2010-01-19                     Senate Journal                      Page 1233
SB 217                                                                                                                        
SENATE BILL NO. 217 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to the issuance of state-guaranteed                                                                  
          revenue bonds by the Alaska Housing Finance                                                                           
          Corporation to finance mortgages for qualifying                                                                       
          veterans; and providing for an effective date."                                                                       
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 12:                                                                                 
                                                                                                                                
Dear President Stevens,                                                                                                         
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2010-01-19                     Senate Journal                      Page 1234
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill relating to the issuance of state-guaranteed                                                             
revenue bonds by the Alaska Housing Finance Corporation to finance                                                              
mortgages for qualifying veterans.                                                                                              
                                                                                                                                
Alaska has one of the largest percentages of veterans of any state in                                                           
the nation. This bill will provide continuation of guaranteed veteran                                                           
housing loans, by the Alaska Housing Finance Corporation. Passage of                                                            
this legislation is necessary to assure this progress continues.                                                                
                                                                                                                                
The State of Alaska is one of only a few states that receives favorable                                                         
treatment under the Internal Revenue Code for guaranteed veterans                                                               
bonds. This program is designed to provide the lowest possible interest                                                         
rates to our veterans, without any income limitations.                                                                          
                                                                                                                                
The accompanying bill would provide for a statewide vote at the next                                                            
general election on authorizing $600 million in Alaska Housing                                                                  
Finance Corporation (AHFC) bonds for qualifying veterans. This                                                                  
would be the sixth such bond approval; the voters authorized a total of                                                         
$2.7 billion in state-guaranteed AHFC veterans bonds in five elections                                                          
between 1982 and 2002. AHFC has issued nearly all of those bonds,                                                               
requiring new authorization.                                                                                                    
                                                                                                                                
The need for continuing this guaranteed housing loan program for                                                                
veterans may well increase. Congress has recently expanded the                                                                  
current Internal Revenue Service Code definition of "qualified                                                                  
veterans" to include participants who have served in the more recent                                                            
years and who were honorably discharged.                                                                                        
                                                                                                                                
I urge your prompt and favorable action on this bill.                                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor