HB4334 93RD GENERAL ASSEMBLY

LRB093 16268 BDD 46227 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4334

Introduced 02/02/04, by Jay C. Hoffman

SYNOPSIS AS INTRODUCED:

30 ILCS 740/2-2.02	from Ch. 111 2/3, par. 662.02
30 ILCS 740/2-3	from Ch. 111 2/3, par. 663
30 ILCS 740/2-6	from Ch. 111 2/3, par. 666
30 ILCS 105/5.625 new

Amends the Downstate Public Transportation Act. Provides that a municipality or local mass transit district serving a nonurbanized area and receiving federal rural public transportation assistance on or before December 31, 2003 (instead of June 30, 2002) is a "participant" for public transportation assistance. Provides that if any Metro-East Transit District levies use and occupation taxes at a rate authorized by a certain provision of the Local Mass Transit District Act, then the State Treasurer shall transfer, by September 1, 2004 and each September 1 thereafter, from the General Revenue Fund to the Metro-East Public Transportation Supplemental Fund an amount equal to 50% of all of the District's use and occupation tax receipts during the previous State fiscal year. Provides that the Department of Revenue shall allocate and distribute the amounts in the Fund to the Districts in proportion to the deposits into the Fund as a result of the tax levy of that District. Amends the State Finance Act to create the Metro-East Public Transportation Supplemental Fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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, 2-3, and 2-6 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, or a local mass transit district organized under the Local Mass Transit District Act (a) serving an urbanized area of over 50,000 population 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 December 31, 2003 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 740/2-3) (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 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 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, 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) If any Metro-East Transit District levies use and occupation taxes at a rate authorized under subsection (d-5) of Section 5.01 of the Local Mass Transit District Act, then the State Treasurer shall transfer, by September 1, 2004 and each September 1 thereafter, from the General Revenue Fund to the Metro-East Public Transportation Supplemental Fund, a special fund in the State Treasury, an amount equal to 50% of all of the District's use and occupation tax receipts pursuant to that Section 5.01 during the previous State fiscal year.

(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 740/2-6) (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. 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. With regard to the amount in the Metro-East Public Transportation Supplemental Fund, deposited in accordance with the provisions of subsection (b-5) of Section 2-3, the Department shall allocate and distribute those amounts to the Districts in proportion to the deposits into the Fund under subsection (b-5) of Section 2-3 as a result of the tax levy of that District.

(Source: P.A. 89-598, eff. 8-1-96.)

Section 905. The State Finance Act is amended by adding Section 5.625 as follows:

(30 ILCS 105/5.625 new)

Sec. 5.625. The Metro-East Public Transportation Supplemental Fund.

Section 999. Effective date. This Act takes effect upon becoming law.