By: Cain, Truan S.B. No. 406
Shapiro
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 the state,
1-8 particularly the economies 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 the state are adversely affected by abandonment and discontinuance
1-14 proceedings that would 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, which contributes 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 interest 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
1-25 products to local, national, and export markets.
2-1 (b) The legislature declares that it is a necessary and
2-2 valid public purpose, in order to further the purposes described by
2-3 Subsection (a) of this section, to provide for the participation of
2-4 the Texas Transportation Commission and the Texas Department of
2-5 Transportation in the preservation of rail service and railway
2-6 corridors in accordance with Subchapter M, Chapter 201,
2-7 Transportation Code, as added by this Act.
2-8 SECTION 2. Chapter 201, Transportation Code, is amended by
2-9 adding Subchapter M to read as follows:
2-10 SUBCHAPTER M. PRESERVATION OF RAIL FACILITIES
2-11 Sec. 201.951. DEFINITIONS. In this subchapter:
2-12 (1) "Maintenance facility" includes a workshop, a
2-13 service, storage, security, or personnel facility, and all
2-14 equipment for the facility.
2-15 (2) "Operator" means a rural rail transportation
2-16 district created under Chapter 623, Acts of the 67th Legislature,
2-17 Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
2-18 Statutes), a shortline railroad, a switching railroad, or a new
2-19 railroad business whose projected revenues are not expected to
2-20 exceed those of a Class III rail carrier as described by 49 C.F.R.
2-21 Section 1201.1-1.
2-22 (3) "Owner" includes individuals, partnerships,
2-23 associations, corporations, political subdivisions or agencies of
2-24 this state, the United States or any agency or instrumentality of
2-25 the United States, and common carriers by rail and railroad
2-26 companies having any title or interest in real or personal property
3-1 authorized to be acquired, leased, or used under this subchapter.
3-2 (4) "Rail facilities" means any real or personal
3-3 property, or any interest in that property, that is determined to
3-4 be necessary or convenient for the provision of a rail
3-5 transportation system, and all property or interests necessary or
3-6 convenient for acquiring, providing, using, or equipping the
3-7 system, including rights-of-way, trackwork, train controls,
3-8 stations, and maintenance facilities, but not including rolling
3-9 stock.
3-10 (5) "Right-of-way" means a strip of land in a length
3-11 and width determined by the commission to be required, necessary,
3-12 or convenient for the provision of a rail transportation system and
3-13 over, on, or under which trackwork is to be located.
3-14 (6) "Shortline railroad" means a Class III carrier as
3-15 described by 49 C.F.R. Section 1201.1-1.
3-16 (7) "Station" means a passenger or freight service
3-17 building, terminal, or station, ticketing facility, waiting area,
3-18 platform, concession, elevator, escalator, facility for handicapped
3-19 access, access road, parking facility for passengers, baggage
3-20 handling facility, or local maintenance facility, together with any
3-21 interest in real property necessary or convenient for any of the
3-22 listed items.
3-23 (8) "Switching railroad" means a railroad that
3-24 provides services to switch rail cars between different locations
3-25 or trains or to switch freight between rail cars.
3-26 (9) "Trackwork" means track, track beds, track bed
4-1 preparation, ties, rail fasteners, slabs, rails, emergency
4-2 crossovers, setout tracks, storage track, drains, fences, ballast,
4-3 switches, bridges, and structures.
4-4 (10) "Train controls" includes signals, lights, and
4-5 other signaling, interlocking equipment, speed monitoring
4-6 equipment, braking systems, central traffic control facilities, and
4-7 communication systems.
4-8 Sec. 201.952. ABANDONED RAIL ACCOUNT. (a) The abandoned
4-9 rail account is an account in the state highway fund. Funds in the
4-10 account may only be appropriated to the department for the
4-11 preservation of rail service and railway corridors and other
4-12 purposes described in this subchapter.
4-13 (b) The following funds shall be deposited to the credit of
4-14 the account:
4-15 (1) federal funds received by the state that may be
4-16 used for the purposes identified by Subsection (a);
4-17 (2) state funds appropriated for the purposes
4-18 identified by Subsection (a);
4-19 (3) proceeds from any sale or conveyance of any
4-20 state-owned rail facilities;
4-21 (4) payments for the use of any state-owned rail
4-22 facilities;
4-23 (5) contributions by any entity for the purposes
4-24 identified by Subsection (a); and
4-25 (6) notwithstanding any other law, any accumulated
4-26 interest and income earned on funds in the account.
5-1 (c) The abandoned rail account is exempt from the
5-2 application of any act of the legislature that relates to the
5-3 abolition of funds or accounts created in the state treasury or
5-4 that relates to the abolition of dedications or rededications of
5-5 revenue in the state treasury.
5-6 Sec. 201.953. NOTIFICATION OF INTENT TO ABANDON OR
5-7 DISCONTINUE SERVICE. On receipt of the notice of intent required
5-8 under 49 C.F.R. Section 1152.20, the department shall coordinate
5-9 with the governing bodies of any municipality, county, or rural
5-10 rail transportation district within which a line proposed for
5-11 abandonment or discontinuance of service is located in order to
5-12 assess interest in the department's acquisition of the affected
5-13 rail facilities under this subchapter or in any other action
5-14 necessary to provide for continued rail transportation service.
5-15 Sec. 201.954. ACQUISITION AND LEASE OF RAIL FACILITIES.
5-16 (a) The commission may authorize the department to acquire rail
5-17 facilities at locations and on routes the commission determines to
5-18 be feasible and viable for continued rail transportation service.
5-19 (b) The department may enter into agreements with the owners
5-20 of operating railroads for the acquisition or use of rail
5-21 facilities on terms and conditions the department considers to be
5-22 in the best interests of the state.
5-23 (c) The department may lease, and contract for the use or
5-24 operation of, all or part of state-owned rail facilities to any
5-25 operator. An operator shall be selected in accordance with the
5-26 requirements of Section 201.955. A lease agreement shall provide
6-1 for the department's monitoring of an operator's service and
6-2 performance. The department may enter into agreements with any
6-3 operator to sell all or any part of state-owned rail facilities on
6-4 terms and conditions and for amounts the department considers to be
6-5 in the best interests of the state.
6-6 Sec. 201.955. SELECTION OF OPERATORS. (a) The department
6-7 shall file a notice with the secretary of state for publication in
6-8 the Texas Register soliciting proposals to lease all or any part of
6-9 state-owned rail facilities.
6-10 (b) Under rules adopted by the commission, the department
6-11 shall discuss a proposal with an offeror to assess the feasibility
6-12 of the proposal and to negotiate the terms of a lease agreement.
6-13 (c) The department shall enter into a lease agreement with
6-14 the offeror whose proposal provides the best value to the state.
6-15 Sec. 201.956. ACQUISITION AND DISPOSAL OF REAL PROPERTY.
6-16 (a) The commission may authorize the department to acquire by
6-17 purchase, in the name of the state, any right-of-way or other
6-18 interest in real property determined to be necessary or convenient
6-19 to the department's acquisition of rail facilities under this
6-20 subchapter.
6-21 (b) The governing body of a municipality, county, other
6-22 political subdivision, or public agency may, without advertisement,
6-23 convey the title to or a right in property determined by the
6-24 department to be necessary or convenient under this section.
6-25 (c) The department may sell, convey, or otherwise dispose of
6-26 any rights or other interests in real property acquired under this
7-1 section that the commission determines are no longer needed for
7-2 department purposes.
7-3 Sec. 201.957. PLACEMENT OF UTILITY FACILITIES, LINES, AND
7-4 EQUIPMENT. (a) A utility that is authorized by law to place its
7-5 facilities, lines, or equipment in, over, or across railroad
7-6 right-of-way shall notify the department of an intention to place
7-7 any facilities, lines, or equipment in, over, or across
7-8 right-of-way that is part of state-owned rail facilities.
7-9 (b) A utility may exercise the authority to place its
7-10 facilities, lines, or equipment in, over, or across right-of-way
7-11 that is part of state-owned rail facilities with the consent of the
7-12 department.
7-13 (c) On receipt of the notice, the department may designate
7-14 the location in the right-of-way where the utility may place its
7-15 facilities, lines, or equipment.
7-16 (d) The department may require a utility to relocate the
7-17 utility's facilities, lines, or equipment, at the utility's
7-18 expense, to allow the expansion or relocation of state-owned rail
7-19 facilities.
7-20 Sec. 201.958. EXPENDITURE OF FUNDS. (a) The department may
7-21 receive, accept, and expend funds, including funds necessary to
7-22 assess and remediate environmental contamination existing in or on
7-23 the rail facilities, from the state, any federal agency, or other
7-24 public or private sources for:
7-25 (1) rail planning;
7-26 (2) studies to determine the viability of rail
8-1 facilities for continued rail transportation service;
8-2 (3) studies to determine the necessity for the
8-3 department's acquisition of the rail facilities; and
8-4 (4) the acquisition of rail facilities under this
8-5 subchapter.
8-6 (b) The department may expend income and funds from the
8-7 abandoned rail account established under Section 201.952 in the
8-8 exercise of any of the powers and duties provided by this
8-9 subchapter.
8-10 Sec. 201.959. ADOPTION OF RULES. The commission shall adopt
8-11 rules necessary to implement this subchapter.
8-12 Sec. 201.960. LIMITATION. This subchapter does not
8-13 authorize the department to regulate, operate, or maintain rail
8-14 facilities.
8-15 SECTION 3. This Act takes effect September 1, 2001.