By Swinford                                           H.B. No. 3116
         76R8272 DRH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to rail transportation districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1, Chapter 623, Acts of the 67th
 1-5     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
 1-6     Civil Statutes), is amended to read as follows:
 1-7           Sec. 1.  The legislature finds that:
 1-8                 (1)  railroads are a safe, cost effective, energy
 1-9     efficient, and environmentally friendly mode of transportation [the
1-10     state contains many  rural areas that are heavily dependent on
1-11     agriculture for economic survival];
1-12                 (2)  efficient rail transportation is essential to
1-13     Texas agriculture and Texas industry [transportation of
1-14     agricultural and industrial  products is essential to the continued
1-15     economic vitality of rural areas];
1-16                 (3)  preservation of essential rail service is a
1-17     necessity for the continued prosperity of small towns and rural
1-18     areas in this state [the rail  transportation systems in some rural
1-19     areas are threatened by railroad bankruptcies and abandonment
1-20     proceedings that would cause the cessation of rail services to the
1-21     areas];
1-22                 (4)  maximum competition between railroads will ensure
1-23     reasonable rates and a high level of service for agriculture,
1-24     mining, manufacturing, and  other sectors of the Texas economy that
 2-1     are dependent on rail transportation [it is in the interest of all
 2-2     citizens of the state that existing rail systems be maintained for
 2-3     the most  efficient and economical movement of essential
 2-4     agricultural products from the areas of production to the local,
 2-5     national, and export markets];
 2-6                 (5)  diversion of truck traffic from the highways to
 2-7     the railroads of this state will improve highway safety, while
 2-8     reducing highway congestion and the need for  highway improvements;
 2-9                 (6)  [rural]  rail transportation districts are
2-10     appropriate political subdivisions to provide for the continued
2-11     operation of railroads,  which are declared by Article X, Section
2-12     2, of the Texas Constitution to be public highways;
2-13                 (7) [(6)]  the creation, re-creation, financing,
2-14     maintenance, and operation of [rural] rail transportation districts
2-15     and facilities  acquired by the districts under this Act will help
2-16     develop, maintain, and diversify the economy of the state,
2-17     eliminate unemployment or underemployment, foster the growth of
2-18     enterprises based on agriculture, and serve to develop and expand
2-19     transportation and commerce within the state under the authority
2-20     granted by Article III, Section 52-a, of the Texas Constitution;
2-21     and
2-22                 (8) [(7)]  financing by [rural] rail transportation
2-23     districts for the purposes provided by this Act is a lawful and
2-24     valid public purpose.
2-25           SECTION 2.  Section 2, Chapter 623, Acts of the 67th
2-26     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
2-27     Civil Statutes), is amended by amending Subdivisions (1), (4), and
 3-1     (11) and adding Subdivisions (18), (19), (20), and (21) to read as
 3-2     follows:
 3-3                 (1)  "Board" means the board of directors of a [rural]
 3-4     rail transportation district.
 3-5                 (4)  "District" means a [rural] rail transportation
 3-6     district created under this Act.
 3-7                 (11)  "Rail facilities" means any real, personal, or
 3-8     mixed property, or any interest in that property that is determined
 3-9     by the board to be necessary or convenient for the economic
3-10     viability and successful operation [provision] of a [rural] rail
3-11     transportation system and all property or interests necessary or
3-12     convenient for the acquiring, providing, constructing, enlarging,
3-13     remodeling, renovating, improving, furnishing, using, or equipping
3-14     of, or generating traffic for, the system, including rights-of-way,
3-15     earthworks and structures, trackwork, train controls, stations,
3-16     rolling stock, [and] maintenance facilities, rail-served industrial
3-17     parks, transload facilities and reload centers, intermodal
3-18     terminals, and intermodal equipment.
3-19                 (18)  "Intermodal equipment" means trucks, truck
3-20     tractors, trailers, semitrailers, containers and chassis, straddle
3-21     cranes, side loaders, and all other equipment needed for the
3-22     performance of rail or truck services.
3-23                 (19)  "Intermodal terminals" means rail-served
3-24     facilities where semitrailers and containers are transferred from
3-25     rail cars to trucks and other vehicles and from trucks and other
3-26     vehicles to rail cars.
3-27                 (20)  "Rail-served industrial park" means a real estate
 4-1     development served by a railroad, including land, structures,
 4-2     trackage, streets, and public utilities, that provides facility
 4-3     sites or complete facilities for sale or lease to parties that use
 4-4     rail transportation for the movement of the preponderance of their
 4-5     inbound materials or outbound products.
 4-6                 (21)  "Transload facilities and reload centers" means
 4-7     rail-served facilities where goods and materials are transferred
 4-8     from rail cars to trucks and other vehicles or from trucks and
 4-9     other vehicles to rail cars, with storage possible before
4-10     reloading.
4-11           SECTION 3.  Section 3(a), Chapter 623, Acts of the 67th
4-12     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
4-13     Civil Statutes), is amended to read as follows:
4-14           (a)  The commissioners courts of two or more eligible
4-15     counties that, taken together, constitute a contiguous geographic
4-16     area may by order create or re-create a [rural] rail transportation
4-17     district consisting of the territory of the counties whose
4-18     commissioners courts adopt the order.
4-19           SECTION 4.  Section 3A(a), Chapter 623, Acts of the 67th
4-20     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
4-21     Civil Statutes), is amended to read as follows:
4-22           (a)  In addition to eligible counties, the commissioners
4-23     court of a county that meets the requirements of Section 3(b) of
4-24     this Act by order may create a [rural] rail transportation district
4-25     for purposes of developing, financing, maintaining, and operating a
4-26     new rail system under this Act and for other purposes of this Act.
4-27           SECTION 5.  Section 5, Chapter 623, Acts of the 67th
 5-1     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
 5-2     Civil Statutes), is amended by amending Subsections (a), (l), and
 5-3     (n) and adding Subsection (r) to read as follows:
 5-4           (a)  A [rural] rail transportation district is a public body
 5-5     and a political subdivision of the state exercising public and
 5-6     essential governmental functions and having all the powers
 5-7     necessary or convenient to carry out the purposes of this Act,
 5-8     including the powers granted in this section.  A district, in the
 5-9     exercise of powers under this Act, is performing only governmental
5-10     functions and is a "governmental unit" within the meaning of
5-11     Chapter 101, Civil Practice and Remedies Code.  A district is a
5-12     "local government" under Chapter 1084, Acts of the 70th
5-13     Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
5-14     Civil Statutes);  an "issuer" under Chapter 503, Acts of the 54th
5-15     Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
5-16     Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
5-17     (Article 717k-3, Vernon's Texas Civil Statutes), the Bond
5-18     Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
5-19     Statutes), Chapter 53, Acts of the 70th Legislature, 2nd Called
5-20     Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
5-21     Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
5-22     (Article 717q, Vernon's Texas Civil Statutes); and a "public
5-23     agency" under Chapter 3, Acts of the 61st Legislature, Regular
5-24     Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), and
5-25     Chapter 400, Acts of the 66th Legislature, 1979 (Article 717m-1,
5-26     Vernon's Texas Civil Statutes).  The acquisition, improvement, or
5-27     repair of rail facilities by a district is an "eligible project"
 6-1     under Chapter 656, Acts of the 68th Legislature, Regular Session,
 6-2     1983 (Article 717q, Vernon's Texas Civil Statutes).
 6-3           (l)  A district may sell, lease, convey, or otherwise dispose
 6-4     of any of its rights, interests, or properties not needed for or,
 6-5     in the case of leases, not inconsistent with the continued
 6-6     [efficient] operation and maintenance of its principal rail lines
 6-7     [the system].  It may, on adoption of an order by the board, sell,
 6-8     lease, or otherwise dispose of, at any time, any surplus materials
 6-9     or personal or real property not needed for continued provision of
6-10     rail service on its principal lines [its requirements] or for the
6-11     purpose of carrying out its power under this Act.  A district may
6-12     sell its principal rail lines and associated rail properties to a
6-13     railroad company if the railroad company gives the district the
6-14     right of first refusal to reacquire those lines and properties for
6-15     net liquidation value if the railroad company or its successor
6-16     subsequently files an abandonment application for those lines with
6-17     the Surface Transportation Board.  A railroad company that intends
6-18     to file for abandonment of a rail line acquired under this section
6-19     must notify the district and the Railroad Commission of Texas at
6-20     least 90 days before filing notice of abandonment.
6-21           (n)  A district may lease the rail facilities or any part to,
6-22     or contract for the use or operation of the rail facilities or any
6-23     part by, any operator.  A district shall encourage to the maximum
6-24     extent practicable the participation of private enterprise in the
6-25     operation of rail facilities. The term of a lease or [an] operating
6-26     contract under this subsection may not exceed 20 years, unless  the
6-27     lease or operating contract requires the lessee or operator to make
 7-1     a capital investment in rights-of-way, earthworks and structures,
 7-2     trackwork, train controls, stations, and other permanent components
 7-3     of the rail facility.  Any lease or operating contract must
 7-4     obligate the lessee or operator to interchange traffic with other
 7-5     railroads at junctions specified by the shipper, but only with a
 7-6     division of the revenue that adequately compensates the lessee or
 7-7     operator for all costs incurred and provides a reasonable profit.
 7-8           (r)  A district may construct, own, operate, or lease a
 7-9     rail-served industrial park, if the rail traffic to and from the
7-10     industrial park will help ensure the economic viability of a rail
7-11     line owned by the district.  A district may lease sites or
7-12     facilities within a rail-served industrial park only to a party
7-13     that uses rail transportation for the movement of a preponderance
7-14     of its inbound materials or outbound products.  The district may
7-15     exercise the power of eminent domain to acquire land for the
7-16     development of a rail-served industrial park only if the land that
7-17     is sought is not being developed for another industrial purpose.
7-18           SECTION 6.  Section 6A(a), Chapter 623, Acts of the 67th
7-19     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
7-20     Civil Statutes), is amended to read as follows:
7-21           (a)  A district may use the procedures provided by Chapter
7-22     271, Local Government Code, to finance rail facilities of the
7-23     district, except to the extent of conflict with this Act and except
7-24     that the district may not levy or collect ad valorem taxes unless
7-25     approved at an election by a majority of the voters in each county
7-26     comprising the district.
7-27           SECTION 7.  This Act takes effect September 1, 1999.
 8-1           SECTION 8.  The importance of this legislation and the
 8-2     crowded condition of the calendars in both houses create an
 8-3     emergency and an imperative public necessity that the
 8-4     constitutional rule requiring bills to be read on three several
 8-5     days in each house be suspended, and this rule is hereby suspended.