Public Act 094-0807
 		





HB5220 Enrolled
LRB094 17000 DRH 52281 b






    AN ACT concerning State government.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Department of Transportation Law of the

Civil Administrative Code of Illinois is amended  by changing 
Sections 2705-435 and 2705-440 as follows:
 



    (20 ILCS 2705/2705-435)  (was 20 ILCS 2705/49.25g-1)



    Sec. 2705-435. Loans, grants, or contracts to 
rehabilitate, improve, or
construct rail facilities; State 
Rail Freight Loan Repayment Fund.  In addition to the powers 
under Section 105-430,
the
Department shall have the power to 
enter into agreements to loan or grant
State funds to any 
railroad, unit of local government, rail user, or owner
or 
lessee of a railroad right of way to rehabilitate, improve, or 
construct
rail facilities.

    For each project proposed for funding under this Section 
the Department
shall, to the extent possible, give preference 
to cost effective projects
that facilitate continuation of 
existing rail freight service.
In the
exercise of its powers 
under this Section, the Department shall coordinate
its program 
with the industrial retention and attraction programs of the

Department of Commerce and Economic Opportunity
Community 
Affairs.  No funds provided under this
Section shall be expended 
for the acquisition of a right of way or rolling
stock or for 
operating subsidies.  The costs of a project funded under this

Section shall be apportioned in accordance with the agreement 
of the
parties for the project.  Projects are eligible for a 
loan or grant under
this Section only when the Department 
determines that the transportation,
economic, and public 
benefits associated with a project are
greater than the capital 
costs of that project incurred by all parties to
the agreement 
and that the project would not have occurred without
its

participation.  In addition, a project to be eligible for 
assistance under
this Section must be included in a State plan 
for rail transportation and
local rail service prepared by the 
Department.  The Department may also
expend State funds for 
professional engineering services to conduct
feasibility 
studies of projects proposed for funding under this Section, to

estimate the costs and material requirements for those 
projects,
to provide
for the design of those projects, 
including plans and
specifications, and to
conduct 
investigations to ensure compliance with the project 
agreements.

    The Department, acting through the Department of Central 
Management
Services, shall also have the power to let contracts 
for the
purchase of railroad materials and supplies.  The 
Department shall also
have the power to let contracts for the 
rehabilitation,
improvement, or construction of rail 
facilities.  Any such contract shall
be let, after due public 
advertisement, to the lowest responsible bidder or
bidders, 
upon terms and conditions to be fixed by the Department.  With

regard to rehabilitation, improvement, or construction 
contracts, the
Department shall also require the successful 
bidder or bidders to furnish
good and sufficient bonds to 
ensure proper and prompt completion of the
work in accordance 
with the provisions of the contracts.

    In the case of an agreement under which State funds are 
loaned under this
Section, the agreement shall provide the 
terms and conditions of repayment.
 The agreement shall provide 
for the security that the
Department shall
determine to protect 
the State's interest.  The funds may be loaned with or
without 
interest.  Loaned funds that are repaid to the Department
shall 
be
deposited in a special fund in the State treasury to be 
known as the State
Rail Freight Loan Repayment Fund.  In the 
case of repaid funds deposited
in the State Rail Freight Loan

Repayment Fund, the Department shall, subject to 
appropriation, have
the
reuse of those funds and the interest 
accrued thereon, which shall also be
deposited by the State 
Treasurer in the Fund, as the State share
in other
eligible 
projects under this Section. However, no expenditures from
the 
State Rail Freight Loan Repayment Fund for those projects
shall 
at any
time exceed the total sum of funds repaid and deposited 
in the State Rail
Freight Loan Repayment Fund and interest 
earned by investment by the State
Treasurer which the State 
Treasurer shall have deposited in that Fund.

    For the purposes of promoting efficient rail freight 
service, the
Department may also provide technical assistance 
to railroads, units of
local government or rail users, or 
owners or lessees of railroad rights-of-way.

    The Department shall take whatever actions are necessary or 
appropriate
to protect the State's interest in the event of 
bankruptcy, default,
foreclosure, or noncompliance with the 
terms and conditions of financial
assistance or participation 
provided hereunder, including the power to
sell, dispose, 
lease, or rent, upon terms and conditions determined by the

Secretary to be appropriate, real or personal property that the

Department
may receive as a result thereof.

    The Department is authorized to make reasonable rules and 
regulations
consistent with law necessary to carry out the 
provisions of this Section.

(Source: P.A. 91-239, eff. 1-1-00; revised 12-6-03.)

 



    (20 ILCS 2705/2705-440)  (was 20 ILCS 2705/49.25h)



    Sec. 2705-440. Intercity Rail Service. 

    (a) For the
purposes of providing intercity railroad 
passenger service within this State
(or as part of service to 
cities in
adjacent
states), the Department is authorized to 
enter
into agreements with units of local government, the 
Commuter Rail Division of
the Regional Transportation 
Authority (or a public corporation on behalf of
that Division),
 
architecture or
engineering firms,
the National Railroad 
Passenger Corporation, any carrier, any adjacent state
(or 
political subdivision,
corporation, or agency of an adjacent 
state), or any individual, corporation,
partnership, or public 
or private entity.  The
cost related to such services shall
be 
borne in such proportion as, by agreement or contract the

parties may desire.

    (b) In providing any intercity railroad passenger service 
as provided in
this Section, the Department shall have the 
following additional powers:


        (1) to enter into trackage use agreements with rail 
    carriers;


        (2) to enter into haulage agreements with rail 
    carriers;


        (3) to lease or otherwise contract for use, 
    maintenance, servicing, and
repair of any needed 
    locomotives, rolling stock, stations, or other
facilities, 
    the lease or contract having a term not to exceed 50
7

    years
(but
any
multi-year contract shall recite that the 
    contract is subject to termination
and
cancellation, 
    without any penalty, acceleration payment, or other 
    recoupment
mechanism, in any fiscal year for which the 
    General Assembly fails to make an
adequate appropriation to 
    cover the contract obligation);


        (4) to enter into management agreements;


        (5) to include in any contract indemnification of 
    carriers or other
parties for any liability with regard to 
    intercity railroad passenger
service;


        (6) to obtain insurance for any losses or claims
with 
    respect to the service;


        (7) to promote the use of the service;


        (8) to make grants to any body politic and corporate, 
    any unit of local
government, or the Commuter Rail Division 
    of the Regional Transportation
Authority to cover all or 
    any part of any capital or operating costs of
the service 
    and to enter into agreements with respect to those grants;


        (9) to set any fares or make other regulations with 
    respect to the
 service,
consistent with any contracts for 
    the service; and


        (10) to otherwise enter into any contracts necessary or 
    convenient to
provide the service.

    (c) All service provided under this Section shall be exempt 
from all
regulations by the Illinois Commerce Commission (other 
than for safety
matters).
To the extent the service is provided 
by the Commuter Rail Division of the
Regional Transportation 
Authority (or a public corporation on behalf of that
Division), 
it shall be exempt
from safety regulations of the Illinois 
Commerce Commission to the extent the
Commuter Rail Division 
adopts its own safety regulations.

    (d) In connection with any powers exercised under this 
Section, the
Department:


        (1) shall not have the power of eminent domain; and


        (2) shall not itself become the owner of railroad 
    locomotives or other
rolling stock,
or
directly operate any 
    railroad service with its own employees.

    (e) Any  contract with the Commuter Rail Division of the 
Regional
Transportation Authority (or a public corporation on 
behalf of the Division)
under this Section shall provide that 
all costs in excess of revenue received
by the Division 
generated from intercity rail service provided by the Division

shall be fully borne by the Department, and no funds for 
operation of commuter
rail service shall be used, directly or 
indirectly, or for any period of time,
to subsidize the 
intercity rail operation.  If at any time the Division does
not 
have sufficient funds available to satisfy the requirements of 
this
Section, the Division shall forthwith terminate the 
operation of intercity rail
service.  The payments made by the 
Department to the Division for the intercity
rail passenger 
service shall not be made in excess of those costs or as a

subsidy for costs of commuter rail operations.  This shall not 
prevent the
contract from providing for efficient coordination 
of service and facilities to
promote cost effective operations 
of both intercity rail passenger service and
commuter rail 
services with cost allocations as provided in this paragraph.

(Source: P.A. 91-239, eff. 1-1-00.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.