HBA-NLM H.B. 3117 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3117 By: Swinford Land & Resource Management 4/20/1999 Committee Report (Amended) BACKGROUND AND PURPOSE Since the deregulation of Texas railroads, some structures built on abandoned land originally leased from rail companies and subsequently purchased by a real estate developer, are not being sold at the fair market value of the land. H.B. 3117 requires a railroad company to offer the holders of structures built on land rented from the railroad the first right of refusal to purchase that property. In addition, this bill requires that an independent arbitrator establish the fair market value price for which the land may be sold. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 112, V.T.C.S., by adding Article 6349a, as follows: Art. 6349a. PURCHASE OF RIGHT-OF-WAY FOLLOWING ABANDONMENT. (a) Requires a railroad company that applies to the federal Surface Transportation Board or other appropriate federal agency for permission to abandon a railroad line to give any person who has constructed a building or other structure, installed equipment, or made any other type of leasehold improvement on railroad right-of-way of the company or adjoining railroad property the right of first refusal to purchase, at the fair market value of the land as determined by an independent appraiser, the right-of-way or adjoining property where the structure, equipment, or other improvement is located. (b) Provides that the land subject to purchase under this article is that which is necessary for unrestricted use of the structure, equipment, or other leasehold improvement. (c) Requires ownership of the structure, equipment, or other leasehold improvement to be transferred at no cost to a person buying the land under this article. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. EXPLANATION OF AMENDMENTS Amendment # 1 Amends H.B. 3117 in SECTION 1 (Article 6349a(c), Title 112, V.T.C.S.), to require ownership of the structure, equipment, or other leasehold improvement to be transferred at no cost to a person buying the land under Subsection (a) of this article.