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:
  
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*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