplemental appropriation is comprised of items that                                                                
require timely approval by the Legislature.  Other supplemental                                                                 
requests are currently being reviewed by my Office of Management                                                                
and Budget, and will be submitted to the Legislature in a separate                                                              
appropriation bill at a later date.                                                                                             
                                                                                                                                
Section 1 of the bill would appropriate the amount of the seafood                                                               
development tax collected under AS 43.76.350 - 43.76.399 in calendar                                                            
year 2005 and deposited in the general fund under AS 43.76.380(d) to                                                            
the Department of Commerce, Community, and Economic                                                                             
Development to provide financial assistance in Fiscal Year 2007 to                                                              
qualified regional seafood development associations.                                                                            
                                                                                                                                
Section 2 of the bill would appropriate a total of $12,000,000, of                                                              
which about 69 percent would come from the public employees'                                                                    
retirement system fund and about 31 percent from the teachers'                                                                  
retirement system fund, for use in an investigation and proposed                                                                
litigation related to actuarial services received by the State of Alaska.                                                       
The investigation would conclude in Fiscal Year 2007, and the                                                                   
proposed litigation is contemplated to commence later in that fiscal                                                            
year.  The amount of the appropriations is the estimated costs to                                                               
complete the investigation and take the case from inception through                                                             
trial.  The final actual costs may be more or less.  Through the budget                                                         
process, and on request, the Department of Law would provide reports                                                            
regarding the status of the litigation and the expenditures from the                                                            
appropriations.                                                                                                                 
                                                                                                                                
The appropriations in sec. 2 of the bill would be entirely financed by a                                                        
recent litigation settlement benefiting the public employees' retirement                                                        
system fund and the teachers' retirement system fund.  The Alaska                                                               
Retirement Management Board recently settled its claim against Time                                                             
Warner for securities fraud -- the proceeds for those funds from that                                                           
litigation totaled $15,600,000.  The Alaska Retirement Management                                                               
Board supports using $12,000,000 of those proceeds to finance the                                                               
investigation and proposed litigation for which the appropriations in                                                           
this bill would be used.                                                                                                        
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2007-01-19                     Senate Journal                      Page 0060
Section 3 of the bill would appropriate $1,156,300 from the general                                                             
fund to the Office of the Governor, division of elections, for the costs                                                        
associated with the April 3, 2007, special advisory election required by                                                        
ch. 1, FSSLA 2006, on the subject of employment benefits for same-                                                              
sex partners of public employees and retirees.                                                                                  
                                                                                                                                
Because these items need Legislative approval in a timely manner, I                                                             
urge your prompt and favorable action on this measure as soon as                                                                
possible.                                                                                                                       
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor