SALE OF STATE RAIL LINES S.B. 1536: COMMITTEE SUMMARY
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Senate Bill 1536 (as introduced 9-23-08)
Sponsor: Senator Jud Gilbert, II
Committee: Transportation


Date Completed: 9-23-08

CONTENT The bill would amend the State Transportation Preservation Act to do the following:

-- Require a local unit of government that purchased a portion of a State-owned rail line to ensure that the portion remained viable for future rail use.
-- Exclude a portion of a segment located in Petoskey from the Ann Arbor and Northwest Michigan system.

The Act permits the Michigan Department of Transportation (MDOT) to sell or lease segments of State-owned rail lines specified in the Act.


Under the bill, if MDOT sold a portion of a segment to a local unit of government, the purchase agreement would have to contain restrictions on the use of the property that assured that it remained viable for future rail use and that, upon failure of the purchaser to meet that requirement, the property would revert to MDOT.


The rail lines specified in the Act include the Ann Arbor and Northwest Michigan system, which means the rail lines owned by the State between Durand and Ann Arbor, between Owosso and Thompsonville, between Cadillac and Petoskey, between Walton Junction and Traverse City, between Grawn and Williamsburg, and between Owosso and St. Charles.


The bill would revise that description by excluding the portion of the segment between Cadillac and Petoskey that is located in Petoskey north of Emmet Street.


MCL 474.60 Legislative Analyst: Curtis Walker

FISCAL IMPACT
The bill would have no fiscal impact on State or local government.

Fiscal Analyst: Debra Hollon

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1536/0708