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
1-25 products to local, national, and export markets.
2-1 (b) The legislature further finds that it is a necessary and
2-2 valid public purpose for the Texas Transportation Commission and
2-3 the Texas Department of Transportation to participate in the
2-4 preservation of rail service and railway corridors as provided by
2-5 this Act.
2-6 SECTION 2. Chapter 13, Title 112, Revised Statutes, is
2-7 amended by adding Article 6550c-2 to read as follows:
2-8 Art. 6550c-2. PRESERVATION OF RAIL FACILITIES BY TEXAS
2-9 DEPARTMENT OF TRANSPORTATION
2-10 Sec. 1. DEFINITIONS. In this article:
2-11 (1) "Commission" means the Texas Transportation
2-12 Commission.
2-13 (2) "Department" means the Texas Department of
2-14 Transportation.
2-15 (3) "District" 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).
2-19 (4) "Maintenance facility" includes a workshop, a
2-20 service, storage, security, or personnel facility, and equipment
2-21 for such a facility.
2-22 (5) "Rail facility" means any real or personal
2-23 property, or an interest in that property, that is determined to be
2-24 necessary or convenient for the provision of a rail transportation
2-25 system and all property or interests in property necessary or
2-26 convenient for the acquiring, providing, using, or equipping of a
3-1 rail transportation system, including rights-of-way, trackwork,
3-2 train controls, stations, and maintenance facilities. The term
3-3 does not include rolling stock.
3-4 (6) "Right-of-way" means a strip of land of a length
3-5 and width determined by the commission to be required, necessary,
3-6 or convenient for the provision of a rail transportation system and
3-7 the space over, under, or on the land where trackwork is to be
3-8 located.
3-9 (7) "Station" means a passenger or freight service
3-10 building, terminal, or station, ticketing facility, waiting area,
3-11 platform, concession, elevator, escalator, facility for handicapped
3-12 access, access road, parking facility for passengers, baggage
3-13 handling facility, or local maintenance facility, together with any
3-14 interest in real property required, necessary, or convenient for
3-15 any of those items.
3-16 (8) "Trackwork" means track, track beds, track bed
3-17 preparation, ties, rail fasteners, slabs, rails, emergency
3-18 crossovers, setout tracks, storage track, drains, fences, ballast,
3-19 switches, bridges, and structures.
3-20 (9) "Train controls" includes signals, lights and
3-21 other signaling, interlocking equipment, speed monitoring
3-22 equipment, braking systems, central traffic control facilities, and
3-23 communication systems.
3-24 Sec. 2. NOTIFICATION OF INTENT TO ABANDON OR DISCONTINUE
3-25 SERVICE. On receipt of notice of intent to abandon or discontinue
3-26 rail service described by 49 C.F.R. Section 1152.20, and its
4-1 subsequent amendments, the department shall coordinate with the
4-2 governing body of any municipality, county, or district in which
4-3 all or a segment of the line is located as to whether:
4-4 (1) under this article, the department should acquire
4-5 the rail facilities to which the notice relates; or
4-6 (2) any other actions should be taken to provide for
4-7 continued rail transportation service in this state.
4-8 Sec. 3. ACQUISITION AND LEASE OF RAIL FACILITIES. (a) The
4-9 commission may authorize the department to acquire rail facilities
4-10 at locations and on routes the commission determines to be feasible
4-11 and viable for continued rail transportation service in this state.
4-12 (b) The department may enter into an agreement with an owner
4-13 of an operating railroad for the acquisition or use of rail
4-14 facilities on terms the department finds to be in the best
4-15 interests of this state.
4-16 (c) The department may enter into an agreement with a
4-17 district to lease, or contract for the use or operation of, all or
4-18 any part of a state-owned rail facility. The agreement must
4-19 provide for the department's monitoring of the service and
4-20 performance of an operator with which a district contracts under
4-21 Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
4-22 (Article 6550c, Vernon's Texas Civil Statutes), and must provide
4-23 for the department's approval of a district's contract with an
4-24 operator.
4-25 (d) The department may enter into an agreement with a
4-26 district or a railroad company to sell all or any part of a
5-1 state-owned rail facility on terms the department finds to be in
5-2 the best interests of this state.
5-3 Sec. 4. ACQUISITION AND DISPOSAL OF REAL PROPERTY. (a) The
5-4 commission may authorize the department to acquire by purchase, in
5-5 the name of this state, any right-of-way or other interest in real
5-6 property the department finds necessary or convenient to the
5-7 acquisition of rail facilities under this article.
5-8 (b) The governing body of a public agency or a municipality,
5-9 county, or other political subdivision may convey to the department
5-10 without advertisement title to, or a right in, property that the
5-11 department determines to be necessary or convenient under this
5-12 section.
5-13 (c) Right-of-way acquired by the department under this
5-14 article remains subject to the terms of an existing easement,
5-15 lease, license, or other agreement that grants to a public utility,
5-16 pipeline operator, communications company, political subdivision,
5-17 or governmental entity a right to occupy or use the right-of-way.
5-18 (d) The department may sell, convey, or otherwise dispose of
5-19 a right or interest in real property acquired under this section
5-20 that the commission determines is no longer needed for department
5-21 purposes. Real property in which this state has fee simple title
5-22 that is sold, conveyed, or otherwise disposed of and that is
5-23 occupied or being used by a public utility is subject to the
5-24 utility's continued right to occupy or use that property.
5-25 Sec. 5. PLACEMENT OF UTILITY FACILITIES, LINES, AND
5-26 EQUIPMENT. (a) A utility has the same right to place its
6-1 facilities, lines, or equipment in, over, or across right-of-way
6-2 that is part of a state-owned facility as the utility has with
6-3 respect to the right-of-way of a state highway under Chapter 181,
6-4 Utilities Code. A utility shall notify the department of the
6-5 utility's intention to exercise that authority over right-of-way
6-6 that is part of state-owned rail facilities.
6-7 (b) On receipt of notice under Subsection (a) of this
6-8 section, the department may designate the location in the
6-9 right-of-way at which the utility may place its facilities, lines,
6-10 or equipment. If the department does not respond within 90 days of
6-11 the date the department receives the notice, the utility may place
6-12 its facilities in a manner and at a location that does not
6-13 inconvenience the public in the use of the right-of-way.
6-14 (c) The department may require a utility to relocate the
6-15 utility's facilities, lines, or equipment, at the utility's
6-16 expense, to allow for the expansion or relocation of rail
6-17 facilities owned by the state. The department shall pay for the
6-18 cost of the relocation if the utility acquired an easement or a
6-19 leasehold interest in the real property occupied by the facility to
6-20 be relocated before the department acquired the right-of-way under
6-21 this article.
6-22 (d) A utility may use and operate a facility required to be
6-23 relocated under this section at the new location for the same
6-24 period and on the same terms as the utility had the right to do at
6-25 the previous location of the facility.
6-26 Sec. 6. ABANDONED RAIL ACCOUNT. (a) The abandoned rail
7-1 account is an account in the state highway fund. Money in the
7-2 account may be appropriated only to the department to implement
7-3 this article.
7-4 (b) The following funds shall be deposited to the credit of
7-5 the abandoned rail account:
7-6 (1) federal funds received by this state that may be
7-7 used for a purpose of this article;
7-8 (2) state funds that are appropriated for a purpose of
7-9 this article;
7-10 (3) proceeds from the sale or conveyance of any
7-11 state-owned rail facilities;
7-12 (4) payments for the use of any state-owned rail
7-13 facility other than the Texas State Railroad operated by the Parks
7-14 and Wildlife Department under Section 22.182, Parks and Wildlife
7-15 Code;
7-16 (5) contributions by any entity for a purpose of this
7-17 article; and
7-18 (6) notwithstanding any other law, any accumulated
7-19 interest or other income earned on funds in the abandoned rail
7-20 account.
7-21 (c) The abandoned rail account is exempt from any law that
7-22 relates to the abolition of funds or accounts in the state treasury
7-23 or that relates to the abolition of dedications or rededications of
7-24 revenue in the state treasury.
7-25 Sec. 7. EXPENDITURE OF FUNDS. (a) The department may
7-26 receive, accept, and expend money received from the state, a
8-1 federal agency, or from another public or private source for:
8-2 (1) studies to determine the viability of rail
8-3 facilities for continued rail transportation service;
8-4 (2) the acquisition of rail facilities under this
8-5 article; and
8-6 (3) the relocation of utility facilities, lines, and
8-7 equipment under Section 5 of this article.
8-8 (b) The department may use money in the abandoned rail
8-9 account established under Section 6 of this article to carry out
8-10 any power granted or duty imposed under this article.
8-11 Sec. 8. RULES. The commission shall adopt rules as
8-12 necessary to implement this article.
8-13 Sec. 9. LIMITATION. This article does not authorize the
8-14 department to regulate, operate, or maintain rail facilities.
8-15 SECTION 3. Section 5, Chapter 623, Acts of the 67th
8-16 Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
8-17 Civil Statutes), is amended by adding Subsection (r) to read as
8-18 follows:
8-19 (r) A district may not abandon a rail line of the district
8-20 with respect to which state funds have been loaned or granted
8-21 unless the abandonment is approved by the Texas Transportation
8-22 Commission as being consistent with the policies of this Act. The
8-23 commission by rule shall adopt procedures for applying for and
8-24 obtaining approval under this subsection.
8-25 SECTION 4. This Act takes effect September 1, 2001.
S.B. No. 406
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 406 passed the Senate on
March 19, 2001, by a viva-voce vote; May 16, 2001, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 17, 2001, House granted request of the
Senate; May 27, 2001, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 406 passed the House, with
amendments, on May 4, 2001, by a non-record vote; May 17, 2001,
House granted request of the Senate for appointment of Conference
Committee; May 26, 2001, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor