 Vetoes Successor Liability Bill June 29, 2002
Knowles signed HB 350, which increases the criminal penalties for certain acts of terrorism and would prohibit the mailing of imitation substances with the intent to frighten people or cause other specified harm. Measures in the bill were originally introduced by Knowles as part of the Homeland Security package of bills introduced after the terrorist attacks of September 11. Knowles lauded passage of the bill, saying "It is unfortunate that recent tragedies and ensuing upheavals in our country make these measures very important." In other action, Knowles signed the following bills into law: HB 332 extends the Council on Domestic Violence and Sexual Assault to June 30, 2006 and places the executive director and staff in the exempt service, deferring the effective date until the expiration of any applicable collective bargaining agreement for any positions covered by an agreement. HB 281 provides that a person who knowingly furnishes or delivers an alcoholic beverage to a person under 21 is civilly liable for damages that result. HB 330 creates a class C felony for furnishing alcohol to a minor who negligently causes serious physical injury or death. It also doubles the production cap for brewpubs that manufacture beer on the premises of the dispensary license to 150,000 gallons of beer per calendar year, and imposes a cap on the amount of that beer that can be sold annually to wholesalers to the greater of 15,000 gallons or the amount sold by the brewpub to wholesalers in 2001 plus 10 percent. HB 305 prohibits persons who fail to register for the military selective service for certain state employment, educational loans, and permanent fund dividends. The bill's effective date is January 1, 2004. HB 381 limits the felony offense for failure to stop at the direction of a peace officer, clarifying and improving on a 1998 law. HB 405 clarifies that the state may exercise jurisdiction to prosecute offenses that occur on state owned or operated ferries, aircraft, or other vessels even if the offense occurred when operating outside the state. Knowles also took action to veto one bill: Knowles vetoed House Bill 499, a bill that would have rejected the "continuity of enterprise" exception to the doctrine of successor liability set in the case Savage Arms v. Western Auto Supply, as it relates to product liability. "The potential outcome of this poor legislative choice is to deny Alaska families the opportunity to pursue legitimate claims against product manufacturers who offer defective goods that cause serious injury," said Knowles. In the Administration's opinion, this legislation, through its retrospective application, would inappropriately affect the outcome of pending litigation in the Savage Arms case. This in turn might create more costly and time-consuming litigation. The decision of the court system in this matter should be respected as final. From a policy perspective, the balance of fairness concerns as between plaintiffs and successors established by the Savage Arms court is more appropriate than that established by the Products Liability Restatement as codified in this bill. The modest expansion of the scope of successor liability announced by the Savage Arms court was a legitimate decision by the court and it should not be disturbed. According to the news release, for these reasons, Knowles vetoed the bill.
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