| 4 | 2 | | |
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| 5 | 3 | | |
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| 6 | 4 | | A BILL TO BE ENTITLED |
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| 7 | 5 | | AN ACT |
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| 8 | 6 | | relating to financial assistance for rail facilities. |
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| 9 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 8 | | SECTION 1. Chapter 201, Transportation Code, is amended by |
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| 11 | 9 | | adding Subchapter O-1, to read as follows: |
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| 12 | 10 | | SUBCHAPTER O-1. FINANCIAL ASSISTANCE FOR RAIL |
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| 13 | 11 | | SEC. 201.981. GRANTS FOR SHORTLINE RAIL IMPROVEMENT. (a) |
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| 14 | 12 | | In this section: |
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| 15 | 13 | | (1) "District" means a rural rail transportation |
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| 16 | 14 | | district to which Transportation Code, Chapter 172, applies. |
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| 17 | 15 | | (2) "Shortline railroad" means a Class II or Class III |
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| 18 | 16 | | railroad under the current railroad classification criteria set by |
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| 19 | 17 | | the federal Surface Transportation Board. |
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| 20 | 18 | | (b) The legislature finds that shortline railroads |
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| 21 | 19 | | operating in this state develop and expand transportation and |
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| 22 | 20 | | commerce within the state in accordance with Section 52-a, Article |
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| 23 | 21 | | III, Texas Constitution. |
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| 24 | 22 | | (c) The department may provide to a district or a shortline |
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| 25 | 23 | | railroad a grant to be used for track or bridge replacement, rail |
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| 26 | 24 | | capacity improvement, or rail restoration. To be eligible for a |
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| 27 | 25 | | grant under this section a project must increase public safety, |
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| 28 | 26 | | enhance economic development, or reduce traffic congestion on |
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| 29 | 27 | | public roadways. |
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| 30 | 28 | | (c) A district or shortline railroad may use money provided |
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| 31 | 29 | | by the department under this section as matching funds to secure |
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| 32 | 30 | | federal funding for a purpose for which a grant may be made under |
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| 33 | 31 | | Subsection (b). |
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| 34 | 32 | | (d) Each grant under this section must be approved by the |
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| 35 | 33 | | commission. Before approving a grant, the commission shall require |
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| 36 | 34 | | that at least 10 percent of the total project cost, or if used as |
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| 37 | 35 | | matching funds, at least 10 percent of the amount used as matching |
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| 38 | 36 | | funds, be provided by sources other than the state. |
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| 39 | 37 | | (e) For a grant under this section, the department may use |
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| 40 | 38 | | only money appropriated specifically for that purpose. The |
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| 41 | 39 | | department may not use money deposited in the state treasury to the |
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| 42 | 40 | | credit of the state highway fund for a grant under this section. |
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| 43 | 41 | | (f) The commission shall adopt rules to implement this |
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| 44 | 42 | | section. |
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| 45 | 43 | | SECTION 2. This Act takes effect immediately if it receives |
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| 46 | 44 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 45 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 46 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 47 | | Act takes effect September 1, 2025. |
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