1-1     By:  Truan                                             S.B. No. 628
 1-2           (In the Senate - Filed February 22, 1999; February 23, 1999,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     May 10, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 2; May 10, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 628                    By:  Brown
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to rail transportation districts.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 1, Chapter 623, Acts of the 67th
1-13     Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
1-14     Civil Statutes), is amended to read as follows:
1-15           Sec. 1.  The legislature finds that:
1-16                 (1)  the state contains many rural areas that are
1-17     heavily dependent on agriculture for economic survival;
1-18                 (2)  transportation of agricultural and industrial
1-19     products is essential to the continued economic vitality of rural
1-20     areas;
1-21                 (3)  the rail transportation systems in some rural
1-22     areas are threatened by railroad bankruptcies and abandonment
1-23     proceedings that would cause the cessation of rail services to the
1-24     areas;
1-25                 (4)  it is in the interest of all citizens of the state
1-26     that existing rail systems be maintained for the most efficient and
1-27     economical movement of essential agricultural products from the
1-28     areas of production to the local, national, and export markets;
1-29                 (5)  the state contains many industries that are
1-30     heavily dependent on rail transportation for the movement of raw
1-31     materials and products;
1-32                 (6)  the competitiveness of Texas industries and
1-33     agriculture is threatened by formulation of monopoly railroad
1-34     companies;
1-35                 (7)  it is in the interest of all citizens of the state
1-36     that the majority of businesses and industries that depend on
1-37     railroads to move their products or raw materials have access to a
1-38     competitive rail transportation market;
1-39                 (8)  [rural] rail transportation districts are
1-40     appropriate political subdivisions to provide for the continued
1-41     operation of railroads, which are declared by Article X, Section 2,
1-42     of the Texas Constitution to be public highways;
1-43                 (9) [(6)]  the creation, re-creation, financing,
1-44     maintenance, and operation of [rural] rail transportation districts
1-45     and facilities acquired by the districts under this Act will help
1-46     develop, maintain, and diversify the economy of the state,
1-47     eliminate unemployment or underemployment, foster the growth of
1-48     enterprises based on agriculture, and serve to develop and expand
1-49     transportation and commerce within the state under the authority
1-50     granted by Article III, Section 52-a, of the Texas Constitution;
1-51     and
1-52                 (10) [(7)]  financing by [rural] rail transportation
1-53     districts for the purposes provided by this Act is a lawful and
1-54     valid public purpose.
1-55           SECTION 2.  Subdivisions (1), (3), (4), and (11), Section 2,
1-56     Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
1-57     (Article 6550c, Vernon's Texas Civil Statutes), are amended to read
1-58     as follows:
1-59                 (1)  "Board" means the board of directors of a [rural]
1-60     rail transportation district.
1-61                 (3)  "Concurrent orders" means the orders adopted by
1-62     [eligible] counties that contain identical provisions regarding the
1-63     creation or re-creation of a district.
1-64                 (4)  "District" means a [rural] rail transportation
 2-1     district created under this Act.
 2-2                 (11)  "Rail facilities" means any real, personal, or
 2-3     mixed property, or any interest in that property that is determined
 2-4     by the board to be necessary or convenient for the provision of a
 2-5     [rural] rail transportation system and all property or interests
 2-6     necessary or convenient for the acquiring, providing, constructing,
 2-7     enlarging, remodeling, renovating, improving, furnishing, using, or
 2-8     equipping of the system, including rights-of-way, earthworks and
 2-9     structures, trackwork, train controls, stations, rolling stock, and
2-10     maintenance facilities.
2-11           SECTION 3.  Subsections (a) and (c), Section 3, Chapter 623,
2-12     Acts of the 67th Legislature, Regular Session, 1981 (Article 6550c,
2-13     Vernon's Texas Civil Statutes), are amended to read as follows:
2-14           (a)  The commissioners courts of two or more [eligible]
2-15     counties that, taken together, constitute a contiguous geographic
2-16     area may by order create or re-create a [rural] rail transportation
2-17     district consisting of the territory of the counties whose
2-18     commissioners courts adopt the order.
2-19           (c)  The commissioners courts of two or more [eligible]
2-20     counties that create a district or provide for the re-creation of a
2-21     district by the addition of one or more counties shall by
2-22     concurrent order at the time of creation or re-creation:
2-23                 (1)  declare the boundaries of the district as the
2-24     boundaries of the counties included;   
2-25                 (2)  designate the name of the district; and
2-26                 (3)  designate the number of board members, which may
2-27     not be less than four, and the manner of their appointment by a
2-28     commissioners court.
2-29           SECTION 4.  Subsection (a), Section 3A, Chapter 623, Acts of
2-30     the 67th Legislature, Regular Session, 1981 (Article 6550c,
2-31     Vernon's Texas Civil Statutes), is amended to read as follows:
2-32           (a)  The [In addition to eligible counties, the]
2-33     commissioners court of a county [that meets the requirements of
2-34     Section 3(b) of this Act] by order may create a [rural] rail
2-35     transportation district for purposes of developing, financing,
2-36     maintaining, and operating a new rail system under this Act and for
2-37     other purposes of this Act.
2-38           SECTION 5.  Subsection (a), Section 5, Chapter 623, Acts of
2-39     the 67th Legislature, Regular Session, 1981 (Article 6550c,
2-40     Vernon's Texas Civil Statutes), is amended to read as follows:
2-41           (a)  A [rural] rail transportation district is a public body
2-42     and a political subdivision of the state exercising public and
2-43     essential governmental functions and having all the powers
2-44     necessary or convenient to carry out the purposes of this Act,
2-45     including the powers granted in this section.  A district, in the
2-46     exercise of powers under this Act, is performing only governmental
2-47     functions and is a "governmental unit" within the meaning of
2-48     Chapter 101, Civil Practice and Remedies Code.  A district is a
2-49     "local government" under Chapter 1084, Acts of the 70th
2-50     Legislature, Regular Session, 1987 (Article 715c, Vernon's Texas
2-51     Civil Statutes);  an "issuer" under Chapter 503, Acts of the 54th
2-52     Legislature, 1955 (Article 717k, Vernon's Texas Civil Statutes),
2-53     Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
2-54     (Article 717k-3, Vernon's Texas Civil Statutes), the Bond
2-55     Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
2-56     Statutes), Chapter 53, Acts of the 70th Legislature, 2nd Called
2-57     Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
2-58     Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
2-59     (Article 717q, Vernon's Texas Civil Statutes); and a "public
2-60     agency" under Chapter 3, Acts of the 61st Legislature, Regular
2-61     Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), and
2-62     Chapter 400, Acts of the 66th Legislature, 1979 (Article 717m-1,
2-63     Vernon's Texas Civil Statutes).  The acquisition, improvement, or
2-64     repair of rail facilities by a district is an "eligible project"
2-65     under Chapter 656, Acts of the 68th Legislature, Regular Session,
2-66     1983 (Article 717q, Vernon's Texas Civil Statutes).
2-67           SECTION 6.  Chapter 623, Acts of the 67th Legislature,
2-68     Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
2-69     Statutes), is amended by adding Section 6B to read as follows:
 3-1           Sec. 6B.  COMPETITIVE RAIL ACCOUNT.  (a)  The competitive
 3-2     rail account is an account in the general revenue fund. Money in
 3-3     the account may be appropriated only to the Railroad Commission of
 3-4     Texas for a grant or loan under this section.
 3-5           (b)  On determination by the railroad commission that a
 3-6     project will improve competition in a rail market, the commission
 3-7     may grant or loan money from the competitive rail account to a rail
 3-8     district to assist in the payment of issuance or other transaction
 3-9     costs and to help defray interest on bonds issued by the district
3-10     for the project.  The commission may not grant or loan money from
3-11     the account to assist in the construction of a new rail line.
3-12           (c)  The railroad commission shall adopt rules governing:
3-13                 (1)  the qualifications necessary to receive assistance
3-14     under this section; and
3-15                 (2)  the application process to receive assistance
3-16     under this section.
3-17           SECTION 7.  Subdivision (6), Section 2, and Subsection (b),
3-18     Section 3, Chapter 623, Acts of the 67th Legislature, Regular
3-19     Session, 1981 (Article 6550c, Vernon's Texas Civil Statutes), are
3-20     repealed.
3-21           SECTION 8.  This Act takes effect September 1, 1999.
3-22           SECTION 9.  The importance of this legislation and the
3-23     crowded condition of the calendars in both houses create an
3-24     emergency and an imperative public necessity that the
3-25     constitutional rule requiring bills to be read on three several
3-26     days in each house be suspended, and this rule is hereby suspended.
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