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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 341 By: Frix
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6 AS INTRODUCED
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7 An Act relating to the Railroad Revitalization Act;
7 amending 66 O.S. 2021, Section 304, which relates to
8 the powers and duties of the Department of
8 Transportation; providing process for sale of certain
9 lease-purchase properties; modifying process for sale
9 of certain properties; updating statutory language;
10 updating statutory references; providing an effective
10 date; and declaring an emergency.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 66 O.S. 2021, Section 304, is
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15 amended to read as follows:
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16 Section 304. A. The Department of Transportation is hereby
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17 authorized and empowered:
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18 1. To acquire, construct, reconstruct, repair, replace,
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19 operate, and maintain railroad rights-of-way and trackage projects
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20 at such locations and on such routes as it shall determine to be
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21 feasible and economically sound;
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22 2. To enter into agreements with the owners of operating
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23 railroads for the acquisition and/or or use of railroad rights-of-
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1 way and trackage on such terms, conditions, rates, or rentals as the
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2 Department may consider to be in the best interests of the state;
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3 3. To enter directly into agreements with owners of operating
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4 railroads or persons intending to operate as common carriers by rail
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5 to sell, lease, or sell by lease-purchase agreement any state-owned
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6 railroad property on such terms, conditions, or amounts as the
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7 Department may consider to be in the best interests of the state and
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8 to promote the purposes of the Railroad Revitalization Act. If the
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9 operator under a lease-purchase agreement exercises the purchase
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10 option, the purchase shall be subject to the approval of the
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11 Transportation Commission. For the purpose of preserving railroad
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12 connectivity, the purchase price shall be based on the railroad's
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13 operation value as appraised within the previous two (2) years;
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14 4. Prior to the sale of any railroad asset owned by the State
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15 of Oklahoma this state or the Department of Transportation, a
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16 process of request for proposal shall be initiated by the Department
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17 of Transportation with consultation by the Office of Management and
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18 Enterprise Services. Upon the issue date of a request for proposal
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19 regarding the sale of any railroad asset owned by the State of
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20 Oklahoma this state or the Department of Transportation, interested
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21 parties will have no less than ninety (90) one hundred twenty (120)
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22 days to provide a response. Following the close of the ninety-day
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23 one-hundred-twenty-day response period, the Department of
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24 Transportation will conduct an evaluation of all submitted
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Req. No. 915 Page 2
1 proposals, utilizing all available resources, and the Department of
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2 Commerce shall may conduct an economic impact and/or or activity
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3 study of all proposals. The Secretary Director of the Department of
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4 Transportation, Secretary of Finance, Secretary of Commerce,
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5 Secretary of Agriculture, and Secretary of Energy shall be
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6 responsible for preparing a recommendation to the Transportation
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7 Commission, based on its evaluation of all submitted proposals
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8 including, if available, the results of the an economic impact
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9 and/or or activity study, provided the recommendation meets all
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10 other statutory requirements needed for action by the Commission.
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11 The Secretary of Transportation, Secretary of Finance, Secretary of
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12 Commerce, Secretary of Agriculture, and Secretary of Energy will
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13 Director shall have up to ninety (90) days, upon the closing date of
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14 the request for proposal, to present its his or her recommendation
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15 to the Transportation Commission. The Transportation Commission
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16 will be responsible for determining if the sale of railroad assets
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17 within its jurisdiction is in the best interests of the State of
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18 Oklahoma this state and for authorizing the sale of such assets. If
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19 a determination is rendered by the Transportation Commission that
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20 the sale of any railroad asset within its jurisdiction is
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21 appropriate, notification must be made to the Speaker of the House
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22 of Representatives and the President Pro Tempore of the Senate in
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23 writing prior to the Commission meeting where final action will take
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1 place. All proceeds from the sale shall be deposited into the
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2 Oklahoma Railroad Maintenance Revolving Fund;
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3 5. To acquire and hold real or personal property in the
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4 exercise of its powers for the performance of its duties as
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5 authorized by this act Section 302.1 et seq. of this title. Surplus
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6 property may be disposed of by the Department;
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7 6. To acquire in the name of the Department, by purchase or
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8 otherwise on such terms and conditions and in such manner as it may
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9 deem proper, or by exercise of the right of condemnation, such
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10 public or private lands and personalty, including public parks,
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11 playgrounds, or reservations, or parts thereof or rights therein,
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12 rights-of-way, trackage, property, rights, easements, and interests,
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13 as it may deem necessary for carrying out the provisions of the
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14 Railroad Revitalization Act;
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15 7. To make and enter into all contracts and agreements
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16 necessary or incidental to the performance of its duties and the
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17 execution of its powers under the Railroad Revitalization Act, and
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18 to employ rail planning and management consultants, consulting
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19 engineers, attorneys, accountants, construction and financial
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20 consultants, superintendents, managers, and such other employees and
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21 agents as may be necessary in its judgment, and to fix their
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22 compensation; provided, that all such expenses shall be payable
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23 solely from funds made available under and pursuant to the
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24 provisions of the Railroad Revitalization Act or from revenues;
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1 provided, further, no attorney employed by the Department, nor any
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2 member of any law firm of which the member may be connected, shall
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3 ever be paid any fee or compensation for any special or
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4 extraordinary services;
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5 8. To receive, accept, and expend funds from the state, any
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6 federal agency, or from private sources, for rail planning and for
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7 administration of railroad assistance projects, and for or in aid of
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8 the acquisition, construction, reconstruction, replacement, repair,
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9 maintenance, and operation of railroad rights-of-way and trackage
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10 and for rail service continuation payments to railroad companies for
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11 operating losses sustained by reasons of continuing service on a
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12 line which may otherwise be abandoned or which may experience a
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13 reduced level of service not in the public interest, where such
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14 continuation of service is carried out under a written agreement
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15 with the Department establishing the terms and conditions for such
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16 payments, and to receive and accept funds, aid or contributions from
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17 any source of either money, property, labor, or other things of
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18 value, to be held, used, and applied only for the purposes for which
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19 such funds, aid, or contributions may be made;
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20 9. To adopt such rules and to do any and all things necessary
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21 to comply with rules, regulations, or requirements of the United
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22 States Department of Transportation, any successor thereof, the
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23 Surface Transportation Board or any federal agency administering any
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24 law enacted by the United States Congress of the United States or
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1 having funds available for the purpose of the Department that are
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2 not inconsistent with or contrary to the prohibitions and
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3 restrictions of Oklahoma law or public interest;
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4 10. To expend, not to exceed twenty percent (20%) of the funds
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5 available in the Oklahoma Railroad Maintenance Revolving Fund during
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6 any one (1) year, at locations approved by the Oklahoma Corporation
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7 Commission, such Oklahoma Railroad Maintenance Revolving Fund monies
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8 as may be budgeted by the Department of Transportation for the
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9 purposes of installing signal lights, gate arms, or other active
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10 warning devices where any public road, street, or highway crosses a
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11 railroad right-of-way; provided, however, nothing in this act the
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12 Railroad Revitalization Act shall negate, change, or otherwise
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13 modify any existing statutory or common law duty of a railroad
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14 company;
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15 11. To expend income and funds from the Oklahoma Railroad
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16 Maintenance Revolving Fund in the exercise of any or all of the
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17 foregoing powers; and
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18 12. To do all things necessary or convenient to carry out the
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19 powers expressly granted in this act Section 302.1 et seq. of this
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20 title.
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21 B. It shall be unlawful for any member, officer, or employee of
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22 the Department to transact with the Department, either directly or
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23 indirectly, any business for profit of such member, officer, or
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24 employee; and any person, firm, or corporation knowingly
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1 participating therein shall be equally liable for a violation of
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2 this provision.
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3 The term "business for profit" shall include, but not be limited
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4 to, the acceptance or payment of any fee, commission, gift, or
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5 consideration to such member, officer, or employee.
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6 Violation of this provision shall constitute a felony and upon
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7 conviction shall be punishable by incarceration in the Oklahoma
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8 State Penitentiary for a term not to exceed five (5) years or by a
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9 fine of not less than Five Hundred Dollars ($500.00) and not more
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10 than Five Thousand Dollars ($5,000.00), or by both such imprisonment
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11 and fine.
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12 C. All meetings of the Department shall be open public
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13 meetings, and all records shall be public records, except when
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14 considering personnel.
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15 SECTION 2. This act shall become effective July 1, 2025.
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16 SECTION 3. It being immediately necessary for the preservation
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17 of the public peace, health or safety, an emergency is hereby
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18 declared to exist, by reason whereof this act shall take effect and
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19 be in full force from and after its passage and approval.
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Req. No. 915 Page 7Every fact on this page links to its source, starting with the official bill record.