Kansas 2025-2026 Regular Session

Kansas Senate Bill SB86 Compare Versions

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11 Session of 2025
22 SENATE BILL No. 86
33 By Committee on Transportation
44 1-28
55 AN ACT concerning the passenger rail service program; establishing the
66 intercity passenger rail service program; making transfers annually to
77 the passenger rail service revolving fund; amending K.S.A. 75-5089
88 and repealing the existing section.
99 Be it enacted by the Legislature of the State of Kansas:
1010 Section 1. K.S.A. 75-5089 is hereby amended to read as follows: 75-
1111 5089. (a) The secretary of transportation is hereby authorized to establish
1212 and implement a passenger rail service program.
1313 (b) The secretary of transportation may, as part of such passenger rail
1414 service program, do the following:
1515 (1) Enter into agreements with Amtrak, other rail operators, local
1616 jurisdictions and other states for the purpose of developing passenger rail
1717 service, serving Kansas and other states interconnected and positioned on a
1818 current or proposed route. The agreements may include any of the
1919 following provisions:
2020 (A) Cost-sharing agreements associated with initiating service, capital
2121 costs, operating subsidies and other costs necessary to develop and
2222 maintain service; or
2323 (B) joint powers agreements and other institutional arrangements
2424 associated with the administration, management and operation of
2525 passenger rail service.
2626 (2) Provide assistance and enter into agreements with local
2727 jurisdictions along the proposed route of a midwest regional rail system
2828 development or other passenger rail service operations serving Kansas to
2929 ensure that rail stations and terminals are designed and developed in
3030 accordance with the following objectives:
3131 (A) To meet safety and efficiency requirements outlined by Amtrak
3232 and the federal railroad administration;
3333 (B) to aid intermodal transportation; and
3434 (C) to encourage economic development.
3535 (3) Provide loans or grants as provided under the provisions of
3636 subsection (c).
3737 (c) Pursuant to subsection (b), the secretary shall establish,
3838 implement and administer an intercity passenger rail service program to
3939 develop and provide funding in order to connect Kansas by rail to other
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7676 member states of the midwest interstate passenger rail commission, the
7777 midwest regional rail system, the national passenger rail network and any
7878 other passenger rail service operations serving Kansas. The secretary
7979 shall provide funding for the costs of qualifying projects and provide
8080 operating support for Amtrak or any common rail carrier approved by the
8181 federal railroad administration for operation of the service.
8282 (d) (1) The secretary of transportation is hereby authorized to make
8383 loans or grants to passenger rail service providers for the following
8484 purposes:
8585 (A) To provide assistance for the restoration, conservation,
8686 improvement and construction of railroad main lines, branch lines,
8787 switching yards, sidings, rail connections, intermodal yards, highway
8888 grade separations and other railroad related improvements;
8989 (B) for rail economic development projects that improve rail
9090 facilities, including the construction of branch lines, sidings, rail
9191 connections, intermodal yards, stations, equipment defined as locomotives
9292 and rolling stock, including passenger coaches and other rail-related
9393 improvements that spur economic development and job growth; and
9494 (C) costs associated with the initiation, operation and maintenance of
9595 passenger rail service.
9696 (2) Passenger rail service providers, who desire assistance in the form
9797 of a loan or grant under this section, shall submit an application to the
9898 secretary of transportation. Applications shall be in such form and shall
9999 include such information as the secretary of transportation shall require
100100 and shall be submitted in a manner and at a time to be determined by the
101101 secretary of transportation.
102102 (3) Such loans or grants shall be made upon such terms and
103103 conditions as the secretary of transportation may deem appropriate, and
104104 such loans or grants shall be made from funds credited to the passenger
105105 rail service revolving fund.
106106 (4) The passenger rail service revolving fund is hereby established in
107107 the state treasury which shall be for the purposes established under
108108 subsection (c)(1) (d)(1). The secretary of transportation shall administer
109109 the passenger rail service revolving fund. All expenditures from the
110110 passenger rail service revolving fund shall be made in accordance with
111111 appropriation acts upon warrants of the director of accounts and reports
112112 issued pursuant to vouchers approved by the secretary of transportation or
113113 by a person or persons designated by the secretary.
114114 The secretary of transportation shall remit to the state treasurer, in
115115 accordance with the provisions of K.S.A. 75-4215, and amendments
116116 thereto, all moneys received by the secretary pursuant to this act. Upon
117117 receipt of each such remittance, the state treasurer shall deposit the entire
118118 amount in the state treasury to the credit of the passenger rail service
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162162 revolving fund.
163163 (5) The management and investment of the passenger rail service
164164 revolving fund shall be in accordance with K.S.A. 68-2324, and
165165 amendments thereto. Notwithstanding anything to the contrary, all interest
166166 or other income of the investments, after payment of any management
167167 fees, shall be considered income of the passenger rail service revolving
168168 fund.
169169 (d)(e) As part of the annual report required under K.S.A. 68-2315,
170170 and amendments thereto, the secretary of transportation shall report on the
171171 development and operation of the midwest regional rail system and the
172172 state's passenger rail service program.
173173 (e)(f) It is the intent of the state legislature that the enactment of this
174174 act shall not affect the terms or duration of railroad assistance agreements
175175 entered into under legislation enacted before the effective date of this act.
176176 (g) On July 1, 2026, and each July 1 thereafter through July 1, 2029,
177177 the secretary of transportation, in consultation with the director of the
178178 budget, shall determine the amount of unencumbered moneys in the state
179179 general fund, the state highway fund or any special revenue fund or funds
180180 of the department of transportation that may be used for the intercity
181181 passenger rail service program. The secretary of transportation shall
182182 certify the amount from each such fund to the director of accounts and
183183 reports, and upon receipt of each such certification, or as soon thereafter
184184 as moneys are available, the director of accounts and reports shall
185185 immediately transfer an aggregate amount of $5,000,000 each fiscal year
186186 from such certified funds to the passenger rail service revolving fund. The
187187 secretary of transportation shall transmit a copy of each such certification
188188 to the director of legislative research and the director of the budget.
189189 (f)(h) As used in this section "passenger rail service" means long-
190190 distance, intercity and commuter passenger transportation, including the
191191 midwest regional rail system development which is provided on railroad
192192 tracks.
193193 (g)(i) The secretary of transportation may adopt rules and regulations
194194 for the purpose of implementing the provisions of this section.
195195 Sec. 2. K.S.A. 75-5089 is hereby repealed.
196196 Sec. 3. This act shall take effect and be in force from and after its
197197 publication in the statute book.
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