1-1  By:  Sims                                              S.B. No. 641
    1-2        (In the Senate - Filed March 4, 1993; March 8, 1993, read
    1-3  first time and referred to Committee on State Affairs;
    1-4  April 19, 1993, reported favorably by the following vote:  Yeas 10,
    1-5  Nays 0; April 19, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Harris of Dallas                              x    
    1-9        Rosson             x                               
   1-10        Carriker           x                               
   1-11        Henderson                                     x    
   1-12        Leedom             x                               
   1-13        Lucio              x                               
   1-14        Luna               x                               
   1-15        Nelson             x                               
   1-16        Patterson          x                               
   1-17        Shelley            x                               
   1-18        Sibley             x                               
   1-19        West               x                               
   1-20        Whitmire                                      x    
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to rural rail transportation districts.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Section 5, Chapter 623, Acts of 67th Legislature,
   1-26  Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
   1-27  Statutes), is amended to read as follows:
   1-28        Sec. 5.  POWERS OF DISTRICT.  (a)  A rural rail
   1-29  transportation district is a public body exercising public and
   1-30  essential governmental functions and having all the powers
   1-31  necessary or convenient to carry out the purposes of this Act,
   1-32  including the powers granted in this section.
   1-33        (b)  A district has perpetual succession.
   1-34        (c)  A district may sue and be sued in all courts of
   1-35  competent jurisdiction, may institute and prosecute suits without
   1-36  giving security for costs, and may appeal from a judgment without
   1-37  giving supersedeas or cost bond.
   1-38        (d)  A district may acquire by grant, purchase, gift, devise,
   1-39  lease, or otherwise and may hold, use, sell, lease, or dispose of
   1-40  real and personal property, licenses, patents, rights, and
   1-41  interests necessary, convenient, or useful for the full exercise of
   1-42  any of its powers under this Act.
   1-43        (e)  A district may acquire, construct, own, operate, and
   1-44  maintain a system within its boundaries, both inside and outside
   1-45  the limits of incorporated cities, towns, and villages, and has the
   1-46  right to use the streets, alleys, roads, highways, and other public
   1-47  ways and to relocate, raise, lower, reroute, regulate, change the
   1-48  grade of, and alter the construction of any street, alley, highway,
   1-49  or road; any railroad track, bridge, or other facility or property;
   1-50  any gas transmission or distribution pipes, pipelines, mains, or
   1-51  other facility or property; any water, sanitary sewer, or storm
   1-52  sewer pipes, pipelines, or other facility or property; any electric
   1-53  lines, telegraph or telephone facility or property; any cable
   1-54  television lines, cables, conduits, or other facility or property;
   1-55  and pipelines and facilities, conduits and facilities, or other
   1-56  property whether publicly or privately owned, in the construction,
   1-57  reconstruction, repair, maintenance, or operation of the system.  A
   1-58  district shall pay the cost of any change made under this
   1-59  subsection and is liable for any damage to property occurring
   1-60  because of the change.
   1-61        (f)  A district has the right of eminent domain to acquire
   1-62  lands in fee simple and any interest less than fee simple in, on,
   1-63  under, or above lands, including, without limitation, easements,
   1-64  rights-of-way, rights of use of airspace or subsurface space.  The
   1-65  right may not be exercised in a manner that would unduly interfere
   1-66  with interstate commerce or unduly impair the neighborhood
   1-67  character of property surrounding or adjacent to the property
   1-68  sought to be condemned.  Eminent domain proceedings brought by a
    2-1  district are governed by Title 52, Revised Civil Statutes of Texas,
    2-2  1925, except as it is inconsistent with this Act.  Proceedings for
    2-3  the exercise of the power of eminent domain are commenced by the
    2-4  adoption by the board of a resolution declaring the public
    2-5  necessity for the acquisition by the district of the property or
    2-6  interest described in the resolution, and that the acquisition is
    2-7  necessary and proper for the construction, extension, improvement,
    2-8  or development of the system and is in the public interest.  The
    2-9  resolution of the district is conclusive evidence of the public
   2-10  necessity of the proposed acquisition and that the real or personal
   2-11  property or interest in property is necessary for public use.
   2-12        (g)  A district may enter into agreements with any other
   2-13  public utility, private utility, communication system, common
   2-14  carrier, or transportation system for the joint use of its
   2-15  facilities, installations, or properties within the district and
   2-16  establish through routes, joint fares, and, subject to approval of
   2-17  any tariff-regulating body having jurisdiction, divisions of
   2-18  tariffs.
   2-19        (h)  A district shall establish and maintain rents or other
   2-20  compensation for the use of the facilities of the system acquired,
   2-21  constructed, operated, regulated, or maintained by the district
   2-22  that are reasonable and nondiscriminatory and, together with grants
   2-23  received by the district, are sufficient to produce revenues
   2-24  adequate:
   2-25              (1)  to pay all expenses necessary to the operation and
   2-26  maintenance of the properties and facilities of the district;
   2-27              (2)  to pay the interest on and principal of all bonds
   2-28  issued by the district under this Act payable in whole or in part
   2-29  from the revenues, as they become due and payable; and
   2-30              (3)  to fulfill the terms of any agreements made with
   2-31  the holders of bonds or with any person in their behalf.
   2-32        (i)  A district may make contracts, leases, and agreements
   2-33  with, and accept grants and loans from the United States of
   2-34  America, its departments and agencies, the state, its agencies, and
   2-35  political subdivisions, and public or private corporations and
   2-36  persons, and may generally perform all acts necessary for the full
   2-37  exercise of the powers vested in it.  A district may acquire
   2-38  rolling stock or other property under conditional sales contracts,
   2-39  leases, equipment trust certificates, or any other form of contract
   2-40  or trust agreement.  Any revenue bond indenture may provide
   2-41  limitations on the exercise of the powers granted by this section,
   2-42  and the limitations apply so long as any of the revenue bonds
   2-43  issued pursuant to the indenture are outstanding and unpaid.
   2-44        (j)  A district may sell, lease, convey, or otherwise dispose
   2-45  of any of its rights, interests, or properties not needed for or,
   2-46  in the case of leases, not inconsistent with the efficient
   2-47  operation and maintenance of the system.  It may sell, lease, or
   2-48  otherwise dispose of, at any time, any surplus materials or
   2-49  personal or real property not needed for its requirements or for
   2-50  the purpose of carrying out its power under this Act.
   2-51        (k)  A district by resolution may adopt rules and regulations
   2-52  governing the use, operation, and maintenance of the system and
   2-53  shall determine all routings and change them whenever the board
   2-54  considers it advisable.
   2-55        (l)  A district may lease the system or any part to, or
   2-56  contract for the use or operation of the system or any part by, any
   2-57  operator.  A district shall encourage to the maximum extent
   2-58  practicable the participation of private enterprise in the
   2-59  operation of the system.  The provisions of Section 8 of this Act
   2-60  apply to any such private enterprise participant.
   2-61        (m)  A district may contract with any county or other
   2-62  political subdivision of the state for the district to provide rail
   2-63  transportation services to any area outside the boundaries of the
   2-64  district on such terms and conditions as may be agreed to by the
   2-65  parties.
   2-66        SECTION 2.  The importance of this legislation and the
   2-67  crowded condition of the calendars in both houses create an
   2-68  emergency and an imperative public necessity that the
   2-69  constitutional rule requiring bills to be read on three several
   2-70  days in each house be suspended, and this rule is hereby suspended,
    3-1  and that this Act take effect and be in force from and after its
    3-2  passage, and it is so enacted.
    3-3                               * * * * *
    3-4                                                         Austin,
    3-5  Texas
    3-6                                                         April 19, 1993
    3-7  Hon. Bob Bullock
    3-8  President of the Senate
    3-9  Sir:
   3-10  We, your Committee on State Affairs to which was referred S.B.
   3-11  No. 641, have had the same under consideration, and I am instructed
   3-12  to report it back to the Senate with the recommendation that it do
   3-13  pass and be printed.
   3-14                                                         Rosson,
   3-15  Vice-Chairman
   3-16                               * * * * *
   3-17                               WITNESSES
   3-18                                                  FOR   AGAINST  ON
   3-19  ___________________________________________________________________
   3-20  Name:  Tom C Massey                              x
   3-21  Representing:  South Orient Railroad Co Ltd
   3-22  City:  San Angelo
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