Legislature(1993 - 1994)

04/21/1993 01:00 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
               HOUSE JUDICIARY STANDING COMMITTEE                              
                         April 21, 1993                                        
                            1:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Brian Porter, Chairman                                                  
  Rep. Jeannette James, Vice-Chair                                             
  Rep. Pete Kott                                                               
  Rep. Gail Phillips                                                           
  Rep. Joe Green                                                               
  Rep. Cliff Davidson                                                          
  Rep. Jim Nordlund                                                            
                                                                               
  OTHER MEMBERS PRESENT                                                        
                                                                               
  Rep. Jerry Mackie                                                            
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SB 178    "An Act relating to civil nuisance actions."                       
                                                                               
            HOUSE JUDICIARY COMMITTEE SUBSTITUTE PASSED OUT                    
            WITH NO RECOMMENDATION                                             
                                                                               
  SB 173    "An Act relating to health insurance for small                     
            employers; and providing for an effective date."                   
                                                                               
            NOT HEARD                                                          
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  CHIP THOMA                                                                   
  Juneau, Alaska 99801                                                         
  Position Statement:  Opposed SB 178                                          
                                                                               
  DAVE MATTHEWS                                                                
  Acting Manager                                                               
  Alaska Forest Association                                                    
  111 Stedman, Suite 200                                                       
  Ketchikan, Alaska 99901                                                      
  Phone:  225-6114                                                             
  Position Statement:  Supported SB 178                                        
                                                                               
  JAMES F. CLARK                                                               
  Robertson, Monagle & Eastaugh                                                
  Attorneys at Law                                                             
  P.O. Box 21211                                                               
  Juneau, Alaska 99802                                                         
  Phone:  586-3340                                                             
  Position Statement:  Supported SB 178                                        
                                                                               
  PETER EHRHARDT                                                               
  35401 Spur Highway                                                           
  Soldotna, Alaska 99669                                                       
  Phone:  262-9164                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  CHUCK ROBINSON                                                               
  35401 Spur Highway                                                           
  Soldotna, Alaska 99669                                                       
  Phone:  262-9164                                                             
  Position Statement:  Opposed SB 178                                          
  MATTHEW DONOHOE                                                              
  P.O. Box 2993                                                                
  Sitka, Alaska 99835                                                          
  Phone:  747-6467                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  DON MULLER                                                                   
  P.O. Box 1042                                                                
  Sitka, Alaska 99835                                                          
  Phone:  747-6734                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  CHUCK ACHBERGER                                                              
  Alliance for Juneau's Future                                                 
  P.O. Box 21143                                                               
  Juneau, Alaska 99802                                                         
  Phone:  586-2495                                                             
  Position Statement:  Supported SB 178                                        
                                                                               
  MARY FORBES                                                                  
  Kodiak Audubon Society                                                       
  418 Mill Bay Road                                                            
  Kodiak, Alaska 99615                                                         
  Phone:  486-2685                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  JAMIE PARSONS                                                                
  Alaska State Chamber of Commerce                                             
  217 Second Street, #201                                                      
  Juneau, Alaska 99801                                                         
  Phone:  586-2323                                                             
  Position Statement:  Supported SB 178                                        
                                                                               
  VALORIE NELSON                                                               
  P.O. Box 1356                                                                
  Sitka, Alaska 99835                                                          
  Phone:  747-5030                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  RONN DICK                                                                    
  801 Lincoln Street                                                           
  Sitka, Alaska 99835                                                          
  Phone:  747-2505                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  ROBERT ELLIS                                                                 
  P.O. Box 2966                                                                
  Sitka, Alaska 99835                                                          
  Phone:  747-8950                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  NANCY LETHCOE                                                                
  P.O. Box 1353                                                                
  Valdez, Alaska 99686                                                         
  Phone:  835-4300                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  STEVE BORRELL                                                                
  Alaska Miners Association                                                    
  501 West Northern Lights Boulevard                                           
  Anchorage, Alaska 99503                                                      
  Phone:  276-0347                                                             
  Position Statement:  Supported SB 178                                        
                                                                               
  JEFFREY TROUTT                                                               
  Birch, Horton, Bittner & Cherot                                              
  One Sealaska Plaza, Suite 301                                                
  Juneau, Alaska 99801                                                         
  Phone:  586-2890                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  AVRUM GROSS                                                                  
  Gross & Burke                                                                
  424 North Franklin Street                                                    
  Juneau, Alaska 99801                                                         
  Phone:  586-1786                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  BOB LESHER                                                                   
  P.O. Box 3                                                                   
  Pelican, Alaska 99832                                                        
  Phone:  735-2276                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  DOUG MERTZ                                                                   
  319 Seward Street                                                            
  Juneau, Alaska 99801                                                         
  Phone:  586-4004                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  SUSAN STURM                                                                  
  617 Katlian, #B-23                                                           
  Sitka, Alaska 99835                                                          
  Phone:  747-5990                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  DAVID KATZ                                                                   
  Tongass Conservation Society                                                 
  P.O. Box 3377                                                                
  Ketchikan, Alaska 99901                                                      
  Phone:  225-5827                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  CAROLYN NICHOLS                                                              
  305 Islander Drive                                                           
  Sitka, Alaska 99835                                                          
  Phone:  747-3146                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  NATASHA CALVIN                                                               
  P.O. Box 2966                                                                
  Sitka, Alaska 99835                                                          
  Phone:  747-8950                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  VANCE SANDERS                                                                
  424 North Franklin Street                                                    
  Juneau, Alaska 99801                                                         
  Phone:  586-1786                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  PAULA TERREL                                                                 
  Thane Neighborhood Association                                               
  5025 Thane Road                                                              
  Juneau, Alaska 99801                                                         
  Phone:  586-3451                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  LAURIE FERGUSON CRAIG                                                        
  Alaskans for Juneau                                                          
  P.O. Box 22428                                                               
  Juneau, Alaska 99802                                                         
  Phone:  463-5065                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  RICHARD HOFFMAN                                                              
  5025 Thane Road                                                              
  Juneau, Alaska 99801                                                         
  Phone:  586-3451                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  ROBERT ENGELBRECHT                                                           
  Temsco Helicopters                                                           
  1650 Maplesden Way                                                           
  Juneau, Alaska 99801                                                         
  Phone:  789-9501                                                             
  Position Statement:  Discussed SB 178                                        
                                                                               
  RUSSELL HEATH                                                                
  Alaska Environmental Lobby                                                   
  P.O. Box 22151                                                               
  Juneau, Alaska 99802                                                         
  Phone:  463-3366                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  ROBERT LOESCHER                                                              
  Sealaska Corporation                                                         
  One Sealaska Plaza                                                           
  Juneau, Alaska 99801                                                         
  Phone:  586-1512                                                             
  Position Statement:  Discussed SB 178                                        
                                                                               
  FLORIAN SEVER                                                                
  1706 Edgecumbe Drive                                                         
  Sitka, Alaska 99835                                                          
  Phone:  747-8466                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  PAM BRODIE                                                                   
  Sierra Club                                                                  
  241 East Fifth Avenue, #205                                                  
  Anchorage, Alaska 99501                                                      
  Phone:  276-4048                                                             
  Position Statement:  Opposed SB 178                                          
                                                                               
  GAYLE HORETSKI                                                               
  Committee Counsel                                                            
  House Judiciary Committee                                                    
  Capitol Building, Room 120                                                   
  Juneau, Alaska 99801-1182                                                    
  Phone:  465-6841                                                             
  Position Statement:  Discussed SB 178                                        
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  SB 178                                                                
  SHORT TITLE: CIVIL NUISANCE ACTIONS                                          
  BILL VERSION: CSSB 178(JUD)AM (EFD FLD)                                      
  SPONSOR(S): JUDICIARY                                                        
                                                                               
  TITLE: "An Act relating to civil nuisance actions; and                       
  providing for an effective date."                                            
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  03/31/93      1006    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/31/93      1006    (S)   JUDICIARY                                        
  04/05/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  04/06/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  04/12/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  04/13/93      1334    (S)   JUD RPT  CS  3DP 1NR                             
                              SAME TITLE                                       
  04/13/93      1334    (S)   ZERO FISCAL NOTE TO SB & CS                      
                              (LAW)                                            
  04/15/93      1406    (S)   RULES   3CAL 1DNP  4/15/93                       
  04/15/93      1410    (S)   READ THE SECOND TIME                             
  04/15/93      1410    (S)   JUD  CS ADOPTED UNAN CONSENT                     
  04/15/93      1411    (S)   ADVANCE TO 3RD RDG FAILED                        
                              Y11 N9                                           
  04/15/93      1411    (S)   THIRD READING 4/16 CALENDAR                      
  04/15/93      1420    (S)   RETURN TO FINANCE  FAILED Y9                     
                              N11                                              
  04/16/93      1446    (S)   READ THE THIRD TIME  CSSB
                              178(JUD)                                         
  04/16/93      1447    (S)   RETURN TO JUDICIARY  FAILED Y9                   
                              N11                                              
  04/16/93      1447    (S)   PASSED Y11 N9                                    
  04/16/93      1448    (S)   EFFECTIVE DATE FAILED Y11 N9                     
  04/16/93      1448    (S)   PHILLIPS  NOTICE OF                              
                              RECONSIDERATION                                  
  04/18/93      1461    (S)   RECON TAKEN UP-IN THIRD READING                  
  04/18/93      1462    (S)   HELD ON RECONSIDERATION TO                       
                              4/19/93                                          
  04/19/93      1547    (S)   RECON TAKEN UP-IN THIRD READING                  
  04/19/93      1548    (S)   AM NO 1 NOT OFFERED                              
  04/19/93      1548    (S)   RETURN TO SECOND FOR AM 2                        
                              UNAN CONSENT                                     
  04/19/93      1548    (S)   AM NO  2     MOVED BY TAYLOR                     
  04/19/93      1549    (S)   DIVIDE AM 2 INTO 3 PARTS                         
                              UNAN CONSENT                                     
  04/19/93      1549    (S)   AM NO 2 PART A  FLD  Y- N20                      
  04/19/93      1549    (S)   AM NO 2 PART B  ADPTD  UNAN                      
                              CONSENT                                          
  04/19/93      1549    (S)   AM NO 2 PART C  ADPTD  UNAN                      
                              CONSENT                                          
  04/19/93      1549    (S)   AUTOMATICALLY IN THIRD READING                   
  04/11/93      3550    (S)   AM NO 3 NOT OFFERED                              
  04/19/93      1550    (S)   RETURN TO SECOND FOR AM 4                        
                              UNAN CONSENT                                     
  04/19/93      1550    (S)   AM NO 4      ADOPTED UNAN                        
                              CONSENT                                          
  04/19/93      1550    (S)   AUTOMATICALLY IN THIRD READING                   
  04/19/93      1550    (S)   RETURN TO SECOND FOR AM 5                        
                              FLD Y10 N10                                      
  04/19/93      1551    (S)   RETURN TO SECOND FOR AM 6                        
                              UNAN CONSENT                                     
  04/19/93      1552    (S)   AM NO 6      MOVED BY RIEGER                     
  04/19/93      1552    (S)   AM TO AM 6   ADOPTED UNAN                        
                              CONSENT                                          
  04/19/93      1552    (S)   AM NO 6 AS AM  ADOPTED Y11 N9                    
  04/19/93      1552    (S)   AUTOMATICALLY IN THIRD READING                   
  04/19/93      1552    (S)   PASSED ON RECONSIDERATION                        
                              Y11 N9                                           
  04/19/93      1552    (S)   EFFECTIVE DATE FAILED Y11 N9                     
  04/19/93      1555    (S)   TRANSMITTED TO (H)                               
  04/20/93      1346    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/20/93      1346    (H)   JUDICIARY, FINANCE                               
  04/21/93              (H)   JUD AT 01:00 PM CAPITOL 120                      
                                                                               
                                                                               
  BILL:  SB 173                                                                
  SHORT TITLE: GROUP HEALTH INS. FOR SMALL EMPLOYERS                           
  BILL VERSION: CSSB 173(FIN)                                                  
  SPONSOR(S): SENATOR(S) RIEGER,Pearce,Salo,Kelly,Phillips;                    
  REPRESENTATIVE(S)B.Davis,Nordlund,Ulmer,Brice                                
                                                                               
  TITLE: "An Act relating to health insurance for small                        
  employers; and providing for an effective date."                             
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  03/25/93       946    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/25/93       946    (S)   LABOR & COMMERCE, FINANCE                        
  03/30/93              (S)   L&C AT 01:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/30/93              (S)   MINUTE(L&C)                                      
  03/30/93              (S)   MINUTE(L&C)                                      
  03/31/93      1003    (S)   L&C RPT  4DP 1AM                                 
  03/31/93      1003    (S)   ZERO FISCAL NOTE (DCED)                          
  04/08/93              (S)   FIN AT 09:00 AM SENATE FINANCE                   
                              ROOM 518                                         
  04/08/93      1269    (S)   FIN RPT  CS  5DP SAME TITLE                      
  04/08/93      1269    (S)   PREVIOUS ZERO FN APPLIES TO CS                   
  04/12/93      1307    (S)   RULES TO CALENDAR  4/12/93                       
  04/12/93      1309    (S)   READ THE SECOND TIME                             
  04/12/93      1309    (S)   FIN  CS ADOPTED UNAN CONSENT                     
  04/12/93      1310    (S)   AM NO  1 FAILED  Y5 N11 E3 A1                    
  04/12/93      1311    (S)   AM NO  2 FAILED  Y5 N11 E3 A1                    
  04/12/93      1311    (S)   AM NO  3 FAILED  Y6 N11 E3                       
  04/12/93      1312    (S)   AM NO  4 WITHDRAWN                               
  04/12/93      1313    (S)   AM NO  5 FAILED  Y5 N11 E3 A1                    
  04/12/93      1313    (S)   FAILED TO ADVANCE TO 3RD RDG                     
                              Y11 N6 E3                                        
  04/12/93      1313    (S)   THIRD READING 4/13 CALENDAR                      
  04/13/93      1338    (S)   READ THE THIRD TIME  CSSB
                              173(FIN)                                         
  04/13/93      1338    (S)   RET TO SECOND FOR AM 6 FAILED                    
                              Y10 N10                                          
  04/13/93      1339    (S)   PASSED Y19 N1                                    
  04/13/93      1339    (S)   EFFECTIVE DATE CLAUSE VOTE SAME                  
                              AS PSG                                           
  04/13/93      1339    (S)   Adams NOTICE OF RECONSIDERATION                  
  04/14/93      1393    (S)   RECON TAKEN UP-IN THIRD READING                  
  04/14/93      1394    (S)   PASSED ON RECON Y19 N1                           
  04/14/93      1394    (S)   EFFECTIVE DATES VOTE SAME AS                     
                              PASSAGE                                          
  04/14/93      1396    (S)   TRANSMITTED TO (H)                               
  04/15/93      1249    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/15/93      1250    (H)   JUDICIARY, FINANCE                               
  04/15/93      1272    (H)   CROSS SPONSOR(S):B.DAVIS                         
  04/16/93      1303    (H)   CROSS SPONSOR(S):NORDLUND,ULMER                  
  04/19/93      1341    (H)   CROSS SPONSOR(S):BRICE                           
  04/21/93              (H)   JUD AT 01:00 PM CAPITOL 120                      
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-66, SIDE A                                                           
  Number 000                                                                   
                                                                               
  The House Judiciary Standing Committee meeting was called to                 
  order at 1:45 p.m. on April 21, 1993.  A quorum was not                      
  present; therefore, a work session remained in progress                      
  until a quorum was established.                                              
  SB 178 CIVIL NUISANCE ACTIONS                                                
                                                                               
  CHAIRMAN PORTER announced that the committee would take up                   
  SB 178 first.  He noted that the meeting was being                           
  teleconferenced.                                                             
                                                                               
  CHAIRMAN PORTER stated that the bill before the committee                    
  was the Senate-passed version of SB 178, as amended on the                   
  Senate floor.  He suggested that those testifying on SB 178                  
  consider the significant amendments which had been made to                   
  the original bill.  He mentioned that he had heard people                    
  express concern that some permits were not issued after a                    
  public hearing process, making it difficult for individuals                  
  to be aware of problems related to the permits.  He stated                   
  that SB 178 had been amended on the Senate floor so that the                 
  prohibition against civil actions would not apply to permits                 
  or licenses issued without a public hearing.                                 
                                                                               
  (Rep. Nordlund arrived at 1:49 p.m., establishing a quorum                   
  of the committee.)                                                           
                                                                               
  Number 110                                                                   
                                                                               
  CHAIRMAN PORTER noted that nuisances involving nuclear waste                 
  had been removed from SB 178's provisions as well.  He said                  
  that SB 178 pertained to specific occupations, structures                    
  and acts for which a permit was issued.  He cited an example                 
  regarding a veterinary clinic.  The clinic could not be sued                 
  over a nuisance if someone simply did not like the fact that                 
  the clinic was located where it was.  If, however, the                       
  clinic let its dogs out at night, and the dogs barked and                    
  disturbed the clinic's neighbors, then a nuisance suit could                 
  be filed, he said.  He then turned to testimony from those                   
  in Juneau and those at the teleconference sites.  He asked                   
  participants to limit their testimony to two minutes.                        
                                                                               
  Number 142                                                                   
                                                                               
  CHIP THOMA testified in opposition to SB 178, as amended on                  
  the Senate floor.  He said that the bill originated because                  
  of a lawsuit filed by a Mr. Larry Edwards against the Alaska                 
  Pulp Corporation (APC).  He asserted that the bill was                       
  designed to protect the APC pulp mill in Sitka, even if the                  
  mill violated its permit, which he said the mill had been                    
  doing for the last two decades.  He stated that, to his                      
  knowledge, no other state imposed similar limitations on                     
  civil actions.  He commented that the bill was probably                      
  unconstitutional because it denied due process to property                   
  owners.                                                                      
                                                                               
  Number 160                                                                   
                                                                               
  MR. THOMA said that SB 178 constituted a "taking" of private                 
  property rights, and might make the state liable for the                     
  costs of injury to property caused by permitted activities.                  
  He called the members' attention to a letter from Lloyd                      
  Miller, an attorney representing many plaintiffs in the                      
  Exxon Valdez case.  He said that SB 178 used permits to                      
  immunize polluters from liability, and expressed his opinion                 
  that that should not occur.  He commented that the U.S.                      
  Supreme Court, and the Sixth and Ninth Circuit Courts of                     
  Appeals had struck down legislation similar to SB 178.                       
                                                                               
  Number 200                                                                   
                                                                               
  MR. THOMA cited a 1987 U.S. Supreme Court ruling which found                 
  that a private nuisance claim against a paper mill was not                   
  preempted by the fact that the mill operated under a federal                 
  water pollution permit.  He submitted to the committee a                     
  memorandum from Mr. Jim Clark to Attorney General Charlie                    
  Cole, dated March 24, 1993, as well as a recent article from                 
  the Sitka Sentinel.  He expressed his opinion that the                       
  federal Environmental Protection Agency (EPA) would take a                   
  "strong and significant interest" in SB 178.                                 
                                                                               
  (Rep. Davidson joined the meeting at 1:55 p.m.)                              
                                                                               
  Number 214                                                                   
                                                                               
  DAVE MATTHEWS, representing the ALASKA FOREST ASSOCIATION                    
  (AFA), noted that Mr. Jim Clark would be speaking on AFA's                   
  behalf in support of SB 178.                                                 
                                                                               
  Number 216                                                                   
                                                                               
  MR. CLARK stated that SB 178 did not provide a wholesale                     
  exemption from nuisance lawsuits.  What the bill did, he                     
  said, was to redefine "nuisance" to outline what was and                     
  what was not a reasonable use of property.  He said SB 178                   
  provided that, after a project went through the public                       
  permitting process, a permit-holder would be immune from                     
  nuisance suits stemming from actions the permit-holder was                   
  allowed to take under the permit.                                            
                                                                               
  MR. CLARK commented that the legislature and the congress                    
  passed laws which defined property rights, including                         
  environmental restrictions which prevented people from using                 
  their property in certain ways.  The courts, he said, had                    
  found that these types of regulations were reasonable                        
  restrictions on private property owners and did not                          
  constitute a "taking" by the government.  Senate Bill 178,                   
  he said, was the other side of the coin; it established that                 
  it was reasonable for a permit-holder to do what his or her                  
  permit allowed.                                                              
                                                                               
  MR. CLARK said that for those who violated their permits,                    
  nuisance suits could be filed.  He stated that court cases                   
  previously mentioned dealt with wholesale exemptions from                    
  all nuisance suits.  Senate Bill 178 did not accomplish                      
  that, he argued.  He addressed a concern that SB 178 would                   
  cause the state, not the permit-holders, to be the target of                 
  nuisance suits.  He said that the only theory under which a                  
  person could sue the state over a nuisance was "inverse                      
  condemnation."  Inverse condemnation suits that had been                     
  brought by mining and timber interests claiming that                         
  environmental regulations constituted a "taking" had                         
  uniformly lost, he noted.  He acknowledged that someone                      
  might file an inverse condemnation action against the state,                 
  but said that the threat of inverse condemnation suits had                   
  never stopped the Alaska Legislature or the U.S. Congress                    
  from passing environmental laws.                                             
                                                                               
  MR. CLARK asked the committee to consider three amendments                   
  which he said would improve SB 178.  He suggested that the                   
  word "valid" be added on page 1, line 11, just before the                    
  word "statute."  On page 1, line 14, he suggested replacing                  
  "decision" with "judgment."  And on page 2, line 9, he                       
  recommended deleting the word "real."  He said that he had                   
  spoken with officials from the Attorney General's office who                 
  felt that these three amendments would improve SB 178.                       
                                                                               
  (Rep. Phillips joined the meeting at 2:00 p.m.)                              
                                                                               
  REP. KOTT asked Mr. Clark if he felt that due process                        
  requirements were fulfilled during the public permitting                     
  process.                                                                     
                                                                               
  MR. CLARK replied that he believed so.  He called SB 178 a                   
  "minimalist" provision.  All that SB 178 did, he added, was                  
  to say that governmental agencies, not the courts, would                     
  decide what activities were deemed to be in the public's                     
  interest.                                                                    
                                                                               
  Number 339                                                                   
                                                                               
  REP. KOTT asked Mr. Clark to address why he wished to amend                  
  SB 178 so as to refer to a "valid" statute or regulation.                    
                                                                               
  Number 343                                                                   
                                                                               
  MR. CLARK stated that the Attorney General's office proposed                 
  that particular change.  In his opinion, it did not change                   
  the effect of the bill.                                                      
                                                                               
  Number 350                                                                   
                                                                               
  REP. KOTT asked Mr. Clark if there were "invalid" statutes.                  
                                                                               
  Number 353                                                                   
                                                                               
  MR. CLARK said that he agreed with Rep. Kott.                                
                                                                               
  Number 356                                                                   
                                                                               
  REP. DAVIDSON took issue with Mr. Clark's contention that                    
  changing a definition was "no big deal" from a legal                         
  standpoint.  He expressed his disagreement with Mr. Clark.                   
  He asked Mr. Clark to explain why inverse condemnation cases                 
  which had been filed on behalf of his clients had uniformly                  
  lost.                                                                        
                                                                               
  Number 367                                                                   
                                                                               
  MR. CLARK responded that the theory of inverse condemnation                  
  had not been "bought" by the courts.  He said that if                        
  someone chose to sue the state on the theory of inverse                      
  condemnation, the suit would probably be a "loser," based on                 
  the outcome of other inverse condemnation suits.  He                         
  asserted that such a case might be filed once, and then                      
  likely would not happen again.                                               
                                                                               
  Number 384                                                                   
                                                                               
  REP. NORDLUND asked how a damaged party could collect if he                  
  or she were damaged by an individual or a company that did                   
  meet the requirements of a permit.                                           
                                                                               
  Number 396                                                                   
                                                                               
  MR. CLARK commented that it would be difficult to presume                    
  damages from a permitted activity.  He noted that in order                   
  to get a clean air act permit in Alaska, a person would have                 
  to show that primary (human health) and secondary                            
  (vegetation and wildlife) ambient air standards would be                     
  met.  He said that safety margins had been built into those                  
  standards.  The standards were created to ensure that the                    
  public would not be harmed.  Therefore, he said, it would be                 
  difficult to prove that harm resulted from a permitted                       
  activity.  For that reason, he added, SB 178 was justified.                  
  Bringing a lawsuit after an activity had been permitted was                  
  "harassment for harassment's sake," he claimed.                              
                                                                               
  Number 423                                                                   
                                                                               
  REP. NORDLUND commented that it was not hard to imagine a                    
  situation in which a person's property truly was damaged by                  
  a permitted activity, with the result being an inability to                  
  sell the property at a fair price.  Someone should be made                   
  to pay for such damages, he said, whether it be the permit-                  
  holder or the state.                                                         
                                                                               
  Number 432                                                                   
                                                                               
  MR. CLARK argued that people who were burdened with                          
  environmental regulations also had their property value                      
  diminished.  The courts had decided that that did not give                   
  rise to just compensation, he said.  The philosophy behind                   
  SB 178 was that if it was reasonable for government to put                   
  environmental restrictions on private property without                       
  compensation, then it was also reasonable to protect permit-                 
  holders to the extent that they were complying with their                    
  permits.  He stated that SB 178 would encourage permit-                      
  holders to comply with the conditions of their permits.                      
                                                                               
  (Chairman Porter acknowledged the arrival of Rep. Jerry                      
  Mackie.)                                                                     
                                                                               
  REP. GREEN asked Mr. Clark if the Attorney General supported                 
  SB 178.                                                                      
                                                                               
  Number 472                                                                   
                                                                               
  MR. CLARK responded that the Attorney General was reserving                  
  judgment on the bill, but felt that the three proposed                       
  amendments would improve SB 178.                                             
                                                                               
  Number 476                                                                   
                                                                               
  REP. GREEN mentioned that there had apparently been some                     
  differences of opinion between Mr. Clark and the Attorney                    
  General.  He asked Mr. Clark to elaborate on those                           
  differences.                                                                 
                                                                               
  Number 481                                                                   
                                                                               
  MR. CLARK replied that the Attorney General was concerned                    
  about several court cases interpreting laws similar to SB
  178 in other jurisdictions.  However, he said that those                     
  cases involved situations in which wholesale exemptions from                 
  nuisance suits were provided.  But, he said, SB 178 would                    
  only apply to situations in which a public process had been                  
  followed, a permit had been issued, and the conditions of                    
  the permit were met.  He expressed his opinion that SB 178                   
  would be found constitutional, as it was very narrow in                      
  scope.                                                                       
                                                                               
  Number 509                                                                   
                                                                               
  PETER EHRHARDT testified via teleconference from                             
  Kenai/Soldotna.  He said that he was an attorney                             
  representing Mr. Larry Edwards in his nuisance case against                  
  the APC mill.  He said that he also represented a local                      
  Native corporation which was very concerned about SB 178.                    
  He expressed his opinion that Mr. Clark was arguing that the                 
  public hearing process could be substituted for                              
  constitutional protections, because "what's good for the                     
  gander is good for the goose."  He said that Mr. Clark's                     
  argument was fatally flawed.                                                 
                                                                               
  MR. EHRHARDT commented that the level of hearings that                       
  occurred before the state decided to take the property                       
  rights of the APC mill was immeasurably greater than the                     
  level of hearings that occurred before the state decided to                  
  take the property rights of someone whose property was                       
  damaged by the nuisance created by the pulp mill or another                  
  entity.                                                                      
                                                                               
  MR. EHRHARDT mentioned that the legislature's Citizen's                      
  Oversight Council on Oil and Other Hazardous Substances                      
  found that the public hearing process was fatally flawed:                    
  the public had insufficient input and impact on regulations                  
  and on decisions made by agencies.  In that light, he said,                  
  Mr. Clark's contention that the public hearing process could                 
  serve as a substitute for constitutional protections was                     
  simply wrong.                                                                
                                                                               
  MR. EHRHARDT mentioned that the bill, as written, would not                  
  apply to nuclear waste.  He said that he did not understand                  
  how nuclear waste was any worse than substances such as                      
  PCBs, benzene, or dioxin.                                                    
                                                                               
  Number 572                                                                   
                                                                               
  CHUCK ROBINSON, an attorney who worked for a law firm which                  
  represented Larry Edwards in his suit against the APC mill,                  
  testified via teleconference from Kenai/Soldotna.  He said                   
  that case law established that it was unconstitutional for a                 
  state to take away an individual's ability to bring a                        
  private nuisance claim, particularly for a non-public                        
  purpose.  He claimed that SB 178 was unconstitutional.  In                   
  response to Mr. Clark's "tit for tat" argument, he said that                 
  there was a big difference between placing restrictions on                   
  the use of property that the public believed might be                        
  harmful and the pursuit of a legal claim because someone's                   
  property was harmed.                                                         
                                                                               
  MR. ROBINSON noted that the courts, for generations, had                     
  held that as long as restrictions on the use of property                     
  were health, safety, and welfare measures intended to                        
  protect the public, and did not amount to a total                            
  confiscation of the property, then they were reasonable                      
  restrictions on property use.  He expressed an opinion that                  
  there was a big difference between that and denying an                       
  individual whose property had been harmed the right to bring                 
  a claim for recompense.  He said that if SB 178 merely                       
  changed the definition of "nuisance," then the legislation                   
  should be restricted to alter the definitions section of the                 
  law, AS 09.45.255.                                                           
                                                                               
  Number 630                                                                   
                                                                               
  MATTHEW DONOHOE testified via teleconference from Sitka.  He                 
  said that SB 178 would limit his rights to redress, through                  
  the courts, any damage occurring to his property.  He said                   
  that the bill would restrict his rights to due process.  He                  
  commented that SB 178 assumed that all permit practices were                 
  fair and correctly carried out.  He submitted that that was                  
  often untrue.  Citizens were often damaged by permitted                      
  activities, he said, and SB 178 would restrict citizens'                     
  ability to recover.                                                          
                                                                               
  Number 640                                                                   
                                                                               
  MR. DONOHOE claimed that SB 178 was a direct constitutional                  
  challenge to a property owner's due process rights.  He                      
  noted that the City of Sitka had not taken a position on the                 
  bill in any public meeting.  He said that he was not against                 
  the Sitka pulp mill, but wanted to protect his rights as a                   
  citizen and his property.                                                    
                                                                               
  Number 670                                                                   
                                                                               
  DON MULLER testified via teleconference from Sitka.  He said                 
  that he had been a business person in Sitka for 17 years;                    
  before that, he worked as a chemist for the APC mill.  He                    
  stated that SB 178 was a very clever and cunning bill.  He                   
  noted that in a democracy, the rights of an individual were                  
  supposed to be as important, or more important, than the                     
  rights of a single industry, particularly an industry that                   
  had a long history of violating laws and regulations.                        
                                                                               
  MR. MULLER said that SB 178 was obviously drafted because                    
  the APC mill did not like a particular right of individuals.                 
  He said that the mill believed that its rights outweighed                    
  the rights of individuals or the community.  He urged the                    
  committee to vote against SB 178 in the interest of                          
  democracy and the rights of citizens.                                        
                                                                               
  Number 689                                                                   
                                                                               
  CHUCK ACHBERGER, DIRECTOR OF THE ALLIANCE FOR JUNEAU'S                       
  FUTURE, said that his organization was founded four years                    
  ago to go through the "fairly simple and straightforward"                    
  process of opening the Alaska-Juneau (A-J) gold mine in                      
  Juneau.  He discussed the lengthy, arduous, and expensive                    
  public process that had occurred over the last four years.                   
  He said that there should be a point at which legal                          
  challenges stopped.  He noted that oftentimes legal recourse                 
  led to harassment.  He mentioned a belief of some people                     
  that state courts had been "bought off."  He expressed his                   
  organization's support for SB 178.                                           
                                                                               
  Number 716                                                                   
                                                                               
  REP. DAVIDSON asked Mr. Achberger to expand on his statement                 
  that Alaska's courts had been "bought off."                                  
                                                                               
  Number 722                                                                   
                                                                               
  MR. ACHBERGER replied that his comment pertained not to his                  
  own opinion, but to one expressed on the editorial page of                   
  the Juneau Empire.                                                           
                                                                               
  Number 727                                                                   
                                                                               
  REP. KOTT asked Mr. Achberger to address how important the                   
  public process and the public comment period were in the A-J                 
  permitting process.                                                          
                                                                               
  Number 734                                                                   
                                                                               
  MR. ACHBERGER replied that he felt that the public process                   
  was extremely important.  He said that the public process                    
  produced a compromise in an effort to build a better permit                  
  and a better project.  No one was perfectly happy with what                  
  the process produced, he said.                                               
                                                                               
  Number 753                                                                   
                                                                               
  MARY FORBES, representing the KODIAK AUDUBON SOCIETY,                        
  testified via teleconference from Kodiak in opposition to                    
  SB 178, as amended on the Senate floor.  She expressed                       
  concerns about the constitutionality of the bill, and                        
  whether it would constitute a "taking" by the state, thereby                 
  costing the state a great deal of money.  She mentioned the                  
  Citizens' Oversight Council's finding that the permitting                    
  process was questionable.                                                    
                                                                               
  Number 765                                                                   
                                                                               
  JAMIE PARSONS, representing the ALASKA STATE CHAMBER OF                      
  COMMERCE, testified in support of SB 178.  He said that the                  
  bill would go a long way toward reducing frivolous lawsuits                  
  and unnecessary litigation and create a more positive                        
  business development climate in the state.                                   
                                                                               
  Number 782                                                                   
                                                                               
  VALORIE NELSON testified via teleconference from Sitka in                    
  opposition to SB 178.  She said that she had a lawsuit                       
  pending which could be invalidated by the retroactivity                      
  clause of the bill.  She likened the retroactivity clause to                 
  changing the rules in the middle of a game.  She said that                   
  her lawsuit had been filed based on existing statutes and                    
  ordinances, and that she had spent a great deal of money                     
  fighting the expansion of a nonconforming use which had been                 
  allowed by government officials in Sitka.  She said that SB
  178 took away individuals' rights to protect their property.                 
                                                                               
  Number 792                                                                   
                                                                               
  RONN DICK testified via teleconference from Sitka in                         
  opposition to SB 178.  He stated that the bill violated                      
  underlying principles of justice.  He said that because the                  
  bill exempted polluters from any liability as long as they                   
  had the government's permission, it was absolutely essential                 
  that the integrity of the permitting process be untainted.                   
  That, he asserted, was not the case.  The process often                      
  involved collusion between the permitting agency and the                     
  polluter, he said, and lacked the necessary integrity.                       
                                                                               
  Number 800                                                                   
                                                                               
  MR. DICK alleged that the Department of Environmental                        
  Conservation (DEC) and the APC mill had held numerous                        
  private meetings to agree upon acceptable pollution                          
  standards.  Generally, he said, the mill informed the DEC of                 
  its current discharge levels for certain pollutants; the DEC                 
  then wrote standards so that those levels of discharge could                 
  be maintained.  He commented that the DEC often failed to                    
  enforce its standards and regulations.  He said that the EPA                 
  was considering suing the DEC over its extreme leniency                      
  toward the APC mill.  He spoke against SB 178, saying that                   
  it would prevent the public from seeking legal redress, when                 
  the state and industry were already in collusion to                          
  circumvent laws and regulations.                                             
                                                                               
  TAPE 93-66, SIDE B                                                           
  Number 000                                                                   
                                                                               
  ROBERT ELLIS testified via teleconference from Sitka in                      
  opposition to SB 178.  He said that the bill represented a                   
  further erosion of the public's right to protect itself from                 
  the actions of government and industry.  He questioned why                   
  nuclear waste was excluded from SB 178's provisions, while                   
  other toxic substances were included.  He suggested that the                 
  committee add to the exclusions any toxic elements or                        
  chemicals.  He expressed his opinion that public hearings                    
  were often a facade designed to make the public's anger go                   
  away, but resulting in no significant changes to pre-                        
  arranged deals between government and industry.                              
                                                                               
  MR. ELLIS stated that he did not understand why the                          
  legislature had omitted health -- physical destruction from                  
  chemicals, including acids and fallout -- from the bill.                     
  Also, he asked why the bill would only protect citizens of a                 
  municipality.  He said that SB 178 emphasized the importance                 
  of public participation in hearings, but penalized those                     
  people who had not attended past hearings.  He stated that                   
  he opposed the retroactivity clause of the bill.                             
                                                                               
  Number 050                                                                   
                                                                               
  NANCY LETHCOE, PRESIDENT OF THE ALASKA WILDERNESS RECREATION                 
  AND TOURISM ASSOCIATION (AWRTA), testified via                               
  teleconference from Valdez.  She said that AWRTA's members                   
  were concerned about SB 178, and asked the committee members                 
  not to pass it out of committee.  She said that there were                   
  two problems in the permitting process.  First of all,                       
  permits were often issued using data provided by industry.                   
  Because of the state's declining revenues, independent                       
  checking of that data would occur less and less often.  She                  
  expressed concern that more permits would be issued, under                   
  the pressure of economic constraints, that might lead to                     
  damage of private property.                                                  
                                                                               
  Number 075                                                                   
                                                                               
  MS. LETHCOE said that her second concern regarding the                       
  permit process was that it was very unequal.  Industry                       
  lawyers met privately with regulators during the permitting                  
  process, she said.  She indicated that she did not object to                 
  that practice, but said that citizens whose property might                   
  be affected did not have the scientific expertise, nor the                   
  lawyers, time, funding, or access to regulators which                        
  industry enjoyed during the permitting process.  It was only                 
  after permits were issued, when damage was seen, that the                    
  public recognized a problem with the permitted activity.                     
  The DEC often lacked funds to monitor compliance with                        
  permits.  The public's only recourse, she said, was through                  
  the courts, and SB 178 would deny that recourse.                             
                                                                               
  A technical problem with the teleconference network                          
  prevented Ms. Lethcoe from continuing with her testimony.                    
                                                                               
  Number 126                                                                   
                                                                               
  STEVEN BORRELL, EXECUTIVE DIRECTOR OF THE ALASKA MINERS                      
  ASSOCIATION, testified in support of SB 178.  He said that                   
  if an individual or company was conducting its business                      
  within the law, there should be nothing in statute                           
  encouraging third parties to file nuisance lawsuits against                  
  the activity.  He said that SB 178 would remove one                          
  incentive for groups and individuals to file nuisance                        
  lawsuits.  He predicted that the bill would decrease the                     
  number of suits which were filed merely to harass and stall                  
  projects.  Fewer nuisance lawsuits would mean that                           
  individual miners and mining companies would have one less                   
  "artificial uncertainty" to deal with when trying to develop                 
  a project.  He commented that passage of SB 178 would                        
  indicate to the international mining industry that Alaska                    
  was a good place to do business.                                             
                                                                               
                                                                               
  REP. DAVIDSON asked Mr. Borrell how he would characterize                    
  the current definition of "nuisance" in the Alaska statutes.                 
                                                                               
  Number 160                                                                   
                                                                               
  MR. BORRELL responded that the current definition was                        
  broader than that contained in SB 178.  He said that the                     
  bill would put reasonable restrictions on the definition.                    
  He noted that currently, even if a company had a permit, a                   
  person could file a nuisance suit merely because he or she                   
  did not enjoy seeing a particular item.  He said that filing                 
  a suit over a "visual impairment" was simply a way in which                  
  an individual could harass a project.                                        
                                                                               
  MR. BORRELL stated that permit requirements in Alaska were                   
  so considerable now that the international mining industry                   
  was looking to develop projects outside of the United                        
  States.  Passage of SB 178 would help to encourage mining                    
  development in Alaska, he said.                                              
                                                                               
  Number 196                                                                   
                                                                               
  REP. DAVIDSON asked Mr. Borrell if he felt that the state's                  
  current definition of "nuisance" was too broad.                              
                                                                               
  MR. BORRELL replied that Rep. Davidson was correct.                          
                                                                               
  Number 203                                                                   
                                                                               
  JEFFREY TROUTT, an ATTORNEY with the law firm of BIRCH,                      
  HORTON, BITTNER & CHEROT in Juneau, testified on his own                     
  behalf against SB 178.  He stated that he was a conservative                 
  Republican and strongly supported business and economic                      
  development.  He said that he liked the idea of statutorily                  
  defining "nuisance."  He commented that by increasing the                    
  standard to "substantial and unreasonable" harm, the number                  
  of frivolous lawsuits would probably decrease.                               
                                                                               
  MR. TROUTT indicated that he did not support SB 178's                        
  shifting of the economic burden for pollution or other types                 
  of nuisances off of the person who caused the nuisance and                   
  onto the person who was affected by the nuisance.  He said                   
  that he had done some preliminary legal research and found                   
  that only nine nuisance cases had been decided and published                 
  in the Alaska Digest -- only two since statehood.  He                        
  acknowledged that he did not have any statistics for cases                   
  filed in District or Superior Court.  That, he said, led him                 
  to believe that nuisance lawsuits were not much of a                         
  nuisance at all.                                                             
                                                                               
  MR. TROUTT expressed his opinion that trying to eliminate                    
  frivolous lawsuits by eliminating all nuisance lawsuits                      
  under certain circumstances was equivalent to trying to kill                 
  a mouse with a cruise missile.  He stated that nuisance                      
  lawsuits existed in order to protect individuals' private                    
  property interests.  When used legitimately, he continued,                   
  they encouraged the reduction of pollution.                                  
                                                                               
  MR. TROUTT noted that the real issue in SB 178 was who would                 
  pay for the cost of reducing or eliminating pollution.  In                   
  his conservative viewpoint, he said that the person who                      
  caused the nuisance ought to be the one who paid for it.                     
                                                                               
  Number 280                                                                   
                                                                               
  AVRUM GROSS, FORMER ATTORNEY GENERAL, said that he was an                    
  attorney in private practice with the law firm of GROSS AND                  
  BURKE.  He added that he was testifying strictly on his own                  
  behalf against SB 178.  He noted that there was a great deal                 
  of misinformation surrounding the bill.  He commented that                   
  SB 178 was introduced in response to one particular lawsuit                  
  against a company.  He expressed his opinion that SB 178 had                 
  nothing to do with what were referred to as "nuisance" or                    
  "frivolous" lawsuits.  Those, he said, were filed for                        
  harassment purposes and were already prohibited through a                    
  number of different means.                                                   
                                                                               
  MR. GROSS claimed that the bill pertained to lawsuits to                     
  abate nuisances.  He noted that the bill defined "nuisance"                  
  as an unreasonable and substantial interference with the                     
  property rights of another individual or entity.  He said                    
  that if a person walked on, or built a house across a                        
  property line onto the neighbor's property, that would not                   
  be a nuisance, but a trespass.  However, if a person                         
  interfered with the same property by unreasonably fouling                    
  the air above the property, or by spoiling the neighbor's                    
  water supply, or created such loud noises that it was                        
  literally impossible for the neighbors to live on their own                  
  property, then that would constitute a nuisance, he said.                    
                                                                               
  MR. GROSS said that, to his knowledge, in every state all                    
  property owners had the right to protect their property by                   
  filing a lawsuit to abate a nuisance.  No state had ever                     
  allowed the creator of a nuisance to defend his or her                       
  conduct by showing a permit, or proving that his or her                      
  conduct was lawful.  He mentioned a statute regarding                        
  permits for diverting and polluting anadromous fish streams.                 
  Those permits, he said, had nothing to do with whether or                    
  not the activity created a nuisance on adjoining land.                       
                                                                               
  MR. GROSS noted that permits also had nothing to do with                     
  actual damages created, as they were based on studies and                    
  assumptions.  If those studies and assumptions were later                    
  proven incorrect, he asked, should a damaged private                         
  property owner be barred from suing the creator of a                         
  nuisance?  He expressed his opinion that SB 178 attempted to                 
  get rid of an existing lawsuit by authorizing private                        
  property owners to commit nuisances.  He said that the bill                  
  was not a development bill.  He commented that SB 178 could                  
  hurt businesses just as much as individual private                           
  landowners.  He called SB 178 an "anti-property rights                       
  bill."  He said that the bill authorized taking private                      
  property rights away from people by the issuance of                          
  government permits.                                                          
                                                                               
  MR. GROSS said that until now the government could only take                 
  private property for public purposes and by compensating the                 
  owner.  Senate Bill 178 would authorize private parties to                   
  "take" private property belonging to others, without any                     
  compensation to the landowner, to enhance their own property                 
  at the expense of another property  owner.  He said that if                  
  SB 178 was enacted, the courts likely would find the state                   
  liable.  He stated that no one had investigated the                          
  magnitude of that liability.  He predicted that if the state                 
  were issuing permits, and would be liable for any nuisance                   
  created by permitted activities, the permit process would                    
  grind to a halt.                                                             
                                                                               
  CHAIRMAN PORTER asked Mr. Gross if he was aware of                           
  amendments made to SB 178 on the Senate floor.                               
                                                                               
  MR. GROSS replied that, in his opinion, the Senate's                         
  amendments were of absolutely no significance.  He commented                 
  that a nuisance caused by nuclear waste was no different                     
  than any other type of nuisance.  He noted that, regardless                  
  of whether or not public hearings were held, the issuance of                 
  a permit often had nothing to do with the impact of the                      
  permitted activity on neighboring property.                                  
                                                                               
  Number 486                                                                   
                                                                               
  REP. DAVIDSON commented that SB 178 seemed to create private                 
  property out of public permits, and to allow people to hide                  
  behind the permit process.  Also, he questioned why the                      
  court system had not submitted a fiscal note, as it seemed                   
  that SB 178 would result in a significant fiscal impact on                   
  the state.                                                                   
                                                                               
  Number 505                                                                   
                                                                               
  MR. GROSS noted that SB 178 would not just immunize holders                  
  of state-issued permits, but would also immunize holders of                  
  permits issued by the federal government.  He said that, if                  
  enacted, the bill could prove very expensive for the state.                  
  He stated that, under SB 178, a permit-holder could do                       
  anything that he or she wanted, and would be immune from                     
  litigation.                                                                  
                                                                               
  MR. GROSS commented that permits were often property rights,                 
  depending on the nature of the permit and how it could be                    
  revoked.  The difference between permits generally and                       
  permits under the provisions of SB 178, he said, was that                    
  permits generally authorized someone to do a specific act.                   
  They did not say whether or not that act would create a                      
  nuisance to someone else, he noted.  He used as an example a                 
  permit to burn in a national forest.  A permit-holder could                  
  burn to his or her heart's content, he said, as long as he                   
  or she did not burn down the forest.  But, if the burning                    
  was occurring adjacent to a fishing lodge, was going on day                  
  and night, and the smoke was going in the windows of the                     
  lodge, then the lodge owner could protest.  Under SB 178, he                 
  said, unlike every other state in the union, the lodge owner                 
  would have no right to protest the burning.                                  
                                                                               
  Number 532                                                                   
                                                                               
  REP. DAVIDSON asked Mr. Gross to address the fiscal impact                   
  on the state of SB 178.                                                      
                                                                               
  Number 535                                                                   
                                                                               
  MR. GROSS replied that SB 178 would result in much more                      
  extensive permit procedures.  He said that under SB 178, no                  
  state agency in its right mind would issue a permit which                    
  exposed the state to liability for all conceivable nuisances                 
  which could result from the permit, without exhaustive                       
  hearings.  He noted that it already took a great deal of                     
  time to obtain a permit.  He urged the committee to not turn                 
  the entire civil justice system on its head in order to                      
  address one perceived problem in Sitka.                                      
                                                                               
  CHAIRMAN PORTER announced that the teleconference network                    
  had been reconnected.  He noted that when the line was                       
  disconnected, Ms. Nancy Lethcoe was in the middle of her                     
  testimony.  He invited her to repeat her remarks in their                    
  entirety.                                                                    
                                                                               
  MS. LETHCOE summarized her earlier remarks to the committee,                 
  and concluded by saying that her organization felt that SB
  178 was a very bad bill.  Polluters should be responsible                    
  for their own pollution, she added, not those who were                       
  impacted by that pollution.  She thanked the Chairman for                    
  allowing her to testify again.                                               
                                                                               
  Number 615                                                                   
                                                                               
  BOB LESHER, representing seven homeowners on Lisianski Inlet                 
  near Pelican, some of whom were entering the tourism                         
  business, testified in opposition to SB 178.  He said that                   
  he viewed SB 178 as a threat to his right to protect his                     
  property and his lifestyle.  He said that he particularly                    
  opposed the bill's section 1, subsections (b) and (c), and                   
  section 2.  He commented that many activities which were not                 
  illegal could still cause harm to an individual's property                   
  rights.  He cited the legal discharge of firearms on state-                  
  owned tidelands on a frequent basis as an example.                           
                                                                               
  MR. LESHER expressed his opinion that SB 178 opened the door                 
  to abuse.  He noted that many licenses, permits, and orders                  
  were issued with brief, limited, or discretionary hearings.                  
  He offered as examples DEC's solid waste disposal permits                    
  and the U.S. Army Corps of Engineers' permits to discharge                   
  dredged or fill materials into U.S. waters.  He said that he                 
  did not believe that a brief hearing of a few days or less                   
  deserved the privilege of denying property owners the right                  
  to ask for abatement of an offensive activity.                               
                                                                               
  MR. LESHER noted that he and those he represented lived                      
  outside of a local government unit.  He questioned the                       
  constitutionality of SB 178, as it did not provide equal                     
  protection to those residing outside of municipal government                 
  boundaries.  He stated his objections to the tightening of                   
  the definition of "nuisance."  He asked why the legislature                  
  was considering reducing the property rights of individuals.                 
  He commented that it was obvious that SB 178 was designed to                 
  prevent civil suits from stopping or delaying industry                       
  projects that had gone through a permitting process.                         
                                                                               
  MR. LESHER commented that SB 178 did too much harm to                        
  individual property rights.  He offered several alternatives                 
  to the bill's approach.  He noted that a project which had                   
  received five days of public hearings could be protected                     
  from civil actions.  He said that such an approach would                     
  more adequately protect private property rights and projects                 
  which had received sufficient public attention.  He stated                   
  that SB 178, if enacted, could cost the state a great deal                   
  of money, as private property owners might sue the state for                 
  not providing equal protection and for depriving an                          
  individual of property rights without just compensation.                     
                                                                               
  Number 712                                                                   
                                                                               
  DOUG MERTZ noted that he had submitted written testimony to                  
  the committee, and added that former Attorney General Gross                  
  had made many points with which he agreed.  He said that                     
  SB 178 was a bad bill because it would cut off the rights of                 
  property owners to protect their own property.  He commented                 
  that that would be true for all property owners:                             
  residential, commercial, industrial, public, charitable,                     
  etc.  He stated that the permitting or regulation writing                    
  process could not be substituted for the right of an                         
  individual to go to court to protect her or his own private                  
  property rights.                                                             
                                                                               
  MR. MERTZ noted that regulations and permits were written in                 
  general terms to protect general public interests.  He added                 
  that they were not written to provide protection for all                     
  types of property in all types of circumstances.  He                         
  commented that many permits were issued without the benefit                  
  of a public hearing process.  When public hearings were                      
  held, he said, sometimes individuals could not participate,                  
  due to the location of the hearing, or due to illness, or                    
  because they had not read the public notices in the                          
  newspaper in order to learn that a public hearing was being                  
  held in the first place.  Additionally, he said, some people                 
  purchased property after a permit was issued, but before                     
  offensive activities commenced.  He said that SB 178 would                   
  cut off these individuals' rights to protect their property.                 
                                                                               
  MR. MERTZ commented that SB 178 embodied both bad public                     
  policy and bad law.  The bill would subject the state to                     
  damages for takings, he noted.  He mentioned that Alaska's                   
  constitutional condemnation provisions, unlike most other                    
  states', required compensation not only for "takings" of                     
  property, but also for damages to private property.                          
                                                                               
  TAPE 93-67, SIDE A                                                           
  Number 000                                                                   
                                                                               
  MR. MERTZ expressed his opinion that it was clear that if                    
  the state cut off the right of a property owner to protect                   
  his or her own property from damage, the state would be                      
  liable for a "taking."  He noted that SB 178 was probably                    
  also unconstitutional because it would require that public                   
  funds be spent to compensate for a "taking" made for a                       
  private purpose.  The differentiation between property in                    
  residential areas and non-residential areas also presented                   
  constitutional problems, he said.  He concluded by saying                    
  that SB 178 was a bad law that would buy the state lawsuits,                 
  result in massive costs to the state, and be detrimental to                  
  virtually all private property owners in the state.                          
  Number 039                                                                   
                                                                               
  CHAIRMAN PORTER announced that the committee would not hold                  
  its hearing on SB 173, GROUP HEALTH INSURANCE FOR SMALL                      
  EMPLOYERS, today due to time constraints.  He said that                      
  SB 173 would be rescheduled to the following Friday.                         
  Number 057                                                                   
                                                                               
  SUSAN STURM testified via teleconference from Sitka in                       
  opposition to SB 178, as it would prevent individuals from                   
  exercising their constitutional rights.  She added that the                  
  bill would take away a citizen's right to due process.  What                 
  was a nuisance to some was not a nuisance to others, she                     
  stated.  She objected to the lack of information available                   
  to the public on SB 178.  She commented that any testimony                   
  purporting to represent the views of the City of Sitka was                   
  invalid, as the city assembly had not discussed the bill,                    
  nor had any public hearings been held on the issue.  She                     
  mentioned that she had taught her children that if they made                 
  a mess, they cleaned it up.                                                  
                                                                               
  CHAIRMAN PORTER responded to Ms. Sturm's comment that there                  
  had been no public hearings on the bill by saying that a                     
  public hearing was currently in progress.                                    
                                                                               
  Number 090                                                                   
                                                                               
  DAVID KATZ, representing the TONGASS CONSERVATION SOCIETY,                   
  testified via teleconference from Ketchikan in opposition to                 
  SB 178.  He expressed his opinion that the ability to file                   
  suit to abate a pollution nuisance was a very important part                 
  of the total body of regulation and law that inhibited                       
  pollution.  He noted that he knew of no other state that                     
  intended to effectively eliminate the ability of a property                  
  owner to defend her or his property against nuisances.                       
                                                                               
  MR. KATZ stated that few nuisance suits were ever filed.  He                 
  mentioned earlier testimony which asserted that only two                     
  such suits had been filed since statehood.  He commented                     
  that SB 178 did not solve a problem; rather, it created one.                 
  He said that SB 178 would encourage people to pollute.  He                   
  likened the tool of suits to abate nuisances to a precision                  
  tool like a scalpel.  That tool would cut out specific acts                  
  of pollution, he said.  Senate Bill 178 would eliminate that                 
  "scalpel," he said, requiring that it be replaced with some                  
  other, much blunter instrument.  He said that property                       
  owners would not sit back and watch their property diminish                  
  in value.  He predicted that removing the tool of suits to                   
  abate nuisances would result in more regulations and                         
  statutes.  He echoed the comments of former Attorney General                 
  Gross.                                                                       
                                                                               
  Number 149                                                                   
                                                                               
  CAROLYN NICHOLS testified via teleconference from Sitka in                   
  opposition to SB 178.  She stated that, over the years, many                 
  people had tried, unsuccessfully, to curtail the pollution                   
  emitted by the pulp mill in Sitka.  She expressed her                        
  opinion that the permitting process for that mill had                        
  obviously not worked.  She said that passage of SB 178 would                 
  force private property owners to sue the state for damage to                 
  their property.  She questioned whether the state wanted to                  
  be liable for the pollution of businesses.  She noted that                   
  SB 178 addressed an issue far broader than Mr. Larry                         
  Edwards' lawsuit against the Sitka pulp mill, which she said                 
  the bill was obviously introduced to quash.                                  
                                                                               
  MS. NICHOLS commented that SB 178 opened the door for                        
  polluters throughout the state to operate without risk.  How                 
  could the state go after a polluter, she asked, in the event                 
  that the state was successfully sued by a private property                   
  owner over a nuisance created by a permitted polluter?  She                  
  stated that SB 178 was unfair to the state and to the                        
  citizens of the state.  She said that, as a fisherman, she                   
  felt very threatened by the bill, because the health of the                  
  state's fisheries depended upon clean water.  She added                      
  that, to date, the City of Sitka had held no public meetings                 
  on SB 178; therefore, there was no publicly agreed upon                      
  position on the bill.                                                        
                                                                               
  Number 191                                                                   
                                                                               
  NATASHA CALVIN testified via teleconference from Sitka in                    
  strong opposition to SB 178.  She stated that the bill would                 
  take away her rights as a citizen.  She expressed doubt that                 
  the permitting process and the DEC would adequately protect                  
  the public's health and well-being.  She noted that court                    
  orders and judgments did not include a public process or                     
  public notice.  She said that she agreed entirely with                       
  former Attorney General Gross.                                               
                                                                               
  Number 227                                                                   
                                                                               
  VANCE SANDERS, an attorney in private practice in Juneau,                    
  testified against SB 178 as amended by the Senate.  He cited                 
  two recent U.S. Supreme Court cases which were relevant to                   
  the bill.  He explained that in Lucas v. South Carolina                      
  Coastal Council, the Supreme Court found that the state of                   
  South Carolina had deprived a property owner of his rights                   
  and was required to compensate the owner for a "taking."  He                 
  cited another U.S. Supreme Court case pertaining to the City                 
  of Escondido, California's attempts to legislate mobile home                 
  park rates.  He called the committee's attention to a 1982                   
  New York case, in which the U.S. Supreme Court held that a                   
  property owner could prevent a cable company from wiring a                   
  building for cable.                                                          
                                                                               
  Number 305                                                                   
                                                                               
  MR. SANDERS expressed his opinion that the U.S. Supreme                      
  Court could find SB 178 to be unconstitutional, applying                     
  principles similar to those applied in the aforementioned                    
  cases.  He added his prediction that the U.S. Supreme Court                  
  would find that the state was liable for diminished property                 
  value and rights resulting from nuisances.  He recommended                   
  that the Attorney General examine the cases which he had                     
  just brought to the committee's attention.  He said that he                  
  believed that SB 178 would result in fiscal liability to the                 
  state.                                                                       
                                                                               
  Number 331                                                                   
                                                                               
  PAULA TERREL, representing the THANE NEIGHBORHOOD                            
  ASSOCIATION, said that her neighborhood would experience the                 
  greatest impact from the reopening of the A-J mine.  She                     
  said that she had been actively involved in the permitting                   
  process for the A-J mine.  She said that her neighborhood                    
  was zoned as residential, and that the A-J mine had gone                     
  through the public permitting process.  She noted that a                     
  permit did not guarantee that a project would not have                       
  negative impacts on surrounding property owners.  She                        
  questioned what would happen to private property owners in                   
  the event that the A-J mine received a permit, but the                       
  project still resulted in polluted wells and excessive                       
  noise.  She predicted that property values would drop                        
  dramatically in that situation.                                              
                                                                               
  MS. TERREL stated that governmental agencies did not protect                 
  individual property owners; rather, they protected the                       
  public's interests.  She said that if SB 178 passed,                         
  homeowners like herself who were impacted by polluted wells                  
  and/or excessive noise would have no place to turn, except                   
  for the state.  She said that SB 178 took away the rights of                 
  private property owners.                                                     
                                                                               
  Number 419                                                                   
                                                                               
  REP. JAMES indicated her understanding that SB 178 only                      
  applied to activities which were permitted.  It did not, in                  
  her understanding, cover activities which were violations of                 
  permits.                                                                     
                                                                               
  Number 446                                                                   
                                                                               
  MS. TERREL noted that if a permit allowed the A-J mine to                    
  produce a certain amount of noise, and that amount was such                  
  that no one wanted to buy her property, or she was unable to                 
  sleep at night, then she would have no recourse.                             
                                                                               
  REP. JAMES asked if Ms. Terrel would have a case against the                 
  state, which issued a permit, if permitted noise levels                      
  turned out to be excessive.                                                  
                                                                               
  Number 491                                                                   
                                                                               
  MS. TERREL replied that, as she was not an attorney, she                     
  could not address Rep. James' question.  However, she noted                  
  that SB 178 took away citizens' rights to seek recourse from                 
  a polluter.                                                                  
                                                                               
  Number 493                                                                   
                                                                               
  REP. GREEN asked Ms. Terrel if she was aware that "view,                     
  odor, or noise" were excluded from the provisions of SB 178.                 
  He said that this was an addition made by the Senate.                        
                                                                               
  Number 499                                                                   
                                                                               
  MS. TERREL indicated that her examples were not all-                         
  inclusive.                                                                   
                                                                               
  Number 507                                                                   
                                                                               
  REP. NORDLUND stated that the "view, odor, or noise"                         
  exclusion only applied to areas zoned as residential.  He                    
  added that in many cases people lived in areas which were                    
  not zoned as residential.                                                    
                                                                               
  Number 523                                                                   
                                                                               
  LAURIE FERGUSON CRAIG, representing ALASKANS FOR JUNEAU, a                   
  group involved in the permitting process for the A-J mine,                   
  testified against SB 178.  She mentioned severe budget cuts                  
  to the DEC, curtailing that agency's ability to enforce and                  
  update permits designed to protect the public and property                   
  owners.  She said that citizens needed to have the ability                   
  to protect their investments.  She expressed her strong                      
  opposition to SB 178's retroactivity clause.  She noted that                 
  pollution was not just an environmental issue, but also a                    
  health issue.                                                                
                                                                               
  MS. CRAIG stated that the public hearing process did not                     
  guarantee safety.  Regarding the A-J permit, she said that                   
  there was overwhelming public opinion against the provisions                 
  in the A-J permit.  But, she said, there was a strong                        
  likelihood that the permit would be approved.  Of particular                 
  concern to her organization was the city's and the state's                   
  decision to address the permit in phases, because state                      
  water quality revision standards were not yet available.                     
  She said that the project as it now stood would violate                      
  state and federal laws.  She objected to allowing the                        
  project to proceed, knowing that it violated the law.                        
                                                                               
  MS. CRAIG referred to a mine in Colorado which had exceeded                  
  its standards and gone bankrupt.  The nation's taxpayers                     
  were now paying $45,000 a day to prevent that mine from                      
  becoming an environmental disaster.  She said that she did                   
  not want to see a similar situation occur in Juneau.  She                    
  noted that state agencies in Colorado had faced budget cuts,                 
  resulting in inadequate monitoring and enforcement.  She                     
  said that if a permit were to be issued, it should be a                      
  complete permit.                                                             
                                                                               
  Number 589                                                                   
                                                                               
  MR. RICHARD HOFFMAN said that some people believed that                      
  local, state, and federal agencies had failed on numerous                    
  occasions to protect the public from adverse impacts of                      
  large businesses.  He noted that SB 178's sponsor had                        
  indicated that the bill was an effort to remove                              
  administrative hurdles and loosen environmental regulations                  
  in order to make it easier for big business to carry out                     
  projects.                                                                    
                                                                               
  MR. HOFFMAN commented that if a permitting agency knew that                  
  it, instead of a permit-holder, could be sued, it would                      
  likely carry out a more detailed permit process than it now                  
  did.  He noted that a great deal of information used when                    
  granting permits came from a project's developers.  If the                   
  information was flawed, he said, under SB 178, the agency                    
  would be liable for the improperly-issued permit, not the                    
  permit-holder.                                                               
                                                                               
  MR. HOFFMAN said that he lived on Thane Road, near the site                  
  of the proposed A-J mine project.  He said that for several                  
  years, he had attempted without success to have his concerns                 
  regarding decreased property values addressed by the city.                   
  Additionally, he said that he had unsuccessfully tried to                    
  get the city to address the problem of increased traffic on                  
  an already hazardous road.  He said that if, in the future,                  
  these concerns turned out to be valid, under SB 178, the                     
  permitting agency would be liable, not the permit-holder.                    
                                                                               
  MR. HOFFMAN stated that the A-J mine permit would allow the                  
  project to create more noise than was recommended by a                       
  consultant.  The noise, he said, would be generated 24 hours                 
  a day, 365 days a year for three years.  He noted that under                 
  SB 178, neighbors would have no recourse when they                           
  experienced excessive noise.  He said that SB 178 would have                 
  the effect of reducing public protection against harmful                     
  projects.  He added that the bill would force people to sue                  
  the government in order to get relief from adverse impacts.                  
                                                                               
  Number 663                                                                   
                                                                               
  BOB ENGELBRECHT, VICE PRESIDENT OF TEMSCO HELICOPTERS, noted                 
  that he had testified in support of SB 178 at a Senate                       
  hearing.  Since that time, he said, the bill had been                        
  amended.  He commented that his company operated under a                     
  U.S. Forest Service permit, which it obtained after                          
  extensive public hearings.  Although his company complied                    
  with all of the conditions of the permit, he said, it was                    
  still at risk for a lawsuit from any individual over a                       
  nuisance issue.  For that reason, he said, he supported SB
  178.  Unfortunately, the bill was amended on the Senate                      
  floor to exclude noise.  He asked the committee to amend the                 
  bill so as to include noise.                                                 
                                                                               
  Number 696                                                                   
                                                                               
  REP. NORDLUND asked Mr. Engelbrecht to further explain the                   
  U.S. Forest Service permit under which Temsco operated.                      
                                                                               
  Number 701                                                                   
                                                                               
  MR. ENGELBRECHT responded that the permit pertained to                       
  impacts both on and off of the national forest.  He noted                    
  that if a new impact occurred, which was not covered in the                  
  original permit, the permit would likely be amended.  He                     
  said that the permit process was expensive and lengthy.                      
                                                                               
  REP. NORDLUND said that he had not known that the U.S.                       
  Forest Service was concerned with areas outside of the                       
  national forest boundaries.  He stated that the Forest                       
  Service probably cared more about impacts on the national                    
  forest.                                                                      
                                                                               
  MR. ENGELBRECHT responded that there had been virtually no                   
  impacts from his business identified on the national forest;                 
  therefore, the focus of the permit process had been on non-                  
  national forest impacts.                                                     
                                                                               
  Number 721                                                                   
                                                                               
  REP. MACKIE asked Mr. Engelbrecht if the reason behind his                   
  desire for the committee to amend language regarding noise                   
  was because he feared being the target of a lawsuit.  He                     
  mentioned a situation in Ketchikan in which harbor residents                 
  had complained about floatplane noise.  He noted that noise                  
  generated by a mine was substantially different from the                     
  noise created by aircraft.                                                   
                                                                               
  Number 739                                                                   
                                                                               
  MR. ENGELBRECHT replied that he did fear that Temsco would                   
  be sued.  He said that people had complained about the noise                 
  of his operation.  He noted that, in addition to receiving a                 
  Forest Service permit, Temsco was part of a 1987 Federal                     
  Aviation Administration (FAA) noise compatibility study                      
  which involved public hearings.  He commented that the                       
  airport was found to be within noise guidelines for                          
  airports.  But, he said, despite Temsco's compliance with                    
  its permit, it was subject to lawsuits.                                      
                                                                               
  MR. ENGELBRECHT noted that Temsco complied with airport                      
  restrictions as well as FAA flight pattern requirements.  He                 
  asked Rep. Mackie to restate his question regarding mine                     
  noise as compared to aircraft noise.                                         
                                                                               
  Number 758                                                                   
                                                                               
  REP. MACKIE asked Mr. Engelbrecht to discuss the difference                  
  between impacts of noise from a new mine on existing                         
  property owners and impacts of aircraft noise on people who                  
  bought property adjacent to an airport.                                      
                                                                               
  Number 768                                                                   
                                                                               
  MR. ENGELBRECHT commented that he was not an attorney, and                   
  did not know how language might be crafted so as to                          
  differentiate between certain types of noise.  He noted that                 
  Temsco operated near an airport which had been there for 40-                 
  50 years, and that the noise which Temsco's operations                       
  produced was intermittent.                                                   
                                                                               
  Number 778                                                                   
                                                                               
  REP. MACKIE asked Mr. Engelbrecht if he agreed that there                    
  was a substantial difference between the type of noise                       
  produced by Temsco's helicopters and the type of noise                       
  generated by a new mine.                                                     
                                                                               
  MR. ENGELBRECHT indicated his agreement.                                     
                                                                               
  REP. DAVIDSON asked if Temsco had ever been the target of a                  
  civil nuisance action.                                                       
                                                                               
  MR. ENGELBRECHT replied that, to his knowledge, it had not                   
  occurred in Juneau.  But, he said, in Ketchikan, air taxi                    
  operators had once experienced a problem regarding noise.                    
  He stated that he was unsure as to whether that problem                      
  resulted in the filing of a nuisance lawsuit.                                
                                                                               
  Number 794                                                                   
                                                                               
  REP. DAVIDSON asked Mr. Engelbrecht what fueled his concern,                 
  given the fact that Temsco had never been sued, nor                          
  threatened with a suit.                                                      
                                                                               
  Number 795                                                                   
                                                                               
  MR. ENGELBRECHT responded that Temsco was threatened by                      
  lawsuits.  He noted that Temsco had operated under a permit                  
  for nine years, and had improved its operations over the                     
  years by lessening the amount of noise it produced.  During                  
  those nine years, he said, Temsco had had more restrictions                  
  placed on it by the FAA and the Forest Service.                              
                                                                               
  MR. ENGELBRECHT noted that the permit process was becoming                   
  more difficult and time-consuming.  He commented that one                    
  person had objected to Temsco's permit and appealed the                      
  Forest Service's decision to grant it.  Additionally, he                     
  said, that same person had threatened to sue Temsco.                         
                                                                               
  TAPE 93-67, SIDE B                                                           
  Number 000                                                                   
                                                                               
  RUSSELL HEATH, EXECUTIVE DIRECTOR OF THE ALASKA                              
  ENVIRONMENTAL LOBBY, questioned whether nuisance lawsuits                    
  were really a problem.  Previous testimony indicated that                    
  very few had ever been filed in Alaska.  He said SB 178 was                  
  introduced for one sole purpose, which was to kill a lawsuit                 
  against APC in Sitka.  He noted that the bill was introduced                 
  only days after the court ordered APC's parent company to                    
  disclose its financial records.  APC, he explained, had                      
  evaded complying with air and water quality standards for                    
  years by claiming that it lacked the financial resources to                  
  do so.  Disclosure of financial records would destroy the                    
  company's last defense against compliance with pollution                     
  laws, he added.                                                              
                                                                               
  MR. HEATH explained that the APC mill emitted sulphur                        
  dioxide, which turned into sulfuric acid when released into                  
  the atmosphere.  That substance burned eyes and throats and                  
  resulted in lowering property values for residences near the                 
  mill, he said.  A monitor erected several years ago near the                 
  most heavily-impacted neighborhood indicated that the                        
  ambient air quality was still within the terms of the APC                    
  permit.  He noted that APC's air quality permits were                        
  renewed annually, despite vociferous public complaints about                 
  the health hazard created by the release of the sulphur                      
  dioxide.  Additionally, he stated, the DEC had received                      
  hundreds of written and telephonic complaints about the                      
  health hazard.                                                               
                                                                               
  MR. HEATH said the DEC had ignored the public's concerns for                 
  the past 20 years.  And, he said, the public had been                        
  excluded from the permit writing process, even as observers.                 
  Administrative appeals had been filed against the DEC                        
  alleging that the public had been excluded from the permit                   
  writing negotiations.  A DEC hearing officer found those                     
  allegations to be true, and ordered the DEC to include the                   
  public in future negotiations, he said.  To date, this had                   
  not been done.  He stated that, just because an activity                     
  which caused a nuisance was permitted, that did not                          
  guarantee the protection of private property.  He also noted                 
  that the government had failed to protect the rights and                     
  interests of residents of the area surrounding a permitted                   
  facility.  When the government failed to provide protection,                 
  he said, the only recourse was through the courts.  Senate                   
  Bill 178 takes away that recourse, he noted.  He called the                  
  bill bad policy and said that, as only two reported nuisance                 
  suits had been filed since statehood, they were clearly not                  
  a significant problem in Alaska.                                             
                                                                               
  Number 126                                                                   
                                                                               
  ROBERT LOESCHER, EXECUTIVE VICE PRESIDENT FOR RESOURCE                       
  MANAGEMENT FOR SEALASKA CORPORATION, called the committee                    
  members' attention to written testimony which he had                         
  submitted.  He commented that Sealaska was the owner of huge                 
  amounts of private land.  He noted that a number of                          
  Sealaska's concerns had been addressed in the Senate's                       
  amended version of SB 178.  But, he said, Sealaska still had                 
  some serious concerns about the bill.  The main concern was                  
  that SB 178 sought to eliminate frivolous nuisance lawsuits                  
  by banning all lawsuits under certain circumstances.  He                     
  said that the bill as written would result in legitimate                     
  nuisance claims not being heard, depriving private property                  
  owners with legitimate claims of their day in court.                         
                                                                               
  MR. LOESCHER noted that Sealaska supported some aspects of                   
  SB 178, including the amended definition of "nuisance" and                   
  the attempt to decrease the number of frivolous lawsuits.                    
  He expressed Sealaska's concern about the bill's provision                   
  that only property owners in areas zoned as residential                      
  could sue for nuisance against a permit or license holder on                 
  the basis of "view, odor, or noise."  He noted that many                     
  Alaskans lived in areas where there was no zoning, thus                      
  providing less protection to those individuals living in                     
  rural Alaska and Native villages.  He said that Sealaska                     
  opposed legislation which gave these people "second-class"                   
  property rights.  Also, he said the bill was too narrow, as                  
  it only allowed nuisance suits based upon "view, odor, or                    
  noise."  He expressed an additional concern that SB 178's                    
  retroactivity provision seemed to be specifically targeted                   
  at one lawsuit, raising constitutional concerns.  He noted                   
  his agreement with former Attorney General Gross' comments                   
  regarding the constitutionality of SB 178.                                   
                                                                               
  MR. LOESCHER stated that the Senate's substitute for SB 178                  
  was an improvement over the original bill.  He indicated                     
  Sealaska's support for the bill's attempts to weed out                       
  frivolous lawsuits; however, the bill would do so by banning                 
  valid lawsuits by property owners who had suffered economic                  
  loss due to the activities of another.  He concluded by                      
  saying that the sponsor could achieve that objective without                 
  harming legitimate individual private property rights.  He                   
  commented that the bill was flawed, but not unredeemable.                    
  He suggested that the bill be amended so as to include the                   
  revised statutory definition of "nuisance," but not to ban                   
  lawsuits based on nuisances.  He also suggested that the                     
  bill ban lawsuits filed for injunctive relief in cases where                 
  a permit or license had been issued, but allow suits for                     
  monetary damages.  He expressed Sealaska's willingness to                    
  work with the committee or the sponsor over the interim on                   
  compromise language.                                                         
                                                                               
  FLORIAN SEVER, representing the FOUNDATION FOR THE                           
  PROTECTION OF THE COMMON PEOPLE, a public interest group,                    
  testified via teleconference from Sitka.  He said that he                    
  opposed SB 178, as it was intended to deprive the citizens                   
  of Alaska of their constitutional rights to due process and                  
  equal protection.  He urged the committee to defeat the                      
  bill.                                                                        
                                                                               
  Number 236                                                                   
                                                                               
  PAM BRODIE, representing the SIERRA CLUB, testified in                       
  opposition to SB 178, as it was unfair to property owners.                   
  She said that the bill was clearly designed to negate a                      
  pending lawsuit.                                                             
                                                                               
  Number 260                                                                   
                                                                               
  REP. DAVIDSON requested that the committee work on SB 178                    
  during the interim in order to craft a bill with which all                   
  parties could agree.  He noted that the former Attorney                      
  General's extensive concerns regarding the bill raised a lot                 
  of red flags.                                                                
                                                                               
  Number 275                                                                   
                                                                               
  REP. KOTT asked if, while he was out of the room, a                          
  representative from the Attorney General's office had                        
  testified on the bill.                                                       
                                                                               
  CHAIRMAN PORTER replied that no representative from the                      
  Attorney General's office had testified on SB 178.                           
                                                                               
  Number 277                                                                   
                                                                               
  REP. KOTT expressed a concern about the constitutionality of                 
  the bill's retroactivity clause.                                             
                                                                               
  Number 284                                                                   
                                                                               
  REP. DAVIDSON offered Amendment 1, which would delete                        
  Section 3 of SB 178.                                                         
                                                                               
  CHAIRMAN PORTER objected.                                                    
                                                                               
  Number 293                                                                   
                                                                               
  REP. DAVIDSON commented that much of the discussion                          
  regarding the possible unconstitutionality of SB 178                         
  centered around Section 3.  He added that attempts to                        
  undermine due process blackened the reputation of the                        
  legislature.                                                                 
                                                                               
  Number 304                                                                   
                                                                               
  REP. NORDLUND spoke in support of the proposed amendment.                    
  He said that the retroactivity provision was unfair to                       
  people currently involved in litigation, and expressed his                   
  opinion that the provision was clearly unconstitutional.  He                 
  encouraged the other committee members to support the                        
  amendment.                                                                   
                                                                               
  REP. JAMES stated that it seemed to her that, when laws were                 
  passed while a court case was pending, the court yielded to                  
  the new laws, making a decision moot.  So, she said, a                       
  retroactivity clause in SB 178 would not matter very much.                   
                                                                               
  REP. DAVIDSON commented that when the Judiciary Committee                    
  passed bills out of committee, they should have been                         
  thoroughly examined.  He said that SB 178 was clearly a bad                  
  law, with overwhelming opposition.  He noted that dropping                   
  Section 3 would not produce a good law, but would improve                    
  SB 178 somewhat.                                                             
                                                                               
  Number 361                                                                   
                                                                               
  REP. JAMES agreed with Rep. Davidson that the committee                      
  needed to thoroughly examine those bills which it passed out                 
  of committee.  She said that she opposed the amendment, as                   
  it did not improve SB 178.  She expressed her opinion that                   
  the amendment would have no effect.                                          
                                                                               
  Number 369                                                                   
                                                                               
  REP. DAVIDSON countered that the amendment would delete the                  
  bill's retroactivity, obviously having an effect.  He said                   
  that the amendment would make a bad bill just a little bit                   
  better.                                                                      
                                                                               
  Number 376                                                                   
                                                                               
  REP. NORDLUND stated that the committee had opinions from                    
  attorneys which held that the bill's retroactivity clause                    
  was unconstitutional.  He added that if Rep. James supported                 
  SB 178 and wanted it to be successful, it would make sense                   
  for her to support the amendment.                                            
                                                                               
  Number 382                                                                   
                                                                               
  REP. KOTT asked to hear from Mr. Clark on the amendment.                     
                                                                               
  Number 393                                                                   
                                                                               
  REP. DAVIDSON noted that, instead of asking the person who                   
  wrote the bill to comment on it, the committee should ask                    
  for the Department of Law's opinion on the amendment.                        
                                                                               
  Number 397                                                                   
                                                                               
  MR. CLARK cited case law where retroactivity provisions were                 
  found to be valid.  He stated that Rep. James' earlier                       
  comment regarding pending court cases and new laws was                       
  correct.  He commented that the Alaska courts had found                      
  that, when used explicitly, retroactivity provisions were                    
  valid.                                                                       
                                                                               
  Number 436                                                                   
                                                                               
  CHAIRMAN PORTER spoke in opposition to the amendment and in                  
  support of SB 178.  He said that he did not agree with the                   
  opinion that the bill would preclude anyone's ability to sue                 
  over a nuisance, with the single exception of "nuisance                      
  suits."  He expressed his opinion that the bill would                        
  prevent suits from being filed over activities which were                    
  specifically allowed under a permit, which was issued after                  
  a public hearing process.                                                    
                                                                               
  CHAIRMAN PORTER commented that, in the case of the A-J mine                  
  project polluting a neighbor's well, that neighbor could                     
  still sue the company, as the permit did not allow the                       
  company to pollute the wells of neighbors.  He said that if                  
  the Sitka case was the type of case which SB 178 would                       
  preclude, then he expressed his opinion that the case should                 
  be precluded.  If the Sitka case was not the type of case                    
  which SB 178 was trying to preclude, he added, then the bill                 
  would not affect the case.  He commented that if the state                   
  issued a permit which was so onerous that it allowed the                     
  types of nuisances which the committee had heard testimony                   
  about, then the state should be sued.  He said that SB 178                   
  represented a balance, and would provide the state with an                   
  incentive to do a good job in issuing permits.                               
                                                                               
  Number 495                                                                   
                                                                               
  REP. DAVIDSON commented that if SB 178 represented a                         
  balance, then "lady liberty, I think, has lost her scales."                  
  He commented that the committee had heard many private                       
  property owners testify that they could not even get to                      
  first base during the permitting process.  He said that SB
  178 dealt with a very important issue and required a great                   
  deal of examination.  He expressed his hope that the bill                    
  was not being rushed through the committee in order to be                    
  enacted prior to adjournment.                                                
                                                                               
  Number 521                                                                   
                                                                               
  REP. NORDLUND noted that there was a large cloud hanging                     
  over SB 178.  He expressed the viewpoint of some that the                    
  bill was written to solve one company's problem with a                       
  particular lawsuit.  He commented that that was the worst                    
  kind of bill for the legislature to be passing.  In order to                 
  remove the cloud, he said, the committee should remove the                   
  bill's retroactivity clause.                                                 
                                                                               
  A roll call vote was taken on Amendment 1.  Reps. Nordlund                   
  and Davidson voted "yea."  Reps. Kott, Green, Phillips,                      
  James, and Porter voted "nay."  Amendment 1 failed.                          
                                                                               
  Number 549                                                                   
                                                                               
  REP. DAVIDSON offered Amendment 2, which provided that if a                  
  portion of SB 178 were found to be unconstitutional, then                    
  the entire law would be repealed.                                            
                                                                               
  Number 559                                                                   
                                                                               
  CHAIRMAN PORTER stated that there was a general provision                    
  that specified that if any portion of a statute was found to                 
  be unconstitutional, then the rest of the statute was not                    
  negated.  He noted that Amendment 2 would contradict that                    
  policy.                                                                      
                                                                               
  Number 569                                                                   
                                                                               
  GAYLE HORETSKI, COMMITTEE COUNSEL TO THE HOUSE JUDICIARY                     
  COMMITTEE, stated that a general severability statute,                       
  located in Title 1 of the Alaska Statutes, held that all                     
  laws passed by the legislature should be read as though they                 
  included the phrase, "if any provision of this is struck                     
  down, the rest of it is severable."  She said that the                       
  courts interpreted all bills as if they included that                        
  severability language.  But, she said, there was nothing                     
  that would prevent the legislature from making specific                      
  exceptions to that statute, as Amendment 2 would do.                         
                                                                               
  A roll call vote was taken on Amendment 2.  Reps. Nordlund                   
  and Davidson voted "yea."  Reps. Phillips, Green, Kott,                      
  James and Porter voted "nay."  Amendment 2 failed.                           
                                                                               
  REP. PHILLIPS made a motion to move SB 178 out of committee,                 
  with individual recommendations.  Rep. Nordlund and Rep.                     
  Davidson objected.                                                           
                                                                               
  Number 591                                                                   
                                                                               
  CHAIRMAN PORTER noted that the committee had received an                     
  indirect request for a further amendment, which Mr. Clark                    
  had outlined earlier in the hearing.  He expressed his                       
  opinion that adding the word "valid" before "statute" on                     
  page 1, line 11, of the bill was not a good idea.  And, he                   
  said, replacing the word "judgment" with "decision" on page                  
  1, line 14, was not necessary in his opinion.  He expressed                  
  his support, however, for the deletion of "real" on page 2,                  
  line 9, of the bill.                                                         
                                                                               
  REP. NORDLUND moved that the committee amend the bill so as                  
  to strike "real" from page 2, line 9, of CSSB 178(JUD)am                     
  (efd fld).                                                                   
                                                                               
  REP. DAVIDSON objected.                                                      
                                                                               
  A roll call vote on the amendment was taken.  Reps. Davidson                 
  and James voted "nay."  Reps. Green, Kott, Nordlund, and                     
  Porter voted "yea."  Rep. Phillips passed.  The amendment                    
  was adopted.                                                                 
                                                                               
  Because the motion to move SB 178 out of committee was still                 
  on the table, the adoption of the amendment was deemed                       
  invalid.  Rep. Phillips removed her motion to move the bill                  
  out of committee.                                                            
                                                                               
  REP. PHILLIPS asked for an explanation of the effect of                      
  deleting the word "real."                                                    
                                                                               
  CHAIRMAN PORTER explained that deleting the word "real"                      
  would expand the definition of property which might be                       
  affected by a nuisance.                                                      
                                                                               
  REP. NORDLUND moved the amendment.                                           
                                                                               
  Another roll call vote on the amendment was taken.  Reps.                    
  Davidson and James voted "nay."  Reps. Green, Phillips,                      
  Nordlund and Porter voted "yea."  Rep. Kott passed.  The                     
  amendment was adopted.                                                       
                                                                               
  REP. PHILLIPS made a motion to move the Judiciary Committee                  
  substitute for SB 178 out of committee, with individual                      
  recommendations.  Objection was heard.                                       
                                                                               
  Number 673                                                                   
                                                                               
  REP. DAVIDSON said that it appeared that the committee was                   
  rushing a very important bill which would affect a huge                      
  number of people.  He asked that the committee "back off"                    
  and take into account the grave concerns of those who had                    
  testified against the bill.  He commented that SB 178 had                    
  obviously been hurried through the Senate, and should not be                 
  hurried through the House as well.                                           
                                                                               
  Number 689                                                                   
                                                                               
  REP. JAMES expressed her opinion that the intent behind SB
  178 was good.  But, she said that she agreed with Rep.                       
  Davidson in that she was uncomfortable with the speed with                   
  which the bill was moving through the legislature, as well                   
  as the overwhelming testimony against the bill.  She noted                   
  her preference for keeping the bill in committee for the                     
  time being, in order to address concerns surrounding it.                     
                                                                               
  Number 702                                                                   
                                                                               
  CHAIRMAN PORTER commented that there was a difference of                     
  opinion about the bill's scope and effect.  He expressed his                 
  opinion that the bill was a very simple one that would                       
  preclude a "second bite" from someone who was attempting to                  
  negate a permit.                                                             
                                                                               
  TAPE 93-68, SIDE A                                                           
  Number 000                                                                   
                                                                               
  REP. GREEN questioned the effect of deleting the word                        
  "real."                                                                      
                                                                               
  Number 011                                                                   
                                                                               
  REP. NORDLUND stated that he would vote "no" on the motion                   
  to move the bill out of committee, as the committee had not,                 
  in his view, given the bill adequate consideration.  He                      
  noted that the committee had heard from several different                    
  attorneys, but not from Attorney General Charlie Cole.  He                   
  indicated his desire to learn the Attorney General's opinion                 
  of SB 178.  He recommended that a subcommittee be formed to                  
  work on the bill over the interim.  He said that he did not                  
  see any reason to hurry an important bill like SB 178.                       
                                                                               
  Number 031                                                                   
                                                                               
  REP. PHILLIPS said that the concept behind SB 178 had been                   
  discussed for many years.  She added that the pendulum was                   
  swinging the other way, and indicated her viewpoint that it                  
  was about time that the pendulum swung the other way.                        
                                                                               
  Number 046                                                                   
                                                                               
  REP. DAVIDSON disagreed with Rep. Phillips, saying that the                  
  pendulum sometimes served to protect people from losing                      
  their property.  While others may have discussed the issue                   
  embodied in SB 178, he said, it had received very little                     
  discussion by the legislature.                                               
                                                                               
  Number 073                                                                   
                                                                               
  REP. NORDLUND noted that SB 178 had been introduced on March                 
  31.  He said that while the issue may have been before the                   
  legislature in previous years, there were many freshmen                      
  members of the legislature who had not had adequate                          
  opportunity to consider the bill.  He said that the bill had                 
  been before the legislature for less than a month, and                       
  commented that it was moving too fast.  He added that it was                 
  being "railroaded."                                                          
                                                                               
  A roll call vote was taken on moving the bill out of                         
  committee.  Reps. Kott, Phillips and Porter voted "yea."                     
  Rep. Nordlund voted "nay."  Rep. Davidson voted "no,                         
  unconstitutional."  Reps. Green and James passed.                            
                                                                               
  CHAIRMAN PORTER asked Rep. James and Rep. Green to vote.  An                 
  "at ease" was taken at 4:50 p.m.  The committee reconvened                   
  at 4:54 p.m.                                                                 
                                                                               
  Number 119                                                                   
                                                                               
  REP. GREEN said that his earlier concern had been                            
  sufficiently addressed.  He voted in favor of moving the                     
  bill out of committee.                                                       
                                                                               
  REP. JAMES voted "no" on moving the bill from committee.                     
                                                                               
  And so, by a vote of 4-3, the Judiciary Committee substitute                 
  for SB 178 passed out of committee.                                          
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN PORTER adjourned the meeting at 4:55 p.m.                           

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