SRC-SEW S.B. 406 77(R)BILL ANALYSIS


Senate Research CenterS.B. 406
By: Cain
State Affairs
6/20/2001
Enrolled


DIGEST AND PURPOSE 

The abandonment of rail lines over time has forced certain industries that
have traditionally depended on rail to move their product to find
alternative modes of transportation.  If a rail line is abandoned and the
rails removed, the economic opportunity is lost, most likely forever,
because of the high cost to replace the infrastructure.  This has
contributed to an increase in truck traffic over state highways and local
roads and bridges, causing increased congestion and roadway maintenance
costs.  As proposed, S.B. 406 authorizes the Texas Department of
Transportation to preserve rail facilities by acquiring rail lines and
other rail facilities and leasing those facilities to other operators. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 2 ( Section 8, Article 6550c-2, V.T.C.S.)  and
SECTION 3 (Section 5, Article 6550c, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Presents legislative findings.

SECTION 2.  Amends Chapter 13, Title 112, Revised Statutes, 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," "district,"
"maintenance facility," "rail facility," "right-of-way,""station,"
"trackwork," and "train controls."  

Sec. 2.  NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE SERVICE. Requires
the Texas Department of Transportation (department), on receipt of the
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 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
require 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 and conditions the department finds to be in the best interests of
the state.   
 

(c) Authorizes the department to enter into an agreement with a district to
lease, and contract for the use or operation of, all or part of a
state-owned rail facility.  Sets forth requirements for the agreement. 

(d) Authorizes the department to enter into an agreement with a district or
railroad company 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.  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, other political subdivision, or public agency to, without
advertisement, convey  to the department title to, or a right in, property
that the department determines to be necessary or convenient under this
section. 

(c) Provides that right of way acquired by the department under this
article remains subject to the terms of an existing easement, lease,
license, or other agreement that grants to a public utility, pipeline
operator, communications company, political subdivision, or governmental
entity a right to occupy or use the right-of-way. 

(d) 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.
Provides that real property in which this state has fee simple title that
is sold, conveyed, or otherwise disposed of and that is occupied or being
used by a public utility is subject to the utility's continued right to
occupy or use that property 

Sec.  5.  PLACEMENT OF UTILITY FACILITIES, LINES, AND EQUIPMENT.  (a)
Provides that a utility has the same right to place its facilities, lines,
or equipment in, over, or across right-of-way that is part of a state-owned
facility as the utility has with respect to the right-of-way of a state
highway under Chapter 181, Utilities Code.  Requires a utility 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 the department, on receipt of notice under Subsection (a) of
this section, to designate the location in the right-of-way where the
utility may place its facilities, lines, or equipment.  Authorizes the
utility, if the department does not respond within 90 days of the date the
department receives the notice, to place its facilities in a manner and at
a location that does not inconvenience the public in the use of the
right-of-way. 

(c) Authorizes the department to require a utility to relocate the
utility's facilities, lines, or equipment, at the utility's expense, to
allow the expansion or relocation of stateowned rail facilities.  Requires
the department to pay for the cost of the relocation under certain
conditions. 

(d) Authorizes a utility to use and operate a facility required to be
relocated under this section at the new location for the same period and on
the same terms as the utility has the right to do at the previous location
of the facility. 

Sec. 6.  ABANDONED RAIL ACCOUNT.  Provides that the abandoned rail account
is an account in the state highway fund.  Authorizes money in the account
to only be appropriated to  the department to implement this article.
Requires certain funds to be deposited to the credit of the account.
Provides that the abandoned rail account is exempt from any law that
relates to the abolition of funds or accounts created in the state treasury
or that relates to the abolition of dedications or rededications or revenue
in the state treasury.   

Sec.  7.  EXPENDITURE OF FUNDS.  Authorizes the department to receive,
accept, and expend money received from the state, any federal agency, or
other public or private sources for certain stated purposes.  Authorizes
the department to use money in the abandoned rail account established under
Section 6 of this article to carry out any power granted or duty imposed
under this article. 

Sec.  8.  RULES.  Requires the commission to adopt rules necessary to
implement this article. 

Sec.  9.  LIMITATION.  Provides that this article does not authorize the
department to regulate, operate, or maintain rail facilities. 

SECTION 3.  Amends Section 5, Chapter 623, Acts of the 67th Legislature,
Regular Session, 1981 (Article 6550c, V.T.C.S.)  by adding Subsection (r)
to prohibit a district from abandoning a rail line of the district with
respect to which state funds have been loaned or granted except under
certain conditions.  Requires the commission by rule to adopt procedures
for applying for and obtaining approval under this subsection. 

SECTION 4.  Effective date:  September 1, 2001.