Bill Text: IL SB3107 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Amends the Department of Transportation Law of the Civil Administrative Code of Illinois. Provides that the Department of Transportation is authorized to enter into agreements with any state, state agency, or unit of local government or political subdivision (along with other entities). Provides that the Department has the power to freely lease or otherwise contract for any purpose any of the intercity rail service locomotives, passenger railcars, and other rolling stock equipment or accessions to any state or state agency, public or private entity, or quasi-public entity. Provides that the Department has the power to otherwise enter any contracts or agreements necessary or convenient to operate or maintain locomotives, passenger railcars, and other rolling stock equipment or accessions. Provides that when the Department enters into an agreement for either the payment of railroad requirement maintenance expenses necessary for intercity passenger service or for the lease or use of locomotives, passenger railcars, and other rolling stock equipment or accessions, the Department may deposit funds, use fees, or rental payments into any escrow account. Provides that funds in an escrow account holding lease, use fees, or rental payments may be withdrawn by the Department to be used for various purposes. Creates the High-Speed Rail Rolling Stock Fund to deposit the remaining balance of an escrow account at the end of the account's term. Provides that the High-Speed Rail Rolling Stock Fund may be used for any purpose related to locomotives, passenger railcars, and other rolling stock equipment. Makes a corresponding change in the State Finance Act. Makes other changes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB3107 Detail]

Download: Illinois-2017-SB3107-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3107 Introduced 2/15/2018, by Sen. Karen McConnaughay SYNOPSIS AS INTRODUCED:
20 ILCS 2705/2705-440 was 20 ILCS 2705/49.25h
30 ILCS 105/5.886 new
Amends the Department of Transportation Law of the Civil Administrative Code of Illinois. Provides that the Department of Transportation is authorized to enter into agreements with any state, state agency, or units of local government or political subdivisions (along with other entities). Provides that the Department shall have the power to freely lease or otherwise contract for any purpose any of the locomotives, passenger railcars, and other rolling stock equipment or accessions to any state or state agency, public or private entity, or quasi-public entity. Provides that the Department shall have the power to otherwise enter any contracts or agreements necessary or convenient to provide rail services, operate or maintain locomotives, passenger railcars, and other rolling stock equipment or accessions. Provides that when the Department enters into an agreement for either the payment of railroad requirement maintenance expenses necessary for intercity passenger service or for the lease or use of locomotives, passenger railcars, and other rolling stock equipment or accessions, the Department may deposit funds, use fees, or rental payments into any escrow account. Provides that the funds in any required maintenance escrow account may be withdrawn by the carrier or entity in control of the railroad being maintained. Provides that funds in an escrow account holding lease, use fees, or rental payments may be withdrawn by the Department to be used for various purposes. Creates the High-Speed Rail Rolling Stock Fund to deposit the remaining balance of an escrow account at the end of the account's term. Provides that the High-Speed Rail Rolling Stock Fund may be used for any purpose related to locomotives, passenger railcars, and other rolling stock equipment. Makes a corresponding change in the State Finance Act.
LRB100 17760 LNS 32937 b
A BILL FOR
SB3107 LRB100 17760 LNS 32937 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
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 and throughout the United
States (or as part of service to cities in adjacent states),
the Department is authorized to enter into agreements with any
state, state agency, units of local government or political
subdivisions, 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

SB3107 - 2 - LRB100 17760 LNS 32937 b
as provided in this Section, the Department shall have the
following additional powers:
(1) to enter into trackage use agreements with rail
carriers;
(1.5) to freely lease or otherwise contract for any
purpose any of the locomotives, passenger railcars, and
other rolling stock equipment or accessions to any state or
state agency, public or private entity, or quasi-public
entities;
(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

SB3107 - 3 - LRB100 17760 LNS 32937 b
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 rail services, operate or maintain
locomotives, passenger railcars, and other rolling stock
equipment or accessions, including the lease or use of such
locomotives, railcars, equipment, or accessions 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

SB3107 - 4 - LRB100 17760 LNS 32937 b
(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 enters is required to enter
into an agreement with any carrier, state or state agency, any
public or private entity, or quasi-public entity for either
the Department's payment of such railroad required maintenance

SB3107 - 5 - LRB100 17760 LNS 32937 b
expenses necessary for intercity passenger service or for the
lease or use of locomotives, passenger railcars, and other
rolling stock equipment or accessions, the Department may
deposit such required maintenance funds, use fees, or rental
payments into any in an escrow account. For purposes of this
subsection, an escrow account means any 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 any required
maintenance the escrow account may be withdrawn by the carrier
or entity 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. Funds in an escrow account holding
lease, use fees, or rental payments may be withdrawn by the
Department to be used or expended on acquisition, offsets,
overhaul fees, or costs of locomotives, railcars, equipment or
accessions, including any future equipment purchase, expenses,
fees, or costs, or any other purpose permitted or required by
the escrow agreement or any other agreement regarding
disbursement of funds. The moneys deposited in the escrow
accounts shall be invested and reinvested, pursuant to the
direction of the Department, in bonds and other interest

SB3107 - 6 - LRB100 17760 LNS 32937 b
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 High-Speed Rail
Rolling Stock Fund, a special fund that is created in the State
Treasury. Moneys in the High-Speed Rail Rolling Stock Fund may
be used for any purpose related to locomotives, passenger
railcars, and other rolling stock equipment. 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. 97-1080, eff. 8-24-12.)
Section 10. The State Finance Act is amended by adding
Section 5.886 as follows:
(30 ILCS 105/5.886 new)
Sec. 5.886. The High-Speed Rail Rolling Stock Fund.