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.