By Truan                                               S.B. No. 628
         76R2206 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)  the state contains many rural areas that are
 1-9     heavily dependent on agriculture for economic survival;
1-10                 (2)  transportation of agricultural and industrial
1-11     products is essential to the continued economic vitality of rural
1-12     areas;
1-13                 (3)  the rail transportation systems in some rural
1-14     areas are threatened by railroad bankruptcies and abandonment
1-15     proceedings that would cause the cessation of rail services to the
1-16     areas;
1-17                 (4)  it is in the interest of all citizens of the state
1-18     that existing rail systems be maintained for the most efficient and
1-19     economical movement of essential agricultural products from the
1-20     areas of production to the local, national, and export markets;
1-21                 (5)  the state contains many industries that are
1-22     heavily dependent on rail transportation for movement of raw
1-23     materials and products;
1-24                 (6)  the competitiveness of Texas industries and
 2-1     agriculture is threatened by formulation of monopoly railroad
 2-2     companies;
 2-3                 (7)  it is in the interest of all citizens of the state
 2-4     that the majority of businesses and industries that depend on
 2-5     railroads to move their products or raw materials have access to a
 2-6     competitive rail transportation market;
 2-7                 (8)  [rural] rail transportation districts are
 2-8     appropriate political subdivisions to provide for the continued
 2-9     operation of railroads, which are declared by Article X, Section 2,
2-10     of the Texas Constitution to be public highways;
2-11                 (9) [(6)]  the creation, re-creation, financing,
2-12     maintenance, and operation of [rural] rail transportation districts
2-13     and facilities acquired by the districts under this Act will help
2-14     develop, maintain, and diversify the economy of the state,
2-15     eliminate unemployment or underemployment, foster the growth of
2-16     enterprises based on agriculture, and serve to develop and expand
2-17     transportation and commerce within the state under the authority
2-18     granted by Article III, Section 52-a, of the Texas Constitution;
2-19     and
2-20                 (10) [(7)]  financing by [rural] rail transportation
2-21     districts for the purposes provided by this Act is a lawful and
2-22     valid public purpose.
2-23           SECTION 2.  Sections 2(1), (4), and (11), Chapter 623, Acts
2-24     of the 67th Legislature, Regular Session, 1981 (Article 6550c,
2-25     Vernon's Texas Civil Statutes), are amended to read as follows:
2-26                 (1)  "Board" means the board of directors of a [rural]
2-27     rail transportation district.
 3-1                 (4)  "District" means a [rural] rail transportation
 3-2     district created under this Act.
 3-3                 (11)  "Rail facilities" means any real, personal, or
 3-4     mixed property, or any interest in that property that is determined
 3-5     by the board to be necessary or convenient for the provision of a
 3-6     [rural] rail transportation system and all property or interests
 3-7     necessary or convenient for the acquiring, providing, constructing,
 3-8     enlarging, remodeling, renovating, improving, furnishing, using, or
 3-9     equipping of the system, including rights-of-way, earthworks and
3-10     structures, trackwork, train controls, stations, rolling stock, and
3-11     maintenance facilities.
3-12           SECTION 3.  Section 3(a), Chapter 623, Acts of the 67th
3-13     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3-14     Civil Statutes), is amended to read as follows:
3-15           (a)  The commissioners courts of two or more eligible
3-16     counties that, taken together, constitute a contiguous geographic
3-17     area may by order create or re-create a [rural] rail transportation
3-18     district consisting of the territory of the counties whose
3-19     commissioners courts adopt the order.
3-20           SECTION 4.  Section 3A(a), Chapter 623, Acts of the 67th
3-21     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
3-22     Civil Statutes), is amended to read as follows:
3-23           (a)  In addition to eligible counties, the commissioners
3-24     court of a county that meets the requirements of Section 3(b) of
3-25     this Act by order may create a [rural] rail transportation district
3-26     for purposes of developing, financing, maintaining, and operating a
3-27     new rail system under this Act and for other purposes of this Act.
 4-1           SECTION 5.  Section 5(a), Chapter 623, Acts of the 67th
 4-2     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
 4-3     Civil Statutes), is amended to read as follows:
 4-4           (a)  A [rural] rail transportation district is a public body
 4-5     and a political subdivision of the state exercising public and
 4-6     essential governmental functions and having all the powers
 4-7     necessary or convenient to carry out the purposes of this Act,
 4-8     including the powers granted in this section.  A district, in the
 4-9     exercise of powers under this Act, is performing only governmental
4-10     functions and is a "governmental unit" within the meaning of
4-11     Chapter 101, Civil Practice and Remedies Code.  A district is a
4-12     "local government" under Chapter 1084, Acts of the 70th
4-13     Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
4-14     Civil Statutes);  an "issuer" under Chapter 503, Acts of the 54th
4-15     Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
4-16     Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
4-17     (Article 717k-3, Vernon's Texas Civil Statutes), the Bond
4-18     Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
4-19     Statutes), Chapter 53, Acts of the 70th Legislature, 2nd Called
4-20     Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
4-21     Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
4-22     (Article 717q, Vernon's Texas Civil Statutes); and a "public
4-23     agency" under Chapter 3, Acts of the 61st Legislature, Regular
4-24     Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), and
4-25     Chapter 400, Acts of the 66th Legislature, 1979 (Article 717m-1,
4-26     Vernon's Texas Civil Statutes).  The acquisition, improvement, or
4-27     repair of rail facilities by a district is an "eligible project"
 5-1     under Chapter 656, Acts of the 68th Legislature, Regular Session,
 5-2     1983 (Article 717q, Vernon's Texas Civil Statutes).
 5-3           SECTION 6.  Chapter 623, Acts of the 67th Legislature,
 5-4     Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
 5-5     Statutes), is amended by adding Section 5A to read as follows:
 5-6           Sec.  5A.  DECLARATION OF TAKING; POSSESSION OF PROPERTY.
 5-7     (a)  A district may file a declaration of taking with the clerk of
 5-8     the court:
 5-9                 (1)  in which the district files a condemnation
5-10     petition under Chapter 21, Property Code; or
5-11                 (2)  to which the case is assigned.
5-12           (b)  A district may file the declaration of taking
5-13     concurrently with or subsequent to the filing of the condemnation
5-14     petition but may not file the declaration after the special
5-15     commissioners have made an award in the condemnation proceeding.
5-16           (c)  The declaration of taking must include:
5-17                 (1)  a specific reference to the legislative authority
5-18     for the condemnation;
5-19                 (2)  a description and plot plan of the real property
5-20     to be condemned, including the following information if applicable:
5-21                       (A)  the municipality in which the property is
5-22     located;
5-23                       (B)  the street address of the property; and
5-24                       (C)  the lot and block number of the property;
5-25                 (3)  a statement of the property interest to be
5-26     condemned;
5-27                 (4)  the name and address of each property owner that
 6-1     the district can obtain after reasonable investigation and a
 6-2     description of the owner's interest in the property; and
 6-3                 (5)  a statement that immediate possession of all or
 6-4     part of the property to be condemned is necessary for the timely
 6-5     construction of a railroad project.
 6-6           (d)  A deposit to the registry of the court of an amount
 6-7     equal to the appraised fair market value, as determined by the
 6-8     district, of the property to be condemned and any damages to the
 6-9     remainder must accompany the declaration of taking.
6-10           (e)  Instead of the deposit under Subsection (d) of this
6-11     section, at its option the district may, concurrently with the
6-12     declaration of a taking, tender in favor of the owner of the
6-13     subject property a bond or other security in an amount sufficient
6-14     to secure the owner for the value of the property taken and damages
6-15     to remaining property, if the district obtains the court's
6-16     approval.
6-17           (f)  The date on which the declaration is filed is the date
6-18     of taking for the purpose of assessing the value of the property
6-19     taken and damages to any remaining property to which an owner is
6-20     entitled.
6-21           (g)  An owner may draw upon the deposit held by the court
6-22     under Subsection (d) of this section on the same terms and
6-23     conditions as are applicable under state law to a property owner's
6-24     withdrawal of a commissioners' award deposited under Section
6-25     21.021(a)(1), Property Code.
6-26           (h)  A property owner that is a defendant in an eminent
6-27     domain action filed by a district under this section has 20 days
 7-1     after the date of service of process of both a condemnation
 7-2     petition and a notice of declaration of taking to give notice to
 7-3     the court in which the action is pending of the defendant's desire
 7-4     to have the condemnation petition placed on the court's docket in
 7-5     the same manner as other cases pending in the court.  On receipt of
 7-6     timely notice from the defendant, the court in which the eminent
 7-7     domain action is pending shall place the case on its docket in the
 7-8     same manner as other cases pending in the court.
 7-9           (i)  Immediately on the filing of a declaration of taking, a
7-10     district shall serve a copy of the declaration on each person
7-11     possessing an interest in the condemned property by a method
7-12     prescribed by Section 21.016(d), Property Code.  The district shall
7-13     file evidence of the service with the clerk of the court.  On
7-14     filing of that evidence, the district may take possession of the
7-15     property on the same terms as if a commissioners hearing had been
7-16     conducted, pending the litigation.
7-17           (j)  If the condemned property is a homestead or a portion of
7-18     a homestead as defined by Section 41.002, Property Code, a district
7-19     may not take possession before the 31st day after the date of
7-20     service under Subsection (i) of this section.
7-21           (k)  A property owner or tenant who refuses to vacate the
7-22     property or yield possession is subject to forcible entry and
7-23     detainer under Chapter 24, Property Code.
7-24           SECTION 7.  Chapter 623, Acts of the 67th Legislature,
7-25     Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
7-26     Statutes), is amended by adding Section 6B to read as follows:
7-27           Sec. 6B.  COMPETITIVE RAIL ACCOUNT.  (a)  The competitive
 8-1     rail account is an account in the general revenue fund.  Money in
 8-2     the account may be appropriated only to the railroad commission for
 8-3     a grant or loan under this section.
 8-4           (b)  On determination by the railroad commission that a
 8-5     project will improve competition in a rail market, the commission
 8-6     may grant or loan money from the competitive rail account to a rail
 8-7     district to assist in the payment of issuance or other transaction
 8-8     costs and to help defray interest on bonds issued by the district
 8-9     for the project.
8-10           (c)  The railroad commission shall adopt rules governing:
8-11                 (1)  the qualifications necessary to receive assistance
8-12     under this section; and
8-13                 (2)  the application process to receive assistance
8-14     under this section.
8-15           SECTION 8.  This Act takes effect September 1, 1999.
8-16           SECTION 9.  The importance of this legislation and the
8-17     crowded condition of the calendars in both houses create an
8-18     emergency and an imperative public necessity that the
8-19     constitutional rule requiring bills to be read on three several
8-20     days in each house be suspended, and this rule is hereby suspended.