LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2366 by Hughes (Relating to a grant program to fund certain short line railroad projects.), As Introduced The fiscal impact to the state cannot be determined because the amount and timing of legislative appropriations to the Department of Transportation to provide financial assistance grants for rail facilities is unknown.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would require the Texas Department of Transportation (TxDOT) to establish and administer a program to award grants to rural rail transportation districts or shortline railroad companies for certain types of rail facility projects using only money appropriated by the legislature for that purpose and from gifts and grants. The bill would prohibit TxDOT from using money deposited to the State Highway Fund for that purpose. The bill would require the Texas Transportation Commission to adopt rules to implement the provisions of the bill. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or, otherwise, on September 1, 2025.Based on the information provided by TxDOT, it is assumed any costs or duties associated with administering the grant program could be absorbed within existing resources. Because the amount and timing of legislative appropriations and amounts of gifts and grants that would be received by TxDOT to fund rail facility financial assistance grants is unknown, the fiscal impact to the State cannot be determined. Local Government ImpactThe fiscal implications of the bill cannot be determined at this time. Source Agencies: b > td > 601 Department of Transportation LBB Staff: b > td > JMc, AAL, GDZ, TG LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2366 by Hughes (Relating to a grant program to fund certain short line railroad projects.), As Introduced TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2366 by Hughes (Relating to a grant program to fund certain short line railroad projects.), As Introduced Honorable Robert Nichols, Chair, Senate Committee on Transportation Honorable Robert Nichols, Chair, Senate Committee on Transportation Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board SB2366 by Hughes (Relating to a grant program to fund certain short line railroad projects.), As Introduced SB2366 by Hughes (Relating to a grant program to fund certain short line railroad projects.), As Introduced The fiscal impact to the state cannot be determined because the amount and timing of legislative appropriations to the Department of Transportation to provide financial assistance grants for rail facilities is unknown.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The fiscal impact to the state cannot be determined because the amount and timing of legislative appropriations to the Department of Transportation to provide financial assistance grants for rail facilities is unknown.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The fiscal impact to the state cannot be determined because the amount and timing of legislative appropriations to the Department of Transportation to provide financial assistance grants for rail facilities is unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would require the Texas Department of Transportation (TxDOT) to establish and administer a program to award grants to rural rail transportation districts or shortline railroad companies for certain types of rail facility projects using only money appropriated by the legislature for that purpose and from gifts and grants. The bill would prohibit TxDOT from using money deposited to the State Highway Fund for that purpose. The bill would require the Texas Transportation Commission to adopt rules to implement the provisions of the bill. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or, otherwise, on September 1, 2025.Based on the information provided by TxDOT, it is assumed any costs or duties associated with administering the grant program could be absorbed within existing resources. Because the amount and timing of legislative appropriations and amounts of gifts and grants that would be received by TxDOT to fund rail facility financial assistance grants is unknown, the fiscal impact to the State cannot be determined. Local Government Impact The fiscal implications of the bill cannot be determined at this time. Source Agencies: b > td > 601 Department of Transportation 601 Department of Transportation LBB Staff: b > td > JMc, AAL, GDZ, TG JMc, AAL, GDZ, TG