2009-03-09                     Senate Journal                      Page 0470
SB 140                                                                                                                        
SENATE BILL NO. 140 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to an investment in the education                                                                    
          loan fund; relating to authority for the commissioner                                                                 
          of revenue to enter into a bond purchase agreement                                                                    
          and letter of credit with the Alaska Student Loan                                                                     
          Corporation; and providing for an effective date."                                                                    
                                                                                                                                
was read the first time and referred to the Education and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Revenue                                                                                 
 Fiscal Note No. 2, Department of Education and Early                                                                           
        Development                                                                                                             
                                                                                                                                
Governor's transmittal letter dated March 3:                                                                                    
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to an investment in the                                                         
education loan fund, and relating to the authority of the commissioner                                                          
of the Department of Revenue (DOR) to enter into a bond purchase                                                                
agreement and letter of credit to the Alaska Student Loan Corporation.                                                          
                                                                                                                                
The bill would allow the DOR commissioner, during times when the                                                                
education loan fund is unable to finance loan demand through the                                                                
issuance of bonds, to invest money in the education loan fund for the                                                           
purpose of financing education loans. The corporation would be                                                                  
allowed to pledge education loans to secure the investment of state                                                             
funds. The bill would further require the corporation to repay the                                                              
money received and cover the costs associated with the investment.                                                              
                                                                                                                                
The bill also would allow the DOR commissioner to provide the                                                                   
corporation with a standby bond purchase agreement and a letter of                                                              
credit when market conditions relating to credit enhancement                                                                    
mechanisms are uneconomical.                                                                                                    

2009-03-09                     Senate Journal                      Page 0471
These measures are necessary to avoid a disruption in education loan                                                            
services provided by the Alaska Student Loan Corporation.                                                                       
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor