2017 Texas Legislature Railroad Legislation
Bills Filed in the Texas House and Senate that affect Railroads
Thumbs up and thumbs down are the opinions of Texas Rail Advocates. It’s just how we see legislation that could affect the operation of freight and passenger trains in Texas, affecting the economy and vitality of the state. Those without the “thumb” have not yet been studied.
SB=Senate Bill HB=House Bill Click on the bill number for details
SB 740 by Kolkhorst Relating to the acquisition of property by an entity with eminent domain authority. BAD BILL. Potential for legal delay is huge. Critical point: attempts to make it illegal retroactively for a utility to use condemned property for use other than that initially set forth in condemnation proceedings.
SB 742 by Kolkhorst Relating to requirements for a bona fide offer for the acquisition of property by an entity with eminent domain authority. BAD BILL. Tracks closely with SB 740.
SB 973 by Creighton/HB 2168 by Bell (Railroad Determination Before Surveys) – prohibits a high speed rail entity from entering private property to conduct a survey unless the Texas Department of Transportation (TxDOT) first determines that the surveying entity is, in fact, a railroad. BAD BILL. The private entity now building the Dallas-Houston high speed railroad has filed the proper papers with the state of Texas as a railroad and has been working with the Federal Railroad Administration as required.
SB 974 by Creighton/HB 2181 by Cook (Option Contract Protection) – voids any high-speed rail option contracts held by a high-speed rail entity upon a bankruptcy initiated by or against the entity BAD BILL.
SB 975 by Birdwell/HB 2169 by Schubert (Security Requirements) – provides a framework of minimum security requirements to be followed during the construction and operation of a private high speed rail line. Requires the high-speed rail authority to coordinate security efforts with state and local law enforcement, as well as disaster response agencies. BAD BILL. Duplicates and infringes on Federal safety authority, State shouldn’t do this, unnecessary, creates safety problem where none exists.
SB 977 by Schwertner/HB 2172 by Ashby (No Taxpayer Bailout) – prohibits the legislature from appropriating new funds, or allowing state agencies to utilize existing funds, to pay any costs related to a the construction, maintenance, or operation of a private high-speed rail in Texas. VERY BAD BILL! TxDOT’s Rail Division has to have oversight of the project especially for safety reasons. If TxDOT can’t communicate with the project entity then nothing can move forward.
SB 978 by Schwertner/HB 2104 by Bell (Property Restoration Bond) – requires a private high-speed rail entity to file a bond with the Texas Department of Transportation (TxDOT) sufficient to restore property used for the rail service to the property’s original conditions if the service ceases operation. BAD BILL. Requires punitive bond (no way to estimate amount) before construction can begin. Dangerous.
SB 979 by Schwertner/HB 2179 by Cook (Right of Repurchase for Non-HSR Use) – prohibits an entity that operates or plans to operate a high-speed rail from using property acquired for purposes other than high-speed rail. If the high-speed rail authority doesn’t use the property for that specific purpose, the original landowner must be given opportunity to repurchase the land. VERY BAD BILL. Prevents railroad entity from use of eminent domain Blatantly discriminatory, but could tie up HSR in the courts for a long time, internally contradictory (requires report on actions which are prohibited) Unintended consequence: If a high speed entity also wanted to use the right-of-way to lay a fiber optics cable for their own use and resell the excess capacity that would violate this law
SB 980 by Schwertner/HB 2167 by Schubert (Put Texas First) – prohibits any state money from being used for any purpose related to a privately owned high-speed rail, unless the state acquires and maintains a lien in order to secure the repayment of state funds. Requires that the state’s lien be superior to all other liens, effectively making Texas a priority creditor BAD BILL. Sends a bad message to companies that want to do business in Texas. Prohibits state funds but then lets state maintain a lien to secure repayment of state funds.
SB 981 by Kolkhorst/HB 2162 by Wray (Interoperability) – requires an entity constructing a high speed rail line in Texas to demonstrate compatibility with more than one type of train technology. BAD BILL. You don’t want 200mph trains mixing with freight or other slower passenger rail traffic. These type of trains do just fine on their own tracks with no grade crossings. Big safety issue if you force high speed trains to operate with slow freight or passenger rail traffic.
SB 982 by Perry/HB 2173 by Ashby (High-Speed Rail Feasibility Study) – upon request of a legislator, the Texas Department of Transportation (TxDOT) must generate a feasibility study of a proposed high-speed rail project. The study must indicate whether the project is for a public use, whether it will be financially viable, and what impact of the project will have on local communities BAD BILL. The private company building the Dallas-Houston bullet train is in the midst of the federally mandated comprehensive study right now. Another layer of bureaucracy is not needed. Is a complete duplicate of Federal work, and is a payday for consultants and lawyers.
HB2160 by Wray relating to the assessment of damages for certain condemnations by a high-speed railroad company. BAD BILL. Sets up punitive damages against condemnor, makes them pay for any alleged interference with access to property.
HB2161 by Wray Relating to clarification of the law regarding the authority of a high-speed rail company to exercise the power of eminent domain. BAD BILL. Absolute showstopper, would paralyze all work on High Speed Rail, fundamental discrimination against private party, lacks due process. Railroads in Texas do have eminent domain authority.
HB2163 by Wray Relating to the elevation of high-speed rail tracks in certain counties. BAD BILL. Would force above normal height requirements for railroads above ground.
HB 2164 by Wray Relating to the use of private activity bonds to finance high-speed rail service. BAD BILL. Private activity bonds are widely used in major construction projects and this shuts out and discriminates against railroad projects.
HB2165 by Wray Relating to entry onto property to survey for a high-speed rail facility. BAD BILL. Blatantly discriminatory and could tie up High Speed Rail in the courts for a long time.
SB385 by Burton relating to voter approval required for passenger rail projects (but not for highways?) EXTREMELY BAD BILL. Violates and conflicts with general power of State to control utilities, but does have co-sponsors. Would require local option election for Texas Central to access Federal loans.
HB1135 by Workman relating to enforcement of certain regulations by the acquisition of a conservation easement VERY BAD BILL. Very dangerous, injects conservation easements into eminent domain.
HB642 by Phillips relating to the name of the Railroad Commission of Texas
HB2090 by Vandeaver Relating to compensation for heritage property acquired through eminent domain. BAD BILL. Creates punitive damage claim of 150% of found value if property has been in the family over 100 years.
HB2557 by Miller relating to the development of certain local government transportation infrastructure projects (transportation reinvestment zones)
HB2556 by Holland relating to the appraisal required in connection with a bona fide offer to acquire real property by an entity with eminent domain authority. BAD BILL. Holland This appears to be inoffensive and attractive, but in fact would create an unmanageable paperwork burden, impossible to comply with. Extends definition of value to include fuzzy concept of “damages” to buildings, livestock, cost of moving / removing trees, plants, crops etc.
HB2694 by Kacal Relating to requirements for a bona fide offer for the acquisition of property by an entity with eminent domain authority. BAD BILL. Along the same lines as other eminent domain bills filed.
HB3170 by Bell Relating to the protection of the rights of a property owner in an eminent domain proceeding. BAD BILL. Similar outcome as in other eminent domain bills that have been filed.
HB3566 by Ashby relating to a franchise credit for entities that make certain railroad reconstruction or replacement expenditures. Assists Short Line railroads in rehab of rail lines to serve local industries. Helps promote economic development.
HB3687 by Ashby Relating to the acquisition of property by an entity with eminent domain authority. BAD BILL. Tracks closely with Kolkhorst SB 740.
The following have not yet been rated Thumbs Up or Down
HB1986 by Martinez, “Mando” relating to the creation of regional transit authorities; granting the power of eminent domain; providing authority to issue bonds and charge fees; creating a criminal offense
HB1108 by Parker regarding sale of locomotives as it applies to franchise tax
HB424 by Huberty regarding the annexation of a railway line next to boundaries of a municipality
SB650 by Bettencourt Relating to tax increment financing
SB639 by Huffines regarding use of money transportation funds for transit projects
HB303 by Pickett relating to repayment of money contributed by the Texas Department of Transportation or the Texas Transportation Commission for toll projects (may use the money only to acquire, design, finance, construct, operate, or maintain a turnpike project under Section 370.003(14)(A) or (D) or a transit system)
HB1568 by Phillips relating to the movement of pedestrians in front of, under, between, or through rail cars at a railroad grade crossing; providing criminal penalties