The Scottish Government says the move will make railway policing more accountable but critics include trade unions and BTP officers.
Scots Make Birthday Honours List
People from across Scottish society have been recognised in this year's Queen's Birthday Honours.
Scots from all walks of life have been included in the 2014 list, with fields such as medicine, academia, the arts, the military and voluntary services represented.
Edinburgh Fringe boss Kath Mainland, jam entrepreneur Fraser Doherty and prominent historian Tom Devine are among those whose achievements are recognised this year.
Professor Devine, director of the Scottish Centre for Diaspora Studies at the University of Edinburgh, is one of two men to be knighted.
Last month it was reported that the 68-year-old is to retire after a career spanning more than four decades.
Also to be knighted is Ewan Brown, chairman of Scottish Financial Enterprise and a senior governor at the University of St Andrews. He is being honoured for services to business, public life and philanthropy.
Ms Mainland took over as chief executive of the Edinburgh Fringe Festival Society in 2009. Under her leadership the Fringe has continued to grow in size and earlier this month the festival unveiled its biggest-ever programme with more than 3,000 shows. She collects a CBE for her services to culture in Scotland.
Also collecting a CBE is David Gow, inventor of the revolutionary i-limb bionic hand.
Alistair Buchan, chief executive of Orkney Islands Council, and Alistair Dodds, chief executive of Highland Council, receive CBEs for services to local government.
Dr Francis Dunn, president of the Royal College of Physicians and Surgeons of Glasgow, and Colonel Robert Jefferies of the Royal Regiment of Scotland are similarly honoured.
A total of 22 people are recipients of OBEs.
Among them is Kathleen Donegan, governer-in-charge of Cornton Vale Prison in Stirling, Scotland's main jail for women offenders. Mrs Donegan is recognised for her services to the criminal justice system.
Also receiving an OBE is Trishna Devi Pall Singh, director of Edinburgh's Sikh Sanjog, which operates the popular social enterprise cafe Punjabi Junction. She is honoured for her services to the community.
Edinburgh entrepreneur Fraser Doherty picks up an MBE for his services to the business world.
The 24-year-old hit the headlines a decade ago when, at the age of 14, he turned a love for his grandmother's jam into a thriving business.
The SuperJam founder developed a method of producing jam 100% from fruit. His enterprise grew over the years to the stage where he now supplies major supermarkets around the world.
Other MBE recipients include Suzann Barr, who is recognised for services to vulnerable children in the Highlands.
Jan Brown and Stephen Bunyan are similarly awarded for their voluntary service in Argyll and East Lothian respectively.
This year's list also honours two senior figures from Police Scotland.
Chief superintendent Andrew Bates and Derek Penman, assistant chief constable for local policing north, are both recipients of the Queen's Police Medal.
A building at Edinburgh Napier is having cladding removed, but students aren't being evacuated from the halls of residence.
A high-end jewellery store has been robbed in a raid at the five-star Gleneagles Hotel.
A review into adverse events at a maternity unit where some babies died has called for improvements in training and better family engagement.
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