LEGISLATIVE BULLETIN – March 3, 2005

TWO IMPORTANT BILLS TO BE HEARD ON FRIDAY
Open for anyone to watch or testify.

SB 2405, on FELA liability is up for hearing in the House Agriculture Committee on Friday March 4 at 9:00 a.m.  Tony Johannesen will be testifying for Grain Dealers.  Barb Bierbrauer of Ag States Agency is scheduled to testify on behalf of grain elevators.  Testimony from agent Larry Ash on behalf of grain elevators will be given.  The Committee is unlikely to take final action on the bill on Friday.  That is more likely to come next week Thursday or Friday. However, your contacts with House Agriculture Committee members can begin anytime.  They are listed on page 38 of your Lawmakers of ND book.

See SB 2405 Testimonies on FELA, on www.ndgda.org for details.

HB 1370, the bill on railroad fuel surcharges, will be heard in the Senate Transportation Committee at 9:30 a.m. Friday March 4.  Your Association will be represented.  Grain elevators and farmers need state government’s help in putting a lid on this exploitation.  Using BNSF’s own numbers from its 2004 annual report, it can be shown that fuel surcharges on some grain movements, both east and west, exceed the full cost of the fuel consumed.  Fuel cost is already in the rate, and then we are getting nailed for it again in the surcharge.  And then the railroad testifies that it is not recouping its increased fuel costs. 

The BNSF assesses fuel surcharges on only half of its revenue base.  Ag products are among those assessed.  Are we being asked to pay for the other 50%? 

BNSF says increased fuel costs are adversely impacting its earnings.  It impacts everyone else too, and most buyers can’t pass it on in a surcharge.  In the fourth quarter of 2004 BNSF reported all time record earnings, all time record freight revenues, and all time record operating income. 

When this bill was heard in the House Transportation Committee a month ago at least one of the railroads said fuel surcharges are a complex issue and that they are working on the situation.  If this situation was not working in the railroads’ favor we might see some really quick action.

Please contact members of the Senate Transportation Committee.  They are shown on page 36 of your Lawmakers of North Dakota book. 

HB 1008, PSC budget and funding for the railroad rate complaint, was heard in Senate Appropriations on Monday February 28.  The hearing went well.  When questioned why North Dakota rates are so high, a BNSF spokesman said those rates are not illegal.  The purpose of a railroad rate complaint is to have the Surface Transportation Board find rates like that illegal and force them down.