LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 12, 2001
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB682  by Hawley (Relating to the preservation of rail
               facilities by the Texas Department of Transportation.),
               As Introduced
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill would amend current law by adding Article 6550c-2  in Civil
Statute which would create the Abandoned Rail Account as a dedicated
account in the State Highway Fund No. 006 for the purpose of
appropriating available funds only to the Texas Department of
Transportation to implement the provisions of the bill.  The bill would
require that any federal funds received that may be used for the purposes
of the bill, state funds appropriated for this bill's purpose, proceeds
from the sale or conveyance of any state-owned rail facilities, payments
for the use of any state-owned rail facilities, contributions by any
entity, and any accumulated interest or other income earned on funds in
the account be deposited to the credit of the account.  The bill would
also exempt the account from any law relating to the abolition of funds
or accounts in the State Treasury, or that relate to the abolition of
dedications or rededications of revenue in the State Treasury.

No significant fiscal implication to the State is anticipated since all
federal funds currently received by the department are not eligible for
the purposes of the bill and the department currently does not expect the
eligibility of those federal funds to expand in the future.  However,
under the provisions of the bill, any future federal funds received that
would be eligible for the purposes of the bill would have to be deposited
to the credit of the account regardless of any eligibility for other
transportation funding purposes.  Similarly, any future appropriations
made from state funds to the account could not be used for purposes other
than those defined in the bill.

The bill would take effect September 1, 2001.
  
Local Government Impact
  
At this time, the department is not aware of any specific acquisitions,
operating agreements, leases, or conveyances that may occur in accordance
with the provisions of the bill during fiscal years 2002 through 2005,
so no significant fiscal implication to units of local government is
anticipated.

In accordance with the provisions of the bill, if the department enters
into an agreement for use of a rail line with a governing body of a
public agency, municipality, county or other political subdivision or
purchases right-of-way or other interest in real property, the public
agency, municipality, county or other political subdivision would
realize a revenue gain.  Similarly, any sale of all or part of a
state-owned rail facility to a public agency, municipality, county or
other political subdivision by the department would result in a cost to
that entity.  Also, the bill would allow the governing body of a public
agency, municipality, county or other political subdivision to convey to
the department without advertisement, title to, or a right in property
which would result in a loss of property but may not result in a
significant revenue gain or loss.  The bill would also allow the
department to require a utility to relocate the utility's facilities,
lines, or equipment at the utility's expense to allow for the expansion
or relocation of rail facilities owned by the state.
  
  
Source Agencies:   601   Texas Department of Transportation, 304
                   Comptroller of Public Accounts
LBB Staff:         JK, JO, RT, MW