Oklahoma § 66-304.1 - Action to determine constitutionality of Railroad

§ 66-304.1. Action to determine constitutionality of Railroad

Revitalization Act.

The Department is authorized, in its discretion, to file an

application with the Supreme Court of Oklahoma to determine the

constitutionality of the Railroad Revitalization Act, Sections 302.1

through 309 of this title and the programs relating to funding or

assistance to railroads contemplated thereby; and exclusive original

jurisdiction is hereby conferred upon the Supreme Court to hear and

determine such application. It shall be the duty of the Court to

give such application precedence over the other business of the

Court and to pass upon said application as speedily as possible.

Oklahoma Statutes - Title 66. Railroads

Laws 1980, c. 139, § 2, emerg. eff. March 26, 1980; Laws 1981, c.

214, § 2, emerg. eff. June 1, 1981.

§66-304v1. Powers and duties.

A. The Department of Transportation is hereby authorized and

empowered:

1. To acquire, construct, reconstruct, repair, replace,

operate, and maintain railroad rights-of-way and trackage projects

at such locations and on such routes as it shall determine to be

feasible and economically sound;

2. To enter into agreements with the owners of operating

railroads for the acquisition or use of railroad rights-of-way and

trackage on such terms, conditions, rates, or rentals as the

Department may consider to be in the best interests of the state;

3. To enter directly into agreements with owners of operating

railroads or persons intending to operate as common carriers by rail

to sell, lease, or sell by lease-purchase agreement any state-owned

railroad property on such terms, conditions, or amounts as the

Department may consider to be in the best interests of the state and

to promote the purposes of the Railroad Revitalization Act. If the

operator under a lease-purchase agreement exercises the purchase

option, the purchase shall be subject to the approval of the

Transportation Commission;

4. Prior to the sale of any railroad asset owned by this state

or the Department of Transportation, a process of request for

proposal shall be initiated by the Department of Transportation.

Upon the issue date of a request for proposal regarding the sale of

any railroad asset owned by this state or the Department of

Transportation, interested parties will have no less than one

hundred twenty (120) days to provide a response. Following the

close of the one-hundred-twenty-day response period, the Department

of Transportation will conduct an evaluation of all submitted

proposals, and the Department may conduct an economic impact or

activity study of all proposals. The Director of the Department of

Transportation shall be responsible for preparing a recommendation

to the Transportation Commission, based on its evaluation of all

submitted proposals including, if available, the results of an

economic impact or activity study, provided the recommendation meets

all other statutory requirements needed for action by the

Commission. The Director shall have up to ninety (90) days, upon

the closing date of the request for proposal, to present his or her

recommendation to the Transportation Commission. The Transportation

Commission will be responsible for determining if the sale of

railroad assets within its jurisdiction is in the best interests of

this state and for authorizing the sale of such assets. All

proceeds from the sale shall be deposited into the Oklahoma Railroad

Maintenance Revolving Fund;

Oklahoma Statutes - Title 66. Railroads

5. To acquire and hold real or personal property in the

exercise of its powers for the performance of its duties as

authorized by Section 302.1 et seq. of this title. Surplus property

may be disposed of by the Department;

6. To acquire in the name of the Department, by purchase or

otherwise on such terms and conditions and in such manner as it may

deem proper, or by exercise of the right of condemnation, such

public or private lands and personalty, including public parks,

playgrounds, or reservations, or parts thereof or rights therein,

rights-of-way, trackage, property, rights, easements, and interests

as it may deem necessary for carrying out the provisions of the

Railroad Revitalization Act;

7. To make and enter into all contracts and agreements

necessary or incidental to the performance of its duties and the

execution of its powers under the Railroad Revitalization Act, and

to employ rail planning and management consultants, consulting

engineers, attorneys, accountants, construction and financial

consultants, superintendents, managers, and such other employees and

agents as may be necessary in its judgment, and to fix their

compensation; provided, that all such expenses shall be payable

solely from funds made available under and pursuant to the

provisions of the Railroad Revitalization Act or from revenues;

provided further, no attorney employed by the Department, nor any

member of any law firm of which the member may be connected, shall

ever be paid any fee or compensation for any special or

extraordinary services;

8. To receive, accept, and expend funds from the state, any

federal agency, or from private sources, for rail planning and for

administration of railroad assistance projects, and for or in aid of

the acquisition, construction, reconstruction, replacement, repair,

maintenance, and operation of railroad rights-of-way and trackage

and for rail service continuation payments to railroad companies for

operating losses sustained by reasons of continuing service on a

line which may otherwise be abandoned or which may experience a

reduced level of service not in the public interest, where such

continuation of service is carried out under a written agreement

with the Department establishing the terms and conditions for such

payments, and to receive and accept funds, aid or contributions from

any source of either money, property, labor, or other things of

value, to be held, used, and applied only for the purposes for which

such funds, aid, or contributions may be made;

9. To adopt such rules and to do any and all things necessary

to comply with rules, regulations, or requirements of the United

States Department of Transportation, any successor thereof, the

Surface Transportation Board or any federal agency administering any

law enacted by the United States Congress or having funds available

for the purpose of the Department that are not inconsistent with or

Oklahoma Statutes - Title 66. Railroads

contrary to the prohibitions and restrictions of Oklahoma law or

public interest;

10. To expend, not to exceed twenty percent (20%) of the funds

available in the Oklahoma Railroad Maintenance Revolving Fund during

any one (1) year, at locations approved by the Corporation

Commission, such Oklahoma Railroad Maintenance Revolving Fund monies

as may be budgeted by the Department of Transportation for the

purposes of installing signal lights, gate arms, or other active

warning devices where any public road, street, or highway crosses a

railroad right-of-way; provided, however, nothing in the Railroad

Revitalization Act shall negate, change, or otherwise modify any

existing statutory or common law duty of a railroad company;

11. To expend income and funds from the Oklahoma Railroad

Maintenance Revolving Fund in the exercise of any or all of the

foregoing powers; and

12. To do all things necessary or convenient to carry out the

powers expressly granted in Section 302.1 et seq. of this title.

B. It shall be unlawful for any member, officer, or employee of

the Department to transact with the Department, either directly or

indirectly, any business for profit of such member, officer, or

employee; and any person, firm, or corporation knowingly

participating therein shall be equally liable for a violation of

this provision.

The term “business for profit” shall include, but not be limited

to, the acceptance or payment of any fee, commission, gift, or

consideration to such member, officer, or employee.

Violation of this provision shall constitute a felony and upon

conviction shall be punishable by incarceration in the Oklahoma

State Penitentiary for a term not to exceed five (5) years or by a

fine not less than Five Hundred Dollars ($500.00) and not more than

Five Thousand Dollars ($5,000.00), or by both such imprisonment and

fine.

C. All meetings of the Department shall be open public

meetings, and all records shall be public records, except when

considering personnel.

Added by Laws 1971, c. 348, § 4, emerg. eff. June 19, 1971. Amended

by Laws 1978, c. 164, § 3, emerg. eff. April 10, 1978; Laws 1980, c.

139, § 1, emerg. eff. March 26, 1980; Laws 1981, c. 214, § 1, emerg.

eff. June 1, 1981; Laws 1997, c. 133, § 548, eff. July 1, 1999; Laws

1998, c. 376, § 2, eff. Nov. 1, 1998; Laws 1998, 1st Ex.Sess., c. 2,

§ 20, emerg. eff. June 19, 1998; Laws 1999, 1st Ex.Sess., c. 5, §

399, eff. July 1, 1999; Laws 2011, c. 120, § 1; Laws 2013, c. 377, §

1, eff. Oct. 1, 2013; Laws 2025, c. 31, § 1, eff. July 1, 2025.

NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective

date of Laws 1997, c. 133, § 548 from July 1, 1998, to July 1, 1999.

§66-304v2.

Powers and duties.

Oklahoma Statutes - Title 66. Railroads

A. The Department of Transportation is hereby authorized and

empowered:

1. To acquire, construct, reconstruct, repair, replace, operate

and maintain railroad rights-of-way and trackage projects at such

locations and on such routes as it shall determine to be feasible

and economically sound;

2. To enter into agreements with the owners of operating

railroads for the acquisition and/or use of railroad rights-of-way

and trackage on such terms, conditions, rates or rentals as the

Department may consider to be in the best interests of the state;

3. To enter directly into agreements with owners of operating

railroads or persons intending to operate as common carriers by rail

to sell, lease, or sell by lease-purchase agreement any state-owned

railroad property on such terms, conditions or amounts as the

Department may consider to be in the best interests of the state and

to promote the purposes of the Railroad Revitalization Act;

4. Prior to the sale of any railroad asset owned by the State

of Oklahoma or the Department of Transportation, a process of

request for proposal shall be initiated by the Department of

Transportation with consultation by the Office of Management and

Enterprise Services. Upon the issue date of a request for proposal

regarding the sale of any railroad asset owned by the State of

Oklahoma or the Department of Transportation, interested parties

will have no less than ninety (90) days to provide a response.

Following the close of the ninety-day response period, the

Department of Transportation will conduct an evaluation of all

submitted proposals, utilizing all available resources, and the

Department of Commerce shall conduct an economic impact and/or

activity study of all proposals. The Secretary of Transportation,

Secretary of Finance, Secretary of Commerce, Secretary of

Agriculture, and Secretary of Energy shall be responsible for

preparing a recommendation to the Transportation Commission, based

on its evaluation of all submitted proposals including the results

of the economic impact and/or activity study, provided the

recommendation meets all other statutory requirements needed for

action by the Commission. The Secretary of Transportation,

Secretary of Finance, Secretary of Commerce, Secretary of

Agriculture, and Secretary of Energy will have up to ninety (90)

days, upon the closing date of the request for proposal, to present

its recommendation to the Transportation Commission. The

Transportation Commission will be responsible for determining if the

sale of railroad assets within its jurisdiction is in the best

interests of the State of Oklahoma and for authorizing the sale of

such assets. If a determination is rendered by the Transportation

Commission that the sale of any railroad asset within its

jurisdiction is appropriate, notification must be made to the

Speaker of the House of Representatives and the President Pro

Oklahoma Statutes - Title 66. Railroads

Tempore of the Senate in writing prior to the Commission meeting

where final action will take place. All proceeds from the sale

shall be deposited into the Railroad Maintenance Revolving Fund;

5. To acquire and hold real or personal property in the

exercise of its powers for the performance of its duties as

authorized by this act. Surplus property may be disposed of by the

Department;

6. To acquire in the name of the Department, by purchase or

otherwise on such terms and conditions and in such manner as it may

deem proper, or by exercise of the right of condemnation, such

public or private lands and personalty, including public parks,

playgrounds, or reservations, or parts thereof or rights therein,

rights-of-way, trackage, property, rights, easements, and interests,

as it may deem necessary for carrying out the provisions of the

Railroad Revitalization Act;

7. To make and enter into all contracts and agreements

necessary or incidental to the performance of its duties and the

execution of its powers under the Railroad Revitalization Act, and

to employ rail planning and management consultants, consulting

engineers, attorneys, accountants, construction and financial

consultants, superintendents, managers, and such other employees and

agents as may be necessary in its judgment, and to fix their

compensation; provided, that all such expenses shall be payable

solely from funds made available under and pursuant to the

provisions of the Railroad Revitalization Act or from revenues;

provided, further, no attorney employed by the Department, nor any

member of any law firm of which the member may be connected, shall

ever be paid any fee or compensation for any special or

extraordinary services;

8. To receive, accept and expend funds from the state, any

federal agency, or from private sources, for rail planning and for

administration of railroad assistance projects, and for or in aid of

the acquisition, construction, reconstruction, replacement, repair,

maintenance and operation of railroad rights-of-way and trackage and

for rail service continuation payments to railroad companies for

operating losses sustained by reasons of continuing service on a

line which may otherwise be abandoned or which may experience a

reduced level of service not in the public interest, where such

continuation of service is carried out under a written agreement

with the Department establishing the terms and conditions for such

payments, and to receive and accept funds, aid or contributions from

any source of either money, property, labor or other things of

value, to be held, used and applied only for the purposes for which

such funds, aid or contributions may be made;

9. To adopt such rules and to do any and all things necessary

to comply with rules, regulations or requirements of the United

States Department of Transportation, any successor thereof, the

Oklahoma Statutes - Title 66. Railroads

Surface Transportation Board or any federal agency administering any

law enacted by the Congress of the United States or having funds

available for the purpose of the Department that are not

inconsistent with or contrary to the prohibitions and restrictions

of Oklahoma law or public interest;

10. To expend, not to exceed twenty percent (20%) of the funds

available in the Railroad Maintenance Revolving Fund during any one

(1) year, at locations approved by the Oklahoma Corporation

Commission, such Railroad Maintenance Revolving Fund monies as may

be budgeted by the Department of Transportation for the purposes of

installing signal lights, gate arms, or other active warning devices

where any public road, street, or highway crosses a railroad rightof-way; provided, however, nothing in this act shall negate, change,

or otherwise modify any existing statutory or common law duty of a

railroad company;

11. To expend income and funds from the Railroad Maintenance

Revolving Fund in the exercise of any or all of the foregoing

powers; and

12. To do all things necessary or convenient to carry out the

powers expressly granted in this act.

B. It shall be unlawful for any member, officer or employee of

the Department to transact with the Department, either directly or

indirectly, any business for profit of such member, officer or

employee; and any person, firm or corporation knowingly

participating therein shall be equally liable for violation of this

provision.

The term "business for profit" shall include, but not be limited

to, the acceptance or payment of any fee, commission, gift, or

consideration to such member, officer or employee.

Violation of this provision shall constitute a Class D1 felony

offense and upon conviction shall be punishable by incarceration as

provided for in subsections B through F of Section 20N of Title 21

of the Oklahoma Statutes, or by a fine of not less than Five Hundred

Dollars ($500.00) and not more than Five Thousand Dollars

($5,000.00), or by both such imprisonment and fine.

C. All meetings of the Department shall be open public

meetings, and all records shall be public records, except when

considering personnel.

Added by Laws 1971, c. 348, § 4, emerg. eff. June 19, 1971. Amended

by Laws 1978, c. 164, § 3, emerg. eff. April 10, 1978; Laws 1980, c.

139, § 1, emerg. eff. March 26, 1980; Laws 1981, c. 214, § 1, emerg.

eff. June 1, 1981; Laws 1997, c. 133, § 548, eff. July 1, 1999; Laws

1998, c. 376, § 2, eff. Nov. 1, 1998; Laws 1998, 1st Ex.Sess., c. 2,

§ 20, emerg. eff. June 19, 1998; Laws 1999, 1st Ex.Sess., c. 5, §

399, eff. July 1, 1999; Laws 2011, c. 120, § 1; Laws 2013, c. 377, §

1, eff. Oct. 1, 2013; Laws 2025, c. 486, § 556, eff. Jan. 1, 2026.

Oklahoma Statutes - Title 66. Railroads

NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective

date of Laws 1997, c. 133, § 548 from July 1, 1998, to July 1, 1999.