Read the full stored bill text
HB0120a -1- HB 120
New Text Underlined [DELETED TEXT BRACKETED]
34-LS0660\A
HOUSE BILL NO. 120
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY REPRESENTATIVES MCCABE, Coulombe
Introduced: 2/26/25
Referred: Transportation, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to the sale of the Alaska Railroad; and providing for an effective date." 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2
* Section 1. The uncodified law of the State o f Alaska is amended by adding a new section 3
to read: 4
SALE OF THE ALASKA RAILROAD. (a) The governor shall issue, on o r before 5
June 15, 2026, a request for proposals to purchase the Alaska R ailroad and all other assets of 6
the Alaska Railroad Corporation that are necessary or convenien t for the operation of the 7
railroad. 8
(b) On or before February 15, 2027, the governor shall enter i nto an agreement to sell 9
the Alaska Railroad to the most responsive offeror that agrees to 10
(1) continue operation of the railroad for a minimum of 50 years following the 11
date of sale of the railroad; 12
(2) accept assignment of all contracts, including collective b argaining 13
agreements and retirement obligations and agreements with conne cting carriers, shippers, or 14
other persons concerning services, operation, property, and fac ilities of the Alaska Railroad 15
34-LS0660\A
HB 120 -2- HB0120a
New Text Underlined [DELETED TEXT BRACKETED]
Corporation, entered into by the Alaska Railroad Corporation an d in effect on the date of the 1
sale of the railroad, provided that the contracts are assignabl e under terms of the contract or 2
that the other parties to the contract consent to the assignment; and 3
(3) purchase the railroad for an amount that exceeds either th e fair market 4
value of the railroad and the a ssets of the Alaska Railroad Cor poration that are necessary or 5
convenient for the operation of t he railroad or the amount that the state has expended to 6
obtain, maintain, and subsidize the railroad and the Alaska Railroad Corporation. 7
(c) An agreement to sell the Al aska Railroad under this Act is subject to approval by 8
the legislature. Upon entering into an agreement to sell the ra ilroad, the governor shall 9
immediately submit the agreement to the legislature for review during a regular session of the 10
legislature. The legislature may disapprove the agreement by la w. If the agreement is not 11
disapproved by the legislature before the adjournment of the re gular session during which the 12
agreement is submitted, the agreement is approved. An agreement to sell the railroad that has 13
been disapproved by the legislature or that has not been submitted to the legislature for review 14
under this subsection is void. 15
(d) The Alaska Railroad Corporation may not enter into a contract or other agreement 16
that has the effect or purpose of substantially diminishing the value or marketability of the 17
Alaska Railroad. 18
(e) Notwithstanding other provisions of this Act, the state sh all retain an easement for 19
transportation, communication, and transmission purposes on all land within the right-of-way 20
of the Alaska Railroad received by the state under the Alaska R ailroad Transfer Act of 1982 21
(P.L. 97-468, Title VI; 96 Stat. 2556). Right-of-way fees for l and subject to this subsection 22
shall be paid to the state. 23
(f) The governor shall contract f or preparation of a report on the fair market value of 24
the Alaska Railroad and all other assets of the Alaska Railroad Corporation that are necessary 25
or convenient for the operation of the railroad by a qualified railroad appraiser. The governor 26
shall submit the results of the appraisal to the legislature by the 10th day of the First Regular 27
Session of the Thirty-Fifth Alaska State Legislature. A contrac t for the appraisal under this 28
subsection is exempt from AS 36.30 (State Procurement Code). 29
(g) The governor shall report to the legislature by the 10th d ay of the First Regular 30
Session of the Thirty-Fifth Alaska State Legislature regarding the procedures established for 31
34-LS0660\A
HB0120a -3- HB 120
New Text Underlined [DELETED TEXT BRACKETED]
and the progress made toward the sale of the Alaska Railroad as required by this Act. 1
(h) Upon the completion of the s ale of the Alaska Railroad, th e governor shall 2
dissolve the Alaska Railroad Cor poration. Real property of the Alaska Railroad Corporation 3
that is identified as not necessa ry or convenient for the opera tion of the railroad under sec. 3 4
of this Act shall be transferre d to and managed by the Departme nt of Natural Resources upon 5
dissolution of the Alaska Railroad Corporation. 6
(i) The governor shall adopt r egulations under AS 44.62 (Admin istrative Procedure 7
Act) to implement this Act. 8
(j) The sale of the railroad under this Act is not subject to AS 36.30 (State 9
Procurement Code) or AS 42.40 (Alaska Railroad Corporation Act). 10
(k) The sale of the railroad under this Act shall be contingen t on execution of a 11
resource development agreement under sec. 2 of this Act. 12
* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 13
read: 14
EXPANSION OF THE ALASKA RAILROAD AND RESOURCE DEVELOPMENT 15
AGREEMENT. (a) In conjunction with the sale of the Alaska Railr oad under this Act, the 16
legislature recognizes the critical role of the railroad in fac ilitating resource development 17
within the state's boundaries, in accordance with the principle s set out in Article VIII of the 18
Alaska Constitution. 19
(b) The buyer of the Alaska Railroad under sec. 1(b) of this A ct shall enter into a 20
resource development agreement with the state within 180 days a fter the effective date of the 21
sale. The resource development agreement must outline the buyer 's commitment to actively 22
supporting and investing in the growth and expansion of the rai lroad to better serve resource 23
development needs in the state. 24
(c) The resource development agreement must include 25
(1) an agreement by the state to allocate a portion of the sal e proceeds, as 26
negotiated in the sale agreemen t and subject to appropriation b y the legislature, toward the 27
modernization, expansion, and ma intenance of Alaska Railroad in frastructure, including the 28
construction of new railroad spurs and rail lines to access resource-rich areas of the state; 29
(2) the commitment for the buyer to work collaboratively with state agencies, 30
local communities, and relevant stakeholders to identify strate gic locations for the 31
34-LS0660\A
HB 120 -4- HB0120a
New Text Underlined [DELETED TEXT BRACKETED]
construction of new railroad spur s and infrastructure to facili tate resource extraction, 1
transportation, and processing; 2
(3) provisions for regular reporting by the buyer to the state and the legislature 3
regarding the implementation of the resource development agreem ent, including updates on 4
the construction of new railroad spurs and associated infrastructure; and 5
(4) a mechanism for resolving disputes between the buyer and the state related 6
to the resource development agreement. 7
(d) The resource development agreement is subject to approval by the legislature, 8
following the procedure set out in sec. 1(c) of this Act. If th e agreement is not disapproved by 9
the legislature before the adjournment of the regular session d uring which the agreement is 10
submitted, the agreement is approved. 11
* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 12
read: 13
IDENTIFICATION OF ALASKA RAILROAD CORPORATION ASSETS. (a) On or 14
before August 1, 2026, the govern or shall identify all assets, real and personal and tangible 15
and intangible, of the Alaska Ra ilroad Corporation and classify those assets as necessary or 16
convenient for the operation of the railroad or as other assets of the corporation. The governor 17
shall submit the report to the Legislative Budget and Audit Committee. 18
(b) The Legislative Budget and Audit Committee may recommend amendments to the 19
identification or classification of assets listed in the report. 20
* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 21