101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2305

 

Introduced 11/12/2019, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/8  from Ch. 120, par. 424

    Amends the Motor Fuel Tax Law. Provides that the Department of Central Management Services shall establish a model business enterprise program for the procurement of contracts by municipalities, counties, and road districts. Provides that, if a municipality, county, or road district received a motor fuel tax distribution totaling more than $1,000,000 in the previous fiscal year, then, in order to receive a distribution for the current fiscal year, that municipality, county, or road district must certify to the Department of Transportation that it has established a minority-owned, women-owned, and veteran-owned business enterprise program that meets or exceeds the requirements of the model program established by the Department of Central Management Services. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Motor Fuel Tax Law is amended by changing
5Section 8 as follows:
 
6    (35 ILCS 505/8)  (from Ch. 120, par. 424)
7    Sec. 8. Except as provided in subsection (a-1) of this
8Section, Section 8a, subdivision (h)(1) of Section 12a, Section
913a.6, and items 13, 14, 15, and 16 of Section 15, all money
10received by the Department under this Act, including payments
11made to the Department by member jurisdictions participating in
12the International Fuel Tax Agreement, shall be deposited in a
13special fund in the State treasury, to be known as the "Motor
14Fuel Tax Fund", and shall be used as follows:
15    (a) 2 1/2 cents per gallon of the tax collected on special
16fuel under paragraph (b) of Section 2 and Section 13a of this
17Act shall be transferred to the State Construction Account Fund
18in the State Treasury; the remainder of the tax collected on
19special fuel under paragraph (b) of Section 2 and Section 13a
20of this Act shall be deposited into the Road Fund;
21    (a-1) Beginning on July 1, 2019, an amount equal to the
22amount of tax collected under subsection (a) of Section 2 as a
23result of the increase in the tax rate under Public Act 101-32

 

 

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1this amendatory Act of the 101st General Assembly shall be
2transferred each month into the Transportation Renewal Fund; .
3    (b) $420,000 shall be transferred each month to the State
4Boating Act Fund to be used by the Department of Natural
5Resources for the purposes specified in Article X of the Boat
6Registration and Safety Act;
7    (c) $3,500,000 shall be transferred each month to the Grade
8Crossing Protection Fund to be used as follows: not less than
9$12,000,000 each fiscal year shall be used for the construction
10or reconstruction of rail highway grade separation structures;
11$2,250,000 in fiscal years 2004 through 2009 and $3,000,000 in
12fiscal year 2010 and each fiscal year thereafter shall be
13transferred to the Transportation Regulatory Fund and shall be
14accounted for as part of the rail carrier portion of such funds
15and shall be used to pay the cost of administration of the
16Illinois Commerce Commission's railroad safety program in
17connection with its duties under subsection (3) of Section
1818c-7401 of the Illinois Vehicle Code, with the remainder to be
19used by the Department of Transportation upon order of the
20Illinois Commerce Commission, to pay that part of the cost
21apportioned by such Commission to the State to cover the
22interest of the public in the use of highways, roads, streets,
23or pedestrian walkways in the county highway system, township
24and district road system, or municipal street system as defined
25in the Illinois Highway Code, as the same may from time to time
26be amended, for separation of grades, for installation,

 

 

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1construction or reconstruction of crossing protection or
2reconstruction, alteration, relocation including construction
3or improvement of any existing highway necessary for access to
4property or improvement of any grade crossing and grade
5crossing surface including the necessary highway approaches
6thereto of any railroad across the highway or public road, or
7for the installation, construction, reconstruction, or
8maintenance of a pedestrian walkway over or under a railroad
9right-of-way, as provided for in and in accordance with Section
1018c-7401 of the Illinois Vehicle Code. The Commission may order
11up to $2,000,000 per year in Grade Crossing Protection Fund
12moneys for the improvement of grade crossing surfaces and up to
13$300,000 per year for the maintenance and renewal of 4-quadrant
14gate vehicle detection systems located at non-high speed rail
15grade crossings. The Commission shall not order more than
16$2,000,000 per year in Grade Crossing Protection Fund moneys
17for pedestrian walkways. In entering orders for projects for
18which payments from the Grade Crossing Protection Fund will be
19made, the Commission shall account for expenditures authorized
20by the orders on a cash rather than an accrual basis. For
21purposes of this requirement an "accrual basis" assumes that
22the total cost of the project is expended in the fiscal year in
23which the order is entered, while a "cash basis" allocates the
24cost of the project among fiscal years as expenditures are
25actually made. To meet the requirements of this subsection, the
26Illinois Commerce Commission shall develop annual and 5-year

 

 

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1project plans of rail crossing capital improvements that will
2be paid for with moneys from the Grade Crossing Protection
3Fund. The annual project plan shall identify projects for the
4succeeding fiscal year and the 5-year project plan shall
5identify projects for the 5 directly succeeding fiscal years.
6The Commission shall submit the annual and 5-year project plans
7for this Fund to the Governor, the President of the Senate, the
8Senate Minority Leader, the Speaker of the House of
9Representatives, and the Minority Leader of the House of
10Representatives on the first Wednesday in April of each year;
11    (d) of the amount remaining after allocations provided for
12in subsections (a), (a-1), (b), and (c), a sufficient amount
13shall be reserved to pay all of the following:
14        (1) the costs of the Department of Revenue in
15    administering this Act;
16        (2) the costs of the Department of Transportation in
17    performing its duties imposed by the Illinois Highway Code
18    for supervising the use of motor fuel tax funds apportioned
19    to municipalities, counties and road districts;
20        (3) refunds provided for in Section 13, refunds for
21    overpayment of decal fees paid under Section 13a.4 of this
22    Act, and refunds provided for under the terms of the
23    International Fuel Tax Agreement referenced in Section
24    14a;
25        (4) from October 1, 1985 until June 30, 1994, the
26    administration of the Vehicle Emissions Inspection Law,

 

 

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1    which amount shall be certified monthly by the
2    Environmental Protection Agency to the State Comptroller
3    and shall promptly be transferred by the State Comptroller
4    and Treasurer from the Motor Fuel Tax Fund to the Vehicle
5    Inspection Fund, and for the period July 1, 1994 through
6    June 30, 2000, one-twelfth of $25,000,000 each month, for
7    the period July 1, 2000 through June 30, 2003, one-twelfth
8    of $30,000,000 each month, and $15,000,000 on July 1, 2003,
9    and $15,000,000 on January 1, 2004, and $15,000,000 on each
10    July 1 and October 1, or as soon thereafter as may be
11    practical, during the period July 1, 2004 through June 30,
12    2012, and $30,000,000 on June 1, 2013, or as soon
13    thereafter as may be practical, and $15,000,000 on July 1
14    and October 1, or as soon thereafter as may be practical,
15    during the period of July 1, 2013 through June 30, 2015,
16    for the administration of the Vehicle Emissions Inspection
17    Law of 2005, to be transferred by the State Comptroller and
18    Treasurer from the Motor Fuel Tax Fund into the Vehicle
19    Inspection Fund;
20        (4.5) beginning on July 1, 2019, the costs of the
21    Environmental Protection Agency for the administration of
22    the Vehicle Emissions Inspection Law of 2005 shall be paid,
23    subject to appropriation, from the Motor Fuel Tax Fund into
24    the Vehicle Inspection Fund; beginning in 2019, no later
25    than December 31 of each year, or as soon thereafter as
26    practical, the State Comptroller shall direct and the State

 

 

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1    Treasurer shall transfer from the Vehicle Inspection Fund
2    to the Motor Fuel Tax Fund any balance remaining in the
3    Vehicle Inspection Fund in excess of $2,000,000;
4        (5) amounts ordered paid by the Court of Claims; and
5        (6) payment of motor fuel use taxes due to member
6    jurisdictions under the terms of the International Fuel Tax
7    Agreement. The Department shall certify these amounts to
8    the Comptroller by the 15th day of each month; the
9    Comptroller shall cause orders to be drawn for such
10    amounts, and the Treasurer shall administer those amounts
11    on or before the last day of each month;
12    (e) after allocations for the purposes set forth in
13subsections (a), (a-1), (b), (c), and (d), the remaining amount
14shall be apportioned as follows:
15        (1) Until January 1, 2000, 58.4%, and beginning January
16    1, 2000, 45.6% shall be deposited as follows:
17            (A) 37% into the State Construction Account Fund,
18        and
19            (B) 63% into the Road Fund, $1,250,000 of which
20        shall be reserved each month for the Department of
21        Transportation to be used in accordance with the
22        provisions of Sections 6-901 through 6-906 of the
23        Illinois Highway Code;
24        (2) Until January 1, 2000, 41.6%, and beginning January
25    1, 2000, 54.4% shall be transferred to the Department of
26    Transportation to be distributed as follows:

 

 

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1            (A) 49.10% to the municipalities of the State,
2            (B) 16.74% to the counties of the State having
3        1,000,000 or more inhabitants,
4            (C) 18.27% to the counties of the State having less
5        than 1,000,000 inhabitants,
6            (D) 15.89% to the road districts of the State.
7        If a township is dissolved under Article 24 of the
8    Township Code, McHenry County shall receive any moneys that
9    would have been distributed to the township under this
10    subparagraph, except that a municipality that assumes the
11    powers and responsibilities of a road district under
12    paragraph (6) of Section 24-35 of the Township Code shall
13    receive any moneys that would have been distributed to the
14    township in a percent equal to the area of the dissolved
15    road district or portion of the dissolved road district
16    over which the municipality assumed the powers and
17    responsibilities compared to the total area of the
18    dissolved township. The moneys received under this
19    subparagraph shall be used in the geographic area of the
20    dissolved township. If a township is reconstituted as
21    provided under Section 24-45 of the Township Code, McHenry
22    County or a municipality shall no longer be distributed
23    moneys under this subparagraph.
24    As soon as may be after the first day of each month, the
25Department of Transportation shall allot to each municipality
26its share of the amount apportioned to the several

 

 

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1municipalities which shall be in proportion to the population
2of such municipalities as determined by the last preceding
3municipal census if conducted by the Federal Government or
4Federal census. If territory is annexed to any municipality
5subsequent to the time of the last preceding census the
6corporate authorities of such municipality may cause a census
7to be taken of such annexed territory and the population so
8ascertained for such territory shall be added to the population
9of the municipality as determined by the last preceding census
10for the purpose of determining the allotment for that
11municipality. If the population of any municipality was not
12determined by the last Federal census preceding any
13apportionment, the apportionment to such municipality shall be
14in accordance with any census taken by such municipality. Any
15municipal census used in accordance with this Section shall be
16certified to the Department of Transportation by the clerk of
17such municipality, and the accuracy thereof shall be subject to
18approval of the Department which may make such corrections as
19it ascertains to be necessary.
20    As soon as may be after the first day of each month, the
21Department of Transportation shall allot to each county its
22share of the amount apportioned to the several counties of the
23State as herein provided. Each allotment to the several
24counties having less than 1,000,000 inhabitants shall be in
25proportion to the amount of motor vehicle license fees received
26from the residents of such counties, respectively, during the

 

 

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1preceding calendar year. The Secretary of State shall, on or
2before April 15 of each year, transmit to the Department of
3Transportation a full and complete report showing the amount of
4motor vehicle license fees received from the residents of each
5county, respectively, during the preceding calendar year. The
6Department of Transportation shall, each month, use for
7allotment purposes the last such report received from the
8Secretary of State.
9    As soon as may be after the first day of each month, the
10Department of Transportation shall allot to the several
11counties their share of the amount apportioned for the use of
12road districts. The allotment shall be apportioned among the
13several counties in the State in the proportion which the total
14mileage of township or district roads in the respective
15counties bears to the total mileage of all township and
16district roads in the State. Funds allotted to the respective
17counties for the use of road districts therein shall be
18allocated to the several road districts in the county in the
19proportion which the total mileage of such township or district
20roads in the respective road districts bears to the total
21mileage of all such township or district roads in the county.
22After July 1 of any year prior to 2011, no allocation shall be
23made for any road district unless it levied a tax for road and
24bridge purposes in an amount which will require the extension
25of such tax against the taxable property in any such road
26district at a rate of not less than either .08% of the value

 

 

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1thereof, based upon the assessment for the year immediately
2prior to the year in which such tax was levied and as equalized
3by the Department of Revenue or, in DuPage County, an amount
4equal to or greater than $12,000 per mile of road under the
5jurisdiction of the road district, whichever is less. Beginning
6July 1, 2011 and each July 1 thereafter, an allocation shall be
7made for any road district if it levied a tax for road and
8bridge purposes. In counties other than DuPage County, if the
9amount of the tax levy requires the extension of the tax
10against the taxable property in the road district at a rate
11that is less than 0.08% of the value thereof, based upon the
12assessment for the year immediately prior to the year in which
13the tax was levied and as equalized by the Department of
14Revenue, then the amount of the allocation for that road
15district shall be a percentage of the maximum allocation equal
16to the percentage obtained by dividing the rate extended by the
17district by 0.08%. In DuPage County, if the amount of the tax
18levy requires the extension of the tax against the taxable
19property in the road district at a rate that is less than the
20lesser of (i) 0.08% of the value of the taxable property in the
21road district, based upon the assessment for the year
22immediately prior to the year in which such tax was levied and
23as equalized by the Department of Revenue, or (ii) a rate that
24will yield an amount equal to $12,000 per mile of road under
25the jurisdiction of the road district, then the amount of the
26allocation for the road district shall be a percentage of the

 

 

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1maximum allocation equal to the percentage obtained by dividing
2the rate extended by the district by the lesser of (i) 0.08% or
3(ii) the rate that will yield an amount equal to $12,000 per
4mile of road under the jurisdiction of the road district.
5    The Department of Central Management Services shall
6establish a model business enterprise program for the
7procurement of contracts by municipalities, counties, and road
8districts. The program shall take into account the size,
9geographic location, and general procurement needs of the
10various municipalities, counties, and road districts of the
11State. Notwithstanding any other provision of law, for each
12fiscal year beginning on or after July 1, 2021, if a
13municipality, county, or road district received a distribution
14under this Section totaling more than $1,000,000 in the
15previous fiscal year, then, in order to receive a distribution
16for the current fiscal year, that municipality, county, or road
17district must certify to the Department of Transportation that
18it has established a minority-owned, women-owned, and
19veteran-owned business enterprise program that meets or
20exceeds the requirements of the model program established by
21the Department of Central Management Services under this
22Section. The municipality, county, or road district shall
23accept vendor certification from the State of Illinois, the
24County of Cook, and the City of Chicago for minority-owned,
25women-owned or veteran-owned businesses. The Department of
26Transportation shall prepare a list of all affected

 

 

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1municipalities, counties, and road districts that received a
2distribution of more than $1,000,000 in the last fiscal year
3and shall publish the list on its website. The Department of
4Central Management Services shall prepare and conduct all
5necessary studies, including an availability analysis and a
6disparity study for all affected municipalities, counties, and
7road districts, and shall use all existing studies as much as
8possible. The Department of Central Management Services shall
9maximize economies of scale in these studies where local
10governments draw from the same pool of vendors. If the study
11does not support the establishment of a business enterprise
12program for any local municipality, county, or road district,
13the requirements of this Section shall not apply to that local
14municipality, county, or road district. The Department of
15Transportation and the Illinois Toll Highway Authority shall
16provide all data on their studies related to their business
17enterprise programs to the Department of Central Management
18Services to assist the Department of Central Management
19Services in the completion of the study.
20    Prior to 2011, if any road district has levied a special
21tax for road purposes pursuant to Sections 6-601, 6-602, and
226-603 of the Illinois Highway Code, and such tax was levied in
23an amount which would require extension at a rate of not less
24than .08% of the value of the taxable property thereof, as
25equalized or assessed by the Department of Revenue, or, in
26DuPage County, an amount equal to or greater than $12,000 per

 

 

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1mile of road under the jurisdiction of the road district,
2whichever is less, such levy shall, however, be deemed a proper
3compliance with this Section and shall qualify such road
4district for an allotment under this Section. Beginning in 2011
5and thereafter, if any road district has levied a special tax
6for road purposes under Sections 6-601, 6-602, and 6-603 of the
7Illinois Highway Code, and the tax was levied in an amount that
8would require extension at a rate of not less than 0.08% of the
9value of the taxable property of that road district, as
10equalized or assessed by the Department of Revenue or, in
11DuPage County, an amount equal to or greater than $12,000 per
12mile of road under the jurisdiction of the road district,
13whichever is less, that levy shall be deemed a proper
14compliance with this Section and shall qualify such road
15district for a full, rather than proportionate, allotment under
16this Section. If the levy for the special tax is less than
170.08% of the value of the taxable property, or, in DuPage
18County if the levy for the special tax is less than the lesser
19of (i) 0.08% or (ii) $12,000 per mile of road under the
20jurisdiction of the road district, and if the levy for the
21special tax is more than any other levy for road and bridge
22purposes, then the levy for the special tax qualifies the road
23district for a proportionate, rather than full, allotment under
24this Section. If the levy for the special tax is equal to or
25less than any other levy for road and bridge purposes, then any
26allotment under this Section shall be determined by the other

 

 

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1levy for road and bridge purposes.
2    Prior to 2011, if a township has transferred to the road
3and bridge fund money which, when added to the amount of any
4tax levy of the road district would be the equivalent of a tax
5levy requiring extension at a rate of at least .08%, or, in
6DuPage County, an amount equal to or greater than $12,000 per
7mile of road under the jurisdiction of the road district,
8whichever is less, such transfer, together with any such tax
9levy, shall be deemed a proper compliance with this Section and
10shall qualify the road district for an allotment under this
11Section.
12    In counties in which a property tax extension limitation is
13imposed under the Property Tax Extension Limitation Law, road
14districts may retain their entitlement to a motor fuel tax
15allotment or, beginning in 2011, their entitlement to a full
16allotment if, at the time the property tax extension limitation
17was imposed, the road district was levying a road and bridge
18tax at a rate sufficient to entitle it to a motor fuel tax
19allotment and continues to levy the maximum allowable amount
20after the imposition of the property tax extension limitation.
21Any road district may in all circumstances retain its
22entitlement to a motor fuel tax allotment or, beginning in
232011, its entitlement to a full allotment if it levied a road
24and bridge tax in an amount that will require the extension of
25the tax against the taxable property in the road district at a
26rate of not less than 0.08% of the assessed value of the

 

 

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1property, based upon the assessment for the year immediately
2preceding the year in which the tax was levied and as equalized
3by the Department of Revenue or, in DuPage County, an amount
4equal to or greater than $12,000 per mile of road under the
5jurisdiction of the road district, whichever is less.
6    As used in this Section, the term "road district" means any
7road district, including a county unit road district, provided
8for by the Illinois Highway Code; and the term "township or
9district road" means any road in the township and district road
10system as defined in the Illinois Highway Code. For the
11purposes of this Section, "township or district road" also
12includes such roads as are maintained by park districts, forest
13preserve districts and conservation districts. The Department
14of Transportation shall determine the mileage of all township
15and district roads for the purposes of making allotments and
16allocations of motor fuel tax funds for use in road districts.
17    Payment of motor fuel tax moneys to municipalities and
18counties shall be made as soon as possible after the allotment
19is made. The treasurer of the municipality or county may invest
20these funds until their use is required and the interest earned
21by these investments shall be limited to the same uses as the
22principal funds.
23(Source: P.A. 101-32, eff. 6-28-19; 101-230, eff. 8-9-19;
24101-493, eff. 8-23-19; revised 9-24-19.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.