HBA-NLM H.B. 3117 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3117
By: Swinford
Land & Resource Management
4/20/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Since the deregulation of Texas railroads, some structures built on
abandoned land originally leased from rail companies and subsequently
purchased by a real estate developer, are not being sold at the fair market
value of the land. H.B. 3117 requires a railroad company to offer the
holders of structures built on land rented from the railroad the first
right of refusal to purchase that property.  In addition, this bill
requires that an independent arbitrator establish the fair market value
price for which the land may be sold. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS


SECTION 1.  Amends Title 112, V.T.C.S., by adding Article 6349a, as follows:

Art. 6349a.  PURCHASE OF RIGHT-OF-WAY FOLLOWING ABANDONMENT.  (a) Requires
a railroad company that applies to the federal Surface Transportation Board
or other appropriate federal agency for permission to abandon a railroad
line to give any person who has constructed a building or other structure,
installed equipment, or made any other type of leasehold improvement on
railroad right-of-way of the company or adjoining railroad property the
right of first refusal to purchase, at the fair market value of the land as
determined by an independent appraiser, the right-of-way or adjoining
property where the structure, equipment, or other improvement is located.  

(b)  Provides that the land subject to purchase under this article is that
which is necessary for unrestricted use of the structure, equipment, or
other leasehold improvement.  

(c)  Requires ownership of the structure, equipment, or other leasehold
improvement to be transferred at no cost to a person buying the land under
this article.  

SECTION 2. Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

EXPLANATION OF AMENDMENTS

Amendment # 1

Amends H.B. 3117 in SECTION 1 (Article 6349a(c), Title 112, V.T.C.S.), to
require ownership of the structure, equipment, or other leasehold
improvement to be transferred at no cost to a person buying the land under
Subsection (a) of this article.