By Swinford H.B. No. 1125
77R4893 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to abandoned railroad right-of-way.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 6, Title 112, Revised Statutes, is
1-5 amended by adding Article 6340A to read as follows:
1-6 Art. 6340A. DISPOSITION OF CERTAIN ABANDONED RAILROAD
1-7 RIGHT-OF-WAY. (a) A railroad right-of-way is considered abandoned
1-8 and the railroad company's easement or reversionary fee title in
1-9 the right-of-way is extinguished on the later of:
1-10 (1) the date rail operations permanently cease over
1-11 the right-of-way if the railroad company does not intend to resume
1-12 rail operations on the right-of-way; or
1-13 (2) the 180th day after the date the federal Surface
1-14 Transportation Board unconditionally authorizes abandonment of the
1-15 right-of-way under 49 U.S.C. Section 10903.
1-16 (b) Subject to the easements and other interests described
1-17 in this article, title to railroad right-of-way considered
1-18 abandoned under this article:
1-19 (1) vests in the servient owner free from the easement
1-20 in the right-of-way held by the railroad company if the railroad
1-21 company had only an easement; or
1-22 (2) reverts to the holder of the reversion if the
1-23 railroad company held only a reversionary fee title to the
1-24 right-of-way.
2-1 (c) Not later than the 45th day after the date a
2-2 right-of-way is considered abandoned under Subsection (a) of this
2-3 article, the railroad company abandoning the right-of-way shall:
2-4 (1) file with the Railroad Commission of Texas notice
2-5 of the abandonment and a copy of the federal Surface Transportation
2-6 Board order authorizing the abandonment; and
2-7 (2) publish notice of the abandonment that generally
2-8 describes the right-of-way and the terms of this article in one or
2-9 more newspapers of general circulation in each county in which the
2-10 right-of-way is located.
2-11 (d) Not later than the 45th day after the date the railroad
2-12 company files a notice under Subsection (c)(1) of this article, the
2-13 railroad commission shall:
2-14 (1) certify whether this state holds an easement in
2-15 the abandoned right-of-way, if the railroad company holds a
2-16 reversionary fee title; and
2-17 (2) if an agency of this state proposes to acquire a
2-18 portion of the right-of-way in which the railroad retains a
2-19 nonreversionary fee title, notify the railroad company of that
2-20 proposal.
2-21 (e) If the notice and order described by Subsection (c)(1)
2-22 of this article are not filed or the railroad commission fails to
2-23 make the certification required under Subsection (d)(1) of this
2-24 article, the easement described by Subsection (d)(1) of this
2-25 article vests in this state on the 90th day after the date the
2-26 right-of-way is considered abandoned under Subsection (a) of this
2-27 article.
3-1 (f) The easement described by Subsection (d)(1) of this
3-2 article may be used only by this state for railroad or motor
3-3 vehicle purposes and only if the state provides written notice to
3-4 the owner of the fee title at least two years before the date the
3-5 state proposes to begin using the easement. Until the expiration
3-6 of the two-year period following notice, the fee title owner of the
3-7 right-of-way has the exclusive right to use the property encumbered
3-8 by the easement, subject to an easement or other interest described
3-9 by Subsection (h) of this article.
3-10 (g) If the railroad commission provides notice under
3-11 Subsection (d)(2) of this article, the railroad company shall enter
3-12 into good faith negotiations with the state agency that proposes to
3-13 acquire the nonreversionary fee title in the right-of-way. The
3-14 railroad company may not transfer its interest in the right-of-way
3-15 to a person other than the state agency before the 61st day after
3-16 the date the railroad company receives notice under Subsection
3-17 (d)(2) of this article.
3-18 (h) Except as provided by Subsection (i) of this article,
3-19 railroad right-of-way acquired under this section is subject to an
3-20 existing easement, lease, license, or other agreement under which a
3-21 public utility, pipeline operator, communications company,
3-22 governmental entity, or political subdivision of this state has
3-23 been granted the right to occupy or otherwise use the right-of-way.
3-24 (i) A person who is the fee title owner of right-of-way is
3-25 not required to assume any obligation under an existing easement,
3-26 lease, license, or other agreement described by Subsection (h) of
3-27 this article other than to permit and not interfere with the
4-1 occupancy required by the agreement.
4-2 (j) Unless the person to whom ownership of the right-of-way
4-3 reverts and the railroad company otherwise agree in writing, any
4-4 rails, switches, ties, or other personal property of the railroad
4-5 company that remains on reversionary right-of-way after the first
4-6 anniversary of the date the right-of-way is considered abandoned
4-7 under Subsection (a) of this article become the property of the
4-8 person.
4-9 (k) Notwithstanding any other law, a person to whom
4-10 ownership of railroad right-of-way reverts under this article is
4-11 not liable for any act or omission of another person that occurred
4-12 in connection with the right-of-way before the right-of-way
4-13 reverted under this article.
4-14 (l) Fee title to nonreversionary right-of-way located in a
4-15 county with a population of 250,000 or less that is considered
4-16 abandoned under Subsection (a) of this article and is leased to a
4-17 tenant who owns a building, structure, or other substantial
4-18 improvement on the right-of-way may be sold only to:
4-19 (1) the tenant;
4-20 (2) a person other than the tenant if:
4-21 (A) the right-of-way containing the improvement
4-22 is offered for sale by written notice to the tenant;
4-23 (B) the tenant does not accept the offer before
4-24 the 30th day after the date the tenant receives the offer; and
4-25 (C) the sale is made on terms that are the same
4-26 or more favorable to the seller than the terms offered to the
4-27 tenant;
5-1 (3) an authority governed by Chapter 451 or 452,
5-2 Transportation Code, to provide:
5-3 (A) freight or passenger railroad service; or
5-4 (B) a road or highway for motor vehicles;
5-5 (4) a municipality, if the right-of-way is in the
5-6 corporate limits of the municipality and intended for public use;
5-7 or
5-8 (5) a state agency or a political subdivision of this
5-9 state to provide:
5-10 (A) freight or passenger service; or
5-11 (B) a road or highway for motor vehicles.
5-12 (m) If it cannot be determined whether a railroad company
5-13 has a nonreversionary fee title to railroad right-of-way considered
5-14 abandoned under Subsection (a) of this article, title to the
5-15 abandoned right-of-way passes to the landowner adjacent to the
5-16 right-of-way up to the center line of the right-of-way.
5-17 SECTION 2. The Railroad Commission of Texas shall adopt
5-18 rules necessary to implement Article 6340A, Revised Statutes, as
5-19 added by this Act, not later than the 180th day after the effective
5-20 date of this Act.
5-21 SECTION 3. This Act takes effect September 1, 2001, and
5-22 applies only to an abandonment of a railroad right-of-way as
5-23 determined under Subsection (a) of Article 6340A, Revised Statutes,
5-24 as added by this Act, that occurs on or after that date.