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90_SB0642 605 ILCS 10/8.1 new 605 ILCS 10/16.2 new 605 ILCS 10/17 from Ch. 121, par. 100-17 605 ILCS 10/21.1 new Amends the Toll Highway Act. Requires the Toll Highway Authority to appoint an Inspector General to investigate waste, fraud, or financial mismanagement in Authority operations involving Authority employees or contractors. Provides for the Inspector General's powers and duties. Makes failure to cooperate in specified ways with the investigation a Class A misdemeanor. Requires competitive bidding of Authority bond issuance service contracts over $25,000. Requires the Authority to use all surplus revenues to fund construction or repairs before issuing bonds to finance those activities. Requires the Authority to structure financing of new tollways and refinancing of debt to facilitate conversion of tollways into free State highways. Requires the Authority to report a schedule of that conversion to the Governor and General Assembly every 2 years. Effective immediately. LRB9001857NTsb LRB9001857NTsb 1 AN ACT to amend the Toll Highway Act by changing Section 2 17 and adding Sections 8.1, 16.2, and 21.1. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Toll Highway Act is amended by changing 6 Section 17 and adding Sections 8.1, 16.2, and 21.1 as 7 follows: 8 (605 ILCS 10/8.1 new) 9 Sec. 8.1. Inspector General. 10 (a) The Authority shall appoint an Inspector General who 11 shall have the authority to conduct investigations into 12 allegations or incidents of waste, fraud, and financial 13 mismanagement in Authority operations involving an Authority 14 employee or contractor. The Inspector General shall make 15 recommendations to the Authority regarding his or her 16 investigations. The Inspector General shall be appointed for 17 a term of 4 years. The Inspector General shall be 18 independent of the operations of the Authority and perform 19 other duties as requested by the Authority. 20 (b) The Inspector General shall have access to all 21 information and personnel necessary to perform the duties of 22 the office. If the Inspector General determines that a 23 possible criminal act has been committed or that special 24 expertise is required in the investigation, he or she shall 25 immediately notify the State Police. All investigations 26 conducted by the Inspector General shall be conducted in a 27 manner that ensures the preservation of evidence for use in 28 criminal prosecutions. 29 (c) At all times, the Inspector General shall be granted 30 access to any building or facility that is owned, operated, 31 or leased by the Authority. -2- LRB9001857NTsb 1 (d) The Inspector General shall have the power to 2 subpoena witnesses and compel the production of books and 3 papers pertinent to an investigation authorized by this 4 Section. Any person who: 5 (1) fails to appear in response to a subpoena; 6 (2) fails to answer any question; 7 (3) fails to produce any books or papers pertinent 8 to an investigation under this Section; or 9 (4) knowingly gives false testimony during an 10 investigation under this Section; 11 is guilty of a Class A misdemeanor. 12 (e) The Inspector General shall provide to the Authority 13 and the General Assembly a summary of reports and 14 investigations made under this Section for the previous 15 fiscal year no later than January 1 of each year. The 16 summaries shall detail the final disposition of the Inspector 17 General's recommendations. The summaries shall not contain 18 any confidential or identifying information concerning the 19 subjects of the reports and investigations. The summaries 20 shall also include detailed, recommended administrative 21 actions and matters for consideration by the General 22 Assembly. 23 (605 ILCS 10/16.2 new) 24 Sec. 16.2. Bond issuance service contracts; competitive 25 bidding. 26 (a) All contracts for services requiring professional, 27 technical, or artistic skill related to the issuance of any 28 bonds, refunding bonds, or advance refunding bonds, when the 29 amount of those services is in excess of $25,000, shall be 30 let to the lowest qualified bidder or bidders on open, 31 competitive bidding after public advertisement made at least 32 5 days before the opening of bids in a newspaper of general 33 circulation in any city of over 500,000 population or in any -3- LRB9001857NTsb 1 county through which the tollway for which the services are 2 required passes, in a manner and on one or more occasions as 3 may be prescribed by the Authority. 4 (b) If the services required would reasonably be 5 regarded by persons experienced in the area of those services 6 as requiring expertise with novel or complex issues that 7 could reasonably be provided by only one prospective 8 contractor, the Authority may prescribe by rule procedures 9 for the award of the service contract to the qualified 10 contractor. The contractor shall provide the required 11 service at the most economical cost to the Authority. 12 (605 ILCS 10/17) (from Ch. 121, par. 100-17) 13 Sec. 17. (a) The Authority may from time to time issue 14 bonds for any lawful purpose including, without limitation, 15 the costs of issuance thereof and all such bonds or other 16 obligations of the Authority issued pursuant to this Act 17 shall be and are hereby declared to be negotiable for all 18 purposes notwithstanding their payment from a limited source 19 and without regard to any other law or laws. 20 (b) The bonds of every issue shall be payable solely out 21 of revenues of the Authority, accumulated reserves or sinking 22 funds, bond proceeds, proceeds of refunding bonds, or 23 investment earnings as the Authority shall specify in a bond 24 resolution. 25 (c) The bonds may be issued as serial bonds or as term 26 bonds, or the Authority, in its discretion, may issue bonds 27 of both types. The bonds shall be authorized by a bond 28 resolution of the Authority, may be issued in one or more 29 series and shall bear such date or dates, mature at such time 30 or times not exceeding 25 years from their respective date or 31 dates of issue, bear interest at such rate or rates, fixed or 32 variable, without regard to any limit contained in any other 33 statute or law of the State of Illinois, be payable as to -4- LRB9001857NTsb 1 principal and interest at such time or times, be in such 2 denominations, be in such form, either coupon or fully 3 registered, carry such registration and conversion 4 privileges, be payable in lawful money of the United States 5 of America at such places, be subject to such terms of 6 redemption and may contain such other terms and provisions, 7 as such bond resolution or resolutions may provide. The 8 bonds shall be executed by the manual or facsimile signatures 9 of the Chairman and the Secretary. In case any of the 10 officers whose signature appears on the bonds or coupons, if 11 any, shall cease to be an officer before the delivery of such 12 bonds, such signature shall nevertheless be valid and 13 sufficient for all purposes, as if he had remained in office 14 until such delivery. The bonds shall be sold in such manner 15 as the Authority shall determine. The proceeds from the sale 16 of such bonds shall be paid to the Treasurer of the State of 17 Illinois as ex officio custodian. Pending preparation of the 18 definitive bonds, the Authority may issue interim receipts or 19 certificates which shall be exchanged for such definitive 20 bonds. 21 (d) Any bond resolution, or trust indenture entered into 22 pursuant to a bond resolution, may contain provisions, which 23 shall be a part of the contract with the holders of the bonds 24 to be authorized, as to: (i) pledging or creating a lien upon 25 all or part of the revenues of the Authority or any reserves, 26 sinking funds, bond proceeds or investment earnings; (ii) the 27 setting aside of reserves or sinking funds, and the 28 regulation, investment and disposition thereof; (iii) the use 29 and maintenance requirements for the toll highways; (iv) the 30 purposes to which or the investments in which the proceeds of 31 sale of any series or issue of bonds then or thereafter to be 32 issued may be applied; (v) the issuance of additional bonds, 33 the terms upon which additional bonds may be issued and 34 secured, the purposes for such additional bonds, and the -5- LRB9001857NTsb 1 terms upon which additional bonds may rank on a parity with, 2 or be subordinate or superior to other bonds; (vi) the 3 refunding of outstanding bonds; (vii) the procedure, if any, 4 by which the terms of any contract with bondholders may be 5 amended or abrogated, the amount of bonds the holders of 6 which must consent thereto, and the manner in which such 7 consent may be given; (viii) defining the acts or omissions 8 to act which shall constitute a default in the duties of the 9 Authority to holders of its obligations and providing the 10 rights and remedies of such holders in the event of a 11 default; (ix) any other matters relating to the bonds which 12 the Authority deems desirable. 13 (e) Neither the directors of the Authority nor any 14 person executing the bonds shall be liable personally on the 15 bonds or be subject to any personal liability or 16 accountability by reason of the issuance thereof. 17 (f) The Authority shall have power out of any funds 18 available therefor to purchase its bonds. The Authority may 19 hold, pledge, cancel or resell such bonds subject to and in 20 accordance with agreements with bondholders. 21 (g) In the discretion of the Authority any bonds issued 22 under the provisions of this Act may be secured by a trust 23 indenture by and between the Authority and a trustee or 24 trustees, which may be any trust company or bank in the State 25 of Illinois having the powers of a trust company and 26 possessing capital and surplus of not less than $50,000,000. 27 The bond resolution or trust indenture providing for the 28 issuance of bonds so secured shall pledge such revenues of 29 the Authority, sinking funds, bond proceeds, or investment 30 earnings as may be specified therein, may contain such 31 provisions for protecting and enforcing the rights and 32 remedies of the bondholders as may be reasonable and proper 33 and not in violation of law, including particularly such 34 provisions as have hereinabove been specifically authorized -6- LRB9001857NTsb 1 to be included in any bond resolution or trust indenture of 2 the Authority, and may restrict the individual right of 3 action by bondholders. In addition to the foregoing, any 4 bond resolution or trust indenture may contain such other 5 provisions as the Authority may deem reasonable and proper 6 for the security of the bondholders, including, but not 7 limited to, the purchase of bond insurance and the 8 arrangement of letters of credit, lines of credit or other 9 credit or liquidity enhancement facilities; provided there 10 shall be no pledge of the toll highway or any part thereof. 11 All expenses incurred in carrying out the provisions of any 12 bond resolution or trust indenture may be treated as a part 13 of the cost of the operation of the toll highways. 14 (h) Bonds issued under the authority of this Act do not, 15 and shall state upon the face of each bond that they do not, 16 represent or constitute a debt of the Authority or of the 17 State of Illinois within the meaning of any constitutional or 18 statutory limitation or a pledge of the faith and credit of 19 the Authority or the State of Illinois, or grant to the 20 owners or holders thereof any right to have the Authority or 21 the General Assembly levy any taxes or appropriate any funds 22 for the payment of the principal thereof or interest thereon. 23 Such bonds shall be payable and shall state that they are 24 payable solely from the revenues and the sources authorized 25 under this Act and pledged for their payment in accordance 26 with the bond resolution or trust indenture. 27 Nothing in this Act shall be construed to authorize the 28 Authority or any department, board, commission or other 29 agency to create an obligation of the State of Illinois 30 within the meaning of the Constitution or Statutes of 31 Illinois. 32 (i) Any resolution or trust indenture authorizing the 33 issuance of the bonds may include provision for the issuance 34 of additional bonds. All resolutions of the Authority to -7- LRB9001857NTsb 1 carry such adopted bond resolutions into effect, to provide 2 for the sale and delivery of the bonds, for letting of 3 contracts for the construction of toll highways and the 4 acquisition of real and personal property deemed by the 5 Authority necessary or convenient for the construction 6 thereof, shall not require the approval of the Governor or of 7 any other department, division, commission, bureau, board or 8 other agency of the State. 9 (j) The Authority shall not issue any bonds to finance 10 new construction or the repair of any tollway without first 11 applying all surplus revenues not currently needed to meet 12 any obligation of the Authority to the cost of the new 13 construction or repair project. 14 (Source: P.A. 83-1258.) 15 (605 ILCS 10/21.1 new) 16 Sec. 21.1. Schedule of conversions. 17 (a) Recognizing the original intent of the tollway 18 system and the directive of the General Assembly stated in 19 Section 21 that the toll highways and any connecting tunnels, 20 bridges, approaches, or other appurtenances to the toll 21 highways become part of the system of State highways and are 22 to be maintained and operated free of tolls once all bonds 23 and interest have been paid and all money appropriated by the 24 General Assembly has been repaid, the Authority shall 25 structure all financing of new toll highway construction to 26 facilitate converting established portions of the toll 27 highway system to State highways. In addition, when 28 refinancing or refunding existing debt, the Authority shall 29 enter into new bond indentures so as to eliminate 30 restrictions and facilitate conversion of established 31 portions of the tollway system into State highways. 32 (b) In accordance with subsection (a), the Authority 33 shall, in consultation with the Department of Transportation, -8- LRB9001857NTsb 1 submit a report every 2 years to the Governor and the General 2 Assembly detailing when each portion of the toll highway 3 system can be converted into a State highway under the 4 Department of Transportation's supervision. 5 Section 99. Effective date. This Act shall take effect 6 upon becoming law.
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