S-1112               _______________________________________________

                                                   SENATE BILL NO. 5556

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Sellar, Hansen and Barr

Read first time 1/27/89 and referred to Committee on   Transportation.

AN ACT Relating to railroad property; and adding a new chapter to Title 64 RCW.

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

NEW SECTION. Sec. 1.     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Fair market value" means the price negotiated between the parties under section 2 of this act, or the market value of the property minus the value of any leasehold improvements, as determined by independent appraisers.

          (2) "Leaseholder" means a person who holds a lease, license, or permit with respect to property within a right of way, and who has erected eligible leasehold improvements on the property with a total fair market value of seven thousand five hundred dollars or more.

          (3) "Railroad interest" includes a railroad corporation, its trustee or successor in interest, a railroad corporation which is in proceedings for a bankruptcy under federal law, and a nonrailroad holding corporation that owns a controlling interest in a railroad.

          (4) "Right of way" means any real property, including any interest in the real property that is or has been owned by a railroad company as the site, or is adjacent to the site, of an existing or former rail line.

          (5) "Commission" means the utilities and transportation commission.

NEW SECTION. Sec. 2.     A railroad interest may not sell or offer for sale an interest in real property that is within the right of way, unless it first extends a written offer to sell that interest at a fair market price to each person who is a leaseholder with respect to the property.  Leaseholders must respond to the offer within sixty days of receipt of the notice and the railroad interest must negotiate in good faith with an interested leaseholder for a period of ninety days following the leaseholder's response.  After the ninety-day negotiation period, either party may file a notice of dispute with the commission under section 3 of this act.  The property may not be sold to a party other than the leaseholder during the response and negotiation periods or while a dispute is pending before the commission.  This section does not apply to a sale of an entire operating railroad line by one operating railroad to another for the purpose of operating a railroad.

NEW SECTION. Sec. 3.     (1) A railroad interest or leaseholder may apply to the commission to resolve a dispute concerning fair market value or other terms arising from negotiations under section 2 of this act.  The board must adopt regulations to implement this section.  The regulations must define the terms "leaseholders" and "railroad interests," establish a procedure to resolve disputes, and provide for the use of independent appraisers.  Final rules must be adopted no later than one year after the effective date of this act.

          (2) The commission's decision is final for purposes of judicial review and may be reviewed in district court in the jurisdiction where the property is located.  The scope of judicial review is limited to a determination of whether substantial evidence exists to support the board's decision.

NEW SECTION. Sec. 4.     Sections 1 through 3 of this act shall constitute a new chapter in Title  64 RCW.