00           CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 86(JUD)                                                         
01 "An Act relating to civil liability for malicious claims against state permitted projects;                              
02 and providing for an effective date."                                                                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 09.68 is amended by adding a new section to read:                                                 
05            Sec. 09.68.050.  Civil liability for malicious claim against state permitted                               
06       project.  (a) A person who initiates or maintains a malicious claim against a state                             
07       permitted project is, in addition to any other penalty or sanction provided by law,                               
08       liable in a civil action to the permittee or owner of the project for all of the following:                       
09                 (1)  actual damages suffered by the permittee or owner of the project as                                
10       a result of the malicious claim, including                                                                        
11                      (A)  wages and salaries paid to employees or contractors idled                                     
12            or put to nonproductive labor as a result of prosecution of the malicious claim;                             
13            and                                                                                                          
14                      (B)  increased material costs caused by prosecution of the                                         

01            malicious claim; and                                                                                         
02                 (2)  incidental or consequential damages arising under contracts                                        
03       associated with the project that were caused by prosecution of the malicious claim.                               
04            (b)  The liability of a person for damages under this section is in addition to                              
05       liability for an award of reasonable attorney fees and costs that may be made to a                                
06       prevailing party under the Alaska Rules of Civil Procedure.                                                       
07            (c)  For purposes of this section, a person "initiates or maintains a malicious                              
08       claim against a state permitted project" if                                                                       
09                 (1)  the person initiates or maintains a legal or administrative claim,                                 
10       including an original claim, a counterclaim, or a cross-claim, against a project or                               
11       activity in the state requiring one or more permits, authorizations, or approvals from a                          
12       state agency;                                                                                                     
13                 (2)  the claim is rejected by a court or administrative tribunal of                                     
14       competent jurisdiction or otherwise terminated adverse to the person;                                             
15                 (3)  the claim is initiated or maintained in bad faith for an end other                                 
16       than the end it was designed to accomplish;                                                                       
17                 (4)  the person acts with malice in initiating or maintaining the claim;                                
18       and                                                                                                               
19                 (5)  the permittee or owner of the project is damaged by the initiation or                              
20       maintenance of the claim.                                                                                         
21    * Sec. 2.  This Act takes effect immediately under AS 01.10.070(c).