Rep. Julie Hamos

Filed: 1/9/2008

 

 


 

 


 
09500SB0572ham013 LRB095 04708 HLH 43113 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, 2040;
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 adopted an ordinance imposing a tax on
18         the privilege of transferring title to real estate in
19         the City of Chicago in an amount up to $1.50 per $500
20         of value or fraction thereof.
21         (2) The Board of Trustees of the Retirement Plan for
22     Chicago Transit Authority Employees shall submit a
23     certification that the Retirement Plan for Chicago Transit
24     Authority Employees is operating in accordance with all
25     applicable legal and contractual requirements, including
26     the following:

 

 

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1             (A) the members of a new Board of Trustees have
2         been appointed according to the requirements of
3         Section 22-101(b) of the Illinois Pension Code; and
4             (B) contribution levels for employees and the
5         Authority have been established according to the
6         requirements of Section 22-101(d) of the Illinois
7         Pension Code.
8         (3) Actuarial Report. The Board of Trustees of the
9     Retirement Plan for Chicago Transit Authority Employees
10     shall submit an actuarial report prepared by an enrolled
11     actuary setting forth:
12             (A) the method of valuation and the underlying
13         assumptions;
14             (B) a comparison of the debt service schedules of
15         the bonds or notes proposed to be issued to the
16         Retirement Plan's current unfunded actuarial accrued
17         liability amortization schedule, as required by
18         Section 22-101(e) of the Illinois Pension Code, using
19         the projected interest cost of the bond or note issue
20         as the discount rate to calculate the estimated net
21         present value savings;
22             (C) the amount of the estimated net present value
23             savings comparing the true interest cost of the
24             bonds or notes with the actuarial investment
25             return assumption of the Retirement Plan; and
26             (D) a certification that the net proceeds of the

 

 

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1             bonds or notes, together with anticipated earnings
2             on contributions and deposits, will be sufficient
3             to reasonably conclude on an actuarial basis that
4             the total retirement assets of the Retirement Plan
5             will not be less than 90% of its liabilities by the
6             end of fiscal year 2059.
7         (4) The Authority shall submit a financial analysis
8     prepared by an independent advisor. The financial analysis
9     must include a determination that the issuance of bonds is
10     in the best interest of the Retirement Plan for Chicago
11     Transit Authority Employees and the Chicago Transit
12     Authority. The independent advisor shall not act as
13     underwriter or receive a legal, consulting, or other fee
14     related to the issuance of any bond or notes issued by the
15     Authority pursuant to Section 12c of the Metropolitan
16     Transit Authority Act except compensation due for the
17     preparation of the financial analysis.
18         (5) Retiree Health Care Trust Documentation. The
19     Authority shall submit a certification that:
20             (A) it is legally authorized to issue the bonds or
21         notes;
22             (B) scheduled annual payments of principal and
23         interest on the bonds and notes to be issued meets the
24         requirements of Section 12c(b)(5) of the Metropolitan
25         Transit Authority Act;
26             (C) no bond or note shall mature later than

 

 

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1         December 31, 2040;
2             (D) after payment of costs of issuance and
3         necessary deposits to funds and accounts established
4         with respect to debt service on the bonds or notes, the
5         net bond and note proceeds (exclusive of any proceeds
6         to be used to refund outstanding bonds or notes) will
7         be deposited in the Retiree Health Care Trust and used
8         only for the purposes required by Section 22-101B of
9         the Illinois Pension Code; and
10             (E) it has adopted an ordinance imposing a tax on
11         the privilege of transferring title to real estate in
12         the City of Chicago in an amount up to $1.50 per $500
13         of value or fraction thereof.
14         (6) The Board of Trustees of the Retiree Health Care
15     Trust shall submit a certification that the Retiree Health
16     Care Trust has been established in accordance with all
17     applicable legal requirements, including the following:
18             (A) the Retiree Health Care Trust has been
19         established and a Trust document is in effect to govern
20         the Retiree Health Care Trust;
21             (B) the members of the Board of Trustees of the
22         Retiree Health Care Trust have been appointed
23         according to the requirements of Section 22-101B(b)(1)
24         of the Illinois Pension Code;
25             (C) a health care benefit program for eligible
26         retirees and their dependents and survivors has been

 

 

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1         established by the Board of Trustees according to the
2         requirements of Section 22-101B(b)(2) of the Illinois
3         Pension Code;
4             (D) contribution levels have been established for
5         retirees, dependents and survivors according to the
6         requirements of Section 22-101B(b)(5) of the Illinois
7         Pension Code; and
8             (E) contribution levels have been established for
9         employees of the Authority according to the
10         requirements of Section 22-101B(b)(6) of the Illinois
11         Pension Code.
12         (7) Actuarial Report. The Board of Trustees of the
13     Retiree Health Care Trust shall submit an actuarial report
14     prepared by an enrolled actuary setting forth:
15             (A) the method of valuation and the underlying
16         assumptions;
17             (B) a comparison of the projected interest cost of
18         the bonds or notes proposed to be issued with the
19         actuarial investment return assumption of the Retiree
20         Health Care Trust; and
21             (C) a certification that the net proceeds of the
22         bonds or notes, together with anticipated earnings on
23         contributions and deposits, will be sufficient to
24         adequately fund the actuarial present value of
25         projected benefits expected to be paid under the
26         Retiree Health Care Trust, or a certification of the

 

 

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1         increases in contribution levels and decreases in
2         benefit levels that would be required in order to cure
3         any funding shortfall over a period of not more than 10
4         years.
5         (8) The Authority shall submit a financial analysis
6     prepared by an independent advisor. The financial analysis
7     must include a determination that the issuance of bonds is
8     in the best interest of the Retiree Health Care Trust and
9     the Chicago Transit Authority. The independent advisor
10     shall not act as underwriter or receive a legal,
11     consulting, or other fee related to the issuance of any
12     bond or notes issued by the Authority pursuant to Section
13     12c of the Metropolitan Transit Authority Act except
14     compensation due for the preparation of the financial
15     analysis.
16     (b) The Auditor General shall examine the information
17 submitted pursuant to Section 3-2.3(a)(1) through (4) and
18 submit a report to the General Assembly, the Legislative Audit
19 Commission, the Governor, the Regional Transportation
20 Authority and the Authority indicating whether (i) the required
21 certifications by the Authority and the Board of Trustees of
22 the Retirement Plan have been made, and (ii) the actuarial
23 reports have been provided, the reports include all required
24 information, the assumptions underlying those reports are not
25 unreasonable in the aggregate, and the reports appear to comply
26 with all pertinent professional standards, including those

 

 

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

 

 

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1 (2) of subsection (b) of Section 12c of the Metropolitan
2 Transit Authority Act shall be issued within 120 days after
3 receiving such report from the Auditor General. The Authority
4 may not issue bonds or notes until it receives a report from
5 the Auditor General indicating the above requirements have been
6 met.
7     (d) In fulfilling this duty, after receiving the
8 information submitted pursuant to Section 3-2.3(a), the
9 Auditor General may request additional information and support
10 pertaining to the data and conclusions contained in the
11 submitted documents and the Authority, the Board of Trustees of
12 the Retirement Plan and the Board of Trustees of the Retiree
13 Health Care Trust shall cooperate with the Auditor General and
14 provide additional information as requested in a timely manner.
15 The Auditor General may also request from the Regional
16 Transportation Authority an analysis of the information
17 submitted by the Authority relating to the sources of funds to
18 be utilized for payment of the proposed bonds or notes of the
19 Authority. The Auditor General's report shall not be in the
20 nature of a post-audit or examination and shall not lead to the
21 issuance of an opinion as that term is defined in generally
22 accepted government auditing standards.
23     (e) Annual Retirement Plan Submission to Auditor General.
24 The Board of Trustees of the Retirement Plan for Chicago
25 Transit Authority Employees established by Section 22-101 of
26 the Illinois Pension Code shall provide the following documents

 

 

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1 to the Auditor General annually no later than September 30:
2         (1) the most recent audit or examination of the
3     Retirement Plan;
4         (2) an annual statement containing the information
5     specified in Section 1A-109 of the Illinois Pension Code;
6     and
7         (3) a complete actuarial statement applicable to the
8     prior plan year, which may be the annual report of an
9     enrolled actuary retained by the Retirement Plan specified
10     in Section 22-101(e) of the Illinois Pension Code.
11     The Auditor General shall annually examine the information
12 provided pursuant to this subsection and shall submit a report
13 of the analysis thereof to the General Assembly, including the
14 report specified in Section 22-101(e) of the Illinois Pension
15 Code.
16     (f) The Auditor General shall annually examine the
17 information submitted pursuant to Section 22-101B(b)(3)(iii)
18 of the Illinois Pension Code and shall prepare the
19 determination specified in Section 22-101B(b)(3)(iv) of the
20 Illinois Pension Code.
21     (g) In fulfilling the duties under Sections 3-2.3(e) and
22 (f) the Auditor General may request additional information and
23 support pertaining to the data and conclusions contained in the
24 submitted documents and the Authority, the Board of Trustees of
25 the Retirement Plan and the Board of Trustees of the Retiree
26 Health Care Trust shall cooperate with the Auditor General and

 

 

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1 provide additional information as requested in a timely manner.
2 The Auditor General's review shall not be in the nature of a
3 post-audit or examination and shall not lead to the issuance of
4 an opinion as that term is defined in generally accepted
5 government auditing standards. Upon request of the Auditor
6 General, the Commission on Government Forecasting and
7 Accountability and the Public Pension Division of the Illinois
8 Department of Financial and Professional Regulation shall
9 cooperate with and assist the Auditor General in the conduct of
10 his review.
11     (h) The Auditor General shall submit a bill to the
12 Authority for costs associated with the examinations and
13 reports specified in subsections (b) and (c) of this Section
14 3-2.3, which the Authority shall reimburse in a timely manner.
15 The costs associated with the examinations and reports which
16 are reimbursed by the Authority shall constitute a cost of
17 issuance of the bonds or notes under Section 12c(b)(1) and (2)
18 of the Metropolitan Transit Authority Act. The amount received
19 shall be deposited into the fund or funds from which such costs
20 were paid by the Auditor General. The Auditor General shall
21 submit a bill to the Retirement Plan for Chicago Transit
22 Authority Employees for costs associated with the examinations
23 and reports specified in subsection (e) of this Section, which
24 the Retirement Plan for Chicago Transit Authority Employees
25 shall reimburse in a timely manner. The amount received shall
26 be deposited into the fund or funds from which such costs were

 

 

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1 paid by the Auditor General. The Auditor General shall submit a
2 bill to the Retiree Health Care Trust for costs associated with
3 the determination specified in subsection (f) of this Section,
4 which the Retiree Health Care Trust shall reimburse in a timely
5 manner. The amount received shall be deposited into the fund or
6 funds from which such costs were paid by the Auditor General.
 
7     Section 6. The State Finance Act is amended by adding
8 Section 5.708 and by changing Section 6z-17 as follows:
 
9     (30 ILCS 105/5.708 new)
10     Sec. 5.708. The Downstate Transit Improvement Fund.
 
11     (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)
12     Sec. 6z-17. Of the money paid into the State and Local
13 Sales Tax Reform Fund: (i) subject to appropriation to the
14 Department of Revenue, Municipalities having 1,000,000 or more
15 inhabitants shall receive 20% and may expend such amount to
16 fund and establish a program for developing and coordinating
17 public and private resources targeted to meet the affordable
18 housing needs of low-income and very low-income households
19 within such municipality, (ii) 10% shall be transferred into
20 the Regional Transportation Authority Occupation and Use Tax
21 Replacement Fund, a special fund in the State treasury which is
22 hereby created, (iii) subject to appropriation to the
23 Department of Transportation, The Madison County Metro East

 

 

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1 Mass Transit District shall receive .6%, (iv) the following
2 amounts, plus any cumulative deficiency in such transfers for
3 prior months, shall be transferred monthly into the Build
4 Illinois Fund and credited to the Build Illinois Bond Account
5 therein:
6Fiscal YearAmount
71990$2,700,000
819911,850,000
919922,750,000
1019932,950,000
11     From Fiscal Year 1994 through Fiscal Year 2025 the transfer
12 shall total $3,150,000 monthly, plus any cumulative deficiency
13 in such transfers for prior months, and (v) the remainder of
14 the money paid into the State and Local Sales Tax Reform Fund
15 shall be transferred into the Local Government Distributive
16 Fund and, except for municipalities with 1,000,000 or more
17 inhabitants which shall receive no portion of such remainder,
18 shall be distributed, subject to appropriation, in the manner
19 provided by Section 2 of "An Act in relation to State revenue
20 sharing with local government entities", approved July 31,
21 1969, as now or hereafter amended. Municipalities with more
22 than 50,000 inhabitants according to the 1980 U.S. Census and
23 located within the Metro East Mass Transit District receiving
24 funds pursuant to provision (v) of this paragraph may expend
25 such amounts to fund and establish a program for developing and
26 coordinating public and private resources targeted to meet the

 

 

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1 affordable housing needs of low-income and very low-income
2 households within such municipality.
3 (Source: P.A. 91-51, eff. 6-30-99.)
 
4     Section 7. The Downstate Public Transportation Act is
5 amended by changing Sections 2-2.04, 2-3, 2-6, 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
24 of the "Urban Mass Transportation Act of 1964", as amended; (h)

 

 

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

 

 

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

 

 

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

 

 

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1 State fiscal year in which it received its initial
2 appropriation, plus, in each year, a 10% increase over the
3 preceding year. For the initial State fiscal year in which a
4 participant received an appropriation, the maximum eligible
5 operating expenses for any such participant shall be the amount
6 of projected operating expenses upon which the appropriation
7 for that participant for that State fiscal year is based.
8     With respect to the District serving primarily the counties
9 of Monroe and St. Clair, beginning July 1, 2005, the St. Clair
10 County Transit District shall no longer be included for new
11 appropriation funding purposes as part of the Metro-East Public
12 Transportation Fund and instead shall be included for new
13 appropriation funding purposes as part of the Downstate Public
14 Transportation Fund; provided, however, that nothing herein
15 shall alter the eligibility of that District for previously
16 appropriated funds to which it would otherwise be entitled.
17     With respect to the District serving primarily Madison
18 County, beginning July 1, 2008, the Madison County Transit
19 District shall no longer be included for new appropriation
20 funding purposes as part of the Metro-East Public
21 Transportation Fund and instead shall be included for new
22 appropriation funding purposes as part of the Downstate Public
23 Transportation Fund; provided, however, that nothing herein
24 shall alter the eligibility of that District for previously
25 appropriated funds to which it would otherwise be entitled.
26     With respect to the fiscal year beginning July 1, 2007, and

 

 

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1 thereafter, the following shall be included for new
2 appropriation funding purposes as part of the Downstate Public
3 Transportation Fund: Bond County; Bureau County; Coles County;
4 Edgar County; Stephenson County and the City of Freeport; Henry
5 County; Jo Daviess County; Kankakee and McLean Counties; Peoria
6 County; Piatt County; Shelby County; Tazewell and Woodford
7 Counties; Vermillion County; Williamson County; and Kendall
8 County.
9 (Source: P.A. 94-70, eff. 6-22-05.)
 
10     (30 ILCS 740/2-3)  (from Ch. 111 2/3, par. 663)
11     Sec. 2-3. (a) As soon as possible after the first day of
12 each month, beginning July 1, 1984, upon certification of the
13 Department of Revenue, the Comptroller shall order
14 transferred, and the Treasurer shall transfer, from the General
15 Revenue Fund to a special fund in the State Treasury which is
16 hereby created, to be known as the "Downstate Public
17 Transportation Fund", an amount equal to 2/32 (beginning July
18 1, 2005, 3/32) of the net revenue realized from the "Retailers'
19 Occupation Tax Act", as now or hereafter amended, the "Service
20 Occupation Tax Act", as now or hereafter amended, the "Use Tax
21 Act", as now or hereafter amended, and the "Service Use Tax
22 Act", as now or hereafter amended, from persons incurring
23 municipal or county retailers' or service occupation tax
24 liability for the benefit of any municipality or county located
25 wholly within the boundaries of each participant other than any

 

 

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

 

 

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1 beginning July 1, 1989, upon certification of the Department of
2 Revenue, the Comptroller shall order transferred, and the
3 Treasurer shall transfer, from the General Revenue Fund to a
4 special fund in the State Treasury which is hereby created, to
5 be known as the "Metro-East Public Transportation Fund", an
6 amount equal to 2/32 of the net revenue realized, as above,
7 from within the boundaries of Madison, Monroe, and St. Clair
8 Counties, except that the Department shall pay into the
9 Metro-East Public Transportation Fund 2/32 of 80% of the net
10 revenue realized under the State tax Acts specified in
11 subsection (a) of this Section within the boundaries of
12 Madison, Monroe and St. Clair Counties for tax periods
13 beginning on or after January 1, 1990. A local match equivalent
14 to an amount which could be raised by a tax levy at the rate of
15 .05% on the assessed value of property within the boundaries of
16 Madison County is required annually to cause a total of 2/32 of
17 the net revenue to be deposited in the Metro-East Public
18 Transportation Fund. Failure to raise the required local match
19 annually shall result in only 1/32 being deposited into the
20 Metro-East Public Transportation Fund after July 1, 1989, or
21 1/32 of 80% of the net revenue realized for tax periods
22 beginning on or after January 1, 1990.
23     (b-5) As soon as possible after the first day of each
24 month, beginning July 1, 2005, upon certification of the
25 Department of Revenue, the Comptroller shall order
26 transferred, and the Treasurer shall transfer, from the General

 

 

09500SB0572ham013 - 22 - LRB095 04708 HLH 43113 a

1 Revenue Fund to the Downstate Public Transportation Fund, an
2 amount equal to 3/32 of 80% of the net revenue realized from
3 within the boundaries of Monroe and St. Clair Counties under
4 the State Tax Acts specified in subsection (a) of this Section
5 and provided further that, beginning July 1, 2005, the
6 provisions of subsection (b) shall no longer apply with respect
7 to such tax receipts from Monroe and St. Clair Counties.
8     (b-6) As soon as possible after the first day of each
9 month, beginning July 1, 2008, upon certification by the
10 Department of Revenue, the Comptroller shall order transferred
11 and the Treasurer shall transfer, from the General Revenue Fund
12 to the Downstate Public Transportation Fund, an amount equal to
13 3/32 of 80% of the net revenue realized from within the
14 boundaries of Madison County under the State Tax Acts specified
15 in subsection (a) of this Section and provided further that,
16 beginning July 1, 2008, the provisions of subsection (b) shall
17 no longer apply with respect to such tax receipts from Madison
18 County.
19     (c) The Department shall certify to the Department of
20 Revenue the eligible participants under this Article and the
21 territorial boundaries of such participants for the purposes of
22 the Department of Revenue in subsections (a) and (b) of this
23 Section.
24     (d) For the purposes of this Article, beginning in fiscal
25 year 2009 the General Assembly shall appropriate the Department
26 shall include in its annual request for appropriation of

 

 

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1 ordinary and contingent expenses an amount from the Downstate
2 Public Transportation Fund equal to the sum total funds
3 projected to be paid to the participants pursuant to Section
4 2-7. If the General Assembly fails to make appropriations
5 sufficient to cover the amounts projected to be paid pursuant
6 to Section 2-7, this Act shall constitute an irrevocable and
7 continuing appropriation from the Downstate Public
8 Transportation Fund of all amounts necessary for those
9 purposes.
10     (e) In addition to any other permitted use of moneys in the
11 Fund, and notwithstanding any restriction on the use of the
12 Fund, moneys in the Downstate Public Transportation Fund may be
13 transferred to the General Revenue Fund as authorized by Public
14 Act 87-14. The General Assembly finds that an excess of moneys
15 existed in the Fund on July 30, 1991, and the Governor's order
16 of July 30, 1991, and the Governor's order of July 30, 1991,
17 requesting the Comptroller and Treasurer to transfer an amount
18 from the Fund to the General Revenue Fund is hereby validated.
19 (Source: P.A. 94-70, eff. 6-22-05.)
 
20     (30 ILCS 740/2-6)  (from Ch. 111 2/3, par. 666)
21     Sec. 2-6. Allocation of funds.
22     (a) With respect to all participants other than any
23 Metro-East Transit District participant, the Department shall
24 allocate the funds to be made available to each participant
25 under this Article for the following fiscal year and shall

 

 

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1 notify the chief official of each participant not later than
2 the first day of the fiscal year of this amount. For Fiscal
3 Year 1975, notification shall be made not later than January 1,
4 1975, of the amount of such allocation. In determining the
5 allocation for each participant, the Department shall estimate
6 the funds available to the participant from the Downstate
7 Public Transportation Fund for the purposes of this Article
8 during the succeeding fiscal year, and shall allocate to each
9 participant the amount attributable to it which shall be the
10 amount paid into the Downstate Public Transportation Fund under
11 Section 2-3 from within its boundaries. Said allocations may be
12 exceeded for participants receiving assistance equal to
13 one-third of their eligible operating expenses, only if an
14 allocation is less than one-third of such participant's
15 eligible operating expenses, provided, however, that no other
16 participant is denied its one-third of eligible operating
17 expenses. Beginning in Fiscal Year 1997, said allocation may be
18 exceeded for participants receiving assistance equal to the
19 percentage of their eligible operating expenses provided for in
20 paragraph (b) of Section 2-7, only if allocation is less than
21 the percentage of such participant's eligible operating
22 expenses provided for in paragraph (b) of Section 2-7, provided
23 however, that no other participant is denied its percentage of
24 eligible operating expenses.
25     (b) With regard to any Metro-East Transit District
26 organized under the Local Mass Transit District Act and serving

 

 

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1 one or more of the Counties of Madison, Monroe and St. Clair
2 during Fiscal Year 1989, the Department shall allocate the
3 funds to be made available to each participant for the
4 following and succeeding fiscal years and shall notify the
5 chief official of each participant not later than the first day
6 of the fiscal year of this amount. Beginning July 1, 2005, and
7 ending June 30, 2008, the Department shall allocate the amount
8 paid into the Metro-East Public Transportation Fund to the
9 District serving primarily the County of Madison.
10 (Source: P.A. 94-70, eff. 6-22-05.)
 
11     (30 ILCS 740/2-7)  (from Ch. 111 2/3, par. 667)
12     Sec. 2-7. Quarterly reports; annual audit.
13     (a) Any Metro-East Transit District participant shall, no
14 later than 60 days following the end of each quarter of any
15 fiscal year, file with the Department on forms provided by the
16 Department for that purpose, a report of the actual operating
17 deficit experienced during that quarter. The Department shall,
18 upon receipt of the quarterly report, determine whether the
19 operating deficits were incurred in conformity with the program
20 of proposed expenditures approved by the Department pursuant to
21 Section 2-11. Any Metro-East District may either monthly or
22 quarterly for any fiscal year file a request for the
23 participant's eligible share, as allocated in accordance with
24 Section 2-6, of the amounts transferred into the Metro-East
25 Public Transportation Fund.

 

 

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1     (b) Each participant other than any Metro-East Transit
2 District participant shall, 30 days before the end of each
3 quarter, file with the Department on forms provided by the
4 Department for such purposes a report of the projected eligible
5 operating expenses to be incurred in the next quarter and 30
6 days before the third and fourth quarters of any fiscal year a
7 statement of actual eligible operating expenses incurred in the
8 preceding quarters. Except as otherwise provided in subsection
9 (b-5), within 45 days of receipt by the Department of such
10 quarterly report, the Comptroller shall order paid and the
11 Treasurer shall pay from the Downstate Public Transportation
12 Fund to each participant an amount equal to one-third of such
13 participant's eligible operating expenses; provided, however,
14 that in Fiscal Year 1997, the amount paid to each participant
15 from the Downstate Public Transportation Fund shall be an
16 amount equal to 47% of such participant's eligible operating
17 expenses and shall be increased to 49% in Fiscal Year 1998, 51%
18 in Fiscal Year 1999, 53% in Fiscal Year 2000, and 55% in Fiscal
19 Years Year 2001 through 2007, and 65% in Fiscal Year 2008 and
20 thereafter; however, in any year that a participant receives
21 funding under subsection (i) of Section 2705-305 of the
22 Department of Transportation Law (20 ILCS 2705/2705-305), that
23 participant shall be eligible only for assistance equal to the
24 following percentage of its eligible operating expenses: 42% in
25 Fiscal Year 1997, 44% in Fiscal Year 1998, 46% in Fiscal Year
26 1999, 48% in Fiscal Year 2000, and 50% in Fiscal Year 2001 and

 

 

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1 thereafter. Any such payment for the third and fourth quarters
2 of any fiscal year shall be adjusted to reflect actual eligible
3 operating expenses for preceding quarters of such fiscal year.
4 However, no participant shall receive an amount less than that
5 which was received in the immediate prior year, provided in the
6 event of a shortfall in the fund those participants receiving
7 less than their full allocation pursuant to Section 2-6 of this
8 Article shall be the first participants to receive an amount
9 not less than that received in the immediate prior year.
10     (b-5) (Blank.) With respect to the District serving
11 primarily the counties of Monroe and St. Clair, beginning July
12 1, 2005 and each fiscal year thereafter, the District may, as
13 an alternative to the provisions of subsection (b) of Section
14 2-7, file a request with the Department for a monthly payment
15 of 1/12 of the amount appropriated to the District for that
16 fiscal year; except that, for the final month of the fiscal
17 year, the District's request shall be in an amount such that
18 the total payments made to the District in that fiscal year do
19 not exceed the lesser of (i) 55% of the District's eligible
20 operating expenses for that fiscal year or (ii) the total
21 amount appropriated to the District for that fiscal year.
22     (b-10) On July 1, 2008, each participant shall receive an
23 appropriation in an amount equal to 65% of its fiscal year 2008
24 eligible operating expenses adjusted by the annual 10% increase
25 required by Section 2-2.04 of this Act. In no case shall any
26 participant receive an appropriation that is less than its

 

 

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1 fiscal year 2008 appropriation. Every fiscal year thereafter,
2 each participant's appropriation shall increase by 10% over the
3 appropriation established for the preceding fiscal year as
4 required by Section 2-2.04 of this Act.
5     (b-15) Beginning on July 1, 2007, and for each fiscal year
6 thereafter, each participant shall maintain a minimum local
7 share contribution (from farebox and all other local revenues)
8 equal to the actual amount provided in Fiscal Year 2006 or, for
9 new recipients, an amount equivalent to the local share
10 provided in the first year of participation.
11     (b-20) Any participant in the Downstate Public
12 Transportation Fund may use State operating assistance
13 pursuant to this Section to provide transportation services
14 within any county that is contiguous to its territorial
15 boundaries as defined by the Department and subject to
16 Departmental approval. Any such contiguous-area service
17 provided by a participant after July 1, 2007 must meet the
18 requirements of subsection (a) of Section 2-5.1.
19     (c) No later than 180 days following the last day of the
20 Fiscal Year each participant shall provide the Department with
21 an audit prepared by a Certified Public Accountant covering
22 that Fiscal Year. For those participants other than a
23 Metro-East Transit District, any discrepancy between the
24 grants paid and the percentage of the eligible operating
25 expenses provided for by paragraph (b) of this Section shall be
26 reconciled by appropriate payment or credit. In the case of any

 

 

09500SB0572ham013 - 29 - LRB095 04708 HLH 43113 a

1 Metro-East Transit District, any amount of payments from the
2 Metro-East Public Transportation Fund which exceed the
3 eligible deficit of the participant shall be reconciled by
4 appropriate payment or credit.
5 (Source: P.A. 94-70, eff. 6-22-05.)
 
6     (30 ILCS 740/2-15)  (from Ch. 111 2/3, par. 675.1)
7     Sec. 2-15. Except as otherwise provided in this Section,
8 all funds which remain in the Downstate Public Transportation
9 Fund or the Metro-East Public Transportation Fund after the
10 payment of the fourth quarterly payment to participants other
11 than Metro-East Transit District participants and the last
12 monthly payment to Metro-East Transit participants in each
13 fiscal year shall be transferred (i) to the General Revenue
14 Fund through fiscal year 2008 and (ii) to the Downstate Transit
15 Improvement Fund for fiscal year 2009 and each fiscal year
16 thereafter. Transfers shall be made no later than 90 days
17 following the end of such fiscal year. Beginning fiscal year
18 2010, all moneys each year in the Downstate Transit Improvement
19 Fund, held solely for the benefit of the participants in the
20 Downstate Public Transportation Fund and the shall be
21 appropriated to the Department to make competitive capital
22 grants to the participants of the respective funds. However,
23 such amount as the Department determines to be necessary for
24 (1) allocation to participants for the purposes of Section 2-7
25 for the first quarter of the succeeding fiscal year and (2) an

 

 

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

 

 

09500SB0572ham013 - 31 - LRB095 04708 HLH 43113 a

1 determined by Board ordinance or collective bargaining
2 agreement. The Board, in lieu of social security payments
3 required to be paid by private corporations engaged in similar
4 activity, shall make payments into such established system at
5 least equal in amount to the amount so required to be paid by
6 such private corporations.
7     Provisions shall be made by the Board for all Board
8 members, officers and employees of the Authority appointed
9 pursuant to the "Metropolitan Transit Authority Act" to become,
10 subject to reasonable rules and regulations, participants
11 members or beneficiaries of the pension or retirement system
12 with uniform rights, privileges, obligations and status as to
13 the class in which such officers and employees belong. The
14 terms, conditions and provisions of any pension or retirement
15 system or of any amendment or modification thereof affecting
16 employees who are members of any labor organization may be
17 established, amended or modified by agreement with such labor
18 organization, provided the terms, conditions and provisions
19 must be consistent with this Act, the annual funding levels for
20 the retirement system established by law must be met and the
21 benefits paid to future participants in the system may not
22 exceed the benefit ceilings set for future participants under
23 this Act and the contribution levels required by the Authority
24 and its employees may not be less than the contribution levels
25 established under this Act but must be consistent with the
26 requirements of this Section.

 

 

09500SB0572ham013 - 32 - LRB095 04708 HLH 43113 a

1     (b) The Board of Trustees shall consist of 11 members
2 appointed as follows: (i) 5 trustees shall be appointed by the
3 Chicago Transit Board; (ii) 3 trustees shall be appointed by an
4 organization representing the highest number of Chicago
5 Transit Authority participants; (iii) one trustee shall be
6 appointed by an organization representing the second-highest
7 number of Chicago Transit Authority participants; (iv) one
8 trustee shall be appointed by the recognized coalition
9 representatives of participants who are not represented by an
10 organization with the highest or second-highest number of
11 Chicago Transit Authority participants; and (v) one trustee
12 shall be selected by the Regional Transportation Authority
13 Board of Directors, and the trustee shall be a professional
14 fiduciary who has experience in the area of collectively
15 bargained pension plans. Trustees shall serve until a successor
16 has been appointed and qualified, or until resignation, death,
17 incapacity, or disqualification.
18     Any person appointed as a trustee of the board shall
19 qualify by taking an oath of office that he or she will
20 diligently and honestly administer the affairs of the system
21 and will not knowingly violate or willfully permit the
22 violation of any of the provisions of law applicable to the
23 Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
24 1-111, 1-114, and 1-115 of the Illinois Pension Code.
25     Each trustee shall cast individual votes, and a majority
26 vote shall be final and binding upon all interested parties,

 

 

09500SB0572ham013 - 33 - LRB095 04708 HLH 43113 a

1 provided that the Board of Trustees may require a supermajority
2 vote with respect to the investment of the assets of the
3 Retirement Plan, and may set forth that requirement in the
4 Retirement Plan documents, by-laws, or rules of the Board of
5 Trustees. Each trustee shall have the rights, privileges,
6 authority, and obligations as are usual and customary for such
7 fiduciaries.
8     The Board of Trustees may cause amounts on deposit in the
9 Retirement Plan to be invested in those investments that are
10 permitted investments for the investment of moneys held under
11 any one or more of the pension or retirement systems of the
12 State, any unit of local government or school district, or any
13 agency or instrumentality thereof. The Board, by a vote of at
14 least two-thirds of the trustees, may transfer investment
15 management to the Illinois State Board of Investment, which is
16 hereby authorized to manage these investments when so requested
17 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 the
25 effective date of this amendatory Act of the 95th General
26 Assembly, the Retirement Plan for Chicago Transit Authority

 

 

09500SB0572ham013 - 34 - LRB095 04708 HLH 43113 a

1 Employees shall be the exclusive retirement plan and such
2 employees shall not be eligible for any supplemental plan,
3 except for a deferred compensation plan funded only by employee
4 contributions.
5     For all Authority employees who are first hired on or after
6 the effective date of this amendatory Act of the 95th General
7 Assembly and are participants in the Retirement Plan for
8 Chicago Transit Authority Employees, the following terms,
9 conditions and provisions with respect to retirement shall be
10 applicable:
11         (1) Such participant shall be eligible for an unreduced
12     retirement allowance for life upon the attainment of age 64
13     with 25 years of continuous service.
14         (2) Such participant shall be eligible for a reduced
15     retirement allowance for life upon the attainment of age 55
16     with 10 years of continuous service.
17         (3) For the purpose of determining the retirement
18     allowance to be paid to a retiring employee, the term
19     "Continuous Service" as used in the Retirement Plan for
20     Chicago Transit Authority Employees shall also be deemed to
21     include all pension credit for service with any retirement
22     system established under Article 8 or Article 11 of this
23     Code, provided that the employee forfeits and relinquishes
24     all pension credit under Article 8 or Article 11 of this
25     Code, and the contribution required under this subsection
26     is made by the employee. The Retirement Plan's actuary

 

 

09500SB0572ham013 - 35 - LRB095 04708 HLH 43113 a

1     shall determine the contribution paid by the employee as an
2     amount equal to the normal cost of the benefit accrued, had
3     the service been rendered as an employee, plus interest per
4     annum from the time such service was rendered until the
5     date the payment is made.
6     (d) From the effective date of this amendatory Act through
7 December 31, 2008, all participating employees shall
8 contribute to the Retirement Plan in an amount not less than 6%
9 of compensation, and the Authority shall contribute to the
10 Retirement Plan in an amount not less than 12% of compensation.
11     (e)(1) Beginning January 1, 2009 the Authority shall make
12 contributions to the Retirement Plan in an amount equal to
13 twelve percent (12%) of compensation and participating
14 employees shall make contributions to the Retirement Plan in an
15 amount equal to six percent (6%) of compensation. These
16 contributions may be paid by the Authority and participating
17 employees on a payroll or other periodic basis, but shall in
18 any case be paid to the Retirement Plan at least monthly.
19     (2) For the period ending December 31, 2040, the amount
20 paid by the Authority in any year with respect to debt service
21 on bonds issued for the purposes of funding a contribution to
22 the Retirement Plan under Section 12c of the Metropolitan
23 Transit Authority Act, other than debt service paid with the
24 proceeds of bonds or notes issued by the Authority for any year
25 after calendar year 2008, shall be treated as a credit against
26 the amount of required contribution to the Retirement Plan by

 

 

09500SB0572ham013 - 36 - LRB095 04708 HLH 43113 a

1 the Authority under subsection (e)(1) for the following year up
2 to an amount not to exceed 6% of compensation paid by the
3 Authority in that following year.
4     (3) By September 15 of each year beginning in 2009 and
5 ending on December 31, 2039, on the basis of a report prepared
6 by an enrolled actuary retained by the Plan, the Board of
7 Trustees of the Retirement Plan shall determine the estimated
8 funded ratio of the total assets of the Retirement Plan to its
9 total actuarially determined liabilities. A report containing
10 that determination and the actuarial assumptions on which it is
11 based shall be filed with the Authority, the representatives of
12 its participating employees, the Auditor General of the State
13 of Illinois, and the Regional Transportation Authority. If the
14 funded ratio is projected to decline below 60% in any year
15 before 2040, the Board of Trustees shall also determine the
16 increased contribution required each year as a level percentage
17 of payroll over the years remaining until 2040 using the
18 projected unit credit actuarial cost method so the funded ratio
19 does not decline below 60% and include that determination in
20 its report. If the actual funded ratio declines below 60% in
21 any year prior to 2040, the Board of Trustees shall also
22 determine the increased contribution required each year as a
23 level percentage of payroll during the years after the then
24 current year using the projected unit credit actuarial cost
25 method so the funded ratio is projected to reach at least 60%
26 no later than 10 years after the then current year and include

 

 

09500SB0572ham013 - 37 - LRB095 04708 HLH 43113 a

1 that determination in its report. Within 60 days after
2 receiving the report, the Auditor General shall review the
3 determination and the assumptions on which it is based, and if
4 he finds that the determination and the assumptions on which it
5 is based are unreasonable in the aggregate, he shall issue a
6 new determination of the funded ratio, the assumptions on which
7 it is based and the increased contribution required each year
8 as a level percentage of payroll over the years remaining until
9 2040 using the projected unit credit actuarial cost method so
10 the funded ratio does not decline below 60%, or, in the event
11 of an actual decline below 60%, so the funded ratio is
12 projected to reach 60% by no later than 10 years after the then
13 current year. If the Board of Trustees or the Auditor General
14 determine that an increased contribution is required to meet
15 the funded ratio required by the subsection, effective January
16 1 following the determination or 30 days after such
17 determination, whichever is later, one-third of the increased
18 contribution shall be paid by participating employees and
19 two-thirds by the Authority, in addition to the contributions
20 required by this subsection (1).
21     (4) For the period beginning 2040, the minimum contribution
22 to the Retirement Plan for each fiscal year shall be an amount
23 determined by the Board of Trustees of the Retirement Plan to
24 be sufficient to bring the total assets of the Retirement Plan
25 up to 90% of its total actuarial liabilities by the end of
26 2059. Participating employees shall be responsible for

 

 

09500SB0572ham013 - 38 - LRB095 04708 HLH 43113 a

1 one-third of the required contribution and the Authority shall
2 be responsible for two-thirds of the required contribution. In
3 making these determinations, the Board of Trustees shall
4 calculate the required contribution each year as a level
5 percentage of payroll over the years remaining to and including
6 fiscal year 2059 using the projected unit credit actuarial cost
7 method. A report containing that determination and the
8 actuarial assumptions on which it is based shall be filed by
9 September 15 of each year with the Authority, the
10 representatives of its participating employees, the Auditor
11 General of the State of Illinois and the Regional
12 Transportation Authority. If the funded ratio is projected to
13 fail to reach 90% by December 31, 2059, the Board of Trustees
14 shall also determine the increased contribution required each
15 year as a level percentage of payroll over the years remaining
16 until December 31, 2059 using the projected unit credit
17 actuarial cost method so the funded ratio will meet 90% by
18 December 31, 2059 and include that determination in its report.
19 Within 60 days after receiving the report, the Auditor General
20 shall review the determination and the assumptions on which it
21 is based and if he finds that the determination and the
22 assumptions on which it is based are unreasonable in the
23 aggregate, he shall issue a new determination of the funded
24 ratio, the assumptions on which it is based and the increased
25 contribution required each year as a level percentage of
26 payroll over the years remaining until December 31, 2059 using

 

 

09500SB0572ham013 - 39 - LRB095 04708 HLH 43113 a

1 the projected unit credit actuarial cost method so the funded
2 ratio reaches no less than 90% by December 31, 2059. If the
3 Board of Trustees or the Auditor General determine that an
4 increased contribution is required to meet the funded ratio
5 required by this subsection, effective January 1 following the
6 determination or 30 days after such determination, whichever is
7 later, one-third of the increased contribution shall be paid by
8 participating employees and two-thirds by the Authority, in
9 addition to the contributions required by subsection (e)(1).
10     (5) Beginning in 2060, the minimum contribution for each
11 year shall be the amount needed to maintain the total assets of
12 the Retirement Plan at 90% of the total actuarial liabilities
13 of the Plan, and the contribution shall be funded two-thirds by
14 the Authority and one-third by the participating employees in
15 accordance with this subsection.
16     (f) The Authority shall take the steps necessary to comply
17 with Section 414(h)(2) of the Internal Revenue Code of 1986, as
18 amended, to permit the pick-up of employee contributions under
19 subsections (d) and (e) on a tax-deferred basis.
20     (g) The Board of Trustees shall certify to the Governor,
21 the General Assembly, the Auditor General, the Board of the
22 Regional Transportation Authority, and the Authority at least
23 90 days prior to the end of each fiscal year the amount of the
24 required contributions to the retirement system for the next
25 retirement system fiscal year under this Section. The
26 certification shall include a copy of the actuarial

 

 

09500SB0572ham013 - 40 - LRB095 04708 HLH 43113 a

1 recommendations upon which it is based. In addition, copies of
2 the certification shall be sent to the Commission on Government
3 Forecasting and Accountability and the Mayor of Chicago.
4     (h)(1) As to an employee who first becomes entitled to a
5 retirement allowance commencing on or after November 30, 1989,
6 the retirement allowance shall be the amount determined in
7 accordance with the following formula:
8         (A) One percent (1%) of his "Average Annual
9     Compensation in the highest four (4) completed Plan Years"
10     for each full year of continuous service from the date of
11     original employment to the effective date of the Plan; plus
12         (B) One and seventy-five hundredths percent (1.75%) of
13     his "Average Annual Compensation in the highest four (4)
14     completed Plan Years" for each year (including fractions
15     thereof to completed calendar months) of continuous
16     service as provided for in the Retirement Plan for Chicago
17     Transit Authority Employees.
18 Provided, however that:
19     (2) As to an employee who first becomes entitled to a
20 retirement allowance commencing on or after January 1, 1993,
21 the retirement allowance shall be the amount determined in
22 accordance with the following formula:
23         (A) One percent (1%) of his "Average Annual
24     Compensation in the highest four (4) completed Plan Years"
25     for each full year of continuous service from the date of
26     original employment to the effective date of the Plan; plus

 

 

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1         (B) One and eighty hundredths percent (1.80%) of his
2     "Average Annual Compensation in the highest four (4)
3     completed Plan Years" for each year (including fractions
4     thereof to completed calendar months) of continuous
5     service as provided for in the Retirement Plan for Chicago
6     Transit Authority Employees.
7 Provided, however that:
8     (3) As to an employee who first becomes entitled to a
9 retirement allowance commencing on or after January 1, 1994,
10 the retirement allowance shall be the amount determined in
11 accordance with the following formula:
12         (A) One percent (1%) of his "Average Annual
13     Compensation in the highest four (4) completed Plan Years"
14     for each full year of continuous service from the date of
15     original employment to the effective date of the Plan; plus
16         (B) One and eighty-five hundredths percent (1.85%) of
17     his "Average Annual Compensation in the highest four (4)
18     completed Plan Years" for each year (including fractions
19     thereof to completed calendar months) of continuous
20     service as provided for in the Retirement Plan for Chicago
21     Transit Authority Employees.
22 Provided, however that:
23     (4) As to an employee who first becomes entitled to a
24 retirement allowance commencing on or after January 1, 2000,
25 the retirement allowance shall be the amount determined in
26 accordance with the following formula:

 

 

09500SB0572ham013 - 42 - LRB095 04708 HLH 43113 a

1         (A) One percent (1%) of his "Average Annual
2     Compensation in the highest four (4) completed Plan Years"
3     for each full year of continuous service from the date of
4     original employment to the effective date of the Plan; plus
5         (B) Two percent (2%) of his "Average Annual
6     Compensation in the highest four (4) completed Plan Years"
7     for each year (including fractions thereof to completed
8     calendar months) of continuous service as provided for in
9     the Retirement Plan for Chicago Transit Authority
10     Employees.
11 Provided, however that:
12     (5) As to an employee who first becomes entitled to a
13 retirement allowance commencing on or after January 1, 2001,
14 the retirement allowance shall be the amount determined in
15 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 fifteen hundredths percent (2.15%) 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 as provided for in the Retirement Plan for Chicago
25     Transit Authority Employees.
26     The changes made by this amendatory Act of the 95th General

 

 

09500SB0572ham013 - 43 - LRB095 04708 HLH 43113 a

1 Assembly, to the extent that they affect the rights or
2 privileges of Authority employees that are currently the
3 subject of collective bargaining, have been agreed to between
4 the authorized representatives of these employees and of the
5 Authority prior to enactment of this amendatory Act, as
6 evidenced by a Memorandum of Understanding between these
7 representatives that will be filed with the Secretary of State
8 Index Department and designated as "95-GA-C05". The General
9 Assembly finds and declares that those changes are consistent
10 with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
11 Federal Transit Act) because of this agreement between
12 authorized representatives of these employees and of the
13 Authority, and that any future amendments to the provisions of
14 this amendatory Act of the 95th General Assembly, to the extent
15 those amendments would affect the rights and privileges of
16 Authority employees that are currently the subject of
17 collective bargaining, would be consistent with 49 U.S.C.
18 5333(b) if and only if those amendments were agreed to between
19 these authorized representatives prior to enactment.
20     (i) Early retirement incentive plan; funded ratio.
21         (1) Beginning on the effective date of this Section, no
22     early retirement incentive shall be offered to
23     participants of the Plan unless the Funded Ratio of the
24     Plan is at least 80% or more.
25         (2) For the purposes of this Section, the Funded Ratio
26     shall be the Adjusted Assets divided by the Actuarial

 

 

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1     Accrued Liability developed in accordance with Statement
2     #25 promulgated by the Government Accounting Standards
3     Board and the actuarial assumptions described in the Plan.
4     The Adjusted Assets shall be calculated based on the
5     methodology described in the Plan.
6     (j) Nothing in this amendatory Act of the 95th General
7 Assembly shall impair the rights or privileges of Authority
8 employees under any other law.
9     (b) Beginning January 1, 2009, the Authority shall make
10 contributions to the retirement system in an amount which,
11 together with the contributions of participants, interest
12 earned on investments, and other income, will meet the cost of
13 maintaining and administering the retirement plan in
14 accordance with applicable actuarial recommendations and
15 assumptions and the requirements of this Section. These
16 contributions may be paid on a payroll or other periodic basis,
17 but shall in any case be paid at least monthly.
18     For retirement system fiscal years 2009 through 2058, the
19 minimum contribution to the retirement system to be made by the
20 Authority for each fiscal year shall be an amount determined
21 jointly by the Authority and the trustee of the retirement
22 system to be sufficient to bring the total assets of the
23 retirement system up to 90% of its total actuarial liabilities
24 by the end of fiscal year 2058. In making these determinations,
25 the required Authority contribution shall be calculated each
26 year as a level percentage of payroll over the years remaining

 

 

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1 to and including fiscal year 2058 and shall be determined under
2 the projected unit credit actuarial cost method. Beginning in
3 retirement system fiscal year 2059, the minimum Authority
4 contribution for each fiscal year shall be the amount needed to
5 maintain the total assets of the retirement system at 90% of
6 the total actuarial liabilities of the system.
7     For purposes of determining employer contributions and
8 actuarial liabilities under this subsection, contributions and
9 liabilities relating to health care benefits shall not be
10 included. As used in this Section, "retirement system fiscal
11 year" means the calendar year, or such other plan year as may
12 be defined from time to time in the agreement known as the
13 Retirement Plan for Chicago Transit Authority Employees, or its
14 successor agreement.
15     (c) The Authority and the trustee shall jointly certify to
16 the Governor, the General Assembly, and the Board of the
17 Regional Transportation Authority on or before November 15 of
18 2008 and of each year thereafter the amount of the required
19 Authority contributions to the retirement system for the next
20 retirement system fiscal year under subsection (b). 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, the Mayor of Chicago, the
25 Chicago City Council, and the Cook County Board.
26     (d) The Authority shall take all actions lawfully available

 

 

09500SB0572ham013 - 46 - LRB095 04708 HLH 43113 a

1 to it to separate the funding of health care benefits for
2 retirees and their dependents and survivors from the funding
3 for its retirement system. The Authority shall endeavor to
4 achieve this separation as soon as possible, and in any event
5 no later than January 1, 2009.
6     (e) This amendatory Act of the 94th General Assembly does
7 not affect or impair the right of either the Authority or its
8 employees to collectively bargain the amount or level of
9 employee contributions to the retirement system.
10 (Source: P.A. 94-839, eff. 6-6-06.)
 
11     (40 ILCS 5/22-101B new)
12     Sec. 22-101B. Health Care Benefits.
13     (a) The Chicago Transit Authority (hereinafter referred to
14 in this Section as the "Authority") shall take all actions
15 lawfully available to it to separate the funding of health care
16 benefits for retirees and their dependents and survivors from
17 the funding for its retirement system. The Authority shall
18 endeavor to achieve this separation as soon as possible, and in
19 any event no later than July 1, 2009.
20     (b) Effective 90 days after the effective date of this
21 amendatory Act of the 95th General Assembly, a Retiree Health
22 Care Trust is established for the purpose of providing health
23 care benefits to eligible retirees and their dependents and
24 survivors in accordance with the terms and conditions set forth
25 in this Section 22-101B. The Retiree Health Care Trust shall be

 

 

09500SB0572ham013 - 47 - LRB095 04708 HLH 43113 a

1 solely responsible for providing health care benefits to
2 eligible retirees and their dependents and survivors by no
3 later than July 1, 2009, but no earlier than January 1, 2009.
4         (1) The Board of Trustees shall consist of 7 members
5     appointed as follows: (i) 3 trustees shall be appointed by
6     the Chicago Transit Board; (ii) one trustee shall be
7     appointed by an organization representing the highest
8     number of Chicago Transit Authority participants; (iii)
9     one trustee shall be appointed by an organization
10     representing the second-highest number of Chicago Transit
11     Authority participants; (iv) one trustee shall be
12     appointed by the recognized coalition representatives of
13     participants who are not represented by an organization
14     with the highest or second-highest number of Chicago
15     Transit Authority participants; and (v) one trustee shall
16     be selected by the Regional Transportation Authority Board
17     of Directors, and the trustee shall be a professional
18     fiduciary who has experience in the area of collectively
19     bargained retiree health plans. Trustees shall serve until
20     a successor has been appointed and qualified, or until
21     resignation, death, incapacity, or disqualification.
22         Any person appointed as a trustee of the board shall
23     qualify by taking an oath of office that he or she will
24     diligently and honestly administer the affairs of the
25     system, and will not knowingly violate or willfully permit
26     the violation of any of the provisions of law applicable to

 

 

09500SB0572ham013 - 48 - LRB095 04708 HLH 43113 a

1     the Plan, including Sections 1-109, 1-109.1, 1-109.2,
2     1-110, 1-111, 1-114, and 1-115 of Article 1 of the Illinois
3     Pension Code.
4         Each trustee shall cast individual votes, and a
5     majority vote shall be final and binding upon all
6     interested parties, provided that the Board of Trustees may
7     require a supermajority vote with respect to the investment
8     of the assets of the Retiree Health Care Trust, and may set
9     forth that requirement in the trust agreement or by-laws of
10     the Board of Trustees. Each trustee shall have the rights,
11     privileges, authority and obligations as are usual and
12     customary for such fiduciaries.
13         (2) The Board of Trustees shall establish and
14     administer a health care benefit program for eligible
15     retirees and their dependents and survivors. The health
16     care benefit program for eligible retirees and their
17     dependents and survivors shall not contain any plan which
18     provides for more than 90% coverage for in-network services
19     or 70% coverage for out-of-network services after any
20     deductible has been paid.
21         (3) The Retiree Health Care Trust shall be administered
22     by the Board of Trustees according to the following
23     requirements:
24             (i) The Board of Trustees may cause amounts on
25         deposit in the Retiree Health Care Trust to be invested
26         in those investments that are permitted investments

 

 

09500SB0572ham013 - 49 - LRB095 04708 HLH 43113 a

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

 

 

09500SB0572ham013 - 50 - LRB095 04708 HLH 43113 a

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

 

 

09500SB0572ham013 - 51 - LRB095 04708 HLH 43113 a

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

 

 

09500SB0572ham013 - 52 - LRB095 04708 HLH 43113 a

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

 

 

09500SB0572ham013 - 53 - LRB095 04708 HLH 43113 a

1             any alternative report and plan submitted by the
2             Board of Trustees shall be made within 90 days
3             after receiving the alternative report and plan,
4             and shall be accepted or rejected according to the
5             requirements of this subsection (b)(3)(iv). The
6             Board of Trustees shall continue to submit
7             alternative reports and plans to the Auditor
8             General, as necessary, until a favorable
9             determination is made by the Auditor General.
10         (4) For any retiree who first retires effective on or
11     after the effective date of this amendatory Act of the 95th
12     General Assembly, to be eligible for retiree health care
13     benefits upon retirement, the retiree must be at least 55
14     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. This paragraph (4)
18     shall not apply to a disability allowance.
19         (5) Effective January 1, 2009, the aggregate amount of
20     retiree, dependent and survivor contributions to the cost
21     of their health care benefits shall not exceed more than
22     45% of the total cost of such benefits. The Board of
23     Trustees shall have the discretion to provide different
24     contribution levels for retirees, dependents and survivors
25     based on their years of service, level of coverage or
26     Medicare eligibility, provided that the total contribution

 

 

09500SB0572ham013 - 54 - LRB095 04708 HLH 43113 a

1     from all retirees, dependents, and survivors shall be not
2     more than 45% of the total cost of such benefits. The term
3     "total cost of such benefits" for purposes of this
4     subsection shall be the total amount expended by the
5     retiree health benefit program in the prior plan year, as
6     calculated and certified in writing by the Retiree Health
7     Care Trust's enrolled actuary to be appointed and paid for
8     by the Board of Trustees.
9         (6) Effective 30 days after the establishment of the
10     Retiree Health Care Trust, all employees of the Authority
11     shall contribute to the Retiree Health Care Trust in an
12     amount not less than 3% of compensation.
13         (7) No earlier than January 1, 2009 and no later than
14     July 1, 2009 as the Retiree Health Care Trust becomes
15     solely responsible for providing health care benefits to
16     eligible retirees and their dependents and survivors in
17     accordance with subsection (b) of this Section 22-101B, the
18     Authority shall not have any obligation to provide health
19     care to current or future retirees and their dependents or
20     survivors. Employees, retirees, dependents, and survivors
21     who are required to make contributions to the Retiree
22     Health Care Trust shall make contributions at the level set
23     by the Board of Trustees pursuant to the requirements of
24     this Section 22-101B.
 
25     Section 15. The Metropolitan Transit Authority Act is

 

 

09500SB0572ham013 - 55 - LRB095 04708 HLH 43113 a

1 amended by changing Sections 15, 28a, 34, and 46 and by adding
2 Sections 12c, 50, and 55 as follows:
 
3     (70 ILCS 3605/12c new)
4     Sec. 12c. Retiree Benefits Bonds and Notes.
5     (a) In addition to all other bonds or notes that it is
6 authorized to issue, the Authority is authorized to issue its
7 bonds or notes for the purposes of providing funds for the
8 Authority to make the deposits described in Section 12c(b)(1)
9 and (2), for refunding any bonds authorized to be issued under
10 this Section, as well as for the purposes of paying costs of
11 issuance, obtaining bond insurance or other credit enhancement
12 or liquidity facilities, paying costs of obtaining related
13 swaps as authorized in the Bond Authorization Act ("Swaps"),
14 providing a debt service reserve fund, paying Debt Service (as
15 defined in paragraph (i) of this Section 12c), and paying all
16 other costs related to any such bonds or notes.
17     (b)(1) After its receipt of a certified copy of a report of
18 the Auditor General of the State of Illinois meeting the
19 requirements of Section 3-2.3 of the Illinois State Auditing
20 Act, the Authority may issue $1,348,550,000 aggregate original
21 principal amount of bonds and notes. After payment of the costs
22 of issuance and necessary deposits to funds and accounts
23 established with respect to debt service, the net proceeds of
24 such bonds or notes shall be deposited only in the Retirement
25 Plan for Chicago Transit Authority Employees and used only for

 

 

09500SB0572ham013 - 56 - LRB095 04708 HLH 43113 a

1 the purposes required by Section 22-101 of the Illinois Pension
2 Code. Provided that no less than $1,110,500,000 has been
3 deposited in the Retirement Plan, remaining proceeds of bonds
4 issued under this subparagraph (b)(1) may be used to pay costs
5 of issuance and make necessary deposits to funds and accounts
6 with respect to debt service for bonds and notes issued under
7 this subparagraph or subparagraph (b)(2).
8     (2) After its receipt of a certified copy of a report of
9 the Auditor General of the State of Illinois meeting the
10 requirements of Section 3-2.3 of the Illinois State Auditing
11 Act, the Authority may issue $639,680,000 aggregate original
12 principal amount of bonds and notes. After payment of the costs
13 of issuance and necessary deposits to funds and accounts
14 established with respect to debt service, the net proceeds of
15 such bonds or notes shall be deposited only in the Retiree
16 Health Care Trust and used only for the purposes required by
17 Section 22-101B of the Illinois Pension Code. Provided that no
18 less than $528,800,000 has been deposited in the Retiree Health
19 Care Trust, remaining proceeds of bonds issued under this
20 subparagraph (b)(2) may be used to pay costs of issuance and
21 make necessary deposits to funds and accounts with respect to
22 debt service for bonds and notes issued under this subparagraph
23 or subparagraph (b)(1).
24     (3) In addition, refunding bonds are authorized to be
25 issued for the purpose of refunding outstanding bonds or notes
26 issued under this Section 12c.

 

 

09500SB0572ham013 - 57 - LRB095 04708 HLH 43113 a

1     (4) The bonds or notes issued under 12c(b)(1) shall be
2 issued as soon as practicable after the Auditor General issues
3 the report provided in Section 3-2.3(b) of the Illinois State
4 Auditing Act. The bonds or notes issued under 12c(b)(2) shall
5 be issued as soon as practicable after the Auditor General
6 issues the report provided in Section 3-2.3(c) of the Illinois
7 State Auditing Act.
8     (5) With respect to bonds and notes issued under
9 subparagraph (b), scheduled aggregate annual payments of
10 interest or deposits into funds and accounts established for
11 the purpose of such payment shall commence within one year
12 after the bonds and notes are issued. With respect to principal
13 and interest, scheduled aggregate annual payments of principal
14 and interest or deposits into funds and accounts established
15 for the purpose of such payment shall be not less than 70% in
16 2009, 80% in 2010, and 90% in 2011, respectively, of scheduled
17 payments or deposits of principal and interest in 2012 and
18 shall be substantially equal beginning in 2012 and each year
19 thereafter. For purposes of this subparagraph (b),
20 "substantially equal" means that debt service in any full year
21 after calendar year 2011 is not more than 115% of debt service
22 in any other full year after calendar year 2011 during the term
23 of the bonds or notes. For the purposes of this subsection (b),
24 with respect to bonds and notes that bear interest at a
25 variable rate, interest shall be assumed at a rate equal to the
26 rate for United States Treasury Securities - State and Local

 

 

09500SB0572ham013 - 58 - LRB095 04708 HLH 43113 a

1 Government Series for the same maturity, plus 75 basis points.
2 If the Authority enters into a Swap with a counterparty
3 requiring the Authority to pay a fixed interest rate on a
4 notional amount, and the Authority has made a determination
5 that such Swap was entered into for the purpose of providing
6 substitute interest payments for variable interest rate bonds
7 or notes of a particular maturity or maturities in a principal
8 amount equal to the notional amount of the Swap, then during
9 the term of the Swap for purposes of any calculation of
10 interest payable on such bonds or notes, the interest rate on
11 the bonds or notes of such maturity or maturities shall be
12 determined as if such bonds or notes bore interest at the fixed
13 interest rate payable by the Authority under such Swap.
14     (6) No bond or note issued under this Section 12c shall
15 mature later than December 31, 2040.
16     (c) The Chicago Transit Board shall provide for the
17 issuance of bonds or notes as authorized in this Section 12c by
18 the adoption of an ordinance. The ordinance, together with the
19 bonds or notes, shall constitute a contract among the
20 Authority, the owners from time to time of the bonds or notes,
21 any bond trustee with respect to the bonds or notes, any
22 related credit enhancer and any provider of any related Swaps.
23     (d) The Authority is authorized to cause the proceeds of
24 the bonds or notes, and any interest or investment earnings on
25 the bonds or notes, and of any Swaps, to be invested until the
26 proceeds and any interest or investment earnings have been

 

 

09500SB0572ham013 - 59 - LRB095 04708 HLH 43113 a

1 deposited with the Retirement Plan or the Retiree Health Care
2 Trust.
3     (e) Bonds or notes issued pursuant to this Section 12c may
4 be general obligations of the Authority, to which shall be
5 pledged the full faith and credit of the Authority, or may be
6 obligations payable solely from particular sources of funds all
7 as may be provided in the authorizing ordinance. The
8 authorizing ordinance for the bonds and notes, whether or not
9 general obligations of the Authority, may provide for the Debt
10 Service (as defined in paragraph (i) of this Section 12c) to
11 have a claim for payment from particular sources of funds,
12 including, without limitation, amounts to be paid to the
13 Authority or a bond trustee. The authorizing ordinance may
14 provide for the means by which the bonds or notes (and any
15 related Swaps) may be secured, which may include, a pledge of
16 any revenues or funds of the Authority from whatever source
17 which may by law be utilized for paying Debt Service. In
18 addition to any other security, upon the written approval of
19 the Regional Transportation Authority by the affirmative vote
20 of 12 of its then Directors, the ordinance may provide a
21 specific pledge or assignment of and lien on or security
22 interest in amounts to be paid to the Authority by the Regional
23 Transportation Authority and direct payment thereof to the bond
24 trustee for payment of Debt Service with respect to the bonds
25 or notes, subject to the provisions of existing lease
26 agreements of the Authority with any public building

 

 

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1 commission. The authorizing ordinance may also provide a
2 specific pledge or assignment of and lien on or security
3 interest in and direct payment to the trustee of all or a
4 portion of the moneys otherwise received by the Authority from
5 a tax imposed by the Authority under Section 55 of this Act.
6 Any such pledge, assignment, lien or security interest for the
7 benefit of owners of bonds or notes shall be valid and binding
8 from the time the bonds or notes are issued, without any
9 physical delivery or further act, and shall be valid and
10 binding as against and prior to the claims of all other parties
11 having claims of any kind against the Authority or any other
12 person, irrespective of whether such other parties have notice
13 of such pledge, assignment, lien or security interest, all as
14 provided in the Local Government Debt Reform Act, as it may be
15 amended from time to time. The bonds or notes of the Authority
16 issued pursuant to this Section 12c shall have such priority of
17 payment and as to their claim for payment from particular
18 sources of funds, including their priority with respect to
19 obligations of the Authority issued under other Sections of
20 this Act, all as shall be provided in the ordinances
21 authorizing the issuance of the bonds or notes. The ordinance
22 authorizing the issuance of any bonds or notes under this
23 Section may provide for the creation of, deposits in, and
24 regulation and disposition of sinking fund or reserve accounts
25 relating to those bonds or notes and related agreements. The
26 ordinance authorizing the issuance of any such bonds or notes

 

 

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1 authorized under this Section 12c may contain provisions for
2 the creation of a separate fund to provide for the payment of
3 principal of and interest on those bonds or notes and related
4 agreements. The ordinance may also provide limitations on the
5 issuance of additional bonds or notes of the Authority.
6     (f) Bonds or notes issued under this Section 12c shall not
7 constitute an indebtedness of the Regional Transportation
8 Authority, the State of Illinois, or of any other political
9 subdivision of or municipality within the State, except the
10 Authority.
11     (g) The ordinance of the Chicago Transit Board authorizing
12 the issuance of bonds or notes pursuant to this Section 12c may
13 provide for the appointment of a corporate trustee (which may
14 be any trust company or bank having the powers of a trust
15 company within Illinois) with respect to bonds or notes issued
16 pursuant to this Section 12c. The ordinance shall prescribe the
17 rights, duties, and powers of the trustee to be exercised for
18 the benefit of the Authority and the protection of the owners
19 of bonds or notes issued pursuant to this Section 12c. The
20 ordinance may provide for the trustee to hold in trust, invest
21 and use amounts in funds and accounts created as provided by
22 the ordinance with respect to the bonds or notes in accordance
23 with this Section 12c. The Authority may apply, as it shall
24 determine, any amounts received upon the sale of the bonds or
25 notes to pay any Debt Service on the bonds or notes. The
26 ordinance may provide for a trust indenture to set forth terms

 

 

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1 of, sources of payment for and security for the bonds and
2 notes.
3     (h) The State of Illinois pledges to and agrees with the
4 owners of the bonds or notes issued pursuant to Section 12c
5 that the State of Illinois will not limit the powers vested in
6 the Authority by this Act to pledge and assign its revenues and
7 funds as security for the payment of the bonds or notes, or
8 vested in the Regional Transportation Authority by the Regional
9 Transportation Authority Act or this Act, so as to materially
10 impair the payment obligations of the Authority under the terms
11 of any contract made by the Authority with those owners or to
12 materially impair the rights and remedies of those owners until
13 those bonds or notes, together with interest and any redemption
14 premium, and all costs and expenses in connection with any
15 action or proceedings by or on behalf of such owners are fully
16 met and discharged. The Authority is authorized to include
17 these pledges and agreements of the State of Illinois in any
18 contract with owners of bonds or notes issued pursuant to this
19 Section 12c.
20     (i) For purposes of this Section, "Debt Service" with
21 respect to bonds or notes includes, without limitation,
22 principal (at maturity or upon mandatory redemption),
23 redemption premium, interest, periodic, upfront, and
24 termination payments on Swaps, fees for bond insurance or other
25 credit enhancement, liquidity facilities, the funding of bond
26 or note reserves, bond trustee fees, and all other costs of

 

 

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1 providing for the security or payment of the bonds or notes.
2     (j) The Authority shall adopt a procurement program with
3 respect to contracts relating to the following service
4 providers in connection with the issuance of debt for the
5 benefit of the Retirement Plan for Chicago Transit Authority
6 Employees: underwriters, bond counsel, financial advisors, and
7 accountants. The program shall include goals for the payment of
8 not less than 30% of the total dollar value of the fees from
9 these contracts to minority owned businesses and female owned
10 businesses as defined in the Business Enterprise for
11 Minorities, Females, and Persons with Disabilities Act. The
12 Authority shall conduct outreach to minority owned businesses
13 and female owned businesses. Outreach shall include, but is not
14 limited to, advertisements in periodicals and newspapers,
15 mailings, and other appropriate media. The Authority shall
16 submit to the General Assembly a comprehensive report that
17 shall include, at a minimum, the details of the procurement
18 plan, outreach efforts, and the results of the efforts to
19 achieve goals for the payment of fees. The service providers
20 selected by the Authority pursuant to such program shall not be
21 subject to approval by the Regional Transportation Authority,
22 and the Regional Transportation Authority's approval pursuant
23 to subsection (e) of this Section 12c related to the issuance
24 of debt shall not be based in any way on the service providers
25 selected by the Authority pursuant to this Section.
26     (k) No person holding an elective office in this State,

 

 

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1 holding a seat in the General Assembly, serving as a director,
2 trustee, officer, or employee of the Regional Transportation
3 Authority or the Chicago Transit Authority, including the
4 spouse or minor child of that person, may receive a legal,
5 banking, consulting, or other fee related to the issuance of
6 any bond issued by the Chicago Transit Authority pursuant to
7 this Section.
 
8     (70 ILCS 3605/15)  (from Ch. 111 2/3, par. 315)
9     Sec. 15. The Authority shall have power to apply for and
10 accept grants and loans from the Federal Government or any
11 agency or instrumentality thereof, from the State, or from any
12 county, municipal corporation or other political subdivision
13 of the State to be used for any of the purposes of the
14 Authority, including, but not by way of limitation, grants and
15 loans in aid of mass transportation and for studies in mass
16 transportation, and may provide matching funds when necessary
17 to qualify for such grants or loans. The Authority may enter
18 into any agreement with the Federal Government, the State, and
19 any county, municipal corporation or other political
20 subdivision of the State in relation to such grants or loans;
21 provided that such agreement does not conflict with any of the
22 provisions of any trust agreement securing the payment of bonds
23 or certificates of the Authority.
24     The Authority may also accept from the state, or from any
25 county or other political subdivision, or from any municipal

 

 

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1 corporation, or school district, or school authorities, grants
2 or other funds authorized by law to be paid to the Authority
3 for any of the purposes of this Act.
4 (Source: Laws 1961, p. 3135.)
 
5     (70 ILCS 3605/28a)  (from Ch. 111 2/3, par. 328a)
6     Sec. 28a. (a) The Board may deal with and enter into
7 written contracts with the employees of the Authority through
8 accredited representatives of such employees or
9 representatives of any labor organization authorized to act for
10 such employees, concerning wages, salaries, hours, working
11 conditions and pension or retirement provisions; provided,
12 nothing herein shall be construed to permit hours of labor in
13 excess of those provided by law or to permit working conditions
14 prohibited by law. In case of dispute over wages, salaries,
15 hours, working conditions, or pension or retirement provisions
16 the Board may arbitrate any question or questions and may agree
17 with such accredited representatives or labor organization
18 that the decision of a majority of any arbitration board shall
19 be final, provided each party shall agree in advance to pay
20 half of the expense of such arbitration.
21     No contract or agreement shall be made with any labor
22 organization, association, group or individual for the
23 employment of members of such organization, association, group
24 or individual for the construction, improvement, maintenance,
25 operation or administration of any property, plant or

 

 

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1 facilities under the jurisdiction of the Authority, where such
2 organization, association, group or individual denies on the
3 ground of race, creed, color, sex, religion, physical or mental
4 handicap unrelated to ability, or national origin membership
5 and equal opportunities for employment to any citizen of
6 Illinois.
7     (b)(1) The provisions of this paragraph (b) apply to
8 collective bargaining agreements (including extensions and
9 amendments of existing agreements) entered into on or after
10 January 1, 1984.
11     (2) The Board shall deal with and enter into written
12 contracts with their employees, through accredited
13 representatives of such employees authorized to act for such
14 employees concerning wages, salaries, hours, working
15 conditions, and pension or retirement provisions about which a
16 collective bargaining agreement has been entered prior to the
17 effective date of this amendatory Act of 1983. Any such
18 agreement of the Authority shall provide that the agreement may
19 be reopened if the amended budget submitted pursuant to Section
20 2.18a of the Regional Transportation Authority Act is not
21 approved by the Board of the Regional Transportation Authority.
22 The agreement may not include a provision requiring the payment
23 of wage increases based on changes in the Consumer Price Index.
24 The Board shall not have the authority to enter into collective
25 bargaining agreements with respect to inherent management
26 rights, which include such areas of discretion or policy as the

 

 

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

 

 

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1 of 12 two-thirds of its then Directors. If the budget is not
2 approved by the Board of the Regional Transportation Authority,
3 the agreement may be reopened and its terms may be
4 renegotiated. Any amended budget which may be prepared
5 following renegotiation shall be presented to the Board of the
6 Regional Transportation Authority for its approval in like
7 manner.
8 (Source: P.A. 83-886.)
 
9     (70 ILCS 3605/34)  (from Ch. 111 2/3, par. 334)
10     Sec. 34. Budget and Program. The Authority, subject to the
11 powers of the Regional Transportation Authority in Section 4.11
12 of the Regional Transportation Authority Act, shall control the
13 finances of the Authority. It shall by ordinance appropriate
14 money to perform the Authority's purposes and provide for
15 payment of debts and expenses of the Authority. Each year the
16 Authority shall prepare and publish a comprehensive annual
17 budget and five-year capital program document, and a financial
18 plan for the 2 years thereafter describing the state of the
19 Authority and presenting for the forthcoming fiscal year and
20 the two following years the Authority's plans for such
21 operations and capital expenditures as it intends to undertake
22 and the means by which it intends to finance them. The proposed
23 budget, and financial plan, and five-year capital program shall
24 be based on the Regional Transportation Authority's estimate of
25 funds to be made available to the Authority by or through the

 

 

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1 Regional Transportation Authority and shall conform in all
2 respects to the requirements established by the Regional
3 Transportation 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 Regional
9 Transportation Authority's first Five-Year Program, as
10 provided in Section 2.01 of the Regional Transportation
11 Authority Act, the proposed program and budget shall
12 specifically identify any respect in which the recommended
13 program deviates from the Regional Transportation Authority's
14 then existing Five-Year Program, giving the reasons for such
15 deviation. The proposed program and budget, financial plan, and
16 five-year capital program shall be available at no cost for
17 public inspection at the Authority's main office and at the
18 Regional Transportation Authority's main office at least 3
19 weeks prior to any public hearing. Before the proposed budget,
20 and program and financial plan, and five-year capital program
21 are submitted to the Regional Transportation Authority, the
22 Authority shall hold at least one public hearing thereon in
23 each of the counties in which the Authority provides service.
24 All Board members of the Authority shall attend a majority of
25 the public hearings unless reasonable cause is given for their
26 absence. After the public hearings, the Board of the Authority

 

 

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1 shall hold at least one meeting for consideration of the
2 proposed program and budget with the Cook County Board. After
3 conducting such hearings and holding such meetings and after
4 making such changes in the proposed program and budget,
5 financial plan, and five-year capital program as the Board
6 deems appropriate, it shall adopt an annual budget ordinance at
7 least by November 15th preceding the beginning of each fiscal
8 year. The budget, and program, and financial plan, and
9 five-year capital program shall then be submitted to the
10 Regional Transportation Authority as provided in Section 4.11
11 of the Regional Transportation Authority Act. In the event that
12 the Board of the Regional Transportation Authority determines
13 that the budget, and program, and financial plan, and five-year
14 capital program do not meet the standards of said Section 4.11,
15 the Board of the Authority shall make such changes as are
16 necessary to meet such requirements and adopt an amended budget
17 ordinance. The amended budget ordinance shall be resubmitted to
18 the Regional Transportation Authority pursuant to said Section
19 4.11. 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 which do not alter the basis upon which the
26 balanced budget determination was made by the Regional

 

 

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1 Transportation Authority may be made from time to time by the
2 Board.
3     The budget shall:
4         (i) show a balance between (A) anticipated revenues
5     from all sources including operating subsidies and (B) the
6     costs of providing the services specified and of funding
7     any operating deficits or encumbrances incurred in prior
8     periods, including provision for payment when due of
9     principal and interest on outstanding indebtedness;
10         (ii) show cash balances including the proceeds of any
11     anticipated cash flow borrowing sufficient to pay with
12     reasonable promptness all costs and expenses as incurred;
13         (iii) provide for a level of fares or charges and
14     operating or administrative costs for the public
15     transportation provided by or subject to the jurisdiction
16     of the Board sufficient to allow the Board to meet its
17     required system generated revenue recovery ratio as
18     determined in accordance with subsection (a) of Section
19     4.11 of the Regional Transportation Authority Act;
20         (iv) be based upon and employ assumptions and
21     projections which are reasonable and prudent;
22         (v) have been prepared in accordance with sound
23     financial practices as determined by the Board of the
24     Regional Transportation Authority; and
25         (vi) meet such other financial, budgetary, or fiscal
26     requirements that the Board of the Regional Transportation

 

 

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1     Authority may by rule or regulation establish; and .
2         (vii) be consistent with the goals and objectives
3     adopted by the Regional Transportation Authority in the
4     Strategic Plan.
5     The Board shall establish a fiscal operating year. At least
6 thirty days prior to the beginning of the first full fiscal
7 year after the creation of the Authority, and annually
8 thereafter, the Board shall cause to be prepared a tentative
9 budget which shall include all operation and maintenance
10 expense for the ensuing fiscal year. The tentative budget shall
11 be considered by the Board and, subject to any revision and
12 amendments as may be determined, shall be adopted prior to the
13 first day of the ensuing fiscal year as the budget for that
14 year. No expenditures for operations and maintenance in excess
15 of the budget shall be made during any fiscal year except by
16 the affirmative vote of at least five members of the Board. It
17 shall not be necessary to include in the annual budget any
18 statement of necessary expenditures for pensions or retirement
19 annuities, or for interest or principal payments on bonds or
20 certificates, or for capital outlays, but it shall be the duty
21 of the Board to make provision for payment of same from
22 appropriate funds. The Board may not alter its fiscal year
23 without the prior approval of the Board of the Regional
24 Transportation Authority.
25 (Source: P.A. 87-1249.)
 

 

 

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1     (70 ILCS 3605/46)  (from Ch. 111 2/3, par. 346)
2     Sec. 46. Citizens Advisory Board. The Board shall establish
3 a citizens advisory board composed of 11 residents of those
4 portions of the metropolitan region in which the Authority
5 provides service who have an interest in public transportation,
6 one of whom shall be at least 65 years of age. The members of
7 the advisory board shall be named for 2 year terms, shall
8 select one of their members to serve as chairman and shall
9 serve without compensation. The citizens advisory board shall
10 meet with Board at least quarterly and advise the Board of the
11 impact of its policies and programs on the communities it
12 serves. Appointments to the citizens advisory board should, to
13 the greatest extent possible, reflect the ethnic, cultural, and
14 geographic diversity of all persons residing within the
15 metropolitan region in which the Authority provides service.
16 (Source: P.A. 87-226.)
 
17     (70 ILCS 3605/50 new)
18     Sec. 50. Disadvantaged Business Enterprise Contracting and
19 Equal Employment Opportunity Programs. The Authority shall, as
20 soon as is practicable but in no event later than two years
21 after the effective date of this amendatory Act of the 95th
22 General Assembly, establish and maintain a disadvantaged
23 business enterprise contracting program designed to ensure
24 non-discrimination in the award and administration of
25 contracts not covered under a federally mandated disadvantaged

 

 

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1 business enterprise program. The program shall establish
2 narrowly tailored goals for the participation of disadvantaged
3 business enterprises as the Authority determines appropriate.
4 The goals shall be based on demonstrable evidence of the
5 availability of ready, willing, and able disadvantaged
6 business enterprises relative to all businesses ready,
7 willing, and able to participate on the program's contracts.
8 The program shall require the Authority to monitor the progress
9 of the contractors' obligations with respect to the program's
10 goals. Nothing in this program shall conflict with or interfere
11 with the maintenance or operation of, or compliance with, any
12 federally mandated disadvantaged business enterprise program.
13     The Authority shall establish and maintain a program
14 designed to promote equal employment opportunity. Each year, no
15 later than October 1, the Authority shall report to the General
16 Assembly on the number of employees of the Authority and the
17 number of employees who have designated themselves as members
18 of a minority group and gender.
19     Each year no later than October 1, and starting no later
20 than the October 1 after the establishment of the disadvantaged
21 business enterprise contracting program, the Authority shall
22 submit a report with respect to such program to the General
23 Assembly. In addition, no later than October 1 of each year,
24 the Authority shall submit a copy of its federally mandated
25 semi-annual Uniform Report of Disadvantaged Business
26 Enterprises Awards or Commitments and Payments to the General

 

 

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1 Assembly.
 
2     (70 ILCS 3605/55 new)
3     Sec. 55. Real estate transfer tax. Within 6 months after
4 the effective date of this amendatory Act of the 95th General
5 Assembly, the Chicago Transit Authority may by ordinance impose
6 a real estate transfer tax on the privilege of transferring
7 title to real estate in the City of Chicago at a rate of up to
8 $1.50 for each $500 of value or fraction thereof, which may be
9 on the buyer or seller of real estate, or jointly and severally
10 on both. The Chicago Transit Authority shall file a copy of any
11 ordinance imposing such tax with the Illinois Department of
12 Revenue and shall file a report with the Department each month
13 certifying the amount received in the previous month from the
14 proceeds of such tax. Such tax may, pursuant to an
15 intergovernmental agreement, be collected by the City of
16 Chicago in connection with real estate transfer taxes the City
17 imposes in accordance with Section 8-3-19 of the Illinois
18 Municipal Code and be remitted to the Chicago Transit Authority
19 net a reasonable agreed fee for costs of collection. The terms
20 of such real estate transfer tax shall be the same as those of
21 the City of Chicago's real estate transfer tax with regard to
22 definitions, scope, exemptions, procedures, penalties, and all
23 other terms except as expressly provided in this Section.
 
24     Section 20. The Regional Transportation Authority Act is

 

 

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1 amended by changing Sections 1.02, 2.01, 2.04, 2.05, 2.09,
2 2.12, 2.14, 2.18a, 2.30, 3.01, 3.03, 3.04, 3.05, 3A.10, 3A.11,
3 3A.14, 3B.02, 3B.03, 3B.05, 3B.07, 3B.09, 3B.10, 3B.11, 3B.12,
4 3B.13, 4.01, 4.02, 4.02a, 4.02b, 4.03, 4.04, 4.09, 4.11, 4.13,
5 4.14, and 5.01 and by adding Section 2.01a, 2.01b, 2.01c,
6 2.01d, 2.01e, 2.12b, 2.31, and 4.03.3 as follows:
 
7     (70 ILCS 3615/1.02)  (from Ch. 111 2/3, par. 701.02)
8     Sec. 1.02. Findings and Purpose. (a) The General Assembly
9 finds;
10     (i) Public transportation is, as provided in Section 7 of
11 Article XIII of the Illinois Constitution, an essential public
12 purpose for which public funds may be expended and that Section
13 authorizes the State to provide financial assistance to units
14 of local government for distribution to providers of public
15 transportation. There is an urgent need to reform and continue
16 a unit of local government to assure the proper management of
17 public transportation and to receive and distribute State or
18 federal operating assistance and to raise and distribute
19 revenues for local operating assistance. System generated
20 revenues are not adequate for such service and a public need
21 exists to provide for, aid and assist public transportation in
22 the northeastern area of the State, consisting of Cook, DuPage,
23 Kane, Lake, McHenry and Will Counties.
24     (ii) Comprehensive and coordinated regional public
25 transportation is essential to the public health, safety and

 

 

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1 welfare. It is essential to economic well-being, maintenance of
2 full employment, conservation of sources of energy and land for
3 open space and reduction of traffic congestion and for
4 providing and maintaining a healthful environment for the
5 benefit of present and future generations in the metropolitan
6 region. Public transportation improves the mobility of the
7 public and improves access to jobs, commercial facilities,
8 schools and cultural attractions. Public transportation
9 decreases air pollution and other environmental hazards
10 resulting from excessive use of automobiles and allows for more
11 efficient land use and planning.
12     (iii) Because system generated receipts are not presently
13 adequate, public transportation facilities and services in the
14 northeastern area are in grave financial condition. With
15 existing methods of financing, coordination and management,
16 and relative convenience of automobiles, such public
17 transportation facilities are not providing adequate public
18 transportation to insure the public health, safety and welfare.
19     (iv) Additional commitments to the special public
20 transportation needs problems of the disabled handicapped, the
21 economically disadvantaged, and the elderly are necessary.
22     (v) To solve these problems, it is necessary to provide for
23 the creation of a regional transportation authority with the
24 powers necessary to insure adequate public transportation.
25     (b) The General Assembly further finds, in connection with
26 this amendatory Act of 1983:

 

 

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1     (i) Substantial, recurring deficits in the operations of
2 public transportation services subject to the jurisdiction of
3 the Regional Transportation Authority and periodic cash
4 shortages have occurred either of which could bring about a
5 loss of public transportation services throughout the
6 metropolitan region at any time;
7     (ii) A substantial or total loss of public transportation
8 services or any segment thereof would create an emergency
9 threatening the safety and well-being of the people in the
10 northeastern area of the State; and
11     (iii) To meet the urgent needs of the people of the
12 metropolitan region that such an emergency be averted and to
13 provide financially sound methods of managing the provision of
14 public transportation services in the northeastern area of the
15 State, it is necessary, while maintaining and continuing the
16 existing Authority, to modify the powers and responsibilities
17 of the Authority, to reallocate responsibility for operating
18 decisions, to change the composition and appointment of the
19 Board of Directors thereof, and to immediately establish a new
20 Board of Directors.
21     (c) The General Assembly further finds in connection with
22 this amendatory Act of the 95th General Assembly:
23     (i) The economic vitality of northeastern Illinois
24 requires regionwide and systemwide efforts to increase
25 ridership on the transit systems, constrain road congestion
26 within the metropolitan region, and allocate resources for

 

 

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1 transportation so as to assist in the development of an
2 adequate, efficient, and coordinated regional transportation
3 system that is in a state of good repair.
4     (ii) To achieve the purposes of this amendatory Act of the
5 95th General Assembly, the powers and duties of the Authority
6 must be enhanced to improve overall planning and coordination,
7 to achieve an integrated and efficient regional transit system,
8 to advance the mobility of transit users, and to increase
9 financial transparency of the Authority and the Service Boards.
10     (d) (c) It is the purpose of this Act to provide for, aid
11 and assist public transportation in the northeastern area of
12 the State without impairing the overall quality of existing
13 public transportation by providing for the creation of a single
14 authority responsive to the people and elected officials of the
15 area and with the power and competence to develop, implement,
16 and enforce plans that promote adequate, efficient, and
17 coordinated public transportation, provide financial review of
18 the providers of public transportation in the metropolitan
19 region and facilitate public transportation provided by
20 Service Boards which is attractive and economical to users,
21 comprehensive, coordinated among its various elements,
22 economical, safe, efficient and coordinated with area and State
23 plans.
24 (Source: P.A. 83-885; 83-886.)
 
25     (70 ILCS 3615/2.01)  (from Ch. 111 2/3, par. 702.01)

 

 

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1     Sec. 2.01. General Allocation of Responsibility for Public
2 Transportation. Provision of Public Transportation - Review
3 and Program.
4     (a) In order to accomplish the its purposes as set forth in
5 this Act, the responsibility for planning, operating, and
6 funding public transportation in the metropolitan region shall
7 be allocated as described in this Act. The Authority shall:
8         (i) adopt plans that implement the public policy of the
9     State to provide adequate, efficient, and coordinated
10     public transportation throughout the metropolitan region;
11         (ii) set goals, objectives, and standards for the
12     Authority, the Service Boards, and transportation
13     agencies;
14         (iii) develop performance measures to inform the
15     public about the extent to which the provision of public
16     transportation in the metropolitan region meets those
17     goals, objectives, and standards;
18         (iv) allocate operating and capital funds made
19     available to support public transportation in the
20     metropolitan region;
21         (v) provide financial oversight of the Service Boards;
22     and
23         (vi) coordinate the provision of public transportation
24     and the investment in public transportation facilities to
25     enhance the integration of public transportation
26     throughout the metropolitan region, all as provided in this

 

 

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1     Act.
2     The the Service Boards shall, on a continuing basis
3 determine the level, nature and kind of public transportation
4 which should be provided for the metropolitan region in order
5 to meet the plans, goals, objectives, and standards adopted by
6 the Authority. The Service Boards may provide public
7 transportation by purchasing such service from transportation
8 agencies through purchase of service agreements, by grants to
9 such agencies or by operating such service, all pursuant to
10 this Act and the "Metropolitan Transit Authority Act", as now
11 or hereafter amended. Certain of its actions to implement the
12 responsibilities allocated to the Authority in this subsection
13 (a) shall be taken in 3 public documents adopted by the
14 affirmative vote of at least 12 of its then Directors: A
15 Strategic Plan; a Five-Year Capital Program; and an Annual
16 Budget and Two-Year Financial Plan. The Authority shall
17 establish a policy to provide adequate public transportation
18 throughout the metropolitan region.
19     (b) The Authority shall subject the operating and capital
20 plans and expenditures of the Service Boards in the
21 metropolitan region with regard to public transportation to
22 continuing review so that the Authority may budget and expend
23 its funds with maximum effectiveness and efficiency. The
24 Authority shall conduct audits of each of the Service Boards no
25 less than every 5 years. Such audits may include management,
26 performance, financial, and infrastructure condition audits.

 

 

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1 The Authority may conduct management, performance, financial,
2 and infrastructure condition audits of transportation agencies
3 that receive funds from the Authority. The Authority may direct
4 a Service Board to conduct any such audit of a transportation
5 agency that receives funds from such Service Board, and the
6 Service Board shall comply with such request to the extent it
7 has the right to do so. These audits of the Service Boards or
8 transportation agencies may be project or service specific
9 audits to evaluate their achievement of the goals and
10 objectives of that project or service and their compliance with
11 any applicable requirements. Certain of its recommendations in
12 this regard shall be set forth in 2 public documents, the
13 Five-Year Program provided for in this Section and an Annual
14 Budget and Program provided for in Section 4.01.
15     (c) The Authority shall, in consultation with the Service
16 Boards, each year prepare and, by ordinance, adopt, after
17 public hearings held in each county in the metropolitan region,
18 a Five-Year Program to inform the public and government
19 officials of the Authority's objectives and program for
20 operations and capital development during the forthcoming
21 five-year period. The Five-Year Program shall set forth the
22 standards of service which the public may expect; each Service
23 Board's plans for coordinating routes and service of the
24 various transportation agencies; the anticipated expense of
25 providing public transportation at standards of service then
26 existing and under alternative operating programs; the nature,

 

 

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1 location and expense of anticipated capital improvements
2 exceeding $250,000, by specific item and by fiscal year; and
3 such demographic and other data developed by planning and other
4 related agencies, as the Authority shall consider pertinent to
5 the Service Boards' decisions as to levels and nature of
6 service, including without limitation the patterns of
7 population density and growth, projected commercial and
8 residential development, environmental factors and the
9 availability of alternative modes of transportation. The
10 Five-Year Program shall be adopted on the affirmative votes of
11 9 of the then Directors.
12 (Source: P.A. 83-886.)
 
13     (70 ILCS 3615/2.01a new)
14     Sec. 2.01a. Strategic Plan.
15     (a) By the affirmative vote of at least 12 of its then
16 Directors, the Authority shall adopt a Strategic Plan, no less
17 than every 5 years, after consultation with the Service Boards
18 and after holding a minimum of 3 public hearings in Cook County
19 and one public hearing in each of the other counties in the
20 region. The Executive Director of the Authority shall review
21 the Strategic Plan on an ongoing basis and make recommendations
22 to the Board of the Authority with respect to any update or
23 amendment of the Strategic Plan. The Strategic Plan shall
24 describe the specific actions to be taken by the Authority and
25 the Service Boards to provide adequate, efficient, and

 

 

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1 coordinated public transportation.
2     (b) The Strategic Plan shall identify goals and objectives
3 with respect to:
4         (i) increasing ridership and passenger miles on public
5     transportation funded by the Authority;
6         (ii) coordination of public transportation services
7     and the investment in public transportation facilities to
8     enhance the integration of public transportation
9     throughout the metropolitan region;
10         (iii) coordination of fare and transfer policies to
11     promote transfers by riders among Service Boards,
12     transportation agencies, and public transportation modes,
13     which may include goals and objectives for development of a
14     universal fare instrument that riders may use
15     interchangeably on all public transportation funded by the
16     Authority, and methods to be used to allocate revenues from
17     transfers;
18         (iv) improvements in public transportation facilities
19     to bring those facilities into a state of good repair,
20     enhancements that attract ridership and improve customer
21     service, and expansions needed to serve areas with
22     sufficient demand for public transportation;
23         (v) access for transit-dependent populations,
24     including access by low-income communities to places of
25     employment, utilizing analyses provided by the Chicago
26     Metropolitan Agency for Planning regarding employment and

 

 

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1     transportation availability, and giving consideration to
2     the location of employment centers in each county and the
3     availability of public transportation at off-peak hours
4     and on weekends;
5         (vi) the financial viability of the public
6     transportation system, including both operating and
7     capital programs;
8         (vii) limiting road congestion within the metropolitan
9     region and enhancing transit options to improve mobility;
10     and
11         (viii) such other goals and objectives that advance the
12     policy of the State to provide adequate, efficient, and
13     coordinated public transportation in the metropolitan
14     region.
15     (c) The Strategic Plan shall establish the process and
16 criteria by which proposals for capital improvements by a
17 Service Board or a transportation agency will be evaluated by
18 the Authority for inclusion in the Five-Year Capital Program,
19 which may include criteria for:
20         (i) allocating funds among maintenance, enhancement,
21     and expansion improvements;
22         (ii) projects to be funded from the Innovation,
23     Coordination, and Enhancement Fund;
24         (iii) projects intended to improve or enhance
25     ridership or customer service;
26         (iv) design and location of station or transit

 

 

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1     improvements intended to promote transfers, increase
2     ridership, and support transit-oriented land development;
3         (v) assessing the impact of projects on the ability to
4     operate and maintain the existing transit system; and
5         (vi) other criteria that advance the goals and
6     objectives of the Strategic Plan.
7     (d) The Strategic Plan shall establish performance
8 standards and measurements regarding the adequacy, efficiency,
9 and coordination of public transportation services in the
10 region and the implementation of the goals and objectives in
11 the Strategic Plan. At a minimum, such standards and measures
12 shall include customer-related performance data measured by
13 line, route, or sub-region, as determined by the Authority, on
14 the following:
15         (i) travel times and on-time performance;
16         (ii) ridership data;
17         (iii) equipment failure rates;
18         (iv) employee and customer safety; and
19         (v) customer satisfaction.
20     The Service Boards and transportation agencies that
21 receive funding from the Authority or Service Boards shall
22 prepare, publish, and submit to the Authority such reports with
23 regard to these standards and measurements in the frequency and
24 form required by the Authority; however, the frequency of such
25 reporting shall be no less than annual. The Service Boards
26 shall publish such reports on their respective websites. The

 

 

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1 Authority shall compile and publish such reports on its
2 website. Such performance standards and measures shall not be
3 used as the basis for disciplinary action against any employee
4 of the Authority or Service Boards, except to the extent the
5 employment and disciplinary practices of the Authority or
6 Service Board provide for such action.
7     (e) The Strategic Plan shall identify innovations to
8 improve the delivery of public transportation and the
9 construction of public transportation facilities.
10     (f) The Strategic Plan shall describe the expected
11 financial condition of public transportation in the
12 metropolitan region prospectively over a 10-year period, which
13 may include information about the cash position and all known
14 obligations of the Authority and the Service Boards including
15 operating expenditures, debt service, contributions for
16 payment of pension and other post-employment benefits, the
17 expected revenues from fares, tax receipts, grants from the
18 federal, State, and local governments for operating and capital
19 purposes and issuance of debt, the availability of working
20 capital, and the resources needed to achieve the goals and
21 objectives described in the Strategic Plan.
22     (g) In developing the Strategic Plan, the Authority shall
23 rely on such demographic and other data, forecasts, and
24 assumptions developed by the Chicago Metropolitan Agency for
25 Planning with respect to the patterns of population density and
26 growth, projected commercial and residential development, and

 

 

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1 environmental factors, within the metropolitan region and in
2 areas outside the metropolitan region that may impact public
3 transportation utilization in the metropolitan region. Before
4 adopting or amending any Strategic Plan, the Authority shall
5 consult with the Chicago Metropolitan Agency for Planning
6 regarding the consistency of the Strategic Plan with the
7 Regional Comprehensive Plan adopted pursuant to the Regional
8 Planning Act.
9     (h) The Authority may adopt, by the affirmative vote of at
10 least 12 of its then Directors, sub-regional or corridor plans
11 for specific geographic areas of the metropolitan region in
12 order to improve the adequacy, efficiency, and coordination of
13 existing, or the delivery of new, public transportation. Such
14 plans may also address areas outside the metropolitan region
15 that may impact public transportation utilization in the
16 metropolitan region. In preparing a sub-regional or corridor
17 plan, the Authority may identify changes in operating practices
18 or capital investment in the sub-region or corridor that could
19 increase ridership, reduce costs, improve coordination, or
20 enhance transit-oriented development. The Authority shall
21 consult with any affected Service Boards in the preparation of
22 any sub-regional or corridor plans.
23     (i) If the Authority determines, by the affirmative vote of
24 at least 12 of its then Directors, that, with respect to any
25 proposed new public transportation service or facility, (i)
26 multiple Service Boards or transportation agencies are

 

 

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1 potential service providers and (ii) the public transportation
2 facilities to be constructed or purchased to provide that
3 service have an expected construction cost of more than
4 $25,000,000, the Authority shall have sole responsibility for
5 conducting any alternatives analysis and preliminary
6 environmental assessment required by federal or State law.
7 Nothing in this subparagraph (i) shall prohibit a Service Board
8 from undertaking alternatives analysis and preliminary
9 environmental assessment for any public transportation service
10 or facility identified in items (i) and (ii) above that is
11 included in the Five-Year Capital Program as of the effective
12 date of this amendatory Act of the 95th General Assembly;
13 however, any expenditure related to any such public
14 transportation service or facility must be included in a
15 Five-Year Capital Program under the requirements of Sections
16 2.01b and 4.02 of this Act.
 
17     (70 ILCS 3615/2.01b new)
18     Sec. 2.01b. The Five-Year Capital Program. By the
19 affirmative vote of at least 12 of its then Directors, the
20 Authority, after consultation with the Service Boards and after
21 holding a minimum of 3 public hearings in Cook County and one
22 public hearing in each of the other counties in the
23 metropolitan region, shall each year adopt a Five-Year Capital
24 Program that shall include each capital improvement to be
25 undertaken by or on behalf of a Service Board provided that the

 

 

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1 Authority finds that the improvement meets any criteria for
2 capital improvements contained in the Strategic Plan, is not
3 inconsistent with any sub-regional or corridor plan adopted by
4 the Authority, and can be funded within amounts available with
5 respect to the capital and operating costs of such improvement.
6 In reviewing proposals for improvements to be included in a
7 Five-Year Capital Program, the Authority may give priority to
8 improvements that are intended to bring public transportation
9 facilities into a state of good repair. The Five-Year Capital
10 Program shall also identify capital improvements to be
11 undertaken by a Service Board, a transportation agency, or a
12 unit of local government and funded by the Authority from
13 amounts in the Innovation, Coordination, and Enhancement Fund,
14 provided that no improvement that is included in the Five-Year
15 Capital Program as of the effective date of this amendatory Act
16 of the 95th General Assembly may receive funding from the
17 Innovation, Coordination, and Enhancement Fund. Before
18 adopting a Five-Year Capital Program, the Authority shall
19 consult with the Chicago Metropolitan Agency for Planning
20 regarding the consistency of the Five-Year Capital Program with
21 the Regional Comprehensive Plan adopted pursuant to the
22 Regional Planning Act.
 
23     (70 ILCS 3615/2.01c new)
24     Sec. 2.01c. Innovation, Coordination, and Enhancement
25 Fund.

 

 

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1     (a) The Authority shall establish an Innovation,
2 Coordination, and Enhancement Fund and each year deposit into
3 the Fund the amounts directed by Section 4.03.3 of this Act.
4 Amounts on deposit in such Fund and interest and other earnings
5 on those amounts may be used by the Authority, upon the
6 affirmative vote of 12 of its then Directors, and after a
7 public participation process, for operating or capital grants
8 or loans to Service Boards, transportation agencies, or units
9 of local government that advance the goals and objectives
10 identified by the Authority in its Strategic Plan, provided
11 that no improvement that has been included in a Five-Year
12 Capital Program as of the effective date of this amendatory Act
13 of the 95th General Assembly may receive any funding from the
14 Innovation, Coordination, and Enhancement Fund. Unless the
15 Board has determined by a vote of 12 of its then Directors that
16 an emergency exists requiring the use of some or all of the
17 funds then in the Innovation, Coordination, and Enhancement
18 Fund, such funds may only be used to enhance the coordination
19 and integration of public transportation and develop and
20 implement innovations to improve the quality and delivery of
21 public transportation.
22     (b) Any grantee that receives funds from the Innovation,
23 Coordination, and Enhancement Fund for the operation of
24 eligible programs must (i) implement such programs within one
25 year of receipt of such funds and (ii) within 2 years following
26 commencement of any program utilizing such funds, determine

 

 

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1 whether it is desirable to continue the program, and upon such
2 a determination, either incorporate such program into its
3 annual operating budget and capital program or discontinue such
4 program. No additional funds from the Innovation,
5 Coordination, and Enhancement Fund may be distributed to a
6 grantee for any individual program beyond 2 years unless the
7 Authority by the affirmative vote of at least 12 of its then
8 Directors waives this limitation. Any such waiver will be with
9 regard to an individual program and with regard to a one
10 year-period, and any further waivers for such individual
11 program require a subsequent vote of the Board.
 
12     (70 ILCS 3615/2.01d new)
13     Sec. 2.01d. ADA Paratransit Fund. The Authority shall
14 establish an ADA Paratransit Fund and, each year, deposit into
15 that Fund the amounts directed by Section 4.03.3 of this Act
16 and any funds received from the State pursuant to
17 appropriations for the purpose of funding ADA paratransit
18 services. The amounts on deposit in the Fund and interest and
19 other earnings on those amounts shall be used by the Authority
20 to make grants to the Suburban Bus Board for ADA paratransit
21 services provided pursuant to plans approved by the Authority
22 under Section 2.30 of this Act. Funds received by the Suburban
23 Bus Board from the Authority's ADA Paratransit Fund shall be
24 used only to provide ADA paratransit services to individuals
25 who are determined to be eligible for such services by the

 

 

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1 Authority under the Americans with Disabilities Act of 1990 and
2 its implementing regulations. Revenues from and costs of
3 services provided by the Suburban Bus Board with grants made
4 under this Section shall be included in the Annual Budget and
5 Two-Year Financial Program of the Suburban Bus Board and shall
6 be subject to all budgetary and financial requirements under
7 this Act that apply to ADA paratransit services. Beginning in
8 2008, the Executive Director shall, no later than August 15 of
9 each year, provide to the Board a written determination of the
10 projected annual costs of ADA paratransit services that are
11 required to be provided pursuant to the Americans with
12 Disabilities Act of 1990 and its implementing regulations. The
13 Authority shall conduct triennial financial, compliance, and
14 performance audits of ADA paratransit services to assist in
15 this determination.
 
16     (70 ILCS 3615/2.01e new)
17     Sec. 2.01e. Suburban Community Mobility Fund. The
18 Authority shall establish a Suburban Community Mobility Fund
19 and, each year, deposit into that Fund the amounts directed by
20 Section 4.03.3 of this Act. The amounts on deposit in the Fund
21 and interest and other earnings on those amounts shall be used
22 by the Authority to make grants to the Suburban Bus Board for
23 the purpose of operating transit services, other than
24 traditional fixed-route services, that enhance suburban
25 mobility, including, but not limited to, demand-responsive

 

 

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1 transit services, ride sharing, van pooling, service
2 coordination, centralized dispatching and call taking, reverse
3 commuting, service restructuring, and bus rapid transit.
4 Revenues from and costs of services provided by the Suburban
5 Bus Board with moneys from the Suburban Community Mobility Fund
6 shall be included in the Annual Budget and Two-Year Financial
7 Program of the Suburban Bus Board and shall be subject to all
8 budgetary and financial requirements under this Act.
 
9     (70 ILCS 3615/2.04)  (from Ch. 111 2/3, par. 702.04)
10     Sec. 2.04. Fares and Nature of Service.
11     (a) Whenever a Service Board provides any public
12 transportation by operating public transportation facilities,
13 the Service Board shall provide for the level and nature of
14 fares or charges to be made for such services, and the nature
15 and standards of public transportation to be so provided that
16 meet the goals and objectives adopted by the Authority in the
17 Strategic Plan. Provided, however that if the Board adopts a
18 budget and financial plan for a Service Board in accordance
19 with the provisions in Section 4.11(b)(5), the Board may
20 consistent with the terms of any purchase of service contract
21 provide for the level and nature of fares to be made for such
22 services under the jurisdiction of that Service Board, and the
23 nature and standards of public transportation to be so
24 provided.
25     (b) Whenever a Service Board provides any public

 

 

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1 transportation pursuant to grants made after June 30, 1975, to
2 transportation agencies for operating expenses (other than
3 with regard to experimental programs) or pursuant to any
4 purchase of service agreement, the purchase of service
5 agreement or grant contract shall provide for the level and
6 nature of fares or charges to be made for such services, and
7 the nature and standards of public transportation to be so
8 provided. A Service Board shall require all transportation
9 agencies with which it contracts, or from which it purchases
10 transportation services or to which it makes grants to provide
11 half fare transportation for their student riders if any of
12 such agencies provide for half fare transportation to their
13 student riders.
14     (c) In so providing for the fares or charges and the nature
15 and standards of public transportation, any purchase of service
16 agreements or grant contracts shall provide, among other
17 matters, for the terms or cost of transfers or interconnections
18 between different modes of transportation and different public
19 transportation agencies, schedules or routes of such service,
20 changes which may be made in such service, the nature and
21 condition of the facilities used in providing service, the
22 manner of collection and disposition of fares or charges, the
23 records and reports to be kept and made concerning such
24 service, and for interchangeable tickets or other coordinated
25 or uniform methods of collection of charges, and shall further
26 require that the transportation agency comply with any

 

 

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1 determination made by the Board of the Authority under and
2 subject to the provisions of Section 2.12b of this Act. In
3 regard to any such service, the Authority and the Service
4 Boards shall give attention to and may undertake programs to
5 promote use of public transportation and to provide coordinated
6 ticket sales and passenger information. In the case of a grant
7 to a transportation agency which remains subject to Illinois
8 Commerce Commission supervision and regulation, the Service
9 Boards shall exercise the powers set forth in this Section in a
10 manner consistent with such supervision and regulation by the
11 Illinois Commerce Commission.
12 (Source: P.A. 83-886.)
 
13     (70 ILCS 3615/2.05)  (from Ch. 111 2/3, par. 702.05)
14     Sec. 2.05. Centralized Services; Acquisition and
15 Construction.
16     (a) The Authority may at the request of two or more Service
17 Boards, serve, or designate a Service Board to serve, as a
18 centralized purchasing agent for the Service Boards so
19 requesting.
20     (b) The Authority may at the request of two or more Service
21 Boards perform other centralized services such as ridership
22 information and transfers between services under the
23 jurisdiction of the Service Boards where such centralized
24 services financially benefit the region as a whole. Provided,
25 however, that the Board may require transfers only upon an

 

 

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1 affirmative vote of 12 9 of its then Directors.
2     (c) A Service Board or the Authority may for the benefit of
3 a Service Board, to meet its purposes, construct or acquire any
4 public transportation facility for use by a Service Board or
5 for use by any transportation agency and may acquire any such
6 facilities from any transportation agency, including also
7 without limitation any reserve funds, employees' pension or
8 retirement funds, special funds, franchises, licenses,
9 patents, permits and papers, documents and records of the
10 agency. In connection with any such acquisition from a
11 transportation agency the Authority may assume obligations of
12 the transportation agency with regard to such facilities or
13 property or public transportation operations of such agency.
14     In connection with any construction or acquisition, the
15 Authority shall make relocation payments as may be required by
16 federal law or by the requirements of any federal agency
17 authorized to administer any federal program of aid.
18     (d) The Authority shall, after consulting with the Service
19 Boards, develop regionally coordinated and consolidated sales,
20 marketing, advertising, and public information programs that
21 promote the use and coordination of, and transfers among,
22 public transportation services in the metropolitan region. The
23 Authority shall develop and adopt, with the affirmative vote of
24 at least 12 of its then Directors, rules and regulations for
25 the Authority and the Service Boards regarding such programs to
26 ensure that the Service Boards' independent programs conform

 

 

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1 with the Authority's regional programs.
2 (Source: P.A. 83-886.)
 
3     (70 ILCS 3615/2.09)  (from Ch. 111 2/3, par. 702.09)
4     Sec. 2.09. Research and Development.
5     (a) The Authority and the Service Boards shall study public
6 transportation problems and developments; encourage
7 experimentation in developing new public transportation
8 technology, financing methods, and management procedures;
9 conduct, in cooperation with other public and private agencies,
10 studies and demonstration and development projects to test and
11 develop methods for improving public transportation, for
12 reducing its costs to users or for increasing public use; and
13 conduct, sponsor, and participate in other studies and
14 experiments, which may include fare demonstration programs,
15 useful to achieving the purposes of this Act. The cost for any
16 such item authorized by this Section may be exempted by the
17 Board in a budget ordinance from the "costs" included in
18 determining that the Authority and its service boards meet the
19 farebox recovery ratio or system generated revenues recovery
20 ratio requirements of Sections 3A.10, 3B.10, 4.01(b), 4.09 and
21 4.11 of this Act and Section 34 of the Metropolitan Transit
22 Authority Act during the Authority's fiscal year which begins
23 January 1, 1986 and ends December 31, 1986, provided that the
24 cost of any item authorized herein must be specifically
25 approved within the budget adopted pursuant to Sections 4.01

 

 

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1 and 4.11 of this Act for that fiscal year.
2     (b) To improve public transportation service in areas of
3 the metropolitan region with limited access to commuter rail
4 service, the Authority and the Suburban Bus Division shall
5 evaluate the feasibility of implementing new bus rapid transit
6 services using the expressway and tollway systems in the
7 metropolitan region. The Illinois Department of Transportation
8 and the Illinois Toll Highway Authority shall work
9 cooperatively with the Authority and the Suburban Bus Division
10 in that evaluation and in the implementation of bus rapid
11 transit services. The Authority and the Suburban Bus Division,
12 in cooperation with the Illinois Department of Transportation,
13 shall develop a bus rapid transit demonstration project on
14 Interstate 55 located in Will, DuPage, and Cook counties. This
15 demonstration project shall test and refine approaches to bus
16 rapid transit operations in the expressway or tollway shoulder
17 or regular travel lanes and shall investigate technology
18 options that facilitate the shared use of the transit lane and
19 provide revenue for financing construction and operation of
20 public transportation facilities.
21     (c) The Suburban Bus Division and the Authority shall
22 cooperate in the development, funding, and operation of
23 programs to enhance access to job markets for residents in
24 south suburban Cook County. Beginning in 2008, the Authority
25 shall allocate to the Suburban Bus Division an amount not less
26 than $3,750,000, and beginning in 2009 an amount not less than

 

 

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1 $7,500,000 annually for the costs of such programs.
2 (Source: P.A. 84-939.)
 
3     (70 ILCS 3615/2.12)  (from Ch. 111 2/3, par. 702.12)
4     Sec. 2.12. Coordination with Planning Agencies. The
5 Authority and the Service Boards shall cooperate with the
6 various public agencies charged with responsibility for
7 long-range or comprehensive planning for the metropolitan
8 region. The Authority shall utilize the official forecasts and
9 plans of the Chicago Metropolitan Agency for Planning in
10 developing the Strategic Plan and the Five-Year Capital
11 Program. The Authority and the Service Boards shall, prior to
12 the adoption of any Strategic Plan, as provided in Section
13 2.01a of this Act, or the adoption of any Five-Year Capital
14 Program, as provided in paragraph (b) of Section 2.01b 2.01 of
15 this Act, submit its proposals to such agencies for review and
16 comment. The Authority and the Service Boards may make use of
17 existing studies, surveys, plans, data and other materials in
18 the possession of any State agency or department, any planning
19 agency or any unit of local government.
20 (Source: P.A. 83-886.)
 
21     (70 ILCS 3615/2.12b new)
22     Sec. 2.12b. Coordination of Fares and Service. Upon the
23 request of a Service Board, the Executive Director of the
24 Authority may, upon the affirmative vote of 9 of the then

 

 

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1 Directors of the Authority, intervene in any matter involving
2 (i) a dispute between Service Boards or a Service Board and a
3 transportation agency providing service on behalf of a Service
4 Board with respect to the terms of transfer between, and the
5 allocation of revenues from fares and charges for,
6 transportation services provided by the parties or (ii) a
7 dispute between 2 Service Boards with respect to coordination
8 of service, route duplication, or a change in service. Any
9 Service Board or transportation agency involved in such dispute
10 shall meet with the Executive Director, cooperate in good faith
11 to attempt to resolve the dispute, and provide any books,
12 records, and other information requested by the Executive
13 Director. If the Executive Director is unable to mediate a
14 resolution of any dispute, he or she may provide a written
15 determination recommending a change in the fares or charges or
16 the allocation of revenues for such service or directing a
17 change in the nature or provider of service that is the subject
18 of the dispute. The Executive Director shall base such
19 determination upon the goals and objectives of the Strategic
20 Plan established pursuant to Section 2.01a(b). Such
21 determination shall be presented to the Board of the Authority
22 and, if approved by the affirmative vote of at least 9 of the
23 then Directors of the Authority, shall be final and shall be
24 implemented by any affected Service Board and transportation
25 agency within the time frame required by the determination.
 

 

 

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1     (70 ILCS 3615/2.14)  (from Ch. 111 2/3, par. 702.14)
2     Sec. 2.14. Appointment of Officers and Employees. The
3 Authority may appoint, retain and employ officers, attorneys,
4 agents, engineers and employees. The officers shall include an
5 Executive Director, who shall be the chief executive officer of
6 the Authority, appointed by the Chairman with the concurrence
7 of 11 9 of the other then Directors of the Board. The Executive
8 Director shall organize the staff of the Authority, shall
9 allocate their functions and duties, shall transfer such staff
10 to the Suburban Bus Division and the Commuter Rail Division as
11 is sufficient to meet their purposes, shall fix compensation
12 and conditions of employment of the staff of the Authority, and
13 consistent with the policies of and direction from the Board,
14 take all actions necessary to achieve its purposes, fulfill its
15 responsibilities and carry out its powers, and shall have such
16 other powers and responsibilities as the Board shall determine.
17 The Executive Director must be an individual of proven
18 transportation and management skills and may not be a member of
19 the Board. The Authority may employ its own professional
20 management personnel to provide professional and technical
21 expertise concerning its purposes and powers and to assist it
22 in assessing the performance of the Service Boards in the
23 metropolitan region.
24     No unlawful discrimination, as defined and prohibited in
25 the Illinois Human Rights Act, shall be made in any term or
26 aspect of employment nor shall there be discrimination based

 

 

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1 upon political reasons or factors. The Authority shall
2 establish regulations to insure that its discharges shall not
3 be arbitrary and that hiring and promotion are based on merit.
4     The Authority shall be subject to the "Illinois Human
5 Rights Act", as now or hereafter amended, and the remedies and
6 procedure established thereunder. The Authority shall file an
7 affirmative action program for employment by it with the
8 Department of Human Rights to ensure that applicants are
9 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. 83-886.)
 
16     (70 ILCS 3615/2.18a)  (from Ch. 111 2/3, par. 702.18a)
17     Sec. 2.18a. (a) The provisions of this Section apply to
18 collective bargaining agreements (including extensions and
19 amendments to existing agreements) between Service Boards or
20 transportation agencies subject to the jurisdiction of Service
21 Boards and their employees, which are entered into after
22 January 1, 1984.
23     (b) The Authority shall approve amended budgets prepared by
24 Service Boards which incorporate the costs of collective
25 bargaining agreements between Service Boards and their

 

 

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1 employees. The Authority shall approve such an amended budget
2 provided that it determines by the affirmative vote of 12 9 of
3 its then members that the amended budget meets the standards
4 established in Section 4.11.
5 (Source: P.A. 83-886.)
 
6     (70 ILCS 3615/2.30)
7     Sec. 2.30. Paratransit services.
8     (a) For purposes of this Act, "ADA paratransit services"
9 shall mean those comparable or specialized transportation
10 services provided by, or under grant or purchase of service
11 contracts of, the Service Boards to individuals with
12 disabilities who are unable to use fixed route transportation
13 systems and who are determined to be eligible, for some or all
14 of their trips, for such services under the Americans with
15 Disabilities Act of 1990 and its implementing regulations.
16     (b) Beginning July 1, 2005, the Authority is responsible
17 for the funding, from amounts on deposit in the ADA Paratransit
18 Fund established under Section 2.01d of this Act, financial
19 review and oversight of all ADA paratransit services that are
20 provided by the Authority or by any of the Service Boards. The
21 Suburban Bus Board shall operate or provide for the operation
22 of all ADA paratransit services by no later than July 1, 2006,
23 except that this date may be extended to the extent necessary
24 to obtain approval from the Federal Transit Administration of
25 the plan prepared pursuant to subsection (c).

 

 

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1     (c) No later than January 1, 2006, the Authority, in
2 collaboration with the Suburban Bus Board and the Chicago
3 Transit Authority, shall develop a plan for the provision of
4 ADA paratransit services and submit such plan to the Federal
5 Transit Administration for approval. Approval of such plan by
6 the Authority shall require the affirmative votes of 12 9 of
7 the then Directors. The Suburban Bus Board, the Chicago Transit
8 Authority and the Authority shall comply with the requirements
9 of the Americans with Disabilities Act of 1990 and its
10 implementing regulations in developing and approving such plan
11 including, without limitation, consulting with individuals
12 with disabilities and groups representing them in the
13 community, and providing adequate opportunity for public
14 comment and public hearings. The plan shall include the
15 contents required for a paratransit plan pursuant to the
16 Americans with Disabilities Act of 1990 and its implementing
17 regulations. The plan shall also include, without limitation,
18 provisions to:
19         (1) maintain, at a minimum, the levels of ADA
20     paratransit service that are required to be provided by the
21     Service Boards pursuant to the Americans with Disabilities
22     Act of 1990 and its implementing regulations;
23         (2) transfer the appropriate ADA paratransit services,
24     management, personnel, service contracts and assets from
25     the Chicago Transit Authority to the Authority or the
26     Suburban Bus Board, as necessary, by no later than July 1,

 

 

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1     2006, except that this date may be extended to the extent
2     necessary to obtain approval from the Federal Transit
3     Administration of the plan prepared pursuant to this
4     subsection (c);
5         (3) provide for consistent policies throughout the
6     metropolitan region for scheduling of ADA paratransit
7     service trips to and from destinations, with consideration
8     of scheduling of return trips on a "will-call" open-ended
9     basis upon request of the rider, if practicable, and with
10     consideration of an increased number of trips available by
11     subscription service than are available as of the effective
12     date of this amendatory Act;
13         (4) provide that service contracts and rates, entered
14     into or set after the approval by the Federal Transit
15     Administration of the plan prepared pursuant to subsection
16     (c) of this Section, with private carriers and taxicabs for
17     ADA paratransit service are procured by means of an open
18     procurement process;
19         (5) provide for fares, fare collection and billing
20     procedures for ADA paratransit services throughout the
21     metropolitan region;
22         (6) provide for performance standards for all ADA
23     paratransit service transportation carriers, with
24     consideration of door-to-door service;
25         (7) provide, in cooperation with the Illinois
26     Department of Transportation, the Illinois Department of

 

 

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1     Public Aid and other appropriate public agencies and
2     private entities, for the application and receipt of
3     grants, including, without limitation, reimbursement from
4     Medicaid or other programs for ADA paratransit services;
5         (8) provide for a system of dispatch of ADA paratransit
6     services transportation carriers throughout the
7     metropolitan region, with consideration of county-based
8     dispatch systems already in place as of the effective date
9     of this amendatory Act;
10         (9) provide for a process of determining eligibility
11     for ADA paratransit services that complies with the
12     Americans with Disabilities Act of 1990 and its
13     implementing regulations;
14         (10) provide for consideration of innovative methods
15     to provide and fund ADA paratransit services; and
16         (11) provide for the creation of one or more ADA
17     advisory boards, or the reconstitution of the existing ADA
18     advisory boards for the Service Boards, to represent the
19     diversity of individuals with disabilities in the
20     metropolitan region and to provide appropriate ongoing
21     input from individuals with disabilities into the
22     operation of ADA paratransit services.
23     (d) All revisions and annual updates to the ADA paratransit
24 services plan developed pursuant to subsection (c) of this
25 Section, or certifications of continued compliance in lieu of
26 plan updates, that are required to be provided to the Federal

 

 

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1 Transit Administration shall be developed by the Authority, in
2 collaboration with the Suburban Bus Board and the Chicago
3 Transit Authority, and the Authority shall submit such
4 revision, update or certification to the Federal Transit
5 Administration for approval. Approval of such revisions,
6 updates or certifications by the Authority shall require the
7 affirmative votes of 12 9 of the then Directors.
8     (e) The Illinois Department of Transportation, the
9 Illinois Department of Public Aid, the Authority, the Suburban
10 Bus Board and the Chicago Transit Authority shall enter into
11 intergovernmental agreements as may be necessary to provide
12 funding and accountability for, and implementation of, the
13 requirements of this Section.
14     (f) By no later than April 1, 2007, the Authority shall
15 develop and submit to the General Assembly and the Governor a
16 funding plan for ADA paratransit services. Approval of such
17 plan by the Authority shall require the affirmative votes of 12
18 9 of the then Directors. The funding plan shall, at a minimum,
19 contain an analysis of the current costs of providing ADA
20 paratransit services, projections of the long-term costs of
21 providing ADA paratransit services, identification of and
22 recommendations for possible cost efficiencies in providing
23 ADA paratransit services, and identification of and
24 recommendations for possible funding sources for providing ADA
25 paratransit services. The Illinois Department of
26 Transportation, the Illinois Department of Public Aid, the

 

 

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1 Suburban Bus Board, the Chicago Transit Authority and other
2 State and local public agencies as appropriate shall cooperate
3 with the Authority in the preparation of such funding plan.
4     (g) Any funds derived from the federal Medicaid program for
5 reimbursement of the costs of providing ADA paratransit
6 services within the metropolitan region shall be directed to
7 the Authority and shall be used to pay for or reimburse the
8 costs of providing such services.
9     (h) Nothing in this amendatory Act shall be construed to
10 conflict with the requirements of the Americans with
11 Disabilities Act of 1990 and its implementing regulations.
12 (Source: P.A. 94-370, eff. 7-29-05.)
 
13     (70 ILCS 3615/2.31 new)
14     Sec. 2.31. Disadvantaged Business Enterprise Contracting
15 and Equal Employment Opportunity Programs. The Authority and
16 each Service Board shall, as soon as is practicable but in no
17 event later than two years after the effective date of this
18 amendatory Act of the 95th General Assembly, establish and
19 maintain a disadvantaged business enterprise contracting
20 program designed to ensure non-discrimination in the award and
21 administration of contracts not covered under a federally
22 mandated disadvantaged business enterprise program. The
23 program shall establish narrowly tailored goals for the
24 participation of disadvantaged business enterprises as the
25 Authority and each Service Board determines appropriate. The

 

 

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1 goals shall be based on demonstrable evidence of the
2 availability of ready, willing, and able disadvantaged
3 business enterprises relative to all businesses ready,
4 willing, and able to participate on the program's contracts.
5 The program shall require the Authority and each Service Board
6 to monitor the progress of the contractors' obligations with
7 respect to the program's goals. Nothing in this program shall
8 conflict with or interfere with the maintenance or operation
9 of, or compliance with, any federally mandated disadvantaged
10 business enterprise program.
11     The Authority and each Service Board shall establish and
12 maintain a program designed to promote equal employment
13 opportunity. Each year, no later than October 1, the Authority
14 and each Service Board shall report to the General Assembly on
15 the number of their respective employees and the number of
16 their respective employees who have designated themselves as
17 members of a minority group and gender.
18     Each year no later than October 1, and starting no later
19 than the October 1 after the establishment of their
20 disadvantaged business enterprise contracting programs, the
21 Authority and each Service Board shall submit a report with
22 respect to such program to the General Assembly. In addition,
23 each year no later than October 1, the Authority and each
24 Service Board shall submit a copy of its federally mandated
25 semi-annual Uniform Report of Disadvantaged Business
26 Enterprises Awards or Commitments and Payments to the General

 

 

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1 Assembly.
 
2     (70 ILCS 3615/3.01)  (from Ch. 111 2/3, par. 703.01)
3     Sec. 3.01. Board of Directors. The Upon expiration of the
4 term of the members of the Transition Board as provided for in
5 Section 3.09, the corporate authorities and governing body of
6 the Authority shall be a Board consisting of 13 Directors until
7 April 1, 2008, and 16 Directors thereafter, appointed as
8 follows:
9     (a) Four Directors appointed by the Mayor of the City of
10 Chicago, with the advice and consent of the City Council of the
11 City of Chicago, and, only until April 1, 2008, a fifth
12 director who shall be the Chairman of the Chicago Transit
13 Authority. After April 1, 2008, the Mayor of the City of
14 Chicago, with the advice and consent of the City Council of the
15 City of Chicago, shall appoint a fifth Director. The Directors
16 appointed by the Mayor of the City of Chicago shall not be the
17 chairman or a director of the Chicago Transit Authority. Each
18 such Director shall reside in the City of Chicago except the
19 Chairman of the Chicago Transit Authority who shall reside
20 within the metropolitan area as defined in the Metropolitan
21 Transit Authority Act.
22     (b) Four Directors appointed by the votes of a majority of
23 the members of the Cook County Board elected from that part of
24 Cook County outside of Chicago, or, in the event such Board of
25 Commissioners becomes elected from single member districts, by

 

 

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1 those Commissioners elected from districts, a majority of the
2 electors of which reside outside Chicago. After April 1, 2008,
3 a fifth Director appointed by the President of the Cook County
4 Board with the advice and consent of the members of the Cook
5 County Board. In either case, such appointment shall be with
6 the concurrence of four such Commissioners. Each such Director
7 appointed under this subparagraph shall reside in that part of
8 Cook County outside Chicago.
9     (c) Until April 1, 2008, 3 Directors appointed by the
10 Chairmen of the county boards of DuPage, Kane, Lake, McHenry,
11 and Will Counties, as follows:
12         (i) Two Directors appointed by the Chairmen of the
13     county boards of Kane, Lake, McHenry and Will Counties,
14     with the concurrence of not less than a majority of the
15     Chairmen from such counties, from nominees by the Chairmen.
16     Each such Chairman may nominate not more than 2 persons for
17     each position. Each such Director shall reside in a county
18     in the metropolitan region other than Cook or DuPage
19     Counties.
20         (ii) (d) One Director shall be appointed by the
21     Chairman of the Board of DuPage County Board with the
22     advice and consent of the County Board of DuPage County
23     Board. Such Director and shall reside in DuPage County.
24     (d) After April 1, 2008, 5 Directors appointed by the
25 Chairmen of the county boards of DuPage, Kane, Lake and McHenry
26 Counties and the County Executive of Will County, as follows:

 

 

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1         (i) One Director appointed by the Chairman of the Kane
2     County Board with the advice and consent of the Kane County
3     Board. Such Director shall reside in Kane County.
4         (ii) One Director appointed by the County Executive of
5     Will County with the advice and consent of the Will County
6     Board. Such Director shall reside in Will County.
7         (iii) One Director appointed by the Chairman of the
8     DuPage County Board with the advice and consent of the
9     DuPage County Board. Such Director shall reside in DuPage
10     County.
11         (iv) One Director appointed by the Chairman of the Lake
12     County Board with the advice and consent of the Lake County
13     Board. Such Director shall reside in Lake County.
14         (v) One Director appointed by the Chairman of the
15     McHenry County Board with the advice and consent of the
16     McHenry County Board. Such Director shall reside in McHenry
17     County.
18         (vi) To implement the changes in appointing authority
19     under this subparagraph (d) the three Directors appointed
20     under subparagraph (c) and residing in Lake County, DuPage
21     County, and Kane County respectively shall each continue to
22     serve as Director until the expiration of their respective
23     term of office and until his or her successor is appointed
24     and qualified or a vacancy occurs in the office. Thereupon,
25     the appointment shall be made by the officials given
26     appointing authority with respect to the Director whose

 

 

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1     term has expired or office has become vacant.
2     (e) The Chairman serving on the effective date of this
3 amendatory Act of the 95th General Assembly shall continue to
4 serve as Chairman until the expiration of his or her term of
5 office and until his or her successor is appointed and
6 qualified or a vacancy occurs in the office Before January 1,
7 1987, for the term expiring July 1, 1989, the Chairman shall be
8 appointed by the Governor. Thereafter the Chairman shall be
9 appointed by the other 12 Directors with the concurrence of
10 three-fourths of such Directors. Upon the expiration or vacancy
11 of the term of the Chairman then serving upon the effective
12 date of this amendatory Act of the 95th General Assembly, the
13 Chairman shall be appointed by the other Directors, by the
14 affirmative vote of at least 11 of the then Directors. The
15 chairman shall not be appointed from among the other Directors.
16 The chairman shall be a resident of the metropolitan region.
17     (f) Except as otherwise provided by this Act no Director
18 shall, while serving as such, be an officer, a member of the
19 Board of Directors or Trustees or an employee of any Service
20 Board or transportation agency, or be an employee of the State
21 of Illinois or any department or agency thereof, or of any unit
22 of local government or receive any compensation from any
23 elected or appointed office under the Constitution and laws of
24 Illinois; except that a Director may be a member of a school
25 board.
26     (g) Each appointment made under this Section and under

 

 

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1 Section 3.03 shall be certified by the appointing authority to
2 the Board, which shall maintain the certifications as part of
3 the official records of the Authority; provided that the
4 initial appointments shall be certified to the Secretary of
5 State, who shall transmit the certifications to the Board
6 following its organization. All appointments made by the
7 Governor shall be made with the advice and consent of the
8 Senate.
9     (h) (Blank). The Board of Directors shall be so appointed
10 as to represent the City of Chicago, that part of Cook County
11 outside the City of Chicago, and that part of the metropolitan
12 region outside Cook County on the one man one vote basis. After
13 each Federal decennial census the General Assembly shall review
14 the composition of the Board and, if a change is needed to
15 comply with this requirement, shall provide for the necessary
16 revision by July 1 of the third year after such census.
17 Provided, however, that the Chairman of the Chicago Transit
18 Authority shall be a Director of the Authority and shall be
19 considered as representing the City of Chicago for purposes of
20 this paragraph.
21     Insofar as may be practicable, the changes in Board
22 membership necessary to achieve this purpose shall take effect
23 as appropriate members terms expire, no member's term being
24 reduced by reason of such revision of the composition of the
25 Board.
26 (Source: P.A. 83-1417.)
 

 

 

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1     (70 ILCS 3615/3.03)  (from Ch. 111 2/3, par. 703.03)
2     Sec. 3.03. Terms, vacancies. Each Director, including the
3 Chairman, shall be appointed for an initial term as provided
4 for in Section 3.10 of this Act. Thereafter, each Director
5 shall hold office for a term of 5 years, and until his
6 successor has been appointed and has qualified. A vacancy shall
7 occur upon resignation, death, conviction of a felony, or
8 removal from office of a Director. Any Director may be removed
9 from office upon concurrence of not less than 11 9 Directors,
10 on a formal finding of incompetence, neglect of duty, or
11 malfeasance in office. Within 30 days after the office of any
12 member becomes vacant for any reason, the appointing
13 authorities of such member shall make an appointment to fill
14 the vacancy. A vacancy shall be filled for the unexpired term.
15     Whenever After October 1, 1984, whenever a vacancy for a
16 Director, except as to the Chairman or those Directors
17 appointed by the Governor or the Mayor of the City of Chicago,
18 exists for longer than 4 months, the new Director shall be
19 chosen by election by all legislative members in the General
20 Assembly representing the affected area. In order to qualify as
21 a voting legislative member in this matter, the affected area
22 must be more than 50% of the geographic area of the legislative
23 district.
24 (Source: P.A. 86-1475.)
 

 

 

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1     (70 ILCS 3615/3.04)  (from Ch. 111 2/3, par. 703.04)
2     Sec. 3.04. Compensation. Each Director, excluding
3 including the Chairman, except for the Chairman of the Chicago
4 Transit Authority who shall not be compensated by the
5 Authority, shall be compensated at the rate of $25,000 per
6 year. The Chairman shall be compensated at the rate of $50,000
7 per year.
8     Officers of the Authority shall not be required to comply
9 with the requirements of "An Act requiring certain custodians
10 of public moneys to file and publish statements of the receipts
11 and disbursements thereof", approved June 24, 1919, as now or
12 hereafter amended.
13 (Source: P.A. 83-885; 83-886.)
 
14     (70 ILCS 3615/3.05)  (from Ch. 111 2/3, par. 703.05)
15     Sec. 3.05. Meetings. The Board shall prescribe the times
16 and places for meetings and the manner in which special
17 meetings may be called. The Board shall comply in all respects
18 with the "Open Meetings Act", approved July 11, 1957, as now or
19 hereafter amended. All records, documents and papers of the
20 Authority, other than those relating to matters concerning
21 which closed sessions of the Board may be held, shall be
22 available for public examination, subject to such reasonable
23 regulations as the Board may adopt.
24     A majority of the Directors holding office shall constitute
25 a quorum for the conduct of business. Except as otherwise

 

 

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1 provided in this Act, the affirmative votes of at least 9 7
2 Directors shall be necessary for approving any contract or
3 agreement, adopting any rule or regulation, and any other
4 action required by this Act to be taken by resolution or
5 ordinance.
6     The Board shall meet with the Regional Citizens Advisory
7 Board at least once every 4 months.
8 (Source: P.A. 83-886.)
 
9     (70 ILCS 3615/3A.10)  (from Ch. 111 2/3, par. 703A.10)
10     Sec. 3A.10. Budget and Program. The Suburban Bus Board,
11 subject to the powers of the Authority in Section 4.11, shall
12 control the finances of the Division. It shall by ordinance
13 appropriate money to perform the Division's purposes and
14 provide for payment of debts and expenses of the Division. Each
15 year the Suburban Bus Board shall prepare and publish a
16 comprehensive annual budget and proposed five-year capital
17 program document, and a financial plan for the 2 years
18 thereafter describing the state of the Division and presenting
19 for the forthcoming fiscal year and the 2 following years the
20 Suburban Bus Board's plans for such operations and capital
21 expenditures as it intends to undertake and the means by which
22 it intends to finance them. The proposed budget, and financial
23 plan, and five-year capital program shall be based on the
24 Authority's estimate of funds to be made available to the
25 Suburban Bus Board by or through the Authority and shall

 

 

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

 

 

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

 

 

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1         (ii) show cash balances including the proceeds of any
2     anticipated cash flow borrowing sufficient to pay with
3     reasonable promptness all costs and expenses as incurred;
4         (iii) provide for a level of fares or charges and
5     operating or administrative costs for the public
6     transportation provided by or subject to the jurisdiction
7     of the Suburban Bus Board sufficient to allow the Suburban
8     Bus Board to meet its required system generated revenues
9     recovery ratio and, beginning with the 2007 fiscal year,
10     its system generated ADA paratransit services revenue
11     recovery ratio;
12         (iv) be based upon and employ assumptions and
13     projections which are reasonable and prudent;
14         (v) have been prepared in accordance with sound
15     financial practices as determined by the Board of the
16     Authority; and
17         (vi) meet such other uniform financial, budgetary, or
18     fiscal requirements that the Board of the Authority may by
19     rule or regulation establish; and .
20         (vii) be consistent with the goals and objectives
21     adopted by the Regional Transportation Authority in the
22     Strategic Plan.
23 (Source: P.A. 94-370, eff. 7-29-05.)
 
24     (70 ILCS 3615/3A.11)  (from Ch. 111 2/3, par. 703A.11)
25     Sec. 3A.11. Citizens Advisory Board. The Suburban Bus Board

 

 

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1 shall establish a citizens advisory board composed of 10
2 residents of those portions of the metropolitan region in which
3 the Suburban Bus Board provides service who have an interest in
4 public transportation. The members of the advisory board shall
5 be named for 2 year terms, shall select one of their members to
6 serve as chairman and shall serve without compensation. The
7 citizens advisory board shall meet with the Suburban Bus Board
8 at least quarterly and advise the Suburban Bus Board of the
9 impact of its policies and programs on the communities it
10 serves. Appointments to the citizens advisory board should, to
11 the greatest extent possible, reflect the ethnic, cultural, and
12 geographic diversity of all persons residing within the
13 Suburban Bus Board's jurisdiction.
14 (Source: P.A. 83-886.)
 
15     (70 ILCS 3615/3A.14)  (from Ch. 111 2/3, par. 703A.14)
16     Sec. 3A.14. Labor. (a) The provisions of this Section apply
17 to collective bargaining agreements (including extensions and
18 amendments of existing agreements) entered into on or after
19 January 1, 1984.
20     (b) The Suburban Bus Board shall deal with and enter into
21 written contracts with their employees, through accredited
22 representatives of such employees authorized to act for such
23 employees concerning wages, salaries, hours, working
24 conditions, and pension or retirement provisions about which a
25 collective bargaining agreement has been entered prior to the

 

 

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

 

 

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1 operated by the Suburban Bus Board except where prohibited by
2 federal law.
3     (d) Within 30 days of the signing of any such collective
4 bargaining agreement, the Suburban Bus Board shall determine
5 the costs of each provision of the agreement, prepare an
6 amended budget incorporating the costs of the agreement, and
7 present the amended budget to the Board of the Authority for
8 its approval under Section 4.11. The Board may approve the
9 amended budget by an affirmative vote of 12 9 of its then
10 Directors. If the budget is not approved by the Board of the
11 Authority, the agreement may be reopened and its terms may be
12 renegotiated. Any amended budget which may be prepared
13 following renegotiation shall be presented to the Board of the
14 Authority for its approval in like manner.
15 (Source: P.A. 83-886.)
 
16     (70 ILCS 3615/3B.02)  (from Ch. 111 2/3, par. 703B.02)
17     Sec. 3B.02. Commuter Rail Board.
18     (a) Until April 1, 2008, the The governing body of the
19 Commuter Rail Division shall be a board consisting of 7
20 directors appointed pursuant to Sections 3B.03 and 3B.04, as
21 follows:
22         (1) (a) One director shall be appointed by the Chairman
23     of the Board of DuPage County with the advice and consent
24     of the County Board of DuPage County and shall reside in
25     DuPage County. ;

 

 

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1         (2) (b) Two directors appointed by the Chairmen of the
2     County Boards of Kane, Lake, McHenry and Will Counties with
3     the concurrence of not less than a majority of the chairmen
4     from such counties, from nominees by the Chairmen. Each
5     such chairman may nominate not more than two persons for
6     each position. Each such director shall reside in a county
7     in the metropolitan region other than Cook or DuPage
8     County.
9         (3) (c) Three directors appointed by the members of the
10     Cook County Board elected from that part of Cook County
11     outside of Chicago, or, in the event such Board of
12     Commissioners becomes elected from single member
13     districts, by those Commissioners elected from districts,
14     a majority of the residents of which reside outside
15     Chicago. In either case, such appointment shall be with the
16     concurrence of four such Commissioners. Each such director
17     shall reside in that part of Cook County outside Chicago.
18         (4) (d) One director appointed by the Mayor of the City
19     of Chicago, with the advice and consent of the City Council
20     of the City of Chicago. Such director shall reside in the
21     City of Chicago.
22         (5) The chairman shall be appointed by the directors,
23     from the members of the board, with the concurrence of 5 of
24     such directors.
25     (b) After April 1, 2008 the governing body of the Commuter
26 Rail Division shall be a board consisting of 11 directors

 

 

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1 appointed, pursuant to Sections 3B.03 and 3B.04, as follows:
2         (1) One Director shall be appointed by the Chairman of
3     the DuPage County Board with the advice and consent of the
4     DuPage County Board and shall reside in DuPage County. To
5     implement the changes in appointing authority under this
6     Section, upon the expiration of the term of or vacancy in
7     office of the Director appointed under item (1) of
8     subsection (a) of this Section who resides in DuPage
9     County, a Director shall be appointed under this
10     subparagraph.
11         (2) One Director shall be appointed by the Chairman of
12     the McHenry County Board with the advice and consent of the
13     McHenry County Board and shall reside in McHenry County. To
14     implement the change in appointing authority under this
15     Section, upon the expiration of the term of or vacancy in
16     office of the Director appointed under item (2) of
17     subsection (a) of this Section who resides in McHenry
18     County, a Director shall be appointed under this
19     subparagraph.
20         (3) One Director shall be appointed by the Will County
21     Executive with the advice and consent of the Will County
22     Board and shall reside in Will County. To implement the
23     change in appointing authority under this Section, upon the
24     expiration of the term of or vacancy in office of the
25     Director appointed under item (2) of subsection (a) of this
26     Section who resides in Will County, a Director shall be

 

 

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1     appointed under this subparagraph.
2         (4) One Director shall be appointed by the Chairman of
3     the Lake County Board with the advice and consent of the
4     Lake County Board and shall reside in Lake County.
5         (5) One Director shall be appointed by the Chairman of
6     the Kane County Board with the advice and consent of the
7     Kane County Board and shall reside in Kane County.
8         (6) One Director shall be appointed by the Mayor of the
9     City of Chicago with the advice and consent of the City
10     Council of the City of Chicago and shall reside in the City
11     of Chicago. To implement the changes in appointing
12     authority under this Section, upon the expiration of the
13     term of or vacancy in office of the Director appointed
14     under item (4) of subsection (a) of this Section who
15     resides in the City of Chicago, a Director shall be
16     appointed under this subparagraph.
17         (7) Five Directors residing in Cook County outside of
18     the City of Chicago, as follows:
19             (i) One Director who resides in Cook County outside
20         of the City of Chicago, appointed by the President of
21         the Cook County Board with the advice and consent of
22         the members of the Cook County Board.
23             (ii) One Director who resides in the township of
24         Barrington, Palatine, Wheeling, Hanover, Schaumburg,
25         or Elk Grove. To implement the changes in appointing
26         authority under this Section, upon the expiration of

 

 

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1         the term of or vacancy in office of the Director
2         appointed under paragraph (3) of subsection (a) of this
3         Section who resides in the geographic area described in
4         this subparagraph, a Director shall be appointed under
5         this subparagraph.
6             (iii) One Director who resides in the township of
7         Northfield, New Trier, Maine, Niles, Evanston, Leyden,
8         Norwood Park, River Forest, or Oak Park.
9             (iv) One Director who resides in the township of
10         Proviso, Riverside, Berwyn, Cicero, Lyons, Stickney,
11         Lemont, Palos, or Orland. To implement the changes in
12         appointing authority under this Section, upon the
13         expiration of the term of or vacancy in office of the
14         Director appointed under paragraph (3) of subsection
15         (a) of this Section who resides in the geographic area
16         described in this subparagraph and whose term of office
17         had not expired as of August 1, 2007, a Director shall
18         be appointed under this subparagraph.
19             (v) One Director who resides in the township of
20         Worth, Calumet, Bremen, Thornton, Rich, or Bloom. To
21         implement the changes in appointing authority under
22         this Section, upon the expiration of the term of or
23         vacancy in office of the Director appointed under
24         paragraph (3) of subsection (a) of this Section who
25         resides in the geographic area described in this
26         subparagraph and whose term of office had expired as of

 

 

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1         August 1, 2007, a Director shall be appointed under
2         this subparagraph.
3             (vi) The Directors identified under the provisions
4         of subparagraphs (ii) through (v) of this paragraph (7)
5         shall be appointed by the members of the Cook County
6         Board. Each individual Director shall be appointed by
7         those members of the Cook County Board whose Board
8         districts overlap in whole or in part with the
9         geographic territory described in the relevant
10         subparagraph. The vote of County Board members
11         eligible to appoint directors under the provisions of
12         subparagraphs (ii) through (v) of this paragraph (7)
13         shall be weighted by the number of electors residing in
14         those portions of their Board districts within the
15         geographic territory described in the relevant
16         subparagraph (ii) through (v) of this paragraph (7).
17         (8) The chairman shall be appointed by the directors,
18     from the members of the board, with the concurrence of 8 of
19     such directors. To implement the changes in appointing
20     authority under this Section, upon the expiration of the
21     term of or vacancy in office of the Chairman appointed
22     under item (5) of subsection (a) of this Section, a
23     Chairman shall be appointed under this subparagraph.
24     (c) No director, while serving as such, shall be an
25 officer, a member of the board of directors or trustee or an
26 employee of any transportation agency, or be an employee of the

 

 

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1 State of Illinois or any department or agency thereof, or of
2 any unit of local government or receive any compensation from
3 any elected or appointed office under the Constitution and laws
4 of Illinois.
5     (d) Each appointment made under subsections (a) and (b) of
6 this Section paragraphs (a) through (d) and under Section 3B.03
7 shall be certified by the appointing authority to the Commuter
8 Rail Board which shall maintain the certifications as part of
9 the official records of the Commuter Rail Board; provided that
10 the initial appointments shall be certified to the Secretary of
11 State, who shall transmit the certifications to the Commuter
12 Rail Board following its organization.
13     Appointments to the Commuter Rail Board shall be
14 apportioned so as to represent the City of Chicago, that part
15 of Cook County outside of the City of Chicago, and DuPage
16 County and that part of the metropolitan region other than Cook
17 and DuPage Counties based on morning boardings of the services
18 provided by the Commuter Rail Division as certified to the
19 Board of the Authority by the Commuter Rail Board, provided
20 however that the Mayor of the City of Chicago shall appoint no
21 fewer than 1 member of the Commuter Rail Board. Within two
22 years after each federal decennial census, the Board of the
23 Authority shall review the composition of the Commuter Rail
24 Board and, if change is needed to comply with this requirement,
25 shall provide for the necessary reapportionment by July 1 of
26 the second year after such census. Insofar as may be

 

 

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1 practicable, the changes in board membership necessary to
2 achieve this purpose shall take effect as appropriate members
3 terms expire, no member's term being reduced by reason of such
4 revision of the composition of the Commuter Rail Board.
5 (Source: P.A. 83-886.)
 
6     (70 ILCS 3615/3B.03)  (from Ch. 111 2/3, par. 703B.03)
7     Sec. 3B.03. Terms, Vacancies. Each The initial term of the
8 director appointed pursuant to subdivision (a) of Section 3B.02
9 and the initial term of one of the directors appointed pursuant
10 to subdivision (b) of Section 3B.02 shall expire on June 30,
11 1985; the initial term of one of the directors appointed
12 pursuant to subdivision (b) of Section 3B.02 and the initial
13 term of one of the directors appointed pursuant to subdivision
14 (c) of Section 3B.02 shall expire on June 30, 1986; the initial
15 terms of two of the directors appointed pursuant to subdivision
16 (c) of Section 3B.02 shall expire on June 30, 1987; the initial
17 term of the director appointed pursuant to subdivision (d) of
18 Section 3B.02 shall expire on June 30, 1988. Thereafter, each
19 director shall be appointed for a term of 4 years, and until
20 his successor has been appointed and qualified. A vacancy shall
21 occur upon the resignation, death, conviction of a felony, or
22 removal from office of a director. Any director may be removed
23 from office upon the concurrence of not less than 8 6
24 directors, on a formal finding of incompetence, neglect of
25 duty, or malfeasance in office. Within 30 days after the office

 

 

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1 of any director becomes vacant for any reason, the appropriate
2 appointing authorities of such director, as provided in Section
3 3B.02, shall make an appointment to fill the vacancy. A vacancy
4 shall be filled for the unexpired term.
5 (Source: P.A. 84-939.)
 
6     (70 ILCS 3615/3B.05)  (from Ch. 111 2/3, par. 703B.05)
7     Sec. 3B.05. Appointment of officers and employees. The
8 Commuter Rail Board shall appoint an Executive Director who
9 shall be the chief executive officer of the Division,
10 appointed, retained or dismissed with the concurrence of 8 6 of
11 the directors of the Commuter Rail Board. The Executive
12 Director shall appoint, retain and employ officers, attorneys,
13 agents, engineers, employees and shall organize the staff,
14 shall allocate their functions and duties, fix compensation and
15 conditions of employment, and consistent with the policies of
16 and direction from the Commuter Rail Board take all actions
17 necessary to achieve its purposes, fulfill its
18 responsibilities and carry out its powers, and shall have such
19 other powers and responsibilities as the Commuter Rail Board
20 shall determine. The Executive Director shall be an individual
21 of proven transportation and management skills and may not be a
22 member of the Commuter Rail Board. The Division may employ its
23 own professional management personnel to provide professional
24 and technical expertise concerning its purposes and powers and
25 to assist it in assessing the performance of transportation

 

 

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1 agencies in the metropolitan region.
2     No unlawful discrimination, as defined and prohibited in
3 the Illinois Human Rights Act, shall be made in any term or
4 aspect of employment nor shall there be discrimination based
5 upon political reasons or factors. The Commuter Rail Board
6 shall establish regulations to insure that its discharges shall
7 not be arbitrary and that hiring and promotion are based on
8 merit.
9     The Division shall be subject to the "Illinois Human Rights
10 Act", as now or hereafter amended, and the remedies and
11 procedure established thereunder. The Commuter Rail Board
12 shall file an affirmative action program for employment by it
13 with the Department of Human Rights to ensure that applicants
14 are employed and that employees are treated during employment,
15 without regard to unlawful discrimination. Such affirmative
16 action program shall include provisions relating to hiring,
17 upgrading, demotion, transfer, recruitment, recruitment
18 advertising, selection for training and rates of pay or other
19 forms of compensation.
20 (Source: P.A. 83-885; 83-886.)
 
21     (70 ILCS 3615/3B.07)  (from Ch. 111 2/3, par. 703B.07)
22     Sec. 3B.07. Meetings. The Commuter Rail Board shall
23 prescribe the times and places for meetings and the manner in
24 which special meetings may be called. The Commuter Rail Board
25 shall comply in all respects with the "Open Meetings Act", as

 

 

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1 now or hereafter amended. All records, documents and papers of
2 the Commuter Rail Division, other than those relating to
3 matters concerning which closed sessions of the Commuter Rail
4 Board may be held, shall be available for public examination,
5 subject to such reasonable regulations as the board may adopt.
6     A majority of the members shall constitute a quorum for the
7 conduct of business. The affirmative votes of at least 6 4
8 members shall be necessary for any action required by this Act
9 to be taken by ordinance.
10 (Source: P.A. 83-886.)
 
11     (70 ILCS 3615/3B.09)  (from Ch. 111 2/3, par. 703B.09)
12     Sec. 3B.09. General Powers. In addition to any powers
13 elsewhere provided to the Commuter Rail Board, it shall have
14 all of the powers specified in Section 2.20 of this Act except
15 for the powers specified in Section 2.20(a)(v). The Board shall
16 also have the power:
17     (a) to cooperate with the Regional Transportation
18 Authority in the exercise by the Regional Transportation
19 Authority of all the powers granted it by such Act;
20     (b) to receive funds from the Regional Transportation
21 Authority pursuant to Sections 2.02, 4.01, 4.02, 4.09 and 4.10
22 of the "Regional Transportation Authority Act", all as provided
23 in the "Regional Transportation Authority Act"; and
24     (c) to receive financial grants from the Regional
25 Transportation Authority or a Service Board, as defined in the

 

 

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1 "Regional Transportation Authority Act", upon such terms and
2 conditions as shall be set forth in a grant contract between
3 either the Division and the Regional Transportation Authority
4 or the Division and another Service Board, which contract or
5 agreement may be for such number of years or duration as the
6 parties may agree, all as provided in the "Regional
7 Transportation Authority Act"; and .
8     (d) to borrow money for the purpose of acquiring,
9 constructing, reconstructing, extending, or improving any
10 Public Transportation Facilities (as defined in Section 1.03 of
11 the Regional Transportation Authority Act) operated by or to be
12 operated by or on behalf of the Commuter Rail Division. For the
13 purpose of evidencing the obligation of the Commuter Rail Board
14 to repay any money borrowed as provided in this subsection, the
15 Commuter Rail Board may issue revenue bonds from time to time
16 pursuant to ordinance adopted by the Commuter Rail Board,
17 subject to the approval of the Regional Transportation
18 Authority of each such issuance by the affirmative vote of 12
19 of its then Directors; provided that the Commuter Rail Board
20 may not issue bonds for the purpose of financing the
21 acquisition, construction, or improvement of a corporate
22 headquarters building. All such bonds shall be payable solely
23 from the revenues or income or any other funds that the
24 Commuter Rail Board may receive, provided that the Commuter
25 Rail Board may not pledge as security for such bonds the
26 moneys, if any, that the Commuter Rail Board receives from the

 

 

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1 Regional Transportation Authority pursuant to Section
2 4.03.3(f) of the Regional Transportation Authority Act. The
3 bonds shall bear interest at a rate not to exceed the maximum
4 rate authorized by the Bond Authorization Act and shall mature
5 at such time or times not exceeding 25 years from their
6 respective dates. Bonds issued pursuant to this paragraph must
7 be issued with scheduled principal or mandatory redemption
8 payments in equal amounts in each fiscal year over the term of
9 the bonds, with the first principal or mandatory redemption
10 payment scheduled within the fiscal year in which bonds are
11 issued or within the next succeeding fiscal year. At least 25%,
12 based on total principal amount, of all bonds authorized
13 pursuant to this Section shall be sold pursuant to notice of
14 sale and public bid. No more than 75%, based on total principal
15 amount, of all bonds authorized pursuant to this Section shall
16 be sold by negotiated sale. The maximum principal amount of the
17 bonds that may be issued and outstanding at any time may not
18 exceed $1,000,000,000. The bonds shall have all the qualities
19 of negotiable instruments under the laws of this State. To
20 secure the payment of any or all of such bonds and for the
21 purpose of setting forth the covenants and undertakings of the
22 Commuter Rail Board in connection with the issuance thereof and
23 the issuance of any additional bonds payable from such revenue
24 or income as well as the use and application of the revenue or
25 income received by the Commuter Rail Board, the Commuter Rail
26 Board may execute and deliver a trust agreement or agreements;

 

 

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1 provided that no lien upon any physical property of the
2 Commuter Rail Board shall be created thereby. A remedy for any
3 breach or default of the terms of any such trust agreement by
4 the Commuter Rail Board may be by mandamus proceedings in any
5 court of competent jurisdiction to compel performance and
6 compliance therewith, but the trust agreement may prescribe by
7 whom or on whose behalf such action may be instituted. Under no
8 circumstances shall any bonds issued by the Commuter Rail Board
9 or any other obligation of the Commuter Rail Board in
10 connection with the issuance of such bonds be or become an
11 indebtedness or obligation of the State of Illinois, the
12 Regional Transportation Authority, or any other political
13 subdivision of or municipality within the State, nor shall any
14 such bonds or obligations be or become an indebtedness of the
15 Commuter Rail Board within the purview of any constitutional
16 limitation or provision, and it shall be plainly stated on the
17 face of each bond that it does not constitute such an
18 indebtedness or obligation but is payable solely from the
19 revenues or income as aforesaid.
20 (Source: P.A. 83-885; 83-886.)
 
21     (70 ILCS 3615/3B.10)  (from Ch. 111 2/3, par. 703B.10)
22     Sec. 3B.10. Budget and Program. The Commuter Rail 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
25 appropriate money to perform the Division's purposes and

 

 

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

 

 

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

 

 

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1 amount appropriated for each object or program. Additional
2 appropriations, transfers between items and other changes in
3 such ordinance which do not alter the basis upon which the
4 balanced budget determination was made by the Board of the
5 Authority may be made from time to time by the Commuter Rail
6 Board.
7     The budget shall:
8     (i) show a balance between (A) anticipated revenues from
9 all sources including operating subsidies and (B) the costs of
10 providing the services specified and of funding any operating
11 deficits or encumbrances incurred in prior periods, including
12 provision for payment when due of principal and interest on
13 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 for the
18 public transportation provided by or subject to the
19 jurisdiction of such Commuter Rail Board sufficient to allow
20 the Commuter Rail Board to meet its required system generated
21 revenue recovery ratio;
22     (iv) be based upon and employ assumptions and projections
23 which the Board of the Authority finds to be reasonable and
24 prudent;
25     (v) have been prepared in accordance with sound financial
26 practices as determined by the Board of the Authority; and

 

 

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1     (vi) meet such other uniform financial, budgetary, or
2 fiscal requirements that the Board of the Authority may by rule
3 or regulation establish; and .
4     (vii) be consistent with the goals and objectives adopted
5 by the Regional Transportation Authority in the Strategic Plan.
6 (Source: P.A. 83-885; 83-886.)
 
7     (70 ILCS 3615/3B.11)  (from Ch. 111 2/3, par. 703B.11)
8     Sec. 3B.11. Citizens Advisory Board. The Commuter Rail
9 Board shall establish a citizens advisory board composed of ten
10 residents of those portions of the metropolitan region in which
11 the Commuter Rail Board provides service who have an interest
12 in public transportation. The members of the advisory board
13 shall be named for two year terms, shall select one of their
14 members to serve as chairman and shall serve without
15 compensation. The citizens advisory board shall meet with the
16 Commuter Rail Board at least quarterly and advise the Commuter
17 Rail Board of the impact of its policies and programs on the
18 communities it serves. Appointments to the citizens advisory
19 board should, to the greatest extent possible, reflect the
20 ethnic, cultural, and geographic diversity of all persons
21 residing within the Commuter Rail Division's jurisdiction.
22 (Source: P.A. 83-886.)
 
23     (70 ILCS 3615/3B.12)  (from Ch. 111 2/3, par. 703B.12)
24     Sec. 3B.12. Working Cash Borrowing. The Commuter Rail Board

 

 

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1 with the affirmative vote of 7 5 of its Directors may demand
2 and direct the Board of the Authority to issue Working Cash
3 Notes at such time and in such amounts and having such
4 maturities as the Commuter Rail Board deems proper, provided
5 however any such borrowing shall have been specifically
6 identified in the budget of the Commuter Rail Board as approved
7 by the Board of the Authority. Provided further, that the
8 Commuter Rail Board may not demand and direct the Board of the
9 Authority to have issued and have outstanding at any time in
10 excess of $20,000,000 in Working Cash Notes.
11 (Source: P.A. 83-886.)
 
12     (70 ILCS 3615/3B.13)  (from Ch. 111 2/3, par. 703B.13)
13     Sec. 3B.13. Labor.
14     (a) The provisions of this Section apply to collective
15 bargaining agreements (including extensions and amendments of
16 existing agreements) entered into on or after January 1, 1984.
17 This Section does not apply to collective bargaining agreements
18 that are subject to the provisions of the Railway Labor Act, as
19 now or hereafter amended.
20     (b) The Commuter Rail Board shall deal with and enter into
21 written contracts with their employees, through accredited
22 representatives of such employees authorized to act for such
23 employees concerning wages, salaries, hours, working
24 conditions, and pension or retirement provisions about which a
25 collective bargaining agreement has been entered prior to the

 

 

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

 

 

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1 prohibition on the use of part-time operators on any service
2 operated by the Commuter Rail Board except where prohibited by
3 federal law.
4     (d) Within 30 days of the signing of any such collective
5 bargaining agreement, the Commuter Rail Board shall determine
6 the costs of each provision of the agreement, prepare an
7 amended budget incorporating the costs of the agreement, and
8 present the amended budget to the Board of the Authority for
9 its approval under Section 4.11. The Board may approve the
10 amended budget by an affirmative vote of 12 9 of its then
11 Directors. If the budget is not approved by the Board of the
12 Authority, the agreement may be reopened and its terms may be
13 renegotiated. Any amended budget which may be prepared
14 following renegotiation shall be presented to the Board of the
15 Authority for its approval in like manner.
16 (Source: P.A. 84-1308.)
 
17     (70 ILCS 3615/4.01)  (from Ch. 111 2/3, par. 704.01)
18     Sec. 4.01. Budget and Program.
19     (a) The Board shall control the finances of the Authority.
20 It shall by ordinance adopted by the affirmative vote of at
21 least 12 of its then Directors (i) appropriate money to perform
22 the Authority's purposes and provide for payment of debts and
23 expenses of the Authority, (ii) take action with respect to the
24 budget and two-year financial plan of each Service Board, as
25 provided in Section 4.11, and (iii) adopt an Annual Budget and

 

 

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1 Two-Year Financial Plan for the Authority that includes the
2 annual budget and two-year financial plan of each Service Board
3 that has been approved by the Authority. Each year the
4 Authority shall prepare and publish a comprehensive annual
5 budget and program document describing the state of the
6 Authority and presenting for the forthcoming fiscal year the
7 Authority's plans for such operations and capital expenditures
8 as the Authority intends to undertake and the means by which it
9 intends to finance them. The Annual Budget and Two-Year
10 Financial Plan proposed program and budget shall contain a
11 statement of the funds estimated to be on hand for the
12 Authority and each Service Board at the beginning of the fiscal
13 year, the funds estimated to be received from all sources for
14 such year, the estimated expenses and obligations of the
15 Authority and each Service Board for all purposes, including
16 expenses for contributions to be made with respect to pension
17 and other employee benefits, and the funds estimated to be on
18 hand at the end of such year. After adoption of the Authority's
19 first Five-Year Program, as provided in Section 2.01 of this
20 Act, the proposed program and budget shall specifically
21 identify any respect in which the recommended program deviates
22 from the Authority's then existing Five-Year Program, giving
23 the reasons for such deviation. The fiscal year of the
24 Authority and each Service Board shall begin on January 1st and
25 end on the succeeding December 31st except that the fiscal year
26 that began October 1, 1982, shall end December 31, 1983. By

 

 

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1 July 1st 1981 and July 1st of each year thereafter the Director
2 of the Illinois Governor's Office of Management and Budget
3 (formerly Bureau of the Budget) shall submit to the Authority
4 an estimate of revenues for the next fiscal year of the
5 Authority to be collected from the taxes imposed by the
6 Authority and the amounts to be available in the Public
7 Transportation Fund and the Regional Transportation Authority
8 Occupation and Use Tax Replacement Fund and the amounts
9 otherwise to be appropriated by the State to the Authority for
10 its purposes. The Authority shall file a copy of its Annual
11 Budget and Two-Year Financial Plan with For the fiscal year
12 ending on December 31, 1983, the Board shall report its results
13 from operations and financial condition to the General Assembly
14 and the Governor by January 31. For the fiscal year beginning
15 January 1, 1984, and thereafter, the budget and program shall
16 be presented to the General Assembly and the Governor after its
17 adoption not later than the preceding December 31st. Before the
18 proposed Annual Budget and Two-Year Financial Plan budget and
19 program is adopted, the Authority shall hold at least one
20 public hearing thereon in the metropolitan region, and shall
21 meet . The Board shall hold at least one meeting for
22 consideration of the proposed program and budget with the
23 county board or its designee of each of the several counties in
24 the metropolitan region. After conducting such hearings and
25 holding such meetings and after making such changes in the
26 proposed Annual Budget and Two-Year Financial Plan program and

 

 

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1 budget as the Board deems appropriate, the Board shall adopt
2 its annual appropriation and Annual Budget and Two-Year
3 Financial Plan budget ordinance. The ordinance may be adopted
4 only upon the affirmative votes of 12 9 of its then Directors.
5 The ordinance shall appropriate such sums of money as are
6 deemed necessary to defray all necessary expenses and
7 obligations of the Authority, specifying purposes and the
8 objects or programs for which appropriations are made and the
9 amount appropriated for each object or program. Additional
10 appropriations, transfers between items and other changes in
11 such ordinance may be made from time to time by the Board upon
12 the affirmative votes of 12 9 of its then Directors.
13     (b) The Annual Budget and Two-Year Financial Plan budget
14 shall show a balance between anticipated revenues from all
15 sources and anticipated expenses including funding of
16 operating deficits or the discharge of encumbrances incurred in
17 prior periods and payment of principal and interest when due,
18 and shall show cash balances sufficient to pay with reasonable
19 promptness all obligations and expenses as incurred.
20     The Annual Budget and Two-Year Financial Plan annual budget
21 and financial plan must show:
22          (i) that the level of fares and charges for mass
23     transportation provided by, or under grant or purchase of
24     service contracts of, the Service Boards is sufficient to
25     cause the aggregate of all projected fare revenues from
26     such fares and charges received in each fiscal year to

 

 

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1     equal at least 50% of the aggregate costs of providing such
2     public transportation in such fiscal year. "Fare revenues"
3     include the proceeds of all fares and charges for services
4     provided, contributions received in connection with public
5     transportation from units of local government other than
6     the Authority and from the State pursuant to subsection (i)
7     of Section 2705-305 of the Department of Transportation Law
8     (20 ILCS 2705/2705-305), and all other operating revenues
9     properly included consistent with generally accepted
10     accounting principles but do not include: the proceeds of
11     any borrowings, revenues received by the Chicago Transit
12     Authority from a real estate transfer tax imposed under
13     Section 55 of the Metropolitan Transit Authority Act, and,
14     beginning with the 2007 fiscal year, all revenues and
15     receipts, including but not limited to fares and grants
16     received from the federal, State or any unit of local
17     government or other entity, derived from providing ADA
18     paratransit service pursuant to Section 2.30 of the
19     Regional Transportation Authority Act. "Costs" include all
20     items properly included as operating costs consistent with
21     generally accepted accounting principles, including
22     administrative costs, but do not include: depreciation;
23     payment of principal and interest on bonds, notes or other
24     evidences of obligation for borrowed money issued by the
25     Authority; payments with respect to public transportation
26     facilities made pursuant to subsection (b) of Section 2.20

 

 

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1     of this Act; any payments with respect to rate protection
2     contracts, credit enhancements or liquidity agreements
3     made under Section 4.14; any other cost to which it is
4     reasonably expected that a cash expenditure will not be
5     made; costs up to $5,000,000 annually for passenger
6     security including grants, contracts, personnel, equipment
7     and administrative expenses, except in the case of the
8     Chicago Transit Authority, in which case the term does not
9     include costs spent annually by that entity for protection
10     against crime as required by Section 27a of the
11     Metropolitan Transit Authority Act; the payment by the
12     Chicago Transit Authority of Debt Service, as defined in
13     Section 12c of the Metropolitan Transit Authority Act, on
14     bonds or notes issued pursuant to that Section; the payment
15     by the Commuter Rail Division of debt service on bonds
16     issued pursuant to Section 3B.09; expenses incurred by the
17     Suburban Bus Division for the cost of new public
18     transportation services funded from grants pursuant to
19     Section 2.01e of this amendatory Act of the 95th General
20     Assembly for a period of 2 years from the date of
21     initiation of each such service; costs as exempted by the
22     Board for projects pursuant to Section 2.09 of this Act;
23     or, beginning with the 2007 fiscal year, expenses related
24     to providing ADA paratransit service pursuant to Section
25     2.30 of the Regional Transportation Authority Act; and in
26     fiscal years 2008 through 2012 inclusive, costs in the

 

 

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1     amount of $200,000,000 in fiscal year 2008, reducing by
2     $40,000,000 in each fiscal year thereafter until this
3     exemption is eliminated; and
4         (ii) that the level of fares charged for ADA
5     paratransit services is sufficient to cause the aggregate
6     of all projected revenues from such fares charged and
7     received in each fiscal year to equal at least 10% of the
8     aggregate costs of providing such ADA paratransit services
9     in fiscal years 2007 and 2008 and at least 12% of the
10     aggregate costs of providing such ADA paratransit services
11     in fiscal years 2009 and thereafter; for purposes of this
12     Act, the percentages in this subsection (b)(ii) shall be
13     referred to as the "system generated ADA paratransit
14     services revenue recovery ratio".
15     (c) The actual administrative expenses of the Authority for
16 the fiscal year commencing January 1, 1985 may not exceed
17 $5,000,000. The actual administrative expenses of the
18 Authority for the fiscal year commencing January 1, 1986, and
19 for each fiscal year thereafter shall not exceed the maximum
20 administrative expenses for the previous fiscal year plus 5%.
21 "Administrative expenses" are defined for purposes of this
22 Section as all expenses except: (1) capital expenses and
23 purchases of the Authority on behalf of the Service Boards; (2)
24 payments to Service Boards; and (3) payment of principal and
25 interest on bonds, notes or other evidence of obligation for
26 borrowed money issued by the Authority; (4) costs for passenger

 

 

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1 security including grants, contracts, personnel, equipment and
2 administrative expenses; (5) payments with respect to public
3 transportation facilities made pursuant to subsection (b) of
4 Section 2.20 of this Act; and (6) any payments with respect to
5 rate protection contracts, credit enhancements or liquidity
6 agreements made pursuant to Section 4.14.
7     (d) This subsection applies only until the Department
8 begins administering and enforcing an increased tax under
9 Section 4.03(m) as authorized by this amendatory Act of the
10 95th General Assembly. After withholding 15% of the proceeds of
11 any tax imposed by the Authority and 15% of money received by
12 the Authority from the Regional Transportation Authority
13 Occupation and Use Tax Replacement Fund, the Board shall
14 allocate the proceeds and money remaining to the Service Boards
15 as follows: (1) an amount equal to 85% of the proceeds of those
16 taxes collected within the City of Chicago and 85% of the money
17 received by the Authority on account of transfers to the
18 Regional Transportation Authority Occupation and Use Tax
19 Replacement Fund from the County and Mass Transit District Fund
20 attributable to retail sales within the City of Chicago shall
21 be allocated to the Chicago Transit Authority; (2) an amount
22 equal to 85% of the proceeds of those taxes collected within
23 Cook County outside the City of Chicago and 85% of the money
24 received by the Authority on account of transfers to the
25 Regional Transportation Authority Occupation and Use Tax
26 Replacement Fund from the County and Mass Transit District Fund

 

 

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1 attributable to retail sales within Cook County outside of the
2 city of Chicago shall be allocated 30% to the Chicago Transit
3 Authority, 55% to the Commuter Rail Board and 15% to the
4 Suburban Bus Board; and (3) an amount equal to 85% of the
5 proceeds of the taxes collected within the Counties of DuPage,
6 Kane, Lake, McHenry and Will shall be allocated 70% to the
7 Commuter Rail Board and 30% to the Suburban Bus Board.
8     (e) This subsection applies only until the Department
9 begins administering and enforcing an increased tax under
10 Section 4.03(m) as authorized by this amendatory Act of the
11 95th General Assembly. Moneys received by the Authority on
12 account of transfers to the Regional Transportation Authority
13 Occupation and Use Tax Replacement Fund from the State and
14 Local Sales Tax Reform Fund shall be allocated among the
15 Authority and the Service Boards as follows: 15% of such moneys
16 shall be retained by the Authority and the remaining 85% shall
17 be transferred to the Service Boards as soon as may be
18 practicable after the Authority receives payment. Moneys which
19 are distributable to the Service Boards pursuant to the
20 preceding sentence shall be allocated among the Service Boards
21 on the basis of each Service Board's distribution ratio. The
22 term "distribution ratio" means, for purposes of this
23 subsection (e) of this Section 4.01, the ratio of the total
24 amount distributed to a Service Board pursuant to subsection
25 (d) of Section 4.01 for the immediately preceding calendar year
26 to the total amount distributed to all of the Service Boards

 

 

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1 pursuant to subsection (d) of Section 4.01 for the immediately
2 preceding calendar year.
3     (f) To carry out its duties and responsibilities under this
4 Act, further and accomplish the preparation of the annual
5 budget and program as well as the Five-Year Program provided
6 for in Section 2.01 of this Act and to make such interim
7 management decisions as may be necessary, the Board shall
8 employ staff which shall: (1) propose for adoption by the Board
9 of the Authority rules for the Service Boards that establish
10 (i) forms and schedules to be used and information required to
11 be provided with respect to a five-year capital program, annual
12 budgets, and two-year financial plans and regular reporting of
13 actual results against adopted budgets and financial plans,
14 (ii) financial practices to be followed in the budgeting and
15 expenditure of public funds, (iii) assumptions and projections
16 that must be followed in preparing and submitting its annual
17 budget and two-year financial plan or a five-year capital
18 program; (2) evaluate for the Board public transportation
19 programs operated or proposed by the Service Boards and
20 transportation agencies in terms of the goals and objectives
21 set out in the Strategic Plan , costs and relative priorities;
22 (3) (2) keep the Board and the public informed of the extent to
23 which the Service Boards and transportation agencies are
24 meeting the goals and objectives adopted by the Authority in
25 the Strategic Plan public transportation programs and
26 accomplishments of such transportation agencies; and (4)

 

 

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1 assess the efficiency or adequacy of public transportation
2 services provided by a Service Board and make recommendations
3 for change in that service (3) coordinate the development and
4 implementation of public transportation programs to the end
5 that the moneys monies available to the Authority may be
6 expended in the most economical manner possible with the least
7 possible duplication.
8     (g) All Under such regulations as the Board may prescribe,
9 all Service Boards, transportation agencies, comprehensive
10 planning agencies, including the Chicago Metropolitan Agency
11 for Planning, or transportation planning agencies in the
12 metropolitan region shall furnish to the Authority Board such
13 information pertaining to public transportation or relevant
14 for plans therefor as it may from time to time require. The
15 Executive Director, or his or her designee, upon payment to any
16 such agency or Service Board of the reasonable additional cost
17 of its so providing such information except as may otherwise be
18 provided by agreement with the Authority, and the Board or any
19 duly authorized employee of the Board shall, for the purpose of
20 securing any such information necessary or appropriate to carry
21 out any of the powers and responsibilities of the Authority
22 under this Act, have access to, and the right to examine, all
23 books, documents, papers or records of a Service Board or any
24 transportation such agency receiving funds from the Authority
25 or Service Board, and such Service Board or transportation
26 agency shall comply with any request by the Executive Director,

 

 

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1 or his or her designee, within 30 days or an extended time
2 provided by the Executive Director pertaining to public
3 transportation or relevant for plans therefor.
4     (h) No Service Board shall undertake any capital
5 improvement which is not identified in the Five-Year Capital
6 Program.
7 (Source: P.A. 94-370, eff. 7-29-05.)
 
8     (70 ILCS 3615/4.02)  (from Ch. 111 2/3, par. 704.02)
9     Sec. 4.02. Federal, State and Other Funds.
10     (a) The Authority shall have the power to apply for,
11 receive and expend grants, loans or other funds from the State
12 of Illinois or any department or agency thereof, from any unit
13 of local government, from the federal government or any
14 department or agency thereof, for use in connection with any of
15 the powers or purposes of the Authority as set forth in this
16 Act. The Authority shall have power to make such studies as may
17 be necessary and to enter into contracts or agreements with the
18 State of Illinois or any department or agency thereof, with any
19 unit of local government, or with the federal government or any
20 department or agency thereof, concerning such grants, loans or
21 other funds, or any conditions relating thereto, including
22 obligations to repay such funds. The Authority may make such
23 covenants concerning such grants, loans and funds as it deems
24 proper and necessary in carrying out its responsibilities,
25 purposes and powers as provided in this Act.

 

 

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1     (b) The Authority shall be the primary public body in the
2 metropolitan region with authority to apply for and receive any
3 grants, loans or other funds relating to public transportation
4 programs from the State of Illinois or any department or agency
5 thereof, or from the federal government or any department or
6 agency thereof. Any unit of local government, Service Board or
7 transportation agency may apply for and receive any such
8 federal or state capital grants, loans or other funds,
9 provided, however that a Service Board may not apply for or
10 receive any grant or loan which is not identified in the
11 Five-Year Capital Program. Any Service Board, unit of local
12 government or transportation agency shall notify the Authority
13 prior to making any such application and shall file a copy
14 thereof with the Authority. Nothing in this Section shall be
15 construed to impose any limitation on the ability of the State
16 of Illinois or any department or agency thereof, any unit of
17 local government or Service Board or transportation agency to
18 make any grants or to enter into any agreement or contract with
19 the National Rail Passenger Corporation. Nor shall anything in
20 this Section impose any limitation on the ability of any school
21 district to apply for or receive any grant, loan or other funds
22 for transportation of school children.
23     (c) The Authority shall provide to the Service Board any
24 monies received relating to public transportation services
25 under the jurisdiction of the Service Boards as provided in
26 Section 4.03.3 of this Act. follows:

 

 

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1         (1) As soon as may be practicable after the Authority
2     receives payment, under Section 4.03(m) or Section
3     4.03.1(d), of the proceeds of those taxes levied by the
4     Authority, the Authority shall transfer to each Service
5     Board the amount to which it is entitled under Section
6     4.01(d).
7         (2) The Authority by ordinance adopted by 9 of its then
8     Directors shall establish a formula apportioning any
9     federal funds for operating assistance purposes the
10     Authority receives to each Service Board. In establishing
11     the formula, the Board shall consider, among other factors:
12     ridership levels, the efficiency with which the service is
13     provided, the degree of transit dependence of the area
14     served and the cost of service. That portion of any federal
15     funds for operating assistance received by the Authority
16     shall be paid to each Service Board as soon as may be
17     practicable upon their receipt provided the Authority has
18     adopted a balanced budget as required by Section 4.01 and
19     further provided that the Service Boards are in compliance
20     with the requirements in Section 4.11.
21         (3) The Authority by ordinance adopted by 9 of its then
22     Directors shall apportion to the Service Boards funds
23     provided by the State of Illinois under Section 4.09 and
24     shall make payment of said funds to each Service Board as
25     soon as may be practicable upon their receipt provided the
26     Authority has adopted a balanced budget as required by

 

 

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1     Section 4.01 and further provided the Service Board is in
2     compliance with the requirements in Section 4.11.
3         (4) Beginning January 1, 2009, before making any
4     payments, transfers, or expenditures under this subsection
5     to a Service Board, the Authority must first comply with
6     Section 4.02a or 4.02b of this Act, whichever may be
7     applicable.
8 (Source: P.A. 94-839, eff. 6-6-06; 95-331, eff. 8-21-07.)
 
9     (70 ILCS 3615/4.02a)
10     Sec. 4.02a. Chicago Transit Authority contributions to
11 pension funds.
12     (a) The Authority shall continually review the Chicago
13 Transit Authority's payment of the required contributions to
14 its retirement system under Section 22-101 of the Illinois
15 Pension Code.
16     (b) Beginning January 1, 2009, if at any time the Authority
17 determines that the Chicago Transit Authority's payment of any
18 portion of the required contributions to its retirement system
19 under Section 22-101 of the Illinois Pension Code is more than
20 one month overdue, it shall as soon as possible pay the amount
21 of those overdue contributions to the Board of Trustees trustee
22 of the Retirement Plan retirement system on behalf of the
23 Chicago Transit Authority out of moneys otherwise payable to
24 the Chicago Transit Authority under subsection (c) of Section
25 4.03.3 4.02 of this Act. The Authority shall thereafter have no

 

 

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1 liability to the Chicago Transit Authority for amounts paid to
2 the Board of Trustees trustee of the Retirement Plan retirement
3 system under this Section.
4     (c) Whenever the Authority acts or determines that it is
5 required to act under subsection (b), it shall so notify the
6 Chicago Transit Authority, the Mayor of Chicago, the Governor,
7 the Auditor General of the State of Illinois, and the General
8 Assembly.
9 (Source: P.A. 94-839, eff. 6-6-06.)
 
10     (70 ILCS 3615/4.02b)
11     Sec. 4.02b. Other contributions to pension funds.
12     (a) The Authority shall continually review the payment of
13 the required employer contributions to affected pension plans
14 under Section 22-103 of the Illinois Pension Code.
15     (b) Beginning January 1, 2009, if at any time the Authority
16 determines that the Commuter Rail Board's or Suburban Bus
17 Board's payment of any portion of the required contributions to
18 an affected pension plan under Section 22-103 of the Illinois
19 Pension Code is more than one month overdue, it shall as soon
20 as possible pay the amount of those overdue contributions to
21 the trustee of the affected pension plan on behalf of that
22 Service Board out of moneys otherwise payable to that Service
23 Board under Section 4.03.3 subsection (c) of Section 4.02 of
24 this Act. The Authority shall thereafter have no liability to
25 the Service Board for amounts paid to the trustee of the

 

 

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1 affected pension plan under this Section.
2     (c) Whenever the Authority acts or determines that it is
3 required to act under subsection (b), it shall so notify the
4 affected Service Board, the Mayor of Chicago, the Governor, the
5 Auditor General of the State of Illinois, and the General
6 Assembly.
7     (d) Beginning January 1, 2009, if the Authority fails to
8 pay to an affected pension fund within 30 days after it is due
9 any employer contribution that it is required to make as a
10 contributing employer under Section 22-103 of the Illinois
11 Pension Code, it shall promptly so notify the Commission on
12 Government Forecasting and Accountability, the Mayor of
13 Chicago, the Governor, and the General Assembly, and it shall
14 promptly pay the overdue amount out of the first money
15 available to the Authority for its administrative expenses, as
16 that term is defined in Section 4.01(c).
17 (Source: P.A. 94-839, eff. 6-6-06.)
 
18     (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
19     Sec. 4.03. Taxes.
20     (a) In order to carry out any of the powers or purposes of
21 the Authority, the Board may by ordinance adopted with the
22 concurrence of 12 9 of the then Directors, impose throughout
23 the metropolitan region any or all of the taxes provided in
24 this Section. Except as otherwise provided in this Act, taxes
25 imposed under this Section and civil penalties imposed incident

 

 

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1 thereto shall be collected and enforced by the State Department
2 of Revenue. The Department shall have the power to administer
3 and enforce the taxes and to determine all rights for refunds
4 for erroneous payments of the taxes. Nothing in this amendatory
5 Act of the 95th General Assembly is intended to invalidate any
6 taxes currently imposed by the Authority. The increased vote
7 requirements to impose a tax shall only apply to actions taken
8 after the effective date of this amendatory Act of the 95th
9 General Assembly.
10     (b) The Board may impose a public transportation tax upon
11 all persons engaged in the metropolitan region in the business
12 of selling at retail motor fuel for operation of motor vehicles
13 upon public highways. The tax shall be at a rate not to exceed
14 5% of the gross receipts from the sales of motor fuel in the
15 course of the business. As used in this Act, the term "motor
16 fuel" shall have the same meaning as in the Motor Fuel Tax Law.
17 The Board may provide for details of the tax. The provisions of
18 any tax shall conform, as closely as may be practicable, to the
19 provisions of the Municipal Retailers Occupation Tax Act,
20 including without limitation, conformity to penalties with
21 respect to the tax imposed and as to the powers of the State
22 Department of Revenue to promulgate and enforce rules and
23 regulations relating to the administration and enforcement of
24 the provisions of the tax imposed, except that reference in the
25 Act to any municipality shall refer to the Authority and the
26 tax shall be imposed only with regard to receipts from sales of

 

 

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1 motor fuel in the metropolitan region, at rates as limited by
2 this Section.
3     (c) In connection with the tax imposed under paragraph (b)
4 of this Section the Board may impose a tax upon the privilege
5 of using in the metropolitan region motor fuel for the
6 operation of a motor vehicle upon public highways, the tax to
7 be at a rate not in excess of the rate of tax imposed under
8 paragraph (b) of this Section. The Board may provide for
9 details of the tax.
10     (d) The Board may impose a motor vehicle parking tax upon
11 the privilege of parking motor vehicles at off-street parking
12 facilities in the metropolitan region at which a fee is
13 charged, and may provide for reasonable classifications in and
14 exemptions to the tax, for administration and enforcement
15 thereof and for civil penalties and refunds thereunder and may
16 provide criminal penalties thereunder, the maximum penalties
17 not to exceed the maximum criminal penalties provided in the
18 Retailers' Occupation Tax Act. The Authority may collect and
19 enforce the tax itself or by contract with any unit of local
20 government. The State Department of Revenue shall have no
21 responsibility for the collection and enforcement unless the
22 Department agrees with the Authority to undertake the
23 collection and enforcement. As used in this paragraph, the term
24 "parking facility" means a parking area or structure having
25 parking spaces for more than 2 vehicles at which motor vehicles
26 are permitted to park in return for an hourly, daily, or other

 

 

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1 periodic fee, whether publicly or privately owned, but does not
2 include parking spaces on a public street, the use of which is
3 regulated by parking meters.
4     (e) The Board may impose a Regional Transportation
5 Authority Retailers' Occupation Tax upon all persons engaged in
6 the business of selling tangible personal property at retail in
7 the metropolitan region. In Cook County the tax rate shall be
8 1.25% 1% of the gross receipts from sales of food for human
9 consumption that is to be consumed off the premises where it is
10 sold (other than alcoholic beverages, soft drinks and food that
11 has been prepared for immediate consumption) and prescription
12 and nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used by
14 diabetics, and 1% 3/4% of the gross receipts from other taxable
15 sales made in the course of that business. In DuPage, Kane,
16 Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
17 1/4% of the gross receipts from all taxable sales made in the
18 course of that business. The tax imposed under this Section and
19 all civil penalties that may be assessed as an incident thereof
20 shall be collected and enforced by the State Department of
21 Revenue. The Department shall have full power to administer and
22 enforce this Section; to collect all taxes and penalties so
23 collected in the manner hereinafter provided; and to determine
24 all rights to credit memoranda arising on account of the
25 erroneous payment of tax or penalty hereunder. In the
26 administration of, and compliance with this Section, the

 

 

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1 Department and persons who are subject to this Section shall
2 have the same rights, remedies, privileges, immunities, powers
3 and duties, and be subject to the same conditions,
4 restrictions, limitations, penalties, exclusions, exemptions
5 and definitions of terms, and employ the same modes of
6 procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
7 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
8 therein other than the State rate of tax), 2c, 3 (except as to
9 the disposition of taxes and penalties collected), 4, 5, 5a,
10 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
11 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
12 Section 3-7 of the Uniform Penalty and Interest Act, as fully
13 as if those provisions were set forth herein.
14     Persons subject to any tax imposed under the authority
15 granted in this Section may reimburse themselves for their
16 seller's tax liability hereunder by separately stating the tax
17 as an additional charge, which charge may be stated in
18 combination in a single amount with State taxes that sellers
19 are required to collect under the Use Tax Act, under any
20 bracket schedules the Department may prescribe.
21     Whenever the Department determines that a refund should be
22 made under this Section to a claimant instead of issuing a
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the warrant 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     If a tax is imposed under this subsection (e), a tax shall
4 also be imposed under subsections (f) and (g) of this Section.
5     For the purpose of determining whether a tax authorized
6 under this Section is applicable, a retail sale by a producer
7 of coal or other mineral mined in Illinois, is a sale at retail
8 at the place where the coal or other mineral mined in Illinois
9 is extracted from the earth. This paragraph does not apply to
10 coal or other mineral when it is delivered or shipped by the
11 seller to the purchaser at a point outside Illinois so that the
12 sale is exempt under the Federal Constitution as a sale in
13 interstate or foreign commerce.
14     No tax shall be imposed or collected under this subsection
15 on the sale of a motor vehicle in this State to a resident of
16 another state if that motor vehicle will not be titled in this
17 State.
18     Nothing in this Section shall be construed to authorize the
19 Regional Transportation Authority to impose a tax upon the
20 privilege of engaging in any business that under the
21 Constitution of the United States may not be made the subject
22 of taxation by this State.
23     (f) If a tax has been imposed under paragraph (e), a
24 Regional Transportation Authority Service Occupation Tax shall
25 also be imposed upon all persons engaged, in the metropolitan
26 region in the business of making sales of service, who as an

 

 

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1 incident to making the sales of service, transfer tangible
2 personal property within the metropolitan region, either in the
3 form of tangible personal property or in the form of real
4 estate as an incident to a sale of service. In Cook County, the
5 tax rate shall be: (1) 1.25% 1% of the serviceman's cost price
6 of food prepared for immediate consumption and transferred
7 incident to a sale of service subject to the service occupation
8 tax by an entity licensed under the Hospital Licensing Act or
9 the Nursing Home Care Act that is located in the metropolitan
10 region; (2) 1.25% 1% of the selling price of food for human
11 consumption that is to be consumed off the premises where it is
12 sold (other than alcoholic beverages, soft drinks and food that
13 has been prepared for immediate consumption) and prescription
14 and nonprescription medicines, drugs, medical appliances and
15 insulin, urine testing materials, syringes and needles used by
16 diabetics; and (3) 1% 3/4% of the selling price from other
17 taxable sales of tangible personal property transferred. In
18 DuPage, Kane, Lake, McHenry and Will Counties the rate shall be
19 0.75% 1/4% of the selling price of all tangible personal
20 property transferred.
21     The tax imposed under this paragraph and all civil
22 penalties that may be assessed as an incident thereof shall be
23 collected and enforced by the State Department of Revenue. The
24 Department shall have full power to administer and enforce this
25 paragraph; to collect all taxes and penalties due hereunder; to
26 dispose of taxes and penalties collected in the manner

 

 

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1 hereinafter provided; and to determine all rights to credit
2 memoranda arising on account of the erroneous payment of tax or
3 penalty hereunder. In the administration of and compliance with
4 this paragraph, the Department and persons who are subject to
5 this paragraph shall have the same rights, remedies,
6 privileges, immunities, powers and duties, and be subject to
7 the same conditions, restrictions, limitations, penalties,
8 exclusions, exemptions and definitions of terms, and employ the
9 same modes of procedure, as are prescribed in Sections 1a-1, 2,
10 2a, 3 through 3-50 (in respect to all provisions therein other
11 than the State rate of tax), 4 (except that the reference to
12 the State shall be to the Authority), 5, 7, 8 (except that the
13 jurisdiction to which the tax shall be a debt to the extent
14 indicated in that Section 8 shall be the Authority), 9 (except
15 as to the disposition of taxes and penalties collected, and
16 except that the returned merchandise credit for this tax may
17 not be taken against any State tax), 10, 11, 12 (except the
18 reference therein to Section 2b of the Retailers' Occupation
19 Tax Act), 13 (except that any reference to the State shall mean
20 the Authority), the first paragraph of Section 15, 16, 17, 18,
21 19 and 20 of the Service Occupation Tax Act and Section 3-7 of
22 the Uniform Penalty and Interest Act, as fully as if those
23 provisions were set forth herein.
24     Persons subject to any tax imposed under the authority
25 granted in this paragraph may reimburse themselves for their
26 serviceman's tax liability hereunder by separately stating the

 

 

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1 tax as an additional charge, that charge may be stated in
2 combination in a single amount with State tax that servicemen
3 are authorized to collect under the Service Use Tax Act, under
4 any bracket schedules the Department may prescribe.
5     Whenever the Department determines that a refund should be
6 made under this paragraph 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     Nothing in this paragraph shall be construed to authorize
14 the Authority to impose a tax upon the privilege of engaging in
15 any business that under the Constitution of the United States
16 may not be made the subject of taxation by the State.
17     (g) If a tax has been imposed under paragraph (e), a tax
18 shall also be imposed upon the privilege of using in the
19 metropolitan region, any item of tangible personal property
20 that is purchased outside the metropolitan region at retail
21 from a retailer, and that is titled or registered with an
22 agency of this State's government. In Cook County the tax rate
23 shall be 1% 3/4% of the selling price of the tangible personal
24 property, as "selling price" is defined in the Use Tax Act. In
25 DuPage, Kane, Lake, McHenry and Will counties the tax rate
26 shall be 0.75% 1/4% of the selling price of the tangible

 

 

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1 personal property, as "selling price" is defined in the Use Tax
2 Act. The tax shall be collected from persons whose Illinois
3 address for titling or registration purposes is given as being
4 in the metropolitan region. The tax shall be collected by the
5 Department of Revenue for the Regional Transportation
6 Authority. The tax must be paid to the State, or an exemption
7 determination must be obtained from the Department of Revenue,
8 before the title or certificate of registration for the
9 property may be issued. The tax or proof of exemption may be
10 transmitted to the Department by way of the State agency with
11 which, or the State officer with whom, the tangible personal
12 property must be titled or registered if the Department and the
13 State agency or State officer determine that this procedure
14 will expedite the processing of applications for title or
15 registration.
16     The Department shall have full power to administer and
17 enforce this paragraph; to collect all taxes, penalties and
18 interest due hereunder; to dispose of taxes, penalties and
19 interest collected in the manner hereinafter provided; and to
20 determine all rights to credit memoranda or refunds arising on
21 account of the erroneous payment of tax, penalty or interest
22 hereunder. In the administration of and compliance with this
23 paragraph, the Department and persons who are subject to this
24 paragraph shall have the same rights, remedies, privileges,
25 immunities, powers and duties, and be subject to the same
26 conditions, restrictions, limitations, penalties, exclusions,

 

 

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1 exemptions and definitions of terms and employ the same modes
2 of procedure, as are prescribed in Sections 2 (except the
3 definition of "retailer maintaining a place of business in this
4 State"), 3 through 3-80 (except provisions pertaining to the
5 State rate of tax, and except provisions concerning collection
6 or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
7 19 (except the portions pertaining to claims by retailers and
8 except the last paragraph concerning refunds), 20, 21 and 22 of
9 the Use Tax Act, and are not inconsistent with this paragraph,
10 as fully as if those provisions were set forth herein.
11     Whenever the Department determines that a refund should be
12 made under this paragraph to a claimant instead of issuing a
13 credit memorandum, the Department shall notify the State
14 Comptroller, who shall cause the order to be drawn for the
15 amount specified, and to the person named in the notification
16 from the Department. The refund shall be paid by the State
17 Treasurer out of the Regional Transportation Authority tax fund
18 established under paragraph (n) of this Section.
19     (h) The Authority may impose a replacement vehicle tax of
20 $50 on any passenger car as defined in Section 1-157 of the
21 Illinois Vehicle Code purchased within the metropolitan region
22 by or on behalf of an insurance company to replace a passenger
23 car of an insured person in settlement of a total loss claim.
24 The tax imposed may not become effective before the first day
25 of the month following the passage of the ordinance imposing
26 the tax and receipt of a certified copy of the ordinance by the

 

 

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1 Department of Revenue. The Department of Revenue shall collect
2 the tax for the Authority in accordance with Sections 3-2002
3 and 3-2003 of the Illinois Vehicle Code.
4     The Department shall immediately pay over to the State
5 Treasurer, ex officio, as trustee, all taxes collected
6 hereunder. On or before the 25th day of each calendar month,
7 the Department shall prepare and certify to the Comptroller the
8 disbursement of stated sums of money to the Authority. The
9 amount to be paid to the Authority shall be the amount
10 collected hereunder during the second preceding calendar month
11 by the Department, less any amount determined by the Department
12 to be necessary for the payment of refunds. Within 10 days
13 after receipt by the Comptroller of the disbursement
14 certification to the Authority provided for in this Section to
15 be given to the Comptroller by the Department, the Comptroller
16 shall cause the orders to be drawn for that amount in
17 accordance with the directions contained in the certification.
18     (i) The Board may not impose any other taxes except as it
19 may from time to time be authorized by law to impose.
20     (j) A certificate of registration issued by the State
21 Department of Revenue to a retailer under the Retailers'
22 Occupation Tax Act or under the Service Occupation Tax Act
23 shall permit the registrant to engage in a business that is
24 taxed under the tax imposed under paragraphs (b), (e), (f) or
25 (g) of this Section and no additional registration shall be
26 required under the tax. A certificate issued under the Use Tax

 

 

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1 Act or the Service Use Tax Act shall be applicable with regard
2 to any tax imposed under paragraph (c) of this Section.
3     (k) The provisions of any tax imposed under paragraph (c)
4 of this Section shall conform as closely as may be practicable
5 to the provisions of the Use Tax Act, including without
6 limitation conformity as to penalties with respect to the tax
7 imposed and as to the powers of the State Department of Revenue
8 to promulgate and enforce rules and regulations relating to the
9 administration and enforcement of the provisions of the tax
10 imposed. The taxes shall be imposed only on use within the
11 metropolitan region and at rates as provided in the paragraph.
12     (l) The Board in imposing any tax as provided in paragraphs
13 (b) and (c) of this Section, shall, after seeking the advice of
14 the State Department of Revenue, provide means for retailers,
15 users or purchasers of motor fuel for purposes other than those
16 with regard to which the taxes may be imposed as provided in
17 those paragraphs to receive refunds of taxes improperly paid,
18 which provisions may be at variance with the refund provisions
19 as applicable under the Municipal Retailers Occupation Tax Act.
20 The State Department of Revenue may provide for certificates of
21 registration for users or purchasers of motor fuel for purposes
22 other than those with regard to which taxes may be imposed as
23 provided in paragraphs (b) and (c) of this Section to
24 facilitate the reporting and nontaxability of the exempt sales
25 or uses.
26     (m) Any ordinance imposing or discontinuing any tax under

 

 

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1 this Section shall be adopted and a certified copy thereof
2 filed with the Department on or before June 1, whereupon the
3 Department of Revenue shall proceed to administer and enforce
4 this Section on behalf of the Regional Transportation Authority
5 as of September 1 next following such adoption and filing.
6 Beginning January 1, 1992, an ordinance or resolution imposing
7 or discontinuing the tax hereunder shall be adopted and a
8 certified copy thereof filed with the Department on or before
9 the first day of July, whereupon the Department shall proceed
10 to administer and enforce this Section as of the first day of
11 October next following such adoption and filing. Beginning
12 January 1, 1993, an ordinance or resolution imposing,
13 increasing, decreasing, or discontinuing the tax hereunder
14 shall be adopted and a certified copy thereof filed with the
15 Department on or before the first day of October, whereupon the
16 Department shall proceed to administer and enforce this Section
17 as of the first day of the first month to occur not less than 60
18 days January next following such adoption and filing. Any
19 ordinance or resolution of the Authority imposing a tax under
20 this Section and in effect on August 1, 2007 shall remain in
21 full force and effect and shall be administered by the
22 Department of Revenue under the terms and conditions and rates
23 of tax established by such ordinance or resolution until the
24 Department begins administering and enforcing an increased tax
25 under this Section as authorized by this amendatory Act of the
26 95th General Assembly. The tax rates authorized by this

 

 

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1 amendatory Act of the 95th General Assembly are effective only
2 if imposed by ordinance of the Authority.
3     (n) The State Department of Revenue shall, upon collecting
4 any taxes as provided in this Section, pay the taxes over to
5 the State Treasurer as trustee for the Authority. The taxes
6 shall be held in a trust fund outside the State Treasury. On or
7 before the 25th day of each calendar month, the State
8 Department of Revenue shall prepare and certify to the
9 Comptroller of the State of Illinois and the amount to be paid
10 to the Authority, which shall be the then balance in the fund,
11 less any amount determined by the Department to be necessary
12 for the payment of refunds. The State Department of Revenue
13 shall also certify to the Authority (i) the amount of taxes
14 collected in each County other than Cook County in the
15 metropolitan region, (ii) less the amount necessary for the
16 payment of refunds to taxpayers in the County. With regard to
17 the County of Cook, the certification shall specify the amount
18 of taxes collected within the City of Chicago, less the amount
19 necessary for the payment of refunds to taxpayers in the City
20 of Chicago and (iii) the amount collected in that portion of
21 Cook County outside of Chicago, each amount less the amount
22 necessary for the payment of refunds to taxpayers located in
23 those areas described in items (i), (ii), and (iii) in that
24 portion of Cook County outside of Chicago. Within 10 days after
25 receipt by the Comptroller of the certification of the amounts
26 amount to be paid to the Authority, the Comptroller shall cause

 

 

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1 an order to be drawn for the payment of two-thirds of the
2 amounts certified in item (i) of this subsection to the
3 Authority and one-third of the amounts certified in item (i) of
4 this subsection to the respective counties other than Cook
5 County and the amount certified in items (ii) and (iii) of this
6 subsection to the Authority for the amount in accordance with
7 the direction in the certification.
8     In addition to the disbursement required by the preceding
9 paragraph, an allocation shall be made in July 1991 and each
10 year thereafter to the Regional Transportation Authority. The
11 allocation shall be made in an amount equal to the average
12 monthly distribution during the preceding calendar year
13 (excluding the 2 months of lowest receipts) and the allocation
14 shall include the amount of average monthly distribution from
15 the Regional Transportation Authority Occupation and Use Tax
16 Replacement Fund. The distribution made in July 1992 and each
17 year thereafter under this paragraph and the preceding
18 paragraph shall be reduced by the amount allocated and
19 disbursed under this paragraph in the preceding calendar year.
20 The Department of Revenue shall prepare and certify to the
21 Comptroller for disbursement the allocations made in
22 accordance with this paragraph.
23     (o) Failure to adopt a budget ordinance or otherwise to
24 comply with Section 4.01 of this Act or to adopt a Five-year
25 Capital Program or otherwise to comply with paragraph (b) of
26 Section 2.01 of this Act shall not affect the validity of any

 

 

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1 tax imposed by the Authority otherwise in conformity with law.
2     (p) At no time shall a public transportation tax or motor
3 vehicle parking tax authorized under paragraphs (b), (c) and
4 (d) of this Section be in effect at the same time as any
5 retailers' occupation, use or service occupation tax
6 authorized under paragraphs (e), (f) and (g) of this Section is
7 in effect.
8     Any taxes imposed under the authority provided in
9 paragraphs (b), (c) and (d) shall remain in effect only until
10 the time as any tax authorized by paragraphs (e), (f) or (g) of
11 this Section are imposed and becomes effective. Once any tax
12 authorized by paragraphs (e), (f) or (g) is imposed the Board
13 may not reimpose taxes as authorized in paragraphs (b), (c) and
14 (d) of the Section unless any tax authorized by paragraphs (e),
15 (f) or (g) of this Section becomes ineffective by means other
16 than an ordinance of the Board.
17     (q) Any existing rights, remedies and obligations
18 (including enforcement by the Regional Transportation
19 Authority) arising under any tax imposed under paragraphs (b),
20 (c) or (d) of this Section shall not be affected by the
21 imposition of a tax under paragraphs (e), (f) or (g) of this
22 Section.
23 (Source: P.A. 92-221, eff. 8-2-01; 92-651, eff. 7-11-02;
24 93-1068, eff. 1-15-05.)
 
25     (70 ILCS 3615/4.03.3 new)

 

 

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1     Sec. 4.03.3. Distribution of Revenues. This Section
2 applies only after the Department begins administering and
3 enforcing an increased tax under Section 4.03(m) as authorized
4 by this amendatory Act of the 95th General Assembly. After
5 providing for payment of its obligations with respect to bonds
6 and notes issued under the provisions of Section 4.04 and
7 obligations related to those bonds and notes, the Authority
8 shall disburse the remaining proceeds from taxes it has
9 received from the Department of Revenue under this Article IV
10 and the remaining proceeds it has received from the State under
11 Section 4.09(a) as follows:
12     (a) With respect to taxes imposed by the Authority under
13 Section 4.03, after withholding 15% of 80% of the receipts from
14 those taxes collected in Cook County at a rate of 1.25%, 15% of
15 75% of the receipts from those taxes collected in Cook County
16 at the rate of 1%, 15% of one-half of the receipts from those
17 taxes collected in DuPage, Kane, Lake, McHenry, and Will
18 Counties, and 15% of money received by the Authority from the
19 Regional Transportation Authority Occupation and Use Tax
20 Replacement Fund or from the Regional Transportation Authority
21 tax fund created in Section 4.03(n), the Board shall allocate
22 the proceeds and money remaining to the Service Boards as
23 follows:
24         (1) an amount equal to (i) 85% of 80% of the receipts
25     from those taxes collected within the City of Chicago at a
26     rate of 1.25%, (ii) 85% of 75% of the receipts from those

 

 

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1     taxes collected in the City of Chicago at the rate of 1%,
2     and (iii) 85% of the money received by the Authority on
3     account of transfers to the Regional Transportation
4     Authority Occupation and Use Tax Replacement Fund or to the
5     Regional Transportation Authority tax fund created in
6     Section 4.03(n) from the County and Mass Transit District
7     Fund attributable to retail sales within the City of
8     Chicago shall be allocated to the Chicago Transit
9     Authority;
10         (2) an amount equal to (i) 85% of 80% of the receipts
11     from those taxes collected within Cook County outside of
12     the City of Chicago at a rate of 1.25%, (ii) 85% of 75% of
13     the receipts from those taxes collected within Cook County
14     outside the City of Chicago at a rate of 1%, and (iii) 85%
15     of the money received by the Authority on account of
16     transfers to the Regional Transportation Authority
17     Occupation and Use Tax Replacement Fund or to the Regional
18     Transportation Authority tax fund created in Section
19     4.03(n) from the County and Mass Transit District Fund
20     attributable to retail sales within Cook County outside of
21     the City of Chicago shall be allocated 30% to the Chicago
22     Transit Authority, 55% to the Commuter Rail Board, and 15%
23     to the Suburban Bus Board; and
24         (3) an amount equal to 85% of one-half of the receipts
25     from the taxes collected within the Counties of DuPage,
26     Kane, Lake, McHenry, and Will shall be allocated 70% to the

 

 

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1     Commuter Rail Board and 30% to the Suburban Bus Board.
2     (b) Moneys received by the Authority on account of
3 transfers to the Regional Transportation Authority Occupation
4 and Use Tax Replacement Fund from the State and Local Sales Tax
5 Reform Fund shall be allocated among the Authority and the
6 Service Boards as follows: 15% of such moneys shall be retained
7 by the Authority and the remaining 85% shall be transferred to
8 the Service Boards as soon as may be practicable after the
9 Authority receives payment. Moneys which are distributable to
10 the Service Boards pursuant to the preceding sentence shall be
11 allocated among the Service Boards on the basis of each Service
12 Board's distribution ratio. The term "distribution ratio"
13 means, for purposes of this subsection (b), the ratio of the
14 total amount distributed to a Service Board pursuant to
15 subsection (a) of Section 4.03.3 for the immediately preceding
16 calendar year to the total amount distributed to all of the
17 Service Boards pursuant to subsection (a) of Section 4.03.3 for
18 the immediately preceding calendar year.
19     (c)(i) 20% of the receipts from those taxes collected in
20 Cook County under Section 4.03 at the rate of 1.25%, (ii) 25%
21 of the receipts from those taxes collected in Cook County under
22 Section 4.03 at the rate of 1%, (iii) 50% of the receipts from
23 those taxes collected in DuPage, Kane, Lake, McHenry, and Will
24 Counties under Section 4.03, and (iv) amounts received from the
25 State under Section 4.09 (a)(2) and items (i), (ii), and (iii)
26 of Section 4.09 (a)(3) shall be allocated as follows: in 2008,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 shall fix by the ordinance authorizing such bond or note and
2 shall mature at such time or times, within a period not to
3 exceed forty years from the date of issue, and may be
4 redeemable prior to maturity with or without premium, at the
5 option of the Authority, upon such terms and conditions as the
6 Authority shall fix by the ordinance authorizing the issuance
7 of such bonds or notes. No bond anticipation note or any
8 renewal thereof shall mature at any time or times exceeding 5
9 years from the date of the first issuance of such note. The
10 Authority may provide for the registration of bonds or notes in
11 the name of the owner as to the principal alone or as to both
12 principal and interest, upon such terms and conditions as the
13 Authority may determine. The ordinance authorizing bonds or
14 notes may provide for the exchange of such bonds or notes which
15 are fully registered, as to both principal and interest, with
16 bonds or notes which are registerable as to principal only. All
17 bonds or notes issued under this Section by the Authority other
18 than those issued in exchange for property or for bonds or
19 notes of the Authority shall be sold at a price which may be at
20 a premium or discount but such that the interest cost
21 (excluding any redemption premium) to the Authority of the
22 proceeds of an issue of such bonds or notes, computed to stated
23 maturity according to standard tables of bond values, shall not
24 exceed that permitted in the Bond Authorization Act. The
25 Authority shall notify the Governor's Office of Management and
26 Budget and the State Comptroller at least 30 days before any

 

 

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1 bond sale and shall file with the Governor's Office of
2 Management and Budget and the State Comptroller a certified
3 copy of any ordinance authorizing the issuance of bonds at or
4 before the issuance of the bonds. After December 31, 1994, any
5 such bonds or notes shall be sold to the highest and best
6 bidder on sealed bids as the Authority shall deem. As such
7 bonds or notes are to be sold the Authority shall advertise for
8 proposals to purchase the bonds or notes which advertisement
9 shall be published at least once in a daily newspaper of
10 general circulation published in the metropolitan region at
11 least 10 days before the time set for the submission of bids.
12 The Authority shall have the right to reject any or all bids.
13 Notwithstanding any other provisions of this Section, Working
14 Cash Notes or bonds or notes to provide funds for
15 self-insurance or a joint self-insurance pool or entity may be
16 sold either upon competitive bidding or by negotiated sale
17 (without any requirement of publication of intention to
18 negotiate the sale of such Notes), as the Board shall determine
19 by ordinance adopted with the affirmative votes of at least 9 7
20 Directors. In case any officer whose signature appears on any
21 bonds, notes or coupons authorized pursuant to this Section
22 shall cease to be such officer before delivery of such bonds or
23 notes, such signature shall nevertheless be valid and
24 sufficient for all purposes, the same as if such officer had
25 remained in office until such delivery. Neither the Directors
26 of the Authority nor any person executing any bonds or notes

 

 

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1 thereof shall be liable personally on any such bonds or notes
2 or coupons by reason of the issuance thereof.
3     (c) All bonds or notes of the Authority issued pursuant to
4 this Section shall be general obligations of the Authority to
5 which shall be pledged the full faith and credit of the
6 Authority, as provided in this Section. Such bonds or notes
7 shall be secured as provided in the authorizing ordinance,
8 which may, notwithstanding any other provision of this Act,
9 include in addition to any other security, a specific pledge or
10 assignment of and lien on or security interest in any or all
11 tax receipts of the Authority and on any or all other revenues
12 or moneys of the Authority from whatever source, which may by
13 law be utilized for debt service purposes and a specific pledge
14 or assignment of and lien on or security interest in any funds
15 or accounts established or provided for by the ordinance of the
16 Authority authorizing the issuance of such bonds or notes. Any
17 such pledge, assignment, lien or security interest for the
18 benefit of holders of bonds or notes of the Authority shall be
19 valid and binding from the time the bonds or notes are issued
20 without any physical delivery or further act and shall be valid
21 and binding as against and prior to the claims of all other
22 parties having claims of any kind against the Authority or any
23 other person irrespective of whether such other parties have
24 notice of such pledge, assignment, lien or security interest.
25 The obligations of the Authority incurred pursuant to this
26 Section shall be superior to and have priority over any other

 

 

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

 

 

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

 

 

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

 

 

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1 thereon, with interest on any unpaid installments of interest,
2 and all costs and expenses in connection with any action or
3 proceedings by or on behalf of such holders, are fully met and
4 discharged. In addition, the State pledges to and agrees with
5 the holders of the bonds and notes of the Authority issued
6 pursuant to this Section that the State will not limit or alter
7 the basis on which State funds are to be paid to the Authority
8 as provided in this Act, or the use of such funds, so as to
9 impair the terms of any such contract. The Authority is
10 authorized to include these pledges and agreements of the State
11 in any contract with the holders of bonds or notes issued
12 pursuant to this Section.
13     (g) (1) Except as provided in subdivisions (g)(2) and
14     (g)(3) of Section 4.04 of this Act, the Authority shall not
15     at any time issue, sell or deliver any bonds or notes
16     (other than Working Cash Notes) pursuant to this Section
17     4.04 which will cause it to have issued and outstanding at
18     any time in excess of $800,000,000 of such bonds and notes
19     (other than Working Cash Notes). The Authority shall not at
20     any time issue, sell, or deliver any Working Cash Notes
21     pursuant to this Section that will cause it to have issued
22     and outstanding at any time in excess of $100,000,000.
23     Notwithstanding the foregoing, before July 1, 2009, the
24     Authority may issue, sell, and deliver an additional
25     $300,000,000 in Working Cash Notes, provided that any such
26     additional notes shall mature on or before June 30, 2011.

 

 

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

 

 

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

 

 

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

 

 

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1 State Treasurer may, with the approval of the Governor, invest
2 or reinvest, at a price not to exceed par, any State money in
3 the State Treasury which is not needed for current expenditures
4 due or about to become due in Working Cash Notes.
5 (Source: P.A. 94-793, eff. 5-19-06.)
 
6     (70 ILCS 3615/4.09)  (from Ch. 111 2/3, par. 704.09)
7     Sec. 4.09. Public Transportation Fund and the Regional
8 Transportation Authority Occupation and Use Tax Replacement
9 Fund.
10     (a)(1) (a) As soon as possible after the first day of each
11 month, beginning November 1, 1983, the Comptroller shall order
12 transferred and the Treasurer shall transfer from the General
13 Revenue Fund to a special fund in the State Treasury, to be
14 known as the "Public Transportation Fund" $9,375,000 for each
15 month remaining in State fiscal year 1984. As soon as possible
16 after the first day of each month, beginning July 1, 1984, upon
17 certification of the Department of Revenue, the Comptroller
18 shall order transferred and the Treasurer shall transfer from
19 the General Revenue Fund to a special fund in the State
20 Treasury to be known as 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 any tax imposed by the
25 Authority pursuant to Sections 4.03 and 4.03.1 and 25% of the

 

 

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1 amounts deposited into the Regional Transportation Authority
2 tax fund created by Section 4.03 of this Act, from the County
3 and Mass Transit District Fund as provided in Section 6z-20 of
4 the State Finance Act and 25% of the amounts deposited into the
5 Regional Transportation Authority Occupation and Use Tax
6 Replacement Fund from the State and Local Sales Tax Reform Fund
7 as provided in Section 6z-17 of the State Finance Act. On the
8 first day of the month following the date that the Department
9 receives revenues from increased taxes under Section 4.03(m) as
10 authorized by this amendatory Act of the 95th General Assembly,
11 in lieu of the transfers authorized in the preceding sentence,
12 upon certification of the Department of Revenue, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer from the General Revenue Fund to the Public
15 Transportation Fund an amount equal to 25% of the net revenue,
16 before the deduction of the serviceman and retailer discounts
17 pursuant to Section 9 of the Service Occupation Tax Act and
18 Section 3 of the Retailers' Occupation Tax Act, realized from
19 (i) 80% of the proceeds of any tax imposed by the Authority at
20 a rate of 1.25% in Cook County, (ii) 75% of the proceeds of any
21 tax imposed by the Authority at the rate of 1% in Cook County,
22 and (iii) one-third of the proceeds of any tax imposed by the
23 Authority at the rate of 0.75% in the Counties of DuPage, Kane,
24 Lake, McHenry, and Will, all pursuant to Section 4.03, and 25%
25 of the net revenue realized from any tax imposed by the
26 Authority pursuant to Section 4.03.1, and 25% of the amounts

 

 

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

 

 

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1 Authority from the proceeds of any tax imposed by the Chicago
2 Transit Authority under Section 55 of the Metropolitan Transit
3 Authority Act.
4     (3) As soon as possible after the first day of January,
5 2009 and each month thereafter, upon certification of the
6 Department of Revenue with respect to the taxes collected under
7 Section 4.03, the Comptroller shall order transferred and the
8 Treasurer shall transfer from the General Revenue Fund to the
9 Public Transportation Fund an amount equal to 25% of the net
10 revenue, before the deduction of the serviceman and retailer
11 discounts pursuant to Section 9 of the Service Occupation Tax
12 Act and Section 3 of the Retailers' Occupation Tax Act,
13 realized from (i) 20% of the proceeds of any tax imposed by the
14 Authority at a rate of 1.25% in Cook County, (ii) 25% of the
15 proceeds of any tax imposed by the Authority at the rate of 1%
16 in Cook County, and (iii) one-third of the proceeds of any tax
17 imposed by the Authority at the rate of 0.75% in the Counties
18 of DuPage, Kane, Lake, McHenry, and Will, all pursuant to
19 Section 4.03, and the Comptroller shall order transferred and
20 the Treasurer shall transfer from the General Revenue Fund to
21 the Public Transportation Fund (iv) an amount equal to 25% of
22 the revenue realized by the Chicago Transit Authority from the
23 proceeds of any tax imposed by the Chicago Transit Authority
24 under Section 55 of the Metropolitan Transit Authority Act.
25     (b)(1) All moneys deposited in the Public Transportation
26 Fund and the Regional Transportation Authority Occupation and

 

 

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

 

 

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

 

 

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1        1994$20,000,000;
2        1995$30,000,000;
3        1996$40,000,000;
4        1997$50,000,000;
5        1998$55,000,000; and
6        each year thereafter$55,000,000.
7     (c-5) The State shall provide financial assistance
8 ("Additional Financial Assistance") in addition to the
9 Additional State Assistance provided by subsection (c) and the
10 amounts transferred to the Authority from the General Revenue
11 Fund under subsection (a) of this Section. Additional Financial
12 Assistance provided by this subsection shall be calculated as
13 provided in subsection (d), but shall in no event exceed the
14 following specified amounts with respect to the following State
15 fiscal years:
16        2000$0;
17        2001$16,000,000;
18        2002$35,000,000;
19        2003$54,000,000;
20        2004$73,000,000;
21        2005$93,000,000; and
22        each year thereafter$100,000,000.
23     (d) Beginning with State fiscal year 1990 and continuing
24 for each State fiscal year thereafter, the Authority shall
25 annually certify to the State Comptroller and State Treasurer,
26 separately with respect to each of subdivisions (g)(2) and

 

 

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

 

 

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

 

 

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1 limits:
2         (A) In no event shall the total transfers in any State
3     fiscal year relating to outstanding bonds and notes issued
4     by the Authority under subdivision (g)(2) of Section 4.04
5     exceed the lesser of the annual maximum amount specified in
6     subsection (c) or the sum of the amounts certified under
7     items (1) and (3) above, plus the actual debt service
8     certified under item (2) above, less the amount certified
9     under item (4) above, with respect to those bonds and
10     notes.
11         (B) In no event shall the total transfers in any State
12     fiscal year relating to outstanding bonds and notes issued
13     by the Authority under subdivision (g)(3) of Section 4.04
14     exceed the lesser of the annual maximum amount specified in
15     subsection (c-5) or the sum of the amounts certified under
16     items (1) and (3) above, plus the actual debt service
17     certified under item (2) above, less the amount certified
18     under item (4) above, with respect to those bonds and
19     notes.
20     The term "outstanding" does not include bonds or notes for
21 which refunding or advance refunding bonds or notes have been
22 issued.
23     (e) Neither Additional State Assistance nor Additional
24 Financial Assistance may be pledged, either directly or
25 indirectly as general revenues of the Authority, as security
26 for any bonds issued by the Authority. The Authority may not

 

 

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1 assign its right to receive Additional State Assistance or
2 Additional Financial Assistance, or direct payment of
3 Additional State Assistance or Additional Financial
4 Assistance, to a trustee or any other entity for the payment of
5 debt service on its bonds.
6     (f) The certification required under subsection (d) with
7 respect to outstanding bonds and notes of the Authority shall
8 be filed as early as practicable before the beginning of the
9 State fiscal year to which it relates. The certification shall
10 be revised as may be necessary to accurately state the debt
11 service requirements of the Authority.
12     (g) Within 6 months of the end of the 3 month period ending
13 December 31, 1983, and each fiscal year thereafter, the
14 Authority shall determine:
15         (i) whether the aggregate of all system generated
16     revenues for public transportation in the metropolitan
17     region which is provided by, or under grant or purchase of
18     service contracts with, the Service Boards equals 50% of
19     the aggregate of all costs of providing such public
20     transportation. "System generated revenues" include all
21     the proceeds of fares and charges for services provided,
22     contributions received in connection with public
23     transportation from units of local government other than
24     the Authority and from the State pursuant to subsection (i)
25     of Section 2705-305 of the Department of Transportation Law
26     (20 ILCS 2705/2705-305), and all other revenues properly

 

 

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1     included consistent with generally accepted accounting
2     principles but may not include: the proceeds from any
3     borrowing, revenues received by the Chicago Transit
4     Authority from a real estate transfer tax imposed under
5     Section 55 of the Metropolitan Transit Authority Act, and,
6     beginning with the 2007 fiscal year, all revenues and
7     receipts, including but not limited to fares and grants
8     received from the federal, State or any unit of local
9     government or other entity, derived from providing ADA
10     paratransit service pursuant to Section 2.30 of the
11     Regional Transportation Authority Act. "Costs" include all
12     items properly included as operating costs consistent with
13     generally accepted accounting principles, including
14     administrative costs, but do not include: depreciation;
15     payment of principal and interest on bonds, notes or other
16     evidences of obligations for borrowed money of the
17     Authority; payments with respect to public transportation
18     facilities made pursuant to subsection (b) of Section 2.20;
19     any payments with respect to rate protection contracts,
20     credit enhancements or liquidity agreements made under
21     Section 4.14; any other cost as to which it is reasonably
22     expected that a cash expenditure will not be made; costs up
23     to $5,000,000 annually for passenger security including
24     grants, contracts, personnel, equipment and administrative
25     expenses, except in the case of the Chicago Transit
26     Authority, in which case the term does not include costs

 

 

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1     spent annually by that entity for protection against crime
2     as required by Section 27a of the Metropolitan Transit
3     Authority Act; the costs of Debt Service paid by the
4     Chicago Transit Authority, as defined in Section 12c of the
5     Metropolitan Transit Authority Act, or bonds or notes
6     issued pursuant to that Section; the payment by the
7     Commuter Rail Division of debt service on bonds issued
8     pursuant to Section 3B.09; expenses incurred by the
9     Suburban Bus Division for the cost of new public
10     transportation services funded from grants pursuant to
11     Section 2.01e of this amendatory Act of the 95th General
12     Assembly for a period of 2 years from the date of
13     initiation of each such service; costs as exempted by the
14     Board for projects pursuant to Section 2.09 of this Act;
15     or, beginning with the 2007 fiscal year, expenses related
16     to providing ADA paratransit service pursuant to Section
17     2.30 of the Regional Transportation Authority Act; or in
18     fiscal years 2008 through 2012 inclusive, costs in the
19     amount of $200,000,000 in fiscal year 2008, reducing by
20     $40,000,000 in each fiscal year thereafter until this
21     exemption is eliminated. If said system generated revenues
22     are less than 50% of said costs, the Board shall remit an
23     amount equal to the amount of the deficit to the State. The
24     Treasurer shall deposit any such payment in the General
25     Revenue Fund; and
26         (ii) whether, beginning with the 2007 fiscal year, the

 

 

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1     aggregate of all fares charged and received for ADA
2     paratransit services equals the system generated ADA
3     paratransit services revenue recovery ratio percentage of
4     the aggregate of all costs of providing such ADA
5     paratransit services.
6     (h) If the Authority makes any payment to the State under
7 paragraph (g), the Authority shall reduce the amount provided
8 to a Service Board from funds transferred under paragraph (a)
9 in proportion to the amount by which that Service Board failed
10 to meet its required system generated revenues recovery ratio.
11 A Service Board which is affected by a reduction in funds under
12 this paragraph shall submit to the Authority concurrently with
13 its next due quarterly report a revised budget incorporating
14 the reduction in funds. The revised budget must meet the
15 criteria specified in clauses (i) through (vi) of Section
16 4.11(b)(2). The Board shall review and act on the revised
17 budget as provided in Section 4.11(b)(3).
18 (Source: P.A. 94-370, eff. 7-29-05.)"; and
 
19     (70 ILCS 3615/4.11)  (from Ch. 111 2/3, par. 704.11)
20     Sec. 4.11. Budget Review Powers.
21     (a) The provisions of this Section shall only be applicable
22 to financial periods beginning after December 31, 1983. The
23 Transition Board shall adopt a timetable governing the
24 certification of estimates and any submissions required under
25 this Section for fiscal year 1984 which shall control over the

 

 

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1 provisions of this Act. Based upon estimates which shall be
2 given to the Authority by the Director of the Governor's Office
3 of Management and Budget (formerly Bureau of the Budget) of the
4 receipts to be received by the Authority from the taxes imposed
5 by the Authority and the authorized estimates of amounts to be
6 available from State and other sources to the Service Boards,
7 and the times at which such receipts and amounts will be
8 available, the Board shall, not later than the next preceding
9 September 15th prior to the beginning of the Authority's next
10 fiscal year, advise each Service Board of the amounts estimated
11 by the Board to be available for such Service Board during such
12 fiscal year and the two following fiscal years and the times at
13 which such amounts will be available. The Board shall, at the
14 same time, also advise each Service Board of its required
15 system generated revenues recovery ratio for the next fiscal
16 year which shall be the percentage of the aggregate costs of
17 providing public transportation by or under jurisdiction of
18 that Service Board which must be recovered from system
19 generated revenues. The Board shall, at the same time,
20 beginning with the 2007 fiscal year, also advise each Service
21 Board that provides ADA paratransit services of its required
22 system generated ADA paratransit services revenue recovery
23 ratio for the next fiscal year which shall be the percentage of
24 the aggregate costs of providing ADA paratransit services by or
25 under jurisdiction of that Service Board which must be
26 recovered from fares charged for such services, except that

 

 

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1 such required system generated ADA paratransit services
2 revenue recovery ratio shall not exceed the minimum percentage
3 established pursuant to Section 4.01(b)(ii) of this Act. In
4 determining a Service Board's system generated revenue
5 recovery ratio, the Board shall consider the historical system
6 generated revenues recovery ratio for the services subject to
7 the jurisdiction of that Service Board. The Board shall not
8 increase a Service Board's system generated revenues recovery
9 ratio for the next fiscal year over such ratio for the current
10 fiscal year disproportionately or prejudicially to increases
11 in such ratios for other Service Boards. The Board may, by
12 ordinance, provide that (i) the cost of research and
13 development projects in the fiscal year beginning January 1,
14 1986 and ending December 31, 1986 conducted pursuant to Section
15 2.09 of this Act, and (ii) up to $5,000,000 annually of the
16 costs for passenger security, and (iii) expenditures of amounts
17 granted to a Service Board from the Innovation, Coordination,
18 and Enhancement Fund for operating purposes may be exempted
19 from the farebox recovery ratio or the system generated
20 revenues recovery ratio of the Chicago Transit Authority, the
21 Suburban Bus Board, and the Commuter Rail Board, or any of
22 them. During fiscal years 2008 through 2012, the Board may also
23 allocate the exemption of $200,000,000 and the reducing amounts
24 of costs provided by this amendatory Act of the 95th General
25 Assembly from the farebox recovery ratio or system generated
26 revenues recovery ratio of each Service Board. For the fiscal

 

 

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1 year beginning January 1, 1986 and ending December 31, 1986,
2 and for the fiscal year beginning January 1, 1987 and ending
3 December 31, 1987, the Board shall, by ordinance, provide that:
4 (1) the amount of a grant, pursuant to Section 2705-310 of the
5 Department of Transportation Law (20 ILCS 2705/2705-310), from
6 the Department of Transportation for the cost of services for
7 the mobility limited provided by the Chicago Transit Authority,
8 and (2) the amount of a grant, pursuant to Section 2705-310 of
9 the Department of Transportation Law (20 ILCS 2705/2705-310),
10 from the Department of Transportation for the cost of services
11 for the mobility limited by the Suburban Bus Board or the
12 Commuter Rail Board, be exempt from the farebox recovery ratio
13 or the system generated revenues recovery ratio.
14     (b)(1) Not later than the next preceding November 15 prior
15 to the commencement of such fiscal year, each Service Board
16 shall submit to the Authority its proposed budget for such
17 fiscal year and its proposed financial plan for the two
18 following fiscal years. Such budget and financial plan shall
19 (i) be prepared in the format, follow the financial and
20 budgetary practices, and be based on any assumptions and
21 projections required by the Authority and (ii) not project or
22 assume a receipt of revenues from the Authority in amounts
23 greater than those set forth in the estimates provided by the
24 Authority pursuant to subsection (a) of this Section.
25     (2) The Board shall review the proposed budget and two-year
26 financial plan submitted by each Service Board, and shall adopt

 

 

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1 a consolidated budget and financial plan. The Board shall
2 approve the budget and two-year financial plan of a Service
3 Board if:
4         (i) the Board has approved the proposed budget and cash
5     flow plan for such fiscal year of each Service Board,
6     pursuant to the conditions set forth in clauses (ii)
7     through (vii) of this paragraph;
8         (i) (ii) such budget and plan show a balance between
9     (A) anticipated revenues from all sources including
10     operating subsidies and (B) the costs of providing the
11     services specified and of funding any operating deficits or
12     encumbrances incurred in prior periods, including
13     provision for payment when due of principal and interest on
14     outstanding indebtedness;
15         (ii) (iii) such budget and plan show cash balances
16     including the proceeds of any anticipated cash flow
17     borrowing sufficient to pay with reasonable promptness all
18     costs and expenses as incurred;
19         (iii) (iv) such budget and plan provide for a level of
20     fares or charges and operating or administrative costs for
21     the public transportation provided by or subject to the
22     jurisdiction of such Service Board sufficient to allow the
23     Service Board to meet its required system generated revenue
24     recovery ratio and, beginning with the 2007 fiscal year,
25     system generated ADA paratransit services revenue recovery
26     ratio;

 

 

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1         (iv) (v) such budget and plan are based upon and employ
2     assumptions and projections which are reasonable and
3     prudent;
4         (v) (vi) such budget and plan have been prepared in
5     accordance with sound financial practices as determined by
6     the Board; and
7         (vi) (vii) such budget and plan meet such other
8     financial, budgetary, or fiscal requirements that the
9     Board may by rule or regulation establish; and .
10         (vii) such budget and plan are consistent with the
11     goals and objectives adopted by the Authority in the
12     Strategic Plan.
13     (3) (Blank) In determining whether the budget and financial
14 plan provide a level of fares or charges sufficient to allow a
15 Service Board to meet its required system generated revenue
16 recovery ratio and, beginning with the 2007 fiscal year, system
17 generated ADA paratransit services revenue recovery ratio
18 under clause (iv) in subparagraph (2), the Board shall allow a
19 Service Board to carry over cash from farebox revenues to
20 subsequent fiscal years.
21     (4) Unless the Board by an affirmative vote of 12 9 of the
22 then Directors determines that the budget and financial plan of
23 a Service Board meets the criteria specified in clauses (i)
24 (ii) through (vii) of subparagraph (2) of this paragraph (b),
25 the Board shall withhold from not release to that Service Board
26 25% of any funds for the periods covered by such budget and

 

 

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1 financial plan except for the cash proceeds of taxes imposed by
2 the Authority under Section 4.03 and Section 4.03.1 and
3 received after February 1 and 25% of the amounts transferred to
4 the Authority from the Public Transportation Fund under Section
5 4.09(a) (but not including Section 4.09(a)(3)(iv)) after
6 February 1 that the Board has estimated to be available to that
7 Service Board under Section 4.11(a). Such funding shall be
8 released to the Service Board only upon approval of a budget
9 and financial plan under this Section or adoption of a budget
10 and financial plan on behalf of the Service Board by the
11 Authority which are allocated to the Service Board under
12 Section 4.01.
13     (5) If the Board has not found that the budget and
14 financial plan of a Service Board meets the criteria specified
15 in clauses (i) through (vii) of subparagraph (2) of this
16 paragraph (b), the Board, by the affirmative vote of at least
17 12 of its then Directors, shall shall, five working days after
18 the start of the Service Board's fiscal year adopt a budget and
19 financial plan meeting such criteria for that Service Board.
20     (c)(1) If the Board shall at any time have received a
21 revised estimate, or revises any estimate the Board has made,
22 pursuant to this Section of the receipts to be collected by the
23 Authority which, in the judgment of the Board, requires a
24 change in the estimates on which the budget of any Service
25 Board is based, the Board shall advise the affected Service
26 Board of such revised estimates, and such Service Board shall

 

 

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1 within 30 days after receipt of such advice submit a revised
2 budget incorporating such revised estimates. If the revised
3 estimates require, in the judgment of the Board, that the
4 system generated revenues recovery ratio of one or more Service
5 Boards be revised in order to allow the Authority to meet its
6 required ratio, the Board shall advise any such Service Board
7 of its revised ratio and such Service Board shall within 30
8 days after receipt of such advice submit a revised budget
9 incorporating such revised estimates or ratio.
10     (2) Each Service Board shall, within such period after the
11 end of each fiscal quarter as shall be specified by the Board,
12 report to the Authority its financial condition and results of
13 operations and the financial condition and results of
14 operations of the public transportation services subject to its
15 jurisdiction, as at the end of and for such quarter. If in the
16 judgment of the Board such condition and results are not
17 substantially in accordance with such Service Board's budget
18 for such period, the Board shall so advise such Service Board
19 and such Service Board shall within the period specified by the
20 Board submit a revised budget incorporating such results.
21     (3) If the Board shall determine that a revised budget
22 submitted by a Service Board pursuant to subparagraph (1) or
23 (2) of this paragraph (c) does not meet the criteria specified
24 in clauses (i) (ii) through (vii) of subparagraph (2) of
25 paragraph (b) of this Section, the Board shall withhold from
26 not release any monies to that Service Board 25% of except the

 

 

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1 cash proceeds of taxes imposed by the Authority under Section
2 4.03 or 4.03.1 and received by the Authority after February 1
3 and 25% of the amounts transferred to the Authority from the
4 Public Transportation Fund under Section 4.09(a) (but not
5 including Section 4.09(a)(3)(iv)) after February 1 that the
6 Board has estimated to be available which are allocated to that
7 the Service Board under Section 4.11(a) 4.01. If the Service
8 Board submits a revised financial plan and budget which plan
9 and budget shows that the criteria will be met within a four
10 quarter period, the Board shall continue to release any such
11 withheld funds to the Service Board. The Board by the
12 affirmative vote of at least 12 a 9 vote of its then Directors
13 may require a Service Board to submit a revised financial plan
14 and budget which shows that the criteria will be met in a time
15 period less than four quarters.
16     (d) All budgets and financial plans, financial statements,
17 audits and other information presented to the Authority
18 pursuant to this Section or which may be required by the Board
19 to permit it to monitor compliance with the provisions of this
20 Section shall be prepared and presented in such manner and
21 frequency and in such detail as shall have been prescribed by
22 the Board, shall be prepared on both an accrual and cash flow
23 basis as specified by the Board, shall present such information
24 as the Authority shall prescribe that fairly presents the
25 condition of any pension plan or trust for health care benefits
26 with respect to retirees established by the Service Board and

 

 

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1 describes the plans of the Service Board to meet the
2 requirements of Sections 4.02a and 4.02b, and shall identify
3 and describe the assumptions and projections employed in the
4 preparation thereof to the extent required by the Board. If the
5 Executive Director certifies that a Service Board has not
6 presented its budget and two-year financial plan in conformity
7 with the rules adopted by the Authority under the provisions of
8 Section 4.01(f) and this subsection (d), and such certification
9 is accepted by the affirmative vote of at least 12 of the then
10 Directors of the Authority, the Authority shall not distribute
11 to that Service Board any funds for operating purposes in
12 excess of the amounts distributed for such purposes to the
13 Service Board in the previous fiscal year. Except when the
14 Board adopts a budget and a financial plan for a Service Board
15 under paragraph (b)(5), a Service Board shall provide for such
16 levels of transportation services and fares or charges therefor
17 as it deems appropriate and necessary in the preparation of a
18 budget and financial plan meeting the criteria set forth in
19 clauses (i) (ii) through (vii) of subparagraph (2) of paragraph
20 (b) of this Section. The Authority Board shall have access to
21 and the right to examine and copy all books, documents, papers,
22 records, or other source data of a Service Board relevant to
23 any information submitted pursuant to this Section.
24     (e) Whenever this Section requires the Board to make
25 determinations with respect to estimates, budgets or financial
26 plans, or rules or regulations with respect thereto such

 

 

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1 determinations shall be made upon the affirmative vote of at
2 least 12 9 of the then Directors and shall be incorporated in a
3 written report of the Board and such report shall be submitted
4 within 10 days after such determinations are made to the
5 Governor, the Mayor of Chicago (if such determinations relate
6 to the Chicago Transit Authority), and the Auditor General of
7 Illinois.
8 (Source: P.A. 94-370, eff. 7-29-05.)
 
9     (70 ILCS 3615/4.13)  (from Ch. 111 2/3, par. 704.13)
10     Sec. 4.13. Annual Capital Improvement Plan.
11     (a) With respect to each calendar year, the Authority shall
12 prepare as part of its Five Year Program an Annual Capital
13 Improvement Plan (the "Plan") which shall describe its intended
14 development and implementation of the Strategic Capital
15 Improvement Program. The Plan shall include the following
16 information:
17         (i) a list of projects for which approval is sought
18     from the Governor, with a description of each project
19     stating at a minimum the project cost, its category, its
20     location and the entity responsible for its
21     implementation;
22         (ii) a certification by the Authority that the
23     Authority and the Service Boards have applied for all
24     grants, loans and other moneys made available by the
25     federal government or the State of Illinois during the

 

 

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1     preceding federal and State fiscal years for financing its
2     capital development activities;
3         (iii) a certification that, as of September 30 of the
4     preceding calendar year or any later date, the balance of
5     all federal capital grant funds and all other funds to be
6     used as matching funds therefor which were committed to or
7     possessed by the Authority or a Service Board but which had
8     not been obligated was less than $350,000,000, or a greater
9     amount as authorized in writing by the Governor (for
10     purposes of this subsection (a), "obligated" means
11     committed to be paid by the Authority or a Service Board
12     under a contract with a nongovernmental entity in
13     connection with the performance of a project or committed
14     under a force account plan approved by the federal
15     government);
16         (iv) a certification that the Authority has adopted a
17     balanced budget with respect to such calendar year under
18     Section 4.01 of this Act;
19         (v) a schedule of all bonds or notes previously issued
20     for Strategic Capital Improvement Projects and all debt
21     service payments to be made with respect to all such bonds
22     and the estimated additional debt service payments through
23     June 30 of the following calendar year expected to result
24     from bonds to be sold prior thereto;
25         (vi) a long-range summary of the Strategic Capital
26     Improvement Program describing the projects to be funded

 

 

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1     through the Program with respect to project cost, category,
2     location, and implementing entity, and presenting a
3     financial plan including an estimated time schedule for
4     obligating funds for the performance of approved projects,
5     issuing bonds, expending bond proceeds and paying debt
6     service throughout the duration of the Program; and
7         (vii) the source of funding for each project in the
8     Plan. For any project for which full funding has not yet
9     been secured and which is not subject to a federal full
10     funding contract, the Authority must identify alternative,
11     dedicated funding sources available to complete the
12     project. The Governor may waive this requirement on a
13     project by project basis.
14     (b) The Authority shall submit the Plan with respect to any
15 calendar year to the Governor on or before January 15 of that
16 year, or as soon as possible thereafter; provided, however,
17 that the Plan shall be adopted on the affirmative votes of 12 9
18 of the then Directors. The Plan may be revised or amended at
19 any time, but any revision in the projects approved shall
20 require the Governor's approval.
21     (c) The Authority shall seek approval from the Governor
22 only through the Plan or an amendment thereto. The Authority
23 shall not request approval of the Plan from the Governor in any
24 calendar year in which it is unable to make the certifications
25 required under items (ii), (iii) and (iv) of subsection (a). In
26 no event shall the Authority seek approval of the Plan from the

 

 

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1 Governor for projects in an aggregate amount exceeding the
2 proceeds of bonds or notes for Strategic Capital Improvement
3 Projects issued under Section 4.04 of this Act.
4     (d) The Governor may approve the Plan for which approval is
5 requested. The Governor's approval is limited to the amount of
6 the project cost stated in the Plan. The Governor shall not
7 approve the Plan in a calendar year if the Authority is unable
8 to make the certifications required under items (ii), (iii) and
9 (iv) of subsection (a). In no event shall the Governor approve
10 the Plan for projects in an aggregate amount exceeding the
11 proceeds of bonds or notes for Strategic Capital Improvement
12 Projects issued under Section 4.04 of this Act.
13     (e) With respect to capital improvements, only those
14 capital improvements which are in a Plan approved by the
15 Governor shall be financed with the proceeds of bonds or notes
16 issued for Strategic Capital Improvement Projects.
17     (f) Before the Authority or a Service Board obligates any
18 funds for a project for which the Authority or Service Board
19 intends to use the proceeds of bonds or notes for Strategic
20 Capital Improvement Projects, but which project is not included
21 in an approved Plan, the Authority must notify the Governor of
22 the intended obligation. No project costs incurred prior to
23 approval of the Plan including that project may be paid from
24 the proceeds of bonds or notes for Strategic Capital
25 Improvement Projects issued under Section 4.04 of this Act.
26 (Source: P.A. 94-839, eff. 6-6-06.)
 

 

 

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1     (70 ILCS 3615/4.14)  (from Ch. 111 2/3, par. 704.14)
2     Sec. 4.14. Rate Protection Contract. "Rate Protection
3 Contract" means interest rate price exchange agreements;
4 currency exchange agreements; forward payment conversion
5 agreements; contracts providing for payment or receipt of funds
6 based on levels of, or changes in, interest rates, currency
7 exchange rates, stock or other indices; contracts to exchange
8 cash flows or a series of payments; contracts, including
9 without limitation, interest rate caps; interest rate floor;
10 interest rate locks; interest rate collars; rate of return
11 guarantees or assurances, to manage payment, currency, rate,
12 spread or similar exposure; the obligation, right, or option to
13 issue, put, lend, sell, grant a security interest in, buy,
14 borrow or otherwise acquire, a bond, note or other security or
15 interest therein as an investment, as collateral, as a hedge,
16 or otherwise as a source or assurance of payment to or by the
17 Authority or as a reduction of the Authority's or an obligor's
18 risk exposure; repurchase agreements; securities lending
19 agreements; and other agreements or arrangements similar to the
20 foregoing.
21     Notwithstanding any provision in Section 2.20 (a) (ii) of
22 this Act to the contrary, in connection with or incidental to
23 the issuance by the Authority of its bonds or notes under the
24 provisions of Section 4.04 or the exercise of its powers under
25 subsection (b) of Section 2.20, the Authority, for its own

 

 

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1 benefit or for the benefit of the holders of its obligations or
2 their trustee, may enter into rate protection contracts. The
3 Authority may enter into rate protection contracts only
4 pursuant to a determination by a vote of 12 9 of the then
5 Directors that the terms of the contracts and any related
6 agreements reduce the risk of loss to the Authority, or
7 protect, preserve or enhance the value of its assets, or
8 provide compensation to the Authority for losses resulting from
9 changes in interest rates. The Authority's obligations under
10 any rate protection contract or credit enhancement or liquidity
11 agreement shall not be considered bonds or notes for purposes
12 of this Act. For purposes of this Section a rate protection
13 contract is a contract determined by the Authority as necessary
14 or appropriate to permit it to manage payment, currency or
15 interest rate risks or levels.
16 (Source: P.A. 87-764.)
 
17     (70 ILCS 3615/5.01)  (from Ch. 111 2/3, par. 705.01)
18     Sec. 5.01. Hearings and Citizen Participation.
19     (a) The Authority shall provide for and encourage
20 participation by the public in the development and review of
21 public transportation policy, and in the process by which major
22 decisions significantly affecting the provision of public
23 transportation are made. The Authority shall coordinate such
24 public participation processes with the Chicago Metropolitan
25 Agency for Planning to the extent practicable.

 

 

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1     (b) The Authority shall hold such public hearings as may be
2 required by this Act or as the Authority may deem appropriate
3 to the performance of any of its functions. The Authority shall
4 coordinate such public hearings with the Chicago Metropolitan
5 Agency for Planning to the extent practicable.
6     (c) Unless such items are specifically provided for either
7 in the Five-Year Capital Program or in the annual budget
8 program which has been the subject of public hearings as
9 provided in Sections 2.01 or 4.01 of this Act, the Board shall
10 hold public hearings at which citizens may be heard prior to:
11     (i) the construction or acquisition of any public
12 transportation facility, the aggregate cost of which exceeds $5
13 million; and
14     (ii) the extension of, or major addition to services
15 provided by the Authority or by any transportation agency
16 pursuant to a purchase of service agreement with the Authority.
17     (d) Unless such items are specifically provided for in the
18 annual budget and program which has been the subject of public
19 hearing, as provided in Section 4.01 of this Act, the Board
20 shall hold public hearings at which citizens may be heard prior
21 to the providing for or allowing, by means of any purchase of
22 service agreement or any grant pursuant to Section 2.02 of this
23 Act, any general increase or series of increases in fares or
24 charges for public transportation, whether by the Authority or
25 by any transportation agency, which increase or series of
26 increases within any twelve months affects more than 25% of the

 

 

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1 consumers of service of the Authority or of the transportation
2 agency; or so providing for or allowing any discontinuance of
3 any public transportation route, or major portion thereof,
4 which has been in service for more than a year.
5     (e) At least twenty days prior notice of any public
6 hearing, as required in this Section, shall be given by public
7 advertisement in a newspaper of general circulation in the
8 metropolitan region.
9     (f) The Authority may designate one or more Directors or
10 may appoint one or more hearing officers to preside over any
11 hearing pursuant to this Act. The Authority shall have the
12 power in connection with any such hearing to issue subpoenas to
13 require the attendance of witnesses and the production of
14 documents, and the Authority may apply to any circuit court in
15 the State to require compliance with such subpoenas.
16     (g) The Authority may require any Service Board to hold one
17 or more public hearings with respect to any item described in
18 paragraphs (c) and (d) of this Section 5.01, notwithstanding
19 whether such item has been the subject of a public hearing
20 under this Section 5.01 or Section 2.01 or 4.01 of this Act.
21 (Source: P.A. 78-3rd S.S.-5.)
 
22     (70 ILCS 3615/2.12a rep.)
23     (70 ILCS 3615/3.09 rep.)
24     (70 ILCS 3615/3.10 rep.)
25     Section 25. The Regional Transportation Authority Act is

 

 

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1 amended by repealing Sections 2.12a, 3.09, and 3.10.
 
2     Section 97. Severability. The provisions of this Act are
3 severable under Section 1.31 of the Statute on Statutes.
 
4     Section 99. Effective date. This Act takes effect upon
5 becoming law.".