BILL ANALYSIS



H.B. 1208
By: Cook
03-29-95
Committee Report (Unamended)


BACKGROUND

Federally regulated commercial train operators are required to
maintain liability insurance in the amount of $25 million per
occurrence.  Consequently, these operators require any other type
of train operator to carry the same amount of liability insurance
to operate a train on their trackage.  This places a hardship on
excursion train operators because they are operating for the sole
purpose of transporting tourists on scenic routes, and their
traveling speed does not exceed 40 m.p.h. at any given time.  The
requirement to carry $25 million per occurrence in liability
insurance makes it necessary for excursion train operators to
increase the ticket prices for their trips to an excessive amount
in an attempt to recover the cost of the liability insurance.  The
excessive amount of the tickets greatly reduces the demand for the
trips offered by the excursion train operators, and is detrimental
to the economic benefit provided by the passengers to the small
towns where the train stops along the route.

PURPOSE

This legislation limits the amount of liability insurance that must
be carried by an excursion train operator.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Creates Subsection (a) and (b) which provides that a
person may apply with the Comptroller for certification as an
excursion train operator, and that the Comptroller may not certify
that person as an excursion train operator unless the person files
evidence of insurance in the amount of $5 million per occurrence.

SECTION 2.  Creates Subsection (a) and (b) provides that an
excursion train operator is not liable for damages over $5 million
resulting from a single occurrence, and that the limitation of
liability applies to the operator of the excursion train, the owner
of the equipment used by the excursion train, the owner of the
trackage used by the excursion train, and the host carrier.

SECTION 3.  Effective Date.

SECTION 4.  Emergency Clause.


SUMMARY OF COMMITTEE ACTION

Pursuant to a public notice posted on March 16, 1995, at 5:53 p.m.,
the House Committee on Transportation met in a public hearing on
Wednesday, March 22, 1995 at 2:00 p.m. in Room E1.014 of the
Capitol Extension and was called to order at 6:54 p.m. after the
rules were suspended on the House floor to meet in public hearing
after the posted time, by the Chair, Representative Clyde Alexander
to consider H.B. 1208.  The Chair recognized the following persons
who testified in favor of H.B. 1208: Robert Robberson, President,
Ft. Worth and Western RR; John Randy Parten, Denver Railway Car;
Bob Stout, Mitchell Energy Development Corp. & Excursion
Trains,Inc.; John Helsly, Executive Vice President, Granbury
Chamber of Commerce; Robert MacDonald, Austin Steam Train.  The
Chair left H.B. 1208 pending before the Committee.  Pursuant to a
public notice posted on March 23, 1995, at 7:36 p.m., the House
Committee on Transportation met in a public hearing on Wednesday,
March 29, 1995 at 2:00 p.m. in Room E1.014 of the Capitol Extension
and was called to order at 2:10 p.m. by the Chair, Representative
Clyde Alexander.  The Chair laid out H.B. 1208 by Cook which was
pending before the committee.  Representative Bosse moved that the
committee report H.B. 1208, without amendments, to the full House
with the recommendation that it do pass.  The motion prevailed by
the following vote: Ayes (5), Nayes (1), Absent (3), Present not
voting (0).