By: Cain S.B. No. 406
2001S0177/1
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 commission and the department in the preservation of rail
2-5 service and railway corridors in accordance with Subchapter M,
2-6 Chapter 201, Transportation Code, as added by this Act.
2-7 SECTION 2. Chapter 201, Transportation Code, is amended by
2-8 adding Subchapter M to read as follows:
2-9 SUBCHAPTER M. PRESERVATION OF RAIL FACILITIES
2-10 Sec. 201.951. DEFINITIONS. In this subchapter:
2-11 (1) "Maintenance facility" includes a workshop, a
2-12 service, storage, security, or personnel facility, and all
2-13 equipment for the facility.
2-14 (2) "Operator" means a rural rail transportation
2-15 district created under Chapter 623, Acts of the 67th Legislature,
2-16 Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
2-17 Statutes), a shortline railroad, a switching railroad, or a new
2-18 railroad business whose projected revenues are not expected to
2-19 exceed those of a Class III rail carrier as described by 49 C.F.R.
2-20 Section 1201.1-1.
2-21 (3) "Owner" includes individuals, partnerships,
2-22 associations, corporations, political subdivisions or agencies of
2-23 this state, the United States or any agency or instrumentality of
2-24 the United States, and common carriers by rail and railroad
2-25 companies having any title or interest in real or personal property
2-26 authorized to be acquired, leased, or used under this subchapter.
3-1 (4) "Rail facilities" means any real or personal
3-2 property, or any interest in that property, that is determined to
3-3 be necessary or convenient for the provision of a rail
3-4 transportation system, and all property or interests necessary or
3-5 convenient for acquiring, providing, using, or equipping the
3-6 system, including rights-of-way, trackwork, train controls,
3-7 stations, and maintenance facilities, but not including rolling
3-8 stock.
3-9 (5) "Right-of-way" means a strip of land in a length
3-10 and width determined by the commission to be required, necessary,
3-11 or convenient for the provision of a rail transportation system and
3-12 over, on, or under which trackwork is to be located.
3-13 (6) "Shortline railroad" means a Class III carrier as
3-14 described by 49 C.F.R. Section 1201.1-1.
3-15 (7) "Station" means a passenger or freight service
3-16 building, terminal, or station, ticketing facility, waiting area,
3-17 platform, concession, elevator, escalator, facility for handicapped
3-18 access, access road, parking facility for passengers, baggage
3-19 handling facility, or local maintenance facility, together with any
3-20 interest in real property necessary or convenient for any of the
3-21 listed items.
3-22 (8) "Switching railroad" means a railroad that
3-23 provides services to switch rail cars between different locations
3-24 or trains or to switch freight between rail cars.
3-25 (9) "Trackwork" means track, track beds, track bed
3-26 preparation, ties, rail fasteners, slabs, rails, emergency
4-1 crossovers, setout tracks, storage track, drains, fences, ballast,
4-2 switches, bridges, and structures.
4-3 (10) "Train controls" includes signals, lights, and
4-4 other signaling, interlocking equipment, speed monitoring
4-5 equipment, braking systems, central traffic control facilities, and
4-6 communication systems.
4-7 Sec. 201.952. ABANDONED RAIL ACCOUNT. (a) The abandoned
4-8 rail account is an account in the state highway fund. Funds in the
4-9 account may only be appropriated to the department for the
4-10 preservation of rail service and railway corridors and other
4-11 purposes described in this subchapter.
4-12 (b) The following funds shall be deposited to the credit of
4-13 the account:
4-14 (1) federal funds received by the state that may be
4-15 used for the purposes identified by Subsection (a);
4-16 (2) state funds appropriated for the purposes
4-17 identified by Subsection (a);
4-18 (3) proceeds from any sale or conveyance of any
4-19 state-owned rail facilities;
4-20 (4) payments for the use of any state-owned rail
4-21 facilities;
4-22 (5) contributions by any entity for the purposes
4-23 identified by Subsection (a); and
4-24 (6) notwithstanding any other law, any accumulated
4-25 interest and income earned on funds in the account.
4-26 (c) The abandoned rail account is exempt from the
5-1 application of any act of the legislature that relates to the
5-2 abolition of funds or accounts created in the state treasury or
5-3 that relates to the abolition of dedications or rededications of
5-4 revenue in the state treasury.
5-5 Sec. 201.953. NOTIFICATION OF INTENT TO ABANDON OR
5-6 DISCONTINUE SERVICE. On receipt of the notice of intent required
5-7 under 49 C.F.R. Section 1152.20, the department shall coordinate
5-8 with the governing bodies of any municipality, county, or rural
5-9 rail transportation district within which a line proposed for
5-10 abandonment or discontinuance of service is located in order to
5-11 assess interest in the department's acquisition of the affected
5-12 rail facilities under this subchapter or in any other action
5-13 necessary to provide for continued rail transportation service.
5-14 Sec. 201.954. ACQUISITION AND LEASE OF RAIL FACILITIES. (a)
5-15 The commission may authorize the department to acquire rail
5-16 facilities at locations and on routes the commission determines to
5-17 be feasible and viable for continued rail transportation service.
5-18 (b) The department may enter into agreements with the owners
5-19 of operating railroads for the acquisition or use of rail
5-20 facilities on terms and conditions the department considers to be
5-21 in the best interests of the state.
5-22 (c) The department may lease, and contract for the use or
5-23 operation of, all or part of state-owned rail facilities to any
5-24 operator. An operator shall be selected in accordance with the
5-25 requirements of Section 201.955. A lease agreement shall provide
5-26 for the department's monitoring of an operator's service and
6-1 performance. The department may enter into agreements with any
6-2 operator to sell all or any part of state-owned rail facilities on
6-3 terms and conditions and for amounts the department considers to be
6-4 in the best interests of the state.
6-5 Sec. 201.955. SELECTION OF OPERATORS. (a) The department
6-6 shall file a notice with the secretary of state for publication in
6-7 the Texas Register soliciting proposals to lease all or any part of
6-8 state-owned rail facilities.
6-9 (b) Under rules adopted by the commission, the department
6-10 shall discuss a proposal with an offeror to assess the feasibility
6-11 of the proposal and to negotiate the terms of a lease agreement.
6-12 (c) The department shall enter into a lease agreement with
6-13 the offeror whose proposal provides the best value to the state.
6-14 Sec. 201.956. ACQUISITION AND DISPOSAL OF REAL PROPERTY.
6-15 (a) The commission may authorize the department to acquire by
6-16 purchase, in the name of the state, any right-of-way or other
6-17 interest in real property determined to be necessary or convenient
6-18 to the department's acquisition of rail facilities under this
6-19 subchapter.
6-20 (b) The governing body of a municipality, county, other
6-21 political subdivision, or public agency may, without advertisement,
6-22 convey the title to or a right in property determined by the
6-23 department to be necessary or convenient under this section.
6-24 (c) The department may sell, convey, or otherwise dispose of
6-25 any rights or other interests in real property acquired under this
6-26 section that the commission determines are no longer needed for
7-1 department purposes.
7-2 Sec. 201.957. PLACEMENT OF UTILITY FACILITIES, LINES, AND
7-3 EQUIPMENT. (a) A utility that is authorized by law to place its
7-4 facilities, lines, or equipment in, over, or across railroad
7-5 right-of-way shall notify the department of an intention to place
7-6 any facilities, lines, or equipment in, over, or across
7-7 right-of-way that is part of state-owned rail facilities.
7-8 (b) A utility may exercise the authority to place its
7-9 facilities, lines, or equipment in, over, or across right-of-way
7-10 that is part of state-owned rail facilities with the consent of the
7-11 department.
7-12 (c) On receipt of the notice, the department may designate
7-13 the location in the right-of-way where the utility may place its
7-14 facilities, lines, or equipment.
7-15 (d) The department may require a utility to relocate the
7-16 utility's facilities, lines, or equipment, at the utility's
7-17 expense, to allow the expansion or relocation of state-owned rail
7-18 facilities.
7-19 Sec. 201.958. EXPENDITURE OF FUNDS. (a) The department may
7-20 receive, accept, and expend funds, including funds necessary to
7-21 assess and remediate environmental contamination existing in or on
7-22 the rail facilities, from the state, any federal agency, or other
7-23 public or private sources for:
7-24 (1) rail planning;
7-25 (2) studies to determine the viability of rail
7-26 facilities for continued rail transportation service;
8-1 (3) studies to determine the necessity for the
8-2 department's acquisition of the rail facilities; and
8-3 (4) the acquisition of rail facilities under this
8-4 subchapter.
8-5 (b) The department may expend income and funds from the
8-6 abandoned rail account established under Section 201.952 in the
8-7 exercise of any of the powers and duties provided by this
8-8 subchapter.
8-9 Sec. 201.959. ADOPTION OF RULES. The commission shall adopt
8-10 rules necessary to implement this subchapter.
8-11 Sec. 201.960. LIMITATION. This subchapter does not
8-12 authorize the department to regulate, operate, or maintain rail
8-13 facilities.
8-14 SECTION 3. This Act takes effect September 1, 2001.