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 Allows funds in an escrow account holding lease payments, use fees, or rental payments to be withdrawn by the Department with the consent of the Midwest Fleet Pool Board, and deposited into the High-Speed Rolling Stock Fund.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 Allows funds in an escrow account holding lease payments, use fees, or rental payments to be withdrawn by the Department with the consent of the Midwest Fleet Pool Board, and deposited into the High-Speed Rolling Stock Fund.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.
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A BILL FOR

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1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Department of Transportation Law of the
5Civil Administrative Code of Illinois is amended by changing
6Section 2705-440 as follows:
7 (20 ILCS 2705/2705-440) (was 20 ILCS 2705/49.25h)
8 Sec. 2705-440. Intercity Rail Service.
9 (a) For the purposes of providing intercity railroad
10passenger service within this State and throughout the United
11States, the Department is authorized to enter into agreements
12with any state, state agency, units of local government or
13political subdivisions, the Commuter Rail Division of the
14Regional Transportation Authority (or a public corporation on
15behalf of that Division), architecture or engineering firms,
16the National Railroad Passenger Corporation, any carrier, or
17any individual, corporation, partnership, or public or private
18entity. The cost related to such services shall be borne in
19such proportion as, by agreement or contract the parties may
20desire.
21 (b) In providing any intercity railroad passenger service
22as provided in this Section, the Department shall have the
23following additional powers:

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1 (1) to enter into trackage use agreements with rail
2 carriers;
3 (1.5) to freely lease or otherwise contract for any
4 purpose any of the locomotives, passenger railcars, and
5 other rolling stock equipment or accessions to any state
6 or state agency, public or private entity, or quasi-public
7 entities;
8 (2) to enter into haulage agreements with rail
9 carriers;
10 (3) to lease or otherwise contract for use,
11 maintenance, servicing, and repair of any needed
12 locomotives, rolling stock, stations, or other facilities,
13 the lease or contract having a term not to exceed 50 years
14 (but any multi-year contract shall recite that the
15 contract is subject to termination and cancellation,
16 without any penalty, acceleration payment, or other
17 recoupment mechanism, in any fiscal year for which the
18 General Assembly fails to make an adequate appropriation
19 to cover the contract obligation);
20 (4) to enter into management agreements;
21 (5) to include in any contract indemnification of
22 carriers or other parties for any liability with regard to
23 intercity railroad passenger service;
24 (6) to obtain insurance for any losses or claims with
25 respect to the service;
26 (7) to promote the use of the service;

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1 (8) to make grants to any body politic and corporate,
2 any unit of local government, or the Commuter Rail
3 Division of the Regional Transportation Authority to cover
4 all or any part of any capital or operating costs of the
5 service and to enter into agreements with respect to those
6 grants;
7 (9) to set any fares or make other regulations with
8 respect to the service, consistent with any contracts for
9 the service; and
10 (10) to otherwise enter into any contracts necessary
11 or convenient to provide rail services, operate or
12 maintain locomotives, passenger railcars, and other
13 rolling stock equipment or accessions, including the lease
14 or use of such locomotives, railcars, equipment, or
15 accessions.
16 (c) All service provided under this Section shall be
17exempt from all regulations by the Illinois Commerce
18Commission (other than for safety matters). To the extent the
19service is provided by the Commuter Rail Division of the
20Regional Transportation Authority (or a public corporation on
21behalf of that Division), it shall be exempt from safety
22regulations of the Illinois Commerce Commission to the extent
23the Commuter Rail Division adopts its own safety regulations.
24 (d) In connection with any powers exercised under this
25Section, the Department
26 (1) shall not have the power of eminent domain; and

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1 (2) shall not directly operate any railroad service
2 with its own employees.
3 (e) Any contract with the Commuter Rail Division of the
4Regional Transportation Authority (or a public corporation on
5behalf of the Division) under this Section shall provide that
6all costs in excess of revenue received by the Division
7generated from intercity rail service provided by the Division
8shall be fully borne by the Department, and no funds for
9operation of commuter rail service shall be used, directly or
10indirectly, or for any period of time, to subsidize the
11intercity rail operation. If at any time the Division does not
12have sufficient funds available to satisfy the requirements of
13this Section, the Division shall forthwith terminate the
14operation of intercity rail service. The payments made by the
15Department to the Division for the intercity rail passenger
16service shall not be made in excess of those costs or as a
17subsidy for costs of commuter rail operations. This shall not
18prevent the contract from providing for efficient coordination
19of service and facilities to promote cost effective operations
20of both intercity rail passenger service and commuter rail
21services with cost allocations as provided in this paragraph.
22 (f) Whenever the Department enters into an agreement with
23any carrier, state or state agency, any public or private
24entity, or quasi-public entity for either the Department's
25payment of such railroad required maintenance expenses
26necessary for intercity passenger service or for the lease or

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1use of locomotives, passenger railcars, and other rolling
2stock equipment or accessions, the Department may deposit such
3required maintenance funds into an , use fees, or rental
4payments into any escrow account. Whenever the Department
5enters into an agreement with any State or State agency, any
6public or private entity or quasi-public entity for the lease,
7rental or use of locomotives, passenger railcars, and other
8rolling stock equipment or accessions, the Department may
9deposit such receipts into a separate escrow account. For
10purposes of this subsection, an escrow account means any
11fiduciary account established with (i) any banking corporation
12which is both organized under the Illinois Banking Act and
13authorized to accept and administer trusts in this State, or
14(ii) any national banking association which has its principal
15place of business in this State and which also is authorized to
16accept and administer trusts in this State. The funds in any
17required maintenance escrow account may be withdrawn by the
18carrier or entity in control of the railroad being maintained,
19only with the consent of the Department, pursuant to a written
20maintenance agreement and pursuant to a maintenance plan that
21shall be updated each year. The funds Funds in an escrow
22account holding lease payments, use fees, or rental payments
23may be withdrawn by the Department, only with the consent of
24the Midwest Fleet Pool Board and deposited into the High-Speed
25Rolling Stock Fund. to be used or expended on acquisition,
26offsets, overhaul fees, or costs of locomotives, railcars,

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1equipment or accessions, including any future equipment
2purchase, expenses, fees, or costs, or any other purpose
3permitted or required by the escrow agreement or any other
4agreement regarding disbursement of funds. The moneys
5deposited in the escrow accounts shall be invested and
6reinvested, pursuant to the direction of the Department, in
7bonds and other interest bearing obligations of this State, or
8in such accounts, certificates, bills, obligations, shares,
9pools or other securities as are authorized for the investment
10of public funds under the Public Funds Investment Act. Escrow
11accounts created under this subsection shall not have terms
12that exceed 20 years. At the end of the term of an escrow
13account holding lease payments, use fees, or rental payments,
14the remaining balance shall be deposited in the High-Speed
15Rail Rolling Stock Fund, a special fund that is created in the
16State Treasury. Moneys in the High-Speed Rail Rolling Stock
17Fund may be used for any purpose related to locomotives,
18passenger railcars, and other rolling stock equipment. The
19Department shall prepare a report for presentation to the
20Comptroller and the Treasurer each year that shows the amounts
21deposited and withdrawn, the purposes for withdrawal, the
22balance, and the amounts derived from investment.
23 (g) Whenever the Department enters into an agreement with
24any carrier, State or State agency, any public or private
25entity, or quasi-public entity for costs related to
26procurement and maintenance of locomotives, passenger

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