Legislature(2017 - 2018)
2018-11-07 Senate Journal
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Full Journal pdf2018-11-07 Senate Journal Page 3241 SB 97 Message dated September 28 was received stating: Dear President Kelly: Under the authority of article II, section 17, of the Alaska Constitution, I have let the following bill become law without signature: HOUSE CS FOR SENATE BILL NO. 97(FIN) am H "An Act relating to pension obligation bonds." Chapter 109, SLA 2018 [Effective Date: 12/26/18] Although I understand the necessary role of the Legislature in setting limits on the issuance of pension bonds, I am concerned that the approach taken in HCS SB 97(FIN) am H adds unnecessary steps to the bond issuance process and unnecessarily restricts the pension obligation bond limit. Neither of these legislative changes are needed, and they may hinder responsible and timely pension obligation bond issuance in the future. Responsible management of the State’s unfunded pension obligations is necessary to assure the State’s fiscal future and to meet our obligations to system beneficiaries. In 2008, the Legislature, through enactment of statutes allowing the issuance of pension obligation bonds, recognized that pension obligation bonds were one means to address and pay down unfunded pension obligations. Accordingly, the Legislature set up a rigorous structure to assure careful consideration of pension obligation bonds. However, with the changes in this bill, I am concerned that the process will be unduly hampered at no benefit to the state. First, this bill will require the Alaska Housing Finance Corporation (through a subsidiary), the Alaska Pension Obligation Bond Corporation, the State bond committee, and the Alaska Municipal Bond Bank Authority, to submit a pension bond proposal to the Legislative Budget and Audit Committee for a 45-day period of review.