04/02/2010 01:30 PM House FINANCE

HOUSE BILL NO. 357                                                                                                            
                                                                                                                                
     "An Act relating to the sale of land owned by the                                                                          
     Alaska Railroad that is not needed for railroad                                                                            
     purposes."                                                                                                                 
                                                                                                                                
Co-Chair Stoltze  inquired about the reason  that the Alaska                                                                    
Railroad does not  fall under the Budget Act  and how fiscal                                                                    
notes are issued.                                                                                                               
                                                                                                                                
JOHN   BINKLEY,  CHAIRMAN,   ALASKA  RAILROAD   CORPORATION,                                                                    
deferred to staff to answer.                                                                                                    
                                                                                                                                
Co-Chair Stoltze asked  Mr. Binkley to read a  letter he had                                                                    
sent  to   committee  members.   Mr.  Binkley   reported  on                                                                    
strategies to  work closer with the  railroad's partners and                                                                    
leaseholders.  One   is  to  change  the   requirement  that                                                                    
leaseholders pay a  $300 fee whenever they  are applying for                                                                    
a  renewal or  an original  lease. Another  is to  change to                                                                    
electronic   notices.  He   suggested   a   change  to   the                                                                    
leaseholder's policy  so that  when an  appraisal decreases,                                                                    
the  rent decreases.  He proposed  to  have more  meaningful                                                                    
discussions to  look for efficiencies for  leaseholders, yet                                                                    
protect investments for shareholders.                                                                                           
                                                                                                                                
2:24:54 PM                                                                                                                    
                                                                                                                                
Representative Gara  questioned what  the railroad  would do                                                                    
with  money  from  land  sales.   The  bill  says  that  the                                                                    
corporation  should separately  account for  the money,  but                                                                    
does not  say how the  money is to  be spent. The  bill also                                                                    
says,  "Money   in  the  account  may   be  appropriated  in                                                                    
accordance with  the Railroad Transfer  Act." Representative                                                                    
Gara  asked if  the money  could  go toward  staff costs  or                                                                    
salaries.                                                                                                                       
                                                                                                                                
Mr. Binkley did not think so.                                                                                                   
                                                                                                                                
2:26:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze noted  that Legal  Services pointed  out a                                                                    
possibility  that a  change made  to the  bill in  the House                                                                    
Transportation    Committee    may   have    violated    the                                                                    
constitution, so a new committee substitute was written.                                                                        
                                                                                                                                
Vice-Chair Thomas  MOVED to ADOPT  the CS for HB  357 (FIN),                                                                    
26-LS1356\S, Bullock, 3/30/10, as the working document.                                                                         
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
JOHN COHEN,  STAFF, CO-CHAIR  STOLTZE, explained  a one-word                                                                    
change  on  page 2,  line  9.  The word  "appropriated"  was                                                                    
changed  to "used"  by the  House Transportation  Committee.                                                                    
The attached Legal Services memo  explains that this was out                                                                    
of compliance  with the state constitution.  It violates the                                                                    
federally    mandated    dedicated   fund    for    railroad                                                                    
appropriation usage. The change  in Version S reverts "used"                                                                    
back to "appropriated".                                                                                                         
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
further  OBJECTION,  CSHB   357(FIN)  26-LS1356\S,  Bullock,                                                                    
3/30/10 was adopted.                                                                                                            
                                                                                                                                
2:28:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze read the Letter of Intent for HB 357:                                                                          
                                                                                                                                
     It is  the intent of  HB 357,  "An Act relating  to the                                                                    
     sale of  land owned by  the Alaska Railroad that  it is                                                                    
     not intended for railroad purposes,"  to not impact any                                                                    
     outstanding Federal  issue which has not  been resolved                                                                    
     in regards to railroad  lands, easements, or rights-of-                                                                    
     way.  It  is not  the  intent  of this  legislation  to                                                                    
     impede, damage, or disrupt  any ongoing claims, issues,                                                                    
     or cases involving the  Alaska Railroad Corporation and                                                                    
     governmental, tribal, or private sector disputes.                                                                          
                                                                                                                                
Co-Chair Stoltze MOVED to ADOPT  the Letter of Intent. There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
2:29:05 PM                                                                                                                    
                                                                                                                                
Representative  Kelly remarked  that  the  Letter of  Intent                                                                    
would cover the previously mentioned concern.                                                                                   
                                                                                                                                
Vice-Chair  Thomas  MOVED to  report  CSHB  367(FIN) out  of                                                                    
Committee  with individual  recommendations,  the Letter  of                                                                    
Intent, and the accompanying fiscal note.                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Representative Gara  supported the sponsor's intent,  but he                                                                    
was not  sure that  the railroad should  be allowed  to sell                                                                    
land that belongs to the state and keep the money.                                                                              
                                                                                                                                
Co-Chair Stoltze shared some of the same concerns.                                                                              
                                                                                                                                
Co-Chair Stoltze WITHDREW his objection                                                                                         
                                                                                                                                
CSHB  357(FIN)  was  REPORTED  out   of  Committee  with  no                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN1 (CED)                                                                                                                       
                                                                                                                                
2:31:47 PM