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This entry was published on 2014-09-22
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SECTION 18
Acquisition of abandoned railroad transportation property
Transportation (TRA) CHAPTER 61-A, ARTICLE 2
§ 18. Acquisition of abandoned railroad transportation property. 1.
Notwithstanding the provisions of any general, special or local law to
the contrary, the commissioner shall have a preferential right to
acquire, for and in behalf of the people of the state of New York, for
use in the future for transportation purposes, as such purposes are set
forth in this chapter, the highway law or the canal law, any property as
defined in subdivision six of this section and which has been abandoned
for railroad transportation purposes as defined in subdivision two of
this section. No property owner shall dispose of any such property
without having first obtained notification from the commissioner that
the preferential right of acquisition granted under this section does
not apply, or a release of such preferential right from the
commissioner. Conveyances of property in violation of this section shall
be null and void. Acquisition of property pursuant to this section shall
be in the manner provided by section thirty of the highway law. No
acquisition shall be made until the director of the budget shall have
issued a certificate of availability of funds therefor. Before any
property is acquired pursuant to this section, the commissioner shall
determine that it is in the best interests of the state to acquire such
property for use in the future for transportation purposes.

1-a. The department of transportation is hereby designated the
official state agency to receive all notifications from the United
States department of transportation or any other federal or state agency
in regard to discontinuance of service or railroad property abandonment
proceedings, including notification of applications from railroad
companies for any such purposes.

1-b. The department of transportation shall promptly inform in writing
all interested state agencies, transportation authorities, and every
county, city, town and village in which such property is located and the
appropriate entity designated by the governor pursuant to title IV of
the federal intergovernmental cooperation act of nineteen hundred
sixty-eight and the federal office of management and budget circular
A-98 of (a) the issuance of any certificate from the United States
department of transportation or other federal or state agency
authorizing discontinuance of railroad service or abandonment of
railroad transportation property, (b) approval of discontinuance of
service or a determination of abandonment of railroad transportation
property pursuant to this section, and (c) the receipt of an application
to release a preferential acquisition right to railroad transportation
property pursuant to this section.

1-c. Whenever a property owner intends to dispose of abandoned
railroad transportation property, it shall notify the department of
transportation in writing of its intention. Upon receipt of such
notification, the department of transportation shall have ninety days to
make a determination and notify the property owner as to the
applicability of the preferential right of acquisition granted under
this section, except that this period may be suspended by the department
upon its finding that the property owner has not submitted information
sufficient to enable the department to make its determination. If
suspended, this period will resume upon receipt of this required
information. In the event the department fails to notify the property
owner of its determination, the preferential right of acquisition shall
be deemed not to apply. The department shall inform the appropriate
state agencies, every metropolitan or regional transportation authority
and every county, city, town and village in which such railroad property
or portion thereof is located, of the intention of the property owner
and the department's finding of applicability of the preferential right
of acquisition. If notified by the department that the preferential
right of acquisition does not extend to the subject property, or the
department has not notified the property owner of its determination
prior to the expiration of the foregoing ninety day period,
notwithstanding any suspension, the property owner shall not enter into
a binding contract to sell the property within forty-five days after
this notification by the department. Such state agencies, metropolitan
or regional transportation authorities, and counties, cities, towns and
villages shall have preferential acquisition rights to be determined as
herein provided. No state agency, metropolitan or regional
transportation authority, county, city, town, or village shall have any
preferential right of acquisition unless specifically authorized in
writing by the department. Within a reasonable time thereafter, any
agency of government which intends to exercise a preferential
acquisition right for such property shall notify the department of
transportation in writing. Within a reasonable time, not greater than
one hundred twenty days after receipt of such notification by the
property owner, the department of transportation shall notify the
property owner in writing whether the department of transportation
intends to exercise its preferential acquisition right under this
section or, if not, whether it has determined that any other agency of
government has been authorized by it to exercise a preferential
acquisition right to such property. If the department of transportation
notifies the property owner that it does not intend to exercise its
right and that it has not authorized any other state or local agency of
government to so exercise its right, the commissioner shall issue the
property owner a written release of the preferential acquisition rights
granted under this section. In the event the department fails to provide
notice of the intent to release the preferential right of acquisition,
such right shall be deemed to have expired. If the department of
transportation, or any other state or local agency of government shall
be qualified to exercise such preferential acquisition right, the
department of transportation shall notify the property owner of such
intention and the property owner shall not dispose of such abandoned
railroad transportation property without first having obtained a release
of the preferential right from the department of transportation. There
shall be good faith bargaining between the property owner and the
department or any party of interest either authorized by the department
to exercise the preferential right of acquisition or notified by the
department as to the inapplicability of the preferential right of
acquisition. The department of transportation shall issue a written
release of the preferential acquisition right within one hundred eighty
days after demand by the property owner, or such right will be deemed to
have been expired. The department shall make a good faith effort to
issue such release.

1-d. Whenever a conflict occurs between one or more agencies of
government as to the exercise of a preferential right, the department of
transportation shall in the exercise of its sole discretion resolve such
conflict and make a prompt determination of the reasonable and proper
order of priority with respect to the same. In making such
determination, the department shall take into consideration the
provisions of the comprehensive state-wide master transportation plan
and its actions shall be consistent to the extent practicable with the
effectuation of all state plans, policies and objectives.

1-e. The commissioner of transportation shall promulgate rules and
regulations consistent with and for the purpose of adequately
implementing the foregoing subdivisions.

2. For the purposes of this section, property shall be deemed to be
abandoned for railroad transportation purposes (a) when, where required
by law, a certificate of abandonment of the railroad line situate
thereon has been issued by the United States department of
transportation and/or any other federal or state agency having
jurisdiction thereof; or (b) when such a certificate of abandonment is
not so required and the use of such property for railroad transportation
purposes has been discontinued with the intent not to resume. Intent not
to resume may be inferred from circumstances. Non-use of the property
for railroad transportation purposes for two consecutive years shall
create a presumption of abandonment. When use of such property for
railroad transportation purposes has been discontinued and upon request
of the property owner or his own motion, the commissioner shall
undertake an investigation thereof, which may include consultation with
the United States department of transportation, and shall render a
determination as to whether or not (a) the property owner has definite
plans for the use of such property for purposes ordinarily associated
with the safe and normal operation of a railroad or associated
transportation purposes; (b) such property continues to be suitable for
such railroad transportation purposes; and (c) such property is
necessary, either presently or in the future, for such railroad
transportation purposes. Such property shall be deemed to be abandoned
for railroad transportation purposes if the commissioner shall determine
that (a) the property owner has no definite plans for the use of such
property for purposes ordinarily associated with the safe and normal
operation of a railroad or associated transportation purposes; or (b)
such property is no longer suitable for such railroad transportation
purposes; and (c) such property is not necessary, either presently or in
the future, for such railroad transportation purposes. The commissioner
shall render such determination within ninety days after the
commencement of such investigation and such determination shall be
conclusive except that if the property is determined not to be so
abandoned such determination shall not preclude the undertaking of a
subsequent investigation concerning the same property. Sales of
abandoned railroad transportation property for continued or resumed rail
transportation use may be exempted at the commissioner's discretion from
the preferential right of acquisition. This section shall not apply to
the subsequent resale of property lawfully acquired subject to the
provisions of this section as then applicable, except when the
subsequent sale involves property previously exempted from this section
by the commissioner.

3. The expense of the acquisition of property including the cost of
making surveys and preparing descriptions and maps of property to be
acquired, and of administrative duties in connection therewith, serving
notice of appropriation, publication, making title searches, appraisals
and agreements, and examinations and readings and approval of titles
made by the attorney-general, expenses incurred by the commissioner or
the attorney-general in proceedings for removal of owners or occupants,
and expenses incurred by the commissioner in connection with the
management and supervision of the property, shall together be deemed to
constitute the cost of property acquired pursuant to this section. The
comptroller is hereby authorized to charge against the moneys
appropriated for highway or other transportation purposes and to reserve
therefrom such sums as may be sufficient to defray the necessary
expenses to be incurred by the attorney general for examination,
readings and approval of titles, upon the filing with him by the
attorney general from time to time of a certificate or certificates
approved by the commissioner setting forth such estimated expenses. Such
expenses shall be paid from the funds so reserved after audit by the
state comptroller.

4. Any moneys received by the commissioner from rentals or other
sources of revenue in connection with the management, operations,
occupancy, use or the sale of or exchange of property, under this
section, that has been acquired by the commissioner pursuant to this
section shall be deposited in the treasury of the state to the credit of
the capital construction fund.

5. The commissioner may determine whether any property acquired
pursuant to this section may be, in whole or in part, sold or exchanged
on terms beneficial to the state, and in all cases of such
determination, he may, notwithstanding the provisions of any general,
special or local law, so dispose of such property. In order to carry any
such sale or exchange into effect, the commissioner of transportation is
hereby authorized to execute and deliver, in the name of the people of
the state, a quitclaim of, or a grant in and to, such property. Each
such instrument of conveyance shall be prepared by the attorney general
and before delivery thereof, shall be approved by him as to form and
manner of execution.

6. The term "property" as used in this section means all abandoned
railroad property, except:

(a) property noncontiguous to line rights of way and yards, except
when such property has been made noncontiguous as a result of a previous
sale or release of the preferential right, and

(b) side and spur track properties not greater than one-fourth mile in
length, except when sales of such property would make adjoining rights
of way noncontiguous.

7. The commissioner, when he deems it necessary, may in the manner
provided by subdivision twelve of section thirty of the highway law,
obtain possession of any property acquired pursuant to this section.

8. The commissioner, in the manner provided by subdivision thirteen-c
of section thirty of the highway law, shall manage and receive fair and
reasonable value for the holding, use or occupancy of property acquired
pursuant to this section.

9. The provisions of this section shall not apply to a railroad
company owned and operated by a municipal corporation.