HBA-NIK C.S.H.B. 1886 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1886
By: Turner, Bob
Land & Resource Management
4/24/1999
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Currently, when a railroad company receives permission from  the federal
Surface Transportation Board to abandon a rail line, the right-of-way and
all the improvements are sold to a salvage company.  Under this process,
the railroad company is able to receive compensation for a rail line over
which  the company no longer will operate, and the purchaser makes its
profit through selling the rails and railroad ties for scrap.  The
remaining right-of-way often crosses private property, and owners of
property adjacent to the rights-of-way have expressed concern over the use
of such property, specifically objecting to its use as a hike and bike
trail. 

C.S.H.B. 1886 provides that the title to abandoned railroad right-of-way
reverts to the adjacent landowners. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Railroad Commission in
SECTION 2 of this bill. 
 
SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 6, Title 112, V.T.C.S., by adding Article 6340A,
as follows: 

Art. 6340A.  DISPOSITION OF CERTAIN ABANDONED RAILROAD RIGHT-OF-WAY. (a)
Requires that, on the 180th day after the date on which the federal Surface
Transportation Board (board) by order deems rail service to be abandoned
for a railroad or a portion of a railroad located within the State of
Texas, the title to the railroad right-of-way for which such rail service
is abandoned revert, subject to the continuing easements described in
Subsections (c) and (e), to the current fee title owner.  Provides the
aforementioned to be the case unless such right-of-way has been sold to
another railroad company or a rail district for purposes of providing
freight or passenger railroad service or has been sold to an authority
organized under Chapter 451 (Metropolitan Rapid Transportation Authorities)
or Chapter 452 (Regional Transportation Authorities), Transportation Code,
for purposes of providing freight or passenger railroad service or to
provide a roadway for motor vehicle transportation. 

(b)  Requires the railroad company (company) abandoning such rail service,
no later than the 45th day after the date the board issues its order
declaring the abandonment of rail service: 

_file with the Texas Railroad Commission (commission) a notice and copy of
the federal Surface Transportation Board order declaring the abandonment; 

_file notice of the abandonment, the reversion of title, and the terms of
this legislation in the county deed records of each county in which the
right-of-way is located, generally describing the abandoned right-of-way;
and  

_publish notice of the abandonment, the reversion of title, and the terms
of this legislation in one or more newspapers of general circulation in
each county in which the right-of-way is located, generally describing the
abandoned right-ofway. 
 
(c) Requires the commission to perform administrative and ministerial
specified acts regarding rights, responsibilities, and easements, upon
receiving a notice required by Subsection (b) and prior to the expiration
of the 180 day period referenced in Subsection (a). 

(d) Provides that the State of Texas is prohibited from occupying or making
any use or benefit of its easement, and requires the fee title owner of the
servient estate to have the exclusive right to occupy and make use and
benefit of the property encumbered by the easement. 

(e) Provides that each adjacent landowner to whom right-of-way reverts as
described in this article acquires the right-of-way subject to any existing
easements, leases, licenses, or other agreements under which a public
utility, governmental entity, or political subdivision of this state has
been granted the right to occupy or otherwise utilize the rightof-way by
the railroad company that has abandoned rail service or such railroad
company's predecessor in interest.  Prohibits the adjacent landowner from
being required to assume any obligation or liability associated with such
easement, lease, license or agreement, other than the obligation to
continue the right of occupancy or use granted thereby to the public
utility, governmental entity or political subdivision. 

(f) Authorizes any rails, switches, ties, or other personal property of the
company that remains on the right-of-way after the first anniversary of the
date the board declares rail service over the right-of-way abandoned to be
declared a nuisance under the common law by a court of competent
jurisdiction for the county in which the property is located, unless the
adjacent landowner to whom the right-of-way reverts and the company that
abandoned rail service provide otherwise by written agreement. 

(g) Prohibits any liability arising out of the ownership of the railroad
right-of-way that reverts to adjacent landowners as described in this
article or from any other act or omission occurring while such right-of-way
was owned by the railroad company or its predecessors in interest from
passing to an adjacent landowner to whom the right-of-way reverts. 

SECTION 2. Requires the commission to adopt rules regarding the provisions
of Articles 6340A(b) and (c) within 180 days of the effective date of this
legislation. Requires the provisions of Article 6340A to remain in full
force and effect notwithstanding any failure by the commission to adopt
such rules. 

SECTION 3. Requires the reversion referenced in Article 6340A(a) to be
deemed to have occurred on the date upon which rail service was deemed
abandoned by the board or its predecessors if a railroad company has
received authorization to abandon service from the board or its
predecessors prior to the effective date of this legislation. 

(d)  Provides that each adjacent landowner to whom the right-of-way reverts
is deemed to acquire the right-of-way subject to any existing agreements
under which a public utility, governmental entity, or political subdivision
of this state has been granted the right to occupy the right-of-way by the
company.  Prohibits the adjacent landowner from being required to assume
any obligation or liability associated with such easement,  lease, license
or agreement, other than the mere obligation to continue the right of
occupancy or use granted thereby. 

SECTION 4. Presents legislative findings.

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE
 
C.S.H.B. 1886 modifies SECTION 1 of the original bill in proposed Article
6340A(a) by subjecting the reversion of the title to the railroad
right-of-way to the current fee title owner of the land to the continuing
easements described in Subsections (c) and (e).  The substitute also adds
to proposed Article 6340A(a) of the original bill that such a reversion
takes place unless such right-of-way has been sold to an Authority
organized under Chapter 451 (Metropolitan Rapid Transportation Authorities)
or Chapter 452 (Regional Transportation Authorities) of the Transportation
Code for purposes of providing freight or passenger railroad service or to
provide a roadway for motor vehicle transportation, in addition to being
sold to another railroad company or a rail district for purposes of
providing freight or passenger railroad service.  The substitute rewords
the text of the original to clarify the intent of the subsection. 

C.S.H.B. 1886 adds new text to and modifies proposed Article 6340A(b) of
the original bill, as follows: 

(b) Requires the railroad company (company) abandoning such rail service,
no later than the 45th day after the date the board issues its order
declaring the abandonment of rail service to: 

_file with the Texas Railroad Commission (commission) a notice and copy of
the federal Surface Transportation Board order declaring the abandonment; 

_file notice of the abandonment, the reversion of title, and the terms of
this legislation in the county deed records of each county in which the
right-of-way is located, generally describing the abandoned right-of-way;
and  

_publish notice of the abandonment, the reversion of title, and the terms
of this legislation in one or more newspapers of general circulation in
each county in which the right-of-way is located, generally describing the
abandoned right-ofway. 

The substitute reorganizes and rewords the text of the original to provide
the same intent. 

The substitute incorporates the text of proposed Article 6340A(c) in
Subsection (b). 

C.S.H.B. 1886 adds new text to proposed Article 6340A of the original bill,
as follows: 

(c) Requires the commission to perform the specified administrative and
ministerial acts regarding rights, responsibilities, and easements, upon
receiving a notice required by Subsection (b) and prior to the expiration
of the 180 day period referenced in Subsection (a). 

(d) Provides that the State of Texas is prohibited from occupying or making
any use or benefit of its easement, and requires the fee title owner of the
servient estate to have the exclusive right to occupy and make use and
benefit of the property encumbered by the easement. 

The substitute redesignates proposed Subsections (d)-(f) of the original
bill, to Subsections (e)-(g) of the substitute.  Makes nonsubstantive
changes. 

C.S.H.B. 1886 redesignates SECTION 2 of the original bill as SECTION 4 of
the substitute. 

C.S.H.B. 1886 redesignates SECTION 3 (effective date) of the original bill
as SECTION 5 of the substitute. 

C.S.H.B. 1886 redesignates SECTION 4 (emergency clause) of the original
bill as SECTION 6 of the substitute. 

C.S.H.B. 1886 adds a new SECTION 2 to require that the commission adopt
rules regarding the provisions of Articles 6340A(b) and (c) within 180 days
of the effective date of this legislation. Requires the provisions of
Article 6340A to remain in full force and effect notwithstanding any
failure by the commission to adopt such rules. The contents of this section
were not addressed in the original. 

C.S.H.B. 1886 adds a new SECTION 3 to require that the reversion referenced
in Article 6340A(a) to be deemed to have occurred on the date upon which
rail service was deemed abandoned by the board or its predecessors if a
railroad company has received authorization to abandon service from the
board or its predecessors prior to the effective date of this legislation.
The contents of this section were not addressed in the original.