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.