HOUSE BILL REPORT
SSB 5147
BYSenate Committee on Transportation (originally sponsored by Senators Hansen, Rasmussen, Bauer, Barr, Patterson, Johnson and Pullen)
Repealing authority for public utility and transportation corridors.
House Committe on Transportation
Majority Report: Do pass. (24)
Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Cantwell, Cooper, Day, Doty, Fisher, Fox, Gallagher, Haugen, Heavey, Jacobsen, Jones, Kremen, Meyers, Patrick, Prince, Schmidt, Smith, D. Sommers, Sutherland, S. Wilson and Zellinsky.
House Staff:Louise Bray (786-7322)
AS PASSED HOUSE FEBRUARY 29, 1988
BACKGROUND:
To encourage public acquisition and use of abandoned property, Congress adopted in 1976 section 10906, Title 49 USC. When a railroad determines that any of its properties are no longer economically viable and the Interstate Commerce Commission authorizes their abandonment, Section 10906 requires the Commission to determine whether such properties are suitable for use for public purposes. Public purposes enumerated by Congress are highways, other forms of mass transportation, conservation, energy production or transmission, and recreation.
If the ICC finds that the abandoned property is suitable for public use, an order is entered prohibiting any disposal of the property for a period of up to 180 days, unless the properties have first been offered, on reasonable terms, for sale for public purposes. In attempting to take advantage of federal provisions, public entities acquiring abandoned rail rights of way frequently encounter legal claims from private parties seeking to enforce reversionary clauses or similar real property interests in the same property.
The 1984 Legislature addressed this problem by enacting legislation which declared it to be in the public interest of the state that abandoned railroad operations properties should retain their public use character as public utility and transportation corridors. Such properties were to be made available for public purposes including highways, other forms of mass transportation, conservation, energy production or transmission, and recreation.
In the event the ICC authorizes abandonment of railroad property, enters a finding of suitability for public use, and the property is acquired as a public utility and transportation corridor, the property is declared to continue its public use character. Such property would not be subject to reversion, adverse possession or other similar property interests of third parties which might otherwise ripen on the cessation of railroad operations.
Property owners with reversionary rights to abutting railroad rights of way which have been or are likely to be abandoned challenged the constitutionality of the state legislation.
In 1986 the Washington State Supreme Court ruled that just compensation must be given for the taking of property. In reaching its conclusion, the court determined that reversionary interests in land are vested property rights and may not be affected by legislation. An easement granted "for railroad purposes only" does not encompass recreational use and upon abandonment, the easement is extinguished and the property reverts to the grantor free of the easement. The court also ruled that federal law in this area does not preempt state property law regarding abandonment of railroad rights of way.
The public interest in maintaining railroad rights of way as public thoroughfares was not found to be unconstitutional. The court did reject any suggestion, however, that converting abandoned rail corridors to trails is a permissible change in use.
The practical effect of the case is that in order to acquire abandoned railroad rights of way, just compensation must be paid when 1) the easement or grant is not broad enough to encompass recreational use; and 2) there are ascertainable persons holding valid reversionary interests in the land.
SUMMARY:
The intent section is clarified to specify that nothing authorizes a public agency or utility to acquire reversionary interests in public utility or transportation corridors without payment of just compensation.
Language is repealed which provides that a public utility and transportation corridor retains its public use character when owned by a public agency or utility, is not subject to reversion, and property interests do not ripen upon the cessation of railroad operations.
Fiscal Note: Not Requested.
House Committee ‑ Testified For: Walter Olsen, Rails to Trails; Marlyta Deck, Washington Cattlemen's Association; Bob Joy, Washington State Grange; Todd Litman, Bicycle Federation of Washington; Vicki Beres, citizen; Dick Welsh, citizen; Ron Main, King County.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: The legislation brings state law into compliance with a 1986 State Supreme Court ruling. It also clarifies that property owners must receive just compensation for the taking of property.
House Committee - Testimony Against: None Presented.