It has always been the responsibility of the Illinois Railroad Association to monitor developments in the Illinois General Assembly and various state agencies like the Illinois Department of Transportation and the Illinois Commerce Commission. We take that responsibility very seriously.

With more than 7,000 miles of track, more than 9,000 railroad crossings and nearly 19,000 employees, Illinois ranks at the top in nearly every category among all the states.

Since we are such a high-profile industry, state legislation and government regulations can have a profound impact on railroad operations.

Here are some examples of how the Illinois Railroad Association effectively represents the railroad industry’s interests in Illinois.

Rolling Stock Sales Tax Exemption
During the 2003 legislative session, with state government facing a huge budget deficit, legislation was introduced that would have eliminated the railroads’ rolling stock sales tax exemption. Truckers were also targeted.

Elimination of the rolling stock exemption would have had a profound impact on not only the railroad industry, but on the State of Illinois as well. Every state bordering Illinois maintains the rolling stock exemption. Where possible, railroads would have shifted operations to those states causing the State of Illinois to lose revenue.

Working with a coalition of other industries that would have been negatively impacted, we were able to defeat the proposal by showing legislators that such a law would have been counterproductive to all concerned.

State Motor Fuel Tax
In 2004, the railroad industry was once again targeted by legislation that would have required railroads to pay the state motor fuel tax whenever motor fuels are purchased in Illinois. If enacted, it would have cost the railroad industry more than $80 million per year.

Traditionally, this tax is assessed against vehicles using Illinois roads as a way to maintain and repair the damage they cause. No state in the nation assesses a motor fuel tax on off-road vehicles. Illinois would have been the first.

The Illinois Railroad Association formed a coalition with other industries including the airlines, the coal industry, the construction industry and the aggregate producers. All of these industries employ off-road vehicles and would have been negatively impacted by this proposal.

After speaking to nearly every member of the General Assembly and numerous editorial boards, we were able to convince enough people that this was not only a bad idea, it was unfair. The proposal was defeated.

Creation of the Grade Crossing Protection Fund
In the 1950s, the Illinois Railroad Association advanced a radical concept that would require government to assume a share of the cost of installing rail/highway grade crossing automatic warning devices and other safety improvements at rail crossings on local roads. The bill establishing the Fund initially provided for a transfer of $25,000 per month from state motor fuel tax receipts to the Fund. The Illinois Department of Transportation has control of the Fund, but allocation of the money in the Fund resides exclusively with the Illinois Commerce Commission.

Over the years, the Association has been successful in increasing the amount of money each month allocated to the Fund. Today, the Illinois Grade Crossing Protection Fund is funded at the rate of $27 million per year. The money is used for grade separations, installation of warning devices, construction and reconstruction of grade crossings, and the improvement of approaches to crossings. Each year, $6 million from the Fund is earmarked for grade separations.

Grade Crossing Signals – “Adequate and Appropriate”
The statute that gives the Illinois Commerce Commission exclusive jurisdiction over public grade crossings was amended by the Illinois Railroad Association to provide that any automatic warning device installed at a public crossing approved by the Commission, “shall be deemed adequate and appropriate.” This language was designed to negate the effect of certain Illinois Appellate and Supreme Court decisions that found the railroad negligent for failure to add additional automatic warning devices to crossings already equipped with flashing light signals. This amendment has been of great benefit to the railroads because the adequacy of existing automatic warning devices can no longer be an issue for consideration by a jury.

Crossbuck Defined as a Yield Sign
In 1996, the Illinois Railroad Association amended the Illinois statute which defines “yield signs” to include “crossbucks". As a result, if a driver is involved in a collision at a railroad crossing or interferes with the movement of a train after driving past the railroad crossbuck sign, the collision or interference is prima facie evidence of the driver’s failure to yield right-of-way.

Punitive Damages – Violations of an Illinois Commerce Commission Rule or Regulation
Prior to 1986, a public utility found to have violated an Illinois Commerce Commission regulation could, by statute, be subject to an award of punitive damages. Under this statute, the definition of a “public utility” included “railroads.”

In 1986, the Illinois Railroad Association passed legislation that eliminated the language defining a “railroad” as a public utility and defined a “rail carrier” as a “carrier.” These statutory amendments eliminated the statutory authority for a jury to award punitive damages for violation of a Commission regulation. The amendments were particularly helpful in light of the Commission regulation that required railroads to keep their rights-of-way reasonably clear of brush, shrubbery, trees, etc., for a distance of 500 feet.

Bell and Whistle Crossing Statute
In 1993, the Illinois Railroad Association proposed legislation that gave the Illinois Commerce Commission the authority to excuse a rail carrier from sounding the horn at railroad crossings where the Commission has determined, “the public is reasonably and sufficiently protected”.

Temporary Stop Signs
In an effort to improve safety at railroad crossings, the Illinois Railroad Association passed legislation that requires the Illinois Commerce Commission to order the installation of temporary stop signs at grade crossings awaiting the installation of automatic flashing lights and gates. The railroad will be responsible for the costs of installing the stop signs. Once the lights and gates are installed, the stop signs must be removed.

Increase in Motorist Fine for Violating Crossing Laws
The fine imposed on a motorist found to be in violation of this statute which required a motorist to stop within 50 feet but not less than 15 feet from the nearest rail under certain defined conditions was increased to $500 or 50 hours of community service. The penalty part of the statute was later amended to provide a mandatory fine of $250 for a first conviction and all subsequent convictions shall carry a mandatory fine of $500.

Allocation of Costs for Grade Crossing Improvements and Bridge Construction or Reconstruction Projects - “Benefits Accruing to the Parties”
Prior to the enactment of this amendment there were no legislative directives to the Illinois Commerce Commission regarding the apportionment of costs in connection with the construction or reconstruction of grade separations and grade crossing improvements. The Illinois Railroad Association offered legislation requiring the Commission to consider, “benefits, if any, accruing to the rail carrier or any party in interest.” This amendment now allows the railroad to assert that no costs should be apportioned to the railroad in a grade separation project initiated by a government agency solely for the benefit of the traveling public or for grade crossing improvements.

Vertical Clearance over Rail
The Illinois Railroad Association offered legislation that would create a standard for a 23-foot clearance between an overhead bridge and the top of rail.
Prior to adoption of this amendment the Illinois Commerce Commission’s rules provided for a clearance of 21 feet, 6 inches. This was not a sufficient clearance for double stack rail cars. The Commission was reluctant to change the rule and the Illinois Department of Transportation had in certain bridge reconstruction projects, unfairly and without good reason, refused to agree to a 23-foot clearance. This amendment clearly establishes a standard of 23 feet for a vertical clearance over the top of rail.

Eliminate Public Hearings in Certain Grade Crossing Closure Cases
In order to streamline the Commission process the Illinois Railroad Association passed legislation that eliminates the necessity for a public hearing before the Illinois Commerce Commission whenever a public highway authority closes a road thus allowing the railroad to close the railroad crossing that is no longer needed.

Use Tax Exemption
The Illinois Department of Revenue attempted to tax railroads for fuel consumed in Illinois but purchased outside Illinois. The Department believed that railroads should pay tax on fuel purchased outside Illinois and pay tax on the same fuel burned off in Illinois. Basically, this was a use tax. The Association decided that the only way to ensure that the Department would not assess a burn-off tax was to pass a bill creating a use tax exemption. The Association did pass such a bill.

Rail Carriers to Maintain Their Bulk Carrier Status
This statute was amended to allow rail carriers to maintain their bulk carrier status when refueling railroad locomotives belonging to other railroads. Except for the passage of this bill, the railroads would have paid more in taxes and been required to file numerous reports which would have been burdensome.

Entry onto Property Adjoining a Railroad Right-of-Way
In 1994, a railroad tank car overturned, causing a spill on a farmer’s land. The landowner refused to allow the railroad access to the property to clean it up until the railroad posted an exorbitant amount of money. It was an amount nearly equal to the cost of the entire farm. At that time, the railroad had no recourse. Neither the EPA nor the circuit court could force the landowner to allow access to his property.

The Illinois Railroad Association offered an amendment to give the court the power to require entry onto private property in situations like the one described above.