Texas lawmakers move to stymie high-speed rail project

Texas Central plans to use Japanese high-speed trains to connect Houston and Dallas via a 90-minute trip. Texas Central plans to use Japanese high-speed trains to connect Houston and Dallas via a 90-minute trip. Image 1 of / 6 Caption Close Texas lawmakers move to stymie high-speed rail project 1 / 6 Back to Gallery

Nearly a dozen Republican state lawmakers, mostly from rural and suburban districts, filed a flurry of bills Tuesday aiming to “derail” plans for a privately-funded high-speed rail line in Texas.

The 18 bills, nine each in the Texas Senate and Texas House, aim to limit Texas Central Partners’ ability to develop a Houston-to-Dallas line supported by both metro areas, but strongly opposed by many rural landowners and elected officials.

The bills complicate the private company’s right to acquire property via eminent domain, strengthen landowner protections, compel state agencies to assess the feasibility of the planned rail line and prohibit the state from ever maintaining or operating a high-speed rail line.

"I still have doubts about whether a high-speed rail project makes sense for Texas" said Senator Brandon Creighton, R-Conroe. “Taxpayers should not be expected to pay the bill if the project fails.”

Company officials, in a statement, defended the project, noting Texas needs new mobility options.

"Contrary to the national focus on infrastructure projects that stand to create tens of thousands of jobs and benefit millions of people, it is ironic that the proposed legislation calls for more government regulation in trying to block a free market led project that will create jobs and generate economic development," said Holly Reed, managing director of external affairs for Texas Central.

Since the legislative session began, state lawmakers have said they planned to use Austin to constrain development of the high-speed rail project, notably its rights to survey and acquire rural land. Critics of the company have said it has used heavy-handed tactics to force landowners into sales agreements.

Earlier this month, Texas Central announced about 30 percent of the parcels needed for the 240-mile project are covered under sale option agreements, meaning landowners have agreed to sell the land once the project has the necessary environmental clearances and is ready for construction.

Bulllet train bills The following bills were filed this morning, summarized by the authors: SB 973 by Creighton/HB 2168 by Bell (Railroad Determination Before Surveys) - prohibits a private high-speed rail entity from entering private property to conduct a survey unless the Texas Department of Transportation (TxDOT) first determines that the surveying entity is, in fact, a railroad. SB 974 by Creighton/HB 2181 by Cook (Option Contract Protection) - voids any high-speed rail option contracts held by a high-speed rail entity upon a bankruptcy initiated by or against the entity. SB 975 by Birdwell/HB 2169 by Schubert (Security Requirements) - provides a framework of minimum security requirements to be followed during the construction and operation of a private high-speed rail line. Requires the high-speed rail authority to coordinate security efforts with state and local law enforcement, as well as disaster response agencies. SB 977 by Schwertner/HB 2172 by Ashby (No Taxpayer Bailout) - prohibits the legislature from appropriating new funds, or allowing state agencies to utilize existing funds, to pay any costs related to the construction, maintenance, or operation of a private high-speed rail in Texas. SB 978 by Schwertner/HB 2104 Bell (Property Restoration Bond) - requires a private high-speed rail entity to file a bond with the Texas Department of Transportation (TxDOT) sufficient to restore property used for the rail service to the property's original conditions if the service ceases operation. SB 979 by Schwertner/HB 2179 by Cook (Right of Repurchase for Non-HSR Use) - prohibits an entity that operates or plans to operate a high-speed rail from using property acquired for purposes other than high-speed rail. If the high-speed rail authority doesn't use the property for that specific purpose, the original landowner must be given the opportunity to repurchase the land. SB 980 by Schwertner/HB 2167 by Schubert (Put Texas First) - prohibits any state money from being used for any purpose related to a privately owned high-speed rail, unless the state acquires and maintains a lien in order to secure the repayment of state funds. Requires that the state's lien be superior to all other liens, effectively making Texas a priority creditor. SB 981 by Kolkhorst/HB 2162 by Wray (Interoperability) - requires an entity constructing a high-speed rail line in Texas to demonstrate compatibility with more than one type of train technology. SB 982 by Perry/HB 2173 by Ashby (High-Speed Rail Feasibility Study) - upon request of a legislator, the Texas Department of Transportation (TxDOT) must generate a feasibility study of a proposed high-speed rail project. The study must indicate whether the project is for a public use, whether it will be financially viable, and what impact of the project will have on local communities.

The company, which is said its still finalizing its private funding, will use Japanese bullet train technology to travel between the two metro areas. The trip, company officials said would cost around the same as airline travel, estimated to take 90 minutes. In addition to Houston and Dallas, the company plans a stop near College Station.

Along the route, residents and elected leaders who feel the project doesn’t benefit them and ruins the rural character of their communities have banded together to oppose it. State lawmakers, among them Sens. Charles Schwertner, R-Georgetown, and Lois Kolkhorst, R-Brenham, and State Reps. Cecil Bell, R-Magnolia and Byron Cook, R-Corsicana, have repeatedly questioned the need for the project.

"Transportation is a critical issue for our state, which requires thoughtful and pragmatic solutions for today and the future," said State Rep. John Wray, R-Waxahachie. "Texas Central has failed to demonstrate a viable or comprehensive plan addressing the real mobility needs of our state, and the legislation filed today seeks to address the legitimate issues posed by this project."

One of the major issues dividing Texas Central and opponents is the company's right to acquire property via eminent domain. The company claims it has rights as a railroad to use eminent domain, though some landowners have challenged that.

Courts, thus far, have issued mixed rulings. In a handful of cases, either courts have not approved the company's requests or Texas Central has pulled the claims. In a Harris County case last month, in which the landowner did not appear in court, Texas Central was granted a default summary judgement allowing it to survey property and declaring it a railroad.

Lawmakers, many who contend Texas Central does not have eminent domain authority, have said many of their concerns focus on landowner rights.

"Texans have always had a deep respect for the land and for the law," Kolkhorst said. "That's why the Legislature must tread lightly when property rights are at risk."