Public Act 097-1080
 
SB2861 EnrolledLRB097 13770 HEP 58328 b


  
    AN ACT concerning transportation.
  
 
    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 
Section 2705-440 as follows:
 



    (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

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
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.

    (f) Whenever the Department is required to enter into an 
agreement with any carrier for the payment of railroad 
maintenance expenses necessary for intercity passenger 
service, the Department may deposit funds in an escrow account. 
For purposes of this subsection, an escrow account means a 
fiduciary account established with (i) any banking corporation 
which is both organized under the Illinois Banking Act and 
authorized to accept and administer trusts in this State, or 
(ii) any national banking association which has its principal 
place of business in this State and which also is authorized to 
accept and administer trusts in this State. The funds in the 
escrow account may be withdrawn by the carrier in control of 
the railroad being maintained only with the consent of the 
Department, pursuant to a written maintenance agreement and 
pursuant to a maintenance plan that shall be updated each year. 
The moneys deposited in the escrow accounts shall be invested 
and reinvested, pursuant to the direction of the Department, in 
bonds and other interest bearing obligations of this State, or 
in such accounts, certificates, bills, obligations, shares, 
pools or other securities as are authorized for the investment 
of public funds under the Public Funds Investment Act. Escrow 
accounts created under this subsection shall not have terms 
that exceed 20 years. At the end of the term of an escrow 
account, the remaining balance shall be deposited in the State 
Treasury. The Department shall prepare a report for 
presentation to the Comptroller and the Treasurer each year 
that shows the amounts deposited and withdrawn, the purposes 
for withdrawal, the balance, and the amounts derived from 
investment. 
(Source: P.A. 94-807, eff. 5-26-06.)

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