Full Text of HB5752 98th General Assembly
HB5752 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5752 Introduced , by Rep. Michael W. Tryon SYNOPSIS AS INTRODUCED: |
| 70 ILCS 3615/4.01 | from Ch. 111 2/3, par. 704.01 |
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Amends the Regional Transportation Authority Act. Requires each Service Board to furnish to the Board access to its financial information systems and other documents, papers or records that the Board may from time to time require, including, but not limited to, audits and draft reports. Provides that the Board may examine the financial information systems and other documents, papers, or records, and the Service Board shall comply with any such request made by the Board within 30 days or an extended time provided by the Board.
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| | A BILL FOR |
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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 4.01 as follows:
| 6 | | (70 ILCS 3615/4.01) (from Ch. 111 2/3, par. 704.01)
| 7 | | Sec. 4.01. Budget and Program.
| 8 | | (a) The Board shall control the finances
of the Authority. | 9 | | It shall by ordinance adopted by the affirmative vote of at | 10 | | least 12 of its then Directors (i) appropriate money to perform | 11 | | the
Authority's purposes and provide for payment of debts and | 12 | | expenses of
the Authority, (ii) take action with respect to the | 13 | | budget and two-year financial plan of each Service Board, as | 14 | | provided in Section 4.11, and (iii) adopt an Annual Budget and | 15 | | Two-Year Financial Plan for the Authority that includes the | 16 | | annual budget and two-year financial plan of each Service Board | 17 | | that has been approved by the Authority. The Annual Budget and | 18 | | Two-Year Financial Plan
shall contain a statement
of the funds | 19 | | estimated to be on hand for the Authority and each Service | 20 | | Board at the beginning of the fiscal
year, the funds estimated | 21 | | to be received from all sources for such year, the estimated | 22 | | expenses and obligations of the Authority and each Service | 23 | | Board for all purposes, including expenses for contributions to |
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| 1 | | be made with respect to pension and other employee benefits,
| 2 | | and the funds estimated to be on hand at the end of such year. | 3 | | The fiscal year of the Authority and each Service Board shall
| 4 | | begin on January 1st and end on the succeeding December 31st.
| 5 | | By July 1st of each year the Director of the
Illinois
| 6 | | Governor's Office of Management and Budget (formerly Bureau of | 7 | | the
Budget) shall submit
to the Authority an estimate of | 8 | | revenues for the next fiscal year of the Authority to be
| 9 | | collected from the taxes imposed by the Authority and the | 10 | | amounts to be
available in the Public Transportation Fund and | 11 | | the Regional Transportation
Authority Occupation and Use Tax | 12 | | Replacement Fund and the amounts otherwise to be appropriated | 13 | | by the State to the Authority for its purposes. The Authority | 14 | | shall file a copy of its Annual Budget and Two-Year Financial | 15 | | Plan with
the
General Assembly and the Governor after its | 16 | | adoption. Before the proposed Annual Budget and Two-Year | 17 | | Financial Plan
is adopted, the Authority
shall hold at least | 18 | | one public hearing thereon
in the metropolitan region, and | 19 | | shall meet
with the county board or its designee of
each of the | 20 | | several counties in the metropolitan region. After conducting
| 21 | | such hearings and holding such meetings and after making such | 22 | | changes
in the proposed Annual Budget and Two-Year Financial | 23 | | Plan
as the Board deems appropriate, the
Board shall adopt its | 24 | | annual appropriation and Annual Budget and Two-Year Financial | 25 | | Plan
ordinance. The ordinance may be adopted
only upon the | 26 | | affirmative votes of 12
of its then Directors. The
ordinance |
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| 1 | | shall appropriate such sums of money as are deemed necessary
to | 2 | | defray all necessary expenses and obligations of the Authority,
| 3 | | specifying purposes and the objects or programs for which | 4 | | appropriations
are made and the amount appropriated for each | 5 | | object or program.
Additional appropriations, transfers | 6 | | between items and other changes in
such ordinance may be made | 7 | | from time to time by the Board upon the
affirmative votes of 12
| 8 | | of its then Directors.
| 9 | | (b) The Annual Budget and Two-Year Financial Plan
shall | 10 | | show a balance between anticipated revenues from
all sources | 11 | | and anticipated expenses including funding of operating | 12 | | deficits
or the discharge of encumbrances incurred in prior | 13 | | periods and payment of
principal and interest when due, and | 14 | | shall show cash balances sufficient
to pay with reasonable | 15 | | promptness all obligations and expenses as incurred.
| 16 | | The Annual Budget and Two-Year Financial Plan
must show: | 17 | |
(i) that the level of fares
and charges for mass | 18 | | transportation provided by, or under grant or purchase
of | 19 | | service contracts of, the Service Boards is sufficient to | 20 | | cause the
aggregate of all projected fare revenues from | 21 | | such fares and charges received
in each fiscal year to | 22 | | equal at least 50% of the aggregate costs of providing
such | 23 | | public transportation in such fiscal year. "Fare revenues" | 24 | | include
the proceeds of all fares and charges for services | 25 | | provided, contributions
received in connection with public | 26 | | transportation from units of local
government other than |
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| 1 | | the Authority, except for contributions received by the | 2 | | Chicago Transit Authority from a real estate transfer tax | 3 | | imposed under subsection (i) of Section 8-3-19 of the | 4 | | Illinois Municipal Code, and from the State pursuant to | 5 | | subsection
(i) of Section 2705-305 of the Department of | 6 | | Transportation Law (20 ILCS
2705/2705-305), and all other | 7 | | operating revenues properly included consistent
with | 8 | | generally accepted accounting principles but do not | 9 | | include: the proceeds
of any borrowings, and, beginning | 10 | | with the 2007 fiscal year, all revenues and receipts, | 11 | | including but not limited to fares and grants received from | 12 | | the federal, State or any unit of local government or other | 13 | | entity, derived from providing ADA paratransit service | 14 | | pursuant to Section 2.30 of the Regional Transportation | 15 | | Authority Act. "Costs" include all items properly included | 16 | | as operating
costs consistent with generally accepted | 17 | | accounting principles, including
administrative costs, but | 18 | | do not include: depreciation; payment of principal
and | 19 | | interest on bonds, notes or
other evidences of obligation | 20 | | for borrowed money issued by the Authority;
payments with | 21 | | respect to public transportation facilities made pursuant
| 22 | | to subsection (b) of Section 2.20 of this Act; any payments | 23 | | with respect
to rate protection contracts, credit | 24 | | enhancements or liquidity agreements
made under Section | 25 | | 4.14; any other cost to which it
is reasonably expected | 26 | | that a cash expenditure
will not be made; costs for |
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| 1 | | passenger
security including grants, contracts, personnel, | 2 | | equipment and
administrative expenses, except in the case | 3 | | of the Chicago Transit
Authority, in which case the term | 4 | | does not include costs spent annually by
that entity for | 5 | | protection against crime as required by Section 27a of the
| 6 | | Metropolitan Transit Authority Act; the payment by the | 7 | | Chicago Transit Authority of Debt Service, as defined in | 8 | | Section 12c of the Metropolitan Transit Authority Act, on | 9 | | bonds or notes issued pursuant to that Section; the payment | 10 | | by the Commuter Rail Division of debt service on bonds | 11 | | issued pursuant to Section 3B.09; expenses incurred by the | 12 | | Suburban Bus Division for the cost of new public | 13 | | transportation services funded from grants pursuant to | 14 | | Section 2.01e of this amendatory Act of the 95th General | 15 | | Assembly for a period of 2 years from the date of | 16 | | initiation of each such service; costs as exempted by the | 17 | | Board for
projects pursuant to Section 2.09 of this Act; | 18 | | or, beginning with the 2007 fiscal year, expenses related | 19 | | to providing ADA paratransit service pursuant to Section | 20 | | 2.30 of the Regional Transportation Authority Act; and in | 21 | | fiscal years 2008 through 2012 inclusive, costs in the | 22 | | amount of $200,000,000 in fiscal year 2008, reducing by | 23 | | $40,000,000 in each fiscal year thereafter until this | 24 | | exemption is eliminated; and | 25 | | (ii) that the level of fares charged for ADA | 26 | | paratransit services is sufficient to cause the aggregate |
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| 1 | | of all projected revenues from such fares charged and | 2 | | received in each fiscal year to equal at least 10% of the | 3 | | aggregate costs of providing such ADA paratransit | 4 | | services. For purposes of this Act, the percentages in this | 5 | | subsection (b)(ii) shall be referred to as the "system | 6 | | generated ADA paratransit services revenue recovery | 7 | | ratio". For purposes of the system generated ADA | 8 | | paratransit services revenue recovery ratio, "costs" shall | 9 | | include all items properly included as operating costs | 10 | | consistent with generally accepted accounting principles. | 11 | | However, the Board may exclude from costs an amount that | 12 | | does not exceed the allowable "capital costs of | 13 | | contracting" for ADA paratransit services pursuant to the | 14 | | Federal Transit Administration guidelines for the | 15 | | Urbanized Area Formula Program.
| 16 | | (c) The actual administrative expenses of the Authority for | 17 | | the fiscal
year commencing January 1, 1985 may not exceed | 18 | | $5,000,000.
The actual administrative expenses of the | 19 | | Authority for the fiscal year
commencing January 1, 1986, and | 20 | | for each fiscal year thereafter shall not
exceed the maximum | 21 | | administrative expenses for the previous fiscal year plus
5%. | 22 | | "Administrative
expenses" are defined for purposes of this | 23 | | Section as all expenses except:
(1) capital expenses and | 24 | | purchases of the Authority on behalf of the Service
Boards; (2) | 25 | | payments to Service Boards; and (3) payment of principal
and | 26 | | interest on bonds, notes or other evidence of obligation for |
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| 1 | | borrowed
money issued by the Authority; (4) costs for passenger | 2 | | security including
grants, contracts, personnel, equipment and | 3 | | administrative expenses; (5)
payments with respect to public | 4 | | transportation facilities made pursuant to
subsection (b) of | 5 | | Section 2.20 of this Act; and (6) any payments with
respect to | 6 | | rate protection contracts, credit enhancements or liquidity
| 7 | | agreements made pursuant to Section 4.14.
| 8 | | (d) 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. After withholding 15% of the proceeds of | 12 | | any tax imposed by the
Authority and 15% of money received by | 13 | | the Authority from the Regional
Transportation Authority | 14 | | Occupation and Use Tax Replacement Fund,
the Board shall | 15 | | allocate the proceeds and money remaining to the Service
Boards | 16 | | as follows: (1) an amount equal to 85% of the proceeds of those
| 17 | | taxes collected within the City of Chicago and 85% of the money | 18 | | received by
the Authority on account of transfers to the | 19 | | Regional Transportation
Authority Occupation and Use Tax | 20 | | Replacement Fund from the County and Mass
Transit District Fund | 21 | | attributable to retail sales within the City of
Chicago shall | 22 | | be allocated to the Chicago Transit
Authority; (2) an amount | 23 | | equal to 85% of the proceeds of those taxes
collected within | 24 | | Cook County outside the City of Chicago and 85% of the
money | 25 | | received by the Authority on account of transfers to the | 26 | | Regional
Transportation Authority Occupation and Use Tax |
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| 1 | | Replacement Fund from the
County and Mass Transit District Fund | 2 | | attributable to retail sales within
Cook County outside of the | 3 | | city of Chicago shall be allocated
30% to the Chicago Transit | 4 | | Authority, 55% to the Commuter Rail Board and
15% to the | 5 | | Suburban Bus Board; and (3) an amount equal to 85% of the
| 6 | | proceeds of the taxes collected within the Counties of DuPage, | 7 | | Kane, Lake,
McHenry and Will shall be allocated 70% to the | 8 | | Commuter Rail Board and 30%
to the Suburban Bus Board.
| 9 | | (e) This subsection applies only until the Department | 10 | | begins administering and enforcing an increased tax under | 11 | | Section 4.03(m) as authorized by this amendatory Act of the | 12 | | 95th General Assembly. Moneys received by the Authority on | 13 | | account of transfers to the
Regional Transportation Authority | 14 | | Occupation and Use Tax Replacement Fund
from the State and | 15 | | Local Sales Tax Reform Fund shall be
allocated among the | 16 | | Authority and the Service Boards as follows: 15% of
such moneys | 17 | | shall be retained by the Authority and the remaining 85%
shall | 18 | | be transferred to the Service Boards as soon as may be
| 19 | | practicable after the Authority receives payment. Moneys which | 20 | | are
distributable to the Service Boards pursuant to the | 21 | | preceding sentence
shall be allocated among the Service Boards | 22 | | on the basis of each Service
Board's distribution ratio. The | 23 | | term "distribution ratio" means,
for purposes of this | 24 | | subsection (e) of this Section 4.01, the ratio of
the total | 25 | | amount distributed to a Service Board pursuant to subsection | 26 | | (d)
of Section 4.01 for the immediately preceding calendar year |
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| 1 | | to the total
amount distributed to all of the Service Boards | 2 | | pursuant to subsection (d)
of Section 4.01 for the immediately | 3 | | preceding calendar year.
| 4 | | (f) To carry out its duties and responsibilities under this | 5 | | Act,
the Board shall employ staff which shall: (1) propose for | 6 | | adoption by the Board of the Authority rules for the Service | 7 | | Boards that establish (i) forms and schedules to be used and | 8 | | information required to be provided with respect to a five-year | 9 | | capital program, annual budgets, and two-year financial plans | 10 | | and regular reporting of actual results against adopted budgets | 11 | | and financial plans, (ii) financial practices to be followed in | 12 | | the budgeting and expenditure of public funds, (iii) | 13 | | assumptions and projections that must be followed in preparing | 14 | | and submitting its annual budget and two-year financial plan or | 15 | | a five-year capital program; (2) evaluate for
the Board public | 16 | | transportation programs operated or proposed by
the Service | 17 | | Boards and
transportation agencies in terms of the goals and | 18 | | objectives set out in the Strategic Plan; (3)
keep the Board | 19 | | and the public informed of the extent to which the Service | 20 | | Boards and transportation agencies are meeting the goals and | 21 | | objectives adopted by the Authority in the Strategic Plan; and | 22 | | (4) assess the efficiency or adequacy of public transportation | 23 | | services provided by a Service Board and make recommendations | 24 | | for change in that service
to the end that the moneys
available | 25 | | to the Authority may be
expended in the most economical manner | 26 | | possible with the least possible
duplication. |
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| 1 | | (g) All
Service Boards, transportation agencies, | 2 | | comprehensive planning agencies, including the Chicago | 3 | | Metropolitan Agency for Planning, or
transportation planning | 4 | | agencies in the metropolitan region shall
furnish to the | 5 | | Authority
such information pertaining to public
transportation | 6 | | or relevant for plans therefor as it may from time to time
| 7 | | require. The Executive Director, or his or her designee, shall, | 8 | | for the purpose of
securing any such information necessary or | 9 | | appropriate to carry out any of the powers and responsibilities | 10 | | of the Authority under this Act, have access to, and the right | 11 | | to examine, all
books, documents, papers or records of a | 12 | | Service Board or any transportation
agency receiving funds from | 13 | | the Authority
or Service Board, and such Service Board or | 14 | | transportation agency shall comply with any request by the | 15 | | Executive Director, or his or her designee, within 30 days or | 16 | | an extended time provided by the Executive Director.
| 17 | | (h) No Service Board shall undertake any capital | 18 | | improvement which is not identified in the Five-Year Capital | 19 | | Program.
| 20 | | (i) Each Service Board shall furnish to the Board access to | 21 | | its financial information systems and other documents, papers | 22 | | or records that the Board may from time to time require, | 23 | | including, but not limited to, audits and draft reports. The | 24 | | Board may examine the financial information systems and other | 25 | | documents, papers, or records, and the Service Board shall | 26 | | comply with any request made by the Board under this subsection |
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| 1 | | (i) within 30 days or an extended time provided by the Board. | 2 | | (Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08; | 3 | | 95-906, eff. 8-26-08.)
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