HB 4662

relating to financial assistance for rail facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 201, Transportation Code, is amended by
adding Subchapter O-1, to read as follows:
SUBCHAPTER O-1.  FINANCIAL ASSISTANCE FOR RAIL
SEC. 201.981.  GRANTS FOR SHORTLINE RAIL IMPROVEMENT.  (a)
(1)  "District" means a rural rail transportation
district to which Transportation Code, Chapter 172, applies.
(2)  "Shortline railroad" means a Class II or Class III
railroad under the current railroad classification criteria set by
the federal Surface Transportation Board.
(b)  The legislature finds that shortline railroads
operating in this state develop and expand transportation and
commerce within the state in accordance with Section 52-a, Article
(c)  The department may provide to a district or a shortline
railroad a grant to be used for track or bridge replacement, rail
capacity improvement, or rail restoration.  To be eligible for a
grant under this section a project must increase public safety,
enhance economic development, or reduce traffic congestion on
(c)  A district or shortline railroad may use money provided
by the department under this section as matching funds to secure
federal funding for a purpose for which a grant may be made under
(d)  Each grant under this section must be approved by the
commission.  Before approving a grant, the commission shall require
that at least 10 percent of the total project cost, or if used as
matching funds, at least 10 percent of the amount used as matching
funds, be provided by sources other than the state.
(e)  For a grant under this section, the department may use
only money appropriated specifically for that purpose.  The
department may not use money deposited in the state treasury to the
credit of the state highway fund for a grant under this section.
(f)  The commission shall adopt rules to implement this
SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.