SRC-JBJ S.B. 348 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 348
77R3870 JD-FBy: Truan
State Affairs
2/5/2001
As Filed


DIGEST AND PURPOSE 

Currently, Texas has no formal mechanism for preserving railroads and rail
right-of-ways that are being abandoned, putting some rail-dependent
industries and agricultural and rural communities at a competitive
disadvantage through loss of rail service.  As proposed, S.B. 348 provides
a mechanism by which the Texas Department of Transportation could preserve
right-of-ways in cases of complete rail abandonment and provides
opportunities for counties with rail-dependent industry or agricultural or
rural communities to preserve rail service where it is practical to do so. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 2 (Sections 4 and 9, Article 6550c-2, V.T.C.S.) of
this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Sets forth legislative findings.

SECTION 2.  Amends Chapter 13, Title 112, V.T.C.S., by adding Article
6550c-2, as follows: 

Art. 6550c-2.  PRESERVATION OF RAIL FACILITIES BY TEXAS DEPARTMENT OF
TRANSPORTATION   
 
Sec. 1.  DEFINITIONS.  Defines "commission," "department," "maintenance
facility," "rail facility," "railroad operator," "right-of-way," "short
line railroad," "station," "switching railroad," "trackwork," and "train
controls." 

Sec. 2.  NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE SERVICE. Requires
the Texas Department of Transportation (department), on receipt of notice
of intent to abandon or discontinue rail service described by 49 C. F. R.
Section 1152.20, and its subsequent amendments, to coordinate with the
governing body of any municipality, county, or rural rail transportation
district in which all or a segment of the line is located as to whether,
under this article, the department should acquire the rail facilities to
which the notice relates, or any other actions should be taken to provide
for continued rail transportation service in this state. 

Sec. 3.  ACQUISITION AND LEASE OF RAIL FACILITIES.  (a)  Authorizes the
Texas Transportation Commission (commission) to authorize the department to
acquire rail facilities at locations and on routes the commission
determines to be feasible and viable for continued rail transportation
service in this state. 

(b)  Authorizes the department to enter into an agreement with an owner of
an operating railroad for the acquisition or use of rail facilities on
terms the department finds to be in the best interests of this state. 

 (c)  Authorizes the department to enter into an agreement with a railroad
operator selected as provided by this article to lease, or contract for the
use or operation of, all or any part of a state-owned rail facility.
Requires the agreement to provide for the department's monitoring of a
railroad operator's service and performance. 

(d)  Authorizes the department to enter into an agreement with a railroad
operator to sell all or any part of a state-owned rail facility on terms
the department finds to be in the best interests of this state. 

Sec. 4.  SELECTION OF RAILROAD OPERATORS.  (a)  Requires the department to
file notice with the secretary of state for publication in the Texas
Register of its intent to solicit proposals to lease all or part of a
state-owned rail facility. 

(b)  Requires the commission to adopt rules to allow the department to
discuss a proposal with the offeror to assess the feasibility of the
proposal, and negotiate the terms of a lease agreement with a railroad
operator under this article. 

(c)  Authorizes the department to enter into a lease agreement with a
railroad operator under this article only if the department determines the
agreement provides the best value to the state. 

Sec. 5.  ACQUISITION AND DISPOSAL OF REAL PROPERTY.  (a)  Authorizes the
commission to authorize the department to acquire by purchase, in the name
of this state, any right-of-way or other interest in real property the
department finds necessary or convenient to the acquisition of rail
facilities under this article. 

(b)  Authorizes the governing body of a public agency or a municipality,
county, or other political subdivision to convey to the department without
advertisement title to, or right in, property that the department
determines to be necessary or convenient under this section. 

(c)  Authorizes the department to sell, convey, or otherwise dispose of a
right or interest in real property acquired under this section that the
commission determines is no longer needed for department purposes. 

Sec. 6.  PLACEMENT OF UTILITY FACILITIES, LINES, AND EQUIPMENT.  (a)
Requires a utility that is authorized by law to place its facilities,
lines, or equipment in, over, or across railroad right-of-way to notify the
department of the utility's intention to exercise that authority over
right-of-way that is part of state-owned rail facilities. 

(b)  Authorizes a utility to exercise the authority described by Subsection
(a) of this section over right-of-way that is part of state-owned rail
facilities only with the consent of the department. 

(c)  Authorizes the department, on receipt of notice under Subsection (a)
of this section, to designate the location in the right-of-way at which the
utility may place its facilities, lines, or equipment. 

(d)  Authorizes the department to require a utility to relocate the
utility's facilities, lines, or equipment, at the utility's expense, to
allow for the expansion or relocation of rail facilities owned by the
state. 

Sec. 7.  ABANDONED RAIL ACCOUNT.  (a)  Provides that the abandoned rail
account is an account in the state highway fund.  Authorizes money in the
account to be appropriated only to the department to implement this
article. 
 
(b)  Requires certain funds to be deposited to the credit of the abandoned
rail account. 

(c)  Provides that the abandoned rail account is exempt from any law that
relates to the abolition of funds or accounts in the state treasury, or
that relates to the abolition of dedications or rededications of revenue in
the state treasury. 

Sec. 8.  EXPENDITURE OF FUNDS.  (a)  Authorizes the department to receive,
accept, and expend money received from the state, a federal agency, or from
another public or private source for certain specific expenditures. 

(b)  Authorizes the department to use money in the abandoned rail account
established under Section 7 of this article to carry out any power granted
or duty imposed under this article. 

Sec. 9.  RULES.  Requires the commission to adopt rules as necessary to
implement this article. 

Sec. 10.  LIMITATION.  Provides that this article does not authorize the
department to regulate, operate, or maintain rail facilities. 

SECTION 3.  Effective date: September 1, 2001.