04/14/2012 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 146(RES)                                                                                                
                                                                                                                                
     "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."                                                                                          
                                                                                                                                
REPRESENTATIVE TAMMY WILSON, explained  that HB 146 restored                                                                    
a  reversionary  property right  to  those  affected by  the                                                                    
repeal of Section  1209 of the Alaska  Railroad Transfer Act                                                                    
(ARTA).  In  2003, at  the  urging  of the  Alaska  Railroad                                                                    
Corporation,  Congress repealed  a few  sections of  ARTA in                                                                    
order to address  some title issues of  concern; however, in                                                                    
the process, the property  owners' reversionary right, which                                                                    
allowed  ownership of  the property  to be  transferred back                                                                    
once  the  right of  way  was  no  longer  in use  was  also                                                                    
repealed. She pointed  out that it was important  to keep in                                                                    
mind  that the  bill only  restored a  right that  was taken                                                                    
away  and did  not grant  anyone special  privileges, beyond                                                                    
what was  originally in  ARTA. She  furthered that  the bill                                                                    
only applied to the homesteads  along the Eielson Spur Line.                                                                    
She  pointed  out that  all  of  the affected  parties,  the                                                                    
railroad included, agreed on the bill as written.                                                                               
                                                                                                                                
Co-Chair  Stedman  discussed a  zero  fiscal  note from  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
and  an indeterminate  fiscal note  from  the Department  of                                                                    
Labor and Workforce Development.                                                                                                
                                                                                                                                
BONNE                                                                                                                           
stated that  it would return  her family's right  to reclaim                                                                    
their property if the railroad ever moved.                                                                                      
                                                                                                                                
Co-Chair  Stedman observed  that Ms.  Woldstad had  traveled                                                                    
all  the  way  from  the   Fairbanks  area  to  testify  and                                                                    
indicated  that further  testimony  regarding her  situation                                                                    
would be welcomed.                                                                                                              
                                                                                                                                
Ms.  Woldstad  explained  that   her  family  owned  a  U.S.                                                                    
patented  homestead  that   pre-existed  the  railroad.  She                                                                    
related  that when  the  railroad was  laid  to Eielson  Air                                                                    
Force Base,  it had  crossed over  the property.  She stated                                                                    
that  under the  March 12,  1914 act,  the railroad  had the                                                                    
right to  cross the property  and that her family  had never                                                                    
argued  or  disputed that  right;  however,  in 2003,  while                                                                    
attempting to fix track problems  in Anchorage that involved                                                                    
land  swapping, the  railroad had  asked Congress  to repeal                                                                    
the reversionary  clause. She explained that  the unintended                                                                    
consequence of  repealing the  reversionary clause  was that                                                                    
her family had lost their  mechanism to reclaim ownership of                                                                    
the property if and when the railroad ever moved.                                                                               
                                                                                                                                
10:05:03 AM                                                                                                                   
                                                                                                                                
HB  146  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.