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AN ACT
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relating to a grant program to fund certain short line railroad |
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projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter O, Chapter 201, Transportation Code, |
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is amended by adding Section 201.981 to read as follows: |
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Sec. 201.981. GRANT PROGRAM FOR CERTAIN SHORT LINE RAILROAD |
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PROJECTS. (a) In this section: |
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(1) "District" has the meaning assigned by Section |
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172.001. |
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(2) "Short line railroad" means a Class II or Class III |
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railroad as defined by the federal Surface Transportation Board. |
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(b) For the purpose of increasing public safety, enhancing |
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economic development, and reducing traffic, the department shall |
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establish and administer a program to award grants to districts |
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that own or operate short line railroads to fund projects that: |
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(1) replace short line railroad tracks or bridges; |
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(2) improve short line rail capacity; or |
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(3) restore short line railways. |
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(c) A district that owns or operates a short line railroad |
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may use money awarded by the department under this section as |
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matching funds to secure additional funding for a short line |
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railroad project described by Subsection (b). |
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(d) Each grant awarded under this section must be approved |
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by the commission. The commission may not approve a grant under |
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this section unless the commission determines that: |
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(1) at least 10 percent of the total project costs will |
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be provided by a source other than the state; or |
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(2) if the grant money is being used as matching funds |
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under Subsection (c), at least 10 percent of the amount used as |
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matching funds will be provided by a source other than the state. |
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(e) The department may fund the grant program under this |
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section only from money appropriated by the legislature for that |
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purpose and from gifts and grants, including grants from the |
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federal government. The department may solicit and accept gifts |
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and grants from any source for the purposes of this section. Money |
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deposited to the credit of the state highway fund may not be used to |
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fund a grant awarded under this section. |
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(f) The commission shall adopt rules as necessary to |
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implement this section. |
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SECTION 2. Not later than October 1, 2025, the Texas |
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Transportation Commission shall adopt the rules required by Section |
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201.981, Transportation Code, as added by this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 2366 passed the Senate on |
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April 30, 2025, by the following vote: Yeas 25, Nays 6. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 2366 passed the House on |
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May 28, 2025, by the following vote: Yeas 112, Nays 29, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |