Bill Text: IL SB2861 | 2011-2012 | 97th General Assembly | Chaptered
Bill Title: Amends the Department of Transportation Law of the Civil Administrative Code of Illinois. Provides that whenever the Department of Transportation 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. Defines "escrow account". Contains provisions governing the use and withdrawal of escrow account funds, fund term limits, and reporting requirements. Effective immediately.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2012-08-24 - Public Act . . . . . . . . . 97-1080 [SB2861 Detail]
Download: Illinois-2011-SB2861-Chaptered.html
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| Public Act 097-1080 | ||||
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AN ACT concerning transportation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Department of Transportation Law of the
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Civil Administrative Code of Illinois is amended by changing | ||||
Section 2705-440 as follows:
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(20 ILCS 2705/2705-440) (was 20 ILCS 2705/49.25h)
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Sec. 2705-440. Intercity Rail Service.
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(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),
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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
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parties may desire.
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(b) In providing any intercity railroad passenger service | ||||
as provided in
this Section, the Department shall have the | ||||
following additional powers:
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(1) to enter into trackage use agreements with rail | ||
carriers;
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(2) to enter into haulage agreements with rail | ||
carriers;
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(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
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(but
any
multi-year contract shall recite that the contract | ||
is subject to termination
and
cancellation, without any | ||
penalty, acceleration payment, or other recoupment
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mechanism, in any fiscal year for which the General | ||
Assembly fails to make an
adequate appropriation to cover | ||
the contract obligation);
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(4) to enter into management agreements;
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(5) to include in any contract indemnification of | ||
carriers or other
parties for any liability with regard to | ||
intercity railroad passenger
service;
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(6) to obtain insurance for any losses or claims
with | ||
respect to the service;
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(7) to promote the use of the service;
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(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;
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(9) to set any fares or make other regulations with | ||
respect to the
service,
consistent with any contracts for | ||
the service; and
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(10) to otherwise enter into any contracts necessary or | ||
convenient to
provide the service.
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(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.
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(d) In connection with any powers exercised under this | ||
Section, the
Department
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(1) shall not have the power of eminent domain; and
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(2) shall not
directly operate any railroad service | ||
with its own employees.
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(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
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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
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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.
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(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.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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