By Hawley H.B. No. 682 77R383 DRH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the preservation of rail facilities by the Texas 1-3 Department of Transportation. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. (a) The legislature finds that: 1-6 (1) the transportation of raw materials and products 1-7 is essential to the continued economic vitality of this state, 1-8 particularly of small towns and rural areas; 1-9 (2) the state contains many industries that are 1-10 heavily dependent on rail transportation for the movement of raw 1-11 materials and products; 1-12 (3) the rail transportation systems in some areas of 1-13 this state are adversely affected by abandonment and discontinuance 1-14 proceedings that cause the cessation of rail service to those 1-15 areas; 1-16 (4) raw materials and products that cannot be 1-17 transported by rail are typically transported by truck over state 1-18 highways and local roads and bridges, thereby contributing to 1-19 increased congestion and roadway maintenance costs, decreased 1-20 safety for the traveling public, and a decrease in the expected 1-21 life of those roadways; and 1-22 (5) it is in the interests of all citizens of this 1-23 state that existing rail systems be maintained for the most 1-24 efficient and economical movement of essential raw materials and 2-1 products to local, national, and export markets. 2-2 (b) The legislature further finds that it is a necessary and 2-3 valid public purpose for the Texas Transportation Commission and 2-4 the Texas Department of Transportation to participate in the 2-5 preservation of rail service and railway corridors as provided by 2-6 this Act. 2-7 SECTION 2. Chapter 13, Title 112, Revised Statutes, is 2-8 amended by adding Article 6550c-2 to read as follows: 2-9 Art. 6550c-2. PRESERVATION OF RAIL FACILITIES BY TEXAS 2-10 DEPARTMENT OF TRANSPORTATION 2-11 Sec. 1. DEFINITIONS. In this article: 2-12 (1) "Commission" means the Texas Transportation 2-13 Commission. 2-14 (2) "Department" means the Texas Department of 2-15 Transportation. 2-16 (3) "Maintenance facility" includes a workshop, a 2-17 service, storage, security, or personnel facility, and equipment 2-18 for a rail facility. 2-19 (4) "Rail facility" means any real or personal 2-20 property, or an interest in that property, that is determined to be 2-21 necessary or convenient for the provision of a rail transportation 2-22 system and all property or interests in property necessary or 2-23 convenient for the acquiring, providing, using, or equipping of a 2-24 rail transportation system, including rights-of-way, trackwork, 2-25 train controls, stations, and maintenance facilities. The term 2-26 does not include rolling stock. 2-27 (5) "Railroad operator" means a rural rail 3-1 transportation district created under Chapter 623, Acts of the 67th 3-2 Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas 3-3 Civil Statutes), a short line railroad, a switching railroad, or a 3-4 new railroad business whose projected revenues are not expected to 3-5 exceed those of a Class III rail carrier, as defined by federal 3-6 law. 3-7 (6) "Right-of-way" means a strip of land of a length 3-8 and width determined by the commission to be required, necessary, 3-9 or convenient for the provision of a rail transportation system and 3-10 the space over, under, or on the land where trackwork is to be 3-11 located. 3-12 (7) "Short line railroad" means a Class III carrier as 3-13 defined by federal law. 3-14 (8) "Station" means a passenger or freight service 3-15 building, terminal, or station, ticketing facility, waiting area, 3-16 platform, concession, elevator, escalator, facility for handicapped 3-17 access, access road, parking facility for passengers, baggage 3-18 handling facility, or local maintenance facility, together with any 3-19 interest in real property required, necessary, or convenient for 3-20 any of those items. 3-21 (9) "Switching railroad" means a railroad that 3-22 provides services to switch railcars between different locations or 3-23 trains or to switch freight between railcars. 3-24 (10) "Trackwork" means track, track beds, track bed 3-25 preparation, ties, rail fasteners, slabs, rails, emergency 3-26 crossovers, setout tracks, storage track, drains, fences, ballast, 3-27 switches, bridges, and structures. 4-1 (11) "Train controls" includes signals, lights and 4-2 other signaling, interlocking equipment, speed monitoring 4-3 equipment, braking systems, central traffic control facilities, and 4-4 communication systems. 4-5 Sec. 2. NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE 4-6 SERVICE. On receipt of notice of intent to abandon or discontinue 4-7 rail service described by 49 C.F.R. 1152.20, and its subsequent 4-8 amendments, the department shall consult with the governing body of 4-9 any municipality, county, or rural railroad transportation district 4-10 in which all or a segment of the line is located to determine 4-11 whether: 4-12 (1) under this article, the department should acquire 4-13 the rail facilities to which the notice relates; or 4-14 (2) any other actions should be taken to provide for 4-15 continued rail transportation service in this state. 4-16 Sec. 3. ACQUISITION AND LEASE OF RAIL FACILITIES. (a) The 4-17 commission may authorize the department to acquire rail facilities 4-18 at locations and on routes the commission determines to be feasible 4-19 and viable for continued rail transportation service in this state. 4-20 (b) The department may enter into an agreement with an owner 4-21 of an operating railroad for the acquisition or use of rail 4-22 facilities on terms the department finds to be in the best 4-23 interests of this state. 4-24 (c) The department may enter an agreement with a railroad 4-25 operator selected as provided by this article to lease, or contract 4-26 for the use or operation of, all or any part of a state-owned rail 4-27 facility. The agreement must provide for the department's 5-1 monitoring of a railroad operator's service and performance. 5-2 (d) The department may enter into an agreement with a 5-3 railroad operator to sell all or any part of a state-owned rail 5-4 facility on terms the department finds to be in the best interests 5-5 of this state. 5-6 Sec. 4. SELECTION OF RAILROAD OPERATORS. (a) The department 5-7 shall file notice with the secretary of state for publication in 5-8 the Texas Register of its intent to solicit proposals to lease all 5-9 or part of a state-owned rail facility. 5-10 (b) The commission shall adopt rules to allow the department 5-11 to negotiate the terms of a lease agreement with a railroad 5-12 operator under this article. 5-13 (c) The department may enter a lease agreement with a 5-14 railroad operator under this article only if the department 5-15 determines the agreement provides the best value to the state. 5-16 Sec. 5. ACQUISITION AND DISPOSAL OF REAL PROPERTY. (a) The 5-17 commission may authorize the department to acquire by purchase, in 5-18 the name of this state, any right-of-way or other interest in real 5-19 property the department finds necessary or convenient to the 5-20 acquisition of rail facilities under this article. 5-21 (b) The governing body of a municipality, county, or other 5-22 political subdivision may convey to the department without 5-23 advertisement title to, or a right in, property that the department 5-24 determines to be necessary or convenient under this section. 5-25 (c) The department may sell, convey, or otherwise dispose of 5-26 a right or interest in real property acquired under this section 5-27 that the commission determines is no longer needed for department 6-1 purposes. 6-2 Sec. 6. PLACEMENT OF UTILITY FACILITIES, LINES, AND 6-3 EQUIPMENT. (a) A utility that is authorized by law to place its 6-4 facilities, lines, or equipment in, over, or across railroad 6-5 right-of-way shall notify the department of the utility's intention 6-6 to exercise that authority over right-of-way that is part of 6-7 state-owned rail facilities. 6-8 (b) A utility may exercise the authority described by 6-9 Subsection (a) of this section over right-of-way that is part of 6-10 state-owned rail facilities only with the consent of the 6-11 department. 6-12 (c) On receipt of notice under Subsection (a) of this 6-13 section, the department may designate the location in the 6-14 right-of-way at which the utility may place its facilities, lines, 6-15 or equipment. 6-16 (d) The department may require a utility to relocate the 6-17 utility's facilities, lines, or equipment, at the utility's 6-18 expense, to allow for the expansion or relocation of rail 6-19 facilities owned by the state. 6-20 Sec. 7. ABANDONED RAIL ACCOUNT. (a) The abandoned rail 6-21 account is an account in the state highway fund. Money in the 6-22 account may be appropriated only to the department to implement 6-23 this article. 6-24 (b) The following funds shall be deposited to the credit of 6-25 the abandoned rail account: 6-26 (1) federal funds received by this state that may be 6-27 used for a purpose of this article; 7-1 (2) state funds that are appropriated for a purpose of 7-2 this article; 7-3 (3) proceeds from the sale or conveyance of any 7-4 state-owned rail facilities; 7-5 (4) payments for the use of any state-owned rail 7-6 facilities; 7-7 (5) contributions by any entity that may be used for a 7-8 purpose of this article; and 7-9 (6) notwithstanding any other law, any accumulated 7-10 interest or other income earned on funds in the abandoned rail 7-11 account. 7-12 (c) The abandoned rail account is exempt from any law that 7-13 relates to the abolition of funds or accounts in the state 7-14 treasury, or that relates to the abolition of dedications or 7-15 rededications of revenue in the state treasury. 7-16 Sec. 8. EXPENDITURE OF FUNDS. (a) The department may 7-17 receive, accept, and expend money received from the state, a 7-18 federal agency, or from another public or private source for: 7-19 (1) rail planning; 7-20 (2) studies to determine the viability of rail 7-21 facilities for continued rail transportation service; 7-22 (3) studies to determine the necessity for the 7-23 acquisition of rail facilities by the department; 7-24 (4) the acquisition of rail facilities under this 7-25 article; and 7-26 (5) assessment and remediation of environmental 7-27 contamination existing in or on rail facilities. 8-1 (b) The department may use money in the abandoned rail 8-2 account established under Section 7 of this article to carry out 8-3 any power granted or duty imposed under this article. 8-4 Sec. 9. RULES. The commission shall adopt rules as necessary 8-5 to implement this article. 8-6 Sec. 10. LIMITATION. This article does not authorize the 8-7 department to regulate, operate, or maintain rail facilities. 8-8 SECTION 3. This Act takes effect September 1, 2001.