BILL ANALYSIS H.B. 4662 By: Hefner Transportation Committee Report (Unamended) BACKGROUND AND PURPOSE The bill author has informed the committee that, nationwide, over 600 small, locally owned and operated short line railroads serve their communities, connecting them to the larger rail network and multimodal transportation partners, including ports. The bill author has further informed the committee that many short lines are low-density and serve rural areas, meaning that they lack the funds for deferred maintenance and cannot pay for improvements to support higher speeds or to accommodate heavier railcars. While other states have established and grown grant programs to support their short line networks, Texas remains one of the few states without such a program. H.B. 4662 seeks to remedy this issue by requiring the Texas Department of Transportation to create a grant program for the maintenance, operation, and expansion of certain short lines. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Texas Transportation Commission in SECTION 1 of this bill. ANALYSIS H.B. 4662 amends the Transportation Code to require the Texas Department of Transportation (TxDOT), for the purpose of increasing public safety, enhancing economic development, and reducing traffic, to establish and administer a program to award grants to certain rural rail transportation districts or to railroad companies that own or operate short line railroads to fund projects that replace short line railroad tracks or bridges, improve short line rail capacity, or restore short line railways. The bill defines "district" by reference to its meaning assigned by statutory provisions governing rural rail transportation districts and "short line railroad" as a Class II or Class III railroad as defined by the federal Surface Transportation Board. The bill authorizes a district or a railroad company that owns or operates a short line railroad to use such grant money awarded by TxDOT as matching funds to secure additional funding for a short line railroad project described by the bill. H.B. 4662 requires each awarded grant to be approved by the Texas Transportation Commission and requires the commission, before approving such a grant, to determine that at least 10 percent of the total project costs will be provided by a source other than the state, or if the grant money is being used as matching funds, that at least 10 percent of the amount used as matching funds will be provided by a source other than the state. The bill authorizes TxDOT to fund the grant program under the bill from only money appropriated by the legislature for that purpose and from gifts and grants, including grants from the federal government, and authorizes TxDOT to solicit and accept gifts and grants from any source for purposes of the grant program. The bill prohibits the use of money deposited to the credit of the state highway fund to fund a grant awarded under the program. The bill requires the commission, not later than October 1, 2025, to adopt rules to implement the bill's provisions. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 4662
By: Hefner
Transportation
Committee Report (Unamended)
H.B. 4662
By: Hefner
Transportation
Committee Report (Unamended)
BACKGROUND AND PURPOSE The bill author has informed the committee that, nationwide, over 600 small, locally owned and operated short line railroads serve their communities, connecting them to the larger rail network and multimodal transportation partners, including ports. The bill author has further informed the committee that many short lines are low-density and serve rural areas, meaning that they lack the funds for deferred maintenance and cannot pay for improvements to support higher speeds or to accommodate heavier railcars. While other states have established and grown grant programs to support their short line networks, Texas remains one of the few states without such a program. H.B. 4662 seeks to remedy this issue by requiring the Texas Department of Transportation to create a grant program for the maintenance, operation, and expansion of certain short lines.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Texas Transportation Commission in SECTION 1 of this bill.
ANALYSIS H.B. 4662 amends the Transportation Code to require the Texas Department of Transportation (TxDOT), for the purpose of increasing public safety, enhancing economic development, and reducing traffic, to establish and administer a program to award grants to certain rural rail transportation districts or to railroad companies that own or operate short line railroads to fund projects that replace short line railroad tracks or bridges, improve short line rail capacity, or restore short line railways. The bill defines "district" by reference to its meaning assigned by statutory provisions governing rural rail transportation districts and "short line railroad" as a Class II or Class III railroad as defined by the federal Surface Transportation Board. The bill authorizes a district or a railroad company that owns or operates a short line railroad to use such grant money awarded by TxDOT as matching funds to secure additional funding for a short line railroad project described by the bill. H.B. 4662 requires each awarded grant to be approved by the Texas Transportation Commission and requires the commission, before approving such a grant, to determine that at least 10 percent of the total project costs will be provided by a source other than the state, or if the grant money is being used as matching funds, that at least 10 percent of the amount used as matching funds will be provided by a source other than the state. The bill authorizes TxDOT to fund the grant program under the bill from only money appropriated by the legislature for that purpose and from gifts and grants, including grants from the federal government, and authorizes TxDOT to solicit and accept gifts and grants from any source for purposes of the grant program. The bill prohibits the use of money deposited to the credit of the state highway fund to fund a grant awarded under the program. The bill requires the commission, not later than October 1, 2025, to adopt rules to implement the bill's provisions.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BACKGROUND AND PURPOSE
The bill author has informed the committee that, nationwide, over 600 small, locally owned and operated short line railroads serve their communities, connecting them to the larger rail network and multimodal transportation partners, including ports. The bill author has further informed the committee that many short lines are low-density and serve rural areas, meaning that they lack the funds for deferred maintenance and cannot pay for improvements to support higher speeds or to accommodate heavier railcars. While other states have established and grown grant programs to support their short line networks, Texas remains one of the few states without such a program. H.B. 4662 seeks to remedy this issue by requiring the Texas Department of Transportation to create a grant program for the maintenance, operation, and expansion of certain short lines.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Texas Transportation Commission in SECTION 1 of this bill.
ANALYSIS
H.B. 4662 amends the Transportation Code to require the Texas Department of Transportation (TxDOT), for the purpose of increasing public safety, enhancing economic development, and reducing traffic, to establish and administer a program to award grants to certain rural rail transportation districts or to railroad companies that own or operate short line railroads to fund projects that replace short line railroad tracks or bridges, improve short line rail capacity, or restore short line railways. The bill defines "district" by reference to its meaning assigned by statutory provisions governing rural rail transportation districts and "short line railroad" as a Class II or Class III railroad as defined by the federal Surface Transportation Board. The bill authorizes a district or a railroad company that owns or operates a short line railroad to use such grant money awarded by TxDOT as matching funds to secure additional funding for a short line railroad project described by the bill.
H.B. 4662 requires each awarded grant to be approved by the Texas Transportation Commission and requires the commission, before approving such a grant, to determine that at least 10 percent of the total project costs will be provided by a source other than the state, or if the grant money is being used as matching funds, that at least 10 percent of the amount used as matching funds will be provided by a source other than the state. The bill authorizes TxDOT to fund the grant program under the bill from only money appropriated by the legislature for that purpose and from gifts and grants, including grants from the federal government, and authorizes TxDOT to solicit and accept gifts and grants from any source for purposes of the grant program. The bill prohibits the use of money deposited to the credit of the state highway fund to fund a grant awarded under the program. The bill requires the commission, not later than October 1, 2025, to adopt rules to implement the bill's provisions.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.