The bill impacts state laws by introducing a standardized process for wire crossings. Specifically, it establishes clear timelines for approval of crossing applications and penalties for railroads that fail to respond adequately. Additionally, it sets a flat standard crossing fee of $1,250 per crossing, as well as provisions for reimbursements of flagging expenses to ensure that railroads are compensated for their involvement in these crossings. This could streamline operations for telecommunications corporations while safeguarding railroad operations.
Summary
House Bill 2602 addresses wire-crossing agreements between railroads and telecommunications corporations in Arizona. The bill mandates that telecommunications companies must request permission from railroads before placing any lines, wires, or cables across railroad rights-of-way. The request is to be submitted in the form of a completed crossing application, which includes necessary engineering specifications. If the railroad does not oppose the request based on safety concerns, it is required to approve the application within a specified timeframe of thirty-five calendar days.
Contention
Notably, the bill contains provisions that declare any wire-crossing agreements attempting to indemnify railroads from their own negligence as unenforceable. This aspect of the bill is intended to align with public policy in Arizona regarding liability and safety. However, it may lead to disputes between railroads and telecommunications companies, particularly when safety objections are raised regarding proposed crossings or additional requirements are imposed. The dispute resolution process is outlined, allowing parties to petition the Arizona Corporation Commission for mediation or arbitration if disagreements arise.
Providing tax exemption eligibility for telecommunication, railroad, commercial and industrial machinery and equipment that is currently ineligible for tax exemption due to such equipment being acquired or transported into this state on or before June 30, 2006.
Urges and requests the House Committee on Commerce and the Senate Committee on Commerce, Consumer Protection, and International Affairs to study the effects that the railroads have on broadband deployment