State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]



90_HB0278

      605 ILCS 10/8.1 new
      605 ILCS 10/16.2 new
      605 ILCS 10/17            from Ch. 121, par. 100-17
      605 ILCS 10/21.1 new
          Amends the Toll Highway Act.  Requires the  Toll  Highway
      Authority  to  appoint  an  Inspector  General to investigate
      waste,  fraud,  or  financial  mismanagement   in   Authority
      operations  involving  Authority  employees  or  contractors.
      Provides  for  the  Inspector  General's  powers  and duties.
      Makes  failure  to  cooperate  in  specified  ways  with  the
      investigation a Class A  misdemeanor.   Requires  competitive
      bidding  of  Authority  bond  issuance service contracts over
      $25,000.  Requires the Authority to use all surplus  revenues
      to  fund  construction  or  repairs  before  issuing bonds to
      finance those activities. Requires the Authority to structure
      financing  of  new  tollways  and  refinancing  of  debt   to
      facilitate  conversion  of tollways into free State highways.
      Requires  the  Authority  to  report  a  schedule   of   that
      conversion  to  the  Governor  and  General  Assembly every 2
      years.  Effective immediately.
                                                    LRB9001072NTsbA
                                              LRB9001072NTsbA
 1        AN ACT to amend the Toll Highway Act by changing  Section
 2    17 and adding Sections 8.1, 16.2, and 21.1.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Toll Highway Act is amended  by  changing
 6    Section  17  and  adding  Sections  8.1,  16.2,  and  21.1 as
 7    follows:
 8        (605 ILCS 10/8.1 new)
 9        Sec. 8.1.  Inspector General.
10        (a)  The Authority shall appoint an Inspector General who
11    shall have  the  authority  to  conduct  investigations  into
12    allegations  or  incidents  of  waste,  fraud,  and financial
13    mismanagement in Authority operations involving an  Authority
14    employee  or  contractor.   The  Inspector General shall make
15    recommendations  to  the  Authority  regarding  his  or   her
16    investigations.  The Inspector General shall be appointed for
17    a   term   of  4  years.   The  Inspector  General  shall  be
18    independent of the operations of the  Authority  and  perform
19    other duties as requested by the Authority.
20        (b)  The  Inspector  General  shall  have  access  to all
21    information and personnel necessary to perform the duties  of
22    the  office.   If  the  Inspector  General  determines that a
23    possible criminal act has  been  committed  or  that  special
24    expertise  is  required in the investigation, he or she shall
25    immediately notify  the  State  Police.   All  investigations
26    conducted  by  the  Inspector General shall be conducted in a
27    manner that ensures the preservation of evidence for  use  in
28    criminal prosecutions.
29        (c)  At all times, the Inspector General shall be granted
30    access  to  any building or facility that is owned, operated,
31    or leased by the Authority.
                            -2-               LRB9001072NTsbA
 1        (d)  The  Inspector  General  shall  have  the  power  to
 2    subpoena witnesses and compel the  production  of  books  and
 3    papers  pertinent  to  an  investigation  authorized  by this
 4    Section.  Any person who:
 5             (1)  fails to appear in response to a subpoena;
 6             (2)  fails to answer any question;
 7             (3)  fails to produce any books or papers  pertinent
 8        to an investigation under this Section; or
 9             (4)  knowingly   gives  false  testimony  during  an
10        investigation under this Section;
11    is guilty of a Class A misdemeanor.
12        (e)  The Inspector General shall provide to the Authority
13    and  the  General  Assembly  a   summary   of   reports   and
14    investigations  made  under  this  Section  for  the previous
15    fiscal year no later  than  January  1  of  each  year.   The
16    summaries shall detail the final disposition of the Inspector
17    General's  recommendations.   The summaries shall not contain
18    any confidential or identifying  information  concerning  the
19    subjects  of  the  reports and investigations.  The summaries
20    shall  also  include  detailed,  recommended   administrative
21    actions   and   matters  for  consideration  by  the  General
22    Assembly.
23        (605 ILCS 10/16.2 new)
24        Sec. 16.2.  Bond issuance service contracts;  competitive
25    bidding.
26        (a)  All  contracts  for services requiring professional,
27    technical, or artistic skill related to the issuance  of  any
28    bonds,  refunding bonds, or advance refunding bonds, when the
29    amount of those services is in excess of  $25,000,  shall  be
30    let  to  the  lowest  qualified  bidder  or  bidders on open,
31    competitive bidding after public advertisement made at  least
32    5  days  before the opening of bids in a newspaper of general
33    circulation in any city of over 500,000 population or in  any
                            -3-               LRB9001072NTsbA
 1    county  through  which the tollway for which the services are
 2    required passes, in a manner and on one or more occasions  as
 3    may be prescribed by the Authority.
 4        (b)  If   the   services  required  would  reasonably  be
 5    regarded by persons experienced in the area of those services
 6    as requiring expertise with  novel  or  complex  issues  that
 7    could   reasonably   be  provided  by  only  one  prospective
 8    contractor, the Authority may prescribe  by  rule  procedures
 9    for  the  award  of  the  service  contract  to the qualified
10    contractor.   The  contractor  shall  provide  the   required
11    service at the most economical cost to the Authority.
12        (605 ILCS 10/17) (from Ch. 121, par. 100-17)
13        Sec.  17.   (a) The Authority may from time to time issue
14    bonds for any lawful purpose including,  without  limitation,
15    the  costs  of  issuance  thereof and all such bonds or other
16    obligations of the Authority  issued  pursuant  to  this  Act
17    shall  be  and  are  hereby declared to be negotiable for all
18    purposes notwithstanding their payment from a limited  source
19    and without regard to any other law or laws.
20        (b)  The bonds of every issue shall be payable solely out
21    of revenues of the Authority, accumulated reserves or sinking
22    funds,   bond  proceeds,  proceeds  of  refunding  bonds,  or
23    investment earnings as the Authority shall specify in a  bond
24    resolution.
25        (c)  The  bonds  may be issued as serial bonds or as term
26    bonds, or the Authority, in its discretion, may  issue  bonds
27    of  both  types.   The  bonds  shall  be authorized by a bond
28    resolution of the Authority, may be issued  in  one  or  more
29    series and shall bear such date or dates, mature at such time
30    or times not exceeding 25 years from their respective date or
31    dates of issue, bear interest at such rate or rates, fixed or
32    variable,  without regard to any limit contained in any other
33    statute or law of the State of Illinois,  be  payable  as  to
                            -4-               LRB9001072NTsbA
 1    principal  and  interest  at  such  time or times, be in such
 2    denominations, be  in  such  form,  either  coupon  or  fully
 3    registered,    carry   such   registration   and   conversion
 4    privileges, be payable in lawful money of the  United  States
 5    of  America  at  such  places,  be  subject  to such terms of
 6    redemption and may contain such other terms  and  provisions,
 7    as  such  bond  resolution  or  resolutions may provide.  The
 8    bonds shall be executed by the manual or facsimile signatures
 9    of the Chairman and  the  Secretary.   In  case  any  of  the
10    officers  whose signature appears on the bonds or coupons, if
11    any, shall cease to be an officer before the delivery of such
12    bonds,  such  signature  shall  nevertheless  be  valid   and
13    sufficient  for all purposes, as if he had remained in office
14    until such delivery.  The bonds shall be sold in such  manner
15    as the Authority shall determine.  The proceeds from the sale
16    of  such bonds shall be paid to the Treasurer of the State of
17    Illinois as ex officio custodian. Pending preparation of  the
18    definitive bonds, the Authority may issue interim receipts or
19    certificates  which  shall  be  exchanged for such definitive
20    bonds.
21        (d)  Any bond resolution, or trust indenture entered into
22    pursuant to a bond resolution, may contain provisions,  which
23    shall be a part of the contract with the holders of the bonds
24    to be authorized, as to: (i) pledging or creating a lien upon
25    all or part of the revenues of the Authority or any reserves,
26    sinking funds, bond proceeds or investment earnings; (ii) the
27    setting   aside   of  reserves  or  sinking  funds,  and  the
28    regulation, investment and disposition thereof; (iii) the use
29    and maintenance requirements for the toll highways; (iv)  the
30    purposes to which or the investments in which the proceeds of
31    sale of any series or issue of bonds then or thereafter to be
32    issued  may be applied; (v) the issuance of additional bonds,
33    the terms upon which  additional  bonds  may  be  issued  and
34    secured,  the  purposes  for  such  additional bonds, and the
                            -5-               LRB9001072NTsbA
 1    terms upon which additional bonds may rank on a parity  with,
 2    or  be  subordinate  or  superior  to  other  bonds; (vi) the
 3    refunding of outstanding bonds; (vii) the procedure, if  any,
 4    by  which  the  terms of any contract with bondholders may be
 5    amended or abrogated, the amount  of  bonds  the  holders  of
 6    which  must  consent  thereto,  and  the manner in which such
 7    consent may be given; (viii) defining the acts  or  omissions
 8    to  act which shall constitute a default in the duties of the
 9    Authority to holders of its  obligations  and  providing  the
10    rights  and  remedies  of  such  holders  in  the  event of a
11    default; (ix) any other matters relating to the  bonds  which
12    the Authority deems desirable.
13        (e)  Neither  the  directors  of  the  Authority  nor any
14    person executing the bonds shall be liable personally on  the
15    bonds   or   be   subject   to   any  personal  liability  or
16    accountability by reason of the issuance thereof.
17        (f)  The Authority shall have  power  out  of  any  funds
18    available  therefor to purchase its bonds.  The Authority may
19    hold, pledge, cancel or resell such bonds subject to  and  in
20    accordance with agreements with bondholders.
21        (g)  In  the discretion of the Authority any bonds issued
22    under the provisions of this Act may be secured  by  a  trust
23    indenture  by  and  between  the  Authority  and a trustee or
24    trustees, which may be any trust company or bank in the State
25    of  Illinois  having  the  powers  of  a  trust  company  and
26    possessing capital and surplus of not less than  $50,000,000.
27    The  bond  resolution  or  trust  indenture providing for the
28    issuance of bonds so secured shall pledge  such  revenues  of
29    the  Authority,  sinking  funds, bond proceeds, or investment
30    earnings as  may  be  specified  therein,  may  contain  such
31    provisions  for  protecting  and  enforcing  the  rights  and
32    remedies  of  the bondholders as may be reasonable and proper
33    and not in violation  of  law,  including  particularly  such
34    provisions  as  have hereinabove been specifically authorized
                            -6-               LRB9001072NTsbA
 1    to be included in any bond resolution or trust  indenture  of
 2    the  Authority,  and  may  restrict  the  individual right of
 3    action by bondholders.  In addition  to  the  foregoing,  any
 4    bond  resolution  or  trust  indenture may contain such other
 5    provisions as the Authority may deem  reasonable  and  proper
 6    for  the  security  of  the  bondholders,  including, but not
 7    limited  to,  the  purchase  of  bond   insurance   and   the
 8    arrangement  of  letters  of credit, lines of credit or other
 9    credit or liquidity enhancement  facilities;  provided  there
10    shall  be  no pledge of the toll highway or any part thereof.
11    All expenses incurred in carrying out the provisions  of  any
12    bond  resolution  or trust indenture may be treated as a part
13    of the cost of the operation of the toll highways.
14        (h)  Bonds issued under the authority of this Act do not,
15    and shall state upon the face of each bond that they do  not,
16    represent  or  constitute  a  debt of the Authority or of the
17    State of Illinois within the meaning of any constitutional or
18    statutory limitation or a pledge of the faith and  credit  of
19    the  Authority  or  the  State  of  Illinois, or grant to the
20    owners or holders thereof any right to have the Authority  or
21    the  General Assembly levy any taxes or appropriate any funds
22    for the payment of the principal thereof or interest thereon.
23    Such bonds shall be payable and shall  state  that  they  are
24    payable  solely  from the revenues and the sources authorized
25    under this Act and pledged for their  payment  in  accordance
26    with the bond resolution or trust indenture.
27        Nothing  in  this Act shall be construed to authorize the
28    Authority or  any  department,  board,  commission  or  other
29    agency  to  create  an  obligation  of  the State of Illinois
30    within  the  meaning  of  the  Constitution  or  Statutes  of
31    Illinois.
32        (i) Any resolution or  trust  indenture  authorizing  the
33    issuance  of the bonds may include provision for the issuance
34    of additional bonds.  All resolutions  of  the  Authority  to
                            -7-               LRB9001072NTsbA
 1    carry  such  adopted bond resolutions into effect, to provide
 2    for the sale and  delivery  of  the  bonds,  for  letting  of
 3    contracts  for  the  construction  of  toll  highways and the
 4    acquisition of real  and  personal  property  deemed  by  the
 5    Authority   necessary  or  convenient  for  the  construction
 6    thereof, shall not require the approval of the Governor or of
 7    any other department, division, commission, bureau, board  or
 8    other agency of the State.
 9        (j)  The  Authority  shall not issue any bonds to finance
10    new construction or the repair of any tollway  without  first
11    applying  all  surplus  revenues not currently needed to meet
12    any obligation of the  Authority  to  the  cost  of  the  new
13    construction or repair project.
14    (Source: P.A. 83-1258.)
15        (605 ILCS 10/21.1 new)
16        Sec. 21.1.  Schedule of conversions.
17        (a)  Recognizing  the  original  intent  of  the  tollway
18    system  and  the  directive of the General Assembly stated in
19    Section 21 that the toll highways and any connecting tunnels,
20    bridges, approaches,  or  other  appurtenances  to  the  toll
21    highways  become part of the system of State highways and are
22    to be maintained and operated free of tolls  once  all  bonds
23    and interest have been paid and all money appropriated by the
24    General   Assembly  has  been  repaid,  the  Authority  shall
25    structure all financing of new toll highway  construction  to
26    facilitate   converting  established  portions  of  the  toll
27    highway  system  to  State  highways.   In   addition,   when
28    refinancing  or  refunding existing debt, the Authority shall
29    enter  into  new  bond  indentures   so   as   to   eliminate
30    restrictions   and   facilitate   conversion  of  established
31    portions of the tollway system into State highways.
32        (b)  In accordance with  subsection  (a),  the  Authority
33    shall, in consultation with the Department of Transportation,
                            -8-               LRB9001072NTsbA
 1    submit a report every 2 years to the Governor and the General
 2    Assembly  detailing  when  each  portion  of the toll highway
 3    system can be  converted  into  a  State  highway  under  the
 4    Department of Transportation's supervision.
 5        Section  99.   Effective date. This Act shall take effect
 6    upon becoming law.

[ Top ]