Alaska sued over Walker's bonding proposal
JUNEAU, Alaska (AP) - The state of Alaska is being sued over Gov. Bill Walker's plan to allow for the issuance of bonds to pay off the state's outstanding oil tax credit obligations.
The lawsuit was filed in state court Monday on behalf of Alaska resident Eric Forrer.
The action comes just days after the bill passed the Legislature; Walker has yet to sign it into law.
The lawsuit challenges the bill's constitutionality.
Similar constitutional questions were raised as lawmakers debated the bill. But Attorney General Jahna (JOHN-uh) Lindemuth said her office reviewed the matter and was confident the proposed bonds would be lawful.
The bill proposes establishing a new state corporation that would be empowered to sell up to $1 billion in bonds to pay off the state's oil tax credit obligations.
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