Rep. Elaine Nekritz
Filed: 4/22/2010
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 941




2
    AMENDMENT NO. ______. Amend Senate Bill 941, AS AMENDED, by 
3
replacing everything after the enacting clause with the 
4
following:

 
5
    "Section 5. The Regional Transportation Authority Act is 
6
amended  by changing Section 4.04 as follows:
 
7
    (70 ILCS 3615/4.04)  (from Ch. 111 2/3, par. 704.04)
8
    Sec. 4.04. Issuance and Pledge of Bonds and Notes. 
9
    (a) The Authority shall have the continuing power to borrow 
10
money and to
issue its negotiable bonds or notes as provided in 
11
this Section.  Unless
otherwise indicated in this Section, the 
12
term "notes" also includes bond
anticipation notes, which are 
13
notes which by their terms provide for
their payment from the 
14
proceeds of bonds thereafter to be issued.  Bonds
or notes of 
15
the Authority may be issued for any or all of the following

16
purposes: to pay costs to the Authority or a Service Board of 
 


 






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constructing
or acquiring any public transportation facilities 
2
(including funds and
rights relating thereto, as provided in 
3
Section 2.05 of this Act); to repay
advances to the Authority 
4
or a Service Board made for such purposes; to pay
other 
5
expenses of the Authority or a Service Board incident to or 
6
incurred
in connection with such construction or acquisition; 
7
to provide funds for
any transportation agency to pay principal

8
of or interest or redemption premium on any bonds or notes, 
9
whether
as such amounts become due or by earlier redemption, 
10
issued prior to the
date of this amendatory Act by such 
11
transportation agency to construct or
acquire public 
12
transportation facilities or to provide funds to purchase
such 
13
bonds or notes; and to provide funds for any transportation 
14
agency to
construct or acquire any public transportation 
15
facilities, to repay
advances made for such purposes, and to 
16
pay other expenses incident to
or incurred in connection with 
17
such construction or acquisition; and to
provide funds for 
18
payment of obligations, including the funding of reserves,

19
under any self-insurance plan or joint self-insurance pool or 
20
entity.
21
    In addition to any other borrowing as may be authorized by 
22
this Section,
the Authority may issue its notes, from time to 
23
time, in anticipation of
tax receipts of the Authority or of 
24
other
revenues or receipts of the Authority, in order to 
25
provide money for the
Authority or the Service Boards to cover 
26
any cash flow deficit which
the Authority or a Service Board 
 


 






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anticipates incurring.  Any such notes
are referred to in this 
2
Section as "Working Cash Notes".  No Working
Cash Notes shall be 
3
issued for a term of longer than 24
 months.
Proceeds of Working 
4
Cash Notes may be used to pay day to day operating
expenses of 
5
the Authority or the Service Boards, consisting of wages,

6
salaries and fringe benefits, professional and technical 
7
services
(including legal, audit, engineering and other 
8
consulting services), office
rental, furniture, fixtures and 
9
equipment, insurance premiums, claims for
self-insured amounts 
10
under insurance policies, public utility
obligations for 
11
telephone, light, heat and similar items, travel expenses,

12
office supplies, postage, dues, subscriptions, public hearings 
13
and information
expenses, fuel purchases, and payments of 
14
grants and payments under purchase
of service agreements for 
15
operations of transportation agencies, prior to
the receipt by 
16
the Authority or a Service Board from time to time of
funds for 
17
paying such expenses.  In addition to any Working Cash Notes

18
that the Board of the Authority may determine to issue, the 
19
Suburban Bus
Board, the Commuter Rail Board or the Board of the 
20
Chicago Transit Authority
may demand and direct that the 
21
Authority issue its Working Cash Notes in
such amounts and 
22
having such maturities as the Service Board may determine.
23
    Notwithstanding any other provision of this Act, any 
24
amounts necessary to
pay principal of and interest on any

25
Working Cash Notes issued at the demand
and direction of a 
26
Service Board or any Working Cash Notes the proceeds of
which 
 


 






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were used for the direct benefit of a Service Board or any 
2
other
Bonds or Notes of the Authority the proceeds of which 
3
were used for the
direct benefit of a Service Board shall 
4
constitute a reduction of the amount
of any other funds 
5
provided by the Authority to that Service
Board.  The Authority 
6
shall, after deducting any costs of issuance, tender
the net 
7
proceeds of any Working Cash Notes issued at the demand and

8
direction of a Service Board to such Service Board as soon as 
9
may be
practicable after the proceeds are received.  The 
10
Authority may also issue
notes or bonds to pay, refund or 
11
redeem any of its notes and bonds,
including to pay redemption 
12
premiums or accrued interest on such bonds or
notes being 
13
renewed, paid or refunded, and other costs in connection

14
therewith.  The Authority may also utilize the proceeds of any 
15
such bonds or
notes to pay the legal, financial, administrative 
16
and other expenses of
such authorization, issuance, sale or 
17
delivery of bonds or notes or to
provide or increase a debt 
18
service reserve fund with respect to any or all
of its bonds or 
19
notes. The Authority may also issue and deliver
its bonds or 
20
notes in exchange for any public transportation facilities,

21
(including funds and rights relating thereto, as provided in 
22
Section
2.05 of this Act) or in exchange for outstanding bonds 
23
or notes of the
Authority, including any accrued interest or 
24
redemption premium thereon,
without advertising or submitting 
25
such notes or bonds for public bidding.
26
    (b) The ordinance providing for the issuance of any such 
 


 






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bonds or
notes shall fix the date or dates of maturity, the 
2
dates on which
interest is payable, any sinking fund account or 
3
reserve fund account
provisions and all other details of such 
4
bonds or notes and may provide
for such covenants or agreements 
5
necessary or desirable with regard to
the issue, sale and 
6
security of such bonds or notes.  The rate or rates of
interest 
7
on its bonds or notes may be fixed or variable and the 
8
Authority
shall determine or provide for the determination of 
9
the rate or
rates of interest of its bonds or notes
issued 
10
under this Act in an ordinance adopted by the Authority prior 
11
to
the issuance thereof, none of which rates of interest shall 
12
exceed
that permitted in the Bond Authorization Act.  Interest 
13
may be payable at such times as are  provided for
by the Board.  
14
Bonds and notes issued under this Section may
be issued as 
15
serial or term obligations, shall be of such denomination
or 
16
denominations and form, including interest coupons to be 
17
attached
thereto, be executed in such manner, shall be payable 
18
at such place or
places and bear such date as the Authority 
19
shall fix by the ordinance
authorizing such bond or note and 
20
shall mature at such time or times,
within a period not to 
21
exceed forty years from the date of issue, and
may be 
22
redeemable prior to maturity with or without premium, at the

23
option of the Authority, upon such terms and conditions as the 
24
Authority
shall fix by the ordinance authorizing the issuance 
25
of such bonds or
notes.  No bond anticipation note or any 
26
renewal thereof shall mature at
any time or times exceeding 5 
 


 






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years from the date of the first issuance
of such note.  The 
2
Authority may provide for the registration of bonds or
notes in 
3
the name of the owner as to the principal alone or as to both

4
principal and interest, upon such terms and conditions as the 
5
Authority
may determine.  The ordinance authorizing bonds or 
6
notes may provide for
the exchange of such bonds or notes which 
7
are fully registered, as to
both principal and interest, with 
8
bonds or notes which are registerable
as to principal only.  All 
9
bonds or notes issued under this Section by
the Authority other 
10
than those issued in exchange for property or for
bonds or 
11
notes of the Authority shall be sold at a price which may be at

12
a premium or discount but such that the interest cost 
13
(excluding any
redemption premium) to the Authority of the 
14
proceeds of an issue of such
bonds or notes, computed to stated 
15
maturity according to standard tables
of bond values, shall not 
16
exceed that permitted in the Bond Authorization
Act.  The 
17
Authority shall notify
the
Governor's Office of Management and 
18
Budget and the State Comptroller at least 30 days
before any 
19
bond sale and shall file with the
Governor's Office of 
20
Management and Budget and the
State Comptroller a certified 
21
copy of any ordinance authorizing the issuance
of bonds at or 
22
before the issuance of the bonds.
After December 31, 1994, any 
23
such bonds or notes shall be sold
to the highest and best 
24
bidder on sealed bids as the Authority shall deem.
As such 
25
bonds or notes are to be sold the Authority shall advertise for

26
proposals to purchase the bonds or notes which advertisement 
 


 






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shall be published
at least once in a daily newspaper of 
2
general circulation published in the
metropolitan region at 
3
least 10 days before the time set for the submission
of bids.  
4
The Authority shall have the right to reject any or all bids.

5
Notwithstanding any other provisions of this Section, Working 
6
Cash Notes or
bonds or notes to provide funds for 
7
self-insurance or a joint self-insurance
pool or entity may be 
8
sold either upon competitive bidding or by negotiated
sale

9
(without any requirement of publication of intention to 
10
negotiate the sale
of such Notes), as the Board shall determine 
11
by ordinance adopted with the
affirmative votes of at least 9
 
12
Directors.  In case any officer whose signature
appears on any 
13
bonds, notes or coupons authorized pursuant to this
Section 
14
shall cease to be such officer before delivery of such bonds or

15
notes, such signature shall nevertheless be valid and 
16
sufficient for all
purposes, the same as if such officer had 
17
remained in office until such
delivery. Neither the Directors 
18
of the Authority nor any person
executing any bonds or notes 
19
thereof shall be liable personally on any
such bonds or notes 
20
or coupons by reason of the issuance thereof.
21
    (c) All bonds or notes of the Authority issued pursuant to 
22
this Section
shall be general obligations
of the Authority to 
23
which shall be pledged the full faith and credit of the

24
Authority, as provided in this Section.  Such bonds or notes

25
shall be secured
as provided in the authorizing ordinance, 
26
which may, notwithstanding any other
provision of this Act, 
 


 






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include in addition to any other security, a specific
pledge or 
2
assignment of and lien on or security interest in any or all 
3
tax
receipts of the Authority and on any or all other revenues 
4
or moneys of the
Authority from whatever source, which may by 
5
law be utilized for debt
service purposes and a specific pledge 
6
or assignment of and lien on or security
interest in any funds 
7
or accounts established or provided for by the ordinance
of the 
8
Authority authorizing the issuance of such bonds or notes.  Any 
9
such
pledge, assignment, lien or security interest for the 
10
benefit of holders of
bonds or notes of the Authority shall be 
11
valid and binding from the time the
bonds or notes are issued 
12
without any physical delivery or further act
and shall be valid 
13
and binding as against and prior to the claims of all
other 
14
parties having claims of any kind against the Authority or any 
15
other
person irrespective of whether such other parties have 
16
notice of such pledge,
assignment, lien or security interest.  
17
The obligations of the Authority
incurred pursuant to this 
18
Section shall be superior to and have priority over
any other 
19
obligations of the Authority.
20
    The Authority may provide in the
ordinance authorizing the 
21
issuance of any bonds or notes issued pursuant to
this Section 
22
for the creation of, deposits in, and regulation and 
23
disposition
of sinking fund or reserve accounts relating to 
24
such bonds or notes.  The
ordinance authorizing the issuance of 
25
any bonds or notes pursuant to this
Section may contain 
26
provisions as part of the contract with the holders
of the 
 


 






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bonds or notes, for the creation of a separate fund to provide

2
for the payment of principal and interest on such bonds or 
3
notes
and for the deposit in such fund from any or all the tax 
4
receipts of the
Authority and from any or all such other moneys 
5
or revenues of the
Authority from whatever source which may by 
6
law be utilized for debt
service purposes, all as provided in 
7
such ordinance, of amounts to meet
the debt service 
8
requirements on such bonds or notes, including
principal and 
9
interest, and any sinking fund or reserve fund account

10
requirements as may be provided by such ordinance, and all 
11
expenses
incident to or in connection with such fund and 
12
accounts or the payment
of such bonds or notes.
Such ordinance 
13
may also provide limitations on the issuance of additional

14
bonds or notes of the Authority.  No such bonds or notes of the 
15
Authority
shall constitute a debt of the State of Illinois.  
16
Nothing in this Act shall
be construed to enable the Authority 
17
to impose any ad valorem tax on property.
18
    (d) The ordinance of the Authority authorizing the issuance 
19
of any bonds
or notes may provide additional security for such 
20
bonds or notes by providing
for appointment of a corporate 
21
trustee (which may be any trust company or
bank having the 
22
powers of a trust company within the state) with respect
to 
23
such bonds or notes.  The ordinance shall prescribe the rights, 
24
duties
and powers of the trustee to be exercised for the 
25
benefit of the Authority
and the protection of the holders of 
26
such bonds or notes.  The ordinance
may provide for the trustee 
 


 






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to hold in trust, invest and use amounts in
funds and accounts 
2
created as provided by the ordinance with respect to
the bonds 
3
or notes.  The ordinance may provide for the assignment and 
4
direct
payment to the trustee of any or all amounts produced 
5
from the sources
provided in Section 4.03 and Section 4.09 of 
6
this Act and provided in Section 6z-17 of "An Act
in relation 
7
to State finance", approved June 10, 1919, as amended.
Upon 
8
receipt of notice of any such assignment, the Department of 
9
Revenue and
the Comptroller of the State of Illinois shall 
10
thereafter, notwithstanding the
provisions of Section 4.03 and 
11
Section 4.09 of this Act and Section 6z-17 of "An Act in 
12
relation
to State finance", approved June 10, 1919, as amended, 
13
provide for such
assigned amounts to be paid directly to the 
14
trustee instead of the Authority,
all in accordance with the 
15
terms of the ordinance making the assignment.  The
ordinance 
16
shall provide that
amounts so paid to the trustee which are not 
17
required to be deposited, held
or invested in funds and 
18
accounts created by the ordinance with respect
to bonds or 
19
notes or used for paying bonds or notes to be paid by the 
20
trustee
to the Authority.
21
    (e) Any bonds or notes of the Authority issued pursuant to 
22
this
Section shall constitute a contract between the Authority 
23
and the
holders from time to time of such bonds or notes. In 
24
issuing any bond or
note, the Authority may include in the 
25
ordinance authorizing such issue
a covenant as part of the 
26
contract with the holders of the bonds or
notes, that as long 
 


 






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as such obligations are outstanding, it shall make
such 
2
deposits, as provided in paragraph (c) of this Section. It may 
3
also
so covenant that it shall impose and continue to impose 
4
taxes, as
provided in Section 4.03 of this Act and in addition 
5
thereto as
subsequently authorized by law, sufficient to make 
6
such deposits and pay
the principal and interest and to meet 
7
other debt service requirements
of such bonds or notes as they 
8
become due. A certified copy of the
ordinance authorizing the 
9
issuance of any such obligations shall be
filed at or prior to 
10
the issuance of such obligations with the Comptroller
of the 
11
State of Illinois and the Illinois Department of Revenue.
12
    (f) The State of Illinois pledges to and agrees with the 
13
holders of
the bonds and notes of the Authority issued pursuant 
14
to this Section
that the State will not limit or alter the 
15
rights and powers vested in
the Authority by this Act so as to 
16
impair the terms of any contract made
by the Authority with 
17
such holders or in any way impair the rights and
remedies of 
18
such holders until such bonds and notes, together with
interest 
19
thereon, with interest on any unpaid installments of interest,

20
and all costs and expenses in connection with any action or 
21
proceedings
by or on behalf of such holders, are fully met and 
22
discharged. In
addition, the State pledges to and agrees with 
23
the holders of the bonds
and notes of the Authority issued 
24
pursuant to this Section that the
State will not limit or alter 
25
the basis on which State funds are to be
paid to the Authority 
26
as provided in this Act, or the use of such funds,
so as to 
 


 






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impair the terms of any such contract. The Authority is

2
authorized to include these pledges and agreements of the State 
3
in any
contract with the holders of bonds or notes issued 
4
pursuant to this
Section.
5
    (g) (1) Except as provided in subdivisions (g)(2) and 
6
    (g)(3) of Section
4.04 of this Act, the Authority shall not 
7
    at any time issue, sell or deliver
any bonds or notes 
8
    (other than Working Cash Notes) pursuant to this Section

9
    4.04 which will cause
it to have issued and outstanding at 
10
    any time in excess of $800,000,000 of such
bonds and notes 
11
    (other than Working Cash Notes).
The Authority shall not at 
12
    any time issue, sell, or deliver any Working Cash Notes 
13
    pursuant to this Section that will cause it to have issued 
14
    and outstanding at any time in excess of  $100,000,000.  
15
    However, the Authority may issue, sell, and deliver 
16
    additional Working Cash Notes before July 1, 2012 that are 
17
    over and above and in addition to the $100,000,000 
18
    authorization such that the outstanding amount of these 
19
    additional Working Cash Notes does not exceed at any time 
20
    $300,000,000. Notwithstanding the foregoing, before July 
21
    1, 2009, the Authority may issue, sell, and deliver an 
22
    additional $300,000,000 in Working Cash Notes, provided 
23
    that  any such additional notes shall mature on or before  
24
    June 30, 2011.

Bonds or notes which are being paid or 
25
    retired by
such issuance, sale or delivery of bonds or 
26
    notes, and bonds or notes for
which sufficient funds have 
 


 






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    been deposited with the paying agency of
such bonds or 
2
    notes to provide for payment of principal and interest

3
    thereon or to provide for the redemption thereof, all 
4
    pursuant to the
ordinance authorizing the issuance of such 
5
    bonds or notes, shall not be
considered to be outstanding 
6
    for the purposes of the first two sentences
of this 
7
    subsection.
8
        (2) In addition to the authority provided by paragraphs

9
    (1) and (3), the Authority is authorized to issue, sell and 
10
    deliver bonds
or notes for Strategic Capital Improvement 
11
    Projects approved pursuant to
Section 4.13 as follows:
12
        $100,000,000 is authorized to be issued on or after 
13
    January 1, 1990;
14
        an additional $100,000,000 is authorized to be issued 
15
    on or after
January 1, 1991;
16
        an additional $100,000,000 is authorized to be issued 
17
    on or after
January 1, 1992;
18
        an additional $100,000,000 is authorized to be issued 
19
    on or after
January 1, 1993;
20
        an additional $100,000,000 is authorized to be issued 
21
    on or after
January 1, 1994; and
22
        the aggregate total authorization of bonds and notes 
23
    for Strategic
Capital Improvement Projects as of January 1, 
24
    1994, shall be $500,000,000.
25
        The Authority is also authorized to issue, sell, and 
26
    deliver bonds or
notes in such amounts as are necessary to 
 


 






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    provide for the refunding or advance
refunding of bonds or 
2
    notes issued for Strategic Capital Improvement Projects

3
    under this subdivision (g)(2), provided that no such 
4
    refunding bond or note
shall mature later than the final 
5
    maturity date of the series of bonds or notes
being 
6
    refunded, and provided further that the debt service 
7
    requirements for
such refunding bonds or notes in the 
8
    current or any future fiscal year shall
not exceed the debt 
9
    service requirements for that year on the refunded bonds
or 
10
    notes.
11
        (3) In addition to the authority provided by paragraphs 
12
    (1) and (2),
the Authority is authorized to issue, sell, 
13
    and deliver bonds or notes for
Strategic Capital 
14
    Improvement Projects approved pursuant to Section 4.13 as

15
    follows:
16
        $260,000,000 is authorized to be issued on or after 
17
    January 1, 2000;
18
        an additional $260,000,000 is authorized to be issued 
19
    on or after
January 1, 2001;
20
        an additional $260,000,000 is authorized to be issued 
21
    on or after
January 1, 2002;
22
        an additional $260,000,000 is authorized to be issued 
23
    on or after
January 1, 2003;
24
        an additional $260,000,000 is authorized to be issued 
25
    on or after
January 1, 2004; and
26
        the aggregate total authorization of bonds and notes 
 


 






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    for Strategic
Capital Improvement Projects pursuant to 
2
    this paragraph (3) as of
January 1, 2004 shall be 
3
    $1,300,000,000.
4
        The Authority is also authorized to issue, sell, and 
5
    deliver bonds or notes
in such amounts as are necessary to 
6
    provide for the refunding or advance
refunding of bonds or 
7
    notes issued for Strategic Capital Improvement projects

8
    under this subdivision (g)(3), provided that no such 
9
    refunding bond or note
shall mature later than the final 
10
    maturity date of the series of bonds or notes
being 
11
    refunded, and provided further that the debt service 
12
    requirements for
such refunding bonds or notes in the 
13
    current or any future fiscal year shall
not exceed the debt 
14
    service requirements for that year on the refunded bonds or

15
    notes.
16
    (h) The Authority, subject to the terms of any agreements 
17
with noteholders
or bond holders as may then exist, shall have 
18
power, out of any funds
available therefor, to purchase notes 
19
or bonds of the Authority, which
shall thereupon be cancelled.
20
    (i) In addition to any other authority granted by law, the 
21
State Treasurer
may, with the approval of the Governor, invest 
22
or reinvest, at a price not
to exceed par, any State money in 
23
the State Treasury which is not needed
for current expenditures 
24
due or about to become due in Working Cash Notes.
25
(Source: P.A. 94-793, eff. 5-19-06; 95-708, eff. 1-18-08.)
 

 


 






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    Section 99. Effective date. This Act takes effect upon 
2
becoming law.".