SRC-AMY S.B. 914 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 914
78R5024 PAM-DBy: Fraser
Infrastructure Development and Security
3/19/2003
As Filed


DIGEST AND PURPOSE 

A number of issues have arisen between railroad companies and  a
stakeholder group, consisting of the oil and gas industry, specifically
pipelines; electric utilities; and telecommunications companies, over
agreements regarding railroad rights-of-way.  Thus far, discussions
between these entities have not yielded a solution.  Railroad company
actions of greatest concern to the stakeholder group are: changing terms
of existing license agreements, substantially increasing lease costs
despite the absence of an escalation clause, granting licenses with no
property interest rights to convey, termination threats, and an
unwillingness to disclose rights and responsibilities granted to the
railroad. As proposed, S.B. 914 provides a uniform provision for a
utility, common carrier, or energy transporter to use a railroad
rightof-way and defines "fair market value" and procedure for valuation.
S.B. 914 also requires railroads to provide, upon request, documentation
of the extent of their right and title of property. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Establishes the purpose of this Act as creating uniform laws
relating to the construction and maintenance of utility, common carrier,
and energy transporter facilities along, over, under, or across a railroad
right-of-way and to grant those entities certain rights, privileges, and
responsibilities, and provide a uniform process for them to obtain the
necessary rights to construct and maintain their facilities in railroad
rights-of-way in this state. 

SECTION 2.  Amends Chapter 186, Utilities Code, by adding Subchapter E, as
follows: 

SUBCHAPTER E.  CONSTRUCTION AND MAINTENANCE OF FACILITIES ALONG, OVER,
UNDER, OR ACROSS RAILROAD RIGHT-OF-WAY 

Sec. 186.051.  DEFINITIONS.  Defines "common carrier," "energy
transporter," "fair market value," "railroad," "railroad right-of-way,"
and "utility." 

Sec. 186.052.  EXEMPTIONS.  (a) Provides that including an energy
transporter in this subchapter does not subject it to regulation as a
utility or common carrier. 

(b) Provides that including a common carrier in this subchapter does not
subject it to regulation as a utility. 

Sec. 186.053.  CONSTRUCTION AND MAINTENANCE OF UTILITY AND COMMON CARRIER
FACILITIES.  Grants a utility, common carrier, or energy transporter the
right to construct and maintain its facilities along, over, under, or
across a railroad or its right-of-way. 

 Sec. 186.054.  DOCUMENTATION OF RIGHTS ACQUIRED.  Requires the railroad,
if requested, to provide the documentation that demonstrates the extent of
its right, title, or interest in property sought to be used by the
utility, common carrier, or energy transporter, if the railroad requires
it to obtain from the railroad a right to use the railroad right-of-way .
Provides that if the railroad has no demonstrable real property interest
in or right to grant an easement sought by a utility, common carrier, or
energy transporter, then a utility, common carrier, or energy transporter
does not owe the railroad compensation for use of the property. 

Sec. 186.055.  VALUATION OF RIGHTS ACQUIRED.  (a) Authorizes a utility,
common carrier, or energy transporter to obtain the right to use a
railroad right-of-way through eminent domain, in the absence of an
agreement for use of the right-of-way. 

(b) Provides that the compensation due the railroad under eminent domain
is the fair market value of the real property interest to be used.
Provides that the value is limited to the value of the property interest
owned by the railroad and sought to be used by the utility, common
carrier, or energy transporter. 

(c) Prohibits the property interest from being valued at more than the
valuation for the real property adjacent to the right-of-way. 

(d) Authorizes the railroad to recover the cost to repair any damage to
its facilities caused by construction or maintenance of the utility,
common carrier, or energy transporter facilities. 

(e) Provides that payment, determined under this section, by the utility,
common carrier, or energy transporter is the only compensation due the
railroad for perpetual use of the interest obtained. 

Sec. 186.056.  RIGHT TO MAINTAIN FACILITIES.  Prohibits requiring the
utility, common carrier, or energy transporter to remove existing
facilities while condemnation proceedings or negotiations to purchase
right to use the railroad right-of-way are pending. 

Sec. 186.057.  CUMULATIVE RIGHTS AND RESPONSIBILITIES.  Provides that the
rights, privileges, and responsibilities provided by this subchapter are
in addition to, not in substitution for, rights granted by any other law
of the state. 

SECTION 3.  Effective date: September 1, 2003.