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; 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 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.
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