20 ILCS 2705/2705-435
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 2705/ - Civil Administrative Code of Illinois. (Department of Transportation Law)|Article 2705 - Department Of Transportation

 (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.)