Formation of NETEX - The Northeast Texas Rural Transportation District
In 1981, Texas approved the legislation calling for the creation of rural rail districts throughout the state. By March of 1999, 11 rural rail districts, consisting of over 50 Texas counties have been developed. Rail districts can be formed in Texas by any one or more consecutive counties.
A rural rail district:
Is created by the commissioners court by resolution;
Is a governmental subdivision of the state;
Is a non-taxing authority;
Is a tax exempt authority;
Holds the powers of eminent domain and condemnation;
Is operated by a board of directors appointed by the commissioners court;
Excludes the county from liability;
Generates revenue through economic development grants, loans, and leasing and operational agreements; and
Has the authority to issue revenue bonds.
Following the application for abandonment of the Dallas Division of the Southern Pacific's subsidiary St. Louis Southwestern, the Cotton Belt, the four counties of Hunt, Hopkins, Franklin and Titus formed the Northeast Texas Rural Transportation District, NETEX.