Illinois General Assembly - Illinois Compiled Statutes

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20 ILCS 2705/2705-435

(20 ILCS 2705/2705-435) (was 20 ILCS 2705/49.25g-1)

Sec. 2705-435.

Loans, grants, or contracts to rehabilitate, improve, or
construct rail facilities; State Rail Freight Loan Repayment Fund.  In addition to the powers under Section 105-430,
the
Department shall have the power to enter into agreements to loan or grant
State funds to any railroad, unit of local government, rail user, or owner
or lessee of a railroad right of way to rehabilitate, improve, or construct
rail facilities.

For each project proposed for funding under this Section the Department
shall, to the extent possible, give preference to cost effective projects
that facilitate continuation of existing rail freight service.
In the
exercise of its powers under this Section, the Department shall coordinate
its program with the industrial retention and attraction programs of the
Department of Commerce and Economic Opportunity.  No funds provided under this
Section shall be expended for the acquisition of a right of way or for operating subsidies.  The costs of a project funded under this
Section shall be apportioned in accordance with the agreement of the
parties for the project.  Projects are eligible for a loan or grant under
this Section only when the Department determines that the transportation,
economic, and public benefits associated with a project are
greater than the capital costs of that project incurred by all parties to
the agreement and that the project would not have occurred without
its
participation.  In addition, a project to be eligible for assistance under
this Section must be included in a State plan for rail transportation and
local rail service prepared by the Department.  The Department may also
expend State funds for professional engineering services to conduct
feasibility studies of projects proposed for funding under this Section, to
estimate the costs and material requirements for those projects,
to provide
for the design of those projects, including plans and
specifications, and to
conduct investigations to ensure compliance with the project agreements.

The Department, acting through the Department of Central Management
Services, shall also have the power to let contracts for the
purchase of railroad materials and supplies.  The Department shall also
have the power to let contracts for the rehabilitation,
improvement, or construction of rail facilities.  Any such contract shall
be let, after due public advertisement, to the lowest responsible bidder or
bidders, upon terms and conditions to be fixed by the Department.  With
regard to rehabilitation, improvement, or construction contracts, the
Department shall also require the successful bidder or bidders to furnish
good and sufficient bonds to ensure proper and prompt completion of the
work in accordance with the provisions of the contracts.

In the case of an agreement under which State funds are loaned under this
Section, the agreement shall provide the terms and conditions of repayment.
 The agreement shall provide for the security that the
Department shall
determine to protect the State's interest.  The funds may be loaned with or
without interest.  Loaned funds that are repaid to the Department
shall be
deposited in a special fund in the State treasury to be known as the State
Rail Freight Loan Repayment Fund.  In the case of repaid funds deposited
in the State Rail Freight Loan
Repayment Fund, the Department shall, subject to appropriation, have
the
reuse of those funds and the interest accrued thereon, which shall also be
deposited by the State Treasurer in the Fund, as the State share
in other
eligible projects under this Section. However, no expenditures from
the State Rail Freight Loan Repayment Fund for those projects
shall at any
time exceed the total sum of funds repaid and deposited in the State Rail
Freight Loan Repayment Fund and interest earned by investment by the State
Treasurer which the State Treasurer shall have deposited in that Fund.

For the purposes of promoting efficient rail freight service, the
Department may also provide technical assistance to railroads, units of
local government or rail users, or owners or lessees of railroad rights-of-way.

The Department shall take whatever actions are necessary or appropriate
to protect the State's interest in the event of bankruptcy, default,
foreclosure, or noncompliance with the terms and conditions of financial
assistance or participation provided hereunder, including the power to
sell, dispose, lease, or rent, upon terms and conditions determined by the
Secretary to be appropriate, real or personal property that the
Department
may receive as a result thereof.

The Department is authorized to make reasonable rules and regulations
consistent with law necessary to carry out the provisions of this Section.

(Source: P.A. 94-793, eff. 5-19-06; 94-807, eff. 5-26-06.)