| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | |
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| 10 | 6 | | |
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| 11 | 7 | | A BILL TO BE ENTITLED |
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| 12 | 8 | | AN ACT |
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| 13 | 9 | | relating to a grant program to fund certain short line railroad |
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| 14 | 10 | | projects. |
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| 15 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 12 | | SECTION 1. Subchapter O, Chapter 201, Transportation Code, |
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| 17 | 13 | | is amended by adding Section 201.981 to read as follows: |
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| 18 | 14 | | Sec. 201.981. GRANT PROGRAM FOR CERTAIN SHORT LINE RAILROAD |
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| 19 | 15 | | PROJECTS. (a) In this section: |
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| 20 | 16 | | (1) "District" has the meaning assigned by Section |
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| 21 | 17 | | 172.001. |
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| 22 | 18 | | (2) "Railroad company" includes the entities |
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| 23 | 19 | | described by Section 81.002. |
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| 24 | 20 | | (3) "Short line railroad" means a Class II or Class III |
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| 25 | 21 | | railroad as defined by the federal Surface Transportation Board. |
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| 26 | 22 | | (b) For the purpose of increasing public safety, enhancing |
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| 27 | 23 | | economic development, and reducing traffic, the department shall |
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| 28 | 24 | | establish and administer a program to award grants to districts or |
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| 29 | 25 | | railroad companies that own or operate short line railroads to fund |
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| 30 | 26 | | projects that: |
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| 31 | 27 | | (1) replace short line railroad tracks or bridges; |
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| 32 | 28 | | (2) improve short line rail capacity; or |
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| 33 | 29 | | (3) restore short line railways. |
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| 34 | 30 | | (c) A district or railroad company that owns or operates a |
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| 35 | 31 | | short line railroad may use money awarded by the department under |
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| 36 | 32 | | this section as matching funds to secure additional funding for a |
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| 37 | 33 | | short line railroad project described by Subsection (b). |
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| 38 | 34 | | (d) Each grant awarded under this section must be approved |
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| 39 | 35 | | by the commission. The commission may not approve a grant under |
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| 40 | 36 | | this section unless the commission determines that: |
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| 41 | 37 | | (1) at least 10 percent of the total project costs will |
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| 42 | 38 | | be provided by a source other than the state; or |
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| 43 | 39 | | (2) if the grant money is being used as matching funds |
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| 44 | 40 | | under Subsection (c), at least 10 percent of the amount used as |
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| 45 | 41 | | matching funds will be provided by a source other than the state. |
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| 46 | 42 | | (e) The department may fund the grant program under this |
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| 47 | 43 | | section only from money appropriated by the legislature for that |
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| 48 | 44 | | purpose and from gifts and grants, including grants from the |
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| 49 | 45 | | federal government. The department may solicit and accept gifts |
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| 50 | 46 | | and grants from any source for the purposes of this section. Money |
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| 51 | 47 | | deposited to the credit of the state highway fund may not be used to |
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| 52 | 48 | | fund a grant awarded under this section. |
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| 53 | 49 | | (f) The commission shall adopt rules as necessary to |
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| 54 | 50 | | implement this section. |
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| 55 | 51 | | SECTION 2. Not later than October 1, 2025, the Texas |
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| 56 | 52 | | Transportation Commission shall adopt the rules required by Section |
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| 57 | 53 | | 201.981, Transportation Code, as added by this Act. |
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| 58 | 54 | | SECTION 3. This Act takes effect immediately if it receives |
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| 59 | 55 | | a vote of two-thirds of all the members elected to each house, as |
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| 60 | 56 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 61 | 57 | | Act does not receive the vote necessary for immediate effect, this |
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| 62 | 58 | | Act takes effect September 1, 2025. |
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