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.
3-27 * * * * *