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.
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