Public Act 094-0070
 
HB2222 Enrolled LRB094 03350 DRH 33351 b

    AN ACT concerning transportation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Downstate Public Transportation Act is
amended by changing Sections 2-2.02, 2-2.04, 2-2.05, 2-3, 2-6,
and 2-7 and adding Section 2-5.1 as follows:
 
    (30 ILCS 740/2-2.02)  (from Ch. 111 2/3, par. 662.02)
    Sec. 2-2.02. "Participant" means:
    (1) a city, village, or incorporated town, a county, or a
local mass transit district organized under the Local Mass
Transit District Act (a) serving an urbanized area of over
50,000 population or on December 28, 1989, (b) receiving State
mass transportation operating assistance pursuant to the
Downstate Public Transportation Act during Fiscal Year 1979, or
(c) serving a nonurbanized area and receiving federal rural
public transportation assistance on or before June 30, 2002; or
    (2) any Metro-East Transit District established pursuant
to Section 3 of the Local Mass Transit District Act and serving
one or more of the Counties of Madison, Monroe, and St. Clair
during Fiscal Year 1989, all located outside the boundaries of
the Regional Transportation Authority as established pursuant
to the Regional Transportation Authority Act.
(Source: P.A. 91-357, eff. 7-29-99; 92-258, eff. 8-7-01;
92-464, eff. 8-22-01.)
 
    (30 ILCS 740/2-2.04)  (from Ch. 111 2/3, par. 662.04)
    Sec. 2-2.04. "Eligible operating expenses" means all
expenses required for public transportation, including
employee wages and benefits, materials, fuels, supplies,
rental of facilities, taxes other than income taxes, payment
made for debt service (including principal and interest) on
publicly owned equipment or facilities, and any other
expenditure which is an operating expense according to standard
accounting practices for the providing of public
transportation. Eligible operating expenses shall not include
allowances: (a) for depreciation whether funded or unfunded;
(b) for amortization of any intangible costs; (c) for debt
service on capital acquired with the assistance of capital
grant funds provided by the State of Illinois; (d) for profits
or return on investment; (e) for excessive payment to
associated entities; (f) for Comprehensive Employment Training
Act expenses; (g) for costs reimbursed under Sections 6 and 8
of the "Urban Mass Transportation Act of 1964", as amended; (h)
for entertainment expenses; (i) for charter expenses; (j) for
fines and penalties; (k) for charitable donations; (l) for
interest expense on long term borrowing and debt retirement
other than on publicly owned equipment or facilities; (m) for
income taxes; or (n) for such other expenses as the Department
may determine consistent with federal Department of
Transportation regulations or requirements.
    With respect to participants other than any Metro-East
Transit District participant and those receiving federal
research development and demonstration funds pursuant to
Section 6 of the "Urban Mass Transportation Act of 1964", as
amended, during the fiscal year ending June 30, 1979, the
maximum eligible operating expenses for any such participant in
any fiscal year after Fiscal Year 1980 shall be the amount
appropriated for such participant for the fiscal year ending
June 30, 1980, plus in each year a 10% increase over the
maximum established for the preceding fiscal year. For Fiscal
Year 1980 the maximum eligible operating expenses for any such
participant shall be the amount of projected operating expenses
upon which the appropriation for such participant for Fiscal
Year 1980 is based.
    With respect to participants receiving federal research
development and demonstration operating assistance funds for
operating assistance pursuant to Section 6 of the "Urban Mass
Transportation Act of 1964", as amended, during the fiscal year
ending June 30, 1979, the maximum eligible operating expenses
for any such participant in any fiscal year after Fiscal Year
1980 shall not exceed such participant's eligible operating
expenses for the fiscal year ending June 30, 1980, plus in each
year a 10% increase over the maximum established for the
preceding fiscal year. For Fiscal Year 1980, the maximum
eligible operating expenses for any such participant shall be
the eligible operating expenses incurred during such fiscal
year, or projected operating expenses upon which the
appropriation for such participant for the Fiscal Year 1980 is
based; whichever is less.
    With respect to all participants other than any Metro-East
Transit District participant, the maximum eligible operating
expenses for any such participant in any fiscal year after
Fiscal Year 1985 shall be the amount appropriated for such
participant for the fiscal year ending June 30, 1985, plus in
each year a 10% increase over the maximum established for the
preceding year. For Fiscal Year 1985, the maximum eligible
operating expenses for any such participant shall be the amount
of projected operating expenses upon which the appropriation
for such participant for Fiscal Year 1985 is based.
    With respect to any mass transit district participant that
has increased its district boundaries by annexing counties
since 1998 and is maintaining a level of local financial
support, including all income and revenues, equal to or greater
than the level in the State fiscal year ending June 30, 2001,
the maximum eligible operating expenses for any State fiscal
year after 2002 (except State fiscal year 2006) shall be the
amount appropriated for that participant for the State fiscal
year ending June 30, 2002, plus, in each State fiscal year, a
10% increase over the preceding State fiscal year. For State
fiscal year 2002, the maximum eligible operating expenses for
any such participant shall be the amount of projected operating
expenses upon which the appropriation for that participant for
State fiscal year 2002 is based. For that participant, eligible
operating expenses for State fiscal year 2002 in excess of the
eligible operating expenses for the State fiscal year ending
June 30, 2001, plus 10%, must be attributed to the provision of
services in the newly annexed counties.
    With respect to a participant that receives an initial
appropriation in State fiscal year 2002 or thereafter, the
maximum eligible operating expenses for any State fiscal year
after 2003 (except State fiscal year 2006) shall be the amount
appropriated for that participant for the State fiscal year in
which it received its initial appropriation ending June 30,
2003, plus, in each year, a 10% increase over the preceding
year. For the initial State fiscal year in which a participant
received an appropriation 2003, the maximum eligible operating
expenses for any such participant shall be the amount of
projected operating expenses upon which the appropriation for
that participant for that State fiscal year 2003 is based.
    With respect to the District serving primarily the counties
of Monroe and St. Clair, beginning July 1, 2005, the St. Clair
County Transit District shall no longer be included for new
appropriation funding purposes as part of the Metro-East Public
Transportation Fund and instead shall be included for new
appropriation funding purposes as part of the Downstate Public
Transportation Fund; provided, however, that nothing herein
shall alter the eligibility of that District for previously
appropriated funds to which it would otherwise be entitled.
(Source: P.A. 92-258, eff. 8-7-01; 92-464, eff. 8-22-01;
92-651, eff. 7-11-02.)
 
    (30 ILCS 740/2-2.05)  (from Ch. 111 2/3, par. 662.05)
    Sec. 2-2.05. "Public Transportation" means the
transportation or conveyance of persons by means available to
the general public including groups of the general public with
special needs
    (1) within the urbanized area or
    (2) in the nonurbanized areas within the service area of
each participant as approved by the Department, except for
transportation by automobiles not used for conveyance of the
general public as passengers.
    Service in a participant's service area may be provided by
either (i) another eligible participant through an
intergovernmental agreement, (ii) a private for-profit
operator through a third party contract, or (iii) a private
non-profit operator through a pass through agreement or third
party contract.
(Source: P.A. 82-783.)
 
    (30 ILCS 740/2-3)  (from Ch. 111 2/3, par. 663)
    Sec. 2-3. (a) As soon as possible after the first day of
each month, beginning July 1, 1984, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, from the General
Revenue Fund to a special fund in the State Treasury which is
hereby created, to be known as the "Downstate Public
Transportation Fund", an amount equal to 2/32 (beginning July
1, 2005, 3/32) of the net revenue realized from the "Retailers'
Occupation Tax Act", as now or hereafter amended, the "Service
Occupation Tax Act", as now or hereafter amended, the "Use Tax
Act", as now or hereafter amended, and the "Service Use Tax
Act", as now or hereafter amended, from persons incurring
municipal or county retailers' or service occupation tax
liability for the benefit of any municipality or county located
wholly within the boundaries of each participant other than any
Metro-East Transit District participant certified pursuant to
subsection (c) of this Section during the preceding month,
except that the Department shall pay into the Downstate Public
Transportation Fund 2/32 (beginning July 1, 2005, 3/32) of 80%
of the net revenue realized under the State tax Acts named
above within any municipality or county located wholly within
the boundaries of each participant, other than any Metro-East
participant, for tax periods beginning on or after January 1,
1990; provided, however, that beginning with fiscal year 1985,
the transfers into the Downstate Public Transportation Fund
during any fiscal year shall not exceed the annual
appropriation from the Downstate Public Transportation Fund
for that year. The Department of Transportation shall notify
the Department of Revenue and the Comptroller at the beginning
of each fiscal year of the amount of the annual appropriation
from the Downstate Public Transportation Fund. Net revenue
realized for a month shall be the revenue collected by the
State pursuant to such Acts during the previous month from
persons incurring municipal or county retailers' or service
occupation tax liability for the benefit of any municipality or
county located wholly within the boundaries of a participant,
less the amount paid out during that same month as refunds or
credit memoranda to taxpayers for overpayment of liability
under such Acts for the benefit of any municipality or county
located wholly within the boundaries of a participant.
    (b) As soon as possible after the first day of each month,
beginning July 1, 1989, upon certification of the Department of
Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, from the General Revenue Fund to a
special fund in the State Treasury which is hereby created, to
be known as the "Metro-East Public Transportation Fund", an
amount equal to 2/32 of the net revenue realized, as above,
from within the boundaries of Madison, Monroe, and St. Clair
Counties, except that the Department shall pay into the
Metro-East Public Transportation Fund 2/32 of 80% of the net
revenue realized under the State tax Acts specified in
subsection (a) of this Section within the boundaries of
Madison, Monroe and St. Clair Counties for tax periods
beginning on or after January 1, 1990. A local match equivalent
to an amount which could be raised by a tax levy at the rate of
.05% on the assessed value of property within the boundaries of
Madison County , Monroe and St. Clair Counties is required
annually to cause a total of 2/32 of the net revenue to be
deposited in the Metro-East Public Transportation Fund.
Failure to raise the required local match annually shall result
in only 1/32 being deposited into the Metro-East Public
Transportation Fund after July 1, 1989, or 1/32 of 80% of the
net revenue realized for tax periods beginning on or after
January 1, 1990.
    (b-5) As soon as possible after the first day of each
month, beginning July 1, 2005, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, from the General
Revenue Fund to the Downstate Public Transportation Fund, an
amount equal to 3/32 of 80% of the net revenue realized from
within the boundaries of Monroe and St. Clair Counties under
the State Tax Acts specified in subsection (a) of this Section
and provided further that, beginning July 1, 2005, the
provisions of subsection (b) shall no longer apply with respect
to such tax receipts from Monroe and St. Clair Counties.
    (c) The Department shall certify to the Department of
Revenue the eligible participants under this Article and the
territorial boundaries of such participants for the purposes of
the Department of Revenue in subsections (a) and (b) of this
Section.
    (d) For the purposes of this Article the Department shall
include in its annual request for appropriation of ordinary and
contingent expenses an amount equal to the sum total funds
projected to be paid to the participants pursuant to Section
2-7.
    (e) In addition to any other permitted use of moneys in the
Fund, and notwithstanding any restriction on the use of the
Fund, moneys in the Downstate Public Transportation Fund may be
transferred to the General Revenue Fund as authorized by Public
Act 87-14. The General Assembly finds that an excess of moneys
existed in the Fund on July 30, 1991, and the Governor's order
of July 30, 1991, and the Governor's order of July 30, 1991,
requesting the Comptroller and Treasurer to transfer an amount
from the Fund to the General Revenue Fund is hereby validated.
(Source: P.A. 86-590; 86-953; 87-838.)
 
    (30 ILCS 740/2-5.1 new)
    Sec. 2-5.1. Additional requirements.
    (a) Any unit of local government that becomes a participant
on or after the effective date of this amendatory Act of the
94th General Assembly shall, in addition to any other
requirements under this Article, meet all of the following
requirements when applying for grants under this Article:
        (1) The grant application must demonstrate the
    participant's plan to provide general public
    transportation with an emphasis on elderly, disabled, and
    economically disadvantaged populations.
        (2) The grant application must demonstrate the
    participant's plan for interagency coordination that, at a
    minimum, allows the participation of all State-funded and
    federally-funded agencies and programs with transportation
    needs in the proposed service area in the development of
    the applicant's public transportation program.
        (3) Any participant serving a nonurbanized area that is
    not receiving Federal Section 5311 funding must meet the
    operating and safety compliance requirements as set forth
    in that federal program.
        (4) The participant is required to hold public hearings
    to allow comment on the proposed service plan in all
    municipalities with populations of 1,500 inhabitants or
    more within the proposed service area.
    (b) Service extensions by any participant after July 1,
2005 by either annexation or intergovernmental agreement must
meet the 4 requirements of subsection (a).
    (c) In order to receive funding, the Department shall
certify that the participant has met the requirements of this
Section. Funding priority shall be given to service extension,
multi-county, and multi-jurisdictional projects.
 
    (30 ILCS 740/2-6)  (from Ch. 111 2/3, par. 666)
    Sec. 2-6. Allocation of funds.
    (a) With respect to all participants other than any
Metro-East Transit District participant, the Department shall
allocate the funds to be made available to each participant
under this Article for the following fiscal year and shall
notify the chief official of each participant not later than
the first day of the fiscal year of this amount. For Fiscal
Year 1975, notification shall be made not later than January 1,
1975, of the amount of such allocation. In determining the
allocation for each participant, the Department shall estimate
the funds available to the participant from the Downstate
Public Transportation Fund for the purposes of this Article
during the succeeding fiscal year, and shall allocate to each
participant the amount attributable to it which shall be the
amount paid into the Downstate Public Transportation Fund under
Section 2-3 from within its boundaries. Said allocations may be
exceeded for participants receiving assistance equal to
one-third of their eligible operating expenses, only if an
allocation is less than one-third of such participant's
eligible operating expenses, provided, however, that no other
participant is denied its one-third of eligible operating
expenses. Beginning in Fiscal Year 1997, said allocation may be
exceeded for participants receiving assistance equal to the
percentage of their eligible operating expenses provided for in
paragraph (b) of Section 2-7, only if allocation is less than
the percentage of such participant's eligible operating
expenses provided for in paragraph (b) of Section 2-7, provided
however, that no other participant is denied its percentage of
eligible operating expenses.
    (b) With regard to any Metro-East Transit District
organized under the Local Mass Transit District Act and serving
one or more of the Counties of Madison, Monroe and St. Clair
during Fiscal Year 1989, the Department shall allocate the
funds to be made available to each participant for the
following and succeeding fiscal years and shall notify the
chief official of each participant not later than the first day
of the fiscal year of this amount. Beginning July 1, 2005, the
The Department shall allocate 55% of the amount paid into the
Metro-East Public Transportation Fund to the District serving
primarily the Counties of Monroe and St. Clair and 45% of the
amount to that District serving primarily the County of
Madison.
(Source: P.A. 89-598, eff. 8-1-96.)
 
    (30 ILCS 740/2-7)  (from Ch. 111 2/3, par. 667)
    Sec. 2-7. Quarterly reports; annual audit.
    (a) Any Metro-East Transit District participant shall, no
later than 60 days following the end of each quarter of any
fiscal year, file with the Department on forms provided by the
Department for that purpose, a report of the actual operating
deficit experienced during that quarter. The Department shall,
upon receipt of the quarterly report, determine whether the
operating deficits were incurred in conformity with the program
of proposed expenditures approved by the Department pursuant to
Section 2-11. Any Metro-East District may either monthly or
quarterly for any fiscal year file a request for the
participant's eligible share, as allocated in accordance with
Section 2-6, of the amounts transferred into the Metro-East
Public Transportation Fund.
    (b) Each participant other than any Metro-East Transit
District participant shall, 30 days before the end of each
quarter, file with the Department on forms provided by the
Department for such purposes a report of the projected eligible
operating expenses to be incurred in the next quarter and 30
days before the third and fourth quarters of any fiscal year a
statement of actual eligible operating expenses incurred in the
preceding quarters. Except as otherwise provided in subsection
(b-5), within Within 45 days of receipt by the Department of
such quarterly report, the Comptroller shall order paid and the
Treasurer shall pay from the Downstate Public Transportation
Fund to each participant an amount equal to one-third of such
participant's eligible operating expenses; provided, however,
that in Fiscal Year 1997, the amount paid to each participant
from the Downstate Public Transportation Fund shall be an
amount equal to 47% of such participant's eligible operating
expenses and shall be increased to 49% in Fiscal Year 1998, 51%
in Fiscal Year 1999, 53% in Fiscal Year 2000, and 55% in Fiscal
Year 2001 and thereafter; however, in any year that a
participant receives funding under subsection (i) of Section
2705-305 of the Department of Transportation Law (20 ILCS
2705/2705-305), that participant shall be eligible only for
assistance equal to the following percentage of its eligible
operating expenses: 42% in Fiscal Year 1997, 44% in Fiscal Year
1998, 46% in Fiscal Year 1999, 48% in Fiscal Year 2000, and 50%
in Fiscal Year 2001 and thereafter. Any such payment for the
third and fourth quarters of any fiscal year shall be adjusted
to reflect actual eligible operating expenses for preceding
quarters of such fiscal year. However, no participant shall
receive an amount less than that which was received in the
immediate prior year, provided in the event of a shortfall in
the fund those participants receiving less than their full
allocation pursuant to Section 2-6 of this Article shall be the
first participants to receive an amount not less than that
received in the immediate prior year.
    (b-5) With respect to the District serving primarily the
counties of Monroe and St. Clair, beginning July 1, 2005 and
each fiscal year thereafter, the District may, as an
alternative to the provisions of subsection (b) of Section 2-7,
file a request with the Department for a monthly payment of
1/12 of the amount appropriated to the District for that fiscal
year; except that, for the final month of the fiscal year, the
District's request shall be in an amount such that the total
payments made to the District in that fiscal year do not exceed
the lesser of (i) 55% of the District's eligible operating
expenses for that fiscal year or (ii) the total amount
appropriated to the District for that fiscal year.
    (c) No later than 180 days following the last day of the
Fiscal Year each participant shall provide the Department with
an audit prepared by a Certified Public Accountant covering
that Fiscal Year. For those participants other than a
Metro-East Transit District, any discrepancy between the
grants paid and the percentage of the eligible operating
expenses provided for by paragraph (b) of this Section shall be
reconciled by appropriate payment or credit. In the case of any
Metro-East Transit District, any amount of payments from the
Metro-East Public Transportation Fund which exceed the
eligible deficit of the participant shall be reconciled by
appropriate payment or credit.
(Source: P.A. 91-239, eff. 1-1-00; 91-357, eff. 7-29-99; 92-16,
eff. 6-28-01; 92-258, eff. 8-7-01; 92-464, eff. 8-22-01.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.