SENATE BILL REPORT

SB 5837

BYSenators Conner, Owen, Rasmussen and Warnke

Preserving contracts and obligations in railroad acquisitions.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 2, 1987

Senate Staff:Mark McDermott (786-7429)

AS OF FEBRUARY 27, 1987

BACKGROUND:

In recent years, major railroads in the state have divested a number of short feeder lines to new short line railway companies.  Many workers covered by collective bargaining agreements have lost their jobs.

SUMMARY:

Whenever a sale of a railway line is contemplated, the following shall take place:  (1) any carrier or entity involved shall file a notice of intent with the Attorney General and the Utilities and Transportation Commission.  The notice shall designate the acquiring and divesting carriers and the line involved.  The sales contract, market and feasibility studies and full financial information on the acquiring entity shall be included; (2) the acquiring and divesting entities shall attend conferences with the Attorney General, the Utilities and Transportation Commission and the Department of Revenue to discuss the impacts of the proposed sale; and (3) the acquiring and divesting entities shall file a confidential disclosure of the tax consequences of the proposed sale with the Department of Revenue.

The acquiring carrier succeeds to all rights, immunities and other legal privileges or duties conferred by law on the divesting carrier.  The acquirer succeeds to, and is bound by, by all contracts, agreements, understandings between the divesting entity and any shipper in the state, the state of Washington or its political subdivisions, and labor organizations for the stated term of the contract or two years, which ever is greater.

The acquiring entity is deemed to have recognized existing labor organizations.

Fiscal Note:      requested