State of Illinois
91st General Assembly

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 1        AN ACT to amend the Toll Highway Act by changing  Section
 2    17 and adding Sections 8.1 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 and 21.1 as follows:

 7        (605 ILCS 10/8.1 new)
 8        Sec. 8.1.  Inspector General.
 9        (a)  The Authority shall appoint an Inspector General who
10    shall  have  the  authority  to  conduct  investigations into
11    allegations or  incidents  of  waste,  fraud,  and  financial
12    mismanagement  in Authority operations involving an Authority
13    employee or contractor.  The  Inspector  General  shall  make
14    recommendations   to  the  Authority  regarding  his  or  her
15    investigations.  The Inspector General shall be appointed for
16    a  term  of  4  years.   The  Inspector  General   shall   be
17    independent  of  the  operations of the Authority and perform
18    other duties as requested by the Authority.
19        (b)  The Inspector  General  shall  have  access  to  all
20    information  and personnel necessary to perform the duties of
21    the office.  If  the  Inspector  General  determines  that  a
22    possible  criminal  act  has  been  committed or that special
23    expertise is required in the investigation, he or  she  shall
24    immediately  notify  the  State  Police.   All investigations
25    conducted by the Inspector General shall be  conducted  in  a
26    manner  that  ensures the preservation of evidence for use in
27    criminal prosecutions.
28        (c)  At all times, the Inspector General shall be granted
29    access to any building or facility that is  owned,  operated,
30    or leased by the Authority.
31        (d)  The  Inspector  General  shall  have  the  power  to
                            -2-                LRB9100104KSgc
 1    subpoena  witnesses  and  compel  the production of books and
 2    papers pertinent  to  an  investigation  authorized  by  this
 3    Section.  Any person who:
 4             (1)  fails to appear in response to a subpoena;
 5             (2)  fails to answer any question;
 6             (3)  fails  to produce any books or papers pertinent
 7        to an investigation under this Section; or
 8             (4)  knowingly  gives  false  testimony  during   an
 9        investigation under this Section;
10    is guilty of a Class A misdemeanor.
11        (e)  The Inspector General shall provide to the Authority
12    and   the   General   Assembly   a  summary  of  reports  and
13    investigations made  under  this  Section  for  the  previous
14    fiscal  year  no  later  than  January  1  of each year.  The
15    summaries shall detail the final disposition of the Inspector
16    General's recommendations.  The summaries shall  not  contain
17    any  confidential  or  identifying information concerning the
18    subjects of the reports and  investigations.   The  summaries
19    shall   also  include  detailed,  recommended  administrative
20    actions  and  matters  for  consideration  by   the   General
21    Assembly.

22        (605 ILCS 10/17) (from Ch. 121, par. 100-17)
23        Sec.  17.   (a) The Authority may from time to time issue
24    bonds for any lawful purpose including,  without  limitation,
25    the  costs  of  issuance  thereof and all such bonds or other
26    obligations of the Authority  issued  pursuant  to  this  Act
27    shall  be  and  are  hereby declared to be negotiable for all
28    purposes notwithstanding their payment from a limited  source
29    and without regard to any other law or laws.
30        (b)  The bonds of every issue shall be payable solely out
31    of revenues of the Authority, accumulated reserves or sinking
32    funds,   bond  proceeds,  proceeds  of  refunding  bonds,  or
33    investment earnings as the Authority shall specify in a  bond
                            -3-                LRB9100104KSgc
 1    resolution.
 2        (c)  The  bonds  may be issued as serial bonds or as term
 3    bonds, or the Authority, in its discretion, may  issue  bonds
 4    of  both  types.   The  bonds  shall  be authorized by a bond
 5    resolution of the Authority, may be issued  in  one  or  more
 6    series and shall bear such date or dates, mature at such time
 7    or times not exceeding 25 years from their respective date or
 8    dates of issue, bear interest at such rate or rates, fixed or
 9    variable,  without regard to any limit contained in any other
10    statute or law of the State of Illinois,  be  payable  as  to
11    principal  and  interest  at  such  time or times, be in such
12    denominations, be  in  such  form,  either  coupon  or  fully
13    registered,    carry   such   registration   and   conversion
14    privileges, be payable in lawful money of the  United  States
15    of  America  at  such  places,  be  subject  to such terms of
16    redemption and may contain such other terms  and  provisions,
17    as  such  bond  resolution  or  resolutions may provide.  The
18    bonds shall be executed by the manual or facsimile signatures
19    of the Chairman and  the  Secretary.   In  case  any  of  the
20    officers  whose signature appears on the bonds or coupons, if
21    any, shall cease to be an officer before the delivery of such
22    bonds,  such  signature  shall  nevertheless  be  valid   and
23    sufficient  for all purposes, as if he had remained in office
24    until such delivery.  The bonds shall be sold in such  manner
25    as the Authority shall determine.  The proceeds from the sale
26    of  such bonds shall be paid to the Treasurer of the State of
27    Illinois as ex officio custodian. Pending preparation of  the
28    definitive bonds, the Authority may issue interim receipts or
29    certificates  which  shall  be  exchanged for such definitive
30    bonds.
31        (d)  Any bond resolution, or trust indenture entered into
32    pursuant to a bond resolution, may contain provisions,  which
33    shall be a part of the contract with the holders of the bonds
34    to be authorized, as to: (i) pledging or creating a lien upon
                            -4-                LRB9100104KSgc
 1    all or part of the revenues of the Authority or any reserves,
 2    sinking funds, bond proceeds or investment earnings; (ii) the
 3    setting   aside   of  reserves  or  sinking  funds,  and  the
 4    regulation, investment and disposition thereof; (iii) the use
 5    and maintenance requirements for the toll highways; (iv)  the
 6    purposes to which or the investments in which the proceeds of
 7    sale of any series or issue of bonds then or thereafter to be
 8    issued  may be applied; (v) the issuance of additional bonds,
 9    the terms upon which  additional  bonds  may  be  issued  and
10    secured,  the  purposes  for  such  additional bonds, and the
11    terms upon which additional bonds may rank on a parity  with,
12    or  be  subordinate  or  superior  to  other  bonds; (vi) the
13    refunding of outstanding bonds; (vii) the procedure, if  any,
14    by  which  the  terms of any contract with bondholders may be
15    amended or abrogated, the amount  of  bonds  the  holders  of
16    which  must  consent  thereto,  and  the manner in which such
17    consent may be given; (viii) defining the acts  or  omissions
18    to  act which shall constitute a default in the duties of the
19    Authority to holders of its  obligations  and  providing  the
20    rights  and  remedies  of  such  holders  in  the  event of a
21    default; (ix) any other matters relating to the  bonds  which
22    the Authority deems desirable.
23        (e)  Neither  the  directors  of  the  Authority  nor any
24    person executing the bonds shall be liable personally on  the
25    bonds   or   be   subject   to   any  personal  liability  or
26    accountability by reason of the issuance thereof.
27        (f)  The Authority shall have  power  out  of  any  funds
28    available  therefor to purchase its bonds.  The Authority may
29    hold, pledge, cancel or resell such bonds subject to  and  in
30    accordance with agreements with bondholders.
31        (g)  In  the discretion of the Authority any bonds issued
32    under the provisions of this Act may be secured  by  a  trust
33    indenture  by  and  between  the  Authority  and a trustee or
34    trustees, which may be any trust company or bank in the State
                            -5-                LRB9100104KSgc
 1    of  Illinois  having  the  powers  of  a  trust  company  and
 2    possessing capital and surplus of not less than $50,000,000.
 3    The bond resolution or  trust  indenture  providing  for  the
 4    issuance  of  bonds  so secured shall pledge such revenues of
 5    the Authority, sinking funds, bond  proceeds,  or  investment
 6    earnings  as  may  be  specified  therein,  may  contain such
 7    provisions  for  protecting  and  enforcing  the  rights  and
 8    remedies of the bondholders as may be reasonable  and  proper
 9    and  not  in  violation  of  law, including particularly such
10    provisions as have hereinabove been  specifically  authorized
11    to  be  included in any bond resolution or trust indenture of
12    the Authority, and  may  restrict  the  individual  right  of
13    action  by  bondholders.   In  addition to the foregoing, any
14    bond resolution or trust indenture  may  contain  such  other
15    provisions  as  the  Authority may deem reasonable and proper
16    for the security  of  the  bondholders,  including,  but  not
17    limited   to,   the   purchase  of  bond  insurance  and  the
18    arrangement of letters of credit, lines of  credit  or  other
19    credit  or  liquidity  enhancement facilities; provided there
20    shall be no pledge of the toll highway or any  part  thereof.
21    All  expenses  incurred in carrying out the provisions of any
22    bond resolution or trust indenture may be treated as  a  part
23    of the cost of the operation of the toll highways.
24        (h)  Bonds issued under the authority of this Act do not,
25    and  shall state upon the face of each bond that they do not,
26    represent or constitute a debt of the  Authority  or  of  the
27    State of Illinois within the meaning of any constitutional or
28    statutory  limitation  or a pledge of the faith and credit of
29    the Authority or the State  of  Illinois,  or  grant  to  the
30    owners  or holders thereof any right to have the Authority or
31    the General Assembly levy any taxes or appropriate any  funds
32    for the payment of the principal thereof or interest thereon.
33    Such  bonds  shall  be  payable and shall state that they are
34    payable solely from the revenues and the  sources  authorized
                            -6-                LRB9100104KSgc
 1    under  this  Act  and pledged for their payment in accordance
 2    with the bond resolution or trust indenture.
 3        Nothing in this Act shall be construed to  authorize  the
 4    Authority  or  any  department,  board,  commission  or other
 5    agency to create an  obligation  of  the  State  of  Illinois
 6    within  the  meaning  of  the  Constitution  or  Statutes  of
 7    Illinois.
 8        (i)  Any  resolution  or  trust indenture authorizing the
 9    issuance of the bonds may include provision for the  issuance
10    of  additional  bonds.   All  resolutions of the Authority to
11    carry such adopted bond resolutions into effect,  to  provide
12    for  the  sale  and  delivery  of  the  bonds, for letting of
13    contracts for the  construction  of  toll  highways  and  the
14    acquisition  of  real  and  personal  property  deemed by the
15    Authority  necessary  or  convenient  for  the   construction
16    thereof, shall not require the approval of the Governor or of
17    any  other department, division, commission, bureau, board or
18    other agency of the State.
19        (j)  The Authority shall not issue any bonds  to  finance
20    new  construction  or the repair of any tollway without first
21    applying all surplus revenues not currently  needed  to  meet
22    any  obligation  of  the  Authority  to  the  cost of the new
23    construction or repair project.
24    (Source: P.A. 83-1258.)

25        (605 ILCS 10/21.1 new)
26        Sec. 21.1.  Schedule of conversions.
27        (a)  Recognizing  the  original  intent  of  the  tollway
28    system and the directive of the General  Assembly  stated  in
29    Section 21 that the toll highways and any connecting tunnels,
30    bridges,  approaches,  or  other  appurtenances  to  the toll
31    highways become part of the system of State highways and  are
32    to  be  maintained  and operated free of tolls once all bonds
33    and interest have been paid and all money appropriated by the
                            -7-                LRB9100104KSgc
 1    General  Assembly  has  been  repaid,  the  Authority   shall
 2    structure  all  financing of new toll highway construction to
 3    facilitate  converting  established  portions  of  the   toll
 4    highway   system   to  State  highways.   In  addition,  when
 5    refinancing or refunding existing debt, the  Authority  shall
 6    enter   into   new   bond   indentures  so  as  to  eliminate
 7    restrictions  and  facilitate   conversion   of   established
 8    portions of the tollway system into State highways.
 9        (b)  In  accordance  with  subsection  (a), the Authority
10    shall, in consultation with the Department of Transportation,
11    submit a report every 2 years to the Governor and the General
12    Assembly detailing when each  portion  of  the  toll  highway
13    system  can  be  converted  into  a  State  highway under the
14    Department of Transportation's supervision.

15        Section 99.  Effective date. This Act shall  take  effect
16    upon becoming law.

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