Full Text of HB1389 98th General Assembly
HB1389eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 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 Section 4.04 as follows: | 6 | | (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04) | 7 | | Sec. 4.04. Issuance and Pledge of Bonds and Notes. | 8 | | (a) The Authority shall have the continuing power to borrow | 9 | | money and to
issue its negotiable bonds or notes as provided in | 10 | | this Section. Unless
otherwise indicated in this Section, the | 11 | | term "notes" also includes bond
anticipation notes, which are | 12 | | notes which by their terms provide for
their payment from the | 13 | | proceeds of bonds thereafter to be issued. Bonds
or notes of | 14 | | the Authority may be issued for any or all of the following
| 15 | | purposes: to pay costs to the Authority or a Service Board of | 16 | | constructing
or acquiring any public transportation facilities | 17 | | (including funds and
rights relating thereto, as provided in | 18 | | Section 2.05 of this Act); to repay
advances to the Authority | 19 | | or a Service Board made for such purposes; to pay
other | 20 | | expenses of the Authority or a Service Board incident to or | 21 | | incurred
in connection with such construction or acquisition; | 22 | | to provide funds for
any transportation agency to pay principal
| 23 | | of or interest or redemption premium on any bonds or notes, |
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| 1 | | whether
as such amounts become due or by earlier redemption, | 2 | | issued prior to the
date of this amendatory Act by such | 3 | | transportation agency to construct or
acquire public | 4 | | transportation facilities or to provide funds to purchase
such | 5 | | bonds or notes; and to provide funds for any transportation | 6 | | agency to
construct or acquire any public transportation | 7 | | facilities, to repay
advances made for such purposes, and to | 8 | | pay other expenses incident to
or incurred in connection with | 9 | | such construction or acquisition; and to
provide funds for | 10 | | payment of obligations, including the funding of reserves,
| 11 | | under any self-insurance plan or joint self-insurance pool or | 12 | | entity. | 13 | | In addition to any other borrowing as may be authorized by | 14 | | this Section,
the Authority may issue its notes, from time to | 15 | | time, in anticipation of
tax receipts of the Authority or of | 16 | | other
revenues or receipts of the Authority, in order to | 17 | | provide money for the
Authority or the Service Boards to cover | 18 | | any cash flow deficit which
the Authority or a Service Board | 19 | | anticipates incurring. Any such notes
are referred to in this | 20 | | Section as "Working Cash Notes". No Working
Cash Notes shall be | 21 | | issued for a term of longer than 24
months.
Proceeds of Working | 22 | | Cash Notes may be used to pay day to day operating
expenses of | 23 | | the Authority or the Service Boards, consisting of wages,
| 24 | | salaries and fringe benefits, professional and technical | 25 | | services
(including legal, audit, engineering and other | 26 | | consulting services), office
rental, furniture, fixtures and |
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| 1 | | equipment, insurance premiums, claims for
self-insured amounts | 2 | | under insurance policies, public utility
obligations for | 3 | | telephone, light, heat and similar items, travel expenses,
| 4 | | office supplies, postage, dues, subscriptions, public hearings | 5 | | and information
expenses, fuel purchases, and payments of | 6 | | grants and payments under purchase
of service agreements for | 7 | | operations of transportation agencies, prior to
the receipt by | 8 | | the Authority or a Service Board from time to time of
funds for | 9 | | paying such expenses. In addition to any Working Cash Notes
| 10 | | that the Board of the Authority may determine to issue, the | 11 | | Suburban Bus
Board, the Commuter Rail Board or the Board of the | 12 | | Chicago Transit Authority
may demand and direct that the | 13 | | Authority issue its Working Cash Notes in
such amounts and | 14 | | having such maturities as the Service Board may determine. | 15 | | Notwithstanding any other provision of this Act, any | 16 | | amounts necessary to
pay principal of and interest on any
| 17 | | Working Cash Notes issued at the demand
and direction of a | 18 | | Service Board or any Working Cash Notes the proceeds of
which | 19 | | were used for the direct benefit of a Service Board or any | 20 | | other
Bonds or Notes of the Authority the proceeds of which | 21 | | were used for the
direct benefit of a Service Board shall | 22 | | constitute a reduction of the amount
of any other funds | 23 | | provided by the Authority to that Service
Board. The Authority | 24 | | shall, after deducting any costs of issuance, tender
the net | 25 | | proceeds of any Working Cash Notes issued at the demand and
| 26 | | direction of a Service Board to such Service Board as soon as |
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| 1 | | may be
practicable after the proceeds are received. The | 2 | | Authority may also issue
notes or bonds to pay, refund or | 3 | | redeem any of its notes and bonds,
including to pay redemption | 4 | | premiums or accrued interest on such bonds or
notes being | 5 | | renewed, paid or refunded, and other costs in connection
| 6 | | therewith. The Authority may also utilize the proceeds of any | 7 | | such bonds or
notes to pay the legal, financial, administrative | 8 | | and other expenses of
such authorization, issuance, sale or | 9 | | delivery of bonds or notes or to
provide or increase a debt | 10 | | service reserve fund with respect to any or all
of its bonds or | 11 | | notes. The Authority may also issue and deliver
its bonds or | 12 | | notes in exchange for any public transportation facilities,
| 13 | | (including funds and rights relating thereto, as provided in | 14 | | Section
2.05 of this Act) or in exchange for outstanding bonds | 15 | | or notes of the
Authority, including any accrued interest or | 16 | | redemption premium thereon,
without advertising or submitting | 17 | | such notes or bonds for public bidding. | 18 | | (b) The ordinance providing for the issuance of any such | 19 | | bonds or
notes shall fix the date or dates of maturity, the | 20 | | dates on which
interest is payable, any sinking fund account or | 21 | | reserve fund account
provisions and all other details of such | 22 | | bonds or notes and may provide
for such covenants or agreements | 23 | | necessary or desirable with regard to
the issue, sale and | 24 | | security of such bonds or notes. The rate or rates of
interest | 25 | | on its bonds or notes may be fixed or variable and the | 26 | | Authority
shall determine or provide for the determination of |
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| 1 | | the rate or
rates of interest of its bonds or notes
issued | 2 | | under this Act in an ordinance adopted by the Authority prior | 3 | | to
the issuance thereof, none of which rates of interest shall | 4 | | exceed
that permitted in the Bond Authorization Act. Interest | 5 | | may be payable at such times as are provided for
by the Board. | 6 | | Bonds and notes issued under this Section may
be issued as | 7 | | serial or term obligations, shall be of such denomination
or | 8 | | denominations and form, including interest coupons to be | 9 | | attached
thereto, be executed in such manner, shall be payable | 10 | | at such place or
places and bear such date as the Authority | 11 | | shall fix by the ordinance
authorizing such bond or note and | 12 | | shall mature at such time or times,
within a period not to | 13 | | exceed forty years from the date of issue, and
may be | 14 | | redeemable prior to maturity with or without premium, at the
| 15 | | option of the Authority, upon such terms and conditions as the | 16 | | Authority
shall fix by the ordinance authorizing the issuance | 17 | | of such bonds or
notes. No bond anticipation note or any | 18 | | renewal thereof shall mature at
any time or times exceeding 5 | 19 | | years from the date of the first issuance
of such note. The | 20 | | Authority may provide for the registration of bonds or
notes in | 21 | | the name of the owner as to the principal alone or as to both
| 22 | | principal and interest, upon such terms and conditions as the | 23 | | Authority
may determine. The ordinance authorizing bonds or | 24 | | notes may provide for
the exchange of such bonds or notes which | 25 | | are fully registered, as to
both principal and interest, with | 26 | | bonds or notes which are registerable
as to principal only. All |
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| 1 | | bonds or notes issued under this Section by
the Authority other | 2 | | than those issued in exchange for property or for
bonds or | 3 | | notes of the Authority shall be sold at a price which may be at
| 4 | | a premium or discount but such that the interest cost | 5 | | (excluding any
redemption premium) to the Authority of the | 6 | | proceeds of an issue of such
bonds or notes, computed to stated | 7 | | maturity according to standard tables
of bond values, shall not | 8 | | exceed that permitted in the Bond Authorization
Act. The | 9 | | Authority shall notify
the
Governor's Office of Management and | 10 | | Budget and the State Comptroller at least 30 days
before any | 11 | | bond sale and shall file with the
Governor's Office of | 12 | | Management and Budget and the
State Comptroller a certified | 13 | | copy of any ordinance authorizing the issuance
of bonds at or | 14 | | before the issuance of the bonds.
After December 31, 1994, any | 15 | | such bonds or notes shall be sold
to the highest and best | 16 | | bidder on sealed bids as the Authority shall deem.
As such | 17 | | bonds or notes are to be sold the Authority shall advertise for
| 18 | | proposals to purchase the bonds or notes which advertisement | 19 | | shall be published
at least once in a daily newspaper of | 20 | | general circulation published in the
metropolitan region at | 21 | | least 10 days before the time set for the submission
of bids. | 22 | | The Authority shall have the right to reject any or all bids.
| 23 | | Notwithstanding any other provisions of this Section, Working | 24 | | Cash Notes or
bonds or notes to provide funds for | 25 | | self-insurance or a joint self-insurance
pool or entity may be | 26 | | sold either upon competitive bidding or by negotiated
sale
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| 1 | | (without any requirement of publication of intention to | 2 | | negotiate the sale
of such Notes), as the Board shall determine | 3 | | by ordinance adopted with the
affirmative votes of at least 9
| 4 | | Directors. In case any officer whose signature
appears on any | 5 | | bonds, notes or coupons authorized pursuant to this
Section | 6 | | shall cease to be such officer before delivery of such bonds or
| 7 | | notes, such signature shall nevertheless be valid and | 8 | | sufficient for all
purposes, the same as if such officer had | 9 | | remained in office until such
delivery. Neither the Directors | 10 | | of the Authority nor any person
executing any bonds or notes | 11 | | thereof shall be liable personally on any
such bonds or notes | 12 | | or coupons by reason of the issuance thereof. | 13 | | (c) All bonds or notes of the Authority issued pursuant to | 14 | | this Section
shall be general obligations
of the Authority to | 15 | | which shall be pledged the full faith and credit of the
| 16 | | Authority, as provided in this Section. Such bonds or notes
| 17 | | shall be secured
as provided in the authorizing ordinance, | 18 | | which may, notwithstanding any other
provision of this Act, | 19 | | include in addition to any other security, a specific
pledge or | 20 | | assignment of and lien on or security interest in any or all | 21 | | tax
receipts of the Authority and on any or all other revenues | 22 | | or moneys of the
Authority from whatever source, which may by | 23 | | law be utilized for debt
service purposes and a specific pledge | 24 | | or assignment of and lien on or security
interest in any funds | 25 | | or accounts established or provided for by the ordinance
of the | 26 | | Authority authorizing the issuance of such bonds or notes. Any |
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| 1 | | such
pledge, assignment, lien or security interest for the | 2 | | benefit of holders of
bonds or notes of the Authority shall be | 3 | | valid and binding from the time the
bonds or notes are issued | 4 | | without any physical delivery or further act
and shall be valid | 5 | | and binding as against and prior to the claims of all
other | 6 | | parties having claims of any kind against the Authority or any | 7 | | other
person irrespective of whether such other parties have | 8 | | notice of such pledge,
assignment, lien or security interest. | 9 | | The obligations of the Authority
incurred pursuant to this | 10 | | Section shall be superior to and have priority over
any other | 11 | | obligations of the Authority. | 12 | | The Authority may provide in the
ordinance authorizing the | 13 | | issuance of any bonds or notes issued pursuant to
this Section | 14 | | for the creation of, deposits in, and regulation and | 15 | | disposition
of sinking fund or reserve accounts relating to | 16 | | such bonds or notes. The
ordinance authorizing the issuance of | 17 | | any bonds or notes pursuant to this
Section may contain | 18 | | provisions as part of the contract with the holders
of the | 19 | | bonds or notes, for the creation of a separate fund to provide
| 20 | | for the payment of principal and interest on such bonds or | 21 | | notes
and for the deposit in such fund from any or all the tax | 22 | | receipts of the
Authority and from any or all such other moneys | 23 | | or revenues of the
Authority from whatever source which may by | 24 | | law be utilized for debt
service purposes, all as provided in | 25 | | such ordinance, of amounts to meet
the debt service | 26 | | requirements on such bonds or notes, including
principal and |
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| 1 | | interest, and any sinking fund or reserve fund account
| 2 | | requirements as may be provided by such ordinance, and all | 3 | | expenses
incident to or in connection with such fund and | 4 | | accounts or the payment
of such bonds or notes.
Such ordinance | 5 | | may also provide limitations on the issuance of additional
| 6 | | bonds or notes of the Authority. No such bonds or notes of the | 7 | | Authority
shall constitute a debt of the State of Illinois. | 8 | | Nothing in this Act shall
be construed to enable the Authority | 9 | | to impose any ad valorem tax on property. | 10 | | (d) The ordinance of the Authority authorizing the issuance | 11 | | of any bonds
or notes may provide additional security for such | 12 | | bonds or notes by providing
for appointment of a corporate | 13 | | trustee (which may be any trust company or
bank having the | 14 | | powers of a trust company within the state) with respect
to | 15 | | such bonds or notes. The ordinance shall prescribe the rights, | 16 | | duties
and powers of the trustee to be exercised for the | 17 | | benefit of the Authority
and the protection of the holders of | 18 | | such bonds or notes. The ordinance
may provide for the trustee | 19 | | to hold in trust, invest and use amounts in
funds and accounts | 20 | | created as provided by the ordinance with respect to
the bonds | 21 | | or notes. The ordinance may provide for the assignment and | 22 | | direct
payment to the trustee of any or all amounts produced | 23 | | from the sources
provided in Section 4.03 and Section 4.09 of | 24 | | this Act and provided in Section 6z-17 of "An Act
in relation | 25 | | to State finance", approved June 10, 1919, as amended.
Upon | 26 | | receipt of notice of any such assignment, the Department of |
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| 1 | | Revenue and
the Comptroller of the State of Illinois shall | 2 | | thereafter, notwithstanding the
provisions of Section 4.03 and | 3 | | Section 4.09 of this Act and Section 6z-17 of "An Act in | 4 | | relation
to State finance", approved June 10, 1919, as amended, | 5 | | provide for such
assigned amounts to be paid directly to the | 6 | | trustee instead of the Authority,
all in accordance with the | 7 | | terms of the ordinance making the assignment. The
ordinance | 8 | | shall provide that
amounts so paid to the trustee which are not | 9 | | required to be deposited, held
or invested in funds and | 10 | | accounts created by the ordinance with respect
to bonds or | 11 | | notes or used for paying bonds or notes to be paid by the | 12 | | trustee
to the Authority. | 13 | | (e) Any bonds or notes of the Authority issued pursuant to | 14 | | this
Section shall constitute a contract between the Authority | 15 | | and the
holders from time to time of such bonds or notes. In | 16 | | issuing any bond or
note, the Authority may include in the | 17 | | ordinance authorizing such issue
a covenant as part of the | 18 | | contract with the holders of the bonds or
notes, that as long | 19 | | as such obligations are outstanding, it shall make
such | 20 | | deposits, as provided in paragraph (c) of this Section. It may | 21 | | also
so covenant that it shall impose and continue to impose | 22 | | taxes, as
provided in Section 4.03 of this Act and in addition | 23 | | thereto as
subsequently authorized by law, sufficient to make | 24 | | such deposits and pay
the principal and interest and to meet | 25 | | other debt service requirements
of such bonds or notes as they | 26 | | become due. A certified copy of the
ordinance authorizing the |
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| 1 | | issuance of any such obligations shall be
filed at or prior to | 2 | | the issuance of such obligations with the Comptroller
of the | 3 | | State of Illinois and the Illinois Department of Revenue. | 4 | | (f) The State of Illinois pledges to and agrees with the | 5 | | holders of
the bonds and notes of the Authority issued pursuant | 6 | | to this Section
that the State will not limit or alter the | 7 | | rights and powers vested in
the Authority by this Act so as to | 8 | | impair the terms of any contract made
by the Authority with | 9 | | such holders or in any way impair the rights and
remedies of | 10 | | such holders until such bonds and notes, together with
interest | 11 | | thereon, with interest on any unpaid installments of interest,
| 12 | | and all costs and expenses in connection with any action or | 13 | | proceedings
by or on behalf of such holders, are fully met and | 14 | | discharged. In
addition, the State pledges to and agrees with | 15 | | the holders of the bonds
and notes of the Authority issued | 16 | | pursuant to this Section that the
State will not limit or alter | 17 | | the basis on which State funds are to be
paid to the Authority | 18 | | as provided in this Act, or the use of such funds,
so as to | 19 | | impair the terms of any such contract. The Authority is
| 20 | | authorized to include these pledges and agreements of the State | 21 | | in any
contract with the holders of bonds or notes issued | 22 | | pursuant to this
Section. | 23 | | (g)(1) Except as provided in subdivisions (g)(2) and (g)(3) | 24 | | of Section
4.04 of this Act, the Authority shall not at any | 25 | | time issue, sell or deliver
any bonds or notes (other than | 26 | | Working Cash Notes) pursuant to this Section
4.04 which will |
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| 1 | | cause
it to have issued and outstanding at any time in excess | 2 | | of $800,000,000 of such
bonds and notes (other than Working | 3 | | Cash Notes).
The Authority shall not issue, sell, or deliver | 4 | | any Working Cash Notes pursuant to this Section that will cause | 5 | | it to have issued and outstanding at any time in excess of | 6 | | $100,000,000. However, the Authority may issue, sell, and | 7 | | deliver additional Working Cash Notes before July 1, 2016 2014 | 8 | | that are over and above and in addition to the $100,000,000 | 9 | | authorization such that the outstanding amount of these | 10 | | additional Working Cash Notes does not exceed at any time | 11 | | $300,000,000.
Bonds or notes which are being paid or retired by
| 12 | | such issuance, sale or delivery of bonds or notes, and bonds or | 13 | | notes for
which sufficient funds have been deposited with the | 14 | | paying agency of
such bonds or notes to provide for payment of | 15 | | principal and interest
thereon or to provide for the redemption | 16 | | thereof, all pursuant to the
ordinance authorizing the issuance | 17 | | of such bonds or notes, shall not be
considered to be | 18 | | outstanding for the purposes of this subsection. | 19 | | (2) In addition to the authority provided by paragraphs
(1) | 20 | | and (3), the Authority is authorized to issue, sell and deliver | 21 | | bonds
or notes for Strategic Capital Improvement Projects | 22 | | approved pursuant to
Section 4.13 as follows: | 23 | | $100,000,000 is authorized to be issued on or after | 24 | | January 1, 1990; | 25 | | an additional $100,000,000 is authorized to be issued | 26 | | on or after
January 1, 1991; |
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| 1 | | an additional $100,000,000 is authorized to be issued | 2 | | on or after
January 1, 1992; | 3 | | an additional $100,000,000 is authorized to be issued | 4 | | on or after
January 1, 1993; | 5 | | an additional $100,000,000 is authorized to be issued | 6 | | on or after
January 1, 1994; and | 7 | | the aggregate total authorization of bonds and notes | 8 | | for Strategic
Capital Improvement Projects as of January 1, | 9 | | 1994, shall be $500,000,000. | 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
under | 14 | | this subdivision (g)(2), provided that no such refunding bond | 15 | | or note
shall mature later than the final maturity date of the | 16 | | series of bonds or notes
being refunded, and provided further | 17 | | that the debt service requirements for
such refunding bonds or | 18 | | notes in the current or any future fiscal year shall
not exceed | 19 | | the debt service requirements for that year on the refunded | 20 | | bonds
or notes. | 21 | | (3) In addition to the authority provided by paragraphs (1) | 22 | | and (2),
the Authority is authorized to issue, sell, and | 23 | | deliver bonds or notes for
Strategic Capital Improvement | 24 | | Projects approved pursuant to Section 4.13 as
follows: | 25 | | $260,000,000 is authorized to be issued on or after | 26 | | January 1, 2000; |
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| 1 | | an additional $260,000,000 is authorized to be issued | 2 | | on or after
January 1, 2001; | 3 | | an additional $260,000,000 is authorized to be issued | 4 | | on or after
January 1, 2002; | 5 | | an additional $260,000,000 is authorized to be issued | 6 | | on or after
January 1, 2003; | 7 | | an additional $260,000,000 is authorized to be issued | 8 | | on or after
January 1, 2004; and | 9 | | the aggregate total authorization of bonds and notes | 10 | | for Strategic
Capital Improvement Projects pursuant to | 11 | | this paragraph (3) as of
January 1, 2004 shall be | 12 | | $1,300,000,000. | 13 | | The Authority is also authorized to issue, sell, and | 14 | | deliver bonds or notes
in such amounts as are necessary to | 15 | | provide for the refunding or advance
refunding of bonds or | 16 | | notes issued for Strategic Capital Improvement projects
under | 17 | | this subdivision (g)(3), provided that no such refunding bond | 18 | | or note
shall mature later than the final maturity date of the | 19 | | series of bonds or notes
being refunded, and provided further | 20 | | that the debt service requirements for
such refunding bonds or | 21 | | notes in the current or any future fiscal year shall
not exceed | 22 | | the debt service requirements for that year on the refunded | 23 | | bonds or
notes. | 24 | | (h) The Authority, subject to the terms of any agreements | 25 | | with noteholders
or bond holders as may then exist, shall have | 26 | | power, out of any funds
available therefor, to purchase notes |
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| 1 | | or bonds of the Authority, which
shall thereupon be cancelled. | 2 | | (i) In addition to any other authority granted by law, the | 3 | | State Treasurer
may, with the approval of the Governor, invest | 4 | | or reinvest, at a price not
to exceed par, any State money in | 5 | | the State Treasury which is not needed
for current expenditures | 6 | | due or about to become due in Working Cash Notes. | 7 | | (Source: P.A. 96-906, eff. 6-7-10; 97-769, eff. 7-10-12.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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