HOUSE BILL NO. 146 "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." 3:07:34 PM Vice-chair Fairclough MOVED to ADOPT CS Work Draft CSHB 146 (FIN) 27-LS0505\I (4/5/11 Kane) as a working document before the committee. Co-Chair Stoltze OJBECTED for discussion. REPRESENTATIVE TAMMY WILSON, SPONSOR spoke to the title change in the CS. She remarked that the title of the House Resources Committee version was very specific. The legislation was thoroughly vetted and discussed between all parties and their attorneys before it was drafted. House Bill 146 was a culmination of seven years of negotiation and hard work between involved parties. She shared that her constituent, Bonnie Wolstad was instrumental in the process. Representative Wilson explained that HB 146 restored a reversionary property right taken away from property owners along the Eielson Spur. In 2003, Congress repealed reversionary sections of the Alaska Railroad Transfer Act (ARTA) at the request of the Alaska Railroad Corporation (ARC) to address title issues. In the process, the landowner's reversionary rights were repealed. The bill restored ownership of their property after the easement was no longer used. She stressed that the legislation only restored a right that was taken away and does not grant anyone special privileges beyond the original rights established in ARTA. In addition, all affected parties agreed on the bill. 3:11:18 PM Representative Wilson believed that the issue was simple. The property owners granted the railroad easements to enable railroad expansion. Subsequently, the federal government changed the law. She emphasized that the legislation restored property owner's rights. She confirmed that the bill would not affect the military. BONNIE WOLDSTAD, NORTH POLE (via teleconference), recapped that HB 146 reinstated the original ARTA provisions (Sections 1208-1209) that provided a mechanism to revert property ownership back to the landowners if the ARC abandons use of the property. Co-Chair Stoltze reported that ARC retained many easements in his district. He expressed disappointment that legislation was required for the railroad to "do the right thing." Representative Wilson assured that the attorneys from all parties approved the language in the bill. She cautioned that the CS title change could complicate passage of the bill. Co-Chair Stoltze read the new title, "An Act relating to the Alaska Railroad Corporation; and providing for an effective date." He maintained that the substance of the bill did not change. He remained committed to fixing the problem. 3:16:00 PM Co-Chair Stoltze asked whether the new CS would ensure resolution of the issue between ARC and the landowners. WYN MENEFEE, ACTING DIRECTOR, DIVISION OF MINING, LAND AND WATER, DEPARTMENT OF NATURAL RESOURCES, responded that the change would not affect the outcome. Representative Gara asked if the landowners received compensation in exchange for ARC easement. Representative Wilson answered that compensation was not part of the reversionary agreement. Co-Chair Stoltze closed public testimony. Vice-chair Fairclough MOVED to report CSHB 146(FIN) out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 146(FIN) was REPORTED out of Committee with a "do pass" recommendation and with previously published fiscal notes: FN1, CED; FN2, DNR.