2009-03-09                     House Journal                      Page 0410
HB 172                                                                                                                        
HOUSE BILL NO. 172 by the House 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 note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Revenue                                                                                                      
2.  Fiscal, Dept. of Education & Early Development                                                                              
                                                                                                                                
The Governor's transmittal letter dated March 3, 2009, follows:                                                                 
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
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.                                                          
                                                                                                                                

2009-03-09                     House Journal                      Page 0411
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.                                                                                                    
                                                                                                                                
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"