Legislature(2007 - 2008)HOUSE FINANCE 519

04/11/2007 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 155 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved CSHB 155(FIN) Out of Committee
+ HB 158 PRIVATE INVESTIGATORS/AGENCIES TELECONFERENCED
<Bill Hearing Canceled>
+ HB 178 EMPLOYM'T OF PEOPLE W/ DISABILITIES COM. TELECONFERENCED
Moved CSHB 178(HES) Out of Committee
+ HB 212 LAND TRANSFERS ALASKA RR & EKLUTNA TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 67 MUNI PROP TAX EXEMPTION FOR POLICE HOMES TELECONFERENCED
Moved CSHB 67(FIN) Out of Committee
HOUSE BILL NO. 212                                                                                                            
                                                                                                                                
     "An Act authorizing the transfer of land from the                                                                          
     Alaska Railroad Corporation to Eklutna, Inc.; and                                                                          
     providing for an effective date."                                                                                          
                                                                                                                                
REPRESENTATIVE  ANNA FAIRCLOUGH,  co-sponsor, introduced  the                                                                   
bill.   She explained that  Eklutna has  had a quarry  with a                                                                   
stockpile of unusable  material for a number of  years.  This                                                                   
legislation would  authorize the Alaska Railroad  Corporation                                                                   
(ARRC) to  transfer its interest  in the 48-acre  quarry back                                                                   
to Eklutna, Inc.  Issues on the  conditional use process have                                                                   
yet to be worked out.  She requested  support for the bill to                                                                   
"right a wrong".                                                                                                                
                                                                                                                                
Vice  Chair  Stoltze  agreed  that this  issue  needs  to  be                                                                   
resolved.                                                                                                                       
                                                                                                                                
3:22:13 PM                                                                                                                    
                                                                                                                                
CURTIS   MCQUEEN,   DIRECTOR   CORPORATE   AFFAIRS,   EKLUTNA                                                                   
INCORPORATED,  related  the history  of  the Alaska  Railroad                                                                   
Corporation's  relationship  with Eklutna,  Inc.   He  looked                                                                   
forward to resolving the issue.                                                                                                 
                                                                                                                                
JIM   ARNESON,   LAND   AND   REGULATORY   MANAGER,   EKLUTNA                                                                   
INCORPORATED,  explained how  the  land management  agreement                                                                   
was reached.                                                                                                                    
                                                                                                                                
Mr.  McQueen related  support from  Mayor Begich  as well  as                                                                   
many others.                                                                                                                    
                                                                                                                                
Representative Hawker asked about  who will end up owning the                                                                   
$1 million  worth of  inventory.   Mr. McQueen explained  the                                                                   
conditional use process  used.  He spoke of  support from the                                                                   
railroad.                                                                                                                       
                                                                                                                                
Vice  Chair Stoltze  described  the importance  of  Eklutna's                                                                   
holdings and their commitment to education.                                                                                     
                                                                                                                                
3:29:03 PM                                                                                                                    
                                                                                                                                
PATRICK   GAMBLE,   PRESIDENT    &   CEO,   ALASKA   RAILROAD                                                                   
CORPORATION,  related   the  history  of  the   problems  and                                                                   
business issues  surrounding the  quarry.   He shared  how he                                                                   
learned of the village's perspective  about the issue and the                                                                   
need for  a cultural solution.   He spoke  of his  journey to                                                                   
acquaint  himself  with  Eklutna's  concerns.    He  gave  an                                                                   
example of the give and take during  the process of transfer.                                                                   
He testified in support of HB 212.                                                                                              
                                                                                                                                
Vice  Chair Stoltze  pointed  out  that the  Commissioner  of                                                                   
Commerce is a member of the Board of Directors.                                                                                 
                                                                                                                                
3:35:05 PM                                                                                                                    
                                                                                                                                
DENNIS  FENERTY,  GROH  EGGERS,  LLC, stated  that  his  firm                                                                   
represents  Wells Fargo.   He related  that Wells Fargo  owns                                                                   
adjoining  land  to  the  railroad.   A  spur  bisects  Wells                                                                   
Fargo's  parcel.    He  wondered  if  the  railroad  will  be                                                                   
finished with  the spur  after the  rock has been  extracted.                                                                   
He stated  concern that the bill  not take action  that would                                                                   
affect the spur.                                                                                                                
                                                                                                                                
DAN ALEX, CHIEF, EKLUTNA, offered to answer questions.                                                                          
                                                                                                                                
3:39:16 PM                                                                                                                    
                                                                                                                                
Representative Hawker  asked if the $2 million  rock triggers                                                                   
any section 7(i) Alaska Native  Claims Settlement Act (ANCSA)                                                                   
consequences  for  Cook Inlet  Region,  Incorporated  (CIRI).                                                                   
Mr. McQueen  reported that they  have worked very  close with                                                                   
CIRI, which supports the cultural  approach.  CIRI has worked                                                                   
closely with Eklutna on a river restoration project.                                                                            
                                                                                                                                
Mr. Arneson  thought that  in 1998  or 1999 Congress  changed                                                                   
the law regarding section 7(i)  to exempt gravel from sharing                                                                   
amongst  corporations.   Representative  Hawker  wondered  if                                                                   
there  are any  residual consequences  for Cook  Inlet.   Mr.                                                                   
Arneson could not say.                                                                                                          
                                                                                                                                
3:43:41 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  suggested that further questions  be asked                                                                   
of the organizations involved.                                                                                                  
                                                                                                                                
HB  212  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                

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