Texas Legislature tackles state railroad funding
BY TERRIE GONZALEZ MANAGING EDITOR

AUSTIN - The Texas Legislature is examining options on funding for the Texas State Railroad.

On the Senate side in Natural Resources, the committee voted to approve SB 1659, which paves the way for a public private partnership of the Texas State Railroad. A substitute bill was submitted by state Sen. Robert Nichols (RJacksonville) with language removing the authority's ability to issue bonds. The action came April 13, two days after testimony was presented to the committee by two East Texas delegations, one supporting the rail privatization and the other opposed.

The House Committee on Culture, Recreation and Tourism, which heard companion HB 3113, adopted a more cautious approach and declined to take action immediately,

State Rep. Harvey Hilderbran (R-Kerrville), who chairs the House committee, told the Cherokeean Herald during an interview on the House floor the following day, that he was unaware that any local groups opposed privatization.

"We thought all people in East Texas were united in their desire to transfer the train," he said.

He also said his committee did not understand that the train would be given away to a private operator over a period of eight years. The House Committee on Culture, Recreation and Tourism thought the bill before them would transfer ownership from the Texas Parks & Wildlife Department to the Texas State Railroad Operating Authority, and that authority would hire a concessionaire and maintain oversight.

Under terms of the contract signed by the Texas State Railroad Operating Agency and American Heritage Railways, 12.5 percent of the ownership of the TSR will be given to AHR each year that performance goals are met.

The committee's confusion indirectly ties in to a legal point of order raised by former State District Judge Max Bennett, who opposes giving the train away to a private operator. Judge Bennett testified before both the House and the Senate committees last week and asserted that the description of the bill does not accurately reflect the bill's intention, which is to transfer ownership of the train from the state rail authority to a private operator.

Mr. Hilderbran said that he believes there are several options worth pursuing, and he said he wanted to hear from both sides to gain their insight on those options.

He said one option is to package the Texas State Railroad with a group of historic sites which may be transferred from TPWD to the Texas Historical Commission. Another option is to amend the bill and the contract that the TSR Operating Agency signed to make it conform to the committee's wishes.

There may be some other legal issues surrounding the creation of a rail authority that may be unconstitutional as the issue is being presented now.

"It may take a couple of weeks to sort this all out," he said.

Dr. Terry Colley, assistant executive director of the Texas Historical Commission, said that his agency has pledged support to help the TSR any way that it can.

"We are cautiously optimistic about the transfer of the state historic sites," he said. "If including the railroad with the historic sites is the desire of the Legislature, then we'll work with that scenario."

Privatization is not the only "track" being pursued for the Texas State Railroad. State Rep. Chuck Hopson (D-Jacksonville) is hoping that his Article 11 rider in the omnibus Appropriations bill will pass, which outright funds the TSR and keeps it under the jurisdiction of the state parks system and the Texas Parks & Wildlife Dept.

"That's my first choice," said Rep. Hopson.

He predicted that he will know more about the chances of the Legislature approving his funding request within a couple of weeks.

Bonding authority was removed from Sen. Nichols' substitute bill because if a private rail operator is contracted, that company may seek funding on the open market.