Illinois General Assembly - Full Text of HB0585
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Full Text of HB0585  97th General Assembly

HB0585enr 97TH GENERAL ASSEMBLY



 


 
HB0585 EnrolledLRB097 03412 RLJ 43449 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Regional Transportation Authority Act is
5amended by changing Sections 2.01c, 2.01d, 2.01e, 4.03.3, and
64.11 as follows:
 
7    (70 ILCS 3615/2.01c)
8    Sec. 2.01c. Innovation, Coordination, and Enhancement
9Fund.
10    (a) The Authority shall establish an Innovation,
11Coordination, and Enhancement Fund and each year deposit into
12the Fund an amount equal to $10,000,000 in 2008, and, each year
13thereafter, an amount equal to the amount deposited in the
14previous year increased or decreased by the percentage growth
15or decline in revenues received by the Authority from taxes
16imposed under Section 4.03 in the previous year the amounts
17directed by Section 4.03.3 of this Act. Amounts on deposit in
18such Fund and interest and other earnings on those amounts may
19be used by the Authority, upon the affirmative vote of 12 of
20its then Directors, and after a public participation process,
21for operating or capital grants or loans to Service Boards,
22transportation agencies, or units of local government that
23advance the goals and objectives identified by the Authority in

 

 

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

 

 

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1program require a subsequent vote of the Board.
2(Source: P.A. 95-708, eff. 1-18-08.)
 
3    (70 ILCS 3615/2.01d)
4    Sec. 2.01d. ADA Paratransit Fund. The Authority shall
5establish an ADA Paratransit Fund and, each year, deposit into
6that Fund the following amounts: (i) a base amount equal to
7$115,000,000 in 2012, and, each year thereafter, an amount
8equal to the final budgeted funding for ADA paratransit
9services for the current year, (ii) the amounts directed by
10Section 4.03.3 of this Act and any funds received from the
11State pursuant to appropriations for the purpose of funding ADA
12paratransit services, and (iii) any additional funds necessary
13to fund the budget or amended budget for ADA paratransit
14services adopted or approved by the Board for the current year.
15The amounts on deposit in the Fund and interest and other
16earnings on those amounts shall be used by the Authority to
17make grants to the Suburban Bus Board for ADA paratransit
18services provided pursuant to plans approved by the Authority
19under Section 2.30 of this Act. Funds received by the Suburban
20Bus Board from the Authority's ADA Paratransit Fund shall be
21used only to provide ADA paratransit services to individuals
22who are determined to be eligible for such services by the
23Authority under the Americans with Disabilities Act of 1990 and
24its implementing regulations. Revenues from and costs of
25services provided by the Suburban Bus Board with grants made

 

 

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1under this Section shall be included in the Annual Budget and
2Two-Year Financial Program of the Suburban Bus Board and shall
3be subject to all budgetary and financial requirements under
4this Act that apply to ADA paratransit services. Beginning in
52008, the Executive Director shall, no later than August 15 of
6each year, provide to the Board a written determination of the
7projected annual costs of ADA paratransit services that are
8required to be provided pursuant to the Americans with
9Disabilities Act of 1990 and its implementing regulations for
10the current year. The Authority shall conduct triennial
11financial, compliance, and performance audits of ADA
12paratransit services to assist in this determination.
13(Source: P.A. 95-708, eff. 1-18-08.)
 
14    (70 ILCS 3615/2.01e)
15    Sec. 2.01e. Suburban Community Mobility Fund. The
16Authority shall establish a Suburban Community Mobility Fund
17and, each year, deposit into that Fund an amount equal to
18$20,000,000 in 2008, and, each year thereafter, an amount equal
19to the amount deposited in the previous year increased or
20decreased by the percentage growth or decline in revenues
21received by the Authority from taxes imposed under Section 4.03
22in the previous year the amounts directed by Section 4.03.3 of
23this Act. The amounts on deposit in the Fund and interest and
24other earnings on those amounts shall be used by the Authority
25to make grants to the Suburban Bus Board for the purpose of

 

 

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1operating transit services, other than traditional fixed-route
2services, that enhance suburban mobility, including, but not
3limited to, demand-responsive transit services, ride sharing,
4van pooling, service coordination, centralized dispatching and
5call taking, reverse commuting, service restructuring, and bus
6rapid transit. Revenues from and costs of services provided by
7the Suburban Bus Board with moneys from the Suburban Community
8Mobility Fund shall be included in the Annual Budget and
9Two-Year Financial Program of the Suburban Bus Board and shall
10be subject to all budgetary and financial requirements under
11this Act.
12(Source: P.A. 95-708, eff. 1-18-08.)
 
13    (70 ILCS 3615/4.03.3)
14    Sec. 4.03.3. Distribution of Revenues. This Section
15applies only after the Department begins administering and
16enforcing an increased tax under Section 4.03(m) as authorized
17by this amendatory Act of the 95th General Assembly. After
18providing for payment of its obligations with respect to bonds
19and notes issued under the provisions of Section 4.04 and
20obligations related to those bonds and notes, the Authority
21shall disburse the remaining proceeds from taxes it has
22received from the Department of Revenue under this Article IV
23and the remaining proceeds it has received from the State under
24Section 4.09(a) as follows:
25    (a) With respect to taxes imposed by the Authority under

 

 

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1Section 4.03, after withholding 15% of 80% of the receipts from
2those taxes collected in Cook County at a rate of 1.25%, 15% of
375% of the receipts from those taxes collected in Cook County
4at the rate of 1%, 15% of one-half of the receipts from those
5taxes collected in DuPage, Kane, Lake, McHenry, and Will
6Counties, and 15% of money received by the Authority from the
7Regional Transportation Authority Occupation and Use Tax
8Replacement Fund or from the Regional Transportation Authority
9tax fund created in Section 4.03(n), the Board shall allocate
10the proceeds and money remaining to the Service Boards as
11follows:
12        (1) an amount equal to (i) 85% of 80% of the receipts
13    from those taxes collected within the City of Chicago at a
14    rate of 1.25%, (ii) 85% of 75% of the receipts from those
15    taxes collected in the City of Chicago at the rate of 1%,
16    and (iii) 85% of the money received by the Authority on
17    account of transfers to the Regional Transportation
18    Authority Occupation and Use Tax Replacement Fund or to the
19    Regional Transportation Authority tax fund created in
20    Section 4.03(n) from the County and Mass Transit District
21    Fund attributable to retail sales within the City of
22    Chicago shall be allocated to the Chicago Transit
23    Authority;
24        (2) an amount equal to (i) 85% of 80% of the receipts
25    from those taxes collected within Cook County outside of
26    the City of Chicago at a rate of 1.25%, (ii) 85% of 75% of

 

 

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1    the receipts from those taxes collected within Cook County
2    outside the City of Chicago at a rate of 1%, and (iii) 85%
3    of the money received by the Authority on account of
4    transfers to the Regional Transportation Authority
5    Occupation and Use Tax Replacement Fund or to the Regional
6    Transportation Authority tax fund created in Section
7    4.03(n) from the County and Mass Transit District Fund
8    attributable to retail sales within Cook County outside of
9    the City of Chicago shall be allocated 30% to the Chicago
10    Transit Authority, 55% to the Commuter Rail Board, and 15%
11    to the Suburban Bus Board; and
12        (3) an amount equal to 85% of one-half of the receipts
13    from the taxes collected within the Counties of DuPage,
14    Kane, Lake, McHenry, and Will shall be allocated 70% to the
15    Commuter Rail Board and 30% to the Suburban Bus Board.
16    (b) Moneys received by the Authority on account of
17transfers to the Regional Transportation Authority Occupation
18and Use Tax Replacement Fund from the State and Local Sales Tax
19Reform Fund shall be allocated among the Authority and the
20Service Boards as follows: 15% of such moneys shall be retained
21by the Authority and the remaining 85% shall be transferred to
22the Service Boards as soon as may be practicable after the
23Authority receives payment. Moneys which are distributable to
24the Service Boards pursuant to the preceding sentence shall be
25allocated among the Service Boards on the basis of each Service
26Board's distribution ratio. The term "distribution ratio"

 

 

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1means, for purposes of this subsection (b), the ratio of the
2total amount distributed to a Service Board pursuant to
3subsection (a) of Section 4.03.3 for the immediately preceding
4calendar year to the total amount distributed to all of the
5Service Boards pursuant to subsection (a) of Section 4.03.3 for
6the immediately preceding calendar year.
7    (c)(i) 20% of the receipts from those taxes collected in
8Cook County under Section 4.03 at the rate of 1.25%, (ii) 25%
9of the receipts from those taxes collected in Cook County under
10Section 4.03 at the rate of 1%, (iii) 50% of the receipts from
11those taxes collected in DuPage, Kane, Lake, McHenry, and Will
12Counties under Section 4.03, and (iv) amounts received from the
13State under Section 4.09 (a)(2) and items (i), (ii), and (iii)
14of Section 4.09 (a)(3) shall be allocated as follows: the
15amount required to be deposited into in 2008, $100,000,000
16shall be deposited in the ADA Paratransit Fund described in
17Section 2.01d, the amount required to be deposited into
18$20,000,000 shall be deposited in the Suburban Community
19Mobility Fund described in Section 2.01e, and the amount
20required to be deposited into $10,000,000 shall be deposited in
21the Innovation, Coordination and Enhancement Fund described in
22Section 2.01c, and the balance shall be allocated 48% to the
23Chicago Transit Authority, 39% to the Commuter Rail Board, and
2413% to the Suburban Bus Board; and in 2009 and each year
25thereafter, the amounts deposited in the ADA Paratransit Fund,
26the Suburban Community Mobility Fund and the Innovation,

 

 

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1Coordination and Enhancement Fund respectively shall equal the
2amount deposited in the previous year increased or decreased by
3the percentage growth or decline in revenues received by the
4Authority from taxes imposed under Section 4.03 in the previous
5year, and the balance shall be allocated 48% to the Chicago
6Transit Authority, 39% to the Commuter Rail Board and 13% to
7the Suburban Bus Board.
8    (d) Amounts received from the State under Section 4.09
9(a)(3)(iv) shall be distributed 100% to the Chicago Transit
10Authority.
11    (e) With respect to those taxes collected in DuPage, Kane,
12Lake, McHenry, and Will Counties and paid directly to the
13counties under Section 4.03, the County Board of each county
14shall use those amounts to fund operating and capital costs of
15public safety and public transportation services or facilities
16or to fund operating, capital, right-of-way, construction, and
17maintenance costs of other transportation purposes, including
18road, bridge, public safety, and transit purposes intended to
19improve mobility or reduce congestion in the county. The
20receipt of funding by such counties pursuant to this paragraph
21shall not be used as the basis for reducing any funds that such
22counties would otherwise have received from the State of
23Illinois, any agency or instrumentality thereof, the
24Authority, or the Service Boards.
25    (f) The Authority by ordinance adopted by 12 of its then
26Directors shall apportion to the Service Boards funds provided

 

 

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1by the State of Illinois under Section 4.09(a)(1) as it shall
2determine and shall make payment of the amounts to each Service
3Board as soon as may be practicable upon their receipt provided
4the Authority has adopted a balanced budget as required by
5Section 4.01 and further provided the Service Board is in
6compliance with the requirements in Section 4.11.
7    (g) Beginning January 1, 2009, before making any payments,
8transfers, or expenditures under this Section to a Service
9Board, the Authority must first comply with Section 4.02a or
104.02b of this Act, whichever may be applicable.
11(Source: P.A. 95-708, eff. 1-18-08.)
 
12    (70 ILCS 3615/4.11)  (from Ch. 111 2/3, par. 704.11)
13    Sec. 4.11. Budget Review Powers.
14    (a) Based upon estimates which shall be given to the
15Authority by the Director of the Governor's Office of
16Management and Budget (formerly Bureau of the Budget) of the
17receipts to be received by the Authority from the taxes imposed
18by the Authority and the authorized estimates of amounts to be
19available from State and other sources to the Service Boards,
20and the times at which such receipts and amounts will be
21available, the Board shall, not later than the next preceding
22September 15th prior to the beginning of the Authority's next
23fiscal year, advise each Service Board of the amounts estimated
24by the Board to be available for such Service Board during such
25fiscal year and the two following fiscal years and the times at

 

 

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1which such amounts will be available. The Board shall, at the
2same time, also advise each Service Board of its required
3system generated revenues recovery ratio for the next fiscal
4year which shall be the percentage of the aggregate costs of
5providing public transportation by or under jurisdiction of
6that Service Board which must be recovered from system
7generated revenues. The Board shall, at the same time, consider
8the written determination of the Executive Director, made
9pursuant to Section 2.01d, of the costs of ADA paratransit
10services that are required to be provided under the federal
11Americans with Disabilities Act of 1990 and its implementing
12regulations, and shall amend the current year budgets of the
13Authority and the Service Boards to provide for additional
14funding for the provision of ADA paratransit services, if
15needed. The Board shall, at the same time, beginning with the
162007 fiscal year, also advise each Service Board that provides
17ADA paratransit services of its required system generated ADA
18paratransit services revenue recovery ratio for the next fiscal
19year which shall be the percentage of the aggregate costs of
20providing ADA paratransit services by or under jurisdiction of
21that Service Board which must be recovered from fares charged
22for such services, except that such required system generated
23ADA paratransit services revenue recovery ratio shall not
24exceed the minimum percentage established pursuant to Section
254.01(b)(ii) of this Act. In determining a Service Board's
26system generated revenue recovery ratio, the Board shall

 

 

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

 

 

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1(i) be prepared in the format, follow the financial and
2budgetary practices, and be based on any assumptions and
3projections required by the Authority and (ii) not project or
4assume a receipt of revenues from the Authority in amounts
5greater than those set forth in the estimates provided by the
6Authority pursuant to subsection (a) of this Section.
7    (2) The Board shall review the proposed budget and two-year
8financial plan submitted by each Service Board. The Board shall
9approve the budget and two-year financial plan of a Service
10Board if:
11        (i) such budget and plan show a balance between (A)
12    anticipated revenues from all sources including operating
13    subsidies and (B) the costs of providing the services
14    specified and of funding any operating deficits or
15    encumbrances incurred in prior periods, including
16    provision for payment when due of principal and interest on
17    outstanding indebtedness;
18        (ii) such budget and plan show cash balances including
19    the proceeds of any anticipated cash flow borrowing
20    sufficient to pay with reasonable promptness all costs and
21    expenses as incurred;
22        (iii) such budget and plan provide for a level of fares
23    or charges and operating or administrative costs for the
24    public transportation provided by or subject to the
25    jurisdiction of such Service Board sufficient to allow the
26    Service Board to meet its required system generated revenue

 

 

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1    recovery ratio and, beginning with the 2007 fiscal year,
2    system generated ADA paratransit services revenue recovery
3    ratio;
4        (iv) such budget and plan are based upon and employ
5    assumptions and projections which are reasonable and
6    prudent;
7        (v) such budget and plan have been prepared in
8    accordance with sound financial practices as determined by
9    the Board;
10        (vi) such budget and plan meet such other financial,
11    budgetary, or fiscal requirements that the Board may by
12    rule or regulation establish; and
13        (vii) such budget and plan are consistent with the
14    goals and objectives adopted by the Authority in the
15    Strategic Plan.
16    (3) (Blank).
17    (4) Unless the Board by an affirmative vote of 12 of the
18then Directors determines that the budget and financial plan of
19a Service Board meets the criteria specified in clauses (i)
20through (vii) of subparagraph (2) of this paragraph (b), the
21Board shall withhold from that Service Board 25% of the cash
22proceeds of taxes imposed by the Authority under Section 4.03
23and Section 4.03.1 and received after February 1 and 25% of the
24amounts transferred to the Authority from the Public
25Transportation Fund under Section 4.09(a) (but not including
26Section 4.09(a)(3)(iv)) after February 1 that the Board has

 

 

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1estimated to be available to that Service Board under Section
24.11(a). Such funding shall be released to the Service Board
3only upon approval of a budget and financial plan under this
4Section or adoption of a budget and financial plan on behalf of
5the Service Board by the Authority.
6    (5) If the Board has not found that the budget and
7financial plan of a Service Board meets the criteria specified
8in clauses (i) through (vii) of subparagraph (2) of this
9paragraph (b), the Board, by the affirmative vote of at least
1012 of its then Directors, shall adopt a budget and financial
11plan meeting such criteria for that Service Board.
12    (c)(1) If the Board shall at any time have received a
13revised estimate, or revises any estimate the Board has made,
14pursuant to this Section of the receipts to be collected by the
15Authority which, in the judgment of the Board, requires a
16change in the estimates on which the budget of any Service
17Board is based, the Board shall advise the affected Service
18Board of such revised estimates, and such Service Board shall
19within 30 days after receipt of such advice submit a revised
20budget incorporating such revised estimates. If the revised
21estimates require, in the judgment of the Board, that the
22system generated revenues recovery ratio of one or more Service
23Boards be revised in order to allow the Authority to meet its
24required ratio, the Board shall advise any such Service Board
25of its revised ratio and such Service Board shall within 30
26days after receipt of such advice submit a revised budget

 

 

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1incorporating such revised estimates or ratio.
2    (2) Each Service Board shall, within such period after the
3end of each fiscal quarter as shall be specified by the Board,
4report to the Authority its financial condition and results of
5operations and the financial condition and results of
6operations of the public transportation services subject to its
7jurisdiction, as at the end of and for such quarter. If in the
8judgment of the Board such condition and results are not
9substantially in accordance with such Service Board's budget
10for such period, the Board shall so advise such Service Board
11and such Service Board shall within the period specified by the
12Board submit a revised budget incorporating such results.
13    (3) If the Board shall determine that a revised budget
14submitted by a Service Board pursuant to subparagraph (1) or
15(2) of this paragraph (c) does not meet the criteria specified
16in clauses (i) through (vii) of subparagraph (2) of paragraph
17(b) of this Section, the Board shall withhold from that Service
18Board 25% of the cash proceeds of taxes imposed by the
19Authority under Section 4.03 or 4.03.1 and received by the
20Authority after February 1 and 25% of the amounts transferred
21to the Authority from the Public Transportation Fund under
22Section 4.09(a) (but not including Section 4.09(a)(3)(iv))
23after February 1 that the Board has estimated to be available
24to that Service Board under Section 4.11(a). If the Service
25Board submits a revised financial plan and budget which plan
26and budget shows that the criteria will be met within a four

 

 

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1quarter period, the Board shall release any such withheld funds
2to the Service Board. The Board by the affirmative vote of at
3least 12 of its then Directors may require a Service Board to
4submit a revised financial plan and budget which shows that the
5criteria will be met in a time period less than four quarters.
6    (d) All budgets and financial plans, financial statements,
7audits and other information presented to the Authority
8pursuant to this Section or which may be required by the Board
9to permit it to monitor compliance with the provisions of this
10Section shall be prepared and presented in such manner and
11frequency and in such detail as shall have been prescribed by
12the Board, shall be prepared on both an accrual and cash flow
13basis as specified by the Board, shall present such information
14as the Authority shall prescribe that fairly presents the
15condition of any pension plan or trust for health care benefits
16with respect to retirees established by the Service Board and
17describes the plans of the Service Board to meet the
18requirements of Sections 4.02a and 4.02b, and shall identify
19and describe the assumptions and projections employed in the
20preparation thereof to the extent required by the Board. If the
21Executive Director certifies that a Service Board has not
22presented its budget and two-year financial plan in conformity
23with the rules adopted by the Authority under the provisions of
24Section 4.01(f) and this subsection (d), and such certification
25is accepted by the affirmative vote of at least 12 of the then
26Directors of the Authority, the Authority shall not distribute

 

 

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1to that Service Board any funds for operating purposes in
2excess of the amounts distributed for such purposes to the
3Service Board in the previous fiscal year. Except when the
4Board adopts a budget and a financial plan for a Service Board
5under paragraph (b)(5), a Service Board shall provide for such
6levels of transportation services and fares or charges therefor
7as it deems appropriate and necessary in the preparation of a
8budget and financial plan meeting the criteria set forth in
9clauses (i) through (vii) of subparagraph (2) of paragraph (b)
10of this Section. The Authority shall have access to and the
11right to examine and copy all books, documents, papers,
12records, or other source data of a Service Board relevant to
13any information submitted pursuant to this Section.
14    (e) Whenever this Section requires the Board to make
15determinations with respect to estimates, budgets or financial
16plans, or rules or regulations with respect thereto such
17determinations shall be made upon the affirmative vote of at
18least 12 of the then Directors and shall be incorporated in a
19written report of the Board and such report shall be submitted
20within 10 days after such determinations are made to the
21Governor, the Mayor of Chicago (if such determinations relate
22to the Chicago Transit Authority), and the Auditor General of
23Illinois.
24(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.