By Swinford H.C.R. No. 156 76R9235 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 measures would provide some relief, 2-12 federal authorities must take stronger action to address the 2-13 factors associated with inadequate rail service that cost Texas 2-14 businesses and farmers $100 million a month; now, therefore, be it 2-15 RESOLVED, That the 76th Legislature of the State of Texas 2-16 hereby respectfully urge the Congress of the United States and the 2-17 Surface Transportation Board to review recommendations by the 2-18 Railroad Advisory Committee appointed by the Railroad Commission of 2-19 Texas regarding service by rail carriers; and, be it further 2-20 RESOLVED, That the Texas secretary of state forward official 2-21 copies of this resolution to the president of the United States, to 2-22 the chairman of the Surface Transportation Board, to the speaker of 2-23 the house of representatives and the president of the senate of the 2-24 United States Congress, and to all the members of the Texas 2-25 delegation to the congress with the request that this resolution be 2-26 officially entered in the Congressional Record as a memorial to the 2-27 Congress of the United States of America.