S-2097               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5391

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

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

Read first time 2/26/87.

AN ACT Relating to essential rail service; and reenacting and amending RCW 47.76.030.

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

        Sec. 1.  Section 6, chapter 303, Laws of 1983 as amended by section 64, chapter 57, Laws of 1985 and by section 2, chapter 432, Laws of 1985 and RCW 47.76.030 are each reenacted and amended to read as follows:

          (1) The essential rail assistance account ((is hereby)) and the essential rail banking account are created in the state treasury.  Moneys in the accounts may be appropriated only for the purposes specified in this section.

          (2) Moneys in the essential rail assistance account may be distributed to county rail districts and port districts for the purpose of:

          (a) Acquiring, maintaining, or improving branch rail lines; or

          (b) Operating railroad equipment necessary to maintain essential rail service.

          (3) Moneys in the essential rail banking account may be distributed to county rail district and port districts for the purposes outlined under subsection (4) of this section.

(4) Moneys in the essential rail banking account may be ((distributed)) used to provide the department's matching funds to purchase unused rail right of way that meets the following criteria:

          (a) The right of way has been identified, evaluated, and analyzed in the state rail plan prepared pursuant to RCW 47.76.020;

          (b) The right of way has been abandoned and is available for acquisition;

          (c) The right of way has potential for future rail service; and

          (d) Reestablishment of rail service in the future would benefit the state of Washington.

!ixThe department may exercise its authority to use moneys in the essential rail banking account for the purposes of this subsection only with legislative appropriation for this purpose or upon receipt of a donation of funds sufficient to cover the property acquisition and management costs.  The department may receive donations of funds for this purpose,  which shall be conditioned upon, and made in consideration for the repurchase rights contained in RCW 47.76.040.  Nothing in this section shall be interpreted or applied so as to impair the reversionary rights of abutting landowners, if any, without just compensation.

          (((4))) (5) County rail districts and port districts may grant franchises to private railroads for the right to operate on lines acquired, repaired, or improved under this chapter.

          (((5))) (6) Moneys distributed under subsections (2) and (3) of this section shall not exceed eighty percent of the cost of the service or project undertaken.  At least twenty percent of the cost shall be provided by the county, port district, or other local sources.

          (((6))) (7) The amount distributed under this section shall be repaid to the state by the county rail district or port district.  The repayment shall occur within ((ten)) twenty years of the distribution of the moneys and shall be deposited in the essential rail assistance account.  The repayment schedule and rate of interest, if any, shall be set at the time of the distribution of the moneys.

          (((7))) (8) All earnings of investments of balances in the essential rail assistance account shall be credited to the general fund.