Legislature(2005 - 2006)CAPITOL 120

06/05/2006 10:00 AM House JUDICIARY


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10:20:54 AM Start
10:21:07 AM SB2002
11:27:33 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
SB2002 GAS PIPELINE CONTRACT: COURT JURISDICTION
Moved HCS CSSB 2002(JUD) Out of Committee
HB2004 STRANDED GAS DEVELOPMENT ACT AMENDMENTS
Scheduled But Not Heard
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                          June 5, 2006                                                                                          
                           10:20 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Lesil McGuire, Chair                                                                                             
Representative Tom Anderson                                                                                                     
Representative John Coghill                                                                                                     
Representative Pete Kott                                                                                                        
Representative Peggy Wilson                                                                                                     
Representative Les Gara                                                                                                         
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Mark Neuman                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 2002(JUD)                                                                                                
"An Act  conferring original jurisdiction  on the  Alaska Supreme                                                               
Court for the purpose of  providing judicial review of a contract                                                               
executed  under  the Alaska  Stranded  Gas  Development Act,  and                                                               
setting  the  time  in  which  a final  agency  decision  of  the                                                               
commissioner   of    revenue   made    under   that    Act,   the                                                               
constitutionality of  a law authorizing a  contract enacted under                                                               
that Act,  or the enforceability  of a contract executed  under a                                                               
law  authorizing  a  contract  enacted under  that  Act  must  be                                                               
legally challenged  and by whom;  and providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED HCS CSSB 2002(JUD) OUT OF COMMITTEE                                                                                
                                                                                                                                
HOUSE BILL NO. 2004                                                                                                             
"An  Act relating  to the  Alaska Stranded  Gas Development  Act,                                                               
including  clarifications or  provision  of additional  authority                                                               
for  the  development  of stranded  gas  fiscal  contract  terms;                                                               
making a conforming amendment to  the Revised Uniform Arbitration                                                               
Act; relating to municipal impact  money received under the terms                                                               
of  a  stranded  gas  fiscal   contract;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 2002                                                                                                                 
SHORT TITLE: GAS PIPELINE CONTRACT: COURT JURISDICTION                                                                          
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
05/31/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/31/06       (S)       JUD                                                                                                    
06/02/06       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
06/02/06       (S)       Moved CSSB 2002(JUD) Out of Committee                                                                  
06/02/06       (S)       MINUTE(JUD)                                                                                            
06/02/06       (S)       JUD RPT CS  1DP 3NR  NEW TITLE                                                                         
06/02/06       (S)       DP: SEEKINS                                                                                            
06/02/06       (S)       NR: FRENCH, THERRIAULT, HUGGINS                                                                        
06/04/06       (S)       TRANSMITTED TO (H)                                                                                     
06/04/06       (S)       VERSION: CSSB 2002(JUD)                                                                                
06/04/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
06/04/06       (H)       JUD                                                                                                    
06/05/06       (H)       JUD AT 10:00 AM CAPITOL 120                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JAMES L. BALDWIN, Attorney at Law                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During discussion of SB  2002, responded to                                                               
questions as counsel to the Office of the Attorney General.                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  LESIL   McGUIRE  called   the  House   Judiciary  Standing                                                             
Committee  meeting  to order  at  10:20:54  AM.   Representatives                                                             
McGuire,  Kott, Wilson,  Gara, and  Coghill were  present at  the                                                               
call to  order.  Representatives  Gruenberg and  Anderson arrived                                                               
as the meeting  was in progress.  Representative  Neuman was also                                                               
in attendance.                                                                                                                  
                                                                                                                                
SB 2002 - GAS PIPELINE CONTRACT: COURT JURISDICTION                                                                           
                                                                                                                                
10:21:07 AM                                                                                                                   
                                                                                                                                
CHAIR McGUIRE announced that the  only order of business would be                                                               
CS FOR  SENATE BILL  NO. 2002(JUD),  "An Act  conferring original                                                               
jurisdiction  on the  Alaska  Supreme Court  for  the purpose  of                                                               
providing  judicial  review  of  a contract  executed  under  the                                                               
Alaska  Stranded Gas  Development Act,  and setting  the time  in                                                               
which  a final  agency decision  of the  commissioner of  revenue                                                               
made under that  Act, the constitutionality of  a law authorizing                                                               
a contract  enacted under  that Act, or  the enforceability  of a                                                               
contract  executed under  a law  authorizing  a contract  enacted                                                               
under  that Act  must  be  legally challenged  and  by whom;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
REPRESENTATIVE WILSON moved  to adopt CSSB 2002(JUD)  as the work                                                               
draft.  There  being no objection, CSSB 2002(JUD)  was before the                                                               
committee.                                                                                                                      
                                                                                                                                
CHAIR  McGUIRE,  noting that  a  representative  from the  Alaska                                                               
Court System (ACS) was available  to answer questions but that no                                                               
one wished to testify, closed public testimony on SB 2002.                                                                      
                                                                                                                                
CHAIR  McGUIRE  referred to  Amendment  1,  which read  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     page 1 line 10 delete "A person may not bring an                                                                           
                    insert "No"                                                                                                 
                                                                                                                                
       page 1 line 13 following "section" insert "may be                                                                        
     brought"                                                                                                                   
                                                                                                                                
The committee took an at-ease from 10:24 a.m. to 10:25 a.m.                                                                     
                                                                                                                                
REPRESENTATIVE GARA noted that one  view that has been propounded                                                               
is that  the courts won't  have to  review certain issues  if the                                                               
legislature  has   already  done  so.     However,  his  research                                                               
indicates that when  the Alaska Stranded Gas  Development Act was                                                               
passed,   the  question   was   raised   regarding  whether   the                                                               
legislative   role   provided   for   in  that   Act   was   even                                                               
constitutional.  One  view was that the governor  gets to execute                                                               
"things" while the  legislature only gets to pass  laws, and thus                                                               
the  whole idea  of the  legislature confirming  or stopping  the                                                               
governor from  signing the contract might  violate the separation                                                               
of  powers clause.   If  that's the  case, and  there is  neither                                                               
legislative  review nor  any court  review, then  what review  is                                                               
there, he  queried.  According  to a memorandum  from Legislative                                                               
Legal  and Research  Services, he  relayed,  there is  a still  a                                                               
question regarding  whether legislative  confirmation, agreement,                                                               
approval,  or disproval  of the  contract is  constitutional, and                                                               
the prevailing thought in that  office is that such would violate                                                               
the [Alaska State] Constitution.                                                                                                
                                                                                                                                
REPRESENTATIVE GARA went on to say:                                                                                             
                                                                                                                                
     That's  the point  that ...  if  we have  this sort  of                                                                    
     shell game  where maybe the  governor doesn't  like our                                                                    
     answer and then says, "Well,  I don't have to listen to                                                                    
     your  answer because  your answer  is irrelevant  under                                                                    
     the  [Alaska State]  Constitution," and  then we  don't                                                                    
     get to review and the  courts don't get to review, then                                                                    
     all of  a sudden this  is a one branch  government, and                                                                    
     that's a big problem. ...                                                                                                  
                                                                                                                                
REPRESENTATIVE WILSON  pointed out  that the second  paragraph in                                                               
the aforementioned  memorandum draws  attention to the  fact that                                                               
the  legislature  does  have  inherent  powers  over  the  fiscal                                                               
matters of the state.                                                                                                           
                                                                                                                                
10:27:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  asking  that   all  of  his  proposed                                                               
amendments  be  altered to  conform  to  CSSB 2002(JUD),  made  a                                                               
motion  to adopt  Amendment 1  [text  provided previously];  that                                                               
alteration will  result in having  the first part of  Amendment 1                                                               
apply to page  1, line 12, and  the second part apply  to page 1,                                                               
line 13, at the beginning of the line.                                                                                          
                                                                                                                                
REPRESENTATIVE WILSON objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG  offered  his understanding  that  this                                                               
change comes  at the  request by  Mr. Baldwin.   He then  [made a                                                               
motion to  amend] Amendment 1 such  that the language on  page 2,                                                               
lines  6-8,  also  be  deleted,   thus  eliminating  proposed  AS                                                               
43.82.440(b).  [Amendment 1 was treated as amended.]                                                                            
                                                                                                                                
CHAIR McGUIRE asked whether there  were any further objections to                                                               
Amendment  1 [as  amended].   There being  none, Amendment  1 [as                                                               
amended] was adopted.                                                                                                           
                                                                                                                                
The committee took an at-ease from 10:30 a.m. to 10:32 a.m.                                                                     
                                                                                                                                
CHAIR  McGUIRE  referred to  Amendment  2,  which read  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     page 2 line 1 delete "the state and the other"                                                                             
                    insert "all"                                                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  clarifying  that Amendment  2  should                                                               
instead alter  the language on page  2, line 5, made  a motion to                                                               
adopt Amendment 2.                                                                                                              
                                                                                                                                
CHAIR McGUIRE objected for the purpose of discussion.                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG  clarified further that the  language to                                                               
be inserted via Amendment 2 should be, "all the".                                                                               
                                                                                                                                
JAMES L.  BALDWIN, Attorney at Law,  as counsel to the  Office of                                                               
the Attorney General, offered his  belief that the administration                                                               
doesn't have a problem with Amendment 2.                                                                                        
                                                                                                                                
CHAIR  McGUIRE removed  her objection,  and  asked whether  there                                                               
were  any further  objections to  Amendment 2  as altered  in the                                                               
aforementioned  fashions.   There  being  none,  Amendment 2  was                                                               
adopted.                                                                                                                        
                                                                                                                                
10:34:47 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG [made  a  motion  to adopt]  Conceptual                                                               
Amendment 3 as altered to say [original punctuation provided]:                                                                  
                                                                                                                                
     page 2 line 8.  Add the following sentence"                                                                                
         "As used in this subsection, "contract" is the                                                                         
     contract developed under AS 43.82.020."                                                                                    
                                                                                                                                
MR.   BALDWIN  said   the  administration   doesn't  think   that                                                               
Amendment 3  is necessary,  though  it is  not  injurious to  the                                                               
administration.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he simply want's  to clarify which                                                               
contract is being referred to in SB 2002.                                                                                       
                                                                                                                                
REPRESENTATIVE    WILSON   offered    her   understanding    that                                                               
Amendment 1, as  amended, deleted subsection (b),  which ended on                                                               
page 2, line 8.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG clarified that  the language being added                                                               
via   Conceptual    Amendment   3   would   constitute    a   new                                                               
subsection (b).                                                                                                                 
                                                                                                                                
CHAIR  McGUIRE  asked  whether   there  were  any  objections  to                                                               
Conceptual   Amendment  3.      There   being  none,   Conceptual                                                               
Amendment 3 was adopted.                                                                                                        
                                                                                                                                
10:37:51 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GARA made a motion to adopt Conceptual                                                                           
Amendment 4, labeled 24-GH2054\A.1, Bailey, 6/1/06, which read:                                                                 
                                                                                                                                
     Page 1, line 1, following "Act":                                                                                         
          Delete   "increasing    the   time    period   for                                                                  
     legislative and  public comment on a  proposed contract                                                                  
     and preliminary  findings and determinations  under the                                                                  
     Alaska Stranded Gas Development Act,"                                                                                    
                                                                                                                                
     Page 1, following line 6:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Section 1. AS 43.82.410 is amended to read:                                                                      
          Sec. 43.82.410. Notice and comment regarding the                                                                    
     contract. The commissioner shall                                                                                         
               (1)  give reasonable public notice of the                                                                        
     preliminary  findings  and   determination  made  under                                                                    
     AS 43.82.400;                                                                                                              
               (2)  make copies of the proposed contract,                                                                       
     the    commissioner's    preliminary    findings    and                                                                    
     determination, and,  to the  extent the  information is                                                                    
     not   required   to    be   kept   confidential   under                                                                    
     AS 43.82.310, the supporting  financial, technical, and                                                                    
     market data,  including the work papers,  analyses, and                                                                    
     recommendations  of  any independent  contractors  used                                                                    
     under AS 43.82.240 available to the public and to                                                                          
               (A)  the presiding officer of each house of                                                                      
     the legislature;                                                                                                           
               (B)  the chairs of the finance and resources                                                                     
     committees of the legislature; and                                                                                         
               (C)  the chairs of the special committees on                                                                     
     oil and gas, if any, of the legislature;                                                                                   
               (3)  offer to appear before the Legislative                                                                      
     Budget and  Audit Committee to provide  the committee a                                                                    
     review of  the commissioner's preliminary  findings and                                                                    
     determination,   the   proposed   contract,   and   the                                                                    
     supporting  financial, technical,  and market  data; if                                                                    
     the Legislative Budget and  Audit Committee accepts the                                                                    
     commissioner's offer,  the committee shall  give notice                                                                    
     of  the  committee's  meeting to  the  public  and  all                                                                    
     members   of  the   legislature;   if  the   financial,                                                                    
     technical, and market data that  is to be provided must                                                                    
     be   kept   confidential    under   AS 43.82.310,   the                                                                    
     commissioner   may   not   release   the   confidential                                                                    
     information  during a  public  portion  of a  committee                                                                    
     meeting; and                                                                                                               
               (4)  establish a period of at least 90 [30]                                                                  
     days for the public and members of the legislature to                                                                      
      comment on the proposed contract and the preliminary                                                                      
     findings and determination made under AS 43.82.400."                                                                       
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE GARA remarked that  Amendment 4 must be conceptual                                                               
for the  purpose of allowing  the drafter  to conform it  to CSSB
2002(JUD).  He explained that he  doesn't believe that 30 days is                                                               
adequate  time  for the  public  to  review the  proposed  Alaska                                                               
Stranded Gas Fiscal Contract ("ASGF  Contract"); rather, having a                                                               
minimum of  90 days for  public review  would be a  better public                                                               
policy.                                                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked to be  listed as a  co-sponsor of                                                               
Conceptual Amendment 4.                                                                                                         
                                                                                                                                
REPRESENTATIVE  COGHILL opined  that HB  2004 would  be a  better                                                               
vehicle for the language of Conceptual Amendment 4.                                                                             
                                                                                                                                
REPRESENTATIVE  GRUENBERG  opined  that the  change  proposed  by                                                               
Conceptual  Amendment 4  stands for  such an  important principal                                                               
that it ought to be included  in SB 2002 even if similar language                                                               
is also inserted into other bills.                                                                                              
                                                                                                                                
REPRESENTATIVE  GARA expressed  a  preference  for including  the                                                               
proposed language in SB 2002.                                                                                                   
                                                                                                                                
REPRESENTATIVE GARA, noting a typographical  error, made a motion                                                               
to  amend Conceptual  Amendment 4  such that  the word,  "Delete"                                                               
would  be replaced  with  the  word, "Insert".    There being  no                                                               
objection, the amendment to Conceptual Amendment 4 was adopted.                                                                 
                                                                                                                                
10:44:13 AM                                                                                                                   
                                                                                                                                
A roll call  vote was taken.  Representatives  Gruenberg and Gara                                                               
voted   in  favor   of  Conceptual   Amendment  4,   as  amended.                                                               
Representatives  McGuire,  Coghill,  Wilson, Kott,  and  Anderson                                                               
voted  against  it.    Therefore,   Conceptual  Amendment  4,  as                                                               
amended, failed by a vote of 2-5.                                                                                               
                                                                                                                                
10:45:02 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   KOTT  made   a   motion   to  adopt   Conceptual                                                               
Amendment 5,  to delete  "120" from  page 2,  line 4,  and insert                                                               
"60".                                                                                                                           
                                                                                                                                
REPRESENTATIVE GARA  objected.  He  opined that 60 days  will not                                                               
be a  sufficient amount of time  for someone to bring  an action,                                                               
and recounted some  of the steps that should  be taken beforehand                                                               
by the person bringing the action and his/her attorney.                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG  referred  to  Alaska  Rules  of  Civil                                                               
Procedure  Rules  11  and  95(b)   -  the  latter  pertaining  to                                                               
penalties   for  violating   the   former  -   and  offered   his                                                               
understanding that those rules have  been imposed, though perhaps                                                               
not often.                                                                                                                      
                                                                                                                                
CHAIR  McGUIRE offered  her belief  that  Rule 11  is either  not                                                               
enforceable or  is simply  not enforced.   Although  most lawyers                                                               
are  diligent and  try to  include a  reasonable basis  for their                                                               
claims,  the  reality  is  that  very  often  complaints  contain                                                               
boilerplate language  intended to  preserve any claim  that might                                                               
be made.   Furthermore, she opined,  by the time a  contract such                                                               
as the  ASGF Contract would  be executed,  significant discussion                                                               
will have  already occurred; therefore,  having a  60-day statute                                                               
of  limitations is  not unreasonable,  particularly given  that a                                                               
significant amount  of time will  have already passed,  and those                                                               
that intend to file litigation will  be well aware of the issues.                                                               
She indicated  that the 120-day  statute of limitation  period is                                                               
too  long, will  create uncertainty,  and become  a burden.   She                                                               
offered her  belief that the  rules of the court  favor fairness,                                                               
and so  she doesn't anticipate  that any  court of law  in Alaska                                                               
will reject  information or  claims that may  arise later  in the                                                               
process.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GARA again  opined that  reducing the  statute of                                                               
limitations to 60 days will  preclude legitimate suits from being                                                               
filed by regular citizens because  good lawyers will require time                                                               
to research whether  a particular claim is valid.   He noted that                                                               
60  days  is only  one-twelfth  of  the  time that  is  currently                                                               
provided for simpler types of cases.                                                                                            
                                                                                                                                
10:56:48 AM                                                                                                                   
                                                                                                                                
MR. BALDWIN offered his belief  that the "notice pleading" system                                                               
Alaska  has  will alleviate  a  large  part  of the  burden  that                                                               
Representative Gara has  concerns about, and said  that the point                                                               
of having a  short statute of limitations period  is to encourage                                                               
people to [file claims early]  rather than waiting until a "choke                                                               
point" in the project  is at hand.  He noted  that other types of                                                               
claims also have short statute  of limitations periods, simply as                                                               
a  matter  of public  policy,  and  encouraged the  committee  to                                                               
change the statute of limitations period to 60 days.                                                                            
                                                                                                                                
REPRESENTATIVE  ANDERSON  surmised  that the  question  could  be                                                               
viewed as, "Are  we restricting rights as we make  this policy on                                                               
the 60  day versus other  [amounts] of time?"   He opined  that a                                                               
60-day  statute  of  limitations  period  will  not  infringe  on                                                               
someone's substantive rights; rather,  it's really a timing issue                                                               
specifically.     He   also  opined   that  shorter   statute  of                                                               
limitations periods  for things  like redistricting  and election                                                               
law challenges  are appropriate.   So in terms of  public policy,                                                               
it's important to  consider the potential cost and  harm that can                                                               
occur as a result of dilatory  litigation.  He concluded, "At the                                                               
end of the day, we really have  to come [up] with a number that's                                                               
parallel  to other  administrative  timelines, and  I think  this                                                               
fits. ..."                                                                                                                      
                                                                                                                                
11:03:12 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GARA again  remarked on  how long  it can  take a                                                               
credible private  attorney to  decide whether to  even take  on a                                                               
case.                                                                                                                           
                                                                                                                                
MR. BALDWIN offered his understanding  that if a potential client                                                               
has a  deadline, a  lawyer does  what he/she  can to  decide that                                                               
question quickly.                                                                                                               
                                                                                                                                
REPRESENTATIVE GARA  said it  is very common  to research  a case                                                               
before taking it and common to  take more than a month performing                                                               
such research.   He said he wants the regular  citizen to be able                                                               
to represent his/her own interests.                                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG  predicted that  those who bring  a suit                                                               
will be in  a far weaker financial position  than those defending                                                               
against such  litigation.  Once a  suit is filed, the  case can't                                                               
be  dismissed  without  either  an   order  of  the  court  or  a                                                               
stipulation of  the parties,  and a  party can't  withdraw itself                                                               
from the suit  without the court's permission.  So  once a lawyer                                                               
signs a  pleading, he/she is  "in" for  the duration and  will be                                                               
arrayed against  some of the  biggest corporations in  the entire                                                               
world.  An attorney  in such a case will take it on  as a type of                                                               
a  public interest  case, and  will be  paid, if  at all,  only a                                                               
modest  amount.   Hence it  will  be very  difficult to  assemble                                                               
anyone  willing to  take  on  such a  case  in  order to  protect                                                               
someone's constitutional rights.                                                                                                
                                                                                                                                
CHAIR McGUIRE  noted that there is  only a difference of  60 days                                                               
between the language  currently in the bill and what  it could be                                                               
changed to via Conceptual Amendment 5.                                                                                          
                                                                                                                                
REPRESENTATIVE   GRUENBERG  said   that   to   ensure  that   the                                                               
constitution  is followed,  it will  take  more than  60 days  to                                                               
determine whether a suit should be  filed and whether one has the                                                               
resources to litigate a case.                                                                                                   
                                                                                                                                
CHAIR McGUIRE recalled that there  have been other discussions in                                                               
the House  Judiciary Standing Committee regarding  what the right                                                               
number  of days  is for  a statute  of limitations,  and surmised                                                               
that for  each type of  case, regardless  of how long  the period                                                               
is,  there will  likely be  someone who  falls outside  of what's                                                               
provided for.   The committee  is attempting to strike  a balance                                                               
between  the need  to resolve  issues surrounding  this important                                                               
project  quickly and  the  need  to provide  the  public with  an                                                               
opportunity to challenge aspects of  the project.  She reiterated                                                               
her  belief  that  60  days   will  be  sufficient  because  that                                                               
timeframe  begins  after the  contract  is  executed, which  will                                                               
itself  be   after  an  extensive   public  comment   period  and                                                               
legislative hearings  as well as extensive  press coverage; "this                                                               
is  not  something  that  is  going  to  creep  up  and  surprise                                                               
individuals ...."                                                                                                               
                                                                                                                                
11:12:53 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG  argued,  however,   that  there  is  a                                                               
difference between knowing about  an issue and assembling members                                                               
of a  litigation team,  the shear logistics  of which  won't work                                                               
for one person to do [in 60 days].                                                                                              
                                                                                                                                
CHAIR McGUIRE  noted that the laws  they pass on the  various gas                                                               
pipeline  issues  will be  laws  that  exist beyond  the  current                                                               
administration,  and so  it is  important to  set up  a structure                                                               
that will encourage  people to come to the table  and build a gas                                                               
pipeline, and although  there will be challenges  to any contract                                                               
that's  entered into,  the legislature  must  provide a  specific                                                               
timeframe after which challenges will  not be allowed in order to                                                               
give the  parties to  the contract some  certainty that  they can                                                               
proceed with the project.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GRUENBERG clarified  that his  point is  that the                                                               
120-day figure was arrived at  by the conservative members of the                                                               
Senate,  and so  in  order to  avoid the  delay  of a  conference                                                               
committee, they should consider retaining that figure.                                                                          
                                                                                                                                
REPRESENTATIVE WILSON  offered her  belief that a  60-day statute                                                               
of  limitations  period  will  be  sufficient  because  "regular"                                                               
attorneys won't even consider taking on such litigation.                                                                        
                                                                                                                                
REPRESENTATIVE COGHILL,  surmising that those who  are interested                                                               
in  bringing a  challenge  have probably  already begun  amassing                                                               
information from  as far  back as  a year ago,  said he  has been                                                               
convinced that  the commencement  of an action  is an  easy task,                                                               
and that once  the action is commenced,  it is not as  if it will                                                               
die when that  60-day period is up; instead, an  action need only                                                               
be  commenced within  that timeframe,  which he  considers to  be                                                               
adequate.                                                                                                                       
                                                                                                                                
11:20:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GARA,  on the issue  of media  coverage, suggested                                                               
that that  will not be  sufficient to inform the  average citizen                                                               
of what  he/she needs  to know  in order  to determine  whether a                                                               
challenge should be  brought.  He said that if  left at 120 days,                                                               
there  is some  chance that  a regular  citizen will  be able  to                                                               
enter into  the process, whereas  60 days does more  to guarantee                                                               
that fewer  people will  be able to  participate in  the process,                                                               
leaving  challenges  to  be  brought  only  by  special  interest                                                               
groups.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  COGHILL  opined  that   the  120-day  statute  of                                                               
limitations was sufficient  when it pertained to  a contract that                                                               
the governor could  enter into without any  public input, whereas                                                               
the  proposed ASGF  Contract is  different in  that it  will have                                                               
public input and legislative review.                                                                                            
                                                                                                                                
CHAIR  McGUIRE,  too, remarked  on  the  fact  that Alaska  is  a                                                               
"notice pleading state" rather than a "code pleading state."                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG predicted that  the challenges will come                                                               
from those  who feel  that the legislature  is giving  its taxing                                                               
power away  for the  next 30-45  years, those  that will  be most                                                               
concerned that the state is getting  its fair share of taxes over                                                               
the next  30-45 years.  He  surmised that those who  will be most                                                               
concerned  with this  issue will  be the  tax payers  [of Alaska]                                                               
because Conceptual Amendment  5 proposes to decrease  the time in                                                               
which  tax  payers  can  find  someone to  represent  them  in  a                                                               
challenge.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL  relayed  that even  before  the  regular                                                               
session started  in January he'd  heard lawyers saying  that they                                                               
would be  prepared to  bring a suit  should the  contract contain                                                               
items  they don't  favor,  and even  some  regular citizens  have                                                               
indicted  to  him  that  they are  already  studying  the  issues                                                               
involved.                                                                                                                       
                                                                                                                                
11:26:27 AM                                                                                                                   
                                                                                                                                
A roll call  vote was taken.   Representatives Anderson, Coghill,                                                               
Kott,  McGuire,   and  Wilson   voted  in  favor   of  Conceptual                                                               
Amendment 5.   Representatives Gara  and Gruenberg  voted against                                                               
it.  Therefore,  Conceptual Amendment 5 was adopted by  a vote of                                                               
5-2.                                                                                                                            
                                                                                                                                
REPRESENTATIVE  GARA asked  for a  copy of  the "talking  points"                                                               
that  the  administration  has  provided  other  members  of  the                                                               
committee.                                                                                                                      
                                                                                                                                
CHAIR McGUIRE agreed to provide him with a copy.                                                                                
                                                                                                                                
11:27:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KOTT  moved to report CSSB  2002(JUD), as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying zero  fiscal notes.   There being no  objection, HCS                                                               
CSSB  2002(JUD) was  reported from  the House  Judiciary Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG  indicated that in the  committee report                                                               
he would be recommending that the bill be amended.                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The  House Judiciary  Standing Committee  was  recessed at  11:28                                                               
a.m.  to  a   call  of  the  chair.    [The   meeting  was  never                                                               
reconvened.]                                                                                                                    

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