Key piece from this article
Under new rules that the FRA is testing with Indiana, all states that support passenger rail services would be considered railroad carriers. This burdensome interpretation exposes states to significant increases in cost, paperwork and liability, including:
• Liability for the actions of passenger rail providers up to $200 million for each occurrence of injury, death or property damage,
• Hiring new staff to monitor plans and programs in compliance with federal rules, and
• Interpretation that state employees are rail employees, subject to retirement and employer liability rules and limits.
Reread that - NEW RULES THAT THE FRA IS TESTING WITH INDIANA. The FRA unsuccessfully tried something similar with NCDOT a number of years ago but backed off. This time they are not backing off. The implications of this are much bigger than the piddly 4 day a week Hoosier State. This could kill any number of state supported trains nationwide if the state is not willing to go along with the FRA's new rules.
The way I read this, even if Indiana excluded Iowa Pacific and dealt solely with Amtrak, the FRA would still impose these rules. Talk about regulations gone awry.