HOUSE BILL No. 4328 February 13, 1997, Introduced by Reps. Gernaat, Harder, Green, Cropsey, Llewellyn, Jellema, Bobier, McManus, DeVuyst, Baade, London, Curtis, McBryde, Goschka, Middleton, Wetters, Rhead, McNutt, Bodem, Lowe, Hammerstrom, Kukuk, Frank, Bogardus, Sikkema, Tesanovich, Prusi, Gagliardi, Anthony, Raczkowski and Galloway and referred to the Committee on Transportation. A bill to amend 1976 PA 295, entitled "State transportation preservation act of 1976," by amending sections 3 and 10 (MCL 474.53 and 474.60), section 3 as amended by 1984 PA 210 and section 10 as amended by 1993 PA 28, and by adding section 10a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 3. The department shall administer this act and may 2 promulgate rules pursuant to the administrative procedures act of 3 1969,Act No. 306 of the Public Acts of 1969, as amended, being4sections 24.201 to 24.315 of the Michigan Compiled Laws1969 PA 5 306, MCL 24.201 TO 24.328. 6 Sec. 10. (1) In weighing the varied interests of the resi- 7 dents of this state, the department shall give consideration to 8 the individual interest of any person, public or private 9 corporation, local or regional transportation authority, local 02034'97 TJS 2 1 governmental unit, private carrier, group of rail users, state 2 agency, other public or private entity, including a port author- 3 ity established under the Hertel-Law-T. Stopczynski port author- 4 ity act,Act No. 639 of the Public Acts of 1978, being sections5120.101 to 120.130 of the Michigan Compiled Laws1978 PA 639, 6 MCL 120.101 TO 120.130, or any combination of these entities, 7 expressing a desire to acquire or lease or secure an easement for 8 the use of a portion or all of the real property owned by a rail- 9 road company. The property acquired by the department under this 10 act may be conveyed or leased to an entity or combination of 11 entities listed in this subsection with appropriate reimburse- 12 ment, as determined by the department. 13 (2) WITHIN 90 DAYS AFTER THE EFFECTIVE DATE OF THE AMENDA- 14 TORY ACT THAT ADDED THIS SUBSECTION, THE DEPARTMENT SHALL OFFER 15 BY EXCLUSIVE LEASE OF 25 YEARS TO EACH CURRENT CONTRACT OPERATOR 16 THAT CURRENTLY HAS LESS THAN A 5-YEAR LEASE WITH THE DEPARTMENT 17 THAT SEGMENT OF STATE-OWNED RAIL PROPERTY OPERATED BY THAT CON- 18 TRACT OPERATOR. THE SPECIFIC TERMS OF THE LEASES WILL BE AS 19 DETERMINED BY THE DEPARTMENT INCLUDING AUTHORIZATION FOR THE CUR- 20 RENT CONTRACT OPERATOR TO OFFER TRACKAGE RIGHTS AND ENTER INTO 21 OTHER AGREEMENTS WITH OTHER CARRIERS TO ACCOMMODATE THE BEST 22 INTERESTS OF ALL CITIZENS OF THE STATE. IF THE CURRENT CONTRACT 23 OPERATOR OF ANY SEGMENT OF STATE-OWNED RAIL PROPERTY IS UNWILLING 24 OR UNABLE TO LEASE THAT SEGMENT OF STATE-OWNED RAIL PROPERTY 25 UNDER THE TERMS DETERMINED BY THE DEPARTMENT, THAT SEGMENT OF 26 STATE-OWNED RAIL PROPERTY SHALL THEN BE OFFERED FOR LEASE, UNDER 02034'97 3 1 THE SAME FINANCIAL TERMS, TO THE FOLLOWING PARTIES IN DESCENDING 2 ORDER: 3 (A) CURRENT SHIPPERS ON THAT SEGMENT. 4 (B) GOVERNMENTAL ENTITIES. 5 (C) OTHER RAILROAD COMPANIES. 6 (3) A PARTY ENTERING INTO AN AGREEMENT TO LEASE A SEGMENT OF 7 STATE-OWNED RAIL PROPERTY UNDER THIS SECTION SHALL AGREE TO PRO- 8 VIDE TO SHIPPERS SERVICE THAT MEETS CERTAIN CONDITIONS AS DETER- 9 MINED BY THE DEPARTMENT FOR A PERIOD OF TIME DESIGNATED BY THE 10 DEPARTMENT. 11 (4)(2)Upon acquisition of a right-of-way, the department 12 may preserve the right-of-way for future use as a railroad line 13 and, if preserving it for that use, shall not permit any action 14 which would render it unsuitable for future rail use. However, 15 if the department determines a right-of-way or other property 16 acquired under this act is no longer necessary for railroad 17 transportation purposes, the department may preserve and utilize 18 the right-of-way for other transportation purposes or may dispose 19 of the right-of-way or other property acquired under this act for 20 the purposes described in section 6, or may dispose of or lease 21 the right-of-way or other property for other purposes, as 22 appropriate. However, the department shall not dispose of or 23 lease a right-of-way without first offering to transfer the 24 right-of-way to the department of natural resources. If the 25 department of natural resources desires to lease or purchase the 26 right-of-way, the department of natural resources must indicate 27 their desire within 60 days and accept the offered transfer 02034'97 4 1 within 1 year after the offer is made. If the department of 2 natural resources does not indicate their desires within 60 days, 3 the department may dispose of or lease the right-of-way as other- 4 wise provided for in this act. If the department of natural 5 resources does not accept the offered transfer within 1 year 6 after indicating their desire to lease or purchase the 7 right-of-way, the department may dispose of or lease the 8 right-of-way as otherwise provided for in this act. When appro- 9 priate, a right-of-way or other property shall be transferred or 10 leased to a public or private entity with appropriate reimburse- 11 ment, as determined by the department. 12 (5)(3)In preserving a right-of-way for future rail use, 13 the department may do 1 or more of the following: 14 (a) Develop the right-of-way for use as a commuter trail 15 where the use is feasible and needed or lease the right-of-way to 16 a county, city, village, or township expressing a desire to 17 develop the right-of-way as a commuter trail. The lease shall be 18 for an indefinite period of time, cancelable by the department 19 only if the right-of-way is needed for rail usage. The trails, 20 unless leased to a county, city, village, or township, shall 21 remain under the jurisdiction of the department. 22 (b) Transfer, for appropriate reimbursement, the 23 right-of-way to the department of natural resources for use as a 24 Michigan trailway pursuant tothe Michigan trailways actPART 25 721 (MICHIGAN TRAILWAYS) OF THE NATURAL RESOURCES AND ENVIRONMEN- 26 TAL PROTECTION ACT, 1994 PA 451, MCL 324.72101 TO 324.72112, if 27 the deed includes restrictions on the use of the property that 02034'97 5 1 assure that the property remains viable for future rail usage, 2 and includes a clause that provides that the department of natu- 3 ral resources shall transfer, for appropriate reimbursement, the 4 right-of-way to the department, upon a determination of the 5 director of thestate transportationdepartment that the 6 right-of-way is needed for use as a railroad line. 7 (c) Lease the right-of-way to the department of natural 8 resources, or upon approval of the department of natural 9 resources, to a county, city, village, or township for use as a 10 recreational trail. The lease shall be for an indefinite period 11 of time, cancelable by the department only if the right-of-way is 12 needed for rail usage. A recreational trail shall be reserved 13 for non-motorized forms of recreation or snowmobiling only. 14 Snowmobiling shall not be allowed on more than 50% of the mileage 15 of the recreational trails established pursuant to this act. 16 (d) In cases where a trail serves both a significant com- 17 muter and recreation function, authorize the joint development of 18 the trail by the department and the department of natural 19 resources, or the department and any interested county, city, 20 village, or township. Administration of the trail shall be 21 determined jointly by the department and the department of natu- 22 ral resources. 23 SEC. 10A. IF THE DEPARTMENT OFFERS FOR SALE TO THE CURRENT 24 CONTRACT OPERATORS ALL SEGMENTS OF STATE OWNED RAIL PROPERTY 25 UNDER THE CONDITIONS DESCRIBED IN SECTION 10, THE DEPARTMENT 26 SHALL NOT PARTITION ANY INDIVIDUAL SEGMENT OF THAT STATE OWNED 27 RAIL PROPERTY INTO MORE THAN 1 PARCEL. 02034'97