Rep. Julie Hamos

Filed: 8/10/2007

 

 


 

 


 
09500SB0572ham003 LRB095 04708 HLH 38603 a

1
AMENDMENT TO SENATE BILL 572

2     AMENDMENT NO. ______. Amend Senate Bill 572 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois State Auditing Act is amended by
5 adding Section 3-2.3 as follows:
 
6     (30 ILCS 5/3-2.3 new)
7     Sec. 3-2.3. Report on Chicago Transit Authority.
8     (a) No less than 60 days prior to the issuance of bonds or
9 notes by the Chicago Transit Authority (referred to as the
10 "Authority" in this Section) pursuant to Section 12c of the
11 Metropolitan Transit Authority Act, the following
12 documentation shall be submitted to the Auditor General and the
13 Regional Transportation Authority:
14         (1) Retirement Plan Documentation. The Authority shall
15     submit a certification that:
16             (A) it is legally authorized to issue the bonds or

 

 

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1         notes;
2             (B) scheduled annual payments of principal and
3         interest on the bonds and notes to be issued meet the
4         requirements of Section 12c(b)(5) of the Metropolitan
5         Transit Authority Act;
6             (C) no bond or note shall mature later than
7         December 31, 2039;
8             (D) after payment of costs of issuance and
9         necessary deposits to funds and accounts established
10         with respect to debt service on the bonds or notes, the
11         net bond and note proceeds (exclusive of any proceeds
12         to be used to refund outstanding bonds or notes) will
13         be deposited in the Retirement Plan for Chicago Transit
14         Authority Employees and used only for the purposes
15         required by Section 22-101 of the Illinois Pension
16         Code; and
17             (E) it has entered into an intergovernmental
18         agreement with the City of Chicago under which the City
19         of Chicago will provide financial assistance to the
20         Authority in an amount equal to the net receipts, after
21         fees for costs of collection, from a tax on the
22         privilege of transferring title to real estate in the
23         City of Chicago in an amount up to $1.50 per $500 of
24         value or fraction thereof under the provisions of
25         Section 8-3-19 of the Illinois Municipal Code, which
26         agreement shall be for a term expiring no earlier than

 

 

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1         the final maturity of bonds or notes that it proposes
2         to issue under Section 12c of the Metropolitan Transit
3         Authority Act.
4         (2) The Board of Trustees of the Retirement Plan for
5     Chicago Transit Authority Employees shall submit a
6     certification that the Retirement Plan for Chicago Transit
7     Authority Employees is operating in accordance with all
8     applicable legal and contractual requirements, including
9     the following:
10             (A) the members of a new Board of Trustees have
11         been appointed according to the requirements of
12         Section 22-101(b) of the Illinois Pension Code; and
13             (B) contribution levels for employees and the
14         Authority have been established according to the
15         requirements of Section 22-101(d) of the Illinois
16         Pension Code.
17         (3) Actuarial Report. The Board of Trustees of the
18     Retirement Plan for Chicago Transit Authority Employees
19     shall submit an actuarial report prepared by an enrolled
20     actuary setting forth:
21             (A) the method of valuation and the underlying
22         assumptions;
23             (B) a comparison of the debt service schedules of
24         the bonds or notes proposed to be issued to the
25         Retirement Plan's current unfunded actuarial accrued
26         liability amortization schedule, as required by

 

 

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1         Section 22-101(e) of the Illinois Pension Code, using
2         the projected interest cost of the bond or note issue
3         as the discount rate to calculate the estimated net
4         present value savings;
5             (C) the amount of the estimated net present value
6             savings comparing the true interest cost of the
7             bonds or notes with the actuarial investment
8             return assumption of the Retirement Plan; and
9             (D) a certification that the net proceeds of the
10             bonds or notes, together with anticipated earnings
11             on contributions and deposits, will be sufficient
12             to reasonably conclude on an actuarial basis that
13             the total retirement assets of the Retirement Plan
14             will not be less than 90% of its liabilities by the
15             end of fiscal year 2058.
16         (4) The Authority shall submit a financial analysis
17     prepared by an independent advisor. The financial analysis
18     must include a determination that the issuance of bonds is
19     in the best interest of the Retirement Plan for Chicago
20     Transit Authority Employees and the Chicago Transit
21     Authority. The independent advisor shall not act as
22     underwriter or receive a legal, consulting, or other fee
23     related to the issuance of any bond or notes issued by the
24     Authority pursuant to Section 12c of the Metropolitan
25     Transit Authority Act except compensation due for the
26     preparation of the financial analysis.

 

 

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1         (5) Retiree Health Care Trust Documentation. The
2     Authority shall submit a certification that:
3             (A) it is legally authorized to issue the bonds or
4         notes;
5             (B) scheduled annual payments of principal and
6         interest on the bonds and notes to be issued meets the
7         requirements of Section 12c(b)(5) of the Metropolitan
8         Transit Authority Act;
9             (C) no bond or note shall mature later than
10         December 31, 2039;
11             (D) after payment of costs of issuance and
12         necessary deposits to funds and accounts established
13         with respect to debt service on the bonds or notes, the
14         net bond and note proceeds (exclusive of any proceeds
15         to be used to refund outstanding bonds or notes) will
16         be deposited in the Retiree Health Care Trust and used
17         only for the purposes required by Section 22-101B of
18         the Illinois Pension Code; and
19             (E) it has entered into an intergovernmental
20         agreement with the City of Chicago under which the City
21         of Chicago will provide financial assistance to the
22         Authority in an amount equal to the net receipts, after
23         fees for costs of collection, from a tax on the
24         privilege of transferring title to real estate in the
25         City of Chicago in an amount up to $1.50 per $500 of
26         value or fraction thereof under the provisions of

 

 

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1         Section 8-3-19 of the Illinois Municipal Code, which
2         agreement shall be for a term expiring no earlier than
3         the final maturity of bonds or notes that it proposes
4         to issue under Section 12c of the Metropolitan Transit
5         Authority Act.
6         (6) The Board of Trustees of the Retiree Health Care
7     Trust shall submit a certification that the Retiree Health
8     Care Trust has been established in accordance with all
9     applicable legal requirements, including the following:
10             (A) the Retiree Health Care Trust has been
11         established and a Trust document is in effect to govern
12         the Retiree Health Care Trust;
13             (B) the members of the Board of Trustees of the
14         Retiree Health Care Trust have been appointed
15         according to the requirements of Section 22-101B(b)(1)
16         of the Illinois Pension Code;
17             (C) a health care benefit program for eligible
18         retirees and their dependents and survivors has been
19         established by the Board of Trustees according to the
20         requirements of Section 22-101B(b)(2) of the Illinois
21         Pension Code;
22             (D) contribution levels have been established for
23         retirees, dependents and survivors according to the
24         requirements of Section 22-101B(b)(5) of the Illinois
25         Pension Code; and
26             (E) contribution levels have been established for

 

 

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1         employees of the Authority according to the
2         requirements of Section 22-101B(b)(6) of the Illinois
3         Pension Code.
4         (7) Actuarial Report. The Board of Trustees of the
5     Retiree Health Care Trust shall submit an actuarial report
6     prepared by an enrolled actuary setting forth:
7             (A) the method of valuation and the underlying
8         assumptions;
9             (B) a comparison of the projected interest cost of
10         the bonds or notes proposed to be issued with the
11         actuarial investment return assumption of the Retiree
12         Health Care Trust; and
13             (C) a certification that the net proceeds of the
14         bonds or notes, together with anticipated earnings on
15         contributions and deposits, will be sufficient to
16         adequately fund the actuarial present value of
17         projected benefits expected to be paid under the
18         Retiree Health Care Trust, or a certification of the
19         increases in contribution levels and decreases in
20         benefit levels that would be required in order to cure
21         any funding shortfall over a period of not more than 10
22         years.
23         (8) The Authority shall submit a financial analysis
24     prepared by an independent advisor. The financial analysis
25     must include a determination that the issuance of bonds is
26     in the best interest of the Retiree Health Care Trust and

 

 

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1     the Chicago Transit Authority. The independent advisor
2     shall not act as underwriter or receive a legal,
3     consulting, or other fee related to the issuance of any
4     bond or notes issued by the Authority pursuant to Section
5     12c of the Metropolitan Transit Authority Act except
6     compensation due for the preparation of the financial
7     analysis.
8     (b) The Auditor General shall examine the information
9 submitted pursuant to Section 3-2.3(a)(1) through (4) and
10 submit a report to the General Assembly, the Legislative Audit
11 Commission, the Governor, the Regional Transportation
12 Authority and the Authority indicating whether (i) the required
13 certifications by the Authority and the Board of Trustees of
14 the Retirement Plan have been made, and (ii) the actuarial
15 reports have been provided, the reports include all required
16 information, the assumptions underlying those reports are not
17 unreasonable in the aggregate, and the reports appear to comply
18 with all pertinent professional standards, including those
19 issued by the Actuarial Standards Board. The Auditor General
20 shall submit such report no later than 60 days after receiving
21 the information required to be submitted by the Authority and
22 the Board of Trustees of the Retirement Plan. Any bonds or
23 notes issued by the Authority under item (1) of subsection (b)
24 of Section 12c of the Metropolitan Transit Authority Act shall
25 be issued within 120 days after receiving such report from the
26 Auditor General. The Authority may not issue bonds or notes

 

 

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1 until it receives the report from the Auditor General
2 indicating the above requirements have been met.
3     (c) The Auditor General shall examine the information
4 submitted pursuant to Section 3-2.3(a)(5) through (8) and
5 submit a report to the General Assembly, the Legislative Audit
6 Commission, the Governor, the Regional Transportation
7 Authority and the Authority indicating whether (i) the required
8 certifications by the Authority and the Board of Trustees of
9 the Retiree Health Care Trust have been made, and (ii) the
10 actuarial reports have been provided, the reports include all
11 required information, the assumptions underlying those reports
12 are not unreasonable in the aggregate, and the reports appear
13 to comply with all pertinent professional standards, including
14 those issued by the Actuarial Standards Board. The Auditor
15 General shall submit such report no later than 60 days after
16 receiving the information required to be submitted by the
17 Authority and the Board of Trustees of the Retiree Health Care
18 Trust. Any bonds or notes issued by the Authority under item
19 (2) of subsection (b) of Section 12c of the Metropolitan
20 Transit Authority Act shall be issued within 120 days after
21 receiving such report from the Auditor General. The Authority
22 may not issue bonds or notes until it receives a report from
23 the Auditor General indicating the above requirements have been
24 met.
25     (d) In fulfilling this duty, after receiving the
26 information submitted pursuant to Section 3-2.3(a), the

 

 

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1 Auditor General may request additional information and support
2 pertaining to the data and conclusions contained in the
3 submitted documents and the Authority, the Board of Trustees of
4 the Retirement Plan and the Board of Trustees of the Retiree
5 Health Care Trust shall cooperate with the Auditor General and
6 provide additional information as requested in a timely manner.
7 The Auditor General may also request from the Regional
8 Transportation Authority an analysis of the information
9 submitted by the Authority relating to the sources of funds to
10 be utilized for payment of the proposed bonds or notes of the
11 Authority. The Auditor General's report shall not be in the
12 nature of a post-audit or examination and shall not lead to the
13 issuance of an opinion as that term is defined in generally
14 accepted government auditing standards.
15     (e) Annual Retirement Plan Submission to Auditor General.
16 The Board of Trustees of the Retirement Plan for Chicago
17 Transit Authority Employees established by Section 22-101 of
18 the Illinois Pension Code shall provide the following documents
19 to the Auditor General annually no later than September 30:
20         (1) the most recent audit or examination of the
21     Retirement Plan;
22         (2) an annual statement containing the information
23     specified in Section 1A-109 of the Illinois Pension Code;
24     and
25         (3) a complete actuarial statement applicable to the
26     prior plan year, which may be the annual report of an

 

 

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1     enrolled actuary retained by the Retirement Plan specified
2     in Section 22-101(e) of the Illinois Pension Code.
3     The Auditor General shall annually examine the information
4 provided pursuant to this subsection and shall submit a report
5 of the analysis thereof to the General Assembly, including the
6 report specified in Section 22-101(e) of the Illinois Pension
7 Code.
8     (f) The Auditor General shall annually examine the
9 information submitted pursuant to Section 22-101B(b)(3)(iii)
10 of the Illinois Pension Code and shall prepare the
11 determination specified in Section 22-101B(b)(3)(iv) of the
12 Illinois Pension Code.
13     (g) In fulfilling the duties under Sections 3-2.3(e) and
14 (f) the Auditor General may request additional information and
15 support pertaining to the data and conclusions contained in the
16 submitted documents and the Authority, the Board of Trustees of
17 the Retirement Plan and the Board of Trustees of the Retiree
18 Health Care Trust shall cooperate with the Auditor General and
19 provide additional information as requested in a timely manner.
20 The Auditor General's review shall not be in the nature of a
21 post-audit or examination and shall not lead to the issuance of
22 an opinion as that term is defined in generally accepted
23 government auditing standards. Upon request of the Auditor
24 General, the Commission on Government Forecasting and
25 Accountability and the Public Pension Division of the Illinois
26 Department of Financial and Professional Regulation shall

 

 

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1 cooperate with and assist the Auditor General in the conduct of
2 his review.
3     (h) The Auditor General shall submit a bill to the
4 Authority for costs associated with the examinations and
5 reports specified in subsections (b) and (c) of this Section
6 3-2.3, which the Authority shall reimburse in a timely manner.
7 The costs associated with the examinations and reports which
8 are reimbursed by the Authority shall constitute a cost of
9 issuance of the bonds or notes under Section 12c(b)(1) and (2)
10 of the Metropolitan Transit Authority Act. The amount received
11 shall be deposited into the fund or funds from which such costs
12 were paid by the Auditor General. The Auditor General shall
13 submit a bill to the Retirement Plan for Chicago Transit
14 Authority Employees for costs associated with the examinations
15 and reports specified in subsection (e) of this Section, which
16 the Retirement Plan for Chicago Transit Authority Employees
17 shall reimburse in a timely manner. The amount received shall
18 be deposited into the fund or funds from which such costs were
19 paid by the Auditor General. The Auditor General shall submit a
20 bill to the Retiree Health Care Trust for costs associated with
21 the determination specified in subsection (f) of this Section,
22 which the Retiree Health Care Trust shall reimburse in a timely
23 manner. The amount received shall be deposited into the fund or
24 funds from which such costs were paid by the Auditor General.
 
25     Section 6. The State Finance Act is amended by adding

 

 

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1 Section 5.675 as follows:
 
2     (30 ILCS 105/5.675 new)
3     Sec. 5.675. The Downstate Transit Improvement Fund.
 
4     Section 7. The Downstate Public Transportation Act is
5 amended by changing Sections 2-2.04, 2-3, 2-7, and 2-15 as
6 follows:
 
7     (30 ILCS 740/2-2.04)  (from Ch. 111 2/3, par. 662.04)
8     Sec. 2-2.04. "Eligible operating expenses" means all
9 expenses required for public transportation, including
10 employee wages and benefits, materials, fuels, supplies,
11 rental of facilities, taxes other than income taxes, payment
12 made for debt service (including principal and interest) on
13 publicly owned equipment or facilities, and any other
14 expenditure which is an operating expense according to standard
15 accounting practices for the providing of public
16 transportation. Eligible operating expenses shall not include
17 allowances: (a) for depreciation whether funded or unfunded;
18 (b) for amortization of any intangible costs; (c) for debt
19 service on capital acquired with the assistance of capital
20 grant funds provided by the State of Illinois; (d) for profits
21 or return on investment; (e) for excessive payment to
22 associated entities; (f) for Comprehensive Employment Training
23 Act expenses; (g) for costs reimbursed under Sections 6 and 8

 

 

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1 of the "Urban Mass Transportation Act of 1964", as amended; (h)
2 for entertainment expenses; (i) for charter expenses; (j) for
3 fines and penalties; (k) for charitable donations; (l) for
4 interest expense on long term borrowing and debt retirement
5 other than on publicly owned equipment or facilities; (m) for
6 income taxes; or (n) for such other expenses as the Department
7 may determine consistent with federal Department of
8 Transportation regulations or requirements. In consultation
9 with participants, the Department shall, by October 2008,
10 promulgate or update rules, pursuant to the Illinois
11 Administrative Procedure Act, concerning eligible expenses to
12 ensure consistent application of the Act, and the Department
13 shall provide written copies of those rules to all eligible
14 recipients. The Department shall review this process in the
15 same manner no less frequently than every 5 years.
16     With respect to participants other than any Metro-East
17 Transit District participant and those receiving federal
18 research development and demonstration funds pursuant to
19 Section 6 of the "Urban Mass Transportation Act of 1964", as
20 amended, during the fiscal year ending June 30, 1979, the
21 maximum eligible operating expenses for any such participant in
22 any fiscal year after Fiscal Year 1980 shall be the amount
23 appropriated for such participant for the fiscal year ending
24 June 30, 1980, plus in each year a 10% increase over the
25 maximum established for the preceding fiscal year. For Fiscal
26 Year 1980 the maximum eligible operating expenses for any such

 

 

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1 participant shall be the amount of projected operating expenses
2 upon which the appropriation for such participant for Fiscal
3 Year 1980 is based.
4     With respect to participants receiving federal research
5 development and demonstration operating assistance funds for
6 operating assistance pursuant to Section 6 of the "Urban Mass
7 Transportation Act of 1964", as amended, during the fiscal year
8 ending June 30, 1979, the maximum eligible operating expenses
9 for any such participant in any fiscal year after Fiscal Year
10 1980 shall not exceed such participant's eligible operating
11 expenses for the fiscal year ending June 30, 1980, plus in each
12 year a 10% increase over the maximum established for the
13 preceding fiscal year. For Fiscal Year 1980, the maximum
14 eligible operating expenses for any such participant shall be
15 the eligible operating expenses incurred during such fiscal
16 year, or projected operating expenses upon which the
17 appropriation for such participant for the Fiscal Year 1980 is
18 based; whichever is less.
19     With respect to all participants other than any Metro-East
20 Transit District participant, the maximum eligible operating
21 expenses for any such participant in any fiscal year after
22 Fiscal Year 1985 (except Fiscal Year 2008 and Fiscal Year 2009)
23 shall be the amount appropriated for such participant for the
24 fiscal year ending June 30, 1985, plus in each year a 10%
25 increase over the maximum established for the preceding year.
26 For Fiscal Year 1985, the maximum eligible operating expenses

 

 

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1 for any such participant shall be the amount of projected
2 operating expenses upon which the appropriation for such
3 participant for Fiscal Year 1985 is based.
4     With respect to any mass transit district participant that
5 has increased its district boundaries by annexing counties
6 since 1998 and is maintaining a level of local financial
7 support, including all income and revenues, equal to or greater
8 than the level in the State fiscal year ending June 30, 2001,
9 the maximum eligible operating expenses for any State fiscal
10 year after 2002 (except State fiscal years year 2006 through
11 2009) shall be the amount appropriated for that participant for
12 the State fiscal year ending June 30, 2002, plus, in each State
13 fiscal year, a 10% increase over the preceding State fiscal
14 year. For State fiscal year 2002, the maximum eligible
15 operating expenses for any such participant shall be the amount
16 of projected operating expenses upon which the appropriation
17 for that participant for State fiscal year 2002 is based. For
18 that participant, eligible operating expenses for State fiscal
19 year 2002 in excess of the eligible operating expenses for the
20 State fiscal year ending June 30, 2001, plus 10%, must be
21 attributed to the provision of services in the newly annexed
22 counties.
23     With respect to a participant that receives an initial
24 appropriation in State fiscal year 2002 or thereafter, the
25 maximum eligible operating expenses for any State fiscal year
26 after 2003 (except State fiscal years year 2006 through 2009)

 

 

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1 shall be the amount appropriated for that participant for the
2 State fiscal year in which it received its initial
3 appropriation, plus, in each year, a 10% increase over the
4 preceding year. For the initial State fiscal year in which a
5 participant received an appropriation, the maximum eligible
6 operating expenses for any such participant shall be the amount
7 of projected operating expenses upon which the appropriation
8 for that participant for that State fiscal year is based.
9     With respect to the District serving primarily the counties
10 of Monroe and St. Clair, beginning July 1, 2005, the St. Clair
11 County Transit District shall no longer be included for new
12 appropriation funding purposes as part of the Metro-East Public
13 Transportation Fund and instead shall be included for new
14 appropriation funding purposes as part of the Downstate Public
15 Transportation Fund; provided, however, that nothing herein
16 shall alter the eligibility of that District for previously
17 appropriated funds to which it would otherwise be entitled.
18 (Source: P.A. 94-70, eff. 6-22-05.)
 
19     (30 ILCS 740/2-3)  (from Ch. 111 2/3, par. 663)
20     Sec. 2-3. (a) As soon as possible after the first day of
21 each month, beginning July 1, 1984, upon certification of the
22 Department of Revenue, the Comptroller shall order
23 transferred, and the Treasurer shall transfer, from the General
24 Revenue Fund to a special fund in the State Treasury which is
25 hereby created, to be known as the "Downstate Public

 

 

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1 Transportation Fund", an amount equal to 2/32 (beginning July
2 1, 2005, 3/32) of the net revenue realized from the "Retailers'
3 Occupation Tax Act", as now or hereafter amended, the "Service
4 Occupation Tax Act", as now or hereafter amended, the "Use Tax
5 Act", as now or hereafter amended, and the "Service Use Tax
6 Act", as now or hereafter amended, from persons incurring
7 municipal or county retailers' or service occupation tax
8 liability for the benefit of any municipality or county located
9 wholly within the boundaries of each participant other than any
10 Metro-East Transit District participant certified pursuant to
11 subsection (c) of this Section during the preceding month,
12 except that the Department shall pay into the Downstate Public
13 Transportation Fund 2/32 (beginning July 1, 2005, 3/32) of 80%
14 of the net revenue realized under the State tax Acts named
15 above within any municipality or county located wholly within
16 the boundaries of each participant, other than any Metro-East
17 participant, for tax periods beginning on or after January 1,
18 1990; provided, however, that beginning with fiscal year 1985,
19 the transfers into the Downstate Public Transportation Fund
20 during any fiscal year shall not exceed the annual
21 appropriation from the Downstate Public Transportation Fund
22 for that year. The Department of Transportation shall notify
23 the Department of Revenue and the Comptroller at the beginning
24 of each fiscal year of the amount of the annual appropriation
25 from the Downstate Public Transportation Fund. Net revenue
26 realized for a month shall be the revenue collected by the

 

 

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1 State pursuant to such Acts during the previous month from
2 persons incurring municipal or county retailers' or service
3 occupation tax liability for the benefit of any municipality or
4 county located wholly within the boundaries of a participant,
5 less the amount paid out during that same month as refunds or
6 credit memoranda to taxpayers for overpayment of liability
7 under such Acts for the benefit of any municipality or county
8 located wholly within the boundaries of a participant.
9     (b) As soon as possible after the first day of each month,
10 beginning July 1, 1989, upon certification of the Department of
11 Revenue, the Comptroller shall order transferred, and the
12 Treasurer shall transfer, from the General Revenue Fund to a
13 special fund in the State Treasury which is hereby created, to
14 be known as the "Metro-East Public Transportation Fund", an
15 amount equal to 2/32 of the net revenue realized, as above,
16 from within the boundaries of Madison, Monroe, and St. Clair
17 Counties, except that the Department shall pay into the
18 Metro-East Public Transportation Fund 2/32 of 80% of the net
19 revenue realized under the State tax Acts specified in
20 subsection (a) of this Section within the boundaries of
21 Madison, Monroe and St. Clair Counties for tax periods
22 beginning on or after January 1, 1990. A local match equivalent
23 to an amount which could be raised by a tax levy at the rate of
24 .05% on the assessed value of property within the boundaries of
25 Madison County is required annually to cause a total of 2/32 of
26 the net revenue to be deposited in the Metro-East Public

 

 

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1 Transportation Fund. Failure to raise the required local match
2 annually shall result in only 1/32 being deposited into the
3 Metro-East Public Transportation Fund after July 1, 1989, or
4 1/32 of 80% of the net revenue realized for tax periods
5 beginning on or after January 1, 1990.
6     (b-5) As soon as possible after the first day of each
7 month, beginning July 1, 2005, upon certification of the
8 Department of Revenue, the Comptroller shall order
9 transferred, and the Treasurer shall transfer, from the General
10 Revenue Fund to the Downstate Public Transportation Fund, an
11 amount equal to 3/32 of 80% of the net revenue realized from
12 within the boundaries of Monroe and St. Clair Counties under
13 the State Tax Acts specified in subsection (a) of this Section
14 and provided further that, beginning July 1, 2005, the
15 provisions of subsection (b) shall no longer apply with respect
16 to such tax receipts from Monroe and St. Clair Counties.
17     (b-6) As soon as possible after the first day of each
18 month, beginning in fiscal year 2009, upon certification of the
19 Department of Revenue, the Comptroller shall order
20 transferred, and the Treasurer shall transfer, from the General
21 Revenue Fund to the Metro-East Public Transportation Fund, an
22 amount equal to 3/32 of 80% of the net revenue realized from
23 within the boundaries of Madison County under the State Tax
24 Acts specified in subsection (a) of this Section.
25     (c) The Department shall certify to the Department of
26 Revenue the eligible participants under this Article and the

 

 

09500SB0572ham003 - 21 - LRB095 04708 HLH 38603 a

1 territorial boundaries of such participants for the purposes of
2 the Department of Revenue in subsections (a) and (b) of this
3 Section.
4     (d) For the purposes of this Article the Department shall
5 include in its annual request for appropriation of ordinary and
6 contingent expenses an amount equal to the sum total funds
7 projected to be paid to the participants pursuant to Section
8 2-7.
9     (e) In addition to any other permitted use of moneys in the
10 Fund, and notwithstanding any restriction on the use of the
11 Fund, moneys in the Downstate Public Transportation Fund may be
12 transferred to the General Revenue Fund as authorized by Public
13 Act 87-14. The General Assembly finds that an excess of moneys
14 existed in the Fund on July 30, 1991, and the Governor's order
15 of July 30, 1991, and the Governor's order of July 30, 1991,
16 requesting the Comptroller and Treasurer to transfer an amount
17 from the Fund to the General Revenue Fund is hereby validated.
18 (Source: P.A. 94-70, eff. 6-22-05.)
 
19     (30 ILCS 740/2-7)  (from Ch. 111 2/3, par. 667)
20     Sec. 2-7. Quarterly reports; annual audit.
21     (a) Any Metro-East Transit District participant shall, no
22 later than 60 days following the end of each quarter of any
23 fiscal year, file with the Department on forms provided by the
24 Department for that purpose, a report of the actual operating
25 deficit experienced during that quarter. The Department shall,

 

 

09500SB0572ham003 - 22 - LRB095 04708 HLH 38603 a

1 upon receipt of the quarterly report, determine whether the
2 operating deficits were incurred in conformity with the program
3 of proposed expenditures approved by the Department pursuant to
4 Section 2-11. Any Metro-East District may either monthly or
5 quarterly for any fiscal year file a request for the
6 participant's eligible share, as allocated in accordance with
7 Section 2-6, of the amounts transferred into the Metro-East
8 Public Transportation Fund.
9     (b) Each participant other than any Metro-East Transit
10 District participant shall, 30 days before the end of each
11 quarter, file with the Department on forms provided by the
12 Department for such purposes a report of the projected eligible
13 operating expenses to be incurred in the next quarter and 30
14 days before the third and fourth quarters of any fiscal year a
15 statement of actual eligible operating expenses incurred in the
16 preceding quarters. Except as otherwise provided in subsection
17 (b-5), within 45 days of receipt by the Department of such
18 quarterly report, the Comptroller shall order paid and the
19 Treasurer shall pay from the Downstate Public Transportation
20 Fund to each participant an amount equal to one-third of such
21 participant's eligible operating expenses; provided, however,
22 that in Fiscal Year 1997, the amount paid to each participant
23 from the Downstate Public Transportation Fund shall be an
24 amount equal to 47% of such participant's eligible operating
25 expenses and shall be increased to 49% in Fiscal Year 1998, 51%
26 in Fiscal Year 1999, 53% in Fiscal Year 2000, and 55% in Fiscal

 

 

09500SB0572ham003 - 23 - LRB095 04708 HLH 38603 a

1 Years Year 2001 through 2007, and 65% in Fiscal Year 2008 and
2 thereafter; however, in any year that a participant receives
3 funding under subsection (i) of Section 2705-305 of the
4 Department of Transportation Law (20 ILCS 2705/2705-305), that
5 participant shall be eligible only for assistance equal to the
6 following percentage of its eligible operating expenses: 42% in
7 Fiscal Year 1997, 44% in Fiscal Year 1998, 46% in Fiscal Year
8 1999, 48% in Fiscal Year 2000, and 50% in Fiscal Year 2001 and
9 thereafter. Any such payment for the third and fourth quarters
10 of any fiscal year shall be adjusted to reflect actual eligible
11 operating expenses for preceding quarters of such fiscal year.
12 However, no participant shall receive an amount less than that
13 which was received in the immediate prior year, provided in the
14 event of a shortfall in the fund those participants receiving
15 less than their full allocation pursuant to Section 2-6 of this
16 Article shall be the first participants to receive an amount
17 not less than that received in the immediate prior year.
18     (b-5) (Blank.) With respect to the District serving
19 primarily the counties of Monroe and St. Clair, beginning July
20 1, 2005 and each fiscal year thereafter, the District may, as
21 an alternative to the provisions of subsection (b) of Section
22 2-7, file a request with the Department for a monthly payment
23 of 1/12 of the amount appropriated to the District for that
24 fiscal year; except that, for the final month of the fiscal
25 year, the District's request shall be in an amount such that
26 the total payments made to the District in that fiscal year do

 

 

09500SB0572ham003 - 24 - LRB095 04708 HLH 38603 a

1 not exceed the lesser of (i) 55% of the District's eligible
2 operating expenses for that fiscal year or (ii) the total
3 amount appropriated to the District for that fiscal year.
4     (b-10) On July 1, 2008, each participant shall receive an
5 appropriation in an amount equal to 65% of its fiscal year 2008
6 eligible operating expenses adjusted by the annual 10% increase
7 required by Section 2-2.04 of this Act. In no case shall any
8 participant receive an appropriation that is less than its
9 fiscal year 2008 appropriation. Every fiscal year thereafter,
10 each participant's appropriation shall increase by 10% over the
11 appropriation established for the preceding fiscal year as
12 required by Section 2-2.04 of this Act.
13     (b-15) Beginning on July 1, 2007, and for each fiscal year
14 thereafter, each participant shall maintain a minimum local
15 share contribution (from farebox and all other local revenues)
16 equal to the actual amount provided in Fiscal Year 2006 or, for
17 new recipients, an amount equivalent to the local share
18 provided in the first year of participation.
19     (b-20) Any participant in the Downstate Public
20 Transportation Fund may use State operating assistance
21 pursuant to this Section to provide transportation services
22 within any county that is contiguous to its territorial
23 boundaries as defined by the Department and subject to
24 Departmental approval. Any such contiguous-area service
25 provided by a participant after July 1, 2007 must meet the
26 requirements of subsection (a) of Section 2-5.1.

 

 

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1     (c) No later than 180 days following the last day of the
2 Fiscal Year each participant shall provide the Department with
3 an audit prepared by a Certified Public Accountant covering
4 that Fiscal Year. For those participants other than a
5 Metro-East Transit District, any discrepancy between the
6 grants paid and the percentage of the eligible operating
7 expenses provided for by paragraph (b) of this Section shall be
8 reconciled by appropriate payment or credit. In the case of any
9 Metro-East Transit District, any amount of payments from the
10 Metro-East Public Transportation Fund which exceed the
11 eligible deficit of the participant shall be reconciled by
12 appropriate payment or credit.
13 (Source: P.A. 94-70, eff. 6-22-05.)
 
14     (30 ILCS 740/2-15)  (from Ch. 111 2/3, par. 675.1)
15     Sec. 2-15. Except as otherwise provided in this Section,
16 all funds which remain in the Downstate Public Transportation
17 Fund or the Metro-East Public Transportation Fund after the
18 payment of the fourth quarterly payment to participants other
19 than Metro-East Transit District participants and the last
20 monthly payment to Metro-East Transit participants in each
21 fiscal year shall be transferred (i) to the General Revenue
22 Fund through fiscal year 2008 and (ii) to the Downstate Transit
23 Improvement Fund for fiscal year 2009 and each fiscal year
24 thereafter. Transfers shall be made no later than 90 days
25 following the end of such fiscal year. The Department shall use

 

 

09500SB0572ham003 - 26 - LRB095 04708 HLH 38603 a

1 moneys in the Downstate Transit Improvement Fund to make
2 competitive capital grants to the participants of the
3 respective funds. However, such amount as the Department
4 determines to be necessary for (1) allocation to participants
5 for the purposes of Section 2-7 for the first quarter of the
6 succeeding fiscal year and (2) an amount equal to 2% of the
7 total allocations to participants in the fiscal year just ended
8 to be used for the purpose of audit adjustments shall be
9 retained in such Funds to be used by the Department for such
10 purposes.
11 (Source: P.A. 86-590.)
 
12     Section 8. The Illinois Pension Code is amended by changing
13 Section 22-101 and by adding Section 22-101B as follows:
 
14     (40 ILCS 5/22-101)  (from Ch. 108 1/2, par. 22-101)
15     Sec. 22-101. Retirement plan for Chicago Transit Authority
16 Employees. Metropolitan Transit Authority (CTA) Pension Fund.
17     (a) There shall be established and maintained by the
18 Authority created by the "Metropolitan Transit Authority Act",
19 approved April 12, 1945, as amended, (referred to in this
20 Section as the "Authority") a financially sound pension and
21 retirement system adequate to provide for all payments when due
22 under such established system or as modified from time to time
23 by ordinance of the Chicago Transit Board or collective
24 bargaining agreement. For this purpose, the Board must make

 

 

09500SB0572ham003 - 27 - LRB095 04708 HLH 38603 a

1 contributions to the established system as required under this
2 Section and may make any additional contributions provided for
3 by Board ordinance or collective bargaining agreement. The
4 participating employees shall make such periodic payments to
5 the established system as required under this Section and may
6 make any additional contributions provided for may be
7 determined by Board ordinance or collective bargaining
8 agreement. The Board, in lieu of social security payments
9 required to be paid by private corporations engaged in similar
10 activity, shall make payments into such established system at
11 least equal in amount to the amount so required to be paid by
12 such private corporations.
13     Provisions shall be made by the Board for all Board
14 members, officers and employees of the Authority appointed
15 pursuant to the "Metropolitan Transit Authority Act" to become,
16 subject to reasonable rules and regulations, participants
17 members or beneficiaries of the pension or retirement system
18 with uniform rights, privileges, obligations and status as to
19 the class in which such officers and employees belong. The
20 terms, conditions and provisions of any pension or retirement
21 system or of any amendment or modification thereof affecting
22 employees who are members of any labor organization may be
23 established, amended or modified by agreement with such labor
24 organization, provided the terms, conditions and provisions
25 must be consistent with this Act, the annual funding levels for
26 the retirement system established by law must be met and the

 

 

09500SB0572ham003 - 28 - LRB095 04708 HLH 38603 a

1 benefits paid to future participants in the system may not
2 exceed the benefit ceilings set for future participants under
3 this Act and the contribution levels required by the Authority
4 and its employees may not be less than the contribution levels
5 established under this Act but must be consistent with the
6 requirements of this Section.
7     (b) The Board of Trustees shall consist of 11 members
8 appointed as follows: (i) 5 trustees shall be appointed by the
9 Chicago Transit Board; (ii) 3 trustees shall be appointed by an
10 organization representing the highest number of Chicago
11 Transit Authority participants; (iii) one trustee shall be
12 appointed by an organization representing the second-highest
13 number of Chicago Transit Authority participants; (iv) one
14 trustee shall be appointed by the recognized coalition
15 representatives of participants who are not represented by an
16 organization with the highest or second-highest number of
17 Chicago Transit Authority participants; and (v) one trustee
18 shall be selected by the Regional Transportation Authority
19 Board of Directors, and the trustee shall be a professional
20 fiduciary who has experience in the area of collectively
21 bargained pension plans. Trustees shall serve for a period of 3
22 years and until a successor has been appointed and qualified,
23 or until resignation, death, incapacity, or disqualification.
24     Any person elected or appointed as a trustee of the board
25 shall qualify by taking an oath of office that he or she will
26 diligently and honestly administer the affairs of the system

 

 

09500SB0572ham003 - 29 - LRB095 04708 HLH 38603 a

1 and will not knowingly violate or willfully permit the
2 violation of any of the provisions of law applicable to the
3 Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
4 1-111, 1-114, and 1-115 of the Illinois Pension Code.
5     Each trustee shall cast individual votes, and a majority
6 vote shall be final and binding upon all interested parties.
7 Each trustee shall have the rights, privileges, authority, and
8 obligations as are usual and customary for such fiduciaries.
9     The Board of Trustees may cause amounts on deposit in the
10 Retirement Plan to be invested in those investments that are
11 permitted investments for the investment of moneys held under
12 any one or more of the pension or retirement systems of the
13 State, any unit of local government or school district, or any
14 agency or instrumentality thereof, and may be placed under such
15 investment management of the Illinois State Board of
16 Investment, which is hereby authorized to manage these
17 investments when so requested by the Board of Trustees.
18     (c) All individuals who were previously participants in the
19 Retirement Plan for Chicago Transit Authority Employees shall
20 remain participants, and shall receive the same benefits
21 established by the Retirement Plan for Chicago Transit
22 Authority Employees, except as provided in this amendatory Act
23 or by subsequent legislative enactment or amendment to the
24 Retirement Plan. For Authority employees hired on or after
25 January 1, 2008, the Retirement Plan for Chicago Transit
26 Authority Employees shall be the exclusive retirement plan and

 

 

09500SB0572ham003 - 30 - LRB095 04708 HLH 38603 a

1 such employees shall not be eligible for any supplemental plan.
2     For all Authority employees who are first hired on or after
3 January 1, 2008 and are participants in the Retirement Plan for
4 Chicago Transit Authority Employees, the following terms,
5 conditions and provisions with respect to retirement shall be
6 applicable:
7         (1) Such participant shall be eligible for an unreduced
8     retirement allowance for life upon the attainment of age 64
9     with 25 years of continuous service.
10         (2) Such participant shall be eligible for a reduced
11     retirement allowance for life upon the attainment of age 55
12     with 10 years of continuous service.
13         (3) For the purpose of determining the retirement
14     allowance to be paid to a retiring employee, the term
15     "Continuous Service" as used in the Retirement Plan for
16     Chicago Transit Authority Employees shall also be deemed to
17     include all pension credit for service with any retirement
18     system established under Article 8 of this Code, provided
19     that the employee forfeits and relinquishes all pension
20     credit under Article 8 of this Code, and the contribution
21     required under this subsection is made by the employee. The
22     Retirement Plan's actuary shall determine the contribution
23     paid by the employee as an amount equal to the normal cost
24     of the benefit accrued, had the service been rendered as a
25     member, plus interest per annum from the time such service
26     was rendered until the date the payment is made.

 

 

09500SB0572ham003 - 31 - LRB095 04708 HLH 38603 a

1     (d) From the effective date of this amendatory Act through
2 December 31, 2008, all participating employees shall
3 contribute to the Retirement Plan in an amount not less than 6%
4 of compensation, and the Authority shall contribute to the
5 Retirement Plan in an amount not less than 12% of compensation.
6     (e)(1) Beginning January 1, 2009 the Authority shall make
7 contributions to the Retirement Plan in an amount equal to
8 twelve percent (12%) of compensation and participating
9 employees shall make contributions to the Retirement Plan in an
10 amount equal to six percent (6%) of compensation. These
11 contributions may be paid by the Authority and participating
12 employees on a payroll or other periodic basis, but shall in
13 any case be paid to the Retirement Plan at least monthly.
14     (2) For the period ending December 31, 2039, the amount
15 paid by the Authority in any year with respect to debt service
16 on bonds issued for the purposes of funding a contribution to
17 the Retirement Plan under Section 12c of the Metropolitan
18 Transit Authority Act, other than debt service paid with the
19 proceeds of bonds or notes issued by the Authority for any year
20 after calendar year 2008, shall be treated as a credit against
21 the amount of required contribution to the Retirement Plan by
22 the Authority under subsection (e)(1) for the following year up
23 to an amount not to exceed 6% of compensation paid by the
24 Authority in that following year.
25     (3) By September 15 of each year beginning in 2009 and
26 ending on December 31, 2038, on the basis of a report prepared

 

 

09500SB0572ham003 - 32 - LRB095 04708 HLH 38603 a

1 by an enrolled actuary retained by the Plan, the Board of
2 Trustees of the Retirement Plan shall determine the estimated
3 funded ratio of the total assets of the Retirement Plan to its
4 total actuarially determined liabilities. A report containing
5 that determination and the actuarial assumptions on which it is
6 based shall be filed with the Authority, the representatives of
7 its participating employees, the Auditor General of the State
8 of Illinois, and the Regional Transportation Authority. If the
9 funded ratio is projected to decline below 60% in any year
10 before 2039, the Board of Trustees shall also determine the
11 increased contribution required each year as a level percentage
12 of payroll over the years remaining until 2039 using the
13 projected unit cost credit actuarial cost method so the funded
14 ratio does not decline below 60% and include that determination
15 in its report. If the actual funded ratio declines below 60% in
16 any year prior to 2039, the Board of Trustees shall also
17 determine the increased contribution required each year as a
18 level percentage of payroll during the years after the then
19 current year using the projected unit cost credit actuarial
20 cost method so the funded ratio is projected to reach at least
21 60% no later than 5 years after the then current year and
22 include that determination in its report. Within 60 days after
23 receiving the report, the Auditor General shall review the
24 determination and the assumptions on which it is based, and if
25 he finds that the determination and the assumptions on which it
26 is based are unreasonable in the aggregate, he shall issue a

 

 

09500SB0572ham003 - 33 - LRB095 04708 HLH 38603 a

1 new determination of the funded ratio, the assumptions on which
2 it is based and the increased contribution required each year
3 as a level percentage of payroll over the years remaining until
4 2039 using the projected unit cost credit actuarial cost method
5 so the funded ratio does not decline below 60%, or, in the
6 event of an actual decline below 60%, so the funded ratio is
7 projected to reach 60% by no later than 5 years after the then
8 current year. If the Board of Trustees or the Auditor General
9 determine that an increased contribution is required to meet
10 the funded ratio required by the subsection, effective January
11 1 following the determination or 30 days after such
12 determination, whichever is later, one-third of the increased
13 contribution shall be paid by participating employees and
14 two-thirds by the Authority, in addition to the contributions
15 required by this subsection (1).
16     (4) For the period beginning 2039, the minimum contribution
17 to the Retirement Plan for each fiscal year shall be an amount
18 determined by the Board of Trustees of the Retirement Plan to
19 be sufficient to bring the total assets of the Retirement Plan
20 up to 90% of its total actuarial liabilities by the end of
21 2058. Participating employees shall be responsible for
22 one-third of the required contribution and the Authority shall
23 be responsible for two-thirds of the required contribution. In
24 making these determinations, the Board of Trustees shall
25 calculate the required contribution each year as a level
26 percentage of payroll over the years remaining to and including

 

 

09500SB0572ham003 - 34 - LRB095 04708 HLH 38603 a

1 fiscal year 2058 using the projected unit credit actuarial cost
2 method. A report containing that determination and the
3 actuarial assumptions on which it is based shall be filed by
4 September 15 of each year with the Authority, the
5 representatives of its participating employees, the Auditor
6 General of the State of Illinois and the Regional
7 Transportation Authority. If the funded ratio is projected to
8 fail to reach 90% by December 31, 2058, the Board of Trustees
9 shall also determine the increased contribution required each
10 year as a level percentage of payroll over the years remaining
11 until December 31, 2058 using the projected unit cost credit
12 actuarial cost method so the funded ratio will meet 90% by
13 December 31, 2058 and include that determination in its report.
14 Within 60 days after receiving the report, the Auditor General
15 shall review the determination and the assumptions on which it
16 is based and if he finds that the determination and the
17 assumptions on which it is based are unreasonable in the
18 aggregate, he shall issue a new determination of the funded
19 ratio, the assumptions on which it is based and the increased
20 contribution required each year as a level percentage of
21 payroll over the years remaining until December 31, 2058 using
22 the projected unit cost credit actuarial cost method so the
23 funded ratio reaches no less than 90% by December 31, 2058. If
24 the Board of Trustees or the Auditor General determine that an
25 increased contribution is required to meet the funded ratio
26 required by this subsection, effective January 1 following the

 

 

09500SB0572ham003 - 35 - LRB095 04708 HLH 38603 a

1 determination or 30 days after such determination, whichever is
2 later, one-third of the increased contribution shall be paid by
3 participating employees and two-thirds by the Authority, in
4 addition to the contributions required by subsection (e)(1).
5     (5) Beginning in 2059, the minimum contribution for each
6 year shall be the amount needed to maintain the total assets of
7 the Retirement Plan at 90% of the total actuarial liabilities
8 of the Plan, and the contribution shall be funded two-thirds by
9 the Authority and one-third by the participating employees in
10 accordance with this subsection.
11     (f) The Authority shall take the steps necessary to comply
12 with Section 414(h)(2) of the Internal Revenue Code of 1986, as
13 amended, to permit the pick-up of employee contributions under
14 subsections (d) and (e) on a tax-deferred basis.
15     (g) The Board of Trustees shall certify to the Governor,
16 the General Assembly, the Auditor General, the Board of the
17 Regional Transportation Authority, and the Authority at least
18 90 days prior to the end of each fiscal year the amount of the
19 required contributions to the retirement system for the next
20 retirement system fiscal year under this Section. The
21 certification shall include a copy of the actuarial
22 recommendations upon which it is based. In addition, copies of
23 the certification shall be sent to the Commission on Government
24 Forecasting and Accountability and the Mayor of Chicago.
25     (h)(1) As to an employee who first becomes entitled to a
26 retirement allowance commencing on or after November 30, 1989,

 

 

09500SB0572ham003 - 36 - LRB095 04708 HLH 38603 a

1 the retirement allowance shall be the amount determined in
2 accordance with the following formula:
3         (A) One percent (1%) of his "Average Annual
4     Compensation in the highest four (4) completed Plan Years"
5     for each full year of continuous service from the date of
6     original employment to the effective date of the Plan; plus
7         (B) One and seventy-five hundredths percent (1.75%) of
8     his "Average Annual Compensation in the highest four (4)
9     completed Plan Years" for each year (including fractions
10     thereof to completed calendar months) of continuous
11     service.
12 Provided, however that:
13     (2) As to an employee who first becomes entitled to a
14 retirement allowance commencing on or after January 1, 1993,
15 the retirement allowance shall be the amount determined in
16 accordance with the following formula:
17         (A) One percent (1%) of his "Average Annual
18     Compensation in the highest four (4) completed Plan Years"
19     for each full year of continuous service from the date of
20     original employment to the effective date of the Plan; plus
21         (B) One and eighty hundredths percent (1.80%) of his
22     "Average Annual Compensation in the highest four (4)
23     completed Plan Years" for each year (including fractions
24     thereof to completed calendar months) of continuous
25     service.
26 Provided, however that:

 

 

09500SB0572ham003 - 37 - LRB095 04708 HLH 38603 a

1     (3) As to an employee who first becomes entitled to a
2 retirement allowance commencing on or after January 1, 1994,
3 the retirement allowance shall be the amount determined in
4 accordance with the following formula:
5         (A) One percent (1%) of his "Average Annual
6     Compensation in the highest four (4) completed Plan Years"
7     for each full year of continuous service from the date of
8     original employment to the effective date of the Plan; plus
9         (B) One and eighty-five hundredths percent (1.85%) of
10     his "Average Annual Compensation in the highest four (4)
11     completed Plan Years" for each year (including fractions
12     thereof to completed calendar months) of continuous
13     service.
14 Provided, however that:
15     (4) As to an employee who first becomes entitled to a
16 retirement allowance commencing on or after January 1, 2000,
17 the retirement allowance shall be the amount determined in
18 accordance with the following formula:
19         (A) One percent (1%) of his "Average Annual
20     Compensation in the highest four (4) completed Plan Years"
21     for each full year of continuous service from the date of
22     original employment to the effective date of the Plan; plus
23         (B) Two percent (2%) of his "Average Annual
24     Compensation in the highest four (4) completed Plan Years"
25     for each year (including fractions thereof to completed
26     calendar months) of continuous service.

 

 

09500SB0572ham003 - 38 - LRB095 04708 HLH 38603 a

1 Provided, however that:
2     (5) As to an employee who first becomes entitled to a
3 retirement allowance commencing on or after January 1, 2001,
4 the retirement allowance shall be the amount determined in
5 accordance with the following formula:
6         (A) One percent (1%) of his "Average Annual
7     Compensation in the highest four (4) completed Plan Years"
8     for each full year of continuous service from the date of
9     original employment to the effective date of the Plan; plus
10         (B) Two and fifteen hundredths percent (2.15%) of his
11     "Average Annual Compensation in the highest four (4)
12     completed Plan Years" for each year (including fractions
13     thereof to completed calendar months) of continuous
14     service.
15 Provided, however that:
16     (6) The Plan for the 2001 plan year met or exceeded the
17 actuarial assumptions agreed to by the Authority and the
18 Association and set forth in the Plan and the Plan as of
19 January 1, 2002 has a Funded Ratio of at least 86.47% or more,
20 as to an employee who first becomes entitled to a retirement
21 allowance commencing on or after January 1, 2002, the
22 retirement allowance shall be the amount determined in
23 accordance with the following formula:
24         (A) One percent (1%) of his "Average Annual
25     Compensation in the highest four (4) completed Plan Years"
26     for each full year of continuous service from the date of

 

 

09500SB0572ham003 - 39 - LRB095 04708 HLH 38603 a

1     original employment to the effective date of the Plan; plus
2         (B) Two and thirty hundredths percent (2.30%) of his
3     "Average Annual Compensation in the highest four (4)
4     completed Plan Years" for each year (including fractions
5     thereof to completed calendar months) of continuous
6     service.
7 Provided, however that:
8     (7) The Plan for the 2001 and 2002 plan years on an
9 aggregate basis met or exceeded the actuarial assumptions
10 agreed to by the Authority and the Association and set forth in
11 the Plan and the Plan as of January 1, 2003 has a Funded Ratio
12 of at least 84.99% or more, as to an employee who first becomes
13 entitled to a retirement allowance commencing on or after
14 January 1, 2003, the retirement allowance shall be the amount
15 determined in accordance with the following formula:
16         (A) One percent (1%) of his "Average Annual
17     Compensation in the highest four (4) completed Plan Years"
18     for each full year of continuous service from the date of
19     original employment to the effective date of the Plan; plus
20         (B) Two and forty hundredths percent (2.40%) of his
21     "Average Annual Compensation in the highest four (4)
22     completed Plan Years" for each year (including fractions
23     thereof to completed calendar months) of continuous
24     service.
25     For the purposes of subparagraphs (6) and (7) of this
26 subsection (a), the Funded Ratio shall be the Adjusted Assets

 

 

09500SB0572ham003 - 40 - LRB095 04708 HLH 38603 a

1 divided by the Actuarial Accrued Liability developed in
2 accordance with Statement #25 promulgated by the Government
3 Accounting Standards Board and the actuarial assumptions
4 described in the Plan. The Adjusted Assets will be calculated
5 based on the methodology described in the Plan.
6     The changes made by this Amendatory Act of the 95th General
7 Assembly, to the extent that they affect the rights or
8 privileges of Authority employees that are currently the
9 subject of collective bargaining, have been agreed to between
10 the authorized representatives of these employees and of the
11 Authority prior to enactment of this amendatory Act, as
12 evidenced by a Memorandum of Understanding between these
13 representatives that will be filed with the Secretary of State
14 Index Department and designated as "95-GA-C05". The General
15 Assembly finds and declares that those changes are consistent
16 with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
17 Federal Transit Act) because of this agreement between
18 authorized representatives of these employees and of the
19 Authority, and that any future amendments to the provisions of
20 this amendatory Act of the 95th General Assembly, to the extent
21 those amendments would affect the rights and privileges of
22 Authority employees that are currently the subject of
23 collective bargaining, would be consistent with 49 U.S.C.
24 5333(b) if and only if those amendments were agreed to between
25 these authorized representatives prior to enactment. Nothing
26 in this amendatory Act of the 95th General Assembly shall be

 

 

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1 construed to limit the rights or privileges of Authority
2 employees under any other law.
3     (i) Early retirement incentive plan; funded ratio.
4         (1) Beginning on the effective date of this Section, no
5     early retirement incentive shall be offered to
6     participants of the Plan unless the Funded Ratio of the
7     Plan is at least 80% or more.
8         (2) For the purposes of this Section, the Funded Ratio
9     shall be the Adjusted Assets divided by the Actuarial
10     Accrued Liability developed in accordance with Statement
11     #25 promulgated by the Government Accounting Standards
12     Board and the actuarial assumptions described in the Plan.
13     The Adjusted Assets shall be calculated based on the
14     methodology described in the Plan.
15     (b) Beginning January 1, 2009, the Authority shall make
16 contributions to the retirement system in an amount which,
17 together with the contributions of participants, interest
18 earned on investments, and other income, will meet the cost of
19 maintaining and administering the retirement plan in
20 accordance with applicable actuarial recommendations and
21 assumptions and the requirements of this Section. These
22 contributions may be paid on a payroll or other periodic basis,
23 but shall in any case be paid at least monthly.
24     For retirement system fiscal years 2009 through 2058, the
25 minimum contribution to the retirement system to be made by the
26 Authority for each fiscal year shall be an amount determined

 

 

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1 jointly by the Authority and the trustee of the retirement
2 system to be sufficient to bring the total assets of the
3 retirement system up to 90% of its total actuarial liabilities
4 by the end of fiscal year 2058. In making these determinations,
5 the required Authority contribution shall be calculated each
6 year as a level percentage of payroll over the years remaining
7 to and including fiscal year 2058 and shall be determined under
8 the projected unit credit actuarial cost method. Beginning in
9 retirement system fiscal year 2059, the minimum Authority
10 contribution for each fiscal year shall be the amount needed to
11 maintain the total assets of the retirement system at 90% of
12 the total actuarial liabilities of the system.
13     For purposes of determining employer contributions and
14 actuarial liabilities under this subsection, contributions and
15 liabilities relating to health care benefits shall not be
16 included. As used in this Section, "retirement system fiscal
17 year" means the calendar year, or such other plan year as may
18 be defined from time to time in the agreement known as the
19 Retirement Plan for Chicago Transit Authority Employees, or its
20 successor agreement.
21     (c) The Authority and the trustee shall jointly certify to
22 the Governor, the General Assembly, and the Board of the
23 Regional Transportation Authority on or before November 15 of
24 2008 and of each year thereafter the amount of the required
25 Authority contributions to the retirement system for the next
26 retirement system fiscal year under subsection (b). The

 

 

09500SB0572ham003 - 43 - LRB095 04708 HLH 38603 a

1 certification shall include a copy of the actuarial
2 recommendations upon which it is based. In addition, copies of
3 the certification shall be sent to the Commission on Government
4 Forecasting and Accountability, the Mayor of Chicago, the
5 Chicago City Council, and the Cook County Board.
6     (d) The Authority shall take all actions lawfully available
7 to it to separate the funding of health care benefits for
8 retirees and their dependents and survivors from the funding
9 for its retirement system. The Authority shall endeavor to
10 achieve this separation as soon as possible, and in any event
11 no later than January 1, 2009.
12     (e) This amendatory Act of the 94th General Assembly does
13 not affect or impair the right of either the Authority or its
14 employees to collectively bargain the amount or level of
15 employee contributions to the retirement system.
16 (Source: P.A. 94-839, eff. 6-6-06.)
 
17     (40 ILCS 5/22-101B new)
18     Sec. 22-101B. Health Care Benefits.
19     (a) The Chicago Transit Authority (hereinafter referred to
20 in this Section as the "Authority") shall take all actions
21 lawfully available to it to separate the funding of health care
22 benefits for retirees and their dependents and survivors from
23 the funding for its retirement system. The Authority shall
24 endeavor to achieve this separation as soon as possible, and in
25 any event no later than January 1, 2009.

 

 

09500SB0572ham003 - 44 - LRB095 04708 HLH 38603 a

1     (b) Effective January 1, 2008, a Retiree Health Care Trust
2 is established for the purpose of providing health care
3 benefits to eligible retirees and their dependents and
4 survivors in accordance with the terms and conditions set forth
5 in this Section 22-101B. The Retiree Health Care Trust shall be
6 solely responsible for providing health care benefits to
7 eligible retirees and their dependents and survivors by no
8 later than January 1, 2009, but no earlier than July 1, 2008.
9         (1) The Board of Trustees shall consist of 7 members
10     appointed as follows: (i) 3 trustees shall be appointed by
11     the Chicago Transit Board; (ii) one trustee shall be
12     appointed by an organization representing the highest
13     number of Chicago Transit Authority participants; (iii)
14     one trustee shall be appointed by an organization
15     representing the second-highest number of Chicago Transit
16     Authority participants; (iv) one trustee shall be
17     appointed by the recognized coalition representatives of
18     participants who are not represented by an organization
19     with the highest or second-highest number of Chicago
20     Transit Authority participants; and (v) one trustee shall
21     be selected by the Regional Transportation Authority Board
22     of Directors, and the trustee shall be a professional
23     fiduciary who has experience in the area of collectively
24     bargained retiree health plans. Trustees shall serve for a
25     period of 3 years and until a successor has been appointed
26     and qualified, or until resignation, death, incapacity, or

 

 

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1     disqualification.
2     Any person elected or appointed as a trustee of the board
3 shall qualify by taking an oath of office that he or she will
4 diligently and honestly administer the affairs of the system,
5 and will not knowingly violate or willfully permit the
6 violation of any of the provisions of law applicable to the
7 Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
8 1-111, 1-114, and 1-115 of Article 1 of the Illinois Pension
9 Code.
10     Each trustee shall cast individual votes, and a majority
11 vote shall be final and binding upon all interested parties.
12 Each trustee shall have the rights, privileges, authority and
13 obligations as are usual and customary for such fiduciaries.
14         (2) The Board of Trustees shall establish and
15     administer a health care benefit program for eligible
16     retirees and their dependents and survivors. The health
17     care benefit program for eligible retirees and their
18     dependents and survivors shall not contain any plan which
19     provides for more than 90% coverage for in-network services
20     or 70% coverage for out-of-network services after any
21     deductible has been paid.
22         (3) The Retiree Health Care Trust shall be administered
23     by the Board of Trustees according to the following
24     requirements:
25             (i) The Board of Trustees may cause amounts on
26         deposit in the Retiree Health Care Trust to be invested

 

 

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1         in those investments that are permitted investments
2         for the investment of moneys held under any one or more
3         of the pension or retirement systems of the State, any
4         unit of local government or school district, or any
5         agency or instrumentality thereof, and may be placed
6         under investment management of the Illinois State
7         Board of Investment, which is hereby authorized to
8         manage these investments when so requested by the Board
9         of Trustees.
10             (ii) The Board of Trustees shall establish and
11         maintain an appropriate funding reserve level which
12         shall not be less than the amount of incurred and
13         unreported claims plus 12 months of expected claims and
14         administrative expenses.
15             (iii) The Board of Trustees shall make an annual
16         assessment of the funding levels of the Retiree Health
17         Care Trust and shall submit a report to the Auditor
18         General at least 90 days prior to the end of the fiscal
19         year. The report shall provide the following:
20                 (A) the actuarial present value of projected
21             benefits expected to be paid to current and future
22             retirees and their dependents and survivors;
23                 (B) the actuarial present value of projected
24             contributions and trust income plus assets;
25                 (C) the reserve required by subsection
26             (b)(3)(ii); and

 

 

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1                 (D) an assessment of whether the actuarial
2             present value of projected benefits expected to be
3             paid to current and future retirees and their
4             dependents and survivors exceeds or is less than
5             the actuarial present value of projected
6             contributions and trust income plus assets in
7             excess of the reserve required by subsection
8             (b)(3)(ii).
9             If the actuarial present value of projected
10         benefits expected to be paid to current and future
11         retirees and their dependents and survivors exceeds
12         the actuarial present value of projected contributions
13         and trust income plus assets in excess of the reserve
14         required by subsection (b)(3)(ii), then the report
15         shall provide a plan of increases in employee, retiree,
16         dependent, or survivor contribution levels, decreases
17         in benefit levels, or both, which is projected to cure
18         the shortfall over a period of not more than 10 years.
19         If the actuarial present value of projected benefits
20         expected to be paid to current and future retirees and
21         their dependents and survivors is less than the
22         actuarial present value of projected contributions and
23         trust income plus assets in excess of the reserve
24         required by subsection (b)(3)(ii), then the report may
25         provide a plan of decreases in employee, retiree,
26         dependent, or survivor contribution levels, increases

 

 

09500SB0572ham003 - 48 - LRB095 04708 HLH 38603 a

1         in benefit levels, or both, to the extent of the
2         surplus.
3             (iv) The Auditor General shall review the report
4         and plan provided in subsection (b)(3)(iii) and issue a
5         determination within 90 days after receiving the
6         report and plan, with a copy of such determination
7         provided to the General Assembly and the Regional
8         Transportation Authority, as follows:
9                 (A) In the event of a projected shortfall, if
10             the Auditor General determines that the
11             assumptions stated in the report are not
12             unreasonable in the aggregate and that the plan of
13             increases in employee, retiree, dependent, or
14             survivor contribution levels, decreases in benefit
15             levels, or both, is reasonably projected to cure
16             the shortfall over a period of not more than 10
17             years, then the Board of Trustees shall implement
18             the plan. If the Auditor General determines that
19             the assumptions stated in the report are
20             unreasonable in the aggregate, or that the plan of
21             increases in employee, retiree, dependent, or
22             survivor contribution levels, decreases in benefit
23             levels, or both, is not reasonably projected to
24             cure the shortfall over a period of not more than
25             10 years, then the Board of Trustees shall not
26             implement the plan, the Auditor General shall

 

 

09500SB0572ham003 - 49 - LRB095 04708 HLH 38603 a

1             explain the basis for such determination to the
2             Board of Trustees, and the Auditor General may make
3             recommendations as to an alternative report and
4             plan.
5                 (B) In the event of a projected surplus, if the
6             Auditor General determines that the assumptions
7             stated in the report are not unreasonable in the
8             aggregate and that the plan of decreases in
9             employee, retiree, dependent, or survivor
10             contribution levels, increases in benefit levels,
11             or both, is not unreasonable in the aggregate, then
12             the Board of Trustees shall implement the plan. If
13             the Auditor General determines that the
14             assumptions stated in the report are unreasonable
15             in the aggregate, or that the plan of decreases in
16             employee, retiree, dependent, or survivor
17             contribution levels, increases in benefit levels,
18             or both, is unreasonable in the aggregate, then the
19             Board of Trustees shall not implement the plan, the
20             Auditor General shall explain the basis for such
21             determination to the Board of Trustees, and the
22             Auditor General may make recommendations as to an
23             alternative report and plan.
24                 (C) The Board of Trustees shall submit an
25             alternative report and plan within 45 days after
26             receiving a rejection determination by the Auditor

 

 

09500SB0572ham003 - 50 - LRB095 04708 HLH 38603 a

1             General. A determination by the Auditor General on
2             any alternative report and plan submitted by the
3             Board of Trustees shall be made within 90 days
4             after receiving the alternative report and plan,
5             and shall be accepted or rejected according to the
6             requirements of this subsection (b)(3)(iv). The
7             Board of Trustees shall continue to submit
8             alternative reports and plans to the Auditor
9             General, as necessary, until a favorable
10             determination is made by the Auditor General.
11         (4) For any retiree who first retires effective January
12     1, 2008 or thereafter, to be eligible for retiree health
13     care benefits upon retirement, the retiree must be at least
14     55 years of age, retire with 10 or more years of continuous
15     service and satisfy the preconditions established by this
16     amendatory Act in addition to any rules or regulations
17     promulgated by the Board of Trustees.
18         (5) Effective July 1, 2008, the aggregate amount of
19     retiree, dependent and survivor contributions to the cost
20     of their health care benefits shall not exceed more than
21     45% of the total cost of such benefits. The Board of
22     Trustees shall have the discretion to provide different
23     contribution levels for retirees, dependents and survivors
24     based on their years of service, level of coverage or
25     Medicare eligibility, provided that the total contribution
26     from all retirees, dependents, and survivors shall be not

 

 

09500SB0572ham003 - 51 - LRB095 04708 HLH 38603 a

1     more than 45% of the total cost of such benefits. The term
2     "total cost of such benefits" for purposes of this
3     subsection shall be the total amount expended by the
4     retiree health benefit program in the prior plan year, as
5     calculated and certified in writing by the Retiree Health
6     Care Trust's enrolled actuary to be appointed and paid for
7     by the Board of Trustees.
8         (6) Effective January 1, 2008, all employees of the
9     Authority shall contribute to the Retiree Health Care Trust
10     in an amount not less than 3% of compensation.
11         (7) No earlier than July 1, 2008 and no later than
12     January 1, 2009 as the Retiree Health Care Trust becomes
13     solely responsible for providing health care benefits to
14     eligible retirees and their dependents and survivors in
15     accordance with subsection (b) of this Section 22-101B, the
16     Authority shall not have any obligation to provide health
17     care to current or future retirees and their dependents or
18     survivors. The Authority, its employees, and the retirees,
19     dependents and survivors who are required to make
20     contributions to the Retiree Health Care Trust shall make
21     contributions at the level set by the Board of Trustees
22     pursuant to the requirements of this Section 22-101B.
 
23     Section 10. The Illinois Municipal Code is amended by
24 changing Section 8-3-19 as follows:
 

 

 

09500SB0572ham003 - 52 - LRB095 04708 HLH 38603 a

1     (65 ILCS 5/8-3-19)
2     Sec. 8-3-19. Home rule real estate transfer taxes.
3     (a) After the effective date of this amendatory Act of the
4 93rd General Assembly and subject to this Section, a home rule
5 municipality may impose or increase a tax or other fee on the
6 privilege of transferring title to real estate, on the
7 privilege of transferring a beneficial interest in real
8 property, and on the privilege of transferring a controlling
9 interest in a real estate entity, as the terms "beneficial
10 interest", "controlling interest", and "real estate entity"
11 are defined in Article 31 of the Property Tax Code. Such a tax
12 or other fee shall hereafter be referred to as a real estate
13 transfer tax.
14     (b) Before adopting a resolution to submit the question of
15 imposing or increasing a real estate transfer tax to
16 referendum, the corporate authorities shall give public notice
17 of and hold a public hearing on the intent to submit the
18 question to referendum. This hearing may be part of a regularly
19 scheduled meeting of the corporate authorities. The notice
20 shall be published not more than 30 nor less than 10 days prior
21 to the hearing in a newspaper of general circulation within the
22 municipality. The notice shall be published in the following
23 form:
24         Notice of Proposed (Increased) Real Estate Transfer
25     Tax for (commonly known name of municipality).
26         A public hearing on a resolution to submit to

 

 

09500SB0572ham003 - 53 - LRB095 04708 HLH 38603 a

1     referendum the question of a proposed (increased) real
2     estate transfer tax for (legal name of the municipality) in
3     an amount of (rate) to be paid by the buyer (seller) of the
4     real estate transferred will be held on (date) at (time) at
5     (location). The current rate of real estate transfer tax
6     imposed by (name of municipality) is (rate).
7         Any person desiring to appear at the public hearing and
8     present testimony to the taxing district may do so.
9     (c) A notice that includes any information not specified
10 and required by this Section is an invalid notice. All hearings
11 shall be open to the public. At the public hearing, the
12 corporate authorities of the municipality shall explain the
13 reasons for the proposed or increased real estate transfer tax
14 and shall permit persons desiring to be heard an opportunity to
15 present testimony within reasonable time limits determined by
16 the corporate authorities. A copy of the proposed ordinance
17 shall be made available to the general public for inspection
18 before the public hearing.
19     (d) Except as provided in subsection (i), no No home rule
20 municipality shall impose a new real estate transfer tax after
21 the effective date of this amendatory Act of 1996 without prior
22 approval by referendum. Except as provided in subsection (i),
23 no No home rule municipality shall impose an increase of the
24 rate of a current real estate transfer tax without prior
25 approval by referendum. A home rule municipality may impose a
26 new real estate transfer tax or may increase an existing real

 

 

09500SB0572ham003 - 54 - LRB095 04708 HLH 38603 a

1 estate transfer tax with prior referendum approval. The
2 referendum shall be conducted as provided in subsection (e). An
3 existing ordinance or resolution imposing a real estate
4 transfer tax may be amended without approval by referendum if
5 the amendment does not increase the rate of the tax or add
6 transactions on which the tax is imposed.
7     (e) The home rule municipality shall, by resolution,
8 provide for submission of the proposition to the voters. The
9 home rule municipality shall certify the resolution and the
10 proposition to the proper election officials in accordance with
11 the general election law. If the proposition is to impose a new
12 real estate transfer tax, it shall be in substantially the
13 following form: "Shall (name of municipality) impose a real
14 estate transfer tax at a rate of (rate) to be paid by the buyer
15 (seller) of the real estate transferred, with the revenue of
16 the proposed transfer tax to be used for (purpose)?". If the
17 proposition is to increase an existing real estate transfer
18 tax, it shall be in the following form: "Shall (name of
19 municipality) impose a real estate transfer tax increase of
20 (percent increase) to establish a new transfer tax rate of
21 (rate) to be paid by the buyer (seller) of the real estate
22 transferred? The current rate of the real estate transfer tax
23 is (rate), and the revenue is used for (purpose). The revenue
24 from the increase is to be used for (purpose).".
25     If a majority of the electors voting on the proposition
26 vote in favor of it, the municipality may impose or increase

 

 

09500SB0572ham003 - 55 - LRB095 04708 HLH 38603 a

1 the municipal real estate transfer tax or fee.
2     (f) Nothing in this amendatory Act of 1996 shall limit the
3 purposes for which real estate transfer tax revenues may be
4 collected or expended.
5     (g) A home rule municipality may not impose real estate
6 transfer taxes other than as authorized by this Section. This
7 Section is a denial and limitation of home rule powers and
8 functions under subsection (g) of Section 6 of Article VII of
9 the Illinois Constitution.
10     (h) Notwithstanding subsection (g) of this Section, any
11 real estate transfer taxes adopted by a municipality at any
12 time prior to January 17, 1997 (the effective date of Public
13 Act 89-701) and any amendments to any existing real estate
14 transfer tax ordinance adopted after that date, in accordance
15 with the law in effect at the time of the adoption of the
16 amendments, are not preempted by this amendatory Act of the
17 93rd General Assembly.
18     (i) Within 6 months after the effective date of this
19 amendatory Act of the 95th General Assembly, by ordinance
20 adopted without a referendum, a home rule municipality with a
21 population in excess of 1,000,000 may increase the rate of an
22 existing real estate transfer tax by a rate of up to $1.50 for
23 each $500 of value or fraction thereof, or in the alternative
24 may impose a real estate transfer tax at a rate of up to $1.50
25 for each $500 of value or fraction thereof, which may be on the
26 buyer or seller of real estate, or jointly and severally on

 

 

09500SB0572ham003 - 56 - LRB095 04708 HLH 38603 a

1 both, for the sole purpose of providing financial assistance to
2 the Chicago Transit Authority. All amounts collected under such
3 supplemental tax shall be provided to the Chicago Transit
4 Authority pursuant to an intergovernmental agreement as
5 promptly as practicable upon their receipt. Such municipality
6 shall file a copy of any ordinance imposing or increasing such
7 tax with the Illinois Department of Revenue and shall file a
8 report with the Department each month certifying the amount
9 paid to the Chicago Transit Authority in the previous month
10 from the proceeds of such tax.
11 (Source: P.A. 93-657, eff. 6-1-04.)
 
12     Section 15. The Metropolitan Transit Authority Act is
13 amended by changing Sections 15, 28a, 34, and 46 and by adding
14 Sections 12c and 50 as follows:
 
15     (70 ILCS 3605/12c new)
16     Sec. 12c. Retiree Benefits Bonds and Notes.
17     (a) In addition to all other bonds or notes that it is
18 authorized to issue, the Authority is authorized to issue its
19 bonds or notes for the purposes of providing funds for the
20 Authority to make the deposits described in Section 12c(b)(1)
21 and (2), for refunding any bonds authorized to be issued under
22 this Section, as well as for the purposes of paying costs of
23 issuance, obtaining bond insurance or other credit enhancement
24 or liquidity facilities, paying costs of obtaining related

 

 

09500SB0572ham003 - 57 - LRB095 04708 HLH 38603 a

1 swaps as authorized in the Bond Authorization Act ("Swaps"),
2 providing a debt service reserve fund, paying Debt Service (as
3 defined in paragraph (i) of this Section 12c), and paying all
4 other costs related to any such bonds or notes.
5     (b)(1) After its receipt of a certified copy of a report of
6 the Auditor General of the State of Illinois meeting the
7 requirements of Section 3-2.3 of the Illinois State Auditing
8 Act, the Authority may issue $1,227,000,000 aggregate original
9 principal amount of bonds and notes. After payment of the costs
10 of issuance and necessary deposits to funds and accounts
11 established with respect to debt service, the net proceeds of
12 such bonds or notes shall be deposited only in the Retirement
13 Plan for Chicago Transit Authority Employees and used only for
14 the purposes required by Section 22-101 of the Illinois Pension
15 Code. Provided that no less than $1,000,000,000 has been
16 deposited in the Retirement Plan, remaining proceeds of bonds
17 issued under this subparagraph (b)(1) may be used to pay costs
18 of issuance and make necessary deposits to funds and accounts
19 with respect to debt service for bonds and notes issued under
20 this subparagraph or subparagraph (b)(2).
21     (2) After its receipt of a certified copy of a report of
22 the Auditor General of the State of Illinois meeting the
23 requirements of Section 3-2.3 of the Illinois State Auditing
24 Act, the Authority may issue $553,000,000 aggregate original
25 principal amount of bonds and notes. After payment of the costs
26 of issuance and necessary deposits to funds and accounts

 

 

09500SB0572ham003 - 58 - LRB095 04708 HLH 38603 a

1 established with respect to debt service, the net proceeds of
2 such bonds or notes shall be deposited only in the Retiree
3 Health Care Trust and used only for the purposes required by
4 Section 22-101B of the Illinois Pension Code. Provided that no
5 less than $450,000,000 has been deposited in the Retiree Health
6 Care Trust, remaining proceeds of bonds issued under this
7 subparagraph (b)(2) may be used to pay costs of issuance and
8 make necessary deposits to funds and accounts with respect to
9 debt service for bonds and notes issued under this subparagraph
10 or subparagraph (b)(1).
11     (3) In addition, refunding bonds are authorized to be
12 issued for the purpose of refunding outstanding bonds or notes
13 issued under this Section 12c.
14     (4) The bonds or notes issued under 12c(b)(1) shall be
15 issued as soon as practicable after the Auditor General issues
16 the report provided in Section 3-2.3(b) of the Illinois State
17 Auditing Act. The bonds or notes issued under 12c(b)(2) shall
18 be issued as soon as practicable after the Auditor General
19 issues the report provided in Section 3-2.3(c) of the Illinois
20 State Auditing Act.
21     (5) With respect to bonds and notes issued under
22 subparagraph (b), scheduled aggregate annual payments of
23 interest or deposits into funds and accounts established for
24 the purpose of such payment shall commence within one year
25 after the bonds and notes are issued. With respect to principal
26 and interest, scheduled aggregate annual payments of principal

 

 

09500SB0572ham003 - 59 - LRB095 04708 HLH 38603 a

1 and interest or deposits into funds and accounts established
2 for the purpose of such payment shall be not less than 70% in
3 2009, 80% in 2010, and 90% in 2011, respectively, of scheduled
4 payments or deposits of principal and interest in 2012 and
5 shall be substantially equal beginning in 2012 and each year
6 thereafter. For purposes of this subparagraph (b),
7 "substantially equal" means that debt service in any full year
8 after calendar year 2011 is not more than 115% of debt service
9 in any other full year after calendar year 2011 during the term
10 of the bonds or notes. For the purposes of this subsection (b),
11 with respect to bonds and notes that bear interest at a
12 variable rate, interest shall be assumed at a rate equal to the
13 rate for United States Treasury Securities - State and Local
14 Government Series for the same maturity, plus 75 basis points.
15 If the Authority enters into a Swap with a counterparty
16 requiring the Authority to pay a fixed interest rate on a
17 notional amount, and the Authority has made a determination
18 that such Swap was entered into for the purpose of providing
19 substitute interest payments for variable interest rate bonds
20 or notes of a particular maturity or maturities in a principal
21 amount equal to the notional amount of the Swap, then during
22 the term of the Swap for purposes of any calculation of
23 interest payable on such bonds or notes, the interest rate on
24 the bonds or notes of such maturity or maturities shall be
25 determined as if such bonds or notes bore interest at the fixed
26 interest rate payable by the Authority under such Swap.

 

 

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1     (6) No bond or note issued under this Section 12c shall
2 mature later than December 31, 2039.
3     (c) The Chicago Transit Board shall provide for the
4 issuance of bonds or notes as authorized in this Section 12c by
5 the adoption of an ordinance. The ordinance, together with the
6 bonds or notes, shall constitute a contract among the
7 Authority, the owners from time to time of the bonds or notes,
8 any bond trustee with respect to the bonds or notes, any
9 related credit enhancer and any provider of any related Swaps.
10     (d) The Authority is authorized to cause the proceeds of
11 the bonds or notes, and any interest or investment earnings on
12 the bonds or notes, and of any Swaps, to be invested until the
13 proceeds and any interest have been deposited with the
14 Retirement Plan or the Retiree Health Care Trust.
15     (e) Bonds or notes issued pursuant to this Section 12c may
16 be general obligations of the Authority, to which shall be
17 pledged the full faith and credit of the Authority, or may be
18 obligations payable solely from particular sources of funds all
19 as may be provided in the authorizing ordinance. The
20 authorizing ordinance for the bonds and notes, whether or not
21 general obligations of the Authority, may provide for the Debt
22 Service (as defined in paragraph (i) of this Section 12c) to
23 have a claim for payment from particular sources of funds,
24 including, without limitation, amounts to be paid to the
25 Authority or a bond trustee. The authorizing ordinance may
26 provide for the means by which the bonds or notes (and any

 

 

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1 related Swaps) may be secured, which may include, a pledge of
2 any revenues or funds of the Authority from whatever source
3 which may by law be utilized for paying Debt Service. In
4 addition to any other security, upon the written approval of
5 the Regional Transportation Authority by the affirmative vote
6 of 12 of its then Directors, the ordinance shall provide a
7 specific pledge or assignment of and lien on or security
8 interest in amounts to be paid to the Authority by the Regional
9 Transportation Authority from the proceeds of any tax levied by
10 the Regional Transportation Authority under Section 4.03 of the
11 Regional Transportation Authority Act and allocated to the
12 Authority under the provisions of Section 4.03.3 of that Act
13 and direct payment thereof to the bond trustee for payment of
14 Debt Service with respect to the bonds or notes, subject to the
15 provisions of existing lease agreements of the Authority with
16 any public building commission. The authorizing ordinance may
17 also provide a specific pledge or assignment of and lien on or
18 security interest in and direct payment to the trustee of all
19 or a portion of the moneys otherwise payable to the Authority
20 from the City of Chicago pursuant to an intergovernmental
21 agreement with the Authority to provide financial assistance to
22 the Authority. Any such pledge, assignment, lien or security
23 interest for the benefit of owners of bonds or notes shall be
24 valid and binding from the time the bonds or notes are issued,
25 without any physical delivery or further act, and shall be
26 valid and binding as against and prior to the claims of all

 

 

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1 other parties having claims of any kind against the Authority
2 or any other person, irrespective of whether such other parties
3 have notice of such pledge, assignment, lien or security
4 interest, all as provided in the Local Government Debt Reform
5 Act, as it may be amended from time to time. The bonds or notes
6 of the Authority issued pursuant to this Section 12c shall have
7 such priority of payment and as to their claim for payment from
8 particular sources of funds, including their priority with
9 respect to obligations of the Authority issued under other
10 Sections of this Act, all as shall be provided in the
11 ordinances authorizing the issuance of the bonds or notes. The
12 ordinance authorizing the issuance of any bonds or notes under
13 this Section may provide for the creation of, deposits in, and
14 regulation and disposition of sinking fund or reserve accounts
15 relating to those bonds or notes and related agreements. The
16 ordinance authorizing the issuance of any such bonds or notes
17 authorized under this Section 12c may contain provisions for
18 the creation of a separate fund to provide for the payment of
19 principal of and interest on those bonds or notes and related
20 agreements. The ordinance may also provide limitations on the
21 issuance of additional bonds or notes of the Authority.
22     (f) Bonds or notes issued under this Section 12c shall not
23 constitute an indebtedness of the Regional Transportation
24 Authority, the State of Illinois, or of any other political
25 subdivision of or municipality within the State, except the
26 Authority.

 

 

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1     (g) The ordinance of the Chicago Transit Board authorizing
2 the issuance of bonds or notes pursuant to this Section 12c may
3 provide for the appointment of a corporate trustee (which may
4 be any trust company or bank having the powers of a trust
5 company within Illinois) with respect to bonds or notes issued
6 pursuant to this Section 12c. The ordinance shall prescribe the
7 rights, duties, and powers of the trustee to be exercised for
8 the benefit of the Authority and the protection of the owners
9 of bonds or notes issued pursuant to this Section 12c. The
10 ordinance may provide for the trustee to hold in trust, invest
11 and use amounts in funds and accounts created as provided by
12 the ordinance with respect to the bonds or notes in accordance
13 with this Section 12c. The Authority may apply, as it shall
14 determine, any amounts received upon the sale of the bonds or
15 notes to pay any Debt Service on the bonds or notes. The
16 ordinance may provide for a trust indenture to set forth terms
17 of, sources of payment for and security for the bonds and
18 notes.
19     (h) The State of Illinois pledges to and agrees with the
20 owners of the bonds or notes issued pursuant to Section 12c
21 that the State of Illinois will not limit the powers vested in
22 the Authority by this Act to pledge and assign its revenues and
23 funds as security for the payment of the bonds or notes, or
24 vested in the Regional Transportation Authority by the Regional
25 Transportation Authority Act or this Act, so as to materially
26 impair the payment obligations of the Authority under the terms

 

 

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1 of any contract made by the Authority with those owners or to
2 materially impair the rights and remedies of those owners until
3 those bonds or notes, together with interest and any redemption
4 premium, and all costs and expenses in connection with any
5 action or proceedings by or on behalf of such owners are fully
6 met and discharged. The Authority is authorized to include
7 these pledges and agreements of the State of Illinois in any
8 contract with owners of bonds or notes issued pursuant to this
9 Section 12c.
10     (i) For purposes of this Section, "Debt Service" with
11 respect to bonds or notes includes, without limitation,
12 principal (at maturity or upon mandatory redemption),
13 redemption premium, interest, periodic, upfront, and
14 termination payments on Swaps, fees for bond insurance or other
15 credit enhancement, liquidity facilities, the funding of bond
16 or note reserves, bond trustee fees, and all other costs of
17 providing for the security or payment of the bonds or notes.
18     (j) The Authority shall adopt a procurement program with
19 respect to contracts relating to the following service
20 providers in connection with the issuance of debt for the
21 benefit of the Retirement Plan for Chicago Transit Authority
22 Employees: underwriters, bond counsel, financial advisors, and
23 accountants. The program shall include goals for the payment of
24 not less than 30% of the total dollar value of the fees from
25 these contracts to minority owned businesses and female owned
26 businesses as defined in the Business Enterprise for

 

 

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1 Minorities, Females, and Persons with Disabilities Act. The
2 Authority shall conduct outreach to minority owned businesses
3 and female owned businesses. Outreach shall include, but is not
4 limited to, advertisements in periodicals and newspapers,
5 mailings, and other appropriate media. The Authority shall
6 submit to the General Assembly a comprehensive report that
7 shall include, at a minimum, the details of the procurement
8 plan, outreach efforts, and the results of the efforts to
9 achieve goals for the payment of fees. The service providers
10 selected by the Authority pursuant to such program shall not be
11 subject to approval by the Regional Transportation Authority,
12 and the Regional Transportation Authority's approval pursuant
13 to subsection (e) of this Section 12c related to the issuance
14 of debt shall not be based in any way on the service providers
15 selected by the Authority pursuant to this Section.
16     (k) No person holding an elective office in this State,
17 holding a seat in the General Assembly, serving as a director,
18 trustee, officer, or employee of the Regional Transportation
19 Authority or the Chicago Transit Authority, including the
20 spouse or minor child of that person, may receive a legal,
21 banking, consulting, or other fee related to the issuance of
22 any bond issued by the Chicago Transit Authority pursuant to
23 this Section.
 
24     (70 ILCS 3605/15)  (from Ch. 111 2/3, par. 315)
25     Sec. 15. The Authority shall have power to apply for and

 

 

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1 accept grants and loans from the Federal Government or any
2 agency or instrumentality thereof, from the State, or from any
3 county, municipal corporation or other political subdivision
4 of the State to be used for any of the purposes of the
5 Authority, including, but not by way of limitation, grants and
6 loans in aid of mass transportation and for studies in mass
7 transportation, and may provide matching funds when necessary
8 to qualify for such grants or loans. The Authority may enter
9 into any agreement with the Federal Government, the State, and
10 any county, municipal corporation or other political
11 subdivision of the State in relation to such grants or loans;
12 provided that such agreement does not conflict with any of the
13 provisions of any trust agreement securing the payment of bonds
14 or certificates of the Authority.
15     The Authority may also accept from the state, or from any
16 county or other political subdivision, or from any municipal
17 corporation, or school district, or school authorities, grants
18 or other funds authorized by law to be paid to the Authority
19 for any of the purposes of this Act.
20 (Source: Laws 1961, p. 3135.)
 
21     (70 ILCS 3605/28a)  (from Ch. 111 2/3, par. 328a)
22     Sec. 28a. (a) The Board may deal with and enter into
23 written contracts with the employees of the Authority through
24 accredited representatives of such employees or
25 representatives of any labor organization authorized to act for

 

 

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1 such employees, concerning wages, salaries, hours, working
2 conditions and pension or retirement provisions; provided,
3 nothing herein shall be construed to permit hours of labor in
4 excess of those provided by law or to permit working conditions
5 prohibited by law. In case of dispute over wages, salaries,
6 hours, working conditions, or pension or retirement provisions
7 the Board may arbitrate any question or questions and may agree
8 with such accredited representatives or labor organization
9 that the decision of a majority of any arbitration board shall
10 be final, provided each party shall agree in advance to pay
11 half of the expense of such arbitration.
12     No contract or agreement shall be made with any labor
13 organization, association, group or individual for the
14 employment of members of such organization, association, group
15 or individual for the construction, improvement, maintenance,
16 operation or administration of any property, plant or
17 facilities under the jurisdiction of the Authority, where such
18 organization, association, group or individual denies on the
19 ground of race, creed, color, sex, religion, physical or mental
20 handicap unrelated to ability, or national origin membership
21 and equal opportunities for employment to any citizen of
22 Illinois.
23     (b)(1) The provisions of this paragraph (b) apply to
24 collective bargaining agreements (including extensions and
25 amendments of existing agreements) entered into on or after
26 January 1, 1984.

 

 

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1     (2) The Board shall deal with and enter into written
2 contracts with their employees, through accredited
3 representatives of such employees authorized to act for such
4 employees concerning wages, salaries, hours, working
5 conditions, and pension or retirement provisions about which a
6 collective bargaining agreement has been entered prior to the
7 effective date of this amendatory Act of 1983. Any such
8 agreement of the Authority shall provide that the agreement may
9 be reopened if the amended budget submitted pursuant to Section
10 2.18a of the Regional Transportation Authority Act is not
11 approved by the Board of the Regional Transportation Authority.
12 The agreement may not include a provision requiring the payment
13 of wage increases based on changes in the Consumer Price Index.
14 The Board shall not have the authority to enter into collective
15 bargaining agreements with respect to inherent management
16 rights, which include such areas of discretion or policy as the
17 functions of the employer, standards of services, its overall
18 budget, the organizational structure and selection of new
19 employees and direction of personnel. Employers, however,
20 shall be required to bargain collectively with regard to policy
21 matters directly affecting wages, hours and terms and
22 conditions of employment, as well as the impact thereon upon
23 request by employee representatives. To preserve the rights of
24 employers and exclusive representatives which have established
25 collective bargaining relationships or negotiated collective
26 bargaining agreements prior to the effective date of this

 

 

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1 amendatory Act of 1983, employers shall be required to bargain
2 collectively with regard to any matter concerning wages, hours
3 or conditions of employment about which they have bargained
4 prior to the effective date of this amendatory Act of 1983.
5     (3) The collective bargaining agreement may not include a
6 prohibition on the use of part-time operators on any service
7 operated by or funded by the Board, except where prohibited by
8 federal law.
9     (4) Within 30 days of the signing of any such collective
10 bargaining agreement, the Board shall determine the costs of
11 each provision of the agreement, prepare an amended budget
12 incorporating the costs of the agreement, and present the
13 amended budget to the Board of the Regional Transportation
14 Authority for its approval under Section 4.11 of the Regional
15 Transportation Act. The Board of the Regional Transportation
16 Authority may approve the amended budget by an affirmative vote
17 of 12 two-thirds of its then Directors. If the budget is not
18 approved by the Board of the Regional Transportation Authority,
19 the agreement may be reopened and its terms may be
20 renegotiated. Any amended budget which may be prepared
21 following renegotiation shall be presented to the Board of the
22 Regional Transportation Authority for its approval in like
23 manner.
24 (Source: P.A. 83-886.)
 
25     (70 ILCS 3605/34)  (from Ch. 111 2/3, par. 334)

 

 

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1     Sec. 34. Budget and Program. The Authority, subject to the
2 powers of the Regional Transportation Authority in Section 4.11
3 of the Regional Transportation Authority Act, shall control the
4 finances of the Authority. It shall by ordinance appropriate
5 money to perform the Authority's purposes and provide for
6 payment of debts and expenses of the Authority. Each year the
7 Authority shall prepare and publish a comprehensive annual
8 budget and five-year capital program document, and a financial
9 plan for the 2 years thereafter describing the state of the
10 Authority and presenting for the forthcoming fiscal year and
11 the two following years the Authority's plans for such
12 operations and capital expenditures as it intends to undertake
13 and the means by which it intends to finance them. The proposed
14 budget, and financial plan, and five-year capital program shall
15 be based on the Regional Transportation Authority's estimate of
16 funds to be made available to the Authority by or through the
17 Regional Transportation Authority and shall conform in all
18 respects to the requirements established by the Regional
19 Transportation Authority. The proposed program and budget,
20 financial plan, and five-year capital program shall contain a
21 statement of the funds estimated to be on hand at the beginning
22 of the fiscal year, the funds estimated to be received from all
23 sources for such year and the funds estimated to be on hand at
24 the end of such year. After adoption of the Regional
25 Transportation Authority's first Five-Year Program, as
26 provided in Section 2.01 of the Regional Transportation

 

 

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1 Authority Act, the proposed program and budget shall
2 specifically identify any respect in which the recommended
3 program deviates from the Regional Transportation Authority's
4 then existing Five-Year Program, giving the reasons for such
5 deviation. The proposed program and budget, financial plan, and
6 five-year capital program shall be available at no cost for
7 public inspection at the Authority's main office and at the
8 Regional Transportation Authority's main office at least 3
9 weeks prior to any public hearing. Before the proposed budget,
10 and program and financial plan, and five-year capital program
11 are submitted to the Regional Transportation Authority, the
12 Authority shall hold at least one public hearing thereon in
13 each of the counties in which the Authority provides service.
14 All Board members of the Authority shall attend a majority of
15 the public hearings unless reasonable cause is given for their
16 absence. After the public hearings, the Board of the Authority
17 shall hold at least one meeting for consideration of the
18 proposed program and budget with the Cook County Board. After
19 conducting such hearings and holding such meetings and after
20 making such changes in the proposed program and budget,
21 financial plan, and five-year capital program as the Board
22 deems appropriate, it shall adopt an annual budget ordinance at
23 least by November 15th preceding the beginning of each fiscal
24 year. The budget, and program, and financial plan, and
25 five-year capital program shall then be submitted to the
26 Regional Transportation Authority as provided in Section 4.11

 

 

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1 of the Regional Transportation Authority Act. In the event that
2 the Board of the Regional Transportation Authority determines
3 that the budget, and program, and financial plan, and five-year
4 capital program do not meet the standards of said Section 4.11,
5 the Board of the Authority shall make such changes as are
6 necessary to meet such requirements and adopt an amended budget
7 ordinance. The amended budget ordinance shall be resubmitted to
8 the Regional Transportation Authority pursuant to said Section
9 4.11. The ordinance shall appropriate such sums of money as are
10 deemed necessary to defray all necessary expenses and
11 obligations of the Authority, specifying purposes and the
12 objects or programs for which appropriations are made and the
13 amount appropriated for each object or program. Additional
14 appropriations, transfers between items and other changes in
15 such ordinance which do not alter the basis upon which the
16 balanced budget determination was made by the Regional
17 Transportation Authority may be made from time to time by the
18 Board.
19     The budget shall:
20         (i) show a balance between (A) anticipated revenues
21     from all sources including operating subsidies and (B) the
22     costs of providing the services specified and of funding
23     any operating deficits or encumbrances incurred in prior
24     periods, including provision for payment when due of
25     principal and interest on outstanding indebtedness;
26         (ii) show cash balances including the proceeds of any

 

 

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1     anticipated cash flow borrowing sufficient to pay with
2     reasonable promptness all costs and expenses as incurred;
3         (iii) provide for a level of fares or charges and
4     operating or administrative costs for the public
5     transportation provided by or subject to the jurisdiction
6     of the Board sufficient to allow the Board to meet its
7     required system generated revenue recovery ratio as
8     determined in accordance with subsection (a) of Section
9     4.11 of the Regional Transportation Authority Act;
10         (iv) be based upon and employ assumptions and
11     projections which are reasonable and prudent;
12         (v) have been prepared in accordance with sound
13     financial practices as determined by the Board of the
14     Regional Transportation Authority; and
15         (vi) meet such other financial, budgetary, or fiscal
16     requirements that the Board of the Regional Transportation
17     Authority may by rule or regulation establish; and .
18         (vii) be consistent with the goals and objectives
19     adopted by the Regional Transportation Authority in the
20     Strategic Plan.
21     The Board shall establish a fiscal operating year. At least
22 thirty days prior to the beginning of the first full fiscal
23 year after the creation of the Authority, and annually
24 thereafter, the Board shall cause to be prepared a tentative
25 budget which shall include all operation and maintenance
26 expense for the ensuing fiscal year. The tentative budget shall

 

 

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1 be considered by the Board and, subject to any revision and
2 amendments as may be determined, shall be adopted prior to the
3 first day of the ensuing fiscal year as the budget for that
4 year. No expenditures for operations and maintenance in excess
5 of the budget shall be made during any fiscal year except by
6 the affirmative vote of at least five members of the Board. It
7 shall not be necessary to include in the annual budget any
8 statement of necessary expenditures for pensions or retirement
9 annuities, or for interest or principal payments on bonds or
10 certificates, or for capital outlays, but it shall be the duty
11 of the Board to make provision for payment of same from
12 appropriate funds. The Board may not alter its fiscal year
13 without the prior approval of the Board of the Regional
14 Transportation Authority.
15 (Source: P.A. 87-1249.)
 
16     (70 ILCS 3605/46)  (from Ch. 111 2/3, par. 346)
17     Sec. 46. Citizens Advisory Board. The Board shall establish
18 a citizens advisory board composed of 11 residents of those
19 portions of the metropolitan region in which the Authority
20 provides service who have an interest in public transportation,
21 one of whom shall be at least 65 years of age. The members of
22 the advisory board shall be named for 2 year terms, shall
23 select one of their members to serve as chairman and shall
24 serve without compensation. The citizens advisory board shall
25 meet with Board at least quarterly and advise the Board of the

 

 

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1 impact of its policies and programs on the communities it
2 serves. Appointments to the citizens advisory board should, to
3 the greatest extent possible, reflect the ethnic, cultural, and
4 geographic diversity of all persons residing within the
5 metropolitan region in which the Authority provides service.
6 (Source: P.A. 87-226.)
 
7     (70 ILCS 3605/50 new)
8     Sec. 50. Disadvantaged Business Enterprise Contracting and
9 Equal Employment Opportunity Programs. The Authority shall, as
10 soon as is practicable but in no event later than two years
11 after the effective date of this amendatory Act of the 95th
12 General Assembly, establish and maintain a disadvantaged
13 business enterprise contracting program designed to ensure
14 non-discrimination in the award and administration of
15 contracts not covered under a federally mandated disadvantaged
16 business enterprise program. The program shall establish
17 narrowly tailored goals for the participation of disadvantaged
18 business enterprises as the Authority determines appropriate.
19 The goals shall be based on demonstrable evidence of the
20 availability of ready, willing, and able disadvantaged
21 business enterprises relative to all businesses ready,
22 willing, and able to participate on the program's contracts.
23 The program shall require the Authority to monitor the progress
24 of the contractors' obligations with respect to the program's
25 goals. Nothing in this program shall conflict with or interfere

 

 

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1 with the maintenance or operation of, or compliance with, any
2 federally mandated disadvantaged business enterprise program.
3     The Authority shall establish and maintain a program
4 designed to promote equal employment opportunity. Each year, no
5 later than October 1, the Authority shall report to the General
6 Assembly on the number of employees of the Authority and the
7 number of employees who have designated themselves as members
8 of a minority group and gender.
9     Each year no later than October 1, and starting no later
10 than the October 1 after the establishment of the disadvantaged
11 business enterprise contracting program, the Authority shall
12 submit a report with respect to such program to the General
13 Assembly. In addition, no later than October 1 of each year,
14 the Authority shall submit a copy of its federally mandated
15 semi-annual Uniform Report of Disadvantaged Business
16 Enterprises Awards or Commitments and Payments to the General
17 Assembly.
 
18     Section 17. The Local Mass Transit District Act is amended
19 by changing Section 3.1 as follows:
 
20     (70 ILCS 3610/3.1)  (from Ch. 111 2/3, par. 353.1)
21     Sec. 3.1. Also in the manner provided in this Act as
22 amended, a "Local Mass Transit District" may be created with
23 boundary to enclose a unit area of contiguous land, to be known
24 as the "participating area". Such a "participating area" may be

 

 

09500SB0572ham003 - 77 - LRB095 04708 HLH 38603 a

1 organized as a district under this Act without regard to
2 boundaries of counties or other political subdivisions or
3 municipal corporations.
4     (a) Any 500 or more legal voters who are residents within
5 such "participating area" may file a petition in the circuit
6 court of the county where the proposed district or a major part
7 thereof is located, asking that the question of creating such
8 district be submitted under this Act by referendum to the
9 voters residing within the proposed district. By their power of
10 attorney signed by them and filed in the cause the petitioners
11 may authorize a committee of their number named by the
12 petitioners, to conduct and pursue the cause for them to a
13 conclusion. Such petition shall define the boundaries of the
14 proposed district, shall indicate distances to nearest mass
15 transportation lines in each direction, naming them, shall have
16 attached a fair map of the proposed district, and shall suggest
17 a name for the proposed district.
18     (b) The circuit clerk shall present to the circuit judge
19 any petition so filed in the court. The judge shall enter an
20 order of record to set a date, hour and place for judicial
21 hearing on the petition. That order shall include instructions
22 to the circuit clerk to give notice by newspaper publication to
23 be made and completed at least 20 days before the hearing is to
24 be held, in 2 or more newspapers published or circulating
25 generally among the people residing within the proposed
26 district. The circuit clerk shall prepare that notice and cause

 

 

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1 such publication notice to be given as directed.
2     (c) After proof of such newspaper publication of notice has
3 been made and filed in the cause and shown to the court in full
4 accord with the prior order, the circuit judge shall hear all
5 persons who attend and so request, as to location and boundary
6 and name for the proposed district. After the hearing on such
7 petition is completed, the circuit court by an order of record,
8 shall determine and establish the location, name and boundary
9 for such proposed district, and shall order the proposition
10 submitted at an election in accordance with the general
11 election law to the voters resident within such proposed
12 district. The circuit clerk shall certify the proposition to
13 the proper election officials who shall submit the proposition
14 in accordance with the general election law.
15     (d) The county clerk shall canvass the ballots and other
16 returns from such referendum, and prepare a full certification
17 of the result and shall file same in the cause pending in the
18 circuit court. When the vote is in favor of the creation of
19 such district as determined by the court order, a true map of
20 such district shall be filed with such report in the circuit
21 court.
22     (e) When the vote is in favor of creation of such district,
23 the circuit court by an order of record shall confirm the
24 result of election. If the district is wholly contained within
25 a single county the presiding officer of the county board with
26 the advice and consent of the county board shall appoint 5

 

 

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1 trustees, not more than 3 of whom shall be affiliated with the
2 same political party, to govern the district and serve one each
3 for 1, 2, 3, 4 and 5 years respectively; upon the expiration of
4 the term of a trustee who is in office on the effective date of
5 this amendatory Act of 1989, the successor shall, at the time
6 of the appointment, and thereafter at all times while serving
7 as trustee, be a resident of the Mass Transit District for
8 which such person is appointed as trustee. If a trustee removes
9 his residence to a place outside of the District, a trustee
10 shall be appointed in the same manner as herein provided to
11 take the place of the trustee who so removed his residence. If
12 however the district is located in more than one county, the
13 number of trustees who are residents of a county shall be in
14 proportion, as nearly as practicable, to the number of
15 residents of the district who reside in that county in relation
16 to the total population of the district.
17     Upon the expiration of the term of a trustee who is in
18 office on the effective date of this amendatory Act of 1975,
19 the successor shall be a resident of whichever county is
20 entitled to such representation in order to bring about the
21 proportional representation required herein, and he shall be
22 appointed by the county board of that county, or in the case of
23 a home rule county as defined by Article VII, Section 6 of the
24 Constitution of 1970, the chief executive officer of that
25 county, with the advice and consent of the county board in
26 accordance with the provisions previously enumerated.

 

 

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1 Successors shall serve 5 year overlapping terms.
2     Thereafter, each trustee shall be succeeded by a resident
3 of the same county who shall be appointed by the same
4 appointing authority; however, the provisions of the preceding
5 paragraph shall apply to the appointment of the successor to
6 each trustee who is in office at the time of the publication of
7 each decennial Federal census of population.
8     (f) Upon the creation of such district, the circuit clerk
9 shall prepare and certify a copy of the final court order
10 confirming the referendum creating the district, and a
11 duplicate of the map of such district, from the record of the
12 circuit court, and shall file the same with the county clerk
13 for recording in his office as "Certificate of Incorporation"
14 for the district. The county clerk shall cause a duplicate of
15 such "Certificate of Incorporation" to be filed in the office
16 of the Secretary of State of Illinois.
17     (g) The Board of Trustees of such "Local Mass Transit
18 District" shall have and exercise all the powers and shall
19 perform all the duties of any Board of Trustees of any district
20 created under this Act, as now or hereafter amended.
21     (h) The circuit court shall require the petitioners to post
22 a surety bond for the payment of all costs and expenses of such
23 proceeding and such referendum. When a district is created, the
24 circuit court shall order the district to pay or reimburse
25 others for all such costs and expenses. The surety bond shall
26 not be released until complete receipts for all such costs and

 

 

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1 expenses have been filed in the cause and fully audited by the
2 circuit and county clerks.
3     (i) If the District is wholly contained within a single
4 county, the County Board of such county may, by resolution,
5 provide that, effective upon the next appointment of a Trustee,
6 after the effective date of this amendatory Act of 1989, that
7 the Board of Trustees of such Mass Transit District shall be
8 comprised of 7 Trustees, with no more than 4 members of the
9 same political party. This Subsection shall not apply to any
10 Mass Transit District in the State which receives funding in
11 whole or in part from the Regional Transportation Authority or
12 any of its service boards.
13     (j) The Board of a district whose participating area: (i)
14 is entirely within a single county; and (ii) when created, was
15 defined by township boundaries may, by an ordinance adopted by
16 the affirmative vote of two-thirds of the members of the Board,
17 provide that the participating area of the district be
18 coterminous and expand with the boundaries of the townships
19 that originally established the district's participating area.
20 The Board shall hold at least one public hearing on the
21 proposed ordinance and shall give notice of any such hearing by
22 newspaper publication to be made at least 20 days before the
23 hearing in 2 or more newspapers published or circulated
24 generally among persons residing in the townships of the
25 district. If the Board approves an ordinance under this
26 subsection, the secretary of the district's Board shall file a

 

 

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1 certified copy of the ordinance with the County Clerk of the
2 county in which the district is located. A district formed
3 under this Section and meeting the requirements of this
4 subsection shall be entitled to make its boundaries coterminous
5 with the boundaries of the townships regardless of when the
6 district was formed. If such an ordinance is adopted, the
7 district's boundaries shall encompass all areas located within
8 the townships at the time of the adoption of the ordinance and
9 all areas that become part of the townships at a future date.
10 Nothing in this subsection shall allow expansion of a district
11 into an area that is already a part of another local mass
12 transit district.
13 (Source: P.A. 86-472.)
 
14     Section 20. The Regional Transportation Authority Act is
15 amended by changing Sections 1.02, 2.01, 2.04, 2.05, 2.09,
16 2.12, 2.14, 2.18a, 2.30, 3.01, 3.03, 3.04, 3.05, 3A.10, 3A.11,
17 3A.14, 3B.02, 3B.03, 3B.05, 3B.07, 3B.09, 3B.10, 3B.11, 3B.12,
18 3B.13, 4.01, 4.02, 4.02a, 4.02b, 4.03, 4.04, 4.09, 4.11, 4.13,
19 4.14, and 5.01 and by adding Section 2.01a, 2.01b, 2.01c,
20 2.01d, 2.01e, 2.12b, 2.31, and 4.03.3 as follows:
 
21     (70 ILCS 3615/1.02)  (from Ch. 111 2/3, par. 701.02)
22     Sec. 1.02. Findings and Purpose. (a) The General Assembly
23 finds;
24     (i) Public transportation is, as provided in Section 7 of

 

 

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1 Article XIII of the Illinois Constitution, an essential public
2 purpose for which public funds may be expended and that Section
3 authorizes the State to provide financial assistance to units
4 of local government for distribution to providers of public
5 transportation. There is an urgent need to reform and continue
6 a unit of local government to assure the proper management of
7 public transportation and to receive and distribute State or
8 federal operating assistance and to raise and distribute
9 revenues for local operating assistance. System generated
10 revenues are not adequate for such service and a public need
11 exists to provide for, aid and assist public transportation in
12 the northeastern area of the State, consisting of Cook, DuPage,
13 Kane, Lake, McHenry and Will Counties.
14     (ii) Comprehensive and coordinated regional public
15 transportation is essential to the public health, safety and
16 welfare. It is essential to economic well-being, maintenance of
17 full employment, conservation of sources of energy and land for
18 open space and reduction of traffic congestion and for
19 providing and maintaining a healthful environment for the
20 benefit of present and future generations in the metropolitan
21 region. Public transportation improves the mobility of the
22 public and improves access to jobs, commercial facilities,
23 schools and cultural attractions. Public transportation
24 decreases air pollution and other environmental hazards
25 resulting from excessive use of automobiles and allows for more
26 efficient land use and planning.

 

 

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1     (iii) Because system generated receipts are not presently
2 adequate, public transportation facilities and services in the
3 northeastern area are in grave financial condition. With
4 existing methods of financing, coordination and management,
5 and relative convenience of automobiles, such public
6 transportation facilities are not providing adequate public
7 transportation to insure the public health, safety and welfare.
8     (iv) Additional commitments to the special public
9 transportation needs problems of the disabled handicapped, the
10 economically disadvantaged, and the elderly are necessary.
11     (v) To solve these problems, it is necessary to provide for
12 the creation of a regional transportation authority with the
13 powers necessary to insure adequate public transportation.
14     (b) The General Assembly further finds, in connection with
15 this amendatory Act of 1983:
16     (i) Substantial, recurring deficits in the operations of
17 public transportation services subject to the jurisdiction of
18 the Regional Transportation Authority and periodic cash
19 shortages have occurred either of which could bring about a
20 loss of public transportation services throughout the
21 metropolitan region at any time;
22     (ii) A substantial or total loss of public transportation
23 services or any segment thereof would create an emergency
24 threatening the safety and well-being of the people in the
25 northeastern area of the State; and
26     (iii) To meet the urgent needs of the people of the

 

 

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1 metropolitan region that such an emergency be averted and to
2 provide financially sound methods of managing the provision of
3 public transportation services in the northeastern area of the
4 State, it is necessary, while maintaining and continuing the
5 existing Authority, to modify the powers and responsibilities
6 of the Authority, to reallocate responsibility for operating
7 decisions, to change the composition and appointment of the
8 Board of Directors thereof, and to immediately establish a new
9 Board of Directors.
10     (c) The General Assembly further finds in connection with
11 this amendatory Act of the 95th General Assembly:
12     (i) The economic vitality of northeastern Illinois
13 requires regionwide and systemwide efforts to increase
14 ridership on the transit systems, constrain road congestion
15 within the metropolitan region, and allocate resources for
16 transportation so as to assist in the development of an
17 adequate, efficient, and coordinated regional transportation
18 system that is in a state of good repair.
19     (ii) To achieve the purposes of this amendatory Act of the
20 95th General Assembly, the powers and duties of the Authority
21 must be enhanced to improve overall planning and coordination,
22 to achieve an integrated and efficient regional transit system,
23 to advance the mobility of transit users, and to increase
24 financial transparency of the Authority and the Service Boards.
25     (d) (c) It is the purpose of this Act to provide for, aid
26 and assist public transportation in the northeastern area of

 

 

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1 the State without impairing the overall quality of existing
2 public transportation by providing for the creation of a single
3 authority responsive to the people and elected officials of the
4 area and with the power and competence to develop, implement,
5 and enforce plans that promote adequate, efficient, and
6 coordinated public transportation, provide financial review of
7 the providers of public transportation in the metropolitan
8 region and facilitate public transportation provided by
9 Service Boards which is attractive and economical to users,
10 comprehensive, coordinated among its various elements,
11 economical, safe, efficient and coordinated with area and State
12 plans.
13 (Source: P.A. 83-885; 83-886.)
 
14     (70 ILCS 3615/2.01)  (from Ch. 111 2/3, par. 702.01)
15     Sec. 2.01. General Allocation of Responsibility for Public
16 Transportation. Provision of Public Transportation - Review
17 and Program.
18     (a) In order to accomplish the its purposes as set forth in
19 this Act, the responsibility for planning, operating, and
20 funding public transportation in the metropolitan region shall
21 be allocated as described in this Act. The Authority shall:
22         (i) adopt plans that implement the public policy of the
23     State to provide adequate, efficient, and coordinated
24     public transportation throughout the metropolitan region;
25         (ii) set goals, objectives, and standards for the

 

 

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1     Authority, the Service Boards, and transportation
2     agencies;
3         (iii) develop performance measures to inform the
4     public about the extent to which the provision of public
5     transportation in the metropolitan region meets those
6     goals, objectives, and standards;
7         (iv) allocate operating and capital funds made
8     available to support public transportation in the
9     metropolitan region;
10         (v) provide financial oversight of the Service Boards;
11     and
12         (vi) coordinate the provision of public transportation
13     and the investment in public transportation facilities to
14     enhance the integration of public transportation
15     throughout the metropolitan region, all as provided in this
16     Act.
17     The the Service Boards shall, on a continuing basis
18 determine the level, nature and kind of public transportation
19 which should be provided for the metropolitan region in order
20 to meet the plans, goals, objectives, and standards adopted by
21 the Authority. The Service Boards may provide public
22 transportation by purchasing such service from transportation
23 agencies through purchase of service agreements, by grants to
24 such agencies or by operating such service, all pursuant to
25 this Act and the "Metropolitan Transit Authority Act", as now
26 or hereafter amended. Certain of its actions to implement the

 

 

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1 responsibilities allocated to the Authority in this subsection
2 (a) shall be taken in 3 public documents adopted by the
3 affirmative vote of at least 12 of its then Directors: A
4 Strategic Plan; a Five-Year Capital Program; and an Annual
5 Budget and Two-Year Financial Plan. The Authority shall
6 establish a policy to provide adequate public transportation
7 throughout the metropolitan region.
8     (b) The Authority shall subject the operating and capital
9 plans and expenditures of the Service Boards in the
10 metropolitan region with regard to public transportation to
11 continuing review so that the Authority may budget and expend
12 its funds with maximum effectiveness and efficiency. The
13 Authority shall conduct audits of each of the Service Boards no
14 less than every 5 years. Such audits may include management,
15 performance, financial, and infrastructure condition audits.
16 The Authority may conduct management, performance, financial,
17 and infrastructure condition audits of transportation agencies
18 that receive funds from the Authority. The Authority may direct
19 a Service Board to conduct any such audit of a transportation
20 agency that receives funds from such Service Board, and the
21 Service Board shall comply with such request to the extent it
22 has the right to do so. These audits of the Service Boards or
23 transportation agencies may be project or service specific
24 audits to evaluate their achievement of the goals and
25 objectives of that project or service and their compliance with
26 any applicable requirements. Certain of its recommendations in

 

 

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1 this regard shall be set forth in 2 public documents, the
2 Five-Year Program provided for in this Section and an Annual
3 Budget and Program provided for in Section 4.01.
4     (c) The Authority shall, in consultation with the Service
5 Boards, each year prepare and, by ordinance, adopt, after
6 public hearings held in each county in the metropolitan region,
7 a Five-Year Program to inform the public and government
8 officials of the Authority's objectives and program for
9 operations and capital development during the forthcoming
10 five-year period. The Five-Year Program shall set forth the
11 standards of service which the public may expect; each Service
12 Board's plans for coordinating routes and service of the
13 various transportation agencies; the anticipated expense of
14 providing public transportation at standards of service then
15 existing and under alternative operating programs; the nature,
16 location and expense of anticipated capital improvements
17 exceeding $250,000, by specific item and by fiscal year; and
18 such demographic and other data developed by planning and other
19 related agencies, as the Authority shall consider pertinent to
20 the Service Boards' decisions as to levels and nature of
21 service, including without limitation the patterns of
22 population density and growth, projected commercial and
23 residential development, environmental factors and the
24 availability of alternative modes of transportation. The
25 Five-Year Program shall be adopted on the affirmative votes of
26 9 of the then Directors.

 

 

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1 (Source: P.A. 83-886.)
 
2     (70 ILCS 3615/2.01a new)
3     Sec. 2.01a. Strategic Plan.
4     (a) By the affirmative vote of at least 12 of its then
5 Directors, the Authority shall adopt a Strategic Plan, no less
6 than every 5 years, after consultation with the Service Boards
7 and after holding a minimum of 3 public hearings in Cook County
8 and one public hearing in each of the other counties in the
9 region. The Executive Director of the Authority shall review
10 the Strategic Plan on an ongoing basis and make recommendations
11 to the Board of the Authority with respect to any update or
12 amendment of the Strategic Plan. The Strategic Plan shall
13 describe the specific actions to be taken by the Authority and
14 the Service Boards to provide adequate, efficient, and
15 coordinated public transportation.
16     (b) The Strategic Plan shall identify goals and objectives
17 with respect to:
18         (i) increasing ridership and passenger miles on public
19     transportation funded by the Authority;
20         (ii) coordination of public transportation services
21     and the investment in public transportation facilities to
22     enhance the integration of public transportation
23     throughout the metropolitan region;
24         (iii) coordination of fare and transfer policies to
25     promote transfers by riders among Service Boards,

 

 

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1     transportation agencies, and public transportation modes,
2     which may include goals and objectives for development of a
3     universal fare instrument that riders may use
4     interchangeably on all public transportation funded by the
5     Authority, and methods to be used to allocate revenues from
6     transfers;
7         (iv) improvements in public transportation facilities
8     to bring those facilities into a state of good repair,
9     enhancements that attract ridership and improve customer
10     service, and expansions needed to serve areas with
11     sufficient demand for public transportation;
12         (v) access for transit-dependent populations,
13     including access by low-income communities to places of
14     employment, utilizing analyses provided by the Chicago
15     Metropolitan Agency for Planning regarding employment and
16     transportation availability, and giving consideration to
17     the location of employment centers in each county and the
18     availability of public transportation at off-peak hours
19     and on weekends;
20         (vi) the financial viability of the public
21     transportation system, including both operating and
22     capital programs;
23         (vii) limiting road congestion within the metropolitan
24     region and enhancing transit options to improve mobility;
25     and
26         (viii) such other goals and objectives that advance the

 

 

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1     policy of the State to provide adequate, efficient, and
2     coordinated public transportation in the metropolitan
3     region.
4     (c) The Strategic Plan shall establish the process and
5 criteria by which proposals for capital improvements by a
6 Service Board or a transportation agency will be evaluated by
7 the Authority for inclusion in the Five-Year Capital Program,
8 which may include criteria for:
9         (i) allocating funds among maintenance, enhancement,
10     and expansion improvements;
11         (ii) projects to be funded from the Innovation,
12     Coordination, and Enhancement Fund;
13         (iii) projects intended to improve or enhance
14     ridership or customer service;
15         (iv) design and location of station or transit
16     improvements intended to promote transfers, increase
17     ridership, and support transit-oriented land development;
18         (v) assessing the impact of projects on the ability to
19     operate and maintain the existing transit system; and
20         (vi) other criteria that advance the goals and
21     objectives of the Strategic Plan.
22     (d) The Strategic Plan shall establish performance
23 standards and measurements regarding the adequacy, efficiency,
24 and coordination of public transportation services in the
25 region and the implementation of the goals and objectives in
26 the Strategic Plan. At a minimum, such standards and measures

 

 

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1 shall include customer-related performance data measured by
2 line, route, or sub-region, as determined by the Authority, on
3 the following:
4         (i) travel times and on-time performance;
5         (ii) ridership data;
6         (iii) equipment failure rates;
7         (iv) employee and customer safety; and
8         (v) customer satisfaction.
9     The Service Boards and transportation agencies that
10 receive funding from the Authority or Service Boards shall
11 prepare, publish, and submit to the Authority such reports with
12 regard to these standards and measurements in the frequency and
13 form required by the Authority; however, the frequency of such
14 reporting shall be no less than annual. The Service Boards
15 shall publish such reports on their respective websites. The
16 Authority shall compile and publish such reports on its
17 website. Such performance standards and measures shall not be
18 used as the basis for disciplinary action against any employee
19 of the Authority or Service Boards, except to the extent the
20 employment and disciplinary practices of the Authority or
21 Service Board provide for such action.
22     (e) The Strategic Plan shall identify innovations to
23 improve the delivery of public transportation and the
24 construction of public transportation facilities.
25     (f) The Strategic Plan shall describe the expected
26 financial condition of public transportation in the

 

 

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1 metropolitan region prospectively over a 10-year period, which
2 may include information about the cash position and all known
3 obligations of the Authority and the Service Boards including
4 operating expenditures, debt service, contributions for
5 payment of pension and other post-employment benefits, the
6 expected revenues from fares, tax receipts, grants from the
7 federal, State, and local governments for operating and capital
8 purposes and issuance of debt, the availability of working
9 capital, and the resources needed to achieve the goals and
10 objectives described in the Strategic Plan.
11     (g) In developing the Strategic Plan, the Authority shall
12 rely on such demographic and other data, forecasts, and
13 assumptions developed by the Chicago Metropolitan Agency for
14 Planning with respect to the patterns of population density and
15 growth, projected commercial and residential development, and
16 environmental factors, within the metropolitan region and in
17 areas outside the metropolitan region that may impact public
18 transportation utilization in the metropolitan region. Before
19 adopting or amending any Strategic Plan, the Authority shall
20 consult with the Chicago Metropolitan Agency for Planning
21 regarding the consistency of the Strategic Plan with the
22 Regional Comprehensive Plan adopted pursuant to the Regional
23 Planning Act.
24     (h) The Authority may adopt, by the affirmative vote of at
25 least 12 of its then Directors, sub-regional or corridor plans
26 for specific geographic areas of the metropolitan region in

 

 

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1 order to improve the adequacy, efficiency, and coordination of
2 existing, or the delivery of new, public transportation. Such
3 plans may also address areas outside the metropolitan region
4 that may impact public transportation utilization in the
5 metropolitan region. In preparing a sub-regional or corridor
6 plan, the Authority may identify changes in operating practices
7 or capital investment in the sub-region or corridor that could
8 increase ridership, reduce costs, improve coordination, or
9 enhance transit-oriented development. The Authority shall
10 consult with any affected Service Boards in the preparation of
11 any sub-regional or corridor plans.
12     (i) If the Authority determines, by the affirmative vote of
13 at least 12 of its then Directors, that, with respect to any
14 proposed new public transportation service or facility, (i)
15 multiple Service Boards or transportation agencies are
16 potential service providers and (ii) the public transportation
17 facilities to be constructed or purchased to provide that
18 service have an expected construction cost of more than
19 $25,000,000, the Authority shall have sole responsibility for
20 conducting any alternatives analysis and preliminary
21 environmental assessment required by federal or State law.
22 Nothing in this subparagraph (i) shall prohibit a Service Board
23 from undertaking alternatives analysis and preliminary
24 environmental assessment for any public transportation service
25 or facility identified in items (i) and (ii) above that is
26 included in the Five-Year Capital Program as of the effective

 

 

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1 date of this amendatory Act of the 95th General Assembly;
2 however, any expenditure related to any such public
3 transportation service or facility must be included in a
4 Five-Year Capital Program under the requirements of Sections
5 2.01b and 4.02 this Act.
 
6     (70 ILCS 3615/2.01b new)
7     Sec. 2.01b. The Five-Year Capital Program. By the
8 affirmative vote of at least 12 of its then Directors, the
9 Authority, after consultation with the Service Boards and after
10 holding a minimum of 3 public hearings in Cook County and one
11 public hearing in each of the other counties in the
12 metropolitan region, shall each year adopt a Five-Year Capital
13 Program that shall include each capital improvement to be
14 undertaken by or on behalf of a Service Board provided that the
15 Authority finds that the improvement meets any criteria for
16 capital improvements contained in the Strategic Plan, is not
17 inconsistent with any sub-regional or corridor plan adopted by
18 the Authority, and can be funded within amounts available with
19 respect to the capital and operating costs of such improvement.
20 In reviewing proposals for improvements to be included in a
21 Five-Year Capital Program, the Authority may give priority to
22 improvements that are intended to bring public transportation
23 facilities into a state of good repair. The Five-Year Capital
24 Program shall also identify capital improvements to be
25 undertaken by a Service Board, a transportation agency, or a

 

 

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1 unit of local government and funded by the Authority from
2 amounts in the Innovation, Coordination, and Enhancement Fund,
3 provided that no improvement that is included in the Five-Year
4 Capital Program as of the effective date of this amendatory Act
5 of the 95th General Assembly may receive funding from the
6 Innovation, Coordination, and Enhancement Fund. Before
7 adopting a Five-Year Capital Program, the Authority shall
8 consult with the Chicago Metropolitan Agency for Planning
9 regarding the consistency of the Five-Year Capital Program with
10 the Regional Comprehensive Plan adopted pursuant to the
11 Regional Planning Act.
 
12     (70 ILCS 3615/2.01c new)
13     Sec. 2.01c. Innovation, Coordination, and Enhancement
14 Fund.
15     (a) The Authority shall establish an Innovation,
16 Coordination, and Enhancement Fund and each year deposit into
17 the Fund the amounts directed by Section 4.03.3 of this Act.
18 Amounts on deposit in such Fund and interest and other earnings
19 on those amounts may be used by the Authority, upon the
20 affirmative vote of 12 of its then Directors, and after a
21 public participation process, for operating or capital grants
22 or loans to Service Boards, transportation agencies, or units
23 of local government that advance the goals and objectives
24 identified by the Authority in its Strategic Plan, provided
25 that no improvement that has been included in a Five-Year

 

 

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1 Capital Program as of the effective date of this amendatory Act
2 of the 95th General Assembly may receive any funding from the
3 Innovation, Coordination, and Enhancement Fund. Unless the
4 Board has determined by a vote of 12 of its then Directors that
5 an emergency exists requiring the use of some or all of the
6 funds then in the Innovation, Coordination, and Enhancement
7 Fund, such funds may only be used to enhance the coordination
8 and integration of public transportation and develop and
9 implement innovations to improve the quality and delivery of
10 public transportation.
11     (b) Any grantee that receives funds from the Innovation,
12 Coordination, and Enhancement Fund for the operation of
13 eligible programs must (i) implement such programs within one
14 year of receipt of such funds and (ii) within 2 years following
15 commencement of any program utilizing such funds, determine
16 whether it is desirable to continue the program, and upon such
17 a determination, either incorporate such program into its
18 annual operating budget and capital program or discontinue such
19 program. No additional funds from the Innovation,
20 Coordination, and Enhancement Fund may be distributed to a
21 grantee for any individual program beyond 2 years unless the
22 Authority by the affirmative vote of at least 12 of its then
23 Directors waives this limitation. Any such waiver will be with
24 regard to an individual program and with regard to a one
25 year-period, and any further waivers for such individual
26 program require a subsequent vote of the Board.
 

 

 

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1     (70 ILCS 3615/2.01d new)
2     Sec. 2.01d. ADA Paratransit Fund. The Authority shall
3 establish an ADA Paratransit Fund and, each year, deposit into
4 that Fund the amounts directed by Section 4.03.3 of this Act.
5 The amounts on deposit in the Fund and interest and other
6 earnings on those amounts shall be used by the Authority to
7 make grants to the Suburban Bus Board for ADA paratransit
8 services provided pursuant to plans approved by the Authority
9 under Section 2.30 of this Act. Funds received by the Suburban
10 Bus Board from the Authority's ADA Paratransit Fund shall be
11 used only to provide ADA paratransit services to individuals
12 who are determined to be eligible for such services by the
13 Authority under the Americans with Disabilities Act of 1990 and
14 its implementing regulations. Revenues from and costs of
15 services provided by the Suburban Bus Board with grants made
16 under this Section shall be included in the Annual Budget and
17 Two-Year Financial Program of the Suburban Bus Board and shall
18 be subject to all budgetary and financial requirements under
19 this Act that apply to ADA paratransit services. Beginning in
20 2008, the Executive Director shall, no later than August 15 of
21 each year, provide to the Board a written determination of the
22 projected annual costs of ADA paratransit services that are
23 required to be provided pursuant to the Americans with
24 Disabilities Act of 1990 and its implementing regulations. The
25 Authority shall conduct triennial financial, compliance, and

 

 

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1 performance audits of ADA paratransit services to assist in
2 this determination.
 
3     (70 ILCS 3615/2.01e new)
4     Sec. 2.01e. Suburban Community Mobility Fund. The
5 Authority shall establish a Suburban Community Mobility Fund
6 and, each year, deposit into that Fund the amounts directed by
7 Section 4.03.3 of this Act. The amounts on deposit in the Fund
8 and interest and other earnings on those amounts shall be used
9 by the Authority to make project specific grants to the
10 Suburban Bus Board, on such terms and conditions as the
11 Authority may establish, for the purpose of operating transit
12 services, other than traditional fixed-route services, that
13 enhance suburban mobility, including, but not limited to,
14 demand-responsive transit services, ride sharing, van pooling,
15 service coordination, centralized dispatching and call taking,
16 reverse commuting, service restructuring, and bus rapid
17 transit. Revenues from and costs of services provided by the
18 Suburban Bus Board with moneys from the Suburban Community
19 Mobility Fund shall be included in the Annual Budget and
20 Two-Year Financial Program of the Suburban Bus Board and shall
21 be subject to all budgetary and financial requirements under
22 this Act.
 
23     (70 ILCS 3615/2.04)  (from Ch. 111 2/3, par. 702.04)
24     Sec. 2.04. Fares and Nature of Service.

 

 

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1     (a) Whenever a Service Board provides any public
2 transportation by operating public transportation facilities,
3 the Service Board shall provide for the level and nature of
4 fares or charges to be made for such services, and the nature
5 and standards of public transportation to be so provided that
6 meet the goals and objectives adopted by the Authority in the
7 Strategic Plan. Provided, however that if the Board adopts a
8 budget and financial plan for a Service Board in accordance
9 with the provisions in Section 4.11(b)(5), the Board may
10 consistent with the terms of any purchase of service contract
11 provide for the level and nature of fares to be made for such
12 services under the jurisdiction of that Service Board, and the
13 nature and standards of public transportation to be so
14 provided.
15     (b) Whenever a Service Board provides any public
16 transportation pursuant to grants made after June 30, 1975, to
17 transportation agencies for operating expenses (other than
18 with regard to experimental programs) or pursuant to any
19 purchase of service agreement, the purchase of service
20 agreement or grant contract shall provide for the level and
21 nature of fares or charges to be made for such services, and
22 the nature and standards of public transportation to be so
23 provided. A Service Board shall require all transportation
24 agencies with which it contracts, or from which it purchases
25 transportation services or to which it makes grants to provide
26 half fare transportation for their student riders if any of

 

 

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1 such agencies provide for half fare transportation to their
2 student riders.
3     (c) In so providing for the fares or charges and the nature
4 and standards of public transportation, any purchase of service
5 agreements or grant contracts shall provide, among other
6 matters, for the terms or cost of transfers or interconnections
7 between different modes of transportation and different public
8 transportation agencies, schedules or routes of such service,
9 changes which may be made in such service, the nature and
10 condition of the facilities used in providing service, the
11 manner of collection and disposition of fares or charges, the
12 records and reports to be kept and made concerning such
13 service, and for interchangeable tickets or other coordinated
14 or uniform methods of collection of charges, and shall further
15 require that the transportation agency comply with any
16 determination made by the Board of the Authority under and
17 subject to the provisions of Section 2.12b of this Act. In
18 regard to any such service, the Authority and the Service
19 Boards shall give attention to and may undertake programs to
20 promote use of public transportation and to provide coordinated
21 ticket sales and passenger information. In the case of a grant
22 to a transportation agency which remains subject to Illinois
23 Commerce Commission supervision and regulation, the Service
24 Boards shall exercise the powers set forth in this Section in a
25 manner consistent with such supervision and regulation by the
26 Illinois Commerce Commission.

 

 

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1 (Source: P.A. 83-886.)
 
2     (70 ILCS 3615/2.05)  (from Ch. 111 2/3, par. 702.05)
3     Sec. 2.05. Centralized Services; Acquisition and
4 Construction.
5     (a) The Authority may at the request of two or more Service
6 Boards, serve, or designate a Service Board to serve, as a
7 centralized purchasing agent for the Service Boards so
8 requesting.
9     (b) The Authority may at the request of two or more Service
10 Boards perform other centralized services such as ridership
11 information and transfers between services under the
12 jurisdiction of the Service Boards where such centralized
13 services financially benefit the region as a whole. Provided,
14 however, that the Board may require transfers only upon an
15 affirmative vote of 12 9 of its then Directors.
16     (c) A Service Board or the Authority may for the benefit of
17 a Service Board, to meet its purposes, construct or acquire any
18 public transportation facility for use by a Service Board or
19 for use by any transportation agency and may acquire any such
20 facilities from any transportation agency, including also
21 without limitation any reserve funds, employees' pension or
22 retirement funds, special funds, franchises, licenses,
23 patents, permits and papers, documents and records of the
24 agency. In connection with any such acquisition from a
25 transportation agency the Authority may assume obligations of

 

 

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1 the transportation agency with regard to such facilities or
2 property or public transportation operations of such agency.
3     In connection with any construction or acquisition, the
4 Authority shall make relocation payments as may be required by
5 federal law or by the requirements of any federal agency
6 authorized to administer any federal program of aid.
7     (d) The Authority shall, after consulting with the Service
8 Boards, develop regionally coordinated and consolidated sales,
9 marketing, advertising, and public information programs that
10 promote the use and coordination of, and transfers among,
11 public transportation services in the metropolitan region. The
12 Authority shall develop and adopt, with the affirmative vote of
13 at least 12 of its then Directors, rules and regulations for
14 the Authority and the Service Boards regarding such programs to
15 ensure that the Service Boards' independent programs conform
16 with the Authority's regional programs.
17 (Source: P.A. 83-886.)
 
18     (70 ILCS 3615/2.09)  (from Ch. 111 2/3, par. 702.09)
19     Sec. 2.09. Research and Development.
20     (a) The Authority and the Service Boards shall study public
21 transportation problems and developments; encourage
22 experimentation in developing new public transportation
23 technology, financing methods, and management procedures;
24 conduct, in cooperation with other public and private agencies,
25 studies and demonstration and development projects to test and

 

 

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1 develop methods for improving public transportation, for
2 reducing its costs to users or for increasing public use; and
3 conduct, sponsor, and participate in other studies and
4 experiments, which may include fare demonstration programs,
5 useful to achieving the purposes of this Act. The cost for any
6 such item authorized by this Section may be exempted by the
7 Board in a budget ordinance from the "costs" included in
8 determining that the Authority and its service boards meet the
9 farebox recovery ratio or system generated revenues recovery
10 ratio requirements of Sections 3A.10, 3B.10, 4.01(b), 4.09 and
11 4.11 of this Act and Section 34 of the Metropolitan Transit
12 Authority Act during the Authority's fiscal year which begins
13 January 1, 1986 and ends December 31, 1986, provided that the
14 cost of any item authorized herein must be specifically
15 approved within the budget adopted pursuant to Sections 4.01
16 and 4.11 of this Act for that fiscal year.
17     (b) To improve public transportation service in areas of
18 the metropolitan region with limited access to commuter rail
19 service, the Authority and the Suburban Bus Division shall
20 evaluate the feasibility of implementing new bus rapid transit
21 services using the expressway and tollway systems in the
22 metropolitan region. The Illinois Department of Transportation
23 and the Illinois Toll Highway Authority shall work
24 cooperatively with the Authority and the Suburban Bus Division
25 in that evaluation and in the implementation of bus rapid
26 transit services. The Authority and the Suburban Bus Division,

 

 

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1 in cooperation with the Illinois Department of Transportation,
2 shall develop a bus rapid transit demonstration project on
3 Interstate 55 located in Will, DuPage, and Cook counties. This
4 demonstration project shall test and refine approaches to bus
5 rapid transit operations in the expressway or tollway shoulder
6 or regular travel lanes and shall investigate technology
7 options that facilitate the shared use of the transit lane and
8 provide revenue for financing construction and operation of
9 public transportation facilities.
10     (c) The Suburban Bus Division and the Authority shall
11 cooperate in the development, funding, and operation of
12 programs to enhance access to job markets for residents in
13 southeast suburban Cook County.
14 (Source: P.A. 84-939.)
 
15     (70 ILCS 3615/2.12)  (from Ch. 111 2/3, par. 702.12)
16     Sec. 2.12. Coordination with Planning Agencies. The
17 Authority and the Service Boards shall cooperate with the
18 various public agencies charged with responsibility for
19 long-range or comprehensive planning for the metropolitan
20 region. The Authority shall utilize the official forecasts and
21 plans of the Chicago Metropolitan Agency for Planning in
22 developing the Strategic Plan and the Five-Year Capital
23 Program. The Authority and the Service Boards shall, prior to
24 the adoption of any Strategic Plan, as provided in Section
25 2.01a of this Act, or the adoption of any Five-Year Capital

 

 

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1 Program, as provided in paragraph (b) of Section 2.01b 2.01 of
2 this Act, submit its proposals to such agencies for review and
3 comment. The Authority and the Service Boards may make use of
4 existing studies, surveys, plans, data and other materials in
5 the possession of any State agency or department, any planning
6 agency or any unit of local government.
7 (Source: P.A. 83-886.)
 
8     (70 ILCS 3615/2.12b new)
9     Sec. 2.12b. Coordination of Fares and Service. Upon the
10 request of a Service Board, the Executive Director of the
11 Authority may, upon the affirmative vote of 9 of the then
12 Directors of the Authority, intervene in any matter involving
13 (i) a dispute between Service Boards or a Service Board and a
14 transportation agency providing service on behalf of a Service
15 Board with respect to the terms of transfer between, and the
16 allocation of revenues from fares and charges for,
17 transportation services provided by the parties or (ii) a
18 dispute between 2 Service Boards with respect to coordination
19 of service, route duplication, or a change in service. Any
20 Service Board or transportation agency involved in such dispute
21 shall meet with the Executive Director, cooperate in good faith
22 to attempt to resolve the dispute, and provide any books,
23 records, and other information requested by the Executive
24 Director. If the Executive Director is unable to mediate a
25 resolution of any dispute, he or she may provide a written

 

 

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1 determination recommending a change in the fares or charges or
2 the allocation of revenues for such service or directing a
3 change in the nature or provider of service that is the subject
4 of the dispute. The Executive Director shall base such
5 determination upon the goals and objectives of the Strategic
6 Plan established pursuant to Section 2.01a(b). Such
7 determination shall be presented to the Board of the Authority
8 and, if approved by the affirmative vote of at least 9 of the
9 then Directors of the Authority, shall be final and shall be
10 implemented by any affected Service Board and transportation
11 agency within the time frame required by the determination.
 
12     (70 ILCS 3615/2.14)  (from Ch. 111 2/3, par. 702.14)
13     Sec. 2.14. Appointment of Officers and Employees. The
14 Authority may appoint, retain and employ officers, attorneys,
15 agents, engineers and employees. The officers shall include an
16 Executive Director, who shall be the chief executive officer of
17 the Authority, appointed by the Chairman with the concurrence
18 of 11 9 of the other then Directors of the Board. The Executive
19 Director shall organize the staff of the Authority, shall
20 allocate their functions and duties, shall transfer such staff
21 to the Suburban Bus Division and the Commuter Rail Division as
22 is sufficient to meet their purposes, shall fix compensation
23 and conditions of employment of the staff of the Authority, and
24 consistent with the policies of and direction from the Board,
25 take all actions necessary to achieve its purposes, fulfill its

 

 

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1 responsibilities and carry out its powers, and shall have such
2 other powers and responsibilities as the Board shall determine.
3 The Executive Director must be an individual of proven
4 transportation and management skills and may not be a member of
5 the Board. The Authority may employ its own professional
6 management personnel to provide professional and technical
7 expertise concerning its purposes and powers and to assist it
8 in assessing the performance of the Service Boards in the
9 metropolitan region.
10     No unlawful discrimination, as defined and prohibited in
11 the Illinois Human Rights Act, shall be made in any term or
12 aspect of employment nor shall there be discrimination based
13 upon political reasons or factors. The Authority shall
14 establish regulations to insure that its discharges shall not
15 be arbitrary and that hiring and promotion are based on merit.
16     The Authority shall be subject to the "Illinois Human
17 Rights Act", as now or hereafter amended, and the remedies and
18 procedure established thereunder. The Authority shall file an
19 affirmative action program for employment by it with the
20 Department of Human Rights to ensure that applicants are
21 employed and that employees are treated during employment,
22 without regard to unlawful discrimination. Such affirmative
23 action program shall include provisions relating to hiring,
24 upgrading, demotion, transfer, recruitment, recruitment
25 advertising, selection for training and rates of pay or other
26 forms of compensation.

 

 

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1 (Source: P.A. 83-886.)
 
2     (70 ILCS 3615/2.18a)  (from Ch. 111 2/3, par. 702.18a)
3     Sec. 2.18a. (a) The provisions of this Section apply to
4 collective bargaining agreements (including extensions and
5 amendments to existing agreements) between Service Boards or
6 transportation agencies subject to the jurisdiction of Service
7 Boards and their employees, which are entered into after
8 January 1, 1984.
9     (b) The Authority shall approve amended budgets prepared by
10 Service Boards which incorporate the costs of collective
11 bargaining agreements between Service Boards and their
12 employees. The Authority shall approve such an amended budget
13 provided that it determines by the affirmative vote of 12 9 of
14 its then members that the amended budget meets the standards
15 established in Section 4.11.
16 (Source: P.A. 83-886.)
 
17     (70 ILCS 3615/2.30)
18     Sec. 2.30. Paratransit services.
19     (a) For purposes of this Act, "ADA paratransit services"
20 shall mean those comparable or specialized transportation
21 services provided by, or under grant or purchase of service
22 contracts of, the Service Boards to individuals with
23 disabilities who are unable to use fixed route transportation
24 systems and who are determined to be eligible, for some or all

 

 

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1 of their trips, for such services under the Americans with
2 Disabilities Act of 1990 and its implementing regulations.
3     (b) Beginning July 1, 2005, the Authority is responsible
4 for the funding, from amounts on deposit in the ADA Paratransit
5 Fund established under Section 2.01d of this Act, financial
6 review and oversight of all ADA paratransit services that are
7 provided by the Authority or by any of the Service Boards. The
8 Suburban Bus Board shall operate or provide for the operation
9 of all ADA paratransit services by no later than July 1, 2006,
10 except that this date may be extended to the extent necessary
11 to obtain approval from the Federal Transit Administration of
12 the plan prepared pursuant to subsection (c).
13     (c) No later than January 1, 2006, the Authority, in
14 collaboration with the Suburban Bus Board and the Chicago
15 Transit Authority, shall develop a plan for the provision of
16 ADA paratransit services and submit such plan to the Federal
17 Transit Administration for approval. Approval of such plan by
18 the Authority shall require the affirmative votes of 12 9 of
19 the then Directors. The Suburban Bus Board, the Chicago Transit
20 Authority and the Authority shall comply with the requirements
21 of the Americans with Disabilities Act of 1990 and its
22 implementing regulations in developing and approving such plan
23 including, without limitation, consulting with individuals
24 with disabilities and groups representing them in the
25 community, and providing adequate opportunity for public
26 comment and public hearings. The plan shall include the

 

 

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1 contents required for a paratransit plan pursuant to the
2 Americans with Disabilities Act of 1990 and its implementing
3 regulations. The plan shall also include, without limitation,
4 provisions to:
5         (1) maintain, at a minimum, the levels of ADA
6     paratransit service that are required to be provided by the
7     Service Boards pursuant to the Americans with Disabilities
8     Act of 1990 and its implementing regulations;
9         (2) transfer the appropriate ADA paratransit services,
10     management, personnel, service contracts and assets from
11     the Chicago Transit Authority to the Authority or the
12     Suburban Bus Board, as necessary, by no later than July 1,
13     2006, except that this date may be extended to the extent
14     necessary to obtain approval from the Federal Transit
15     Administration of the plan prepared pursuant to this
16     subsection (c);
17         (3) provide for consistent policies throughout the
18     metropolitan region for scheduling of ADA paratransit
19     service trips to and from destinations, with consideration
20     of scheduling of return trips on a "will-call" open-ended
21     basis upon request of the rider, if practicable, and with
22     consideration of an increased number of trips available by
23     subscription service than are available as of the effective
24     date of this amendatory Act;
25         (4) provide that service contracts and rates, entered
26     into or set after the approval by the Federal Transit

 

 

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1     Administration of the plan prepared pursuant to subsection
2     (c) of this Section, with private carriers and taxicabs for
3     ADA paratransit service are procured by means of an open
4     procurement process;
5         (5) provide for fares, fare collection and billing
6     procedures for ADA paratransit services throughout the
7     metropolitan region;
8         (6) provide for performance standards for all ADA
9     paratransit service transportation carriers, with
10     consideration of door-to-door service;
11         (7) provide, in cooperation with the Illinois
12     Department of Transportation, the Illinois Department of
13     Public Aid and other appropriate public agencies and
14     private entities, for the application and receipt of
15     grants, including, without limitation, reimbursement from
16     Medicaid or other programs for ADA paratransit services;
17         (8) provide for a system of dispatch of ADA paratransit
18     services transportation carriers throughout the
19     metropolitan region, with consideration of county-based
20     dispatch systems already in place as of the effective date
21     of this amendatory Act;
22         (9) provide for a process of determining eligibility
23     for ADA paratransit services that complies with the
24     Americans with Disabilities Act of 1990 and its
25     implementing regulations;
26         (10) provide for consideration of innovative methods

 

 

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1     to provide and fund ADA paratransit services; and
2         (11) provide for the creation of one or more ADA
3     advisory boards, or the reconstitution of the existing ADA
4     advisory boards for the Service Boards, to represent the
5     diversity of individuals with disabilities in the
6     metropolitan region and to provide appropriate ongoing
7     input from individuals with disabilities into the
8     operation of ADA paratransit services.
9     (d) All revisions and annual updates to the ADA paratransit
10 services plan developed pursuant to subsection (c) of this
11 Section, or certifications of continued compliance in lieu of
12 plan updates, that are required to be provided to the Federal
13 Transit Administration shall be developed by the Authority, in
14 collaboration with the Suburban Bus Board and the Chicago
15 Transit Authority, and the Authority shall submit such
16 revision, update or certification to the Federal Transit
17 Administration for approval. Approval of such revisions,
18 updates or certifications by the Authority shall require the
19 affirmative votes of 12 9 of the then Directors.
20     (e) The Illinois Department of Transportation, the
21 Illinois Department of Public Aid, the Authority, the Suburban
22 Bus Board and the Chicago Transit Authority shall enter into
23 intergovernmental agreements as may be necessary to provide
24 funding and accountability for, and implementation of, the
25 requirements of this Section.
26     (f) By no later than April 1, 2007, the Authority shall

 

 

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1 develop and submit to the General Assembly and the Governor a
2 funding plan for ADA paratransit services. Approval of such
3 plan by the Authority shall require the affirmative votes of 12
4 9 of the then Directors. The funding plan shall, at a minimum,
5 contain an analysis of the current costs of providing ADA
6 paratransit services, projections of the long-term costs of
7 providing ADA paratransit services, identification of and
8 recommendations for possible cost efficiencies in providing
9 ADA paratransit services, and identification of and
10 recommendations for possible funding sources for providing ADA
11 paratransit services. The Illinois Department of
12 Transportation, the Illinois Department of Public Aid, the
13 Suburban Bus Board, the Chicago Transit Authority and other
14 State and local public agencies as appropriate shall cooperate
15 with the Authority in the preparation of such funding plan.
16     (g) Any funds derived from the federal Medicaid program for
17 reimbursement of the costs of providing ADA paratransit
18 services within the metropolitan region shall be directed to
19 the Authority and shall be used to pay for or reimburse the
20 costs of providing such services.
21     (h) Nothing in this amendatory Act shall be construed to
22 conflict with the requirements of the Americans with
23 Disabilities Act of 1990 and its implementing regulations.
24 (Source: P.A. 94-370, eff. 7-29-05.)
 
25     (70 ILCS 3615/2.31 new)

 

 

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1     Sec. 2.31. Disadvantaged Business Enterprise Contracting
2 and Equal Employment Opportunity Programs. The Authority and
3 each Service Board shall, as soon as is practicable but in no
4 event later than two years after the effective date of this
5 amendatory Act of the 95th General Assembly, establish and
6 maintain a disadvantaged business enterprise contracting
7 program designed to ensure non-discrimination in the award and
8 administration of contracts not covered under a federally
9 mandated disadvantaged business enterprise program. The
10 program shall establish narrowly tailored goals for the
11 participation of disadvantaged business enterprises as the
12 Authority and each Service Board determines appropriate. The
13 goals shall be based on demonstrable evidence of the
14 availability of ready, willing, and able disadvantaged
15 business enterprises relative to all businesses ready,
16 willing, and able to participate on the program's contracts.
17 The program shall require the Authority and each Service Board
18 to monitor the progress of the contractors' obligations with
19 respect to the program's goals. Nothing in this program shall
20 conflict with or interfere with the maintenance or operation
21 of, or compliance with, any federally mandated disadvantaged
22 business enterprise program.
23     The Authority and each Service Board shall establish and
24 maintain a program designed to promote equal employment
25 opportunity. Each year, no later than October 1, the Authority
26 and each Service Board shall report to the General Assembly on

 

 

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1 the number of their respective employees and the number of
2 their respective employees who have designated themselves as
3 members of a minority group and gender.
4     Each year no later than October 1, and starting no later
5 than the October 1 after the establishment of their
6 disadvantaged business enterprise contracting programs, the
7 Authority and each Service Board shall submit a report with
8 respect to such program to the General Assembly. In addition,
9 each year no later than October 1, the Authority and each
10 Service Board shall submit a copy of its federally mandated
11 semi-annual Uniform Report of Disadvantaged Business
12 Enterprises Awards or Commitments and Payments to the General
13 Assembly.
 
14     (70 ILCS 3615/3.01)  (from Ch. 111 2/3, par. 703.01)
15     Sec. 3.01. Board of Directors. The Upon expiration of the
16 term of the members of the Transition Board as provided for in
17 Section 3.09, the corporate authorities and governing body of
18 the Authority shall be a Board consisting of 13 Directors until
19 January 1, 2008, and 16 Directors thereafter, appointed as
20 follows:
21     (a) Four Directors appointed by the Mayor of the City of
22 Chicago, with the advice and consent of the City Council of the
23 City of Chicago, and, only until January 1, 2008, a fifth
24 director who shall be the Chairman of the Chicago Transit
25 Authority. After January 1, 2008, the Mayor of the City of

 

 

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1 Chicago, with the advice and consent of the City Council of the
2 City of Chicago, shall appoint a fifth Director who shall not
3 be the chairman or director of the Chicago Transit Authority.
4 Each such Director shall reside in the City of Chicago except
5 the Chairman of the Chicago Transit Authority who shall reside
6 within the metropolitan area as defined in the Metropolitan
7 Transit Authority Act.
8     (b) Four Directors appointed by the votes of a majority of
9 the members of the Cook County Board elected from that part of
10 Cook County outside of Chicago, or, in the event such Board of
11 Commissioners becomes elected from single member districts, by
12 those Commissioners elected from districts, a majority of the
13 electors of which reside outside Chicago. After January 1,
14 2008, a fifth Director appointed by the President of the Cook
15 County Board with the advice and consent of a majority of the
16 members of the Cook County Board elected from districts, a
17 majority of the electors of which reside outside Chicago. In
18 either case, such appointment shall be with the concurrence of
19 four such Commissioners. Each such Director appointed under
20 this subparagraph shall reside in that part of Cook County
21 outside Chicago.
22     (c) Until January 1, 2008, 3 Directors appointed by the
23 Chairmen of the county boards of DuPage, Kane, Lake, McHenry,
24 and Will Counties, as follows:
25         (i) Two Directors appointed by the Chairmen of the
26     county boards of Kane, Lake, McHenry and Will Counties,

 

 

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1     with the concurrence of not less than a majority of the
2     Chairmen from such counties, from nominees by the Chairmen.
3     Each such Chairman may nominate not more than 2 persons for
4     each position. Each such Director shall reside in a county
5     in the metropolitan region other than Cook or DuPage
6     Counties.
7         (ii) (d) One Director shall be appointed by the
8     Chairman of the Board of DuPage County Board with the
9     advice and consent of the County Board of DuPage County
10     Board. Such Director and shall reside in DuPage County.
11     (d) After January 1, 2008, 5 Directors appointed by the
12 Chairman of the county boards of DuPage, Kane, Lake and McHenry
13 Counties and the County Executive of Will County, as follows:
14         (i) One Director appointed jointly by the Chairmen of
15     the Kane County Board and the McHenry County Board. Such
16     Director shall reside in Kane County or McHenry County.
17         (ii) One Director appointed by the County Executive of
18     Will County with the advice and consent of the Will County
19     Board. Such Director shall reside in Will County.
20         (iii) One Director appointed by the Chairman of the
21     DuPage County Board with the advice and consent of the
22     DuPage County Board. Such Director shall reside in DuPage
23     County.
24         (iv) One Director appointed by the Chairman of the Lake
25     County Board with the advice and consent of the Lake County
26     Board. Such Director shall reside in Lake County.

 

 

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1         (v) One Director appointed jointly, for a term of 3
2     years, by the Chairman of the DuPage County Board, the
3     Chairman of the Lake County Board, and the County Executive
4     of the Will County Board.
5         (vi) To implement the changes in appointing authority
6     under this subparagraph (d) the three Directors appointed
7     under subparagraph (c) and residing in Lake County, DuPage
8     County, and Kane County respectively shall each continue to
9     serve as Director until the expiration of their respective
10     term of office and until his or her successor is appointed
11     and qualified or a vacancy occurs in the office. Thereupon,
12     the appointment shall be made by the officials given
13     appointing authority with respect to the Director whose
14     term has expired or office has become vacant.
15     (e) The Before January 1, 1987, for the term expiring July
16 1, 1989, the Chairman shall be appointed by the Governor.
17 Thereafter the Chairman shall be appointed by the other 12
18 Directors by the affirmative votes of at least 9 of the then
19 with the concurrence of three-fourths of such Directors. Upon
20 the expiration or vacancy of the term of the Chairman then
21 serving upon the effective date of this amendatory Act of the
22 95th General Assembly, the Chairman shall be appointed by the
23 other Directors, by the affirmative vote of at least 11 of the
24 then Directors. The chairman shall not be appointed from among
25 the other Directors. The chairman shall be a resident of the
26 metropolitan region.

 

 

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1     (f) Except as otherwise provided by this Act no Director
2 shall, while serving as such, be an officer, a member of the
3 Board of Directors or Trustees or an employee of any Service
4 Board or transportation agency, or be an employee of the State
5 of Illinois or any department or agency thereof, or of any unit
6 of local government or receive any compensation from any
7 elected or appointed office under the Constitution and laws of
8 Illinois; except that a Director may be a member of a school
9 board.
10     (g) Each appointment made under this Section and under
11 Section 3.03 shall be certified by the appointing authority to
12 the Board, which shall maintain the certifications as part of
13 the official records of the Authority; provided that the
14 initial appointments shall be certified to the Secretary of
15 State, who shall transmit the certifications to the Board
16 following its organization. All appointments made by the
17 Governor shall be made with the advice and consent of the
18 Senate.
19     (h) (Blank). The Board of Directors shall be so appointed
20 as to represent the City of Chicago, that part of Cook County
21 outside the City of Chicago, and that part of the metropolitan
22 region outside Cook County on the one man one vote basis. After
23 each Federal decennial census the General Assembly shall review
24 the composition of the Board and, if a change is needed to
25 comply with this requirement, shall provide for the necessary
26 revision by July 1 of the third year after such census.

 

 

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1 Provided, however, that the Chairman of the Chicago Transit
2 Authority shall be a Director of the Authority and shall be
3 considered as representing the City of Chicago for purposes of
4 this paragraph.
5     Insofar as may be practicable, the changes in Board
6 membership necessary to achieve this purpose shall take effect
7 as appropriate members terms expire, no member's term being
8 reduced by reason of such revision of the composition of the
9 Board.
10 (Source: P.A. 83-1417.)
 
11     (70 ILCS 3615/3.03)  (from Ch. 111 2/3, par. 703.03)
12     Sec. 3.03. Terms, vacancies. Each Director, including the
13 Chairman, shall be appointed for an initial term as provided
14 for in Section 3.10 of this Act. Thereafter, each Director
15 shall hold office for a term of 5 years, and until his
16 successor has been appointed and has qualified, except the
17 Director appointed under Section 3.01(d)(v) shall hold office
18 for a term of 3 years, and until his successor has been
19 appointed and has qualified. A vacancy shall occur upon
20 resignation, death, conviction of a felony, or removal from
21 office of a Director. Any Director may be removed from office
22 upon concurrence of not less than 11 9 Directors, on a formal
23 finding of incompetence, neglect of duty, or malfeasance in
24 office. Within 30 days after the office of any member becomes
25 vacant for any reason, the appointing authorities of such

 

 

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1 member shall make an appointment to fill the vacancy. A vacancy
2 shall be filled for the unexpired term.
3     Whenever After October 1, 1984, whenever a vacancy for a
4 Director, except as to the Chairman or those Directors
5 appointed by the Governor or the Mayor of the City of Chicago,
6 exists for longer than 4 months, the new Director shall be
7 chosen by election by all legislative members in the General
8 Assembly representing the affected area. In order to qualify as
9 a voting legislative member in this matter, the affected area
10 must be more than 50% of the geographic area of the legislative
11 district.
12 (Source: P.A. 86-1475.)
 
13     (70 ILCS 3615/3.04)  (from Ch. 111 2/3, par. 703.04)
14     Sec. 3.04. Compensation. Each Director, excluding
15 including the Chairman, except for the Chairman of the Chicago
16 Transit Authority who shall not be compensated by the
17 Authority, shall be compensated at the rate of $25,000 per
18 year. The Chairman shall be compensated at the rate of $50,000
19 per year.
20     Officers of the Authority shall not be required to comply
21 with the requirements of "An Act requiring certain custodians
22 of public moneys to file and publish statements of the receipts
23 and disbursements thereof", approved June 24, 1919, as now or
24 hereafter amended.
25 (Source: P.A. 83-885; 83-886.)
 

 

 

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1     (70 ILCS 3615/3.05)  (from Ch. 111 2/3, par. 703.05)
2     Sec. 3.05. Meetings. The Board shall prescribe the times
3 and places for meetings and the manner in which special
4 meetings may be called. The Board shall comply in all respects
5 with the "Open Meetings Act", approved July 11, 1957, as now or
6 hereafter amended. All records, documents and papers of the
7 Authority, other than those relating to matters concerning
8 which closed sessions of the Board may be held, shall be
9 available for public examination, subject to such reasonable
10 regulations as the Board may adopt.
11     A majority of the Directors holding office shall constitute
12 a quorum for the conduct of business. Except as otherwise
13 provided in this Act, the affirmative votes of at least 9 7
14 Directors shall be necessary for approving any contract or
15 agreement, adopting any rule or regulation, and any other
16 action required by this Act to be taken by resolution or
17 ordinance.
18     The Board shall meet with the Regional Citizens Advisory
19 Board at least once every 4 months.
20 (Source: P.A. 83-886.)
 
21     (70 ILCS 3615/3A.10)  (from Ch. 111 2/3, par. 703A.10)
22     Sec. 3A.10. Budget and Program. The Suburban Bus Board,
23 subject to the powers of the Authority in Section 4.11, shall
24 control the finances of the Division. It shall by ordinance

 

 

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1 appropriate money to perform the Division's purposes and
2 provide for payment of debts and expenses of the Division. Each
3 year the Suburban Bus Board shall prepare and publish a
4 comprehensive annual budget and proposed five-year capital
5 program document, and a financial plan for the 2 years
6 thereafter describing the state of the Division and presenting
7 for the forthcoming fiscal year and the 2 following years the
8 Suburban Bus Board's plans for such operations and capital
9 expenditures as it intends to undertake and the means by which
10 it intends to finance them. The proposed budget, and financial
11 plan, and five-year capital program shall be based on the
12 Authority's estimate of funds to be made available to the
13 Suburban Bus Board by or through the Authority and shall
14 conform in all respects to the requirements established by the
15 Authority. The proposed program and budget, financial plan, and
16 five-year capital program shall contain a statement of the
17 funds estimated to be on hand at the beginning of the fiscal
18 year, the funds estimated to be received from all sources for
19 such year and the funds estimated to be on hand at the end of
20 such year. After adoption of the Authority's first Five-Year
21 Program, as provided in Section 2.01 of this Act, the proposed
22 program and budget shall specifically identify any respect in
23 which the recommended program deviates from the Authority's
24 then existing Five-Year Program, giving the reasons for such
25 deviation. The fiscal year of the Division shall be the same as
26 the fiscal year of the Authority. Before the proposed budget,

 

 

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1 and program and financial plan, and five-year capital program
2 are submitted to the Authority, the Suburban Bus Board shall
3 hold at least one public hearing thereon in each of the
4 counties in the metropolitan region in which the Division
5 provides service. The Suburban Bus Board shall hold at least
6 one meeting for consideration of the proposed program and
7 budget, financial plan, and five-year capital program with the
8 county board of each of the several counties in the
9 metropolitan region in which the Division provides service.
10 After conducting such hearings and holding such meetings and
11 after making such changes in the proposed program and budget,
12 financial plan, and five-year capital program as the Suburban
13 Bus Board deems appropriate, it shall adopt an annual budget
14 ordinance at least by November 15 next preceding the beginning
15 of each fiscal year. The budget, and program, and financial
16 plan, and five-year capital program shall then be submitted to
17 the Authority as provided in Section 4.11. In the event that
18 the Board of the Authority determines that the budget and
19 program, and financial plan do not meet the standards of
20 Section 4.11, the Suburban Bus Board shall make such changes as
21 are necessary to meet such requirements and adopt an amended
22 budget ordinance. The amended budget ordinance shall be
23 resubmitted to the Authority pursuant to Section 4.11. The
24 ordinance shall appropriate such sums of money as are deemed
25 necessary to defray all necessary expenses and obligations of
26 the Division, specifying purposes and the objects or programs

 

 

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1 for which appropriations are made and the amount appropriated
2 for each object or program. Additional appropriations,
3 transfers between items and other changes in such ordinance
4 which do not alter the basis upon which the balanced budget
5 determination was made by the Board of the Authority may be
6 made from time to time by the Suburban Bus Board.
7     The budget shall:
8         (i) show a balance between (A) anticipated revenues
9     from all sources including operating subsidies and (B) the
10     costs of providing the services specified and of funding
11     any operating deficits or encumbrances incurred in prior
12     periods, including provision for payment when due of
13     principal and interest on outstanding indebtedness;
14         (ii) show cash balances including the proceeds of any
15     anticipated cash flow borrowing sufficient to pay with
16     reasonable promptness all costs and expenses as incurred;
17         (iii) provide for a level of fares or charges and
18     operating or administrative costs for the public
19     transportation provided by or subject to the jurisdiction
20     of the Suburban Bus Board sufficient to allow the Suburban
21     Bus Board to meet its required system generated revenues
22     recovery ratio and, beginning with the 2007 fiscal year,
23     its system generated ADA paratransit services revenue
24     recovery ratio;
25         (iv) be based upon and employ assumptions and
26     projections which are reasonable and prudent;

 

 

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1         (v) have been prepared in accordance with sound
2     financial practices as determined by the Board of the
3     Authority; and
4         (vi) meet such other uniform financial, budgetary, or
5     fiscal requirements that the Board of the Authority may by
6     rule or regulation establish; and .
7         (vii) be consistent with the goals and objectives
8     adopted by the Regional Transportation Authority in the
9     Strategic Plan.
10 (Source: P.A. 94-370, eff. 7-29-05.)
 
11     (70 ILCS 3615/3A.11)  (from Ch. 111 2/3, par. 703A.11)
12     Sec. 3A.11. Citizens Advisory Board. The Suburban Bus Board
13 shall establish a citizens advisory board composed of 10
14 residents of those portions of the metropolitan region in which
15 the Suburban Bus Board provides service who have an interest in
16 public transportation. The members of the advisory board shall
17 be named for 2 year terms, shall select one of their members to
18 serve as chairman and shall serve without compensation. The
19 citizens advisory board shall meet with the Suburban Bus Board
20 at least quarterly and advise the Suburban Bus Board of the
21 impact of its policies and programs on the communities it
22 serves. Appointments to the citizens advisory board should, to
23 the greatest extent possible, reflect the ethnic, cultural, and
24 geographic diversity of all persons residing within the
25 Suburban Bus Board's jurisdiction.

 

 

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1 (Source: P.A. 83-886.)
 
2     (70 ILCS 3615/3A.14)  (from Ch. 111 2/3, par. 703A.14)
3     Sec. 3A.14. Labor. (a) The provisions of this Section apply
4 to collective bargaining agreements (including extensions and
5 amendments of existing agreements) entered into on or after
6 January 1, 1984.
7     (b) The Suburban Bus Board shall deal with and enter into
8 written contracts with their employees, through accredited
9 representatives of such employees authorized to act for such
10 employees concerning wages, salaries, hours, working
11 conditions, and pension or retirement provisions about which a
12 collective bargaining agreement has been entered prior to the
13 effective date of this amendatory Act of 1983. Any such
14 agreement of the Suburban Bus Board shall provide that the
15 agreement may be reopened if the amended budget submitted
16 pursuant to Section 2.18a of this Act is not approved by the
17 Board of the Authority. The agreement may not include a
18 provision requiring the payment of wage increases based on
19 changes in the Consumer Price Index. The Suburban Bus Board
20 shall not have the authority to enter collective bargaining
21 agreements with respect to inherent management rights, which
22 include such areas of discretion or policy as the functions of
23 the employer, standards of services, its overall budget, the
24 organizational structure and selection of new employees and
25 direction of personnel. Employers, however, shall be required

 

 

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1 to bargain collectively with regard to policy matters directly
2 affecting wages, hours and terms and conditions of employment,
3 as well as the impact thereon, upon request by employee
4 representatives. To preserve the rights of employers and
5 exclusive representatives which have established collective
6 bargaining relationships or negotiated collective bargaining
7 agreements prior to the effective date of this amendatory Act
8 of 1983, employers shall be required to bargain collectively
9 with regard to any matter concerning wages, hours or conditions
10 of employment about which they have bargained prior to the
11 effective date of this amendatory Act of 1983.
12     (c) The collective bargaining agreement may not include a
13 prohibition on the use of part-time operators on any service
14 operated by the Suburban Bus Board except where prohibited by
15 federal law.
16     (d) Within 30 days of the signing of any such collective
17 bargaining agreement, the Suburban Bus Board shall determine
18 the costs of each provision of the agreement, prepare an
19 amended budget incorporating the costs of the agreement, and
20 present the amended budget to the Board of the Authority for
21 its approval under Section 4.11. The Board may approve the
22 amended budget by an affirmative vote of 12 9 of its then
23 Directors. If the budget is not approved by the Board of the
24 Authority, the agreement may be reopened and its terms may be
25 renegotiated. Any amended budget which may be prepared
26 following renegotiation shall be presented to the Board of the

 

 

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1 Authority for its approval in like manner.
2 (Source: P.A. 83-886.)
 
3     (70 ILCS 3615/3B.02)  (from Ch. 111 2/3, par. 703B.02)
4     Sec. 3B.02. Commuter Rail Board.
5     (a) Until January 1, 2008, the The governing body of the
6 Commuter Rail Division shall be a board consisting of 7
7 directors appointed pursuant to Sections 3B.03 and 3B.04, as
8 follows:
9         (1) (a) One director shall be appointed by the Chairman
10     of the Board of DuPage County with the advice and consent
11     of the County Board of DuPage County and shall reside in
12     DuPage County. ;
13         (2) (b) Two directors appointed by the Chairmen of the
14     County Boards of Kane, Lake, McHenry and Will Counties with
15     the concurrence of not less than a majority of the chairmen
16     from such counties, from nominees by the Chairmen. Each
17     such chairman may nominate not more than two persons for
18     each position. Each such director shall reside in a county
19     in the metropolitan region other than Cook or DuPage
20     County.
21         (3) (c) Three directors appointed by the members of the
22     Cook County Board elected from that part of Cook County
23     outside of Chicago, or, in the event such Board of
24     Commissioners becomes elected from single member
25     districts, by those Commissioners elected from districts,

 

 

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1     a majority of the residents of which reside outside
2     Chicago. In either case, such appointment shall be with the
3     concurrence of four such Commissioners. Each such director
4     shall reside in that part of Cook County outside Chicago.
5         (4) (d) One director appointed by the Mayor of the City
6     of Chicago, with the advice and consent of the City Council
7     of the City of Chicago. Such director shall reside in the
8     City of Chicago.
9         (5) The chairman shall be appointed by the directors,
10     from the members of the board, with the concurrence of 5 of
11     such directors.
12     (b) After January 1, 2008 the governing body of the
13 Commuter Rail Division shall be a board consisting of 11
14 directors appointed, pursuant to Sections 3B.03 and 3B.04, as
15 follows:
16         (1) One Director shall be appointed by the Chairman of
17     the DuPage County Board with the advice and consent of the
18     DuPage County Board and shall reside in DuPage County. To
19     implement the changes in appointing authority under this
20     Section, upon the expiration of the term of or vacancy in
21     office of the Director appointed under item (1) of
22     subsection (a) of this Section who resides in DuPage
23     County, a Director shall be appointed under this
24     subparagraph.
25         (2) One Director shall be appointed by the Chairman of
26     the McHenry County Board. Such director shall reside in

 

 

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1     McHenry County. To implement the change in appointing
2     authority under this Section, upon the expiration of the
3     term of or vacancy in office of the Director appointed
4     under item (2) of subsection (a) of this Section who
5     resides in McHenry County, a Director shall be appointed
6     under this subparagraph.
7         (3) One Director shall be appointed by the Will County
8     Executive with the advice and consent of the Will County
9     Board. Such Director shall reside in Will County. To
10     implement the change in appointing authority under this
11     Section, upon the expiration of the term of or vacancy in
12     office of the Director appointed under item (2) of
13     subsection (a) of this Section who resides in Will County,
14     a Director shall be appointed under this subparagraph.
15         (4) One Director shall be appointed by the Chairman of
16     the Lake County Board with the advice and consent of the
17     Lake County Board and shall reside in Lake County.
18         (5) One Director shall be appointed by the Chairman of
19     the Kane County Board, with the advice and consent of the
20     Kane County Board, and shall reside in Kane County.
21         (6) One director shall be appointed by the Mayor of the
22     City of Chicago, with the advice and consent of the City
23     Council of the City of Chicago. Such director shall reside
24     in the City of Chicago. To implement the changes in
25     appointing authority under this Section, upon the
26     expiration of the term of or vacancy in office of the

 

 

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1     Director appointed under item (4) of subsection (a) of this
2     Section who resides in the City of Chicago, a Director
3     shall be appointed under this subparagraph.
4         (7) Five Directors residing in Cook County outside of
5     the City of Chicago, as follows:
6             (i) One Director who resides in Cook County outside
7         of the City of Chicago, appointed by the President of
8         the Cook County Board with the advice and consent of a
9         majority of the members of the Cook County Board
10         elected from districts, a majority of the electors of
11         which reside outside Chicago.
12             (ii) One Director who resides in Cook County,
13         outside of the City of Chicago and north of Devon
14         Avenue. To implement the changes in appointing
15         authority under this Section, upon the expiration of
16         the term of or vacancy in office of the Director
17         appointed under paragraph (3) of subsection (a) of this
18         Section who resides in the geographic area described in
19         this subparagraph, a Director shall be appointed under
20         this subparagraph.
21             (iii) One Director who resides in Cook County,
22         outside of the City of Chicago, south of Devon Avenue,
23         and north of Interstate 55, and in addition the Village
24         of Summit.
25             (iv) One Director who resides in Cook County,
26         outside of the City of Chicago, south of Interstate 55,

 

 

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1         and west of Interstate 57, excluding the communities of
2         Summit, Dixmoor, Posen, Robbins, Midlothian, and Oak
3         Forest. To implement the changes in appointing
4         authority under this Section, upon the expiration of
5         the term of or vacancy in office of the Director
6         appointed under paragraph (3) of subsection (a) of this
7         Section who resides in the geographic area described in
8         this subparagraph and whose term of office had not
9         expired as of August 1, 2007, a Director shall be
10         appointed under this subparagraph.
11             (v) One Director who resides in Cook County,
12         outside of the City of Chicago, east of Interstate 57,
13         and, in addition, the communities of Dixmoor, Posen,
14         Robbins, Midlothian and Oak Forest. To implement the
15         changes in appointing authority under this Section,
16         upon the expiration of the term of or vacancy in office
17         of the Director appointed under paragraph (3) of
18         subsection (a) of this Section who resides in the
19         geographic area described in this subparagraph and
20         whose term of office had expired as of August 1, 2007,
21         a Director shall be appointed under this subparagraph.
22             (vi) The Directors identified under the provisions
23         of subparagraphs (ii) through (v) of this paragraph (7)
24         shall be appointed by the members of the Cook County
25         Board elected from districts, the majority of the
26         electors of which are located in Cook County outside of

 

 

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1         the City of Chicago. Each individual Director shall be
2         appointed by those members of the Cook County Board
3         whose Board districts overlap in whole or in part with
4         the geographic territory described in the relevant
5         subparagraph. The vote of County Board members
6         eligible to appoint directors under the provisions of
7         this paragraph (7) shall be weighted by the number of
8         electors residing in those portions of their Board
9         districts within the geographic territory described in
10         the relevant subparagraph (ii) through (v) of this
11         paragraph (7).
12         (8) The chairman shall be appointed by the directors,
13     from the members of the board, with the concurrence of 7 of
14     such directors. To implement the changes in appointing
15     authority under this Section, upon the expiration of the
16     term of or vacancy in office of the Chairman appointed
17     under item (5) of subsection (a) of this Section, a
18     Chairman shall be appointed under this subparagraph.
19     (c) No director, while serving as such, shall be an
20 officer, a member of the board of directors or trustee or an
21 employee of any transportation agency, or be an employee of the
22 State of Illinois or any department or agency thereof, or of
23 any unit of local government or receive any compensation from
24 any elected or appointed office under the Constitution and laws
25 of Illinois.
26     (d) Each appointment made under subsections (a) and (b) of

 

 

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1 this Section paragraphs (a) through (d) and under Section 3B.03
2 shall be certified by the appointing authority to the Commuter
3 Rail Board which shall maintain the certifications as part of
4 the official records of the Commuter Rail Board; provided that
5 the initial appointments shall be certified to the Secretary of
6 State, who shall transmit the certifications to the Commuter
7 Rail Board following its organization.
8     Appointments to the Commuter Rail Board shall be
9 apportioned so as to represent the City of Chicago, that part
10 of Cook County outside of the City of Chicago, and DuPage
11 County and that part of the metropolitan region other than Cook
12 and DuPage Counties based on morning boardings of the services
13 provided by the Commuter Rail Division as certified to the
14 Board of the Authority by the Commuter Rail Board, provided
15 however that the Mayor of the City of Chicago shall appoint no
16 fewer than 1 member of the Commuter Rail Board. Within two
17 years after each federal decennial census, the Board of the
18 Authority shall review the composition of the Commuter Rail
19 Board and, if change is needed to comply with this requirement,
20 shall provide for the necessary reapportionment by July 1 of
21 the second year after such census. Insofar as may be
22 practicable, the changes in board membership necessary to
23 achieve this purpose shall take effect as appropriate members
24 terms expire, no member's term being reduced by reason of such
25 revision of the composition of the Commuter Rail Board.
26 (Source: P.A. 83-886.)
 

 

 

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1     (70 ILCS 3615/3B.03)  (from Ch. 111 2/3, par. 703B.03)
2     Sec. 3B.03. Terms, Vacancies. Each The initial term of the
3 director appointed pursuant to subdivision (a) of Section 3B.02
4 and the initial term of one of the directors appointed pursuant
5 to subdivision (b) of Section 3B.02 shall expire on June 30,
6 1985; the initial term of one of the directors appointed
7 pursuant to subdivision (b) of Section 3B.02 and the initial
8 term of one of the directors appointed pursuant to subdivision
9 (c) of Section 3B.02 shall expire on June 30, 1986; the initial
10 terms of two of the directors appointed pursuant to subdivision
11 (c) of Section 3B.02 shall expire on June 30, 1987; the initial
12 term of the director appointed pursuant to subdivision (d) of
13 Section 3B.02 shall expire on June 30, 1988. Thereafter, each
14 director shall be appointed for a term of 4 years, and until
15 his successor has been appointed and qualified. A vacancy shall
16 occur upon the resignation, death, conviction of a felony, or
17 removal from office of a director. Any director may be removed
18 from office upon the concurrence of not less than 6 directors,
19 on a formal finding of incompetence, neglect of duty, or
20 malfeasance in office. Within 30 days after the office of any
21 director becomes vacant for any reason, the appropriate
22 appointing authorities of such director, as provided in Section
23 3B.02, shall make an appointment to fill the vacancy. A vacancy
24 shall be filled for the unexpired term.
25 (Source: P.A. 84-939.)
 

 

 

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1     (70 ILCS 3615/3B.05)  (from Ch. 111 2/3, par. 703B.05)
2     Sec. 3B.05. Appointment of officers and employees. The
3 Commuter Rail Board shall appoint an Executive Director who
4 shall be the chief executive officer of the Division,
5 appointed, retained or dismissed with the concurrence of 7 6 of
6 the directors of the Commuter Rail Board. The Executive
7 Director shall appoint, retain and employ officers, attorneys,
8 agents, engineers, employees and shall organize the staff,
9 shall allocate their functions and duties, fix compensation and
10 conditions of employment, and consistent with the policies of
11 and direction from the Commuter Rail Board take all actions
12 necessary to achieve its purposes, fulfill its
13 responsibilities and carry out its powers, and shall have such
14 other powers and responsibilities as the Commuter Rail Board
15 shall determine. The Executive Director shall be an individual
16 of proven transportation and management skills and may not be a
17 member of the Commuter Rail Board. The Division may employ its
18 own professional management personnel to provide professional
19 and technical expertise concerning its purposes and powers and
20 to assist it in assessing the performance of transportation
21 agencies in the metropolitan region.
22     No unlawful discrimination, as defined and prohibited in
23 the Illinois Human Rights Act, shall be made in any term or
24 aspect of employment nor shall there be discrimination based
25 upon political reasons or factors. The Commuter Rail Board

 

 

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1 shall establish regulations to insure that its discharges shall
2 not be arbitrary and that hiring and promotion are based on
3 merit.
4     The Division shall be subject to the "Illinois Human Rights
5 Act", as now or hereafter amended, and the remedies and
6 procedure established thereunder. The Commuter Rail Board
7 shall file an affirmative action program for employment by it
8 with the Department of Human Rights to ensure that applicants
9 are employed and that employees are treated during employment,
10 without regard to unlawful discrimination. Such affirmative
11 action program shall include provisions relating to hiring,
12 upgrading, demotion, transfer, recruitment, recruitment
13 advertising, selection for training and rates of pay or other
14 forms of compensation.
15 (Source: P.A. 83-885; 83-886.)
 
16     (70 ILCS 3615/3B.07)  (from Ch. 111 2/3, par. 703B.07)
17     Sec. 3B.07. Meetings. The Commuter Rail Board shall
18 prescribe the times and places for meetings and the manner in
19 which special meetings may be called. The Commuter Rail Board
20 shall comply in all respects with the "Open Meetings Act", as
21 now or hereafter amended. All records, documents and papers of
22 the Commuter Rail Division, other than those relating to
23 matters concerning which closed sessions of the Commuter Rail
24 Board may be held, shall be available for public examination,
25 subject to such reasonable regulations as the board may adopt.

 

 

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1     A majority of the members shall constitute a quorum for the
2 conduct of business. The affirmative votes of at least a
3 majority of the 4 members shall be necessary for any action
4 required by this Act to be taken by ordinance.
5 (Source: P.A. 83-886.)
 
6     (70 ILCS 3615/3B.09)  (from Ch. 111 2/3, par. 703B.09)
7     Sec. 3B.09. General Powers. In addition to any powers
8 elsewhere provided to the Commuter Rail Board, it shall have
9 all of the powers specified in Section 2.20 of this Act except
10 for the powers specified in Section 2.20(a)(v). The Board shall
11 also have the power:
12     (a) to cooperate with the Regional Transportation
13 Authority in the exercise by the Regional Transportation
14 Authority of all the powers granted it by such Act;
15     (b) to receive funds from the Regional Transportation
16 Authority pursuant to Sections 2.02, 4.01, 4.02, 4.09 and 4.10
17 of the "Regional Transportation Authority Act", all as provided
18 in the "Regional Transportation Authority Act"; and
19     (c) to receive financial grants from the Regional
20 Transportation Authority or a Service Board, as defined in the
21 "Regional Transportation Authority Act", upon such terms and
22 conditions as shall be set forth in a grant contract between
23 either the Division and the Regional Transportation Authority
24 or the Division and another Service Board, which contract or
25 agreement may be for such number of years or duration as the

 

 

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1 parties may agree, all as provided in the "Regional
2 Transportation Authority Act"; and .
3     (d) to borrow money for the purpose of acquiring,
4 constructing, reconstructing, extending, or improving any
5 Public Transportation Facilities (as defined in Section 1.03 of
6 the Regional Transportation Authority Act) operated by or to be
7 operated by or on behalf of the Commuter Rail Division. For the
8 purpose of evidencing the obligation of the Commuter Rail Board
9 to repay any money borrowed as provided in this subsection, the
10 Commuter Rail Board may issue revenue bonds from time to time
11 pursuant to ordinance adopted by the Commuter Rail Board,
12 subject to the approval of the Regional Transportation
13 Authority of each such issuance by the affirmative vote of 12
14 of its then Directors; provided that the Commuter Rail Board
15 may not issue bonds for the purpose of financing the
16 acquisition, construction, or improvement of a corporate
17 headquarters building. All such bonds shall be payable solely
18 from the revenues or income or any other funds that the
19 Commuter Rail Board may receive, provided that the Commuter
20 Rail Board may not pledge as security for such bonds the
21 moneys, if any, that the Commuter Rail Board receives from the
22 Regional Transportation Authority pursuant to Section
23 4.03.3(f) of the Regional Transportation Authority Act. The
24 bonds shall bear interest at a rate not to exceed the maximum
25 rate authorized by the Bond Authorization Act and shall mature
26 at such time or times not exceeding 30 years from their

 

 

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1 respective dates, provided that the bonds shall have
2 approximately equal debt service payments in each year, with
3 the first principal or mandatory redemption payment being no
4 later than the fiscal year after their initial issuance. The
5 maximum principal amount of the bonds that may be issued and
6 outstanding at any time may not exceed $1,000,000,000. The
7 bonds shall have all the qualities of negotiable instruments
8 under the laws of this State. To secure the payment of any or
9 all of such bonds and for the purpose of setting forth the
10 covenants and undertakings of the Commuter Rail Board in
11 connection with the issuance thereof and the issuance of any
12 additional bonds payable from such revenue or income as well as
13 the use and application of the revenue or income received by
14 the Commuter Rail Board, the Commuter Rail Board may execute
15 and deliver a trust agreement or agreements; provided that no
16 lien upon any physical property of the Commuter Rail Board
17 shall be created thereby. A remedy for any breach or default of
18 the terms of any such trust agreement by the Commuter Rail
19 Board may be by mandamus proceedings in any court of competent
20 jurisdiction to compel performance and compliance therewith,
21 but the trust agreement may prescribe by whom or on whose
22 behalf such action may be instituted. Under no circumstances
23 shall any bonds issued by the Commuter Rail Board or any other
24 obligation of the Commuter Rail Board in connection with the
25 issuance of such bonds be or become an indebtedness or
26 obligation of the State of Illinois, the Regional

 

 

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1 Transportation Authority, or any other political subdivision
2 of or municipality within the State, nor shall any such bonds
3 or obligations be or become an indebtedness of the Commuter
4 Rail Board within the purview of any constitutional limitation
5 or provision, and it shall be plainly stated on the face of
6 each bond that it does not constitute such an indebtedness or
7 obligation but is payable solely from the revenues or income as
8 aforesaid.
9 (Source: P.A. 83-885; 83-886.)
 
10     (70 ILCS 3615/3B.10)  (from Ch. 111 2/3, par. 703B.10)
11     Sec. 3B.10. Budget and Program. The Commuter Rail Board,
12 subject to the powers of the Authority in Section 4.11, shall
13 control the finances of the Division. It shall by ordinance
14 appropriate money to perform the Division's purposes and
15 provide for payment of debts and expenses of the Division. Each
16 year the Commuter Rail Board shall prepare and publish a
17 comprehensive annual budget and proposed five-year capital
18 program document, and a financial plan for the two years
19 thereafter describing the state of the Division and presenting
20 for the forthcoming fiscal year and the two following years the
21 Commuter Rail Board's plans for such operations and capital
22 expenditures as the Commuter Rail Board intends to undertake
23 and the means by which it intends to finance them. The proposed
24 budget, and financial plan, and five-year capital program shall
25 be based on the Authority's estimate of funds to be made

 

 

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1 available to the Commuter Rail Board by or through the
2 Authority and shall conform in all respects to the requirements
3 established by the Authority. The proposed program and budget,
4 financial plan, and five-year capital program shall contain a
5 statement of the funds estimated to be on hand at the beginning
6 of the fiscal year, the funds estimated to be received from all
7 sources for such year and the funds estimated to be on hand at
8 the end of such year. After adoption of the Authority's first
9 Five-Year Program, as provided in Section 2.01 of this Act, the
10 proposed program and budget shall specifically identify any
11 respect in which the recommended program deviates from the
12 Authority's then existing Five-Year Program, giving the
13 reasons for such deviation. The fiscal year of the Division
14 shall be the same as the fiscal year of the Authority. Before
15 the proposed budget, and program and financial plan, and
16 five-year capital program are submitted to the Authority, the
17 Commuter Rail Board shall hold at least one public hearing
18 thereon in each of the counties in the metropolitan region in
19 which the Division provides service. The Commuter Rail Board
20 shall hold at least one meeting for consideration of the
21 proposed program and budget, financial plan, and five-year
22 capital plan with the county board of each of the several
23 counties in the metropolitan region in which the Division
24 provides service. After conducting such hearings and holding
25 such meetings and after making such changes in the proposed
26 program and budget, financial plan, and five-year capital plan

 

 

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1 as the Commuter Rail Board deems appropriate, the board shall
2 adopt its annual budget ordinance at least by November 15 next
3 preceding the beginning of each fiscal year. The budget, and
4 program, and financial plan, and five-year capital program
5 shall then be submitted to the Authority as provided in Section
6 4.11. In the event that the Board of the Authority determines
7 that the budget and program, and financial plan do not meet the
8 standards of Section 4.11, the Commuter Rail Board shall make
9 such changes as are necessary to meet such requirements and
10 adopt an amended budget ordinance. The amended budget ordinance
11 shall be resubmitted to the Authority pursuant to Section 4.11.
12 The ordinance shall appropriate such sums of money as are
13 deemed necessary to defray all necessary expenses and
14 obligations of the Division, specifying purposes and the
15 objects or programs for which appropriations are made and the
16 amount appropriated for each object or program. Additional
17 appropriations, transfers between items and other changes in
18 such ordinance which do not alter the basis upon which the
19 balanced budget determination was made by the Board of the
20 Authority may be made from time to time by the Commuter Rail
21 Board.
22     The budget shall:
23     (i) show a balance between (A) anticipated revenues from
24 all sources including operating subsidies and (B) the costs of
25 providing the services specified and of funding any operating
26 deficits or encumbrances incurred in prior periods, including

 

 

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1 provision for payment when due of principal and interest on
2 outstanding indebtedness;
3     (ii) show cash balances including the proceeds of any
4 anticipated cash flow borrowing sufficient to pay with
5 reasonable promptness all costs and expenses as incurred;
6     (iii) provide for a level of fares or charges for the
7 public transportation provided by or subject to the
8 jurisdiction of such Commuter Rail Board sufficient to allow
9 the Commuter Rail Board to meet its required system generated
10 revenue recovery ratio;
11     (iv) be based upon and employ assumptions and projections
12 which the Board of the Authority finds to be reasonable and
13 prudent;
14     (v) have been prepared in accordance with sound financial
15 practices as determined by the Board of the Authority; and
16     (vi) meet such other uniform financial, budgetary, or
17 fiscal requirements that the Board of the Authority may by rule
18 or regulation establish; and .
19     (vii) be consistent with the goals and objectives adopted
20 by the Regional Transportation Authority in the Strategic Plan.
21 (Source: P.A. 83-885; 83-886.)
 
22     (70 ILCS 3615/3B.11)  (from Ch. 111 2/3, par. 703B.11)
23     Sec. 3B.11. Citizens Advisory Board. The Commuter Rail
24 Board shall establish a citizens advisory board composed of ten
25 residents of those portions of the metropolitan region in which

 

 

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1 the Commuter Rail Board provides service who have an interest
2 in public transportation. The members of the advisory board
3 shall be named for two year terms, shall select one of their
4 members to serve as chairman and shall serve without
5 compensation. The citizens advisory board shall meet with the
6 Commuter Rail Board at least quarterly and advise the Commuter
7 Rail Board of the impact of its policies and programs on the
8 communities it serves. Appointments to the citizens advisory
9 board should, to the greatest extent possible, reflect the
10 ethnic, cultural, and geographic diversity of all persons
11 residing within the Commuter Rail Division's jurisdiction.
12 (Source: P.A. 83-886.)
 
13     (70 ILCS 3615/3B.12)  (from Ch. 111 2/3, par. 703B.12)
14     Sec. 3B.12. Working Cash Borrowing. The Commuter Rail Board
15 with the affirmative vote of 7 5 of its Directors may demand
16 and direct the Board of the Authority to issue Working Cash
17 Notes at such time and in such amounts and having such
18 maturities as the Commuter Rail Board deems proper, provided
19 however any such borrowing shall have been specifically
20 identified in the budget of the Commuter Rail Board as approved
21 by the Board of the Authority. Provided further, that the
22 Commuter Rail Board may not demand and direct the Board of the
23 Authority to have issued and have outstanding at any time in
24 excess of $20,000,000 in Working Cash Notes.
25 (Source: P.A. 83-886.)
 

 

 

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1     (70 ILCS 3615/3B.13)  (from Ch. 111 2/3, par. 703B.13)
2     Sec. 3B.13. Labor. (a) The provisions of this Section apply
3 to collective bargaining agreements (including extensions and
4 amendments of existing agreements) entered into on or after
5 January 1, 1984. This Section does not apply to collective
6 bargaining agreements that are subject to the provisions of the
7 Railway Labor Act, as now or hereafter amended.
8     (b) The Commuter Rail Board shall deal with and enter into
9 written contracts with their employees, through accredited
10 representatives of such employees authorized to act for such
11 employees concerning wages, salaries, hours, working
12 conditions, and pension or retirement provisions about which a
13 collective bargaining agreement has been entered prior to the
14 effective date of this amendatory Act of 1983. Any such
15 agreement of the Commuter Rail Board shall provide that the
16 agreement may be reopened if the amended budget submitted
17 pursuant to Section 2.18a of this Act is not approved by the
18 Board of the Authority. The agreement may not include a
19 provision requiring the payment of wage increases based on
20 changes in the Consumer Price Index. The Commuter Rail Board
21 shall not have the authority to enter collective bargaining
22 agreements with respect to inherent management rights which
23 include such areas of discretion or policy as the functions of
24 the employer, standards of services, its overall budget, the
25 organizational structure and selection of new employees and

 

 

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1 direction of personnel. Employers, however, shall be required
2 to bargain collectively with regard to policy matters directly
3 affecting wages, hours and terms and conditions of employment,
4 as well as the impact thereon, upon request by employee
5 representatives. To preserve the rights of the Commuter Rail
6 Board and exclusive representatives which have established
7 collective bargaining relationships or negotiated collective
8 bargaining agreements prior to the effective date of this
9 amendatory Act of 1983, the Commuter Rail Board shall be
10 required to bargain collectively with regard to any matter
11 concerning wages, hours or conditions of employment about which
12 they have bargained prior to the effective date of this
13 amendatory Act of 1983.
14     (c) The collective bargaining agreement may not include a
15 prohibition on the use of part-time operators on any service
16 operated by the Commuter Rail Board except where prohibited by
17 federal law.
18     (d) Within 30 days of the signing of any such collective
19 bargaining agreement, the Commuter Rail Board shall determine
20 the costs of each provision of the agreement, prepare an
21 amended budget incorporating the costs of the agreement, and
22 present the amended budget to the Board of the Authority for
23 its approval under Section 4.11. The Board may approve the
24 amended budget by an affirmative vote of 12 9 of its then
25 Directors. If the budget is not approved by the Board of the
26 Authority, the agreement may be reopened and its terms may be

 

 

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1 renegotiated. Any amended budget which may be prepared
2 following renegotiation shall be presented to the Board of the
3 Authority for its approval in like manner.
4 (Source: P.A. 84-1308.)
 
5     (70 ILCS 3615/4.01)  (from Ch. 111 2/3, par. 704.01)
6     Sec. 4.01. Budget and Program.
7     (a) The Board shall control the finances of the Authority.
8 It shall by ordinance adopted by the affirmative vote of at
9 least 12 of its then Directors (i) appropriate money to perform
10 the Authority's purposes and provide for payment of debts and
11 expenses of the Authority, (ii) take action with respect to the
12 budget and two-year financial plan of each Service Board, as
13 provided in Section 4.11, and (iii) adopt an Annual Budget and
14 Two-Year Financial Plan for the Authority that includes the
15 annual budget and two-year financial plan of each Service Board
16 that has been approved by the Authority. Each year the
17 Authority shall prepare and publish a comprehensive annual
18 budget and program document describing the state of the
19 Authority and presenting for the forthcoming fiscal year the
20 Authority's plans for such operations and capital expenditures
21 as the Authority intends to undertake and the means by which it
22 intends to finance them. The Annual Budget and Two-Year
23 Financial Plan proposed program and budget shall contain a
24 statement of the funds estimated to be on hand for the
25 Authority and each Service Board at the beginning of the fiscal

 

 

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1 year, the funds estimated to be received from all sources for
2 such year, the estimated expenses and obligations of the
3 Authority and each Service Board for all purposes, including
4 expenses for contributions to be made with respect to pension
5 and other employee benefits, and the funds estimated to be on
6 hand at the end of such year. After adoption of the Authority's
7 first Five-Year Program, as provided in Section 2.01 of this
8 Act, the proposed program and budget shall specifically
9 identify any respect in which the recommended program deviates
10 from the Authority's then existing Five-Year Program, giving
11 the reasons for such deviation. The fiscal year of the
12 Authority and each Service Board shall begin on January 1st and
13 end on the succeeding December 31st except that the fiscal year
14 that began October 1, 1982, shall end December 31, 1983. By
15 July 1st 1981 and July 1st of each year thereafter the Director
16 of the Illinois Governor's Office of Management and Budget
17 (formerly Bureau of the Budget) shall submit to the Authority
18 an estimate of revenues for the next fiscal year of the
19 Authority to be collected from the taxes imposed by the
20 Authority and the amounts to be available in the Public
21 Transportation Fund and the Regional Transportation Authority
22 Occupation and Use Tax Replacement Fund and the amounts
23 otherwise to be appropriated by the State to the Authority for
24 its purposes. The Authority shall file a copy of its Annual
25 Budget and Two-Year Financial Plan with For the fiscal year
26 ending on December 31, 1983, the Board shall report its results

 

 

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1 from operations and financial condition to the General Assembly
2 and the Governor by January 31. For the fiscal year beginning
3 January 1, 1984, and thereafter, the budget and program shall
4 be presented to the General Assembly and the Governor after its
5 adoption not later than the preceding December 31st. Before the
6 proposed Annual Budget and Two-Year Financial Plan budget and
7 program is adopted, the Authority shall hold at least one
8 public hearing thereon in the metropolitan region, and shall
9 meet . The Board shall hold at least one meeting for
10 consideration of the proposed program and budget with the
11 county board or its designee of each of the several counties in
12 the metropolitan region. After conducting such hearings and
13 holding such meetings and after making such changes in the
14 proposed Annual Budget and Two-Year Financial Plan program and
15 budget as the Board deems appropriate, the Board shall adopt
16 its annual appropriation and Annual Budget and Two-Year
17 Financial Plan budget ordinance. The ordinance may be adopted
18 only upon the affirmative votes of 12 9 of its then Directors.
19 The ordinance shall appropriate such sums of money as are
20 deemed necessary to defray all necessary expenses and
21 obligations of the Authority, specifying purposes and the
22 objects or programs for which appropriations are made and the
23 amount appropriated for each object or program. Additional
24 appropriations, transfers between items and other changes in
25 such ordinance may be made from time to time by the Board upon
26 the affirmative votes of 12 9 of its then Directors.

 

 

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1     (b) The Annual Budget and Two-Year Financial Plan budget
2 shall show a balance between anticipated revenues from all
3 sources and anticipated expenses including funding of
4 operating deficits or the discharge of encumbrances incurred in
5 prior periods and payment of principal and interest when due,
6 and shall show cash balances sufficient to pay with reasonable
7 promptness all obligations and expenses as incurred.
8     The Annual Budget and Two-Year Financial Plan annual budget
9 and financial plan must show:
10          (i) that the level of fares and charges for mass
11     transportation provided by, or under grant or purchase of
12     service contracts of, the Service Boards is sufficient to
13     cause the aggregate of all projected fare revenues from
14     such fares and charges received in each fiscal year to
15     equal at least 50% of the aggregate costs of providing such
16     public transportation in such fiscal year. "Fare revenues"
17     include the proceeds of all fares and charges for services
18     provided, contributions received in connection with public
19     transportation from units of local government other than
20     the Authority, except for contributions received by the
21     Chicago Transit Authority from a real estate transfer tax
22     imposed under subsection (i) of Section 8-3-19 of the
23     Illinois Municipal Code, and from the State pursuant to
24     subsection (i) of Section 2705-305 of the Department of
25     Transportation Law (20 ILCS 2705/2705-305), and all other
26     operating revenues properly included consistent with

 

 

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1     generally accepted accounting principles but do not
2     include: the proceeds of any borrowings, and, beginning
3     with the 2007 fiscal year, all revenues and receipts,
4     including but not limited to fares and grants received from
5     the federal, State or any unit of local government or other
6     entity, derived from providing ADA paratransit service
7     pursuant to Section 2.30 of the Regional Transportation
8     Authority Act. "Costs" include all items properly included
9     as operating costs consistent with generally accepted
10     accounting principles, including administrative costs, but
11     do not include: depreciation; payment of principal and
12     interest on bonds, notes or other evidences of obligation
13     for borrowed money issued by the Authority; payments with
14     respect to public transportation facilities made pursuant
15     to subsection (b) of Section 2.20 of this Act; any payments
16     with respect to rate protection contracts, credit
17     enhancements or liquidity agreements made under Section
18     4.14; any other cost to which it is reasonably expected
19     that a cash expenditure will not be made; costs up to
20     $5,000,000 annually for passenger security including
21     grants, contracts, personnel, equipment and administrative
22     expenses, except in the case of the Chicago Transit
23     Authority, in which case the term does not include costs
24     spent annually by that entity for protection against crime
25     as required by Section 27a of the Metropolitan Transit
26     Authority Act; the payment by the Chicago Transit Authority

 

 

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1     of Debt Service, as defined in Section 12c of the
2     Metropolitan Transit Authority Act, on bonds or notes
3     issued pursuant to that Section; the payment by the
4     Commuter Rail Division of debt service on bonds issued
5     pursuant to Section 3B.09; expenses incurred by the
6     Suburban Bus Division for the cost of new public
7     transportation services funded from grants pursuant to
8     Section 2.01e of this amendatory Act of the 95th General
9     Assembly for a period of 2 years from the date of
10     initiation of each such service; costs as exempted by the
11     Board for projects pursuant to Section 2.09 of this Act;
12     or, beginning with the 2007 fiscal year, expenses related
13     to providing ADA paratransit service pursuant to Section
14     2.30 of the Regional Transportation Authority Act; and in
15     fiscal years 2008 through 2017 inclusive, costs in the
16     amount of $200,000,000 in fiscal year 2008, reducing by
17     $20,000,000 in each fiscal year thereafter until this
18     exemption is eliminated; and
19         (ii) that the level of fares charged for ADA
20     paratransit services is sufficient to cause the aggregate
21     of all projected revenues from such fares charged and
22     received in each fiscal year to equal at least 10% of the
23     aggregate costs of providing such ADA paratransit services
24     in fiscal years 2007 and 2008 and at least 12% of the
25     aggregate costs of providing such ADA paratransit services
26     in fiscal years 2009 and thereafter; for purposes of this

 

 

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1     Act, the percentages in this subsection (b)(ii) shall be
2     referred to as the "system generated ADA paratransit
3     services revenue recovery ratio".
4     (c) The actual administrative expenses of the Authority for
5 the fiscal year commencing January 1, 1985 may not exceed
6 $5,000,000. The actual administrative expenses of the
7 Authority for the fiscal year commencing January 1, 1986, and
8 for each fiscal year thereafter shall not exceed the maximum
9 administrative expenses for the previous fiscal year plus 5%.
10 "Administrative expenses" are defined for purposes of this
11 Section as all expenses except: (1) capital expenses and
12 purchases of the Authority on behalf of the Service Boards; (2)
13 payments to Service Boards; and (3) payment of principal and
14 interest on bonds, notes or other evidence of obligation for
15 borrowed money issued by the Authority; (4) costs for passenger
16 security including grants, contracts, personnel, equipment and
17 administrative expenses; (5) payments with respect to public
18 transportation facilities made pursuant to subsection (b) of
19 Section 2.20 of this Act; and (6) any payments with respect to
20 rate protection contracts, credit enhancements or liquidity
21 agreements made pursuant to Section 4.14.
22     (d) This subsection applies only until the Department
23 begins administering and enforcing an increased tax under
24 Section 4.03(m) as authorized by this amendatory Act of the
25 95th General Assembly. After withholding 15% of the proceeds of
26 any tax imposed by the Authority and 15% of money received by

 

 

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1 the Authority from the Regional Transportation Authority
2 Occupation and Use Tax Replacement Fund, the Board shall
3 allocate the proceeds and money remaining to the Service Boards
4 as follows: (1) an amount equal to 85% of the proceeds of those
5 taxes collected within the City of Chicago and 85% of the money
6 received by the Authority on account of transfers to the
7 Regional Transportation Authority Occupation and Use Tax
8 Replacement Fund from the County and Mass Transit District Fund
9 attributable to retail sales within the City of Chicago shall
10 be allocated to the Chicago Transit Authority; (2) an amount
11 equal to 85% of the proceeds of those taxes collected within
12 Cook County outside the City of Chicago and 85% of the money
13 received by the Authority on account of transfers to the
14 Regional Transportation Authority Occupation and Use Tax
15 Replacement Fund from the County and Mass Transit District Fund
16 attributable to retail sales within Cook County outside of the
17 city of Chicago shall be allocated 30% to the Chicago Transit
18 Authority, 55% to the Commuter Rail Board and 15% to the
19 Suburban Bus Board; and (3) an amount equal to 85% of the
20 proceeds of the taxes collected within the Counties of DuPage,
21 Kane, Lake, McHenry and Will shall be allocated 70% to the
22 Commuter Rail Board and 30% to the Suburban Bus Board.
23     (e) This subsection applies only until the Department
24 begins administering and enforcing an increased tax under
25 Section 4.03(m) as authorized by this amendatory Act of the
26 95th General Assembly. Moneys received by the Authority on

 

 

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1 account of transfers to the Regional Transportation Authority
2 Occupation and Use Tax Replacement Fund from the State and
3 Local Sales Tax Reform Fund shall be allocated among the
4 Authority and the Service Boards as follows: 15% of such moneys
5 shall be retained by the Authority and the remaining 85% shall
6 be transferred to the Service Boards as soon as may be
7 practicable after the Authority receives payment. Moneys which
8 are distributable to the Service Boards pursuant to the
9 preceding sentence shall be allocated among the Service Boards
10 on the basis of each Service Board's distribution ratio. The
11 term "distribution ratio" means, for purposes of this
12 subsection (e) of this Section 4.01, the ratio of the total
13 amount distributed to a Service Board pursuant to subsection
14 (d) of Section 4.01 for the immediately preceding calendar year
15 to the total amount distributed to all of the Service Boards
16 pursuant to subsection (d) of Section 4.01 for the immediately
17 preceding calendar year.
18     (f) To carry out its duties and responsibilities under this
19 Act, further and accomplish the preparation of the annual
20 budget and program as well as the Five-Year Program provided
21 for in Section 2.01 of this Act and to make such interim
22 management decisions as may be necessary, the Board shall
23 employ staff which shall: (1) propose for adoption by the Board
24 of the Authority rules for the Service Boards that establish
25 (i) forms and schedules to be used and information required to
26 be provided with respect to a five-year capital program, annual

 

 

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1 budgets, and two-year financial plans and regular reporting of
2 actual results against adopted budgets and financial plans,
3 (ii) financial practices to be followed in the budgeting and
4 expenditure of public funds, (iii) assumptions and projections
5 that must be followed in preparing and submitting its annual
6 budget and two-year financial plan or a five-year capital
7 program; (2) evaluate for the Board public transportation
8 programs operated or proposed by the Service Boards and
9 transportation agencies in terms of the goals and objectives
10 set out in the Strategic Plan , costs and relative priorities;
11 (3) (2) keep the Board and the public informed of the extent to
12 which the Service Boards and transportation agencies are
13 meeting the goals and objectives adopted by the Authority in
14 the Strategic Plan public transportation programs and
15 accomplishments of such transportation agencies; and (4)
16 assess the efficiency or adequacy of public transportation
17 services provided by a Service Board and make recommendations
18 for change in that service (3) coordinate the development and
19 implementation of public transportation programs to the end
20 that the moneys monies available to the Authority may be
21 expended in the most economical manner possible with the least
22 possible duplication.
23     (g) All Under such regulations as the Board may prescribe,
24 all Service Boards, transportation agencies, comprehensive
25 planning agencies, including the Chicago Metropolitan Agency
26 for Planning, or transportation planning agencies in the

 

 

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1 metropolitan region shall furnish to the Authority Board such
2 information pertaining to public transportation or relevant
3 for plans therefor as it may from time to time require. The
4 Executive Director, or his or her designee, upon payment to any
5 such agency or Service Board of the reasonable additional cost
6 of its so providing such information except as may otherwise be
7 provided by agreement with the Authority, and the Board or any
8 duly authorized employee of the Board shall, for the purpose of
9 securing any such information necessary or appropriate to carry
10 out any of the powers and responsibilities of the Authority
11 under this Act, have access to, and the right to examine, all
12 books, documents, papers or records of a Service Board or any
13 transportation such agency receiving funds from the Authority
14 or Service Board, and such Service Board or transportation
15 agency shall comply with any request by the Executive Director,
16 or his or her designee, within 30 days or an extended time
17 provided by the Executive Director pertaining to public
18 transportation or relevant for plans therefor.
19     (h) No Service Board shall undertake any capital
20 improvement which is not identified in the Five-Year Capital
21 Program.
22 (Source: P.A. 94-370, eff. 7-29-05.)
 
23     (70 ILCS 3615/4.02)  (from Ch. 111 2/3, par. 704.02)
24     Sec. 4.02. Federal, State and Other Funds.
25     (a) The Authority shall have the power to apply for,

 

 

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1 receive and expend grants, loans or other funds from the State
2 of Illinois or any department or agency thereof, from any unit
3 of local government, from the federal government or any
4 department or agency thereof, for use in connection with any of
5 the powers or purposes of the Authority as set forth in this
6 Act. The Authority shall have power to make such studies as may
7 be necessary and to enter into contracts or agreements with the
8 State of Illinois or any department or agency thereof, with any
9 unit of local government, or with the federal government or any
10 department or agency thereof, concerning such grants, loans or
11 other funds, or any conditions relating thereto, including
12 obligations to repay such funds. The Authority may make such
13 covenants concerning such grants, loans and funds as it deems
14 proper and necessary in carrying out its responsibilities,
15 purposes and powers as provided in this Act.
16     (b) The Authority shall be the primary public body in the
17 metropolitan region with authority to apply for and receive any
18 grants, loans or other funds relating to public transportation
19 programs from the State of Illinois or any department or agency
20 thereof, or from the federal government or any department or
21 agency thereof. Any unit of local government, Service Board or
22 transportation agency may apply for and receive any such
23 federal or state capital grants, loans or other funds,
24 provided, however that a Service Board may not apply for or
25 receive any grant or loan which is not identified in the
26 Five-Year Capital Program. Any Service Board, unit of local

 

 

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1 government or transportation agency shall notify the Authority
2 prior to making any such application and shall file a copy
3 thereof with the Authority. Nothing in this Section shall be
4 construed to impose any limitation on the ability of the State
5 of Illinois or any department or agency thereof, any unit of
6 local government or Service Board or transportation agency to
7 make any grants or to enter into any agreement or contract with
8 the National Rail Passenger Corporation. Nor shall anything in
9 this Section impose any limitation on the ability of any school
10 district to apply for or receive any grant, loan or other funds
11 for transportation of school children.
12     (c) The Authority shall provide to the Service Board any
13 monies received relating to public transportation services
14 under the jurisdiction of the Service Boards as provided in
15 Section 4.03.3 of this Act. follows:
16         (1) As soon as may be practicable after the Authority
17     receives payment, under Section 4.03(m) or Section
18     4.03.1(d), of the proceeds of those taxes levied by the
19     Authority, the Authority shall transfer to each Service
20     Board the amount to which it is entitled under Section
21     4.01(d);
22         (2) The Authority by ordinance adopted by 9 of its then
23     Directors shall establish a formula apportioning any
24     federal funds for operating assistance purposes the
25     Authority receives to each Service Board. In establishing
26     the formula, the Board shall consider, among other factors:

 

 

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1     ridership levels, the efficiency with which the service is
2     provided, the degree of transit dependence of the area
3     served and the cost of service. That portion of any federal
4     funds for operating assistance received by the Authority
5     shall be paid to each Service Board as soon as may be
6     practicable upon their receipt provided the Authority has
7     adopted a balanced budget as required by Section 4.01 and
8     further provided that the Service Boards are in compliance
9     with the requirements in Section 4.11.
10         (3) The Authority by ordinance adopted by 9 of its then
11     Directors shall apportion to the Service Boards funds
12     provided by the State of Illinois under Section 4.09 and
13     shall make payment of said funds to each Service Board as
14     soon as may be practicable upon their receipt provided the
15     Authority has adopted a balanced budget as required by
16     Section 4.01 and further provided the Service Board is in
17     compliance with the requirements in Section 4.11.
18         (4) Beginning January 1, 2009, before making any
19     payments, transfers, or expenditures under this subsection
20     to a Service Board, the Authority must first comply with
21     Section 4.02a or 4.02b of this Act, whichever may be
22     applicable.
23 (Source: P.A. 94-839, eff. 6-6-06; revised 8-3-06.)
 
24     (70 ILCS 3615/4.02a)
25     Sec. 4.02a. Chicago Transit Authority contributions to

 

 

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1 pension funds.
2     (a) The Authority shall continually review the Chicago
3 Transit Authority's payment of the required contributions to
4 its retirement system under Section 22-101 of the Illinois
5 Pension Code.
6     (b) Beginning January 1, 2009, if at any time the Authority
7 determines that the Chicago Transit Authority's payment of any
8 portion of the required contributions to its retirement system
9 under Section 22-101 of the Illinois Pension Code is more than
10 one month overdue, it shall as soon as possible pay the amount
11 of those overdue contributions to the Board of Trustees trustee
12 of the Retirement Plan retirement system on behalf of the
13 Chicago Transit Authority out of moneys otherwise payable to
14 the Chicago Transit Authority under subsection (c) of Section
15 4.03.3 4.02 of this Act. The Authority shall thereafter have no
16 liability to the Chicago Transit Authority for amounts paid to
17 the Board of Trustees trustee of the Retirement Plan retirement
18 system under this Section.
19     (c) Whenever the Authority acts or determines that it is
20 required to act under subsection (b), it shall so notify the
21 Chicago Transit Authority, the Mayor of Chicago, the Governor,
22 the Auditor General of the State of Illinois, and the General
23 Assembly.
24 (Source: P.A. 94-839, eff. 6-6-06.)
 
25     (70 ILCS 3615/4.02b)

 

 

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1     Sec. 4.02b. Other contributions to pension funds.
2     (a) The Authority shall continually review the payment of
3 the required employer contributions to affected pension plans
4 under Section 22-103 of the Illinois Pension Code.
5     (b) Beginning January 1, 2009, if at any time the Authority
6 determines that the Commuter Rail Board's or Suburban Bus
7 Board's payment of any portion of the required contributions to
8 an affected pension plan under Section 22-103 of the Illinois
9 Pension Code is more than one month overdue, it shall as soon
10 as possible pay the amount of those overdue contributions to
11 the trustee of the affected pension plan on behalf of that
12 Service Board out of moneys otherwise payable to that Service
13 Board under Section 4.03.3 subsection (c) of Section 4.02 of
14 this Act. The Authority shall thereafter have no liability to
15 the Service Board for amounts paid to the trustee of the
16 affected pension plan under this Section.
17     (c) Whenever the Authority acts or determines that it is
18 required to act under subsection (b), it shall so notify the
19 affected Service Board, the Mayor of Chicago, the Governor, the
20 Auditor General of the State of Illinois, and the General
21 Assembly.
22     (d) Beginning January 1, 2009, if the Authority fails to
23 pay to an affected pension fund within 30 days after it is due
24 any employer contribution that it is required to make as a
25 contributing employer under Section 22-103 of the Illinois
26 Pension Code, it shall promptly so notify the Commission on

 

 

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1 Government Forecasting and Accountability, the Mayor of
2 Chicago, the Governor, and the General Assembly, and it shall
3 promptly pay the overdue amount out of the first money
4 available to the Authority for its administrative expenses, as
5 that term is defined in Section 4.01(c).
6 (Source: P.A. 94-839, eff. 6-6-06.)
 
7     (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
8     Sec. 4.03. Taxes.
9     (a) In order to carry out any of the powers or purposes of
10 the Authority, the Board may by ordinance adopted with the
11 concurrence of 12 9 of the then Directors, impose throughout
12 the metropolitan region any or all of the taxes provided in
13 this Section. Except as otherwise provided in this Act, taxes
14 imposed under this Section and civil penalties imposed incident
15 thereto shall be collected and enforced by the State Department
16 of Revenue. The Department shall have the power to administer
17 and enforce the taxes and to determine all rights for refunds
18 for erroneous payments of the taxes.
19     (b) The Board may impose a public transportation tax upon
20 all persons engaged in the metropolitan region in the business
21 of selling at retail motor fuel for operation of motor vehicles
22 upon public highways. The tax shall be at a rate not to exceed
23 5% of the gross receipts from the sales of motor fuel in the
24 course of the business. As used in this Act, the term "motor
25 fuel" shall have the same meaning as in the Motor Fuel Tax Law.

 

 

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1 The Board may provide for details of the tax. The provisions of
2 any tax shall conform, as closely as may be practicable, to the
3 provisions of the Municipal Retailers Occupation Tax Act,
4 including without limitation, conformity to penalties with
5 respect to the tax imposed and as to the powers of the State
6 Department of Revenue to promulgate and enforce rules and
7 regulations relating to the administration and enforcement of
8 the provisions of the tax imposed, except that reference in the
9 Act to any municipality shall refer to the Authority and the
10 tax shall be imposed only with regard to receipts from sales of
11 motor fuel in the metropolitan region, at rates as limited by
12 this Section.
13     (c) In connection with the tax imposed under paragraph (b)
14 of this Section the Board may impose a tax upon the privilege
15 of using in the metropolitan region motor fuel for the
16 operation of a motor vehicle upon public highways, the tax to
17 be at a rate not in excess of the rate of tax imposed under
18 paragraph (b) of this Section. The Board may provide for
19 details of the tax.
20     (d) The Board may impose a motor vehicle parking tax upon
21 the privilege of parking motor vehicles at off-street parking
22 facilities in the metropolitan region at which a fee is
23 charged, and may provide for reasonable classifications in and
24 exemptions to the tax, for administration and enforcement
25 thereof and for civil penalties and refunds thereunder and may
26 provide criminal penalties thereunder, the maximum penalties

 

 

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1 not to exceed the maximum criminal penalties provided in the
2 Retailers' Occupation Tax Act. The Authority may collect and
3 enforce the tax itself or by contract with any unit of local
4 government. The State Department of Revenue shall have no
5 responsibility for the collection and enforcement unless the
6 Department agrees with the Authority to undertake the
7 collection and enforcement. As used in this paragraph, the term
8 "parking facility" means a parking area or structure having
9 parking spaces for more than 2 vehicles at which motor vehicles
10 are permitted to park in return for an hourly, daily, or other
11 periodic fee, whether publicly or privately owned, but does not
12 include parking spaces on a public street, the use of which is
13 regulated by parking meters.
14     (e) The Board may impose a Regional Transportation
15 Authority Retailers' Occupation Tax upon all persons engaged in
16 the business of selling tangible personal property at retail in
17 the metropolitan region. In Cook County the tax rate shall be
18 1.25% 1% of the gross receipts from sales of food for human
19 consumption that is to be consumed off the premises where it is
20 sold (other than alcoholic beverages, soft drinks and food that
21 has been prepared for immediate consumption) and prescription
22 and nonprescription medicines, drugs, medical appliances and
23 insulin, urine testing materials, syringes and needles used by
24 diabetics, and 1% 3/4% of the gross receipts from other taxable
25 sales made in the course of that business. In DuPage, Kane,
26 Lake, McHenry, and Will Counties, the tax rate shall be 0.75%

 

 

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1 1/4% of the gross receipts from all taxable sales made in the
2 course of that business. The tax imposed under this Section and
3 all civil penalties that may be assessed as an incident thereof
4 shall be collected and enforced by the State Department of
5 Revenue. The Department shall have full power to administer and
6 enforce this Section; to collect all taxes and penalties so
7 collected in the manner hereinafter provided; and to determine
8 all rights to credit memoranda arising on account of the
9 erroneous payment of tax or penalty hereunder. In the
10 administration of, and compliance with this Section, the
11 Department and persons who are subject to this Section shall
12 have the same rights, remedies, privileges, immunities, powers
13 and duties, and be subject to the same conditions,
14 restrictions, limitations, penalties, exclusions, exemptions
15 and definitions of terms, and employ the same modes of
16 procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
17 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
18 therein other than the State rate of tax), 2c, 3 (except as to
19 the disposition of taxes and penalties collected), 4, 5, 5a,
20 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
21 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
22 Section 3-7 of the Uniform Penalty and Interest Act, as fully
23 as if those provisions were set forth herein.
24     Persons subject to any tax imposed under the authority
25 granted in this Section may reimburse themselves for their
26 seller's tax liability hereunder by separately stating the tax

 

 

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1 as an additional charge, which charge may be stated in
2 combination in a single amount with State taxes that sellers
3 are required to collect under the Use Tax Act, under any
4 bracket schedules the Department may prescribe.
5     Whenever the Department determines that a refund should be
6 made under this Section to a claimant instead of issuing a
7 credit memorandum, the Department shall notify the State
8 Comptroller, who shall cause the warrant to be drawn for the
9 amount specified, and to the person named, in the notification
10 from the Department. The refund shall be paid by the State
11 Treasurer out of the Regional Transportation Authority tax fund
12 established under paragraph (n) of this Section.
13     If a tax is imposed under this subsection (e), a tax shall
14 also be imposed under subsections (f) and (g) of this Section.
15     For the purpose of determining whether a tax authorized
16 under this Section is applicable, a retail sale by a producer
17 of coal or other mineral mined in Illinois, is a sale at retail
18 at the place where the coal or other mineral mined in Illinois
19 is extracted from the earth. This paragraph does not apply to
20 coal or other mineral when it is delivered or shipped by the
21 seller to the purchaser at a point outside Illinois so that the
22 sale is exempt under the Federal Constitution as a sale in
23 interstate or foreign commerce.
24     No tax shall be imposed or collected under this subsection
25 on the sale of a motor vehicle in this State to a resident of
26 another state if that motor vehicle will not be titled in this

 

 

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1 State.
2     Nothing in this Section shall be construed to authorize the
3 Regional Transportation Authority to impose a tax upon the
4 privilege of engaging in any business that under the
5 Constitution of the United States may not be made the subject
6 of taxation by this State.
7     (f) If a tax has been imposed under paragraph (e), a
8 Regional Transportation Authority Service Occupation Tax shall
9 also be imposed upon all persons engaged, in the metropolitan
10 region in the business of making sales of service, who as an
11 incident to making the sales of service, transfer tangible
12 personal property within the metropolitan region, either in the
13 form of tangible personal property or in the form of real
14 estate as an incident to a sale of service. In Cook County, the
15 tax rate shall be: (1) 1.25% 1% of the serviceman's cost price
16 of food prepared for immediate consumption and transferred
17 incident to a sale of service subject to the service occupation
18 tax by an entity licensed under the Hospital Licensing Act or
19 the Nursing Home Care Act that is located in the metropolitan
20 region; (2) 1.25% 1% of the selling price of food for human
21 consumption that is to be consumed off the premises where it is
22 sold (other than alcoholic beverages, soft drinks and food that
23 has been prepared for immediate consumption) and prescription
24 and nonprescription medicines, drugs, medical appliances and
25 insulin, urine testing materials, syringes and needles used by
26 diabetics; and (3) 1% 3/4% of the selling price from other

 

 

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1 taxable sales of tangible personal property transferred. In
2 DuPage, Kane, Lake, McHenry and Will Counties the rate shall be
3 0.75% 1/4% of the selling price of all tangible personal
4 property transferred.
5     The tax imposed under this paragraph and all civil
6 penalties that may be assessed as an incident thereof shall be
7 collected and enforced by the State Department of Revenue. The
8 Department shall have full power to administer and enforce this
9 paragraph; to collect all taxes and penalties due hereunder; to
10 dispose of taxes and penalties collected in the manner
11 hereinafter provided; and to determine all rights to credit
12 memoranda arising on account of the erroneous payment of tax or
13 penalty hereunder. In the administration of and compliance with
14 this paragraph, the Department and persons who are subject to
15 this paragraph shall have the same rights, remedies,
16 privileges, immunities, powers and duties, and be subject to
17 the same conditions, restrictions, limitations, penalties,
18 exclusions, exemptions and definitions of terms, and employ the
19 same modes of procedure, as are prescribed in Sections 1a-1, 2,
20 2a, 3 through 3-50 (in respect to all provisions therein other
21 than the State rate of tax), 4 (except that the reference to
22 the State shall be to the Authority), 5, 7, 8 (except that the
23 jurisdiction to which the tax shall be a debt to the extent
24 indicated in that Section 8 shall be the Authority), 9 (except
25 as to the disposition of taxes and penalties collected, and
26 except that the returned merchandise credit for this tax may

 

 

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1 not be taken against any State tax), 10, 11, 12 (except the
2 reference therein to Section 2b of the Retailers' Occupation
3 Tax Act), 13 (except that any reference to the State shall mean
4 the Authority), the first paragraph of Section 15, 16, 17, 18,
5 19 and 20 of the Service Occupation Tax Act and Section 3-7 of
6 the Uniform Penalty and Interest Act, as fully as if those
7 provisions were set forth herein.
8     Persons subject to any tax imposed under the authority
9 granted in this paragraph may reimburse themselves for their
10 serviceman's tax liability hereunder by separately stating the
11 tax as an additional charge, that charge may be stated in
12 combination in a single amount with State tax that servicemen
13 are authorized to collect under the Service Use Tax Act, under
14 any bracket schedules the Department may prescribe.
15     Whenever the Department determines that a refund should be
16 made under this paragraph to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the warrant to be drawn for the
19 amount specified, and to the person named in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the Regional Transportation Authority tax fund
22 established under paragraph (n) of this Section.
23     Nothing in this paragraph shall be construed to authorize
24 the Authority to impose a tax upon the privilege of engaging in
25 any business that under the Constitution of the United States
26 may not be made the subject of taxation by the State.

 

 

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1     (g) If a tax has been imposed under paragraph (e), a tax
2 shall also be imposed upon the privilege of using in the
3 metropolitan region, any item of tangible personal property
4 that is purchased outside the metropolitan region at retail
5 from a retailer, and that is titled or registered with an
6 agency of this State's government. In Cook County the tax rate
7 shall be 1% 3/4% of the selling price of the tangible personal
8 property, as "selling price" is defined in the Use Tax Act. In
9 DuPage, Kane, Lake, McHenry and Will counties the tax rate
10 shall be 0.75% 1/4% of the selling price of the tangible
11 personal property, as "selling price" is defined in the Use Tax
12 Act. The tax shall be collected from persons whose Illinois
13 address for titling or registration purposes is given as being
14 in the metropolitan region. The tax shall be collected by the
15 Department of Revenue for the Regional Transportation
16 Authority. The tax must be paid to the State, or an exemption
17 determination must be obtained from the Department of Revenue,
18 before the title or certificate of registration for the
19 property may be issued. The tax or proof of exemption may be
20 transmitted to the Department by way of the State agency with
21 which, or the State officer with whom, the tangible personal
22 property must be titled or registered if the Department and the
23 State agency or State officer determine that this procedure
24 will expedite the processing of applications for title or
25 registration.
26     The Department shall have full power to administer and

 

 

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1 enforce this paragraph; to collect all taxes, penalties and
2 interest due hereunder; to dispose of taxes, penalties and
3 interest collected in the manner hereinafter provided; and to
4 determine all rights to credit memoranda or refunds arising on
5 account of the erroneous payment of tax, penalty or interest
6 hereunder. In the administration of and compliance with this
7 paragraph, the Department and persons who are subject to this
8 paragraph shall have the same rights, remedies, privileges,
9 immunities, powers and duties, and be subject to the same
10 conditions, restrictions, limitations, penalties, exclusions,
11 exemptions and definitions of terms and employ the same modes
12 of procedure, as are prescribed in Sections 2 (except the
13 definition of "retailer maintaining a place of business in this
14 State"), 3 through 3-80 (except provisions pertaining to the
15 State rate of tax, and except provisions concerning collection
16 or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
17 19 (except the portions pertaining to claims by retailers and
18 except the last paragraph concerning refunds), 20, 21 and 22 of
19 the Use Tax Act, and are not inconsistent with this paragraph,
20 as fully as if those provisions were set forth herein.
21     Whenever the Department determines that a refund should be
22 made under this paragraph to a claimant instead of issuing a
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the order to be drawn for the
25 amount specified, and to the person named in the notification
26 from the Department. The refund shall be paid by the State

 

 

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1 Treasurer out of the Regional Transportation Authority tax fund
2 established under paragraph (n) of this Section.
3     (h) The Authority may impose a replacement vehicle tax of
4 $50 on any passenger car as defined in Section 1-157 of the
5 Illinois Vehicle Code purchased within the metropolitan region
6 by or on behalf of an insurance company to replace a passenger
7 car of an insured person in settlement of a total loss claim.
8 The tax imposed may not become effective before the first day
9 of the month following the passage of the ordinance imposing
10 the tax and receipt of a certified copy of the ordinance by the
11 Department of Revenue. The Department of Revenue shall collect
12 the tax for the Authority in accordance with Sections 3-2002
13 and 3-2003 of the Illinois Vehicle Code.
14     The Department shall immediately pay over to the State
15 Treasurer, ex officio, as trustee, all taxes collected
16 hereunder. On or before the 25th day of each calendar month,
17 the Department shall prepare and certify to the Comptroller the
18 disbursement of stated sums of money to the Authority. The
19 amount to be paid to the Authority shall be the amount
20 collected hereunder during the second preceding calendar month
21 by the Department, less any amount determined by the Department
22 to be necessary for the payment of refunds. Within 10 days
23 after receipt by the Comptroller of the disbursement
24 certification to the Authority provided for in this Section to
25 be given to the Comptroller by the Department, the Comptroller
26 shall cause the orders to be drawn for that amount in

 

 

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1 accordance with the directions contained in the certification.
2     (i) The Board may not impose any other taxes except as it
3 may from time to time be authorized by law to impose.
4     (j) A certificate of registration issued by the State
5 Department of Revenue to a retailer under the Retailers'
6 Occupation Tax Act or under the Service Occupation Tax Act
7 shall permit the registrant to engage in a business that is
8 taxed under the tax imposed under paragraphs (b), (e), (f) or
9 (g) of this Section and no additional registration shall be
10 required under the tax. A certificate issued under the Use Tax
11 Act or the Service Use Tax Act shall be applicable with regard
12 to any tax imposed under paragraph (c) of this Section.
13     (k) The provisions of any tax imposed under paragraph (c)
14 of this Section shall conform as closely as may be practicable
15 to the provisions of the Use Tax Act, including without
16 limitation conformity as to penalties with respect to the tax
17 imposed and as to the powers of the State Department of Revenue
18 to promulgate and enforce rules and regulations relating to the
19 administration and enforcement of the provisions of the tax
20 imposed. The taxes shall be imposed only on use within the
21 metropolitan region and at rates as provided in the paragraph.
22     (l) The Board in imposing any tax as provided in paragraphs
23 (b) and (c) of this Section, shall, after seeking the advice of
24 the State Department of Revenue, provide means for retailers,
25 users or purchasers of motor fuel for purposes other than those
26 with regard to which the taxes may be imposed as provided in

 

 

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1 those paragraphs to receive refunds of taxes improperly paid,
2 which provisions may be at variance with the refund provisions
3 as applicable under the Municipal Retailers Occupation Tax Act.
4 The State Department of Revenue may provide for certificates of
5 registration for users or purchasers of motor fuel for purposes
6 other than those with regard to which taxes may be imposed as
7 provided in paragraphs (b) and (c) of this Section to
8 facilitate the reporting and nontaxability of the exempt sales
9 or uses.
10     (m) Any ordinance imposing or discontinuing any tax under
11 this Section shall be adopted and a certified copy thereof
12 filed with the Department on or before June 1, whereupon the
13 Department of Revenue shall proceed to administer and enforce
14 this Section on behalf of the Regional Transportation Authority
15 as of September 1 next following such adoption and filing.
16 Beginning January 1, 1992, an ordinance or resolution imposing
17 or discontinuing the tax hereunder shall be adopted and a
18 certified copy thereof filed with the Department on or before
19 the first day of July, whereupon the Department shall proceed
20 to administer and enforce this Section as of the first day of
21 October next following such adoption and filing. Beginning
22 January 1, 1993, an ordinance or resolution imposing,
23 increasing, decreasing, or discontinuing the tax hereunder
24 shall be adopted and a certified copy thereof filed with the
25 Department on or before the first day of October, whereupon the
26 Department shall proceed to administer and enforce this Section

 

 

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1 as of the first day of the first month to occur not less than 60
2 days January next following such adoption and filing. Any
3 ordinance or resolution of the Authority imposing a tax under
4 this Section and in effect on August 1, 2007 shall remain in
5 full force and effect and shall be administered by the
6 Department of Revenue under the terms and conditions and rates
7 of tax established by such ordinance or resolution until the
8 Department begins administering and enforcing an increased tax
9 under this Section as authorized by this amendatory Act of the
10 95th General Assembly. The tax rates authorized by this
11 amendatory Act of the 95th General Assembly are effective only
12 if imposed by ordinance of the Authority.
13     (n) The State Department of Revenue shall, upon collecting
14 any taxes as provided in this Section, pay the taxes over to
15 the State Treasurer as trustee for the Authority. The taxes
16 shall be held in a trust fund outside the State Treasury. On or
17 before the 25th day of each calendar month, the State
18 Department of Revenue shall prepare and certify to the
19 Comptroller of the State of Illinois and the amount to be paid
20 to the Authority, which shall be the then balance in the fund,
21 less any amount determined by the Department to be necessary
22 for the payment of refunds. The State Department of Revenue
23 shall also certify to the Authority (i) the amount of taxes
24 collected in each County other than Cook County in the
25 metropolitan region, (ii) less the amount necessary for the
26 payment of refunds to taxpayers in the County. With regard to

 

 

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1 the County of Cook, the certification shall specify the amount
2 of taxes collected within the City of Chicago, less the amount
3 necessary for the payment of refunds to taxpayers in the City
4 of Chicago and (iii) the amount collected in that portion of
5 Cook County outside of Chicago, each amount less the amount
6 necessary for the payment of refunds to taxpayers located in
7 those areas described in items (i), (ii), and (iii) in that
8 portion of Cook County outside of Chicago. Within 10 days after
9 receipt by the Comptroller of the certification of the amounts
10 amount to be paid to the Authority, the Comptroller shall cause
11 an order to be drawn for the payment of two-thirds of the
12 amounts certified in item (i) of this subsection to the
13 Authority and one-third of the amounts certified in item (i) of
14 this subsection to the respective counties other than Cook
15 County and the amount certified in items (ii) and (iii) of this
16 subsection to the Authority for the amount in accordance with
17 the direction in the certification.
18     In addition to the disbursement required by the preceding
19 paragraph, an allocation shall be made in July 1991 and each
20 year thereafter to the Regional Transportation Authority. The
21 allocation shall be made in an amount equal to the average
22 monthly distribution during the preceding calendar year
23 (excluding the 2 months of lowest receipts) and the allocation
24 shall include the amount of average monthly distribution from
25 the Regional Transportation Authority Occupation and Use Tax
26 Replacement Fund. The distribution made in July 1992 and each

 

 

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1 year thereafter under this paragraph and the preceding
2 paragraph shall be reduced by the amount allocated and
3 disbursed under this paragraph in the preceding calendar year.
4 The Department of Revenue shall prepare and certify to the
5 Comptroller for disbursement the allocations made in
6 accordance with this paragraph.
7     (o) Failure to adopt a budget ordinance or otherwise to
8 comply with Section 4.01 of this Act or to adopt a Five-year
9 Capital Program or otherwise to comply with paragraph (b) of
10 Section 2.01 of this Act shall not affect the validity of any
11 tax imposed by the Authority otherwise in conformity with law.
12     (p) At no time shall a public transportation tax or motor
13 vehicle parking tax authorized under paragraphs (b), (c) and
14 (d) of this Section be in effect at the same time as any
15 retailers' occupation, use or service occupation tax
16 authorized under paragraphs (e), (f) and (g) of this Section is
17 in effect.
18     Any taxes imposed under the authority provided in
19 paragraphs (b), (c) and (d) shall remain in effect only until
20 the time as any tax authorized by paragraphs (e), (f) or (g) of
21 this Section are imposed and becomes effective. Once any tax
22 authorized by paragraphs (e), (f) or (g) is imposed the Board
23 may not reimpose taxes as authorized in paragraphs (b), (c) and
24 (d) of the Section unless any tax authorized by paragraphs (e),
25 (f) or (g) of this Section becomes ineffective by means other
26 than an ordinance of the Board.

 

 

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1     (q) Any existing rights, remedies and obligations
2 (including enforcement by the Regional Transportation
3 Authority) arising under any tax imposed under paragraphs (b),
4 (c) or (d) of this Section shall not be affected by the
5 imposition of a tax under paragraphs (e), (f) or (g) of this
6 Section.
7 (Source: P.A. 92-221, eff. 8-2-01; 92-651, eff. 7-11-02;
8 93-1068, eff. 1-15-05.)
 
9     (70 ILCS 3615/4.03.3 new)
10     Sec. 4.03.3. Distribution of Revenues. This Section
11 applies only after the Department begins administering and
12 enforcing an increased tax under Section 4.03(m) as authorized
13 by this amendatory Act of the 95th General Assembly. After
14 providing for payment of its obligations with respect to bonds
15 and notes issued under the provisions of Section 4.04 and
16 obligations related to those bonds and notes, the Authority
17 shall disburse the remaining proceeds from taxes it has
18 received from the Department of Revenue under this Article IV
19 and the remaining proceeds it has received from the State under
20 Section 4.09(a) as follows:
21     (a) With respect to taxes imposed by the Authority under
22 Section 4.03, after withholding 15% of 80% of the receipts from
23 those taxes collected in Cook County at a rate of 1.25%, 15% of
24 75% of the receipts from those taxes collected in Cook County
25 at the rate of 1%, 15% of one-half of the receipts from those

 

 

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1 taxes collected in DuPage, Kane, Lake, McHenry, and Will
2 Counties, and 15% of money received by the Authority from the
3 Regional Transportation Authority Occupation and Use Tax
4 Replacement Fund, the Board shall allocate the proceeds and
5 money remaining to the Service Boards as follows:
6         (1) an amount equal to (i) 85% of 80% of the receipts
7     from those taxes collected within the City of Chicago at a
8     rate of 1.25%, (ii) 85% of 75% of the receipts from those
9     taxes collected in the City of Chicago at the rate of 1%,
10     and (iii) 85% of the money received by the Authority on
11     account of transfers to the Regional Transportation
12     Authority Occupation and Use Tax Replacement Fund from the
13     County and Mass Transit District Fund attributable to
14     retail sales within the City of Chicago shall be allocated
15     to the Chicago Transit Authority;
16         (2) an amount equal to (i) 85% of 80% of the receipts
17     from those taxes collected within Cook County outside of
18     the City of Chicago at a rate of 1.25%, (ii) 85% of 75% of
19     the receipts from those taxes collected within Cook County
20     outside the City of Chicago at a rate of 1%, and (iii) 85%
21     of the money received by the Authority on account of
22     transfers to the Regional Transportation Authority
23     Occupation and Use Tax Replacement Fund from the County and
24     Mass Transit District Fund attributable to retail sales
25     within Cook County outside of the City of Chicago shall be
26     allocated 30% to the Chicago Transit Authority, 55% to the

 

 

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1     Commuter Rail Board, and 15% to the Suburban Bus Board; and
2         (3) an amount equal to 85% of one-half of the receipts
3     from the taxes collected within the Counties of DuPage,
4     Kane, Lake, McHenry, and Will shall be allocated 70% to the
5     Commuter Rail Board and 30% to the Suburban Bus Board.
6     (b) Moneys received by the Authority on account of
7 transfers to the Regional Transportation Authority Occupation
8 and Use Tax Replacement Fund from the State and Local Sales Tax
9 Reform Fund shall be allocated among the Authority and the
10 Service Boards as follows: 15% of such moneys shall be retained
11 by the Authority and the remaining 85% shall be transferred to
12 the Service Boards as soon as may be practicable after the
13 Authority receives payment. Moneys which are distributable to
14 the Service Boards pursuant to the preceding sentence shall be
15 allocated among the Service Boards on the basis of each Service
16 Board's distribution ratio. The term "distribution ratio"
17 means, for purposes of this subsection (b), the ratio of the
18 total amount distributed to a Service Board pursuant to
19 subsection (a) of Section 4.03.3 for the immediately preceding
20 calendar year to the total amount distributed to all of the
21 Service Boards pursuant to subsection (a) of Section 4.03.3 for
22 the immediately preceding calendar year.
23     (c)(i) 20% of the receipts from those taxes collected in
24 Cook County under Section 4.03 at the rate of 1.25%, (ii) 25%
25 of the receipts from those taxes collected in Cook County under
26 Section 4.03 at the rate of 1%, (iii) 50% of the receipts from

 

 

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1 those taxes collected in DuPage, Kane, Lake, McHenry, and Will
2 Counties under Section 4.03, and (iv) amounts received from the
3 State under Section 4.09 (a)(2) and items (i), (ii), and (iii)
4 of Section 4.09 (a)(3) shall be allocated as follows: in 2008,
5 $100,000,000 shall be deposited in the ADA Paratransit Fund
6 described in Section 2.01d, $20,000,000 shall be deposited in
7 the Suburban Community Mobility Fund described in Section
8 2.01e, and $10,000,000 shall be deposited in the Innovation,
9 Coordination and Enhancement Fund described in Section 2.01c,
10 and the balance shall be allocated 48% to the Chicago Transit
11 Authority, 39% to the Commuter Rail Board, and 13% to the
12 Suburban Bus Board; and in 2009 and each year thereafter, the
13 amounts deposited in the ADA Paratransit Fund, the Suburban
14 Community Mobility Fund and the Innovation, Coordination and
15 Enhancement Fund respectively shall equal the amount deposited
16 in the previous year increased or decreased by the percentage
17 growth or decline in revenues received by the Authority from
18 taxes imposed under Section 4.03 in the previous year, and the
19 balance shall be allocated 48% to the Chicago Transit
20 Authority, 39% to the Commuter Rail Board and 13% to the
21 Suburban bus Board.
22     (d) Amounts received from the State under Section 4.09
23 (a)(3)(iv) shall be distributed 100% to the Chicago Transit
24 Authority.
25     (e) With respect to those taxes collected in DuPage, Kane,
26 Lake, McHenry, and Will Counties and paid directly to the

 

 

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1 counties under Section 4.03, the County Board of each county
2 shall use those amounts to fund operating and capital costs of
3 public transportation services or facilities or to fund
4 operating, capital, right-of-way, construction, and
5 maintenance costs of other transportation purposes, including
6 road, bridge, public safety, and transit purposes intended to
7 improve mobility or reduce congestion in the county. The
8 receipt of funding by such counties pursuant to this paragraph
9 shall not be used as the basis for reducing any funds that such
10 counties would otherwise have received from the State of
11 Illinois, any agency or instrumentality thereof, the
12 Authority, or the Service Boards.
13     (f) The Authority by ordinance adopted by 12 of its then
14 Directors shall apportion to the Service Boards funds provided
15 by the State of Illinois under Section 4.09(a)(1) as it shall
16 determine and shall make payment of the amounts to each Service
17 Board as soon as may be practicable upon their receipt provided
18 the Authority has adopted a balanced budget as required by
19 Section 4.01 and further provided the Service Board is in
20 compliance with the requirements in Section 4.11.
21     (g) Beginning January 1, 2009, before making any payments,
22 transfers, or expenditures under this Section to a Service
23 Board, the Authority must first comply with Section 4.02a or
24 4.02b of this Act, whichever may be applicable.
 
25     (70 ILCS 3615/4.04)  (from Ch. 111 2/3, par. 704.04)

 

 

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1     Sec. 4.04. Issuance and Pledge of Bonds and Notes.
2     (a) The Authority shall have the continuing power to borrow
3 money and to issue its negotiable bonds or notes as provided in
4 this Section. Unless otherwise indicated in this Section, the
5 term "notes" also includes bond anticipation notes, which are
6 notes which by their terms provide for their payment from the
7 proceeds of bonds thereafter to be issued. Bonds or notes of
8 the Authority may be issued for any or all of the following
9 purposes: to pay costs to the Authority or a Service Board of
10 constructing or acquiring any public transportation facilities
11 (including funds and rights relating thereto, as provided in
12 Section 2.05 of this Act); to repay advances to the Authority
13 or a Service Board made for such purposes; to pay other
14 expenses of the Authority or a Service Board incident to or
15 incurred in connection with such construction or acquisition;
16 to provide funds for any transportation agency to pay principal
17 of or interest or redemption premium on any bonds or notes,
18 whether as such amounts become due or by earlier redemption,
19 issued prior to the date of this amendatory Act by such
20 transportation agency to construct or acquire public
21 transportation facilities or to provide funds to purchase such
22 bonds or notes; and to provide funds for any transportation
23 agency to construct or acquire any public transportation
24 facilities, to repay advances made for such purposes, and to
25 pay other expenses incident to or incurred in connection with
26 such construction or acquisition; and to provide funds for

 

 

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1 payment of obligations, including the funding of reserves,
2 under any self-insurance plan or joint self-insurance pool or
3 entity.
4     In addition to any other borrowing as may be authorized by
5 this Section, the Authority may issue its notes, from time to
6 time, in anticipation of tax receipts of the Authority or of
7 other revenues or receipts of the Authority, in order to
8 provide money for the Authority or the Service Boards to cover
9 any cash flow deficit which the Authority or a Service Board
10 anticipates incurring. Any such notes are referred to in this
11 Section as "Working Cash Notes". No Working Cash Notes shall be
12 issued for a term of longer than 24 18 months. Proceeds of
13 Working Cash Notes may be used to pay day to day operating
14 expenses of the Authority or the Service Boards, consisting of
15 wages, salaries and fringe benefits, professional and
16 technical services (including legal, audit, engineering and
17 other consulting services), office rental, furniture, fixtures
18 and equipment, insurance premiums, claims for self-insured
19 amounts under insurance policies, public utility obligations
20 for telephone, light, heat and similar items, travel expenses,
21 office supplies, postage, dues, subscriptions, public hearings
22 and information expenses, fuel purchases, and payments of
23 grants and payments under purchase of service agreements for
24 operations of transportation agencies, prior to the receipt by
25 the Authority or a Service Board from time to time of funds for
26 paying such expenses. In addition to any Working Cash Notes

 

 

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1 that the Board of the Authority may determine to issue, the
2 Suburban Bus Board, the Commuter Rail Board or the Board of the
3 Chicago Transit Authority may demand and direct that the
4 Authority issue its Working Cash Notes in such amounts and
5 having such maturities as the Service Board may determine.
6     Notwithstanding any other provision of this Act, any
7 amounts necessary to pay principal of and interest on any
8 Working Cash Notes issued at the demand and direction of a
9 Service Board or any Working Cash Notes the proceeds of which
10 were used for the direct benefit of a Service Board or any
11 other Bonds or Notes of the Authority the proceeds of which
12 were used for the direct benefit of a Service Board shall
13 constitute a reduction of the amount of any other funds
14 provided by the Authority to that Service Board. The Authority
15 shall, after deducting any costs of issuance, tender the net
16 proceeds of any Working Cash Notes issued at the demand and
17 direction of a Service Board to such Service Board as soon as
18 may be practicable after the proceeds are received. The
19 Authority may also issue notes or bonds to pay, refund or
20 redeem any of its notes and bonds, including to pay redemption
21 premiums or accrued interest on such bonds or notes being
22 renewed, paid or refunded, and other costs in connection
23 therewith. The Authority may also utilize the proceeds of any
24 such bonds or notes to pay the legal, financial, administrative
25 and other expenses of such authorization, issuance, sale or
26 delivery of bonds or notes or to provide or increase a debt

 

 

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1 service reserve fund with respect to any or all of its bonds or
2 notes. The Authority may also issue and deliver its bonds or
3 notes in exchange for any public transportation facilities,
4 (including funds and rights relating thereto, as provided in
5 Section 2.05 of this Act) or in exchange for outstanding bonds
6 or notes of the Authority, including any accrued interest or
7 redemption premium thereon, without advertising or submitting
8 such notes or bonds for public bidding.
9     (b) The ordinance providing for the issuance of any such
10 bonds or notes shall fix the date or dates of maturity, the
11 dates on which interest is payable, any sinking fund account or
12 reserve fund account provisions and all other details of such
13 bonds or notes and may provide for such covenants or agreements
14 necessary or desirable with regard to the issue, sale and
15 security of such bonds or notes. The rate or rates of interest
16 on its bonds or notes may be fixed or variable and the
17 Authority shall determine or provide for the determination of
18 the rate or rates of interest of its bonds or notes issued
19 under this Act in an ordinance adopted by the Authority prior
20 to the issuance thereof, none of which rates of interest shall
21 exceed that permitted in the Bond Authorization Act. Interest
22 may be payable at such times as are provided for by the Board.
23 Bonds and notes issued under this Section may be issued as
24 serial or term obligations, shall be of such denomination or
25 denominations and form, including interest coupons to be
26 attached thereto, be executed in such manner, shall be payable

 

 

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1 at such place or places and bear such date as the Authority
2 shall fix by the ordinance authorizing such bond or note and
3 shall mature at such time or times, within a period not to
4 exceed forty years from the date of issue, and may be
5 redeemable prior to maturity with or without premium, at the
6 option of the Authority, upon such terms and conditions as the
7 Authority shall fix by the ordinance authorizing the issuance
8 of such bonds or notes. No bond anticipation note or any
9 renewal thereof shall mature at any time or times exceeding 5
10 years from the date of the first issuance of such note. The
11 Authority may provide for the registration of bonds or notes in
12 the name of the owner as to the principal alone or as to both
13 principal and interest, upon such terms and conditions as the
14 Authority may determine. The ordinance authorizing bonds or
15 notes may provide for the exchange of such bonds or notes which
16 are fully registered, as to both principal and interest, with
17 bonds or notes which are registerable as to principal only. All
18 bonds or notes issued under this Section by the Authority other
19 than those issued in exchange for property or for bonds or
20 notes of the Authority shall be sold at a price which may be at
21 a premium or discount but such that the interest cost
22 (excluding any redemption premium) to the Authority of the
23 proceeds of an issue of such bonds or notes, computed to stated
24 maturity according to standard tables of bond values, shall not
25 exceed that permitted in the Bond Authorization Act. The
26 Authority shall notify the Governor's Office of Management and

 

 

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1 Budget and the State Comptroller at least 30 days before any
2 bond sale and shall file with the Governor's Office of
3 Management and Budget and the State Comptroller a certified
4 copy of any ordinance authorizing the issuance of bonds at or
5 before the issuance of the bonds. After December 31, 1994, any
6 such bonds or notes shall be sold to the highest and best
7 bidder on sealed bids as the Authority shall deem. As such
8 bonds or notes are to be sold the Authority shall advertise for
9 proposals to purchase the bonds or notes which advertisement
10 shall be published at least once in a daily newspaper of
11 general circulation published in the metropolitan region at
12 least 10 days before the time set for the submission of bids.
13 The Authority shall have the right to reject any or all bids.
14 Notwithstanding any other provisions of this Section, Working
15 Cash Notes or bonds or notes to provide funds for
16 self-insurance or a joint self-insurance pool or entity may be
17 sold either upon competitive bidding or by negotiated sale
18 (without any requirement of publication of intention to
19 negotiate the sale of such Notes), as the Board shall determine
20 by ordinance adopted with the affirmative votes of at least 7
21 Directors. In case any officer whose signature appears on any
22 bonds, notes or coupons authorized pursuant to this Section
23 shall cease to be such officer before delivery of such bonds or
24 notes, such signature shall nevertheless be valid and
25 sufficient for all purposes, the same as if such officer had
26 remained in office until such delivery. Neither the Directors

 

 

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1 of the Authority nor any person executing any bonds or notes
2 thereof shall be liable personally on any such bonds or notes
3 or coupons by reason of the issuance thereof.
4     (c) All bonds or notes of the Authority issued pursuant to
5 this Section shall be general obligations of the Authority to
6 which shall be pledged the full faith and credit of the
7 Authority, as provided in this Section. Such bonds or notes
8 shall be secured as provided in the authorizing ordinance,
9 which may, notwithstanding any other provision of this Act,
10 include in addition to any other security, a specific pledge or
11 assignment of and lien on or security interest in any or all
12 tax receipts of the Authority and on any or all other revenues
13 or moneys of the Authority from whatever source, which may by
14 law be utilized for debt service purposes and a specific pledge
15 or assignment of and lien on or security interest in any funds
16 or accounts established or provided for by the ordinance of the
17 Authority authorizing the issuance of such bonds or notes. Any
18 such pledge, assignment, lien or security interest for the
19 benefit of holders of bonds or notes of the Authority shall be
20 valid and binding from the time the bonds or notes are issued
21 without any physical delivery or further act and shall be valid
22 and binding as against and prior to the claims of all other
23 parties having claims of any kind against the Authority or any
24 other person irrespective of whether such other parties have
25 notice of such pledge, assignment, lien or security interest.
26 The obligations of the Authority incurred pursuant to this

 

 

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1 Section shall be superior to and have priority over any other
2 obligations of the Authority.
3     The Authority may provide in the ordinance authorizing the
4 issuance of any bonds or notes issued pursuant to this Section
5 for the creation of, deposits in, and regulation and
6 disposition of sinking fund or reserve accounts relating to
7 such bonds or notes. The ordinance authorizing the issuance of
8 any bonds or notes pursuant to this Section may contain
9 provisions as part of the contract with the holders of the
10 bonds or notes, for the creation of a separate fund to provide
11 for the payment of principal and interest on such bonds or
12 notes and for the deposit in such fund from any or all the tax
13 receipts of the Authority and from any or all such other moneys
14 or revenues of the Authority from whatever source which may by
15 law be utilized for debt service purposes, all as provided in
16 such ordinance, of amounts to meet the debt service
17 requirements on such bonds or notes, including principal and
18 interest, and any sinking fund or reserve fund account
19 requirements as may be provided by such ordinance, and all
20 expenses incident to or in connection with such fund and
21 accounts or the payment of such bonds or notes. Such ordinance
22 may also provide limitations on the issuance of additional
23 bonds or notes of the Authority. No such bonds or notes of the
24 Authority shall constitute a debt of the State of Illinois.
25 Nothing in this Act shall be construed to enable the Authority
26 to impose any ad valorem tax on property.

 

 

09500SB0572ham003 - 196 - LRB095 04708 HLH 38603 a

1     (d) The ordinance of the Authority authorizing the issuance
2 of any bonds or notes may provide additional security for such
3 bonds or notes by providing for appointment of a corporate
4 trustee (which may be any trust company or bank having the
5 powers of a trust company within the state) with respect to
6 such bonds or notes. The ordinance shall prescribe the rights,
7 duties and powers of the trustee to be exercised for the
8 benefit of the Authority and the protection of the holders of
9 such bonds or notes. The ordinance may provide for the trustee
10 to hold in trust, invest and use amounts in funds and accounts
11 created as provided by the ordinance with respect to the bonds
12 or notes. The ordinance may provide for the assignment and
13 direct payment to the trustee of any or all amounts produced
14 from the sources provided in Section 4.03 and Section 4.09 of
15 this Act and provided in Section 6z-17 of "An Act in relation
16 to State finance", approved June 10, 1919, as amended. Upon
17 receipt of notice of any such assignment, the Department of
18 Revenue and the Comptroller of the State of Illinois shall
19 thereafter, notwithstanding the provisions of Section 4.03 and
20 Section 4.09 of this Act and Section 6z-17 of "An Act in
21 relation to State finance", approved June 10, 1919, as amended,
22 provide for such assigned amounts to be paid directly to the
23 trustee instead of the Authority, all in accordance with the
24 terms of the ordinance making the assignment. The ordinance
25 shall provide that amounts so paid to the trustee which are not
26 required to be deposited, held or invested in funds and

 

 

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1 accounts created by the ordinance with respect to bonds or
2 notes or used for paying bonds or notes to be paid by the
3 trustee to the Authority.
4     (e) Any bonds or notes of the Authority issued pursuant to
5 this Section shall constitute a contract between the Authority
6 and the holders from time to time of such bonds or notes. In
7 issuing any bond or note, the Authority may include in the
8 ordinance authorizing such issue a covenant as part of the
9 contract with the holders of the bonds or notes, that as long
10 as such obligations are outstanding, it shall make such
11 deposits, as provided in paragraph (c) of this Section. It may
12 also so covenant that it shall impose and continue to impose
13 taxes, as provided in Section 4.03 of this Act and in addition
14 thereto as subsequently authorized by law, sufficient to make
15 such deposits and pay the principal and interest and to meet
16 other debt service requirements of such bonds or notes as they
17 become due. A certified copy of the ordinance authorizing the
18 issuance of any such obligations shall be filed at or prior to
19 the issuance of such obligations with the Comptroller of the
20 State of Illinois and the Illinois Department of Revenue.
21     (f) The State of Illinois pledges to and agrees with the
22 holders of the bonds and notes of the Authority issued pursuant
23 to this Section that the State will not limit or alter the
24 rights and powers vested in the Authority by this Act so as to
25 impair the terms of any contract made by the Authority with
26 such holders or in any way impair the rights and remedies of

 

 

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1 such holders until such bonds and notes, together with interest
2 thereon, with interest on any unpaid installments of interest,
3 and all costs and expenses in connection with any action or
4 proceedings by or on behalf of such holders, are fully met and
5 discharged. In addition, the State pledges to and agrees with
6 the holders of the bonds and notes of the Authority issued
7 pursuant to this Section that the State will not limit or alter
8 the basis on which State funds are to be paid to the Authority
9 as provided in this Act, or the use of such funds, so as to
10 impair the terms of any such contract. The Authority is
11 authorized to include these pledges and agreements of the State
12 in any contract with the holders of bonds or notes issued
13 pursuant to this Section.
14     (g) (1) Except as provided in subdivisions (g)(2) and
15     (g)(3) of Section 4.04 of this Act, the Authority shall not
16     at any time issue, sell or deliver any bonds or notes
17     (other than Working Cash Notes) pursuant to this Section
18     4.04 which will cause it to have issued and outstanding at
19     any time in excess of $800,000,000 of such bonds and notes
20     (other than Working Cash Notes). The Authority shall not at
21     any time issue, sell, or deliver any Working Cash Notes
22     pursuant to this Section that will cause it to have issued
23     and outstanding at any time in excess of $100,000,000.
24     Notwithstanding the foregoing, before January 1, 2009, the
25     Authority may issue and have outstanding an additional
26     $300,000,000 in Working Cash Notes, provided that no such

 

 

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1     note shall mature later than December 31, 2010. The
2     Authority shall not at any time issue, sell or deliver any
3     Working Cash Notes pursuant to this Section which will
4     cause it to have issued and outstanding at any time in
5     excess of $100,000,000 of Working Cash Notes. Bonds or
6     notes which are being paid or retired by such issuance,
7     sale or delivery of bonds or notes, and bonds or notes for
8     which sufficient funds have been deposited with the paying
9     agency of such bonds or notes to provide for payment of
10     principal and interest thereon or to provide for the
11     redemption thereof, all pursuant to the ordinance
12     authorizing the issuance of such bonds or notes, shall not
13     be considered to be outstanding for the purposes of the
14     first two sentences of this subsection.
15         (2) In addition to the authority provided by paragraphs
16     (1) and (3), the Authority is authorized to issue, sell and
17     deliver bonds or notes for Strategic Capital Improvement
18     Projects approved pursuant to Section 4.13 as follows:
19         $100,000,000 is authorized to be issued on or after
20     January 1, 1990;
21         an additional $100,000,000 is authorized to be issued
22     on or after January 1, 1991;
23         an additional $100,000,000 is authorized to be issued
24     on or after January 1, 1992;
25         an additional $100,000,000 is authorized to be issued
26     on or after January 1, 1993;

 

 

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1         an additional $100,000,000 is authorized to be issued
2     on or after January 1, 1994; and
3         the aggregate total authorization of bonds and notes
4     for Strategic Capital Improvement Projects as of January 1,
5     1994, shall be $500,000,000.
6         The Authority is also authorized to issue, sell, and
7     deliver bonds or notes in such amounts as are necessary to
8     provide for the refunding or advance refunding of bonds or
9     notes issued for Strategic Capital Improvement Projects
10     under this subdivision (g)(2), provided that no such
11     refunding bond or note shall mature later than the final
12     maturity date of the series of bonds or notes being
13     refunded, and provided further that the debt service
14     requirements for such refunding bonds or notes in the
15     current or any future fiscal year shall not exceed the debt
16     service requirements for that year on the refunded bonds or
17     notes.
18         (3) In addition to the authority provided by paragraphs
19     (1) and (2), the Authority is authorized to issue, sell,
20     and deliver bonds or notes for Strategic Capital
21     Improvement Projects approved pursuant to Section 4.13 as
22     follows:
23         $260,000,000 is authorized to be issued on or after
24     January 1, 2000;
25         an additional $260,000,000 is authorized to be issued
26     on or after January 1, 2001;

 

 

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1         an additional $260,000,000 is authorized to be issued
2     on or after January 1, 2002;
3         an additional $260,000,000 is authorized to be issued
4     on or after January 1, 2003;
5         an additional $260,000,000 is authorized to be issued
6     on or after January 1, 2004; and
7         the aggregate total authorization of bonds and notes
8     for Strategic Capital Improvement Projects pursuant to
9     this paragraph (3) as of January 1, 2004 shall be
10     $1,300,000,000.
11         The Authority is also authorized to issue, sell, and
12     deliver bonds or notes in such amounts as are necessary to
13     provide for the refunding or advance refunding of bonds or
14     notes issued for Strategic Capital Improvement projects
15     under this subdivision (g)(3), provided that no such
16     refunding bond or note shall mature later than the final
17     maturity date of the series of bonds or notes being
18     refunded, and provided further that the debt service
19     requirements for such refunding bonds or notes in the
20     current or any future fiscal year shall not exceed the debt
21     service requirements for that year on the refunded bonds or
22     notes.
23     (h) The Authority, subject to the terms of any agreements
24 with noteholders or bond holders as may then exist, shall have
25 power, out of any funds available therefor, to purchase notes
26 or bonds of the Authority, which shall thereupon be cancelled.

 

 

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1     (i) In addition to any other authority granted by law, the
2 State Treasurer may, with the approval of the Governor, invest
3 or reinvest, at a price not to exceed par, any State money in
4 the State Treasury which is not needed for current expenditures
5 due or about to become due in Working Cash Notes.
6 (Source: P.A. 94-793, eff. 5-19-06.)
 
7     (70 ILCS 3615/4.09)  (from Ch. 111 2/3, par. 704.09)
8     Sec. 4.09. Public Transportation Fund and the Regional
9 Transportation Authority Occupation and Use Tax Replacement
10 Fund.
11     (a)(1) (a) As soon as possible after the first day of each
12 month, beginning November 1, 1983, the Comptroller shall order
13 transferred and the Treasurer shall transfer from the General
14 Revenue Fund to a special fund in the State Treasury, to be
15 known as the "Public Transportation Fund" $9,375,000 for each
16 month remaining in State fiscal year 1984. As soon as possible
17 after the first day of each month, beginning July 1, 1984, upon
18 certification of the Department of Revenue, the Comptroller
19 shall order transferred and the Treasurer shall transfer from
20 the General Revenue Fund to the Public Transportation Fund an
21 amount equal to 25% of the net revenue, before the deduction of
22 the serviceman and retailer discounts pursuant to Section 9 of
23 the Service Occupation Tax Act and Section 3 of the Retailers'
24 Occupation Tax Act, realized from (i) 80% of the proceeds of
25 any tax imposed by the Authority at a rate of 1.25% in Cook

 

 

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1 County, (ii) 75% of the proceeds of any tax imposed by the
2 Authority at the rate of 1% in Cook County, and (iii) one-third
3 of the proceeds of any tax imposed by the Authority at the rate
4 of 0.75% in the Counties of DuPage, Kane, Lake, McHenry, and
5 Will pursuant to Sections 4.03 and 4.03.1 and 25% of the
6 amounts deposited into the Regional Transportation Authority
7 tax fund created by Section 4.03 of this Act, from the County
8 and Mass Transit District Fund as provided in Section 6z-20 of
9 the State Finance Act and 25% of the amounts deposited into the
10 Regional Transportation Authority Occupation and Use Tax
11 Replacement Fund from the State and Local Sales Tax Reform Fund
12 as provided in Section 6z-17 of the State Finance Act. As used
13 in this Section, net Net revenue realized for a month shall be
14 the revenue collected by the State pursuant to Sections 4.03
15 and 4.03.1 during the previous month from within the
16 metropolitan region, less the amount paid out during that same
17 month as refunds to taxpayers for overpayment of liability in
18 the metropolitan region under Sections 4.03 and 4.03.1.
19     (2) On the first day of the month following the effective
20 date of this amendatory Act of the 95th General Assembly and
21 each month thereafter, upon certification by the Department of
22 Revenue, the Comptroller shall order transferred and the
23 Treasurer shall transfer from the General Revenue Fund to the
24 Public Transportation Fund an amount equal to 5% of the net
25 revenue, before the deduction of the serviceman and retailer
26 discounts pursuant to Section 9 of the Service Occupation Tax

 

 

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1 Act and Section 3 of the Retailers' Occupation Tax Act,
2 realized from the proceeds of any tax imposed by the Authority
3 under the provisions of Section 4.03 and certified by the
4 Department of Revenue under Section 4.03(n) of this Act to be
5 paid to the Authority and 5% of the revenue realized by the
6 Chicago Transit Authority as financial assistance from the City
7 of Chicago from the proceeds of any tax imposed by the City
8 under Section 8-3-19 of the Illinois Municipal Code.
9     (3) As soon as possible after the first day of January,
10 2009 and each month thereafter, upon certification of the
11 Department of Revenue with respect to the taxes collected under
12 Section 4.03, the Comptroller shall order transferred and the
13 Treasurer shall transfer from the General Revenue Fund to the
14 Public Transportation Fund an amount equal to 25% of the net
15 revenue, before the deduction of the serviceman and retailer
16 discounts pursuant to Section 9 of the Service Occupation Tax
17 Act and Section 3 of the Retailers' Occupation Tax Act,
18 realized from (i) 20% of the proceeds of any tax imposed by the
19 Authority at a rate of 1.25% in Cook County, (ii) 25% of the
20 proceeds of any tax imposed by the Authority at the rate of 1%
21 in Cook County, and (iii) one-third of the proceeds of any tax
22 imposed by the Authority at the rate of 0.75% in the Counties
23 of DuPage, Kane, Lake, McHenry, and Will, all pursuant to
24 Section 4.03, and (iv) 25% of the revenue realized by the
25 Chicago Transit Authority as financial assistance from the City
26 of Chicago from the proceeds of any tax imposed by the City

 

 

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1 under Section 8-3-19 of the Municipal Code.
2     (b)(1) All moneys deposited in the Public Transportation
3 Fund and the Regional Transportation Authority Occupation and
4 Use Tax Replacement Fund, whether deposited pursuant to this
5 Section or otherwise, are allocated to the Authority. Pursuant
6 to appropriation, the Comptroller, as soon as possible after
7 each monthly transfer provided in this Section and after each
8 deposit into the Public Transportation Fund, shall order the
9 Treasurer to pay to the Authority out of the Public
10 Transportation Fund the amount so transferred or deposited. Any
11 additional State assistance and additional financial
12 assistance paid to the Authority under this Section shall be
13 expended by the Authority for its purposes as provided in this
14 Act. The balance of the amounts paid to the Authority from the
15 Public Transportation Fund shall be expended by the Authority
16 as provided in Section 4.03.3. Such amounts paid to the
17 Authority may be expended by it for its purposes as provided in
18 this Act. Subject to appropriation to the Department of
19 Revenue, the Comptroller, as soon as possible after each
20 deposit into the Regional Transportation Authority Occupation
21 and Use Tax Replacement Fund provided in this Section and
22 Section 6z-17 of the State Finance Act, shall order the
23 Treasurer to pay to the Authority out of the Regional
24 Transportation Authority Occupation and Use Tax Replacement
25 Fund the amount so deposited. Such amounts paid to the
26 Authority may be expended by it for its purposes as provided in

 

 

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1 this Act. (2) Provided, however, no moneys deposited under
2 subsection (a) of this Section shall be paid from the Public
3 Transportation Fund to the Authority or its assignee for any
4 fiscal year beginning after the effective date of this
5 amendatory Act of 1983 until the Authority has certified to the
6 Governor, the Comptroller, and the Mayor of the City of Chicago
7 that it has adopted for that fiscal year an Annual Budget and
8 Two-Year Financial Plan a budget and financial plan meeting the
9 requirements in Section 4.01(b).
10     (c) In recognition of the efforts of the Authority to
11 enhance the mass transportation facilities under its control,
12 the State shall provide financial assistance ("Additional
13 State Assistance") in excess of the amounts transferred to the
14 Authority from the General Revenue Fund under subsection (a) of
15 this Section. Additional State Assistance shall be calculated
16 as provided in subsection (d), but shall in no event exceed the
17 following specified amounts with respect to the following State
18 fiscal years:
19        1990$5,000,000;
20        1991$5,000,000;
21        1992$10,000,000;
22        1993$10,000,000;
23        1994$20,000,000;
24        1995$30,000,000;
25        1996$40,000,000;
26        1997$50,000,000;

 

 

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1        1998$55,000,000; and
2        each year thereafter$55,000,000.
3     (c-5) The State shall provide financial assistance
4 ("Additional Financial Assistance") in addition to the
5 Additional State Assistance provided by subsection (c) and the
6 amounts transferred to the Authority from the General Revenue
7 Fund under subsection (a) of this Section. Additional Financial
8 Assistance provided by this subsection shall be calculated as
9 provided in subsection (d), but shall in no event exceed the
10 following specified amounts with respect to the following State
11 fiscal years:
12        2000$0;
13        2001$16,000,000;
14        2002$35,000,000;
15        2003$54,000,000;
16        2004$73,000,000;
17        2005$93,000,000; and
18        each year thereafter$100,000,000.
19     (d) Beginning with State fiscal year 1990 and continuing
20 for each State fiscal year thereafter, the Authority shall
21 annually certify to the State Comptroller and State Treasurer,
22 separately with respect to each of subdivisions (g)(2) and
23 (g)(3) of Section 4.04 of this Act, the following amounts:
24         (1) The amount necessary and required, during the State
25     fiscal year with respect to which the certification is
26     made, to pay its obligations for debt service on all

 

 

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1     outstanding bonds or notes issued by the Authority under
2     subdivisions (g)(2) and (g)(3) of Section 4.04 of this Act.
3         (2) An estimate of the amount necessary and required to
4     pay its obligations for debt service for any bonds or notes
5     which the Authority anticipates it will issue under
6     subdivisions (g)(2) and (g)(3) of Section 4.04 during that
7     State fiscal year.
8         (3) Its debt service savings during the preceding State
9     fiscal year from refunding or advance refunding of bonds or
10     notes issued under subdivisions (g)(2) and (g)(3) of
11     Section 4.04.
12         (4) The amount of interest, if any, earned by the
13     Authority during the previous State fiscal year on the
14     proceeds of bonds or notes issued pursuant to subdivisions
15     (g)(2) and (g)(3) of Section 4.04, other than refunding or
16     advance refunding bonds or notes.
17     The certification shall include a specific schedule of debt
18 service payments, including the date and amount of each payment
19 for all outstanding bonds or notes and an estimated schedule of
20 anticipated debt service for all bonds and notes it intends to
21 issue, if any, during that State fiscal year, including the
22 estimated date and estimated amount of each payment.
23     Immediately upon the issuance of bonds for which an
24 estimated schedule of debt service payments was prepared, the
25 Authority shall file an amended certification with respect to
26 item (2) above, to specify the actual schedule of debt service

 

 

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1 payments, including the date and amount of each payment, for
2 the remainder of the State fiscal year.
3     On the first day of each month of the State fiscal year in
4 which there are bonds outstanding with respect to which the
5 certification is made, the State Comptroller shall order
6 transferred and the State Treasurer shall transfer from the
7 General Revenue Fund to the Public Transportation Fund the
8 Additional State Assistance and Additional Financial
9 Assistance in an amount equal to the aggregate of (i)
10 one-twelfth of the sum of the amounts certified under items (1)
11 and (3) above less the amount certified under item (4) above,
12 plus (ii) the amount required to pay debt service on bonds and
13 notes issued during the fiscal year, if any, divided by the
14 number of months remaining in the fiscal year after the date of
15 issuance, or some smaller portion as may be necessary under
16 subsection (c) or (c-5) of this Section for the relevant State
17 fiscal year, plus (iii) any cumulative deficiencies in
18 transfers for prior months, until an amount equal to the sum of
19 the amounts certified under items (1) and (3) above, plus the
20 actual debt service certified under item (2) above, less the
21 amount certified under item (4) above, has been transferred;
22 except that these transfers are subject to the following