Alaska Supreme Court rules bonding plan is unconstitutional
Judiciary News
The Alaska Supreme Court on Friday rejected as unconstitutional former Gov. Bill Walker’s proposal to use bonding to pay Alaska’s oil and gas tax credit obligations. The court, in a written ruling, said the plan, which was approved by the Legislature in 2018, is “unconstitutional in its entirety.”
The bill passed by lawmakers approved the creation of a state corporation that would be empowered to sell up to $1 billion in bonds to pay off remaining tax credit obligations. The Legislature previously voted to end the tax credit program geared toward small producers and developers, saying that the program had become unaffordable.
The state constitution limits the power to incur state debt. But a 2018 legal opinion by then-Attorney General Jahna Lindemuth said the proposed bonds would not be considered state debt subject to the constitutional restraints because they would be “subject-to-appropriation” bonds and contingent upon annual legislative appropriation decisions.
Superior Court Judge Jude Pate dismissed the lawsuit brought by resident Eric Forrer, who had challenged the bonding plan. Forrer appealed.
The Alaska Supreme Court, in its decision, said subject-to-appropriation bonds are “contrary to the plain text of the Alaska Constitution and the framers' intent.”
“If the State intends to utilize financing schemes similar to HB 331 in the future, it must first seek approval from the people — if not through a bond referendum then through a constitutional amendment,” the opinion states. HB 331 refers to the bonding bill.
Joe Geldhof, an attorney for Forrer, said “the real winner here" is Alaska's constitution and the citizens of the state who won't incur “needless debt based on a scheme.”
Gov. Mike Dunleavy's office, in a statement, said the departments of Revenue and Law are reviewing the decision to understand its impacts.
Related listings
-
California justices toss death penalty for Scott Peterson
Supreme Court News 08/29/2020Scott Peterson’s conviction for killing his pregnant wife will stand, but the California Supreme Court on Monday overturned his 2005 death sentence in a case that attracted worldwide attention. The justices cited “significant errors&rdquo...
-
Thai court issues new arrest warrant for Red Bull scion
Courts and the Judiciary 08/29/2020A Thai court issued a new arrest warrant on Tuesday for an heir to the Red Bull energy drink fortune, a month after news of the dropping of a long-standing charge against him caused widespread anger.Assistant National Police Chief Lt. Gen. Jaruwat Wa...
-
Colombia warlord asks US court to force deportation to Italy
Supreme Court News 08/22/2020A lawyer for a former Colombian paramilitary leader is asking a U.S. federal court to force Attorney General William Barr to immediately deport the former warlord to Italy after he completed a long drug sentence.The emergency petition was filed Monda...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.