Legislature(2023 - 2024)BARNES 124
05/02/2024 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB355 | |
| HB233 | |
| HB332 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 355 | TELECONFERENCED | |
| += | HB 233 | TELECONFERENCED | |
| += | HB 332 | TELECONFERENCED | |
HB 332-SALE OF ALASKA RAILROAD
4:10:37 PM
CHAIR MCCABE announced that the final order of business would be
HOUSE BILL NO. 332, "An Act relating to the sale of the Alaska
Railroad; and providing for an effective date."
4:10:59 PM
REPRESENTATIVE JESSE SUMNER, Alaska State Legislature, as prime
sponsor, offered updates on HB 332. He opined that the bill was
an interesting opportunity to look at the best way to sell the
Alaska Railroad Corporation (ARRC). He noted there were no
amendments to the proposed legislation.
4:12:02 PM
REPRESENTATIVE STUTES asked what the next committee of referral
was. She observed that the bill got the attention of ARRC and
that she hopes it "wakes them up" and motivates the corporation
to do something.
CHAIR MCCABE opined it was incumbent on the state to look at
ARRC's assets occasionally and make sure it is still doing what
it is intended to do. He read from an evaluation from an
investment firm in reference to the sale of a railroad from the
Lower 48. He reiterated previous conversation regarding the
railroad being key to developing Port MacKenzie, which is key to
development in the Matanuska-Susitna ("Mat-Su") borough.
4:16:33 PM
REPRESENTATIVE STUTES asked whether any committee members had
seen any numbers and to what degree ARRC was being subsidized by
rental income received off its property.
CHAIR MCCABE confirmed it had been brought up to him and that it
had been referred to as a "real estate company with a rail
problem."
4:17:42 PM
REPRESENTATIVE SUMNER noted that in light of hearing that ARRC
had bonding ability outside of construction, it could immerse in
other projects. He offered his belief that the railroad had
many missed opportunities.
4:18:39 PM
REPRESENTATIVE MINA noted her disappointment in the decline of
passenger service and how much more inaccessible it had become
for everyday Alaskans while still being "awesome" for tourism.
She said she hoped for more accessibility for passenger services
and that that would not go away if ARRC were sold to a private
company.
4:20:41 PM
CHAIR MCCABE agreed, and the deal would have to be structured as
such that ARRC would remain the only combined passenger and
freight service in the country. He pointed out that 70 percent
of the railroad's revenue comes from freight.
4:22:11 PM
REPRESENTATIVE STUTES asked whether there was rail accessibility
at the Port of Anchorage and, if so, whether the same freight
could be hauled up from Anchorage.
CHAIR MCCABE responded, "Possibly."
4:23:26 PM
REPRESENTATIVE MINA noted the difference in the ability to
leverage as a public corporation versus losing that as a
financing mechanism for rail projects is a tradeoff she
struggled with.
CHAIR MCCABE replied that that bears some exploration but there
must still be a framework for a sale in place. He noted other
grants that may be available.
4:25:07 PM
REPRESENTATIVE VANCE moved to report HB 332 out of committee
with individual recommendations and the accompanying fiscal
notes.
REPRESENTATIVE MINA objected. She restated her concerns over
the loss of passenger rail and the loss of funding, but she did
not disagree with privatizing the railroad; however, she opined
that the bill was not needed to make that happen.
4:26:06 PM
REPRESENTATIVE SUMNER said while it may be true a bill is not
needed to sell ARRC, the bill created an interest and allowed
parties to approach.
4:26:36 PM
REPRESENTATIVE STUTES commented that the bill also says to the
railroad that it is a state asset and should not be static.
4:27:10 PM
A roll call vote was taken. Representatives Vance, Stutes,
Sumner, C. Johnson, McKay, and McCabe voted in favor of the
motion to report HB 332 out of committee with individual
recommendations and the accompanying fiscal notes.
Representative Mina voted against it. Therefore, HB 332 was
reported out of the House Transportation Standing Committee by a
vote of 6-1.