Bills › 90th General Assembly
Relating to the payment of costs by railroad track owners and railroad corporations for certain railroad construction, maintenance, and other related projects
Where it is now
- Done: IntroducedFebruary 23, 2023
- Done: SubcommitteeFebruary 27, 2023
- Done: Senate committeeMarch 2, 2023
- Skipped: Passes the SenateContinued as SF 500
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 500 → Its progress continues under the new number. Go to SF 500 What’s a funnel?
What’s in it
AI summary Railroad companies will now have to pay for all the costs of maintaining crossings and warning devices themselves. They can no longer receive money from the state to help with these projects. If a railroad company sells its land to someone else, they must pay for any necessary improvements before or during that transfer.1
Read the official explanation
15 —— signals and gate arms at railway and highway crossings at grade).81). A railroad corporation is eligible to agree with the department of transportation (DOT) and the local government entity with jurisdiction over the relevant area about certain costs, and the DOT must assist with the project by paying a portion of the cost for the work, if moneys are available, from the highway railroad grade crossing surface repair fund. This bill requires the owner of a railroad track or a railroad corporation, as applicable, to bear the cost of the responsibilities detailed in the bill without assistance from the DOT or another governmental entity. The bill requires a railroad corporation that transfers a railroad right-of-way to a person who is not a railroad corporation to pay the costs associated with the related right-of-way improvements prior to the transfer, or on a schedule agreed to by the transferee. The bill strikes or repeals all provisions relating to the highway grade crossing safety fund and the highway railroad grade crossing surface repair fund. Any moneys remaining in the repealed funds are transferred to the road use tax fund.
Senate subcommittee
Named February 27, 2023. On February 28, 2023 it recommended passage. [].
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill requires railroad owners to pay for the construction and maintenance of crossings and the removal of tracks without help from the state. By repealing two specific funds, the bill will make an additional $1.6 million per year available to be distributed to the Primary Road Fund, Secondary Road Fund, Cities Street Construction Fund, and Farm-to-Market Road Fund. All remaining balances from the Highway Railroad Grade Crossing Surface Repair Fund and the Highway Grade Crossing Safety Fund will be transferred to the Road Use Tax Fund by the end of fiscal year 2024.3
Read the fiscal note
Description
Senate File 2114 requires the owner of a railroad track or railroad corporation, as applicable, to bear financial responsibility for building and maintaining railroad crossings on private farms, in towns or cities, and across primary roads. Railroad track owners and railroad corporations are also required to bear financial responsibility for removing railroad tracks in cities, counties, and other jurisdictions that have authority to remove railway tracks. The Bill requires railway corporations that transfer a railroad right-of-way to a person who is not a railroad corporation to pay the costs associated with the related right-of-way improvements prior to the transfer, or on a schedule agreed to by the transferee.
Railroad corporations and railroad track owners are to bear the cost of the responsibilities detailed in the Bill without assistance from the Department of Transportation (DOT) or other governmental entity.
The Bill repeals the Highway Grade Crossing Safety Fund and the Highway Railroad Grade Crossing Surface Repair Fund. The FY 2024 ending balances of the funds will be transferred to the Road Use Tax Fund (RUTF) at the end of the year.
Background
Current law requires the owner of a railroad track to place certain warning devices, including close-clearance warning devices and signals and gate arms at railway and highway crossings at grade. Railroad corporations are required to construct and maintain private farm crossings, construct crossings that intersect highways at grade, remove unused crossings that intersect highways, and maintain certain improvements along the railroad track rights-of-way. A railroad corporation is eligible to agree with the DOT and the local government entity with jurisdiction over the relevant area about certain costs, and the DOT must assist with the project by paying a portion of the cost for the work, if moneys are available, from the Highway Railroad Grade Crossing Surface Repair Fund.
The annual off-the-top allocations from the RUTF to the Highway Grade Crossing Safety Fund is $700,000 per year and the Highway Railroad Grade Crossing Surface Repair Fund is $900,000 per year.
The RUTF is the primary source of funding for the construction, maintenance, and administration of Iowa’s highways. Road Use Tax Fund revenue is collected by the State Treasurer and distributed to the DOT, counties, and cities by formula. All other distributions and appropriations are taken off the top, 47.5% is allocated to the DOT for primary roads, 24.5% to counties for secondary roads, 8.0% to counties for farm-to-market roads, and 20.0% to cities. In FY 2023, the RUTF received $1.988 billion in revenue.
Assumptions
At the end of FY 2023, the Highway Railroad Grade Crossing Surface Repair Fund had a balance of $3.5 million and the Highway Grade Crossing Safety Fund had a balance of $9,000. All remaining Fund balances will be transferred to the RUTF by the end of FY 2024.
Fiscal Impact
The elimination of off-the-top allocations from the RUTF to the Highway Grade Crossing Safety Fund and Highway Grade Crossing Repair Fund will make available an additional $1.6 million per year to be distributed by formula to the Primary Road Fund, Secondary Road Fund, Cities Street Construction Fund, and Farm-to-Market Road Fund.
Sources
- Legislative Services Agency
- Department of Transportation
- Treasurer of State
- Railroad Maintenance Costs, Financial Responsibility · March 7, 2024
Iowa Code it changes
Amends§312.2§327F.13§327G.11§327G.15§327G.24§327G.30§327G.81
Lobbying
2 for · 9 against · 5 undecided · Who →
Family tree
90th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title.
Similar bills
- SF 23 Relating to the payment of costs by railroad track owners and railroad corporations for ce…91st General Assembly · Subcommittee recommends passageNearly identical
Matched by wording or an identical title.