SB 2366

relating to a grant program to fund certain short line railroad
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter O, Chapter 201, Transportation Code,
is amended by adding Section 201.981 to read as follows:
Sec. 201.981.  GRANT PROGRAM FOR CERTAIN SHORT LINE RAILROAD
PROJECTS.  (a)  In this section:
(1)  "District" has the meaning assigned by Section
(2)  "Railroad company" includes the entities
(3)  "Short line railroad" means a Class II or Class III
railroad as defined by the federal Surface Transportation Board.
(b)  For the purpose of increasing public safety, enhancing
economic development, and reducing traffic, the department shall
establish and administer a program to award grants to districts or
railroad companies that own or operate short line railroads to fund
(1)  replace short line railroad tracks or bridges;
(2)  improve short line rail capacity; or
(3)  restore short line railways.
(c)  A district or railroad company that owns or operates a
short line railroad may use money awarded by the department under
this section as matching funds to secure additional funding for a
short line railroad project described by Subsection (b).
(d)  Each grant awarded under this section must be approved
by the commission.  The commission may not approve a grant under
this section unless the commission determines that:
(1)  at least 10 percent of the total project costs will
be provided by a source other than the state; or
(2)  if the grant money is being used as matching funds
under Subsection (c), at least 10 percent of the amount used as
matching funds will be provided by a source other than the state.
(e)  The department may fund the grant program under this
section only from money appropriated by the legislature for that
purpose and from gifts and grants, including grants from the
federal government.  The department may solicit and accept gifts
and grants from any source for the purposes of this section.  Money
deposited to the credit of the state highway fund may not be used to
fund a grant awarded under this section.
(f)  The commission shall adopt rules as necessary to
SECTION 2.  Not later than October 1, 2025, the Texas
Transportation Commission shall adopt the rules required by Section
201.981, Transportation Code, as added by this Act.
SECTION 3.  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.