Sponsored by:
Assemblyman L. HARVEY SMITH
District 31 (Hudson)
Assemblyman JOHN S. WISNIEWSKI
District 19 (Middlesex)
SYNOPSIS
Requires railroad company to negotiate in good faith with certain entities for sale of railroad right of way proposed for abandonment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning railroad rights of way and amending P.L.1967, c.282.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1967, c.282 (C.48:12-125.1) is amended to read as follows:
a. In order to permit the State and its political subdivisions to receive notice of, and be afforded an opportunity to acquire, by purchase or condemnation, railroad rights of way proposed to be abandoned, any railroad company which makes application to the [Interstate Commerce Commission] Surface Transportation Board for authority to abandon any part of its right of way on which passenger or freight services are operated, or to abandon, sell, or lease any of its right of way over which services have previously been abandoned and title to such right of way currently remains with the railroad shall, within 10 days of making such application, serve notice thereof upon the State and upon each county and municipality in which any part of the right of way proposed for abandonment is located. No sale or conveyance of any part of such right of way shall thereafter be made to any person other than the State, [a] or such county or municipality, for a period of 90 days from the date of approval by the [Interstate Commerce Commission] Surface Transportation Board of the application for abandonment or from the date of service of the notice in this section required, whichever occurs later, unless prior thereto each governmental agency entitled to such notice shall have filed with the railroad company written disclaimer of interest in acquiring all or any part of said right of way.
b. During the period of 90 days in which a railroad company is prohibited from selling or conveying any part of a right of way pursuant to subsection a. of this section, such railroad company shall negotiate in good faith for the sale or conveyance of the right of way with the State, or with any municipality or county in which the right of way proposed for abandonment is located and which expresses interest in acquiring such right of way.
c. Any sale or conveyance of
a right of way made after the expiration of the foregoing 90-day period to any
person other than the State or a county or municipality in which any part of
the right of way proposed for abandonment is located shall be subject to the
right of first refusal by any of the foregoing governmental entities which shall
have made an offer to purchase such right of way during the 90-day period and
which offer was refused by the
railroad company. Upon exercising this right of first refusal, the
governmental entity shall purchase the right of way for the same amount agreed
upon between the railroad company the person to whom the company attempted to
sell or convey such right of way.
d. Any sale or conveyance made in violation of [this act] P.L.1967, c.282 (C.48:12-125.1 et seq.) shall be void.
As used in this act "right of way" means the roadbed of a line of railroad, not exceeding 100 feet in width, as measured horizontally at the elevation of the base of the rail, including the full embankment or excavated area, with slopes, slope ditches, retaining walls, or foundations necessary to provide a width not to exceed 100 feet at the base of rail, but not including tracks, appurtenances, ballast nor any structures or buildings erected thereon.
(cf: P.L.1967, c.282, s.1)
2. This act shall take effect immediately.
STATEMENT
Current law prohibits the sale or conveyance of any part of a railroad right of way proposed for abandonment to any person, other than the State or a county or a municipality in which the right of way is located, for a period of 90 days from the date the Surface Transportation Board approves such abandonment, or from the date upon which the company serves notice of its intent to abandon, whichever occurs later. This bill would strengthen the existing statute by requiring the railroad company to negotiate in good faith with the State or any such county or municipality that desires to acquire the right of way proposed for abandonment. The bill also provides any of the foregoing governmental entities with the right of first refusal of any sale made to any other person after the end of the 90-day period, provided that such governmental entity made an offer to purchase the right of way prior to the expiration of the 90-day period. Upon exercising the right of first refusal, the governmental entity would be required to purchase the right of way for an amount equal to that which is agreed upon between the railroad company and the person to whom the company attempted to sell the right of way.