74-1415.01 Projects; council; investment of funds; powers and duties; hearing; investment committee; authorized; expenses; acquiring carrier; duty; annual report; contents.
74-1415.01. Projects; council; investment of funds; powers and duties; hearing; investment committee; authorized; expenses; acquiring carrier; duty; annual report; contents.(1) The council may invest funds for a light-density rail line acquisition, rehabilitation or improvement, operation, or rail facility construction project after the council finds, based upon the findings of the benefit-cost study and such additional investigation as the council makes and the council incorporates in its minutes, that:(a) The project has a ratio of benefits to costs which is greater than one as calculated in accordance with the benefit-cost methodology;(b) The proceeds of the investment will be used only to facilitate light-density rail line acquisition, rehabilitation or improvement, operation, or rail facility construction projects;(c) The project has a reasonable chance of success;(d) Participation by the council is necessary to the success of the project or the retention of associated rail service in the state;(e) The project has the reasonable potential to create or maintain employment within the state;(f) Others have already made or are contractually committed to make a substantial financial and time commitment to the project;(g) There is a reasonable possibility that the council will recoup at least its initial investment; and(h) Binding commitments have been made to the council for adequate reporting of financial data as determined by the council and for such control on the part of the council as is considered prudent over the management of the project so as to protect the investment, including, in the discretion of the council, the right of access to financial and other records relating to the project.(2) The council shall request a business plan, including a description of the project and its management, a proposed operating plan, and a statement of the amount, timing, and projected use of the capital required.(3) After receiving information from the division on the feasibility of a project pursuant to section 74-1419.02, the chairperson of the council shall designate one or more members of the council to personally inspect the fragment, section, or line to be acquired, rehabilitated or improved, operated, or constructed and report to the council. The inspection shall take into consideration the following factors: Cost of maintenance, estimated cost of future improvements, a description of traffic service provided, whether other facilities provide comparable service, and the relationship of the fragment, section, or line to an integrated light-density rail line system.(4) Prior to the council making a decision on a project, it may hold a public hearing on the proposed project. The council shall give written notice of the time and place of the hearing, not less than two weeks prior to the time of the hearing, to the political or governmental subdivisions or public corporations affected by the proposal.(5) In carrying out its functions under this section, the council shall create an investment committee to assist in evaluating potential investments. The membership of the investment committee may include both members and staff of the council and persons drawn from sources other than the council who are recognized for outstanding knowledge and leadership in their fields, all of whom shall serve at the pleasure of the council. Members of the investment committee shall be reimbursed for their actual and necessary expenses as provided in sections 81-1174 to 81-1177.(6) The council shall not make an investment in any light-density rail line rehabilitation or improvement project in excess of the amount necessary to own more than seventy percent of such project. This subsection shall not apply to the outright purchase and operation of a light-density rail line by the council.(7) The council shall adopt procedures to carry out this section.(8) An acquiring carrier using funds pursuant to the Light-Density Rail Line Assistance Act shall give priority in hiring to employees of the divesting carrier performing service in connection with the affected light-density rail line. To assert priority, the employee shall be qualified by experience and training to perform the available job.(9) The council shall submit an annual report to the Legislature detailing investments and purchases made pursuant to this section. The report shall include a statement for each project of the current amount invested in each light-density rail line and a statement for each acquisition or operation project of (a) the current market value of assets of the company operating each light-density rail line and the current salvage value of each such line, (b) the market value of the assets of the company operating each light-density rail line, (c) the salvage value of each light-density rail line at the time of the initial investment by the council, and (d) the number and market value of any light-density rail line being operated by the council. SourceLaws 1980, LB 507, § 21; R.S.1943, (1990), § 74-1421; Laws 1991, LB 783, § 23; Laws 1996, LB 463, § 22.