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.