Legislature(2001 - 2002)

2002-08-14 Senate Journal

Full Journal pdf

2002-08-14                     Senate Journal                      Page 3817
                                                                                                    
                                SENATE JOURNAL                                                   
                                                                                                    
                           ALASKA STATE LEGISLATURE                                              
                                                                                                    
                          TWENTY-SECOND LEGISLATURE                                              
                                                                                                    
                    SECOND SESSION, SECOND SPECIAL SESSION                                       
                                                                                                    
                          AND THIRD SPECIAL SESSION                                              
                                                                                                    
Juneau, Alaska                         Wednesday                        August 14, 2002           
                                                                                                    
                               Final Supplement                                                  
                                                                                                    
                                Certification                                                    
                                                                                                    
As Secretary of the Senate, I wish to certify as to the correctness of the                          
journals for the third and fourth legislative days of the Third Special                             
Session of the Twenty-second Legislature.                                                           
                                                                                                    
                           Messages from the House                                               
                                                                                                    
HB 3001                                                                                           
Message dated June 27 was received, stating the House concurred in                                  
the Senate amendment to CS FOR HOUSE BILL NO. 3001(FIN) am                                          
"An Act setting timelines for issuance of final orders by the                                       
Regulatory Commission of Alaska, amending the authority of the                                      
commission to enter compromise settlement orders, extending the                                     
commission's termination date to June 30, 2004, requiring the                                       
commission to hold monthly meetings to allow discussion of the                                      
commission's process and procedures; and directing the establishment                                
of an advisory committee; and providing for an effective date" thus                                 
adopting:                                                                                           
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           3001(JUD) am S "An Act relating to the powers and                                        
           duties of the Regulatory Commission of Alaska,                                           
           establishing a task force to inquire into the operation                                  
           of the commission, and extending the termination                                         
           date of the commission to June 30, 2003; and                                             
           providing for an effective date." (Title change                                          
           authorized by SCR 301)                                                                   

2002-08-14                     Senate Journal                      Page 3818
                                  Enrollment                                                     
                                                                                                    
SB 2001                                                                                           
HOUSE CS FOR SENATE BILL NO. 2001(FIN) "An Act changing                                             
the name of the Alaska Pioneers' Home to the Alaska Pioneers' and                                   
Veterans' Home and of the Alaska Pioneers' Homes Advisory Board to                                  
the Alaska Pioneers' and Veterans' Home Advisory Board; relating to                                 
housing and services for veterans; relating to the advisory board for                               
the home; making other amendments to the statutes relating to the                                   
home; and providing for an effective date" was enrolled, signed by the                              
President and Secretary, Speaker and Chief Clerk and the engrossed                                  
and enrolled copies transmitted to the Office of the Governor at 3:28                               
p.m., June 27, 2002.                                                                                
                                                                                                    
SB 2006                                                                                           
HOUSE CS FOR CS FOR SENATE BILL NO. 2006(FIN) am H "An                                              
Act making and amending appropriations and reappropriations;                                        
making appropriations under art. IX, sec. 17(c), Constitution of the                                
State of Alaska, from the constitutional budget reserve fund; and                                   
providing for an effective date" was enrolled, signed by the President                              
and Secretary, Speaker and Chief Clerk and the engrossed and                                        
enrolled copies transmitted to the Office of the Governor at 3:28 p.m.,                             
June 27, 2002.                                                                                      
                                                                                                    
Memorandum from Division of Legal and Research Services,                                            
Legislative Affairs Agency, dated June 4 was received, reporting the                                
following manifest errors in HOUSE CS FOR CS FOR SENATE                                             
BILL NO. 2006(FIN) am H, which have been corrected in enrolling:                                    
                                                                                                    
Page 101, lines 6-9:                                                                                
 Delete "[NEEDS FOR LONG TERM COMMUNITY AND                                                         
HOME BASED CARE] Planning, Design, and Hazardous Material                                       
Remediation"                                                                                    
 Insert "Planning, Design, and Hazardous Material                                               
Remediation [NEEDS FOR LONG TERM COMMUNITY AND                                                  
HOME BASED CARE]                                                                                    
                                                                                                    
Page 141, line 5:                                                                                   
 Delete "83"                                                                                        
 Insert "83(a)"                                                                                     
                                                                                                    

2002-08-14                     Senate Journal                      Page 3819
Page 141, line 8:                                                                                   
 delete "17(b),"                                                                                    
                                                                                                    
Page 141, line 22, following "84,"                                                                  
 Insert "87,"                                                                                       
                                                                                                    
SCR 301                                                                                           
SENATE CONCURRENT RESOLUTION NO. 301 Suspending                                                     
Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of the Alaska State                                
Legislature, concerning House Bill No. 3001, relating to the                                        
Regulatory Commission of Alaska, was enrolled, signed by the                                        
President and Secretary, Speaker and Chief Clerk and the engrossed                                  
and enrolled copies transmitted to the Office of the Governor at 1:35                               
p.m., July 12, 2002.                                                                                
                                                                                                    
                                                                                                    
                          Engrossment and Enrollment                                             
                                                                                                    
SR 301                                                                                            
SENATE RESOLUTION NO. 301 Relating to the Pledge of                                                 
Allegiance, was engrossed and enrolled, signed by the President and                                 
Secretary and the engrossed and enrolled copies transmitted to the                                  
Office of the Governor at 1:27 p.m., July 10, 2002.                                                 
                                                                                                    
                          Messages from the Governor                                             
                                                                                                    
HB 499                                                                                            
Message dated and received June 27, stating:                                                        
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority vested in me by art. II, sec. 15, of the Alaska                                 
Constitution, I have vetoed the following bill:                                                     
                                                                                                    
      CS FOR HOUSE BILL NO. 499(JUD) "An Act declaring                                              
      legislative intent to reject the continuity of enterprise                                     
      exception to the doctrine of successor liability adopted in                                   
      Savage Arms, Inc. v. Western Auto Supply, 18 P.3d 49                                          
      (Alaska 2001) as it relates to products liability; providing that                             
      a successor corporation or other business entity that acquires                                
      assets of a predecessor corporation or other business entity is                               

2002-08-14                     Senate Journal                      Page 3820
      subject to liability for harm to persons or property caused by                                
      a defective product sold or otherwise distributed                                             
      commercially by the predecessor only if the acquisition is                                    
      accompanied by an agreement for the successor to assume the                                   
      liability, results from a fraudulent conveyance to escape                                     
      liability for the debts or liabilities of the predecessor,                                    
      constitutes a consolidation or merger with the predecessor, or                                
      results in the successor's becoming a continuation of the                                     
      predecessor; defining 'business entity' that acquires assets to                               
      include a sole proprietorship; and applying this Act to the                                   
      sale, lease, exchange, or other disposition of assets by a                                    
      corporation, a limited liability company, a partnership, a                                    
      limited liability partnership, a limited partnership, a sole                                  
      proprietorship, or other business entity that occurs before, on,                              
      or after the effective date of this Act."                                                     
                                                                                                    
This legislation takes the unusual and unwise approach of being                                     
retroactive, a tactic the Legislature rarely employs. In passing the Tort                           
Reform act of 1997, for example, it was clear the changes in that bill                              
would be applied prospectively and not affect cases already in process.                             
Through its retrospective application, this bill is designed to                                     
inappropriately affect the outcome of pending litigation in the Savage                              
Arms case which the Alaska Supreme Court ruled on unanimously and                                   
remanded for further factual development of the record.                                             
                                                                                                    
The Legislature's decision to codify the strict Products Liability                                  
Restatement in Alaska law and reject the Alaska Supreme Court's                                     
decision to apply a broader interpretation of product liability is based                            
on no evidence that the stricter standard hurts business. Rather, the bill                          
is designed to simply protect one company fighting one serious                                      
liability case. The potential outcome of this poor legislative choice,                              
however, is to deny Alaska families the opportunity to pursue                                       
legitimate claims against product manufacturers who offer defective                                 
goods that cause serious injury.                                                                    
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    

2002-08-14                     Senate Journal                      Page 3821
HB 405                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           SENATE CS FOR HOUSE BILL NO. 405(JUD)                                                    
           "An Act relating to the prosecution of criminal                                          
           offenses committed on or against aircraft owned or                                       
           operated by the state or ferries and other watercraft                                    
           owned or operated by the state; and providing for an                                     
           effective date."                                                                         
                                                                                                    
                             Chapter 87, SLA 2002                                                  
                           Effective Date: 6/28/02                                                 
                                                                                                    
HB 281                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           CS FOR HOUSE BILL NO. 281(JUD) "An Act                                                   
           relating to civil liability for providing alcoholic                                      
           beverages to a person under 21 years of age; and                                         
           providing for an effective date."                                                        
                                                                                                    
                             Chapter 88, SLA 2002                                                  
                            Effective Date: 7/1/02                                                 
                                                                                                    
HB 305                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           305(RLS) "An Act prohibiting certain state                                               
           employment, a student loan, or a permanent fund                                          
           dividend for a person who fails to register for the                                      
           military selective service; and providing for an                                         
           effective date."                                                                         
                                                                                                    
                             Chapter 89, SLA 2002                                                  
                         Effective Date: See Chapter                                               

2002-08-14                     Senate Journal                      Page 3822
HB 330                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           CONFERENCE CS FOR HOUSE BILL NO. 330                                                     
           "An Act relating to brewpub licenses and to                                              
           providing alcoholic beverages to a person under 21                                       
           years of age."                                                                           
                                                                                                    
                             Chapter 90, SLA 2002                                                  
                           Effective Date: 9/25/02                                                 
                                                                                                    
HB 332                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           332(FIN) "An Act extending the termination date of                                       
           the Council on Domestic Violence and Sexual                                              
           Assault; relating to the council's duties; placing the                                   
           executive director and staff of the council in the                                       
            exempt service; and providing for an effective date."                                  
                                                                                                    
                             Chapter 91, SLA 2002                                                  
                           Effective Date: 6/28/02                                                 
                                                                                                    
HB 350                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           350(JUD) "An Act relating to murder, conspiracy,                                         
           criminal mischief, and terroristic threatening; and                                      
           providing for an effective date."                                                        
                                                                                                    
                             Chapter 92, SLA 2002                                                  
                           Effective Date: 6/28/02                                                 

2002-08-14                     Senate Journal                      Page 3823
HB 381                                                                                            
Message dated June 27 and received June 28, stating the Governor                                    
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
               HOUSE BILL NO. 381 am S "An Act relating to the                                     
             crime of failure to stop at the direction of a peace                                  
           officer; and providing for an effective date."                                           
                                                                                                    
                             Chapter 93, SLA 2002                                                  
                           Effective Date: 6/28/02                                                 
                                                                                                    
HB 403                                                                                            
Message dated and received June 28, stating:                                                        
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
On this date I have signed with line item vetoes the following bill                                 
passed by the second session of the Twenty-second Alaska State                                      
Legislature and am transmitting the engrossed and enrolled copies to                                
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CONFERENCE CS FOR HOUSE BILL NO. 403                                                     
           "An Act making appropriations for the operating and                                      
           loan program expenses of state government, for                                           
           certain programs, and to capitalize funds; and                                           
           providing for an effective date."                                                        
                                                                                                    
                             Chapter 94, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
The FY2003 budget I introduced last December would have held the                                    
line on state services by funding non-discretionary cost increases such                             
as debt service and operations for newly constructed facilities,                                    
contractual obligations, and replacement of federal or other fund                                   
sources no longer available to pay for basic programs. I proposed                                   
increasing resources to meet certain goals which I believe Alaskans                                 
share: help schools implement our new quality education standards,                                  
continue to revitalize the university, improve public safety especially                             
for child protection, address homeland security, tackle the huge burden                             

2002-08-14                     Senate Journal                      Page 3824
and cost created by alcohol abuse, and create jobs for Alaskans with                                
strategic investments for economic development.                                                     
                                                                                                    
The legislature's final budget for FY2003 falls far short of these goals.                           
While the legislature did increase funding for K-12 and the university,                             
the amounts were significantly less than I proposed. The university                                 
increase did not even keep pace with non-discretionary cost increases,                              
let alone take the next steps forward. Public safety levels will actually                           
decline, again because non-discretionary increases were not fully                                   
funded. Child protection got no additional resources despite                                        
compelling justification for additional troopers for child abuse                                    
investigations and expansion of community programs to ensure that all                               
reports of harm are pursued. As a result of legislative cuts to public                              
safety and the failure to create an Office of Homeland Security or                                  
adopt most of the recommendations of my Disaster Policy Cabinet,                                    
Alaskans are less safe today than on September 10, before the                                       
terrorism attack on our nation. Gen. Phil Oates, chairman of the                                    
Disaster Policy Cabinet, made this testimony to the legislature.                                    
Effective alcohol treatment programs were spared the initial                                        
devastating cuts when the alcohol tax was increased but they were not                               
expanded despite the obvious financial advantage of reducing future                                 
costs such as corrections. And important job-creating programs from                                 
fisheries management to permitting to international trade were cut                                  
back.                                                                                               
                                                                                                    
Over and over, the majority justified their cuts to basic services -                                
including road and airport maintenance, parks and public safety and                                 
the like - by saying there wasn't enough money to hold the line on                                  
these services. But if a lack of money were a reason, why did the                                   
appropriations in some areas of the budget exceed next year's needs?                                
                                                                                                    
Between the operating and capital budgets, the legislature deposited                                
$14 million more into the debt retirement fund than is needed for next                              
year's debt payments. There is no legitimate financial reason for the                               
over-appropriation to this account. Furthermore, last minute                                        
unannounced manipulation of dates by applying most of this                                          
appropriation to the FY2002 budget raises serious questions of                                      
appropriate accounting procedures and attempts to trick the public on                               
spending levels. The effect of this is to draw more from the                                        
Constitutional Budget Reserve than necessary this year. Therefore, I                                

2002-08-14                     Senate Journal                      Page 3825
vetoed two appropriations in the operating budget which were part of                                
this excessive appropriation: $1,061,400 from the Tobacco Education                                 
and Cessation Fund (page 72, lines 10-11); and the balance of the                                   
International Trade and Business Endowment which is $4,417,500                                      
(page 72, lines 17-19). I also vetoed the third element of this over-                               
appropriation that is in the capital budget.                                                        
                                                                                                    
Last year the legislature passed a law creating the Tobacco Education                               
and Cessation Fund directing 20% of the annual tobacco settlement                                   
payments into the fund. Last year's budget left over $2 million in the                              
fund despite the great need for an aggressive anti-smoking campaign,                                
particularly with teenagers. I proposed giving a strong shot in the arm                             
to the anti-smoking effort by adding that unused FY2002 amount to                                   
next year's full 20%. Instead, the majority used over $1 million of                                 
tobacco settlement funds to over-stock the debt retirement fund.                                    
                                                                                                    
The International Trade and Business Endowment was established in                                   
statute for the express purpose of providing interest earnings to                                   
support economic development opportunities for the sale of Alaska                                   
goods and services abroad. Since 1999, the endowment has provided                                   
between 10% and 25% of the annual budget for the state's trade                                      
activities which have produced many examples of increased business                                  
for Alaska companies. Until this year, it has not been touched for                                  
anything but its statutorily intended purpose. Ironically, no bills were                            
introduced to repeal or modify the statute creating the endowment. It                               
makes no sense to eliminate the trade endowment simply to sock                                      
money away in the debt retirement fund for the FY2004 budget.                                       
                                                                                                    
Unfortunately, a governor's veto pen cannot correct the serious                                     
problems of legislative under-funding even when other areas such as                                 
debt are over-funded. Numerous mandated services such as formula                                    
programs will require large supplemental appropriations and the                                     
legislature has been clearly informed of these deficiencies. And                                    
despite the repeated pleas of my administration and the public, the                                 
legislature refused to plug gaping holes in their budgets for                                       
transportation, parks, public safety and other services. This will force                            
on Alaska's citizens the very cuts we argued against but said would                                 
result from the legislature's actions such as closure of the Steese                                 
Highway, layoff of more than 40 filled road maintenance positions                                   
around the state, and closure of state parks - despite the availability of                          
additional fees to cover parks' costs.                                                              

2002-08-14                     Senate Journal                      Page 3826
Finally, I would note that under the Alaska Supreme Court's decision                                
in Alaska Legislative Council v. Knowles, 21 P.3d 367 (Alaska 2001) a                               
governor may not veto intent or other language even if that language is                             
unconstitutional. Therefore, the fact that these language provisions                                
remain in the bill should not necessarily be construed as agreement                                 
with the content. For example, since the courts have clearly stated that                            
the state cannot deny funding for abortions when pregnancy services                                 
are funded, my administration will disregard that unconstitutional                                  
language even though I cannot veto it.                                                              
                                                                                                    
This year, like many in the recent past, my administration started the                              
session hopeful of finally developing the coming year's budget within                               
the framework of a long-range fiscal plan. And again we were hopeful                                
of working on a budget with the legislature in an open process with                                 
full disclosure of the true financial impacts of providing services. I                              
think the public shared these hopes, but they were not fulfilled. I                                 
believe that Alaskans deserve more than the shortsighted approach                                   
used by recent legislatures to spend billions of public dollars providing                           
services on which Alaskans depend without a long-range fiscal plan.                                 
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
HB 404                                                                                            
Message dated and received June 28, stating:                                                        
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
On this date I have signed the following bill passed by the second                                  
session of the Twenty-second Alaska State Legislature and am                                        
transmitting the engrossed and enrolled copies to the Lieutenant                                    
Governor's Office for permanent filing:                                                             
                                                                                                    
           CONFERENCE CS FOR HOUSE BILL NO. 404                                                     
           "An Act making appropriations for the operating and                                      
           capital expenses of the state's integrated                                               
           comprehensive mental health program; and providing                                       
           for an effective date."                                                                  

2002-08-14                     Senate Journal                      Page 3827
                             Chapter 95, SLA 2002                                                  
                            Effective Date: 7/1/02                                                 
                                                                                                    
The FY2003 budget will continue to provide services to Alaska's                                     
mental health trust beneficiaries. One capital project this year, Crisis                            
Respite Facility Replacement Phase 1, relates to the construction of                                
the new Alaska Psychiatric Institute. Since the new API requires the                                
demolition of the existing facility, it is important we replace the                                 
facility that provides these vital crisis respite services to beneficiaries.                        
                                                                                                    
I have made no changes to the dollar amounts in the comprehensive                                   
mental health budget bill passed by the Legislature. I would note that                              
under the Alaska Supreme Court's decision in Alaska Legislative                                     
Council v. Knowles, 21 P.3d 367 (Alaska 2001) a governor may not                                    
veto intent or other language even if that language is unconstitutional.                            
Therefore, the fact that these language provisions remain in the bill                               
should not necessarily be construed as agreement with the content. For                              
example, since the courts have clearly stated that the state cannot deny                            
funding for abortions when pregnancy services are funded, my                                        
administration will disregard that unconstitutional language even                                   
though I cannot veto it.                                                                            
                                                                                                    
There is a major constitutional issue relating to the language with                                 
which the legislature attempts to limit expenditures for abortions. The                             
executive branch is already under court order in State of Alaska, Dept.                             
of Health & Social Services v. Planned Parenthood of Alaska to                                      
operate the Medicaid program in a constitutional manner by paying for                               
therapeutic or medically necessary abortions. I will abide by the                                   
decision of the court as to whether these abortions must be paid for in                             
FY2003.                                                                                             
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
HB 262                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  

2002-08-14                     Senate Journal                      Page 3828
           SENATE CS FOR HOUSE BILL NO. 262(RLS)                                                    
           "An Act relating to the accounting for and                                               
           appropriations of certain state program receipts; and                                    
           providing for an effective date."                                                        
                                                                                                    
                             Chapter 96, SLA 2002                                                  
                            Effective Date: 7/1/02                                                 
                                                                                                    
HB 276                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           276(RLS) "An Act relating to temporary permits and                                       
           licenses by endorsement issued by the Board of                                           
           Nursing; and relating to the delegation of nursing                                       
           duties."                                                                                 
                                                                                                    
                             Chapter 97, SLA 2002                                                  
                           Effective Date: 9/26/02                                                 
                                                                                                    
HB 349                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           HOUSE BILL NO. 349 "An Act relating to agency                                            
           programs and financial plans."                                                           
                                                                                                    
                             Chapter 98, SLA 2002                                                  
                           Effective Date: 9/26/02                                                 
                                                                                                    
HB 352                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3829
           CS FOR HOUSE BILL NO. 352(HES) am "An Act                                                
           extending the dates for assignment of performance                                        
           designations of public schools and the dates for                                         
           reports and monitoring based on those designations;                                      
           and providing for an effective date."                                                    
                                                                                                    
                             Chapter 99, SLA 2002                                                  
                           Effective Date: 6/29/02                                                 
                                                                                                    
HB 355                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           CS FOR HOUSE BILL NO. 355(CRA) "An Act                                                   
           relating to the taxation of mobile telecommunications                                    
           services by municipalities; and providing for an                                         
           effective date."                                                                         
                                                                                                    
                            Chapter 100, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
HB 362                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CS FOR HOUSE BILL NO. 362(RLS)                                                    
           "An Act extending the termination date of the Board                                      
           of Governors of the Alaska Bar Association."                                             
                                                                                                    
                            Chapter 101, SLA 2002                                                  
                           Effective Date: 9/26/02                                                 
                                                                                                    
HB 389                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3830
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           389(RLS) "An Act changing the date of repeal of a                                        
           provision authorizing an exemption from and deferral                                     
           of municipal property taxes on certain types of                                          
           deteriorated property; and providing for an effective                                    
           date."                                                                                   
                                                                                                    
                            Chapter 102, SLA 2002                                                  
                           Effective Date: 6/29/02                                                 
                                                                                                    
HB 418                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           CS FOR HOUSE BILL NO. 418(L&C) "An Act                                                   
           amending the Alaska Corporations Code as it relates                                      
           to delivery of annual reports, notice of shareholders'                                   
           meetings, proxy statements, and other information                                        
           and items to shareholders, to voting, and to proxies,                                    
           including electronic proxy voting and proxy signing;                                     
           and providing for an effective date."                                                    
                                                                                                    
                            Chapter 103, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
HB 443                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           CS FOR HOUSE BILL NO. 443(L&C) "An Act                                                   
           retroactively extending the application and licensing                                    
           deadlines and amending the effective date of certain                                     
           provisions relating to regulation of persons who                                         
           practice tattooing and permanent cosmetic coloring                                       
           or body piercing; and providing for an effective                                         
           date."                                                                                   
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3831
                            Chapter 104, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
HB 447                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           HOUSE BILL NO. 447 "An Act relating to the                                               
           interest rates that may be charged on loans by the                                       
           Commercial Fishing and Agriculture Bank."                                                
                                                                                                    
                            Chapter 105, SLA 2002                                                  
                           Effective Date: 9/26/02                                                 
                                                                                                    
SB 115                                                                                            
Message dated and received June 28 was read, stating the Governor                                   
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           SENATE BILL NO. 115 "An Act extending the                                                
           termination date of the Board of Storage Tank                                            
           Assistance."                                                                             
                                                                                                    
                            Chapter 106, SLA 2002                                                  
                           Effective Date: 9/26/02                                                 
                                                                                                    
SB 140                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           HOUSE CS FOR CS FOR SENATE BILL NO.                                                      
           140(FIN) "An Act relating to regulation and licensing                                    
           of certain water-power development projects; and                                         
           providing for an effective date."                                                        
                                                                                                    
                            Chapter 107, SLA 2002                                                  
                           Effective Date: 1/31/03                                                 
                                                                                                    

2002-08-14                     Senate Journal                      Page 3832
HB 207                                                                                            
Message dated and received June 28, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           CS FOR HOUSE BILL NO. 207(RLS) "An Act                                                   
           moving election district 24 as described in the                                          
           Constitution of the State of Alaska at statehood from                                    
           the Second Judicial District to the Fourth Judicial                                      
           District and adding the Nabesna area to the Third                                        
           Judicial District and removing it from the Fourth                                        
           Judicial District."                                                                      
                                                                                                    
                            Chapter 108, SLA 2002                                                  
                           Effective Date: 9/26/02                                                 
                                                                                                    
SB 2006                                                                                           
Message dated and received June 28, stating:                                                        
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
On this date I have signed with line item vetoes the following bill                                 
passed by the second special session of the Twenty-second Alaska                                    
State Legislature and am transmitting the engrossed and enrolled                                    
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           HOUSE CS FOR CS FOR SENATE BILL NO.                                                      
           2006(FIN) am H "An Act making and amending                                               
           appropriations and reappropriations; making                                              
           appropriations under art. IX, sec. 17(c), Constitution                                   
           of the State of Alaska, from the constitutional budget                                   
           reserve fund; and providing for an effective date."                                      
                                                                                                    
                            Chapter 1, SSSLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
Throughout the session, there were many claims from members of the                                  
legislative majority that various programs had to be cut, the state could                           
not afford my proposed investments in education and child protection,                               
and certain projects in my capital budget could not be funded because                               

2002-08-14                     Senate Journal                      Page 3833
there was not enough money. From those statements, Alaskans might                                   
have expected a very lean state-funded capital budget. In fact, the                                 
combined costs of this capital budget bill, the two general obligation                              
bond bills, and the debt reimbursement bill result in one of the largest                            
obligations of state funds for capital construction in many years.                                  
                                                                                                    
The irony is that despite this capital "largesse", only a token level of                            
funding was provided for one of the most basic elements of my                                       
proposed infrastructure program: deferred maintenance. Whereas I                                    
proposed issuing $137 million of debt to repair, and in some cases                                  
replace, aging state facilities from Pioneers Homes to prisons, the                                 
legislature provided only $10 million toward a nearly billion dollar                                
problem. The legislature itself recognized the magnitude of deferred                                
maintenance needs facing our state just a few years ago when it                                     
appointed a task force to focus on this problem.                                                    
                                                                                                    
In this capital budget bill alone, legislators added some $23 million                               
dollars for projects in their districts. Alaskans will undoubtedly                                  
disagree about the necessity of many of these legislative capital budget                            
add-ons, especially at a time when the legislature claimed funds were                               
so scarce that they had to cut public safety, roads and state parks.                                
Nevertheless, many of these add-ons have worthwhile purposes such                                   
as school repair, programs for seniors and children, and local road                                 
improvements. A few are for projects that most Alaskans would agree                                 
are state responsibilities. But the level is much higher than in recent                             
years and that flies in the face of fiscal restraint and legislative claims                         
of insufficient funds for basic services.                                                           
                                                                                                    
I believe most Alaskans would agree that some of these projects are                                 
unwarranted under present circumstances. I have vetoed them for the                                 
reasons outlined below.                                                                             
                                                                                                    
The first three vetoes total $220,000 which is nearly the amount the                                
legislature could have used to restore winter maintenance on the                                    
Steese Highway. While recognizing the abundance of mosquitoes in                                    
Alaska, asking the state to pay for "mosquito magnets" cannot be                                    
justified. That's why I have vetoed the $20,000 grant to Larsen Bay to                              
purchase them (page 6, line 32). Nor does the state have an obligation                              
to provide $150,000 in operating funds for the private non-profit                                   
Alaska Aviation Heritage Museum (page 20, line 9), especially when                                  

2002-08-14                     Senate Journal                      Page 3834
the group has claimed for years that it could be self-supporting and we                             
don't even have enough funds to operate all our state-owned parks.                                  
The production of another video on how to trap wolves is unnecessary                                
because an adequate video is available to the public through the                                    
Alaska Department of Fish and Game. So I have vetoed $50,000 to the                                 
Alaska Trappers Association to produce another video (page 20, line                                 
26).                                                                                                
                                                                                                    
Several larger appropriations for things that are not typically state                               
responsibilities surfaced very late in the legislative process and                                  
received virtually no public discussion. The legislature added                                      
$100,000 to study the feasibility of constructing a new World Trade                                 
Center office building in Anchorage (page 99, line 8). I vetoed it                                  
because there is no evidence that this building is needed by state                                  
agencies or that the private sector is unable to provide adequate                                   
commercial space in Anchorage.                                                                      
                                                                                                    
I vetoed a grant for $500,000 directed to the Alaska Geospacial                                     
Information Coalition (page 138, line 22) which includes a private                                  
sector mapping company. This constitutes a sole-source grant without                                
competitive public bid. Further, questions have been raised regarding                               
the amount of information generated with this grant that will be                                    
available in the public domain. This grant would just be the first                                  
installment of a multi-year multi-million dollar state commitment. It is                            
imperative that geomapping be pursued in strict compliance with state                               
procurement rules and that we know in advance precisely how the                                     
public needs and interests will be met. There are excellent reasons to                              
pursue private-public partnerships for detailed mapping of the state. I                             
will direct state agencies to develop a plan outlining an appropriate                               
process for moving the state forward to determine how the public and                                
private sectors can work together to achieve the laudable goals of                                  
improved, widely accessible mapping data.                                                           
                                                                                                    
I vetoed another late-breaking appropriation which was a $1 million                                 
no-interest loan to the community of Delta Junction for payment of its                              
settlement agreement in litigation over the unsuccessful private prison                             
proposal there (page 121, line 26). The loan would be converted to a                                
grant if the community joined a borough. The state was not a party to                               
this litigation and there is no public purpose for state expenditures in                            
legal settlements in which the state has no interest. The state should                              

2002-08-14                     Senate Journal                      Page 3835
not be viewed as the deep pocket by private parties dealing with local                              
governments.                                                                                        
                                                                                                    
I have vetoed a grant to the Matanuska Electric Association (MEA) for                               
$10 million (page 131, lines 13 and 24) and reduced another MEA                                     
grant (page 131, lines 13 and 22) from $6 million down to the                                       
$500,000 amount which was in HB 175, a package of Railbelt Energy                                   
Fund projects. Unlike other projects funded in the capital budget from                              
the Railbelt Energy Fund, the $10 million item appeared only at the                                 
last minute and no project justification or back-up was provided. The                               
increase from a $500,000 to a $6 million project was also made at the                               
last minute with no justification or back-up.                                                       
                                                                                                    
As detailed in my operating budget transmittal, the legislature                                     
appropriated more money to the debt retirement fund than will be                                    
needed next year, even as it claimed there was not enough money to                                  
maintain basic services. This was partly due to a particularly                                      
disingenuous accounting method of setting the date for the $20 million                              
general fund appropriation so it takes effect in the current fiscal year                            
rather than FY2003. This is clearly a maneuver to mislead the public                                
concerning legislative spending levels. I am reducing the                                           
"supplemental" appropriation in this bill (page 130, line 18) by                                    
$8,468,300 so the amount funded for debt service in the two bills                                   
equals the anticipated need for next year.                                                          
                                                                                                    
Despite written notification from both the Legislative Finance                                      
Division and my Office of Management and Budget, the legislature                                    
over-appropriated the maximum allowable dividend from the Alaska                                    
Industrial Development and Export Authority (AIDEA) by $1 million.                                  
I do not think it is appropriate to fix this error by reducing the long-                            
standing community capital matching grants program or eliminating                                   
state funding for subsistence activities in the Department of Fish and                              
Game. (I do think it is imperative that the legislature switch                                      
subsistence funding back to general funds next year.) Therefore, I took                             
the only viable alternative which is to correct the over-appropriation                              
by reducing the amount of AIDEA dividends used for Federal Aid                                      
Highway State Match (page 49, lines 11 and 19-20). If more matching                                 
funds are needed once final congressional action is known, the next                                 
legislature can correct this year's error with a supplemental                                       
appropriation.                                                                                      

2002-08-14                     Senate Journal                      Page 3836
The legislature appropriated money to itself for two studies which                                  
could have been partially funded with federal funds if the                                          
appropriations had been made to the Department of Health and Social                                 
Services (HSS). The first appropriation for one study is to Legislative                             
Budget and Audit to develop a state health facilities plan (page 100,                               
line 6) with the second appropriation of federal funds for that study                               
going to HSS (page 100, line 31). Although the study appropriations                                 
call for about half state and half federal funds, the federal funds will                            
not be available and the $31,300 in reappropriated state funds will not                             
be adequate to do the work so I am vetoing both parts. The other is a                               
study of welfare and Medicaid recipients funded with $200,000 in                                    
general funds (page 108, line 16) even though HSS officials told                                    
legislators Medicaid could pay half of that if the appropriation went to                            
HSS instead. I have also vetoed these two appropriations because                                    
studies of this kind are more appropriately conducted by the executive                              
branch and, in the case of the latter study, because of the bad                                     
precedent of having funds go to the appropriate executive branch                                    
agency via a contract with a legislative body.                                                      
                                                                                                    
As I noted in my operating budget transmittal letter, my administration                             
started the session hopeful of developing the coming year's budget                                  
within the framework of a long-range fiscal plan. As in past years, we                              
were also hopeful of working on the budget with the legislature in an                               
open process with full disclosure of the true financial impacts of                                  
providing services. I think the public shared these hopes, but they were                            
not fulfilled in this session. Alaskans deserve more than the                                       
shortsighted approach used by recent legislatures. I hope future                                    
legislatures will recognize that it is not acceptable to spend billions of                          
public dollars providing services on which Alaskans depend without                                  
the context of a long-range fiscal plan.                                                            
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3837
HB 504                                                                                            
Message dated July 1 and received July 3, stating:                                                  
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority of art. II, sec. 15, of the Alaska Constitution, I                              
have vetoed the following bill:                                                                     
                                                                                                    
                  CS FOR HOUSE BILL NO. 504(FIN) am "An Act                                        
                relating to the wages of people working in the                                     
           fisheries business."                                                                     
                                                                                                    
This bill would have negated the minimum wage increase for workers                                  
in remote seafood processing plants by allowing employers to charge                                 
them for room and board. In fact, some workers could have been                                      
forced to turn up to a fifth of their wages for employer-provided room                              
and board.                                                                                          
                                                                                                    
The practice of charging workers for room and board has been banned                                 
since Statehood, more than 40 years ago. It applies to no other industry                            
in Alaska and permitting it for the seafood industry would open the                                 
door to a terrible precedent for many Alaskans who work at remote                                   
locations.                                                                                          
                                                                                                    
The State of Alaska has taken or supported numerous policies to assist                              
Alaska's seafood industry. Through the North Pacific Fishery                                        
Management Council, we developed a rationalization plan for the                                     
Bering Sea crab fishery that assures processors, fishermen and                                      
communities all benefit from a quota system. The administration                                     
opposed the federal court injunction on ground fishing in the Steller                               
sea lion case. And I've worked for additional state funds for the Alaska                            
Seafood Marketing Institute, led trade missions to Asia and Europe                                  
promoting Alaska seafood and continued to advocate successfully for                                 
annual USDA purchases of canned salmon.                                                             
                                                                                                    
Thousands of hard-working Alaska families rely on jobs in the seafood                               
industry, which contribute to the economy of our state and adds value                               
to our natural resources. More than 700 western Alaska residents                                    
worked for seafood processors in 2000, and the percentage of                                        
Alaskans working in this industry grew from 24 to 30 percent between                                

2002-08-14                     Senate Journal                      Page 3838
1994 and 2000. They rightfully should benefit from an increase in the                               
minimum wage. For these reasons, I have vetoed House Bill 504.                                      
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
HB 53                                                                                             
Message dated July 1 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
                    CS FOR HOUSE BILL NO. 53(STA) "An Act                                          
                establishing the Alaska Seismic Hazards Safety                                     
           Commission."                                                                             
                                                                                                    
                            Chapter 109, SLA 2002                                                  
                           Effective Date: 9/29/02                                                 
                                                                                                    
HB 56                                                                                             
Message dated July 1 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
                    CS FOR HOUSE BILL NO. 56(FIN) "An Act                                          
               relating to minimum wages; and providing for an                                     
           effective date."                                                                         
                                                                                                    
                            Chapter 110, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
HB 135                                                                                            
Message dated July 1 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3839
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           135(JUD) "An Act relating to municipal fees for                                          
           certain police protection services and to a tenant's                                     
           activities that result in the imposition of those fees."                                 
                                                                                                    
                            Chapter 111, SLA 2002                                                  
                           Effective Date: 9/29/02                                                 
                                                                                                    
HB 300                                                                                            
Message dated July 1 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR HOUSE BILL NO. 300(STA)                                                    
           "An Act relating to the procurement of certain travel                                    
           services."                                                                               
                                                                                                    
                            Chapter 112, SLA 2002                                                  
                           Effective Date: 9/29/02                                                 
                                                                                                    
HB 348                                                                                            
Message dated July 1 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           HOUSE BILL NO. 348 "An Act relating to                                                   
           violations of domestic violence protective orders."                                      
                                                                                                    
                            Chapter 113, SLA 2002                                                  
                           Effective Date: 9/29/02                                                 
                                                                                                    
HB 525                                                                                            
Message dated July 2 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           525(FIN) am S "An Act providing for and relating to                                      
           the issuance of state guaranteed transportation                                          
           revenue anticipation bonds in a principal amount of                                      

2002-08-14                     Senate Journal                      Page 3840
           not more than $102,805,000 for the purpose of                                            
           paying the cost of transportation projects that qualify                                  
           for federal highway aid and the allocation of those                                      
           bond proceeds; relating to the issuance of general                                       
           obligation bonds in a principal amount of not more                                       
           than $123,914,500 for the purpose of paying the cost                                     
           of state transportation projects; and providing for an                                   
           effective date."                                                                         
                                                                                                    
                            Chapter 114, SLA 2002                                                  
                            Effective Date: 7/3/02                                                 
                                                                                                    
HB 528                                                                                            
Message dated July 2 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           528(FIN) am S "An Act relating to programs of state                                      
           reimbursement for debt payments for certain capital                                      
           projects; and providing for an effective date."                                          
                                                                                                    
                            Chapter 115, SLA 2002                                                  
                            Effective Date: 7/3/02                                                 
                                                                                                    
HB 225                                                                                            
Message dated and received July 3, stating the Governor signed the                                  
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           225(RLS) "An Act relating to state taxation of                                           
           alcoholic beverages; and increasing the alcoholic                                        
           beverage state tax rates."                                                               
                                                                                                    
                            Chapter 116, SLA 2002                                                  
                           Effective Date: 10/1/02                                                 
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3841
HB 2002                                                                                           
Message dated July 2 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           2002(RLS) am S "An Act relating to the issuance of                                       
           general obligation bonds for the purpose of paying                                       
           the cost of design, construction, and major                                              
           maintenance of educational and museum facilities;                                        
           and providing for an effective date."                                                    
                                                                                                    
                            Chapter 2, SSSLA 2002                                                  
                            Effective Date: 7/3/02                                                 
                                                                                                    
HB 2003                                                                                           
Message dated July 2 and received July 3, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           2003(RLS) "An Act relating to construction,                                              
           rehabilitation, and improvement of schools and                                           
           education-related facilities; relating to municipal                                      
           bond reimbursement for school construction; and                                          
           providing for an effective date."                                                        
                                                                                                    
                            Chapter 3, SSSLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
SB 2001                                                                                           
Message dated and received July 3, stating the Governor signed the                                  
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           HOUSE CS FOR SENATE BILL NO. 2001(FIN)                                                   
           "An Act changing the name of the Alaska Pioneers'                                        
           Home to the Alaska Pioneers' and Veterans' Home                                          
           and of the Alaska Pioneers' Homes Advisory Board                                         
           to the Alaska Pioneers' and Veterans' Home Advisory                                      
           Board; relating to housing and services for veterans;                                    
           relating to the advisory board for the home; making                                      

2002-08-14                     Senate Journal                      Page 3842
               other amendments to the statutes relating to the                                    
           home; and providing for an effective date."                                              
                                                                                                    
                            Chapter 4, SSSLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
HB 474                                                                                            
Message dated and received July 5, stating:                                                         
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority vested in me by art. II, sec. 15, of the Alaska                                 
Constitution, I have vetoed the following bill:                                                     
                                                                                                    
           CS FOR HOUSE BILL NO. 474(CRA) am "An Act                                                
           relating to public rights-of-way and easements for                                       
           surface transportation affecting the Anchorage                                           
           Coastal Wildlife Refuge."                                                                
                                                                                                    
Alaska's unmatched beauty is a chief reason why Alaska's visitor                                    
industry attracts nearly a million travelers to our state each year and a                           
primary reason why Alaskans love this spectacular land we call home.                                
In Anchorage, much of this magnificent scenery and the wildlife                                     
which reside in it can be viewed up close and personal along the                                    
Coastal Trail, which currently runs from downtown Anchorage to                                      
Kincaid Park. Thanks to additional trail investments in recent years,                               
Alaskans and travelers hiking, biking and skiing can also enjoy scenic                              
visas on trails for most of the distance between Potter Marsh and                                   
Girdwood. A broad majority of Anchorage residents want the Coastal                                  
Trail extended between Kincaid and Potter Marsh, so they may enjoy                                  
an uninterrupted trail system between downtown Anchorage and                                        
Girdwood. Much of this trail already is part of the national trail system                           
and would be a major attraction for Alaska's visitor industry.                                      
                                                                                                    
For years, the State of Alaska has been working successfully with the                               
Municipality of Anchorage to advance this trail extension between                                   
Kincaid and Potter. With this bill, the Legislature - voting largely                                
along party lines - is attempting to insert itself in a process where it                            
doesn't belong and which could jeopardize the timely completion of                                  
the Coastal Trail.                                                                                  
                                                                                                    

2002-08-14                     Senate Journal                      Page 3843
This bill would adversely affect the state's ability to manage the                                  
Anchorage Coastal Wildlife Refuge and could delay on-going public                                   
planning and decision-making processes by imposing strict legislative                               
notice requirements, compliance with which would be required before                                 
any right-of-way could be created in the refuge. In addition, the                                   
legislation has the potential to impair the creation of rights-of-way for                           
utility uses within the refuge, as well as easements for surface                                    
transportation.                                                                                     
                                                                                                    
By statute, the Department of Fish and Game and the Department of                                   
Natural Resources are charged as the stewards of this unique and                                    
important public resource. Our land managers should be guided by                                    
both sound science and public input in weighing the public need to                                  
access the refuge against the habitat needs of the many species of                                  
wildlife inhabiting the refuge. The state and the Municipality of                                   
Anchorage are currently evaluating the transportation and recreational                              
needs of the community and are considering a variety of alternatives to                             
meet those important needs. It is inappropriate for the Legislature to                              
insert itself into this on-going public process.                                                    
                                                                                                    
For these reasons, I have vetoed this bill.                                                         
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
                                                                                                    
HB 455                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 455(CRA) "An Act                                                   
           relating to the assessment of certain agricultural land                                  
           for purposes of municipal taxation; and providing for                                    
           an effective date."                                                                      
                                                                                                    
                            Chapter 117, SLA 2002                                                  
                            Effective Date: 1/1/03                                                 
                                                                                                    

2002-08-14                     Senate Journal                      Page 3844
HB 458                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           HOUSE BILL NO. 458 "An Act relating to periods                                           
           of probation for state employees; and providing for                                      
           an effective date."                                                                      
                                                                                                    
                            Chapter 118, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 462                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 462(RES) "An Act                                                   
           relating to the release of certain confidential records                                  
           and reports concerning fishing, fish buying, or fish                                     
           processing; and providing for an effective date."                                        
                                                                                                    
                            Chapter 119, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 470                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           470(RLS) "An Act relating to public offering                                             
           statements required under the Uniform Common                                             
           Interest Ownership Act; and providing for an                                             
           effective date."                                                                         
                                                                                                    
                            Chapter 120, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    

2002-08-14                     Senate Journal                      Page 3845
HB 471                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 471(CRA) "An Act                                                   
           increasing the maximum amount of loans from the                                          
           bulk fuel revolving loan fund operated by the Alaska                                     
           Energy Authority; relating to the definitions of 'net                                    
           income' and 'unrestricted net income' for purposes of                                    
           determining the amount of the Alaska Industrial                                          
           Development and Export Authority's dividend to the                                       
           state; relating to communities within which rural                                        
           development loans may be made by the Alaska                                              
           Industrial Development and Export Authority; and                                         
           providing for an effective date."                                                        
                                                                                                    
                            Chapter 121, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 501                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           HOUSE BILL NO. 501 "An Act relating to the use of                                        
           unclaimed property to pay court-ordered restitution;                                     
           and providing for an effective date."                                                    
                                                                                                    
                            Chapter 122, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 508                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 508(RLS) "An Act                                                   
           relating to results of testing for paralytic shellfish                                   
           poisoning and to participation of the Department of                                      

2002-08-14                     Senate Journal                      Page 3846
           Environmental Conservation in the development of                                         
           operating plans of qualified regional dive fishery                                       
           development associations."                                                               
                                                                                                    
                            Chapter 123, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
HB 515                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           515(FIN) "An Act relating to missions and measures                                       
           to be applied to certain expenditures by the executive                                   
           branch of state government and the University of                                         
           Alaska and by the judicial branch of state                                               
           government from the state operating budget for the                                       
           fiscal year ending June 30, 2003; and providing for                                      
           an effective date."                                                                      
                                                                                                    
                            Chapter 124, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 517                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 517(STA) "An Act                                                   
           relating to the disposition of obsolete or surplus state                                 
           property."                                                                               
                                                                                                    
                            Chapter 125, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
HB 521                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              

2002-08-14                     Senate Journal                      Page 3847
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           521(FIN) "An Act relating to municipal improvement                                       
           areas."                                                                                  
                                                                                                    
                            Chapter 126, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
HB 526                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           HOUSE BILL NO. 526 "An Act relating to the                                               
           deadline for filing financial disclosure statements for                                  
           public members and public member nominees of the                                         
           Select Committee on Legislative Ethics."                                                 
                                                                                                    
                            Chapter 127, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
HB 393                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           393(L&C) "An Act relating to unfair and deceptive                                        
           trade practices and to the sale of business                                              
           opportunities; amending Rules 4 and 73, Alaska                                           
           Rules of Civil Procedure; and providing for an                                           
           effective date."                                                                         
                                                                                                    
                            Chapter 128, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
SB 181                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    

2002-08-14                     Senate Journal                      Page 3848
           HOUSE CS FOR CS FOR SENATE BILL NO.                                                      
           181(FIN) "An Act relating to and increasing the                                          
           interest rate on that portion of a loan for a single                                     
           family house or owner-occupied duplex in a small                                         
           community that exceeds $250,000; relating to the                                         
           Alaska Housing Finance Corporation's rural                                               
           assistance loan program and to loans for teacher                                         
           housing in small communities."                                                           
                                                                                                    
                            Chapter 129, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
SB 345                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CONFERENCE CS FOR SENATE BILL NO. 345                                                    
           "An Act relating to correspondence study programs;                                       
           relating to funding the Alaska Challenge Youth                                           
           Academy program; relating to medical assistance for                                      
           rehabilitative services for certain children with                                        
           disabilities; relating to agreements to pay medical                                      
           assistance for covered services paid for or furnished                                    
           to eligible children with disabilities by a school                                       
           district; and providing for an effective date."                                          
                                                                                                    
                            Chapter 130, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
SB 339                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE BILL NO. 339 "An Act increasing fines for                                         
           certain criminal offenses."                                                              
                                                                                                    
                            Chapter 131, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 

2002-08-14                     Senate Journal                      Page 3849
SB 279                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR SENATE BILL NO. 279(FIN) "An Act                                                  
           authorizing the commissioner of fish and game to                                         
           issue complimentary sport fishing licenses and tags to                                   
           September 11 emergency responders and their                                              
           spouses; and providing for an effective date."                                           
                                                                                                    
                            Chapter 132, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
SB 220                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR SENATE BILL NO. 220(L&C) "An Act                                                  
           relating to the scope of practice authorized under a                                     
           license to practice hairdressing."                                                       
                                                                                                    
                            Chapter 133, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
HB 286                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           286(RES) "An Act allowing a person to hold two                                           
           commercial fishing entry permits for a salmon fishery                                    
           for the purpose of consolidating the fishing fleet for a                                 
           salmon fishery; relating to salmon fishery                                               
           associations and to salmon fishery assessments; and                                      
           providing for an effective date."                                                        
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3850
                            Chapter 134, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 288                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 288(FIN) am "An Act                                                
           relating to commercial fishing limited entry permit                                      
           buy-back programs, to a permit buy-back assessment,                                      
           and to voluntary relinquishment of commercial                                            
           fishing permits; and defining 'optimum number.'"                                         
                                                                                                    
                            Chapter 135, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
HB 390                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           SENATE CS FOR HOUSE BILL NO. 390(RLS)                                                    
           "An Act delaying the repeal of the salmon marketing                                      
           tax; expanding the allowable use of that tax for the                                     
           salmon marketing programs of the Alaska Seafood                                          
           Marketing Institute; relating to the Alaska Seafood                                      
           Marketing Institute's salmon marketing committee;                                        
           and providing for an effective date."                                                    
                                                                                                    
                            Chapter 136, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 206                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3851
           CS FOR HOUSE BILL NO. 206(RLS) am S "An Act                                              
           relating to a vessel-based commercial fisheries                                          
           limited entry system for the Bering Sea Korean hair                                      
           crab fishery and for weathervane scallop fisheries, to                                   
           management of offshore fisheries, and to the                                             
           definition of 'person' for purposes of the commercial                                    
           fisheries entry program; and providing for an                                            
           effective date."                                                                         
                                                                                                    
                            Chapter 137, SLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
HB 287                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 287(FIN) "An Act                                                   
           relating to the exemption of commercial fishing entry                                    
           permits from claims of creditors and execution on an                                     
           interest in a limited entry permit; and providing for                                    
           an effective date."                                                                      
                                                                                                    
                            Chapter 138, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
HB 307                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           HOUSE BILL NO. 307 "An Act delaying to June 30,                                          
           2007, the last date by which hydrocarbon exploration                                     
           geophysical work must be performed or drilling of a                                      
           stratigraphic test well or exploratory well must be                                      
           completed in order for a person to qualify for an                                        
           exploration incentive credit."                                                           
                                                                                                    
                            Chapter 139, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 

2002-08-14                     Senate Journal                      Page 3852
HB 397                                                                                            
Message dated July 5 and received July 8, stating:                                                  
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority of art. II, sec. 17, of the Alaska Constitution, I am                           
allowing the following bill passed by the second session of the                                     
Twenty-second Alaska State Legislature to become law without my                                     
signature and am transmitting the engrossed and enrolled copies to the                              
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           397(TRA) "An Act exempting a person driving                                              
           certain motor vehicles, aircraft, or watercraft from                                     
           driver licensing requirements; and providing for an                                      
           effective date."                                                                         
                                                                                                    
                            Chapter 140, SLA 2002                                                  
                           Effective Date: 7/11/02                                                 
                                                                                                    
I am letting this bill become law without signature because it will have                            
no real effect on current behavior and practice regarding operation of                              
off-highway vehicles. The public was largely unaware of the current                                 
law requiring driver's licenses for these vehicles and it rarely, if ever,                          
was enforced. This change will basically match law to practice.                                     
                                                                                                    
In taking this action, however, I hope future legislatures will evaluate                            
whether a policy is needed for operation of off-highway motor                                       
vehicles by younger Alaskans in the interest of public health and                                   
safety.                                                                                             
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3853
HB 160                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
                    CS FOR HOUSE BILL NO. 160(JUD) "An Act                                         
              requiring the reporting of induced terminations of                                   
           pregnancies."                                                                            
                                                                                                    
                            Chapter 141, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
SB 100                                                                                            
Message dated July 5 and received July 8, stating:                                                  
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
On this date I have signed the following bill passed by the second                                  
session of the Twenty-Second Alaska State Legislature and am                                        
transmitting the engrossed and enrolled copies to the Lieutenant                                    
Governor's Office for permanent filing:                                                             
                                                                                                    
                     CS FOR SPONSOR SUBSTITUTE FOR SENATE                                          
               BILL NO. 100(RLS)(title am) "An Act relating to                                     
            regulation and operation of personal motor vehicles."                                  
                                                                                                    
                            Chapter 142, SLA 2002                                                  
                           Effective Date: 10/3/02                                                 
                                                                                                    
I am signing this bill with the understanding that the restrictions it                              
places on the Department of Public Safety's authority to regulate these                             
motorized vehicles are limited strictly to that department. These                                   
restrictions do not apply, in any way, to any other agency with                                     
jurisdiction over vehicular ways and areas, including the Department                                
of Natural Resources and Department of Transportation and Public                                    
Facilities.                                                                                         
                                                                                                    
Municipalities should also be aware of their clear authority to prohibit                            
the use of these electric vehicles based on local needs.                                            
                                                                                                    

2002-08-14                     Senate Journal                      Page 3854
I note the Federal Highway Administration, which prohibits motorized                                
vehicles on federally funded trails and sidewalks, has yet to rule as to                            
the classification of these vehicles. That decision could further inhibit                           
the use of these vehicles on federally funded venues.                                               
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
HB 180                                                                                            
Message dated July 5 and received July 8, stating the Governor signed                               
the following bill and transmitted the engrossed and enrolled copies to                             
the Lieutenant Governor's Office for permanent filing:                                              
                                                                                                    
           CS FOR HOUSE BILL NO. 180(JUD) "An Act                                                   
           relating to persons who provide services related to                                      
           children; establishing a legislative task force on child                                 
           services; and providing for an effective date."                                          
                                                                                                    
                            Chapter 143, SLA 2002                                                  
                            Effective Date: 7/6/02                                                 
                                                                                                    
SB 180                                                                                            
Message dated July 5 and received July 8, stating:                                                  
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority vested in me by art. II, sec. 15, of the Alaska                                 
Constitution, I have vetoed the following bill:                                                     
                                                                                                    
           CS FOR SENATE BILL NO. 180(FIN)(efd fld) "An                                             
           Act implementing pay differentials based on                                              
           geographic areas for certain state employees and for                                     
           members of the Alaska State Defense Force; relating                                      
           to cost-of-living differentials for state aid to                                         
           municipalities."                                                                         
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3855
My Administration and previous Administrations have long advocated                                  
for an adjustment to the salary differentials for non-covered employees                             
that parallels the differentials that apply to employees covered by                                 
collective bargaining. However, this flawed legislation may violate                                 
equal protection provisions of the state and federal constitutions and                              
begs litigation against the state for that reason.                                                  
                                                                                                    
This bill would adopt a two-tiered geographic pay system for                                        
employees not covered by a collective bargaining agreement, treating                                
current and former employees differently than new employees hired                                   
after July 1, 2002.                                                                                 
                                                                                                    
Current and former employees first hired before July 1, 2002, would                                 
remain at the current geographical salary differential permanently                                  
when accepting appointment to a non-covered position. That means                                    
even though this legislation establishes a new salary geographic                                    
differential that's higher in several areas, such as Kodiak, Bethel and                             
Barrow, a former employee who returns to state service in those areas                               
would be paid under the old formula - and less than a new employee                                  
who is hired at the same time, in the same office, under the new                                    
formula.                                                                                            
                                                                                                    
Likewise, in those areas where the existing salary differentials are                                
higher than the proposed differentials in this bill, such as Fairbanks,                             
Kenai, Nome and Dillingham, new employees would receive a lower                                     
salary differential than employees who were first hired before July 1,                              
2002. Even employees who had never worked in an area to which a                                     
geographic differential applied would receive the benefit of the old                                
salary differential if their initial hire date with the state was before July                       
1, 2002.                                                                                            
                                                                                                    
Further, because of the legislation's failed special effective date, those                          
new employees hired between July 1, 2002 and the effective date of                                  
this legislation would be paid the higher salary differential until the                             
legislation's constitutional 90-day effective date, at which time their                             
salaries would be reduced - thus driving home rather forcefully the                                 
effect of two-tiered salary schedules.                                                              
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3856
Earlier versions of the legislation simply froze the salaries of those                              
whose current salaries are above the new differential until such time as                            
the employee's salary, through cost-of-living adjustments and merit                                 
increases, with application of the new differential equaled or exceeded                             
the amount being paid to the employee. This approach would have                                     
accomplished the bill's equitable objectives without creating two on-                               
going salary systems. This would have mirrored the approach taken                                   
with employees under collective bargaining when their geographic pay                                
differentials were adjusted in 1985.                                                                
                                                                                                    
The intent of restructuring our geographic pay differentials is, and                                
should be, to create a balanced, fair system for our employees that can                             
withstand any court challenges. Our 1985 changes to the differential                                
for collective bargaining units succeeded in this effort. It would be                               
prudent and rational to take the same approach for our non-covered                                  
employees rather than this approach which guarantees inequities.                                    
                                                                                                    
For these reasons, I have vetoed the bill.                                                          
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
SB 370                                                                                            
Message dated July 5 and received July 8, stating:                                                  
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority of art. II, sec. 15, of the Alaska Constitution, I                              
have vetoed the following bill:                                                                     
                                                                                                    
                   CS FOR SENATE BILL NO. 370(STA) am H "An                                        
            Act establishing procedures relating to constitutional                                 
           conventions."                                                                            
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3857
This bill would revise the election code to specify the timing of the                               
Lieutenant Governor's call for a constitutional convention, how                                     
delegates are elected, and the place of the convention. The bill delays                             
the call for the convention until after October 1 of the year following                             
the year in which the question of holding a convention is placed on the                             
ballot. The bill provides that election of delegates to the convention                              
shall be nonpartisan, and that one delegate shall be elected from each                              
house district and one from each senate district. The bill also provides                            
that the convention will be held at the University of Alaska, Fairbanks                             
campus.                                                                                             
                                                                                                    
I have considered comments from many Alaskans, including persons                                    
who were delegates to the original constitutional convention. I have                                
carefully considered this bill, and believe it contains certain provisions                          
that are positive, such as providing for nonpartisan election of                                    
delegates to the convention, including delegate candidates under                                    
coverage of the Alaska Public Offices Commission, and holding the                                   
convention in Fairbanks. Other provisions of the bill, however, are a                               
disservice to Alaskans by failing to provide adequate standards for the                             
call of a constitutional convention.                                                                
                                                                                                    
This legislation was introduced near the end of the session and rushed                              
through with minimal public notice and opportunity to comment. Most                                 
Alaskans, including long-time Alaskans who had personal                                             
involvement in the original convention, were not even aware the issue                               
was being considered. Legislation on this important issue should be                                 
subject to more careful consideration and should be closer in spirit to                             
the original call for the constitutional convention of 1955.                                        
                                                                                                    
Therefore, I have decided to veto this bill.                                                        
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3858
HB 296                                                                                            
Message dated July 5 and received July 8, stating:                                                  
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
Under the authority vested in me by art. II, sec. 15, of the Alaska                                 
Constitution, I have vetoed the following bill:                                                     
                                                                                                    
                     SENATE CS FOR CS FOR HOUSE BILL NO.                                           
                   296(JUD) "An Act relating to mergers and                                        
           consolidations of municipalities."                                                       
                                                                                                    
This legislation, which would alter how local option mergers and                                    
consolidations of municipalities may be accomplished, could have an                                 
adverse effect on all future merger and consolidation efforts.                                      
                                                                                                    
Under current law, a simple majority of the electors of the entire area                             
to be consolidated determines whether the consolidation or merger                                   
passes. This voting process has been upheld as constitutional and is in                             
furtherance of art. X, sec. 1, of the Alaska Constitution. See Douglas v.                           
City and Borough of Juneau, 484 P.2d 1040 (Alaska 1971).                                            
                                                                                                    
This bill would require a majority of voters in each of the affected                                
parts of municipalities to be merged or consolidated to vote in favor of                            
the action and does so by creating de facto election districts. For                                 
instance, under this bill all voters in a borough outside city limits                               
become a separate voting district. City dwellers within the borough                                 
may vote only as residents and taxpayers of the city, but are prevented                             
from voting as residents of the borough where they also live and pay                                
taxes. This disenfranchises the city voters by denying them an                                      
appropriate share of the vote in the borough election, and actually                                 
empowers the smaller non-city portion of the borough electorate to                                  
solely decide the outcome of the merger or consolidation vote. The                                  
result is that consolidations and mergers of municipalities become                                  
more difficult, if not impossible, under the local option method. This                              
would be contrary to the Alaska Constitution.                                                       
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3859
The bill also provides that the voting provisions related to mergers and                            
consolidations are intended to be consistent with the voting                                        
requirements for annexation specified in AS 29.06.040(c)(1).                                        
However, there is nothing in AS 29.06.040(c)(1) that provides for the                               
minority vote to supersede the majority vote. In fact, this statute                                 
directly contradicts the provisions of this bill. This would only serve to                          
cause serious legal problems in the administration of the new                                       
provisions in this bill.                                                                            
                                                                                                    
For the reasons stated, I have vetoed this bill.                                                    
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
SB 2009                                                                                           
Message dated and received July 12, stating the Governor signed the                                 
following bill and transmitted the engrossed and enrolled copies to the                             
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           HOUSE CS FOR SENATE BILL NO. 2009(FIN)                                                   
           am H "An Act establishing the Alaska Veterans                                            
           Advisory Council; and providing for an effective                                         
           date."                                                                                   
                                                                                                    
                            Chapter 5, SSSLA 2002                                                  
                            Effective Date: 1/1/03                                                 
                                                                                                    
SR 301                                                                                            
Message dated and received July 17, stating the Governor transmitted                                
the engrossed and enrolled copies of the following resolution to the                                
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
                  SENATE RESOLUTION NO. 301 Relating to the                                        
           Pledge of Allegiance.                                                                    
                                                                                                    
                             Senate Resolve No. 2                                                  
                                                                                                    

2002-08-14                     Senate Journal                      Page 3860
SCR 38                                                                                            
Message dated and received July 17 was read, stating the Governor                                   
transmitted the engrossed and enrolled copies of the following                                      
resolution to the Lieutenant Governor's Office for permanent filing:                                
                                                                                                    
           SENATE CONCURRENT RESOLUTION NO. 38                                                      
           Suspending Rules 24(c), 35, 41(b), and 42(e),                                            
           Uniform Rules of the Alaska State Legislature,                                           
           concerning House Bill No. 389, relating to a                                             
           provision authorizing an exemption from and deferral                                     
           of municipal property taxes on certain types of                                          
           deteriorated property.                                                                   
                                                                                                    
                          Legislative Resolve No. 73                                               
                                                                                                    
SCR 39                                                                                            
Message dated and received July 17, stating the Governor transmitted                                
the engrossed and enrolled copies of the following resolution to the                                
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CONCURRENT RESOLUTION NO. 39                                                      
           Suspending Rules 24(c), 35, 41(b), and 42(e),                                            
           Uniform Rules of the Alaska State Legislature,                                           
           concerning House Bill No. 507, a bill relating to the                                    
           naming of certain state facilities.                                                      
                                                                                                    
                          Legislative Resolve No. 74                                               
                                                                                                    
SCR 40                                                                                            
Message dated and received July 17, stating the Governor transmitted                                
the engrossed and enrolled copies of the following resolution to the                                
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CONCURRENT RESOLUTION NO. 40                                                      
           Suspending Rules 24(c), 35, 41(b), and 42(e),                                            
           Uniform Rules of the Alaska State Legislature,                                           
           concerning House Bill No. 254, relating to the                                           
           teachers', judicial, and public employees' retirement                                    
           systems; and providing for an effective date.                                            
                                                                                                    
                          Legislative Resolve No. 75                                               

2002-08-14                     Senate Journal                      Page 3861
SCR 42                                                                                            
Message dated and received July 17 was read, stating the Governor                                   
transmitted the engrossed and enrolled copies of the following                                      
resolution to the Lieutenant Governor's Office for permanent filing:                                
                                                                                                    
           SENATE CONCURRENT RESOLUTION NO. 42                                                      
           Suspending Rules 24(c), 35, 41(b), and 42(e),                                            
           Uniform Rules of the Alaska State Legislature,                                           
            concerning House Bill No. 246, relating to insurance.                                  
                                                                                                    
                          Legislative Resolve No. 76                                               
                                                                                                    
SCR 43                                                                                            
Message dated and received July 17 was read, stating the Governor                                   
transmitted the engrossed and enrolled copies of the following                                      
resolution to the Lieutenant Governor's Office for permanent filing:                                
                                                                                                    
           SENATE CONCURRENT RESOLUTION NO. 43                                                      
           Suspending Rules 24(c), 35, 41(b), and 42(e),                                            
           Uniform Rules of the Alaska State Legislature,                                           
           concerning House Bill No. 525, relating to the                                           
           issuance of general obligation bonds for deferred                                        
           maintenance.                                                                             
                                                                                                    
                          Legislative Resolve No. 77                                               
                                                                                                    
SCR 301                                                                                           
Message dated and received July 17, stating the Governor transmitted                                
the engrossed and enrolled copies of the following resolution to the                                
Lieutenant Governor's Office for permanent filing:                                                  
                                                                                                    
           SENATE CONCURRENT RESOLUTION NO. 301                                                     
           Suspending Rules 24(c), 35, 41(b), and 42(e),                                            
           Uniform Rules of the Alaska State Legislature,                                           
           concerning House Bill No. 3001, relating to the                                          
           Regulatory Commission of Alaska.                                                         
                                                                                                    
                          Legislative Resolve No. 82                                               
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3862
HB 3001                                                                                           
Message dated and received August 9 was read, stating the Governor                                  
signed the following bill and transmitted the engrossed and enrolled                                
copies to the Lieutenant Governor's Office for permanent filing:                                    
                                                                                                    
           SENATE CS FOR CS FOR HOUSE BILL NO.                                                      
           3001(JUD) am S "An Act relating to the powers and                                        
           duties of the Regulatory Commission of Alaska,                                           
           establishing a task force to inquire into the operation                                  
           of the commission, and extending the termination                                         
           date of the commission to June 30, 2003; and                                             
           providing for an effective date."                                                        
                                                                                                    
                            Chapter 2, TSSLA 2002                                                  
                         Effective Date: See Chapter                                               
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3863
                      INDEX TO VETOED, PARTIALLY VETOED                                          
                       AND LAW WITHOUT SIGNATURE BILLS                                           
                                                                                                    
                                                                                                    
HB 177                                                                                            
SENATE CS FOR CS FOR HOUSE BILL NO. 177(RLS) am S                                                   
"An Act regulating nongroup entities and certain tax-exempt                                         
organizations under Alaska's election campaign finance statutes; and                                
requiring disclosure of the true source of campaign contributions."                                 
                                                                                                    
           Legislative Override of Veto..............................1966                           
           Chapter No. Assigned.........................................2014                        
                                                                                                    
HB 244                                                                                            
SENATE CS FOR CS FOR HOUSE BILL NO. 244(RES)                                                        
"An Act relating to a grant of state land to the Denali Borough for a                               
railroad and utility corridor and a railroad development project;                                   
repealing provisions relating to a grant of a right-of-way of land for a                            
railroad and utility corridor to the Alaska Industrial Development and                              
Export Authority; and providing for an effective date."                                             
                                                                                                    
           Legislative Override of Veto..............................1967                           
           Chapter No. Assigned.........................................2015                        
                                                                                                    
HB 296                                                                                            
SENATE CS FOR CS FOR HOUSE BILL NO. 296(JUD)                                                        
"An Act relating to mergers and consolidations of municipalities."                                  
                                                                                                    
           Veto.....................................................................3858            
                                                                                                    
HB 397                                                                                            
SENATE CS FOR CS FOR HOUSE BILL NO. 397(TRA)                                                        
"An Act exempting a person driving certain motor vehicles, aircraft, or                             
watercraft from driver licensing requirements; and providing for an                                 
effective date."                                                                                    
                                                                                                    
           Law Without Signature.......................................3852                         
           Chapter No. Assigned.........................................3852                        
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3864
HB 403                                                                                            
CONFERENCE CS FOR HOUSE BILL NO. 403                                                                
"An Act making appropriations for the operating and loan program                                    
expenses of state government, for certain programs, and to capitalize                               
funds; and providing for an effective date."                                                        
                                                                                                    
           PartialVeto...........................................................3823               
           Chapter No. Assigned.........................................3823                        
                                                                                                    
HB 474                                                                                            
CS FOR HOUSE BILL NO. 474(CRA) am                                                                   
"An Act relating to public rights-of-way and easements for surface                                  
transportation affecting the Anchorage Coastal Wildlife Refuge."                                    
                                                                                                    
           Veto.....................................................................3842            
                                                                                                    
HB 499                                                                                            
CS FOR HOUSE BILL NO. 499(JUD)                                                                      
"An Act declaring legislative intent to reject the continuity of enterprise                         
exception to the doctrine of successor liability adopted in Savage Arms,                            
Inc. v. Western Auto Supply, 18 P.3d 49 (Alaska 2001) as it relates to                              
products liability; providing that a successor corporation or other                                 
business entity that acquires assets of a predecessor corporation or other                          
business entity is subject to liability for harm to persons or property                             
caused by a defective product sold or otherwise distributed                                         
commercially by the predecessor only if the acquisition is accompanied                              
by an agreement for the successor to assume the liability, results from a                           
fraudulent conveyance to escape liability for the debts or liabilities of                           
the predecessor, constitutes a consolidation or merger with the                                     
predecessor, or results in the successor's becoming a continuation of the                           
predecessor; defining 'business entity' that acquires assets to include a                           
sole proprietorship; and applying this Act to the sale, lease, exchange, or                         
other disposition of assets by a corporation, a limited liability company,                          
a partnership, a limited liability partnership, a limited partnership, a sole                       
proprietorship, or other business entity that occurs before, on, or after                           
the effective date of this Act."                                                                    
                                                                                                    
           Veto.....................................................................3819            
                                                                                                    
                                                                                                    

2002-08-14                     Senate Journal                      Page 3865
HB 504                                                                                            
CS FOR HOUSE BILL NO. 504(FIN) am                                                                   
"An Act relating to the wages of people working in the fisheries                                    
business."                                                                                          
                                                                                                    
           Veto.....................................................................3837            
                                                                                                    
SB 103                                                                                            
CONFERENCE CS FOR SENATE BILL NO. 103                                                               
"An Act relating to election campaigns and legislative ethics."                                     
                                                                                                    
           Legislative Override of Veto..............................1964                           
           Chapter No. Assigned.........................................1998                        
                                                                                                    
SB 161                                                                                            
HOUSE CS FOR CS FOR SENATE BILL NO. 161(JUD) (efd am H)                                             
"An Act relating to the withholding of salary of justices, judges, and                              
magistrates; relating to prompt decisions by justices, judges, and                                  
magistrates; relating to judicial retention elections for judicial officers;                        
and providing for an effective date."                                                               
                                                                                                    
           Veto.....................................................................3779            
                                                                                                    
SB 166                                                                                            
SENATE BILL NO. 166                                                                                 
"An Act relating to the time of filling by appointment a vacancy in the                             
office of United States senator."                                                                   
                                                                                                    
           Legislative Override of Veto..............................1965                           
           Chapter No. Assigned.........................................1998                        
                                                                                                    
SB 180                                                                                            
CS FOR SENATE BILL NO. 180(FIN)(efd fld)                                                            
"An Act implementing pay differentials based on geographic areas for                                
certain state employees and for members of the Alaska State Defense                                 
Force; relating to cost-of-living differentials for state aid to                                    
municipalities."                                                                                    
                                                                                                    
           Veto.....................................................................3854            
                                                                                                    

2002-08-14                     Senate Journal                      Page 3866
SB 242                                                                                            
SENATE BILL NO. 242 am H                                                                            
"An Act relating to concealed handgun permittees."                                                  
                                                                                                    
           Law Without Signature.......................................3165                         
           Chapter No. Assigned ........................................3166                        
                                                                                                    
SB 363                                                                                            
CONFERENCE CS FOR SENATE BILL NO. 363                                                               
"An Act relating to communications and elections, to reporting of                                   
contributions and expenditures, and to campaign misconduct in the                                   
second degree; relating to disclosure by individuals of contributions to                            
candidates; and providing for an effective date."                                                   
                                                                                                    
           Veto.....................................................................3750            
           Legislative Override of Veto..............................3789                           
           Chapter No. Assigned ........................................3798                        
                                                                                                    
SB 364                                                                                            
SENATE BILL NO. 364                                                                                 
"An Act relating to medical services under the state Medicaid program."                             
                                                                                                    
           Veto.....................................................................3742            
                                                                                                    
SB 370                                                                                            
CS FOR SENATE BILL NO. 370(STA) am H                                                                
"An Act establishing procedures relating to constitutional conventions."                            
                                                                                                    
           Veto.....................................................................3856            
                                                                                                    
SB 2006                                                                                           
HOUSE CS FOR CS FOR SENATE BILL NO. 2006(FIN) am H                                                  
"An Act making and amending appropriations and reappropriations;                                    
making appropriations under art. IX, sec. 17(c), Constitution of the State                          
of Alaska, from the constitutional budget reserve fund; and providing                               
for an effective date."                                                                             
                                                                                                    
           Partial Veto..........................................................3832               
           Chapter No. Assigned.........................................3832                        
                                                                                                    

2002-08-14                     Senate Journal                      Page 3867
This final supplement of the Senate Journal completes the official                                  
record of the Second Session and the Second and Third Special                                       
Sessions of the Twenty-second Legislature.                                                          
                                                                                                    
                                                                             Heidi Vogel            
                                                               Secretary of the Senate              
                                                                                                    
                                                                            August 2002