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.