Section 14-D. Rail service preservation

1. Authorization is hereby given to
  the commissioner of transportation:
    a.  to acquire, by purchase, gift, grant, transfer, contract or lease,
  any rail transportation facility with the state, or any part thereof, or
  the use thereof, and to utilize any such rail  transportation  facility,
  or  any property acquired pursuant to the provisions of section eighteen
  of this chapter, for the purposes of rail transportation service thereon
  or therewith;
    b. to enter into contracts  with  any  person,  firm,  corporation  or
  agency, including but not limited to any railroad company, state agency,
  the  federal  government,  the  Canadian  government, any other state or
  agency or instrumentality thereof, any public authority of this  or  any
  other  state, or any political subdivision or municipality of the state,
  for  the  purpose  of  providing,   maintaining   and   improving   rail
  transportation service on the rail transportation facilities thereof;
    c.  to  sell,  lease  or otherwise contract for the utilization of any
  rail transportation facilities, or portion thereof,  owned  or  acquired
  pursuant  to  this  section  or  pursuant  to  section  eighteen of this
  chapter, for the purpose of providing  for,  maintaining  and  improving
  rail transportation service thereon.
    2.  The  commissioner, may, subject to the concurrence of the director
  of the budget:
    a. Operate, maintain, renovate, repair, improve, extend  or  establish
  any rail transportation facility or any related services and activities,
  or may provide therefor by contract, lease or other arrangement with any
  person,  firm,  corporation  or agency, including but not limited to any
  railroad company, state agency, the  federal  government,  the  Canadian
  government,  any  other  state or agency or instrumentality thereof, any
  public  authority  of  this  or  any  other  state,  or  any   political
  subdivision or municipality of the state.
    b. Enter into joint service agreements on behalf of the state with any
  railroad  company, and any other state department or agency, the federal
  government, the Canadian  government,  any  other  state  or  agency  or
  instrumentality thereof, any public authority of this state or any other
  state,  or  any  political  subdivision  or  municipality  of the state,
  relating  to  property,  buildings,  structures,  facilities,  services,
  rates,  fares,  classifications,  dividends,  allowances  or charges, or
  rules or regulations pertaining thereto, for or in  connection  with  or
  incidental to transportation in part upon rail transportation facilities
  provided pursuant to this section.
    c.  Acquire  by purchase, gift, grant, transfer, contract or lease any
  rail transportation facility, or any  part  thereof,  necessary  for  or
  incidential to the effectuation of the purposes of this section.
    d.  Utilize  federal monies available or which may become available to
  the state for the purpose of effectuating the provisions of this section
  and enter  into  any  necessary  agreements  required  to  meet  federal
  standards and criteria in connection therewith.
    e.  Establish, levy and collect or cause to be established, levied and
  collected and, in the case of a joint  service  arrangement,  join  with
  others  in  the establishment, levy and collection of such fares, tolls,
  rentals, rates, charges  and  other  fees  as  he  may  deem  necessary,
  convenient  or  desirable  for  the  use  and operation of any such rail
  transportation facility and related services.
    f. Sell, transfer, lease or contract for the sale, transfer  or  lease
  of  any rail transportation facility, or any part thereof, necessary for
  or incidental to the effectuation of the purposes of this section.
    g. Do all things necessary, convenient or desirable to carry  out  the
  purposes of this section.

    3.  For  the  purposes  of this section, the term "rail transportation
  facility" shall include railroad rights of  way  as  well  as  trackage,
  rails,   cars,   locomotives,   rolling   stock,  signal,  power,  fuel,
  communication  and  ventilation   systems,   power   plants,   stations,
  terminals, storage yards, repair and maintenance shops, yards, equipment
  and  parts, offices, and other incidental real estate or personalty used
  or  held  for  or  incidental  to  the  operation,   rehabilitation   or
  improvement  of  any  railroad  operating rail passenger or rail freight
  transportation services, or to operate such services, including, but not
  limited to buildings, structures and rail property.
    4. Notwithstanding the provisions of  any  other  general  special  or
  local  law,  expenses  of  the  department of transportation incurred in
  connection  with  the  provision  of  rail  transportation  services  as
  authorized  by  this  section, may, with the approval of the director of
  the budget, be paid out of the gross revenues, if any, received pursuant
  to the authorization herein contained. All  other  revenues  surplus  to
  these  expenses  shall  be paid into the state treasury to the credit of
  the general fund.