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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
ENGROSSED SENATE
BILL NO. 341 By: Frix of the Senate
and
Kerbs and Luttrell of the
House
An Act relating to the Railroad Revitalization Act ;
amending 66 O.S. 2021, Section 304, which relates to
the powers and duties of the Department of
Transportation; providing process for sale of certain
lease-purchase properties; modifying process for sale
of certain properties; updating statutory language ;
updating statutory references; providing an effective
date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 66 O.S. 2021, Section 304, is
amended to read as follows:
Section 304. A. The Department of Transportation is hereby
authorized and empowered:
1. To acquire, construct, reconstruct, repair, replace,
operate, and maintain railroad rights -of-way and trackage projects
at such locations and on such routes as it shal l determine to be
feasible and economically sound;
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2. To enter into agreements with the owners of operating
railroads for the acquisition and/or or use of railroad rights -of-
way and trackage on such ter ms, conditions, rates , or rentals as the
Department may consider to be in the best interests of the state;
3. To enter directly into agreements with owners of operating
railroads or persons intending to operate as common carriers by rail
to sell, lease, or sell by lease -purchase agreement any state -owned
railroad property on such terms, conditions , or amounts as the
Department may consider to be in the best interests of the state and
to promote the purposes of the Railroad Revitalization Act . If the
operator under a lease-purchase agreement exercises the pu rchase
option, the purchase shall be subject to the approval of the
Transportation Commission ;
4. Prior to the sale of any railroad asset owned by the State
of Oklahoma this state or the Department of Transportation, a
process of request for proposal shal l be initiated by the Department
of Transportation with consultation by the Office of Management and
Enterprise Services. Upon the issue date of a request for proposal
regarding the sale of any railroad asset owned by the State of
Oklahoma this state or the Department of Transportation, interested
parties will have no less than ninety (90) one hundred twenty (120)
days to provide a response. Following the close of the ninety-day
one-hundred-twenty-day response period, the Department of
Transportation will conduct an evaluation of all submitted
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proposals, utilizing all available resources, and the Department of
Commerce shall may conduct an economic impact and/or or activity
study of all proposals. The Secretary Director of the Department of
Transportation, Secretary of Finance, Secretary of Commerce,
Secretary of Agriculture, and Secretary of Energy shall be
responsible for preparing a recommendation to the Transportation
Commission, based on its evaluation of all submitted proposals
including, if available, the results of the an economic impact
and/or or activity study, provided the recommendation meets all
other statutory requirements needed for action by the Commission.
The Secretary of Transportation, Secretary of Finance, Secretary of
Commerce, Secretary of Agriculture, and Secretary of Energy will
Director shall have up to ninety (90) days, upon the closing date of
the request for proposal, to present its his or her recommendation
to the Transportation Commission. The Transportation Commission
will be responsible for determining if the sale of railroad assets
within its jurisdiction is in the best interests of the State of
Oklahoma this state and for authorizing the sale of such assets. If
a determination is rendered by the Transportation Commission that
the sale of any railroad asset within its jurisdiction is
appropriate, notification must be made to the Speaker of the House
of Representatives and the President Pro Tempore of the Senate in
writing prior to the Commission meeting where final action w ill take
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place. All proceeds from the sale shall be deposited into the
Oklahoma Railroad Maintenance Revolving Fund;
5. To acquire and hold real or personal property in the
exercise of its powers for t he performance of its duties as
authorized by this act Section 302.1 et seq. of this title . Surplus
property may be disposed of by the Department;
6. To acquire in the name of the Department, by purchase or
otherwise on such terms and conditions and in such manner as it may
deem proper, or by exercise of t he right of condemnation, such
public or private lands and personalty, including public parks,
playgrounds, or reservations, or parts thereof or rights therein,
rights-of-way, trackage, property, rights, easements, and interests ,
as it may deem necessary f or carrying out the provisions of the
Railroad Revitalization Act;
7. To make and enter into all contracts and agreements
necessary or incidental to the performance of its duties and the
execution of its powers under the Railroad Revitalization Act, and
to employ rail planning and management consultants, consulting
engineers, attorneys, accountants, construction and financial
consultants, superintendents, managers, and such other employees and
agents as may be necessary in its judgment, and to fix their
compensation; provided, that all such expenses shall be payable
solely from funds made available under and pursuant to the
provisions of the Railroad Revitalization Act or from revenues;
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provided, further, no attorney employed by the Department, nor any
member of any law firm of which the member may be connected, shall
ever be paid any fee or compensation for any special or
extraordinary services;
8. To receive, accept , and expend funds from the state, any
federal agency, or from private sources, for rail pl anning and for
administration of railroad assistance projects, and for or in aid of
the acquisition, construction, reconstruction, replacement, repair,
maintenance, and operation of railroad rights -of-way and trackage
and for rail service continuation paym ents to railroad companies for
operating losses sustained by reasons of continuing service on a
line which may otherwise be abandoned or which may experience a
reduced level of service not in the public interest, where such
continuation of service is carri ed out under a written agreement
with the Department establishing the terms and conditions for such
payments, and to receive and accept funds, aid or contributions from
any source of either money, property, labor , or other things of
value, to be held, used , and applied only for the purposes for which
such funds, aid, or contributions may be made;
9. To adopt such rules and to do any and all things necessary
to comply with rules, regulations , or requirements of the United
States Department of Transportation , any successor thereof, the
Surface Transportation Board or any federal agency administering any
law enacted by the United States Congress of the United States or
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having funds available for the purpose of the Department that are
not inconsistent with or c ontrary to the prohibitions and
restrictions of Oklahoma law or public interest;
10. To expend, not to exceed twenty percent (20%) of the funds
available in the Oklahoma Railroad Maintenance Revolving F und during
any one (1) year, at locations approved by the Oklahoma Corporation
Commission, such Oklahoma Railroad Maintenance Revolving Fund monies
as may be budgeted by the Department of Transportation for the
purposes of installing signal lights, gate arms, or other active
warning devices where any public road, street, or highway crosses a
railroad right-of-way; provided, however, nothing in this act the
Railroad Revitalization Act shall negate, change, or otherwise
modify any existing statutory or common law duty of a railroad
company;
11. To expend incom e and funds from the Oklahoma Railroad
Maintenance Revolving Fund in the exercise of any or all of the
foregoing powers; and
12. To do all things necessary or convenient to carry out the
powers expressly granted in this act Section 302.1 et seq. of this
title.
B. It shall be unlawful for any member, officer , or employee of
the Department to transact with the Department, either directly or
indirectly, any business for profit of such member, officer , or
employee; and any person, firm , or corporation knowing ly
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participating therein shall be equally liable for a violation of
this provision.
The term “business for profit” shall include, but not be limited
to, the acceptance or payment of any fee, commission, gift, or
consideration to such member, officer , or employee.
Violation of this provision shall constitute a felony and upon
conviction shall be punishable by incarceration in the Oklahoma
State Penitentiary for a term not to exceed five (5) years or by a
fine of not less than Five Hundred Dollars ($500.00) a nd not more
than Five Thousand Dollars ($5,000.00), or by both such imprisonment
and fine.
C. All meetings of the Department shall be open public
meetings, and all records shall be public records, except when
considering personnel.
SECTION 2. This act shall become effective July 1, 2025.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT
OVERSIGHT, dated 04/17/2025 - DO PASS.