2009 Montana Legislature

SENATE BILL NO. 291

INTRODUCED BY J. BLACK

AN ACT ESTABLISHING THE MONTANA RAILROAD DEVELOPMENT AUTHORITY; DEFINING TERMS; ESTABLISHING AUTHORITY MEMBERSHIP; AUTHORIZING THE APPOINTMENT OF AUTHORITY MEMBERS; CLARIFYING THE PUBLIC SERVICE COMMISSION'S AUTHORITY; REQUIRING THAT THE LEGISLATURE APPROVE THE AUTHORITY'S ACQUISITION OF A RAILROAD FACILITY; PROVIDING THE AUTHORITY WITH CERTAIN POWERS; PROVIDING THE AUTHORITY WITH RULEMAKING AUTHORITY THAT ALLOWS IT TO ISSUE REVENUE BONDS; CLASSIFYING CERTAIN AUTHORITY RAILROAD FACILITY PROPERTY AS CLASS NINE PROPERTY FOR PROPERTY TAX PURPOSES; CLASSIFYING CERTAIN AUTHORITY RAILROAD FACILITY PROPERTY AS CLASS TWELVE PROPERTY FOR PROPERTY TAX PURPOSES; PROVIDING THAT AUTHORITY FACILITIES ARE SUBJECT TO THE PRIVILEGE TAX; REQUIRING THAT THE AUTHORITY REPAY STATE APPROPRIATIONS; REQUIRING THE DEPARTMENT OF TRANSPORTATION TO CONSULT WITH THE AUTHORITY IN ADMINISTERING THE MONTANA ESSENTIAL FREIGHT RAIL ACT; ELIMINATING THE RAIL SERVICE COMPETITION COUNCIL; AMENDING SECTIONS 7-12-2156, 7-14-4301, 10-3-1204, 15-6-141, 15-6-145, 15-6-201, 15-8-111, 15-8-405, 15-23-101, 15-23-203, 15-23-204, 15-23-205, 15-23-211, 15-24-1203, 18-2-101, 18-4-313, 27-2-207, 37-60-105, 39-2-703, 44-4-902, 44-4-903, 44-4-904, 60-11-111, 60-11-119, 60-11-120, 60-11-123, 69-1-110, 69-1-112, 69-11-108, 69-14-101, 69-14-201, 69-14-202, 69-14-205, 69-14-206, 69-14-208, 69-14-209, 69-14-210, 69-14-214, 69-14-232, 69-14-236, 69-14-237, 69-14-238, 69-14-239, 69-14-240, 69-14-252, 69-14-513, 69-14-514, 69-14-531, 69-14-532, 69-14-533, 69-14-534, 69-14-536, 69-14-538, 69-14-539, 69-14-552, 69-14-553, 69-14-554, 69-14-555, 69-14-557, 69-14-558, 69-14-560, 69-14-561, 69-14-562, 69-14-601, 69-14-612, 69-14-620, 69-14-626, 69-14-701, 69-14-702, 69-14-703, 69-14-704, 69-14-706, 69-14-707, 69-14-708, 69-14-710, 69-14-711, 69-14-714, 69-14-721, 69-14-722, 69-14-801, 69-14-804, 69-14-805, 69-14-811, 69-14-901, 69-14-902, 69-14-904, 69-14-910, 69-14-1005, 69-14-1006, 69-14-1101, 70-30-102, 81-8-252, 85-1-208, 85-7-1909, 85-8-341, AND 85-8-366, MCA; REPEALING SECTION 2-15-2511, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Short title. [Sections 1 through 20] may be cited as the "Montana Railroad Development Authority Act".

Section 2. Definitions. As used in [sections 1 through 20], unless the context clearly requires otherwise, the following definitions apply:

(1) (a) "Authority" means the Montana railroad development authority provided for in [section 3].

(b) The term does not include a railroad company.

(2) "Department" means the department of transportation provided for in 2-15-2501.

(3) "Federal government" means the United States of America or any agency or instrumentality, corporate or otherwise, of the United States of America.

(4) (a) "Railroad facilities" means railroads and railroad facilities, including but not limited to terminal buildings, roadways, tracks, crossings, bridges, causeways, tunnels, equipment, and rolling stock, that may be necessary to carry out the provisions of [sections 1 through 20].

(b) The term does not include abandoned railroads or railroad facilities acquired by a rail authority pursuant to Title 7, chapter 14, part 16.

(5) "Security" means any note, any stock, whether a common or preferred stock, any bond, debenture, evidence of indebtedness, transferable share, voting-trust certificate, or interest or instrument commonly known as a security, or any certificate of interest, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase a security.

(6) "Swap agreement" means:

(a) any interest rate swap, option, future, or forward agreement, including a rate floor, rate cap, rate collar, or cross-currency rate swap agreement, or a basis swap;

(b) a spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or precious metals agreement;

(d) a total return, credit spread, or credit swap, option, future, or forward agreement;

(e) a commodity index or a commodity swap, option, future, or forward agreement;

(f) a weather swap, weather derivative, or weather option;

(g) any option to enter into an agreement or transaction referred to in this subsection (6); and

(h) any master agreement that provides for an agreement or transaction referred to in this subsection (6).

Section 3. Montana railroad development authority -- membership -- compensation -- staff. (1) There is created the Montana railroad development authority. The authority is constituted as a public instrumentality, and its exercise of the powers conferred by [sections 1 through 20] must be considered to be the performance of an essential governmental public function.

(2) The authority consists of the following members:

(a) the director of the department of agriculture provided for in 2-15-3001;

(b) the director of the department of transportation provided for in 2-15-2501;

(d) eight people, appointed by the governor, who shall serve staggered 4-year terms commencing January 1 following their appointment, with the following qualifications:

(i) one person with substantial knowledge and experience related to Class I railroads;

(ii) one person with substantial knowledge and experience related to Class II railroads;

(iii) one person who is a farm commodity producer in the state and who has substantial knowledge and experience related to transportation of farm commodities;

(iv) one person with substantial knowledge and experience in the trucking industry in the state;

(v) one person with substantial knowledge and experience related to transportation for the mineral industry in the state;

(vi) one person with substantial knowledge and experience related to transportation for the coal industry in the state;

(vii) one person with substantial knowledge and experience related to transportation for the wood products industry in the state; and

(viii) one person with substantial knowledge and experience related to rail passenger service provided by amtrak in Montana; and

(3) The members shall elect a presiding officer and a vice presiding officer by majority vote.

(4) The governor shall designate four of the initial members appointed pursuant to subsection (2)(d) to serve 2-year terms and four of the initial members to serve 4-year terms. Vacancies must be filled by appointment for the unexpired term.

(5) Decisions of the authority require a simple majority of the whole membership.

(6) The authority shall meet at least twice a year and may meet more frequently as required by circumstances or at the request of any five or more members of the authority. All meetings of the authority are subject to the provisions of Title 2, chapter 3.

(7) All members are subject to the standards of conduct under the provisions of Title 2, chapter 2.

(8) The members of the authority must be compensated, reimbursed, and otherwise governed by the provisions of 2-15-122.

(9) The authority is attached for administrative purposes only to the department, which may assist the authority by providing staff and budgetary, administrative, and clerical services that the authority or its presiding officer requests.

Section 4. General powers. (1) Except as provided in [section 6] and subsection (2) of this section and in compliance with Title 69, chapter 14, the authority may:

(a) sue and be sued and may participate in actions and proceedings, whether judicial, administrative, arbitrative, or otherwise;

(b) have a seal and alter the seal and use it or a facsimile to be affixed or impressed or reproduced in any other manner;

(c) employ officers, agents, and employees that the authority considers necessary in carrying out the provisions of [sections 1 through 20];

(d) purchase, receive, take by grant, gift, devise, or bequest, lease, or otherwise acquire, own, hold, improve, employ, use, and deal in and with real or personal property, whether tangible or intangible, or any interest in the property within or outside the state;

(e) acquire real or personal property within or outside the boundaries of the state, whether tangible or intangible, including without limitation property rights, interests in property, franchises, obligations, contracts, and debt and equity securities;

(f) sell, convey, lease, exchange, transfer, abandon, or otherwise dispose of or mortgage, pledge, or create a security interest in all or any of the authority's assets or property or any interest in those assets or property, wherever situated;

(g) purchase, take, receive, subscribe for, or otherwise acquire, hold, make a tender offer for, vote, employ, sell, lend, lease, exchange, transfer, or otherwise dispose of, mortgage, pledge, or grant a security interest in bonds and other obligations, shares, or other securities issued by others, whether engaged in a similar or different business or activity, subject to constitutional restrictions;

(h) make and execute agreements, contracts, and other instruments necessary or convenient in the exercise of authority powers and functions under [sections 1 through 20];

(i) borrow money at a rate or rates of interest determined by the authority and issue authority notes, bonds, or other debt obligations and secure any of its obligations by mortgage or pledge of its property or any interest in its property;

(j) arrange for guarantees, bond insurance, letters of credit, and other forms of credit and liquidity support with respect to its bonds, notes, or other obligations by the federal government, the state, bond insurers, banks, or other financial institutions and enter into insurance, reimbursement, revolving credit, bond purchase, or similar agreements that may contain authority-approved provisions, including without limitation provisions for the payment of premiums or other fees, financial and other covenants, defaults, and remedies;

(k) consent to the jurisdiction of courts within or outside the state and waivers of jury trial and immunity from suit and liability;

(l) issue bonds, notes, or other obligations whether or not the income from those bonds, notes, or other obligations is exempt from federal income taxation;

(m) purchase authority bonds, notes, or other obligations at a price that the authority determines;

(n) procure insurance against any loss in connection with its property or operations from insurers, including the federal government, in an amount that the authority determines necessary and pay any insurance premiums;

(o) negotiate and enter into agreements with trustees or receivers appointed by United States bankruptcy courts or federal district courts or in other proceedings involving adjustment of debts and authorize legal counsel for the authority to appear in those proceedings;

(p) purchase or lease, within or outside of the state, railroad facilities;

(q) enter into management agreements for the operation of the property or facilities owned by the authority;

(r) if money is available, make any inquiry, investigation, survey, or study that the authority determines is necessary to enable it to effectively carry out the provisions of [sections 1 through 20];

(s) subject to the Montana Administrative Procedure Act, adopt, amend, and repeal rules involving authority operations, property, and facilities in order to implement the provisions of [sections 1 through 20];

(t) enter into any swap agreement for the purpose of hedging risks; and

(u) perform other functions necessary to carry out the provisions of [sections 1 through 20].

(2) The authority may not exercise the power of eminent domain pursuant to Title 70, chapter 30, to acquire railroad facilities, including rights-of-way and track.

Section 5. Authority powers related to rail service. (1) In addition to and without limiting the general powers provided for in [section 4] and except as provided in [section 4(2)] and [section 6], the authority may, in compliance with Title 69, chapter 14:

(a) acquire, sell, construct, improve, rehabilitate, maintain, and operate railroad facilities necessary to maintain adequate, reliable, efficient, and economic rail service within or outside the state;

(b) determine the location, construction, use, and operation of its railroad facilities and the potential lease, purchase, ownership, or acquisition of other railroad facilities;

(c) apply to the appropriate agencies of the federal government, the state, or other state governments for licenses, permits, or approval of the authority's plans or projects and accept those licenses, permits, or approvals granted by agencies or officials, including any terms and conditions;

(d) institute suit, apply to the legislature for legislation, or take other action that furthers the purposes of [sections 1 through 20] and protect any rights or obligations pursuant to [sections 1 through 20];

(e) study means of maintaining rail service within the state and attracting agriculture, commerce, and industry to the state;

(f) cooperate with and enter into contractual arrangements with private rail service providers and railroad corporations regarding the:

(i) ownership, construction, and operation of railroad facilities by the authority; and

(ii) construction, completion, acquisition, ownership, and operation of railroad facilities;

(g) enter into cooperative and contractual arrangements with political subdivisions with respect to the construction, improvement, rehabilitation, ownership, and operation of railroad facilities;

(h) acquire from a rail service provider or railroad corporation all franchises and responsibilities for rail service, including the responsibility to provide safe and adequate service; and

(i) enter into written agreements with the federal government.

(2) The authority shall also perform the following duties:

(a) promote rail service in the state that results in reliable and adequate service at reasonable rates;

(b) develop a comprehensive and coordinated plan to increase rail service in the state;

(d) analyze the feasibility of developing legal structures to facilitate growth of producer transportation investment cooperatives;

(e) provide advice and recommendations to the department on the department's activities under 60-11-113 through 60-11-116;

(f) coordinate efforts and develop cooperative partnerships with other states and federal agencies to promote rail service;

(g) act as the state's liaison in working with Class I railroads to promote rail service; and

(h) promote the expansion of existing rail lines and the construction of new rail lines in the state.

Section 6. Legislative authority -- public service commission authority. (1) Prior to acquiring, expanding, constructing, leasing, improving, rehabilitating, maintaining, operating, selling, or purchasing railroad facilities, the authority shall:

(a) obtain general estimates of the costs associated with these proposals;

(b) prioritize proposals; and

(c) provide a prioritized list and the associated costs of the proposals to the legislature by the first day of any regular legislative session.

(2) Information required pursuant to subsection (1) is baseline information and does not include engineering studies, advanced analysis, or preconstruction or construction planning.

(3) The legislature may approve those proposals that it finds consistent with the policies and purposes of [sections 1 through 20] and in the public interest.

(4) The authority may not expend revenue, other than a legislative appropriation, or acquire, expand, construct, lease, improve, rehabilitate, maintain, operate, sell, or purchase railroad facilities without prior approval of the legislature.

(5) The public service commission shall regulate the rates, services, and practices related to railroads owned or operated by the authority pursuant to Title 69, chapter 14.

Section 7. Bonds, bond anticipation notes, and notes of authority. (1) Subject to legislative approval as provided in [section 6], the authority may by resolution issue negotiable notes and revenue bonds to:

(a) acquire any real or personal property or facilities that the authority considers necessary;

(b) prepay the purchase of railroad facility costs;

(c) pay interest on bonds or notes of the authority for which the interest may be variable or fixed and may accrue without regard to any state usury laws;

(d) establish reserves to secure its bonds and notes;

(e) establish or maintain other funds or accounts for the purpose or purposes that the authority considers necessary or desirable in implementing the provisions of [sections 1 through 20];

(f) pay all other expenses of the authority incidental to the issuance of the bonds or notes, including but not limited to costs of issuance of the bonds, capitalized interest on the bonds, funding a reserve account for the bonds, and swap agreement termination fees; and

(g) establish or replenish reserves securing the payment of its bonds and notes and finance all other expenditures of the authority incident to and necessary or convenient to carry out the provisions of [sections 1 through 20].

(2) The authority may by resolution:

(a) issue notes to renew notes and bonds or to pay notes, including interest;

(b) whenever it considers refunding expedient, refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured;

(d) in anticipation of the sale of its securities under [sections 1 through 20], issue temporary notes and renewal notes.

(3) Except as otherwise expressly provided by resolution of the authority, every issue of its notes and bonds is an obligation of the authority payable out of any revenue, assets, or money of the authority, subject only to agreements with the holders of particular notes or bonds pledging particular revenue, assets, or money.

(4) (a) The notes and bonds must be authorized by resolutions of the authority, must bear a date, and must mature at times as provided in the resolutions. The bonds may be issued as serial bonds payable in annual installments, as term bonds, or as a combination of serial and term bonds. The notes and bonds must:

(i) bear interest at a variable or fixed rate or rates or be issued as zero-coupon bonds;

(ii) be in denominations;

(iii) be in a registered form;

(iv) carry registration privileges;

(v) be payable in a medium of payment at places inside or outside the state; and

(vi) be subject to terms of redemption as provided in resolutions of the authority.

(b) The notes and bonds of the authority may be sold at public or private sale at prices that may be above or below par and that are determined by the authority.

Section 8. Refunding obligations. (1) The authority may provide for the issuance of refunding obligations for refunding any outstanding obligations that have been issued under [sections 1 through 20], including the payment of any redemption premium and any interest accrued to or to accrue to the date of redemption of the obligations. The issuance of obligations, the maturities and other details, the rights of the holders, and the rights, duties, and obligations of the authority are governed by the appropriate provisions of [sections 1 through 20] that relate to the issuance of obligations.

(2) Refunding obligations issued as provided in subsection (1) may be sold or exchanged for outstanding obligations issued under [sections 1 through 20]. The proceeds of refunding obligations may be applied to the purchase, redemption, or payment of outstanding obligations. The proceeds of refunding obligations may be invested as provided in Title 17, chapter 6, pending the application of the proceeds of refunding obligations, with other available funds, to the payment of principal, accrued interest, and any redemption premium on the obligations being refunded and, if permitted in the resolution authorizing the issuance of the refunding obligations or in the trust agreement securing them, to the payment of interest on refunding obligations and expenses in connection with refunding.

Section 9. Provisions of bond resolutions. A resolution authorizing notes or bonds or any issue of the notes or bonds may contain provisions that must be a part of the contract or contracts with the holders of the notes or bonds as to:

(1) pledging all or any part of the revenue or funds of the authority to secure the payment of the notes or bonds or of any issue of the notes or bonds, subject to existing agreements with noteholders or bondholders;

(2) pledging all or any part of the assets of the authority, including lease agreements, loan agreements, mortgages, and obligations securing them, to secure the payment of the notes or bonds or of any issue of the notes or bonds, subject to existing agreements with noteholders or bondholders;

(3) the setting aside of reserves for debt service funds in the possession of trustees, paying agents, and other depositories and the regulation and disposition of the debt service funds;

(4) limitations on the purpose for which the proceeds of the sale of notes or bonds may be applied and the pledge of the proceeds to secure the payment of the notes or bonds or of any issue of the notes or bonds;

(5) limitations on the issuance of additional notes or bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding notes or bonds;

(6) the procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the consent of the noteholders or bondholders of the amount of notes or bonds, and the manner in which the consent may be given;

(7) a commitment to employ adequate and competent personnel at reasonable compensation, salaries, fees, and charges as may be determined by the authority and to maintain suitable facilities and services for the purpose of carrying out its programs;

(8) vesting in a trustee the property, rights, powers, and duties in trust as the authority determines;

(9) defining the acts or omissions that constitute a default in the obligations and duties of the authority to the noteholders or bondholders and providing for the rights and remedies of the noteholders or bondholders in the event of a default, including as a matter of right the appointment of a receiver. Rights and remedies may not be inconsistent with the laws of this state and the other provisions of [sections 1 through 20].

(10) any new matters of like or different character that in any way affect the security or protection of bondholders.

Section 10. Nonimpairment by state. In accordance with the constitutions of the United States and the state of Montana, the state pledges that it will not in any way impair the obligations of any agreement between the authority and an eligible government unit or between the authority and the holders of notes and bonds issued by the authority.

Section 11. Trust indenture. (1) In the discretion of the authority, the bonds or notes of the authority may be secured by a trust indenture between the authority and a corporate trustee, which may be a trust company or bank having the power of a trust company inside or outside the state. A trust indenture may contain provisions for protecting and enforcing bondholders' rights and remedies that are reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the exercise of its powers and the custody, safeguarding, and application of all money. The authority may provide by a trust indenture for the payment of the proceeds of the bonds or notes and the revenue to the trustee under the trust indenture of another depository and for the method of disbursement, with safeguards and restrictions it considers necessary.

(2) All expenditures incurred in carrying out a trust indenture may be treated as part of the general overhead cost of the authority.

Section 12. Presumption of validity. After issuance, all bonds or notes of the authority are conclusively presumed to be fully authorized by and issued under all the laws of this state and any person or governmental unit is estopped from questioning the bond's or note's proper authorization, sale, issuance, execution, or delivery by the authority.

Section 13. Negotiability of bonds or notes. Notwithstanding any other provisions of law, a bond or note issued under [sections 1 through 20] is fully negotiable for all purposes of the Uniform Commercial Code, Title 30, chapters 1 through 9A, and a holder or owner of a bond or note or of a coupon appurtenant to it, by accepting the bond, note, or coupon, is conclusively presumed to have agreed that the bond, note, or coupon is fully negotiable for all purposes of the Uniform Commercial Code.

Section 14. Bonds or notes as legal investments. Notwithstanding the restrictions of any other law, all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest debt service funds, money, or other funds belonging to them or within their control in bonds or notes issued under [sections 1 through 20].

Section 15. Tax exemption of bonds. (1) Bonds, notes, or other obligations issued by the authority under [sections 1 through 20], including the transfer, income, and any profits made on the sale of the bonds, notes, or other obligations, are free from taxation by the state or any political subdivision or other instrumentality of the state, except for estate taxes and gift taxes. The authority is not required to pay recording or transfer fees or taxes on instruments recorded by it.

(2) The securities and other obligations issued by the authority and the transfer and income from those securities and other obligations must, at all times, be free from taxation by the state or any municipality, except for estate and gift taxes.

Section 16. Additional funds and accounts. The authority may establish additional reserves or other funds or accounts to further the purposes of [sections 1 through 20] or to comply with the provisions of any of its agreements or resolutions.

Section 17. Credit of state not pledged. Obligations issued under the provisions of [sections 1 through 20] do not constitute a liability or obligation or a pledge of the faith and credit of the state but are payable solely from revenue or funds of the authority generated or received for purposes of [sections 1 through 20]. An obligation issued under [sections 1 through 20] must contain on the face of the obligation a statement to the effect that the state of Montana is not liable on the obligation and the obligation is not a debt of the state and neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on the obligation.

Section 18. Care and custody of bonds purchased by the authority. The authority may:

(1) enter into agreements or contracts with a bank, trust company, or financial institution, inside or outside the state, as may be necessary, desirable, or convenient, in the opinion of the authority, for rendering services in connection with:

(a) the care, custody, or safekeeping of bonds or other investments held or owned by the authority pursuant to [sections 1 through 20];

(b) the payment or collection of amounts payable as to principal or interest; and

(c) the delivery to the authority of bonds or other investments purchased by it or sold by it pursuant to [sections 1 through 20];

(2) pay the cost of the services described in subsection (1); and

(3) in connection with any of the services to be rendered by a bank, trust company, or financial institution as to the custody and safekeeping of its bonds or investments, require security in the form of collateral bonds, surety agreements, or security agreements in a form and amount as, in the opinion of the authority, is necessary or desirable.

Section 19. Insurance or guaranty. The authority may obtain, from a department or agency of the United States or a nongovernmental insurer, insurance or guaranty for the payment or repayment of interest or principal, or both, or any part of interest or principal on bonds or notes issued by the authority or on bonds, bond anticipation notes, or notes of eligible government units purchased or held by the authority.

Section 20. Repayment of appropriations. (1) Except as provided in subsection (2), an appropriation made by the legislature in connection with planning, study, feasibility analysis, regulatory approval, closing, or any other related costs in connection with the acquisition of the stock or assets of a railroad facility must be treated as an advance to the authority, and the authority shall repay the appropriation, without interest and times and under conditions mutually agreed upon by the authority and the state, upon completion of the acquisition of the stock or assets of the railroad facility either out of the proceeds of bonds issued by the authority pursuant to [sections 1 through 20] or out of excess revenue of the authority.

(2) If an acquisition of a railroad facility is not completed by December 31, 2025, the authority is not obligated to repay any expended funds and any unexpended funds must revert to the state general fund.

(3) For purposes of this section, "excess revenue" means gross revenue less the costs of the authority's operations and the payment of debt service of the authority's bonds.

Section 21. Section 7-12-2156, MCA, is amended to read:

"7-12-2156. Responsibility for costs for improvements close to street railway. Whenever any If a portion of the surface of a street is kept or used by any the Montana railroad development authority or a person, firm, or corporation for railroad or for street railway purposes, the cost and expense of making such improvements between the rails and for 1 foot on each side thereof of the rails shall must be paid by the authority, person, firm, or corporation owning such the railroad;. and where Where double tracks of railroads are laid, such the Montana railroad development authority, person, firm, or corporation shall pay the costs of making such the improvement or improvements between such the tracks and between all switches and spurs."

Section 22. Section 7-14-4301, MCA, is amended to read:

"7-14-4301. Regulation of railways. (1) The city or town council may grant the right-of-way through the streets, avenues, and other property of a city or town for the purpose of street or other railroads, to regulate the running and management of the railroads, and to compel the owner of a street or other railroad to:

(a) to keep the street in repair when occupied by the street or other railroad,;

(b) to regulate the speed of railroad engines,; and

(c) to require railroad companies or the Montana railroad development authority to station flag persons at street crossings.

(2) The city or town council may regulate and control the laying of railroad tracks, and may prohibit the use of engines and locomotives, or regulate the speed of engines and locomotives."

Section 23. Section 10-3-1204, MCA, is amended to read:

"10-3-1204. State emergency response commission. (1) There is a state emergency response commission that is attached to the department for administrative purposes. The commission consists of 29 members appointed by the governor. The commission must include representatives of the national guard, the air force, the department of environmental quality, the division, the department of transportation, the department of justice, the department of natural resources and conservation, the department of public health and human services, a fire service association, the fire services training school, the emergency medical services and trauma systems section of the public health and safety division in the department of public health and human services, the department of fish, wildlife, and parks, the department of agriculture, Montana hospitals, an emergency medical services association, a law enforcement association, an emergency management association, a public health-related association, a trucking association, a utility company doing business in Montana, a railroad company doing business in Montana, the Montana railroad development authority, Montana's petroleum industry, Montana's insurance industry, the university system, a tribal emergency response commission, the national weather service, the Montana association of counties, the Montana league of cities and towns, and the office of the governor. At least one representative must be a member of a local emergency planning committee. Members of the commission serve terms of 4 years and may be reappointed. The members shall serve without compensation. The governor shall appoint two presiding officers from the appointees, who shall act as copresiding officers.

(2) The commission shall implement the provisions of this part. The commission may create and implement a state hazardous material incident response team to respond to incidents. The members of the team must be certified in accordance with the plan.

(3) The commission may enter into written agreements with each entity or person providing equipment or services to the state hazardous material incident response team.

(4) The commission or its designee may direct that the state hazardous material incident response team be available and respond, when requested by a local emergency response authority, to incidents according to the plan.

(5) The commission may contract with persons to meet state emergency response needs for the state hazardous material incident response team.

(6) The commission may advise, consult, cooperate, and enter into agreements with agencies of the state and federal government, other states and their state agencies, cities, counties, tribal governments, and other persons concerned with emergency response and matters relating to and arising out of incidents.

(7) The commission may encourage, participate in, or conduct studies, investigations, training, research, and demonstrations for and with the state hazardous material incident response team, local emergency responders, and other interested persons.

(8) The commission may collect and disseminate information relating to emergency response to incidents.

(9) The commission may accept and administer grants, gifts, or other funds, conditional or otherwise, made to the state for emergency response activities provided for in this part.

(10) The commission may prepare, coordinate, implement, and update a plan that coordinates state and local emergency authorities to respond to incidents within the state. The plan must be consistent with this part. All state emergency response responsibilities relating to an incident must be defined by the plan.

(11) The commission has the powers and duties of a state emergency response commission under the federal Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. 11001, et seq., except that the division shall oversee the creation, annual local review, and exercise and revision of the local emergency operations plan as provided by state law.

(12) The commission shall promulgate rules and procedures limited to cost recovery procedures, certification of state hazardous material incident response team members, and deployment of the state hazardous material incident response team, which must be a part of the plan.

(13) The commission shall act as an all-hazard advisory board to the division by:

(a) assisting the division in carrying out its responsibilities by providing the division with recommendations on issues pertaining to all-hazard emergency management; and

(b) authorizing the establishment of subcommittees to develop and provide the recommendations called for in subsection (13)(a).

(14) The commission shall appoint the members of the Montana intrastate mutual aid committee provided for in 10-3-904.

(15) All state agencies and institutions shall cooperate with the commission in the commission's efforts to carry out its duties under this part."

Section 24. Section 15-6-141, MCA, is amended to read:

"15-6-141. Class nine property -- description -- taxable percentage. (1) Class nine property includes:

(a) centrally assessed allocations of an electric power company or centrally assessed allocations of an electric power company that owns or operates transmission or distribution facilities or both, including, if congress passes legislation that allows the state to tax property owned by an agency created by congress to transmit or distribute electrical energy, allocations of properties constructed, owned, or operated by a public agency created by congress to transmit or distribute electrical energy produced at privately owned generating facilities, not including rural electric cooperatives. However, rural electric cooperatives' property, except wind generation facilities classified under 15-6-157, used for the sole purpose of serving customers representing less than 95% of the electric consumers located within the incorporated limits of a city or town of more than 3,500 persons in which a centrally assessed electric power company also owns property or serving an incorporated municipality with a population that is greater than 3,500 persons formerly served by a public utility that after January 1, 1998, received service from the facilities of an electric cooperative is included. For purposes of this subsection (1)(a), "property used for the sole purpose" does not include a headquarters, office, shop, or other similar facility.

(b) allocations for centrally assessed natural gas companies having a major distribution system in this state; and

(i) electrical generation facilities classified under 15-6-156;

(ii) all property classified under 15-6-157;

(iii) all property classified under 15-6-158 and 15-6-159;

(iv) property owned by cooperative rural electric and cooperative rural telephone associations and classified under 15-6-135;

(v) property owned by organizations providing telephone communications to rural areas and classified under 15-6-135;

(vi) railroad transportation property included in 15-6-145;

(vii) airline transportation property included in 15-6-145; and

(viii) telecommunications property included in 15-6-156; and

(d) centrally assessed allocations of the property owned by the Montana railroad development authority.

(2) Class nine property is taxed at 12% of market value."

Section 25. Section 15-6-145, MCA, is amended to read:

"15-6-145. Class twelve property -- description -- taxable percentage. (1) Class twelve property includes:

(a) all property of a railroad car company as defined in 15-23-211, all railroad transportation property as described in the Railroad Revitalization and Regulatory Reform Act of 1976 as it read on January 1, 1986, and all airline transportation property as described in the Tax Equity and Fiscal Responsibility Act of 1982 as it read on January 1, 1986; and

(b) noncentrally assessed railroad facilities owned or operated by the Montana railroad development authority.

(2) For the tax year beginning January 1, 1991, and for each succeeding tax year thereafter, class twelve property is taxed at the percentage rate "R", to be determined by the department as provided in subsection (3), or 12%, whichever is less.

(3) R = A/B where:

(a) A is the total statewide taxable value of all commercial property, except class twelve property, as commercial property is described in 15-1-101(1)(d); and

(b) B is the total statewide market value of all commercial property, except class twelve property, as commercial property is described in 15-1-101(1)(d).

(4) (a) For the taxable tax year beginning January 1, 1986, and for every taxable each succeeding tax year thereafter, the department shall conduct a sales assessment ratio study of all commercial and industrial real property and improvements. The study must be based on:

(i) assessments of such the property as of January 1 of the year for which the study is being conducted; and

(ii) a statistically valid sample of sales using data from realty transfer certificates filed during the same taxable tax year or from the immediately preceding taxable tax year, but only if a sufficient number of certificates is unavailable from the current taxable tax year to provide a statistically valid sample.

(b) The department shall determine the value-weighted mean sales assessment ratio "M" for all such the property and reduce the taxable value of property described in subsection (4) only, by multiplying the total statewide taxable value of property described in subsection (4)(a) by "M" prior to calculating "A" in subsection (3)(a).

(c) The adjustment referred to in subsection (4)(b) will be made beginning January 1, 1986, and in each subsequent tax year to equalize the railroad taxable values.

(5) For the purpose of complying with the Railroad Revitalization and Regulatory Reform Act of 1976, as it read on January 1, 1986, the rate "R" referred to in this section is the equalized average tax rate generally applicable to commercial and industrial property, except class twelve property, as commercial property is defined in 15-1-101(1)(d)."

Section 26. Section 15-6-201, MCA, is amended to read:

"15-6-201. Governmental, charitable, and educational categories -- exempt property. (1) The following categories of property are exempt from taxation:

(a) except as provided in 15-6-141, 15-6-145, 15-8-111, 15-8-405, 15-23-101, 15-23-204, 15-23-205, and 15-24-1203, the property of:

(i) the United States, except:

(A) if congress passes legislation that allows the state to tax property owned by the federal government or an agency created by congress; or

(B) as provided in 15-24-1103;

(ii) the state, counties, cities, towns, and school districts;

(iii) irrigation districts organized under the laws of Montana and not operated for gain or profit;

(iv) municipal corporations;

(v) public libraries; and

(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;

(b) buildings and furnishings in the buildings that are owned by a church and used for actual religious worship or for residences of the clergy, not to exceed one residence for each member of the clergy, together with the land that the buildings occupy and adjacent land reasonably necessary for convenient use of the buildings, which must be identified in the application, and all land and improvements used for educational or youth recreational activities if the facilities are generally available for use by the general public but may not exceed 15 acres for a church or 1 acre for a clergy residence after subtracting any area required by zoning, building codes, or subdivision requirements;

(d) property, not to exceed 80 acres, which must be legally described in the application for the exemption, used exclusively for educational purposes, including dormitories and food service buildings for the use of students in attendance and other structures necessary for the operation and maintenance of an educational institution that:

(i) is not operated for gain or profit;

(ii) has an attendance policy; and

(iii) has a definable curriculum with systematic instruction;

(e) property used exclusively for nonprofit health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3, is not exempt.

(f) property that is:

(i) owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;

(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement fund has been established as provided for in Title 35, chapter 20, part 3; and

(iii) not maintained and not operated for gain or profit;

(g) subject to subsection (2), property that is owned or property that is leased from a federal, state, or local governmental entity by institutions of purely public charity if the property is directly used for purely public charitable purposes;

(h) evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;

(i) public museums, art galleries, zoos, and observatories that are not operated for gain or profit;

(j) motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural land;

(k) the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil, gas, coal, or minerals;

(l) (i) property that is owned and used by a corporation or association organized and operated exclusively for the care of persons with developmental disabilities, persons with mental illness, or persons with physical or mental impairments that constitute or result in substantial impediments to employment and that is not operated for gain or profit; and

(ii) property that is owned and used by an organization owning and operating facilities that are for the care of the retired, aged, or chronically ill and that are not operated for gain or profit; and

(m) property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice for or competition in international sports and athletic events and that is not held or used for private or corporate gain or profit. For purposes of this subsection (1)(m), "nonprofit corporation" means an organization that is exempt from taxation under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit Corporation Act.

(2) (a) For the purposes of subsection (1)(b), the term "clergy" means, as recognized under the federal Internal Revenue Code:

(i) an ordained minister, priest, or rabbi;

(ii) a commissioned or licensed minister of a church or church denomination that ordains ministers if the person has the authority to perform substantially all the religious duties of the church or denomination;

(iii) a member of a religious order who has taken a vow of poverty; or

(iv) a Christian Science practitioner.

(b) For the purposes of subsection (1)(g):

(i) the term "institutions of purely public charity" includes any organization that meets the following requirements:

(A) The organization offers its charitable goods or services to persons without regard to race, religion, creed, or gender and qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.

(B) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by other similar types of fundraising activities.

(ii) agricultural property owned by a purely public charity is not exempt if the agricultural property is used by the charity to produce unrelated business taxable income as that term is defined in section 512 of the Internal Revenue Code, 26 U.S.C. 512. A public charity claiming an exemption for agricultural property shall file annually with the department a copy of its federal tax return reporting any unrelated business taxable income received by the charity during the tax year, together with a statement indicating whether the exempt property was used to generate any unrelated business taxable income.

(iii) up to 15 acres of property owned by a purely public charity is exempt at the time of its purchase even if the property must be improved before it can directly be used for its intended charitable purpose. If the property is not directly used for the charitable purpose within 8 years of receiving an exemption under this section or if the property is sold or transferred before it entered direct charitable use, the exemption is revoked and the property is taxable. In addition to taxes due for the first year that the property becomes taxable, the owner of the property shall pay an amount equal to the amount of the tax due that year times the number of years that the property was tax-exempt under this section. The amount due is a lien upon the property and when collected must be distributed by the treasurer to funds and accounts in the same ratio as property tax collected on the property is distributed. At the time the exemption is granted, the department shall file a notice with the clerk and recorder in the county in which the property is located. The notice must indicate that an exemption pursuant to this section has been granted. The notice must describe the penalty for default under this section and must specify that a default under this section will create a lien on the property by operation of law. The notice must be on a form prescribed by the department.

(iv) not more than 160 acres may be exempted by a purely public charity under any exemption originally applied for after December 31, 2004. An application for exemption under this section must contain a legal description of the property for which the exemption is requested.

(c) For the purposes of subsection (1)(i), the term "public museums, art galleries, zoos, and observatories" means governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property owned by the public museum, art gallery, zoo, or observatory that is reasonably necessary for use in connection with the public display or observatory use. Unless the property is leased for a profit to a governmental entity or nonprofit organization by an individual or for-profit organization, real and personal property owned by other persons is exempt if it is:

(i) actually used by the governmental entity or nonprofit organization as a part of its public display;

(ii) held for future display; or

(iii) used to house or store a public display."

Section 27. Section 15-8-111, MCA, is amended to read:

"15-8-111. Assessment -- market value standard -- exceptions. (1) All taxable property must be assessed at 100% of its market value except as otherwise provided.

(2) (a) Market value is the value at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

(b) If the department uses construction cost as one approximation of market value, the department shall fully consider reduction in value caused by depreciation, whether through physical depreciation, functional obsolescence, or economic obsolescence.

(c) If the department uses the capitalization-of-net-income method as one approximation of market value and sufficient, relevant information on comparable sales and construction cost exists, the department shall rely upon the two methods that provide a similar market value as the better indicators of market value.

(d) Except as provided in subsection (3), the market value of special mobile equipment and agricultural tools, implements, and machinery is the average wholesale value shown in national appraisal guides and manuals or the value before reconditioning and profit margin. The department shall prepare valuation schedules showing the average wholesale value when a national appraisal guide does not exist.

(3) The department may not adopt a lower or different standard of value from market value in making the official assessment and appraisal of the value of property, except:

(a) the wholesale value for agricultural implements and machinery is the average wholesale value category as shown in Guides 2000, Northwest Region Official Guide, published by the North American equipment dealers association, St. Louis, Missouri. If the guide or the average wholesale value category is unavailable, the department shall use a comparable publication or wholesale value category.

(b) for agricultural implements and machinery not listed in an official guide, the department shall prepare a supplemental manual in which the values reflect the same depreciation as those found in the official guide;

(d) as otherwise authorized in Titles 15 and 61.

(4) (a) Subject to subsection (4)(c), if sufficient, relevant information on comparable sales is available, the department shall use the comparable sales method to appraise residential condominium units. Because the undivided interest in common elements is included in the sales price of the condominium units, the department is not required to separately allocate the value of the common elements to the individual units being valued.

(b) Subject to subsection (4)(c), if sufficient, relevant information on income is made available to the department, the department shall use the capitalization-of-net-income method to appraise commercial condominium units. Because the undivided interest in common elements contributes directly to the income-producing capability of the individual units, the department is not required to separately allocate the value of the common elements to the individual units being valued.

(c) If sufficient, relevant information on comparable sales is not available for residential condominium units or if sufficient, relevant information on income is not made available for commercial condominium units, the department shall value condominiums using the construction-cost method. When using the construction-cost method, the department shall determine the value of the entire condominium project and allocate a percentage of the total value to each individual unit. The allocation is equal to the percentage of undivided interest in the common elements for the unit as expressed in the declaration made pursuant to 70-23-403, regardless of whether the percentage expressed in the declaration conforms to market value.

(5) For purposes of taxation, assessed value is the same as appraised value.

(6) The taxable value for all property is the percentage of market or assessed value established for each class of property.

(7) The assessed value of properties in 15-6-131 through 15-6-134, 15-6-143, and 15-6-145 is as follows:

(a) Properties in 15-6-131, under class one, are assessed at 100% of the annual net proceeds after deducting the expenses specified and allowed by 15-23-503 or, if applicable, as provided in 15-23-515, 15-23-516, 15-23-517, or 15-23-518.

(b) Properties in 15-6-132, under class two, are assessed at 100% of the annual gross proceeds.

(c) Properties in 15-6-133, under class three, are assessed at 100% of the productive capacity of the lands when valued for agricultural purposes. All lands that meet the qualifications of 15-7-202 are valued as agricultural lands for tax purposes.

(d) Properties in 15-6-134, under class four, are assessed at the applicable percentage of market value minus any portion of market value that is exempt from taxation under 15-6-222.

(e) Properties in 15-6-143, under class ten, are assessed at 100% of the forest productivity value of the land when valued as forest land.

(f) Railroad transportation properties in and noncentrally assessed railroad facilities owned or operated by the Montana railroad development authority that are taxable under 15-6-145 are assessed based on the valuation formula described in 15-23-205.

(8) Land and the improvements on the land are separately assessed when any of the following conditions occur:

(a) ownership of the improvements is different from ownership of the land;

(b) the taxpayer makes a written request; or

Section 28. Section 15-8-405, MCA, is amended to read:

"15-8-405. Street railroads, bridges, and ferries. Street railroads, bridges, and ferries owned by persons, or corporations, or the Montana railroad development authority must be listed and assessed in the county, town, or district where the property or any portion of the property is located. The track of the railroad and the bridge are personal property."

Section 29. Section 15-23-101, MCA, is amended to read:

"15-23-101. Properties centrally assessed. The department shall centrally assess each year:

(1) the railroad transportation property of railroads and railroad car companies and the property of the Montana railroad development authority operating in more than one county in the state or more than one state;

(2) property owned by a corporation or other person operating a single and continuous property operated in more than one county or more than one state, including but not limited to telegraph, telephone, microwave, and electric power or transmission lines; natural gas or oil pipelines; canals, ditches, flumes, or like properties and including, if congress passes legislation that allows the state to tax property owned by an agency created by congress to transmit or distribute electrical energy, property constructed, owned, or operated by a public agency created by congress to transmit or distribute electrical energy produced at privately owned generating facilities, not including rural electric cooperatives;

(3) all property of scheduled airlines;

(4) the net proceeds of mines, except bentonite mines;

(5) the gross proceeds of coal mines; and

(6) property described in subsections (1) and (2) that is subject to the provisions of Title 15, chapter 24, part 12."

Section 30. Section 15-23-203, MCA, is amended to read:

"15-23-203. Definitions relating to taxes. As used in this part, unless the context requires otherwise, the following definitions apply:

(1) (a) "Base value" means, except as provided in subsection (1)(b), the system value of railroad transportation property of a railroad or the railroad development authority in the preceding tax year.

(b) For tax year 1999, base value means the system value of railroad transportation property used to determine the railroad's or railroad development authority's Montana property taxes paid for the 1998 tax year.

(2) "Capitalization rate" means the capitalization rate reported by the surface transportation board, provided for in 49 U.S.C. 701, in its annual cost of capital report.

(3) "Change in earnings" means the value determined by dividing the average earnings for the 5 years immediately preceding the current tax year by the average earnings for the 5 years immediately preceding the previous tax year.

(4) "Change in the capitalization rate" means the value derived by dividing the current year capitalization rate by the preceding year capitalization rate.

(5) "Earnings" means income realized before deducting depreciation, interest expenses, lease expenses, and taxes.

(6) "Gross profit margin" means the ratio of earnings to operating revenue.

(7) "Leased property" means property that is subject to an agreement that transfers the use of the property to the lessee during the term of the lease and that is not capitalized on the lessee's balance sheet.

(8) "Operating revenue" means the amount of money that the railroad or railroad development authority is entitled to receive or that accrues to its benefit from services rendered in transporting property or persons by rail.

(9) "Railroad development authority" means the authority established pursuant to [section 3].

(9)(10) "System cost" means the total depreciated cost, including leased property within the state and outside the state of:

(a) all railroad transportation property; or

(b) railroad facilities owned by the railroad development authority, including leased property within the state and outside the state."

Section 31. Section 15-23-204, MCA, is amended to read:

"15-23-204. Assessment of railroads. The railroad development authority, the president, secretary, or managing agent, or such other any other corporate officer designated by as the department of revenue, may designate of any corporation and each person or association of persons owning or operating any a railroad in more than one county in this state or more than one state must shall on or before April 15 of each year furnish the department with a statement signed and sworn to by one of such officers an officer, by a member of the railroad development authority, or by the person or one of the persons forming such the association, showing in detail for the year ending December 31 immediately preceding:

(1) the whole number of miles of railroad in the state and, where the line is partly out of the state, the whole number of miles without outside the state and the whole number within the state, owned or operated by such the railroad development authority, corporation, person, or association;

(2) the value of the roadway, roadbed, and rails of the whole railroad outside the state and the value of the same roadway, roadbed, and rails of the whole railroad within the state;

(3) the width of the right-of-way;

(4) the number of each kind of all rolling stock used by such the railroad development authority, corporation, person, or association in operating the entire railroad, including the part without outside the state;

(5) the number, kind, and value of rolling stock owned and operated in the state;

(6) the number, kind, and value of rolling stock used in the state but not owned by the party making the returns;

(7) the number, kind, and value of rolling stock owned but used out of the state, either upon divisions of road operated by the party making the returns or by and upon other railroads;

(8) the whole number of sidetracks in each county, including the number of miles of track in each railroad yard in the state;

(9) the number of each kind of rolling stock used in operating the entire railroad, including the part without outside the state, which must include a detailed statement of the number and value thereof of all engines;, all passenger, mail, express, baggage, freight, and other cars;, or and all property owned or leased by such the railroad development authority, corporation, person, or association;

(10) the number of sleeping and dining cars not owned by such the railroad development authority, corporation, person, or association but used in operating the railroads of such the railroad development authority, corporation, person, or association in the state or on the line of the road without outside the state during each month of the year for which that the return is made;, also along with the number of miles each month that the cars have been run or operated within and without outside the state;

(11) a description of the road, giving the points of entrance into and the points of exit from each county, with a statement of the number of miles in each county. When a description of the road has once been given, no other annual description thereof of the road is necessary unless the road has been is changed. Whenever If the road or any portion of the road is advertised to be sold or is sold for state or county taxes, either state or county, no other description is necessary other than that given by, and the same is conclusive upon, the railroad development authority, person, corporation, or association giving the description pursuant to this subsection. No An assessment is not invalid on account of due to a misdescription of the railroad or the right-of-way for the same assessment. If such the statement is not furnished as above provided in this section, the department's assessment made by the department upon on the property of the railroad development authority, corporation, person, or association failing to furnish the statement is conclusive and final.

(12) the gross earnings of the entire road;

(13) the gross earnings of the road within the state and, if the railroad is let leased to other operators, how much was derived by the lessor as rental;

(14) the cost of operating the entire road, exclusive of sinking fund, expenses of land department, and money paid to the United States;

(15) net income for such the year and amount of dividend declared;

(16) capital stock authorized;

(17) capital stock paid in;

(18) funded debt;

(19) number of shares authorized;

(20) number of shares of stock issued;

(21) number, kind, and total number of miles traveled within the state by railroad cars owned by railroad car companies; and

(22) any other facts that the department may require."

Section 32. Section 15-23-205, MCA, is amended to read:

"15-23-205. Assessment -- how made. (1) The department shall assess the railroad transportation property of all railroads operated in more than one county or more than one state as provided in this section. Assessment must be made to the person or the railroad development authority owning, or leasing, or using the property and must be made upon the entire railroad within the state.

(2) The department shall determine the value of the railroad system for the current year by multiplying the base value of the railroad by the value change factor determined under subsection (3).

(3) (a) The value change factor is the sum of the income change factor, weighted by 50%, the gross profit margin change factor, weighted by 25%, and the property change factor, weighted by 25%.

(b) The income change factor is determined by dividing the change in earnings by the change in the capitalization rate.

(c) The gross profit margin change factor is determined by dividing the average gross profit margin for the 2 years immediately preceding the current tax year by the average gross profit margin for the 2 years immediately preceding the previous tax year.

(d) The property change factor is determined by dividing the system cost reported by the railroad for the tax year immediately preceding the current tax year by the system cost reported by the railroad for the tax year immediately preceding the previous tax year.

(4) The department shall apportion the system value of the railroad to Montana by multiplying the system value of the railroad determined under subsection (2) by the average of the allocation factor for the 2 years immediately preceding the current tax year. The allocation factor is determined under subsection (5).

(5) The allocation factor used to apportion the system value of the railroad to Montana is the average of the sum of:

(a) the ratio of track miles in the state to total system track miles;

(b) the ratio of revenue ton miles in the state to total system revenue ton miles;

(c) the ratio of gross investment in road and equipment in the state to total system gross investment in road and equipment;

(d) the ratio of operating revenue reported in the state to total system operating revenue; and

(e) the ratio of railroad car and locomotive miles in the state to total system railroad car and locomotive miles.

(6) The department shall take into account extenuating circumstances to adjust the assessed value of railroad property in the state. Occurrences that may result in an adjustment to the assessed value of railroad property include but are not limited to:

(a) extraordinary, unusual, or infrequent events that are material in nature and of a character different from the typical or customary business operations, that are not expected to recur frequently, and that are not normally considered in the evaluation of the operating results of a business; and

(b) material increases or decreases in income and property as a result of events such as writeoffs, writedowns, and changes in accounting methods or practices.

(7) In determining the taxable value of railroad property, the department shall determine the percentage rate "R" provided for in 15-6-145 in order to achieve compliance with the requirements of the federal Railroad Revitalization and Regulatory Reform Act of 1976, as amended."

Section 33. Section 15-23-211, MCA, is amended to read:

"15-23-211. Definitions. As used in 15-23-211 through 15-23-216, unless the context requires otherwise, the following definitions apply:

(1) "Average levy" means the average statewide rate of taxation on commercial and industrial property.

(2) "Person" includes an individual, firm, association, company, partnership, corporation, joint-stock company, agency, syndicate, or cooperative.

(3) "Private railroad cars" means all railroad cars that:

(a) are not owned by the railroad development authority or a railroad company operating in this state;

(b) are used for transporting persons or freight; and

(4) "Railroad car company" means any person, other than a railroad company or the railroad development authority, engaged in operating, leasing, or furnishing private railroad cars, whether or not owned by that person or the authority, for the transportation of persons or freight over railroad lines located wholly or partially within this state."

Section 34. Section 15-24-1203, MCA, is amended to read:

"15-24-1203. Privilege tax on industrial, trade, or other business use of tax-exempt property -- exceptions. (1) There is imposed and must be collected a tax upon the possession or other beneficial use for industrial, trade, or other business purposes enjoyed by any private individual, association, or corporation of any property, real or personal, that for any reason is exempt from taxation. The tax is imposed upon the possession or other beneficial use of:

(a) railroad right-of-way or track owned by the Montana railroad development authority; or

(b) an electric transmission line and associated facilities, except that lines and facilities of a design capacity of less than 500 kilovolts are not subject to the tax.

(2) The tax may not be imposed upon:

(a) the possession or other beneficial use of railroad right-of-way or track owned by the United States or acquired by the state pursuant to Title 60, chapter 11, part 1, as long as the state or the United States retains ownership and the right-of-way or track is used exclusively for rail transportation;

(b) the beneficial use by a person of property held by a port authority, created under Title 7, chapter 14, part 11, or by a port authority owned by the United States or an agency of the United States unless the port authority provides for the exclusive use of the property by the person;

(c) the possession or other beneficial use of public lands occupied under the terms of recreational, mineral, timber, or grazing leases or permits issued by the United States or the state of Montana or upon any easement unless the lease, permit, or easement entitles the lessee or permittee to exclusive possession of the premises to which the lease, permit, or easement relates; or

(d) the possession or other beneficial use of buildings owned by public entities and located upon public airports. However, privately owned buildings located on public airport property are subject to taxation."

Section 35. Section 18-2-101, MCA, is amended to read:

"18-2-101. Definitions of building, costs, and construction. In part 1 of this chapter, with the exception of 18-2-104, 18-2-107, 18-2-113, 18-2-114, 18-2-122, and 18-2-123:

(1) "building" includes a building, facility, or structure:

(a) constructed or purchased wholly or in part with state money;

(b) at a state institution;

(d) constructed for the use or benefit of the state with federal or private money as provided in 18-2-102(2)(d);

(2) "building" does not include a building, facility, or structure:

(a) owned or to be owned by a county, city, town, school district, or special improvement district;

(b) used as a component part of an environmental remediation or abandoned mine land reclamation project, a highway, or a water conservation project, unless the building will require a continuing state general fund financial obligation after the environmental remediation or abandoned mine land reclamation project is completed; or

(d) constructed, owned, or operated by the Montana railroad development authority provided for in [section 3];

(3) "construction" includes the construction, alteration, repair, maintenance, and remodeling of a building and the equipping and furnishing of a building during construction, alteration, repair, maintenance, and remodeling;

(4) "costs" means those expenses defined in 17-5-801."

Section 36. Section 18-4-313, MCA, is amended to read:

"18-4-313. Contracts -- terms, extensions, and time limits. (1) Except as provided in subsection (2) or unless otherwise provided by law, a contract, lease, or rental agreement for supplies or services may not be made for a period of more than 7 years. A contract, lease, or rental agreement may be extended or renewed if the terms of the extension or renewal, if any, are included in the solicitation, if funds are available for the first fiscal period at the time of the agreement, and if the total contract period, including any extension or renewal, does not exceed 7 years. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of funds for the fiscal periods.

(2) The contract term limit specified in subsection (1) does not apply to:

(a) a contract for hardware, software, or other information technology resources, which may be made for a period not to exceed 10 years;

(b) a department of revenue liquor store contract governed by the term specified in 16-2-101;

(d) the department of administration state employee group benefit plans contracts governed by the term specified in 2-18-811, including group benefit plan contracts made in partnership with the Montana university system group benefit plan; and

(e) a Montana railroad development authority contract governed by the provisions of [sections 1 through 20].

(3) Prior to the issuance, extension, or renewal of a contract, it must be determined that:

(a) estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(b) the contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement.

(4) If funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract must be canceled."

Section 37. Section 27-2-207, MCA, is amended to read:

"27-2-207. Injuries involving property. Within 2 years, a person shall take action is the period prescribed for the commencement of an action for the:

(1) injury to or waste or trespass on real or personal property;

(2) taking, detaining, or injuring of any goods or chattels, including actions for the specific recovery of personal property; or

(3) killing or injuring of stock by the Montana railroad development authority provided for in [section 3] or a railroad corporation or company."

Section 38. Section 37-60-105, MCA, is amended to read:

"37-60-105. Exemptions. (1) Except as provided in subsection (2), this chapter does not apply to:

(a) any one person employed singly and exclusively by any one employer in connection with the affairs of that employer only and when there exists an employer-employee relationship and the employee is unarmed, does not wear a uniform, and is guarding inside a structure that at the time is not open to the public;

(b) a person:

(i) employed singly and exclusively by a retail merchant;

(ii) performing at least some work for the retail merchant as a private security guard; and

(iii) who has received training as a private security guard from the employer or at the employer's direction;

(c) an officer or employee of the United States, of this state, or of a political subdivision of the United States or this state while the officer or employee is engaged in the performance of official duties;

(d) a person engaged exclusively in the business of obtaining and furnishing information as to the financial rating of persons or as to the personal habits and financial responsibility of applicants for insurance, indemnity bonds, or commercial credit;

(e) an attorney at law while performing duties as an attorney at law;

(f) a legal intern, paralegal, or legal assistant employed by one or more lawyers, law offices, governmental agencies, or other entities; or

(g) a law student who is serving a legal internship;

(h) a collection agency or finance company licensed to do business under the laws of this state, or an employee of a collection agency or finance company licensed in this state while acting within the scope of employment, while making an investigation incidental to the business of the agency or company, including an investigation of the location of a debtor or the debtor's property when the contract with an assignor creditor is for the collection of claims owed or due or asserted to be owed or due or the equivalent;

(i) special agents employed by the Montana railroad development authority provided for in [section 3] or a railroad companies, provided that the company if the authority or the railroad company notifies the board that its agents are operating in the state;

(j) insurers and insurance producers and insurance brokers licensed by the state while performing duties in connection with insurance transacted by them;

(k) an insurance adjuster, as defined in 37-60-101; or

(l) an internal investigator or auditor while making an investigation incidental to the business of the agency or company by which the investigator or auditor is singularly and regularly employed.

(2) (a) Except as provided in subsection (2)(b), persons listed as exempt in subsection (1) are not exempt for the purposes of acting as registered process servers.

(b) Subsection (2)(a) does not apply to attorneys or persons who make 10 or fewer services of process in a calendar year, as provided in 25-1-1101."

Section 39. Section 39-2-703, MCA, is amended to read:

"39-2-703. Liability of railway corporation and Montana railroad development authority for negligence of fellow servants. (1) Every The Montana railroad development authority or a person or corporation operating a railway or railroad in this state is liable for all damages sustained by any employee of such the authority, person, or corporation in consequence of the neglect of any other employee thereof of the authority, person, or corporation or by the mismanagement of any other employee thereof and in consequence of the willful wrongs, whether of commission or omission, of any other employee thereof of the authority, person, or corporation when such the neglect, mismanagement, or wrongs are in any manner connected with the use and operation of any the railway or railroad on or about which he employing the employee is employed. No A contract which that restricts such the liability is not legal or binding.

(2) In case of If the death of any such an employee in consequence of described in subsection (1) results from any injury or damage so sustained, the right of action provided by subsection (1) shall survive survives and may be prosecuted and maintained by his the deceased employee's heirs or personal representatives.

(3) Every The Montana railroad development authority or a railway corporation doing business in this state, including electric railway corporations, is liable for damages sustained by an employee thereof within this state, subject to the provisions of 27-1-702, when such the damages are caused by the negligence of any train dispatcher, telegraph operator, superintendent, master mechanic, yardmaster, conductor, engineer, motorman motor operator, or any other employee who has superintendence of any stationary or hand signal.

(4) No A contract of insurance, relief, benefit, or indemnity in case of injury or death or any other contract entered into, either before or after the injury, between the person injured and any of the employers named in subsection (3) is not a bar or defense to any cause of action brought under the provisions of this section, except as otherwise provided in the Workers' Compensation Act."

Section 40. Section 44-4-902, MCA, is amended to read:

"44-4-902. Application for appointment. A class Class I railroad corporation, as defined by the interstate commerce commission in part 1201 of 49 CFR, and, if it is operating a Class I railroad, the Montana railroad development authority provided for in [section 3] desiring the appointment of an officer or employee as a special peace officer shall apply to the attorney general. The application must state the name, age, and place of residence of the person applying for appointment. The applicant must have at least 3 years of experience as a class Class I railroad peace officer or have completed a training course at an approved law enforcement academy, or meet the qualifications described in 7-32-303 and adopted pursuant to Title 44, chapter 4, part 4. The application must be signed by the applicant and a managing officer of the railroad corporation or a member of the Montana railroad development authority. The managing officer or member signing the application shall at the same time submit an affidavit to the effect that the officer or member is acquainted with the person seeking appointment, that the officer or member believes the applicant to be of good moral character, and that the applicant is of good moral character and has experience such showing that the applicant can be safely entrusted with the powers and duties of a special peace officer."

Section 41. Section 44-4-903, MCA, is amended to read:

"44-4-903. Limitations on special peace officer. A person appointed and sworn as a special peace officer shall when on duty have has the power and authority of a peace officer but may exercise such the power and authority only in the protection of the property of the class Class I railroad corporation or the Montana railroad development authority employing him the person."

Section 42. Section 44-4-904, MCA, is amended to read:

"44-4-904. Responsibility of corporation. The class A Class I railroad corporation or the Montana railroad development authority employing a special peace officer is solely responsible for the compensation of the special peace officer and is civilly liable for any action of the officer arising out of his the officer's actions as a special peace officer. The class Class I railroad corporation or the Montana railroad development authority employing a special peace officer shall hold the state, its subdivisions, other than the authority, and the officers and employees thereof of the state and its subdivisions harmless and indemnify them from any claim or liability, including costs and attorney fees, arising out of any action of a special peace officer or the certification of the special peace officer by the state."

Section 43. Section 60-11-111, MCA, is amended to read:

"60-11-111. Identification and acquisition of railroad rights-of-way -- identification of railroad lines for rehabilitation. (1) Identification of those railroad lines proposed for abandonment in the state of Montana that may have potential for local transportation service or future use as transportation corridors is necessary to determine the feasibility of acquisition by the state and to allow the state to negotiate for acquisition of those railroad lines or easements in the lines.

(2) Identification of those railroad branch lines in the state that may have potential for local rail freight transportation service is necessary to determine the feasibility of providing loans or grants to the owner or operator of the railroad line as provided in 60-11-120. The Montana railroad development authority provided for in [section 3] is not eligible for loans or grants provided for in 60-11-120.

(3) The department of transportation, in consultation with the Montana railroad development authority:

(a) shall identify railroad rights-of-way in this state that may be abandoned and research the feasibility of acquisition by the state of Montana of those rights-of-way that may be abandoned;

(b) shall identify, under the state rail planning program, railroad branch lines that should be preserved for continued operation;

(c) may negotiate for and acquire easements in the rights-of-way or the railroad rights-of-way and attendant facilities identified pursuant to subsection (3)(a) and:

(i) hold all acquired lands in trust for transportation purposes; and

(ii) upon creation of an appropriate local authority, other than an agency of state government, shall transfer to the an appropriately created local authority or the Montana railroad development authority all attendant facilities and all rights and responsibility to operate and maintain transportation services over the lands acquired in subsection (3)(c);

(d) shall cooperate with and assist persons representing recreational, transportation, and utility interests and other interested persons, including adjacent landowners, in acquiring ownership or easement of abandoned railbeds; and

(e) shall establish procedures, including the use of federal funds received for rail freight assistance programs under former 49 U.S.C. 1654, for providing loans and grants under 60-11-120.

(4) Abandoned rights-of-way acquired and held in trust pursuant to subsection (3)(c)(i) must be administered by the department of natural resources and conservation, as prescribed in Title 77, until the land is needed for transportation purposes."

Section 44. Section 60-11-119, MCA, is amended to read:

"60-11-119. Authority to issue revenue bonds. (1) The board may issue and sell essential freight rail revenue bonds to make loans to finance the cost of projects, to pay the costs of issuing the bonds, and to provide for reserves, upon recommendation of the department. The bonds must be issued under Title 17, chapter 5, part 15.

(2) Projects proposed by the Montana railroad development authority provided for in [section 3] are not eligible for essential freight rail revenue bonds."

Section 45. Section 60-11-120, MCA, is amended to read:

"60-11-120. Railroad and intermodal transportation facility loans -- authorization -- eligibility. (1) Money appropriated by the legislature for the purposes provided for in this section and pursuant to 60-11-115 must be used by the department, in consultation with the Montana railroad development authority, after deducting the necessary costs and expenses for administering this section, to provide loans for:

(a) the preservation and continued operation of railroad branch lines identified in 60-11-111; and

(b) the development, improvement, construction, purchase, maintenance, or rehabilitation of:

(i) intermodal transportation facilities except as prohibited by federal law;

(ii) branch lines or short lines;

(iii) sidings;

(iv) light density railroad lines; and

(v) rolling stock, including rail cars.

(2) An owner or operator of a railroad identified in 60-11-111(2) is eligible for a loan under this section if the owner or operator:

(a) undertakes to repair, improve, or replace rail facilities to allow the continued operation of the railroad for local rail transportation service; and

(b) derives revenue from the continued operation of the railroad.

(3) A port authority created under Title 7, chapter 14, part 11, is eligible for a loan under this section if:

(a) the port authority is included in the state transportation planning process as described in 23 U.S.C. 135; and

(b) the purpose for which a loan is sought is integrally related to the railroad transportation system of the state.

(4) Applications for a loan must include:

(a) a financial statement;

(b) evidence of matching funds required pursuant to subsection (5);

(d) upon request of the department, an independent feasibility study.

(5) Pursuant to requirements of former 49 U.S.C. 1654, which is providing a portion of the funds under 60-11-115, rehabilitation projects must be matched with 30% in other funds and new construction projects must be matched with 50% in other funds. The transportation commission, provided for in 2-15-2502, in consultation with the Montana railroad development authority, shall establish matching fund requirements for other project categories.

(6) The transportation commission, in consultation with the Montana railroad development authority, is responsible for determining funding recipients. Recipients must be determined using the guidelines provided in 60-2-110.

(7) The department shall administer the Montana Essential Freight Rail Act with input from the department of commerce, the department of agriculture, and the governor's office.

(8) Funding recipients shall pay the standard prevailing wage on any construction projects or subcontracted construction projects conducted with funds received under this section."

Section 46. Section 60-11-123, MCA, is amended to read:

"60-11-123. Disposition of revenue from state-owned railroads -- use of money. (1) Unless otherwise required by law, revenue from the lease or sale of assets of or revenue paid to the state of Montana by an operator of a railroad owned by the state of Montana, other than a railroad owned by the Montana railroad development authority as provided in [sections 1 through 20], must be deposited in the state general fund.

(2) The department of transportation is authorized to administer, as provided in 60-11-120 through 60-11-123, to administer funding available to provide for improvement of railroad tracks and associated facilities of any state-owned railroad in Montana, other than a railroad owned by the Montana railroad development authority, and to provide loans and grants to railroad lines and intermodal transportation facilities as provided in 60-11-120."

Section 47. Section 69-1-110, MCA, is amended to read:

"69-1-110. Conduct of commission business. (1) The commission shall hold sessions at times and places in this state as may be expedient. A majority of the commission constitutes a quorum for the transaction of business.

(2) The members of the commission may administer oaths and affirmations.

(3) The commission may adopt rules to govern its proceedings and to regulate the mode and manner of all investigations and hearings concerning railroad companies, the Montana railroad development authority provided for in [section 3], and other parties before it in the establishment of rates, orders, charges, and other acts required of it under the law."

Section 48. Section 69-1-112, MCA, is amended to read:

"69-1-112. Prohibition on acceptance of favors from railroads. (1) A public service commissioner or the secretary may not, directly or indirectly, solicit or request from or recommend to any railroad corporation, the Montana railroad development authority, or any officer, attorney, or agent thereof of a railroad corporation or the Montana railroad development authority the appointment of any person to any place or position,; nor shall and any railroad corporation or the Montana railroad development authority or its attorney or agent may not offer any place, appointment, or position or other consideration to such commissioners or to any clerks or employees of the commission;. neither shall the commissioners or Commissioners and their secretary, clerks, agents, employees, or experts may not accept, receive, or request any pass from any railroad in this state, for themselves or for any other person, except as herein otherwise provided in 69-1-111, or any present, gift, or gratuity of any kind from any railroad corporation or the Montana railroad development authority.

(2) The A request or acceptance by them, except as herein specified in 69-1-111, of any such place or position, pass, present, gift, or other gratuity shall work a referred to in subsection (1) results in forfeiture of the office of the commissioner, secretary, clerk, agent, employee, or expert requesting or accepting the same. Any A person violating any of the provisions of this section is guilty of a misdemeanor."

Section 49. Section 69-11-108, MCA, is amended to read:

"69-11-108. Prohibition on confiscation of fuel. (1) It shall be is unlawful for any the Montana railroad development authority or a person, railway railroad company, or common carrier to confiscate or take for his the person's or its own use or for the use of another any coal or other fuel in transit except when such the coal or other fuel is necessary for the preservation of life or property or is required for the moving of trains of such the common carrier. In a suit under this section to recover the penalty and damages, the burden of proof shall be is on the Montana railroad development authority, person, railroad company, or common carrier confiscating the coal or other fuel to show that such the coal or other fuel was necessary for the preservation of life or property or was required for the moving of trains of such the common carrier.

(2) Any The Montana railroad development authority or any person, railroad company, or common carrier who shall confiscate that confiscates or take takes any coal or fuel, either for his the person's or its own use or for the use of another, shall be is liable to the consignee or owner of such the coal or fuel in double the value of such the coal or fuel at the point of shipment and such in addition to other damages as that may be caused by the confiscation of such the coal or fuel. Such The liability shall be is exclusive of and in addition to any and all charges for the transportation of such the coal or fuel, which and the charges for the transportation shall must be paid by the party confiscating such the coal or fuel. In every case wherein in which coal or other fuel is taken or used by the Montana railroad development authority or any such person, railroad company, or common carrier, it shall be is the duty of such the Montana railroad development authority or the person, railroad company, or common carrier to notify the consignee by telegram or letter, immediately, of the taking of such the coal or fuel and to pay and compensate him therefor the consignee within 30 days from the time of the taking.

(3) Any The Montana railroad development authority or any person, corporation, or common carrier who shall violate that violates the provisions of this section shall be is guilty of a misdemeanor and upon conviction thereof shall be fined not less than $50 or more than $200."

Section 50. Section 69-14-101, MCA, is amended to read:

"69-14-101. Definitions. Unless the context requires otherwise, in this chapter the following definitions apply:

(1) "Paralleling" means the situation where the main tracks of parallel lines of railroad or railway are not more than 2,000 feet apart when measured from center to center.

(2) "Railroad" means the Montana railroad development authority provided for in [section 3] or a corporation, company, or individual owning or operating a railroad in whole or in part in this state. The term also includes express companies, sleeping-car companies, and a rail authority established under Title 7, chapter 14, part 16.

(3) "Transportation" includes instrumentalities of shipment or carriage."

Section 51. Section 69-14-201, MCA, is amended to read:

"69-14-201. General duties of railroad corporation and Montana railroad development authority. Every A railroad corporation and the railroad development authority must shall:

(1) start and run its cars for the transportation of persons and property at such regular times as it shall fix by provided by public notice;

(2) furnish sufficient accommodations railroad cars for the transportation of all such passengers and property as, that within a reasonable preceding time previous thereto, offer or are offered for have been offered for transportation at the place of starting, at the junction of other railroads, and at sidings or stopping places established for receiving and discharging way passengers and freight; and

(3) take, transport, and discharge such passengers and property at, from, and to such places on the due upon payment of tolls, freight, or fare therefor."

Section 52. Section 69-14-202, MCA, is amended to read:

"69-14-202. Duty to furnish shipping and passenger facilities. (1) Every Except as provided in subsection (2), the Montana railroad development authority or a person, corporation, or association operating a railroad in the state on January 1, 1987, or a its successor thereto, shall maintain and staff facilities for shipment and delivery of freight and shall ship and deliver freight and accommodate passengers in such facilities as were similar to those maintained and staffed on January 1, 1987.

(2) However, if If the Montana railroad development authority or a person, corporation, or association operating a railroad demonstrates to the public service commission, following an opportunity for a public hearing in the community where the facility is situated located, that a facility is not required for public convenience and necessity, the commission shall authorize the closure, consolidation, or centralization of the facility. In determining public convenience and necessity, the commission shall, prior to making its decision, weigh and balance the facts and testimony presented at the hearing, including:

(a) the facts and testimony presented by the general public,;

(b) the existing burdens on the railroad,;

(d) any other factors the commission considers significant to provide adequate rail service."

Section 53. Section 69-14-205, MCA, is amended to read:

"69-14-205. Accommodations for and care to be taken of passengers. (1) Every The Montana railroad development authority or a railroad corporation must shall furnish on the inside of its passenger cars sufficient room and accommodations for all passengers to whom tickets are sold who purchase tickets for any one trip and for all persons presenting tickets entitling them to travel thereon in the passenger cars.

(2) When fare is taken for transporting passengers on any baggage, wood, gravel, or freight car, the same care must be taken and the same responsibility is assumed by the corporation or the Montana railroad development authority as for passengers on passenger cars."

Section 54. Section 69-14-206, MCA, is amended to read:

"69-14-206. Rules for fare and conduct of passengers. (1) Every The Montana railroad development authority or a railroad corporation must have printed shall print and conspicuously posted post on the inside of its passenger cars its rules regarding fare and conduct of its passengers.

(2) In case any If a passenger is injured on or from the platform of a car or on any baggage, wood, gravel, or freight car, in violation of such the printed regulations or in violation of positive verbal instructions or injunctions given to such the passenger in person by any officer of the train, the Montana railroad development authority or corporation is not responsible for damages for such the injuries unless the authority or corporation failed to comply with the provisions of 69-14-205."

Section 55. Section 69-14-208, MCA, is amended to read:

"69-14-208. Officers and employees of corporation or authority to wear badges. (1) Every A conductor, baggage master, engineer, brakeman brake tender, or other employee of the Montana railroad development authority or any railroad corporation who is employed on a passenger train or at stations for passengers must shall wear, upon his the person's hat or cap or in some conspicuous place on the breast of his the person's coat, a badge indicating his the person's office or station and the initial letters of the name of the authority or corporation by which he the person is employed.

(2) No A collector or conductor without such a badge is not authorized to demand or to receive from any passenger any fare, toll, or ticket or exercise any of the powers of his the person's office or station, and no any other officer or employee without such a badge has any does not have authority to meddle or interfere with any passenger or property."

Section 56. Section 69-14-209, MCA, is amended to read:

"69-14-209. Issuance of passenger tickets. (1) Every The Montana railroad development authority or a railroad corporation must shall, upon provide and, on being tendered the regular rates of fare, furnish a ticket to every each person desiring a passage on its passenger cars, which entitles the purchaser to a ride and to the accommodations provided on its cars from the depot or station where the same ticket is purchased to any other depot or station on the line of its road. Every such A ticket entitles the holder thereof to ride on its the passenger cars to the station or depot of destination or any intermediate station and from any intermediate station to the depot of destination designated in the ticket at any time within 6 months thereafter after purchase.

(2) Any The Montana railroad development authority or a corporation failing that fails to provide and furnish tickets or refusing refuses the passage which the same calls for when sold to the purchaser must shall pay $200 to the person who is refused passage the sum of $200."

Section 57. Section 69-14-210, MCA, is amended to read:

"69-14-210. Baggage checks. A check must be affixed to every each package or parcel of baggage when taken for transportation by any an agent or employee of such a railroad corporation or the Montana railroad development authority, and a duplicate thereof check must be given to the passenger or person delivering the same package or parcel in his on the passenger's behalf. If such the check is refused on demand, the railroad corporation or the Montana railroad development authority must shall pay to such the passenger the sum of $20, to be recovered in an action for damages, and no a fare or toll must may not be collected or received from such the passenger., and if such If the passenger has paid his the fare, the same fare must be returned by the conductor in charge of the train. On producing the check, if his the baggage is not delivered to him the person by the agent or employee of the railroad corporation or the Montana railroad development authority, he the person may recover the value thereof of the baggage from the corporation or the authority."

Section 58. Section 69-14-214, MCA, is amended to read:

"69-14-214. Penalty for failure to redeem ticket. Any An authorized ticket-selling agent who represents the Montana railroad development authority, a railroad company, or a steamboat company which shall by any of its and who unreasonably refuses to redeem any coupon of a ticket or any ticket as required by 69-14-213 authorized ticket-selling agents within this state unreasonably refuse to redeem any coupon of a ticket or any ticket as required by 69-14-213 shall pay to the state a fine not exceeding $500 for each offense."

Section 59. Section 69-14-232, MCA, is amended to read:

"69-14-232. Size and equipment of caboose. (1) Occupied cabooses must be at least 24 feet in length, exclusive of platforms, and must be provided with have a door in each end and with cupolas or bay windows, platforms, guardrails, grabirons, and steps for the safety of persons in alighting or getting on cabooses. Cabooses must be of metal frame construction and must be sufficiently insulated to eliminate track and other related noise above 85 decibels in any octave in the speech range. Other requirements for cabooses are as follows:

(a) The trucks shall must provide riding qualities at least equal to those of freight type freight-type trucks modified with elliptical or additional coil springs or other means of equal or greater efficiency and must have at least two four-wheel trucks with standard steel wheels or their equivalent. Draft gears must have a minimum travel of 2 1/2 inches and a minimum capacity of 18,000 foot-pounds and must comply with Association the association of American Railroads Standard railroads standard M-901 or its equivalent.

(b) Electric lighting of at least 40 foot-candles must be provided for direct illumination of the caboose desk, reading areas, and lavatory facilities.

(c) A spotlight must be provided located on the rear of the caboose with and provide sufficient candlepower to illuminate the track for a distance of at least 300 feet to the rear of the caboose during the hours of darkness.

(d) The caboose marker or markers must be either reflectorized or capable of illumination when required.

(e) Only glass of the safety-glass type may be used in partitions, doors, windows, or wind deflectors.

(f) All seats and seat backs must conform to the safety standards designated by the United States department of transportation in its Federal Motor Vehicle Safety Standards, Motor Vehicle Safety Standard federal motor vehicle safety standards motor vehicle safety standard No. 201. All edges and protrusions on seats and seat backs must be rounded to prevent injury to employees.

(2) Any The Montana railroad development authority or a person, corporation, or company, operating any that operates a railroad or railway in this state, violating and that violates any of the provisions of this section and 69-14-233 is guilty of a misdemeanor and upon conviction shall be fined not less than $500 or more than $1,000 for each offense."

Section 60. Section 69-14-236, MCA, is amended to read:

"69-14-236. Headlights and speedometers for locomotives. (1) A The Montana railroad development authority or a person, corporation, or company operating a railroad or railway in this state must shall equip all locomotive engines used in the transportation of trains over the railroad or railway with:

(a) electric headlights of at least 1,500 candlepower, measured without the aid of a reflector; and

(b) a speedometer that is maintained in good working order at all times and that is located in the lead or controlling unit.

(2) A locomotive used exclusively in yard service is not required to be equipped with a speedometer.

(3) If the speedometer fails en route, it will be deemed as being is considered in good working order until it reaches the next terminal where it will must be exchanged with an engine with a working speedometer if one is available.

(4) Any The Montana railroad development authority or a person, corporation, or company, operating any that is operating a railroad or railway in this state, violating and that violates the provisions of this section shall be deemed is guilty of a misdemeanor and upon conviction thereof shall be fined not less than $100 or more than $1,000 for each offense."

Section 61. Section 69-14-237, MCA, is amended to read:

"69-14-237. Locomotive engines and electric motors to be marked with identifying numbers. (1) It shall be is the duty of every the Montana railroad development authority or a person, corporation, or company operating a railroad or railway in this state to equip all locomotive engines and electric motors used in hauling trains over said the railroad or railway with suitable numbers, which numbers shall must be displayed at the front and both sides of the headlight on said the locomotive engine or electric motor and to be such size as to be of a size easily read from a passing or meeting train.

(2) When a complaint is made to the commission that any the Montana railroad development authority or a person, corporation, or company operating a railroad or railway in this state has failed to comply with the provisions of this section, such the commission shall order a hearing and shall serve a notice on such the Montana railroad development authority, person, corporation, or company at least 15 days before the date set for such the hearing. The notice may be served upon any agent of such the Montana railroad development authority, person, corporation, or company. At the conclusion of such the hearing, the commission may make such issue an order in the premises as is deemed considered necessary and may prescribe the time within which that all such locomotive engines shall must be equipped with such the numbers.

(3) Any The Montana railroad development authority or a person, corporation, or company operating a railroad or railway in this state who violates any of the provisions of this section shall be deemed is guilty of a misdemeanor and upon conviction thereof shall be fined not less than $50 or more than $100 for each offense."

Section 62. Section 69-14-238, MCA, is amended to read:

"69-14-238. Equipment for track motor cars. (1) Every The Montana railroad development authority or a person, firm, or corporation operating or controlling any a railroad running through or within this state as a common carrier shall:

(a) equip each of its track motor cars with:

(i) a windshield of safety glass and a device for wiping rain, snow, and other moisture therefrom; such from the windshield, and the device shall must be maintained in good order and so must be constructed as to be controlled by the operator of said the track motor car; and

(ii) upon request of the foreman lead supervisor, a canopy or top of such construction as to constructed so that it adequately protect protects the occupants thereof of the track motor car from the rays of the sun, rain, snow, or other inclement weather;

(b) equip each of its track motor cars used during the period from 30 minutes before sunset to 30 minutes after sunrise with:

(i) an electric headlight of such construction constructed and with sufficient candlepower to be plainly visible at a distance of not less than 300 feet in advance of such the track motor car, any track obstruction, landmark, warning sign, or grade crossing; and

(ii) a red rear electric light of sufficient candlepower to be plainly visible at a distance of not less than 300 feet.

(2) Every Each violation of this section is a misdemeanor."

Section 63. Section 69-14-239, MCA, is amended to read:

"69-14-239. Operation of trains at grade crossings. (1) Except as provided in subsection (2), no the Montana railroad development authority or a railway company operating trains within this state shall may not permit any locomotives or cars to cross the tracks of any other railroad, at grade, without coming to a full stop immediately before crossing.

(2) (a) If any Except as provided in subsection (2)(b), if the Montana railroad development authority or a railway company or companies using one or more tracks crossing each other or connecting in any way at a common grade shall, by an interlocking plant, signal station, or any other works or fixtures, to be erected by them or either of them, render renders it safe to pass over said the crossings without stopping and if such the plant, works, or fixtures shall have been first are approved by the county commissioners of the county wherein such where the works are to be constructed and used and the plans of such for the works and fixtures for such the crossing, designating the place of such the crossing, shall have been are filed with such the commissioners, then and in that case the foregoing provisions of this section requiring the stopping of trains at such crossing shall subsection (1) does not apply to said the Montana railroad development authority or the company or companies or either of them.

(b) If said the county commissioners shall disapprove any such the plans so filed with them or fail to approve the same plans within 20 days after the filing thereof with them, such the Montana railroad development authority or railway company or companies or either of them may apply by written petition to the district court in the county where such the crossing is situated located to the district court in and for said county or to a judge thereof in vacation, by petition in writing setting forth the object of such application to make a ruling on the plan. Said court or judge Upon receipt of the petition, the court shall thereupon appoint a time and place for the hearing of said petition set a hearing, and a copy of the order appointing such time and place, together with a copy of said setting the hearing and a copy of the petition, shall must be served upon on said the county commissioners at least 10 days before the day appointed for said hearing. Said district The court or a judge thereof in vacation shall have full power upon the hearing of said petition to grant the prayer thereof or to make such other order thereon as may be proper in the premises, and the foregoing provisions of this section requiring the stoppage of trains at crossings shall not apply to said railway companies or either of them if said district court shall by its order upon said petition grant the prayer thereof or otherwise and to any extent approve the construction and use of the interlocking plant or other structures therein referred to may grant, condition, or deny the plans."

Section 64. Section 69-14-240, MCA, is amended to read:

"69-14-240. Duty to construct drains and ditches. (1) It shall be the duty of every Within 3 months of the completion of a railroad or branch through a county, the Montana railroad development authority or a corporation, company, or person owning or operating any a railroad or branch thereof in this state and of any corporation, company, or person constructing any a railroad in this state, within 3 months after the completion of the same through any county in this state, to cause to be constructed and maintained shall construct and maintain suitable ditches and drains along each side of the roadbed of such the road or to construct culverts or openings through such the roadbed to connect with ditches, drains, or watercourses, so as to afford sufficient outlet to drain and carry off the water along such the railroad whenever the draining drainage of such the water has been is obstructed or rendered necessary by because of the construction of such the railroad. None of the The drains or ditches herein referred to shall be required to be constructed by any of the persons or corporations herein named or described are not required except when required needed to remove and drain off water accumulated upon property adjacent to or upon the right-of-way whose where the natural channel or outlet has been destroyed or impaired by the embankment of such railway so constructed as aforesaid the railroad.

(2) In case such If the Montana railroad development authority, corporation, company, or person shall fail fails or neglect neglects to construct and maintain such the ditches or drains as are herein required within the time limited in this section pursuant to subsection (1), the board of county commissioners of any county through which such where the railroad has been or may be constructed and located and in which the draining herein required has been neglected is hereby authorized and required, where the ditches or drains have not been constructed or maintained shall, upon the petition of 20 landowners of such the county along the line of and contiguous to such the railroad, to cause such require the ditches or drains, as are herein required, to be constructed and maintained. Said If the Montana railroad development authority, corporation, company or person fails to comply with subsection (1) or fails to reimburse the board of county commissioners for the costs and expenses incurred by the county in constructing and maintaining the drains or ditches, the board may apply by written petition to any court in the county maintain an action against such corporation, company, or person so failing to comply with the provisions of this section, in any court of competent jurisdiction and in the name of such county, and shall be entitled to recover all the costs and expenses incurred in the construction and maintenance of said drains or ditches."

Section 65. Section 69-14-252, MCA, is amended to read:

"69-14-252. Accident reports. Every The Montana railroad development authority or a railroad company operating any line of railroad within this state shall promptly upon the occurrence of any accident mentioned in subject to 69-14-112(2) report the same accident to the commission. In the The report shall be stated must include the time and place of the accident, the names of the persons killed or injured, and the value of any property destroyed."

Section 66. Section 69-14-513, MCA, is amended to read:

"69-14-513. Lease or purchase of other railroads. (1) Any The Montana railroad development authority, in accordance with [section 6] and this chapter, or a railroad corporation, whether chartered by or organized under the laws of Montana, the United States, or any other state, may lease or purchase the whole or any part of the railroad or rail line of any railroad corporation or the Montana railroad development authority, constructed or unconstructed, together with all the rights, powers, immunities, privileges, franchises, and all other property or appurtenances to the railroad or rail line. The A railroad company of any other from another state of the United States or the Montana railroad development authority that purchases or leases a railroad or any part of a railroad in this state:

(a) possesses and may exercise and enjoy, as to the control, management, and operation of manage, and operate the road,;

(b) except as provided in [section 4(2)], has all the rights, powers, privileges, and franchises possessed by railroad corporations organized under the laws of this state, including the exercise of the power of eminent domain, as provided in Title 70, chapter 30; and

(b)(c) shall establish and maintain must have an office or offices in this state at some point or points on its line at which where legal process and notice may be served, as upon railroad corporations of this state.

(2) Any The Montana railroad development authority, in accordance with [section 6] and this chapter, or a railroad company may sell or lease the whole or any part of its railroad or branches within this state, constructed or to be constructed, together with all property and rights, privileges, and franchises pertaining to the railroad or branches, to any the railroad development authority or a railroad company organized or existing pursuant to the laws of the United States, this state, or any other state of the United States.

(3) All roads or branches of a railroad in this state, whether purchased or leased, are subject to taxation, and to regulation, and control by the laws of this the state in all respects as if the line were constructed by corporations organized under the laws of this state.

(4) Before Except as provided in [sections 1 through 20], before any a lease or purchase is effective, the lease or purchase must be assented to or approved or ratified by the stockholders of each corporation by a vote in favor of the lease or purchase, at a general or special meeting of stockholders, or by the holders of a majority of all the outstanding capital stock of the company."

Section 67. Section 69-14-514, MCA, is amended to read:

"69-14-514. Interrailroad business arrangements and out-of-state operations. (1) Any The Montana railroad development authority, in accordance with [section 6] and this chapter, or a railroad company incorporated pursuant to the laws of this state, the United States, or any state or territory of the United States may at any time, by means of subscription subscribe to the capital stock of any other railroad company or by the purchase of its stock or bonds or by guaranteeing its bonds or otherwise, aid such the company in the construction of its railroad within or without outside this state and may take, purchase, hold, sell, and dispose of or guarantee the payment of the capital, stock, bonds, and securities of any other railroad corporation whose with a line of railroad within this state that is continuous of or connects with its own line.

(2) Any The Montana railroad development authority, in accordance with [section 6] and this chapter, or a company owning or operating a railroad within this state may:

(a) extend the same railroad into any other state or territory;

(b) build, buy, lease, or consolidate with any railroad or railroads in such other another state or territory;

(d) own such real estate and other property in such other another state or territory as may be that is necessary or convenient in for the operation of such the road.

(3) Such Except as provided in [section 6], the purchase, sale, consolidation with, or lease may be made or such aid may be furnished upon such terms or conditions as may be agreed upon by the directors or trustees of the respective companies or the members of the Montana railroad development authority, but the same shall be terms must be approved or ratified by:

(a) the Montana railroad development authority pursuant to [section 6]; or

(b) persons holding or representing a majority in amount of the capital stock of each of such the companies, respectively, at any annual stockholders' meeting, or at a special meeting of the stockholders called for that purpose, or by with the written approval in writing of a majority in interest of the stockholders of each company respectively.

(4) Before any a railroad corporation organized under the laws of any other another state or territory or of the United States shall be permitted to avail avails itself of the benefits of this section, such the corporation shall file with the secretary of state a true copy of its charter or articles of incorporation with the secretary of state."

Section 68. Section 69-14-531, MCA, is amended to read:

"69-14-531. Authorization to operate railroad. Any The Montana railroad development authority, in accordance with [section 6], or a railroad corporation shall be is authorized to locate, construct, maintain, and operate a railroad with a single or double track, with such sidetracks, turnouts, machine shops, offices, and depots as may be necessary, between any points it may select selects within the places named in the articles of incorporation as termini of such the road or in the case of the Montana railroad development authority, as provided for in [sections 1 through 20]. It may construct branches to any point in this state and connect its road with that road belonging to any other another person or corporation and may consolidate with any road that is not a parallel or competing line."

Section 69. Section 69-14-532, MCA, is amended to read:

"69-14-532. Authority to plan, lay out, and construct rail lines. Every The Montana railroad development authority, in accordance with [section 6], or a railroad corporation may:

(1) cause such require examination and surveys to be made as may be necessary to the selection of select the most advantageous route for the railroad;

(2) lay out its road, not exceeding in width 100 feet on each side of its centerline, unless a greater width is required for the purpose of excavation or embankment, and construct and maintain the same road, with a single or double track and with such appendages and adjuncts as may be necessary for the convenient use of the same road;

(3) construct its road across, along, or upon any a stream of water, watercourse, roadstead, bay, navigable stream, street, avenue, or highway or across any a railway, canal, ditch, or flume which the route of its that the road intersects, crosses, or runs along, in such manner as to afford security for life and property;. but However, the Montana railroad development authority or the corporation shall restore the stream, or watercourse, road, street, avenue, highway, railroad, canal, ditch, or flume thus that is intersected to its former state of usefulness, as near as possible, or so that the railroad shall does not unnecessarily impair its usefulness or injure its franchise;.

(4) erect and maintain all necessary and convenient buildings, stations, depots, fixtures, and machinery for the accommodation and use of its passengers, freight, and business; and

(5) change the line of its road, in whole or in part,:

(a) whenever if a majority of the directors so determine, as is provided in 69-14-534;, but no such a change may not vary the general route of such the road, as contemplated in its articles of incorporation; or

(b) if the Montana railroad development authority members determine to do so as provided in [sections 1 through 20]."

Section 70. Section 69-14-533, MCA, is amended to read:

"69-14-533. Authority to enter land for survey purposes. (1) For the purposes of 69-14-532(1), the officers, agents, and employees of a railroad corporation or the Montana railroad development authority may enter upon the lands or waters of any person private land or water,. subject to liability

(2) The Montana railroad development authority or railroad corporation is liable for all damages which they do thereto done to the land or water."

Section 71. Section 69-14-534, MCA, is amended to read:

"69-14-534. Change of location or grade. Whenever any If the Montana railroad development authority established pursuant to [section 3] or a corporation organized under this part, shall find it necessary, for the purpose of avoiding in order to avoid annoyance to public travel, finds it necessary to avoid dangerous or difficult curves, or grades, or unsafe or unsubstantial grounds or foundations or for other reasonable causes, to change the location or grade of any a portion of its road, such the Montana railroad development authority or railroad corporation is hereby authorized to may make such the changes, not departing from in compliance with the general route prescribed in the articles of incorporation of the corporation or, in the case of the Montana railroad development authority, as prescribed in [sections 1 through 20]."

Section 72. Section 69-14-536, MCA, is amended to read:

"69-14-536. Extension of rail lines into Montana. (1) (a) Any The Montana railroad development authority, as provided in [sections 1 through 20], or a railroad corporation chartered by or organized under the laws of the United States or of any another state may extend, construct, maintain, and operate its railroad into in and through this state to any place within the state and may build branches from any point on the extension or continuation of any an extension or branch.

(b) Before making an extension into the state, or building any a branch road, or any continuation continuing a road, the board of directors of a corporation or the Montana railroad development authority members shall, by approve a resolution of its board of directors, to be entered in the records of its proceedings, designate designating the general route of the proposed extension, branch, or continuation.

(c) The Montana railroad development authority or railroad corporation shall enter its findings into the record and file a copy of the record, certified by the president and secretary of the corporation or the presiding officer of the Montana railroad development authority, in the office of with the secretary of state. The secretary of state shall record the resolution.

(d) After the Except as provided in [section 6], after recording the extension, branch, or continuation, the corporations corporation or the Montana railroad development authority have all the rights, powers, privileges, immunities, and franchises to make, may maintain, and operate the extension and build, maintain, and operate the branch or continuation, including and, subject to [section 4(2)] has the right of eminent domain as provided in Title 70, chapter 30, that it would have if it had been incorporated under the general laws of Montana.

(2) Any A corporation of another state or of the United States extending that extends its railroad or any portion of its railroad into or through this state:

(a) shall establish and maintain must have an office or offices in this state at some point or points on its line at which where legal process and notice may be served, as upon railroad corporations of this state; and

(b) is subject to taxation, and regulation, and control by the laws of this the state, in all respects as if the line were constructed by corporations organized under the laws of this state.

(2)(3) Before any a railroad corporation organized under the laws of any other another state or of the United States is permitted to avail avails itself of the benefits of this section, the corporation shall file with the secretary of state a copy of its charter or articles of incorporation with the secretary of state."

Section 73. Section 69-14-538, MCA, is amended to read:

"69-14-538. Railroads on Indian and military reservations. Any The Montana railroad development authority or a railroad corporation organized under the laws of this state for the purpose of building railroads which that extend upon into Indian or military reservations within this state shall does not forfeit its charter or any rights or privileges by reason of its failure failing to build and complete any portion of its road upon such on the reservations until while seeking a grant of a right-of-way therefor has been obtained from the United States or any parties authorized in that behalf on behalf of the United States,. and thereafter After being granted a right-of-way, the provisions of this part shall be applicable to said apply to the Montana railroad development authority in accordance with [sections 1 through 20] or to corporations."

Section 74. Section 69-14-539, MCA, is amended to read:

"69-14-539. Connections between lines of different railroads. Every The Montana railroad development authority or a railroad corporation has power to may cross, intersect, join, or unite its railroad with any other railroad, either before or after construction, at any point upon on its route and upon on the grounds of such the other railroad corporation, with the necessary turnouts, sidings, and switches, and other conveniences in furtherance of the objects of its connections necessary for connection. Every The Montana railroad development authority or a corporation whose railroad is or shall be hereafter intersected by any intersects a new railroad shall unite with join the owners of such the new railroad in forming such and form intersections and connections and grant allow facilities therefor needed for the intersection or connection. If the two corporations parties cannot agree upon on the amount of compensation to be made therefor for the intersection or connection or the points or the manner of such the crossings, intersections, and connections, the same shall be ascertained and amount of compensation must be determined as is provided in Title 70, chapter 30."

Section 75. Section 69-14-552, MCA, is amended to read:

"69-14-552. Authority to hold and transfer property. Every The Montana railroad development authority, in accordance with [section 6], or a railroad corporation may:

(1) receive, hold, take, and convey, by deed or otherwise, as a natural person, voluntary grants and donations of real estate and other property that may be made to the corporation or authority to aid and encourage the construction, maintenance, and accommodation of the railroad;

(2) purchase or by voluntary grants or donations receive, enter, take possession of, hold, and use all real estate and other property that may be absolutely necessary for the construction and maintenance of the railroad and for all stations, depots, and other purposes necessary to successfully work and conduct the business of the railroad;

(3) purchase land, timber, stone, gravel, or other material to be used in for the construction and maintenance of its road and all or for the construction of related projects necessary for the construction and maintenance of the railroad; or

(4) subject to [section 4(2)], acquire them land, timber, stone, gravel, or other material as in the manner provided in Title 70, chapter 30, for the by condemnation of lands."

Section 76. Section 69-14-553, MCA, is amended to read:

"69-14-553. Acquisition and transfer of real estate. A railroad corporation or, in accordance with [section 6], the Montana railroad development authority may acquire by purchase or gift any land in the vicinity of its road or through which the road may pass if the land is convenient or necessary to secure the right-of-way or if the land is granted to aid in the construction of the road and, except as provided in [section 6], 69-14-931, and 69-14-932, may convey the land in any manner that the directors or Montana railroad development authority members may prescribe. All deeds and conveyances made by the corporation or the authority must be signed by the president, under the seal of the corporation or, in the case of the authority, by the authority's presiding officer."

Section 77. Section 69-14-554, MCA, is amended to read:

"69-14-554. Right-of-way through canyons. (1) (a) Any such If the right-of way or track on the right-of-way belonging to the Montana railroad development authority or a railroad corporation whose right-of-way or whose track upon such right-of-way extends through any a canyon, pass, or defile, shall the authority or corporation may not exclude any other such prohibit another corporation from a passage through the same canyon, pass, or defile upon equitable terms. In case of disagreement, upon application of either of the parties,

(b) If the parties disagree, with notice to the other party, the same shall be adjusted by a party may apply to a court of competent jurisdiction for resolution.

(c) If it shall become necessary for any other the Montana railroad development authority or another railroad company passing through the state to cross or pass any other crosses or passes another railroad track or defile already constructed or surveyed, the same crossing or passage may be so done without any compensation therefor, except the for actual damage done caused by so doing the crossing or passage.

(d) When two or more companies parties desire to pass passage through the same canyon, pass, or defile, neither shall may exclude the other from passing through the same canyon, pass, or defile and neither shall have any compensation therefor may be compensated for the passage, except the for actual damage done caused by so doing the passage.

(e) Should it be necessary that the said companies If the parties should use the same track or bed in passing through such the canyon, pass, or defile, the same passage may be done without any compensation therefor from one to the other, except the for actual damage by so doing caused by the passage.

(2) If the passage of any such a railroad through the canyon, pass, or defile causes the disuse or change of location of any a public wagon road that may traverse traverses the same canyon, pass, or defile, damages shall must be awarded therefor for the disuse or change of location, as provided by law."

Section 78. Section 69-14-555, MCA, is amended to read:

"69-14-555. Judgment liens against railroad property. A judgment against any the Montana railroad development authority or a railroad corporation for any an injury to a person or property or for material furnished or for work or labor done upon any of on the property of such the authority or corporation shall must be a lien within the county where recovered on the property of such the authority or corporation in the county where it is recovered, and such the lien shall must be prior and superior to the lien of any mortgage or trust deed provided for in this part."

Section 79. Section 69-14-557, MCA, is amended to read:

"69-14-557. State not liable for obligations of railroad. Nothing in [section 17] or this part shall may be construed to make the state or any municipality therein in the state liable for any debts or obligations of any character which that may be are contracted by such the Montana railroad development authority, provided for in [sections 1 through 20], or by railroad corporations."

Section 80. Section 69-14-558, MCA, is amended to read:

"69-14-558. Transportation of passengers and property. Every The Montana railroad development authority or a railroad corporation has power to may:

(1) carry persons and property on their its railroad and receive tolls or compensation therefor for carrying persons and property;

(2) regulate the time and manner in which that passengers and property shall be are transported and the tolls and compensation to be paid therefor for the transportation within the limits prescribed by law and subject to alteration, change, or amendment by the legislature at any time."

Section 81. Section 69-14-560, MCA, is amended to read:

"69-14-560. Regulation of rates of railroad corporations and Montana railroad development authority. (1) The Montana railroad development authority or a railroad corporation may not:

(a) ask, charge, or demand an exorbitant rate of compensation for the transportation of freight, baggage, express matter, or a passenger;

(b) make unjust discrimination in rates; or

(c) neglect to keep a table of passenger tariff and rates of freight conspicuously posted in each depot within this state.

(2) Any If the Montana railroad development authority or a railroad corporation within this state shall be deemed violates subsection (1), the authority or corporation is guilty of a misdemeanor and upon conviction thereof shall be fined:

(a) $1,000 for the first offense;

(b) in the sum of $1,000, $2,000 for the second violation of the same provision, offense; $2,000, and for every other and further violation of any provision of which it has been twice before found guilty, a sum

(c) not less than $5,000 or more than $10,000, for subsequent violations of a provision for which it has twice been found guilty if the corporation shall:

(1) ask, charge, or demand any exorbitant rate of compensation for the transportation of any freight, baggage, express matter, or passenger;

(2) make any unjust discrimination in its rates;

(3) willfully neglect to keep a table of its passenger tariff and rates of freight conspicuously posted in each depot within this state."

Section 82. Section 69-14-561, MCA, is amended to read:

"69-14-561. Regulation of railroad equipment. Every The Montana railroad development authority or a railroad corporation has power to may:

(1) regulate the force and speed of their locomotives, cars, trains, or other machinery used and employed on their its road; and

(2) establish, execute, and enforce all needful and proper rules necessary for the management of its business transactions usual and proper for railroad corporations."

Section 83. Section 69-14-562, MCA, is amended to read:

"69-14-562. Regulation of safety on railroads. (1) A railroad corporation within this state or the Montana railroad development authority is guilty of a misdemeanor and upon conviction is subject to the penalties provided in subsection (2) if the corporation or authority:

(a) neglects to provide comfortable and convenient cars or coaches for the transportation of its passengers and their baggage or safe cars for the transportation of express matter and freight;

(b) runs a train over an unsafe bridge, trestlework, or aqueduct;

(d) except as provided in 69-14-620, permits a locomotive to approach a public highway, public road, or public railroad crossing without causing the locomotive horn and bell to be sounded at the distance from the crossing provided in 61-8-347; or

(e) willfully fails to make any report required by law.

(2) For the purposes of subsection (1)(d):

(a) the horn and bell must be sounded from the specified point until the crossing is occupied, but if a train has stopped within 1,320 feet of a crossing, the horn and bell must be sounded for a minimum of 15 seconds prior to the train occupying the crossing;

(b) the railroad corporation or the Montana railroad development authority shall erect and maintain a sign at a minimum of 1,320 feet in advance of a crossing at which the horn and bell are required to be sounded to notify the locomotive crew in advance of a crossing that requires the locomotive horn and bell to be sounded;

(c) if the owner or permitholder of a private crossing makes a written request to the railroad corporation or the Montana railroad development authority to have the locomotive horn and bell sounded at a private crossing, the railroad or authority shall comply with the request, but the owner or permitholder is not subject to any liability as a result of not making a request; and

(d) the phrase "public highway, public road, or public railroad crossing" means that the easement, right-of-way, or fee title for the public highway, public road, or public railroad crossing is held in the name of a federal, state, tribal, or local government entity on both sides of the crossing and that the easement, right-of-way, or fee title is recorded in the office of the clerk and recorder in the county where the crossing is located.

(3) Upon conviction of the offenses provided in subsection (1), a railroad corporation or the Montana railroad development authority is subject to a fine of:

(a) $1,000 for the first offense;

(b) $2,000 for the second violation of the same provision; and

(c) not less than $5,000 or more than $10,000 for subsequent violations of a provision for which it has twice been found guilty."

Section 84. Section 69-14-601, MCA, is amended to read:

"69-14-601. Definition of railroad company. The words "railroad "Railroad company", as used in 69-14-601 through 69-14-611, shall be taken and construed to mean any means the Montana railroad development authority provided for in [section 3] or a corporation, person, or association of persons owning or operating a railroad."

Section 85. Section 69-14-612, MCA, is amended to read:

"69-14-612. Reflectorized material on crossing signs required. Within 2 years after April 9, 1987, The Montana railroad development authority or a railroad company shall install and maintain reflectorized material on the front and back sides of crossbuck blades on all public crossing signs the railroad company or authority is required to construct and maintain under 69-14-602 and 69-14-603."

Section 86. Section 69-14-620, MCA, is amended to read:

"69-14-620. Establishment of railroad quiet zones. (1) For the purposes of this section, "quiet zone" means a segment of a railroad within which is situated one or a number of consecutive railroad crossings at which locomotive horns and bells are not routinely sounded.

(2) A governing body of a municipality or a board of county commissioners may petition to the secretary of the United States department of transportation to establish quiet zones at railroad crossings that meet the requirements established in the rules adopted to implement 49 U.S.C. 20153(c). In developing the petition, the governing body of the municipality or the board of county commissioners shall consult with the Montana railroad development authority or railroad corporations that operate operating the rail lines through crossings that are within the proposed quiet zone. The petition must include how the municipality or county intends to implement the supplemental safety measures that are required by the United States department of transportation at railroad crossings within quiet zones.

(3) A quiet zone may not be established at a railroad crossing unless the governing body of a municipality or a board of county commissioners follows the procedure provided in subsection (2) and receives the approval of the secretary of the United States department of transportation or the secretary's designee."

Section 87. Section 69-14-626, MCA, is amended to read:

"69-14-626. Prohibition on extended obstruction of highway crossings. (1) It shall be is unlawful for any the Montana railroad development authority or a corporation, association, or company to willfully obstruct, blockade, interfere with, or prevent the free use of any a public highway within the state where such a highway crosses any a railroad track outside of incorporated cities and towns by stopping any a railroad train, car, engine, or locomotive for more than 15 minutes at any one time or by placing, depositing, or leaving any an article or thing whatsoever on any a railroad track at the point where any a public highway crosses such the track outside of incorporated cities and towns.

(2) Any If the Montana railroad development authority or a corporation, association, or company so obstructing, blockading, or interfering obstructs, blockades, or interferes with the free use of any such a highway, shall be deemed the authority, corporation, association, or company is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than $25 or more than $100. This section shall not be construed as repealing does not repeal any existing laws prohibiting encroachments upon or obstruction of public highways."

Section 88. Section 69-14-701, MCA, is amended to read:

"69-14-701. Maintenance of fences -- exception -- penalty. (1) Railroad corporations and the Montana railroad development authority shall build and maintain a legal fence on both sides of their track and property and maintain cattle guards at all crossings over which cattle or other domestic animals cannot pass, except that a fence is not required in places where water ditches, embankments, terrain, or other sufficient protection prevents domestic animals from straying onto the right-of-way. An affected landowner or lessee may construct, maintain, or repair a fence subject to approval and reimbursement by the railroad corporation or the Montana railroad development authority.

(2) If a railroad corporation or the Montana railroad development authority does not build and maintain the fence and guards and its engines or cars, because of the lack of a fence or maintenance of a fence, kill or maim cattle or other domestic animals upon its line of road, it must the corporation or authority shall pay to the owner of the cattle or other domestic animals, in all cases, a fair market price for the animal, unless it the damage occurred through the neglect or fault of the owner of the animal killed or maimed;. however However, nothing in this section may not be construed to prevent a person from recovering damages from a railroad corporation or the Montana railroad development authority for its negligent killing or injury to cattle or other domestic animals at spurs, sidings, Ys, crossings, and turntables.

(3) An affected landowner or lessee may file a complaint with the public service commission when a fence is in disrepair or in need of maintenance. The public service commission shall certify that the fence is in need of repair and notify the railroad corporation or the Montana railroad development authority, whichever is responsible for the fence. The public service commission shall forward a copy of the complaint, a certification that the fence is in need of repair, and a verification that the railroad corporation or the authority was notified to the county attorney of the county within which the site of the fence in disrepair is located. Upon notice, the railroad corporation or the authority, whichever is responsible for the fence, shall repair the fence within 30 days, weather permitting. A railroad If the corporation failing or the authority fails to repair the fence within 30 days of notification the corporation or authority shall pay a fine of $100, plus $50 a day each day after the 30th day of notification, for failure to repair the fence. The fine must be recovered in a civil action and deposited in the county general fund. It is the duty of the county attorney of the county within which the site of the fence in disrepair is located to prosecute the action."

Section 89. Section 69-14-702, MCA, is amended to read:

"69-14-702. Crossings to be maintained. (1) Any If the Montana railroad development authority, a railroad corporation, or a lessee, person, company, or corporation operating any a railroad in this state which may fence fences its right-of-way, the authority, railroad corporation, lessee, person, company, or corporation shall make crossings through its fence and over its roadbed along its right-of-way every 4 miles thereof or as near thereat to 4 miles as may be is practicable.

(2) Such openings shall Openings may not be less than 60 feet in width."

Section 90. Section 69-14-703, MCA, is amended to read:

"69-14-703. Placement of cattle guards. The Montana railroad development authority, a railroad company corporation, or a lessee, person, company, or corporation operating any a railroad shall place cattle guards on either side of the openings required by 69-14-702, that are sufficient to prevent any cattle from entering upon the enclosed right-of-way enclosed."

Section 91. Section 69-14-704, MCA, is amended to read:

"69-14-704. Openings under trestles. The Montana railroad development authority, railroad company corporation, lessee, person, or company, or corporation operating any a railroad, in addition to the openings required by 69-14-702, shall leave unfenced any places where the railroad runs over trestles that are sufficiently high for cattle to go underneath the same."

Section 92. Section 69-14-706, MCA, is amended to read:

"69-14-706. Violation of crossing provisions. Any If the Montana railroad development authority, a railroad corporation, or a lessee, person, company, or corporation operating any a railroad in this state violating violates the provisions of 69-14-702 through 69-14-705, shall be deemed the authority, railroad corporation, lessee, person, company, or corporation operating the railroad is guilty of a misdemeanor and upon conviction thereof in any court of competent jurisdiction shall be fined in a sum not less than $100 and not more than $500."

Section 93. Section 69-14-707, MCA, is amended to read:

"69-14-707. Liability for negligent destruction of domestic animals. Every The Montana railroad development authority or a railroad corporation or company operating any a railroad or branch thereof of the authority, corporation, or company within the limits of this state which shall that negligently injure or kill injures or kills any horse, mare, gelding, filly, jack, jenny, mule, cow, heifer, bull, ox, steer, calf, or other domestic animal by running any engine or car over or against any such the animal shall be is liable to the owner of such the animal for the damages sustained by such the owner by reason thereof. The killing or injury shall be is prima facie evidence of negligence on the part of such the authority, corporation, or company."

Section 94. Section 69-14-708, MCA, is amended to read:

"69-14-708. Records of accidents involving livestock. (1) A The Montana railroad development authority or a railroad company must shall report to the department of livestock any livestock killed or injured by a train or railroad equipment on the railroad right-of-way within 30 days after the killing or injuring of any livestock.

(2) A If the Montana railroad development authority or a railroad company failing fails to provide the notice provided for in subsection (1), the authority or company is liable to the owner of the animal killed or injured, whether negligently done or not. The court or jury before whom where an action is tried for the recovery of damages may in its discretion render a verdict and judgment for the amount of the value of the livestock killed or the amount of damages sustained by reason of injury."

Section 95. Section 69-14-710, MCA, is amended to read:

"69-14-710. Tender or deposit of value of animal. If the Montana railroad development authority or a corporation, association, company, or person so owning, controlling, or operating a railroad or branch thereof of a railroad kills or injures an animal as aforesaid as described in 69-14-707 and tenders to the owner thereof or to his the owner's agent in that behalf the amount which they consider that the authority, corporation, association, company, or person considers to be the value thereof of the animal or the damage thereto to the animal, as the case may be or if the railroad development authority, railroad, corporation, association, company, or person deposits with the department of livestock such that amount for the owner thereof of the animal and the owner or his the owner's agent refuses to accept the amount in settlement thereof, then the owner shall pay all costs incurred in any action instituted, after the tender or deposit, to recover the value or damage unless he the owner recovers in the action more than the amount so tendered."

Section 96. Section 69-14-711, MCA, is amended to read:

"69-14-711. Payment of damages to department of livestock. (1) If livestock are killed by a railroad corporations corporation or the Montana railroad development authority in violation of 69-14-701 and if the owner of the livestock does not claim or assert a claim against the railroad or railroad corporation or authority for the value of the livestock killed within 6 months from the date the animal is killed, the department of livestock shall demand from the railroad or railroad corporation or authority payment in damages for the livestock. The department shall institute and prosecute, in the name of the state, actions against the railroad or railroad companies corporation or authority in a court of competent jurisdiction to recover damages if the railroad corporation or authority fails, neglects, or refuses to make payment of the amount of the claim filed by the department.

(2) The money recovered shall must be paid to the department and shall must be held by the department for a period of 2 years after the date of its receipt. If the lawful owner of the animal killed does not present and prove his the owner's claim to the net proceeds received from the animal killed within the 2 years, the money shall must be paid to the state treasurer and credited to the stock estray fund. If the owner of the animal killed proves his the owner's claim within the 2 years, the department may pay the claimant the amount of money to which he the claimant is entitled for the animal killed by the railroad or railroad company, corporation or authority from the damages for which have been collected by the department.

(3) In actions prosecuted under this section for the recovery of the value of livestock killed under this section, the prevailing or successful party shall recover all costs. If the owner of an animal killed has not presented his a claim against the railroad or railroad company which corporation or the authority, whichever caused it to be killed, a settlement made by the department constitutes a bar against an action by the owner of the animal."

Section 97. Section 69-14-714, MCA, is amended to read:

"69-14-714. Payment of claim -- penalty. Upon determining liability for the amount of the value of an animal killed or maimed under the circumstances described in 69-14-701, the railroad corporation or the Montana railroad development authority shall pay the plaintiff within 30 days. Upon failure to pay the plaintiff within 30 days, interest at a rate of 10% a year accrues on the amount due until the claim is paid."

Section 98. Section 69-14-721, MCA, is amended to read:

"69-14-721. Control of fire hazard along right-of-way. A The Montana railroad development authority, a railroad corporation, or a railroad company operating a railroad within this state shall keep its railroad track and either side of the track for a reasonable distance within its right-of-way, free from dead grass, weeds, or any dangerous or combustible material. A If the authority, railroad corporation, or company failing fails to keep its railroad track and each side of the track free of combustible material as specified in this section, the authority, corporation, or company is liable for any damages on account of caused by fire emanating from trains, track maintenance, or other railroad operations. A The Montana railroad development authority, railroad corporation, or railroad company may not be required to keep free of combustible material, as specified in this section, land that is not a part of its right-of-way."

Section 99. Section 69-14-722, MCA, is amended to read:

"69-14-722. Maintenance of fireguards. (1) Every Except as provided in subsection (3), the Montana railroad development authority or a railroad corporation operating its lines of road or any part thereof or its lines of road within this state shall, between April 15 and July 1 in each year, plow a continuous strip of not less than 6 feet in width on each side of its track in a good and workmanlike manner, covering the sod well, upon on each side of its line of road, wherever it passes through a range or grazing country, a continuous strip of not less than 6 feet in width on each side of its track, as a fireguard. Said The strip must shall, as near as practicable, run parallel with the line or lines of said the railroad, and. in In addition to such plowing, said the Montana railroad development authority or a railroad company corporation shall cause to be burned, between July 15 and September 15 of each year, burn all the grass and vegetation between the said plowed strips and a line of 50 feet inside said the plowed strips. Said The plowing shall may not be not less than 300 feet from the center of the railroad track on each side of same the track except in cases of cultivated fields, and then such the plowing and burning shall must be done closer to such the railroad but not less than 70 feet from the center of the track.

(2) Such A fireguard, so that is plowed and burned, need is not be constructed required:

(a) within the limits of any town, village, or city;

(b) in private fields under cultivation;

(d) elsewhere where such plowing or burning would be impracticable.

(3) Said The fireguard or portion thereof of fireguard need not is not required to be plowed or burned on or through any lands which may be released from the operation the requirements of this section by the board of county commissioners of the county wherein such where the land is situated, by their written certificate of release filed in the office of the county clerk of the county.

(3)(4) If any the Montana railroad development authority or a railroad company corporation fails to comply with any of the provisions of this section, the board of county commissioners of the county wherein such where a violation occurs shall cause the neglected plowing, burning, or both to be done may plow or burn the land and may, in bring a suit to be brought in their name as said board in the district court having jurisdiction, to recover double the amount of the cost of such the plowing, burning, or both, along with reasonable attorney fees to be fixed by the court. Such The Montana railroad development authority or a railroad company shall be corporation is liable further for all damages caused by its failure to comply with this section."

Section 100. Section 69-14-801, MCA, is amended to read:

"69-14-801. Maintenance of loading platform by railroad. (1) A The Montana railroad development authority or a railroad company doing business in this state shall, within 60 days after notice from the commission, erect one or more safe platforms for the transfer of commodities to cars. The platforms must be erected to not endanger life and property.

(2) If a the Montana railroad development authority or a railroad company, after receiving notice as provided for in this section, fails, refuses, or neglects to erect platforms as required by this section within 60 days, the commission shall notify the authority or railroad company to appear before it at a certain time and place and show cause why the commission should not issue an order requiring the authority or railroad company to comply with the requirements of this section. The commission may, after the hearing, issue an order commanding the railroad company or authority to erect the platform.

(3) A notice required to be served upon a railroad company or the Montana railroad development authority to carry out any of the provisions of this section or similar provisions relating to the enlarging of platforms may be served upon any agent of the railroad company or authority within the state."

Section 101. Section 69-14-804, MCA, is amended to read:

"69-14-804. Erection of scales. Every The Montana railroad development authority or a railroad company shall allow suitable scales to be erected either upon the platform or upon the grounds adjacent thereto to the platform, if upon their located on its right-of-way, for weighing and shipping purposes."

Section 102. Section 69-14-805, MCA, is amended to read:

"69-14-805. Violations of loading platform provisions. Every If the Montana railroad development authority or a railroad company neglecting or refusing neglects or refuses to comply with the requirements of 69-14-801 and 69-14-803 through 69-14-805 shall be deemed the authority or company is guilty of a misdemeanor and be is subject to a fine of not less than $500 for every 30 days such the failure shall continue continues after notice as aforesaid is provided."

Section 103. Section 69-14-811, MCA, is amended to read:

"69-14-811. Industrial and commercial spurs. (1) Except as provided in subsection (2), the commission shall have has full power and authority, after notice and hearing, to compel railroad companies or the Montana railroad development authority operating in the state to construct industrial or commercial spurs to industries when there is or will be sufficient traffic to require such the facilities. Any such industrial or commercial spur shall must be constructed pursuant to the usual and customary contract of the particular railroad company or the Montana railroad development authority in constructing such the spurs.

(2) (a) Any such An industrial or commercial spur will may not exceed 1 mile in length from headblock to end of track.

(b) Such The industrial or commercial spur shall may not be ordered constructed except within the limits of extreme switches of stations or yards or at sidings unless such the stations, yards, sidings, or spurs are more than 7 miles apart or unless such the spurs can be so safely and reasonably placed as to be reasonably safe and not unnecessarily interfere with main-line operation."

Section 104. Section 69-14-901, MCA, is amended to read:

"69-14-901. Authorization to locate and erect grain warehouse or elevator on railroad right-of-way. (1) Any The Montana railroad development authority or a person, firm, or corporation desirous of erecting that desires to erect and operating operate at or contiguous to any railway station or siding a warehouse or elevator for the purchase, sale, shipment, or storage of grain, (including flaxseed), for the public for hire may make application in writing, containing a description of that portion of the right-of-way of said the railroad on which such the person, firm, or corporation desires to erect a warehouse or elevator, the size and capacity of the warehouse or elevator proposed to be erected, and the time for which it is desired to maintain such the warehouse or elevator,. The application must be made to the Montana railroad development authority or a person, firm, or corporation owning, leasing, or operating the railroad at such the station or siding, for the right, privilege, and easement of erecting and maintaining for the time stated in such the application and for reasonable compensation for such the warehouse or elevator, as aforesaid, upon the right-of-way pertaining to such the railway at such the siding or station and within and between the outside switches of the yard of such the railway station or siding,. and upon Upon paying or securing in the manner hereinafter prescribed in this section reasonable compensation for the right, privilege, and easement, aforesaid, shall the authority, person, firm, or corporation is absolutely and unconditionally be entitled to the same right, privilege, and easement.

(2) The application shall must also state the amount that the applicant deems considers reasonable compensation for the right, privilege, and easement he the applicant desires to acquire, and said the applicant shall tender and pay to such the Montana railroad development authority, person, firm, or corporation from whom such the easement is sought the sum stated in such the application.

(3) If the Montana railroad development authority or the person, firm, or corporation owning, leasing, or operating the railroad is not willing that to allow the portion of the right-of-way selected by the applicant should to be appropriated for such the stated purpose and the parties cannot agree as to the quantity and location of the land upon which such grain the warehouse or grain elevator shall is to be erected, the matter shall must be determined by the district court in the same manner and by the same proceeding for determining the amount of compensation to be paid where when the parties cannot agree as to the amount."

Section 105. Section 69-14-902, MCA, is amended to read:

"69-14-902. Decision on application by railroad. It shall be is the duty of the Montana railroad development authority or any person, firm, or corporation to whom application is made for the right to erect and maintain an elevator or warehouse under the provisions of 69-14-901 through 69-14-911, within 30 days after the receipt of such the application, to notify said the applicant in writing of the acceptance or rejection of the amount stated in said the application to be reasonable compensation for the right, privilege, and easement sought to be acquired. In case such the authority, person, firm, or corporation fails to notify the applicant within said 30 days, such the authority, person, firm, or corporation shall be deemed to have accepted said must be considered to have accepted the amount, and upon the payment or tender thereof of the amount, said the applicant shall be deemed to have acquired acquires the right, privilege, and easement applied for."

Section 106. Section 69-14-904, MCA, is amended to read:

"69-14-904. Procedure in district court. (1) The parties seeking the right, privilege, and easement aforesaid shall present to and file with the district court a petition in writing and under oath, specifying and describing the right, privilege, and easement sought, the time for which the same is sought, and the fact that the parties to the proceedings are unable to agree upon the amount of compensation therefor.

(2) A copy of the application for such the privilege shall must be attached to said the petition, and thereupon it shall be at once is the duty of the court by its order in writing to fix a time not more than 30 days thereafter after receipt of the application within which the Montana railroad development authority, person, firm, or corporation so owning, managing, or controlling such the railroad shall appear and join issue in said the proceeding. Such The notice shall be must be served as a summons is served in civil actions, and shall be is ample notice to the parties so served to appear and join in the proceedings, and shall be is ample to give the court full jurisdiction over the party against whom the proceedings are instituted and the property involved in the proceeding.

(3) The manner of joining issue and the procedure at the trial shall must be the same as that in any other civil action at law.

(4) The trial of such issue shall must be expedited by the court as much as possible. At the trial, the court or jury, as the case may be, shall find and assess the compensation, both in the form of an annual rental and in the form of a gross sum, for the right, privilege, and easement sought. Immediately after the finding or verdict has been is made, the party against whom the proceedings have been taken shall elect whether to receive the annual rental or the gross sum found. In case such If the election is not made by said the party, then the other party to the proceedings may make such the election. After election is made as aforesaid, judgment shall be rendered adjudging, among other things, must be rendered that upon payment of the gross sum found or the annual rental found, yearly in advance, as the case may be, the party instituting the proceedings shall be is entitled to the right, privilege, and easement of erecting and maintaining the elevator or warehouse asked for in the application and petition aforesaid and for the time therein specified. Thereupon the The party in whose favor said the judgment is rendered shall be is entitled to a writ of execution in proper form to immediately invest such the party with the right, privilege, and easement aforesaid."

Section 107. Section 69-14-910, MCA, is amended to read:

"69-14-910. Connection of railroad to elevator or warehouse. (1) Every The Montana railroad development authority or a railroad company or corporation organized under the laws of this state or doing business therein in this state shall, upon application in writing, provide reasonable sidetrack facilities and running connections between its main track and elevators and warehouses upon or contiguous to its right-of-way at stations. Every such The Montana railroad development authority or a railroad corporation shall permit connections to be made and maintained in a reasonable manner with its sidetracks to and from any warehouse or elevator, without reference to its size, cost, or capacity, where grain is or may be stored. Such The Montana railroad development authority or a railroad company shall corporation may not be required to construct or furnish any sidetracks except upon its own land or right-of-way. The reasonable cost of the construction of such the sidetracks and connections, except the cost of the rails and fastenings, shall must be paid by the person or persons for whose benefit such the sidetracks are provided or connections made.

(2) Where When stations are 10 miles or more apart, the railroad company Montana railroad development authority or the railroad corporation, when required to do so by the public service commission, shall construct and maintain a sidetrack for the use of shippers between such stations."

Section 108. Section 69-14-1005, MCA, is amended to read:

"69-14-1005. Medical aid for injured trainmen train operators. (1) In case any If a railroad trainman train operator or employee of any the Montana railroad development authority or a railroad corporation doing business in this state shall be is injured during his the operator's or employee's regular course of employment, any employee of said the authority or railroad is hereby empowered and authorized to call upon and retain the services of the nearest practicing physician or surgeon to care for and treat any such the injured trainman train operator or employee, during and until such the time as that one of the regularly employed and paid physicians or surgeons of such the railroad corporation or the Montana railroad development authority is able to render such service.

(2) In cases where If the services of any physician or surgeon other than the regularly employed physician or surgeon of the railroad corporation or the Montana railroad development authority are retained and hired, as provided in this section, such the physician or surgeon shall must be compensated and paid a reasonable fee for such the services performed by him.

(3) If any a railroad corporation or the Montana railroad development authority refuses or neglects to pay for the services of any such a physician as hereinbefore provided for in subsection (2) within a reasonable time after such the physician or surgeon has rendered the services therefor, such railroad the corporation or the authority shall be is guilty of a misdemeanor."

Section 109. Section 69-14-1006, MCA, is amended to read:

"69-14-1006. Liability for death or injury to railroad employees. (1) Every The Montana railroad development authority or a person or corporation operating a railroad in this state shall be is liable in damages to any person suffering injury while he the person is employed by such the authority, person, or corporation so operating any such the railroad or, in case of the death of such an employee, instantaneously or otherwise, to his or her the employee's personal representative, for the benefit of the surviving widow or husband spouse and children of such the employee and, if none, then of such the employee's parents and, if none, then of the next of kin dependent upon such the employee,. The damages must be for such an injury or death resulting in whole or in part from the negligence of any of the officers, agents, or employees of such the Montana railroad development authority or the person or corporation so operating such the railroad, in or about the handling, movement, or operation of any train, engine, or car on or over such the railroad or by reason of any defect or insufficiency, due to its negligence, in its cars, engines, appliances, machinery, track, roadbed, works, boats, wharves, or other equipment.

(2) (a) In all actions brought against any such the Montana railroad development authority or a person or corporation so operating such the railroad, under or by virtue of any of the provisions of this section, the fact that the employee may have been guilty of contributory negligence shall may not bar a recovery, but the damages shall must be diminished by the jury in proportion to the amount of negligence attributable to such the employee;. provided, that no such However, an employee who may be is injured or killed shall may not be held to have been guilty of contributory negligence in any case where in which the violation by such the Montana railroad development authority or person or corporation, so operating such the railroad, of any statute enacted for the safety of employees contributed to the injury or death of such the employee.

(b) An employee of any such the Montana railroad development authority or a person or corporation so operating such a railroad shall may not be deemed considered to have assumed any risk incident to his the employee's employment when such the risk arises by reason of the negligence of his the employer or of any person in the service of such the employer.

(3) Any A contract, rule, or device whatsoever, the purpose or intent of which shall be is to enable any such the Montana railroad development authority or a person or corporation so operating such a railroad to exempt itself from any liability created by this section, shall is, to that extent, be void. In any an action brought against any such the Montana railroad development authority or a person or corporation so operating such a railroad, under or by virtue of any of the provisions of this section, such the authority, person, or corporation may set off therein any sum it has contributed or paid to any insurance, relief benefit, or indemnity that may have been paid to the injured employee or the person entitled thereto to the payment on account of the injury or death for which said the action is brought."

Section 110. Section 69-14-1101, MCA, is amended to read:

"69-14-1101. Definitions. As used in this part, the following definitions apply:

(1) "Buyer" means a person, corporation, association, business entity, labor organization, the state of Montana or any of its political subdivisions, or any other entity that acquires a line of railroad, by purchase, lease, or other agreement, to continue the commercial transportation of goods or passengers.

(2) "Labor organization" means any organization or association of any kind in which employees participate and that exists for the primary purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, fringe benefits, or other conditions of employment.

(3) "Seller" means the Montana railroad development authority or a person, corporation, association, or business entity that transfers a line of railroad by sale, lease, or other agreement.

(4) "Transaction" means the limited purchase, sale, or transfer of part of a line of railroad that will be operated by a common rail carrier."

Section 111. Section 70-30-102, MCA, is amended to read:

"70-30-102. Public uses enumerated. Subject to the provisions of this chapter, the right of eminent domain may be exercised for the following public uses:

(1) all public uses authorized by the government of the United States;

(2) public buildings and grounds for the use of the state and all other public uses authorized by the legislature of the state;

(3) public buildings and grounds for the use of any county, city, town, or school district;

(4) canals, aqueducts, flumes, ditches, or pipes conducting water, heat, or gas for the use of the inhabitants of any county, city, or town;

(5) projects to raise the banks of streams, remove obstructions from streambanks, and widen, deepen, or straighten stream channels;

(6) water and water supply systems as provided in Title 7, chapter 13, part 44;

(7) roads, streets, alleys, controlled-access facilities, and other publicly owned buildings and facilities for the benefit of a county, city, or town or the inhabitants of a county, city, or town;

(8) acquisition of road-building material as provided in 7-14-2123;

(9) stock lanes as provided in 7-14-2621;

(10) parking areas as provided in 7-14-4501 and 7-14-4622;

(11) airport purposes as provided in 7-14-4801, 67-2-301, 67-7-210, and Title 67, chapters 10 and 11;

(12) urban renewal projects as provided in Title 7, chapter 15, parts 42 and 43, except that private property may be acquired for urban renewal through eminent domain only if the property is determined to be a blighted area, as defined in 7-15-4206(2)(a), (2)(h), (2)(k), or (2)(n), and may not be acquired for urban renewal through eminent domain if the purpose of the project is to increase government tax revenue;

(13) housing authority purposes as provided in Title 7, chapter 15, part 44;

(14) county recreational and cultural purposes as provided in 7-16-2105;

(15) city or town athletic fields and civic stadiums as provided in 7-16-4106;

(16) county cemetery purposes as provided in 7-35-2201, cemetery association purposes as provided in 35-20-104, and state veterans' cemetery purposes as provided in 10-2-604;

(17) preservation of historical or archaeological sites as provided in 23-1-102 and 87-1-209(2);

(18) public assistance purposes as provided in 53-2-201;

(19) highway purposes as provided in 60-4-103 and 60-4-104;

(20) common carrier pipelines as provided in 69-13-104;

(21) water supply, water transportation, and water treatment systems as provided in 75-6-313;

(22) mitigation of the release or threatened release of a hazardous or deleterious substance as provided in 75-10-720;

(23) the acquisition of nonconforming outdoor advertising as provided in 75-15-123;

(24) screening for or the relocation or removal of junkyards, motor vehicle graveyards, motor vehicle wrecking facilities, garbage dumps, and sanitary landfills as provided in 75-15-223;

(25) water conservation and flood control projects as provided in 76-5-1108;

(26) acquisition of natural areas as provided in 76-12-108;

(27) acquisition of water rights for the natural flow of water as provided in 85-1-204;

(28) property and water rights necessary for waterworks as provided in 85-1-209 and 85-7-1904;

(29) conservancy district purposes as provided in 85-9-410;

(30) wharves, docks, piers, chutes, booms, ferries, bridges, private roads, plank and turnpike roads, and railroads, except as provided in [section 4(2)];

(31) canals, ditches, flumes, aqueducts, and pipes for:

(a) supplying mines, mills, and smelters for the reduction of ores;

(b) supplying farming neighborhoods with water and drainage;

(d) floating logs and lumber on streams that are not navigable;

(32) sites for reservoirs necessary for collecting and storing water. However, reservoir sites must possess a public use demonstrable to the district court as the highest and best use of the land.

(33) roads, tunnels, and dumping places for working mines, mills, or smelters for the reduction of ores;

(34) outlets, natural or otherwise, for the flow, deposit, or conduct of tailings or refuse matter from mines, mills, and smelters for the reduction of ores;

(35) an occupancy in common by the owners or the possessors of different mines of any place for the flow, deposit, or conduct of tailings or refuse matter from their several mines, mills, or smelters for reduction of ores and sites for reservoirs necessary for collecting and storing water for the mines, mills, or smelters. However, the reservoir sites must possess a public use demonstrable to the district court as the highest and best use of the land.

(36) private roads leading from highways to residences or farms;

(37) telephone or electrical energy lines, except that local government entities as defined in 2-7-501, municipal utilities, or competitive electricity suppliers may not use this chapter to acquire existing telephone or electrical energy lines and appurtenant facilities owned by a public utility or cooperative for the purpose of transmitting or distributing electricity or providing telecommunications services;

(38) telegraph lines;

(39) sewerage of any:

(a) county, city, or town or any subdivision of a county, city, or town, whether incorporated or unincorporated;

(b) settlement consisting of not less than 10 families; or

(40) tramway lines;

(41) logging railways;

(42) temporary logging roads and banking grounds for the transportation of logs and timber products to public streams, lakes, mills, railroads, or highways for a time that the court or judge may determine. However, the grounds of state institutions may not be used for this purpose.

(43) underground reservoirs suitable for storage of natural gas;

(44) projects to mine and extract ores, metals, or minerals owned by the condemnor located beneath or upon the surface of property where the title to the surface vests in others. However, the use of the surface of property for strip mining or open-pit mining of coal (i.e., any mining method or process in which the strata or overburden is removed or displaced in order to extract the coal) is not a public use, and eminent domain may not be exercised for this purpose.

(45) projects to restore and reclaim lands that were strip mined or underground mined for coal and not reclaimed in accordance with Title 82, chapter 4, part 2, and to abate or control adverse effects of strip or underground mining on those lands."

Section 112. Section 81-8-252, MCA, is amended to read:

"81-8-252. Hearing on application for certificate -- decision. (1) Upon the filing of the application under 81-8-251, the department shall fix a time and place for a hearing thereon on the application, which may not be less than 10 days after the filing. The department shall have a copy of the application, excluding the financial statement described in 81-8-251(2)(h), and notice of the hearing served by mail upon:

(a) the operators of any other livestock markets that in the opinion of the department might be affected by the granting of any such the certificate;

(b) the secretaries of the Montana stockgrowers association and the Montana woolgrowers association;

(d) the secretary of the livestock association or associations, if any, within the vicinity of the proposed livestock market, if known to the department; and

(e) any the Montana railroad development authority or a railroad company operating into or through the town or city in which the proposed livestock market will be located.

(2) If, after the hearing on the application, the department finds from the evidence that public convenience and necessity require the authorization of the proposed livestock market, a certificate must be issued to the applicant. In determining whether public convenience and necessity require the livestock market, the department shall give reasonable consideration to the service rendered by other existing livestock markets in this state and the effect upon them if the proposed livestock market is authorized and shall give due consideration to the likelihood of the proposed service being permanent and continuous throughout 12 months of the year."

Section 113. Section 85-1-208, MCA, is amended to read:

"85-1-208. Construction across streams, highways, or other obstacles. (1) The department may construct irrigation works across any stream of water, watercourse, streets, avenues, highways, railways, canals, ditches, or flumes in such manner as to afford security street, avenue, highway, railway, canal, ditch, or flume to secure life and property. The department shall restore the same stream of water, watercourse, street, avenue, highway, railway, canal, ditch, or flume, when so crossed or intersected, to its their former state, as near as may be possible, so as not to destroy its their usefulness. A The Montana railroad development authority or a company whose railroads are intersected or crossed by the works shall unite with join the department in forming the intersection and crossing. If the railroad company or the Montana railroad development authority and the department or the owners and controllers of the property, thing, or franchise so to be being crossed cannot agree upon the amount to be paid therefor for the property, thing, or franchise or the points or the manner of the crossing or intersections, the amount shall must be ascertained and determined in all respects as herein provided in this section in respect to taking of land for public use.

(2) This section does not require the payment to the state or any subdivision thereof of the state of a sum for the right to cross a public highway with the works. A right-of-way is hereby given, dedicated, and set apart to locate, construct, and maintain the works over and through the lands which that are the property of this state."

Section 114. Section 85-7-1909, MCA, is amended to read:

"85-7-1909. Rights-of-way for irrigation works. (1) (a) The board of commissioners shall have has the power to construct irrigation works across any stream of water, watercourse, street, avenue, highway, railway, canal, ditch, or flume which where the route of said the canal or canals may intersect intersects or cross crosses in such a manner as to afford that affords security to life and property.

(b) Said The board shall restore the same stream of water, watercourse, street, avenue, highway, railway, canal, ditch, or flume, when so crossed or intersected, to its former state, as near as may be possible, so as not to destroy its usefulness.

(c) Every The Montana railroad development authority or a company whose railroad shall be is intersected or crossed by said the works shall unite with said join the board in forming said the intersection and crossing, and if such the authority, railroad company, or the owners and controllers of said the property, thing, or franchise so to be being crossed and said the board cannot agree upon the amount to be paid therefor for the property, thing, or franchise or the points or the manner of said the crossing or intersections, the same shall amount must be ascertained and determined in all respects as herein provided in this section in respect to taking of land for public use.

(2) Nothing contained herein shall require in this section requires the payment to the state or any subdivision thereof of the state of any sum for the right to cross any public highway with any such works. The right-of-way is hereby given, dedicated, and set apart to locate, construct, and maintain said the works over and through any of the lands which are now or hereafter at a later time may be the property of this state."

Section 115. Section 85-8-341, MCA, is amended to read:

"85-8-341. Preparation of report -- contents. (1) As soon as may be possible after the confirmation of the preliminary report or within such the time as directed by the court may direct, said the commissioners shall: proceed to

(a) have all necessary levels taken and surveys made and shall;

(b) lay out said the proposed work;

(c) make a map thereof of the proposed work, and plans, profiles, and other specifications thereof of the proposed work; and

(d) report in writing to the court:

(a)(i) whether the starting points, routes, and termini of the proposed work and the proposed location thereof of the proposed work as contained in the petition are in all respects proper and feasible and, if not, shall report such as those that are most proper and feasible;

(b)(ii) if it be found is necessary to change the boundaries of said the proposed district, as fixed by them previously, they shall report said the proposed change and, if possible, shall report the names, residence, and post-office addresses of the owner or owners of all lands affected by said the change in boundaries,. but no such However, a change in boundaries shall may not be made as to deprive the court of jurisdiction;. provided, however, that if If the owners of lands adjacent to the district petition to have their lands brought into the district, such the landowners may be are considered the same as original petitioners in making changes of boundaries;.

(c)(iii) what lands within the district, as reported by them, will be injured by the proposed work, if any, and they shall therein award to each tract, lot, easement, or interest, by whomsoever held, the amount of damages which they shall determine will be caused to the same tract, lot, easement, or interest by the proposed work;

(d)(iv) what lands, (including improvements when improvements receive benefits), and what easements, irrigation ditches, cities, towns, counties, individuals, and other corporations and persons should be assessed for the payment of any part of the cost of constructing the proposed drains, levees, or other facilities, any repairs thereto, and maintenance thereof to the proposed drains, levees, or other facilities, and the incidental expenses attached to the establishment of such the drainage district;

(e)(v) the total amount, as near as they can determine, that said the proposed work will cost, which cost shall include including all incidental expenses, the reasonable cost of organizing said the district, the costs of proceeding, and all probable damage to lands, both within and without outside the district, together with a reasonable attorney fee fees for the petitioners, which cost will hereinafter be referred to as cost of construction in this section.

(2) If the cost of construction of any particular part of the proposed work so proposed to be done should be is assessed upon any particular tract or tracts, or lot or lots of land, including improvements, where the same are benefited or upon any and the construction benefits a corporation or corporations, the commissioners shall so specify the benefit, and in their report they shall fix and determine the sums which should be assessed against said the tracts, lots, and corporations and assess such the sum against said the tracts, lots, and corporations.

(3) If any an individual, association of individuals, or corporation would, in the judgment of said the commissioners, derive special benefits from the whole or any part of such the proposed work, the commissioners shall so report and assess those benefits and assess against the recipient thereof of those benefits its proportionate share of the costs of said the proposed work. The word "corporation", whenever contained in this chapter, shall be construed to include includes:

(a) railroad companies or the Montana railroad development authority;

(b) other private and quasi-public corporations of all kinds;

(d) cities;

(e) villages;

(f) other drainage districts; and

(g) counties.

(4) They The commissioners shall apportion and assess the part of this the cost of construction, not assessed as above under subsection (2) or (3), against the several benefited tracts, lots (, including improvements when the same tracts or lots are benefited), and easements in said the drainage district, in proportion to the benefits which they have assessed against the same benefited tracts, lots, and easements, by setting down opposite each tract, lot, or easement the sum which they assess assessed against the same tract, lot, and easement for construction. The assessments which together that make up the cost of construction, as above defined, are herein referred to as assessments for construction.

(5) The commissioners shall further report to the court the probable cost of keeping said the proposed work in repair after it is completed.

(6) They shall include in their report said The report must include a map, plans, and other specifications and file the same with their report."

Section 116. Section 85-8-366, MCA, is amended to read:

"85-8-366. Drains on railroad lands. (1) Said The commissioners shall have the right to lay out and construct all necessary drains, ditches, and levees across any railway right-of-way or yards in their district. Any The Montana railroad development authority or a railway company whose with right-of-way or yards cross crossing the line of any proposed drain, ditch, or levee shall open its right-of-way or yards and permit such the drain, ditch, or levee to cross the same right-of-way or yards as soon as said the drain, ditch, or levee is constructed to such the right-of-way.

(2) Every A drainage district shall be is liable to the railway company or the Montana railroad development authority whose right-of-way or yard any of its drains, ditches, or levees cross for the reasonable cost of the culverts and bridges made necessary by said the drain, ditch, or levee crossing said the right-of-way or yards but not of more expensive character than the average other culverts and bridges on said the division of railway crossing streams or ditches of approximately the same width and depth and within 100 miles of said the district ditches.

(3) Upon receiving 15 days' notice in writing, any the Montana railroad development authority or a railway company in whose with a right-of-way or yard any such where a drain, ditch, or levee is laid out shall open its right-of-way or yards and permit said the commissioners and their contractors, agents, and employees to construct said the drain, ditch, or levee or to repair, maintain, or clean out same the drain, ditch, or levee across said that crosses the right-of-way or yards. For every day after the end of said the 15 days that said the railroad company or the Montana railroad development authority fails to open its said right-of-way or yard, as hereinbefore required by this section, it shall forfeit forfeits $25 to said the drainage district, to be collected in an action, as other forfeitures are collected, or set off against any to be used to offset damages that have been awarded to such the company or the authority. If said railway the company or authority fails to open its right-of-way or yard along the line of said the drainage district, drain, ditch, or levee, the commissioners may, at any time after the expiration of said the 15 days, open such the right-of-way and yard along the line of said the drains, ditches, and levees and construct the same drains, ditches, and levees."

Section 117. Repealer. Section 2-15-2511, MCA, is repealed.

Section 118. Transition. If an appropriation is provided to the rail service competition council for the 2011 biennium and if the council is eliminated pursuant to [section 117], then the appropriation may be used by the Montana railroad development authority pursuant to [sections 1 through 20].

Section 119. Notification to tribal governments. The secretary of state shall send a copy of [this act] to each tribal government located on the seven Montana reservations and to the Little Shell Chippewa tribe.

Section 120. Codification instruction. [Sections 1 through 20] are intended to be codified as an integral part of Title 2, chapter 15, and the provisions of Title 2, chapter 15, apply to [sections 1 through 20].

Section 121. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

Section 122. Effective date. [This act] is effective on passage and approval.

- END -

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