Committee hears HB103 to add four railroad inspectors after 2024 derailments

Rep. Katie Zolinkoff opened the hearing on House Bill 103 by saying, “we are going to take some money from the general fund and we are going to statutorily appropriate it to funding, some new railroad inspectors for the PSC.” The bill would add four inspection positions to the Public Service Commission (PSC) rail program, which currently employs two motive‑power‑and‑equipment inspectors.

Zolinkoff told the committee the change responds to a legislative performance audit issued in October 2015 that recommended “increase its railroad safety inspection capability,” and to seven train derailments in Montana in 2024. She said the state has roughly 3,680 miles of railroad and argued the PSC’s current staffing level leaves inspection coverage inadequate.

Trevor Graff of the PSC described the agency’s risk assessment and said the commission and the interim Energy and Telecommunications committee worked together to scope the needed positions. Dan Sherwood, the PSC’s railroad program manager, gave operational detail: Montana participates in the Federal Railroad Administration’s State Safety Participation (Part 212) program; state inspectors are FRA‑certified after a year of training and annual recurrency classes; the PSC now covers MP&E (motive, power and equipment) only and lacks track, operating practices and hazmat disciplines. Sherwood summarized enforcement options ranging from advisory comments and defective‑condition notices to civil penalties and individual‑liability actions.

Sherwood said the PSC would allocate new positions geographically and by discipline if HB103 passes: an additional MP&E inspector based in Havre, one operating‑practices position with statewide coverage, and two track inspectors (east and west coverage), plus potential cross‑certification to broaden enforcement reach.

Steve Wade, an informational witness from BNSF, said the railroad “safety has always been and will continue to be our top priority,” noting BNSF operates more than 40 inspectors in Montana and is investing in technology that detects rail defects. Wade said passage of HB103 would not change BNSF’s commitment to safety.

Committee members pressed Sherwood and PSC witnesses about details federal law sets for inspections and penalties. Sherwood clarified the routine 24‑hour mechanical inspection for a locomotive is performed by railroads under federal regulation; civil penalties assessed under the Part 212 program are remitted to the FRA. Lawmakers also asked whether federal law would preclude charging railroads inspection fees; PSC witnesses said they did not have a definitive legal barrier in hand and deferred to counsel for final guidance.

Budget and funding questions were central. The fiscal note shows roughly $315,000 in 2026 tied to the new positions; the bill would direct an 8% allocation of an existing railcar‑owner tax to fund the new FTEs and related costs, the sponsor said. Zolinkoff and Graff told the committee they developed the funding percentage working with PSC staff; members asked for more detail about salary assumptions and historical appropriations history as the bill moves forward.

The chair concluded the hearing without recorded committee action on HB103; sponsors and PSC staff said they would provide follow‑up fiscal and technical detail upon request. The PSC representatives emphasized that additional state inspection capacity aims to complement federal oversight and private railroad programs by providing independent compliance verification and a formal avenue for employees and the public to report safety concerns.

Ending: The committee did not take final action on HB103 at this hearing; sponsors and PSC staff agreed to provide additional fiscal and technical materials to the committee before further consideration.