LEGISLATIVE BULLETIN – February 16, 2005

Congratulations to the North Dakota House of Representatives for passing HB 1370 regarding railroad fuel surcharges by a vote of 91-0 on Tuesday February 15.

            This happened for three reasons: 1.  The rightness of our cause, 2. The contacts many of you and other ag groups made with legislators, and 3. An increasing realization and disgust with how rail customers are taken advantage of.

      HB 1370 now moves over to the Senate Transportation Committee.  Senators serving there are Tom Trenbeath of Cavalier, Duane Mutch of Larimore, Duane Espegard of Grand Forks, Dave Nething of Jamestown, Dennis Bercier of Belcourt, and John Warner of Ryder.  It’s not too early to talk to them about it.

            HB 1370 prohibits “assessment of a railroad fuel surcharge on a shipment of commodities originating in this state if the surcharge is not assessed in a region, zone, or area on a per car basis or if the surcharge exceeds on a per car basis the surcharge on a carload shipment of the commodities originating in the same or similar region, zone, or area.”  This language can be amended if necessary. 

            Funding for the railroad rate complaint is in the Public Service Commission’s budget, HB 1008.  The dollar amount started out at $900,000.  Then it was doubled.  Then there was talk of reducing it.  As it stands today the amount is $1.2 million.  This bill was given a Do Pass recommendation by the House Appropriations Committee yesterday.  It could be on the House floor for final vote later today.  You are hereby urged to contact the Representatives from your district, and any others you know, to urge support for HB 1008. 

            Another rail-related bill is SB 2405 regarding FELA liability.  It passed the Senate 47-0 last week.  The railroads can be expected to continue their opposition over in the House.  FELA is not the easiest thing to explain, but here is an analogy.  Imagine that you are business owner and you hire a roofing contractor to put a new roof on your building.  One of his workmen is injured because of the contractor’s shoddy ladder.  But YOU are supposed to be carrying the insurance to cover that disability claim that is not your fault.  However, your insurance company does not provide such coverage and so YOU are stuck paying it out of your own pocket.  This is the situation elevators find themselves in with FELA.  Rather than go into greater detail here, we’ve posted on the www.ndgda.org website the SB 2405 Testimonies on FELA from insurance agent Larry Ash with Security Insurance Agency, insurance underwriter Barb Bierbrauer of Ag States Agency and Steve Strege, NDGDA.  If you don’t have internet access and want to read that just call and we will get it to you somehow.