By Truan S.B. No. 348
77R3870 JD-F
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 such a 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. Section 1152.20, and its
4-8 subsequent amendments, the department shall coordinate with the
4-9 governing body of any municipality, county, or rural rail
4-10 transportation district in which all or a segment of the line is
4-11 located as to 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 into an agreement with a
4-25 railroad operator selected as provided by this article to lease, or
4-26 contract for the use or operation of, all or any part of a
4-27 state-owned rail facility. The agreement must provide for the
5-1 department's monitoring of a railroad operator's service and
5-2 performance.
5-3 (d) The department may enter into an agreement with a
5-4 railroad operator to sell all or any part of a state-owned rail
5-5 facility on terms the department finds to be in the best interests
5-6 of this state.
5-7 Sec. 4. SELECTION OF RAILROAD OPERATORS. (a) The department
5-8 shall file notice with the secretary of state for publication in
5-9 the Texas Register of its intent to solicit proposals to lease all
5-10 or part of a state-owned rail facility.
5-11 (b) The commission shall adopt rules to allow the department
5-12 to:
5-13 (1) discuss a proposal with the offeror to assess the
5-14 feasibility of the proposal; and
5-15 (2) negotiate the terms of a lease agreement with a
5-16 railroad operator under this article.
5-17 (c) The department may enter into a lease agreement with a
5-18 railroad operator under this article only if the department
5-19 determines the agreement provides the best value to the state.
5-20 Sec. 5. ACQUISITION AND DISPOSAL OF REAL PROPERTY. (a) The
5-21 commission may authorize the department to acquire by purchase, in
5-22 the name of this state, any right-of-way or other interest in real
5-23 property the department finds necessary or convenient to the
5-24 acquisition of rail facilities under this article.
5-25 (b) The governing body of a public agency or a municipality,
5-26 county, or other political subdivision may convey to the department
5-27 without advertisement title to, or a right in, property that the
6-1 department determines to be necessary or convenient under this
6-2 section.
6-3 (c) The department may sell, convey, or otherwise dispose of
6-4 a right or interest in real property acquired under this section
6-5 that the commission determines is no longer needed for department
6-6 purposes.
6-7 Sec. 6. PLACEMENT OF UTILITY FACILITIES, LINES, AND
6-8 EQUIPMENT. (a) A utility that is authorized by law to place its
6-9 facilities, lines, or equipment in, over, or across railroad
6-10 right-of-way shall notify the department of the utility's intention
6-11 to exercise that authority over right-of-way that is part of
6-12 state-owned rail facilities.
6-13 (b) A utility may exercise the authority described by
6-14 Subsection (a) of this section over right-of-way that is part of
6-15 state-owned rail facilities only with the consent of the
6-16 department.
6-17 (c) On receipt of notice under Subsection (a) of this
6-18 section, the department may designate the location in the
6-19 right-of-way at which the utility may place its facilities, lines,
6-20 or equipment.
6-21 (d) The department may require a utility to relocate the
6-22 utility's facilities, lines, or equipment, at the utility's
6-23 expense, to allow for the expansion or relocation of rail
6-24 facilities owned by the state.
6-25 Sec. 7. ABANDONED RAIL ACCOUNT. (a) The abandoned rail
6-26 account is an account in the state highway fund. Money in the
6-27 account may be appropriated only to the department to implement
7-1 this article.
7-2 (b) The following funds shall be deposited to the credit of
7-3 the abandoned rail account:
7-4 (1) federal funds received by this state that may be
7-5 used for a purpose of this article;
7-6 (2) state funds that are appropriated for a purpose of
7-7 this article;
7-8 (3) proceeds from the sale or conveyance of any
7-9 state-owned rail facilities;
7-10 (4) payments for the use of any state-owned rail
7-11 facilities;
7-12 (5) contributions by any entity for a purpose of this
7-13 article; and
7-14 (6) notwithstanding any other law, any accumulated
7-15 interest or other income earned on funds in the abandoned rail
7-16 account.
7-17 (c) The abandoned rail account is exempt from any law that
7-18 relates to the abolition of funds or accounts in the state
7-19 treasury, or that relates to the abolition of dedications or
7-20 rededications of revenue in the state treasury.
7-21 Sec. 8. EXPENDITURE OF FUNDS. (a) The department may
7-22 receive, accept, and expend money received from the state, a
7-23 federal agency, or from another public or private source for:
7-24 (1) rail planning;
7-25 (2) studies to determine the viability of rail
7-26 facilities for continued rail transportation service;
7-27 (3) studies to determine the necessity for the
8-1 acquisition of rail facilities by the department;
8-2 (4) the acquisition of rail facilities under this
8-3 article; and
8-4 (5) assessment and remediation of environmental
8-5 contamination existing in or on rail facilities.
8-6 (b) The department may use money in the abandoned rail
8-7 account established under Section 7 of this article to carry out
8-8 any power granted or duty imposed under this article.
8-9 Sec. 9. RULES. The commission shall adopt rules as necessary
8-10 to implement this article.
8-11 Sec. 10. LIMITATION. This article does not authorize the
8-12 department to regulate, operate, or maintain rail facilities.
8-13 SECTION 3. This Act takes effect September 1, 2001.