HBA-LJP H.B. 1125 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1125
By: Swinford
Land & Resource Management
4/6/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, a railroad right-of-way is reserved to any railroad
company to the extent of one hundred feet on each side of a road that
crosses over or extends through any land granted or that may be granted to
the railroad company by the legislature.  When a railroad company receives
permission from the federal Surface Transportation Board to abandon a rail
line, the right-of-way and all improvements are typically sold to a salvage
company.  The 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 after the abandonment. House Bill 1125 provides for the
ownership, transfer, and sale of the title to a right-of-way and easements
regarding the right-of-way after the abandonment of a railroad
right-of-way. 

RULEMAKING AUTHORITY

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

ANALYSIS

House Bill 1125 amends V.T.C.S. to provide that the title to railroad
right-of-way that is considered abandoned vests in the servient owner free
from the easement in the right-of-way held by the railroad company if the
railroad company only had an easement or reverts to the holder of the
reversion if the railroad company held only a reversionary fee title to the
right-of-way. 

The bill provides that a railroad right-of-way is considered abandoned and
the railroad company's easement of reversionary fee title in the
right-of-way is extinguished on a specified date.  The bill requires, no
later than the 45th day after the day the right-of-way is considered
abandoned, the railroad company abandoning the right-of-way to comply with
filing and publication notice requirements.  The bill requires the Railroad
Commission of Texas (commission), no later than the 45th after the date the
railroad company files the abandonment notice, to: 

_certify whether the state holds an easement in the abandoned right-of-way,
if the railroad company holds a reversionary fee title; and  

_notify the railroad company of any state proposal to acquire a portion of
the right-of-way in which the railroad retains a nonreversionary fee title. 

When a railroad company holds a reversionary fee title, the bill provides
that if the railroad company does not complete the filing requirements with
the commission or if the commission fails to certify whether this state
holds an easement in the abandoned right-of-way, then the easement vests in
this state on the 90th day after the date the right-of-way is considered
abandoned.  The bill sets forth provisions regarding the authorization of
the state to use a certified easement only for railroad or motor vehicle
purposes if the state provides at least two years written notice to the
owner of the fee title before the date the state proposes to begin to use
the easement. 

 The bill sets forth provisions regarding the transfer of a nonreversionary
fee title in the right-of-way from a railroad company to a state agency or
to a person other than a state agency after the 61st day after the date the
railroad company receives notice from the commission of the proposal of the
state to acquire the nonreversionary fee title.  The bill requires that the
person who is the fee title owner of an acquired railroad right-of-way to
permit and not interfere with occupancy under an existing easement
agreement, lease, license, or other agreement under which a political
entity, public utility, pipeline operator, or communications company of
this state has been granted the right to occupy or otherwise use the
right-ofway. 

The bill provides that any personal property of the railroad company is
considered abandoned that remains on the reversionary right-of-way after
the first anniversary of the day the right-of-way is considered abandoned,
notwithstanding any other agreements.  The bill provides that a person to
whom ownership of the railroad right-of-way reverts is not liable for any
act or omission of another person that occurred in connection with the
right-of-way before the reversion. 

The bill sets forth provisions regarding the authorization of the sale to
specified entities and persons of a fee title of a nonreversionary
right-of-way located in a county with a population of 250,000 or less that
is considered abandoned and is leased to a tenant who owns a building,
structure, or other substantial improvement on the right-of-way.  If it
cannot be determined whether a railroad company has a nonreversionary
right-of-way fee title to a railroad right-of-way that is considered
abandoned, then the bill provides that the title to the abandoned
right-of-way passes to the landowner adjacent to the right-of-way up to the
center line of the right-of-way. 

The bill requires the commission to adopt rules necessary to implement this
Act not later than the 180th day after the effective date of this Act. 

EFFECTIVE DATE

September 1, 2001.