JUNEAU, Alaska (AP) - A bill that would pause the state’s obligation to reimburse school construction debt payments will become law without Gov. Bill Walker’s signature.
In a letter to legislative leaders, Walker said confusion surrounding the House’s failure to adopt the effective date clause and a retroactivity provision in the bill contributed to his decision not to sign the bill. He said that while the bill is legally sound and he supports efforts to reduce the state’s budget, he would have preferred that this was done in a way more understandable for Alaskans.
Walker said the Department of Law advised him that a provision making the bill retroactive to Jan. 1 is still intact when the law takes effect. A Walker spokeswoman said by email that the law takes effect July 23.
SB 64, from the Senate Finance Committee, would pause bond debt reimbursement payments for school construction or major maintenance projects approved by voters between Jan. 1, 2015, and June 30, 2020. The reimbursement rate would be reduced after that.
Legislative attorney Kate Glover, in a memo to Senate Finance co-chair Anna MacKinnon earlier this month, said that if a municipality has a contract in place before the law takes retroactive effect, the change in law may impair that contractual relationship by changing the amount the municipality is responsible for repaying. However, she said state bond debt reimbursement requires an appropriation, and with passage of the bill, municipalities are on notice that the law will soon change.
Holding a bond election does not create a contract, she said; further action, such as selling bonds, would be required before there is a contractual relationship requiring repayment, she said.
Arguments for what might happen if a court found the bill had an impermissible effect are somewhat speculative at this point, Glover said.
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