00                            HOUSE BILL NO. 357                                                                          
01 "An Act relating to the sale of land owned by the Alaska Railroad that is not needed for                                
02 railroad purposes."                                                                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 42.40.350(c) is amended to read:                                                                   
05            (c)  The corporation may lease, subject to AS 42.40.285 and (d) of this section,                             
06       grant easements in or permits for, or otherwise authorize use of portions of rail land.                           
07       However, the corporation may not convey its entire interest in rail land except as                                
08       provided in AS 42.40.285, 42.40.352, 42.40.370(d), and 42.40.400.                                         
09    * Sec. 2. AS 42.40 is amended by adding a new section to read:                                                     
10            Sec. 42.40.352. Sale of land not necessary for essential railroad purposes.                                
11       (a) The corporation may sell land if the board finds (1) the land is not necessary for                            
12       essential railroad purposes, and (2) the sale of the land is in the best interest of the                          
13       state. The sale of land is subject to the terms and conditions of AS 42.40.285,                                   
14       42.40.350(d), and this section.                                                                                   

01            (b)  Before offering land for sale under this section, the railroad shall                                    
02                 (1)  publish public notice of the proposed sale that includes the finding                               
03       by the board that the land is not necessary for railroad purposes and that the sale is in                         
04       the best interest of the state;                                                                                   
05                 (2)  provide notice to persons having a leasehold interest in the land                                  
06       proposed to be sold and offer the leaseholders the right of first refusal; and                                    
07                 (3)  receive legislative approval under AS 42.40.285.                                                   
08            (c)  The corporation shall separately account for the proceeds from the sale of                              
09       land under this section and shall report the earnings and balance in the account in the                           
10       annual report required by AS 42.40.260. Money in the account may be appropriated in                               
11       accordance with 45 U.S.C. 1207(a)(5) (Alaska Railroad Transfer Act of 1982).