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