Legislature(1993 - 1994)
1993-07-21 House JournalFull Journal pdf
1993-07-21 House Journal Page 1975 HB 112 The following letter dated June 25, 1993, was received: 1993-07-21 House Journal Page 1976 HB 112 "Dear Speaker Barnes: Under the authority of Article II, Section 15, of the Alaska Constitution, I have vetoed: HOUSE BILL NO. 112 am S "An Act relating to limited partnerships; and providing for an effective date." I am vetoing the bill, not because I do not approve of the majority of the changes it would have made, but because it contains a minor but potentially harmful deviation (in Section 18) from the model uniform act upon which the bill is substantially based. The language of Section 18 was included in the bill because of a concern that current law might be too restrictive of the circumstances under which a court might order dissolution of a limited partnership. I have been advised by the Department of Law that this new provision is somewhat vague, and presents the potential for unnecessary litigation and possibly other undesired results. Under current law, a court may dissolve a limited partnership only if "it is not reasonably practicable to carry on the business" of the partnership. AS32.11.380. Section 18 of the bill gives the court potentially broader authority to dissolve a limited partnership, in "an equitable way," upon application by any partner. This provision, however, has other possible (and probably unintended) ramifications. For example, the provision could make limited partnerships less attractive as a tax-planning or estate-planning vehicle. The section could also affect the desirability of limited partnerships as investment vehicles. While I approve of the major portions of the bill, unfortunately, I must veto this bill because of the potential undesirable impact of 1993-07-21 House Journal Page 1977 HB 112 Section 18. This Administration is available to work with the Legislature to resolve the problems posed by the language of this section. With best regards. Sincerely, /s/ Walter J. Hickel Governor"