Bill Text: IL SB3677 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Department of Transportation Law of the Civil Administrative Code of Illinois. Provides that whenever the Department of Transportation enters into an agreement with any state or state agency, any public or private entity or quasi-public entity for the lease, rental, or use of locomotives, passenger railcars, and other rolling stock equipment or accessions, the Department may deposit such receipts into a separate escrow account. Allows funds in an escrow account holding lease payments, use fees, or rental payments to be withdrawn by the Department with the consent of the Midwest Fleet Pool Board, and deposited into the High-Speed Rolling Stock Fund. Provides that at the end of the term of an escrow account holding lease payments, use fees, or rental payments, the remaining balance shall be deposited in the High-Speed Rail Rolling Stock Fund. Provides that whenever the Department enters into an agreement with any carrier, state or state agency, any public or private entity, or quasi-public entity for costs related to procurement and maintenance of locomotives, passenger railcars, and other rolling stock equipment or accessions, the Department shall deposit such receipts into the High-Speed Rolling Stock Fund. Provides that the Department may make transfers or payments into the High-Speed Rail Rolling Stock Fund for the State's share of the costs related to locomotives, passenger railcars, and other rolling stock equipment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB3677 Detail]

Download: Illinois-2023-SB3677-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3677 Introduced 2/9/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
20 ILCS 2705/2705-440 was 20 ILCS 2705/49.25h
Amends the Department of Transportation Law of the Civil Administrative Code of Illinois. Provides that whenever the Department of Transportation enters into an agreement with any State or State agency, any public or private entity or quasi-public entity for the lease, rental, or use of locomotives, passenger railcars, and other rolling stock equipment or accessions, the Department may deposit such receipts into a separate escrow account. Allows funds in an escrow account holding lease payments, use fees, or rental payments to be withdrawn by the Department with the consent of the Midwest Fleet Pool Board, and deposited into the High-Speed Rolling Stock Fund. Provides that at the end of the term of an escrow account holding lease payments, use fees, or rental payments, the remaining balance shall be deposited in the High-Speed Rail Rolling Stock Fund. Provides that whenever the Department enters into an agreement with any carrier, state or state agency, any public or private entity, or quasi-public entity for costs related to procurement and maintenance of locomotives, passenger railcars, and other rolling stock equipment or accessions, the Department shall deposit such receipts into the High-Speed Rolling Stock Fund. Provides that the Department may make transfers or payments into the High-Speed Rail Rolling Stock Fund for the State's share of the costs related to locomotives, passenger railcars, and other rolling stock equipment.
LRB103 37579 MXP 67705 b
A BILL FOR
SB3677 LRB103 37579 MXP 67705 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, 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, 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:

SB3677 - 2 - LRB103 37579 MXP 67705 b
(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
respect to the service;
(7) to promote the use of the service;

SB3677 - 3 - LRB103 37579 MXP 67705 b
(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.
(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

SB3677 - 4 - LRB103 37579 MXP 67705 b
(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 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 expenses
necessary for intercity passenger service or for the lease or

SB3677 - 5 - LRB103 37579 MXP 67705 b
use of locomotives, passenger railcars, and other rolling
stock equipment or accessions, the Department may deposit such
required maintenance funds into an , use fees, or rental
payments into any escrow account. Whenever the Department
enters into an agreement with any State or State agency, any
public or private entity or quasi-public entity for the lease,
rental or use of locomotives, passenger railcars, and other
rolling stock equipment or accessions, the Department may
deposit such receipts into a separate escrow account. For
purposes of this subsection, an escrow account means any
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 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. The funds Funds in an escrow
account holding lease payments, use fees, or rental payments
may be withdrawn by the Department, only with the consent of
the Midwest Fleet Pool Board and deposited into the High-Speed
Rolling Stock Fund. to be used or expended on acquisition,
offsets, overhaul fees, or costs of locomotives, railcars,

SB3677 - 6 - LRB103 37579 MXP 67705 b
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 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 holding lease payments, use fees, or rental payments,
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.
(g) Whenever the Department enters into an agreement with
any carrier, State or State agency, any public or private
entity, or quasi-public entity for costs related to
procurement and maintenance of locomotives, passenger

SB3677 - 7 - LRB103 37579 MXP 67705 b