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.