1-1 By: Cain, Truan S.B. No. 406 1-2 (In the Senate - Filed January 25, 2001; January 29, 2001, 1-3 read first time and referred to Committee on State Affairs; 1-4 February 21, 2001, reported favorably by the following vote: Yeas 1-5 9, Nays 0; February 21, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the preservation of rail facilities by the Texas 1-9 Department of Transportation. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. (a) The legislature finds that: 1-12 (1) the transportation of raw materials and products 1-13 is essential to the continued economic vitality of the state, 1-14 particularly the economies of small towns and rural areas; 1-15 (2) the state contains many industries that are 1-16 heavily dependent on rail transportation for the movement of raw 1-17 materials and products; 1-18 (3) the rail transportation systems in some areas of 1-19 the state are adversely affected by abandonment and discontinuance 1-20 proceedings that would cause the cessation of rail service to those 1-21 areas; 1-22 (4) raw materials and products that cannot be 1-23 transported by rail are typically transported by truck over state 1-24 highways and local roads and bridges, which contributes to 1-25 increased congestion and roadway maintenance costs, decreased 1-26 safety for the traveling public, and a decrease in the expected 1-27 life of those roadways; and 1-28 (5) it is in the interest of all citizens of this 1-29 state that existing rail systems be maintained for the most 1-30 efficient and economical movement of essential raw materials and 1-31 products to local, national, and export markets. 1-32 (b) The legislature declares that it is a necessary and 1-33 valid public purpose, in order to further the purposes described by 1-34 Subsection (a) of this section, to provide for the participation of 1-35 the Texas Transportation Commission and the Texas Department of 1-36 Transportation in the preservation of rail service and railway 1-37 corridors in accordance with Subchapter M, Chapter 201, 1-38 Transportation Code, as added by this Act. 1-39 SECTION 2. Chapter 201, Transportation Code, is amended by 1-40 adding Subchapter M to read as follows: 1-41 SUBCHAPTER M. PRESERVATION OF RAIL FACILITIES 1-42 Sec. 201.951. DEFINITIONS. In this subchapter: 1-43 (1) "Maintenance facility" includes a workshop, a 1-44 service, storage, security, or personnel facility, and all 1-45 equipment for the facility. 1-46 (2) "Operator" means a rural rail transportation 1-47 district created under Chapter 623, Acts of the 67th Legislature, 1-48 Regular Session, 1981 (Article 6550c, Vernon's Texas Civil 1-49 Statutes), a shortline railroad, a switching railroad, or a new 1-50 railroad business whose projected revenues are not expected to 1-51 exceed those of a Class III rail carrier as described by 49 C.F.R. 1-52 Section 1201.1-1. 1-53 (3) "Owner" includes individuals, partnerships, 1-54 associations, corporations, political subdivisions or agencies of 1-55 this state, the United States or any agency or instrumentality of 1-56 the United States, and common carriers by rail and railroad 1-57 companies having any title or interest in real or personal property 1-58 authorized to be acquired, leased, or used under this subchapter. 1-59 (4) "Rail facilities" means any real or personal 1-60 property, or any interest in that property, that is determined to 1-61 be necessary or convenient for the provision of a rail 1-62 transportation system, and all property or interests necessary or 1-63 convenient for acquiring, providing, using, or equipping the 1-64 system, including rights-of-way, trackwork, train controls, 2-1 stations, and maintenance facilities, but not including rolling 2-2 stock. 2-3 (5) "Right-of-way" means a strip of land in a length 2-4 and width determined by the commission to be required, necessary, 2-5 or convenient for the provision of a rail transportation system and 2-6 over, on, or under which trackwork is to be located. 2-7 (6) "Shortline railroad" means a Class III carrier as 2-8 described by 49 C.F.R. Section 1201.1-1. 2-9 (7) "Station" means a passenger or freight service 2-10 building, terminal, or station, ticketing facility, waiting area, 2-11 platform, concession, elevator, escalator, facility for handicapped 2-12 access, access road, parking facility for passengers, baggage 2-13 handling facility, or local maintenance facility, together with any 2-14 interest in real property necessary or convenient for any of the 2-15 listed items. 2-16 (8) "Switching railroad" means a railroad that 2-17 provides services to switch rail cars between different locations 2-18 or trains or to switch freight between rail cars. 2-19 (9) "Trackwork" means track, track beds, track bed 2-20 preparation, ties, rail fasteners, slabs, rails, emergency 2-21 crossovers, setout tracks, storage track, drains, fences, ballast, 2-22 switches, bridges, and structures. 2-23 (10) "Train controls" includes signals, lights, and 2-24 other signaling, interlocking equipment, speed monitoring 2-25 equipment, braking systems, central traffic control facilities, and 2-26 communication systems. 2-27 Sec. 201.952. ABANDONED RAIL ACCOUNT. (a) The abandoned 2-28 rail account is an account in the state highway fund. Funds in the 2-29 account may only be appropriated to the department for the 2-30 preservation of rail service and railway corridors and other 2-31 purposes described in this subchapter. 2-32 (b) The following funds shall be deposited to the credit of 2-33 the account: 2-34 (1) federal funds received by the state that may be 2-35 used for the purposes identified by Subsection (a); 2-36 (2) state funds appropriated for the purposes 2-37 identified by Subsection (a); 2-38 (3) proceeds from any sale or conveyance of any 2-39 state-owned rail facilities; 2-40 (4) payments for the use of any state-owned rail 2-41 facilities; 2-42 (5) contributions by any entity for the purposes 2-43 identified by Subsection (a); and 2-44 (6) notwithstanding any other law, any accumulated 2-45 interest and income earned on funds in the account. 2-46 (c) The abandoned rail account is exempt from the 2-47 application of any act of the legislature that relates to the 2-48 abolition of funds or accounts created in the state treasury or 2-49 that relates to the abolition of dedications or rededications of 2-50 revenue in the state treasury. 2-51 Sec. 201.953. NOTIFICATION OF INTENT TO ABANDON OR 2-52 DISCONTINUE SERVICE. On receipt of the notice of intent required 2-53 under 49 C.F.R. Section 1152.20, the department shall coordinate 2-54 with the governing bodies of any municipality, county, or rural 2-55 rail transportation district within which a line proposed for 2-56 abandonment or discontinuance of service is located in order to 2-57 assess interest in the department's acquisition of the affected 2-58 rail facilities under this subchapter or in any other action 2-59 necessary to provide for continued rail transportation service. 2-60 Sec. 201.954. ACQUISITION AND LEASE OF RAIL FACILITIES. 2-61 (a) The commission may authorize the department to acquire rail 2-62 facilities at locations and on routes the commission determines to 2-63 be feasible and viable for continued rail transportation service. 2-64 (b) The department may enter into agreements with the owners 2-65 of operating railroads for the acquisition or use of rail 2-66 facilities on terms and conditions the department considers to be 2-67 in the best interests of the state. 2-68 (c) The department may lease, and contract for the use or 2-69 operation of, all or part of state-owned rail facilities to any 3-1 operator. An operator shall be selected in accordance with the 3-2 requirements of Section 201.955. A lease agreement shall provide 3-3 for the department's monitoring of an operator's service and 3-4 performance. The department may enter into agreements with any 3-5 operator to sell all or any part of state-owned rail facilities on 3-6 terms and conditions and for amounts the department considers to be 3-7 in the best interests of the state. 3-8 Sec. 201.955. SELECTION OF OPERATORS. (a) The department 3-9 shall file a notice with the secretary of state for publication in 3-10 the Texas Register soliciting proposals to lease all or any part of 3-11 state-owned rail facilities. 3-12 (b) Under rules adopted by the commission, the department 3-13 shall discuss a proposal with an offeror to assess the feasibility 3-14 of the proposal and to negotiate the terms of a lease agreement. 3-15 (c) The department shall enter into a lease agreement with 3-16 the offeror whose proposal provides the best value to the state. 3-17 Sec. 201.956. ACQUISITION AND DISPOSAL OF REAL PROPERTY. 3-18 (a) The commission may authorize the department to acquire by 3-19 purchase, in the name of the state, any right-of-way or other 3-20 interest in real property determined to be necessary or convenient 3-21 to the department's acquisition of rail facilities under this 3-22 subchapter. 3-23 (b) The governing body of a municipality, county, other 3-24 political subdivision, or public agency may, without advertisement, 3-25 convey the title to or a right in property determined by the 3-26 department to be necessary or convenient under this section. 3-27 (c) The department may sell, convey, or otherwise dispose of 3-28 any rights or other interests in real property acquired under this 3-29 section that the commission determines are no longer needed for 3-30 department purposes. 3-31 Sec. 201.957. PLACEMENT OF UTILITY FACILITIES, LINES, AND 3-32 EQUIPMENT. (a) A utility that is authorized by law to place its 3-33 facilities, lines, or equipment in, over, or across railroad 3-34 right-of-way shall notify the department of an intention to place 3-35 any facilities, lines, or equipment in, over, or across 3-36 right-of-way that is part of state-owned rail facilities. 3-37 (b) A utility may exercise the authority to place its 3-38 facilities, lines, or equipment in, over, or across right-of-way 3-39 that is part of state-owned rail facilities with the consent of the 3-40 department. 3-41 (c) On receipt of the notice, the department may designate 3-42 the location in the right-of-way where the utility may place its 3-43 facilities, lines, or equipment. 3-44 (d) The department may require a utility to relocate the 3-45 utility's facilities, lines, or equipment, at the utility's 3-46 expense, to allow the expansion or relocation of state-owned rail 3-47 facilities. 3-48 Sec. 201.958. EXPENDITURE OF FUNDS. (a) The department may 3-49 receive, accept, and expend funds, including funds necessary to 3-50 assess and remediate environmental contamination existing in or on 3-51 the rail facilities, from the state, any federal agency, or other 3-52 public or private sources for: 3-53 (1) rail planning; 3-54 (2) studies to determine the viability of rail 3-55 facilities for continued rail transportation service; 3-56 (3) studies to determine the necessity for the 3-57 department's acquisition of the rail facilities; and 3-58 (4) the acquisition of rail facilities under this 3-59 subchapter. 3-60 (b) The department may expend income and funds from the 3-61 abandoned rail account established under Section 201.952 in the 3-62 exercise of any of the powers and duties provided by this 3-63 subchapter. 3-64 Sec. 201.959. ADOPTION OF RULES. The commission shall adopt 3-65 rules necessary to implement this subchapter. 3-66 Sec. 201.960. LIMITATION. This subchapter does not 3-67 authorize the department to regulate, operate, or maintain rail 3-68 facilities. 3-69 SECTION 3. This Act takes effect September 1, 2001. 4-1 * * * * *