CS FOR HOUSE BILL NO. 298(L&C)                                                                                             
     "An Act relating to authorizing the Alaska Railroad                                                                        
     Corporation to lease land for a period of up to 55 years."                                                                 
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  LISA MURKOWSKI,  sponsor of  the bill, reminded  the                                                            
Committee current  state regulations  mandate that leases  exceeding                                                            
35 years must  be approved by the Legislature. She  stated this bill                                                            
would allow the  Alaska Railroad Corporation to develop  a long-term                                                            
planning strategy  by allowing the Railroad authorization  to commit                                                            
to 55-year lease arrangements.                                                                                                  
                                                                                                                                
Representative   Murkowski  explained  the  current   35-year  lease                                                            
limitation  is  both  a  detriment  to  long-term  planning  and  to                                                            
obtaining financial backing  for which a lease agreement of at least                                                            
40  years is  a requirement.  She  added  that extending  the  lease                                                            
provision to  55-years for the railroad  would make Alaska  Railroad                                                            
Corporation's   leasing  policy   consistent   with  those   of  the                                                            
University of Alaska and the Department of Natural Resources.                                                                   
                                                                                                                                
Representative  Murkowski  stated  communities and  businesses  that                                                            
work with  the Railroad support  the extension  of the terms  of the                                                            
lease.  She stated the  extension would spur economic development in                                                            
areas involved with Railroad-leased land.                                                                                       
                                                                                                                                
JAMES  KUBITZ,   Vice  President,   Real  Estate,  Alaska   Railroad                                                            
Corporation,  Department   of Community  and  Economic  Development                                                             
testified offnet from Anchorage to voice support of the bill.                                                                   
                                                                                                                                
Amendment  #1:  This  conceptual  amendment   inserts  an  immediate                                                            
effective date into the bill.                                                                                                   
                                                                                                                                
Senator Ward offered a motion to adopt Amendment #1.                                                                            
                                                                                                                                
There were no objections, and the amendment was ADOPTED.                                                                        
                                                                                                                                
Senator  Green moved  to report  CS HB 298(FIN),  with accompanying                                                             
zero  fiscal  note  from  the  Alaska  Railroad  Corporation,   from                                                            
Committee.                                                                                                                      
                                                                                                                                
The bill REPORTED from Committee without objection.