SRC-DPW S.B. 628 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 628
76R2206 DRH-DBy: Truan
Infrastructure
3/29/1999
As Filed


DIGEST 

Currently, two major Class 1 railroads and a single smaller Class 1
carrier, one Class 2 carrier and approximately thirty-four Class 3
railroads, remain in Texas.  Major rail-dependent industries such as the
agricultural production industry which stretches from the Panhandle to the
Rio Grande Valley, the petrochemical industry of the Gulf Coast, and the
raw materials industry along the Balcones Escarpment in Central Texas, are
limited to a single, monopoly carrier.  This bill would provide a
decentralized mechanism by which the state may encourage the development of
competitive rail transportation markets through the agency of rail
transportation districts. 

PURPOSE

As proposed, S.B. 628 provides guidelines for the issuance of a declaration
of taking and establishes a competitive rail account to assist rail
transportation districts. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the railroad commission in SECTION 7
(Article 6550c, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1, Article 6550c, V.T.C.S., to provide that the
legislature finds the state contains many industries that are dependent on
rail transportation, and thus the competitiveness of Texas industries and
agriculture is threatened by a monopolization of railroad companies; and
that it is in the interest of all citizens to have access to a competitive
rail transportation market.  Provides that rail transportation districts,
rather than rural rail transportation districts, are appropriate for the
continued operation of railroads.  Makes conforming changes. 

SECTION 2. Amends Sections 2(1), (4), and (11), Article 6550c, V.T.C.S., to
make conforming changes.   

SECTION 3. Amends Section 3(a), Article 6550c, V.T.C.S., to make a
conforming change. 

SECTION 4. Amends Section 3A(a), Article 6550c, V.T.C.S., to make a
conforming change. 

SECTION 5. Amends Section 5(a), Article 6550c, V.T.C.S., to make a
conforming change. 

SECTION 6. Amends Chapter 623, Article 6550c, V.T.C.S., by adding Section
5A, as follows: 

Sec. 5A. DECLARATION OF TAKING; POSSESSION OF PROPERTY. (a) Authorizes a
district to file a declaration of taking with the clerk of the court in
which the district files a condemnation petition or to which the case is
assigned. 

(b) Authorizes a district to file a declaration of taking with the filing
of the condemnation petition but may not file the declaration after the
special commissioners have made an award in the condemnation proceeding. 

(c) Requires the declaration to include certain provisions.

(d) Requires a deposit equal to the amount of the appraised fair market
value of the property to  be condemned and any damages to the remainder to
accompany the declaration of taking. 

(e) Authorizes a district, with a court's approval, to tender in favor of
the owner of the subject property a security for the value of the property
taken and damages to remaining property. 

(f) Provides that the date on which the declaration is filed is the date of
taking. 

(g) Authorizes an owner to draw upon the deposit held by a court under
state law regarding a property owner's withdrawal of a commissioners' award
deposited under Section 21.021(a) (1), Property Code. 

(h) Provides that a defendant in an eminent domain action has 20 days after
the date of service of process of a condemnation petition and a notice of
declaration of taking to give notice to a court to have the condemnation
placed on the court's docket.  Requires the court to place the case on its
docket on receipt of timely notice from the defendant. 

(i) Requires a district to provide a copy of the declaration of taking to
all persons possessing an interest in the condemned property.  Requires the
district to file evidence of the service with the clerk of the court and
authorizes the district to take possession of the property on certain
terms. 

(k) Provides that a property owner or tenant who refuses to vacate the
property or yield possession is subject to forcible entry and detainer
under Chapter 24, Property Code. 

SECTION 7. Amends Chapter 623, Article 6650c, V.T.C.S., by adding Section
6B, as follows: 

Sec. 6B. COMPETITIVE RAIL ACCOUNT. Provides that the competitive rail
account is part of the general revenue fund and the account may only be
appropriated to the railroad commission for grants or loans under this
section.  Authorizes the commission to grant or loan money to a district to
assist covering cost for the project.  Requires the commission to adopt
rules governing the qualifications and the application process to receive
assistance under this section. 

SECTION 8. Effective date: September 1, 1999.

SECTION 9. Emergency clause.