00 CS FOR SENATE BILL NO. 86(RES) 01 "An Act relating to the sale or other disposal, leasing, or encumbrance of Alaska 02 Railroad Corporation land; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 42.40.120(b) is amended to read: 05 (b) Within 60 days after its first meeting, the board shall delegate the 06 following activities of the corporation to the chief executive officer or other executive 07 officers designated by the board: 08 (1) leasing subject to AS 42.40.350(b) and (d) [AS 42.40.285 AND 09 42.40.350(b) AND (d)], granting easements in, issuing permits for the use of, or 10 conveying other interests in property that do not constitute a transfer of the 11 corporation's entire interest in land; 12 (2) establishing specific rates, tariffs, divisions, and contract rate 13 agreements; 14 (3) making routine changes in service levels; 01 (4) establishing procurement and accounting procedures for the 02 corporation; and 03 (5) performing procurement activities. 04 * Sec. 2. AS 42.40.120(b), as amended by sec. 1 of this Act, is amended to read: 05 (b) Within 60 days after its first meeting, the board shall delegate the 06 following activities of the corporation to the chief executive officer or other executive 07 officers designated by the board: 08 (1) leasing subject to AS 42.40.285 and 42.40.350(b) and (d) 09 [AS 42.40.350(b) AND (d)], granting easements in, issuing permits for the use of, or 10 conveying other interests in property that do not constitute a transfer of the 11 corporation's entire interest in land; 12 (2) establishing specific rates, tariffs, divisions, and contract rate 13 agreements; 14 (3) making routine changes in service levels; 15 (4) establishing procurement and accounting procedures for the 16 corporation; and 17 (5) performing procurement activities. 18 * Sec. 3. AS 42.40.120(c) is amended to read: 19 (c) Notwithstanding (a) and (b) of this section, specific board approval is 20 required for the following: 21 (1) issuing bonds upon approval by the legislature; 22 (2) mortgaging or pledging corporation assets; 23 (3) donating property or other assets belonging to the corporation; 24 (4) acting as a surety or guarantor; 25 (5) adopting a long-range capital improvement and program plan; 26 (6) adopting annual reports; 27 (7) effecting general, comprehensive increases and decreases in rates; 28 (8) expanding or reducing services in a major way; 29 (9) expanding the main or branch rail lines including spur, industrial, 30 team, switching, or side tracks, other than performing routine track alignment as 31 necessary to maintain existing service levels; 01 (10) selecting independent auditors and accountants; 02 (11) entering into collective bargaining agreements; 03 (12) adopting annual budgets; 04 (13) beginning a capital project with an estimated completion cost of 05 more than $500,000 or an estimated completion time of more than one year; 06 (14) exchanging, donating, selling, or otherwise conveying, disposing 07 of, or encumbering its entire interest in land [SUBJECT TO APPROVAL BY THE 08 LEGISLATURE]; 09 (15) exercising the power of eminent domain. 10 * Sec. 4. AS 42.40.120(c), as amended by sec. 3 of this Act, is amended to read: 11 (c) Notwithstanding (a) and (b) of this section, specific board approval is 12 required for the following: 13 (1) issuing bonds upon approval by the legislature; 14 (2) mortgaging or pledging corporation assets; 15 (3) donating property or other assets belonging to the corporation; 16 (4) acting as a surety or guarantor; 17 (5) adopting a long-range capital improvement and program plan; 18 (6) adopting annual reports; 19 (7) effecting general, comprehensive increases and decreases in rates; 20 (8) expanding or reducing services in a major way; 21 (9) expanding the main or branch rail lines including spur, industrial, 22 team, switching, or side tracks, other than performing routine track alignment as 23 necessary to maintain existing service levels; 24 (10) selecting independent auditors and accountants; 25 (11) entering into collective bargaining agreements; 26 (12) adopting annual budgets; 27 (13) beginning a capital project with an estimated completion cost of 28 more than $500,000 or an estimated completion time of more than one year; 29 (14) exchanging, donating, selling, or otherwise conveying [, 30 DISPOSING OF, OR ENCUMBERING] its entire interest in land subject to 31 approval by the legislature; 01 (15) exercising the power of eminent domain. 02 * Sec. 5. AS 42.40.285, as amended by sec. 15 of this Act, is amended to read: 03 Sec. 42.40.285. Legislative approval required. Unless the legislature 04 approves the action by law, the corporation may not 05 (1) [REPEALED 06 (2)] issue bonds; 07 (2) [(3)] extend railroad lines; this paragraph does not apply to a spur, 08 industrial, team, switching, or side track; 09 (3) [(4) REPEALED 10 (5)] apply for or accept a grant of federal land within a municipality; 11 before approving an action under this paragraph, the legislature must determine that 12 the federal land is required for essential railroad purposes; this paragraph does not 13 apply to the application for or acceptance of a grant of federal land associated with 14 (A) the Anchorage-Wasilla line change project on Elmendorf 15 Air Force Base and Fort Richardson; 16 (B) the Fairbanks intermodal rail yard expansion project; 17 (C) a conveyance of rail properties of the Alaska Railroad 18 under the original Alaska Railroad Transfer Act of 1982 as set out in Title VI, 19 P.L. 97-468; in this subparagraph, "rail properties of the Alaska Railroad" has 20 the meaning given in 45 U.S.C. 1202(10); 21 (4) exchange, donate, sell, or otherwise convey its entire interest in 22 land; 23 (5) lease land for a period in excess of 95 years unless the 24 corporation reserves the right to terminate the lease if the land is needed for 25 railroad purposes. 26 * Sec. 6. AS 42.40.350(b) is amended to read: 27 (b) Railroad utility corridors shall be of a width at least 100 feet on both sides 28 of the centerline of the extended main or branch line, unless the corporation does not 29 own or control sufficient land to allow a corridor of that width. Railroad utility 30 corridors may be surveyed by the metes and bounds method. The corporation may not 31 convey or encumber its entire interest in land within a utility corridor except as 01 provided in AS 42.40.120(c)(14) [AS 42.40.285], 42.40.370(d), and 42.40.400. 02 However, the corporation may lease, subject to [AS 42.40.285 AND] (d) of this 03 section, grant easements in or permits for, or otherwise authorize use of portions of a 04 utility corridor for transportation, communication, and transmission purposes and 05 support functions associated with those purposes, and for commercial and other uses 06 authorized under this chapter if the use does not restrict other parallel uses of the 07 utility corridor. 08 * Sec. 7. AS 42.40.350(b), as amended by sec. 6 of this Act, is amended to read: 09 (b) Railroad utility corridors shall be of a width at least 100 feet on both sides 10 of the centerline of the extended main or branch line, unless the corporation does not 11 own or control sufficient land to allow a corridor of that width. Railroad utility 12 corridors may be surveyed by the metes and bounds method. The corporation may not 13 convey [OR ENCUMBER] its entire interest in land within a utility corridor except as 14 provided in AS 42.40.285 [AS 42.40.120(c)(14)], 42.40.370(d), and 42.40.400. 15 However, the corporation may lease, subject to AS 42.40.285 and (d) of this section, 16 grant easements in or permits for, or otherwise authorize use of portions of a utility 17 corridor for transportation, communication, and transmission purposes and support 18 functions associated with those purposes, and for commercial and other uses 19 authorized under this chapter if the use does not restrict other parallel uses of the 20 utility corridor. 21 * Sec. 8. AS 42.40.350(c) is amended to read: 22 (c) The corporation may lease, subject to [AS 42.40.285 AND] (d) of this 23 section, grant easements in or permits for, or otherwise authorize use of portions of 24 rail land. The [HOWEVER, THE] corporation may [NOT] convey or encumber its 25 entire interest in rail land [EXCEPT] as provided in AS 42.40.120(c)(14), 26 42.40.285(2) [AS 42.40.285, 42.40.352], 42.40.370(d), and 42.40.400. 27 * Sec. 9. AS 42.40.350(c), as amended by sec. 8 of this Act, is amended to read: 28 (c) The corporation may lease, subject to AS 42.40.285 and (d) of this section, 29 grant easements in or permits for, or otherwise authorize use of portions of rail land. 30 However, the [THE] corporation may not convey [OR ENCUMBER] its entire 31 interest in rail land except as provided in AS 42.40.285, 42.40.352 01 [AS 42.40.120(c)(14), 42.40.285(2)], 42.40.370(d), and 42.40.400. 02 * Sec. 10. AS 42.40.350(d) is amended to read: 03 (d) A lease, [OR] disposal, or encumbrance of land approved by the board 04 [LEGISLATURE] under AS 42.40.120(c)(14) [AS 42.40.285] by the corporation to a 05 party other than the state shall be made at fair market value as determined by a 06 qualified appraiser or by competitive bid. 07 * Sec. 11. AS 42.40.350(d), as amended by sec. 10 of this Act, is amended to read: 08 (d) A lease or [,] disposal [, OR ENCUMBRANCE] of land approved by the 09 legislature [BOARD] under AS 42.40.285 [AS 42.40.120(c)(14)] by the corporation 10 to a party other than the state shall be made at fair market value as determined by a 11 qualified appraiser or by competitive bid. 12 * Sec. 12. AS 42.40.352 is repealed and reenacted to read: 13 Sec. 42.40.352. Public notice and accounting for sale or other disposal or 14 encumbrance of land. (a) Before exchanging, donating, selling, or otherwise 15 conveying, disposing, or encumbering the corporation's entire interest in land under 16 AS 42.40.120(c)(14), the corporation shall 17 (1) publish public notice of the proposed action; and 18 (2) provide notice to persons having a leasehold interest in the land 19 proposed to be sold and offer the leaseholders the right of first refusal. 20 (b) The corporation shall separately account for the proceeds from the 21 exchange, donation, sale, or other conveyance or disposal of the corporation's entire 22 interest in land and shall report the earnings and balance in the account in the annual 23 report required by AS 42.40.260. Money in the account may be appropriated in 24 accordance with 45 U.S.C. 1207(a) (Alaska Railroad Transfer Act of 1982). 25 * Sec. 13. AS 42.40.352, as repealed and reenacted by sec. 12 of this Act, is repealed and 26 reenacted to read: 27 Sec. 42.40.352. Sale of land not necessary for railroad purposes. (a) The 28 corporation may sell land if the board finds (1) the land is not necessary for railroad 29 purposes, and (2) the sale of the land is in the best interest of the state. The sale of land 30 is subject to the terms and conditions of AS 42.40.285, 42.40.350(d), and this section. 31 (b) Before offering land for sale under this section, the corporation shall 01 (1) publish public notice of the proposed sale that includes the finding 02 by the board that the land is not necessary for railroad purposes and that the sale is in 03 the best interest of the state; 04 (2) provide notice to persons having a leasehold interest in the land 05 proposed to be sold and offer the leaseholders the right of first refusal; and 06 (3) receive legislative approval under AS 42.40.285. 07 (c) The corporation shall separately account for the proceeds from the sale of 08 land under this section and shall report the earnings and balance in the account in the 09 annual report required by AS 42.40.260. Money in the account may be appropriated in 10 accordance with 45 U.S.C. 1207(a)(5) (Alaska Railroad Transfer Act of 1982). 11 * Sec. 14. AS 42.40.410 is amended to read: 12 Sec. 42.40.410. Federal land. Except as provided in AS 42.40.285(3) 13 [AS 42.40.285(5)], the corporation may submit applications on its own behalf as an 14 instrumentality of the state for acquisition of federal land available under federal law 15 that will enhance the operations of the corporation if it is available under a federal law 16 other than the Alaska Statehood Act of 1958 (P.L. 85 - 508, 72 Stat. 339), as amended. 17 The corporation may receive in its own name conveyances of all interests in federal 18 land. 19 * Sec. 15. AS 42.40.285(1) and 42.40.285(4) are repealed. 20 * Sec. 16. Sections 1, 3, 6, 8, 10, 12, 14, and 15 of this Act take effect immediately under 21 AS 01.10.070(c). 22 * Sec. 17. Sections 2, 4, 5, 7, 9, 11, and 13 of this Act take effect three years after the 23 effective date of secs. 1, 3, 6, 8, 10, 12, 14, and 15 of this Act.