HB 146-LAND TRANSFER FROM STATE AND ALASKA RR    2:04:13 PM CO-CHAIR SEATON announced that the next order of business would be 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." 2:04:51 PM CO-CHAIR SEATON moved to adopt CSHB 146, Version 27-LS0505\M, Kane, 2/10/11, as the working document. REPRESENTATIVE P. WILSON objected. 2:05:01 PM RICK VANDERKOLK, Staff, Representative Tammie Wilson, Alaska State Legislature, pointed out that the change encompassed in Version M can be found on page 2, line 18. He explained that language was intended to deal with different abutting owners on each side of a right-of-way. The original legislation implied that the right-of-way could be conveyed to another person other than the adjoining land owner, which Version M corrects. He characterized it as a technical change. 2:05:56 PM REPRESENTATIVE P. WILSON asked if Section 2 of Version M is entirely new. MR. VANDERKOLK replied no, just the language change on page 2, line 18. CO-CHAIR SEATON clarified that Section 2 is adding a new section, and therefore no existing law is being changed rather changes were made to the proposed new language. MR. VANDERKOLK noted his agreement. 2:07:03 PM MR. VANDERKOLK informed the committee that in 2003 Congress repealed the right-of-way reversion provision in the Alaska Railroad Transfer Act (ARTA). This legislation, he explained, reinstates the mechanism for landowners along the Eielson Spur to receive ownership of their property after the easement is no longer in use. He emphasized that HB 146 is only for landowners along the Eielson Spur. He then related that the Alaska Railroad Corporation (ARRC) supports this amendment [to ARTA] and the committee packet includes a letter from the ARRC Board chairman. Mr. VanderKolk explained that in 2000 ARRC requested assistance from Alaska's congressional delegation and questions arose from the first rail alignments as some of the spur lines hadn't been used since 1985. The simplest solution at that time was to repeal section 1209 of ARTA. However, an unintended consequence of the repeal was that the reversionary property rights the abutting owners had was repealed in 2003, which was realized by some property owners in 2006. The aforementioned was brought to the attention of ARRC, which supports HB 146. 2:08:48 PM CO-CHAIR SEATON inquired as to why [section 1209 of ARTA] was repealed. MR. VANDERKOLK clarified that there were some alignment title issues that had to be addressed. 2:09:33 PM REPRESENTATIVE GARDNER asked if the land is supposed to revert to the previous owner or is land that is no longer in use and merely abuts the landowner's land given to the landowner. MR. VANDERKOLK answered that the legislation intends to return the landowner's previous rights in the event that all entities discontinue use of the right-of-way. 2:09:56 PM REPRESENTATIVE GARDNER inquired as to how the ARRC acquired the right-of-way from the original landowners. MR. VANDERKOLK deferred to the ARRC attorney. 2:11:03 PM BILL HUPPRICH, Vice President, General Counsel, Alaska Railroad Corporation, explained that this matter goes back to the 1914 act that authorized the construction of the Alaska Railroad. Pursuant to that act, the federal government reserved a 200-foot right-of-way for the construction of railroads, telegraph, and telephone lines across all federally owned land in Alaska. At that time, every acre of land in Alaska was owned by the federal government. Construction of the railroad began in 1916 and was completed in 1921. Then World War II occurred and in 1947 the U.S. Army decided that a railroad needed to be constructed from the terminus of the original railroad at Fairbanks to what is now known as Eielson Air Force Base. By that time several folks had homesteaded along the proposed railroad route. The homesteading documents and eventual patents for the land included a reservation for a 200-foot right-of-way for the Alaska Railroad. Based on that reservation, when the U.S. Army constructed the Eielson branch, it exercised that right and didn't have to pay any of the homesteaders along the right-of- way for any land. 2:13:20 PM CO-CHAIR SEATON returned the gavel to Co-Chair Feige. 2:13:44 PM REPRESENTATIVE P. WILSON related her understanding that this isn't all of the land owned by ARRC, but only the Eielson Spur line that hasn't been used by ARRC for 18 continuous years. She further related her understanding that the landowner would also have to request return of the land. MR. VANDERKOLK said that is correct. 2:14:36 PM REPRESENTATIVE MUNOZ inquired as to what happens in a situation in which the land has been sold numerous times since the original act. MR. VANDERKOLK answered that he believes the current owner abutting the right-of-way will [receive the right-of-way land]. 2:15:07 PM REPRESENTATIVE GARDNER inquired as to why HB 146 should only apply to the Eielson Spur [right-of-way land]. MR. VANDERKOLK deferred to Mr. Hupprich. MR. HUPPRICH explained that it only applies to the Eielson Spur because that branch is unique as it wasn't constructed until 1947 at which time there were a handful of homesteaders on the Eielson branch. The aforementioned situation is unique to the Eielson Spur and is unlike any other area of the railroad, which stretches from Seward to Fairbanks. When construction was completed in 1921, there were no other landowners that had patents to the land along the railroad right-of-way. However, by 1947 people were starting to move into the state and along the Eielson Spur there were five to six homesteaders. 2:17:02 PM CO-CHAIR FEIGE pointed out that there are existing railroad rights-of-way, specifically along the Matanuska River, although the tracks were taken up years ago. He asked if HB 146 would apply to those properties along those existing rights-of-way. MR. HUPPRICH replied no, and specified that HB 146 is written to only apply to the Eielson Spur. 2:17:47 PM REPRESENTATIVE HERRON asked if the military used the Eielson Spur right-of-way to move artillery and tanks to training sites in the Tanana Valley. He then asked whether the military needs that right-of-way any longer. MR. HUPPRICH clarified that the right-of-way is owned by ARRC, not the U.S. military. The ARRC routinely runs trains into Fort Wainwright and Eielson Air Force Base for various reasons, including to bring coal into the bases for the coal-fired plants and to move the Stryker Brigade. Therefore, the [rail service] is still needed for military purposes. 2:19:37 PM CO-CHAIR FEIGE announced that HB 146 would be held over. 2:19:48 PM The committee took an at-ease from 2:19 p.m. to 2:20 p.m.