HB 2602
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: TI DP 9-0-1-1
HB 2602: railroads; telecommunications corporations; wire-crossing agreements
Sponsor: Representative Dunn, LD 25
Caucus & COW
Overview
Outlines procedures and restrictions relating to a telecommunications corporation seeking to
place a line, wire or cable across a railroad right-of-way requesting and coming into a wire-
crossing agreement with the railroad. Establishes a one-time standard crossing fee of $1,250 for
each applicable crossing. Describes the process for either a railroad or telecommunications
company to petition the Arizona Corporation Commission (ACC) for instances relating to a
telecommunication corporation obtaining or requesting a wire-crossing agreement with a railroad.
History
The powers of railroad corporations are outlined in statute. Some of the prescribed powers
include:
1) the laying of a railroad not exceeding 200 feet wide?M<>CV, and the ability to construct
and maintain it with single or double track with the facilities the directors deem necessary
for the convenient use of the railroad;
2) the construction of railroad and telegraph lines across, along or upon any street, highway,
stream of water, or watercourse;
3) the transportation of persons and property on their railroads and the collection of
compensation; and
4) the taking of land and materials to be used in the construction and maintenance of railroad
and telegraph lines in the manner provided by law relating to eminent domain when the
land and material cannot be obtained through agreements with the owners (A.R.S. § 40-
809).
The right-of-way for railroad and telegraph lines of 100 feet on each side of the center line of the
track is granted in statute to railroad corporations over and through any of the lands belonging to
the state. When certain projects or other structures are required for the grade or other uses, a
greater width of land may be taken by the railroad corporation not exceeding 500 feet in width.
The right is granted to railroad corporations to locate, occupy and hold as much of the lands as
necessary for sites and grounds for watering places, stations and other buildings or structures
along the line of the railroad necessary for its operation (A.R.S. § 40-831).
Provisions
1. Requires a telecommunications corporation that intends to place a line, wire or cable across
a railroad right-of-way to request the railroad's permission for the placement. The request
must be in the form of a completed crossing application and include engineering
specifications. (Sec. 1)
2. States that on receipt of the application, the railroad and the telecommunications corporation
may enter into a binding wire-crossing agreement. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2602
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3. Specifies that unless the railroad provides written or electronic notice to the
telecommunications corporation that the proposed crossing is a serious threat to the safe
operations of the railroad or the current or future use of the railroad right-of-way or would
violate any applicable federal law, the railroad will:
a) approve the application within 35 calendar days after receiving the completed application
for a binding wire-crossing agreement; and
b) issue the permit or crossing agreement and schedule flagging to occur within 45 calendar
days after the approved application. (Sec. 1)
4. Stipulates that if the railroad does not respond to a completed crossing application in writing
within 30 calendar days of receiving the application, the telecommunications corporation may
petition the ACC to enter an order for an expedited wire-crossing permit. (Sec. 1)
5. Directs the ACC to enter the order within 15 calendar days after the petition is filed, with notice
of the order issued to the railroad and telecommunications corporation. (Sec. 1)
6. Describes that the expedited wire-crossing agreement allows a telecommunications
corporation to place a line, wire or cable across the railroad right-of-way within a public road
crossing in a manner that is not unreasonable or against the public interest and taking into
account the safety, access requirements and engineering of the railroad. (Sec. 1)
7. States that if a telecommunications corporation places a line, wire or cable across a railroad
right-of-way the telecommunications corporation must pay the railroad owner, manager, agent
or representative a one-time standard crossing fee of $1,250 for each crossing. (Sec. 1)
8. Maintains that in addition to the standard crossing fee, the telecommunications corporation
must reimburse the railroad for any actual flagging expenses associated with the placing on
the line, wire or cable. (Sec. 1)
9. Specifies the standard crossing fee is in lieu of any license fee or any other fees or charges
to reimburse the railroad for any expenses incurred as a result of the placing of the line, wire
or cable. (Sec. 1)
10. Directs the railroad to provide written or electronic notice to the telecommunications
corporation of an objection and the specific basis of the objection if a railroad objects to the
proposed crossing because the proposal is a serious threat to the safe operations of the
railroad or the current or future use of the railroad right-of-way or would violate any applicable
federal law. (Sec. 1)
11. States that if the parties make good faith efforts to attempt to resolve the objection and are
unable to, either party may petition the ACC for assistance through mediation or arbitration of
the disputed crossing application. (Sec. 1)
12. Requires the petition to be filed within 60 days after the objection is received and directs the
ACC to issue an order within 120 days after the petition is filed. (Sec. 1)
13. Declares that the ACC will assess the costs associated with a petition equitably among the
parties and specifies an order issued is subject to judicial review in the Superior Court in
Maricopa County. (Sec. 1)
14. Stipulates that if a railroad imposes additional requirements on a telecommunications
corporation for crossing the railroad's right-of-way, other than the crossing being a threat to
the safe operations of the railroad or railroad right-of-way or would violate any applicable
federal law, the telecommunications corporation may object to one or more of the
requirements. (Sec. 1) HB 2602
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15. Instructs the telecommunications corporation to provide written or electronic notice to the
railroad of the objection and the specific basis of the objection. (Sec. 1)
16. Asserts that if both parties make good faith efforts to resolve the objection and are unable to,
either party may petition the ACC for resolution or medication of the additional requirements.
(Sec. 1)
17. Requires the petition to be filed within 60 calendar days after the objection is received and
directs the ACC to issue an order within 120 calendar days after the petition is filed. (Sec. 1)
18. States that if a petition is filed the ACC will determine, after notice and opportunity for hearing
as prescribed by ACC rule, whether special circumstances exist that necessitate additional
requirements for placing the line, wire or cable. (Sec. 1)
19. Stipulates that the ACC will assess the costs associated with a petition equitably among the
parties and specifies an order issued is subject to review in the Superior Court in Maricopa
County. (Sec. 1)
20. Declares that a wire-crossing agreement is against the public policy of this state and
unenforceable if the agreement appears to indemnify, defend or hold harmless the railroad
from any liability for loss or damage resulting from the negligence or willful and wanton
misconduct of the railroad or its agents, employees or independent contractors responsible
for the railroad or has the effect of defending, indemnifying or holding harmless the railroad
from the negligence or willful and wanton misconduct of the railroad or its agents, employees
or independent contractors. (Sec. 1)
21. Specifies that the previous provision does not affect a provision, clause or covenant or
agreement in which the telecommunications corporation indemnifies, defends or holds
harmless a railroad against liability for loss or damage to the extent that the loss or damage
results from the negligence or willful and wanton misconduct of the telecommunications
corporation or its agents, employees or independent contractors who are directly responsible
to the telecommunications corporation. (Sec. 1)