HBA-NRS H.B. 682 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 682
By: Hawley
Transportation
2/12/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides the state with no formal mechanism for preserving
abandoned railroads and rail rightsof-way in Texas. The economies of small
towns and rural areas are affected by the loss of rail transportation
service. In addition, certain industries have had to find alternative means
to transport products because of the abandonment of rail facilities. House
Bill 682 authorizes the Texas Department of Transportation to preserve
transportation infrastructure and services by preserving rail facilities,
acquiring rail lines and other rail facilities, and leasing or selling
those facilities to an appropriate entity.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Transportation Commission in
SECTION 2 (Sections 4 and 9, Article 6550c-2, V.T.C.S.) of this bill. 

ANALYSIS

House Bill 682 amends law to require the Texas Department of Transportation
(department), to consult with the governing body of any municipality,
county, or rural railroad transportation district on receipt of notice of
intent to abandon or discontinue service to determine whether the
department should acquire the rail facilities or whether any other actions
should be taken to provide for continued rail service (Sec. 2, Art.
6550c-2, V.T.C.S.). The Texas Transportation Commission (commission) may
authorize the department to acquire rail facilities the commission
determines to be feasible and viable for continued rail transportation
service. The bill authorizes the department to enter into an agreement with
an owner of an operating railroad for the acquisition or use of rail
facilities. The bill authorizes the department to enter into an agreement
with a railroad operator to sell, lease, or contract for the use or
operation of all or any part of a state-owned rail facility. The bill sets
forth requirements for these agreements (Sec. 3, Art. 6550c-2, V.T.C.S.).  

H.B. 682 requires the department to file notice with the secretary of state
for publication in the Texas Register of its intent to solicit proposals to
lease all or part of a state-owned rail facility. The bill requires the
commission to adopt rules to allow the department to negotiate the terms of
a lease agreement with a railroad operator (Sec. 4, Art. 6550c-2,
V.T.C.S.). The commission may authorize the department to acquire by
purchase any right-of-way or other interest in real property the department
finds necessary or convenient to the acquisition of rail facilities. The
governing body of a municipality, county, or other political subdivision is
authorized to convey to the department without advertisement title to, or a
right in, property that the department determines to be necessary or
convenient. The bill authorizes the department to sell, convey, or dispose
of a right or interest in real property acquired by the department that the
commission determines is no longer needed for department purposes (Sec. 5,
Art. 6550c-2, V.T.C.S.). The bill sets forth provisions for the placement
of facilities, lines, or equipment of a utility in, over, or across
railroad right-of-way that is part of state-owned rail facilities (Sec. 6,
Art. 6550c-2, V.T.C.S.). The bill establishes the abandoned rail account in
the state highway fund and sets forth funding sources, exemptions and
authorized uses (Sec. 7 and Sec. 8, Art. 6550c-2, V.T.C.S.). The bill
requires the commission to adopt rules as necessary to implement these
provisions (Sec. 9, Art. 6550c-2, V.T.C.S.). The bill does not authorize
the department to regulate, operate, or maintain rail facilities (Sec. 10,
Art. 6550c-2, V.T.C.S.).  The bill sets forth legislative findings (SECTION
9). 

EFFECTIVE DATE

September 1, 2001.