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HB 460: "An Act relating to actions for monopolies and restraint of trade, including proof of damages; amending Rule 82, Alaska Rules of Civil Procedure; and providing for an effective date."

00 HOUSE BILL NO. 460 01 "An Act relating to actions for monopolies and restraint of trade, including proof of 02 damages; amending Rule 82, Alaska Rules of Civil Procedure; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 45.50.576 is amended to read: 06 Sec. 45.50.576. Suits by persons injured; treble damages. (a) A person 07 who is injured in business or property by a violation of AS 45.50.562 - 45.50.570, or a 08 person so injured because the person refuses to accede to a proposal for an 09 arrangement that, if consummated, would be a violation of AS 45.50.562 - 45.50.570, 10 may bring a civil action 11 (1) for damages sustained by the person, and, if the judgment is for the 12 plaintiff [AND THE TRIER OF FACT FINDS THAT THE DEFENDANT'S 13 CONDUCT WAS WILFUL], the plaintiff shall be awarded threefold the amount of 14 damages sustained by the person, plus the costs of the suit, including reasonable

01 attorney fees; and 02 (2) to enjoin the unlawful practice, and, if judgment is for the plaintiff, 03 the plaintiff may be awarded the costs of the suit, including reasonable attorney fees. 04 (b) If [WHEN THE STATE,] a nonstate [HOME RULE OR GENERAL 05 LAW CITY OR BOROUGH, OR OTHER] governmental entity is injured by reason 06 of a violation of AS 45.50.562 - 45.50.570, it may maintain an action in the same 07 manner as prescribed in (a) of this section for an injured person; and the nonstate 08 [STATE, CITY, BOROUGH, OR OTHER] governmental entity is entitled to the same 09 relief as provided in (a) of this section. 10 * Sec. 2. AS 45.50 is amended by adding a new section to read: 11 Sec. 45.50.577. Enforcement by attorney general. (a) The attorney general 12 may bring a civil action in superior court to secure monetary relief as provided in this 13 section on behalf of the state and its agencies injured either directly or indirectly by a 14 violation of AS 45.50.562 - 45.50.570. 15 (b) The attorney general may bring a civil action in superior court in the name 16 of the state, as parens patriae on behalf of a nonstate governmental entity or person 17 doing business or residing in this state, to secure monetary relief as provided in this 18 section for injuries directly or indirectly sustained by the nonstate governmental entity 19 or person by reason of a violation of AS 45.50.562 - 45.50.570. 20 (c) The court shall exclude from the amount of monetary relief awarded in an 21 action under (a) or (b) of this section monetary relief that 22 (1) duplicates amounts that have been awarded for the same injury; or 23 (2) is allocated to nonstate governmental entities or persons who have 24 excluded their claims under (f) of this section. 25 (d) If the state is the prevailing party under (a) or (b) of this section, the court 26 shall award as monetary relief three times the total damages sustained. 27 (e) In addition to the monetary relief awarded under (d) of this section, if the 28 state is the prevailing party under (a) or (b) of this section, the court shall award the 29 state its costs for the action as provided by court rule and full reasonable attorney fees. 30 (f) In an action brought under (b) of this section, the attorney general, at the 31 times, in the manner, and with the content the court directs, shall publish notice of the

01 action. A nonstate governmental entity or person on whose behalf an action is brought 02 under (b) of this section may elect to exclude from the civil action the portion of the 03 claim for monetary relief attributable to that nonstate governmental entity or person by 04 filing notice of the election with the court within the time specified in the notice 05 published under this subsection. 06 (g) The final judgment in an action under this section precludes any claim 07 under AS 45.50.576 by a nonstate governmental entity or person on whose behalf the 08 action was brought and who fails to give notice of election to be excluded under (f) of 09 this section within the time specified in the attorney general's notice published under 10 (f) of this section. 11 (h) An action under (b) of this section may not be dismissed or compromised 12 without the approval of the court, and notice of a proposed dismissal or compromise 13 shall be published at the time, in the manner, and with the content the court directs 14 under (f) of this section and AS 45.50.584. 15 (i) Monetary relief recovered under this section shall be distributed in the 16 manner the court, in its discretion, authorizes. A distribution procedure authorized by 17 the court under this subsection must afford the state and each nonstate governmental 18 entity and person participating in the action a reasonable opportunity to secure the 19 participant's appropriate portion of the net monetary relief. 20 (j) In an action under this section, the attorney general may recover aggregate 21 damages by using statistical sampling, by the computation of illegal overcharges, or 22 by another reasonable system of estimating aggregate damages that the court in its 23 discretion permits without the necessity of separately proving the individual claim or 24 amount of damage to the state, the nonstate governmental entity, or the person on 25 whose behalf the civil action was brought. 26 * Sec. 3. AS 45.50 is amended by adding a new section to read: 27 Sec. 45.50.579. Actions for indirect injury. Only the attorney general in an 28 action brought under AS 45.50.577 may seek monetary relief for injury indirectly 29 sustained due to a violation of AS 45.50.562 - 45.50.570. 30 * Sec. 4. AS 45.50.586 is amended to read: 31 Sec. 45.50.586. Judgment in favor of the state as evidence in another

01 action. A final judgment rendered in a civil or criminal action brought by the state 02 under AS 45.50.562 - 45.50.596 is prima facie evidence against the defendant in any 03 other action under AS 45.50.562 - 45.50.596 brought by another person, [PARTY, 04 OR] by the state or its agencies, [A CITY, A BOROUGH,] or by a nonstate 05 [OTHER] governmental entity; however, this section does not apply to consent 06 judgments or decrees entered under AS 45.50.584. 07 * Sec. 5. AS 45.50.596 is amended by adding a new paragraph to read: 08 (4) "nonstate governmental entity" includes a municipality, but does 09 not include the state or its agencies. 10 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 INDIRECT COURT RULE AMENDMENT. AS 45.50.577(e), enacted by sec. 2 of 13 this Act, has the effect of changing Rule 82, Alaska Rules of Civil Procedure, by requiring 14 that the court award full reasonable attorney fees to the state as the prevailing party rather 15 than follow the criteria in Rule 82. 16 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 APPLICABILITY. This Act applies to a civil action alleging a violation of 19 AS 45.50.562 - 45.50.570 that occurs on or after the effective date of this Act. 20 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 CONDITIONAL EFFECT. AS 45.50.577(e), enacted by sec. 2 of this Act, takes 23 effect only if sec. 6 of this Act receives the two-thirds majority vote of each house required by 24 art. IV, sec. 15, Constitution of the State of Alaska. 25 * Sec. 9. This Act takes effect July 1, 2002.