Amends TCA Title 4; Title 54, Chapter 1; Title 64 and Title 65.

This bill creates the office of rail and public transportation within the department of transportation ("office"), to be headed by a director who is appointed by the governor. Except for services performed by the department pursuant to present law, this bill requires the director to represent the department in meetings dealing with passenger and freight rail and public transportation issues and authorizes the director to do all acts necessary for establishing, maintaining, improving, and promoting passenger and freight rail and public transportation in this state and procuring architectural and engineering services for rail and public transportation projects. This bill authorizes the office to do the following: (1) Accept grants from the federal government or any other source; (2) Make and enter into all contracts and agreements necessary or incidental to the performance of the office’s duties and the execution of its powers under this bill; (3) Assist other appropriate entities, public or private, in the implementation and improvement of passenger and freight rail and public transportation services and the retention of rail corridors for public purposes; (4) Represent and promote the state's interests in passenger and freight rail and public transportation; and (5) If determined to be for the common good of this state or a region of this state, acquire land necessary to construct railway lines in order to reduce traffic congestion on highways and shift traffic to rail transportation; acquire railway lines, passenger and freight rail and public transportation facilities, and passenger and freight rail and public transportation equipment; and assist other appropriate entities in the improvement of passenger and freight rail and public transportation services and the retention of rail corridors for public purposes. The bill requires the office to do the following: (1) Determine present and future needs for, and economic feasibility of providing, public transportation and the retention, improvement, and addition of passenger and freight rail transportation in this state; (2) Formulate and implement plans and programs for the establishment, improvement, development, and coordination of public transportation and the development, retention, and improvement of passenger and freight rail transportation services and corridors in this state; (3) Coordinate with the department in the conduct of research, policy analysis, and planning for the rail and public transportation modes as may be appropriate to alleviate traffic congestion on highways by shifting traffic to passenger rail and to ensure the provision of effective, safe, and efficient public transportation and passenger and freight rail services in this state; (4) Develop uniform financial and operating data on and criteria for evaluating all public transportation activities in this state; (5) Compile and maintain an up-to-date inventory of all abandoned railroad corridors in this state that have been abandoned after January 1, 1970; (6) Provide training and other technical support services to transportation operators as may be appropriate to improve public transportation and passenger and freight rail services; (7) Maintain liaisons with state, local, regional, and federal agencies or other entities, private and public, having responsibilities for passenger and freight rail and public transportation programs; (8) Receive, administer, and allocate planning, operating, capital, and other grant programs from the federal transit administration, the federal railroad administration, the federal highway administration, and other agencies of the federal government for passenger and freight rail and public transportation purposes and to comply with all conditions attendant to the programs; (9) Administer all state grants for rail transportation and public transportation; (10) Promote the use of passenger and freight rail services and public transportation to improve the mobility of residents of this state and the transportation of goods; (11) Represent the state and the department on local, regional, and national agencies, industry associations, committees, task forces, and other entities, public and private, having responsibility for passenger and freight rail and public transportation; (12) Represent the state's interests in passenger and freight rail and public transportation and coordinate with the department in the planning, location, design, construction, implementation, monitoring, evaluation, purchase, and rehabilitation of facilities and services that affect or are used by passenger and freight rail or public transportation; (13) Coordinate with applicable departments and agencies on all matters dealing with rail safety inspections and rail regulations that fall within their purview; (14) Prepare and review state legislation and recommendations on federal legislation and regulations as directed by the commissioner of transportation; (15) Promote public transportation and passenger and freight rail safety; (16) Ensure the safety of rail fixed guideway transit systems within this state and carry out state safety and security oversight responsibilities for rail fixed guideway transit systems as required by the federal transit administration and federal law; and (17) Develop guidelines for the development of strategic plans for transit agencies that serve Murfreesboro, Clarksville, Chattanooga, Knoxville, Memphis, Nashville, or Davidson County.