LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 4, 2001 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: HB1125 by Swinford (Relating to abandoned railroad right-of-way.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1125, As Introduced: negative impact of $(416,000) through the * * biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(213,000) * * 2003 (203,000) * * 2004 (203,000) * * 2005 (203,000) * * 2006 (203,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(213,000) 4.0 * * 2003 (203,000) 4.0 * * 2004 (203,000) 4.0 * * 2005 (203,000) 4.0 * * 2006 (203,000) 4.0 * *************************************************************************** Fiscal Analysis The bill would require a railroad company to file at the Railroad Commission (RRC) notice of an abandonment and the federal surface transportation board order authorizing the abandonment. Within 45 days of that filing, the Railroad Commission would be required to certify whether the state holds an easement in the abandoned right-of-way, if the railroad company holds a reversionary fee title; and if an agency of the state proposes to acquire a portion of the right-of-way in which the railroad retains a nonreversionary fee title, notify the railroad company of that proposal. Methodology The RRC anticipates that future abandonment's would occur at the rate of one rail line per year averaging approximately 75 miles of right-of-way. RRC estimates that it would require sufficient staff to ensure completion of the title work within the very short time frame. RRC advises that a new section would be established in the Commission's Office of General Counsel for rulemaking and certification of the title interests of the state and the railroad company. The new section would require staffing by a two staff attorneys ($128,000 benefits included), a paralegal ($45,000 benefits included), and a secretary ($30,000 benefits included, for each fiscal year with appropriate office equipment estimated to be $10,000. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 455 Railroad Commission of Texas, 601 Texas Department of Transportation LBB Staff: JK, CL, SK