BILL ANALYSIS


                                                        H.B. 1208
                                                By: Cook (Sibley)
                                             Economic Development
                                                          5-21-95
                              Senate 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

As proposed, H.B. 1208 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. (a) Authorizes a person to apply to the comptroller for
certification as an operator of an excursion train. Requires the
comptroller to certify an applicant if the comptroller determines
that the applicant will operate a passenger train that:

            (1) is primarily used for tourism or public service; and
       
       (2) leads to the promotion of the tourist industry in Texas.
       
     (b) Prohibits the comptroller from certifying a person under
     Subsection (a) of this section unless the person files with
     the comptroller evidence of insurance providing coverage for
     liability resulting from injury to persons or damages to
     property in the amount of at least $5,000,000 for the
     operation of the train.
     
     (c) Prohibits the comptroller from certifying an applicant
     under Subsection (a) of this section if the applicant or any
     person that owns an interest in the applicant also owns or
     operates a regularly scheduled passenger train service with
     interstate connections.
     
     SECTION 2.     (a) Provides that a person that is certified as an
operator of an excursion train under Section 1(a) of this Act and
maintains insurance in the minimum amount required under Section
1(b) of this Act is not liable for injury or damages over
$5,000,000 resulting from a single occurrence.

     (b) Provides that the limitation of liability under Subsection
     (a) of this section applies to the person certified as an
     operator under Section 1(a) of this Act, the owner of
     equipment used by the excursion train, the owner of track used
     by the excursion train and the host carrier.
     
     (c) Sets forth conditions under which the limitation of
     liability under Subsection (a) of this section does not apply.
     
     SECTION 3.     Sets forth provisions an application made under Section
1 of this Act must include.

SECTION 4. Sets forth requirements for the operator of an excursion
train that is certified under Section 1(a) of this Act.

SECTION 5. Sets forth provisions the operator of an excursion train
that is certified under Section 1(a) of this Act may not carry.

SECTION 6. Effective date: September 1, 1995.

SECTION 7. Emergency clause.