Rep. Julie Hamos

Filed: 11/28/2007

 

 


 

 


 
09500SB0307ham002 LRB095 04310 HLH 40653 a

1
AMENDMENT TO SENATE BILL 307

2     AMENDMENT NO. ______. Amend Senate Bill 307 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois State Auditing Act is amended by
5 adding Section 3-2.3 as follows:
 
6     (30 ILCS 5/3-2.3 new)
7     Sec. 3-2.3. Report on Chicago Transit Authority.
8     (a) No less than 60 days prior to the issuance of bonds or
9 notes by the Chicago Transit Authority (referred to as the
10 "Authority" in this Section) pursuant to Section 12c of the
11 Metropolitan Transit Authority Act, the following
12 documentation shall be submitted to the Auditor General and the
13 Regional Transportation Authority:
14         (1) Retirement Plan Documentation. The Authority shall
15     submit a certification that:
16             (A) it is legally authorized to issue the bonds or

 

 

09500SB0307ham002 - 2 - LRB095 04310 HLH 40653 a

1         notes;
2             (B) scheduled annual payments of principal and
3         interest on the bonds and notes to be issued meet the
4         requirements of Section 12c(b)(5) of the Metropolitan
5         Transit Authority Act;
6             (C) no bond or note shall mature later than
7         December 31, 2039; and
8             (D) after payment of costs of issuance and
9         necessary deposits to funds and accounts established
10         with respect to debt service on the bonds or notes, the
11         net bond and note proceeds (exclusive of any proceeds
12         to be used to refund outstanding bonds or notes) will
13         be deposited in the Retirement Plan for Chicago Transit
14         Authority Employees and used only for the purposes
15         required by Section 22-101 of the Illinois Pension
16         Code.
17         (2) The Board of Trustees of the Retirement Plan for
18     Chicago Transit Authority Employees shall submit a
19     certification that the Retirement Plan for Chicago Transit
20     Authority Employees is operating in accordance with all
21     applicable legal and contractual requirements, including
22     the following:
23             (A) the members of a new Board of Trustees have
24         been appointed according to the requirements of
25         Section 22-101(b) of the Illinois Pension Code; and
26             (B) contribution levels for employees and the

 

 

09500SB0307ham002 - 3 - LRB095 04310 HLH 40653 a

1         Authority have been established according to the
2         requirements of Section 22-101(d) of the Illinois
3         Pension Code.
4         (3) Actuarial Report. The Board of Trustees of the
5     Retirement Plan for Chicago Transit Authority Employees
6     shall submit an actuarial report prepared by an enrolled
7     actuary setting forth:
8             (A) the method of valuation and the underlying
9         assumptions;
10             (B) a comparison of the debt service schedules of
11         the bonds or notes proposed to be issued to the
12         Retirement Plan's current unfunded actuarial accrued
13         liability amortization schedule, as required by
14         Section 22-101(e) of the Illinois Pension Code, using
15         the projected interest cost of the bond or note issue
16         as the discount rate to calculate the estimated net
17         present value savings;
18             (C) the amount of the estimated net present value
19             savings comparing the true interest cost of the
20             bonds or notes with the actuarial investment
21             return assumption of the Retirement Plan; and
22             (D) a certification that the net proceeds of the
23             bonds or notes, together with anticipated earnings
24             on contributions and deposits, will be sufficient
25             to reasonably conclude on an actuarial basis that
26             the total retirement assets of the Retirement Plan

 

 

09500SB0307ham002 - 4 - LRB095 04310 HLH 40653 a

1             will not be less than 90% of its liabilities by the
2             end of fiscal year 2058.
3         (4) The Authority shall submit a financial analysis
4     prepared by an independent advisor. The financial analysis
5     must include a determination that the issuance of bonds is
6     in the best interest of the Retirement Plan for Chicago
7     Transit Authority Employees and the Chicago Transit
8     Authority. The independent advisor shall not act as
9     underwriter or receive a legal, consulting, or other fee
10     related to the issuance of any bond or notes issued by the
11     Authority pursuant to Section 12c of the Metropolitan
12     Transit Authority Act except compensation due for the
13     preparation of the financial analysis.
14         (5) Retiree Health Care Trust Documentation. The
15     Authority shall submit a certification that:
16             (A) it is legally authorized to issue the bonds or
17         notes;
18             (B) scheduled annual payments of principal and
19         interest on the bonds and notes to be issued meets the
20         requirements of Section 12c(b)(5) of the Metropolitan
21         Transit Authority Act;
22             (C) no bond or note shall mature later than
23         December 31, 2039; and
24             (D) after payment of costs of issuance and
25         necessary deposits to funds and accounts established
26         with respect to debt service on the bonds or notes, the

 

 

09500SB0307ham002 - 5 - LRB095 04310 HLH 40653 a

1         net bond and note proceeds (exclusive of any proceeds
2         to be used to refund outstanding bonds or notes) will
3         be deposited in the Retiree Health Care Trust and used
4         only for the purposes required by Section 22-101B of
5         the Illinois Pension Code.
6         (6) The Board of Trustees of the Retiree Health Care
7     Trust shall submit a certification that the Retiree Health
8     Care Trust has been established in accordance with all
9     applicable legal requirements, including the following:
10             (A) the Retiree Health Care Trust has been
11         established and a Trust document is in effect to govern
12         the Retiree Health Care Trust;
13             (B) the members of the Board of Trustees of the
14         Retiree Health Care Trust have been appointed
15         according to the requirements of Section 22-101B(b)(1)
16         of the Illinois Pension Code;
17             (C) a health care benefit program for eligible
18         retirees and their dependents and survivors has been
19         established by the Board of Trustees according to the
20         requirements of Section 22-101B(b)(2) of the Illinois
21         Pension Code;
22             (D) contribution levels have been established for
23         retirees, dependents and survivors according to the
24         requirements of Section 22-101B(b)(5) of the Illinois
25         Pension Code; and
26             (E) contribution levels have been established for

 

 

09500SB0307ham002 - 6 - LRB095 04310 HLH 40653 a

1         employees of the Authority according to the
2         requirements of Section 22-101B(b)(6) of the Illinois
3         Pension Code.
4         (7) Actuarial Report. The Board of Trustees of the
5     Retiree Health Care Trust shall submit an actuarial report
6     prepared by an enrolled actuary setting forth:
7             (A) the method of valuation and the underlying
8         assumptions;
9             (B) a comparison of the projected interest cost of
10         the bonds or notes proposed to be issued with the
11         actuarial investment return assumption of the Retiree
12         Health Care Trust; and
13             (C) a certification that the net proceeds of the
14         bonds or notes, together with anticipated earnings on
15         contributions and deposits, will be sufficient to
16         adequately fund the actuarial present value of
17         projected benefits expected to be paid under the
18         Retiree Health Care Trust, or a certification of the
19         increases in contribution levels and decreases in
20         benefit levels that would be required in order to cure
21         any funding shortfall over a period of not more than 10
22         years.
23         (8) The Authority shall submit a financial analysis
24     prepared by an independent advisor. The financial analysis
25     must include a determination that the issuance of bonds is
26     in the best interest of the Retiree Health Care Trust and

 

 

09500SB0307ham002 - 7 - LRB095 04310 HLH 40653 a

1     the Chicago Transit Authority. The independent advisor
2     shall not act as underwriter or receive a legal,
3     consulting, or other fee related to the issuance of any
4     bond or notes issued by the Authority pursuant to Section
5     12c of the Metropolitan Transit Authority Act except
6     compensation due for the preparation of the financial
7     analysis.
8     (b) The Auditor General shall examine the information
9 submitted pursuant to Section 3-2.3(a)(1) through (4) and
10 submit a report to the General Assembly, the Legislative Audit
11 Commission, the Governor, the Regional Transportation
12 Authority and the Authority indicating whether (i) the required
13 certifications by the Authority and the Board of Trustees of
14 the Retirement Plan have been made, and (ii) the actuarial
15 reports have been provided, the reports include all required
16 information, the assumptions underlying those reports are not
17 unreasonable in the aggregate, and the reports appear to comply
18 with all pertinent professional standards, including those
19 issued by the Actuarial Standards Board. The Auditor General
20 shall submit such report no later than 60 days after receiving
21 the information required to be submitted by the Authority and
22 the Board of Trustees of the Retirement Plan. Any bonds or
23 notes issued by the Authority under item (1) of subsection (b)
24 of Section 12c of the Metropolitan Transit Authority Act shall
25 be issued within 120 days after receiving such report from the
26 Auditor General. The Authority may not issue bonds or notes

 

 

09500SB0307ham002 - 8 - LRB095 04310 HLH 40653 a

1 until it receives the report from the Auditor General
2 indicating the above requirements have been met.
3     (c) The Auditor General shall examine the information
4 submitted pursuant to Section 3-2.3(a)(5) through (8) and
5 submit a report to the General Assembly, the Legislative Audit
6 Commission, the Governor, the Regional Transportation
7 Authority and the Authority indicating whether (i) the required
8 certifications by the Authority and the Board of Trustees of
9 the Retiree Health Care Trust have been made, and (ii) the
10 actuarial reports have been provided, the reports include all
11 required information, the assumptions underlying those reports
12 are not unreasonable in the aggregate, and the reports appear
13 to comply with all pertinent professional standards, including
14 those issued by the Actuarial Standards Board. The Auditor
15 General shall submit such report no later than 60 days after
16 receiving the information required to be submitted by the
17 Authority and the Board of Trustees of the Retiree Health Care
18 Trust. Any bonds or notes issued by the Authority under item
19 (2) of subsection (b) of Section 12c of the Metropolitan
20 Transit Authority Act shall be issued within 120 days after
21 receiving such report from the Auditor General. The Authority
22 may not issue bonds or notes until it receives a report from
23 the Auditor General indicating the above requirements have been
24 met.
25     (d) In fulfilling this duty, after receiving the
26 information submitted pursuant to Section 3-2.3(a), the

 

 

09500SB0307ham002 - 9 - LRB095 04310 HLH 40653 a

1 Auditor General may request additional information and support
2 pertaining to the data and conclusions contained in the
3 submitted documents and the Authority, the Board of Trustees of
4 the Retirement Plan and the Board of Trustees of the Retiree
5 Health Care Trust shall cooperate with the Auditor General and
6 provide additional information as requested in a timely manner.
7 The Auditor General may also request from the Regional
8 Transportation Authority an analysis of the information
9 submitted by the Authority relating to the sources of funds to
10 be utilized for payment of the proposed bonds or notes of the
11 Authority. The Auditor General's report shall not be in the
12 nature of a post-audit or examination and shall not lead to the
13 issuance of an opinion as that term is defined in generally
14 accepted government auditing standards.
15     (e) Annual Retirement Plan Submission to Auditor General.
16 The Board of Trustees of the Retirement Plan for Chicago
17 Transit Authority Employees established by Section 22-101 of
18 the Illinois Pension Code shall provide the following documents
19 to the Auditor General annually no later than September 30:
20         (1) the most recent audit or examination of the
21     Retirement Plan;
22         (2) an annual statement containing the information
23     specified in Section 1A-109 of the Illinois Pension Code;
24     and
25         (3) a complete actuarial statement applicable to the
26     prior plan year, which may be the annual report of an

 

 

09500SB0307ham002 - 10 - LRB095 04310 HLH 40653 a

1     enrolled actuary retained by the Retirement Plan specified
2     in Section 22-101(e) of the Illinois Pension Code.
3     The Auditor General shall annually examine the information
4 provided pursuant to this subsection and shall submit a report
5 of the analysis thereof to the General Assembly, including the
6 report specified in Section 22-101(e) of the Illinois Pension
7 Code.
8     (f) The Auditor General shall annually examine the
9 information submitted pursuant to Section 22-101B(b)(3)(iii)
10 of the Illinois Pension Code and shall prepare the
11 determination specified in Section 22-101B(b)(3)(iv) of the
12 Illinois Pension Code.
13     (g) In fulfilling the duties under Sections 3-2.3(e) and
14 (f) the Auditor General may request additional information and
15 support pertaining to the data and conclusions contained in the
16 submitted documents and the Authority, the Board of Trustees of
17 the Retirement Plan and the Board of Trustees of the Retiree
18 Health Care Trust shall cooperate with the Auditor General and
19 provide additional information as requested in a timely manner.
20 The Auditor General's review shall not be in the nature of a
21 post-audit or examination and shall not lead to the issuance of
22 an opinion as that term is defined in generally accepted
23 government auditing standards. Upon request of the Auditor
24 General, the Commission on Government Forecasting and
25 Accountability and the Public Pension Division of the Illinois
26 Department of Financial and Professional Regulation shall

 

 

09500SB0307ham002 - 11 - LRB095 04310 HLH 40653 a

1 cooperate with and assist the Auditor General in the conduct of
2 his review.
3     (h) The Auditor General shall submit a bill to the
4 Authority for costs associated with the examinations and
5 reports specified in subsections (b) and (c) of this Section
6 3-2.3, which the Authority shall reimburse in a timely manner.
7 The costs associated with the examinations and reports which
8 are reimbursed by the Authority shall constitute a cost of
9 issuance of the bonds or notes under Section 12c(b)(1) and (2)
10 of the Metropolitan Transit Authority Act. The amount received
11 shall be deposited into the fund or funds from which such costs
12 were paid by the Auditor General. The Auditor General shall
13 submit a bill to the Retirement Plan for Chicago Transit
14 Authority Employees for costs associated with the examinations
15 and reports specified in subsection (e) of this Section, which
16 the Retirement Plan for Chicago Transit Authority Employees
17 shall reimburse in a timely manner. The amount received shall
18 be deposited into the fund or funds from which such costs were
19 paid by the Auditor General. The Auditor General shall submit a
20 bill to the Retiree Health Care Trust for costs associated with
21 the determination specified in subsection (f) of this Section,
22 which the Retiree Health Care Trust shall reimburse in a timely
23 manner. The amount received shall be deposited into the fund or
24 funds from which such costs were paid by the Auditor General.
 
25     Section 6. The State Finance Act is amended by adding

 

 

09500SB0307ham002 - 12 - LRB095 04310 HLH 40653 a

1 Section 5.676 as follows:
 
2     (30 ILCS 105/5.676 new)
3     Sec. 5.676. The Downstate Transit Improvement Fund.
 
4     Section 7. The Downstate Public Transportation Act is
5 amended by changing Sections 2-2.04, 2-3, 2-6, 2-7, and 2-15 as
6 follows:
 
7     (30 ILCS 740/2-2.04)  (from Ch. 111 2/3, par. 662.04)
8     Sec. 2-2.04. "Eligible operating expenses" means all
9 expenses required for public transportation, including
10 employee wages and benefits, materials, fuels, supplies,
11 rental of facilities, taxes other than income taxes, payment
12 made for debt service (including principal and interest) on
13 publicly owned equipment or facilities, and any other
14 expenditure which is an operating expense according to standard
15 accounting practices for the providing of public
16 transportation. Eligible operating expenses shall not include
17 allowances: (a) for depreciation whether funded or unfunded;
18 (b) for amortization of any intangible costs; (c) for debt
19 service on capital acquired with the assistance of capital
20 grant funds provided by the State of Illinois; (d) for profits
21 or return on investment; (e) for excessive payment to
22 associated entities; (f) for Comprehensive Employment Training
23 Act expenses; (g) for costs reimbursed under Sections 6 and 8

 

 

09500SB0307ham002 - 13 - LRB095 04310 HLH 40653 a

1 of the "Urban Mass Transportation Act of 1964", as amended; (h)
2 for entertainment expenses; (i) for charter expenses; (j) for
3 fines and penalties; (k) for charitable donations; (l) for
4 interest expense on long term borrowing and debt retirement
5 other than on publicly owned equipment or facilities; (m) for
6 income taxes; or (n) for such other expenses as the Department
7 may determine consistent with federal Department of
8 Transportation regulations or requirements. In consultation
9 with participants, the Department shall, by October 2008,
10 promulgate or update rules, pursuant to the Illinois
11 Administrative Procedure Act, concerning eligible expenses to
12 ensure consistent application of the Act, and the Department
13 shall provide written copies of those rules to all eligible
14 recipients. The Department shall review this process in the
15 same manner no less frequently than every 5 years.
16     With respect to participants other than any Metro-East
17 Transit District participant and those receiving federal
18 research development and demonstration funds pursuant to
19 Section 6 of the "Urban Mass Transportation Act of 1964", as
20 amended, during the fiscal year ending June 30, 1979, the
21 maximum eligible operating expenses for any such participant in
22 any fiscal year after Fiscal Year 1980 shall be the amount
23 appropriated for such participant for the fiscal year ending
24 June 30, 1980, plus in each year a 10% increase over the
25 maximum established for the preceding fiscal year. For Fiscal
26 Year 1980 the maximum eligible operating expenses for any such

 

 

09500SB0307ham002 - 14 - LRB095 04310 HLH 40653 a

1 participant shall be the amount of projected operating expenses
2 upon which the appropriation for such participant for Fiscal
3 Year 1980 is based.
4     With respect to participants receiving federal research
5 development and demonstration operating assistance funds for
6 operating assistance pursuant to Section 6 of the "Urban Mass
7 Transportation Act of 1964", as amended, during the fiscal year
8 ending June 30, 1979, the maximum eligible operating expenses
9 for any such participant in any fiscal year after Fiscal Year
10 1980 shall not exceed such participant's eligible operating
11 expenses for the fiscal year ending June 30, 1980, plus in each
12 year a 10% increase over the maximum established for the
13 preceding fiscal year. For Fiscal Year 1980, the maximum
14 eligible operating expenses for any such participant shall be
15 the eligible operating expenses incurred during such fiscal
16 year, or projected operating expenses upon which the
17 appropriation for such participant for the Fiscal Year 1980 is
18 based; whichever is less.
19     With respect to all participants other than any Metro-East
20 Transit District participant, the maximum eligible operating
21 expenses for any such participant in any fiscal year after
22 Fiscal Year 1985 (except Fiscal Year 2008 and Fiscal Year 2009)
23 shall be the amount appropriated for such participant for the
24 fiscal year ending June 30, 1985, plus in each year a 10%
25 increase over the maximum established for the preceding year.
26 For Fiscal Year 1985, the maximum eligible operating expenses

 

 

09500SB0307ham002 - 15 - LRB095 04310 HLH 40653 a

1 for any such participant shall be the amount of projected
2 operating expenses upon which the appropriation for such
3 participant for Fiscal Year 1985 is based.
4     With respect to any mass transit district participant that
5 has increased its district boundaries by annexing counties
6 since 1998 and is maintaining a level of local financial
7 support, including all income and revenues, equal to or greater
8 than the level in the State fiscal year ending June 30, 2001,
9 the maximum eligible operating expenses for any State fiscal
10 year after 2002 (except State fiscal years year 2006 through
11 2009) shall be the amount appropriated for that participant for
12 the State fiscal year ending June 30, 2002, plus, in each State
13 fiscal year, a 10% increase over the preceding State fiscal
14 year. For State fiscal year 2002, the maximum eligible
15 operating expenses for any such participant shall be the amount
16 of projected operating expenses upon which the appropriation
17 for that participant for State fiscal year 2002 is based. For
18 that participant, eligible operating expenses for State fiscal
19 year 2002 in excess of the eligible operating expenses for the
20 State fiscal year ending June 30, 2001, plus 10%, must be
21 attributed to the provision of services in the newly annexed
22 counties.
23     With respect to a participant that receives an initial
24 appropriation in State fiscal year 2002 or thereafter, the
25 maximum eligible operating expenses for any State fiscal year
26 after 2003 (except State fiscal years year 2006 through 2009)

 

 

09500SB0307ham002 - 16 - LRB095 04310 HLH 40653 a

1 shall be the amount appropriated for that participant for the
2 State fiscal year in which it received its initial
3 appropriation, plus, in each year, a 10% increase over the
4 preceding year. For the initial State fiscal year in which a
5 participant received an appropriation, the maximum eligible
6 operating expenses for any such participant shall be the amount
7 of projected operating expenses upon which the appropriation
8 for that participant for that State fiscal year is based.
9     With respect to the District serving primarily the counties
10 of Monroe and St. Clair, beginning July 1, 2005, the St. Clair
11 County Transit District shall no longer be included for new
12 appropriation funding purposes as part of the Metro-East Public
13 Transportation Fund and instead shall be included for new
14 appropriation funding purposes as part of the Downstate Public
15 Transportation Fund; provided, however, that nothing herein
16 shall alter the eligibility of that District for previously
17 appropriated funds to which it would otherwise be entitled.
18     With respect to the District serving primarily Madison
19 County, beginning July 1, 2008, the Madison County Transit
20 District shall no longer be included for new appropriation
21 funding purposes as part of the Metro-East Public
22 Transportation Fund and instead shall be included for new
23 appropriation funding purposes as part of the Downstate Public
24 Transportation Fund; provided, however, that nothing herein
25 shall alter the eligibility of that District for previously
26 appropriated funds to which it would otherwise be entitled.

 

 

09500SB0307ham002 - 17 - LRB095 04310 HLH 40653 a

1     With respect to the fiscal year beginning July 1, 2007, and
2 thereafter, the following shall be included for new
3 appropriation funding purposes as part of the Downstate Public
4 Transportation Fund: Bond County; Bureau County; Coles County;
5 Edgar County; Stephenson County and the City of Freeport; Henry
6 County; Jo Daviess County; Kankakee and McLean Counties; Peoria
7 County; Piatt County; Shelby County; Tazewell and Woodford
8 Counties; Vermillion County; Williamson County; and Kendall
9 County.
10 (Source: P.A. 94-70, eff. 6-22-05.)
 
11     (30 ILCS 740/2-3)  (from Ch. 111 2/3, par. 663)
12     Sec. 2-3. (a) As soon as possible after the first day of
13 each month, beginning July 1, 1984, upon certification of the
14 Department of Revenue, the Comptroller shall order
15 transferred, and the Treasurer shall transfer, from the General
16 Revenue Fund to a special fund in the State Treasury which is
17 hereby created, to be known as the "Downstate Public
18 Transportation Fund", an amount equal to 2/32 (beginning July
19 1, 2005, 3/32) of the net revenue realized from the "Retailers'
20 Occupation Tax Act", as now or hereafter amended, the "Service
21 Occupation Tax Act", as now or hereafter amended, the "Use Tax
22 Act", as now or hereafter amended, and the "Service Use Tax
23 Act", as now or hereafter amended, from persons incurring
24 municipal or county retailers' or service occupation tax
25 liability for the benefit of any municipality or county located

 

 

09500SB0307ham002 - 18 - LRB095 04310 HLH 40653 a

1 wholly within the boundaries of each participant other than any
2 Metro-East Transit District participant certified pursuant to
3 subsection (c) of this Section during the preceding month,
4 except that the Department shall pay into the Downstate Public
5 Transportation Fund 2/32 (beginning July 1, 2005, 3/32) of 80%
6 of the net revenue realized under the State tax Acts named
7 above within any municipality or county located wholly within
8 the boundaries of each participant, other than any Metro-East
9 participant, for tax periods beginning on or after January 1,
10 1990; provided, however, that beginning with fiscal year 1985,
11 the transfers into the Downstate Public Transportation Fund
12 during any fiscal year shall not exceed the annual
13 appropriation from the Downstate Public Transportation Fund
14 for that year. The Department of Transportation shall notify
15 the Department of Revenue and the Comptroller at the beginning
16 of each fiscal year of the amount of the annual appropriation
17 from the Downstate Public Transportation Fund. Net revenue
18 realized for a month shall be the revenue collected by the
19 State pursuant to such Acts during the previous month from
20 persons incurring municipal or county retailers' or service
21 occupation tax liability for the benefit of any municipality or
22 county located wholly within the boundaries of a participant,
23 less the amount paid out during that same month as refunds or
24 credit memoranda to taxpayers for overpayment of liability
25 under such Acts for the benefit of any municipality or county
26 located wholly within the boundaries of a participant.

 

 

09500SB0307ham002 - 19 - LRB095 04310 HLH 40653 a

1     (b) As soon as possible after the first day of each month,
2 beginning July 1, 1989, upon certification of the Department of
3 Revenue, the Comptroller shall order transferred, and the
4 Treasurer shall transfer, from the General Revenue Fund to a
5 special fund in the State Treasury which is hereby created, to
6 be known as the "Metro-East Public Transportation Fund", an
7 amount equal to 2/32 of the net revenue realized, as above,
8 from within the boundaries of Madison, Monroe, and St. Clair
9 Counties, except that the Department shall pay into the
10 Metro-East Public Transportation Fund 2/32 of 80% of the net
11 revenue realized under the State tax Acts specified in
12 subsection (a) of this Section within the boundaries of
13 Madison, Monroe and St. Clair Counties for tax periods
14 beginning on or after January 1, 1990. A local match equivalent
15 to an amount which could be raised by a tax levy at the rate of
16 .05% on the assessed value of property within the boundaries of
17 Madison County is required annually to cause a total of 2/32 of
18 the net revenue to be deposited in the Metro-East Public
19 Transportation Fund. Failure to raise the required local match
20 annually shall result in only 1/32 being deposited into the
21 Metro-East Public Transportation Fund after July 1, 1989, or
22 1/32 of 80% of the net revenue realized for tax periods
23 beginning on or after January 1, 1990.
24     (b-5) As soon as possible after the first day of each
25 month, beginning July 1, 2005, upon certification of the
26 Department of Revenue, the Comptroller shall order

 

 

09500SB0307ham002 - 20 - LRB095 04310 HLH 40653 a

1 transferred, and the Treasurer shall transfer, from the General
2 Revenue Fund to the Downstate Public Transportation Fund, an
3 amount equal to 3/32 of 80% of the net revenue realized from
4 within the boundaries of Monroe and St. Clair Counties under
5 the State Tax Acts specified in subsection (a) of this Section
6 and provided further that, beginning July 1, 2005, the
7 provisions of subsection (b) shall no longer apply with respect
8 to such tax receipts from Monroe and St. Clair Counties.
9     (b-6) As soon as possible after the first day of each
10 month, beginning July 1, 2008, upon certification by the
11 Department of Revenue, the Comptroller shall order transferred
12 and the Treasurer shall transfer, from the General Revenue Fund
13 to the Downstate Public Transportation Fund, an amount equal to
14 3/32 of 80% of the net revenue realized from within the
15 boundaries of Madison County under the State Tax Acts specified
16 in subsection (a) of this Section and provided further that,
17 beginning July 1, 2008, the provisions of subsection (b) shall
18 no longer apply with respect to such tax receipts from Madison
19 County.
20     (c) The Department shall certify to the Department of
21 Revenue the eligible participants under this Article and the
22 territorial boundaries of such participants for the purposes of
23 the Department of Revenue in subsections (a) and (b) of this
24 Section.
25     (d) For the purposes of this Article the Department shall
26 include in its annual request for appropriation of ordinary and

 

 

09500SB0307ham002 - 21 - LRB095 04310 HLH 40653 a

1 contingent expenses an amount equal to the sum total funds
2 projected to be paid to the participants pursuant to Section
3 2-7.
4     (e) In addition to any other permitted use of moneys in the
5 Fund, and notwithstanding any restriction on the use of the
6 Fund, moneys in the Downstate Public Transportation Fund may be
7 transferred to the General Revenue Fund as authorized by Public
8 Act 87-14. The General Assembly finds that an excess of moneys
9 existed in the Fund on July 30, 1991, and the Governor's order
10 of July 30, 1991, and the Governor's order of July 30, 1991,
11 requesting the Comptroller and Treasurer to transfer an amount
12 from the Fund to the General Revenue Fund is hereby validated.
13 (Source: P.A. 94-70, eff. 6-22-05.)
 
14     (30 ILCS 740/2-6)  (from Ch. 111 2/3, par. 666)
15     Sec. 2-6. Allocation of funds.
16     (a) With respect to all participants other than any
17 Metro-East Transit District participant, the Department shall
18 allocate the funds to be made available to each participant
19 under this Article for the following fiscal year and shall
20 notify the chief official of each participant not later than
21 the first day of the fiscal year of this amount. For Fiscal
22 Year 1975, notification shall be made not later than January 1,
23 1975, of the amount of such allocation. In determining the
24 allocation for each participant, the Department shall estimate
25 the funds available to the participant from the Downstate

 

 

09500SB0307ham002 - 22 - LRB095 04310 HLH 40653 a

1 Public Transportation Fund for the purposes of this Article
2 during the succeeding fiscal year, and shall allocate to each
3 participant the amount attributable to it which shall be the
4 amount paid into the Downstate Public Transportation Fund under
5 Section 2-3 from within its boundaries. Said allocations may be
6 exceeded for participants receiving assistance equal to
7 one-third of their eligible operating expenses, only if an
8 allocation is less than one-third of such participant's
9 eligible operating expenses, provided, however, that no other
10 participant is denied its one-third of eligible operating
11 expenses. Beginning in Fiscal Year 1997, said allocation may be
12 exceeded for participants receiving assistance equal to the
13 percentage of their eligible operating expenses provided for in
14 paragraph (b) of Section 2-7, only if allocation is less than
15 the percentage of such participant's eligible operating
16 expenses provided for in paragraph (b) of Section 2-7, provided
17 however, that no other participant is denied its percentage of
18 eligible operating expenses.
19     (b) With regard to any Metro-East Transit District
20 organized under the Local Mass Transit District Act and serving
21 one or more of the Counties of Madison, Monroe and St. Clair
22 during Fiscal Year 1989, the Department shall allocate the
23 funds to be made available to each participant for the
24 following and succeeding fiscal years and shall notify the
25 chief official of each participant not later than the first day
26 of the fiscal year of this amount. Beginning July 1, 2005, and

 

 

09500SB0307ham002 - 23 - LRB095 04310 HLH 40653 a

1 ending June 30, 2008, the Department shall allocate the amount
2 paid into the Metro-East Public Transportation Fund to the
3 District serving primarily the County of Madison.
4 (Source: P.A. 94-70, eff. 6-22-05.)
 
5     (30 ILCS 740/2-7)  (from Ch. 111 2/3, par. 667)
6     Sec. 2-7. Quarterly reports; annual audit.
7     (a) Any Metro-East Transit District participant shall, no
8 later than 60 days following the end of each quarter of any
9 fiscal year, file with the Department on forms provided by the
10 Department for that purpose, a report of the actual operating
11 deficit experienced during that quarter. The Department shall,
12 upon receipt of the quarterly report, determine whether the
13 operating deficits were incurred in conformity with the program
14 of proposed expenditures approved by the Department pursuant to
15 Section 2-11. Any Metro-East District may either monthly or
16 quarterly for any fiscal year file a request for the
17 participant's eligible share, as allocated in accordance with
18 Section 2-6, of the amounts transferred into the Metro-East
19 Public Transportation Fund.
20     (b) Each participant other than any Metro-East Transit
21 District participant shall, 30 days before the end of each
22 quarter, file with the Department on forms provided by the
23 Department for such purposes a report of the projected eligible
24 operating expenses to be incurred in the next quarter and 30
25 days before the third and fourth quarters of any fiscal year a

 

 

09500SB0307ham002 - 24 - LRB095 04310 HLH 40653 a

1 statement of actual eligible operating expenses incurred in the
2 preceding quarters. Except as otherwise provided in subsection
3 (b-5), within 45 days of receipt by the Department of such
4 quarterly report, the Comptroller shall order paid and the
5 Treasurer shall pay from the Downstate Public Transportation
6 Fund to each participant an amount equal to one-third of such
7 participant's eligible operating expenses; provided, however,
8 that in Fiscal Year 1997, the amount paid to each participant
9 from the Downstate Public Transportation Fund shall be an
10 amount equal to 47% of such participant's eligible operating
11 expenses and shall be increased to 49% in Fiscal Year 1998, 51%
12 in Fiscal Year 1999, 53% in Fiscal Year 2000, and 55% in Fiscal
13 Years Year 2001 through 2007, 65% in Fiscal Year 2008, and 70%
14 in Fiscal Year 2009 and thereafter; however, in any year that a
15 participant receives funding under subsection (i) of Section
16 2705-305 of the Department of Transportation Law (20 ILCS
17 2705/2705-305), that participant shall be eligible only for
18 assistance equal to the following percentage of its eligible
19 operating expenses: 42% in Fiscal Year 1997, 44% in Fiscal Year
20 1998, 46% in Fiscal Year 1999, 48% in Fiscal Year 2000, and 50%
21 in Fiscal Year 2001 and thereafter. Any such payment for the
22 third and fourth quarters of any fiscal year shall be adjusted
23 to reflect actual eligible operating expenses for preceding
24 quarters of such fiscal year. However, no participant shall
25 receive an amount less than that which was received in the
26 immediate prior year, provided in the event of a shortfall in

 

 

09500SB0307ham002 - 25 - LRB095 04310 HLH 40653 a

1 the fund those participants receiving less than their full
2 allocation pursuant to Section 2-6 of this Article shall be the
3 first participants to receive an amount not less than that
4 received in the immediate prior year.
5     (b-5) (Blank.) With respect to the District serving
6 primarily the counties of Monroe and St. Clair, beginning July
7 1, 2005 and each fiscal year thereafter, the District may, as
8 an alternative to the provisions of subsection (b) of Section
9 2-7, file a request with the Department for a monthly payment
10 of 1/12 of the amount appropriated to the District for that
11 fiscal year; except that, for the final month of the fiscal
12 year, the District's request shall be in an amount such that
13 the total payments made to the District in that fiscal year do
14 not exceed the lesser of (i) 55% of the District's eligible
15 operating expenses for that fiscal year or (ii) the total
16 amount appropriated to the District for that fiscal year.
17     (b-10) On July 1, 2009, each participant shall receive an
18 appropriation in an amount equal to 70% of its fiscal year 2008
19 eligible operating expenses adjusted by the annual 10% increase
20 required by Section 2-2.04 of this Act. In no case shall any
21 participant receive an appropriation that is less than its
22 fiscal year 2008 appropriation. Every fiscal year thereafter,
23 each participant's appropriation shall increase by 10% over the
24 appropriation established for the preceding fiscal year as
25 required by Section 2-2.04 of this Act.
26     (b-15) Beginning on July 1, 2007, and for each fiscal year

 

 

09500SB0307ham002 - 26 - LRB095 04310 HLH 40653 a

1 thereafter, each participant shall maintain a minimum local
2 share contribution (from farebox and all other local revenues)
3 equal to the actual amount provided in Fiscal Year 2006 or, for
4 new recipients, an amount equivalent to the local share
5 provided in the first year of participation.
6     (b-20) Any participant in the Downstate Public
7 Transportation Fund may use State operating assistance
8 pursuant to this Section to provide transportation services
9 within any county that is contiguous to its territorial
10 boundaries as defined by the Department and subject to
11 Departmental approval. Any such contiguous-area service
12 provided by a participant after July 1, 2007 must meet the
13 requirements of subsection (a) of Section 2-5.1.
14     (c) No later than 180 days following the last day of the
15 Fiscal Year each participant shall provide the Department with
16 an audit prepared by a Certified Public Accountant covering
17 that Fiscal Year. For those participants other than a
18 Metro-East Transit District, any discrepancy between the
19 grants paid and the percentage of the eligible operating
20 expenses provided for by paragraph (b) of this Section shall be
21 reconciled by appropriate payment or credit. In the case of any
22 Metro-East Transit District, any amount of payments from the
23 Metro-East Public Transportation Fund which exceed the
24 eligible deficit of the participant shall be reconciled by
25 appropriate payment or credit.
26 (Source: P.A. 94-70, eff. 6-22-05.)
 

 

 

09500SB0307ham002 - 27 - LRB095 04310 HLH 40653 a

1     (30 ILCS 740/2-15)  (from Ch. 111 2/3, par. 675.1)
2     Sec. 2-15. Except as otherwise provided in this Section,
3 all funds which remain in the Downstate Public Transportation
4 Fund or the Metro-East Public Transportation Fund after the
5 payment of the fourth quarterly payment to participants other
6 than Metro-East Transit District participants and the last
7 monthly payment to Metro-East Transit participants in each
8 fiscal year shall be transferred (i) to the General Revenue
9 Fund through fiscal year 2008 and (ii) to the Downstate Transit
10 Improvement Fund for fiscal year 2009 and each fiscal year
11 thereafter. Transfers shall be made no later than 90 days
12 following the end of such fiscal year. Beginning fiscal year
13 2010, all moneys each year in the Downstate Transit Improvement
14 Fund, held solely for the benefit of the participants in the
15 Downstate Public Transportation Fund and the Metro-East
16 Transit Fund, shall be appropriated to the Department to make
17 competitive capital grants to the participants of the
18 respective funds. However, such amount as the Department
19 determines to be necessary for (1) allocation to participants
20 for the purposes of Section 2-7 for the first quarter of the
21 succeeding fiscal year and (2) an amount equal to 2% of the
22 total allocations to participants in the fiscal year just ended
23 to be used for the purpose of audit adjustments shall be
24 retained in such Funds to be used by the Department for such
25 purposes.

 

 

09500SB0307ham002 - 28 - LRB095 04310 HLH 40653 a

1 (Source: P.A. 86-590.)
 
2     Section 7.5. The Retailers' Occupation Tax Act is amended
3 by changing Section 3 as follows:
 
4     (35 ILCS 120/3)  (from Ch. 120, par. 442)
5     Sec. 3. Except as provided in this Section, on or before
6 the twentieth day of each calendar month, every person engaged
7 in the business of selling tangible personal property at retail
8 in this State during the preceding calendar month shall file a
9 return with the Department, stating:
10         1. The name of the seller;
11         2. His residence address and the address of his
12     principal place of business and the address of the
13     principal place of business (if that is a different
14     address) from which he engages in the business of selling
15     tangible personal property at retail in this State;
16         3. Total amount of receipts received by him during the
17     preceding calendar month or quarter, as the case may be,
18     from sales of tangible personal property, and from services
19     furnished, by him during such preceding calendar month or
20     quarter;
21         4. Total amount received by him during the preceding
22     calendar month or quarter on charge and time sales of
23     tangible personal property, and from services furnished,
24     by him prior to the month or quarter for which the return

 

 

09500SB0307ham002 - 29 - LRB095 04310 HLH 40653 a

1     is filed;
2         5. Deductions allowed by law;
3         6. Gross receipts which were received by him during the
4     preceding calendar month or quarter and upon the basis of
5     which the tax is imposed;
6         7. The amount of credit provided in Section 2d of this
7     Act;
8         8. The amount of tax due;
9         9. The signature of the taxpayer; and
10         10. Such other reasonable information as the
11     Department may require.
12     If a taxpayer fails to sign a return within 30 days after
13 the proper notice and demand for signature by the Department,
14 the return shall be considered valid and any amount shown to be
15 due on the return shall be deemed assessed.
16     Each return shall be accompanied by the statement of
17 prepaid tax issued pursuant to Section 2e for which credit is
18 claimed.
19     Prior to October 1, 2003, and on and after September 1,
20 2004 a retailer may accept a Manufacturer's Purchase Credit
21 certification from a purchaser in satisfaction of Use Tax as
22 provided in Section 3-85 of the Use Tax Act if the purchaser
23 provides the appropriate documentation as required by Section
24 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
25 certification, accepted by a retailer prior to October 1, 2003
26 and on and after September 1, 2004 as provided in Section 3-85

 

 

09500SB0307ham002 - 30 - LRB095 04310 HLH 40653 a

1 of the Use Tax Act, may be used by that retailer to satisfy
2 Retailers' Occupation Tax liability in the amount claimed in
3 the certification, not to exceed 6.25% of the receipts subject
4 to tax from a qualifying purchase. A Manufacturer's Purchase
5 Credit reported on any original or amended return filed under
6 this Act after October 20, 2003 for reporting periods prior to
7 September 1, 2004 shall be disallowed. Manufacturer's
8 Purchaser Credit reported on annual returns due on or after
9 January 1, 2005 will be disallowed for periods prior to
10 September 1, 2004. No Manufacturer's Purchase Credit may be
11 used after September 30, 2003 through August 31, 2004 to
12 satisfy any tax liability imposed under this Act, including any
13 audit liability.
14     The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter. The
18 taxpayer shall also file a return with the Department for each
19 of the first two months of each calendar quarter, on or before
20 the twentieth day of the following calendar month, stating:
21         1. The name of the seller;
22         2. The address of the principal place of business from
23     which he engages in the business of selling tangible
24     personal property at retail in this State;
25         3. The total amount of taxable receipts received by him
26     during the preceding calendar month from sales of tangible

 

 

09500SB0307ham002 - 31 - LRB095 04310 HLH 40653 a

1     personal property by him during such preceding calendar
2     month, including receipts from charge and time sales, but
3     less all deductions allowed by law;
4         4. The amount of credit provided in Section 2d of this
5     Act;
6         5. The amount of tax due; and
7         6. Such other reasonable information as the Department
8     may require.
9     Beginning on October 1, 2003, any person who is not a
10 licensed distributor, importing distributor, or manufacturer,
11 as defined in the Liquor Control Act of 1934, but is engaged in
12 the business of selling, at retail, alcoholic liquor shall file
13 a statement with the Department of Revenue, in a format and at
14 a time prescribed by the Department, showing the total amount
15 paid for alcoholic liquor purchased during the preceding month
16 and such other information as is reasonably required by the
17 Department. The Department may adopt rules to require that this
18 statement be filed in an electronic or telephonic format. Such
19 rules may provide for exceptions from the filing requirements
20 of this paragraph. For the purposes of this paragraph, the term
21 "alcoholic liquor" shall have the meaning prescribed in the
22 Liquor Control Act of 1934.
23     Beginning on October 1, 2003, every distributor, importing
24 distributor, and manufacturer of alcoholic liquor as defined in
25 the Liquor Control Act of 1934, shall file a statement with the
26 Department of Revenue, no later than the 10th day of the month

 

 

09500SB0307ham002 - 32 - LRB095 04310 HLH 40653 a

1 for the preceding month during which transactions occurred, by
2 electronic means, showing the total amount of gross receipts
3 from the sale of alcoholic liquor sold or distributed during
4 the preceding month to purchasers; identifying the purchaser to
5 whom it was sold or distributed; the purchaser's tax
6 registration number; and such other information reasonably
7 required by the Department. A distributor, importing
8 distributor, or manufacturer of alcoholic liquor must
9 personally deliver, mail, or provide by electronic means to
10 each retailer listed on the monthly statement a report
11 containing a cumulative total of that distributor's, importing
12 distributor's, or manufacturer's total sales of alcoholic
13 liquor to that retailer no later than the 10th day of the month
14 for the preceding month during which the transaction occurred.
15 The distributor, importing distributor, or manufacturer shall
16 notify the retailer as to the method by which the distributor,
17 importing distributor, or manufacturer will provide the sales
18 information. If the retailer is unable to receive the sales
19 information by electronic means, the distributor, importing
20 distributor, or manufacturer shall furnish the sales
21 information by personal delivery or by mail. For purposes of
22 this paragraph, the term "electronic means" includes, but is
23 not limited to, the use of a secure Internet website, e-mail,
24 or facsimile.
25     Beginning with the month immediately following the
26 effective date of this amendatory Act of the 95th General

 

 

09500SB0307ham002 - 33 - LRB095 04310 HLH 40653 a

1 Assembly and for each month thereafter, a retailer of motor
2 fuel that is located in the metropolitan region must separately
3 record the gross receipts received by him or her from the
4 retail sale of motor fuel and the amount of tax properly due
5 and required to be paid on those sales (including amounts
6 prepaid by the retailer to the motor fuel distributor under
7 Section 2d of this Act). Beginning with the second month
8 immediately following the effective date of this amendatory Act
9 of the 95th General Assembly and for each month thereafter,
10 each retailer of motor fuel that is located within the
11 metropolitan region must file a report to the Department of
12 Revenue detailing the gross receipts that were received by him
13 or her from the retail sale of motor fuel during the preceding
14 calendar month or quarter, as the case may be, and the amount
15 of tax properly due and paid on those sales (including amounts
16 prepaid by the retailer to the motor fuel distributor under
17 Section 2d of this Act). The report must be filed in the manner
18 and format as prescribed by the Department of Revenue and is
19 due at the same time as the return filed by the retailer under
20 this Act. For purposes of this paragraph, "motor fuel" means
21 that term as defined in the Motor Fuel Tax Law, not including
22 aviation fuel, and "metropolitan region" means that term as
23 defined in the Regional Transportation Authority Act.
24     If a total amount of less than $1 is payable, refundable or
25 creditable, such amount shall be disregarded if it is less than
26 50 cents and shall be increased to $1 if it is 50 cents or more.

 

 

09500SB0307ham002 - 34 - LRB095 04310 HLH 40653 a

1     Beginning October 1, 1993, a taxpayer who has an average
2 monthly tax liability of $150,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. Beginning October 1, 1994, a taxpayer who has
5 an average monthly tax liability of $100,000 or more shall make
6 all payments required by rules of the Department by electronic
7 funds transfer. Beginning October 1, 1995, a taxpayer who has
8 an average monthly tax liability of $50,000 or more shall make
9 all payments required by rules of the Department by electronic
10 funds transfer. Beginning October 1, 2000, a taxpayer who has
11 an annual tax liability of $200,000 or more shall make all
12 payments required by rules of the Department by electronic
13 funds transfer. The term "annual tax liability" shall be the
14 sum of the taxpayer's liabilities under this Act, and under all
15 other State and local occupation and use tax laws administered
16 by the Department, for the immediately preceding calendar year.
17 The term "average monthly tax liability" shall be the sum of
18 the taxpayer's liabilities under this Act, and under all other
19 State and local occupation and use tax laws administered by the
20 Department, for the immediately preceding calendar year
21 divided by 12. Beginning on October 1, 2002, a taxpayer who has
22 a tax liability in the amount set forth in subsection (b) of
23 Section 2505-210 of the Department of Revenue Law shall make
24 all payments required by rules of the Department by electronic
25 funds transfer.
26     Before August 1 of each year beginning in 1993, the

 

 

09500SB0307ham002 - 35 - LRB095 04310 HLH 40653 a

1 Department shall notify all taxpayers required to make payments
2 by electronic funds transfer. All taxpayers required to make
3 payments by electronic funds transfer shall make those payments
4 for a minimum of one year beginning on October 1.
5     Any taxpayer not required to make payments by electronic
6 funds transfer may make payments by electronic funds transfer
7 with the permission of the Department.
8     All taxpayers required to make payment by electronic funds
9 transfer and any taxpayers authorized to voluntarily make
10 payments by electronic funds transfer shall make those payments
11 in the manner authorized by the Department.
12     The Department shall adopt such rules as are necessary to
13 effectuate a program of electronic funds transfer and the
14 requirements of this Section.
15     Any amount which is required to be shown or reported on any
16 return or other document under this Act shall, if such amount
17 is not a whole-dollar amount, be increased to the nearest
18 whole-dollar amount in any case where the fractional part of a
19 dollar is 50 cents or more, and decreased to the nearest
20 whole-dollar amount where the fractional part of a dollar is
21 less than 50 cents.
22     If the retailer is otherwise required to file a monthly
23 return and if the retailer's average monthly tax liability to
24 the Department does not exceed $200, the Department may
25 authorize his returns to be filed on a quarter annual basis,
26 with the return for January, February and March of a given year

 

 

09500SB0307ham002 - 36 - LRB095 04310 HLH 40653 a

1 being due by April 20 of such year; with the return for April,
2 May and June of a given year being due by July 20 of such year;
3 with the return for July, August and September of a given year
4 being due by October 20 of such year, and with the return for
5 October, November and December of a given year being due by
6 January 20 of the following year.
7     If the retailer is otherwise required to file a monthly or
8 quarterly return and if the retailer's average monthly tax
9 liability with the Department does not exceed $50, the
10 Department may authorize his returns to be filed on an annual
11 basis, with the return for a given year being due by January 20
12 of the following year.
13     Such quarter annual and annual returns, as to form and
14 substance, shall be subject to the same requirements as monthly
15 returns.
16     Notwithstanding any other provision in this Act concerning
17 the time within which a retailer may file his return, in the
18 case of any retailer who ceases to engage in a kind of business
19 which makes him responsible for filing returns under this Act,
20 such retailer shall file a final return under this Act with the
21 Department not more than one month after discontinuing such
22 business.
23     Where the same person has more than one business registered
24 with the Department under separate registrations under this
25 Act, such person may not file each return that is due as a
26 single return covering all such registered businesses, but

 

 

09500SB0307ham002 - 37 - LRB095 04310 HLH 40653 a

1 shall file separate returns for each such registered business.
2     In addition, with respect to motor vehicles, watercraft,
3 aircraft, and trailers that are required to be registered with
4 an agency of this State, every retailer selling this kind of
5 tangible personal property shall file, with the Department,
6 upon a form to be prescribed and supplied by the Department, a
7 separate return for each such item of tangible personal
8 property which the retailer sells, except that if, in the same
9 transaction, (i) a retailer of aircraft, watercraft, motor
10 vehicles or trailers transfers more than one aircraft,
11 watercraft, motor vehicle or trailer to another aircraft,
12 watercraft, motor vehicle retailer or trailer retailer for the
13 purpose of resale or (ii) a retailer of aircraft, watercraft,
14 motor vehicles, or trailers transfers more than one aircraft,
15 watercraft, motor vehicle, or trailer to a purchaser for use as
16 a qualifying rolling stock as provided in Section 2-5 of this
17 Act, then that seller may report the transfer of all aircraft,
18 watercraft, motor vehicles or trailers involved in that
19 transaction to the Department on the same uniform
20 invoice-transaction reporting return form. For purposes of
21 this Section, "watercraft" means a Class 2, Class 3, or Class 4
22 watercraft as defined in Section 3-2 of the Boat Registration
23 and Safety Act, a personal watercraft, or any boat equipped
24 with an inboard motor.
25     Any retailer who sells only motor vehicles, watercraft,
26 aircraft, or trailers that are required to be registered with

 

 

09500SB0307ham002 - 38 - LRB095 04310 HLH 40653 a

1 an agency of this State, so that all retailers' occupation tax
2 liability is required to be reported, and is reported, on such
3 transaction reporting returns and who is not otherwise required
4 to file monthly or quarterly returns, need not file monthly or
5 quarterly returns. However, those retailers shall be required
6 to file returns on an annual basis.
7     The transaction reporting return, in the case of motor
8 vehicles or trailers that are required to be registered with an
9 agency of this State, shall be the same document as the Uniform
10 Invoice referred to in Section 5-402 of The Illinois Vehicle
11 Code and must show the name and address of the seller; the name
12 and address of the purchaser; the amount of the selling price
13 including the amount allowed by the retailer for traded-in
14 property, if any; the amount allowed by the retailer for the
15 traded-in tangible personal property, if any, to the extent to
16 which Section 1 of this Act allows an exemption for the value
17 of traded-in property; the balance payable after deducting such
18 trade-in allowance from the total selling price; the amount of
19 tax due from the retailer with respect to such transaction; the
20 amount of tax collected from the purchaser by the retailer on
21 such transaction (or satisfactory evidence that such tax is not
22 due in that particular instance, if that is claimed to be the
23 fact); the place and date of the sale; a sufficient
24 identification of the property sold; such other information as
25 is required in Section 5-402 of The Illinois Vehicle Code, and
26 such other information as the Department may reasonably

 

 

09500SB0307ham002 - 39 - LRB095 04310 HLH 40653 a

1 require.
2     The transaction reporting return in the case of watercraft
3 or aircraft must show the name and address of the seller; the
4 name and address of the purchaser; the amount of the selling
5 price including the amount allowed by the retailer for
6 traded-in property, if any; the amount allowed by the retailer
7 for the traded-in tangible personal property, if any, to the
8 extent to which Section 1 of this Act allows an exemption for
9 the value of traded-in property; the balance payable after
10 deducting such trade-in allowance from the total selling price;
11 the amount of tax due from the retailer with respect to such
12 transaction; the amount of tax collected from the purchaser by
13 the retailer on such transaction (or satisfactory evidence that
14 such tax is not due in that particular instance, if that is
15 claimed to be the fact); the place and date of the sale, a
16 sufficient identification of the property sold, and such other
17 information as the Department may reasonably require.
18     Such transaction reporting return shall be filed not later
19 than 20 days after the day of delivery of the item that is
20 being sold, but may be filed by the retailer at any time sooner
21 than that if he chooses to do so. The transaction reporting
22 return and tax remittance or proof of exemption from the
23 Illinois use tax may be transmitted to the Department by way of
24 the State agency with which, or State officer with whom the
25 tangible personal property must be titled or registered (if
26 titling or registration is required) if the Department and such

 

 

09500SB0307ham002 - 40 - LRB095 04310 HLH 40653 a

1 agency or State officer determine that this procedure will
2 expedite the processing of applications for title or
3 registration.
4     With each such transaction reporting return, the retailer
5 shall remit the proper amount of tax due (or shall submit
6 satisfactory evidence that the sale is not taxable if that is
7 the case), to the Department or its agents, whereupon the
8 Department shall issue, in the purchaser's name, a use tax
9 receipt (or a certificate of exemption if the Department is
10 satisfied that the particular sale is tax exempt) which such
11 purchaser may submit to the agency with which, or State officer
12 with whom, he must title or register the tangible personal
13 property that is involved (if titling or registration is
14 required) in support of such purchaser's application for an
15 Illinois certificate or other evidence of title or registration
16 to such tangible personal property.
17     No retailer's failure or refusal to remit tax under this
18 Act precludes a user, who has paid the proper tax to the
19 retailer, from obtaining his certificate of title or other
20 evidence of title or registration (if titling or registration
21 is required) upon satisfying the Department that such user has
22 paid the proper tax (if tax is due) to the retailer. The
23 Department shall adopt appropriate rules to carry out the
24 mandate of this paragraph.
25     If the user who would otherwise pay tax to the retailer
26 wants the transaction reporting return filed and the payment of

 

 

09500SB0307ham002 - 41 - LRB095 04310 HLH 40653 a

1 the tax or proof of exemption made to the Department before the
2 retailer is willing to take these actions and such user has not
3 paid the tax to the retailer, such user may certify to the fact
4 of such delay by the retailer and may (upon the Department
5 being satisfied of the truth of such certification) transmit
6 the information required by the transaction reporting return
7 and the remittance for tax or proof of exemption directly to
8 the Department and obtain his tax receipt or exemption
9 determination, in which event the transaction reporting return
10 and tax remittance (if a tax payment was required) shall be
11 credited by the Department to the proper retailer's account
12 with the Department, but without the 2.1% or 1.75% discount
13 provided for in this Section being allowed. When the user pays
14 the tax directly to the Department, he shall pay the tax in the
15 same amount and in the same form in which it would be remitted
16 if the tax had been remitted to the Department by the retailer.
17     Refunds made by the seller during the preceding return
18 period to purchasers, on account of tangible personal property
19 returned to the seller, shall be allowed as a deduction under
20 subdivision 5 of his monthly or quarterly return, as the case
21 may be, in case the seller had theretofore included the
22 receipts from the sale of such tangible personal property in a
23 return filed by him and had paid the tax imposed by this Act
24 with respect to such receipts.
25     Where the seller is a corporation, the return filed on
26 behalf of such corporation shall be signed by the president,

 

 

09500SB0307ham002 - 42 - LRB095 04310 HLH 40653 a

1 vice-president, secretary or treasurer or by the properly
2 accredited agent of such corporation.
3     Where the seller is a limited liability company, the return
4 filed on behalf of the limited liability company shall be
5 signed by a manager, member, or properly accredited agent of
6 the limited liability company.
7     Except as provided in this Section, the retailer filing the
8 return under this Section shall, at the time of filing such
9 return, pay to the Department the amount of tax imposed by this
10 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
11 on and after January 1, 1990, or $5 per calendar year,
12 whichever is greater, which is allowed to reimburse the
13 retailer for the expenses incurred in keeping records,
14 preparing and filing returns, remitting the tax and supplying
15 data to the Department on request. Any prepayment made pursuant
16 to Section 2d of this Act shall be included in the amount on
17 which such 2.1% or 1.75% discount is computed. In the case of
18 retailers who report and pay the tax on a transaction by
19 transaction basis, as provided in this Section, such discount
20 shall be taken with each such tax remittance instead of when
21 such retailer files his periodic return.
22     Before October 1, 2000, if the taxpayer's average monthly
23 tax liability to the Department under this Act, the Use Tax
24 Act, the Service Occupation Tax Act, and the Service Use Tax
25 Act, excluding any liability for prepaid sales tax to be
26 remitted in accordance with Section 2d of this Act, was $10,000

 

 

09500SB0307ham002 - 43 - LRB095 04310 HLH 40653 a

1 or more during the preceding 4 complete calendar quarters, he
2 shall file a return with the Department each month by the 20th
3 day of the month next following the month during which such tax
4 liability is incurred and shall make payments to the Department
5 on or before the 7th, 15th, 22nd and last day of the month
6 during which such liability is incurred. On and after October
7 1, 2000, if the taxpayer's average monthly tax liability to the
8 Department under this Act, the Use Tax Act, the Service
9 Occupation Tax Act, and the Service Use Tax Act, excluding any
10 liability for prepaid sales tax to be remitted in accordance
11 with Section 2d of this Act, was $20,000 or more during the
12 preceding 4 complete calendar quarters, he shall file a return
13 with the Department each month by the 20th day of the month
14 next following the month during which such tax liability is
15 incurred and shall make payment to the Department on or before
16 the 7th, 15th, 22nd and last day of the month during which such
17 liability is incurred. If the month during which such tax
18 liability is incurred began prior to January 1, 1985, each
19 payment shall be in an amount equal to 1/4 of the taxpayer's
20 actual liability for the month or an amount set by the
21 Department not to exceed 1/4 of the average monthly liability
22 of the taxpayer to the Department for the preceding 4 complete
23 calendar quarters (excluding the month of highest liability and
24 the month of lowest liability in such 4 quarter period). If the
25 month during which such tax liability is incurred begins on or
26 after January 1, 1985 and prior to January 1, 1987, each

 

 

09500SB0307ham002 - 44 - LRB095 04310 HLH 40653 a

1 payment shall be in an amount equal to 22.5% of the taxpayer's
2 actual liability for the month or 27.5% of the taxpayer's
3 liability for the same calendar month of the preceding year. If
4 the month during which such tax liability is incurred begins on
5 or after January 1, 1987 and prior to January 1, 1988, each
6 payment shall be in an amount equal to 22.5% of the taxpayer's
7 actual liability for the month or 26.25% of the taxpayer's
8 liability for the same calendar month of the preceding year. If
9 the month during which such tax liability is incurred begins on
10 or after January 1, 1988, and prior to January 1, 1989, or
11 begins on or after January 1, 1996, each payment shall be in an
12 amount equal to 22.5% of the taxpayer's actual liability for
13 the month or 25% of the taxpayer's liability for the same
14 calendar month of the preceding year. If the month during which
15 such tax liability is incurred begins on or after January 1,
16 1989, and prior to January 1, 1996, each payment shall be in an
17 amount equal to 22.5% of the taxpayer's actual liability for
18 the month or 25% of the taxpayer's liability for the same
19 calendar month of the preceding year or 100% of the taxpayer's
20 actual liability for the quarter monthly reporting period. The
21 amount of such quarter monthly payments shall be credited
22 against the final tax liability of the taxpayer's return for
23 that month. Before October 1, 2000, once applicable, the
24 requirement of the making of quarter monthly payments to the
25 Department by taxpayers having an average monthly tax liability
26 of $10,000 or more as determined in the manner provided above

 

 

09500SB0307ham002 - 45 - LRB095 04310 HLH 40653 a

1 shall continue until such taxpayer's average monthly liability
2 to the Department during the preceding 4 complete calendar
3 quarters (excluding the month of highest liability and the
4 month of lowest liability) is less than $9,000, or until such
5 taxpayer's average monthly liability to the Department as
6 computed for each calendar quarter of the 4 preceding complete
7 calendar quarter period is less than $10,000. However, if a
8 taxpayer can show the Department that a substantial change in
9 the taxpayer's business has occurred which causes the taxpayer
10 to anticipate that his average monthly tax liability for the
11 reasonably foreseeable future will fall below the $10,000
12 threshold stated above, then such taxpayer may petition the
13 Department for a change in such taxpayer's reporting status. On
14 and after October 1, 2000, once applicable, the requirement of
15 the making of quarter monthly payments to the Department by
16 taxpayers having an average monthly tax liability of $20,000 or
17 more as determined in the manner provided above shall continue
18 until such taxpayer's average monthly liability to the
19 Department during the preceding 4 complete calendar quarters
20 (excluding the month of highest liability and the month of
21 lowest liability) is less than $19,000 or until such taxpayer's
22 average monthly liability to the Department as computed for
23 each calendar quarter of the 4 preceding complete calendar
24 quarter period is less than $20,000. However, if a taxpayer can
25 show the Department that a substantial change in the taxpayer's
26 business has occurred which causes the taxpayer to anticipate

 

 

09500SB0307ham002 - 46 - LRB095 04310 HLH 40653 a

1 that his average monthly tax liability for the reasonably
2 foreseeable future will fall below the $20,000 threshold stated
3 above, then such taxpayer may petition the Department for a
4 change in such taxpayer's reporting status. The Department
5 shall change such taxpayer's reporting status unless it finds
6 that such change is seasonal in nature and not likely to be
7 long term. If any such quarter monthly payment is not paid at
8 the time or in the amount required by this Section, then the
9 taxpayer shall be liable for penalties and interest on the
10 difference between the minimum amount due as a payment and the
11 amount of such quarter monthly payment actually and timely
12 paid, except insofar as the taxpayer has previously made
13 payments for that month to the Department in excess of the
14 minimum payments previously due as provided in this Section.
15 The Department shall make reasonable rules and regulations to
16 govern the quarter monthly payment amount and quarter monthly
17 payment dates for taxpayers who file on other than a calendar
18 monthly basis.
19     The provisions of this paragraph apply before October 1,
20 2001. Without regard to whether a taxpayer is required to make
21 quarter monthly payments as specified above, any taxpayer who
22 is required by Section 2d of this Act to collect and remit
23 prepaid taxes and has collected prepaid taxes which average in
24 excess of $25,000 per month during the preceding 2 complete
25 calendar quarters, shall file a return with the Department as
26 required by Section 2f and shall make payments to the

 

 

09500SB0307ham002 - 47 - LRB095 04310 HLH 40653 a

1 Department on or before the 7th, 15th, 22nd and last day of the
2 month during which such liability is incurred. If the month
3 during which such tax liability is incurred began prior to the
4 effective date of this amendatory Act of 1985, each payment
5 shall be in an amount not less than 22.5% of the taxpayer's
6 actual liability under Section 2d. If the month during which
7 such tax liability is incurred begins on or after January 1,
8 1986, each payment shall be in an amount equal to 22.5% of the
9 taxpayer's actual liability for the month or 27.5% of the
10 taxpayer's liability for the same calendar month of the
11 preceding calendar year. If the month during which such tax
12 liability is incurred begins on or after January 1, 1987, each
13 payment shall be in an amount equal to 22.5% of the taxpayer's
14 actual liability for the month or 26.25% of the taxpayer's
15 liability for the same calendar month of the preceding year.
16 The amount of such quarter monthly payments shall be credited
17 against the final tax liability of the taxpayer's return for
18 that month filed under this Section or Section 2f, as the case
19 may be. Once applicable, the requirement of the making of
20 quarter monthly payments to the Department pursuant to this
21 paragraph shall continue until such taxpayer's average monthly
22 prepaid tax collections during the preceding 2 complete
23 calendar quarters is $25,000 or less. If any such quarter
24 monthly payment is not paid at the time or in the amount
25 required, the taxpayer shall be liable for penalties and
26 interest on such difference, except insofar as the taxpayer has

 

 

09500SB0307ham002 - 48 - LRB095 04310 HLH 40653 a

1 previously made payments for that month in excess of the
2 minimum payments previously due.
3     The provisions of this paragraph apply on and after October
4 1, 2001. Without regard to whether a taxpayer is required to
5 make quarter monthly payments as specified above, any taxpayer
6 who is required by Section 2d of this Act to collect and remit
7 prepaid taxes and has collected prepaid taxes that average in
8 excess of $20,000 per month during the preceding 4 complete
9 calendar quarters shall file a return with the Department as
10 required by Section 2f and shall make payments to the
11 Department on or before the 7th, 15th, 22nd and last day of the
12 month during which the liability is incurred. Each payment
13 shall be in an amount equal to 22.5% of the taxpayer's actual
14 liability for the month or 25% of the taxpayer's liability for
15 the same calendar month of the preceding year. The amount of
16 the quarter monthly payments shall be credited against the
17 final tax liability of the taxpayer's return for that month
18 filed under this Section or Section 2f, as the case may be.
19 Once applicable, the requirement of the making of quarter
20 monthly payments to the Department pursuant to this paragraph
21 shall continue until the taxpayer's average monthly prepaid tax
22 collections during the preceding 4 complete calendar quarters
23 (excluding the month of highest liability and the month of
24 lowest liability) is less than $19,000 or until such taxpayer's
25 average monthly liability to the Department as computed for
26 each calendar quarter of the 4 preceding complete calendar

 

 

09500SB0307ham002 - 49 - LRB095 04310 HLH 40653 a

1 quarters is less than $20,000. If any such quarter monthly
2 payment is not paid at the time or in the amount required, the
3 taxpayer shall be liable for penalties and interest on such
4 difference, except insofar as the taxpayer has previously made
5 payments for that month in excess of the minimum payments
6 previously due.
7     If any payment provided for in this Section exceeds the
8 taxpayer's liabilities under this Act, the Use Tax Act, the
9 Service Occupation Tax Act and the Service Use Tax Act, as
10 shown on an original monthly return, the Department shall, if
11 requested by the taxpayer, issue to the taxpayer a credit
12 memorandum no later than 30 days after the date of payment. The
13 credit evidenced by such credit memorandum may be assigned by
14 the taxpayer to a similar taxpayer under this Act, the Use Tax
15 Act, the Service Occupation Tax Act or the Service Use Tax Act,
16 in accordance with reasonable rules and regulations to be
17 prescribed by the Department. If no such request is made, the
18 taxpayer may credit such excess payment against tax liability
19 subsequently to be remitted to the Department under this Act,
20 the Use Tax Act, the Service Occupation Tax Act or the Service
21 Use Tax Act, in accordance with reasonable rules and
22 regulations prescribed by the Department. If the Department
23 subsequently determined that all or any part of the credit
24 taken was not actually due to the taxpayer, the taxpayer's 2.1%
25 and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
26 of the difference between the credit taken and that actually

 

 

09500SB0307ham002 - 50 - LRB095 04310 HLH 40653 a

1 due, and that taxpayer shall be liable for penalties and
2 interest on such difference.
3     If a retailer of motor fuel is entitled to a credit under
4 Section 2d of this Act which exceeds the taxpayer's liability
5 to the Department under this Act for the month which the
6 taxpayer is filing a return, the Department shall issue the
7 taxpayer a credit memorandum for the excess.
8     Beginning January 1, 1990, each month the Department shall
9 pay into the Local Government Tax Fund, a special fund in the
10 State treasury which is hereby created, the net revenue
11 realized for the preceding month from the 1% tax on sales of
12 food for human consumption which is to be consumed off the
13 premises where it is sold (other than alcoholic beverages, soft
14 drinks and food which has been prepared for immediate
15 consumption) and prescription and nonprescription medicines,
16 drugs, medical appliances and insulin, urine testing
17 materials, syringes and needles used by diabetics.
18     Beginning January 1, 1990, each month the Department shall
19 pay into the County and Mass Transit District Fund, a special
20 fund in the State treasury which is hereby created, 4% of the
21 net revenue realized for the preceding month from the 6.25%
22 general rate.
23     Beginning August 1, 2000, each month the Department shall
24 pay into the County and Mass Transit District Fund 20% of the
25 net revenue realized for the preceding month from the 1.25%
26 rate on the selling price of motor fuel and gasohol.

 

 

09500SB0307ham002 - 51 - LRB095 04310 HLH 40653 a

1     Beginning January 1, 1990, each month the Department shall
2 pay into the Local Government Tax Fund 16% of the net revenue
3 realized for the preceding month from the 6.25% general rate on
4 the selling price of tangible personal property.
5     Beginning August 1, 2000, each month the Department shall
6 pay into the Local Government Tax Fund 80% of the net revenue
7 realized for the preceding month from the 1.25% rate on the
8 selling price of motor fuel and gasohol.
9     Of the remainder of the moneys received by the Department
10 pursuant to this Act, (a) 1.75% thereof shall be paid into the
11 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
12 and after July 1, 1989, 3.8% thereof shall be paid into the
13 Build Illinois Fund; provided, however, that if in any fiscal
14 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
15 may be, of the moneys received by the Department and required
16 to be paid into the Build Illinois Fund pursuant to this Act,
17 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
18 Act, and Section 9 of the Service Occupation Tax Act, such Acts
19 being hereinafter called the "Tax Acts" and such aggregate of
20 2.2% or 3.8%, as the case may be, of moneys being hereinafter
21 called the "Tax Act Amount", and (2) the amount transferred to
22 the Build Illinois Fund from the State and Local Sales Tax
23 Reform Fund shall be less than the Annual Specified Amount (as
24 hereinafter defined), an amount equal to the difference shall
25 be immediately paid into the Build Illinois Fund from other
26 moneys received by the Department pursuant to the Tax Acts; the

 

 

09500SB0307ham002 - 52 - LRB095 04310 HLH 40653 a

1 "Annual Specified Amount" means the amounts specified below for
2 fiscal years 1986 through 1993:
3Fiscal YearAnnual Specified Amount
41986$54,800,000
51987$76,650,000
61988$80,480,000
71989$88,510,000
81990$115,330,000
91991$145,470,000
101992$182,730,000
111993$206,520,000;
12 and means the Certified Annual Debt Service Requirement (as
13 defined in Section 13 of the Build Illinois Bond Act) or the
14 Tax Act Amount, whichever is greater, for fiscal year 1994 and
15 each fiscal year thereafter; and further provided, that if on
16 the last business day of any month the sum of (1) the Tax Act
17 Amount required to be deposited into the Build Illinois Bond
18 Account in the Build Illinois Fund during such month and (2)
19 the amount transferred to the Build Illinois Fund from the
20 State and Local Sales Tax Reform Fund shall have been less than
21 1/12 of the Annual Specified Amount, an amount equal to the
22 difference shall be immediately paid into the Build Illinois
23 Fund from other moneys received by the Department pursuant to
24 the Tax Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to

 

 

09500SB0307ham002 - 53 - LRB095 04310 HLH 40653 a

1 this clause (b) for any fiscal year in excess of the greater of
2 (i) the Tax Act Amount or (ii) the Annual Specified Amount for
3 such fiscal year. The amounts payable into the Build Illinois
4 Fund under clause (b) of the first sentence in this paragraph
5 shall be payable only until such time as the aggregate amount
6 on deposit under each trust indenture securing Bonds issued and
7 outstanding pursuant to the Build Illinois Bond Act is
8 sufficient, taking into account any future investment income,
9 to fully provide, in accordance with such indenture, for the
10 defeasance of or the payment of the principal of, premium, if
11 any, and interest on the Bonds secured by such indenture and on
12 any Bonds expected to be issued thereafter and all fees and
13 costs payable with respect thereto, all as certified by the
14 Director of the Bureau of the Budget (now Governor's Office of
15 Management and Budget). If on the last business day of any
16 month in which Bonds are outstanding pursuant to the Build
17 Illinois Bond Act, the aggregate of moneys deposited in the
18 Build Illinois Bond Account in the Build Illinois Fund in such
19 month shall be less than the amount required to be transferred
20 in such month from the Build Illinois Bond Account to the Build
21 Illinois Bond Retirement and Interest Fund pursuant to Section
22 13 of the Build Illinois Bond Act, an amount equal to such
23 deficiency shall be immediately paid from other moneys received
24 by the Department pursuant to the Tax Acts to the Build
25 Illinois Fund; provided, however, that any amounts paid to the
26 Build Illinois Fund in any fiscal year pursuant to this

 

 

09500SB0307ham002 - 54 - LRB095 04310 HLH 40653 a

1 sentence shall be deemed to constitute payments pursuant to
2 clause (b) of the first sentence of this paragraph and shall
3 reduce the amount otherwise payable for such fiscal year
4 pursuant to that clause (b). The moneys received by the
5 Department pursuant to this Act and required to be deposited
6 into the Build Illinois Fund are subject to the pledge, claim
7 and charge set forth in Section 12 of the Build Illinois Bond
8 Act.
9     Subject to payment of amounts into the Build Illinois Fund
10 as provided in the preceding paragraph or in any amendment
11 thereto hereafter enacted, the following specified monthly
12 installment of the amount requested in the certificate of the
13 Chairman of the Metropolitan Pier and Exposition Authority
14 provided under Section 8.25f of the State Finance Act, but not
15 in excess of sums designated as "Total Deposit", shall be
16 deposited in the aggregate from collections under Section 9 of
17 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
18 9 of the Service Occupation Tax Act, and Section 3 of the
19 Retailers' Occupation Tax Act into the McCormick Place
20 Expansion Project Fund in the specified fiscal years.
21Fiscal YearTotal Deposit
221993         $0
231994 53,000,000
241995 58,000,000
251996 61,000,000

 

 

09500SB0307ham002 - 55 - LRB095 04310 HLH 40653 a

11997 64,000,000
21998 68,000,000
31999 71,000,000
42000 75,000,000
52001 80,000,000
62002 93,000,000
72003 99,000,000
82004103,000,000
92005108,000,000
102006113,000,000
112007119,000,000
122008126,000,000
132009132,000,000
142010139,000,000
152011146,000,000
162012153,000,000
172013161,000,000
182014170,000,000
192015179,000,000
202016189,000,000
212017199,000,000
222018210,000,000
232019221,000,000
242020233,000,000
252021246,000,000
262022260,000,000

 

 

09500SB0307ham002 - 56 - LRB095 04310 HLH 40653 a

12023 and275,000,000
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2042.
9     Beginning July 20, 1993 and in each month of each fiscal
10 year thereafter, one-eighth of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority for that fiscal year, less the amount
13 deposited into the McCormick Place Expansion Project Fund by
14 the State Treasurer in the respective month under subsection
15 (g) of Section 13 of the Metropolitan Pier and Exposition
16 Authority Act, plus cumulative deficiencies in the deposits
17 required under this Section for previous months and years,
18 shall be deposited into the McCormick Place Expansion Project
19 Fund, until the full amount requested for the fiscal year, but
20 not in excess of the amount specified above as "Total Deposit",
21 has been deposited.
22     Subject to payment of amounts into the Build Illinois Fund
23 and the McCormick Place Expansion Project Fund pursuant to the
24 preceding paragraphs or in any amendments thereto hereafter
25 enacted, beginning July 1, 1993, the Department shall each
26 month pay into the Illinois Tax Increment Fund 0.27% of 80% of

 

 

09500SB0307ham002 - 57 - LRB095 04310 HLH 40653 a

1 the net revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4     Subject to payment of amounts into the Build Illinois Fund
5 and the McCormick Place Expansion Project Fund pursuant to the
6 preceding paragraphs or in any amendments thereto hereafter
7 enacted, beginning with the receipt of the first report of
8 taxes paid by an eligible business and continuing for a 25-year
9 period, the Department shall each month pay into the Energy
10 Infrastructure Fund 80% of the net revenue realized from the
11 6.25% general rate on the selling price of Illinois-mined coal
12 that was sold to an eligible business. For purposes of this
13 paragraph, the term "eligible business" means a new electric
14 generating facility certified pursuant to Section 605-332 of
15 the Department of Commerce and Economic Opportunity Law of the
16 Civil Administrative Code of Illinois.
17     Of the remainder of the moneys received by the Department
18 pursuant to this Act, 75% thereof shall be paid into the State
19 Treasury and 25% shall be reserved in a special account and
20 used only for the transfer to the Common School Fund as part of
21 the monthly transfer from the General Revenue Fund in
22 accordance with Section 8a of the State Finance Act.
23     The Department may, upon separate written notice to a
24 taxpayer, require the taxpayer to prepare and file with the
25 Department on a form prescribed by the Department within not
26 less than 60 days after receipt of the notice an annual

 

 

09500SB0307ham002 - 58 - LRB095 04310 HLH 40653 a

1 information return for the tax year specified in the notice.
2 Such annual return to the Department shall include a statement
3 of gross receipts as shown by the retailer's last Federal
4 income tax return. If the total receipts of the business as
5 reported in the Federal income tax return do not agree with the
6 gross receipts reported to the Department of Revenue for the
7 same period, the retailer shall attach to his annual return a
8 schedule showing a reconciliation of the 2 amounts and the
9 reasons for the difference. The retailer's annual return to the
10 Department shall also disclose the cost of goods sold by the
11 retailer during the year covered by such return, opening and
12 closing inventories of such goods for such year, costs of goods
13 used from stock or taken from stock and given away by the
14 retailer during such year, payroll information of the
15 retailer's business during such year and any additional
16 reasonable information which the Department deems would be
17 helpful in determining the accuracy of the monthly, quarterly
18 or annual returns filed by such retailer as provided for in
19 this Section.
20     If the annual information return required by this Section
21 is not filed when and as required, the taxpayer shall be liable
22 as follows:
23         (i) Until January 1, 1994, the taxpayer shall be liable
24     for a penalty equal to 1/6 of 1% of the tax due from such
25     taxpayer under this Act during the period to be covered by
26     the annual return for each month or fraction of a month

 

 

09500SB0307ham002 - 59 - LRB095 04310 HLH 40653 a

1     until such return is filed as required, the penalty to be
2     assessed and collected in the same manner as any other
3     penalty provided for in this Act.
4         (ii) On and after January 1, 1994, the taxpayer shall
5     be liable for a penalty as described in Section 3-4 of the
6     Uniform Penalty and Interest Act.
7     The chief executive officer, proprietor, owner or highest
8 ranking manager shall sign the annual return to certify the
9 accuracy of the information contained therein. Any person who
10 willfully signs the annual return containing false or
11 inaccurate information shall be guilty of perjury and punished
12 accordingly. The annual return form prescribed by the
13 Department shall include a warning that the person signing the
14 return may be liable for perjury.
15     The provisions of this Section concerning the filing of an
16 annual information return do not apply to a retailer who is not
17 required to file an income tax return with the United States
18 Government.
19     As soon as possible after the first day of each month, upon
20 certification of the Department of Revenue, the Comptroller
21 shall order transferred and the Treasurer shall transfer from
22 the General Revenue Fund to the Motor Fuel Tax Fund an amount
23 equal to 1.7% of 80% of the net revenue realized under this Act
24 for the second preceding month. Beginning April 1, 2000, this
25 transfer is no longer required and shall not be made.
26     Net revenue realized for a month shall be the revenue

 

 

09500SB0307ham002 - 60 - LRB095 04310 HLH 40653 a

1 collected by the State pursuant to this Act, less the amount
2 paid out during that month as refunds to taxpayers for
3 overpayment of liability.
4     For greater simplicity of administration, manufacturers,
5 importers and wholesalers whose products are sold at retail in
6 Illinois by numerous retailers, and who wish to do so, may
7 assume the responsibility for accounting and paying to the
8 Department all tax accruing under this Act with respect to such
9 sales, if the retailers who are affected do not make written
10 objection to the Department to this arrangement.
11     Any person who promotes, organizes, provides retail
12 selling space for concessionaires or other types of sellers at
13 the Illinois State Fair, DuQuoin State Fair, county fairs,
14 local fairs, art shows, flea markets and similar exhibitions or
15 events, including any transient merchant as defined by Section
16 2 of the Transient Merchant Act of 1987, is required to file a
17 report with the Department providing the name of the merchant's
18 business, the name of the person or persons engaged in
19 merchant's business, the permanent address and Illinois
20 Retailers Occupation Tax Registration Number of the merchant,
21 the dates and location of the event and other reasonable
22 information that the Department may require. The report must be
23 filed not later than the 20th day of the month next following
24 the month during which the event with retail sales was held.
25 Any person who fails to file a report required by this Section
26 commits a business offense and is subject to a fine not to

 

 

09500SB0307ham002 - 61 - LRB095 04310 HLH 40653 a

1 exceed $250.
2     Any person engaged in the business of selling tangible
3 personal property at retail as a concessionaire or other type
4 of seller at the Illinois State Fair, county fairs, art shows,
5 flea markets and similar exhibitions or events, or any
6 transient merchants, as defined by Section 2 of the Transient
7 Merchant Act of 1987, may be required to make a daily report of
8 the amount of such sales to the Department and to make a daily
9 payment of the full amount of tax due. The Department shall
10 impose this requirement when it finds that there is a
11 significant risk of loss of revenue to the State at such an
12 exhibition or event. Such a finding shall be based on evidence
13 that a substantial number of concessionaires or other sellers
14 who are not residents of Illinois will be engaging in the
15 business of selling tangible personal property at retail at the
16 exhibition or event, or other evidence of a significant risk of
17 loss of revenue to the State. The Department shall notify
18 concessionaires and other sellers affected by the imposition of
19 this requirement. In the absence of notification by the
20 Department, the concessionaires and other sellers shall file
21 their returns as otherwise required in this Section.
22 (Source: P.A. 94-1074, eff. 12-26-06; 95-331, eff. 8-21-07.)
 
23     Section 7.7. The Uniform Penalty and Interest Act is
24 amended by adding Section 3-7.7 as follows:
 

 

 

09500SB0307ham002 - 62 - LRB095 04310 HLH 40653 a

1     (35 ILCS 735/3-7.7 new)
2     Sec. 3-7.7. Penalty for failure to timely file a report or
3 accurately report on sales of motor fuel in the metropolitan
4 region.
5     (a) Any retailer who fails to timely file the report
6 required by Section 3 of the Retailers' Occupation Tax Act
7 concerning gross receipts from and tax properly due and paid on
8 the sale of motor fuel in the metropolitan region shall pay the
9 following penalty:
10         First occurrence...............................$ 250
11         Second and each occurrence thereafter..........$1,000
12     (b) Any retailer who fails to accurately report the amount
13 required by Section 3 of the Retailers' Occupation Tax Act
14 concerning gross receipts from and tax properly due and paid on
15 the sale of motor fuel in the metropolitan region shall pay the
16 following penalty:
17         First occurrence ..............................$ 250
18         Second and each occurrence thereafter..........$1,000
19     (c) For purposes of this Section, "motor fuel" means that
20 term as defined in the Motor Fuel Tax Law, not including
21 aviation fuel, and "metropolitan region" means that term as
22 defined in the Regional Transportation Authority Act.
23     (d) The penalty imposed under this Section shall be deemed
24 assessed at the time of notice by the Department and shall be
25 treated for all purposes, including collection and allocation,
26 as part of the tax to which the report relates.
 

 

 

09500SB0307ham002 - 63 - LRB095 04310 HLH 40653 a

1     Section 8. The Illinois Pension Code is amended by changing
2 Section 22-101 and by adding Section 22-101B as follows:
 
3     (40 ILCS 5/22-101)  (from Ch. 108 1/2, par. 22-101)
4     Sec. 22-101. Retirement Plan for Chicago Transit Authority
5 Employees. Metropolitan Transit Authority (CTA) Pension Fund.
6     (a) There shall be established and maintained by the
7 Authority created by the "Metropolitan Transit Authority Act",
8 approved April 12, 1945, as amended, (referred to in this
9 Section as the "Authority") a financially sound pension and
10 retirement system adequate to provide for all payments when due
11 under such established system or as modified from time to time
12 by ordinance of the Chicago Transit Board or collective
13 bargaining agreement. For this purpose, the Board must make
14 contributions to the established system as required under this
15 Section and may make any additional contributions provided for
16 by Board ordinance or collective bargaining agreement. The
17 participating employees shall make such periodic payments to
18 the established system as required under this Section and may
19 make any additional contributions provided for may be
20 determined by Board ordinance or collective bargaining
21 agreement. The Board, in lieu of social security payments
22 required to be paid by private corporations engaged in similar
23 activity, shall make payments into such established system at
24 least equal in amount to the amount so required to be paid by

 

 

09500SB0307ham002 - 64 - LRB095 04310 HLH 40653 a

1 such private corporations.
2     Provisions shall be made by the Board for all Board
3 members, officers and employees of the Authority appointed
4 pursuant to the "Metropolitan Transit Authority Act" to become,
5 subject to reasonable rules and regulations, participants
6 members or beneficiaries of the pension or retirement system
7 with uniform rights, privileges, obligations and status as to
8 the class in which such officers and employees belong. The
9 terms, conditions and provisions of any pension or retirement
10 system or of any amendment or modification thereof affecting
11 employees who are members of any labor organization may be
12 established, amended or modified by agreement with such labor
13 organization, provided the terms, conditions and provisions
14 must be consistent with this Act, the annual funding levels for
15 the retirement system established by law must be met and the
16 benefits paid to future participants in the system may not
17 exceed the benefit ceilings set for future participants under
18 this Act and the contribution levels required by the Authority
19 and its employees may not be less than the contribution levels
20 established under this Act but must be consistent with the
21 requirements of this Section.
22     (b) The Board of Trustees shall consist of 11 members
23 appointed as follows: (i) 5 trustees shall be appointed by the
24 Chicago Transit Board; (ii) 3 trustees shall be appointed by an
25 organization representing the highest number of Chicago
26 Transit Authority participants; (iii) one trustee shall be

 

 

09500SB0307ham002 - 65 - LRB095 04310 HLH 40653 a

1 appointed by an organization representing the second-highest
2 number of Chicago Transit Authority participants; (iv) one
3 trustee shall be appointed by the recognized coalition
4 representatives of participants who are not represented by an
5 organization with the highest or second-highest number of
6 Chicago Transit Authority participants; and (v) one trustee
7 shall be selected by the Regional Transportation Authority
8 Board of Directors, and the trustee shall be a professional
9 fiduciary who has experience in the area of collectively
10 bargained pension plans. Trustees shall serve until a successor
11 has been appointed and qualified, or until resignation, death,
12 incapacity, or disqualification.
13     Any person appointed as a trustee of the board shall
14 qualify by taking an oath of office that he or she will
15 diligently and honestly administer the affairs of the system
16 and will not knowingly violate or willfully permit the
17 violation of any of the provisions of law applicable to the
18 Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
19 1-111, 1-114, and 1-115 of the Illinois Pension Code.
20     Each trustee shall cast individual votes, and a majority
21 vote shall be final and binding upon all interested parties,
22 provided that the Board of Trustees may require a supermajority
23 vote with respect to the investment of the assets of the
24 Retirement Plan, and may set forth that requirement in the
25 Retirement Plan documents, by-laws, or rules of the Board of
26 Trustees. Each trustee shall have the rights, privileges,

 

 

09500SB0307ham002 - 66 - LRB095 04310 HLH 40653 a

1 authority, and obligations as are usual and customary for such
2 fiduciaries.
3     The Board of Trustees may cause amounts on deposit in the
4 Retirement Plan to be invested in those investments that are
5 permitted investments for the investment of moneys held under
6 any one or more of the pension or retirement systems of the
7 State, any unit of local government or school district, or any
8 agency or instrumentality thereof. The Board, by a vote of at
9 least two-thirds of the trustees, may transfer investment
10 management to the Illinois State Board of Investment, which is
11 hereby authorized to manage these investments when so requested
12 by the Board of Trustees.
13     (c) All individuals who were previously participants in the
14 Retirement Plan for Chicago Transit Authority Employees shall
15 remain participants, and shall receive the same benefits
16 established by the Retirement Plan for Chicago Transit
17 Authority Employees, except as provided in this amendatory Act
18 or by subsequent legislative enactment or amendment to the
19 Retirement Plan. For Authority employees hired on or after
20 January 1, 2008, the Retirement Plan for Chicago Transit
21 Authority Employees shall be the exclusive retirement plan and
22 such employees shall not be eligible for any supplemental plan,
23 except for a deferred compensation plan funded only by employee
24 contributions.
25     For all Authority employees who are first hired on or after
26 January 1, 2008 and are participants in the Retirement Plan for

 

 

09500SB0307ham002 - 67 - LRB095 04310 HLH 40653 a

1 Chicago Transit Authority Employees, the following terms,
2 conditions and provisions with respect to retirement shall be
3 applicable:
4         (1) Such participant shall be eligible for an unreduced
5     retirement allowance for life upon the attainment of age 64
6     with 25 years of continuous service.
7         (2) Such participant shall be eligible for a reduced
8     retirement allowance for life upon the attainment of age 55
9     with 10 years of continuous service.
10         (3) For the purpose of determining the retirement
11     allowance to be paid to a retiring employee, the term
12     "Continuous Service" as used in the Retirement Plan for
13     Chicago Transit Authority Employees shall also be deemed to
14     include all pension credit for service with any retirement
15     system established under Article 8 or Article 11 of this
16     Code, provided that the employee forfeits and relinquishes
17     all pension credit under Article 8 or Article 11 of this
18     Code, and the contribution required under this subsection
19     is made by the employee. The Retirement Plan's actuary
20     shall determine the contribution paid by the employee as an
21     amount equal to the normal cost of the benefit accrued, had
22     the service been rendered as an employee, plus interest per
23     annum from the time such service was rendered until the
24     date the payment is made.
25     (d) From the effective date of this amendatory Act through
26 December 31, 2008, all participating employees shall

 

 

09500SB0307ham002 - 68 - LRB095 04310 HLH 40653 a

1 contribute to the Retirement Plan in an amount not less than 6%
2 of compensation, and the Authority shall contribute to the
3 Retirement Plan in an amount not less than 12% of compensation.
4     (e)(1) Beginning January 1, 2009 the Authority shall make
5 contributions to the Retirement Plan in an amount equal to
6 twelve percent (12%) of compensation and participating
7 employees shall make contributions to the Retirement Plan in an
8 amount equal to six percent (6%) of compensation. These
9 contributions may be paid by the Authority and participating
10 employees on a payroll or other periodic basis, but shall in
11 any case be paid to the Retirement Plan at least monthly.
12     (2) For the period ending December 31, 2039, the amount
13 paid by the Authority in any year with respect to debt service
14 on bonds issued for the purposes of funding a contribution to
15 the Retirement Plan under Section 12c of the Metropolitan
16 Transit Authority Act, other than debt service paid with the
17 proceeds of bonds or notes issued by the Authority for any year
18 after calendar year 2008, shall be treated as a credit against
19 the amount of required contribution to the Retirement Plan by
20 the Authority under subsection (e)(1) for the following year up
21 to an amount not to exceed 6% of compensation paid by the
22 Authority in that following year.
23     (3) By September 15 of each year beginning in 2009 and
24 ending on December 31, 2038, on the basis of a report prepared
25 by an enrolled actuary retained by the Plan, the Board of
26 Trustees of the Retirement Plan shall determine the estimated

 

 

09500SB0307ham002 - 69 - LRB095 04310 HLH 40653 a

1 funded ratio of the total assets of the Retirement Plan to its
2 total actuarially determined liabilities. A report containing
3 that determination and the actuarial assumptions on which it is
4 based shall be filed with the Authority, the representatives of
5 its participating employees, the Auditor General of the State
6 of Illinois, and the Regional Transportation Authority. If the
7 funded ratio is projected to decline below 60% in any year
8 before 2039, the Board of Trustees shall also determine the
9 increased contribution required each year as a level percentage
10 of payroll over the years remaining until 2039 using the
11 projected unit credit actuarial cost method so the funded ratio
12 does not decline below 60% and include that determination in
13 its report. If the actual funded ratio declines below 60% in
14 any year prior to 2039, the Board of Trustees shall also
15 determine the increased contribution required each year as a
16 level percentage of payroll during the years after the then
17 current year using the projected unit credit actuarial cost
18 method so the funded ratio is projected to reach at least 60%
19 no later than 10 years after the then current year and include
20 that determination in its report. Within 60 days after
21 receiving the report, the Auditor General shall review the
22 determination and the assumptions on which it is based, and if
23 he finds that the determination and the assumptions on which it
24 is based are unreasonable in the aggregate, he shall issue a
25 new determination of the funded ratio, the assumptions on which
26 it is based and the increased contribution required each year

 

 

09500SB0307ham002 - 70 - LRB095 04310 HLH 40653 a

1 as a level percentage of payroll over the years remaining until
2 2039 using the projected unit credit actuarial cost method so
3 the funded ratio does not decline below 60%, or, in the event
4 of an actual decline below 60%, so the funded ratio is
5 projected to reach 60% by no later than 10 years after the then
6 current year. If the Board of Trustees or the Auditor General
7 determine that an increased contribution is required to meet
8 the funded ratio required by the subsection, effective January
9 1 following the determination or 30 days after such
10 determination, whichever is later, one-third of the increased
11 contribution shall be paid by participating employees and
12 two-thirds by the Authority, in addition to the contributions
13 required by this subsection (1).
14     (4) For the period beginning 2039, the minimum contribution
15 to the Retirement Plan for each fiscal year shall be an amount
16 determined by the Board of Trustees of the Retirement Plan to
17 be sufficient to bring the total assets of the Retirement Plan
18 up to 90% of its total actuarial liabilities by the end of
19 2058. Participating employees shall be responsible for
20 one-third of the required contribution and the Authority shall
21 be responsible for two-thirds of the required contribution. In
22 making these determinations, the Board of Trustees shall
23 calculate the required contribution each year as a level
24 percentage of payroll over the years remaining to and including
25 fiscal year 2058 using the projected unit credit actuarial cost
26 method. A report containing that determination and the

 

 

09500SB0307ham002 - 71 - LRB095 04310 HLH 40653 a

1 actuarial assumptions on which it is based shall be filed by
2 September 15 of each year with the Authority, the
3 representatives of its participating employees, the Auditor
4 General of the State of Illinois and the Regional
5 Transportation Authority. If the funded ratio is projected to
6 fail to reach 90% by December 31, 2058, the Board of Trustees
7 shall also determine the increased contribution required each
8 year as a level percentage of payroll over the years remaining
9 until December 31, 2058 using the projected unit credit
10 actuarial cost method so the funded ratio will meet 90% by
11 December 31, 2058 and include that determination in its report.
12 Within 60 days after receiving the report, the Auditor General
13 shall review the determination and the assumptions on which it
14 is based and if he finds that the determination and the
15 assumptions on which it is based are unreasonable in the
16 aggregate, he shall issue a new determination of the funded
17 ratio, the assumptions on which it is based and the increased
18 contribution required each year as a level percentage of
19 payroll over the years remaining until December 31, 2058 using
20 the projected unit credit actuarial cost method so the funded
21 ratio reaches no less than 90% by December 31, 2058. If the
22 Board of Trustees or the Auditor General determine that an
23 increased contribution is required to meet the funded ratio
24 required by this subsection, effective January 1 following the
25 determination or 30 days after such determination, whichever is
26 later, one-third of the increased contribution shall be paid by

 

 

09500SB0307ham002 - 72 - LRB095 04310 HLH 40653 a

1 participating employees and two-thirds by the Authority, in
2 addition to the contributions required by subsection (e)(1).
3     (5) Beginning in 2059, the minimum contribution for each
4 year shall be the amount needed to maintain the total assets of
5 the Retirement Plan at 90% of the total actuarial liabilities
6 of the Plan, and the contribution shall be funded two-thirds by
7 the Authority and one-third by the participating employees in
8 accordance with this subsection.
9     (f) The Authority shall take the steps necessary to comply
10 with Section 414(h)(2) of the Internal Revenue Code of 1986, as
11 amended, to permit the pick-up of employee contributions under
12 subsections (d) and (e) on a tax-deferred basis.
13     (g) The Board of Trustees shall certify to the Governor,
14 the General Assembly, the Auditor General, the Board of the
15 Regional Transportation Authority, and the Authority at least
16 90 days prior to the end of each fiscal year the amount of the
17 required contributions to the retirement system for the next
18 retirement system fiscal year under this Section. The
19 certification shall include a copy of the actuarial
20 recommendations upon which it is based. In addition, copies of
21 the certification shall be sent to the Commission on Government
22 Forecasting and Accountability and the Mayor of Chicago.
23     (h)(1) As to an employee who first becomes entitled to a
24 retirement allowance commencing on or after November 30, 1989,
25 the retirement allowance shall be the amount determined in
26 accordance with the following formula:

 

 

09500SB0307ham002 - 73 - LRB095 04310 HLH 40653 a

1         (A) One percent (1%) of his "Average Annual
2     Compensation in the highest four (4) completed Plan Years"
3     for each full year of continuous service from the date of
4     original employment to the effective date of the Plan; plus
5         (B) One and seventy-five hundredths percent (1.75%) of
6     his "Average Annual Compensation in the highest four (4)
7     completed Plan Years" for each year (including fractions
8     thereof to completed calendar months) of continuous
9     service as provided for in the Retirement Plan for Chicago
10     Transit Authority Employees.
11 Provided, however that:
12     (2) As to an employee who first becomes entitled to a
13 retirement allowance commencing on or after January 1, 1993,
14 the retirement allowance shall be the amount determined in
15 accordance with the following formula:
16         (A) One percent (1%) of his "Average Annual
17     Compensation in the highest four (4) completed Plan Years"
18     for each full year of continuous service from the date of
19     original employment to the effective date of the Plan; plus
20         (B) One and eighty hundredths percent (1.80%) of his
21     "Average Annual Compensation in the highest four (4)
22     completed Plan Years" for each year (including fractions
23     thereof to completed calendar months) of continuous
24     service as provided for in the Retirement Plan for Chicago
25     Transit Authority Employees.
26 Provided, however that:

 

 

09500SB0307ham002 - 74 - LRB095 04310 HLH 40653 a

1     (3) As to an employee who first becomes entitled to a
2 retirement allowance commencing on or after January 1, 1994,
3 the retirement allowance shall be the amount determined in
4 accordance with the following formula:
5         (A) One percent (1%) of his "Average Annual
6     Compensation in the highest four (4) completed Plan Years"
7     for each full year of continuous service from the date of
8     original employment to the effective date of the Plan; plus
9         (B) One and eighty-five hundredths percent (1.85%) of
10     his "Average Annual Compensation in the highest four (4)
11     completed Plan Years" for each year (including fractions
12     thereof to completed calendar months) of continuous
13     service as provided for in the Retirement Plan for Chicago
14     Transit Authority Employees.
15 Provided, however that:
16     (4) As to an employee who first becomes entitled to a
17 retirement allowance commencing on or after January 1, 2000,
18 the retirement allowance shall be the amount determined in
19 accordance with the following formula:
20         (A) One percent (1%) of his "Average Annual
21     Compensation in the highest four (4) completed Plan Years"
22     for each full year of continuous service from the date of
23     original employment to the effective date of the Plan; plus
24         (B) Two percent (2%) of his "Average Annual
25     Compensation in the highest four (4) completed Plan Years"
26     for each year (including fractions thereof to completed

 

 

09500SB0307ham002 - 75 - LRB095 04310 HLH 40653 a

1     calendar months) of continuous service as provided for in
2     the Retirement Plan for Chicago Transit Authority
3     Employees.
4 Provided, however that:
5     (5) As to an employee who first becomes entitled to a
6 retirement allowance commencing on or after January 1, 2001,
7 the retirement allowance shall be the amount determined in
8 accordance with the following formula:
9         (A) One percent (1%) of his "Average Annual
10     Compensation in the highest four (4) completed Plan Years"
11     for each full year of continuous service from the date of
12     original employment to the effective date of the Plan; plus
13         (B) Two and fifteen hundredths percent (2.15%) of his
14     "Average Annual Compensation in the highest four (4)
15     completed Plan Years" for each year (including fractions
16     thereof to completed calendar months) of continuous
17     service as provided for in the Retirement Plan for Chicago
18     Transit Authority Employees.
19     The changes made by this amendatory Act of the 95th General
20 Assembly, to the extent that they affect the rights or
21 privileges of Authority employees that are currently the
22 subject of collective bargaining, have been agreed to between
23 the authorized representatives of these employees and of the
24 Authority prior to enactment of this amendatory Act, as
25 evidenced by a Memorandum of Understanding between these
26 representatives that will be filed with the Secretary of State

 

 

09500SB0307ham002 - 76 - LRB095 04310 HLH 40653 a

1 Index Department and designated as "95-GA-C05". The General
2 Assembly finds and declares that those changes are consistent
3 with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
4 Federal Transit Act) because of this agreement between
5 authorized representatives of these employees and of the
6 Authority, and that any future amendments to the provisions of
7 this amendatory Act of the 95th General Assembly, to the extent
8 those amendments would affect the rights and privileges of
9 Authority employees that are currently the subject of
10 collective bargaining, would be consistent with 49 U.S.C.
11 5333(b) if and only if those amendments were agreed to between
12 these authorized representatives prior to enactment.
13     (i) Early retirement incentive plan; funded ratio.
14         (1) Beginning on the effective date of this Section, no
15     early retirement incentive shall be offered to
16     participants of the Plan unless the Funded Ratio of the
17     Plan is at least 80% or more.
18         (2) For the purposes of this Section, the Funded Ratio
19     shall be the Adjusted Assets divided by the Actuarial
20     Accrued Liability developed in accordance with Statement
21     #25 promulgated by the Government Accounting Standards
22     Board and the actuarial assumptions described in the Plan.
23     The Adjusted Assets shall be calculated based on the
24     methodology described in the Plan.
25     (j) Nothing in this amendatory Act of the 95th General
26 Assembly shall impair the rights or privileges of Authority

 

 

09500SB0307ham002 - 77 - LRB095 04310 HLH 40653 a

1 employees under any other law.
2     (b) Beginning January 1, 2009, the Authority shall make
3 contributions to the retirement system in an amount which,
4 together with the contributions of participants, interest
5 earned on investments, and other income, will meet the cost of
6 maintaining and administering the retirement plan in
7 accordance with applicable actuarial recommendations and
8 assumptions and the requirements of this Section. These
9 contributions may be paid on a payroll or other periodic basis,
10 but shall in any case be paid at least monthly.
11     For retirement system fiscal years 2009 through 2058, the
12 minimum contribution to the retirement system to be made by the
13 Authority for each fiscal year shall be an amount determined
14 jointly by the Authority and the trustee of the retirement
15 system to be sufficient to bring the total assets of the
16 retirement system up to 90% of its total actuarial liabilities
17 by the end of fiscal year 2058. In making these determinations,
18 the required Authority contribution shall be calculated each
19 year as a level percentage of payroll over the years remaining
20 to and including fiscal year 2058 and shall be determined under
21 the projected unit credit actuarial cost method. Beginning in
22 retirement system fiscal year 2059, the minimum Authority
23 contribution for each fiscal year shall be the amount needed to
24 maintain the total assets of the retirement system at 90% of
25 the total actuarial liabilities of the system.
26     For purposes of determining employer contributions and

 

 

09500SB0307ham002 - 78 - LRB095 04310 HLH 40653 a

1 actuarial liabilities under this subsection, contributions and
2 liabilities relating to health care benefits shall not be
3 included. As used in this Section, "retirement system fiscal
4 year" means the calendar year, or such other plan year as may
5 be defined from time to time in the agreement known as the
6 Retirement Plan for Chicago Transit Authority Employees, or its
7 successor agreement.
8     (c) The Authority and the trustee shall jointly certify to
9 the Governor, the General Assembly, and the Board of the
10 Regional Transportation Authority on or before November 15 of
11 2008 and of each year thereafter the amount of the required
12 Authority contributions to the retirement system for the next
13 retirement system fiscal year under subsection (b). The
14 certification shall include a copy of the actuarial
15 recommendations upon which it is based. In addition, copies of
16 the certification shall be sent to the Commission on Government
17 Forecasting and Accountability, the Mayor of Chicago, the
18 Chicago City Council, and the Cook County Board.
19     (d) The Authority shall take all actions lawfully available
20 to it to separate the funding of health care benefits for
21 retirees and their dependents and survivors from the funding
22 for its retirement system. The Authority shall endeavor to
23 achieve this separation as soon as possible, and in any event
24 no later than January 1, 2009.
25     (e) This amendatory Act of the 94th General Assembly does
26 not affect or impair the right of either the Authority or its

 

 

09500SB0307ham002 - 79 - LRB095 04310 HLH 40653 a

1 employees to collectively bargain the amount or level of
2 employee contributions to the retirement system.
3 (Source: P.A. 94-839, eff. 6-6-06.)
 
4     (40 ILCS 5/22-101B new)
5     Sec. 22-101B. Health Care Benefits.
6     (a) The Chicago Transit Authority (hereinafter referred to
7 in this Section as the "Authority") shall take all actions
8 lawfully available to it to separate the funding of health care
9 benefits for retirees and their dependents and survivors from
10 the funding for its retirement system. The Authority shall
11 endeavor to achieve this separation as soon as possible, and in
12 any event no later than January 1, 2009.
13     (b) Effective January 1, 2008, a Retiree Health Care Trust
14 is established for the purpose of providing health care
15 benefits to eligible retirees and their dependents and
16 survivors in accordance with the terms and conditions set forth
17 in this Section 22-101B. The Retiree Health Care Trust shall be
18 solely responsible for providing health care benefits to
19 eligible retirees and their dependents and survivors by no
20 later than January 1, 2009, but no earlier than July 1, 2008.
21         (1) The Board of Trustees shall consist of 7 members
22     appointed as follows: (i) 3 trustees shall be appointed by
23     the Chicago Transit Board; (ii) one trustee shall be
24     appointed by an organization representing the highest
25     number of Chicago Transit Authority participants; (iii)

 

 

09500SB0307ham002 - 80 - LRB095 04310 HLH 40653 a

1     one trustee shall be appointed by an organization
2     representing the second-highest number of Chicago Transit
3     Authority participants; (iv) one trustee shall be
4     appointed by the recognized coalition representatives of
5     participants who are not represented by an organization
6     with the highest or second-highest number of Chicago
7     Transit Authority participants; and (v) one trustee shall
8     be selected by the Regional Transportation Authority Board
9     of Directors, and the trustee shall be a professional
10     fiduciary who has experience in the area of collectively
11     bargained retiree health plans. Trustees shall serve until
12     a successor has been appointed and qualified, or until
13     resignation, death, incapacity, or disqualification.
14         Any person appointed as a trustee of the board shall
15     qualify by taking an oath of office that he or she will
16     diligently and honestly administer the affairs of the
17     system, and will not knowingly violate or willfully permit
18     the violation of any of the provisions of law applicable to
19     the Plan, including Sections 1-109, 1-109.1, 1-109.2,
20     1-110, 1-111, 1-114, and 1-115 of Article 1 of the Illinois
21     Pension Code.
22         Each trustee shall cast individual votes, and a
23     majority vote shall be final and binding upon all
24     interested parties, provided that the Board of Trustees may
25     require a supermajority vote with respect to the investment
26     of the assets of the Retiree Health Care Trust, and may set

 

 

09500SB0307ham002 - 81 - LRB095 04310 HLH 40653 a

1     forth that requirement in the trust agreement or by-laws of
2     the Board of Trustees. Each trustee shall have the rights,
3     privileges, authority and obligations as are usual and
4     customary for such fiduciaries.
5         (2) The Board of Trustees shall establish and
6     administer a health care benefit program for eligible
7     retirees and their dependents and survivors. The health
8     care benefit program for eligible retirees and their
9     dependents and survivors shall not contain any plan which
10     provides for more than 90% coverage for in-network services
11     or 70% coverage for out-of-network services after any
12     deductible has been paid.
13         (3) The Retiree Health Care Trust shall be administered
14     by the Board of Trustees according to the following
15     requirements:
16             (i) The Board of Trustees may cause amounts on
17         deposit in the Retiree Health Care Trust to be invested
18         in those investments that are permitted investments
19         for the investment of moneys held under any one or more
20         of the pension or retirement systems of the State, any
21         unit of local government or school district, or any
22         agency or instrumentality thereof. The Board, by a vote
23         of at least two-thirds of the trustees, may transfer
24         investment management to the Illinois State Board of
25         Investment, which is hereby authorized to manage these
26         investments when so requested by the Board of Trustees.

 

 

09500SB0307ham002 - 82 - LRB095 04310 HLH 40653 a

1             (ii) The Board of Trustees shall establish and
2         maintain an appropriate funding reserve level which
3         shall not be less than the amount of incurred and
4         unreported claims plus 12 months of expected claims and
5         administrative expenses.
6             (iii) The Board of Trustees shall make an annual
7         assessment of the funding levels of the Retiree Health
8         Care Trust and shall submit a report to the Auditor
9         General at least 90 days prior to the end of the fiscal
10         year. The report shall provide the following:
11                 (A) the actuarial present value of projected
12             benefits expected to be paid to current and future
13             retirees and their dependents and survivors;
14                 (B) the actuarial present value of projected
15             contributions and trust income plus assets;
16                 (C) the reserve required by subsection
17             (b)(3)(ii); and
18                 (D) an assessment of whether the actuarial
19             present value of projected benefits expected to be
20             paid to current and future retirees and their
21             dependents and survivors exceeds or is less than
22             the actuarial present value of projected
23             contributions and trust income plus assets in
24             excess of the reserve required by subsection
25             (b)(3)(ii).
26             If the actuarial present value of projected

 

 

09500SB0307ham002 - 83 - LRB095 04310 HLH 40653 a

1         benefits expected to be paid to current and future
2         retirees and their dependents and survivors exceeds
3         the actuarial present value of projected contributions
4         and trust income plus assets in excess of the reserve
5         required by subsection (b)(3)(ii), then the report
6         shall provide a plan of increases in employee, retiree,
7         dependent, or survivor contribution levels, decreases
8         in benefit levels, or both, which is projected to cure
9         the shortfall over a period of not more than 10 years.
10         If the actuarial present value of projected benefits
11         expected to be paid to current and future retirees and
12         their dependents and survivors is less than the
13         actuarial present value of projected contributions and
14         trust income plus assets in excess of the reserve
15         required by subsection (b)(3)(ii), then the report may
16         provide a plan of decreases in employee, retiree,
17         dependent, or survivor contribution levels, increases
18         in benefit levels, or both, to the extent of the
19         surplus.
20             (iv) The Auditor General shall review the report
21         and plan provided in subsection (b)(3)(iii) and issue a
22         determination within 90 days after receiving the
23         report and plan, with a copy of such determination
24         provided to the General Assembly and the Regional
25         Transportation Authority, as follows:
26                 (A) In the event of a projected shortfall, if

 

 

09500SB0307ham002 - 84 - LRB095 04310 HLH 40653 a

1             the Auditor General determines that the
2             assumptions stated in the report are not
3             unreasonable in the aggregate and that the plan of
4             increases in employee, retiree, dependent, or
5             survivor contribution levels, decreases in benefit
6             levels, or both, is reasonably projected to cure
7             the shortfall over a period of not more than 10
8             years, then the Board of Trustees shall implement
9             the plan. If the Auditor General determines that
10             the assumptions stated in the report are
11             unreasonable in the aggregate, or that the plan of
12             increases in employee, retiree, dependent, or
13             survivor contribution levels, decreases in benefit
14             levels, or both, is not reasonably projected to
15             cure the shortfall over a period of not more than
16             10 years, then the Board of Trustees shall not
17             implement the plan, the Auditor General shall
18             explain the basis for such determination to the
19             Board of Trustees, and the Auditor General may make
20             recommendations as to an alternative report and
21             plan.
22                 (B) In the event of a projected surplus, if the
23             Auditor General determines that the assumptions
24             stated in the report are not unreasonable in the
25             aggregate and that the plan of decreases in
26             employee, retiree, dependent, or survivor

 

 

09500SB0307ham002 - 85 - LRB095 04310 HLH 40653 a

1             contribution levels, increases in benefit levels,
2             or both, is not unreasonable in the aggregate, then
3             the Board of Trustees shall implement the plan. If
4             the Auditor General determines that the
5             assumptions stated in the report are unreasonable
6             in the aggregate, or that the plan of decreases in
7             employee, retiree, dependent, or survivor
8             contribution levels, increases in benefit levels,
9             or both, is unreasonable in the aggregate, then the
10             Board of Trustees shall not implement the plan, the
11             Auditor General shall explain the basis for such
12             determination to the Board of Trustees, and the
13             Auditor General may make recommendations as to an
14             alternative report and plan.
15                 (C) The Board of Trustees shall submit an
16             alternative report and plan within 45 days after
17             receiving a rejection determination by the Auditor
18             General. A determination by the Auditor General on
19             any alternative report and plan submitted by the
20             Board of Trustees shall be made within 90 days
21             after receiving the alternative report and plan,
22             and shall be accepted or rejected according to the
23             requirements of this subsection (b)(3)(iv). The
24             Board of Trustees shall continue to submit
25             alternative reports and plans to the Auditor
26             General, as necessary, until a favorable

 

 

09500SB0307ham002 - 86 - LRB095 04310 HLH 40653 a

1             determination is made by the Auditor General.
2         (4) For any retiree who first retires effective January
3     1, 2008 or thereafter, to be eligible for retiree health
4     care benefits upon retirement, the retiree must be at least
5     55 years of age, retire with 10 or more years of continuous
6     service and satisfy the preconditions established by this
7     amendatory Act in addition to any rules or regulations
8     promulgated by the Board of Trustees. This paragraph (4)
9     shall not apply to a disability allowance.
10         (5) Effective July 1, 2008, the aggregate amount of
11     retiree, dependent and survivor contributions to the cost
12     of their health care benefits shall not exceed more than
13     45% of the total cost of such benefits. The Board of
14     Trustees shall have the discretion to provide different
15     contribution levels for retirees, dependents and survivors
16     based on their years of service, level of coverage or
17     Medicare eligibility, provided that the total contribution
18     from all retirees, dependents, and survivors shall be not
19     more than 45% of the total cost of such benefits. The term
20     "total cost of such benefits" for purposes of this
21     subsection shall be the total amount expended by the
22     retiree health benefit program in the prior plan year, as
23     calculated and certified in writing by the Retiree Health
24     Care Trust's enrolled actuary to be appointed and paid for
25     by the Board of Trustees.
26         (6) Effective January 1, 2008, all employees of the

 

 

09500SB0307ham002 - 87 - LRB095 04310 HLH 40653 a

1     Authority shall contribute to the Retiree Health Care Trust
2     in an amount not less than 3% of compensation.
3         (7) No earlier than July 1, 2008 and no later than
4     January 1, 2009 as the Retiree Health Care Trust becomes
5     solely responsible for providing health care benefits to
6     eligible retirees and their dependents and survivors in
7     accordance with subsection (b) of this Section 22-101B, the
8     Authority shall not have any obligation to provide health
9     care to current or future retirees and their dependents or
10     survivors. Employees, retirees, dependents, and survivors
11     who are required to make contributions to the Retiree
12     Health Care Trust shall make contributions at the level set
13     by the Board of Trustees pursuant to the requirements of
14     this Section 22-101B.
 
15     Section 15. The Metropolitan Transit Authority Act is
16 amended by changing Sections 15, 28a, 34, and 46 and by adding
17 Sections 12c and 50 as follows:
 
18     (70 ILCS 3605/12c new)
19     Sec. 12c. Retiree Benefits Bonds and Notes.
20     (a) In addition to all other bonds or notes that it is
21 authorized to issue, the Authority is authorized to issue its
22 bonds or notes for the purposes of providing funds for the
23 Authority to make the deposits described in Section 12c(b)(1)
24 and (2), for refunding any bonds authorized to be issued under

 

 

09500SB0307ham002 - 88 - LRB095 04310 HLH 40653 a

1 this Section, as well as for the purposes of paying costs of
2 issuance, obtaining bond insurance or other credit enhancement
3 or liquidity facilities, paying costs of obtaining related
4 swaps as authorized in the Bond Authorization Act ("Swaps"),
5 providing a debt service reserve fund, paying Debt Service (as
6 defined in paragraph (i) of this Section 12c), and paying all
7 other costs related to any such bonds or notes.
8     (b)(1) After its receipt of a certified copy of a report of
9 the Auditor General of the State of Illinois meeting the
10 requirements of Section 3-2.3 of the Illinois State Auditing
11 Act, the Authority may issue $1,227,000,000 aggregate original
12 principal amount of bonds and notes. After payment of the costs
13 of issuance and necessary deposits to funds and accounts
14 established with respect to debt service, the net proceeds of
15 such bonds or notes shall be deposited only in the Retirement
16 Plan for Chicago Transit Authority Employees and used only for
17 the purposes required by Section 22-101 of the Illinois Pension
18 Code. Provided that no less than $1,000,000,000 has been
19 deposited in the Retirement Plan, remaining proceeds of bonds
20 issued under this subparagraph (b)(1) may be used to pay costs
21 of issuance and make necessary deposits to funds and accounts
22 with respect to debt service for bonds and notes issued under
23 this subparagraph or subparagraph (b)(2).
24     (2) After its receipt of a certified copy of a report of
25 the Auditor General of the State of Illinois meeting the
26 requirements of Section 3-2.3 of the Illinois State Auditing

 

 

09500SB0307ham002 - 89 - LRB095 04310 HLH 40653 a

1 Act, the Authority may issue $553,000,000 aggregate original
2 principal amount of bonds and notes. After payment of the costs
3 of issuance and necessary deposits to funds and accounts
4 established with respect to debt service, the net proceeds of
5 such bonds or notes shall be deposited only in the Retiree
6 Health Care Trust and used only for the purposes required by
7 Section 22-101B of the Illinois Pension Code. Provided that no
8 less than $450,000,000 has been deposited in the Retiree Health
9 Care Trust, remaining proceeds of bonds issued under this
10 subparagraph (b)(2) may be used to pay costs of issuance and
11 make necessary deposits to funds and accounts with respect to
12 debt service for bonds and notes issued under this subparagraph
13 or subparagraph (b)(1).
14     (3) In addition, refunding bonds are authorized to be
15 issued for the purpose of refunding outstanding bonds or notes
16 issued under this Section 12c.
17     (4) The bonds or notes issued under 12c(b)(1) shall be
18 issued as soon as practicable after the Auditor General issues
19 the report provided in Section 3-2.3(b) of the Illinois State
20 Auditing Act. The bonds or notes issued under 12c(b)(2) shall
21 be issued as soon as practicable after the Auditor General
22 issues the report provided in Section 3-2.3(c) of the Illinois
23 State Auditing Act.
24     (5) With respect to bonds and notes issued under
25 subparagraph (b), scheduled aggregate annual payments of
26 interest or deposits into funds and accounts established for

 

 

09500SB0307ham002 - 90 - LRB095 04310 HLH 40653 a

1 the purpose of such payment shall commence within one year
2 after the bonds and notes are issued. With respect to principal
3 and interest, scheduled aggregate annual payments of principal
4 and interest or deposits into funds and accounts established
5 for the purpose of such payment shall be not less than 70% in
6 2009, 80% in 2010, and 90% in 2011, respectively, of scheduled
7 payments or deposits of principal and interest in 2012 and
8 shall be substantially equal beginning in 2012 and each year
9 thereafter. For purposes of this subparagraph (b),
10 "substantially equal" means that debt service in any full year
11 after calendar year 2011 is not more than 115% of debt service
12 in any other full year after calendar year 2011 during the term
13 of the bonds or notes. For the purposes of this subsection (b),
14 with respect to bonds and notes that bear interest at a
15 variable rate, interest shall be assumed at a rate equal to the
16 rate for United States Treasury Securities - State and Local
17 Government Series for the same maturity, plus 75 basis points.
18 If the Authority enters into a Swap with a counterparty
19 requiring the Authority to pay a fixed interest rate on a
20 notional amount, and the Authority has made a determination
21 that such Swap was entered into for the purpose of providing
22 substitute interest payments for variable interest rate bonds
23 or notes of a particular maturity or maturities in a principal
24 amount equal to the notional amount of the Swap, then during
25 the term of the Swap for purposes of any calculation of
26 interest payable on such bonds or notes, the interest rate on

 

 

09500SB0307ham002 - 91 - LRB095 04310 HLH 40653 a

1 the bonds or notes of such maturity or maturities shall be
2 determined as if such bonds or notes bore interest at the fixed
3 interest rate payable by the Authority under such Swap.
4     (6) No bond or note issued under this Section 12c shall
5 mature later than December 31, 2039.
6     (c) The Chicago Transit Board shall provide for the
7 issuance of bonds or notes as authorized in this Section 12c by
8 the adoption of an ordinance. The ordinance, together with the
9 bonds or notes, shall constitute a contract among the
10 Authority, the owners from time to time of the bonds or notes,
11 any bond trustee with respect to the bonds or notes, any
12 related credit enhancer and any provider of any related Swaps.
13     (d) The Authority is authorized to cause the proceeds of
14 the bonds or notes, and any interest or investment earnings on
15 the bonds or notes, and of any Swaps, to be invested until the
16 proceeds and any interest or investment earnings have been
17 deposited with the Retirement Plan or the Retiree Health Care
18 Trust.
19     (e) Bonds or notes issued pursuant to this Section 12c may
20 be general obligations of the Authority, to which shall be
21 pledged the full faith and credit of the Authority, or may be
22 obligations payable solely from particular sources of funds all
23 as may be provided in the authorizing ordinance. The
24 authorizing ordinance for the bonds and notes, whether or not
25 general obligations of the Authority, may provide for the Debt
26 Service (as defined in paragraph (i) of this Section 12c) to

 

 

09500SB0307ham002 - 92 - LRB095 04310 HLH 40653 a

1 have a claim for payment from particular sources of funds,
2 including, without limitation, amounts to be paid to the
3 Authority or a bond trustee. The authorizing ordinance may
4 provide for the means by which the bonds or notes (and any
5 related Swaps) may be secured, which may include, a pledge of
6 any revenues or funds of the Authority from whatever source
7 which may by law be utilized for paying Debt Service. In
8 addition to any other security, upon the written approval of
9 the Regional Transportation Authority by the affirmative vote
10 of 12 of its then Directors, the ordinance may provide a
11 specific pledge or assignment of and lien on or security
12 interest in amounts to be paid to the Authority by the Regional
13 Transportation Authority and direct payment thereof to the bond
14 trustee for payment of Debt Service with respect to the bonds
15 or notes, subject to the provisions of existing lease
16 agreements of the Authority with any public building
17 commission. Any such pledge, assignment, lien or security
18 interest for the benefit of owners of bonds or notes shall be
19 valid and binding from the time the bonds or notes are issued,
20 without any physical delivery or further act, and shall be
21 valid and binding as against and prior to the claims of all
22 other parties having claims of any kind against the Authority
23 or any other person, irrespective of whether such other parties
24 have notice of such pledge, assignment, lien or security
25 interest, all as provided in the Local Government Debt Reform
26 Act, as it may be amended from time to time. The bonds or notes

 

 

09500SB0307ham002 - 93 - LRB095 04310 HLH 40653 a

1 of the Authority issued pursuant to this Section 12c shall have
2 such priority of payment and as to their claim for payment from
3 particular sources of funds, including their priority with
4 respect to obligations of the Authority issued under other
5 Sections of this Act, all as shall be provided in the
6 ordinances authorizing the issuance of the bonds or notes. The
7 ordinance authorizing the issuance of any bonds or notes under
8 this Section may provide for the creation of, deposits in, and
9 regulation and disposition of sinking fund or reserve accounts
10 relating to those bonds or notes and related agreements. The
11 ordinance authorizing the issuance of any such bonds or notes
12 authorized under this Section 12c may contain provisions for
13 the creation of a separate fund to provide for the payment of
14 principal of and interest on those bonds or notes and related
15 agreements. The ordinance may also provide limitations on the
16 issuance of additional bonds or notes of the Authority.
17     (f) Bonds or notes issued under this Section 12c shall not
18 constitute an indebtedness of the Regional Transportation
19 Authority, the State of Illinois, or of any other political
20 subdivision of or municipality within the State, except the
21 Authority.
22     (g) The ordinance of the Chicago Transit Board authorizing
23 the issuance of bonds or notes pursuant to this Section 12c may
24 provide for the appointment of a corporate trustee (which may
25 be any trust company or bank having the powers of a trust
26 company within Illinois) with respect to bonds or notes issued

 

 

09500SB0307ham002 - 94 - LRB095 04310 HLH 40653 a

1 pursuant to this Section 12c. The ordinance shall prescribe the
2 rights, duties, and powers of the trustee to be exercised for
3 the benefit of the Authority and the protection of the owners
4 of bonds or notes issued pursuant to this Section 12c. The
5 ordinance may provide for the trustee to hold in trust, invest
6 and use amounts in funds and accounts created as provided by
7 the ordinance with respect to the bonds or notes in accordance
8 with this Section 12c. The Authority may apply, as it shall
9 determine, any amounts received upon the sale of the bonds or
10 notes to pay any Debt Service on the bonds or notes. The
11 ordinance may provide for a trust indenture to set forth terms
12 of, sources of payment for and security for the bonds and
13 notes.
14     (h) The State of Illinois pledges to and agrees with the
15 owners of the bonds or notes issued pursuant to Section 12c
16 that the State of Illinois will not limit the powers vested in
17 the Authority by this Act to pledge and assign its revenues and
18 funds as security for the payment of the bonds or notes, or
19 vested in the Regional Transportation Authority by the Regional
20 Transportation Authority Act or this Act, so as to materially
21 impair the payment obligations of the Authority under the terms
22 of any contract made by the Authority with those owners or to
23 materially impair the rights and remedies of those owners until
24 those bonds or notes, together with interest and any redemption
25 premium, and all costs and expenses in connection with any
26 action or proceedings by or on behalf of such owners are fully

 

 

09500SB0307ham002 - 95 - LRB095 04310 HLH 40653 a

1 met and discharged. The Authority is authorized to include
2 these pledges and agreements of the State of Illinois in any
3 contract with owners of bonds or notes issued pursuant to this
4 Section 12c.
5     (i) For purposes of this Section, "Debt Service" with
6 respect to bonds or notes includes, without limitation,
7 principal (at maturity or upon mandatory redemption),
8 redemption premium, interest, periodic, upfront, and
9 termination payments on Swaps, fees for bond insurance or other
10 credit enhancement, liquidity facilities, the funding of bond
11 or note reserves, bond trustee fees, and all other costs of
12 providing for the security or payment of the bonds or notes.
13     (j) The Authority shall adopt a procurement program with
14 respect to contracts relating to the following service
15 providers in connection with the issuance of debt for the
16 benefit of the Retirement Plan for Chicago Transit Authority
17 Employees: underwriters, bond counsel, financial advisors, and
18 accountants. The program shall include goals for the payment of
19 not less than 30% of the total dollar value of the fees from
20 these contracts to minority owned businesses and female owned
21 businesses as defined in the Business Enterprise for
22 Minorities, Females, and Persons with Disabilities Act. The
23 Authority shall conduct outreach to minority owned businesses
24 and female owned businesses. Outreach shall include, but is not
25 limited to, advertisements in periodicals and newspapers,
26 mailings, and other appropriate media. The Authority shall

 

 

09500SB0307ham002 - 96 - LRB095 04310 HLH 40653 a

1 submit to the General Assembly a comprehensive report that
2 shall include, at a minimum, the details of the procurement
3 plan, outreach efforts, and the results of the efforts to
4 achieve goals for the payment of fees. The service providers
5 selected by the Authority pursuant to such program shall not be
6 subject to approval by the Regional Transportation Authority,
7 and the Regional Transportation Authority's approval pursuant
8 to subsection (e) of this Section 12c related to the issuance
9 of debt shall not be based in any way on the service providers
10 selected by the Authority pursuant to this Section.
11     (k) No person holding an elective office in this State,
12 holding a seat in the General Assembly, serving as a director,
13 trustee, officer, or employee of the Regional Transportation
14 Authority or the Chicago Transit Authority, including the
15 spouse or minor child of that person, may receive a legal,
16 banking, consulting, or other fee related to the issuance of
17 any bond issued by the Chicago Transit Authority pursuant to
18 this Section.
 
19     (70 ILCS 3605/15)  (from Ch. 111 2/3, par. 315)
20     Sec. 15. The Authority shall have power to apply for and
21 accept grants and loans from the Federal Government or any
22 agency or instrumentality thereof, from the State, or from any
23 county, municipal corporation or other political subdivision
24 of the State to be used for any of the purposes of the
25 Authority, including, but not by way of limitation, grants and

 

 

09500SB0307ham002 - 97 - LRB095 04310 HLH 40653 a

1 loans in aid of mass transportation and for studies in mass
2 transportation, and may provide matching funds when necessary
3 to qualify for such grants or loans. The Authority may enter
4 into any agreement with the Federal Government, the State, and
5 any county, municipal corporation or other political
6 subdivision of the State in relation to such grants or loans;
7 provided that such agreement does not conflict with any of the
8 provisions of any trust agreement securing the payment of bonds
9 or certificates of the Authority.
10     The Authority may also accept from the state, or from any
11 county or other political subdivision, or from any municipal
12 corporation, or school district, or school authorities, grants
13 or other funds authorized by law to be paid to the Authority
14 for any of the purposes of this Act.
15 (Source: Laws 1961, p. 3135.)
 
16     (70 ILCS 3605/28a)  (from Ch. 111 2/3, par. 328a)
17     Sec. 28a. (a) The Board may deal with and enter into
18 written contracts with the employees of the Authority through
19 accredited representatives of such employees or
20 representatives of any labor organization authorized to act for
21 such employees, concerning wages, salaries, hours, working
22 conditions and pension or retirement provisions; provided,
23 nothing herein shall be construed to permit hours of labor in
24 excess of those provided by law or to permit working conditions
25 prohibited by law. In case of dispute over wages, salaries,

 

 

09500SB0307ham002 - 98 - LRB095 04310 HLH 40653 a

1 hours, working conditions, or pension or retirement provisions
2 the Board may arbitrate any question or questions and may agree
3 with such accredited representatives or labor organization
4 that the decision of a majority of any arbitration board shall
5 be final, provided each party shall agree in advance to pay
6 half of the expense of such arbitration.
7     No contract or agreement shall be made with any labor
8 organization, association, group or individual for the
9 employment of members of such organization, association, group
10 or individual for the construction, improvement, maintenance,
11 operation or administration of any property, plant or
12 facilities under the jurisdiction of the Authority, where such
13 organization, association, group or individual denies on the
14 ground of race, creed, color, sex, religion, physical or mental
15 handicap unrelated to ability, or national origin membership
16 and equal opportunities for employment to any citizen of
17 Illinois.
18     (b)(1) The provisions of this paragraph (b) apply to
19 collective bargaining agreements (including extensions and
20 amendments of existing agreements) entered into on or after
21 January 1, 1984.
22     (2) The Board shall deal with and enter into written
23 contracts with their employees, through accredited
24 representatives of such employees authorized to act for such
25 employees concerning wages, salaries, hours, working
26 conditions, and pension or retirement provisions about which a

 

 

09500SB0307ham002 - 99 - LRB095 04310 HLH 40653 a

1 collective bargaining agreement has been entered prior to the
2 effective date of this amendatory Act of 1983. Any such
3 agreement of the Authority shall provide that the agreement may
4 be reopened if the amended budget submitted pursuant to Section
5 2.18a of the Regional Transportation Authority Act is not
6 approved by the Board of the Regional Transportation Authority.
7 The agreement may not include a provision requiring the payment
8 of wage increases based on changes in the Consumer Price Index.
9 The Board shall not have the authority to enter into collective
10 bargaining agreements with respect to inherent management
11 rights, which include such areas of discretion or policy as the
12 functions of the employer, standards of services, its overall
13 budget, the organizational structure and selection of new
14 employees and direction of personnel. Employers, however,
15 shall be required to bargain collectively with regard to policy
16 matters directly affecting wages, hours and terms and
17 conditions of employment, as well as the impact thereon upon
18 request by employee representatives. To preserve the rights of
19 employers and exclusive representatives which have established
20 collective bargaining relationships or negotiated collective
21 bargaining agreements prior to the effective date of this
22 amendatory Act of 1983, employers shall be required to bargain
23 collectively with regard to any matter concerning wages, hours
24 or conditions of employment about which they have bargained
25 prior to the effective date of this amendatory Act of 1983.
26     (3) The collective bargaining agreement may not include a

 

 

09500SB0307ham002 - 100 - LRB095 04310 HLH 40653 a

1 prohibition on the use of part-time operators on any service
2 operated by or funded by the Board, except where prohibited by
3 federal law.
4     (4) Within 30 days of the signing of any such collective
5 bargaining agreement, the Board shall determine the costs of
6 each provision of the agreement, prepare an amended budget
7 incorporating the costs of the agreement, and present the
8 amended budget to the Board of the Regional Transportation
9 Authority for its approval under Section 4.11 of the Regional
10 Transportation Act. The Board of the Regional Transportation
11 Authority may approve the amended budget by an affirmative vote
12 of 12 two-thirds of its then Directors. If the budget is not
13 approved by the Board of the Regional Transportation Authority,
14 the agreement may be reopened and its terms may be
15 renegotiated. Any amended budget which may be prepared
16 following renegotiation shall be presented to the Board of the
17 Regional Transportation Authority for its approval in like
18 manner.
19 (Source: P.A. 83-886.)
 
20     (70 ILCS 3605/34)  (from Ch. 111 2/3, par. 334)
21     Sec. 34. Budget and Program. The Authority, subject to the
22 powers of the Regional Transportation Authority in Section 4.11
23 of the Regional Transportation Authority Act, shall control the
24 finances of the Authority. It shall by ordinance appropriate
25 money to perform the Authority's purposes and provide for

 

 

09500SB0307ham002 - 101 - LRB095 04310 HLH 40653 a

1 payment of debts and expenses of the Authority. Each year the
2 Authority shall prepare and publish a comprehensive annual
3 budget and five-year capital program document, and a financial
4 plan for the 2 years thereafter describing the state of the
5 Authority and presenting for the forthcoming fiscal year and
6 the two following years the Authority's plans for such
7 operations and capital expenditures as it intends to undertake
8 and the means by which it intends to finance them. The proposed
9 budget, and financial plan, and five-year capital program shall
10 be based on the Regional Transportation Authority's estimate of
11 funds to be made available to the Authority by or through the
12 Regional Transportation Authority and shall conform in all
13 respects to the requirements established by the Regional
14 Transportation Authority. The proposed program and budget,
15 financial plan, and five-year capital program shall contain a
16 statement of the funds estimated to be on hand at the beginning
17 of the fiscal year, the funds estimated to be received from all
18 sources for such year and the funds estimated to be on hand at
19 the end of such year. After adoption of the Regional
20 Transportation Authority's first Five-Year Program, as
21 provided in Section 2.01 of the Regional Transportation
22 Authority Act, the proposed program and budget shall
23 specifically identify any respect in which the recommended
24 program deviates from the Regional Transportation Authority's
25 then existing Five-Year Program, giving the reasons for such
26 deviation. The proposed program and budget, financial plan, and

 

 

09500SB0307ham002 - 102 - LRB095 04310 HLH 40653 a

1 five-year capital program shall be available at no cost for
2 public inspection at the Authority's main office and at the
3 Regional Transportation Authority's main office at least 3
4 weeks prior to any public hearing. Before the proposed budget,
5 and program and financial plan, and five-year capital program
6 are submitted to the Regional Transportation Authority, the
7 Authority shall hold at least one public hearing thereon in
8 each of the counties in which the Authority provides service.
9 All Board members of the Authority shall attend a majority of
10 the public hearings unless reasonable cause is given for their
11 absence. After the public hearings, the Board of the Authority
12 shall hold at least one meeting for consideration of the
13 proposed program and budget with the Cook County Board. After
14 conducting such hearings and holding such meetings and after
15 making such changes in the proposed program and budget,
16 financial plan, and five-year capital program as the Board
17 deems appropriate, it shall adopt an annual budget ordinance at
18 least by November 15th preceding the beginning of each fiscal
19 year. The budget, and program, and financial plan, and
20 five-year capital program shall then be submitted to the
21 Regional Transportation Authority as provided in Section 4.11
22 of the Regional Transportation Authority Act. In the event that
23 the Board of the Regional Transportation Authority determines
24 that the budget, and program, and financial plan, and five-year
25 capital program do not meet the standards of said Section 4.11,
26 the Board of the Authority shall make such changes as are

 

 

09500SB0307ham002 - 103 - LRB095 04310 HLH 40653 a

1 necessary to meet such requirements and adopt an amended budget
2 ordinance. The amended budget ordinance shall be resubmitted to
3 the Regional Transportation Authority pursuant to said Section
4 4.11. The ordinance shall appropriate such sums of money as are
5 deemed necessary to defray all necessary expenses and
6 obligations of the Authority, specifying purposes and the
7 objects or programs for which appropriations are made and the
8 amount appropriated for each object or program. Additional
9 appropriations, transfers between items and other changes in
10 such ordinance which do not alter the basis upon which the
11 balanced budget determination was made by the Regional
12 Transportation Authority may be made from time to time by the
13 Board.
14     The budget shall:
15         (i) show a balance between (A) anticipated revenues
16     from all sources including operating subsidies and (B) the
17     costs of providing the services specified and of funding
18     any operating deficits or encumbrances incurred in prior
19     periods, including provision for payment when due of
20     principal and interest on outstanding indebtedness;
21         (ii) show cash balances including the proceeds of any
22     anticipated cash flow borrowing sufficient to pay with
23     reasonable promptness all costs and expenses as incurred;
24         (iii) provide for a level of fares or charges and
25     operating or administrative costs for the public
26     transportation provided by or subject to the jurisdiction

 

 

09500SB0307ham002 - 104 - LRB095 04310 HLH 40653 a

1     of the Board sufficient to allow the Board to meet its
2     required system generated revenue recovery ratio as
3     determined in accordance with subsection (a) of Section
4     4.11 of the Regional Transportation Authority Act;
5         (iv) be based upon and employ assumptions and
6     projections which are reasonable and prudent;
7         (v) have been prepared in accordance with sound
8     financial practices as determined by the Board of the
9     Regional Transportation Authority; and
10         (vi) meet such other financial, budgetary, or fiscal
11     requirements that the Board of the Regional Transportation
12     Authority may by rule or regulation establish; and .
13         (vii) be consistent with the goals and objectives
14     adopted by the Regional Transportation Authority in the
15     Strategic Plan.
16     The Board shall establish a fiscal operating year. At least
17 thirty days prior to the beginning of the first full fiscal
18 year after the creation of the Authority, and annually
19 thereafter, the Board shall cause to be prepared a tentative
20 budget which shall include all operation and maintenance
21 expense for the ensuing fiscal year. The tentative budget shall
22 be considered by the Board and, subject to any revision and
23 amendments as may be determined, shall be adopted prior to the
24 first day of the ensuing fiscal year as the budget for that
25 year. No expenditures for operations and maintenance in excess
26 of the budget shall be made during any fiscal year except by

 

 

09500SB0307ham002 - 105 - LRB095 04310 HLH 40653 a

1 the affirmative vote of at least five members of the Board. It
2 shall not be necessary to include in the annual budget any
3 statement of necessary expenditures for pensions or retirement
4 annuities, or for interest or principal payments on bonds or
5 certificates, or for capital outlays, but it shall be the duty
6 of the Board to make provision for payment of same from
7 appropriate funds. The Board may not alter its fiscal year
8 without the prior approval of the Board of the Regional
9 Transportation Authority.
10 (Source: P.A. 87-1249.)
 
11     (70 ILCS 3605/46)  (from Ch. 111 2/3, par. 346)
12     Sec. 46. Citizens Advisory Board. The Board shall establish
13 a citizens advisory board composed of 11 residents of those
14 portions of the metropolitan region in which the Authority
15 provides service who have an interest in public transportation,
16 one of whom shall be at least 65 years of age. The members of
17 the advisory board shall be named for 2 year terms, shall
18 select one of their members to serve as chairman and shall
19 serve without compensation. The citizens advisory board shall
20 meet with Board at least quarterly and advise the Board of the
21 impact of its policies and programs on the communities it
22 serves. Appointments to the citizens advisory board should, to
23 the greatest extent possible, reflect the ethnic, cultural, and
24 geographic diversity of all persons residing within the
25 metropolitan region in which the Authority provides service.

 

 

09500SB0307ham002 - 106 - LRB095 04310 HLH 40653 a

1 (Source: P.A. 87-226.)
 
2     (70 ILCS 3605/50 new)
3     Sec. 50. Disadvantaged Business Enterprise Contracting and
4 Equal Employment Opportunity Programs. The Authority shall, as
5 soon as is practicable but in no event later than two years
6 after the effective date of this amendatory Act of the 95th
7 General Assembly, establish and maintain a disadvantaged
8 business enterprise contracting program designed to ensure
9 non-discrimination in the award and administration of
10 contracts not covered under a federally mandated disadvantaged
11 business enterprise program. The program shall establish
12 narrowly tailored goals for the participation of disadvantaged
13 business enterprises as the Authority determines appropriate.
14 The goals shall be based on demonstrable evidence of the
15 availability of ready, willing, and able disadvantaged
16 business enterprises relative to all businesses ready,
17 willing, and able to participate on the program's contracts.
18 The program shall require the Authority to monitor the progress
19 of the contractors' obligations with respect to the program's
20 goals. Nothing in this program shall conflict with or interfere
21 with the maintenance or operation of, or compliance with, any
22 federally mandated disadvantaged business enterprise program.
23     The Authority shall establish and maintain a program
24 designed to promote equal employment opportunity. Each year, no
25 later than October 1, the Authority shall report to the General

 

 

09500SB0307ham002 - 107 - LRB095 04310 HLH 40653 a

1 Assembly on the number of employees of the Authority and the
2 number of employees who have designated themselves as members
3 of a minority group and gender.
4     Each year no later than October 1, and starting no later
5 than the October 1 after the establishment of the disadvantaged
6 business enterprise contracting program, the Authority shall
7 submit a report with respect to such program to the General
8 Assembly. In addition, no later than October 1 of each year,
9 the Authority shall submit a copy of its federally mandated
10 semi-annual Uniform Report of Disadvantaged Business
11 Enterprises Awards or Commitments and Payments to the General
12 Assembly.
 
13     Section 17. The Local Mass Transit District Act is amended
14 by changing Section 3.1 as follows:
 
15     (70 ILCS 3610/3.1)  (from Ch. 111 2/3, par. 353.1)
16     Sec. 3.1. Also in the manner provided in this Act as
17 amended, a "Local Mass Transit District" may be created with
18 boundary to enclose a unit area of contiguous land, to be known
19 as the "participating area". Such a "participating area" may be
20 organized as a district under this Act without regard to
21 boundaries of counties or other political subdivisions or
22 municipal corporations.
23     (a) Any 500 or more legal voters who are residents within
24 such "participating area" may file a petition in the circuit

 

 

09500SB0307ham002 - 108 - LRB095 04310 HLH 40653 a

1 court of the county where the proposed district or a major part
2 thereof is located, asking that the question of creating such
3 district be submitted under this Act by referendum to the
4 voters residing within the proposed district. By their power of
5 attorney signed by them and filed in the cause the petitioners
6 may authorize a committee of their number named by the
7 petitioners, to conduct and pursue the cause for them to a
8 conclusion. Such petition shall define the boundaries of the
9 proposed district, shall indicate distances to nearest mass
10 transportation lines in each direction, naming them, shall have
11 attached a fair map of the proposed district, and shall suggest
12 a name for the proposed district.
13     (b) The circuit clerk shall present to the circuit judge
14 any petition so filed in the court. The judge shall enter an
15 order of record to set a date, hour and place for judicial
16 hearing on the petition. That order shall include instructions
17 to the circuit clerk to give notice by newspaper publication to
18 be made and completed at least 20 days before the hearing is to
19 be held, in 2 or more newspapers published or circulating
20 generally among the people residing within the proposed
21 district. The circuit clerk shall prepare that notice and cause
22 such publication notice to be given as directed.
23     (c) After proof of such newspaper publication of notice has
24 been made and filed in the cause and shown to the court in full
25 accord with the prior order, the circuit judge shall hear all
26 persons who attend and so request, as to location and boundary

 

 

09500SB0307ham002 - 109 - LRB095 04310 HLH 40653 a

1 and name for the proposed district. After the hearing on such
2 petition is completed, the circuit court by an order of record,
3 shall determine and establish the location, name and boundary
4 for such proposed district, and shall order the proposition
5 submitted at an election in accordance with the general
6 election law to the voters resident within such proposed
7 district. The circuit clerk shall certify the proposition to
8 the proper election officials who shall submit the proposition
9 in accordance with the general election law.
10     (d) The county clerk shall canvass the ballots and other
11 returns from such referendum, and prepare a full certification
12 of the result and shall file same in the cause pending in the
13 circuit court. When the vote is in favor of the creation of
14 such district as determined by the court order, a true map of
15 such district shall be filed with such report in the circuit
16 court.
17     (e) When the vote is in favor of creation of such district,
18 the circuit court by an order of record shall confirm the
19 result of election. If the district is wholly contained within
20 a single county the presiding officer of the county board with
21 the advice and consent of the county board shall appoint 5
22 trustees, not more than 3 of whom shall be affiliated with the
23 same political party, to govern the district and serve one each
24 for 1, 2, 3, 4 and 5 years respectively; upon the expiration of
25 the term of a trustee who is in office on the effective date of
26 this amendatory Act of 1989, the successor shall, at the time

 

 

09500SB0307ham002 - 110 - LRB095 04310 HLH 40653 a

1 of the appointment, and thereafter at all times while serving
2 as trustee, be a resident of the Mass Transit District for
3 which such person is appointed as trustee. If a trustee removes
4 his residence to a place outside of the District, a trustee
5 shall be appointed in the same manner as herein provided to
6 take the place of the trustee who so removed his residence. If
7 however the district is located in more than one county, the
8 number of trustees who are residents of a county shall be in
9 proportion, as nearly as practicable, to the number of
10 residents of the district who reside in that county in relation
11 to the total population of the district.
12     Upon the expiration of the term of a trustee who is in
13 office on the effective date of this amendatory Act of 1975,
14 the successor shall be a resident of whichever county is
15 entitled to such representation in order to bring about the
16 proportional representation required herein, and he shall be
17 appointed by the county board of that county, or in the case of
18 a home rule county as defined by Article VII, Section 6 of the
19 Constitution of 1970, the chief executive officer of that
20 county, with the advice and consent of the county board in
21 accordance with the provisions previously enumerated.
22 Successors shall serve 5 year overlapping terms.
23     Thereafter, each trustee shall be succeeded by a resident
24 of the same county who shall be appointed by the same
25 appointing authority; however, the provisions of the preceding
26 paragraph shall apply to the appointment of the successor to

 

 

09500SB0307ham002 - 111 - LRB095 04310 HLH 40653 a

1 each trustee who is in office at the time of the publication of
2 each decennial Federal census of population.
3     (f) Upon the creation of such district, the circuit clerk
4 shall prepare and certify a copy of the final court order
5 confirming the referendum creating the district, and a
6 duplicate of the map of such district, from the record of the
7 circuit court, and shall file the same with the county clerk
8 for recording in his office as "Certificate of Incorporation"
9 for the district. The county clerk shall cause a duplicate of
10 such "Certificate of Incorporation" to be filed in the office
11 of the Secretary of State of Illinois.
12     (g) The Board of Trustees of such "Local Mass Transit
13 District" shall have and exercise all the powers and shall
14 perform all the duties of any Board of Trustees of any district
15 created under this Act, as now or hereafter amended.
16     (h) The circuit court shall require the petitioners to post
17 a surety bond for the payment of all costs and expenses of such
18 proceeding and such referendum. When a district is created, the
19 circuit court shall order the district to pay or reimburse
20 others for all such costs and expenses. The surety bond shall
21 not be released until complete receipts for all such costs and
22 expenses have been filed in the cause and fully audited by the
23 circuit and county clerks.
24     (i) If the District is wholly contained within a single
25 county, the County Board of such county may, by resolution,
26 provide that, effective upon the next appointment of a Trustee,

 

 

09500SB0307ham002 - 112 - LRB095 04310 HLH 40653 a

1 after the effective date of this amendatory Act of 1989, that
2 the Board of Trustees of such Mass Transit District shall be
3 comprised of 7 Trustees, with no more than 4 members of the
4 same political party. This Subsection shall not apply to any
5 Mass Transit District in the State which receives funding in
6 whole or in part from the Regional Transportation Authority or
7 any of its service boards.
8     (j) The Board of a district that is in existence on the
9 effective date of this amendatory Act of the 95th General
10 Assembly and whose participating area: (i) is entirely within a
11 single county; and (ii) when created, was defined by township
12 boundaries may, by an ordinance adopted by the affirmative vote
13 of a majority of the members of the Board and approved by
14 referendum, provide that the participating area of the district
15 be coterminous and expand with the boundaries of the townships
16 that originally established the district's participating area.
17 The ordinance shall not be effective until it has been
18 submitted by referendum to, and approved by, the legal voters
19 of the district and the area within the township that is not
20 within the district. The Board shall certify its ordinance and
21 the proposition to the proper election officials, who shall
22 submit the question to the voters at the next election in
23 accordance with the general election law. The proposition shall
24 be in substantially the following form:
25         "Shall the boundaries of (local mass transit district)
26     be coterminous and expand with the boundaries of

 

 

09500SB0307ham002 - 113 - LRB095 04310 HLH 40653 a

1     (townships)?"
2     Votes shall be recorded as "Yes" or "No". If a majority of
3 the electors voting on the question vote in the affirmative,
4 then the district shall be entitled to make its boundaries
5 coterminous with the boundaries of the townships regardless of
6 when the district was formed. The district's boundaries shall
7 encompass all areas located within the townships at the time
8 the ordinance becomes effective and all areas that become part
9 of the townships at a future date. Nothing in this subsection
10 shall allow expansion of a district into an area that is
11 already a part of another local mass transit district.
12 (Source: P.A. 86-472.)
 
13     Section 20. The Regional Transportation Authority Act is
14 amended by changing Sections 1.02, 2.01, 2.04, 2.05, 2.09,
15 2.12, 2.14, 2.18a, 2.30, 3.01, 3.03, 3.04, 3.05, 3A.10, 3A.11,
16 3A.14, 3B.02, 3B.03, 3B.05, 3B.07, 3B.09, 3B.10, 3B.11, 3B.12,
17 3B.13, 4.01, 4.02, 4.02a, 4.02b, 4.03, 4.04, 4.09, 4.11, 4.13,
18 4.14, and 5.01 and by adding Section 2.01a, 2.01b, 2.01c,
19 2.01d, 2.01e, 2.12b, 2.31, and 4.03.3 as follows:
 
20     (70 ILCS 3615/1.02)  (from Ch. 111 2/3, par. 701.02)
21     Sec. 1.02. Findings and Purpose. (a) The General Assembly
22 finds;
23     (i) Public transportation is, as provided in Section 7 of
24 Article XIII of the Illinois Constitution, an essential public

 

 

09500SB0307ham002 - 114 - LRB095 04310 HLH 40653 a

1 purpose for which public funds may be expended and that Section
2 authorizes the State to provide financial assistance to units
3 of local government for distribution to providers of public
4 transportation. There is an urgent need to reform and continue
5 a unit of local government to assure the proper management of
6 public transportation and to receive and distribute State or
7 federal operating assistance and to raise and distribute
8 revenues for local operating assistance. System generated
9 revenues are not adequate for such service and a public need
10 exists to provide for, aid and assist public transportation in
11 the northeastern area of the State, consisting of Cook, DuPage,
12 Kane, Lake, McHenry and Will Counties.
13     (ii) Comprehensive and coordinated regional public
14 transportation is essential to the public health, safety and
15 welfare. It is essential to economic well-being, maintenance of
16 full employment, conservation of sources of energy and land for
17 open space and reduction of traffic congestion and for
18 providing and maintaining a healthful environment for the
19 benefit of present and future generations in the metropolitan
20 region. Public transportation improves the mobility of the
21 public and improves access to jobs, commercial facilities,
22 schools and cultural attractions. Public transportation
23 decreases air pollution and other environmental hazards
24 resulting from excessive use of automobiles and allows for more
25 efficient land use and planning.
26     (iii) Because system generated receipts are not presently

 

 

09500SB0307ham002 - 115 - LRB095 04310 HLH 40653 a

1 adequate, public transportation facilities and services in the
2 northeastern area are in grave financial condition. With
3 existing methods of financing, coordination and management,
4 and relative convenience of automobiles, such public
5 transportation facilities are not providing adequate public
6 transportation to insure the public health, safety and welfare.
7     (iv) Additional commitments to the special public
8 transportation needs problems of the disabled handicapped, the
9 economically disadvantaged, and the elderly are necessary.
10     (v) To solve these problems, it is necessary to provide for
11 the creation of a regional transportation authority with the
12 powers necessary to insure adequate public transportation.
13     (b) The General Assembly further finds, in connection with
14 this amendatory Act of 1983:
15     (i) Substantial, recurring deficits in the operations of
16 public transportation services subject to the jurisdiction of
17 the Regional Transportation Authority and periodic cash
18 shortages have occurred either of which could bring about a
19 loss of public transportation services throughout the
20 metropolitan region at any time;
21     (ii) A substantial or total loss of public transportation
22 services or any segment thereof would create an emergency
23 threatening the safety and well-being of the people in the
24 northeastern area of the State; and
25     (iii) To meet the urgent needs of the people of the
26 metropolitan region that such an emergency be averted and to

 

 

09500SB0307ham002 - 116 - LRB095 04310 HLH 40653 a

1 provide financially sound methods of managing the provision of
2 public transportation services in the northeastern area of the
3 State, it is necessary, while maintaining and continuing the
4 existing Authority, to modify the powers and responsibilities
5 of the Authority, to reallocate responsibility for operating
6 decisions, to change the composition and appointment of the
7 Board of Directors thereof, and to immediately establish a new
8 Board of Directors.
9     (c) The General Assembly further finds in connection with
10 this amendatory Act of the 95th General Assembly:
11     (i) The economic vitality of northeastern Illinois
12 requires regionwide and systemwide efforts to increase
13 ridership on the transit systems, constrain road congestion
14 within the metropolitan region, and allocate resources for
15 transportation so as to assist in the development of an
16 adequate, efficient, and coordinated regional transportation
17 system that is in a state of good repair.
18     (ii) To achieve the purposes of this amendatory Act of the
19 95th General Assembly, the powers and duties of the Authority
20 must be enhanced to improve overall planning and coordination,
21 to achieve an integrated and efficient regional transit system,
22 to advance the mobility of transit users, and to increase
23 financial transparency of the Authority and the Service Boards.
24     (d) (c) It is the purpose of this Act to provide for, aid
25 and assist public transportation in the northeastern area of
26 the State without impairing the overall quality of existing

 

 

09500SB0307ham002 - 117 - LRB095 04310 HLH 40653 a

1 public transportation by providing for the creation of a single
2 authority responsive to the people and elected officials of the
3 area and with the power and competence to develop, implement,
4 and enforce plans that promote adequate, efficient, and
5 coordinated public transportation, provide financial review of
6 the providers of public transportation in the metropolitan
7 region and facilitate public transportation provided by
8 Service Boards which is attractive and economical to users,
9 comprehensive, coordinated among its various elements,
10 economical, safe, efficient and coordinated with area and State
11 plans.
12 (Source: P.A. 83-885; 83-886.)
 
13     (70 ILCS 3615/2.01)  (from Ch. 111 2/3, par. 702.01)
14     Sec. 2.01. General Allocation of Responsibility for Public
15 Transportation. Provision of Public Transportation - Review
16 and Program.
17     (a) In order to accomplish the its purposes as set forth in
18 this Act, the responsibility for planning, operating, and
19 funding public transportation in the metropolitan region shall
20 be allocated as described in this Act. The Authority shall:
21         (i) adopt plans that implement the public policy of the
22     State to provide adequate, efficient, and coordinated
23     public transportation throughout the metropolitan region;
24         (ii) set goals, objectives, and standards for the
25     Authority, the Service Boards, and transportation

 

 

09500SB0307ham002 - 118 - LRB095 04310 HLH 40653 a

1     agencies;
2         (iii) develop performance measures to inform the
3     public about the extent to which the provision of public
4     transportation in the metropolitan region meets those
5     goals, objectives, and standards;
6         (iv) allocate operating and capital funds made
7     available to support public transportation in the
8     metropolitan region;
9         (v) provide financial oversight of the Service Boards;
10     and
11         (vi) coordinate the provision of public transportation
12     and the investment in public transportation facilities to
13     enhance the integration of public transportation
14     throughout the metropolitan region, all as provided in this
15     Act.
16     The the Service Boards shall, on a continuing basis
17 determine the level, nature and kind of public transportation
18 which should be provided for the metropolitan region in order
19 to meet the plans, goals, objectives, and standards adopted by
20 the Authority. The Service Boards may provide public
21 transportation by purchasing such service from transportation
22 agencies through purchase of service agreements, by grants to
23 such agencies or by operating such service, all pursuant to
24 this Act and the "Metropolitan Transit Authority Act", as now
25 or hereafter amended. Certain of its actions to implement the
26 responsibilities allocated to the Authority in this subsection

 

 

09500SB0307ham002 - 119 - LRB095 04310 HLH 40653 a

1 (a) shall be taken in 3 public documents adopted by the
2 affirmative vote of at least 12 of its then Directors: A
3 Strategic Plan; a Five-Year Capital Program; and an Annual
4 Budget and Two-Year Financial Plan. The Authority shall
5 establish a policy to provide adequate public transportation
6 throughout the metropolitan region.
7     (b) The Authority shall subject the operating and capital
8 plans and expenditures of the Service Boards in the
9 metropolitan region with regard to public transportation to
10 continuing review so that the Authority may budget and expend
11 its funds with maximum effectiveness and efficiency. The
12 Authority shall conduct audits of each of the Service Boards no
13 less than every 5 years. Such audits may include management,
14 performance, financial, and infrastructure condition audits.
15 The Authority may conduct management, performance, financial,
16 and infrastructure condition audits of transportation agencies
17 that receive funds from the Authority. The Authority may direct
18 a Service Board to conduct any such audit of a transportation
19 agency that receives funds from such Service Board, and the
20 Service Board shall comply with such request to the extent it
21 has the right to do so. These audits of the Service Boards or
22 transportation agencies may be project or service specific
23 audits to evaluate their achievement of the goals and
24 objectives of that project or service and their compliance with
25 any applicable requirements. Certain of its recommendations in
26 this regard shall be set forth in 2 public documents, the

 

 

09500SB0307ham002 - 120 - LRB095 04310 HLH 40653 a

1 Five-Year Program provided for in this Section and an Annual
2 Budget and Program provided for in Section 4.01.
3     (c) The Authority shall, in consultation with the Service
4 Boards, each year prepare and, by ordinance, adopt, after
5 public hearings held in each county in the metropolitan region,
6 a Five-Year Program to inform the public and government
7 officials of the Authority's objectives and program for
8 operations and capital development during the forthcoming
9 five-year period. The Five-Year Program shall set forth the
10 standards of service which the public may expect; each Service
11 Board's plans for coordinating routes and service of the
12 various transportation agencies; the anticipated expense of
13 providing public transportation at standards of service then
14 existing and under alternative operating programs; the nature,
15 location and expense of anticipated capital improvements
16 exceeding $250,000, by specific item and by fiscal year; and
17 such demographic and other data developed by planning and other
18 related agencies, as the Authority shall consider pertinent to
19 the Service Boards' decisions as to levels and nature of
20 service, including without limitation the patterns of
21 population density and growth, projected commercial and
22 residential development, environmental factors and the
23 availability of alternative modes of transportation. The
24 Five-Year Program shall be adopted on the affirmative votes of
25 9 of the then Directors.
26 (Source: P.A. 83-886.)
 

 

 

09500SB0307ham002 - 121 - LRB095 04310 HLH 40653 a

1     (70 ILCS 3615/2.01a new)
2     Sec. 2.01a. Strategic Plan.
3     (a) By the affirmative vote of at least 12 of its then
4 Directors, the Authority shall adopt a Strategic Plan, no less
5 than every 5 years, after consultation with the Service Boards
6 and after holding a minimum of 3 public hearings in Cook County
7 and one public hearing in each of the other counties in the
8 region. The Executive Director of the Authority shall review
9 the Strategic Plan on an ongoing basis and make recommendations
10 to the Board of the Authority with respect to any update or
11 amendment of the Strategic Plan. The Strategic Plan shall
12 describe the specific actions to be taken by the Authority and
13 the Service Boards to provide adequate, efficient, and
14 coordinated public transportation.
15     (b) The Strategic Plan shall identify goals and objectives
16 with respect to:
17         (i) increasing ridership and passenger miles on public
18     transportation funded by the Authority;
19         (ii) coordination of public transportation services
20     and the investment in public transportation facilities to
21     enhance the integration of public transportation
22     throughout the metropolitan region;
23         (iii) coordination of fare and transfer policies to
24     promote transfers by riders among Service Boards,
25     transportation agencies, and public transportation modes,

 

 

09500SB0307ham002 - 122 - LRB095 04310 HLH 40653 a

1     which may include goals and objectives for development of a
2     universal fare instrument that riders may use
3     interchangeably on all public transportation funded by the
4     Authority, and methods to be used to allocate revenues from
5     transfers;
6         (iv) improvements in public transportation facilities
7     to bring those facilities into a state of good repair,
8     enhancements that attract ridership and improve customer
9     service, and expansions needed to serve areas with
10     sufficient demand for public transportation;
11         (v) access for transit-dependent populations,
12     including access by low-income communities to places of
13     employment, utilizing analyses provided by the Chicago
14     Metropolitan Agency for Planning regarding employment and
15     transportation availability, and giving consideration to
16     the location of employment centers in each county and the
17     availability of public transportation at off-peak hours
18     and on weekends;
19         (vi) the financial viability of the public
20     transportation system, including both operating and
21     capital programs;
22         (vii) limiting road congestion within the metropolitan
23     region and enhancing transit options to improve mobility;
24     and
25         (viii) such other goals and objectives that advance the
26     policy of the State to provide adequate, efficient, and

 

 

09500SB0307ham002 - 123 - LRB095 04310 HLH 40653 a

1     coordinated public transportation in the metropolitan
2     region.
3     (c) The Strategic Plan shall establish the process and
4 criteria by which proposals for capital improvements by a
5 Service Board or a transportation agency will be evaluated by
6 the Authority for inclusion in the Five-Year Capital Program,
7 which may include criteria for:
8         (i) allocating funds among maintenance, enhancement,
9     and expansion improvements;
10         (ii) projects to be funded from the Innovation,
11     Coordination, and Enhancement Fund;
12         (iii) projects intended to improve or enhance
13     ridership or customer service;
14         (iv) design and location of station or transit
15     improvements intended to promote transfers, increase
16     ridership, and support transit-oriented land development;
17         (v) assessing the impact of projects on the ability to
18     operate and maintain the existing transit system; and
19         (vi) other criteria that advance the goals and
20     objectives of the Strategic Plan.
21     (d) The Strategic Plan shall establish performance
22 standards and measurements regarding the adequacy, efficiency,
23 and coordination of public transportation services in the
24 region and the implementation of the goals and objectives in
25 the Strategic Plan. At a minimum, such standards and measures
26 shall include customer-related performance data measured by

 

 

09500SB0307ham002 - 124 - LRB095 04310 HLH 40653 a

1 line, route, or sub-region, as determined by the Authority, on
2 the following:
3         (i) travel times and on-time performance;
4         (ii) ridership data;
5         (iii) equipment failure rates;
6         (iv) employee and customer safety; and
7         (v) customer satisfaction.
8     The Service Boards and transportation agencies that
9 receive funding from the Authority or Service Boards shall
10 prepare, publish, and submit to the Authority such reports with
11 regard to these standards and measurements in the frequency and
12 form required by the Authority; however, the frequency of such
13 reporting shall be no less than annual. The Service Boards
14 shall publish such reports on their respective websites. The
15 Authority shall compile and publish such reports on its
16 website. Such performance standards and measures shall not be
17 used as the basis for disciplinary action against any employee
18 of the Authority or Service Boards, except to the extent the
19 employment and disciplinary practices of the Authority or
20 Service Board provide for such action.
21     (e) The Strategic Plan shall identify innovations to
22 improve the delivery of public transportation and the
23 construction of public transportation facilities.
24     (f) The Strategic Plan shall describe the expected
25 financial condition of public transportation in the
26 metropolitan region prospectively over a 10-year period, which

 

 

09500SB0307ham002 - 125 - LRB095 04310 HLH 40653 a

1 may include information about the cash position and all known
2 obligations of the Authority and the Service Boards including
3 operating expenditures, debt service, contributions for
4 payment of pension and other post-employment benefits, the
5 expected revenues from fares, tax receipts, grants from the
6 federal, State, and local governments for operating and capital
7 purposes and issuance of debt, the availability of working
8 capital, and the resources needed to achieve the goals and
9 objectives described in the Strategic Plan.
10     (g) In developing the Strategic Plan, the Authority shall
11 rely on such demographic and other data, forecasts, and
12 assumptions developed by the Chicago Metropolitan Agency for
13 Planning with respect to the patterns of population density and
14 growth, projected commercial and residential development, and
15 environmental factors, within the metropolitan region and in
16 areas outside the metropolitan region that may impact public
17 transportation utilization in the metropolitan region. Before
18 adopting or amending any Strategic Plan, the Authority shall
19 consult with the Chicago Metropolitan Agency for Planning
20 regarding the consistency of the Strategic Plan with the
21 Regional Comprehensive Plan adopted pursuant to the Regional
22 Planning Act.
23     (h) The Authority may adopt, by the affirmative vote of at
24 least 12 of its then Directors, sub-regional or corridor plans
25 for specific geographic areas of the metropolitan region in
26 order to improve the adequacy, efficiency, and coordination of

 

 

09500SB0307ham002 - 126 - LRB095 04310 HLH 40653 a

1 existing, or the delivery of new, public transportation. Such
2 plans may also address areas outside the metropolitan region
3 that may impact public transportation utilization in the
4 metropolitan region. In preparing a sub-regional or corridor
5 plan, the Authority may identify changes in operating practices
6 or capital investment in the sub-region or corridor that could
7 increase ridership, reduce costs, improve coordination, or
8 enhance transit-oriented development. The Authority shall
9 consult with any affected Service Boards in the preparation of
10 any sub-regional or corridor plans.
11     (i) If the Authority determines, by the affirmative vote of
12 at least 12 of its then Directors, that, with respect to any
13 proposed new public transportation service or facility, (i)
14 multiple Service Boards or transportation agencies are
15 potential service providers and (ii) the public transportation
16 facilities to be constructed or purchased to provide that
17 service have an expected construction cost of more than
18 $25,000,000, the Authority shall have sole responsibility for
19 conducting any alternatives analysis and preliminary
20 environmental assessment required by federal or State law.
21 Nothing in this subparagraph (i) shall prohibit a Service Board
22 from undertaking alternatives analysis and preliminary
23 environmental assessment for any public transportation service
24 or facility identified in items (i) and (ii) above that is
25 included in the Five-Year Capital Program as of the effective
26 date of this amendatory Act of the 95th General Assembly;

 

 

09500SB0307ham002 - 127 - LRB095 04310 HLH 40653 a

1 however, any expenditure related to any such public
2 transportation service or facility must be included in a
3 Five-Year Capital Program under the requirements of Sections
4 2.01b and 4.02 of this Act.
 
5     (70 ILCS 3615/2.01b new)
6     Sec. 2.01b. The Five-Year Capital Program. By the
7 affirmative vote of at least 12 of its then Directors, the
8 Authority, after consultation with the Service Boards and after
9 holding a minimum of 3 public hearings in Cook County and one
10 public hearing in each of the other counties in the
11 metropolitan region, shall each year adopt a Five-Year Capital
12 Program that shall include each capital improvement to be
13 undertaken by or on behalf of a Service Board provided that the
14 Authority finds that the improvement meets any criteria for
15 capital improvements contained in the Strategic Plan, is not
16 inconsistent with any sub-regional or corridor plan adopted by
17 the Authority, and can be funded within amounts available with
18 respect to the capital and operating costs of such improvement.
19 In reviewing proposals for improvements to be included in a
20 Five-Year Capital Program, the Authority may give priority to
21 improvements that are intended to bring public transportation
22 facilities into a state of good repair. The Five-Year Capital
23 Program shall also identify capital improvements to be
24 undertaken by a Service Board, a transportation agency, or a
25 unit of local government and funded by the Authority from

 

 

09500SB0307ham002 - 128 - LRB095 04310 HLH 40653 a

1 amounts in the Innovation, Coordination, and Enhancement Fund,
2 provided that no improvement that is included in the Five-Year
3 Capital Program as of the effective date of this amendatory Act
4 of the 95th General Assembly may receive funding from the
5 Innovation, Coordination, and Enhancement Fund. Before
6 adopting a Five-Year Capital Program, the Authority shall
7 consult with the Chicago Metropolitan Agency for Planning
8 regarding the consistency of the Five-Year Capital Program with
9 the Regional Comprehensive Plan adopted pursuant to the
10 Regional Planning Act.
 
11     (70 ILCS 3615/2.01c new)
12     Sec. 2.01c. Innovation, Coordination, and Enhancement
13 Fund.
14     (a) The Authority shall establish an Innovation,
15 Coordination, and Enhancement Fund and each year deposit into
16 the Fund the amounts directed by Section 4.03.3 of this Act.
17 Amounts on deposit in such Fund and interest and other earnings
18 on those amounts may be used by the Authority, upon the
19 affirmative vote of 12 of its then Directors, and after a
20 public participation process, for operating or capital grants
21 or loans to Service Boards, transportation agencies, or units
22 of local government that advance the goals and objectives
23 identified by the Authority in its Strategic Plan, provided
24 that no improvement that has been included in a Five-Year
25 Capital Program as of the effective date of this amendatory Act

 

 

09500SB0307ham002 - 129 - LRB095 04310 HLH 40653 a

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

 

 

09500SB0307ham002 - 130 - LRB095 04310 HLH 40653 a

1     (70 ILCS 3615/2.01d new)
2     Sec. 2.01d. ADA Paratransit Fund. The Authority shall
3 establish an ADA Paratransit Fund and, each year, deposit into
4 that Fund the amounts directed by Section 4.03.3 of this Act.
5 The amounts on deposit in the Fund and interest and other
6 earnings on those amounts shall be used by the Authority to
7 make grants to the Suburban Bus Board for ADA paratransit
8 services provided pursuant to plans approved by the Authority
9 under Section 2.30 of this Act. Funds received by the Suburban
10 Bus Board from the Authority's ADA Paratransit Fund shall be
11 used only to provide ADA paratransit services to individuals
12 who are determined to be eligible for such services by the
13 Authority under the Americans with Disabilities Act of 1990 and
14 its implementing regulations. Revenues from and costs of
15 services provided by the Suburban Bus Board with grants made
16 under this Section shall be included in the Annual Budget and
17 Two-Year Financial Program of the Suburban Bus Board and shall
18 be subject to all budgetary and financial requirements under
19 this Act that apply to ADA paratransit services. Beginning in
20 2008, the Executive Director shall, no later than August 15 of
21 each year, provide to the Board a written determination of the
22 projected annual costs of ADA paratransit services that are
23 required to be provided pursuant to the Americans with
24 Disabilities Act of 1990 and its implementing regulations. The
25 Authority shall conduct triennial financial, compliance, and
26 performance audits of ADA paratransit services to assist in

 

 

09500SB0307ham002 - 131 - LRB095 04310 HLH 40653 a

1 this determination.
 
2     (70 ILCS 3615/2.01e new)
3     Sec. 2.01e. Suburban Community Mobility Fund. The
4 Authority shall establish a Suburban Community Mobility Fund
5 and, each year, deposit into that Fund the amounts directed by
6 Section 4.03.3 of this Act. The amounts on deposit in the Fund
7 and interest and other earnings on those amounts shall be used
8 by the Authority to make grants to the Suburban Bus Board for
9 the purpose of operating transit services, other than
10 traditional fixed-route services, that enhance suburban
11 mobility, including, but not limited to, demand-responsive
12 transit services, ride sharing, van pooling, service
13 coordination, centralized dispatching and call taking, reverse
14 commuting, service restructuring, and bus rapid transit.
15 Revenues from and costs of services provided by the Suburban
16 Bus Board with moneys from the Suburban Community Mobility Fund
17 shall be included in the Annual Budget and Two-Year Financial
18 Program of the Suburban Bus Board and shall be subject to all
19 budgetary and financial requirements under this Act.
 
20     (70 ILCS 3615/2.04)  (from Ch. 111 2/3, par. 702.04)
21     Sec. 2.04. Fares and Nature of Service.
22     (a) Whenever a Service Board provides any public
23 transportation by operating public transportation facilities,
24 the Service Board shall provide for the level and nature of

 

 

09500SB0307ham002 - 132 - LRB095 04310 HLH 40653 a

1 fares or charges to be made for such services, and the nature
2 and standards of public transportation to be so provided that
3 meet the goals and objectives adopted by the Authority in the
4 Strategic Plan. Provided, however that if the Board adopts a
5 budget and financial plan for a Service Board in accordance
6 with the provisions in Section 4.11(b)(5), the Board may
7 consistent with the terms of any purchase of service contract
8 provide for the level and nature of fares to be made for such
9 services under the jurisdiction of that Service Board, and the
10 nature and standards of public transportation to be so
11 provided.
12     (b) Whenever a Service Board provides any public
13 transportation pursuant to grants made after June 30, 1975, to
14 transportation agencies for operating expenses (other than
15 with regard to experimental programs) or pursuant to any
16 purchase of service agreement, the purchase of service
17 agreement or grant contract shall provide for the level and
18 nature of fares or charges to be made for such services, and
19 the nature and standards of public transportation to be so
20 provided. A Service Board shall require all transportation
21 agencies with which it contracts, or from which it purchases
22 transportation services or to which it makes grants to provide
23 half fare transportation for their student riders if any of
24 such agencies provide for half fare transportation to their
25 student riders.
26     (c) In so providing for the fares or charges and the nature

 

 

09500SB0307ham002 - 133 - LRB095 04310 HLH 40653 a

1 and standards of public transportation, any purchase of service
2 agreements or grant contracts shall provide, among other
3 matters, for the terms or cost of transfers or interconnections
4 between different modes of transportation and different public
5 transportation agencies, schedules or routes of such service,
6 changes which may be made in such service, the nature and
7 condition of the facilities used in providing service, the
8 manner of collection and disposition of fares or charges, the
9 records and reports to be kept and made concerning such
10 service, and for interchangeable tickets or other coordinated
11 or uniform methods of collection of charges, and shall further
12 require that the transportation agency comply with any
13 determination made by the Board of the Authority under and
14 subject to the provisions of Section 2.12b of this Act. In
15 regard to any such service, the Authority and the Service
16 Boards shall give attention to and may undertake programs to
17 promote use of public transportation and to provide coordinated
18 ticket sales and passenger information. In the case of a grant
19 to a transportation agency which remains subject to Illinois
20 Commerce Commission supervision and regulation, the Service
21 Boards shall exercise the powers set forth in this Section in a
22 manner consistent with such supervision and regulation by the
23 Illinois Commerce Commission.
24 (Source: P.A. 83-886.)
 
25     (70 ILCS 3615/2.05)  (from Ch. 111 2/3, par. 702.05)

 

 

09500SB0307ham002 - 134 - LRB095 04310 HLH 40653 a

1     Sec. 2.05. Centralized Services; Acquisition and
2 Construction.
3     (a) The Authority may at the request of two or more Service
4 Boards, serve, or designate a Service Board to serve, as a
5 centralized purchasing agent for the Service Boards so
6 requesting.
7     (b) The Authority may at the request of two or more Service
8 Boards perform other centralized services such as ridership
9 information and transfers between services under the
10 jurisdiction of the Service Boards where such centralized
11 services financially benefit the region as a whole. Provided,
12 however, that the Board may require transfers only upon an
13 affirmative vote of 12 9 of its then Directors.
14     (c) A Service Board or the Authority may for the benefit of
15 a Service Board, to meet its purposes, construct or acquire any
16 public transportation facility for use by a Service Board or
17 for use by any transportation agency and may acquire any such
18 facilities from any transportation agency, including also
19 without limitation any reserve funds, employees' pension or
20 retirement funds, special funds, franchises, licenses,
21 patents, permits and papers, documents and records of the
22 agency. In connection with any such acquisition from a
23 transportation agency the Authority may assume obligations of
24 the transportation agency with regard to such facilities or
25 property or public transportation operations of such agency.
26     In connection with any construction or acquisition, the

 

 

09500SB0307ham002 - 135 - LRB095 04310 HLH 40653 a

1 Authority shall make relocation payments as may be required by
2 federal law or by the requirements of any federal agency
3 authorized to administer any federal program of aid.
4     (d) The Authority shall, after consulting with the Service
5 Boards, develop regionally coordinated and consolidated sales,
6 marketing, advertising, and public information programs that
7 promote the use and coordination of, and transfers among,
8 public transportation services in the metropolitan region. The
9 Authority shall develop and adopt, with the affirmative vote of
10 at least 12 of its then Directors, rules and regulations for
11 the Authority and the Service Boards regarding such programs to
12 ensure that the Service Boards' independent programs conform
13 with the Authority's regional programs.
14 (Source: P.A. 83-886.)
 
15     (70 ILCS 3615/2.09)  (from Ch. 111 2/3, par. 702.09)
16     Sec. 2.09. Research and Development.
17     (a) The Authority and the Service Boards shall study public
18 transportation problems and developments; encourage
19 experimentation in developing new public transportation
20 technology, financing methods, and management procedures;
21 conduct, in cooperation with other public and private agencies,
22 studies and demonstration and development projects to test and
23 develop methods for improving public transportation, for
24 reducing its costs to users or for increasing public use; and
25 conduct, sponsor, and participate in other studies and

 

 

09500SB0307ham002 - 136 - LRB095 04310 HLH 40653 a

1 experiments, which may include fare demonstration programs,
2 useful to achieving the purposes of this Act. The cost for any
3 such item authorized by this Section may be exempted by the
4 Board in a budget ordinance from the "costs" included in
5 determining that the Authority and its service boards meet the
6 farebox recovery ratio or system generated revenues recovery
7 ratio requirements of Sections 3A.10, 3B.10, 4.01(b), 4.09 and
8 4.11 of this Act and Section 34 of the Metropolitan Transit
9 Authority Act during the Authority's fiscal year which begins
10 January 1, 1986 and ends December 31, 1986, provided that the
11 cost of any item authorized herein must be specifically
12 approved within the budget adopted pursuant to Sections 4.01
13 and 4.11 of this Act for that fiscal year.
14     (b) To improve public transportation service in areas of
15 the metropolitan region with limited access to commuter rail
16 service, the Authority and the Suburban Bus Division shall
17 evaluate the feasibility of implementing new bus rapid transit
18 services using the expressway and tollway systems in the
19 metropolitan region. The Illinois Department of Transportation
20 and the Illinois Toll Highway Authority shall work
21 cooperatively with the Authority and the Suburban Bus Division
22 in that evaluation and in the implementation of bus rapid
23 transit services. The Authority and the Suburban Bus Division,
24 in cooperation with the Illinois Department of Transportation,
25 shall develop a bus rapid transit demonstration project on
26 Interstate 55 located in Will, DuPage, and Cook counties. This

 

 

09500SB0307ham002 - 137 - LRB095 04310 HLH 40653 a

1 demonstration project shall test and refine approaches to bus
2 rapid transit operations in the expressway or tollway shoulder
3 or regular travel lanes and shall investigate technology
4 options that facilitate the shared use of the transit lane and
5 provide revenue for financing construction and operation of
6 public transportation facilities.
7     (c) The Suburban Bus Division and the Authority shall
8 cooperate in the development, funding, and operation of
9 programs to enhance access to job markets for residents in
10 south suburban Cook County. Beginning in 2008, the Authority
11 shall allocate to the Suburban Bus Division an amount not less
12 than $7,500,000 annually for the costs of such programs.
13 (Source: P.A. 84-939.)
 
14     (70 ILCS 3615/2.12)  (from Ch. 111 2/3, par. 702.12)
15     Sec. 2.12. Coordination with Planning Agencies. The
16 Authority and the Service Boards shall cooperate with the
17 various public agencies charged with responsibility for
18 long-range or comprehensive planning for the metropolitan
19 region. The Authority shall utilize the official forecasts and
20 plans of the Chicago Metropolitan Agency for Planning in
21 developing the Strategic Plan and the Five-Year Capital
22 Program. The Authority and the Service Boards shall, prior to
23 the adoption of any Strategic Plan, as provided in Section
24 2.01a of this Act, or the adoption of any Five-Year Capital
25 Program, as provided in paragraph (b) of Section 2.01b 2.01 of

 

 

09500SB0307ham002 - 138 - LRB095 04310 HLH 40653 a

1 this Act, submit its proposals to such agencies for review and
2 comment. The Authority and the Service Boards may make use of
3 existing studies, surveys, plans, data and other materials in
4 the possession of any State agency or department, any planning
5 agency or any unit of local government.
6 (Source: P.A. 83-886.)
 
7     (70 ILCS 3615/2.12b new)
8     Sec. 2.12b. Coordination of Fares and Service. Upon the
9 request of a Service Board, the Executive Director of the
10 Authority may, upon the affirmative vote of 9 of the then
11 Directors of the Authority, intervene in any matter involving
12 (i) a dispute between Service Boards or a Service Board and a
13 transportation agency providing service on behalf of a Service
14 Board with respect to the terms of transfer between, and the
15 allocation of revenues from fares and charges for,
16 transportation services provided by the parties or (ii) a
17 dispute between 2 Service Boards with respect to coordination
18 of service, route duplication, or a change in service. Any
19 Service Board or transportation agency involved in such dispute
20 shall meet with the Executive Director, cooperate in good faith
21 to attempt to resolve the dispute, and provide any books,
22 records, and other information requested by the Executive
23 Director. If the Executive Director is unable to mediate a
24 resolution of any dispute, he or she may provide a written
25 determination recommending a change in the fares or charges or

 

 

09500SB0307ham002 - 139 - LRB095 04310 HLH 40653 a

1 the allocation of revenues for such service or directing a
2 change in the nature or provider of service that is the subject
3 of the dispute. The Executive Director shall base such
4 determination upon the goals and objectives of the Strategic
5 Plan established pursuant to Section 2.01a(b). Such
6 determination shall be presented to the Board of the Authority
7 and, if approved by the affirmative vote of at least 9 of the
8 then Directors of the Authority, shall be final and shall be
9 implemented by any affected Service Board and transportation
10 agency within the time frame required by the determination.
 
11     (70 ILCS 3615/2.14)  (from Ch. 111 2/3, par. 702.14)
12     Sec. 2.14. Appointment of Officers and Employees. The
13 Authority may appoint, retain and employ officers, attorneys,
14 agents, engineers and employees. The officers shall include an
15 Executive Director, who shall be the chief executive officer of
16 the Authority, appointed by the Chairman with the concurrence
17 of 11 9 of the other then Directors of the Board. The Executive
18 Director shall organize the staff of the Authority, shall
19 allocate their functions and duties, shall transfer such staff
20 to the Suburban Bus Division and the Commuter Rail Division as
21 is sufficient to meet their purposes, shall fix compensation
22 and conditions of employment of the staff of the Authority, and
23 consistent with the policies of and direction from the Board,
24 take all actions necessary to achieve its purposes, fulfill its
25 responsibilities and carry out its powers, and shall have such

 

 

09500SB0307ham002 - 140 - LRB095 04310 HLH 40653 a

1 other powers and responsibilities as the Board shall determine.
2 The Executive Director must be an individual of proven
3 transportation and management skills and may not be a member of
4 the Board. The Authority may employ its own professional
5 management personnel to provide professional and technical
6 expertise concerning its purposes and powers and to assist it
7 in assessing the performance of the Service Boards in the
8 metropolitan region.
9     No unlawful discrimination, as defined and prohibited in
10 the Illinois Human Rights Act, shall be made in any term or
11 aspect of employment nor shall there be discrimination based
12 upon political reasons or factors. The Authority shall
13 establish regulations to insure that its discharges shall not
14 be arbitrary and that hiring and promotion are based on merit.
15     The Authority shall be subject to the "Illinois Human
16 Rights Act", as now or hereafter amended, and the remedies and
17 procedure established thereunder. The Authority shall file an
18 affirmative action program for employment by it with the
19 Department of Human Rights to ensure that applicants are
20 employed and that employees are treated during employment,
21 without regard to unlawful discrimination. Such affirmative
22 action program shall include provisions relating to hiring,
23 upgrading, demotion, transfer, recruitment, recruitment
24 advertising, selection for training and rates of pay or other
25 forms of compensation.
26 (Source: P.A. 83-886.)
 

 

 

09500SB0307ham002 - 141 - LRB095 04310 HLH 40653 a

1     (70 ILCS 3615/2.18a)  (from Ch. 111 2/3, par. 702.18a)
2     Sec. 2.18a. (a) The provisions of this Section apply to
3 collective bargaining agreements (including extensions and
4 amendments to existing agreements) between Service Boards or
5 transportation agencies subject to the jurisdiction of Service
6 Boards and their employees, which are entered into after
7 January 1, 1984.
8     (b) The Authority shall approve amended budgets prepared by
9 Service Boards which incorporate the costs of collective
10 bargaining agreements between Service Boards and their
11 employees. The Authority shall approve such an amended budget
12 provided that it determines by the affirmative vote of 12 9 of
13 its then members that the amended budget meets the standards
14 established in Section 4.11.
15 (Source: P.A. 83-886.)
 
16     (70 ILCS 3615/2.30)
17     Sec. 2.30. Paratransit services.
18     (a) For purposes of this Act, "ADA paratransit services"
19 shall mean those comparable or specialized transportation
20 services provided by, or under grant or purchase of service
21 contracts of, the Service Boards to individuals with
22 disabilities who are unable to use fixed route transportation
23 systems and who are determined to be eligible, for some or all
24 of their trips, for such services under the Americans with

 

 

09500SB0307ham002 - 142 - LRB095 04310 HLH 40653 a

1 Disabilities Act of 1990 and its implementing regulations.
2     (b) Beginning July 1, 2005, the Authority is responsible
3 for the funding, from amounts on deposit in the ADA Paratransit
4 Fund established under Section 2.01d of this Act, financial
5 review and oversight of all ADA paratransit services that are
6 provided by the Authority or by any of the Service Boards. The
7 Suburban Bus Board shall operate or provide for the operation
8 of all ADA paratransit services by no later than July 1, 2006,
9 except that this date may be extended to the extent necessary
10 to obtain approval from the Federal Transit Administration of
11 the plan prepared pursuant to subsection (c).
12     (c) No later than January 1, 2006, the Authority, in
13 collaboration with the Suburban Bus Board and the Chicago
14 Transit Authority, shall develop a plan for the provision of
15 ADA paratransit services and submit such plan to the Federal
16 Transit Administration for approval. Approval of such plan by
17 the Authority shall require the affirmative votes of 12 9 of
18 the then Directors. The Suburban Bus Board, the Chicago Transit
19 Authority and the Authority shall comply with the requirements
20 of the Americans with Disabilities Act of 1990 and its
21 implementing regulations in developing and approving such plan
22 including, without limitation, consulting with individuals
23 with disabilities and groups representing them in the
24 community, and providing adequate opportunity for public
25 comment and public hearings. The plan shall include the
26 contents required for a paratransit plan pursuant to the

 

 

09500SB0307ham002 - 143 - LRB095 04310 HLH 40653 a

1 Americans with Disabilities Act of 1990 and its implementing
2 regulations. The plan shall also include, without limitation,
3 provisions to:
4         (1) maintain, at a minimum, the levels of ADA
5     paratransit service that are required to be provided by the
6     Service Boards pursuant to the Americans with Disabilities
7     Act of 1990 and its implementing regulations;
8         (2) transfer the appropriate ADA paratransit services,
9     management, personnel, service contracts and assets from
10     the Chicago Transit Authority to the Authority or the
11     Suburban Bus Board, as necessary, by no later than July 1,
12     2006, except that this date may be extended to the extent
13     necessary to obtain approval from the Federal Transit
14     Administration of the plan prepared pursuant to this
15     subsection (c);
16         (3) provide for consistent policies throughout the
17     metropolitan region for scheduling of ADA paratransit
18     service trips to and from destinations, with consideration
19     of scheduling of return trips on a "will-call" open-ended
20     basis upon request of the rider, if practicable, and with
21     consideration of an increased number of trips available by
22     subscription service than are available as of the effective
23     date of this amendatory Act;
24         (4) provide that service contracts and rates, entered
25     into or set after the approval by the Federal Transit
26     Administration of the plan prepared pursuant to subsection

 

 

09500SB0307ham002 - 144 - LRB095 04310 HLH 40653 a

1     (c) of this Section, with private carriers and taxicabs for
2     ADA paratransit service are procured by means of an open
3     procurement process;
4         (5) provide for fares, fare collection and billing
5     procedures for ADA paratransit services throughout the
6     metropolitan region;
7         (6) provide for performance standards for all ADA
8     paratransit service transportation carriers, with
9     consideration of door-to-door service;
10         (7) provide, in cooperation with the Illinois
11     Department of Transportation, the Illinois Department of
12     Public Aid and other appropriate public agencies and
13     private entities, for the application and receipt of
14     grants, including, without limitation, reimbursement from
15     Medicaid or other programs for ADA paratransit services;
16         (8) provide for a system of dispatch of ADA paratransit
17     services transportation carriers throughout the
18     metropolitan region, with consideration of county-based
19     dispatch systems already in place as of the effective date
20     of this amendatory Act;
21         (9) provide for a process of determining eligibility
22     for ADA paratransit services that complies with the
23     Americans with Disabilities Act of 1990 and its
24     implementing regulations;
25         (10) provide for consideration of innovative methods
26     to provide and fund ADA paratransit services; and

 

 

09500SB0307ham002 - 145 - LRB095 04310 HLH 40653 a

1         (11) provide for the creation of one or more ADA
2     advisory boards, or the reconstitution of the existing ADA
3     advisory boards for the Service Boards, to represent the
4     diversity of individuals with disabilities in the
5     metropolitan region and to provide appropriate ongoing
6     input from individuals with disabilities into the
7     operation of ADA paratransit services.
8     (d) All revisions and annual updates to the ADA paratransit
9 services plan developed pursuant to subsection (c) of this
10 Section, or certifications of continued compliance in lieu of
11 plan updates, that are required to be provided to the Federal
12 Transit Administration shall be developed by the Authority, in
13 collaboration with the Suburban Bus Board and the Chicago
14 Transit Authority, and the Authority shall submit such
15 revision, update or certification to the Federal Transit
16 Administration for approval. Approval of such revisions,
17 updates or certifications by the Authority shall require the
18 affirmative votes of 12 9 of the then Directors.
19     (e) The Illinois Department of Transportation, the
20 Illinois Department of Public Aid, the Authority, the Suburban
21 Bus Board and the Chicago Transit Authority shall enter into
22 intergovernmental agreements as may be necessary to provide
23 funding and accountability for, and implementation of, the
24 requirements of this Section.
25     (f) By no later than April 1, 2007, the Authority shall
26 develop and submit to the General Assembly and the Governor a

 

 

09500SB0307ham002 - 146 - LRB095 04310 HLH 40653 a

1 funding plan for ADA paratransit services. Approval of such
2 plan by the Authority shall require the affirmative votes of 12
3 9 of the then Directors. The funding plan shall, at a minimum,
4 contain an analysis of the current costs of providing ADA
5 paratransit services, projections of the long-term costs of
6 providing ADA paratransit services, identification of and
7 recommendations for possible cost efficiencies in providing
8 ADA paratransit services, and identification of and
9 recommendations for possible funding sources for providing ADA
10 paratransit services. The Illinois Department of
11 Transportation, the Illinois Department of Public Aid, the
12 Suburban Bus Board, the Chicago Transit Authority and other
13 State and local public agencies as appropriate shall cooperate
14 with the Authority in the preparation of such funding plan.
15     (g) Any funds derived from the federal Medicaid program for
16 reimbursement of the costs of providing ADA paratransit
17 services within the metropolitan region shall be directed to
18 the Authority and shall be used to pay for or reimburse the
19 costs of providing such services.
20     (h) Nothing in this amendatory Act shall be construed to
21 conflict with the requirements of the Americans with
22 Disabilities Act of 1990 and its implementing regulations.
23 (Source: P.A. 94-370, eff. 7-29-05.)
 
24     (70 ILCS 3615/2.31 new)
25     Sec. 2.31. Disadvantaged Business Enterprise Contracting

 

 

09500SB0307ham002 - 147 - LRB095 04310 HLH 40653 a

1 and Equal Employment Opportunity Programs. The Authority and
2 each Service Board shall, as soon as is practicable but in no
3 event later than two years after the effective date of this
4 amendatory Act of the 95th General Assembly, establish and
5 maintain a disadvantaged business enterprise contracting
6 program designed to ensure non-discrimination in the award and
7 administration of contracts not covered under a federally
8 mandated disadvantaged business enterprise program. The
9 program shall establish narrowly tailored goals for the
10 participation of disadvantaged business enterprises as the
11 Authority and each Service Board determines appropriate. The
12 goals shall be based on demonstrable evidence of the
13 availability of ready, willing, and able disadvantaged
14 business enterprises relative to all businesses ready,
15 willing, and able to participate on the program's contracts.
16 The program shall require the Authority and each Service Board
17 to monitor the progress of the contractors' obligations with
18 respect to the program's goals. Nothing in this program shall
19 conflict with or interfere with the maintenance or operation
20 of, or compliance with, any federally mandated disadvantaged
21 business enterprise program.
22     The Authority and each Service Board shall establish and
23 maintain a program designed to promote equal employment
24 opportunity. Each year, no later than October 1, the Authority
25 and each Service Board shall report to the General Assembly on
26 the number of their respective employees and the number of

 

 

09500SB0307ham002 - 148 - LRB095 04310 HLH 40653 a

1 their respective employees who have designated themselves as
2 members of a minority group and gender.
3     Each year no later than October 1, and starting no later
4 than the October 1 after the establishment of their
5 disadvantaged business enterprise contracting programs, the
6 Authority and each Service Board shall submit a report with
7 respect to such program to the General Assembly. In addition,
8 each year no later than October 1, the Authority and each
9 Service Board shall submit a copy of its federally mandated
10 semi-annual Uniform Report of Disadvantaged Business
11 Enterprises Awards or Commitments and Payments to the General
12 Assembly.
 
13     (70 ILCS 3615/3.01)  (from Ch. 111 2/3, par. 703.01)
14     Sec. 3.01. Board of Directors. The Upon expiration of the
15 term of the members of the Transition Board as provided for in
16 Section 3.09, the corporate authorities and governing body of
17 the Authority shall be a Board consisting of 13 Directors until
18 January 1, 2008, and 16 Directors thereafter, appointed as
19 follows:
20     (a) Four Directors appointed by the Mayor of the City of
21 Chicago, with the advice and consent of the City Council of the
22 City of Chicago, and, only until January 1, 2008, a fifth
23 director who shall be the Chairman of the Chicago Transit
24 Authority. After January 1, 2008, the Mayor of the City of
25 Chicago, with the advice and consent of the City Council of the

 

 

09500SB0307ham002 - 149 - LRB095 04310 HLH 40653 a

1 City of Chicago, shall appoint a fifth Director. The Directors
2 appointed by the Mayor of the City of Chicago shall not be the
3 chairman or a director of the Chicago Transit Authority. Each
4 such Director shall reside in the City of Chicago except the
5 Chairman of the Chicago Transit Authority who shall reside
6 within the metropolitan area as defined in the Metropolitan
7 Transit Authority Act.
8     (b) Four Directors appointed by the votes of a majority of
9 the members of the Cook County Board elected from that part of
10 Cook County outside of Chicago, or, in the event such Board of
11 Commissioners becomes elected from single member districts, by
12 those Commissioners elected from districts, a majority of the
13 electors of which reside outside Chicago. After January 1,
14 2008, a fifth Director appointed by the President of the Cook
15 County Board with the advice and consent of the members of the
16 Cook County Board. In either case, such appointment shall be
17 with the concurrence of four such Commissioners. Each such
18 Director appointed under this subparagraph shall reside in that
19 part of Cook County outside Chicago.
20     (c) Until January 1, 2008, 3 Directors appointed by the
21 Chairmen of the county boards of DuPage, Kane, Lake, McHenry,
22 and Will Counties, as follows:
23         (i) Two Directors appointed by the Chairmen of the
24     county boards of Kane, Lake, McHenry and Will Counties,
25     with the concurrence of not less than a majority of the
26     Chairmen from such counties, from nominees by the Chairmen.

 

 

09500SB0307ham002 - 150 - LRB095 04310 HLH 40653 a

1     Each such Chairman may nominate not more than 2 persons for
2     each position. Each such Director shall reside in a county
3     in the metropolitan region other than Cook or DuPage
4     Counties.
5         (ii) (d) One Director shall be appointed by the
6     Chairman of the Board of DuPage County Board with the
7     advice and consent of the County Board of DuPage County
8     Board. Such Director and shall reside in DuPage County.
9     (d) After January 1, 2008, 5 Directors appointed by the
10 Chairmen of the county boards of DuPage, Kane, Lake and McHenry
11 Counties and the County Executive of Will County, as follows:
12         (i) One Director appointed by the Chairman of the Kane
13     County Board with the advice and consent of the Kane County
14     Board. Such Director shall reside in Kane County.
15         (ii) One Director appointed by the County Executive of
16     Will County with the advice and consent of the Will County
17     Board. Such Director shall reside in Will County.
18         (iii) One Director appointed by the Chairman of the
19     DuPage County Board with the advice and consent of the
20     DuPage County Board. Such Director shall reside in DuPage
21     County.
22         (iv) One Director appointed by the Chairman of the Lake
23     County Board with the advice and consent of the Lake County
24     Board. Such Director shall reside in Lake County.
25         (v) One Director appointed by the Chairman of the
26     McHenry County Board with the advice and consent of the

 

 

09500SB0307ham002 - 151 - LRB095 04310 HLH 40653 a

1     McHenry County Board. Such Director shall reside in McHenry
2     County.
3         (vi) To implement the changes in appointing authority
4     under this subparagraph (d) the three Directors appointed
5     under subparagraph (c) and residing in Lake County, DuPage
6     County, and Kane County respectively shall each continue to
7     serve as Director until the expiration of their respective
8     term of office and until his or her successor is appointed
9     and qualified or a vacancy occurs in the office. Thereupon,
10     the appointment shall be made by the officials given
11     appointing authority with respect to the Director whose
12     term has expired or office has become vacant.
13     (e) The Chairman serving on the effective date of this
14 amendatory Act of the 95th General Assembly shall continue to
15 serve as Chairman until the expiration of his or her term of
16 office and until his or her successor is appointed and
17 qualified or a vacancy occurs in the office Before January 1,
18 1987, for the term expiring July 1, 1989, the Chairman shall be
19 appointed by the Governor. Thereafter the Chairman shall be
20 appointed by the other 12 Directors with the concurrence of
21 three-fourths of such Directors. Upon the expiration or vacancy
22 of the term of the Chairman then serving upon the effective
23 date of this amendatory Act of the 95th General Assembly, the
24 Chairman shall be appointed by the other Directors, by the
25 affirmative vote of at least 11 of the then Directors, with at
26 least 2 affirmative votes from Directors who reside in the City

 

 

09500SB0307ham002 - 152 - LRB095 04310 HLH 40653 a

1 of Chicago, at least 2 affirmative votes from Directors who
2 reside in Cook County outside the City of Chicago, and at least
3 2 affirmative votes from Directors who reside in the Counties
4 of DuPage, Lake, Will, Kane, or McHenry. The chairman shall not
5 be appointed from among the other Directors. The chairman shall
6 be a resident of the metropolitan region.
7     (f) Except as otherwise provided by this Act no Director
8 shall, while serving as such, be an officer, a member of the
9 Board of Directors or Trustees or an employee of any Service
10 Board or transportation agency, or be an employee of the State
11 of Illinois or any department or agency thereof, or of any unit
12 of local government or receive any compensation from any
13 elected or appointed office under the Constitution and laws of
14 Illinois; except that a Director may be a member of a school
15 board.
16     (g) Each appointment made under this Section and under
17 Section 3.03 shall be certified by the appointing authority to
18 the Board, which shall maintain the certifications as part of
19 the official records of the Authority; provided that the
20 initial appointments shall be certified to the Secretary of
21 State, who shall transmit the certifications to the Board
22 following its organization. All appointments made by the
23 Governor shall be made with the advice and consent of the
24 Senate.
25     (h) (Blank). The Board of Directors shall be so appointed
26 as to represent the City of Chicago, that part of Cook County

 

 

09500SB0307ham002 - 153 - LRB095 04310 HLH 40653 a

1 outside the City of Chicago, and that part of the metropolitan
2 region outside Cook County on the one man one vote basis. After
3 each Federal decennial census the General Assembly shall review
4 the composition of the Board and, if a change is needed to
5 comply with this requirement, shall provide for the necessary
6 revision by July 1 of the third year after such census.
7 Provided, however, that the Chairman of the Chicago Transit
8 Authority shall be a Director of the Authority and shall be
9 considered as representing the City of Chicago for purposes of
10 this paragraph.
11     Insofar as may be practicable, the changes in Board
12 membership necessary to achieve this purpose shall take effect
13 as appropriate members terms expire, no member's term being
14 reduced by reason of such revision of the composition of the
15 Board.
16 (Source: P.A. 83-1417.)
 
17     (70 ILCS 3615/3.03)  (from Ch. 111 2/3, par. 703.03)
18     Sec. 3.03. Terms, vacancies. Each Director, including the
19 Chairman, shall be appointed for an initial term as provided
20 for in Section 3.10 of this Act. Thereafter, each Director
21 shall hold office for a term of 5 years, and until his
22 successor has been appointed and has qualified. A vacancy shall
23 occur upon resignation, death, conviction of a felony, or
24 removal from office of a Director. Any Director may be removed
25 from office upon concurrence of not less than 11 9 Directors,

 

 

09500SB0307ham002 - 154 - LRB095 04310 HLH 40653 a

1 on a formal finding of incompetence, neglect of duty, or
2 malfeasance in office. Within 30 days after the office of any
3 member becomes vacant for any reason, the appointing
4 authorities of such member shall make an appointment to fill
5 the vacancy. A vacancy shall be filled for the unexpired term.
6     Whenever After October 1, 1984, whenever a vacancy for a
7 Director, except as to the Chairman or those Directors
8 appointed by the Governor or the Mayor of the City of Chicago,
9 exists for longer than 4 months, the new Director shall be
10 chosen by election by all legislative members in the General
11 Assembly representing the affected area. In order to qualify as
12 a voting legislative member in this matter, the affected area
13 must be more than 50% of the geographic area of the legislative
14 district.
15 (Source: P.A. 86-1475.)
 
16     (70 ILCS 3615/3.04)  (from Ch. 111 2/3, par. 703.04)
17     Sec. 3.04. Compensation. Each Director, excluding
18 including the Chairman, except for the Chairman of the Chicago
19 Transit Authority who shall not be compensated by the
20 Authority, shall be compensated at the rate of $25,000 per
21 year. The Chairman shall be compensated at the rate of $50,000
22 per year.
23     Officers of the Authority shall not be required to comply
24 with the requirements of "An Act requiring certain custodians
25 of public moneys to file and publish statements of the receipts

 

 

09500SB0307ham002 - 155 - LRB095 04310 HLH 40653 a

1 and disbursements thereof", approved June 24, 1919, as now or
2 hereafter amended.
3 (Source: P.A. 83-885; 83-886.)
 
4     (70 ILCS 3615/3.05)  (from Ch. 111 2/3, par. 703.05)
5     Sec. 3.05. Meetings. The Board shall prescribe the times
6 and places for meetings and the manner in which special
7 meetings may be called. The Board shall comply in all respects
8 with the "Open Meetings Act", approved July 11, 1957, as now or
9 hereafter amended. All records, documents and papers of the
10 Authority, other than those relating to matters concerning
11 which closed sessions of the Board may be held, shall be
12 available for public examination, subject to such reasonable
13 regulations as the Board may adopt.
14     A majority of the Directors holding office shall constitute
15 a quorum for the conduct of business. Except as otherwise
16 provided in this Act, the affirmative votes of at least 9 7
17 Directors shall be necessary for approving any contract or
18 agreement, adopting any rule or regulation, and any other
19 action required by this Act to be taken by resolution or
20 ordinance.
21     The Board shall meet with the Regional Citizens Advisory
22 Board at least once every 4 months.
23 (Source: P.A. 83-886.)
 
24     (70 ILCS 3615/3A.10)  (from Ch. 111 2/3, par. 703A.10)

 

 

09500SB0307ham002 - 156 - LRB095 04310 HLH 40653 a

1     Sec. 3A.10. Budget and Program. The Suburban Bus Board,
2 subject to the powers of the Authority in Section 4.11, shall
3 control the finances of the Division. It shall by ordinance
4 appropriate money to perform the Division's purposes and
5 provide for payment of debts and expenses of the Division. Each
6 year the Suburban Bus Board shall prepare and publish a
7 comprehensive annual budget and proposed five-year capital
8 program document, and a financial plan for the 2 years
9 thereafter describing the state of the Division and presenting
10 for the forthcoming fiscal year and the 2 following years the
11 Suburban Bus Board's plans for such operations and capital
12 expenditures as it intends to undertake and the means by which
13 it intends to finance them. The proposed budget, and financial
14 plan, and five-year capital program shall be based on the
15 Authority's estimate of funds to be made available to the
16 Suburban Bus Board by or through the Authority and shall
17 conform in all respects to the requirements established by the
18 Authority. The proposed program and budget, financial plan, and
19 five-year capital program shall contain a statement of the
20 funds estimated to be on hand at the beginning of the fiscal
21 year, the funds estimated to be received from all sources for
22 such year and the funds estimated to be on hand at the end of
23 such year. After adoption of the Authority's first Five-Year
24 Program, as provided in Section 2.01 of this Act, the proposed
25 program and budget shall specifically identify any respect in
26 which the recommended program deviates from the Authority's

 

 

09500SB0307ham002 - 157 - LRB095 04310 HLH 40653 a

1 then existing Five-Year Program, giving the reasons for such
2 deviation. The fiscal year of the Division shall be the same as
3 the fiscal year of the Authority. Before the proposed budget,
4 and program and financial plan, and five-year capital program
5 are submitted to the Authority, the Suburban Bus Board shall
6 hold at least one public hearing thereon in each of the
7 counties in the metropolitan region in which the Division
8 provides service. The Suburban Bus Board shall hold at least
9 one meeting for consideration of the proposed program and
10 budget, financial plan, and five-year capital program with the
11 county board of each of the several counties in the
12 metropolitan region in which the Division provides service.
13 After conducting such hearings and holding such meetings and
14 after making such changes in the proposed program and budget,
15 financial plan, and five-year capital program as the Suburban
16 Bus Board deems appropriate, it shall adopt an annual budget
17 ordinance at least by November 15 next preceding the beginning
18 of each fiscal year. The budget, and program, and financial
19 plan, and five-year capital program shall then be submitted to
20 the Authority as provided in Section 4.11. In the event that
21 the Board of the Authority determines that the budget and
22 program, and financial plan do not meet the standards of
23 Section 4.11, the Suburban Bus Board shall make such changes as
24 are necessary to meet such requirements and adopt an amended
25 budget ordinance. The amended budget ordinance shall be
26 resubmitted to the Authority pursuant to Section 4.11. The

 

 

09500SB0307ham002 - 158 - LRB095 04310 HLH 40653 a

1 ordinance shall appropriate such sums of money as are deemed
2 necessary to defray all necessary expenses and obligations of
3 the Division, specifying purposes and the objects or programs
4 for which appropriations are made and the amount appropriated
5 for each object or program. Additional appropriations,
6 transfers between items and other changes in such ordinance
7 which do not alter the basis upon which the balanced budget
8 determination was made by the Board of the Authority may be
9 made from time to time by the Suburban Bus Board.
10     The budget shall:
11         (i) show a balance between (A) anticipated revenues
12     from all sources including operating subsidies and (B) the
13     costs of providing the services specified and of funding
14     any operating deficits or encumbrances incurred in prior
15     periods, including provision for payment when due of
16     principal and interest on outstanding indebtedness;
17         (ii) show cash balances including the proceeds of any
18     anticipated cash flow borrowing sufficient to pay with
19     reasonable promptness all costs and expenses as incurred;
20         (iii) provide for a level of fares or charges and
21     operating or administrative costs for the public
22     transportation provided by or subject to the jurisdiction
23     of the Suburban Bus Board sufficient to allow the Suburban
24     Bus Board to meet its required system generated revenues
25     recovery ratio and, beginning with the 2007 fiscal year,
26     its system generated ADA paratransit services revenue

 

 

09500SB0307ham002 - 159 - LRB095 04310 HLH 40653 a

1     recovery ratio;
2         (iv) be based upon and employ assumptions and
3     projections which are reasonable and prudent;
4         (v) have been prepared in accordance with sound
5     financial practices as determined by the Board of the
6     Authority; and
7         (vi) meet such other uniform financial, budgetary, or
8     fiscal requirements that the Board of the Authority may by
9     rule or regulation establish; and .
10         (vii) be consistent with the goals and objectives
11     adopted by the Regional Transportation Authority in the
12     Strategic Plan.
13 (Source: P.A. 94-370, eff. 7-29-05.)
 
14     (70 ILCS 3615/3A.11)  (from Ch. 111 2/3, par. 703A.11)
15     Sec. 3A.11. Citizens Advisory Board. The Suburban Bus Board
16 shall establish a citizens advisory board composed of 10
17 residents of those portions of the metropolitan region in which
18 the Suburban Bus Board provides service who have an interest in
19 public transportation. The members of the advisory board shall
20 be named for 2 year terms, shall select one of their members to
21 serve as chairman and shall serve without compensation. The
22 citizens advisory board shall meet with the Suburban Bus Board
23 at least quarterly and advise the Suburban Bus Board of the
24 impact of its policies and programs on the communities it
25 serves. Appointments to the citizens advisory board should, to

 

 

09500SB0307ham002 - 160 - LRB095 04310 HLH 40653 a

1 the greatest extent possible, reflect the ethnic, cultural, and
2 geographic diversity of all persons residing within the
3 Suburban Bus Board's jurisdiction.
4 (Source: P.A. 83-886.)
 
5     (70 ILCS 3615/3A.14)  (from Ch. 111 2/3, par. 703A.14)
6     Sec. 3A.14. Labor. (a) The provisions of this Section apply
7 to collective bargaining agreements (including extensions and
8 amendments of existing agreements) entered into on or after
9 January 1, 1984.
10     (b) The Suburban Bus Board shall deal with and enter into
11 written contracts with their employees, through accredited
12 representatives of such employees authorized to act for such
13 employees concerning wages, salaries, hours, working
14 conditions, and pension or retirement provisions about which a
15 collective bargaining agreement has been entered prior to the
16 effective date of this amendatory Act of 1983. Any such
17 agreement of the Suburban Bus Board shall provide that the
18 agreement may be reopened if the amended budget submitted
19 pursuant to Section 2.18a of this Act is not approved by the
20 Board of the Authority. The agreement may not include a
21 provision requiring the payment of wage increases based on
22 changes in the Consumer Price Index. The Suburban Bus Board
23 shall not have the authority to enter collective bargaining
24 agreements with respect to inherent management rights, which
25 include such areas of discretion or policy as the functions of

 

 

09500SB0307ham002 - 161 - LRB095 04310 HLH 40653 a

1 the employer, standards of services, its overall budget, the
2 organizational structure and selection of new employees and
3 direction of personnel. Employers, however, shall be required
4 to bargain collectively with regard to policy matters directly
5 affecting wages, hours and terms and conditions of employment,
6 as well as the impact thereon, upon request by employee
7 representatives. To preserve the rights of employers and
8 exclusive representatives which have established collective
9 bargaining relationships or negotiated collective bargaining
10 agreements prior to the effective date of this amendatory Act
11 of 1983, employers shall be required to bargain collectively
12 with regard to any matter concerning wages, hours or conditions
13 of employment about which they have bargained prior to the
14 effective date of this amendatory Act of 1983.
15     (c) The collective bargaining agreement may not include a
16 prohibition on the use of part-time operators on any service
17 operated by the Suburban Bus Board except where prohibited by
18 federal law.
19     (d) Within 30 days of the signing of any such collective
20 bargaining agreement, the Suburban Bus Board shall determine
21 the costs of each provision of the agreement, prepare an
22 amended budget incorporating the costs of the agreement, and
23 present the amended budget to the Board of the Authority for
24 its approval under Section 4.11. The Board may approve the
25 amended budget by an affirmative vote of 12 9 of its then
26 Directors. If the budget is not approved by the Board of the

 

 

09500SB0307ham002 - 162 - LRB095 04310 HLH 40653 a

1 Authority, the agreement may be reopened and its terms may be
2 renegotiated. Any amended budget which may be prepared
3 following renegotiation shall be presented to the Board of the
4 Authority for its approval in like manner.
5 (Source: P.A. 83-886.)
 
6     (70 ILCS 3615/3B.02)  (from Ch. 111 2/3, par. 703B.02)
7     Sec. 3B.02. Commuter Rail Board.
8     (a) Until January 1, 2008, the The governing body of the
9 Commuter Rail Division shall be a board consisting of 7
10 directors appointed pursuant to Sections 3B.03 and 3B.04, as
11 follows:
12         (1) (a) One director shall be appointed by the Chairman
13     of the Board of DuPage County with the advice and consent
14     of the County Board of DuPage County and shall reside in
15     DuPage County. ;
16         (2) (b) Two directors appointed by the Chairmen of the
17     County Boards of Kane, Lake, McHenry and Will Counties with
18     the concurrence of not less than a majority of the chairmen
19     from such counties, from nominees by the Chairmen. Each
20     such chairman may nominate not more than two persons for
21     each position. Each such director shall reside in a county
22     in the metropolitan region other than Cook or DuPage
23     County.
24         (3) (c) Three directors appointed by the members of the
25     Cook County Board elected from that part of Cook County

 

 

09500SB0307ham002 - 163 - LRB095 04310 HLH 40653 a

1     outside of Chicago, or, in the event such Board of
2     Commissioners becomes elected from single member
3     districts, by those Commissioners elected from districts,
4     a majority of the residents of which reside outside
5     Chicago. In either case, such appointment shall be with the
6     concurrence of four such Commissioners. Each such director
7     shall reside in that part of Cook County outside Chicago.
8         (4) (d) One director appointed by the Mayor of the City
9     of Chicago, with the advice and consent of the City Council
10     of the City of Chicago. Such director shall reside in the
11     City of Chicago.
12         (5) The chairman shall be appointed by the directors,
13     from the members of the board, with the concurrence of 5 of
14     such directors.
15     (b) After January 1, 2008 the governing body of the
16 Commuter Rail Division shall be a board consisting of 11
17 directors appointed, pursuant to Sections 3B.03 and 3B.04, as
18 follows:
19         (1) One Director shall be appointed by the Chairman of
20     the DuPage County Board with the advice and consent of the
21     DuPage County Board and shall reside in DuPage County. To
22     implement the changes in appointing authority under this
23     Section, upon the expiration of the term of or vacancy in
24     office of the Director appointed under item (1) of
25     subsection (a) of this Section who resides in DuPage
26     County, a Director shall be appointed under this

 

 

09500SB0307ham002 - 164 - LRB095 04310 HLH 40653 a

1     subparagraph.
2         (2) One Director shall be appointed by the Chairman of
3     the McHenry County Board with the advice and consent of the
4     McHenry County Board and shall reside in McHenry County. To
5     implement the change in appointing authority under this
6     Section, upon the expiration of the term of or vacancy in
7     office of the Director appointed under item (2) of
8     subsection (a) of this Section who resides in McHenry
9     County, a Director shall be appointed under this
10     subparagraph.
11         (3) One Director shall be appointed by the Will County
12     Executive with the advice and consent of the Will County
13     Board and shall reside in Will County. To implement the
14     change in appointing authority under this Section, upon the
15     expiration of the term of or vacancy in office of the
16     Director appointed under item (2) of subsection (a) of this
17     Section who resides in Will County, a Director shall be
18     appointed under this subparagraph.
19         (4) One Director shall be appointed by the Chairman of
20     the Lake County Board with the advice and consent of the
21     Lake County Board and shall reside in Lake County.
22         (5) One Director shall be appointed by the Chairman of
23     the Kane County Board with the advice and consent of the
24     Kane County Board and shall reside in Kane County.
25         (6) One Director shall be appointed by the Mayor of the
26     City of Chicago with the advice and consent of the City

 

 

09500SB0307ham002 - 165 - LRB095 04310 HLH 40653 a

1     Council of the City of Chicago and shall reside in the City
2     of Chicago. To implement the changes in appointing
3     authority under this Section, upon the expiration of the
4     term of or vacancy in office of the Director appointed
5     under item (4) of subsection (a) of this Section who
6     resides in the City of Chicago, a Director shall be
7     appointed under this subparagraph.
8         (7) Five Directors residing in Cook County outside of
9     the City of Chicago, as follows:
10             (i) One Director who resides in Cook County outside
11         of the City of Chicago, appointed by the President of
12         the Cook County Board with the advice and consent of
13         the members of the Cook County Board.
14             (ii) One Director who resides in the township of
15         Barrington, Palatine, Wheeling, Hanover, Schaumburg,
16         or Elk Grove. To implement the changes in appointing
17         authority under this Section, upon the expiration of
18         the term of or vacancy in office of the Director
19         appointed under paragraph (3) of subsection (a) of this
20         Section who resides in the geographic area described in
21         this subparagraph, a Director shall be appointed under
22         this subparagraph.
23             (iii) One Director who resides in the township of
24         Northfield, New Trier, Maine, Niles, Evanston, Leyden,
25         Norwood Park, River Forest, or Oak Park.
26             (iv) One Director who resides in the township of

 

 

09500SB0307ham002 - 166 - LRB095 04310 HLH 40653 a

1         Proviso, Riverside, Berwyn, Cicero, Lyons, Stickney,
2         Lemont, Palos, or Orland. To implement the changes in
3         appointing authority under this Section, upon the
4         expiration of the term of or vacancy in office of the
5         Director appointed under paragraph (3) of subsection
6         (a) of this Section who resides in the geographic area
7         described in this subparagraph and whose term of office
8         had not expired as of August 1, 2007, a Director shall
9         be appointed under this subparagraph.
10             (v) One Director who resides in the township of
11         Worth, Calumet, Bremen, Thornton, Rich, or Bloom. To
12         implement the changes in appointing authority under
13         this Section, upon the expiration of the term of or
14         vacancy in office of the Director appointed under
15         paragraph (3) of subsection (a) of this Section who
16         resides in the geographic area described in this
17         subparagraph and whose term of office had expired as of
18         August 1, 2007, a Director shall be appointed under
19         this subparagraph.
20             (vi) The Directors identified under the provisions
21         of subparagraphs (ii) through (v) of this paragraph (7)
22         shall be appointed by the members of the Cook County
23         Board. Each individual Director shall be appointed by
24         those members of the Cook County Board whose Board
25         districts overlap in whole or in part with the
26         geographic territory described in the relevant

 

 

09500SB0307ham002 - 167 - LRB095 04310 HLH 40653 a

1         subparagraph. The vote of County Board members
2         eligible to appoint directors under the provisions of
3         subparagraphs (ii) through (v) of this paragraph (7)
4         shall be weighted by the number of electors residing in
5         those portions of their Board districts within the
6         geographic territory described in the relevant
7         subparagraph (ii) through (v) of this paragraph (7).
8         (8) The chairman shall be appointed by the directors,
9     from the members of the board, with the concurrence of 8 of
10     such directors. To implement the changes in appointing
11     authority under this Section, upon the expiration of the
12     term of or vacancy in office of the Chairman appointed
13     under item (5) of subsection (a) of this Section, a
14     Chairman shall be appointed under this subparagraph.
15     (c) No director, while serving as such, shall be an
16 officer, a member of the board of directors or trustee or an
17 employee of any transportation agency, or be an employee of the
18 State of Illinois or any department or agency thereof, or of
19 any unit of local government or receive any compensation from
20 any elected or appointed office under the Constitution and laws
21 of Illinois.
22     (d) Each appointment made under subsections (a) and (b) of
23 this Section paragraphs (a) through (d) and under Section 3B.03
24 shall be certified by the appointing authority to the Commuter
25 Rail Board which shall maintain the certifications as part of
26 the official records of the Commuter Rail Board; provided that

 

 

09500SB0307ham002 - 168 - LRB095 04310 HLH 40653 a

1 the initial appointments shall be certified to the Secretary of
2 State, who shall transmit the certifications to the Commuter
3 Rail Board following its organization.
4     Appointments to the Commuter Rail Board shall be
5 apportioned so as to represent the City of Chicago, that part
6 of Cook County outside of the City of Chicago, and DuPage
7 County and that part of the metropolitan region other than Cook
8 and DuPage Counties based on morning boardings of the services
9 provided by the Commuter Rail Division as certified to the
10 Board of the Authority by the Commuter Rail Board, provided
11 however that the Mayor of the City of Chicago shall appoint no
12 fewer than 1 member of the Commuter Rail Board. Within two
13 years after each federal decennial census, the Board of the
14 Authority shall review the composition of the Commuter Rail
15 Board and, if change is needed to comply with this requirement,
16 shall provide for the necessary reapportionment by July 1 of
17 the second year after such census. Insofar as may be
18 practicable, the changes in board membership necessary to
19 achieve this purpose shall take effect as appropriate members
20 terms expire, no member's term being reduced by reason of such
21 revision of the composition of the Commuter Rail Board.
22 (Source: P.A. 83-886.)
 
23     (70 ILCS 3615/3B.03)  (from Ch. 111 2/3, par. 703B.03)
24     Sec. 3B.03. Terms, Vacancies. Each The initial term of the
25 director appointed pursuant to subdivision (a) of Section 3B.02

 

 

09500SB0307ham002 - 169 - LRB095 04310 HLH 40653 a

1 and the initial term of one of the directors appointed pursuant
2 to subdivision (b) of Section 3B.02 shall expire on June 30,
3 1985; the initial term of one of the directors appointed
4 pursuant to subdivision (b) of Section 3B.02 and the initial
5 term of one of the directors appointed pursuant to subdivision
6 (c) of Section 3B.02 shall expire on June 30, 1986; the initial
7 terms of two of the directors appointed pursuant to subdivision
8 (c) of Section 3B.02 shall expire on June 30, 1987; the initial
9 term of the director appointed pursuant to subdivision (d) of
10 Section 3B.02 shall expire on June 30, 1988. Thereafter, each
11 director shall be appointed for a term of 4 years, and until
12 his successor has been appointed and qualified. A vacancy shall
13 occur upon the resignation, death, conviction of a felony, or
14 removal from office of a director. Any director may be removed
15 from office upon the concurrence of not less than 8 6
16 directors, on a formal finding of incompetence, neglect of
17 duty, or malfeasance in office. Within 30 days after the office
18 of any director becomes vacant for any reason, the appropriate
19 appointing authorities of such director, as provided in Section
20 3B.02, shall make an appointment to fill the vacancy. A vacancy
21 shall be filled for the unexpired term.
22 (Source: P.A. 84-939.)
 
23     (70 ILCS 3615/3B.05)  (from Ch. 111 2/3, par. 703B.05)
24     Sec. 3B.05. Appointment of officers and employees. The
25 Commuter Rail Board shall appoint an Executive Director who

 

 

09500SB0307ham002 - 170 - LRB095 04310 HLH 40653 a

1 shall be the chief executive officer of the Division,
2 appointed, retained or dismissed with the concurrence of 8 6 of
3 the directors of the Commuter Rail Board. The Executive
4 Director shall appoint, retain and employ officers, attorneys,
5 agents, engineers, employees and shall organize the staff,
6 shall allocate their functions and duties, fix compensation and
7 conditions of employment, and consistent with the policies of
8 and direction from the Commuter Rail Board take all actions
9 necessary to achieve its purposes, fulfill its
10 responsibilities and carry out its powers, and shall have such
11 other powers and responsibilities as the Commuter Rail Board
12 shall determine. The Executive Director shall be an individual
13 of proven transportation and management skills and may not be a
14 member of the Commuter Rail Board. The Division may employ its
15 own professional management personnel to provide professional
16 and technical expertise concerning its purposes and powers and
17 to assist it in assessing the performance of transportation
18 agencies in the metropolitan region.
19     No unlawful discrimination, as defined and prohibited in
20 the Illinois Human Rights Act, shall be made in any term or
21 aspect of employment nor shall there be discrimination based
22 upon political reasons or factors. The Commuter Rail Board
23 shall establish regulations to insure that its discharges shall
24 not be arbitrary and that hiring and promotion are based on
25 merit.
26     The Division shall be subject to the "Illinois Human Rights

 

 

09500SB0307ham002 - 171 - LRB095 04310 HLH 40653 a

1 Act", as now or hereafter amended, and the remedies and
2 procedure established thereunder. The Commuter Rail Board
3 shall file an affirmative action program for employment by it
4 with the Department of Human Rights to ensure that applicants
5 are employed and that employees are treated during employment,
6 without regard to unlawful discrimination. Such affirmative
7 action program shall include provisions relating to hiring,
8 upgrading, demotion, transfer, recruitment, recruitment
9 advertising, selection for training and rates of pay or other
10 forms of compensation.
11 (Source: P.A. 83-885; 83-886.)
 
12     (70 ILCS 3615/3B.07)  (from Ch. 111 2/3, par. 703B.07)
13     Sec. 3B.07. Meetings. The Commuter Rail Board shall
14 prescribe the times and places for meetings and the manner in
15 which special meetings may be called. The Commuter Rail Board
16 shall comply in all respects with the "Open Meetings Act", as
17 now or hereafter amended. All records, documents and papers of
18 the Commuter Rail Division, other than those relating to
19 matters concerning which closed sessions of the Commuter Rail
20 Board may be held, shall be available for public examination,
21 subject to such reasonable regulations as the board may adopt.
22     A majority of the members shall constitute a quorum for the
23 conduct of business. The affirmative votes of at least 6 4
24 members shall be necessary for any action required by this Act
25 to be taken by ordinance.

 

 

09500SB0307ham002 - 172 - LRB095 04310 HLH 40653 a

1 (Source: P.A. 83-886.)
 
2     (70 ILCS 3615/3B.09)  (from Ch. 111 2/3, par. 703B.09)
3     Sec. 3B.09. General Powers. In addition to any powers
4 elsewhere provided to the Commuter Rail Board, it shall have
5 all of the powers specified in Section 2.20 of this Act except
6 for the powers specified in Section 2.20(a)(v). The Board shall
7 also have the power:
8     (a) to cooperate with the Regional Transportation
9 Authority in the exercise by the Regional Transportation
10 Authority of all the powers granted it by such Act;
11     (b) to receive funds from the Regional Transportation
12 Authority pursuant to Sections 2.02, 4.01, 4.02, 4.09 and 4.10
13 of the "Regional Transportation Authority Act", all as provided
14 in the "Regional Transportation Authority Act"; and
15     (c) to receive financial grants from the Regional
16 Transportation Authority or a Service Board, as defined in the
17 "Regional Transportation Authority Act", upon such terms and
18 conditions as shall be set forth in a grant contract between
19 either the Division and the Regional Transportation Authority
20 or the Division and another Service Board, which contract or
21 agreement may be for such number of years or duration as the
22 parties may agree, all as provided in the "Regional
23 Transportation Authority Act"; and .
24     (d) to borrow money for the purpose of acquiring,
25 constructing, reconstructing, extending, or improving any

 

 

09500SB0307ham002 - 173 - LRB095 04310 HLH 40653 a

1 Public Transportation Facilities (as defined in Section 1.03 of
2 the Regional Transportation Authority Act) operated by or to be
3 operated by or on behalf of the Commuter Rail Division. For the
4 purpose of evidencing the obligation of the Commuter Rail Board
5 to repay any money borrowed as provided in this subsection, the
6 Commuter Rail Board may issue revenue bonds from time to time
7 pursuant to ordinance adopted by the Commuter Rail Board,
8 subject to the approval of the Regional Transportation
9 Authority of each such issuance by the affirmative vote of 12
10 of its then Directors; provided that the Commuter Rail Board
11 may not issue bonds for the purpose of financing the
12 acquisition, construction, or improvement of a corporate
13 headquarters building. All such bonds shall be payable solely
14 from the revenues or income or any other funds that the
15 Commuter Rail Board may receive, provided that the Commuter
16 Rail Board may not pledge as security for such bonds the
17 moneys, if any, that the Commuter Rail Board receives from the
18 Regional Transportation Authority pursuant to Section
19 4.03.3(d) of the Regional Transportation Authority Act. The
20 bonds shall bear interest at a rate not to exceed the maximum
21 rate authorized by the Bond Authorization Act and shall mature
22 at such time or times not exceeding 25 years from their
23 respective dates. Bonds issued pursuant to this paragraph must
24 be issued with scheduled principal or mandatory redemption
25 payments in equal amounts in each fiscal year over the term of
26 the bonds, with the first principal or mandatory redemption

 

 

09500SB0307ham002 - 174 - LRB095 04310 HLH 40653 a

1 payment scheduled within the fiscal year in which bonds are
2 issued or within the next succeeding fiscal year. At least 25%,
3 based on total principal amount, of all bonds authorized
4 pursuant to this Section shall be sold pursuant to notice of
5 sale and public bid. No more than 75%, based on total principal
6 amount, of all bonds authorized pursuant to this Section shall
7 be sold by negotiated sale. The maximum principal amount of the
8 bonds that may be issued and outstanding at any time may not
9 exceed $1,000,000,000. The bonds shall have all the qualities
10 of negotiable instruments under the laws of this State. To
11 secure the payment of any or all of such bonds and for the
12 purpose of setting forth the covenants and undertakings of the
13 Commuter Rail Board in connection with the issuance thereof and
14 the issuance of any additional bonds payable from such revenue
15 or income as well as the use and application of the revenue or
16 income received by the Commuter Rail Board, the Commuter Rail
17 Board may execute and deliver a trust agreement or agreements;
18 provided that no lien upon any physical property of the
19 Commuter Rail Board shall be created thereby. A remedy for any
20 breach or default of the terms of any such trust agreement by
21 the Commuter Rail Board may be by mandamus proceedings in any
22 court of competent jurisdiction to compel performance and
23 compliance therewith, but the trust agreement may prescribe by
24 whom or on whose behalf such action may be instituted. Under no
25 circumstances shall any bonds issued by the Commuter Rail Board
26 or any other obligation of the Commuter Rail Board in

 

 

09500SB0307ham002 - 175 - LRB095 04310 HLH 40653 a

1 connection with the issuance of such bonds be or become an
2 indebtedness or obligation of the State of Illinois, the
3 Regional Transportation Authority, or any other political
4 subdivision of or municipality within the State, nor shall any
5 such bonds or obligations be or become an indebtedness of the
6 Commuter Rail Board within the purview of any constitutional
7 limitation or provision, and it shall be plainly stated on the
8 face of each bond that it does not constitute such an
9 indebtedness or obligation but is payable solely from the
10 revenues or income as aforesaid.
11 (Source: P.A. 83-885; 83-886.)
 
12     (70 ILCS 3615/3B.10)  (from Ch. 111 2/3, par. 703B.10)
13     Sec. 3B.10. Budget and Program. The Commuter Rail Board,
14 subject to the powers of the Authority in Section 4.11, shall
15 control the finances of the Division. It shall by ordinance
16 appropriate money to perform the Division's purposes and
17 provide for payment of debts and expenses of the Division. Each
18 year the Commuter Rail Board shall prepare and publish a
19 comprehensive annual budget and proposed five-year capital
20 program document, and a financial plan for the two years
21 thereafter describing the state of the Division and presenting
22 for the forthcoming fiscal year and the two following years the
23 Commuter Rail Board's plans for such operations and capital
24 expenditures as the Commuter Rail Board intends to undertake
25 and the means by which it intends to finance them. The proposed

 

 

09500SB0307ham002 - 176 - LRB095 04310 HLH 40653 a

1 budget, and financial plan, and five-year capital program shall
2 be based on the Authority's estimate of funds to be made
3 available to the Commuter Rail Board by or through the
4 Authority and shall conform in all respects to the requirements
5 established by the Authority. The proposed program and budget,
6 financial plan, and five-year capital program shall contain a
7 statement of the funds estimated to be on hand at the beginning
8 of the fiscal year, the funds estimated to be received from all
9 sources for such year and the funds estimated to be on hand at
10 the end of such year. After adoption of the Authority's first
11 Five-Year Program, as provided in Section 2.01 of this Act, the
12 proposed program and budget shall specifically identify any
13 respect in which the recommended program deviates from the
14 Authority's then existing Five-Year Program, giving the
15 reasons for such deviation. The fiscal year of the Division
16 shall be the same as the fiscal year of the Authority. Before
17 the proposed budget, and program and financial plan, and
18 five-year capital program are submitted to the Authority, the
19 Commuter Rail Board shall hold at least one public hearing
20 thereon in each of the counties in the metropolitan region in
21 which the Division provides service. The Commuter Rail Board
22 shall hold at least one meeting for consideration of the
23 proposed program and budget, financial plan, and five-year
24 capital plan with the county board of each of the several
25 counties in the metropolitan region in which the Division
26 provides service. After conducting such hearings and holding

 

 

09500SB0307ham002 - 177 - LRB095 04310 HLH 40653 a

1 such meetings and after making such changes in the proposed
2 program and budget, financial plan, and five-year capital plan
3 as the Commuter Rail Board deems appropriate, the board shall
4 adopt its annual budget ordinance at least by November 15 next
5 preceding the beginning of each fiscal year. The budget, and
6 program, and financial plan, and five-year capital program
7 shall then be submitted to the Authority as provided in Section
8 4.11. In the event that the Board of the Authority determines
9 that the budget and program, and financial plan do not meet the
10 standards of Section 4.11, the Commuter Rail Board shall make
11 such changes as are necessary to meet such requirements and
12 adopt an amended budget ordinance. The amended budget ordinance
13 shall be resubmitted to the Authority pursuant to Section 4.11.
14 The ordinance shall appropriate such sums of money as are
15 deemed necessary to defray all necessary expenses and
16 obligations of the Division, specifying purposes and the
17 objects or programs for which appropriations are made and the
18 amount appropriated for each object or program. Additional
19 appropriations, transfers between items and other changes in
20 such ordinance which do not alter the basis upon which the
21 balanced budget determination was made by the Board of the
22 Authority may be made from time to time by the Commuter Rail
23 Board.
24     The budget shall:
25     (i) show a balance between (A) anticipated revenues from
26 all sources including operating subsidies and (B) the costs of

 

 

09500SB0307ham002 - 178 - LRB095 04310 HLH 40653 a

1 providing the services specified and of funding any operating
2 deficits or encumbrances incurred in prior periods, including
3 provision for payment when due of principal and interest on
4 outstanding indebtedness;
5     (ii) show cash balances including the proceeds of any
6 anticipated cash flow borrowing sufficient to pay with
7 reasonable promptness all costs and expenses as incurred;
8     (iii) provide for a level of fares or charges for the
9 public transportation provided by or subject to the
10 jurisdiction of such Commuter Rail Board sufficient to allow
11 the Commuter Rail Board to meet its required system generated
12 revenue recovery ratio;
13     (iv) be based upon and employ assumptions and projections
14 which the Board of the Authority finds to be reasonable and
15 prudent;
16     (v) have been prepared in accordance with sound financial
17 practices as determined by the Board of the Authority; and
18     (vi) meet such other uniform financial, budgetary, or
19 fiscal requirements that the Board of the Authority may by rule
20 or regulation establish; and .
21     (vii) be consistent with the goals and objectives adopted
22 by the Regional Transportation Authority in the Strategic Plan.
23 (Source: P.A. 83-885; 83-886.)
 
24     (70 ILCS 3615/3B.11)  (from Ch. 111 2/3, par. 703B.11)
25     Sec. 3B.11. Citizens Advisory Board. The Commuter Rail

 

 

09500SB0307ham002 - 179 - LRB095 04310 HLH 40653 a

1 Board shall establish a citizens advisory board composed of ten
2 residents of those portions of the metropolitan region in which
3 the Commuter Rail Board provides service who have an interest
4 in public transportation. The members of the advisory board
5 shall be named for two year terms, shall select one of their
6 members to serve as chairman and shall serve without
7 compensation. The citizens advisory board shall meet with the
8 Commuter Rail Board at least quarterly and advise the Commuter
9 Rail Board of the impact of its policies and programs on the
10 communities it serves. Appointments to the citizens advisory
11 board should, to the greatest extent possible, reflect the
12 ethnic, cultural, and geographic diversity of all persons
13 residing within the Commuter Rail Division's jurisdiction.
14 (Source: P.A. 83-886.)
 
15     (70 ILCS 3615/3B.12)  (from Ch. 111 2/3, par. 703B.12)
16     Sec. 3B.12. Working Cash Borrowing. The Commuter Rail Board
17 with the affirmative vote of 7 5 of its Directors may demand
18 and direct the Board of the Authority to issue Working Cash
19 Notes at such time and in such amounts and having such
20 maturities as the Commuter Rail Board deems proper, provided
21 however any such borrowing shall have been specifically
22 identified in the budget of the Commuter Rail Board as approved
23 by the Board of the Authority. Provided further, that the
24 Commuter Rail Board may not demand and direct the Board of the
25 Authority to have issued and have outstanding at any time in

 

 

09500SB0307ham002 - 180 - LRB095 04310 HLH 40653 a

1 excess of $20,000,000 in Working Cash Notes.
2 (Source: P.A. 83-886.)
 
3     (70 ILCS 3615/3B.13)  (from Ch. 111 2/3, par. 703B.13)
4     Sec. 3B.13. Labor.
5     (a) The provisions of this Section apply to collective
6 bargaining agreements (including extensions and amendments of
7 existing agreements) entered into on or after January 1, 1984.
8 This Section does not apply to collective bargaining agreements
9 that are subject to the provisions of the Railway Labor Act, as
10 now or hereafter amended.
11     (b) The Commuter Rail Board shall deal with and enter into
12 written contracts with their employees, through accredited
13 representatives of such employees authorized to act for such
14 employees concerning wages, salaries, hours, working
15 conditions, and pension or retirement provisions about which a
16 collective bargaining agreement has been entered prior to the
17 effective date of this amendatory Act of 1983. Any such
18 agreement of the Commuter Rail Board shall provide that the
19 agreement may be reopened if the amended budget submitted
20 pursuant to Section 2.18a of this Act is not approved by the
21 Board of the Authority. The agreement may not include a
22 provision requiring the payment of wage increases based on
23 changes in the Consumer Price Index. The Commuter Rail Board
24 shall not have the authority to enter collective bargaining
25 agreements with respect to inherent management rights which

 

 

09500SB0307ham002 - 181 - LRB095 04310 HLH 40653 a

1 include such areas of discretion or policy as the functions of
2 the employer, standards of services, its overall budget, the
3 organizational structure and selection of new employees and
4 direction of personnel. Employers, however, shall be required
5 to bargain collectively with regard to policy matters directly
6 affecting wages, hours and terms and conditions of employment,
7 as well as the impact thereon, upon request by employee
8 representatives. To preserve the rights of the Commuter Rail
9 Board and exclusive representatives which have established
10 collective bargaining relationships or negotiated collective
11 bargaining agreements prior to the effective date of this
12 amendatory Act of 1983, the Commuter Rail Board shall be
13 required to bargain collectively with regard to any matter
14 concerning wages, hours or conditions of employment about which
15 they have bargained prior to the effective date of this
16 amendatory Act of 1983.
17     (c) The collective bargaining agreement may not include a
18 prohibition on the use of part-time operators on any service
19 operated by the Commuter Rail Board except where prohibited by
20 federal law.
21     (d) Within 30 days of the signing of any such collective
22 bargaining agreement, the Commuter Rail Board shall determine
23 the costs of each provision of the agreement, prepare an
24 amended budget incorporating the costs of the agreement, and
25 present the amended budget to the Board of the Authority for
26 its approval under Section 4.11. The Board may approve the

 

 

09500SB0307ham002 - 182 - LRB095 04310 HLH 40653 a

1 amended budget by an affirmative vote of 12 9 of its then
2 Directors. If the budget is not approved by the Board of the
3 Authority, the agreement may be reopened and its terms may be
4 renegotiated. Any amended budget which may be prepared
5 following renegotiation shall be presented to the Board of the
6 Authority for its approval in like manner.
7 (Source: P.A. 84-1308.)
 
8     (70 ILCS 3615/4.01)  (from Ch. 111 2/3, par. 704.01)
9     Sec. 4.01. Budget and Program.
10     (a) The Board shall control the finances of the Authority.
11 It shall by ordinance adopted by the affirmative vote of at
12 least 12 of its then Directors (i) appropriate money to perform
13 the Authority's purposes and provide for payment of debts and
14 expenses of the Authority, (ii) take action with respect to the
15 budget and two-year financial plan of each Service Board, as
16 provided in Section 4.11, and (iii) adopt an Annual Budget and
17 Two-Year Financial Plan for the Authority that includes the
18 annual budget and two-year financial plan of each Service Board
19 that has been approved by the Authority. Each year the
20 Authority shall prepare and publish a comprehensive annual
21 budget and program document describing the state of the
22 Authority and presenting for the forthcoming fiscal year the
23 Authority's plans for such operations and capital expenditures
24 as the Authority intends to undertake and the means by which it
25 intends to finance them. The Annual Budget and Two-Year

 

 

09500SB0307ham002 - 183 - LRB095 04310 HLH 40653 a

1 Financial Plan proposed program and budget shall contain a
2 statement of the funds estimated to be on hand for the
3 Authority and each Service Board at the beginning of the fiscal
4 year, the funds estimated to be received from all sources for
5 such year, the estimated expenses and obligations of the
6 Authority and each Service Board for all purposes, including
7 expenses for contributions to be made with respect to pension
8 and other employee benefits, and the funds estimated to be on
9 hand at the end of such year. After adoption of the Authority's
10 first Five-Year Program, as provided in Section 2.01 of this
11 Act, the proposed program and budget shall specifically
12 identify any respect in which the recommended program deviates
13 from the Authority's then existing Five-Year Program, giving
14 the reasons for such deviation. The fiscal year of the
15 Authority and each Service Board shall begin on January 1st and
16 end on the succeeding December 31st except that the fiscal year
17 that began October 1, 1982, shall end December 31, 1983. By
18 July 1st 1981 and July 1st of each year thereafter the Director
19 of the Illinois Governor's Office of Management and Budget
20 (formerly Bureau of the Budget) shall submit to the Authority
21 an estimate of revenues for the next fiscal year of the
22 Authority to be collected from the taxes imposed by the
23 Authority and the amounts to be available in the Public
24 Transportation Fund and the Regional Transportation Authority
25 Occupation and Use Tax Replacement Fund and the amounts
26 otherwise to be appropriated by the State to the Authority for

 

 

09500SB0307ham002 - 184 - LRB095 04310 HLH 40653 a

1 its purposes. The Authority shall file a copy of its Annual
2 Budget and Two-Year Financial Plan with For the fiscal year
3 ending on December 31, 1983, the Board shall report its results
4 from operations and financial condition to the General Assembly
5 and the Governor by January 31. For the fiscal year beginning
6 January 1, 1984, and thereafter, the budget and program shall
7 be presented to the General Assembly and the Governor after its
8 adoption not later than the preceding December 31st. Before the
9 proposed Annual Budget and Two-Year Financial Plan budget and
10 program is adopted, the Authority shall hold at least one
11 public hearing thereon in the metropolitan region, and shall
12 meet . The Board shall hold at least one meeting for
13 consideration of the proposed program and budget with the
14 county board or its designee of each of the several counties in
15 the metropolitan region. After conducting such hearings and
16 holding such meetings and after making such changes in the
17 proposed Annual Budget and Two-Year Financial Plan program and
18 budget as the Board deems appropriate, the Board shall adopt
19 its annual appropriation and Annual Budget and Two-Year
20 Financial Plan budget ordinance. The ordinance may be adopted
21 only upon the affirmative votes of 12 9 of its then Directors.
22 The ordinance shall appropriate such sums of money as are
23 deemed necessary to defray all necessary expenses and
24 obligations of the Authority, specifying purposes and the
25 objects or programs for which appropriations are made and the
26 amount appropriated for each object or program. Additional

 

 

09500SB0307ham002 - 185 - LRB095 04310 HLH 40653 a

1 appropriations, transfers between items and other changes in
2 such ordinance may be made from time to time by the Board upon
3 the affirmative votes of 12 9 of its then Directors.
4     (b) The Annual Budget and Two-Year Financial Plan budget
5 shall show a balance between anticipated revenues from all
6 sources and anticipated expenses including funding of
7 operating deficits or the discharge of encumbrances incurred in
8 prior periods and payment of principal and interest when due,
9 and shall show cash balances sufficient to pay with reasonable
10 promptness all obligations and expenses as incurred.
11     The Annual Budget and Two-Year Financial Plan annual budget
12 and financial plan must show:
13          (i) that the level of fares and charges for mass
14     transportation provided by, or under grant or purchase of
15     service contracts of, the Service Boards is sufficient to
16     cause the aggregate of all projected fare revenues from
17     such fares and charges received in each fiscal year to
18     equal at least 50% of the aggregate costs of providing such
19     public transportation in such fiscal year. "Fare revenues"
20     include the proceeds of all fares and charges for services
21     provided, contributions received in connection with public
22     transportation from units of local government other than
23     the Authority and from the State pursuant to subsection (i)
24     of Section 2705-305 of the Department of Transportation Law
25     (20 ILCS 2705/2705-305), and all other operating revenues
26     properly included consistent with generally accepted

 

 

09500SB0307ham002 - 186 - LRB095 04310 HLH 40653 a

1     accounting principles but do not include: the proceeds of
2     any borrowings, and, beginning with the 2007 fiscal year,
3     all revenues and receipts, including but not limited to
4     fares and grants received from the federal, State or any
5     unit of local government or other entity, derived from
6     providing ADA paratransit service pursuant to Section 2.30
7     of the Regional Transportation Authority Act. "Costs"
8     include all items properly included as operating costs
9     consistent with generally accepted accounting principles,
10     including administrative costs, but do not include:
11     depreciation; payment of principal and interest on bonds,
12     notes or other evidences of obligation for borrowed money
13     issued by the Authority; payments with respect to public
14     transportation facilities made pursuant to subsection (b)
15     of Section 2.20 of this Act; any payments with respect to
16     rate protection contracts, credit enhancements or
17     liquidity agreements made under Section 4.14; any other
18     cost to which it is reasonably expected that a cash
19     expenditure will not be made; costs up to $5,000,000
20     annually for passenger security including grants,
21     contracts, personnel, equipment and administrative
22     expenses, except in the case of the Chicago Transit
23     Authority, in which case the term does not include costs
24     spent annually by that entity for protection against crime
25     as required by Section 27a of the Metropolitan Transit
26     Authority Act; the payment by the Chicago Transit Authority

 

 

09500SB0307ham002 - 187 - LRB095 04310 HLH 40653 a

1     of Debt Service, as defined in Section 12c of the
2     Metropolitan Transit Authority Act, on bonds or notes
3     issued pursuant to that Section; the payment by the
4     Commuter Rail Division of debt service on bonds issued
5     pursuant to Section 3B.09; expenses incurred by the
6     Suburban Bus Division for the cost of new public
7     transportation services funded from grants pursuant to
8     Section 2.01e of this amendatory Act of the 95th General
9     Assembly for a period of 2 years from the date of
10     initiation of each such service; costs as exempted by the
11     Board for projects pursuant to Section 2.09 of this Act;
12     or, beginning with the 2007 fiscal year, expenses related
13     to providing ADA paratransit service pursuant to Section
14     2.30 of the Regional Transportation Authority Act; and in
15     fiscal years 2008 through 2012 inclusive, costs in the
16     amount of $200,000,000 in fiscal year 2008, reducing by
17     $40,000,000 in each fiscal year thereafter until this
18     exemption is eliminated; and
19         (ii) that the level of fares charged for ADA
20     paratransit services is sufficient to cause the aggregate
21     of all projected revenues from such fares charged and
22     received in each fiscal year to equal at least 10% of the
23     aggregate costs of providing such ADA paratransit services
24     in fiscal years 2007 and 2008 and at least 12% of the
25     aggregate costs of providing such ADA paratransit services
26     in fiscal years 2009 and thereafter; for purposes of this

 

 

09500SB0307ham002 - 188 - LRB095 04310 HLH 40653 a

1     Act, the percentages in this subsection (b)(ii) shall be
2     referred to as the "system generated ADA paratransit
3     services revenue recovery ratio".
4     (c) The actual administrative expenses of the Authority for
5 the fiscal year commencing January 1, 1985 may not exceed
6 $5,000,000. The actual administrative expenses of the
7 Authority for the fiscal year commencing January 1, 1986, and
8 for each fiscal year thereafter shall not exceed the maximum
9 administrative expenses for the previous fiscal year plus 5%.
10 "Administrative expenses" are defined for purposes of this
11 Section as all expenses except: (1) capital expenses and
12 purchases of the Authority on behalf of the Service Boards; (2)
13 payments to Service Boards; and (3) payment of principal and
14 interest on bonds, notes or other evidence of obligation for
15 borrowed money issued by the Authority; (4) costs for passenger
16 security including grants, contracts, personnel, equipment and
17 administrative expenses; (5) payments with respect to public
18 transportation facilities made pursuant to subsection (b) of
19 Section 2.20 of this Act; and (6) any payments with respect to
20 rate protection contracts, credit enhancements or liquidity
21 agreements made pursuant to Section 4.14.
22     (d) (Blank). After withholding 15% of the proceeds of any
23 tax imposed by the Authority and 15% of money received by the
24 Authority from the Regional Transportation Authority
25 Occupation and Use Tax Replacement Fund, the Board shall
26 allocate the proceeds and money remaining to the Service Boards

 

 

09500SB0307ham002 - 189 - LRB095 04310 HLH 40653 a

1 as follows: (1) an amount equal to 85% of the proceeds of those
2 taxes collected within the City of Chicago and 85% of the money
3 received by the Authority on account of transfers to the
4 Regional Transportation Authority Occupation and Use Tax
5 Replacement Fund from the County and Mass Transit District Fund
6 attributable to retail sales within the City of Chicago shall
7 be allocated to the Chicago Transit Authority; (2) an amount
8 equal to 85% of the proceeds of those taxes collected within
9 Cook County outside the City of Chicago and 85% of the money
10 received by the Authority on account of transfers to the
11 Regional Transportation Authority Occupation and Use Tax
12 Replacement Fund from the County and Mass Transit District Fund
13 attributable to retail sales within Cook County outside of the
14 city of Chicago shall be allocated 30% to the Chicago Transit
15 Authority, 55% to the Commuter Rail Board and 15% to the
16 Suburban Bus Board; and (3) an amount equal to 85% of the
17 proceeds of the taxes collected within the Counties of DuPage,
18 Kane, Lake, McHenry and Will shall be allocated 70% to the
19 Commuter Rail Board and 30% to the Suburban Bus Board.
20     (e) (Blank). Moneys received by the Authority on account of
21 transfers to the Regional Transportation Authority Occupation
22 and Use Tax Replacement Fund from the State and Local Sales Tax
23 Reform Fund shall be allocated among the Authority and the
24 Service Boards as follows: 15% of such moneys shall be retained
25 by the Authority and the remaining 85% shall be transferred to
26 the Service Boards as soon as may be practicable after the

 

 

09500SB0307ham002 - 190 - LRB095 04310 HLH 40653 a

1 Authority receives payment. Moneys which are distributable to
2 the Service Boards pursuant to the preceding sentence shall be
3 allocated among the Service Boards on the basis of each Service
4 Board's distribution ratio. The term "distribution ratio"
5 means, for purposes of this subsection (e) of this Section
6 4.01, the ratio of the total amount distributed to a Service
7 Board pursuant to subsection (d) of Section 4.01 for the
8 immediately preceding calendar year to the total amount
9 distributed to all of the Service Boards pursuant to subsection
10 (d) of Section 4.01 for the immediately preceding calendar
11 year.
12     (f) To carry out its duties and responsibilities under this
13 Act, further and accomplish the preparation of the annual
14 budget and program as well as the Five-Year Program provided
15 for in Section 2.01 of this Act and to make such interim
16 management decisions as may be necessary, the Board shall
17 employ staff which shall: (1) propose for adoption by the Board
18 of the Authority rules for the Service Boards that establish
19 (i) forms and schedules to be used and information required to
20 be provided with respect to a five-year capital program, annual
21 budgets, and two-year financial plans and regular reporting of
22 actual results against adopted budgets and financial plans,
23 (ii) financial practices to be followed in the budgeting and
24 expenditure of public funds, (iii) assumptions and projections
25 that must be followed in preparing and submitting its annual
26 budget and two-year financial plan or a five-year capital

 

 

09500SB0307ham002 - 191 - LRB095 04310 HLH 40653 a

1 program; (2) evaluate for the Board public transportation
2 programs operated or proposed by the Service Boards and
3 transportation agencies in terms of the goals and objectives
4 set out in the Strategic Plan , costs and relative priorities;
5 (3) (2) keep the Board and the public informed of the extent to
6 which the Service Boards and transportation agencies are
7 meeting the goals and objectives adopted by the Authority in
8 the Strategic Plan public transportation programs and
9 accomplishments of such transportation agencies; and (4)
10 assess the efficiency or adequacy of public transportation
11 services provided by a Service Board and make recommendations
12 for change in that service (3) coordinate the development and
13 implementation of public transportation programs to the end
14 that the moneys monies available to the Authority may be
15 expended in the most economical manner possible with the least
16 possible duplication.
17     (g) All Under such regulations as the Board may prescribe,
18 all Service Boards, transportation agencies, comprehensive
19 planning agencies, including the Chicago Metropolitan Agency
20 for Planning, or transportation planning agencies in the
21 metropolitan region shall furnish to the Authority Board such
22 information pertaining to public transportation or relevant
23 for plans therefor as it may from time to time require. The
24 Executive Director, or his or her designee, upon payment to any
25 such agency or Service Board of the reasonable additional cost
26 of its so providing such information except as may otherwise be

 

 

09500SB0307ham002 - 192 - LRB095 04310 HLH 40653 a

1 provided by agreement with the Authority, and the Board or any
2 duly authorized employee of the Board shall, for the purpose of
3 securing any such information necessary or appropriate to carry
4 out any of the powers and responsibilities of the Authority
5 under this Act, have access to, and the right to examine, all
6 books, documents, papers or records of a Service Board or any
7 transportation such agency receiving funds from the Authority
8 or Service Board, and such Service Board or transportation
9 agency shall comply with any request by the Executive Director,
10 or his or her designee, within 30 days or an extended time
11 provided by the Executive Director pertaining to public
12 transportation or relevant for plans therefor.
13     (h) No Service Board shall undertake any capital
14 improvement which is not identified in the Five-Year Capital
15 Program.
16 (Source: P.A. 94-370, eff. 7-29-05.)
 
17     (70 ILCS 3615/4.02)  (from Ch. 111 2/3, par. 704.02)
18     Sec. 4.02. Federal, State and Other Funds.
19     (a) The Authority shall have the power to apply for,
20 receive and expend grants, loans or other funds from the State
21 of Illinois or any department or agency thereof, from any unit
22 of local government, from the federal government or any
23 department or agency thereof, for use in connection with any of
24 the powers or purposes of the Authority as set forth in this
25 Act. The Authority shall have power to make such studies as may

 

 

09500SB0307ham002 - 193 - LRB095 04310 HLH 40653 a

1 be necessary and to enter into contracts or agreements with the
2 State of Illinois or any department or agency thereof, with any
3 unit of local government, or with the federal government or any
4 department or agency thereof, concerning such grants, loans or
5 other funds, or any conditions relating thereto, including
6 obligations to repay such funds. The Authority may make such
7 covenants concerning such grants, loans and funds as it deems
8 proper and necessary in carrying out its responsibilities,
9 purposes and powers as provided in this Act.
10     (b) The Authority shall be the primary public body in the
11 metropolitan region with authority to apply for and receive any
12 grants, loans or other funds relating to public transportation
13 programs from the State of Illinois or any department or agency
14 thereof, or from the federal government or any department or
15 agency thereof. Any unit of local government, Service Board or
16 transportation agency may apply for and receive any such
17 federal or state capital grants, loans or other funds,
18 provided, however that a Service Board may not apply for or
19 receive any grant or loan which is not identified in the
20 Five-Year Capital Program. Any Service Board, unit of local
21 government or transportation agency shall notify the Authority
22 prior to making any such application and shall file a copy
23 thereof with the Authority. Nothing in this Section shall be
24 construed to impose any limitation on the ability of the State
25 of Illinois or any department or agency thereof, any unit of
26 local government or Service Board or transportation agency to

 

 

09500SB0307ham002 - 194 - LRB095 04310 HLH 40653 a

1 make any grants or to enter into any agreement or contract with
2 the National Rail Passenger Corporation. Nor shall anything in
3 this Section impose any limitation on the ability of any school
4 district to apply for or receive any grant, loan or other funds
5 for transportation of school children.
6     (c) The Authority shall provide to the Service Board any
7 monies received relating to public transportation services
8 under the jurisdiction of the Service Boards as provided in
9 Section 4.03.3 of this Act. follows:
10         (1) As soon as may be practicable after the Authority
11     receives payment, under Section 4.03(m) or Section
12     4.03.1(d), of the proceeds of those taxes levied by the
13     Authority, the Authority shall transfer to each Service
14     Board the amount to which it is entitled under Section
15     4.01(d);
16         (2) The Authority by ordinance adopted by 9 of its then
17     Directors shall establish a formula apportioning any
18     federal funds for operating assistance purposes the
19     Authority receives to each Service Board. In establishing
20     the formula, the Board shall consider, among other factors:
21     ridership levels, the efficiency with which the service is
22     provided, the degree of transit dependence of the area
23     served and the cost of service. That portion of any federal
24     funds for operating assistance received by the Authority
25     shall be paid to each Service Board as soon as may be
26     practicable upon their receipt provided the Authority has

 

 

09500SB0307ham002 - 195 - LRB095 04310 HLH 40653 a

1     adopted a balanced budget as required by Section 4.01 and
2     further provided that the Service Boards are in compliance
3     with the requirements in Section 4.11.
4         (3) The Authority by ordinance adopted by 9 of its then
5     Directors shall apportion to the Service Boards funds
6     provided by the State of Illinois under Section 4.09 and
7     shall make payment of said funds to each Service Board as
8     soon as may be practicable upon their receipt provided the
9     Authority has adopted a balanced budget as required by
10     Section 4.01 and further provided the Service Board is in
11     compliance with the requirements in Section 4.11.
12         (4) Beginning January 1, 2009, before making any
13     payments, transfers, or expenditures under this subsection
14     to a Service Board, the Authority must first comply with
15     Section 4.02a or 4.02b of this Act, whichever may be
16     applicable.
17 (Source: P.A. 94-839, eff. 6-6-06; revised 8-3-06.)
 
18     (70 ILCS 3615/4.02a)
19     Sec. 4.02a. Chicago Transit Authority contributions to
20 pension funds.
21     (a) The Authority shall continually review the Chicago
22 Transit Authority's payment of the required contributions to
23 its retirement system under Section 22-101 of the Illinois
24 Pension Code.
25     (b) Beginning January 1, 2009, if at any time the Authority

 

 

09500SB0307ham002 - 196 - LRB095 04310 HLH 40653 a

1 determines that the Chicago Transit Authority's payment of any
2 portion of the required contributions to its retirement system
3 under Section 22-101 of the Illinois Pension Code is more than
4 one month overdue, it shall as soon as possible pay the amount
5 of those overdue contributions to the Board of Trustees trustee
6 of the Retirement Plan retirement system on behalf of the
7 Chicago Transit Authority out of moneys otherwise payable to
8 the Chicago Transit Authority under subsection (c) of Section
9 4.03.3 4.02 of this Act. The Authority shall thereafter have no
10 liability to the Chicago Transit Authority for amounts paid to
11 the Board of Trustees trustee of the Retirement Plan retirement
12 system under this Section.
13     (c) Whenever the Authority acts or determines that it is
14 required to act under subsection (b), it shall so notify the
15 Chicago Transit Authority, the Mayor of Chicago, the Governor,
16 the Auditor General of the State of Illinois, and the General
17 Assembly.
18 (Source: P.A. 94-839, eff. 6-6-06.)
 
19     (70 ILCS 3615/4.02b)
20     Sec. 4.02b. Other contributions to pension funds.
21     (a) The Authority shall continually review the payment of
22 the required employer contributions to affected pension plans
23 under Section 22-103 of the Illinois Pension Code.
24     (b) Beginning January 1, 2009, if at any time the Authority
25 determines that the Commuter Rail Board's or Suburban Bus

 

 

09500SB0307ham002 - 197 - LRB095 04310 HLH 40653 a

1 Board's payment of any portion of the required contributions to
2 an affected pension plan under Section 22-103 of the Illinois
3 Pension Code is more than one month overdue, it shall as soon
4 as possible pay the amount of those overdue contributions to
5 the trustee of the affected pension plan on behalf of that
6 Service Board out of moneys otherwise payable to that Service
7 Board under Section 4.03.3 subsection (c) of Section 4.02 of
8 this Act. The Authority shall thereafter have no liability to
9 the Service Board for amounts paid to the trustee of the
10 affected pension plan under this Section.
11     (c) Whenever the Authority acts or determines that it is
12 required to act under subsection (b), it shall so notify the
13 affected Service Board, the Mayor of Chicago, the Governor, the
14 Auditor General of the State of Illinois, and the General
15 Assembly.
16     (d) Beginning January 1, 2009, if the Authority fails to
17 pay to an affected pension fund within 30 days after it is due
18 any employer contribution that it is required to make as a
19 contributing employer under Section 22-103 of the Illinois
20 Pension Code, it shall promptly so notify the Commission on
21 Government Forecasting and Accountability, the Mayor of
22 Chicago, the Governor, and the General Assembly, and it shall
23 promptly pay the overdue amount out of the first money
24 available to the Authority for its administrative expenses, as
25 that term is defined in Section 4.01(c).
26 (Source: P.A. 94-839, eff. 6-6-06.)
 

 

 

09500SB0307ham002 - 198 - LRB095 04310 HLH 40653 a

1     (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
2     Sec. 4.03. Taxes.
3     (a) In order to carry out any of the powers or purposes of
4 the Authority, the Board may by ordinance adopted with the
5 concurrence of 12 9 of the then Directors, impose throughout
6 the metropolitan region any or all of the taxes provided in
7 this Section. Except as otherwise provided in this Act, taxes
8 imposed under this Section and civil penalties imposed incident
9 thereto shall be collected and enforced by the State Department
10 of Revenue. The Department shall have the power to administer
11 and enforce the taxes and to determine all rights for refunds
12 for erroneous payments of the taxes. Nothing in this amendatory
13 Act of the 95th General Assembly is intended to invalidate any
14 taxes currently imposed by the Authority. The increased vote
15 requirements to impose a tax shall only apply to actions taken
16 after the effective date of this amendatory Act of the 95th
17 General Assembly.
18     (b) The Board may impose a public transportation tax upon
19 all persons engaged in the metropolitan region in the business
20 of selling at retail motor fuel for operation of motor vehicles
21 upon public highways. The tax shall be at a rate not to exceed
22 5% of the gross receipts from the sales of motor fuel in the
23 course of the business. As used in this Act, the term "motor
24 fuel" shall have the same meaning as in the Motor Fuel Tax Law.
25 The Board may provide for details of the tax. The provisions of

 

 

09500SB0307ham002 - 199 - LRB095 04310 HLH 40653 a

1 any tax shall conform, as closely as may be practicable, to the
2 provisions of the Municipal Retailers Occupation Tax Act,
3 including without limitation, conformity to penalties with
4 respect to the tax imposed and as to the powers of the State
5 Department of Revenue to promulgate and enforce rules and
6 regulations relating to the administration and enforcement of
7 the provisions of the tax imposed, except that reference in the
8 Act to any municipality shall refer to the Authority and the
9 tax shall be imposed only with regard to receipts from sales of
10 motor fuel in the metropolitan region, at rates as limited by
11 this Section.
12     (c) In connection with the tax imposed under paragraph (b)
13 of this Section the Board may impose a tax upon the privilege
14 of using in the metropolitan region motor fuel for the
15 operation of a motor vehicle upon public highways, the tax to
16 be at a rate not in excess of the rate of tax imposed under
17 paragraph (b) of this Section. The Board may provide for
18 details of the tax.
19     (d) The Board may impose a motor vehicle parking tax upon
20 the privilege of parking motor vehicles at off-street parking
21 facilities in the metropolitan region at which a fee is
22 charged, and may provide for reasonable classifications in and
23 exemptions to the tax, for administration and enforcement
24 thereof and for civil penalties and refunds thereunder and may
25 provide criminal penalties thereunder, the maximum penalties
26 not to exceed the maximum criminal penalties provided in the

 

 

09500SB0307ham002 - 200 - LRB095 04310 HLH 40653 a

1 Retailers' Occupation Tax Act. The Authority may collect and
2 enforce the tax itself or by contract with any unit of local
3 government. The State Department of Revenue shall have no
4 responsibility for the collection and enforcement unless the
5 Department agrees with the Authority to undertake the
6 collection and enforcement. As used in this paragraph, the term
7 "parking facility" means a parking area or structure having
8 parking spaces for more than 2 vehicles at which motor vehicles
9 are permitted to park in return for an hourly, daily, or other
10 periodic fee, whether publicly or privately owned, but does not
11 include parking spaces on a public street, the use of which is
12 regulated by parking meters.
13     (e) The Board may impose a Regional Transportation
14 Authority Retailers' Occupation Tax upon all persons engaged in
15 the business of selling tangible personal property at retail in
16 the metropolitan region. In Cook County the tax rate shall be
17 1% of the gross receipts from sales of food for human
18 consumption that is to be consumed off the premises where it is
19 sold (other than alcoholic beverages, soft drinks and food that
20 has been prepared for immediate consumption) and prescription
21 and nonprescription medicines, drugs, medical appliances and
22 insulin, urine testing materials, syringes and needles used by
23 diabetics, and 3/4% of the gross receipts from other taxable
24 sales made in the course of that business. In DuPage, Kane,
25 Lake, McHenry, and Will Counties, the tax rate shall be 1/4% of
26 the gross receipts from all taxable sales made in the course of

 

 

09500SB0307ham002 - 201 - LRB095 04310 HLH 40653 a

1 that business. The tax imposed under this Section and all civil
2 penalties that may be assessed as an incident thereof shall be
3 collected and enforced by the State Department of Revenue. The
4 Department shall have full power to administer and enforce this
5 Section; to collect all taxes and penalties so collected in the
6 manner hereinafter provided; and to determine all rights to
7 credit memoranda arising on account of the erroneous payment of
8 tax or penalty hereunder. In the administration of, and
9 compliance with this Section, the Department and persons who
10 are subject to this Section shall have the same rights,
11 remedies, privileges, immunities, powers and duties, and be
12 subject to the same conditions, restrictions, limitations,
13 penalties, exclusions, exemptions and definitions of terms,
14 and employ the same modes of procedure, as are prescribed in
15 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
16 (in respect to all provisions therein other than the State rate
17 of tax), 2c, 3 (except as to the disposition of taxes and
18 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
19 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
20 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
21 Penalty and Interest Act, as fully as if those provisions were
22 set forth herein.
23     Persons subject to any tax imposed under the authority
24 granted in this Section may reimburse themselves for their
25 seller's tax liability hereunder by separately stating the tax
26 as an additional charge, which charge may be stated in

 

 

09500SB0307ham002 - 202 - LRB095 04310 HLH 40653 a

1 combination in a single amount with State taxes that sellers
2 are required to collect under the Use Tax Act, under any
3 bracket schedules the Department may prescribe.
4     Whenever the Department determines that a refund should be
5 made under this Section to a claimant instead of issuing a
6 credit memorandum, the Department shall notify the State
7 Comptroller, who shall cause the warrant to be drawn for the
8 amount specified, and to the person named, in the notification
9 from the Department. The refund shall be paid by the State
10 Treasurer out of the Regional Transportation Authority tax fund
11 established under paragraph (n) of this Section.
12     If a tax is imposed under this subsection (e), a tax shall
13 also be imposed under subsections (f) and (g) of this Section.
14     For the purpose of determining whether a tax authorized
15 under this Section is applicable, a retail sale by a producer
16 of coal or other mineral mined in Illinois, is a sale at retail
17 at the place where the coal or other mineral mined in Illinois
18 is extracted from the earth. This paragraph does not apply to
19 coal or other mineral when it is delivered or shipped by the
20 seller to the purchaser at a point outside Illinois so that the
21 sale is exempt under the Federal Constitution as a sale in
22 interstate or foreign commerce.
23     No tax shall be imposed or collected under this subsection
24 on the sale of a motor vehicle in this State to a resident of
25 another state if that motor vehicle will not be titled in this
26 State.

 

 

09500SB0307ham002 - 203 - LRB095 04310 HLH 40653 a

1     Nothing in this Section shall be construed to authorize the
2 Regional Transportation Authority to impose a tax upon the
3 privilege of engaging in any business that under the
4 Constitution of the United States may not be made the subject
5 of taxation by this State.
6     (f) If a tax has been imposed under paragraph (e), a
7 Regional Transportation Authority Service Occupation Tax shall
8 also be imposed upon all persons engaged, in the metropolitan
9 region in the business of making sales of service, who as an
10 incident to making the sales of service, transfer tangible
11 personal property within the metropolitan region, either in the
12 form of tangible personal property or in the form of real
13 estate as an incident to a sale of service. In Cook County, the
14 tax rate shall be: (1) 1% of the serviceman's cost price of
15 food prepared for immediate consumption and transferred
16 incident to a sale of service subject to the service occupation
17 tax by an entity licensed under the Hospital Licensing Act or
18 the Nursing Home Care Act that is located in the metropolitan
19 region; (2) 1% of the selling price of food for human
20 consumption that is to be consumed off the premises where it is
21 sold (other than alcoholic beverages, soft drinks and food that
22 has been prepared for immediate consumption) and prescription
23 and nonprescription medicines, drugs, medical appliances and
24 insulin, urine testing materials, syringes and needles used by
25 diabetics; and (3) 3/4% of the selling price from other taxable
26 sales of tangible personal property transferred. In DuPage,

 

 

09500SB0307ham002 - 204 - LRB095 04310 HLH 40653 a

1 Kane, Lake, McHenry and Will Counties the rate shall be 1/4% of
2 the selling price of all tangible personal property
3 transferred.
4     The tax imposed under this paragraph and all civil
5 penalties that may be assessed as an incident thereof shall be
6 collected and enforced by the State Department of Revenue. The
7 Department shall have full power to administer and enforce this
8 paragraph; to collect all taxes and penalties due hereunder; to
9 dispose of taxes and penalties collected in the manner
10 hereinafter provided; and to determine all rights to credit
11 memoranda arising on account of the erroneous payment of tax or
12 penalty hereunder. In the administration of and compliance with
13 this paragraph, the Department and persons who are subject to
14 this paragraph shall have the same rights, remedies,
15 privileges, immunities, powers and duties, and be subject to
16 the same conditions, restrictions, limitations, penalties,
17 exclusions, exemptions and definitions of terms, and employ the
18 same modes of procedure, as are prescribed in Sections 1a-1, 2,
19 2a, 3 through 3-50 (in respect to all provisions therein other
20 than the State rate of tax), 4 (except that the reference to
21 the State shall be to the Authority), 5, 7, 8 (except that the
22 jurisdiction to which the tax shall be a debt to the extent
23 indicated in that Section 8 shall be the Authority), 9 (except
24 as to the disposition of taxes and penalties collected, and
25 except that the returned merchandise credit for this tax may
26 not be taken against any State tax), 10, 11, 12 (except the

 

 

09500SB0307ham002 - 205 - LRB095 04310 HLH 40653 a

1 reference therein to Section 2b of the Retailers' Occupation
2 Tax Act), 13 (except that any reference to the State shall mean
3 the Authority), the first paragraph of Section 15, 16, 17, 18,
4 19 and 20 of the Service Occupation Tax Act and Section 3-7 of
5 the Uniform Penalty and Interest Act, as fully as if those
6 provisions were set forth herein.
7     Persons subject to any tax imposed under the authority
8 granted in this paragraph may reimburse themselves for their
9 serviceman's tax liability hereunder by separately stating the
10 tax as an additional charge, that charge may be stated in
11 combination in a single amount with State tax that servicemen
12 are authorized to collect under the Service Use Tax Act, under
13 any bracket schedules the Department may prescribe.
14     Whenever the Department determines that a refund should be
15 made under this paragraph to a claimant instead of issuing a
16 credit memorandum, the Department shall notify the State
17 Comptroller, who shall cause the warrant to be drawn for the
18 amount specified, and to the person named in the notification
19 from the Department. The refund shall be paid by the State
20 Treasurer out of the Regional Transportation Authority tax fund
21 established under paragraph (n) of this Section.
22     Nothing in this paragraph shall be construed to authorize
23 the Authority to impose a tax upon the privilege of engaging in
24 any business that under the Constitution of the United States
25 may not be made the subject of taxation by the State.
26     (g) If a tax has been imposed under paragraph (e), a tax

 

 

09500SB0307ham002 - 206 - LRB095 04310 HLH 40653 a

1 shall also be imposed upon the privilege of using in the
2 metropolitan region, any item of tangible personal property
3 that is purchased outside the metropolitan region at retail
4 from a retailer, and that is titled or registered with an
5 agency of this State's government. In Cook County the tax rate
6 shall be 3/4% of the selling price of the tangible personal
7 property, as "selling price" is defined in the Use Tax Act. In
8 DuPage, Kane, Lake, McHenry and Will counties the tax rate
9 shall be 1/4% of the selling price of the tangible personal
10 property, as "selling price" is defined in the Use Tax Act. The
11 tax shall be collected from persons whose Illinois address for
12 titling or registration purposes is given as being in the
13 metropolitan region. The tax shall be collected by the
14 Department of Revenue for the Regional Transportation
15 Authority. The tax must be paid to the State, or an exemption
16 determination must be obtained from the Department of Revenue,
17 before the title or certificate of registration for the
18 property may be issued. The tax or proof of exemption may be
19 transmitted to the Department by way of the State agency with
20 which, or the State officer with whom, the tangible personal
21 property must be titled or registered if the Department and the
22 State agency or State officer determine that this procedure
23 will expedite the processing of applications for title or
24 registration.
25     The Department shall have full power to administer and
26 enforce this paragraph; to collect all taxes, penalties and

 

 

09500SB0307ham002 - 207 - LRB095 04310 HLH 40653 a

1 interest due hereunder; to dispose of taxes, penalties and
2 interest collected in the manner hereinafter provided; and to
3 determine all rights to credit memoranda or refunds arising on
4 account of the erroneous payment of tax, penalty or interest
5 hereunder. In the administration of and compliance with this
6 paragraph, the Department and persons who are subject to this
7 paragraph shall have the same rights, remedies, privileges,
8 immunities, powers and duties, and be subject to the same
9 conditions, restrictions, limitations, penalties, exclusions,
10 exemptions and definitions of terms and employ the same modes
11 of procedure, as are prescribed in Sections 2 (except the
12 definition of "retailer maintaining a place of business in this
13 State"), 3 through 3-80 (except provisions pertaining to the
14 State rate of tax, and except provisions concerning collection
15 or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
16 19 (except the portions pertaining to claims by retailers and
17 except the last paragraph concerning refunds), 20, 21 and 22 of
18 the Use Tax Act, and are not inconsistent with this paragraph,
19 as fully as if those provisions were set forth herein.
20     Whenever the Department determines that a refund should be
21 made under this paragraph to a claimant instead of issuing a
22 credit memorandum, the Department shall notify the State
23 Comptroller, who shall cause the order to be drawn for the
24 amount specified, and to the person named in the notification
25 from the Department. The refund shall be paid by the State
26 Treasurer out of the Regional Transportation Authority tax fund

 

 

09500SB0307ham002 - 208 - LRB095 04310 HLH 40653 a

1 established under paragraph (n) of this Section.
2     (h) The Authority may impose a replacement vehicle tax of
3 $50 on any passenger car as defined in Section 1-157 of the
4 Illinois Vehicle Code purchased within the metropolitan region
5 by or on behalf of an insurance company to replace a passenger
6 car of an insured person in settlement of a total loss claim.
7 The tax imposed may not become effective before the first day
8 of the month following the passage of the ordinance imposing
9 the tax and receipt of a certified copy of the ordinance by the
10 Department of Revenue. The Department of Revenue shall collect
11 the tax for the Authority in accordance with Sections 3-2002
12 and 3-2003 of the Illinois Vehicle Code.
13     The Department shall immediately pay over to the State
14 Treasurer, ex officio, as trustee, all taxes collected
15 hereunder. On or before the 25th day of each calendar month,
16 the Department shall prepare and certify to the Comptroller the
17 disbursement of stated sums of money to the Authority. The
18 amount to be paid to the Authority shall be the amount
19 collected hereunder during the second preceding calendar month
20 by the Department, less any amount determined by the Department
21 to be necessary for the payment of refunds. Within 10 days
22 after receipt by the Comptroller of the disbursement
23 certification to the Authority provided for in this Section to
24 be given to the Comptroller by the Department, the Comptroller
25 shall cause the orders to be drawn for that amount in
26 accordance with the directions contained in the certification.

 

 

09500SB0307ham002 - 209 - LRB095 04310 HLH 40653 a

1     (i) The Board may not impose any other taxes except as it
2 may from time to time be authorized by law to impose.
3     (j) A certificate of registration issued by the State
4 Department of Revenue to a retailer under the Retailers'
5 Occupation Tax Act or under the Service Occupation Tax Act
6 shall permit the registrant to engage in a business that is
7 taxed under the tax imposed under paragraphs (b), (e), (f) or
8 (g) of this Section and no additional registration shall be
9 required under the tax. A certificate issued under the Use Tax
10 Act or the Service Use Tax Act shall be applicable with regard
11 to any tax imposed under paragraph (c) of this Section.
12     (k) The provisions of any tax imposed under paragraph (c)
13 of this Section shall conform as closely as may be practicable
14 to the provisions of the Use Tax Act, including without
15 limitation conformity as to penalties with respect to the tax
16 imposed and as to the powers of the State Department of Revenue
17 to promulgate and enforce rules and regulations relating to the
18 administration and enforcement of the provisions of the tax
19 imposed. The taxes shall be imposed only on use within the
20 metropolitan region and at rates as provided in the paragraph.
21     (l) The Board in imposing any tax as provided in paragraphs
22 (b) and (c) of this Section, shall, after seeking the advice of
23 the State Department of Revenue, provide means for retailers,
24 users or purchasers of motor fuel for purposes other than those
25 with regard to which the taxes may be imposed as provided in
26 those paragraphs to receive refunds of taxes improperly paid,

 

 

09500SB0307ham002 - 210 - LRB095 04310 HLH 40653 a

1 which provisions may be at variance with the refund provisions
2 as applicable under the Municipal Retailers Occupation