SRC-SEW H.B. 1125 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1125
77R12350 DWS-FBy: Swinford (Sponsor Unknown)
State Affairs
5/11/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, a railroad right-of-way is reserved to any railroad
company to the extent of one hundred feet on each side of a road that
crosses over or extends through any land granted or that may be granted to
the railroad company by the legislature. When a railroad company receives
permission from the federal Surface Transportation Board to abandon a rail
line, the right-of-way and all improvements are typically sold to a salvage
company. Many railroad right-of-ways have structures, installed equipment,
and other types of leasehold improvements made by political entities,
public utilities, pipeline operators, or communications companies under an
agreement with the railroad company. When the railroad right-of-way is sold
or abandoned, the persons or entities that make these leasehold
improvements may lose investments made in the railroad right-of-way. H.B.
1125 requires a railroad company to give such a person or the state the
right to first refusal to purchase at the fair market value the railroad
right-of-way or adjoining property.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 112, Revised Statutes, by adding Article 6349a, as
follows: 

Art. 6349a.  PURCHASE OF RIGHT-OF-WAY.  (a) Requires a railroad company
that intends to abandon or offer for sale any of the railroad company's
right-of-way, except as provided by Subsection (d), to give any person who
has constructed a building or other structure, installed equipment, or made
any other type of leasehold improvement on railroad right-of-way of the
company or adjoining railroad property the right of first refusal to
purchase, at the fair market value of the land as determined by an
independent appraiser, the right-of-way or adjoining property where the
structure, equipment, or other improvement is located.  

(b)  Provides that the land subject to purchase under this article is that
which is necessary for unrestricted use of the structure, equipment, or
other leasehold improvement. 

(c)  Requires ownership of the structure, equipment, or other leasehold
improvement to be transferred at no cost to a person buying the land under
Subsection (a) of this article. 

(d)  Requires the state, if the state has authority to acquire property
described by Subsection (a), to be given right of first refusal to acquire
the property and requires the person described by Subsection (a) to be
given the next right of refusal after the state. 
 
SECTION 2.  Effective date:  September 1, 2001.