Alaska 2025-2026 Regular Session

Alaska House Bill HB120 Compare Versions

Only one version of the bill is available at this time.

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2	2	HB0120a -1- HB 120
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5	5	34-LS0660\A
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11	11	HOUSE BILL NO. 120
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
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15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
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17	17	BY REPRESENTATIVES MCCABE, Coulombe
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19	19	Introduced: 2/26/25
20	20	Referred: Transportation, Finance
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22	22
23	23	A BILL
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25	25	FOR AN ACT ENTITLED
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27	27	"An Act relating to the sale of the Alaska Railroad; and providing for an effective date." 1
28	28	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2
29	29	* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 3
30	30	to read: 4
31	31	SALE OF THE ALASKA RAILROAD. (a) The governor shall issue, on or before 5
32	32	June 15, 2026, a request for proposals to purchase the Alaska Railroad and all other assets of 6
33	33	the Alaska Railroad Corporation that are necessary or convenient for the operation of the 7
34	34	railroad. 8
35	35	(b) On or before February 15, 2027, the governor shall enter into an agreement to sell 9
36	36	the Alaska Railroad to the most responsive offeror that agrees to 10
37	37	(1) continue operation of the railroad for a minimum of 50 years following the 11
38	38	date of sale of the railroad; 12
39	39	(2) accept assignment of all contracts, including collective bargaining 13
40	40	agreements and retirement obligations and agreements with connecting carriers, shippers, or 14
41	41	other persons concerning services, operation, property, and facilities of the Alaska Railroad 15 34-LS0660\A
42	42	HB 120 -2- HB0120a
43	43	New Text Underlined [DELETED TEXT BRACKETED]
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45	45	Corporation, entered into by the Alaska Railroad Corporation and in effect on the date of the 1
46	46	sale of the railroad, provided that the contracts are assignable under terms of the contract or 2
47	47	that the other parties to the contract consent to the assignment; and 3
48	48	(3) purchase the railroad for an amount that exceeds either the fair market 4
49	49	value of the railroad and the assets of the Alaska Railroad Corporation that are necessary or 5
50	50	convenient for the operation of the railroad or the amount that the state has expended to 6
51	51	obtain, maintain, and subsidize the railroad and the Alaska Railroad Corporation. 7
52	52	(c) An agreement to sell the Alaska Railroad under this Act is subject to approval by 8
53	53	the legislature. Upon entering into an agreement to sell the railroad, the governor shall 9
54	54	immediately submit the agreement to the legislature for review during a regular session of the 10
55	55	legislature. The legislature may disapprove the agreement by law. If the agreement is not 11
56	56	disapproved by the legislature before the adjournment of the regular session during which the 12
57	57	agreement is submitted, the agreement is approved. An agreement to sell the railroad that has 13
58	58	been disapproved by the legislature or that has not been submitted to the legislature for review 14
59	59	under this subsection is void. 15
60	60	(d) The Alaska Railroad Corporation may not enter into a contract or other agreement 16
61	61	that has the effect or purpose of substantially diminishing the value or marketability of the 17
62	62	Alaska Railroad. 18
63	63	(e) Notwithstanding other provisions of this Act, the state shall retain an easement for 19
64	64	transportation, communication, and transmission purposes on all land within the right-of-way 20
65	65	of the Alaska Railroad received by the state under the Alaska Railroad Transfer Act of 1982 21
66	66	(P.L. 97-468, Title VI; 96 Stat. 2556). Right-of-way fees for land subject to this subsection 22
67	67	shall be paid to the state. 23
68	68	(f) The governor shall contract for preparation of a report on the fair market value of 24
69	69	the Alaska Railroad and all other assets of the Alaska Railroad Corporation that are necessary 25
70	70	or convenient for the operation of the railroad by a qualified railroad appraiser. The governor 26
71	71	shall submit the results of the appraisal to the legislature by the 10th day of the First Regular 27
72	72	Session of the Thirty-Fifth Alaska State Legislature. A contract for the appraisal under this 28
73	73	subsection is exempt from AS 36.30 (State Procurement Code). 29
74	74	(g) The governor shall report to the legislature by the 10th d
75	75	ay of the First Regular 30
76	76	Session of the Thirty-Fifth Alaska State Legislature regarding the procedures established for 31 34-LS0660\A
77	77	HB0120a -3- HB 120
78	78	New Text Underlined [DELETED TEXT BRACKETED]
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80	80	and the progress made toward the sale of the Alaska Railroad as required by this Act. 1
81	81	(h) Upon the completion of the sale of the Alaska Railroad, the governor shall 2
82	82	dissolve the Alaska Railroad Corporation. Real property of the Alaska Railroad Corporation 3
83	83	that is identified as not necessary or convenient for the operation of the railroad under sec. 3 4
84	84	of this Act shall be transferred to and managed by the Department of Natural Resources upon 5
85	85	dissolution of the Alaska Railroad Corporation. 6
86	86	(i) The governor shall adopt regulations under AS 44.62 (Administrative Procedure 7
87	87	Act) to implement this Act. 8
88	88	(j) The sale of the railroad under this Act is not subject to AS 36.30 (State 9
89	89	Procurement Code) or AS 42.40 (Alaska Railroad Corporation Act). 10
90	90	(k) The sale of the railroad under this Act shall be contingent on execution of a 11
91	91	resource development agreement under sec. 2 of this Act. 12
92	92	* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 13
93	93	read: 14
94	94	EXPANSION OF THE ALASKA RAILROAD AND RESOURCE DEVELOPMENT 15
95	95	AGREEMENT. (a) In conjunction with the sale of the Alaska Railroad under this Act, the 16
96	96	legislature recognizes the critical role of the railroad in facilitating resource development 17
97	97	within the state's boundaries, in accordance with the principles set out in Article VIII of the 18
98	98	Alaska Constitution. 19
99	99	(b) The buyer of the Alaska Railroad under sec. 1(b) of this Act shall enter into a 20
100	100	resource development agreement with the state within 180 days after the effective date of the 21
101	101	sale. The resource development agreement must outline the buyer's commitment to actively 22
102	102	supporting and investing in the growth and expansion of the railroad to better serve resource 23
103	103	development needs in the state. 24
104	104	(c) The resource development agreement must include 25
105	105	(1) an agreement by the state to allocate a portion of the sale proceeds, as 26
106	106	negotiated in the sale agreement and subject to appropriation by the legislature, toward the 27
107	107	modernization, expansion, and maintenance of Alaska Railroad infrastructure, including the 28
108	108	construction of new railroad spurs and rail lines to access resource-rich areas of the state; 29
109	109	(2) the commitment for the buyer to work collaboratively with state agencies, 30
110	110	local communities, and relevant stakeholders to identify strategic locations for the 31 34-LS0660\A
111	111	HB 120 -4- HB0120a
112	112	New Text Underlined [DELETED TEXT BRACKETED]
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114	114	construction of new railroad spurs and infrastructure to facilitate resource extraction, 1
115	115	transportation, and processing; 2
116	116	(3) provisions for regular reporting by the buyer to the state and the legislature 3
117	117	regarding the implementation of the resource development agreement, including updates on 4
118	118	the construction of new railroad spurs and associated infrastructure; and 5
119	119	(4) a mechanism for resolving disputes between the buyer and the state related 6
120	120	to the resource development agreement. 7
121	121	(d) The resource development agreement is subject to approval by the legislature, 8
122	122	following the procedure set out in sec. 1(c) of this Act. If the agreement is not disapproved by 9
123	123	the legislature before the adjournment of the regular session during which the agreement is 10
124	124	submitted, the agreement is approved. 11
125	125	* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 12
126	126	read: 13
127	127	IDENTIFICATION OF ALASKA RAILROAD CORPORATION ASSETS. (a) On or 14
128	128	before August 1, 2026, the governor shall identify all assets, real and personal and tangible 15
129	129	and intangible, of the Alaska Railroad Corporation and classify those assets as necessary or 16
130	130	convenient for the operation of the railroad or as other assets of the corporation. The governor 17
131	131	shall submit the report to the Legislative Budget and Audit Committee. 18
132	132	(b) The Legislative Budget and Audit Committee may recommend amendments to the 19
133	133	identification or classification of assets listed in the report. 20
134	134	* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 21