LEGISLATIVE BULLETIN – April 7, 2003

SB 2358, Railroad lease and indemnification, passed the House 89-3 last week.  It now goes to conference committee to resolve differences between what the Senate and House passed.  Members of the conference committee are Senators Trenbeath, Nething, and Taylor; and Representatives Weisz, Hawken and Delmore.  If any of these people are in your districts and/or you know them please contact them as soon as possible and ask that they support Grain Dealers’ clarifications to the present bill.  One major item we are trying to get into the bill is a specific exemption for elevators from FELA liability.  FELA is the Federal Employer’s Liability Act.  It is similar to workers compensation for railroad employees, although much more generous.  We do not want to have any responsibility for injuries to railroad workers that are not our fault.  Another matter is language we have submitted to make sure responsibility for any environmental damage rests with the party who caused it, whether that be railroad or grain elevator.

As the bill now stands, it limits the amount of general liability insurance an elevator must carry for the benefit of the railroad.  It also extends the Public Service Commission’s authority over lease rates to sales of lease property.  See North Dakota Century Code 60-06 on pages 141-142 of your 2003 ND elevator directory. 

SB 2008, the PSC budget including money for investigation into a railroad rate complaint, has passed the House Appropriations Committee.  Unfortunately the committee cut the $250,000 funding down to $200,000, and said the PSC must raise the other $50,000 from other sources before it can start to spend the $200,000.  This puts the PSC in the role of fund-raiser instead of focusing on the rate case immediately.  It is not known whether ag organizations have the wherewithal or authority to commit funds to a state agency for this purpose.  Another problem with this approach is that donors will likely want a hand in the complaint process, thus complicating matters for the PSC.  The Senate Appropriations Committee had authorized the full $250,000 with no strings attached, and it put an emergency clause on it so work could be started right away.  Senate Appropriations Committee members should be contacted immediately, especially Senators Schobinger, Christmann and Mathern, and encouraged to not concur with the House reduction and attached strings. 

HB 1486, the wheat checkoff bill, appears resolved.  The conference committee met last Friday.  Representative Gene Nicholas, an ardent proponent of the Grain Growers and Durum Growers receiving money from the wheat checkoff, vigorously questioned Commission Chairman Larry Lee, Vice Chairman Harlan Klein and Administrator Neal Fisher about their plans and timetable to divert funds to those groups.  The Senate had amended the bill to say the Commission “may” spend up to two mills of the 10 mill checkoff on domestic policy matters or contract with grower groups for that purpose.  The Wheat Commission representatives said domestic policy would be considered along with all the other Commission programs and given an appropriate ranking.  The Senators were pretty well dug-in with their position and so the committee agreed that the House should accede to (go along with) the Senate amendments.  End result is the checkoff remains the same at a penny per bushel and no diversion of funds to grower groups is mandated in statute.  That is the position taken by the Wheat Commission and Grain Dealers.

HB 1372, blocking railroad crossings, is still in play.  The House would not concur with the Senate amendments.  A conference committee will be meeting.  Your Association continues to work for local solutions to these problems rather than a one-size-fits-all “remedy” from Bismarck. 

HB 1197, the credit sale indemnity fund bill, has had some cleanup language amendments attached to it.  It appears headed for final passage by both chambers. 

Session nearing end.   Will it go another two weeks or three weeks?  Matching up the available funds with the requests is not an easy job, and will be the biggest hurdle until the final gavel.  The Constitutional deadline of 80 days in session ends May 1.  They can’t go beyond May 1.  There is no “covering the clock” so that the final day goes on for days.  This happened in the past.