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
    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
        (2) to enter into haulage agreements with rail
        (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.

Effective Date: 5/26/2006