04/06/2011 01:30 PM House FINANCE

HOUSE BILL NO. 146                                                                                                            
                                                                                                                                
     "An  Act  authorizing the  transfer  of  land from  the                                                                    
     State of Alaska and  the Alaska Railroad Corporation to                                                                    
     property  owners  along  the  Eielson  Spur  Line;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
3:07:34 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough MOVED to ADOPT  CS Work Draft CSHB 146                                                                    
(FIN)  27-LS0505\I  (4/5/11  Kane)  as  a  working  document                                                                    
before the committee.                                                                                                           
                                                                                                                                
Co-Chair Stoltze OJBECTED for discussion.                                                                                       
                                                                                                                                
REPRESENTATIVE  TAMMY WILSON,  SPONSOR  spoke  to the  title                                                                    
change in the  CS. She remarked that the title  of the House                                                                    
Resources   Committee  version   was   very  specific.   The                                                                    
legislation was thoroughly vetted  and discussed between all                                                                    
parties  and their  attorneys before  it was  drafted. House                                                                    
Bill 146  was a  culmination of  seven years  of negotiation                                                                    
and hard work between involved  parties. She shared that her                                                                    
constituent,   Bonnie  Wolstad   was  instrumental   in  the                                                                    
process.                                                                                                                        
                                                                                                                                
Representative  Wilson  explained  that HB  146  restored  a                                                                    
reversionary property right taken  away from property owners                                                                    
along  the   Eielson  Spur.   In  2003,   Congress  repealed                                                                    
reversionary sections  of the  Alaska Railroad  Transfer Act                                                                    
(ARTA)  at the  request of  the Alaska  Railroad Corporation                                                                    
(ARC)  to   address  title  issues.  In   the  process,  the                                                                    
landowner's  reversionary  rights  were repealed.  The  bill                                                                    
restored ownership of their property  after the easement was                                                                    
no  longer used.   She  stressed that  the legislation  only                                                                    
restored  a right  that was  taken away  and does  not grant                                                                    
anyone  special   privileges  beyond  the   original  rights                                                                    
established  in  ARTA.  In addition,  all  affected  parties                                                                    
agreed on the bill.                                                                                                             
                                                                                                                                
3:11:18 PM                                                                                                                    
                                                                                                                                
Representative Wilson  believed that  the issue  was simple.                                                                    
The  property  owners  granted  the  railroad  easements  to                                                                    
enable   railroad  expansion.   Subsequently,  the   federal                                                                    
government  changed   the  law.  She  emphasized   that  the                                                                    
legislation restored property  owner's rights. She confirmed                                                                    
that the bill would not affect the military.                                                                                    
                                                                                                                                
BONNIE WOLDSTAD,  NORTH POLE (via  teleconference), recapped                                                                    
that  HB   146  reinstated  the  original   ARTA  provisions                                                                    
(Sections  1208-1209) that  provided a  mechanism to  revert                                                                    
property  ownership  back  to  the  landowners  if  the  ARC                                                                    
abandons use of the property.                                                                                                   
                                                                                                                                
Co-Chair Stoltze  reported that ARC retained  many easements                                                                    
in   his   district.   He  expressed   disappointment   that                                                                    
legislation was required  for the railroad to  "do the right                                                                    
thing."  Representative Wilson  assured  that the  attorneys                                                                    
from  all parties  approved the  language in  the bill.  She                                                                    
cautioned that the CS title  change could complicate passage                                                                    
of the  bill. Co-Chair Stoltze  read the new title,  "An Act                                                                    
relating to  the Alaska Railroad Corporation;  and providing                                                                    
for an effective date." He  maintained that the substance of                                                                    
the bill  did not  change. He  remained committed  to fixing                                                                    
the problem.                                                                                                                    
                                                                                                                                
3:16:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  asked whether  the  new  CS would  ensure                                                                    
resolution of the issue between ARC and the landowners.                                                                         
                                                                                                                                
WYN MENEFEE,  ACTING DIRECTOR, DIVISION OF  MINING, LAND AND                                                                    
WATER, DEPARTMENT  OF NATURAL RESOURCES, responded  that the                                                                    
change would not affect the outcome.                                                                                            
                                                                                                                                
Representative  Gara   asked  if  the   landowners  received                                                                    
compensation  in exchange  for ARC  easement. Representative                                                                    
Wilson  answered  that  compensation  was not  part  of  the                                                                    
reversionary agreement.                                                                                                         
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSHB  146(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  146(FIN) was  REPORTED  out of  Committee  with a  "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
notes: FN1, CED; FN2, DNR.