Illinois General Assembly - Full Text of SB2861
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Full Text of SB2861  97th General Assembly




SB2861 EnrolledLRB097 13770 HEP 58328 b

1    AN ACT concerning transportation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Department of Transportation Law of the
5Civil Administrative Code of Illinois is amended by changing
6Section 2705-440 as follows:
7    (20 ILCS 2705/2705-440)  (was 20 ILCS 2705/49.25h)
8    Sec. 2705-440. Intercity Rail Service.
9    (a) For the purposes of providing intercity railroad
10passenger service within this State (or as part of service to
11cities in adjacent states), the Department is authorized to
12enter into agreements with units of local government, the
13Commuter Rail Division of the Regional Transportation
14Authority (or a public corporation on behalf of that Division),
15architecture or engineering firms, the National Railroad
16Passenger Corporation, any carrier, any adjacent state (or
17political subdivision, corporation, or agency of an adjacent
18state), or any individual, corporation, partnership, or public
19or private entity. The cost related to such services shall be
20borne in such proportion as, by agreement or contract the
21parties may desire.
22    (b) In providing any intercity railroad passenger service
23as provided in this Section, the Department shall have the



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1following additional powers:
2        (1) to enter into trackage use agreements with rail
3    carriers;
4        (2) to enter into haulage agreements with rail
5    carriers;
6        (3) to lease or otherwise contract for use,
7    maintenance, servicing, and repair of any needed
8    locomotives, rolling stock, stations, or other facilities,
9    the lease or contract having a term not to exceed 50 years
10    (but any multi-year contract shall recite that the contract
11    is subject to termination and cancellation, without any
12    penalty, acceleration payment, or other recoupment
13    mechanism, in any fiscal year for which the General
14    Assembly fails to make an adequate appropriation to cover
15    the contract obligation);
16        (4) to enter into management agreements;
17        (5) to include in any contract indemnification of
18    carriers or other parties for any liability with regard to
19    intercity railroad passenger service;
20        (6) to obtain insurance for any losses or claims with
21    respect to the service;
22        (7) to promote the use of the service;
23        (8) to make grants to any body politic and corporate,
24    any unit of local government, or the Commuter Rail Division
25    of the Regional Transportation Authority to cover all or
26    any part of any capital or operating costs of the service



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1    and to enter into agreements with respect to those grants;
2        (9) to set any fares or make other regulations with
3    respect to the service, consistent with any contracts for
4    the service; and
5        (10) to otherwise enter into any contracts necessary or
6    convenient to provide the service.
7    (c) All service provided under this Section shall be exempt
8from all regulations by the Illinois Commerce Commission (other
9than for safety matters). To the extent the service is provided
10by the Commuter Rail Division of the Regional Transportation
11Authority (or a public corporation on behalf of that Division),
12it shall be exempt from safety regulations of the Illinois
13Commerce Commission to the extent the Commuter Rail Division
14adopts its own safety regulations.
15    (d) In connection with any powers exercised under this
16Section, the Department
17        (1) shall not have the power of eminent domain; and
18        (2) shall not directly operate any railroad service
19    with its own employees.
20    (e) Any contract with the Commuter Rail Division of the
21Regional Transportation Authority (or a public corporation on
22behalf of the Division) under this Section shall provide that
23all costs in excess of revenue received by the Division
24generated from intercity rail service provided by the Division
25shall be fully borne by the Department, and no funds for
26operation of commuter rail service shall be used, directly or



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1indirectly, or for any period of time, to subsidize the
2intercity rail operation. If at any time the Division does not
3have sufficient funds available to satisfy the requirements of
4this Section, the Division shall forthwith terminate the
5operation of intercity rail service. The payments made by the
6Department to the Division for the intercity rail passenger
7service shall not be made in excess of those costs or as a
8subsidy for costs of commuter rail operations. This shall not
9prevent the contract from providing for efficient coordination
10of service and facilities to promote cost effective operations
11of both intercity rail passenger service and commuter rail
12services with cost allocations as provided in this paragraph.
13    (f) Whenever the Department is required to enter into an
14agreement with any carrier for the payment of railroad
15maintenance expenses necessary for intercity passenger
16service, the Department may deposit funds in an escrow account.
17For purposes of this subsection, an escrow account means a
18fiduciary account established with (i) any banking corporation
19which is both organized under the Illinois Banking Act and
20authorized to accept and administer trusts in this State, or
21(ii) any national banking association which has its principal
22place of business in this State and which also is authorized to
23accept and administer trusts in this State. The funds in the
24escrow account may be withdrawn by the carrier in control of
25the railroad being maintained only with the consent of the
26Department, pursuant to a written maintenance agreement and



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1pursuant to a maintenance plan that shall be updated each year.
2The moneys deposited in the escrow accounts shall be invested
3and reinvested, pursuant to the direction of the Department, in
4bonds and other interest bearing obligations of this State, or
5in such accounts, certificates, bills, obligations, shares,
6pools or other securities as are authorized for the investment
7of public funds under the Public Funds Investment Act. Escrow
8accounts created under this subsection shall not have terms
9that exceed 20 years. At the end of the term of an escrow
10account, the remaining balance shall be deposited in the State
11Treasury. The Department shall prepare a report for
12presentation to the Comptroller and the Treasurer each year
13that shows the amounts deposited and withdrawn, the purposes
14for withdrawal, the balance, and the amounts derived from
16(Source: P.A. 94-807, eff. 5-26-06.)
17    Section 99. Effective date. This Act takes effect upon
18becoming law.