98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2387

 

Introduced 2/15/2013, by Sen. Karen McConnaughay

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 3605/28a  from Ch. 111 2/3, par. 328a
70 ILCS 3605/30  from Ch. 111 2/3, par. 330
70 ILCS 3605/34  from Ch. 111 2/3, par. 334
70 ILCS 3615/2.04  from Ch. 111 2/3, par. 702.04
70 ILCS 3615/3A.10  from Ch. 111 2/3, par. 703A.10
70 ILCS 3615/3B.10  from Ch. 111 2/3, par. 703B.10
70 ILCS 3615/4.11  from Ch. 111 2/3, par. 704.11

    Amends the Regional Transportation Authority Act and the Metropolitan Transit Authority Act. Requires that the budget and 2-year financial plan submitted by each Service Board (Chicago Transit Authority, Suburban Bus Board, and Commuter Rail Board) to the Regional Transportation Authority must be approved by the Chairman of the Board of Directors of the Regional Transportation Authority. Provides that the Chairman of the Board of Directors of the Regional Transportation Authority may reduce or veto any item of appropriations in the budget or plan submitted by a Service Board and shall return the item vetoed or reduced with his or her objections to the Board of the Regional Transportation Authority. Sets forth the procedure for the Board of the Regional Transportation Authority to override the Chairman's veto. Makes conforming changes in provisions concerning the approval of a Service Board's revised budget. Effective January 1, 2014.


LRB098 07949 MLW 38038 b

 

 

A BILL FOR

 

SB2387LRB098 07949 MLW 38038 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Metropolitan Transit Authority Act is
5amended by changing Sections 28a, 30, and 34 as follows:
 
6    (70 ILCS 3605/28a)  (from Ch. 111 2/3, par. 328a)
7    Sec. 28a. Contracts with labor organizations; collective
8bargaining agreements.
9    (a) The Board may deal with and enter into written
10contracts with the employees of the Authority through
11accredited representatives of such employees or
12representatives of any labor organization authorized to act for
13such employees, concerning wages, salaries, hours, working
14conditions and pension or retirement provisions; provided,
15nothing herein shall be construed to permit hours of labor in
16excess of those provided by law or to permit working conditions
17prohibited by law. In case of dispute over wages, salaries,
18hours, working conditions, or pension or retirement provisions
19the Board may arbitrate any question or questions and may agree
20with such accredited representatives or labor organization
21that the decision of a majority of any arbitration board shall
22be final, provided each party shall agree in advance to pay
23half of the expense of such arbitration.

 

 

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1    No contract or agreement shall be made with any labor
2organization, association, group or individual for the
3employment of members of such organization, association, group
4or individual for the construction, improvement, maintenance,
5operation or administration of any property, plant or
6facilities under the jurisdiction of the Authority, where such
7organization, association, group or individual denies on the
8ground of race, creed, color, sex, religion, physical or mental
9handicap unrelated to ability, or national origin membership
10and equal opportunities for employment to any citizen of
11Illinois.
12    (b)(1) The provisions of this paragraph (b) apply to
13collective bargaining agreements (including extensions and
14amendments of existing agreements) entered into on or after
15January 1, 1984.
16    (2) The Board shall deal with and enter into written
17contracts with their employees, through accredited
18representatives of such employees authorized to act for such
19employees concerning wages, salaries, hours, working
20conditions, and pension or retirement provisions about which a
21collective bargaining agreement has been entered prior to the
22effective date of this amendatory Act of 1983. Any such
23agreement of the Authority shall provide that the agreement may
24be reopened if the amended budget submitted pursuant to Section
252.18a of the Regional Transportation Authority Act is not
26approved by the Board of the Regional Transportation Authority.

 

 

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

 

 

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1incorporating the costs of the agreement, and present the
2amended budget to the Chairman of the Board of the Regional
3Transportation Authority for its approval under Section 4.11 of
4the Regional Transportation Authority Act. The Chairman of the
5Board of the Regional Transportation Authority may approve the
6amended budget by an affirmative vote of 12 of its then
7Directors. If the budget is not approved by the Chairman of the
8Board of the Regional Transportation Authority, the agreement
9may be reopened and its terms may be renegotiated. Any amended
10budget which may be prepared following renegotiation shall be
11presented to the Chairman of the Board of the Regional
12Transportation Authority for his or her its approval as set
13forth in Section 4.11 of the Regional Transportation Authority
14Act in like manner.
15    
16(Source: P.A. 95-708, eff. 1-18-08.)
 
17    (70 ILCS 3605/30)  (from Ch. 111 2/3, par. 330)
18    Sec. 30. Rules and regulations; fares. The Board shall make
19all rules and regulations governing the operation of the
20transportation system, shall determine all routings and change
21the same whenever it is deemed advisable by the Board, subject
22to the provisions of any ordinance granting rights to the
23Authority. The Except as provided in Sections 2.04 and
244.11(b)(5) of the Regional Transportation Authority Act, the
25Board shall fix rates, fares and charges for transportation,

 

 

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1provided that they shall be at all times sufficient in the
2aggregate to provide revenues (a) for the payment of the
3interest on and principal of all bonds, certificates and other
4obligations payable from said revenues and to meet all other
5charges upon such revenues as provided by any trust agreement
6executed by the Authority in connection with the issuance of
7bonds or certificates under this Act, (b) for the payment of
8all operating costs including all charges which may be incurred
9pursuant to Sections 29 and 39 of this Act and all other costs
10and charges incidental to the operation of the transportation
11system, (c) for the payment of all costs and charges incurred
12pursuant to Sections 37 and 38 of this Act and any other costs
13and charges for acquisition, installation, construction or for
14replacement or reconstruction of equipment, structures or
15rights of way not financed through issuance of bonds or
16certificates under Section 12 of this Act, and (d) for any
17compensation required to be paid to any municipality for the
18use of streets, subways and other public ways. The Board may
19provide free transportation within any municipality in and by
20which they are employed for firemen and public health nurses,
21when in uniform, and policemen when in uniform or, when not in
22uniform, upon presentation of identification as policemen, and
23shall provide free transportation to sworn law enforcement
24personnel of the Cook County Sheriff's Department when in
25uniform or, when not in uniform, upon presentation of
26identification as sworn law enforcement personnel of the Cook

 

 

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1County Sheriff's Department, and may provide free
2transportation for employees of the Authority when in uniform
3or upon presentation of identification as such employees, and
4may enter into agreements with the United States Post Office
5Department for the transportation of mail, and the payment of
6compensation to the Authority in lieu of fares for the
7transportation of letter carriers, when in uniform at all
8times.
9    The Board may also provide free transportation, or
10transportation at reduced fares, to all or designated classes
11of pupils in attendance at public schools of school districts
12within or partly within the territorial limits of the
13Authority, or in attendance at private schools offering grades
14of instruction comparable to those offered in public schools,
15under such conditions as shall be prescribed by the Board, and,
16if otherwise authorized by law, the Board may contract with
17public school boards and representatives of private schools,
18for reimbursement of pupil transportation costs from public
19funds.
20(Source: P.A. 97-85, eff. 7-7-11.)
 
21    (70 ILCS 3605/34)  (from Ch. 111 2/3, par. 334)
22    Sec. 34. Budget and Program. The Authority, subject to the
23powers of the Regional Transportation Authority in Section 4.11
24of the Regional Transportation Authority Act, shall control the
25finances of the Authority. It shall by ordinance appropriate

 

 

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1money to perform the Authority's purposes and provide for
2payment of debts and expenses of the Authority. Each year the
3Authority shall prepare and publish a comprehensive annual
4budget and five-year capital program document, and a financial
5plan for the 2 years thereafter describing the state of the
6Authority and presenting for the forthcoming fiscal year and
7the two following years the Authority's plans for such
8operations and capital expenditures as it intends to undertake
9and the means by which it intends to finance them. The proposed
10budget, financial plan, and five-year capital program shall be
11based on the Regional Transportation Authority's estimate of
12funds to be made available to the Authority by or through the
13Regional Transportation Authority and shall conform in all
14respects to the requirements established by the Regional
15Transportation Authority. The proposed budget, financial plan,
16and five-year capital program shall contain a statement of the
17funds estimated to be on hand at the beginning of the fiscal
18year, the funds estimated to be received from all sources for
19such year and the funds estimated to be on hand at the end of
20such year. The proposed budget, financial plan, and five-year
21capital program shall be available at no cost for public
22inspection at the Authority's main office and at the Regional
23Transportation Authority's main office at least 3 weeks prior
24to any public hearing. Before the proposed budget, financial
25plan, and five-year capital program are submitted to the
26Regional Transportation Authority, the Authority shall hold at

 

 

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1least one public hearing thereon in each of the counties in
2which the Authority provides service. All Board members of the
3Authority shall attend a majority of the public hearings unless
4reasonable cause is given for their absence. After the public
5hearings, the Board of the Authority shall hold at least one
6meeting for consideration of the proposed program and budget
7with the Cook County Board. After conducting such hearings and
8holding such meetings and after making such changes in the
9proposed budget, financial plan, and five-year capital program
10as the Board deems appropriate, it shall adopt an annual budget
11ordinance at least by November 15th preceding the beginning of
12each fiscal year. The budget, financial plan, and five-year
13capital program shall then be submitted to the Regional
14Transportation Authority as provided in Section 4.11 of the
15Regional Transportation Authority Act.
16    If In the event that the Chairman of the Board of the
17Regional Transportation Authority determines that the budget,
18financial plan, and five-year capital program do not meet the
19standards of said Section 4.11, then the Board must submit to
20the Authority an amended budget ordinance as set forth in
21Section 4.11 of the Regional Transportation Authority Act. ,
22the Board of the Authority shall make such changes as are
23necessary to meet such requirements and adopt an amended budget
24ordinance. The amended budget ordinance shall be resubmitted to
25the Regional Transportation Authority pursuant to said Section
264.11. The ordinance shall appropriate such sums of money as are

 

 

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1deemed necessary to defray all necessary expenses and
2obligations of the Authority, specifying purposes and the
3objects or programs for which appropriations are made and the
4amount appropriated for each object or program. Additional
5appropriations, transfers between items and other changes in
6such ordinance which do not alter the basis upon which the
7balanced budget determination was made by the Regional
8Transportation Authority may be made from time to time by the
9Board.
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 Board sufficient to allow the Board to meet its
24    required system generated revenue recovery ratio as
25    determined in accordance with subsection (a) of Section
26    4.11 of the Regional Transportation Authority Act;

 

 

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1        (iv) be based upon and employ assumptions and
2    projections which are reasonable and prudent;
3        (v) have been prepared in accordance with sound
4    financial practices as determined by the Board of the
5    Regional Transportation Authority;
6        (vi) meet such other financial, budgetary, or fiscal
7    requirements that the Board of the Regional Transportation
8    Authority may by rule or regulation establish; and
9        (vii) be consistent with the goals and objectives
10    adopted by the Regional Transportation Authority in the
11    Strategic Plan; and .
12        (viii) include specific line-items for revenues and
13    expenses.
14    The Board shall establish a fiscal operating year. At least
15thirty days prior to the beginning of the first full fiscal
16year after the creation of the Authority, and annually
17thereafter, the Board shall cause to be prepared a tentative
18budget which shall include all operation and maintenance
19expense for the ensuing fiscal year. The tentative budget shall
20be considered by the Board and, subject to any revision and
21amendments as may be determined, shall be adopted prior to the
22first day of the ensuing fiscal year as the budget for that
23year. No expenditures for operations and maintenance in excess
24of the budget shall be made during any fiscal year except by
25the affirmative vote of at least five members of the Board. It
26shall not be necessary to include in the annual budget any

 

 

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1statement of necessary expenditures for pensions or retirement
2annuities, or for interest or principal payments on bonds or
3certificates, or for capital outlays, but it shall be the duty
4of the Board to make provision for payment of same from
5appropriate funds. The Board may not alter its fiscal year
6without the prior approval of the Board of the Regional
7Transportation Authority.
8(Source: P.A. 95-708, eff. 1-18-08.)
 
9    Section 10. The Regional Transportation Authority Act is
10amended by changing Sections 2.04, 3A.10, 3B.10, and 4.11 as
11follows:
 
12    (70 ILCS 3615/2.04)  (from Ch. 111 2/3, par. 702.04)
13    Sec. 2.04. Fares and Nature of Service.
14    (a) Whenever a Service Board provides any public
15transportation by operating public transportation facilities,
16the Service Board shall provide for the level and nature of
17fares or charges to be made for such services, and the nature
18and standards of public transportation to be so provided that
19meet the goals and objectives adopted by the Authority in the
20Strategic Plan. Provided, however that if , prior to the
21effective date of this amendatory Act of the 98th General
22Assembly, the Board adopts a budget and financial plan for a
23Service Board in accordance with the provisions in Section
244.11(b)(5), the Board may consistent with the terms of any

 

 

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1purchase of service contract provide for the level and nature
2of fares to be made for such services under the jurisdiction of
3that Service Board, and the nature and standards of public
4transportation to be so provided.
5    (b) Whenever a Service Board provides any public
6transportation pursuant to grants made after June 30, 1975, to
7transportation agencies for operating expenses (other than
8with regard to experimental programs) or pursuant to any
9purchase of service agreement, the purchase of service
10agreement or grant contract shall provide for the level and
11nature of fares or charges to be made for such services, and
12the nature and standards of public transportation to be so
13provided. A Service Board shall require all transportation
14agencies with which it contracts, or from which it purchases
15transportation services or to which it makes grants to provide
16half fare transportation for their student riders if any of
17such agencies provide for half fare transportation to their
18student riders.
19    (c) In so providing for the fares or charges and the nature
20and standards of public transportation, any purchase of service
21agreements or grant contracts shall provide, among other
22matters, for the terms or cost of transfers or interconnections
23between different modes of transportation and different public
24transportation agencies, schedules or routes of such service,
25changes which may be made in such service, the nature and
26condition of the facilities used in providing service, the

 

 

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1manner of collection and disposition of fares or charges, the
2records and reports to be kept and made concerning such
3service, for interchangeable tickets or other coordinated or
4uniform methods of collection of charges, and shall further
5require that the transportation agency comply with any
6determination made by the Board of the Authority under and
7subject to the provisions of Section 2.12b of this Act. In
8regard to any such service, the Authority and the Service
9Boards shall give attention to and may undertake programs to
10promote use of public transportation and to provide coordinated
11ticket sales and passenger information. In the case of a grant
12to a transportation agency which remains subject to Illinois
13Commerce Commission supervision and regulation, the Service
14Boards shall exercise the powers set forth in this Section in a
15manner consistent with such supervision and regulation by the
16Illinois Commerce Commission.
17    (d) By January 1, 2013, the Authority, in consultation with
18the Service Boards and the general public, must develop a
19policy regarding transfer fares on all fixed-route public
20transportation services provided by the Service Boards. The
21policy shall also set forth the fare sharing agreements between
22the Service Boards that apply to interagency fare passes and
23tickets. The policy established by the Authority shall be
24submitted to each of the Service Boards for its approval or
25comments and objection. After receiving the policy, the Service
26Boards have 90 days to approve or take other action regarding

 

 

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1the policy. If all of the Service Boards agree to the policy,
2then a regional agreement shall be created and signed by each
3of the Service Boards. The terms of the agreement may be
4changed upon petition by any of the Service Boards and by
5agreement of the other Service Boards.
6    (e) By January 1, 2015, the Authority must develop and
7implement a regional fare payment system. The regional fare
8payment system must use and conform with established
9information security industry standards and requirements of
10the financial industry. The system must allow consumers to use
11contactless credit cards, debit cards, and prepaid cards to pay
12for all fixed-route public transportation services. Beginning
13in 2012 and each year thereafter until 2015, the Authority must
14submit an annual report to the Governor and General Assembly
15describing the progress of the Authority and each of the
16Service Boards in implementing the regional fare payment
17system. The Authority must adopt rules to implement the
18requirements set forth in this Section.
19(Source: P.A. 97-85, eff. 7-7-11.)
 
20    (70 ILCS 3615/3A.10)  (from Ch. 111 2/3, par. 703A.10)
21    Sec. 3A.10. Budget and Program. The Suburban Bus Board,
22subject to the powers of the Authority in Section 4.11, shall
23control the finances of the Division. It shall by ordinance
24appropriate money to perform the Division's purposes and
25provide for payment of debts and expenses of the Division. Each

 

 

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1year the Suburban Bus Board shall prepare and publish a
2comprehensive annual budget and proposed five-year capital
3program document, and a financial plan for the 2 years
4thereafter describing the state of the Division and presenting
5for the forthcoming fiscal year and the 2 following years the
6Suburban Bus Board's plans for such operations and capital
7expenditures as it intends to undertake and the means by which
8it intends to finance them. The proposed budget, financial
9plan, and five-year capital program shall be based on the
10Authority's estimate of funds to be made available to the
11Suburban Bus Board by or through the Authority and shall
12conform in all respects to the requirements established by the
13Authority. The proposed budget, financial plan, and five-year
14capital program shall contain a statement of the funds
15estimated to be on hand at the beginning of the fiscal year,
16the funds estimated to be received from all sources for such
17year and the funds estimated to be on hand at the end of such
18year. The fiscal year of the Division shall be the same as the
19fiscal year of the Authority. Before the proposed budget,
20financial plan, and five-year capital program are submitted to
21the Authority, the Suburban Bus Board shall hold at least one
22public hearing thereon in each of the counties in the
23metropolitan region in which the Division provides service. The
24Suburban Bus Board shall hold at least one meeting for
25consideration of the proposed budget, financial plan, and
26five-year capital program with the county board of each of the

 

 

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

 

 

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1    from all sources including operating subsidies and (B) the
2    costs of providing the services specified and of funding
3    any operating deficits or encumbrances incurred in prior
4    periods, including provision for payment when due of
5    principal and interest on outstanding indebtedness;
6        (ii) show cash balances including the proceeds of any
7    anticipated cash flow borrowing sufficient to pay with
8    reasonable promptness all costs and expenses as incurred;
9        (iii) provide for a level of fares or charges and
10    operating or administrative costs for the public
11    transportation provided by or subject to the jurisdiction
12    of the Suburban Bus Board sufficient to allow the Suburban
13    Bus Board to meet its required system generated revenues
14    recovery ratio and, beginning with the 2007 fiscal year,
15    its system generated ADA paratransit services revenue
16    recovery ratio;
17        (iv) be based upon and employ assumptions and
18    projections which are reasonable and prudent;
19        (v) have been prepared in accordance with sound
20    financial practices as determined by the Board of the
21    Authority;
22        (vi) meet such other uniform financial, budgetary, or
23    fiscal requirements that the Board of the Authority may by
24    rule or regulation establish; and
25        (vii) be consistent with the goals and objectives
26    adopted by the Regional Transportation Authority in the

 

 

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1    Strategic Plan; and .
2        (viii) include specific line-items for revenues and
3    expenses.
4(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
 
5    (70 ILCS 3615/3B.10)  (from Ch. 111 2/3, par. 703B.10)
6    Sec. 3B.10. Budget and Program. The Commuter Rail Board,
7subject to the powers of the Authority in Section 4.11, shall
8control the finances of the Division. It shall by ordinance
9appropriate money to perform the Division's purposes and
10provide for payment of debts and expenses of the Division. Each
11year the Commuter Rail Board shall prepare and publish a
12comprehensive annual budget and proposed five-year capital
13program document, and a financial plan for the two years
14thereafter describing the state of the Division and presenting
15for the forthcoming fiscal year and the two following years the
16Commuter Rail Board's plans for such operations and capital
17expenditures as the Commuter Rail Board intends to undertake
18and the means by which it intends to finance them. The proposed
19budget, financial plan, and five-year capital program shall be
20based on the Authority's estimate of funds to be made available
21to the Commuter Rail Board by or through the Authority and
22shall conform in all respects to the requirements established
23by the Authority. The proposed budget, financial plan, and
24five-year capital program shall contain a statement of the
25funds estimated to be on hand at the beginning of the fiscal

 

 

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

 

 

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

 

 

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1    projections which the Board of the Authority finds to be
2    reasonable and prudent;
3        (v) have been prepared in accordance with sound
4    financial practices as determined by the Board of the
5    Authority;
6        (vi) meet such other uniform financial, budgetary, or
7    fiscal requirements that the Board of the Authority may by
8    rule or regulation establish; and
9        (vii) be consistent with the goals and objectives
10    adopted by the Regional Transportation Authority in the
11    Strategic Plan; and .
12        (viii) include specific line-items for revenues and
13    expenses.
14(Source: P.A. 95-708, eff. 1-18-08.)
 
15    (70 ILCS 3615/4.11)  (from Ch. 111 2/3, par. 704.11)
16    Sec. 4.11. Budget Review Powers.
17    (a) Based upon estimates which shall be given to the
18Authority by the Director of the Governor's Office of
19Management and Budget (formerly Bureau of the Budget) of the
20receipts to be received by the Authority from the taxes imposed
21by the Authority and the authorized estimates of amounts to be
22available from State and other sources to the Service Boards,
23and the times at which such receipts and amounts will be
24available, the Board shall, not later than the next preceding
25September 15th prior to the beginning of the Authority's next

 

 

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1fiscal year, advise each Service Board of the amounts estimated
2by the Board to be available for such Service Board during such
3fiscal year and the two following fiscal years and the times at
4which such amounts will be available. The Board shall, at the
5same time, also advise each Service Board of its required
6system generated revenues recovery ratio for the next fiscal
7year which shall be the percentage of the aggregate costs of
8providing public transportation by or under jurisdiction of
9that Service Board which must be recovered from system
10generated revenues. The Board shall, at the same time, consider
11the written determination of the Executive Director, made
12pursuant to Section 2.01d, of the costs of ADA paratransit
13services that are required to be provided under the federal
14Americans with Disabilities Act of 1990 and its implementing
15regulations, and shall amend the current year budgets of the
16Authority and the Service Boards to provide for additional
17funding for the provision of ADA paratransit services, if
18needed. The Board shall, at the same time, beginning with the
192007 fiscal year, also advise each Service Board that provides
20ADA paratransit services of its required system generated ADA
21paratransit services revenue recovery ratio for the next fiscal
22year which shall be the percentage of the aggregate costs of
23providing ADA paratransit services by or under jurisdiction of
24that Service Board which must be recovered from fares charged
25for such services, except that such required system generated
26ADA paratransit services revenue recovery ratio shall not

 

 

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

 

 

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1shall submit to the Authority its proposed budget for such
2fiscal year and its proposed financial plan for the two
3following fiscal years. Such budget and financial plan shall
4(i) be prepared in the format, follow the financial and
5budgetary practices, and be based on any assumptions and
6projections required by the Authority and (ii) not project or
7assume a receipt of revenues from the Authority in amounts
8greater than those set forth in the estimates provided by the
9Authority pursuant to subsection (a) of this Section.
10    (2) The Board shall review the proposed budget and two-year
11financial plan submitted by each Service Board. The Board shall
12make a recommendation to the Chairman of the Board that the
13Chairman approve or disapprove the budget and plan. The budget
14and plan may not be considered approved until the budget and
15plan have the approval of the Chairman of the Board. The Board
16shall recommend the approval of approve the budget and two-year
17financial plan of a Service Board if:
18        (i) such budget and plan show a balance between (A)
19    anticipated revenues from all sources including operating
20    subsidies and (B) the costs of providing the services
21    specified and of funding any operating deficits or
22    encumbrances incurred in prior periods, including
23    provision for payment when due of principal and interest on
24    outstanding indebtedness;
25        (ii) such budget and plan show cash balances including
26    the proceeds of any anticipated cash flow borrowing

 

 

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1    sufficient to pay with reasonable promptness all costs and
2    expenses as incurred;
3        (iii) such budget and plan provide for a level of fares
4    or charges and operating or administrative costs for the
5    public transportation provided by or subject to the
6    jurisdiction of such Service Board sufficient to allow the
7    Service Board to meet its required system generated revenue
8    recovery ratio and, beginning with the 2007 fiscal year,
9    system generated ADA paratransit services revenue recovery
10    ratio;
11        (iv) such budget and plan are based upon and employ
12    assumptions and projections which are reasonable and
13    prudent;
14        (v) such budget and plan have been prepared in
15    accordance with sound financial practices as determined by
16    the Board;
17        (vi) such budget and plan meet such other financial,
18    budgetary, or fiscal requirements that the Board may by
19    rule or regulation establish; and
20        (vii) such budget and plan are consistent with the
21    goals and objectives adopted by the Authority in the
22    Strategic Plan; and .
23        (vii) such budget and plan include specific line-items
24    for revenues and expenses.
25    (3) (Blank).
26    (4) If the Chairman of the Board approves the budget and

 

 

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1plan, he or she shall sign it. The Chairman of the Board may
2reduce or veto any item of appropriations in the budget or plan
3and shall return the item vetoed or reduced with his or her
4objections to the Board. A copy of the veto shall also be
5delivered to the Service Board that submitted the budget or
6plan for approval. Portions of the budget or plan not reduced
7or vetoed shall be considered approved. If, within 30 calendar
8days after the veto has been delivered to the Board and the
9appropriate Service Board, the Board restores an item that has
10been reduced or overrides the veto of an item by a record vote
11of 14 members, the item shall be considered approved. If a
12reduced item is not restored, then it shall be considered
13approved in the reduced amount.
14    If Unless the Chairman of the Board by an affirmative vote
15of 12 of the then Directors determines that the budget and
16financial plan of a Service Board does not meet meets the
17criteria specified in clauses (i) through (vii) of subparagraph
18(2) of this paragraph (b), the Board shall withhold from that
19Service Board 25% of the cash proceeds of taxes imposed by the
20Authority under Section 4.03 and Section 4.03.1 and received
21after February 1 and 25% of the amounts transferred to the
22Authority from the Public Transportation Fund under Section
234.09(a) (but not including Section 4.09(a)(3)(iv)) after
24February 1 that the Board has estimated to be available to that
25Service Board under Section 4.11(a). Such funding shall be
26released to the Service Board only upon approval of a budget

 

 

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

 

 

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1end of each fiscal quarter as shall be specified by the Board,
2report to the Authority its financial condition and results of
3operations and the financial condition and results of
4operations of the public transportation services subject to its
5jurisdiction, as at the end of and for such quarter. If in the
6judgment of the Board such condition and results are not
7substantially in accordance with such Service Board's budget
8for such period, the Board shall so advise such Service Board
9and such Service Board shall within the period specified by the
10Board submit a revised budget incorporating such results.
11    (2.5) The Board shall make a recommendation to the Chairman
12of the Board that the Chairman approve or disapprove the
13revised budget. The revised budget may not be considered
14approved until it has the approval of the Chairman of the
15Board. If the Chairman of the Board approves the revised
16budget, he or she shall sign it. The Chairman of the Board may
17reduce or veto any item of appropriations in the revised budget
18and shall return the item vetoed or reduced with his or her
19objections to the Board. A copy of the veto shall also be
20delivered to the Service Board that submitted the revised
21budget for approval. Portions of the revised budget not reduced
22or vetoed shall be considered approved. If, within 30 calendar
23days after the veto has been delivered to the Board and the
24appropriate Service Board, the Board restores an item that has
25been reduced or overrides the veto of an item by a record vote
26of 14 members, the item shall be considered approved. If a

 

 

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1reduced item is not restored, then it shall be considered
2approved in the reduced amount.
3    (3) If the Chairman of the Board determines shall determine
4that a revised budget submitted by a Service Board pursuant to
5subparagraph (1) or (2) of this paragraph (c) does not meet the
6criteria specified in clauses (i) through (vii) of subparagraph
7(2) of paragraph (b) of this Section, the Board shall withhold
8from that Service Board 25% of the cash proceeds of taxes
9imposed by the Authority under Section 4.03 or 4.03.1 and
10received by the Authority after February 1 and 25% of the
11amounts transferred to the Authority from the Public
12Transportation Fund under Section 4.09(a) (but not including
13Section 4.09(a)(3)(iv)) after February 1 that the Board has
14estimated to be available to that Service Board under Section
154.11(a). If the Service Board submits a revised financial plan
16and budget which plan and budget shows that the criteria will
17be met within a four quarter period, the Board shall release
18any such withheld funds to the Service Board. The Board by the
19affirmative vote of at least 12 of its then Directors may
20require a Service Board to submit a revised financial plan and
21budget which shows that the criteria will be met in a time
22period less than four quarters.
23    (d) All budgets and financial plans, financial statements,
24audits and other information presented to the Authority
25pursuant to this Section or which may be required by the Board
26to permit it to monitor compliance with the provisions of this

 

 

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1Section shall be prepared and presented in such manner and
2frequency and in such detail as shall have been prescribed by
3the Board, shall be prepared on both an accrual and cash flow
4basis as specified by the Board, shall present such information
5as the Authority shall prescribe that fairly presents the
6condition of any pension plan or trust for health care benefits
7with respect to retirees established by the Service Board and
8describes the plans of the Service Board to meet the
9requirements of Sections 4.02a and 4.02b, and shall identify
10and describe the assumptions and projections employed in the
11preparation thereof to the extent required by the Board. If the
12Executive Director certifies that a Service Board has not
13presented its budget and two-year financial plan in conformity
14with the rules adopted by the Authority under the provisions of
15Section 4.01(f) and this subsection (d), and such certification
16is accepted by the affirmative vote of at least 12 of the then
17Directors of the Authority, the Authority shall not distribute
18to that Service Board any funds for operating purposes in
19excess of the amounts distributed for such purposes to the
20Service Board in the previous fiscal year. A Except when the
21Board adopts a budget and a financial plan for a Service Board
22under paragraph (b)(5), a Service Board shall provide for such
23levels of transportation services and fares or charges therefor
24as it deems appropriate and necessary in the preparation of a
25budget and financial plan meeting the criteria set forth in
26clauses (i) through (vii) of subparagraph (2) of paragraph (b)

 

 

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1of this Section. The Authority shall have access to and the
2right to examine and copy all books, documents, papers,
3records, or other source data of a Service Board relevant to
4any information submitted pursuant to this Section.
5    (e) Whenever this Section requires the Board to make
6determinations with respect to estimates, budgets or financial
7plans, or rules or regulations with respect thereto such
8determinations shall be made upon the affirmative vote of at
9least 12 of the then Directors and shall be incorporated in a
10written report of the Board and such report shall be submitted
11within 10 days after such determinations are made to the
12Governor, the Mayor of Chicago (if such determinations relate
13to the Chicago Transit Authority), and the Auditor General of
14Illinois.
15(Source: P.A. 97-399, eff. 8-16-11.)
 
16    Section 99. Effective date. This Act takes effect January
171, 2014.