HB 332: "An Act relating to the sale of the Alaska Railroad; and providing for an effective date."
00 HOUSE BILL NO. 332 01 "An Act relating to the sale of the Alaska Railroad; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 SALE OF THE ALASKA RAILROAD. (a) The governor shall issue, on or before 06 June 15, 2024, a request for proposals to purchase the Alaska Railroad and all other assets of 07 the Alaska Railroad Corporation that are necessary or convenient for the operation of the 08 railroad. 09 (b) On or before February 15, 2025, the governor shall enter into an agreement to sell 10 the Alaska Railroad to the most responsive offeror that agrees to 11 (1) continue operation of the railroad for a minimum of 50 years following the 12 date of sale of the railroad; 13 (2) accept assignment of all contracts, including collective bargaining 14 agreements and retirement obligations and agreements with connecting carriers, shippers, or 15 other persons concerning services, operation, property, and facilities of the Alaska Railroad
01 Corporation, entered into by the Alaska Railroad Corporation and in effect on the date of the 02 sale of the railroad, provided that the contracts are assignable under terms of the contract or 03 that the other parties to the contract consent to the assignment; and 04 (3) purchase the railroad for an amount that exceeds either the fair market 05 value of the railroad and the assets of the Alaska Railroad Corporation that are necessary or 06 convenient for the operation of the railroad or the amount that the state has expended to 07 obtain, maintain, and subsidize the railroad and the Alaska Railroad Corporation. 08 (c) An agreement to sell the Alaska Railroad under this Act is subject to approval by 09 the legislature. Upon entering into an agreement to sell the railroad, the governor shall 10 immediately submit the agreement to the legislature for review during a regular session of the 11 legislature. The legislature may disapprove the agreement by law. If the agreement is not 12 disapproved by the legislature before the adjournment of the regular session during which the 13 agreement is submitted, the agreement is approved. An agreement to sell the railroad that has 14 been disapproved by the legislature or that has not been submitted to the legislature for review 15 under this subsection is void. 16 (d) The Alaska Railroad Corporation may not enter into a contract or other agreement 17 that has the effect or purpose of substantially diminishing the value or marketability of the 18 Alaska Railroad. 19 (e) Notwithstanding other provisions of this Act, the state shall retain an easement for 20 transportation, communication, and transmission purposes on all land within the right-of-way 21 of the Alaska Railroad received by the state under the Alaska Railroad Transfer Act of 1982 22 (P.L. 97-468, Title VI; 96 Stat. 2556). Right-of-way fees for land subject to this subsection 23 shall be paid to the state. 24 (f) The governor shall contract for preparation of a report on the fair market value of 25 the Alaska Railroad and all other assets of the Alaska Railroad Corporation that are necessary 26 or convenient for the operation of the railroad by a qualified railroad appraiser. The governor 27 shall submit the results of the appraisal to the legislature by the 10th day of the First Regular 28 Session of the Thirty-Fourth Alaska State Legislature. A contract for the appraisal under this 29 subsection is exempt from AS 36.30 (State Procurement Code). 30 (g) The governor shall report to the legislature by the 10th day of the First Regular 31 Session of the Thirty-Fourth Alaska State Legislature regarding the procedures established for
01 and the progress made toward the sale of the Alaska Railroad as required by this Act. 02 (h) Upon the completion of the sale of the Alaska Railroad, the governor shall 03 dissolve the Alaska Railroad Corporation. Real property of the Alaska Railroad Corporation 04 that is identified as not necessary or convenient for the operation of the railroad under sec. 3 05 of this Act shall be transferred to and managed by the Department of Natural Resources upon 06 dissolution of the Alaska Railroad Corporation. 07 (i) The governor shall adopt regulations under AS 44.62 (Administrative Procedure 08 Act) to implement this Act. 09 (j) The sale of the railroad under this Act is not subject to AS 36.30 (State 10 Procurement Code) or AS 42.40 (Alaska Railroad Corporation Act). 11 (k) The sale of the railroad under this Act shall be contingent on execution of a 12 resource development agreement under sec. 2 of this Act. 13 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 EXPANSION OF THE ALASKA RAILROAD AND RESOURCE DEVELOPMENT 16 AGREEMENT. (a) In conjunction with the sale of the Alaska Railroad under this Act, the 17 legislature recognizes the critical role of the railroad in facilitating resource development 18 within the state's boundaries, in accordance with the principles set out in Article VIII of the 19 Alaska Constitution. 20 (b) The buyer of the Alaska Railroad under sec. 1(b) of this Act shall enter into a 21 resource development agreement with the state within 180 days after the effective date of the 22 sale. The resource development agreement must outline the buyer's commitment to actively 23 supporting and investing in the growth and expansion of the railroad to better serve resource 24 development needs in the state. 25 (c) The resource development agreement must include 26 (1) an agreement by the state to allocate a portion of the sale proceeds, as 27 negotiated in the sale agreement and subject to appropriation by the legislature, toward the 28 modernization, expansion, and maintenance of Alaska Railroad infrastructure, including the 29 construction of new railroad spurs and rail lines to access resource-rich areas of the state; 30 (2) the commitment for the buyer to work collaboratively with state agencies, 31 local communities, and relevant stakeholders to identify strategic locations for the
01 construction of new railroad spurs and infrastructure to facilitate resource extraction, 02 transportation, and processing; 03 (3) provisions for regular reporting by the buyer to the state and the legislature 04 regarding the implementation of the resource development agreement, including updates on 05 the construction of new railroad spurs and associated infrastructure; and 06 (4) a mechanism for resolving disputes between the buyer and the state related 07 to the resource development agreement. 08 (d) The resource development agreement is subject to approval by the legislature, 09 following the procedure set out in sec. 1(c) of this Act. If the agreement is not disapproved by 10 the legislature before the adjournment of the regular session during which the agreement is 11 submitted, the agreement is approved. 12 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 IDENTIFICATION OF ALASKA RAILROAD CORPORATION ASSETS. (a) On or 15 before August 1, 2024, the governor shall identify all assets, real and personal and tangible 16 and intangible, of the Alaska Railroad Corporation and classify those assets as necessary or 17 convenient for the operation of the railroad or as other assets of the corporation. The governor 18 shall submit the report to the Legislative Budget and Audit Committee. 19 (b) The Legislative Budget and Audit Committee may recommend amendments to the 20 identification or classification of assets listed in the report. 21 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).