Legislature(2013 - 2014)BELTZ 105 (TSBldg)

03/31/2014 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 284 COMPACT FOR A BALANCED BUDGET TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
= HB 47 INJUNCTION SECURITY: INDUSTRIAL OPERATION
Moved CSHB 47(JUD) Out of Committee
        HB  47-INJUNCTION SECURITY: INDUSTRIAL OPERATION                                                                    
                                                                                                                                
1:35:51 PM                                                                                                                    
CHAIR  COGHILL announced  the  consideration of  HB  47. "An  Act                                                               
requiring  a  party  seeking  a  restraining  order,  preliminary                                                               
injunction,  or  order  vacating  or  staying  the  operation  of                                                               
certain  permits  affecting  an   industrial  operation  to  give                                                               
security  in the  amount  the court  considers  proper for  costs                                                               
incurred  and damages  suffered  if the  industrial operation  is                                                               
wrongfully enjoined  or restrained." [This was  the third hearing                                                               
and [CSHB 47(JUD) was before the committee.]                                                                                    
                                                                                                                                
LINDA  HAY,  Staff,  Representative   Eric  Feige,  Alaska  State                                                               
Legislature Juneau, Alaska, introduced herself.                                                                                 
                                                                                                                                
CHAIR  COGHILL  asked  Ruth  Hamilton   Heese  to  again  provide                                                               
testimony   on  HB   47  because   the  previous   teleconference                                                               
connection was very garbled.                                                                                                    
                                                                                                                                
1:37:11 PM                                                                                                                    
RUTH HAMILTON HEESE, Assistant  Attorney General, Civil Division,                                                               
Environmental  Section,   Department  of  Law,   Juneau,  Alaska,                                                               
restated the reasons for the  exemptions for the primacy programs                                                               
that were approved  by EPA or the Department of  Interior for the                                                               
Clean  Water Act  regulation, Clean  Air Act  regulation and  the                                                               
coal program that the state  administers under the Surface Mining                                                               
Control and  Reclamation Act. State agencies  were concerned that                                                               
the injunction  provisions anticipated  in the  original language                                                               
of HB  47 may  be viewed  by federal  agencies as  chilling third                                                               
parties' access  to the  courts in order  to challenge  a primacy                                                               
permit that  the state issues.  This opened the  possibility that                                                               
the  federal  agencies would  withdraw  approval  of the  federal                                                               
permitting programs  over which  the state  has primacy.  The new                                                               
language  set  out in  subsection  (d)  of  CSHB 47  address  the                                                               
initial concerns  by exempting the state's  primacy programs from                                                               
application in the bill.                                                                                                        
                                                                                                                                
CHAIR  COGHILL asked  what  process  the law  would  follow if  a                                                               
public interest litigant filed suit under this provision.                                                                       
                                                                                                                                
MS. HAMILTON HESSE deferred to John Hutchison.                                                                                  
                                                                                                                                
1:41:03 PM                                                                                                                    
JOHN HUTCHINS,  Assistant Attorney General, Civil  Division, Oil,                                                               
Gas,  and Mining  Section,  Department of  Law,  advised that  it                                                               
would be identical to the  current process under [Federal Rule of                                                               
Civil Procedure 65].                                                                                                            
                                                                                                                                
CHAIR  COGHILL asked  how the  bond  would be  apportioned for  a                                                               
third party  who is  largely backed  by somebody  versus somebody                                                               
who has a neighborhood problem.                                                                                                 
                                                                                                                                
MR. HUTCHINS explained that a  hearing would be held to determine                                                               
whether  a preliminary  injunction should  issue. Once  the judge                                                               
has  determined that  the injunction  should issue  and that  the                                                               
injury  is  irreparable,  the  judge  would  consider  the  usual                                                               
factors under  Rule 65. With  passage of  HB 47, the  judge would                                                               
also consider  the wages and  benefits for employees  or payments                                                               
that  contractors and  subcontractors may  have suffered  and set                                                               
the appropriate bond.                                                                                                           
                                                                                                                                
1:42:56 PM                                                                                                                    
SENATOR WIELECHOWSKI joined the committee.                                                                                      
                                                                                                                                
CHAIR COGHILL summarized his understanding.                                                                                     
                                                                                                                                
MR. HUTCHISON clarified  that it would have to be  an injury that                                                               
can't be compensated  by a monetary award if  the party prevails.                                                               
It would have to be an injury that is irreparable.                                                                              
                                                                                                                                
CHAIR COGHILL opened public testimony.                                                                                          
                                                                                                                                
1:44:22 PM                                                                                                                    
BARBARA  HUFF TUCKNESS,  Director,  Legislative and  Governmental                                                               
Affairs, Teamsters  Local 959, Anchorage, Alaska,  stated support                                                               
for HB 47.  She disagreed with the allegation that  the bill does                                                               
nothing but  stop the permitting  process. She cited  an instance                                                               
when a  union member working  on a  federal project was  laid off                                                               
for 2-3 weeks  when an injunction was filed  after the permitting                                                               
process was  complete and  the project was  ready to  go forward.                                                               
She said  she found no similar  examples under the state  law but                                                               
the  concern is  that  if  there is  a  wrongful enjoinment,  the                                                               
entity who  files the  lawsuit needs  to have  some "skin  in the                                                               
game"  because workers  are impacted.  She stressed  that once  a                                                               
contractor has  been awarded  a contract  and has  walked through                                                               
all  the  appropriate  steps,  it  is  only  fair  to  allow  the                                                               
construction to move forward without undue interference.                                                                        
                                                                                                                                
CHAIR  COGHILL asked  Ms. Hay  if  she wanted  to supplement  the                                                               
record.                                                                                                                         
                                                                                                                                
MS. HAY said she didn't have anything to add.                                                                                   
                                                                                                                                
CHAIR COGHILL found no further questions and solicited a motion.                                                                
                                                                                                                                
1:48:34 PM                                                                                                                    
SENATOR MCGUIRE moved to report CS  for HB 47 from committee with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
1:49:00 PM                                                                                                                    
SENATOR WIELECHOWSKI  objected voicing concern that  people whose                                                               
property  is  threatened  will  be  financially  foreclosed  from                                                               
exercising their  constitutional rights  to go  to the  courts to                                                               
challenge a project.  He questioned the need  for the legislation                                                               
when  there  was  already  a  law  on  the  books  that  requires                                                               
security.  This legislation  is likely  to increase  the security                                                               
amounts which  will close the door  to the courts for  the middle                                                               
class and working families. "I can't support that," he said.                                                                    
                                                                                                                                
SENATOR  OLSON  said  he  too   objects  because  it  places  his                                                               
constituents  at a  financial  disadvantage.  It imposes  another                                                               
hurdle and makes  it prohibitively expensive to try  to object to                                                               
development in the rural areas where they live.                                                                                 
                                                                                                                                
CO-CHAIR COGHILL stated his support  for the legislation based on                                                               
the  testimony from  the Department  of Law  and his  belief that                                                               
this  was   well  within  a   judge's  ability  to   give  proper                                                               
discretion.                                                                                                                     
                                                                                                                                
He asked for a roll call vote.                                                                                                  
                                                                                                                                
1:50:24 PM                                                                                                                    
A roll call vote was  taken. Senators McGuire, Dyson, and Coghill                                                               
voted  in  favor of  reporting  HB  47 from  committee;  Senators                                                               
Wielechowski and Olson voted against  it. Therefore, CSHB 47(JUD)                                                               
was reported out of the  Senate Judiciary Standing Committee by a                                                               
vote of 3:2.