1999. Second term O'Bannon and Kernan were re-elected in 2000, defeating the ticket of David M. McIntosh and J. Murray Clark. In October 2001, Kernan unveiled the O'Bannon administration's plan for a comprehensive overhaul to the state of Indiana's tax system. The plan was entitled the 21st Century Tax Plan. Kernan had developed this plan alongside a bipartisan group of tax experts. A tax reform plan based upon this proposal was passed in the Indiana General Assembly in June 2002. In July 2002, Kernan announced a reorganization of the Indiana Department of Commerce. It moved from dividing the department in the thirteen divisions to instead dividing into two teams (program operations and professional services). The reorganization also included the creation of twelve regional offices (including a central office in Indianapolis). In December 2002, O'Bannon and Kernan proposed a broad job-creation plan entitled "Energize Indiana". In 2002, a rift arose between Kernan and Governor O'Bannon over O'Bannon's selection of Peter Manous as Democratic State Chairman. Acting governor On September 10, 2003, Kernan began serving as acting governor. O'Bannon had been hospitalized after suffering a stroke two days earlier. This was the first time that Indiana had ever implemented their state constitution's clause for handing over the authority of governor in the instance that the governor is unable to perform their duty due to disability. Speaker of the Indiana House of Representatives B. Patrick Bauer and Indiana Senate President pro tempore Robert D. Garton had consulted with O'Bannon's counsel, medical treatment team, and family before making a request on September 10, 2003 to Indiana Supreme Court Chief justice Randall Shepard for the court to issue a ruling on O'Bannon's ability to perform his duties. After just over an hour of private discussion, the court ruled that Kernan would become acting governor. Governorship Kernan assumed the governorship following the September 13, 2003 death of Frank O'Bannon. Kernan would receive praise for what was regarded to have been a smooth transition into the office. Appointments and personnel For his lieutenant governor, Kernan appointed Kathy Davis, making her the first female lieutenant governor in Indiana's history. Early into his governorship, Kernan made some key hires and appointments. This included hiring Marshall Michael Carrington to conduct a thorough probe of the Indiana Bureau of Motor Vehicles, and appointing Cheryl Sullivan to head the Family and Social Services Administration. Kernan was credited with strengthening the cabinet style