Next Generation: Extraordinary expense pipeline funding Senate - PowerPoint PPT Presentation

Next Generation: Extraordinary expense pipeline funding Senate Bill 189 and Senate Bill 190 🔶 Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

2019 Next Generation Pipeline Bill Package SB 189: Riot boosting civil d u n C E F E A P 1 9 0 : S B recovery fund i t y a c t i v n t e m e g a g e n l i n e P i p e An Act to establish a fund to d f u n s e s p e n n e x a t i o d i n c o o r receive civil recoveries to t i o n t r u c o n s n e c offset costs incurred by riot p e l i e p i m o t P r o y b y b i l i t o n s i e s p a l r boosting, to make a f i s c a n d , t o u n d continuous appropriation g a f h i n a b l i s e s t f o r f e e e c i a l therefor, and to declare an s p z e a h o r i a u t o s , t n s e x p e r y e d i n a a o r e x t r emergency. s u o u n t i n c o k e a m a d t o a n e f o r , h e r o n t r i a t i r o p a p p . e n c y e r g e m a n l a r e d e c

Scope of SB 189 and SB 190 1. No single entity required to pay all the bills 2. Does not stop any pipeline project 3. Does not require any project move forward 4. No restrictions on peaceful protest or peaceful assembly 5. No new crimes created 6. No new criminal penalties 7. No additional jail sentences 8. Does not limit any First amendment rights 9. Does not allow rioters escape financial liability for damages caused

2019 Next Generation Pipeline Bill Package This proactive legislative package: 1. Spreads the risk and extraordinary cost of law enforcement for pipeline projects among: the State, counties, federal government, pipeline companies and rioters (SB 190) 2. Creates a fund and legal remedies to pursue out-of-state money funding the riots (SB 189)

The Facts Senate Bill 189 and Senate Bill 190 🔶 Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

Current law - Counties: 2 mils + % local effort 1. Emergency declaration 2. 2 mil law: county level 3. 40/60 split thereafter

Current law: Riot: SDCL 22-10

North Dakota: DAPL Arrests (90% + out of state)

State Perspective 1. Financial controls 2. Law enforcement expertise 3. Need for county coordination 4. Presently: some risk of extraordinary costs 5. Protect constitutional rights 6. Financial: sales and use tax; jobs during construction and increase county property tax base

County Perspective 1. No significant cash reserves 2. Not designed to manage a multi-county project 3. Present law: most risk of extraordinary costs 4. Long term gain in real estate tax base 5. Challenge: no short term revenue sources

“I support an all-of-the-above energy policy and that includes the ability to safely move energy resources to where they are needed but this national priority could become a flashpoint in my state. This next-generation pipeline funding model was developed to directly address issues caused by out-of-state rioters funded by out-of-state interests that have attacked nearby projects. The current model for developing major energy infrastructure projects clearly needed an update,” continued Noem .

Plan Principles Senate Bill 189 and Senate Bill 190 🔶 Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

Next Generation Plan Principles 1. Proactive and transparent 6. Rights end when violence 2. Coordinated response begins: rioters do not control 3. Protect rights: property, free speech economic development and peaceful assembly 7. Shared cost and risk: state, 4. Protect taxpayers from extraordinary counties, federal government, law enforcement costs pipeline companies and rioters 5. Recognize differences of opinion 8. Not to do: no new boards, AND the rule of law commissions or taxes

Plan Overview and Details Senate Bill 189 and Senate Bill 190 🔶 Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

SB 189 - Section by Section g t i n o s b o t R i o 9 : 1 8 B S n d f u y v e r o e c l r i v i c 1. Definitions a s h b l i t a e s t o c t A A n 2. Liability for Riot Boosting (what is it?) v i l c i v e e i e c o r d t u n f 3. Recovery to the State e t f s o f t o e s e r i o v e c r o t r i 4. Damages; Treble damages; Attorney fees b y d r r e c u i n s t s c o e a a k m o g , t i n o s t b o 5. Creation of the fund o n a t i p r i p r o p s a o u n u n t i c o 6. Effective date e l a r e c o d d t n , a f o r r e h e t c y . e n r g m e e a n

n d E F u P E A C 1 9 0 : S B e m e n t e n g a g e l i n e P i p SB 190: Section by Section a t i o n o o r d i n v i t y c a c t i f u n d e n s e s e x p n e p i p e l i m o t e P r o a l d f i s c i o n a n n s t r u c t c o y b i l i t y b p o n s i r e s o u n d , t i n g a f a b l i s h e s t e e f o r e c i a l f e a s p h o r i z a u t e s , t o x p e n s n a r y e 1. Definitions 11. Special Fee r a o r d i e x t u o u s c o n t i n a k e a m r , a n d h e r e f o a t i o n t p r o p r i a p e n c y . e m e r g e a n d e c l a r t o 2. Creation of the Fund 12. Lien 3. Claims 13. Bond: $1 million for each 10 miles 4. Pre-Approval of Claims 14. Cease and Desist from Secretary of DPS 5. Review of Claims 15. Release of bond 6. Claim Timeline 16. Secretary Discretion 7. Communications with pipeline company 17. Agreements permitted 8. Offset language 18. Rule Promulgation 9. Dispute resolution 19. Repealer: June 30, 2025 10. Initial deposit: 5% of bond 20. Effective Date

Top Two Concerns: Limit on Free Speech? No. State v. Bad Heart Bull, 257 N.W.2d 715 Timing of introduction. Why week 9? (S.D. 1977): “...the crime of riot in South Dakota is violence or the immediate threat 1. New administration: week 9 thereof. As such, it relates to and prohibits 2. First in nation - new approach certain defined conduct rather than forms of expression. 3. National discussion 4. Take the time to do it right Laws of this nature are needed and necessary to preserve good order and to 5. Months of collaboration and research protect all persons and all property from the violence of a few. They do not violate the constitutional rights of free expression and assembly as those rights end when violence begins.”

Safeguards: SB 189 and SB 190 Statutory Legislative Oversight: As to third parties: 1. SB 189: informational budget (p 3, line 1. Riot litigation: proceeds to State of SD 13) 2. Riot litigation: name of State only 2. SB 190: informational budget (p 4, line 3. Bond by pipeline company 12) 4. Additions to bond 3. Executive Board: release bond (p 11, line 5. Cease and desist order by DPS Secretary 5) 6. Communication within EMS 7. Appeal 8. Circuit Court action 9. Discretion granted to Secretary (section 16) 10. Riot litigation: optional

SB 189 and SB 190: Next Generation Funding Plan 1. Construction of a pipeline: not an emergency 2. Pipeline companies: not the enemy 3. Peaceful protestors: not the enemy 4. Challenge: law breakers and rioters 5. Opportunity for South Dakota: a. Pro economic growth b. Pro business environment c. Protect safety, security and rights d. Low taxes and regulation e. Proactive funding package

Next Generation: Extraordinary expense pipeline funding Senate Bill 189 and Senate Bill 190 🔶 Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive