093_HB2517

 
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 1        AN ACT concerning public transportation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Regional Transportation Authority Act is
 5    amended by changing Sections 4.02 and 4.11 as follows:

 6        (70 ILCS 3615/4.02) (from Ch. 111 2/3, par. 704.02)
 7        Sec. 4.02.  Federal,  State  and  Other  Funds.  (a)  The
 8    Authority  shall  have  the  power  to apply for, receive and
 9    expend grants,  loans  or  other  funds  from  the  State  of
10    Illinois  or  any department or agency thereof, from any unit
11    of local government,  from  the  federal  government  or  any
12    department  or agency thereof, for use in connection with any
13    of the powers or purposes of the Authority as  set  forth  in
14    this Act. The Authority shall have power to make such studies
15    as may be necessary and to enter into contracts or agreements
16    with  the  State  of  Illinois  or  any  department or agency
17    thereof, with any unit  of  local  government,  or  with  the
18    federal  government  or  any  department  or  agency thereof,
19    concerning  such  grants,  loans  or  other  funds,  or   any
20    conditions  relating  thereto, including obligations to repay
21    such funds. The Authority may make such covenants  concerning
22    such grants, loans and funds as it deems proper and necessary
23    in  carrying out its responsibilities, purposes and powers as
24    provided in this Act.
25        (b)  The Authority shall be the primary  public  body  in
26    the  metropolitan  region  with  authority  to  apply for and
27    receive any grants, loans or other funds relating  to  public
28    transportation  programs  from  the  State of Illinois or any
29    department or agency thereof, or from the federal  government
30    or  any  department  or  agency  thereof.  Any  unit of local
31    government, Service Board or transportation agency may  apply
 
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 1    for  and  receive  any  such federal or state capital grants,
 2    loans or other funds, provided, however that a Service  Board
 3    may  not  apply for or receive any grant or loan which is not
 4    identified in the Five-Year Program.     Any  Service  Board,
 5    unit  of  local  government  or  transportation  agency shall
 6    notify the Authority prior to making any such application and
 7    shall file a copy thereof with the Authority.  The  Authority
 8    shall  permit  a Service Board to use grants, loans, or other
 9    funds it is eligible for or  receives  from  the  State,  any
10    State  agency,  the federal government, or any federal agency
11    if the use  of  the  grants,  loans,  or  other  funds  meets
12    applicable  guidelines  of  the  entity providing the grants,
13    loans, or other funds. The use of  these  grants,  loans,  or
14    other  funds  shall  be  included  by  the  Authority  in the
15    Five-Year Program as submitted by a Service Board.    Nothing
16    in  this  Section shall be construed to impose any limitation
17    on the ability of the State of Illinois or any department  or
18    agency thereof, any unit of local government or Service Board
19    or  transportation agency to make any grants or to enter into
20    any agreement or contract with the  National  Rail  Passenger
21    Corporation.  Nor  shall  anything in this Section impose any
22    limitation on the ability of any school district to apply for
23    or receive any grant, loan or other funds for  transportation
24    of school children.
25        (c)  The Authority shall provide to the Service Board any
26    monies  received  relating  to public transportation services
27    under the jurisdiction of the Service Boards as follows:
28        (1)  As soon as may be practicable  after  the  Authority
29    receives payment, under Section 4.03(m) or Section 4.03.1(d),
30    of  the  proceeds of those taxes levied by the Authority, the
31    Authority shall transfer to each Service Board the amount  to
32    which it is entitled under Section 4.01(d);
33        (2)  The  Authority by ordinance adopted by 9 of its then
34    Directors shall establish a formula apportioning any  federal
 
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 1    funds   for   operating  assistance  purposes  the  Authority
 2    receives to each Service Board.  In establishing the formula,
 3    the Board shall  consider,  among  other  factors:  ridership
 4    levels,  the  efficiency  with which the service is provided,
 5    the degree of transit dependence of the area served  and  the
 6    cost  of  service.   That  portion  of  any federal funds for
 7    operating assistance received by the Authority shall be  paid
 8    to  each  Service  Board  as  soon as may be practicable upon
 9    their receipt provided the Authority has adopted  a  balanced
10    budget  as required by Section 4.01 and further provided that
11    the Service Boards are in compliance with the requirements in
12    Section 4.11.
13        (3)  The Authority by ordinance adopted by 9 of its  then
14    Directors   shall  apportion  to  the  Service  Boards  funds
15    provided by the State of  Illinois  under  Section  4.09  and
16    shall  make  payment  of  said funds to each Service Board as
17    soon as may be practicable upon their  receipt  provided  the
18    Authority  has  adopted  a  balanced  budget  as  required by
19    Section 4.01 and further provided the  Service  Board  is  in
20    compliance with the requirements in Section 4.11.
21    (Source: P.A. 83-885; 83-886.)

22        (70 ILCS 3615/4.11) (from Ch. 111 2/3, par. 704.11)
23        Sec. 4.11.  Budget Review Powers.
24        (a)  The   provisions  of  this  Section  shall  only  be
25    applicable to financial periods beginning after December  31,
26    1983.  The Transition Board shall adopt a timetable governing
27    the  certification  of estimates and any submissions required
28    under this Section for fiscal year 1984 which  shall  control
29    over  the provisions of this Act.  Based upon estimates which
30    shall be given to  the  Authority  by  the  Director  of  the
31    Illinois  Bureau of the Budget of the receipts to be received
32    by the Authority from the taxes imposed by the Authority  and
33    the  authorized  estimates  of  amounts  to be available from
 
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 1    State and other sources to the Service Boards, and the  times
 2    at  which  such  receipts  and amounts will be available, the
 3    Board shall, not later than the next preceding September 15th
 4    prior to the beginning of the Authority's next  fiscal  year,
 5    advise  each  Service  Board  of the amounts estimated by the
 6    Board to be available for  such  Service  Board  during  such
 7    fiscal year and the two following fiscal years and  the times
 8    at which such amounts will be available.  The Board shall, at
 9    the same time, also advise each Service Board of its required
10    system  generated revenues recovery ratio for the next fiscal
11    year which shall be the percentage of the aggregate costs  of
12    providing  public  transportation by or under jurisdiction of
13    that Service  Board  which  must  be  recovered  from  system
14    generated  revenues.  In determining a Service Board's system
15    generated revenue recovery ratio, the  Board  shall  consider
16    the  historical  system generated revenues recovery ratio for
17    the services subject to  the  jurisdiction  of  that  Service
18    Board.  The Board shall not increase a Service Board's system
19    generated  revenues  recovery  ratio for the next fiscal year
20    over   such   ratio   for    the    current    fiscal    year
21    disproportionately  or  prejudicially  to  increases  in such
22    ratios  for  other  Service  Boards.   The  Board   may,   by
23    ordinance,   provide  that  (i)  the  cost  of  research  and
24    development projects in the fiscal year beginning January  1,
25    1986  and  ending  December  31,  1986  conducted pursuant to
26    Section 2.09 of this Act, and (ii) up to $5,000,000  annually
27    of the costs for passenger security, may be exempted from the
28    farebox  recovery  ratio  or  the  system  generated revenues
29    recovery ratio of the Chicago Transit Authority, the Suburban
30    Bus Board, and the Commuter Rail Board, or any of them.   For
31    the fiscal year beginning January 1, 1986 and ending December
32    31,  1986,  and for the fiscal year beginning January 1, 1987
33    and ending December 31, 1987, the Board shall, by  ordinance,
34    provide  that: (1) the amount of a grant, pursuant to Section
 
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 1    2705-310 of the Department of  Transportation  Law  (20  ILCS
 2    2705/2705-310), from the Department of Transportation for the
 3    cost  of  services  for  the mobility limited provided by the
 4    Chicago Transit Authority, and (2) the  amount  of  a  grant,
 5    pursuant   to   Section   2705-310   of   the  Department  of
 6    Transportation  Law  (20  ILCS   2705/2705-310),   from   the
 7    Department of Transportation for the cost of services for the
 8    mobility  limited  by  the Suburban Bus Board or the Commuter
 9    Rail Board, be exempt from the farebox recovery ratio or  the
10    system generated revenues recovery ratio.
11        (b)(1)  Not  later  than  the  next preceding November 15
12    prior to the commencement of such fiscal year,  each  Service
13    Board  shall  submit to the Authority its proposed budget for
14    such fiscal year and its proposed financial plan for the  two
15    following fiscal years.  Such budget and financial plan shall
16    not  project  or  assume  a  receipt  of  revenues  from  the
17    Authority  in  amounts  greater  than  those set forth in the
18    estimates provided by the Authority  pursuant  to  subsection
19    (a) of this Section.
20        (2)  The  Board  shall  review  the  proposed  budget and
21    financial plan submitted by each  Service  Board,  and  shall
22    adopt  a  consolidated  budget and financial plan.  The Board
23    shall approve the budget and plan if:
24             (i)  the Board has approved the proposed budget  and
25        cash  flow  plan  for  such  fiscal  year of each Service
26        Board, pursuant to the conditions set  forth  in  clauses
27        (ii) through (vii) of this paragraph;
28             (ii)  such  budget  and  plan show a balance between
29        (A)  anticipated  revenues  from  all  sources  including
30        operating subsidies and (B) the costs  of  providing  the
31        services  specified and of funding any operating deficits
32        or encumbrances  incurred  in  prior  periods,  including
33        provision  for payment when due of principal and interest
34        on outstanding indebtedness;
 
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 1             (iii)  such  budget  and  plan  show  cash  balances
 2        including the  proceeds  of  any  anticipated  cash  flow
 3        borrowing  sufficient  to  pay with reasonable promptness
 4        all costs and expenses as incurred;
 5             (iv)  such budget and plan provide for  a  level  of
 6        fares  or  charges  and operating or administrative costs
 7        for the public transportation provided by or  subject  to
 8        the  jurisdiction  of  such  Service  Board sufficient to
 9        allow the Service  Board  to  meet  its  required  system
10        generated revenue recovery ratio;
11             (v)  such  budget and plan are based upon and employ
12        assumptions and  projections  which  are  reasonable  and
13        prudent;
14             (vi)  such  budget  and  plan  have been prepared in
15        accordance with sound financial practices  as  determined
16        by the Board; and
17             (vi-a)  such budget and plan show all grants, loans,
18        or  other funds are to be used in the manner set forth by
19        the entity providing the grants, loans, or  other  funds;
20        and
21             (vii)  such   budget   and   plan  meet  such  other
22        financial, budgetary, or  fiscal  requirements  that  the
23        Board may by rule or regulation establish.
24        (3)  In determining whether the budget and financial plan
25    provide  a  level  of  fares or charges sufficient to allow a
26    Service Board to meet its required system  generated  revenue
27    recovery  ratio  under  clause  (iv) in subparagraph (2), the
28    Board shall allow a Service Board to  carry  over  cash  from
29    farebox revenues to subsequent fiscal years.
30        (4)  Unless  the Board by an affirmative vote of 9 of the
31    then Directors determines that the budget and financial  plan
32    of  a  Service  Board meets the criteria specified in clauses
33    (ii) through (vii) of subparagraph (2) of this paragraph (b),
34    the Board shall not release to that Service Board  any  funds
 
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 1    for  the  periods  covered  by such budget and financial plan
 2    except for the proceeds of taxes  imposed  by  the  Authority
 3    under  Section  4.03 which are allocated to the Service Board
 4    under Section 4.01.
 5        (5)  If the Board has  not  found  that  the  budget  and
 6    financial   plan  of  a  Service  Board  meets  the  criteria
 7    specified in clauses (i) through (vii) of subparagraph (2) of
 8    this paragraph (b), the Board shall, five working days  after
 9    the  start  of the Service Board's fiscal year adopt a budget
10    and financial plan meeting such  criteria  for  that  Service
11    Board.
12        (c)(1)  If  the  Board  shall at any time have received a
13    revised estimate, or revises any estimate the Board has made,
14    pursuant to this Section of the receipts to be  collected  by
15    the Authority which, in the judgment of the Board, requires a
16    change  in  the  estimates on which the budget of any Service
17    Board is based, the Board shall advise the  affected  Service
18    Board of such revised estimates, and such Service Board shall
19    within  30 days after receipt of such advice submit a revised
20    budget incorporating such revised estimates.  If the  revised
21    estimates  require,  in  the  judgment of the Board, that the
22    system generated revenues  recovery  ratio  of  one  or  more
23    Service  Boards be revised in order to allow the Authority to
24    meet its required ratio, the  Board  shall  advise  any  such
25    Service  Board  of  its  revised ratio and such Service Board
26    shall within 30 days after receipt of such  advice  submit  a
27    revised budget incorporating such revised estimates or ratio.
28        (2)  Each  Service  Board shall, within such period after
29    the end of each fiscal quarter as shall be specified  by  the
30    Board,  report  to  the Authority its financial condition and
31    results of operations and the financial condition and results
32    of operations of the public transportation  services  subject
33    to  its  jurisdiction, as at the end of and for such quarter.
34    If in the judgment of the Board such  condition  and  results
 
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 1    are not substantially in accordance with such Service Board's
 2    budget  for  such  period,  the  Board  shall  so advise such
 3    Service Board and such Service Board shall within the  period
 4    specified  by the Board submit a revised budget incorporating
 5    such results.
 6        (3)  If the Board shall determine that a  revised  budget
 7    submitted  by a Service Board pursuant to subparagraph (1) or
 8    (2)  of  this  paragraph  (c)  does  not  meet  the  criteria
 9    specified in clauses (ii) through (vii) of  subparagraph  (2)
10    of paragraph (b) of this Section, the Board shall not release
11    any monies to that Service Board except the proceeds of taxes
12    imposed  by  the Authority under Section 4.03 or 4.03.1 which
13    are allocated to the Service Board under  Section  4.01.   If
14    the Service Board submits a revised financial plan and budget
15    which  plan  and  budget  shows that the criteria will be met
16    within a four quarter period, the  Board  shall  continue  to
17    release funds to the Service Board.  The Board by a 9 vote of
18    its  then  Directors  may require a Service Board to submit a
19    revised financial  plan  and  budget  which  shows  that  the
20    criteria  will  be  met  in  a  time  period  less  than four
21    quarters.
22        (d)  All   budgets   and   financial   plans,   financial
23    statements, audits and other  information  presented  to  the
24    Authority  pursuant  to this Section or which may be required
25    by the Board to permit it  to  monitor  compliance  with  the
26    provisions of this Section shall be prepared and presented in
27    such  manner  and  frequency and in such detail as shall have
28    been prescribed by the Board, shall be prepared  on  both  an
29    accrual  and  cash  flow basis as specified by the Board, and
30    shall identify and describe the assumptions  and  projections
31    employed in the preparation thereof to the extent required by
32    the  Board.   Except  when  the  Board  adopts a budget and a
33    financial plan for a Service Board under paragraph (b)(5),  a
34    Service Board shall provide for such levels of transportation
 
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 1    services   and   fares   or  charges  therefor  as  it  deems
 2    appropriate and necessary in the preparation of a budget  and
 3    financial plan meeting the criteria set forth in clauses (ii)
 4    through  (vii)  of  subparagraph (2) of paragraph (b) of this
 5    Section.  The Board shall have access to  and  the  right  to
 6    examine  and  copy  all books, documents, papers, records, or
 7    other  source  data  of  a  Service  Board  relevant  to  any
 8    information submitted pursuant to this Section.
 9        (e)  Whenever this Section requires  the  Board  to  make
10    determinations   with   respect   to  estimates,  budgets  or
11    financial plans, or rules or regulations with respect thereto
12    such determinations shall be made upon the  affirmative  vote
13    of at least 9 of the then Directors and shall be incorporated
14    in  a  written  report  of the Board and such report shall be
15    submitted within 10 days after such determinations  are  made
16    to the Governor, the Mayor of Chicago (if such determinations
17    relate  to  the  Chicago  Transit Authority), and the Auditor
18    General of Illinois.
19    (Source: P.A. 91-239, eff. 1-1-00.)

20        Section 99.  Effective date.  This Act takes effect  upon
21    becoming law.