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.