The department is hereby authorized to exercise those powers necessary for the state to qualify for rail service preservation subsidies or other assistance pursuant to the provisions of any federal act.  The department shall:

 (1)  Establish a state plan for rail transportation and local rail services;

 (2)  Administer and coordinate the state plan;

 (3)  Provide in the plan for the distribution of federal rail service preservation subsidies or other federal assistance;

 (4)  Provide satisfactory assurances on behalf of the state that such fiscal control and fund accounting procedures will be adopted by the state as may be necessary to assure proper disbursement of and account for federal funds paid to the state.

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