HBA-NRS C.S.S.B. 406 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 406
By: Cain
Transportation
4/2/2001
Committee Report (Substituted)



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.
C.S.S.B. 406 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 (Section 8, Article 6550c-2, V.T.C.S.) of this bill. 

ANALYSIS

C.S.S.B. 406 amends law to require the Texas Department of Transportation
(department) to coordinate with the governing body of any municipality,
county, or rural railroad transportation district on receipt of notice of
intent to abandon or discontinue rail 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 rural rail transportation district to sell, lease, or contract for
the use or operation of, all or part of a state-owned rail facility. The
bill also authorizes the department to enter into an agreement with a
railroad company to sell all or part of a state-owned rail facility (Sec.
3, Art. 6550c-2, V.T.C.S.).  

C.S.S.B. 406 provides that the commission may authorize the department to
acquire by purchase any rightof-way or other interest in real property the
department finds necessary or convenient to the acquisition of rail
facilities. The governing body of a public agency or 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 provides that
right-of-way acquired by the department remains subject to the terms of an
existing easement, lease, license, or other agreement that grants to a
public utility, pipeline operator, communications company, political
subdivision, or governmental entity a right to occupy or use the
right-of-way. 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,
except that real property in which the state has fee simple title that is
sold, conveyed, or otherwise disposed of and that is occupied or being used
by a public utility is subject to the utility's continued right to occupy
or use the property (Sec. 4, 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 a right-of-way that is part of state-owned rail
facilities (Sec. 5, 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. 6 and Sec. 7, Art. 6550c-2,
V.T.C.S.). The bill requires the  commission to adopt rules as necessary to
implement these provisions (Sec. 8, Art. 6550c-2, V.T.C.S.). The bill does
not authorize the department to regulate, operate, or maintain rail
facilities (Sec. 9, Art. 6550c-2, V.T.C.S.). 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 406 modifies the original bill by revising provisions relating to
rail roads within Vernon's Texas Civil Statutes rather than amending the
Transportation Code. The substitute authorizes the Texas Department of
Transportation (department) to enter into an agreement only with a rural
transportation district to lease or contract for the use of or operation of
all or any part of a state-owned rail facility. The substitute includes
additional provisions relating to the use or occupation of a right-of-way
by a public utility, pipeline operator, communications company, political
subdivision, or governmental entity, or the use or occupation of real
property by a public utility. The substitute sets forth provisions relating
to the required notice to the department from a utility that intends to
place its facilities, lines, or equipment in, over, or across a
right-of-way, and to the relocation of such facilities, lines, or equipment
including payment by the department for relocation in certain cases. The
substitute removes the provision in the original bill authorizing the
department to receive, accept, and expend funds for rail planning. The
substitute modifies the ways in which the department is authorized to use
funds for the preservation of rail service and railway facilities. The
substitute adds public agencies to the entities that may convey property to
the department without advertisement, title to, or a right in the property.