77R9360 JD-F By Cain, et al. S.B. No. 406 Substitute the following for S.B. No. 406: By Hawley C.S.S.B. No. 406 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) "District" means a rural rail transportation 2-17 district created under Chapter 623, Acts of the 67th Legislature, 2-18 Regular Session, 1981 (Article 6550c, Vernon's Texas Civil 2-19 Statutes). 2-20 (4) "Maintenance facility" includes a workshop, a 2-21 service, storage, security, or personnel facility, and equipment 2-22 for such a facility. 2-23 (5) "Rail facility" means any real or personal 2-24 property, or an interest in that property, that is determined to be 2-25 necessary or convenient for the provision of a rail transportation 2-26 system and all property or interests in property necessary or 2-27 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 3-27 subsequent amendments, the department shall coordinate with the 4-1 governing body of any municipality, county, or district in which 4-2 all or a segment of the line is located as to whether: 4-3 (1) under this article, the department should acquire 4-4 the rail facilities to which the notice relates; or 4-5 (2) any other actions should be taken to provide for 4-6 continued rail transportation service in this state. 4-7 Sec. 3. ACQUISITION AND LEASE OF RAIL FACILITIES. (a) The 4-8 commission may authorize the department to acquire rail facilities 4-9 at locations and on routes the commission determines to be feasible 4-10 and viable for continued rail transportation service in this state. 4-11 (b) The department may enter into an agreement with an owner 4-12 of an operating railroad for the acquisition or use of rail 4-13 facilities on terms the department finds to be in the best 4-14 interests of this state. 4-15 (c) The department may enter into an agreement with a 4-16 district to lease, or contract for the use or operation of, all or 4-17 any part of a state-owned rail facility. The agreement must 4-18 provide for the department's monitoring of the service and 4-19 performance of an operator with which a district contracts under 4-20 Chapter 623, Acts of the 67th Legislature, Regular Session, 1981 4-21 (Article 6550c, Vernon's Texas Civil Statutes), and must provide 4-22 for the department's approval of a district's contract with an 4-23 operator. 4-24 (d) The department may enter into an agreement with a 4-25 district or a railroad company to sell all or any part of a 4-26 state-owned rail facility on terms the department finds to be in 4-27 the best interests of this state. 5-1 Sec. 4. ACQUISITION AND DISPOSAL OF REAL PROPERTY. (a) The 5-2 commission may authorize the department to acquire by purchase, in 5-3 the name of this state, any right-of-way or other interest in real 5-4 property the department finds necessary or convenient to the 5-5 acquisition of rail facilities under this article. 5-6 (b) The governing body of a public agency or a municipality, 5-7 county, or other political subdivision may convey to the department 5-8 without advertisement title to, or a right in, property that the 5-9 department determines to be necessary or convenient under this 5-10 section. 5-11 (c) Right-of-way acquired by the department under this 5-12 article remains subject to the terms of an existing easement, 5-13 lease, license, or other agreement that grants to a public utility, 5-14 pipeline operator, communications company, political subdivision, 5-15 or governmental entity a right to occupy or use the right-of-way. 5-16 (d) The department may sell, convey, or otherwise dispose of 5-17 a right or interest in real property acquired under this section 5-18 that the commission determines is no longer needed for department 5-19 purposes. Real property in which this state has fee simple title 5-20 that is sold, conveyed, or otherwise disposed of and that is 5-21 occupied or being used by a public utility is subject to the 5-22 utility's continued right to occupy or use that property. 5-23 Sec. 5. PLACEMENT OF UTILITY FACILITIES, LINES, AND 5-24 EQUIPMENT. (a) A utility has the same right to place its 5-25 facilities, lines, or equipment in, over, or across right-of-way 5-26 that is part of a state-owned facility as the utility has with 5-27 respect to the right-of-way of a state highway under Chapter 181, 6-1 Utilities Code. A utility shall notify the department of the 6-2 utility's intention to exercise that authority over right-of-way 6-3 that is part of state-owned rail facilities. 6-4 (b) On receipt of notice under Subsection (a) of this 6-5 section, the department may designate the location in the 6-6 right-of-way at which the utility may place its facilities, lines, 6-7 or equipment. If the department does not respond within 90 days of 6-8 the date the department receives the notice, the utility may place 6-9 its facilities in a manner and at a location that does not 6-10 inconvenience the public in the use of the right-of-way. 6-11 (c) The department may require a utility to relocate the 6-12 utility's facilities, lines, or equipment, at the utility's 6-13 expense, to allow for the expansion or relocation of rail 6-14 facilities owned by the state. The department shall pay for the 6-15 cost of the relocation if the utility acquired an easement or a 6-16 leasehold interest in the real property occupied by the facility to 6-17 be relocated before the department acquired the right-of-way under 6-18 this article. 6-19 (d) A utility may use and operate a facility required to be 6-20 relocated under this section at the new location for the same 6-21 period and on the same terms as the utility had the right to do at 6-22 the previous location of the facility. 6-23 Sec. 6. ABANDONED RAIL ACCOUNT. (a) The abandoned rail 6-24 account is an account in the state highway fund. Money in the 6-25 account may be appropriated only to the department to implement 6-26 this article. 6-27 (b) The following funds shall be deposited to the credit of 7-1 the abandoned rail account: 7-2 (1) federal funds received by this state that may be 7-3 used for a purpose of this article; 7-4 (2) state funds that are appropriated for a purpose of 7-5 this article; 7-6 (3) proceeds from the sale or conveyance of any 7-7 state-owned rail facilities; 7-8 (4) payments for the use of any state-owned rail 7-9 facilities; 7-10 (5) contributions by any entity for a purpose of this 7-11 article; and 7-12 (6) notwithstanding any other law, any accumulated 7-13 interest or other income earned on funds in the abandoned rail 7-14 account. 7-15 (c) The abandoned rail account is exempt from any law that 7-16 relates to the abolition of funds or accounts in the state treasury 7-17 or that relates to the abolition of dedications or rededications of 7-18 revenue in the state treasury. 7-19 Sec. 7. EXPENDITURE OF FUNDS. (a) The department may 7-20 receive, accept, and expend money received from the state, a 7-21 federal agency, or from another public or private source for: 7-22 (1) studies to determine the viability of rail 7-23 facilities for continued rail transportation service; 7-24 (2) the acquisition of rail facilities under this 7-25 article; and 7-26 (3) the relocation of utility facilities, lines, and 7-27 equipment under Section 5 of this article. 8-1 (b) The department may use money in the abandoned rail 8-2 account established under Section 6 of this article to carry out 8-3 any power granted or duty imposed under this article. 8-4 Sec. 8. RULES. The commission shall adopt rules as necessary 8-5 to implement this article. 8-6 Sec. 9. 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.