AN ACT Relating to abandoned rail rights of way; amending RCW 47.76.020 and 47.76.030; adding new sections to chapter 47.76 RCW; and making an appropriation.

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

Sec. 1. Section 5, chapter 303, Laws of 1983 and RCW 47.76.020 are each amended to read as follows:

(1) The transportation commission shall prepare and periodically update a state rail plan, the objective of which is to identify, evaluate, and encourage essential rail service. The plan shall:

(a) Identify and evaluate those rail freight lines that may be abandoned or have recently been abandoned;

(b) Quantify the costs and benefits of maintaining rail service on those lines that are likely to be abandoned and the acquisition of right of way for the eventual restoration of service on lines recently abandoned; and

(c) Establish priorities for determining which rail lines should receive state support. The priorities should include the anticipated benefits to the state and local economy, the anticipated cost of road and highway improvements necessitated by the abandonment of the rail line, the likelihood the rail line receiving funding can meet operating costs from freight charges, surcharges on rail traffic, and other funds authorized to be raised by a county or port district, and the impact of abandonment on changes in energy utilization and air pollution.

(2) The state rail plan may be prepared in conjunction with the rail plan prepared by the department pursuant to the federal railroad revitalization and regulatory reform act.

Sec. 2. Section 6, chapter 303, Laws of 1983 and RCW 47.76.030 are each amended to read as follows:

(1) The essential rail assistance account is hereby created in the state general fund. Moneys in the account may be appropriated only for the purposes specified in this section.

(2) Moneys in the account may be distributed to county rail districts and port districts for the purpose of:

(a) Acquiring, maintaining, or improving branch rail lines; or

(b) Operating railroad equipment necessary to maintain essential rail service.

(3) Moneys in the account may be distributed to the department to purchase unused rail right of way that meets the following criteria:

(a) The right of way has been identified, evaluated, and analyzed in the state rail plan prepared pursuant to RCW 47.76.020;

(b) The right of way has been abandoned and is available for acquisition;

(d) Reestablishment of rail service in the future would benefit the state of Washington.

(4) County rail districts and port districts may grant franchises to private railroads for the right to operate on lines acquired, repaired, or improved under this chapter.

((~~(4)~~)) (5) Moneys distributed under subsection (2) of this section shall not exceed eighty percent of the cost of the service or project undertaken. At least twenty percent of the cost shall be provided by the county, port district, or other local sources.

((~~(5)~~)) (6) The amount distributed under this section shall be repaid to the state by the county rail district or port district. The repayment shall occur within ten years of the distribution of the moneys and shall be deposited in the essential rail assistance account. The repayment schedule and rate of interest, if any, shall be set at the time of the distribution of the moneys.

NEW SECTION. Sec. 3. The department shall sell property acquired under RCW 47.76.030 to a county rail district established under chapter 36.60 RCW, a port district, or any other entity formed for the purpose of operating rail service, within six years of the department's purchase. If no county rail district, port district, or other entity is established within that time, the department may sell such property to any qualified purchaser.

NEW SECTION. Sec. 4. (1) Whenever the department determines that any real property acquired under RCW 47.76.030 is no longer required and that it is in the public interest to do so, the department may sell the property at fair market value to any of the following governmental entities or persons:

(a) Any other state agency;

(b) The city or county in which the property is situated;

(d) The former owner of the property from whom the state acquired title;

(e) In the case of residentially improved property, a tenant of the department who has resided on the property for not less than six months and who is not delinquent in paying rent to the state; and

(f) Any abutting private owner but only after each other abutting private owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting private owner requests in writing the right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at public auction in the manner provided in section 8 of this act.

(2) Sales to purchasers may at the department's option be for cash or by real estate contract.

(3) Conveyances made under this section shall be by deed executed by the secretary of transportation and shall be duly acknowledged.

(4) All moneys received under this section shall be deposited in the essential rail assistance account of the general fund.

NEW SECTION. Sec. 5. (1) The department may sell at fair market value, or lease at rental value (economic rent), materials or other personal property to any United States agency or to any municipal corporation, political subdivision, or another agency of the state and may provide services to any United States agency or to any municipal corporation, political subdivision, or another agency of the state at actual cost, including a reasonable amount for indirect costs.

(2) The department may sell at fair market value materials or other personal property to any private utility company regulated by the utilities and transportation commission for the purpose of making emergency repairs to utility facilities or to protect such facilities from imminent damage upon a finding in writing by the secretary that an emergency exists.

(3) The proceeds of all sales and leases under this section shall be placed in the essential rail assistance account of the general fund.

NEW SECTION. Sec. 6. The secretary of transportation may transfer and convey to the United States, its agencies or instrumentalities, to any other state agency, to any county or city or port district of this state, or to any public utility company, any unused state-owned real property under the jurisdiction of the department of transportation when, in the judgment of the secretary of transportation and the attorney general, the transfer and conveyance is consistent with public interest. Whenever the secretary makes an agreement for any such transfer or conveyance, and the attorney general concurs therein, the secretary shall execute and deliver to the grantee a deed of conveyance, easement, or other instrument, duly acknowledged, as necessary to fulfill the terms of the agreement. All moneys paid to the state of Washington under this section shall be deposited in the essential rail assistance account of the general fund.

NEW SECTION. Sec. 7. The department is authorized, subject to the provisions and requirements of zoning ordinances of political subdivisions of government, to rent or lease any lands, improvements, or air space above or below any lands acquired under RCW 47.76.030, upon such terms and conditions as the department determines.

NEW SECTION. Sec. 8. (1) Whenever the department determines that any real property owned by the state of Washington and acquired under RCW 47.76.030 is no longer required for highway purposes and that it is in the public interest to do so, the department may, in its discretion, sell the property under subsections (2) through (6) of this section.

(2) Whenever the department determines to sell real property under its jurisdiction at public auction, the department shall first give notice thereof by publication on the same day of the week for two consecutive weeks, with the first publication at least two weeks before the date of the auction, in a legal newspaper of general circulation in the area where the property to be sold is located. The notice shall be placed in both the legal notices section and the real estate classified section of the newspaper. The notice shall contain a description of the property, the time and place of the auction, and the terms of the sale. The sale may be for cash or by real estate contract.

(3) In accordance with the terms set forth in the notice, the department shall sell the property at the public auction to the highest and best bidder if the bid is equal to or higher than the appraised fair market value of the property.

(4) If no bids are received at the auction or if all bids are rejected, the department may, in its discretion, enter into negotiations for the sale of the property or may list the property with a licensed real estate broker. No property may be sold by negotiations or through a broker for less than the property's appraised fair market value. Any offer to purchase real property under this subsection shall be in writing and may be rejected at any time before written acceptance by the department.

(5) Before the department approves any offer for the purchase of real property pursuant to subsection (4) of this section having an appraised value of more than ten thousand dollars, the department shall first publish a notice of the proposed sale in a local newspaper of general circulation in the area where the property is located. The notice shall include a description of the property, the selling price, the terms of the sale, including the price and interest rate if sold by real estate contract, and the name and address of the department employee or the real estate broker handling the transaction. The notice shall further state that any person may, within ten days after the publication of the notice, deliver to the designated state employee or real estate broker a written offer to purchase the property for not less than ten percent more than the negotiated sale price, subject to the same terms and conditions. A subsequent offer shall not be considered unless it is accompanied by a deposit of twenty percent of the offer in the form of cash, money order, cashier's check, or certified check payable to the Washington state treasurer, to be forfeited to the state (for deposit in the essential rail assistance account of the general fund) if the offeror fails to complete the sale if the offeror's offer is accepted. If a subsequent offer is received, the first offeror shall be informed by certified mail sent to the address stated in his offer. The first offeror then has ten days from the date of mailing the notice of the increased offer in which to file with the designated state employee or real estate broker a higher offer than that of the subsequent offeror. After the expiration of the ten-day period, the department shall approve in writing the highest and best offer that the department then has on file.

(6) All moneys received under this section shall be deposited in the essential rail assistance account of the general fund.

NEW SECTION. Sec. 9. Transfers of ownership of property acquired under RCW 47.76.030 are exempt from chapters 8.25 and 8.26 RCW.

NEW SECTION. Sec. 10. Sections 3 through 9 of this act shall be added to chapter 47.76 RCW.

NEW SECTION. Sec. 11. The sum of five hundred thousand dollars, or so much thereof as may be necessary, is appropriated for the biennium ending June 30, 1987, from the general fund to the department of transportation to carry out this act.