There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
CHAPTER 277 RAILROADS -- ORGANIZATION AND OPERATING REGULATIONS
277.400 Entities eligible to file declaration of state railbanking -- Use of property subject to declaration -- Claims of aggrieved persons.
Download pdfsubdivision or city of this state holding or acquiring a railroad corridor may
preserve the corridor for future railroad use while utilizing the right-of-way in the
interim for nonmotorized public recreational use by filing with the Secretary of
State a "Declaration of State Railbanking," concurrently serving a copy of the
declaration on the Transportation Cabinet. The declaration shall contain the name
and address of the filing entity, a textual description and map of the railroad
corridor being railbanked, a statement that the entity accepts full responsibility for
managing the corridor, for any legal liability arising out of the use of the corridor or,
if the entity is immune from suit, that the entity agrees to indemnify the railroad for
any liability arising out of the use of the corridor, and for the payment of all taxes
which may validly be assessed against the corridor, and a declaration that the
property is being railbanked in accordance with the provisions of Kentucky law in
that the corridor is held open for future restoration of rail service and that this
section only grants authority for the corridor to be utilized for nonmotorized public
recreational use during the interim. (2) Any property that is the subject of a declaration of state railbanking, including property held by easement, shall, during the period a declaration of state railbanking
remains in force, be deemed to be held for a railroad use and shall not revert to any
other form of ownership. Until rail service is restored over the corridor, the
declaration of state railbanking shall only authorize the use of the corridor for
public, nonmotorized recreational use, with associated infrastructure. However, a
declaration of state railbanking shall not preclude any public utility usage of the
corridor if that usage is otherwise permitted under other applicable law. For the
specific purpose of allowing railbanking under this section, an easement for railroad
use shall not be deemed abandoned until the person holding the easement conveys
the easement to another person for a nonrailroad use, title to the easement and the
underlying estate comes into the hands of the same owner by conveyance, the
easement owner files a disclaimer in the office of the county clerk of the county
where the property is situated disclaiming all interest in the corridor, or the
easement is declared abandoned by judicial decree. (3) After property is railbanked under this section, the property shall be held available for purchase by any bona fide purchaser for the restoration of rail service over the
property. The following requirements shall apply to any transfer of property in
contemplation of the restoration of railroad service:
(a) The entity that acquired the right to use the railroad corridor for a railtrail under this section or to whom that right had been subsequently transferred
shall be compensated for the fair market value of the corridor together with
any improvements erected thereon. Funds received by the entity under this
paragraph shall be held in trust for the benefit of the public; Page 2 of 2 (b) All required federal and state permits and authority to reactivate and operate a railroad over the corridor shall be obtained prior to the transfer of the property
for the contemplated railroad service restoration; (c) Adequate bond with good surety shall be posted ensuring that the railroad will be constructed, with the bond being used to cover the cost of restoring the
corridor to its physical condition prior to transfer of the railbanked corridor for
the contemplated railroad service restoration; and (d) The physical infrastructure necessary to operate the railroad, including tracks, ties, frogs, signaling equipment, grade crossings, and the like, shall be in place
one (1) year from the date of the transfer. Train service shall be in place and
operating two (2) years from the date of the transfer. If these timelines are not
met, the corridor and all associate physical improvements thereon shall
automatically forfeit to the ownership of the entity responsible for railbanking
the corridor under this section. (4) Any person aggrieved by the act of railbanking a railroad corridor under the provisions of this section shall bring their claims within one (1) year after the
declaration of state railbanking has been filed with the Kentucky Secretary of State.
Any entity against whom a claim is asserted may utilize as an offset or setoff to the
amount of any recovery those amounts in state or local taxes, together with interest
and penalties, that have not been paid on the value of the property through which
the claimant asserts title. (5) Any entity which caused a declaration of state railbanking to be filed shall cause the declaration to be vacated on the files of the Secretary of State upon the cessation of
use of the corridor as a nonmotorized public use trail or the reactivation of railroad
service over the corridor. Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 338, sec. 2, effective July 14, 2000.
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