Dunleavy Sets Veto Record Amid Standoff Over LNG Pipeline Tax Break Bill

Alaska Gov. Mike Dunleavy set a state record for the most vetoes issued during a single Legislature, a milestone reached during the 34th Legislature as lawmakers worked on a multibillion-dollar property tax break bill for the developer of the proposed trans-Alaska LNG pipeline. Senate President Gary Stevens and House Speaker Bryce Edgmon largely declined to comment on the veto record, saying their focus was on negotiating the pipeline tax break legislation with the governor. Dunleavy said the bill would be difficult to accept in its current form as it moved through a legislative conference committee. Eight other bills, including a comprehensive insurance measure (HB 14), remained pending before the governor at the time. Tensions later escalated when Senate leaders added a corporate income tax expansion to the pipeline tax break bill. Dunleavy publicly accused Senate Majority Leader Cathy Giessel and Sen. Bill Wielechowski of holding the gas line project hostage over that provision, resulting in a heated exchange with reporters. The compromise legislation containing the corporate tax provision passed the Senate but subsequently failed in the House. Following the bill's failure, Dunleavy called a fourth special session to continue efforts to pass gas pipeline tax legislation. It remains unresolved how the corporate income tax dispute will be settled or what changes, if any, will be made to the bill to secure passage in both chambers. The final disposition of the eight other bills awaiting Dunleavy's action, including HB 14, was not reported.