Senate File 151 - Reprinted





                                       SENATE FILE       
                                       BY  COMMITTEE ON TRANSPORTATION

                                       (SUCCESSOR TO SSB 1167)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to railway assistance and passenger rail service,
  2    including provisions for the administration of the railway
  3    revolving loan and grant fund, the elimination of the railway
  4    finance authority, and the administration of the passenger
  5    rail service revolving fund.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 1349SV 83
  8 dea/nh/14

PAG LIN



  1  1                           DIVISION I
  1  2                       RAILWAY ASSISTANCE
  1  3    Section 1.  Section 6A.6, Code 2009, is amended to read as
  1  4 follows:
  1  5    6A.6  RAILWAYS.
  1  6    The Iowa railway finance authority or any A railway
  1  7 corporation, may acquire by condemnation property as necessary
  1  8 for the location, construction, and convenient use of a
  1  9 railway.  The Iowa railway finance authority may acquire fee
  1 10 title or a lesser property interest.  The authority shall
  1 11 offer to sell its interest in the property at fair market
  1 12 value to the adjoining property owners upon abandonment.  The
  1 13 acquisition shall carry the right to use for the construction
  1 14 and repair of the railway and its appurtenances any earth,
  1 15 gravel, stone, timber, or other material, on or from the land
  1 16 taken.
  1 17    Sec. 2.  Section 6A.9, unnumbered paragraph 1, Code 2009,
  1 18 is amended to read as follows:
  1 19    The Iowa railway finance authority department of
  1 20 transportation or a railway corporation may, by condemnation
  1 21 or otherwise, acquire lands for the following additional
  1 22 purposes:
  1 23    Sec. 3.  Section 6A.10, Code 2009, is amended to read as
  1 24 follows:
  1 25    6A.10  INITIATING RAILROAD CONDEMNATION BY RAILWAY
  1 26 CORPORATION.
  1 27    1.  The A railway corporation shall apply to the department
  1 28 of transportation for permission to condemn.  The railway
  1 29 corporation shall serve notice of the application and hearing
  1 30 and provide a copy of the legal description of the property to
  1 31 be condemned to the owner and any recordholders of liens and
  1 32 encumbrances on any land described in the application.  The
  1 33 department may, after hearing, report to the clerk of the
  1 34 district court of the county in which the land is situated the
  1 35 description of the land sought to be condemned.  The
  2  1 corporation may begin condemnation procedures in district
  2  2 court for the land described by the department.
  2  3    2.  The railway finance authority may begin condemnation
  2  4 proceedings in district court.
  2  5    Sec. 4.  Section 6A.16, Code 2009, is amended to read as
  2  6 follows:
  2  7    6A.16  RIGHT TO CONDEMN ABANDONED RIGHT=OF=WAY.
  2  8    Railroad right=of=way which has been abandoned by order of
  2  9 the proper authority, may be condemned by a railway
  2 10 corporation or the Iowa railway finance authority department
  2 11 of transportation before or after the track materials have
  2 12 been removed.  The procedure to condemn abandoned right=of=way
  2 13 shall be the same as for an original condemnation.
  2 14    Sec. 5.  Section 7E.7, subsection 2, Code 2009, is amended
  2 15 by striking the subsection.
  2 16    Sec. 6.  Section 12.28, subsection 1, paragraph b, Code
  2 17 2009, is amended to read as follows:
  2 18    b.  "State agency" means a board, commission, bureau,
  2 19 division, office, department, or branch of state government.
  2 20 However, state agency does not mean the state board of
  2 21 regents, institutions governed by the board of regents, or
  2 22 authorities created under chapter 16, 175, 257C, or 261A, or
  2 23 327I.
  2 24    Sec. 7.  Section 12.30, subsection 1, paragraph a, Code
  2 25 2009, is amended to read as follows:
  2 26    a.  "Authority" means a department, or public or
  2 27 quasi=public instrumentality of the state including but not
  2 28 limited to the authority created under chapter 12E, 16, 175,
  2 29 257C, 261A, 327I, or 463C, which has the power to issue
  2 30 obligations, except that "authority" does not include the
  2 31 state board of regents or the Iowa finance authority to the
  2 32 extent it acts pursuant to chapter 260C.  "Authority" also
  2 33 includes a port authority created under chapter 28J.
  2 34    Sec. 8.  Section 307.24, Code 2009, is amended to read as
  2 35 follows:
  3  1    307.24  ADMINISTRATION OF HIGHWAYS.
  3  2    The department's administrator of highways is responsible
  3  3 for the planning, design, construction, and maintenance of the
  3  4 state primary highways and shall administer chapters 306 to
  3  5 320 and 327I and perform other duties as assigned by the
  3  6 director.  The administration of highways shall be organized
  3  7 to provide administration for urban systems, for secondary
  3  8 roads, and other categories of administration as necessary.
  3  9    Sec. 9.  Section 321.145, subsection 2, paragraph b,
  3 10 subparagraph (4), Code 2009, is amended by striking the
  3 11 subparagraph.
  3 12    Sec. 10.  Section 327G.76, Code 2009, is amended to read as
  3 13 follows:
  3 14    327G.76  TIME OF REVERSION.
  3 15    Railroad property rights which are extinguished upon
  3 16 cessation of service by the railroad divest when the railway
  3 17 finance authority department of transportation or the
  3 18 railroad, having obtained authority to abandon the rail line,
  3 19 removes the track materials to the right=of=way.  If the
  3 20 railway finance authority department of transportation does
  3 21 not acquire the line and the railway company does not remove
  3 22 the track materials, the property rights which are
  3 23 extinguished upon cessation of service by the railroad divest
  3 24 one year after the railway obtains the final authorization
  3 25 necessary from the proper authority to remove the track
  3 26 materials.
  3 27    Sec. 11.  Section 327H.20A, Code 2009, is amended to read
  3 28 as follows:
  3 29    327H.20A  RAILROAD REVOLVING LOAN AND GRANT FUND.
  3 30    1.  A railroad revolving loan and grant fund is established
  3 31 in the office of the treasurer of state under the control of
  3 32 the authority department.  Moneys in the fund shall be
  3 33 expended for the following purposes:
  3 34    a.  Grants or loans to provide assistance for the
  3 35 restoration, conservation, improvement, and construction of
  4  1 railroad main lines, branch lines, switching yards, sidings,
  4  2 rail connections, intermodal yards, highway grade separations,
  4  3 and other railroad=related improvements.
  4  4    b.  Grants or loans for rail economic development projects
  4  5 that improve rail facilities, including the construction of
  4  6 branch lines, sidings, rail connections, intermodal yards, and
  4  7 other rail=related improvements that spur economic development
  4  8 and job growth.
  4  9    2.  The authority department shall administer a program for
  4 10 the granting and administration of loans and grants under this
  4 11 section.  No more than fifty percent of the total moneys
  4 12 available in the fund in any year shall be awarded in the form
  4 13 of grants.  The authority department may establish a limit on
  4 14 the amount that may be awarded as a grant for any given
  4 15 project in order to maximize the use of the moneys in the
  4 16 fund.  The authority department may enter into agreements with
  4 17 railroad corporations, the United States government, cities,
  4 18 counties, and other persons for carrying out the purposes of
  4 19 this section.
  4 20    3.  Notwithstanding any other provision to the contrary, on
  4 21 or after July 1, 2006, moneys received as repayments for loans
  4 22 made pursuant to this chapter or chapter 327I, Code 2009,
  4 23 before, on, or after July 1, 2005, other than repayments of
  4 24 federal moneys subject to section 327H.21, shall be credited
  4 25 to the railroad revolving loan and grant fund.
  4 26 Notwithstanding section 8.33, moneys in the railroad revolving
  4 27 loan and grant fund shall not revert to the general fund of
  4 28 the state but shall remain available indefinitely for
  4 29 expenditure under this section.  Notwithstanding section
  4 30 12C.7, subsection 2, interest or earnings on moneys deposited
  4 31 in the fund shall be credited to the fund.
  4 32    Sec. 12.  Section 327H.26, Code 2009, is amended to read as
  4 33 follows:
  4 34    327H.26  DEFINITIONS DEFINITION.
  4 35    As used in this chapter, unless the context otherwise
  5  1 requires:
  5  2    1.  "Authority" means the railway finance authority created
  5  3 in chapter 327I.
  5  4    2.  "Department", "department" means the state department
  5  5 of transportation.
  5  6    Sec. 13.  Section 427.1, subsection 25, Code 2009, is
  5  7 amended by striking the subsection.
  5  8    Sec. 14.  Chapter 327I, Code 2009, is repealed.
  5  9    Sec. 15.  CONTINUATION OF PRIOR AGREEMENTS.  It is the
  5 10 intent of the general assembly that the enactment of this Act
  5 11 shall not affect the terms or duration of railroad assistance
  5 12 agreements entered into under chapter 327H or 327I prior to
  5 13 the effective date of this Act.  The department of
  5 14 transportation is the successor to the rights and obligations
  5 15 of any agreements entered into by the Iowa railway finance
  5 16 authority.
  5 17                           DIVISION II
  5 18                     PASSENGER RAIL SERVICE
  5 19    Sec. 16.  Section 327J.1, Code 2009, is amended by adding
  5 20 the following new subsection:
  5 21    NEW SUBSECTION.  6.  "Passenger rail service" means
  5 22 long=distance, intercity, and commuter passenger
  5 23 transportation, including the midwest regional rail system,
  5 24 which is provided on railroad tracks.
  5 25    Sec. 17.  Section 327J.2, Code 2009, is amended to read as
  5 26 follows:
  5 27    327J.2  PASSENGER RAIL SERVICE REVOLVING FUND.
  5 28    1.  FUND CREATED.  The passenger rail service revolving
  5 29 fund is established as a separate fund in the state treasury
  5 30 under the control of the department.  Moneys deposited in the
  5 31 fund shall be administered by the director and shall be used
  5 32 to pay the costs associated with the initiation, operation,
  5 33 and maintenance of rail passenger rail service.
  5 34    2.  FUNDING.  To achieve the purposes of this chapter,
  5 35 moneys shall be credited to the passenger rail service
  6  1 revolving fund by the treasurer of state from the following
  6  2 sources:
  6  3    a.  Appropriations made by the general assembly.
  6  4    a.  b.  Private grants and gifts intended for these
  6  5 purposes.
  6  6    b.  c.  Federal, state, and local grants and loans intended
  6  7 for these purposes.
  6  8    3.  NO REVERSION.  Notwithstanding section 8.33, any
  6  9 balance in the fund on June 30 of any fiscal year shall not
  6 10 revert to the general fund of the state.  Notwithstanding
  6 11 section 12C.7, subsection 2, interest or earnings on moneys
  6 12 deposited in the fund shall be credited to the fund.
  6 13    Sec. 18.  Section 327J.3, Code 2009, is amended to read as
  6 14 follows:
  6 15    327J.3  ADMINISTRATION.
  6 16    1.  The director may expend moneys from the fund to pay the
  6 17 costs associated with the initiation, operation, and
  6 18 maintenance of rail passenger rail service.  The director
  6 19 shall report by February 1 of each year to the legislative
  6 20 services agency concerning the status of the fund including
  6 21 anticipated expenditures for the following fiscal year.
  6 22    2.  The director may enter into agreements with AMTRAK,
  6 23 other rail operators, local jurisdictions, and other states
  6 24 associated with the midwest regional rail system for the
  6 25 purpose of developing a rail passenger system rail service
  6 26 serving the midwest, including service from Chicago, Illinois,
  6 27 to Omaha, Nebraska, through Iowa.  The agreements may include
  6 28 any of the following:
  6 29    a.  Cost=sharing agreements associated with initiating
  6 30 service, capital costs, operating subsidies, and other costs
  6 31 necessary to develop and maintain service.
  6 32    b.  Joint powers agreements and other institutional
  6 33 arrangements associated with the administration, management,
  6 34 and operation of a midwest regional rail system passenger rail
  6 35 service.
  7  1    3.  The director shall enter into discussions with members
  7  2 of Iowa's congressional delegation to foster rail passenger
  7  3 rail service in this state and the midwest and to maximize the
  7  4 level of federal funding for the service, including funding
  7  5 for the midwest regional rail system.
  7  6    4.  The director may provide assistance and enter into
  7  7 agreements with cities local jurisdictions along the proposed
  7  8 route of the midwest regional rail system or other passenger
  7  9 rail system service operations serving the Midwest Iowa to
  7 10 ensure that rail stations and terminals are designed and
  7 11 developed in accordance with the following objectives:
  7 12    a.  To meet safety and efficiency requirements outlined by
  7 13 AMTRAK and the federal railroad administration.
  7 14    b.  To aid intermodal transportation.
  7 15    c.  To encourage economic development.
  7 16    5.  The director shall report annually to the general
  7 17 assembly concerning the development and operation of the
  7 18 midwest regional rail system and the state's passenger rail
  7 19 service.
  7 20 SF 151
  7 21 dea/nh/jh/26