SENATE BILL REPORT

SSB 5391

BYSenate Committee on Transportation (originally sponsored by Senators Hansen, Barr and Sellar)

Creating the essential rail banking account.

Senate Committee on Transportation

Senate Hearing Date(s):February 23, 1987

Majority Report:  That Substitute Senate Bill No. 5391 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Conner, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Sellar, Smitherman, von Reichbauer, West.

Senate Staff:Gene Baxstrom (786-7303)

                  March 12, 1987

AS PASSED SENATE, MARCH 11, 1987

BACKGROUND:

In 1983 the Legislature created the essential rail assistance account in the state treasury.  Monies in the account were to be used for distribution to county rail districts and port districts for the purposes of acquiring, maintaining or improving rail branch lines or operating railroad equipment necessary to maintain essential rail service.  Monies distributed for these purposes could not exceed 80 percent of the cost of the service or project, with local match of at least 20 percent required.  Monies distributed were to be repaid to the state within a ten-year period with interest rates established by the Department of Transportation.

In 1985 use of the essential rail assistance account was expanded to authority the Department of Transportation to purchase unused rail rights of way that met certain criteria including that the right of way had been abandoned and was available for acquisition, the right of way had potential for future rail service, and reestablishment of rail service in the future would be of benefit to the state of Washington.  Before the Department of Transportation could use monies within the rail assistance account, specific legislative appropriation for that purpose was required.  The Department was also authorized to receive donations of funds to acquire unused rail right of way, if the donation of funds was sufficient to cover both the property acquisition and management cost. 

SUMMARY:

An essential rail banking account is created in the state treasury.  Monies are to be used by the Department to purchase unused rail right of way and may also be distributed to county rail districts and port districts for the purpose of donating rail rights of way to the Department of Transportation.  Specific legislative appropriation is necessary for the Department to use monies in the account to acquire rail right of ways.

Use of the account is limited to distribution to county rail districts and port districts for the purposes of acquiring, maintaining or improving rail branch lines or operating railroad equipment.  The length of a loan period is extended from 10 to 20 years.

Fiscal Note:      none requested

Senate Committee - Testified: Vicki Beres, on behalf of Richard Welch, citizen; Karl Kottman, Council of Farm Co-operatives; Jerry Lenzi, DOT