1. The Department of Transportation may: (a) Apply for and accept federal, state, local and private money to develop the state plan for rail service and to carry it out; and (b) Enter into compacts, contracts and agreements with other states or groups of states, the Federal Government, railroad corporations, users of railroads or other persons if the Director of the Department of Transportation determines that the compacts, contracts and agreements are consistent with the state plan for rail service and are necessary for the preservation or restoration of rail freight service which is vital to the State, but no state money may be expended to carry out the plan and no compact, contract or agreement may require the expenditure of state money unless previously authorized by the Legislature. 2. The Department of Transportation may serve as agent for any county or city upon the request of the governing body of the county or city in applying for and accepting money from public and private sources for railroad purposes and in carrying out any of the statutory powers of the county or city with respect to railroads.
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