Illinois General Assembly - Full Text of Public Act 096-0906
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Public Act 096-0906


 

Public Act 0906 96TH GENERAL ASSEMBLY



 


 
Public Act 096-0906
 
SB0941 Enrolled LRB096 07050 AJT 17136 b

    AN ACT concerning transportation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Regional Transportation Authority Act is
amended by changing Section 4.04 as follows:
 
    (70 ILCS 3615/4.04)  (from Ch. 111 2/3, par. 704.04)
    Sec. 4.04. Issuance and Pledge of Bonds and Notes.
    (a) The Authority shall have the continuing power to borrow
money and to issue its negotiable bonds or notes as provided in
this Section. Unless otherwise indicated in this Section, the
term "notes" also includes bond anticipation notes, which are
notes which by their terms provide for their payment from the
proceeds of bonds thereafter to be issued. Bonds or notes of
the Authority may be issued for any or all of the following
purposes: to pay costs to the Authority or a Service Board of
constructing or acquiring any public transportation facilities
(including funds and rights relating thereto, as provided in
Section 2.05 of this Act); to repay advances to the Authority
or a Service Board made for such purposes; to pay other
expenses of the Authority or a Service Board incident to or
incurred in connection with such construction or acquisition;
to provide funds for any transportation agency to pay principal
of or interest or redemption premium on any bonds or notes,
whether as such amounts become due or by earlier redemption,
issued prior to the date of this amendatory Act by such
transportation agency to construct or acquire public
transportation facilities or to provide funds to purchase such
bonds or notes; and to provide funds for any transportation
agency to construct or acquire any public transportation
facilities, to repay advances made for such purposes, and to
pay other expenses incident to or incurred in connection with
such construction or acquisition; and to provide funds for
payment of obligations, including the funding of reserves,
under any self-insurance plan or joint self-insurance pool or
entity.
    In addition to any other borrowing as may be authorized by
this Section, the Authority may issue its notes, from time to
time, in anticipation of tax receipts of the Authority or of
other revenues or receipts of the Authority, in order to
provide money for the Authority or the Service Boards to cover
any cash flow deficit which the Authority or a Service Board
anticipates incurring. Any such notes are referred to in this
Section as "Working Cash Notes". No Working Cash Notes shall be
issued for a term of longer than 24 months. Proceeds of Working
Cash Notes may be used to pay day to day operating expenses of
the Authority or the Service Boards, consisting of wages,
salaries and fringe benefits, professional and technical
services (including legal, audit, engineering and other
consulting services), office rental, furniture, fixtures and
equipment, insurance premiums, claims for self-insured amounts
under insurance policies, public utility obligations for
telephone, light, heat and similar items, travel expenses,
office supplies, postage, dues, subscriptions, public hearings
and information expenses, fuel purchases, and payments of
grants and payments under purchase of service agreements for
operations of transportation agencies, prior to the receipt by
the Authority or a Service Board from time to time of funds for
paying such expenses. In addition to any Working Cash Notes
that the Board of the Authority may determine to issue, the
Suburban Bus Board, the Commuter Rail Board or the Board of the
Chicago Transit Authority may demand and direct that the
Authority issue its Working Cash Notes in such amounts and
having such maturities as the Service Board may determine.
    Notwithstanding any other provision of this Act, any
amounts necessary to pay principal of and interest on any
Working Cash Notes issued at the demand and direction of a
Service Board or any Working Cash Notes the proceeds of which
were used for the direct benefit of a Service Board or any
other Bonds or Notes of the Authority the proceeds of which
were used for the direct benefit of a Service Board shall
constitute a reduction of the amount of any other funds
provided by the Authority to that Service Board. The Authority
shall, after deducting any costs of issuance, tender the net
proceeds of any Working Cash Notes issued at the demand and
direction of a Service Board to such Service Board as soon as
may be practicable after the proceeds are received. The
Authority may also issue notes or bonds to pay, refund or
redeem any of its notes and bonds, including to pay redemption
premiums or accrued interest on such bonds or notes being
renewed, paid or refunded, and other costs in connection
therewith. The Authority may also utilize the proceeds of any
such bonds or notes to pay the legal, financial, administrative
and other expenses of such authorization, issuance, sale or
delivery of bonds or notes or to provide or increase a debt
service reserve fund with respect to any or all of its bonds or
notes. The Authority may also issue and deliver its bonds or
notes in exchange for any public transportation facilities,
(including funds and rights relating thereto, as provided in
Section 2.05 of this Act) or in exchange for outstanding bonds
or notes of the Authority, including any accrued interest or
redemption premium thereon, without advertising or submitting
such notes or bonds for public bidding.
    (b) The ordinance providing for the issuance of any such
bonds or notes shall fix the date or dates of maturity, the
dates on which interest is payable, any sinking fund account or
reserve fund account provisions and all other details of such
bonds or notes and may provide for such covenants or agreements
necessary or desirable with regard to the issue, sale and
security of such bonds or notes. The rate or rates of interest
on its bonds or notes may be fixed or variable and the
Authority shall determine or provide for the determination of
the rate or rates of interest of its bonds or notes issued
under this Act in an ordinance adopted by the Authority prior
to the issuance thereof, none of which rates of interest shall
exceed that permitted in the Bond Authorization Act. Interest
may be payable at such times as are provided for by the Board.
Bonds and notes issued under this Section may be issued as
serial or term obligations, shall be of such denomination or
denominations and form, including interest coupons to be
attached thereto, be executed in such manner, shall be payable
at such place or places and bear such date as the Authority
shall fix by the ordinance authorizing such bond or note and
shall mature at such time or times, within a period not to
exceed forty years from the date of issue, and may be
redeemable prior to maturity with or without premium, at the
option of the Authority, upon such terms and conditions as the
Authority shall fix by the ordinance authorizing the issuance
of such bonds or notes. No bond anticipation note or any
renewal thereof shall mature at any time or times exceeding 5
years from the date of the first issuance of such note. The
Authority may provide for the registration of bonds or notes in
the name of the owner as to the principal alone or as to both
principal and interest, upon such terms and conditions as the
Authority may determine. The ordinance authorizing bonds or
notes may provide for the exchange of such bonds or notes which
are fully registered, as to both principal and interest, with
bonds or notes which are registerable as to principal only. All
bonds or notes issued under this Section by the Authority other
than those issued in exchange for property or for bonds or
notes of the Authority shall be sold at a price which may be at
a premium or discount but such that the interest cost
(excluding any redemption premium) to the Authority of the
proceeds of an issue of such bonds or notes, computed to stated
maturity according to standard tables of bond values, shall not
exceed that permitted in the Bond Authorization Act. The
Authority shall notify the Governor's Office of Management and
Budget and the State Comptroller at least 30 days before any
bond sale and shall file with the Governor's Office of
Management and Budget and the State Comptroller a certified
copy of any ordinance authorizing the issuance of bonds at or
before the issuance of the bonds. After December 31, 1994, any
such bonds or notes shall be sold to the highest and best
bidder on sealed bids as the Authority shall deem. As such
bonds or notes are to be sold the Authority shall advertise for
proposals to purchase the bonds or notes which advertisement
shall be published at least once in a daily newspaper of
general circulation published in the metropolitan region at
least 10 days before the time set for the submission of bids.
The Authority shall have the right to reject any or all bids.
Notwithstanding any other provisions of this Section, Working
Cash Notes or bonds or notes to provide funds for
self-insurance or a joint self-insurance pool or entity may be
sold either upon competitive bidding or by negotiated sale
(without any requirement of publication of intention to
negotiate the sale of such Notes), as the Board shall determine
by ordinance adopted with the affirmative votes of at least 9
Directors. In case any officer whose signature appears on any
bonds, notes or coupons authorized pursuant to this Section
shall cease to be such officer before delivery of such bonds or
notes, such signature shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until such delivery. Neither the Directors
of the Authority nor any person executing any bonds or notes
thereof shall be liable personally on any such bonds or notes
or coupons by reason of the issuance thereof.
    (c) All bonds or notes of the Authority issued pursuant to
this Section shall be general obligations of the Authority to
which shall be pledged the full faith and credit of the
Authority, as provided in this Section. Such bonds or notes
shall be secured as provided in the authorizing ordinance,
which may, notwithstanding any other provision of this Act,
include in addition to any other security, a specific pledge or
assignment of and lien on or security interest in any or all
tax receipts of the Authority and on any or all other revenues
or moneys of the Authority from whatever source, which may by
law be utilized for debt service purposes and a specific pledge
or assignment of and lien on or security interest in any funds
or accounts established or provided for by the ordinance of the
Authority authorizing the issuance of such bonds or notes. Any
such pledge, assignment, lien or security interest for the
benefit of holders of bonds or notes of the Authority shall be
valid and binding from the time the bonds or notes are issued
without any physical delivery or further act and shall be valid
and binding as against and prior to the claims of all other
parties having claims of any kind against the Authority or any
other person irrespective of whether such other parties have
notice of such pledge, assignment, lien or security interest.
The obligations of the Authority incurred pursuant to this
Section shall be superior to and have priority over any other
obligations of the Authority.
    The Authority may provide in the ordinance authorizing the
issuance of any bonds or notes issued pursuant to this Section
for the creation of, deposits in, and regulation and
disposition of sinking fund or reserve accounts relating to
such bonds or notes. The ordinance authorizing the issuance of
any bonds or notes pursuant to this Section may contain
provisions as part of the contract with the holders of the
bonds or notes, for the creation of a separate fund to provide
for the payment of principal and interest on such bonds or
notes and for the deposit in such fund from any or all the tax
receipts of the Authority and from any or all such other moneys
or revenues of the Authority from whatever source which may by
law be utilized for debt service purposes, all as provided in
such ordinance, of amounts to meet the debt service
requirements on such bonds or notes, including principal and
interest, and any sinking fund or reserve fund account
requirements as may be provided by such ordinance, and all
expenses incident to or in connection with such fund and
accounts or the payment of such bonds or notes. Such ordinance
may also provide limitations on the issuance of additional
bonds or notes of the Authority. No such bonds or notes of the
Authority shall constitute a debt of the State of Illinois.
Nothing in this Act shall be construed to enable the Authority
to impose any ad valorem tax on property.
    (d) The ordinance of the Authority authorizing the issuance
of any bonds or notes may provide additional security for such
bonds or notes by providing for appointment of a corporate
trustee (which may be any trust company or bank having the
powers of a trust company within the state) with respect to
such bonds or notes. The ordinance shall prescribe the rights,
duties and powers of the trustee to be exercised for the
benefit of the Authority and the protection of the holders of
such bonds or notes. The ordinance may provide for the trustee
to hold in trust, invest and use amounts in funds and accounts
created as provided by the ordinance with respect to the bonds
or notes. The ordinance may provide for the assignment and
direct payment to the trustee of any or all amounts produced
from the sources provided in Section 4.03 and Section 4.09 of
this Act and provided in Section 6z-17 of "An Act in relation
to State finance", approved June 10, 1919, as amended. Upon
receipt of notice of any such assignment, the Department of
Revenue and the Comptroller of the State of Illinois shall
thereafter, notwithstanding the provisions of Section 4.03 and
Section 4.09 of this Act and Section 6z-17 of "An Act in
relation to State finance", approved June 10, 1919, as amended,
provide for such assigned amounts to be paid directly to the
trustee instead of the Authority, all in accordance with the
terms of the ordinance making the assignment. The ordinance
shall provide that amounts so paid to the trustee which are not
required to be deposited, held or invested in funds and
accounts created by the ordinance with respect to bonds or
notes or used for paying bonds or notes to be paid by the
trustee to the Authority.
    (e) Any bonds or notes of the Authority issued pursuant to
this Section shall constitute a contract between the Authority
and the holders from time to time of such bonds or notes. In
issuing any bond or note, the Authority may include in the
ordinance authorizing such issue a covenant as part of the
contract with the holders of the bonds or notes, that as long
as such obligations are outstanding, it shall make such
deposits, as provided in paragraph (c) of this Section. It may
also so covenant that it shall impose and continue to impose
taxes, as provided in Section 4.03 of this Act and in addition
thereto as subsequently authorized by law, sufficient to make
such deposits and pay the principal and interest and to meet
other debt service requirements of such bonds or notes as they
become due. A certified copy of the ordinance authorizing the
issuance of any such obligations shall be filed at or prior to
the issuance of such obligations with the Comptroller of the
State of Illinois and the Illinois Department of Revenue.
    (f) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued pursuant
to this Section that the State will not limit or alter the
rights and powers vested in the Authority by this Act so as to
impair the terms of any contract made by the Authority with
such holders or in any way impair the rights and remedies of
such holders until such bonds and notes, together with interest
thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or
proceedings by or on behalf of such holders, are fully met and
discharged. In addition, the State pledges to and agrees with
the holders of the bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or alter
the basis on which State funds are to be paid to the Authority
as provided in this Act, or the use of such funds, so as to
impair the terms of any such contract. The Authority is
authorized to include these pledges and agreements of the State
in any contract with the holders of bonds or notes issued
pursuant to this Section.
    (g) (1) Except as provided in subdivisions (g)(2) and
    (g)(3) of Section 4.04 of this Act, the Authority shall not
    at any time issue, sell or deliver any bonds or notes
    (other than Working Cash Notes) pursuant to this Section
    4.04 which will cause it to have issued and outstanding at
    any time in excess of $800,000,000 of such bonds and notes
    (other than Working Cash Notes). The Authority shall not at
    any time issue, sell, or deliver any Working Cash Notes
    pursuant to this Section that will cause it to have issued
    and outstanding at any time in excess of $100,000,000.
    However, the Authority may issue, sell, and deliver
    additional Working Cash Notes before July 1, 2012 that are
    over and above and in addition to the $100,000,000
    authorization such that the outstanding amount of these
    additional Working Cash Notes does not exceed at any time
    $300,000,000. Notwithstanding the foregoing, before July
    1, 2009, the Authority may issue, sell, and deliver an
    additional $300,000,000 in Working Cash Notes, provided
    that any such additional notes shall mature on or before
    June 30, 2011. Bonds or notes which are being paid or
    retired by such issuance, sale or delivery of bonds or
    notes, and bonds or notes for which sufficient funds have
    been deposited with the paying agency of such bonds or
    notes to provide for payment of principal and interest
    thereon or to provide for the redemption thereof, all
    pursuant to the ordinance authorizing the issuance of such
    bonds or notes, shall not be considered to be outstanding
    for the purposes of the first two sentences of this
    subsection.
        (2) In addition to the authority provided by paragraphs
    (1) and (3), the Authority is authorized to issue, sell and
    deliver bonds or notes for Strategic Capital Improvement
    Projects approved pursuant to Section 4.13 as follows:
        $100,000,000 is authorized to be issued on or after
    January 1, 1990;
        an additional $100,000,000 is authorized to be issued
    on or after January 1, 1991;
        an additional $100,000,000 is authorized to be issued
    on or after January 1, 1992;
        an additional $100,000,000 is authorized to be issued
    on or after January 1, 1993;
        an additional $100,000,000 is authorized to be issued
    on or after January 1, 1994; and
        the aggregate total authorization of bonds and notes
    for Strategic Capital Improvement Projects as of January 1,
    1994, shall be $500,000,000.
        The Authority is also authorized to issue, sell, and
    deliver bonds or notes in such amounts as are necessary to
    provide for the refunding or advance refunding of bonds or
    notes issued for Strategic Capital Improvement Projects
    under this subdivision (g)(2), provided that no such
    refunding bond or note shall mature later than the final
    maturity date of the series of bonds or notes being
    refunded, and provided further that the debt service
    requirements for such refunding bonds or notes in the
    current or any future fiscal year shall not exceed the debt
    service requirements for that year on the refunded bonds or
    notes.
        (3) In addition to the authority provided by paragraphs
    (1) and (2), the Authority is authorized to issue, sell,
    and deliver bonds or notes for Strategic Capital
    Improvement Projects approved pursuant to Section 4.13 as
    follows:
        $260,000,000 is authorized to be issued on or after
    January 1, 2000;
        an additional $260,000,000 is authorized to be issued
    on or after January 1, 2001;
        an additional $260,000,000 is authorized to be issued
    on or after January 1, 2002;
        an additional $260,000,000 is authorized to be issued
    on or after January 1, 2003;
        an additional $260,000,000 is authorized to be issued
    on or after January 1, 2004; and
        the aggregate total authorization of bonds and notes
    for Strategic Capital Improvement Projects pursuant to
    this paragraph (3) as of January 1, 2004 shall be
    $1,300,000,000.
        The Authority is also authorized to issue, sell, and
    deliver bonds or notes in such amounts as are necessary to
    provide for the refunding or advance refunding of bonds or
    notes issued for Strategic Capital Improvement projects
    under this subdivision (g)(3), provided that no such
    refunding bond or note shall mature later than the final
    maturity date of the series of bonds or notes being
    refunded, and provided further that the debt service
    requirements for such refunding bonds or notes in the
    current or any future fiscal year shall not exceed the debt
    service requirements for that year on the refunded bonds or
    notes.
    (h) The Authority, subject to the terms of any agreements
with noteholders or bond holders as may then exist, shall have
power, out of any funds available therefor, to purchase notes
or bonds of the Authority, which shall thereupon be cancelled.
    (i) In addition to any other authority granted by law, the
State Treasurer may, with the approval of the Governor, invest
or reinvest, at a price not to exceed par, any State money in
the State Treasury which is not needed for current expenditures
due or about to become due in Working Cash Notes.
(Source: P.A. 94-793, eff. 5-19-06; 95-708, eff. 1-18-08.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 06/07/2010