S-1643               _______________________________________________

                                                   SENATE BILL NO. 5837

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senators Conner, Owen, Rasmussen and Warnke

Read first time 2/13/87 and referred to Committee on Transportation.

AN ACT Relating to preservation of contracts in railroad acquisitions and divestments; and creating a new chapter in Title 81 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The definitions set forth in this section apply throughout this chapter.

          (1) "Acquiring carrier" means a business entity that acquires by purchase, lease, or other device a line of railroad with the intent of operating the line for the purpose of continuing the commercial transportation of goods or passengers over the line.

          (2) "Divesting carrier" means a common carrier or business entity engaged in transportation of goods by rail that divests a line of railroad by sale, lease, or other device.

          (3) "Labor organization" means an organization that exists for the purpose, in whole or in part, of dealing with employers concerning grievances or terms or conditions of employment, or for other mutual aid or protection in connection with employment.

NEW SECTION. Sec. 2.     (1) Any carrier and any entity under this chapter shall file a notice of intent with the attorney general and with the commission whenever an exempt transaction under 49 C.F.R. sec. 1150.31 is contemplated.

          (2) The notice shall designate the complete private or corporate identity of the acquiring entity, the complete identify of the divesting carrier, and a thorough description of the line involved.  Copies of the sale contract, market and feasibility studies, and full financial information as to the acquiring entity shall be attached to the notice.  All such documents are confidential and may not be divulged to outside parties.

          (3) Acquiring and divesting carriers shall attend conferences with the attorney general or the commission upon reasonable notice, and shall respond to all questions and requests for information that are reasonably related or may lead to information related to the issues of whether the proposed transaction is consistent with the requirements of the Interstate Commerce Act, the laws of the state of Washington, and other applicable laws of state or federal government.

          (4) The acquiring entity and divesting carrier shall file a confidential disclosure of tax consequences with the department of revenue whenever an exempt transaction under 49 C.F.R. sec. 1150.31 is contemplated.  Designated representatives of the acquiring entity and the divesting carrier shall attend conferences with the department of revenue upon reasonable notice, and shall respond to all questions and requests for information reasonably related or reasonably calculated to lead to information related to the revenue impact of the proposed transaction.

NEW SECTION. Sec. 3.     (1) An acquiring carrier under this chapter succeeds to all rights, immunities, and other legal privileges or duties conferred by law upon the divesting carrier.

          (2) An acquiring carrier under this chapter succeeds to and is bound by all contracts, agreements, and understandings between the divesting carrier and any shipper within this state for a period equalling the stated term of the contract, agreement, or understanding, or two years, whichever is greater.

          (3) An acquiring carrier under this chapter succeeds to and is bound by all contracts, agreements, and understandings between the divesting carrier and the state of Washington or any political subdivision thereof, for a period equal to the stated term of the contract, agreement, or understanding, or two years, whichever is greater.

          (4) The acquiring carrier is deemed to have recognized existing labor organizations and succeeds to an is bound by all existing contracts, agreements, and understandings between the divesting carrier and any labor organizations for a period equal to the stated term of the contract, agreement, or understanding, or two years, whichever is greater.

NEW SECTION. Sec. 4.     Sections 1 through 3 of this act shall constitute a new chapter in Title 81 RCW.