H-919                _______________________________________________

                                                    HOUSE BILL NO. 369

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Baugher, Hankins, Walk, L. Smith, Fisch, B. Williams and P. King

Read first time 1/28/87 and referred to Committee on Transportation.

AN ACT Relating to short line railroads; adding new sections to chapter 81.36 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.     The legislature finds that with the development of a number of short line railroads within the state of Washington their regulation for the public health and safety becomes necessary, and present law does not provide the means for the utilities and transportation commission to accomplish the protection of the public.

NEW SECTION. Sec. 2.  A new section is added to chapter 81.36 RCW to read as follows:

          It is unlawful for a railroad company, corporation, association, or other person owning, controlling, or operating a short line railroad within the state of Washington to own, control, or operate the short line railroad without depositing proof of financial responsibility with the commission.

NEW SECTION. Sec. 3.  A new section is added to chapter 81.36 RCW to read as follows:

          (1) The term "short line railroad" as used in this chapter means any railroad wholly or almost wholly confined or operated within the state of Washington, including industry switching railroads, not otherwise owned and operated by an interstate railroad.

          (2) The term "proof of financial responsibility" as used in this chapter means either:

          (a) A policy of liability and property damage insurance from a company licensed to write such insurance in the state of Washington; or

          (b) A deposit of security;

for such limits of liability and upon such terms and conditions as the commission determines to be necessary for the reasonable protection of the public against damage and injury for which a short line railroad may be liable by reason of the operation of a train.

          In fixing the amount of the insurance policy or deposit of security, the commission shall give due consideration to the character and amount of traffic and the number of persons affected and the degree of danger that the proposed operation involves.