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

SLIDE 1

Next Generation: Extraordinary expense pipeline funding

Senate Bill 189 and Senate Bill 190

🔶Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

SLIDE 2

2019 Next Generation Pipeline Bill Package

SB 189: Riot boosting civil recovery fund An Act to establish a fund to receive civil recoveries to

ffset costs incurred by riot

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SLIDE 3

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

SLIDE 4

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)

2019 Next Generation Pipeline Bill Package

SLIDE 5

The Facts

Senate Bill 189 and Senate Bill 190

🔶Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

SLIDE 6

Current law - Counties: 2 mils + % local effort

1. Emergency declaration
2. 2 mil law: county level
3. 40/60 split thereafter

SLIDE 7

Current law: Riot: SDCL 22-10

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SLIDE 9

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

SLIDE 10

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

SLIDE 11

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

SLIDE 12

“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

ut-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.

SLIDE 13

Plan Principles

Senate Bill 189 and Senate Bill 190

🔶Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

SLIDE 14

Next Generation Plan Principles

1. Proactive and transparent
2. Coordinated response
3. Protect rights: property, free speech

and peaceful assembly

4. Protect taxpayers from extraordinary

law enforcement costs

5. Recognize differences of opinion

AND the rule of law

6. Rights end when violence

begins: rioters do not control economic development

7. Shared cost and risk: state,

counties, federal government, pipeline companies and rioters

8. Not to do: no new boards,

commissions or taxes

SLIDE 15

Plan Overview and Details

Senate Bill 189 and Senate Bill 190

🔶Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive

SLIDE 16

SLIDE 17

SB 189 - Section by Section

1. Definitions
2. Liability for Riot Boosting (what is it?)
3. Recovery to the State
4. Damages; Treble damages; Attorney fees
5. Creation of the fund
6. Effective date

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SLIDE 18

SB 190: Section by Section

1. Definitions
2. Creation of the Fund
3. Claims
4. Pre-Approval of Claims
5. Review of Claims
6. Claim Timeline
7. Communications with pipeline company
8. Offset language
9. Dispute resolution
10. Initial deposit: 5% of bond
11. Special Fee
12. Lien
13. Bond: $1 million for each 10 miles
14. Cease and Desist from Secretary of DPS
15. Release of bond
16. Secretary Discretion
17. Agreements permitted
18. Rule Promulgation
19. Repealer: June 30, 2025
20. Effective Date

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SLIDE 19

Top Two Concerns:

Timing of introduction. Why week 9?

1. New administration: week 9
2. First in nation - new approach
3. National discussion
4. Take the time to do it right
5. Months of collaboration and research

Limit on Free Speech? No. State v. Bad Heart Bull, 257 N.W.2d 715 (S.D. 1977): “...the crime of riot in South Dakota is violence or the immediate threat

thereof. As such, it relates to and prohibits

certain defined conduct rather than forms of expression. Laws of this nature are needed and necessary to preserve good order and to 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.”

SLIDE 20

Safeguards: SB 189 and SB 190

As to third parties: 1. Riot litigation: proceeds to State of SD 2. Riot litigation: name of State only 3. Bond by pipeline company 4. Additions to bond 5. Cease and desist order by DPS Secretary 6. Communication within EMS 7. Appeal 8. Circuit Court action 9. Discretion granted to Secretary (section 16)

10. Riot litigation: optional

Statutory Legislative Oversight: 1. SB 189: informational budget (p 3, line 13) 2. SB 190: informational budget (p 4, line 12) 3. Executive Board: release bond (p 11, line 5)

SLIDE 21

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

SLIDE 22

Next Generation: Extraordinary expense pipeline funding

Senate Bill 189 and Senate Bill 190

🔶Pro Economic Development 🔶 Pro Free Speech 🔶 Proactive