By Swinford                                          H.C.R. No. 155
         76R9239 RVH-D                           
                             HOUSE CONCURRENT RESOLUTION
 1-1           WHEREAS, A chain of disasters on the nation's railways in
 1-2     1997 precipitated a rail service crisis that within months,
 1-3     according to Railroad Commission of Texas estimates, had cost the
 1-4     Texas economy about $1.1 billion in lost sales and added freight
 1-5     costs with the potential for millions more in losses if the carrier
 1-6     did not quickly address the problem; and
 1-7           WHEREAS, The rail service crisis began with a series of fatal
 1-8     train crashes in 1997 and escalated into an economic bottleneck of
 1-9     rail cars before the year's end; the majority of Texas shippers
1-10     have access to only one rail carrier and were essentially held
1-11     hostage because of the inability of that carrier, the nation's
1-12     largest rail carrier, to provide adequate service; and
1-13           WHEREAS, Deregulation of transportation industries, such as
1-14     trucking and railroad, is an integral part of free enterprise and
1-15     open competition; the Staggers Rail Act of 1980 that deregulated
1-16     the railroad industry included an obligation for rail carriers to
1-17     serve shippers; and
1-18           WHEREAS, The Railroad Commission of Texas appointed the
1-19     Railroad Advisory Committee to study the service issue surrounding
1-20     the rail crisis; the committee's recommendations suggest
1-21     alternatives that can be provided to shippers who experience rail
1-22     service disruptions and outline penalties for nonservice by rail
1-23     carriers; and
1-24           WHEREAS, The advisory committee defined "service" as
 2-1     providing equipment within 20 days of a request and "reasonable
 2-2     time" for delivery as no more than 200 percent of the normal
 2-3     transit time experienced for that particular movement; and
 2-4           WHEREAS, The committee also outlined three options for
 2-5     nonservice by rail carriers that would allow other rail carriers to
 2-6     provide service, invoice rail carriers for the difference between
 2-7     existing rail freight rates and the rates actually paid for trucks
 2-8     to move the commodity for which equipment had been ordered, and
 2-9     allow grain shippers to truck the product to the nearest available
2-10     terminal and deduct the freight paid for this service; and
2-11           WHEREAS, Although these proposed measures would provide some
2-12     relief, state authorities must be pursuaded to take stronger action
2-13     to address the factors associated with inadequate rail service that
2-14     cost Texas businesses and farmers $100 million a month; now,
2-15     therefore, be it
2-16           RESOLVED, That the 76th Legislature of the State of Texas
2-17     hereby respectfully urge the Railroad Commission of Texas and the
2-18     governor of Texas to review  recommendations by the Railroad
2-19     Advisory Committee regarding service by rail carriers; and, be it
2-20     further
2-21           RESOLVED, That the secretary of state forward an official
2-22     copy of this resolution to the chairman of the Railroad Commission
2-23     of Texas and to the governor of Texas.