LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 25, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor
               Honorable James E. "Pete" Laney, Speaker of the House
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB406  by Cain (Relating to the preservation of rail
               facilities by the Texas Department of Transportation.),
               Conference Committee Report
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Vernon's Texas Civil Statutes by creating the
Abandoned Rail Account as a dedicated account in the State Highway Fund
No. 006 for the purposes of appropriating available funds only to the
Texas Department of Transportation to implement the provisions of the
bill.  The bill would require 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
facility other than the Texas State Railroad operated by the Parks and
Wildlife Department, 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.

The bill would require the department to pay utility relocation costs
where the department required a utility to move if the utility acquired
an easement or a leasehold interest in the real property occupied by the
facility before the department acquired the Right-of-Way.  The bill would
also prohibit a district from abandoning a rail line of the district for
which state funds have been loaned or granted unless the abandonment is
approved by the Texas Transportation Commission.

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
  
No significant fiscal implication to units of local government is
anticipated because 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.

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:   
LBB Staff:         JK, JO, MW