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.