Senate File 500 - IntroducedA Bill ForAn Act 1relating to the payment of costs by railroad track
2owners and railroad corporations for certain railroad
3construction, maintenance, and other related projects.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 312.2, subsection 2, Code 2023, is
2amended to read as follows:
   32.  The treasurer of state shall before making the allotments
4in subsection 1 credit annually to the highway grade crossing
5safety fund the sum of seven hundred thousand dollars, credit
6annually from the road use tax fund the sum of nine hundred
7thousand dollars to the highway railroad grade crossing surface
8repair fund,
credit monthly to the primary road fund the
9dollars yielded from an allotment of sixty-five hundredths of
10one percent of all road use tax funds for the express purpose
11of carrying out section 307.24, subsection 5, section 313.4,
12subsection 2, and section 307.45, and credit annually to the
13primary road fund the sum of five hundred thousand dollars to
14be used for paying expenses incurred by the state department
15of transportation other than expenses incurred for extensions
16of primary roads in cities. All unobligated funds provided by
17this subsection, except those funds credited to the highway
18grade crossing safety fund,
shall at the end of each year
19revert to the road use tax fund. Funds in the highway grade
20crossing safety fund shall not revert to the road use tax
21fund except to the extent they exceed five hundred thousand
22dollars at the end of any biennium. The cost of each highway
23railroad grade crossing repair project shall be allocated in
24the following manner:

   25a.  Twenty percent of the project cost shall be paid by the
26railroad company.
   27b.  Twenty percent of the project cost shall be paid by the
28highway authority having jurisdiction of the road crossing the
29railroad.
   30c.  Sixty percent of the project cost shall be paid from the
31highway railroad grade crossing surface repair fund.
32   Sec. 2.  Section 327F.13, subsection 7, Code 2023, is amended
33to read as follows:
   347.  This section only applies to a location where a
35close-clearance warning device is required to be placed
-1-1pursuant to rules of the department when funds are available
2from the department to reimburse the owner of the railroad
3track for the cost of the close-clearance warning device,
4including cost of installation
The owner of the railroad
5track is responsible for costs associated with placing warning
6devices under this section.

7   Sec. 3.  Section 327G.11, Code 2023, is amended to read as
8follows:
   9327G.11  Private farm crossings.
   10When a person owns farmland on both sides of a railway, or
11when a railway runs parallel with a public highway thereby
12separating a farm from such highway, the corporation owning
13or operating the railway, on request of the owner of the
14farmland, shall construct and maintain a safe and adequate farm
15crossing or roadway across the railway and right-of-way at such
16reasonable place as the owner of the farmland may designate.
17A private farm crossing established or installed pursuant to
18this section shall be used solely for farming or agricultural
19purposes. The railroad corporation is responsible for costs
20associated with constructing and maintaining the farm crossing.

21   Sec. 4.  Section 327G.15, subsections 1 and 2, Code 2023, are
22amended to read as follows:
   231.  Wherever a railway track crosses or shall hereafter cross
24a highway, street or alley, the railway corporation owning such
25track and the
 The department, in the case of primary highways
 26crossed by railway tracks, the board of supervisors of the
27county in which such a crossing is located, in the case of
28secondary roads crossed by railway tracks, or the city council
29of the city in which a crossing is located, in the case of
30streets and alleys located crossed by railway tracks within
31a city, may agree with the railroad corporation owning such
32tracks
upon the location, manner, vacation, physical structure,
 33and characteristics and maintenance of the crossing and flasher
34lights or gate arm signals at the crossing and allocation of
35costs thereof. The department shall become a party to the
-2-1agreement if grade crossing safety funds are to be used. Up to
2seventy-five percent of the maintenance cost of flasher lights
3or gate arm signals at the crossing and an unlimited portion of
4the cost of installing flasher lights or gate arm signals at
5the crossing may be paid from the grade crossing safety fund.

   62.  Notwithstanding other provisions of this section, The
7construction of a crossing and the installation and
maintenance
8of flasher lights or gate signals installed or ordered to be
9installed before July 1, 1973,
shall be assumed wholly by the
10railroad corporation.
11   Sec. 5.  Section 327G.15, subsection 3, Code 2023, is amended
12by striking the subsection.
13   Sec. 6.  Section 327G.24, Code 2023, is amended to read as
14follows:
   15327G.24  Removal of tracks from crossings.
   16Upon consummation of an abandonment of a railway line
17authorized under 49 U.S.C. §10903 adopted as of a specific date
18by rule by the department, or upon interim use of railroad
19rights-of-way to establish appropriate trails pursuant to 16
20U.S.C. §1247(d) adopted as of a specific date by rule by the
21department, if the railway tracks adjacent to a crossing have
22been removed, but the railway tracks in the crossing have not
23been removed, the city, county, or other jurisdiction having
24authority over the highway, street, or alley containing the
25crossing may remove the tracks from the crossing. However,
26this section shall not be construed as reducing the obligation
27or liability of a railway railroad corporation to remove the
28railway tracks from the crossing. The railroad corporation
29is responsible for all costs associated with removing railway
30tracks from crossings including all costs incurred by a city,
31county, or other jurisdiction with authority that removes
32railway tracks.

33   Sec. 7.  Section 327G.30, subsection 1, Code 2023, is amended
34to read as follows:
   351.  If a grade crossing surface of a railroad track and a
-3-1highway, street, or alley shall require repairs or maintenance,
2the costs for the maintenance may be paid as provided in
3section 312.2, subsection 2
 shall be assumed wholly by the
4railroad corporation that owns the track
.
5   Sec. 8.  Section 327G.30, subsections 2 and 3, Code 2023, are
6amended by striking the subsections.
7   Sec. 9.  Section 327G.81, subsection 1, unnumbered paragraph
81, Code 2023, is amended to read as follows:
   9A Other than as provided in subsection 1A, a person,
10including a state agency or political subdivision of the state,
11who acquires a railroad right-of-way after July 1, 1979,
12for a purpose other than farming has all of the following
13responsibilities concerning that right-of-way:
14   Sec. 10.  Section 327G.81, Code 2023, is amended by adding
15the following new subsection:
16   NEW SUBSECTION.  1A.  A railroad corporation that transfers
17a railroad right-of-way to a person who is not a railroad
18corporation is responsible for the costs associated with the
19construction and repair of the fence on each side of the
20property, private crossings as provided for in section 327G.11,
21drainage as delineated in chapter 468, subchapter V, and
22overhead, underground, or multiple crossings in accord with
23section 327G.12. All such construction and repair shall be
24completed by the railroad corporation prior to the transfer of
25the right-of-way, unless a different schedule is agreed to by
26the person acquiring the right-of-way.
27   Sec. 11.  REPEAL.  Sections 327G.19 and 327G.29, Code 2023,
28are repealed.
29   Sec. 12.  TRANSFER OF REMAINING MONEYS.  There is transferred
30from the highway grade crossing safety fund established under
31section 327G.19 and highway railroad grade crossing surface
32repair fund established under section 327G.29 to the road
33use tax fund created in section 312.1 all unencumbered or
34unobligated moneys remaining on the effective date of this Act.
35EXPLANATION
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1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
   3Current law requires the owner of a railroad track to
4place certain warning devices (Code section 327F.13 —
5close-clearance warning devices; Code section 327G.15 —
6signals and gate arms at railway and highway crossings at
7grade). Railroad corporations are required to, among other
8things, construct and maintain private farm crossings (Code
9section 327G.11); construct crossings that intersect highways
10at grade (Code section 327G.15); remove unused crossings
11that intersect highways (Code section 327G.24); and maintain
12certain improvements along the railroad track rights-of-way
13(Code section 327G.81). A railroad corporation is eligible to
14agree with the department of transportation (DOT) and the local
15government entity with jurisdiction over the relevant area
16about certain costs, and the DOT must assist with the project
17by paying a portion of the cost for the work, if moneys are
18available, from the highway railroad grade crossing surface
19repair fund.
   20This bill requires the owner of a railroad track or a
21railroad corporation, as applicable, to bear the cost of the
22responsibilities detailed in the bill without assistance from
23the DOT or another governmental entity.
   24The bill requires a railroad corporation that transfers
25a railroad right-of-way to a person who is not a railroad
26corporation to pay the costs associated with the related
27right-of-way improvements prior to the transfer, or on a
28schedule agreed to by the transferee.
   29The bill strikes or repeals all provisions relating to the
30highway grade crossing safety fund and the highway railroad
31grade crossing surface repair fund. Any moneys remaining in
32the repealed funds are transferred to the road use tax fund.
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th/ns