CSSB 86(FIN) am: "An Act relating to the sale or other disposal, leasing, or encumbrance of Alaska Railroad Corporation land; relating to the financing and bonding authority of the Alaska Railroad Corporation; and providing for an effective date."
00 CS FOR SENATE BILL NO. 86(FIN) am 01 "An Act relating to the sale or other disposal, leasing, or encumbrance of Alaska 02 Railroad Corporation land; relating to the financing and bonding authority of the 03 Alaska Railroad Corporation; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 38.05.125(a) is amended to read: 06 (a) Each contract for the sale, lease, or grant of state land, and each deed to 07 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 08 38.05.321, 38.05.810 - 38.05.825, AS 38.08, [OR] AS 38.50, or AS 42.40.352, except 09 as provided in AS 38.50.050, is subject to the following reservations: "The party of the 10 first part, Alaska, hereby expressly saves, excepts, and reserves out of the grant hereby 11 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 12 minerals, fissionable materials, geothermal resources, and fossils of every name, kind, 13 or description, and which may be in or upon said land above described, or any part 14 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals,
01 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 02 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 03 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 04 servants upon said land, or any part or parts thereof, at any and all times for the 05 purpose of opening, developing, drilling, and working mines or wells on these or other 06 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 07 fissionable materials, geothermal resources, and fossils, and to that end it further 08 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 09 assigns forever, the right by its or their agents, servants, and attorneys at any and all 10 times to erect, construct, maintain, and use all such buildings, machinery, roads, 11 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such 12 soil, and to remain on said land or any part thereof for the foregoing purposes and to 13 occupy as much of said land as may be necessary or convenient for such purposes 14 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 15 generally all rights and power in, to, and over said land, whether herein expressed or 16 not, reasonably necessary or convenient to render beneficial and efficient the complete 17 enjoyment of the property and rights hereby expressly reserved." 18 * Sec. 2. AS 38.05.125(a), as amended by sec. 1 of this Act, is amended to read: 19 (a) Each contract for the sale, lease, or grant of state land, and each deed to 20 state land, properties, or interest in state land, made under AS 38.05.045 - 38.05.120, 21 38.05.321, 38.05.810 - 38.05.825, AS 38.08, or AS 38.50, [ OR AS 42.40.352,] except 22 as provided in AS 38.50.050, is subject to the following reservations: "The party of the 23 first part, Alaska, hereby expressly saves, excepts, and reserves out of the grant hereby 24 made, unto itself, its lessees, successors, and assigns forever, all oils, gases, coal, ores, 25 minerals, fissionable materials, geothermal resources, and fossils of every name, kind, 26 or description, and which may be in or upon said land above described, or any part 27 thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, 28 fissionable materials, geothermal resources, and fossils, and it also hereby expressly 29 saves and reserves out of the grant hereby made, unto itself, its lessees, successors, 30 and assigns forever, the right to enter by itself, its or their agents, attorneys, and 31 servants upon said land, or any part or parts thereof, at any and all times for the
01 purpose of opening, developing, drilling, and working mines or wells on these or other 02 land and taking out and removing therefrom all such oils, gases, coal, ores, minerals, 03 fissionable materials, geothermal resources, and fossils, and to that end it further 04 expressly reserves out of the grant hereby made, unto itself, its lessees, successors, and 05 assigns forever, the right by its or their agents, servants, and attorneys at any and all 06 times to erect, construct, maintain, and use all such buildings, machinery, roads, 07 pipelines, powerlines, and railroads, sink such shafts, drill such wells, remove such 08 soil, and to remain on said land or any part thereof for the foregoing purposes and to 09 occupy as much of said land as may be necessary or convenient for such purposes 10 hereby expressly reserving to itself, its lessees, successors, and assigns, as aforesaid, 11 generally all rights and power in, to, and over said land, whether herein expressed or 12 not, reasonably necessary or convenient to render beneficial and efficient the complete 13 enjoyment of the property and rights hereby expressly reserved." 14 * Sec. 3. AS 42.40.120(b) is amended to read: 15 (b) Within 60 days after its first meeting, the board shall delegate the 16 following activities of the corporation to the chief executive officer or other executive 17 officers designated by the board: 18 (1) leasing subject to AS 42.40.350(b) and (d) [AS 42.40.285 AND 19 42.40.350(b) AND (d)], granting easements in, issuing permits for the use of, or 20 conveying other interests in property that do not constitute a transfer of the 21 corporation's entire interest in land; 22 (2) establishing specific rates, tariffs, divisions, and contract rate 23 agreements; 24 (3) making routine changes in service levels; 25 (4) establishing procurement and accounting procedures for the 26 corporation; and 27 (5) performing procurement activities. 28 * Sec. 4. AS 42.40.120(b), as amended by sec. 3 of this Act, is amended to read: 29 (b) Within 60 days after its first meeting, the board shall delegate the 30 following activities of the corporation to the chief executive officer or other executive 31 officers designated by the board:
01 (1) leasing subject to AS 42.40.285 and 42.40.350(b) and (d) 02 [AS 42.40.350(b) AND (d)], granting easements in, issuing permits for the use of, or 03 conveying other interests in property that do not constitute a transfer of the 04 corporation's entire interest in land; 05 (2) establishing specific rates, tariffs, divisions, and contract rate 06 agreements; 07 (3) making routine changes in service levels; 08 (4) establishing procurement and accounting procedures for the 09 corporation; and 10 (5) performing procurement activities. 11 * Sec. 5. AS 42.40.120(c) is amended to read: 12 (c) Notwithstanding (a) and (b) of this section, specific board approval is 13 required for the following: 14 (1) issuing bonds upon approval by the legislature; 15 (2) mortgaging or pledging corporation assets; 16 (3) donating property or other assets belonging to the corporation; 17 (4) acting as a surety or guarantor; 18 (5) adopting a long-range capital improvement and program plan; 19 (6) adopting annual reports; 20 (7) effecting general, comprehensive increases and decreases in rates; 21 (8) expanding or reducing services in a major way; 22 (9) expanding the main or branch rail lines including spur, industrial, 23 team, switching, or side tracks, other than performing routine track alignment as 24 necessary to maintain existing service levels; 25 (10) selecting independent auditors and accountants; 26 (11) entering into collective bargaining agreements; 27 (12) adopting annual budgets; 28 (13) beginning a capital project with an estimated completion cost of 29 more than $500,000 or an estimated completion time of more than one year; 30 (14) exchanging, donating, selling, or otherwise conveying, disposing 31 of, or encumbering its entire interest in land [SUBJECT TO APPROVAL BY THE
01 LEGISLATURE]; 02 (15) exercising the power of eminent domain. 03 * Sec. 6. AS 42.40.120(c), as amended by sec. 5 of this Act, is amended to read: 04 (c) Notwithstanding (a) and (b) of this section, specific board approval is 05 required for the following: 06 (1) issuing bonds upon approval by the legislature; 07 (2) mortgaging or pledging corporation assets; 08 (3) donating property or other assets belonging to the corporation; 09 (4) acting as a surety or guarantor; 10 (5) adopting a long-range capital improvement and program plan; 11 (6) adopting annual reports; 12 (7) effecting general, comprehensive increases and decreases in rates; 13 (8) expanding or reducing services in a major way; 14 (9) expanding the main or branch rail lines including spur, industrial, 15 team, switching, or side tracks, other than performing routine track alignment as 16 necessary to maintain existing service levels; 17 (10) selecting independent auditors and accountants; 18 (11) entering into collective bargaining agreements; 19 (12) adopting annual budgets; 20 (13) beginning a capital project with an estimated completion cost of 21 more than $500,000 or an estimated completion time of more than one year; 22 (14) exchanging, donating, selling, or otherwise conveying [, 23 DISPOSING OF, OR ENCUMBERING] its entire interest in land subject to 24 approval by the legislature; 25 (15) exercising the power of eminent domain. 26 * Sec. 7. AS 42.40.285, as amended by sec. 21 of this Act, is amended to read: 27 Sec. 42.40.285. Legislative approval required. Unless the legislature 28 approves the action by law, the corporation may not 29 (1) [REPEALED 30 (2)] issue bonds; 31 (2) [(3)] extend railroad lines; this paragraph does not apply to a spur,
01 industrial, team, switching, or side track; 02 (3) [(4) REPEALED 03 (5)] apply for or accept a grant of federal land within a municipality; 04 before approving an action under this paragraph, the legislature must determine that 05 the federal land is required for essential railroad purposes; this paragraph does not 06 apply to the application for or acceptance of a grant of federal land associated with 07 (A) the Anchorage-Wasilla line change project on Elmendorf 08 Air Force Base and Fort Richardson; 09 (B) the Fairbanks intermodal rail yard expansion project; 10 (C) a conveyance of rail properties of the Alaska Railroad 11 under the original Alaska Railroad Transfer Act of 1982 as set out in Title VI, 12 P.L. 97-468; in this subparagraph, "rail properties of the Alaska Railroad" has 13 the meaning given in 45 U.S.C. 1202(10); 14 (4) exchange, donate, sell, or otherwise convey its entire interest in 15 land; 16 (5) lease land for a period in excess of 95 years unless the 17 corporation reserves the right to terminate the lease if the land is needed for 18 railroad purposes. 19 * Sec. 8. AS 42.40.350(b) is amended to read: 20 (b) Railroad utility corridors shall be of a width at least 100 feet on both sides 21 of the centerline of the extended main or branch line, unless the corporation does not 22 own or control sufficient land to allow a corridor of that width. Railroad utility 23 corridors may be surveyed by the metes and bounds method. The corporation may not 24 convey or encumber its entire interest in land within a utility corridor except as 25 provided in AS 42.40.120(c)(14) [AS 42.40.285], 42.40.370(d), and 42.40.400. 26 However, the corporation may lease, subject to [AS 42.40.285 AND] (d) of this 27 section, grant easements in or permits for, or otherwise authorize use of portions of a 28 utility corridor for transportation, communication, and transmission purposes and 29 support functions associated with those purposes, and for commercial and other uses 30 authorized under this chapter if the use does not restrict other parallel uses of the 31 utility corridor.
01 * Sec. 9. AS 42.40.350(b), as amended by sec. 8 of this Act, is amended to read: 02 (b) Railroad utility corridors shall be of a width at least 100 feet on both sides 03 of the centerline of the extended main or branch line, unless the corporation does not 04 own or control sufficient land to allow a corridor of that width. Railroad utility 05 corridors may be surveyed by the metes and bounds method. The corporation may not 06 convey [OR ENCUMBER] its entire interest in land within a utility corridor except as 07 provided in AS 42.40.285 [AS 42.40.120(c)(14)], 42.40.370(d), and 42.40.400. 08 However, the corporation may lease, subject to AS 42.40.285 and (d) of this section, 09 grant easements in or permits for, or otherwise authorize use of portions of a utility 10 corridor for transportation, communication, and transmission purposes and support 11 functions associated with those purposes, and for commercial and other uses 12 authorized under this chapter if the use does not restrict other parallel uses of the 13 utility corridor. 14 * Sec. 10. AS 42.40.350(c) is amended to read: 15 (c) The corporation may lease, subject to [AS 42.40.285 AND] (d) of this 16 section, grant easements in or permits for, or otherwise authorize use of portions of 17 rail land. The [HOWEVER, THE] corporation may [NOT] convey or encumber its 18 entire interest in rail land [EXCEPT] as provided in AS 42.40.120(c)(14), 19 42.40.285(2) [AS 42.40.285, 42.40.352], 42.40.370(d), and 42.40.400. 20 * Sec. 11. AS 42.40.350(c), as amended by sec. 10 of this Act, is amended to read: 21 (c) The corporation may lease, subject to AS 42.40.285 and (d) of this section, 22 grant easements in or permits for, or otherwise authorize use of portions of rail land. 23 However, the [THE] corporation may not convey [OR ENCUMBER] its entire 24 interest in rail land except as provided in AS 42.40.285, 42.40.352 25 [AS 42.40.120(c)(14), 42.40.285(2)], 42.40.370(d), and 42.40.400. 26 * Sec. 12. AS 42.40.350(d) is amended to read: 27 (d) A lease, [OR] disposal, or encumbrance of land approved by the board 28 [LEGISLATURE] under AS 42.40.120(c)(14) [AS 42.40.285] by the corporation to a 29 party other than the state shall be made at fair market value as determined by a 30 qualified appraiser or by competitive bid. 31 * Sec. 13. AS 42.40.350(d), as amended by sec. 12 of this Act, is amended to read:
01 (d) A lease or [,] disposal [, OR ENCUMBRANCE] of land approved by the 02 legislature [BOARD] under AS 42.40.285 [AS 42.40.120(c)(14)] by the corporation 03 to a party other than the state shall be made at fair market value as determined by a 04 qualified appraiser or by competitive bid. 05 * Sec. 14. AS 42.40.352 is repealed and reenacted to read: 06 Sec. 42.40.352. Sale or other disposal or encumbrance of land not 07 necessary for railroad purposes. (a) The corporation may exchange, donate, sell, or 08 otherwise convey, dispose of, or encumber the corporation's entire interest in land 09 under AS 42.40.120(c)(14), reserving to the state the interests required by 10 AS 38.05.125, if the board finds the 11 (1) interest in the land is not necessary for railroad purposes; and 12 (2) exchange, donation, sale, or other conveyance, disposal, or 13 encumbrance of the entire interest in the land is in the best interests of the state. 14 (b) At least 60 days before exchanging, donating, selling, or otherwise 15 conveying, disposing of, or encumbering the corporation's entire interest in land under 16 this section, the corporation shall 17 (1) publish public notice of the proposed action, including a summary 18 of the board's findings under (a) of this section; 19 (2) notify adjacent landowners of the proposed action by registered 20 mail; and 21 (3) provide notice, including a summary of the board's findings under 22 (a) of this section, and an opportunity to comment on the proposed action to the 23 Department of Natural Resources, the Department of Transportation and Public 24 Facilities, and the governing body of each municipality in which the land is located. 25 (c) Before selling the corporation's entire interest in land under this section, 26 the corporation shall provide notice to persons having a leasehold interest in the land 27 proposed to be sold and offer the leaseholders the right of first refusal. A leaseholder 28 shall exercise a right of first refusal within 90 days after receiving the offer. The right 29 of first refusal is extinguished if rejected by the leaseholder in writing. 30 (d) The corporation shall separately account for the proceeds from the 31 exchange, donation, sale, or other conveyance or disposal of the corporation's entire
01 interest in land and shall report the earnings and balance in the account in the annual 02 report required by AS 42.40.260. Money in the account may be appropriated in 03 accordance with 45 U.S.C. 1207(a) (Alaska Railroad Transfer Act of 1982). 04 * Sec. 15. AS 42.40.352, as repealed and reenacted by sec. 14 of this Act, is repealed and 05 reenacted to read: 06 Sec. 42.40.352. Sale of land not necessary for railroad purposes. (a) The 07 corporation may sell land if the board finds (1) the land is not necessary for railroad 08 purposes, and (2) the sale of the land is in the best interest of the state. The sale of land 09 is subject to the terms and conditions of AS 42.40.285, 42.40.350(d), and this section. 10 (b) Before offering land for sale under this section, the corporation shall 11 (1) publish public notice of the proposed sale that includes the finding 12 by the board that the land is not necessary for railroad purposes and that the sale is in 13 the best interest of the state; 14 (2) provide notice to persons having a leasehold interest in the land 15 proposed to be sold and offer the leaseholders the right of first refusal; and 16 (3) receive legislative approval under AS 42.40.285. 17 (c) The corporation shall separately account for the proceeds from the sale of 18 land under this section and shall report the earnings and balance in the account in the 19 annual report required by AS 42.40.260. Money in the account may be appropriated in 20 accordance with 45 U.S.C. 1207(a)(5) (Alaska Railroad Transfer Act of 1982). 21 * Sec. 16. AS 42.40.410 is amended to read: 22 Sec. 42.40.410. Federal land. Except as provided in AS 42.40.285(3) 23 [AS 42.40.285(5)], the corporation may submit applications on its own behalf as an 24 instrumentality of the state for acquisition of federal land available under federal law 25 that will enhance the operations of the corporation if it is available under a federal law 26 other than the Alaska Statehood Act of 1958 (P.L. 85 - 508, 72 Stat. 339), as amended. 27 The corporation may receive in its own name conveyances of all interests in federal 28 land. 29 * Sec. 17. AS 42.40.435 is amended to read: 30 Sec. 42.40.435. Exchange of land. The corporation may exchange land subject 31 to AS 42.40.352 [AS 42.40.285]. The corporation is an instrumentality and agency of
01 the state for purposes of exchanging land with the United States, municipalities, 02 corporations including corporations formed under 43 U.S.C. 1601 - 1628 (Alaska 03 Native Claims Settlement Act), and individuals. 04 * Sec. 18. AS 42.40.435, as amended by sec. 17 of this Act, is amended to read: 05 Sec. 42.40.435. Exchange of land. The corporation may exchange land subject 06 to AS 42.40.285 [AS 42.40.352]. The corporation is an instrumentality and agency of 07 the state for purposes of exchanging land with the United States, municipalities, 08 corporations including corporations formed under 43 U.S.C. 1601 - 1628 (Alaska 09 Native Claims Settlement Act), and individuals. 10 * Sec. 19. AS 42.40.550 is amended to read: 11 Sec. 42.40.550. Extension of railroad to Fort Greely. The corporation may 12 acquire a transportation corridor between the existing railroad corridor and Fort 13 Greely, Alaska, and construct a rail line within the corridor to provide rail service to 14 the Fort Greely area and points between. The transportation corridor may be 15 designated for a use identified under AS 42.40.350(b) and other transportation and 16 utility uses. The corporation may also acquire land along the corridor for use as rail 17 land that can be developed for terminal, station, and maintenance facilities, switching 18 yards, and any other purposes associated with the railroad utility corridor. [THE 19 CORPORATION MAY PROVIDE FINANCING FOR THE ACQUISITION, 20 CONSTRUCTION, IMPROVEMENT, MAINTENANCE, EQUIPPING, AND 21 OPERATION OF THE RAIL LINE AND RELATED FACILITIES BETWEEN THE 22 EXISTING RAILROAD CORRIDOR AND FORT GREELY, ALASKA.] 23 * Sec. 20. AS 42.40.695 is amended to read: 24 Sec. 42.40.695. Public purpose of bonds. Bonds [OF THE CORPORATION 25 ISSUED TO FINANCE FACILITIES DESCRIBED IN AS 42.40.550 AND 26 42.40.560 AND BONDS] of the corporation issued to finance the acquisition, 27 construction, improvement, maintenance, equipping, and operation of real and 28 personal property, including facilities and equipment, described in AS 42.40.570 are 29 issued by a public corporation and an instrumentality of the state for an essential 30 public and governmental purpose. 31 * Sec. 21. AS 42.40.285(1), 42.40.285(4), 42.40.560, and 42.40.630(b) are repealed.
01 * Sec. 22. Sections 1 and 4, ch. 77, SLA 1994, secs. 1 and 5, ch. 71, SLA 2003, and sec. 3, 02 ch. 46, SLA 2004, are repealed. 03 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 REPORTING REQUIREMENT. Annually, beginning in 2019 and ending in 2021, not 06 later than March 1 of each regular legislative session, the Alaska Railroad Corporation shall 07 present to the Resources Committees of the legislature and the Finance Committees of the 08 legislature a report on its activities under this Act. The Alaska Railroad Corporation may 09 satisfy the reporting requirement under this section by appearing in person before the 10 Resources Committees of the legislature and the Finance Committees of the legislature. 11 * Sec. 24. Sections 1, 3, 5, 8, 10, 12, 14, 16, 17, 19, 20, 21, and 22 of this Act take effect 12 immediately under AS 01.10.070(c). 13 * Sec. 25. Sections 2, 4, 6, 7, 9, 11, 13, 15, and 18 of this Act take effect three years after 14 the effective date of secs. 1, 3, 5, 8, 10, 12, 14, 17, and 21 of this Act.