Senate Bill 2847

AN ACT TO AUTHORIZE EACH TOWN IN THE STATE OF MISSISSIPPI WITH A SHORT-LINE RAILROAD PARTIALLY WITHIN ITS TOWN LIMITS TO CARRY OUT AND IMPLEMENT, BY AND THROUGH ITS GOVERNING AUTHORITIES, THE ACQUISITION, RESTORATION, CONSTRUCTION, OWNERSHIP, OPERATION AND DISPOSITION OF SUCH SHORT-LINE RAILROAD; TO DEFINE TERMS; TO PROVIDE FOR THE REVERSION OF THE SHORT-LINE RAILROAD TO THE PRIOR OWNER IF A SUCCESSOR GOVERNING AUTHORITY OF THE TOWN CHOOSES TO TERMINATE THE SHORT-LINE RAILROAD PROJECT OR TRANSFER OWNERSHIP OF AN ACQUIRED SHORT-LINE RAILROAD; THE ENUMERATION OF ANY SPECIFIC RIGHTS AND POWERS CONTAINED IN THIS ACT SHALL BE CONSTRUED BROADLY TO EFFECTUATE THE PURPOSES OF THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act:

(a) "Governing authorities" means the duly elected mayor and board of aldermen or council, as applicable, of a town.

(b) "Prior owner" means the entity that conveyed the short-line railroad to the town. "Prior owner" includes any subsidiary, parent company, assignee, licensee or successor in interest of the prior owner.

(c) "Short-line railroad project" means any combination of the acquisition, restoration, construction, ownership, operation, maintenance and disposition of a short-line railroad by a town.

(d) "Short-line railroad" means a rail line less than fifty (50) total route miles in length together with the line’s corresponding right of way, fixtures, facilities and related improvements, and that, as an independent operating concern, would qualify under the standards of the U.S. Surface Transportation Board as a Class III rail carrier under 49 C.F.R. Section 1201 (1-1).

(e) "Town" means a municipal corporation existing with the State of Mississippi classified as a town under Section 21-1-1, with a short-line railroad partially located within its municipal boundaries.

SECTION 2. (1) A town, acting through its governing authorities, may:

(a) Undertake a short-line railroad project; and

(b) Acquire a short-line railroad, whether such short-line railroad relates to real property within or without the corporate limits of the town.

(2) (a) Acquisition of a short-line railroad under subsection (1)(b) of this section shall be on such terms and conditions and for such considerations deemed by the governing authorities, in their sole determination to be in the best interest of the public and in accordance with the premises and provisions of this act.

(b) If a successor governing authority of a town chooses to terminate the short-line railroad project or transfer ownership of an acquired short-line railroad, the short-line railroad shall revert to the prior owner.

(c) The acquisition shall be evidenced by a resolution duly adopted and entered on the minutes of the governing authorities.

SECTION 3. In effectuating the purposes of this act, a town may:

(a) Oversee all aspects of a short-line railroad project, including, without limitation, entering into and executing agreements with planning and development districts and private third parties for project management and consulting services associated with any and all aspects of the short-line railroad project, entering into and executing such agreements with third-party contractors for the restoration and construction of the short-line railroad and any improvements thereto, and entering into and executing such agreements with third-party contractors for the maintenance of the short-line railroad, in each case as the governing authorities deem necessary or advisable to carry-out the short-line railroad project, whether such restoration, construction and maintenance shall occur within or without the corporate limits of the town.

(b) Enter into and execute such agreements with third-party rail line operators for the operation of the short-line railroad that is the subject of the short-line railroad project, on such terms and conditions the governing authorities deem necessary, in the best interest of the public or advisable to carry-out the short-line railroad project, whether such operation shall occur within or without the corporate limits of the town.

(c) Engage additional third parties and enter into such agreements reasonably necessary or required for the short-line railroad project, and to acquire, purchase, install, lease, finance, construct, own, hold, equip, control, maintain, use, operate and repair structures and equipment necessary and convenient for the planning, development, use, operation and maintenance of the short-line railroad that is the subject of the short-line railroad project, including, but not limited to, utility installations.

(d) Sell, lease, trade, exchange, encumber or otherwise dispose of the short-line railroad that is the subject of the short-line railroad project and structures and equipment related thereto to individuals, firms or corporations, public or private, for all types of utility, industrial, commercial, agricultural or other economic development uses upon such terms and conditions, for such consideration, and with such safeguards as will best promote and protect the public interest, convenience and necessity, and to execute options, rights of first refusal, deeds, leases, contracts, access or use agreements, easements and other legal instruments necessary or convenient therefor.

(e) Employ engineers, attorneys, accountants, consultants and such executive and administrative personnel and other employees or independent contractors as shall be reasonably necessary to carry out the short-line railroad project and the duties and authority authorized by this act, to determine their qualifications and duties, and to establish compensation and other employment benefits as may be advisable to attract and retain proficient personnel.

(f) Buy, lease, sell, convey and do all other necessary business transactions for carrying out the short-line railroad project and to do all acts necessary and convenient to operate and carry out the duties of such town pursuant to such short-line railroad project.

(g) Take all actions and expend any such state, federal or other funds of the town as necessary to carry out any action or agreement authorized pursuant to this act for the short-line railroad project.

(h) Accept from any public or private agency, or from any individual, grants for or in aid of the short-line railroad project.

(i) Receive and accept contributions from any source of money or property or other things of value to be held, used and applied only for the purposes for which such grants or contributions may be made.

(j) Apply for and accept grants and loans from the State of Mississippi or the United States or any agency thereof.

(k) Contract with any agency of the State of Mississippi, or any state adjacent thereto, and the United States in furtherance of a short-line railroad project.

(l) Authorized and empowered to adopt any and all lawful resolutions, orders and ordinances, to execute such documents, contracts, leases, certificates and indentures.

(m) Do and perform any and all acts necessary and requisite to carry out the purposes of this act.

SECTION 4. (1) The enumeration of any specific rights and powers contained in this act shall be construed broadly to effectuate the purposes of this act.

(2) Nothing in this act should be construed to limit, restrict or otherwise alter the duties, responsibilities and authority of a governing authority as provided under the any provision of law, rule, regulation or the Mississippi Constitution of 1890.

SECTION 5. This act shall take effect and be in force from and after its passage.