Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 676-H.F.No. 1486 
           An act relating to railroads; providing reporting and 
          disclosure requirements for railroad acquisitions; 
          preserving contracts between acquiring railroad 
          carriers and shippers, governmental entities, and 
          labor organizations; establishing priority order for 
          hiring by the acquiring carrier; proposing coding for 
          new law in Minnesota Statutes, chapter 222. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [222.85] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purposes of sections 1 to 
4, the following terms have the meanings given them in this 
section. 
    Subd. 2.  [ACQUIRING CARRIER.] "Acquiring carrier" means a 
business entity that acquires by purchase, lease, or other 
device a line of railroad, except carriers acquiring an 
abandoned line, with the intent of operating it for the purpose 
of continuing the commercial transportation of goods or 
passengers over the line. 
    Subd. 3.  [LABOR ORGANIZATION.] "Labor organization" has 
the meaning given it in the Labor-Management Reporting and 
Disclosure Act, United States Code, title 29, section 402, and 
certified under the Railway Labor Act, United States Code, title 
45, sections 151 to 163. 
    Subd. 4.  [DIVESTING CARRIER.] "Divesting carrier" means a 
common carrier or business entity engaged in transportation of 
goods by rail that divests a line of railroad by sale, lease, or 
other device. 
     Sec. 2.  [222.86] [ACQUISITION REPORTING AND DISCLOSURE.] 
    Subdivision 1.  [NOTICE OF EXEMPT TRANSACTION.] An 
acquiring carrier shall submit written notification to the 
attorney general and the commissioner of transportation of their 
intent to initiate an exempt transaction under Code of Federal 
Regulations, title 49, section 1150, at least 14 days before 
filing a notice of exemption with the Interstate Commerce 
Commission. 
    Subd. 2.  [IDENTITY AND FINANCIAL INFORMATION.] The 
notification must designate the complete private or corporate 
identity of the acquiring carrier, the complete identity of the 
divesting carrier, and a thorough description of the line of 
railroad involved. 
    Subd. 3.  [APPLICABILITY TO REQUIREMENTS OF LAW.] Acquiring 
and divesting carriers shall attend conferences with the 
attorney general or the commissioner of transportation prior to 
filing a notice of exemption with the Interstate Commerce 
Commission.  The divesting and acquiring carriers shall respond 
to questions and requests for information related to the issue 
of whether the proposed transaction is consistent with the 
requirements of the Interstate Commerce Act, other applicable 
federal law, and state law.  Copies of the sale contract, market 
and feasibility studies, and full financial information as to 
the acquiring carrier must be provided at those conferences. 
    All information, submitted by the acquiring and divesting 
carriers as confidential, shall remain nonpublic data and 
private data on individuals in accordance with chapter 13 and 
shall not be divulged to any outside parties, except to the 
Interstate Commerce Commission as a part of a filing in relation 
to the proposed transaction.  The attorney general and the 
commissioner of transportation shall take the necessary steps to 
assure confidentiality. 
    Sec. 3.  [222.87] [PRESERVATION OF CONTRACTS AND LEGAL 
STATUS.] 
    Subdivision 1.  [SHIPPING CONTRACTS.] An acquiring carrier 
succeeds to and is bound by the contracts, agreements, and 
understandings between the divesting carrier and any shipper 
within this state for a period equaling the stated term of the 
contract or six months, whichever is greater. 
    Subd. 2.  [GOVERNMENT CONTRACTS.] An acquiring carrier 
succeeds to and is bound by the contracts, agreements, and 
understandings between the divesting carrier and the state of 
Minnesota and any governmental subdivision for a period equal to 
the stated term of the contract, agreement, or understanding or 
six months, whichever is greater. 
    Subd. 3.  [CONSTRUCTION.] This section does not alter, and 
shall not be construed to alter, the rights of all parties to 
renegotiate contracts under subdivisions 1 and 2 at any time 
mutually agreeable. 
     Sec. 4.  [222.88] [PRIORITY IN HIRING.] 
    An acquiring carrier under sections 1 to 3 shall give 
priority in hiring, based upon length of service on the affected 
rail line, to employees of the divesting carrier performing 
service in connection with the affected rail line.  To assert 
priority, the employee must be qualified by experience and 
training to perform the available job. 
    Approved April 27, 1988