BILL AS INTRODUCEDH.542

2005Page 1

H.542

Introduced by Committee on Transportation

Date:

Subject:Railroads; Vermont rail authority

Statement of purpose: This bill proposes to create the Vermont rail authority.

AN ACT RELATING TO THE VERMONT RAIL AUTHORITY

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 29 V.S.A. chapter 19 is added to read:

CHAPTER 19. VERMONT RAIL AUTHORITY

§ 830. DEFINITIONS

As used in this chapter:

(1) “Authority” means the Vermont rail authority established by section 834 of this chapter.

(2) “Authority facilities” means the authority’s railroad facilities and operations pursuant to joint service arrangements.

(3) “Equipment” means rolling stock, vehicles, motors, boilers, engines, wires, ways, conduits and mechanisms, machinery, tools, implements, materials, supplies, instruments, and devices of every nature used or useful for transportation purposes or for the generation or transmission of motive power, including but not limited to all power houses and all apparatus and all devices for signaling, communications, and ventilation necessary, convenient or desirable for the operation of a transportation facility.

(4) “Joint service arrangements” means agreements between or among the authority and any common carrier or freight forwarder, the state, any state agency, the federal government, any other state or agency or instrumentality thereof, any public authority of this or any other state, or any political subdivision, regional economic development corporation or authority, or municipality of the state, relating to property, buildings, structures, facilities, services, rates, fares, classifications, divisions, allowances, or charges, including charges between operators of railroad facilities, or rules or regulations pertaining thereto, for or in connection with or incidental to transportation in or upon railroad facilities located within the state and in or upon railroad facilities located outside the state.

(5) “Railroad facilities” means right-of-way and related trackage on, above, or underground, rails, cars, locomotives, other rolling stock, signal, power, fuel, communication and ventilation systems, power plants, stations, terminals, storage yards, repair and maintenance shops, yards, equipment and parts, offices, and other real property or personal property used or held for or incidental to the operation, rehabilitation, or improvement of any railroad operating or to operate between points within the state. It shall also include joint service arrangements, including but not limited to buildings, structures, and areas which may not be devoted to any railroad purpose other than the production of revenues available for the costs and expenses of all or any facilities of the authority.

(6) “Real property” means land, structures, franchises, and interests in land, waters, land underwater, riparian rights, air rights, and any and all things and rights included within said terms. It includes not only fees simple absolute but any and all lesser interests, including but not limited to easements, rights-of-way, uses, leases, licenses, and all other incorporeal hereditaments and every estate, interest or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages, or otherwise.

(7) “State agency” means any officer, department, board, commissioner, bureau, division, agency, or instrumentality of the state.

(8) “Transportation facility” means any railroad facility and any person, firm, partnership, association, or corporation which owns, leases, or operates any facility used for service in the transportation of passengers, United States mail, or personal property as a common carrier for hire and any portion thereof. It shall include the rights, leaseholds, or other interest therein together with routes, tracks, extensions, connections, bridges, grade crossings, connecting roadways, parking lots, garages, warehouses, yards, storage yards, maintenance and repair shops, freight terminals, intermodal passenger stations, intermodal freight transloading facilities, the devices, appurtenances, equipment, power plants, and other related facilities used or useful in connection with the operation of the transportation facility.

§ 831. LAWGOVERNING

It is the intent of the general assembly that in the event of any conflict or inconsistency in the provisions of this chapter and any other laws pertaining to matters established in this chapter or provided for or in any rules adopted under this chapter or other laws, to the extent of that conflict or inconsistency, the provisions of this chapter shall be enforced, and the provisions of the other laws and rules adopted shall be of no effect.

§ 832. COOPERATION ANDASSISTANCE OF OTHER AGENCIES

To avoid duplication of effort and in the interests of economy, the authority may make use of existing studies, surveys, plans, data, and other materials in the possession of any state agency or any municipality or political subdivision of the state. Each agency, municipality, or subdivision is authorized to make the same available to the authority and otherwise to assist it in the performance of its functions. At the request of the authority, each agency, municipality, or subdivision which is engaged in transportation activities, regional economic development, or land use or development planning, or which is charged with the duty of providing or regulating any transportation activities, is further authorized to provide the authority with information regarding its plans and programs affecting the state so that the authority may have available to it current information. The officers and personnel of agencies, municipalities, or subdivisions, and of any other government or agency may serve at the request of the authority upon advisory committees created by the authority. The officers and personnel may serve upon committees without forfeiture of office or employment and with no loss or diminution in the compensation, status, rights, and privileges which they otherwise enjoy.

§ 833. ACTION AGAINST AUTHORITY

(a) The authority, as an instrumentality of the state, shall be liable only for injury to persons or property or loss of life caused by the negligent or wrongful act or omission of an employee of the authority while acting within the scope of his or her office or employment to the same extent and in the same manner as the state would be liable to the claimant under sections 5601, 5602, 5603, 5604, and 5605 of Title 12.

(b) Each subsidiary corporation of the authority shall be subject to the provisions of subsection (a) of this section with respect to its liability for injury to persons or property or loss of life caused by the negligent or wrongful act or omission of its employee while acting within the scope of his or her office or employment as if the subsidiary corporation were separately named; provided, however, that a subsidiary corporation of the authority which is a stock corporation shall not be subject to the provisions of this section except with respect to those causes of action arising on and after the first day of the twelfth calendar month following that calendar month in which the stock corporation becomes a subsidiary corporation of the authority.

§ 834. ESTABLISHMENT

(a) There is established a body corporate and politic, with corporate succession, to be known as the “Vermontrail authority.” The authority is constituted as an instrumentality of the state exercising public and essential governmental functions, and the exercise by the authority of the powers conferred by this chapter is deemed an essential governmental function of the state.

(b) Upon approval by the general assembly of the report required in subsection (c) of this section, all of the railroad facilities that are owned or operated by public agencies, authorities, or instrumentalities of the state, or any combination, shall be conveyed to the authority established in this chapter. The authorizations provided for in this chapter shall not be operable until approval is granted by the general assembly. However, the authority may accept any federal earmarks pending this approval.

(c) The Vermont rail authority established in this chapter shall report to the general assembly by January 15, 2006 with detailed recommendations addressing the following:

(1) Assets of the authority and a management plan for those assets.

(2) The initial funding of the authority, the source of funding, and the funding necessary to discharge authority responsibilities for a fiveyear period.

(d) The authority shall serve the following purposes:

(1) To own, operate, and maintain the publicly owned rail facilities in the state, except those owned by municipalities unless specifically transferred by the municipality;

(2) To maximize the state’s freight rail capacity in order to minimize the volume of freight which must be conveyed over the state’s highways and bridges;

(3) To promote and assist in the development of highway improvements associated with facilitating the transfer of freight transport to the state’s rail system; and

(4) To promote and assist in the development of public or private projects, partnerships, joint ventures, and other collaborations with privately owned freight and transit providers or shippers within the state.

(e) The authority shall evaluate project feasibility, establish priorities, and implement improvements to the statewide rail system. Initial priorities shall include but not be limited to:

(1) Implementation of the western Vermont freight transportation gateway project (hereafter the gateway project), which initially comprises four primary elements: the relocation of the Rutland rail yard and related improvements; the development of the Middlebury spur; improvements to the St. Albans intermodal connector and freight facilities; and improvements to the Albany-Bennington-Rutland-Burlington-Essex rail lines. Improvements made through the project shall facilitate intermodal freight movement and intercity and commuter passenger service.

(2) Implementation of Burlington area rail improvements program, which addresses ongoing evaluation of site options for future intermodal passenger and freight facilities, including relocation of the Burlington railyard and the VT 15 intermodal passenger facility; the upgrade of the Burlington to Essex rail line right-of-way from the Burlington rail yard to the Essex depot for transit purposes in the most efficient and cost effective manner; development of facilities in the Burlington rail yard to facilitate the turning of trains on the mainline and improvement of lines connecting Burlington to other rail centers.

(3) Upgrading of bridge capacity throughout the public and private rail systems to accommodate a minimum load capacity of 286,000 pounds, with initial priority given to the Pittsford – BellowsFalls upgrade project.

(4) Upgrading of tunnel clearances throughout the public and private rail systems to accommodate doublestacked container service, with initial priority given to the tunnel in BellowsFalls and other facilities affecting the movement of freight between points of origin in southern New England and Canada.

(5) Coordination with regional transit districts and other transit operators to maximize implementation of multimodal passenger strategies.

(f) The authority shall plan and implement economic development initiatives in collaboration with the state, regional economic development corporations, and other local, state, regional, or federal agencies as appropriate.

§ 835. MEMBERSHIP; VACANCIES

(a) The authority shall consist of 11 members determined as follows:

(1) A chair and five members appointed by the governor with the advice and consent of the senate;

(2) The secretary of transportation or designee;

(3) The treasurer or designee;

(4) The chairs of the house and senate committees on transportation or designees; and

(5) A representative of the ChittendenCounty metropolitan planning organization.

(b) The chair and five appointed members of the authority shall be residents of counties affected by the state’s rail system, with no more than one member coming from any given county, and must have been registered voters of the state for at least one year next preceding their appointment. Appointments shall reflect a balance between the eastern and western portions of the state. The interim chair shall be the secretary of transportation and the interim vice chair shall be the state treasurer. Each member shall hold office for the term of his or her appointment or until his or her successor is appointed and qualified. A vacancy shall be filled in the same manner as the original appointment, but for the unexpired term only.

(c) The term of office of a member shall be five years, except that the governor’s initial appointments to the reconstituted board shall be staggered so that the term of one member shall expire each year on February 1. Members shall be eligible for reappointment to one additional five-year term but shall not be eligible for further reappointment.

§ 836. OFFICERS; QUORUM

The members shall meet at least once every year and at their first meeting annually shall elect one of their number to serve as vice chair for a term of one year. The powers of the authority are vested in the members, and six members of the authority shall constitute a quorum. Action may be taken and motions and resolutions adopted by the authority at any meeting by the affirmative vote of at least six members of the authority.

§ 837. REMOVAL FROM OFFICE; OATH

The governor may remove any member, including the chair, for inefficiency, neglect of duty, or misconduct in office after giving him or her a copy of the charges and an opportunity to be heard, in person or by counsel in his or her defense, upon not less than ten days’ notice. Each member, including the chair, before entering upon his or her duties shall take and subscribe an oath to perform the duties of his or her office faithfully, impartially, and justly to the best of his or her ability. A record of the oath shall be filed in the office of the secretary of state.

§ 838. COMPENSATION; EXPENSES

(a) The members, including the chair, shall serve without compensation, but the authority shall reimburse them for actual and necessary expenses incurred in the performance of official duties.

(b) Notwithstanding any other law, an officer or employee of the state shall not forfeit his or her office or employment or any benefits by reason of his or her acceptance of membership on or as chair of the authority. However, a member or chair who holds other public office or employment shall receive no additional compensation for services rendered pursuant to this chapter, but shall be entitled to reimbursement for his or her actual and necessary expenses incurred in the performance of those services.

§ 839. TERMINATION; AUTHORITY

The authority shall continue as long as it has bonds or other obligations outstanding and until its existence is terminated by law. Upon the termination of the authority, all its rights and properties shall pass to and be vested in the state.

§ 840. AUTHORIZED PROJECTS

(a) The powers and duties granted to the authority under this chapter shall be exercised only pursuant to the acquisition, operation, maintenance, or support of an authorized project as defined in this section.

(b) An authorized project shall mean a transportation facility as defined in sections 830 and 834 of this chapter and specifically authorized by the general assembly.

(c) The acquisition, operation, maintenance, support, improvement, development, and extension of railroad passenger train service and facilities shall be an authorized project pursuant to this chapter.

§ 841. GENERAL POWERS

(a) The authority has the following powers for carrying out the purposes of this chapter:

(1) To sue and be sued in its own name and to plead and be impleaded and to litigate or adjust, compromise, or settle all claims or litigation in which it may be involved.

(2) To adopt an official seal and alter the same at pleasure.

(3) To borrow money and issue negotiable notes, bonds, or other obligations and to provide for the payment thereof and for the rights of the holders.

(4) To invest any funds held in reserve or sinking funds or any monies not required for immediate use or disbursement at the discretion of the authority in the same manner as permitted for investment of funds belonging to the state or held in the treasury.

(5) To adopt and amend bylaws for the management and regulation of its affairs and make, alter, and enforce rules and regulations governing the conduct of its business and for use of its services and facilities.

(6) To enter into, under procedures it determines to be appropriate, and enforce all contracts, agreements, or leases necessary, and to execute all instruments necessary or convenient for the purposes of the authority or for the performance of its duties and the execution or carrying out of any of its powers under this chapter.

(7) To acquire, hold, and dispose of real or personal property in the exercise of its powers subject to the limitations imposed by subsections 834(b) and (c) of this chapter.

(8) To appoint and discharge at its pleasure officers and employees it may require for the performance of its duties and to fix and determine their qualifications, duties, and compensation all without regard to Title 3 and to retain or employ counsel, auditors, engineers, and private consultants on a contract basis or otherwise for rendering professional or technical services and advice.

(9) To make plans, surveys, and studies necessary, convenient, or desirable to the effectuation of the purposes and powers of the authority and to prepare recommendations in this regard.

(10) To enter upon any lands, waters, or premises necessary, convenient, or desirable for the purpose of making surveys, soundings, borings, and examinations to accomplish any purpose authorized by this chapter. The authority shall be liable for actual damage done.

(11) To conduct investigations and hearings in the furtherance of its general purposes and to have access to any relevant books, records, or papers. If any person whose testimony is required for the proper performance of the duties of the authority shall fail or refuse to aid or assist the authority in the conduct of any investigation or hearing or to produce any relevant books, records, or other papers, the authority may apply for process of subpoena, to issue out of any superior court whose process can reach the person, upon due cause shown.

(12) To do all things necessary, convenient, or desirable to carry out the purposes of or the powers expressly granted or necessarily implied in this chapter.

(13) To promote and enhance regional economic development.

(14) To pursue economic development of its property alone or in conjunction with regional economic development corporations and authorities, or both.

(b) Notwithstanding any other law, the authority and any of its subsidiary corporations may continue to provide any retirement, disability, death, or other benefits provided or required for railroad personnel pursuant to federal or state law.