SB2139 98TH GENERAL ASSEMBLY

LRB098 10426 MLW 40631 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2139

Introduced 2/15/2013, by Sen. Pamela J. Althoff - William E. Brady - Sue Rezin - Karen McConnaughay

SYNOPSIS AS INTRODUCED:

30 ILCS 105/8.3

from Ch. 127, par. 144.3

Amends the State Finance Act. Provides that beginning in fiscal year 2014 the Road Fund must spend 40% of its revenue on actual construction and maintenance projects. Allows the Road Fund administrators that fall below this 40% threshold in one year to make additional expenditures in later years so that the three year average equals 40%. Directs the Comptroller to perform an audit of the Road Fund's revenue and expenditures every three years to ensure compliance with this requirement. Provides that if the Comptroller determines the Road Fund has not met its expenditure threshold, it will have its share of the Motor Fuel Sales Tax revenue reduced by 1%, and the State Construction Account Fund will receive the lost funds. Directs the Comptroller to conduct yearly, rather than thrice annual, audits upon determination of a deficiency, and provides that the Road Fund will continue losing shares of the Motor Fuel Sales Tax revenue to the State Construction Account Fund until it makes enough construction and maintenance expenditures to equal previous shortfalls. Provides that if the Road Fund has lost shares of the Motor Fuel Sales Tax revenue, it will regain them at the rate of 1% per year that it meets the 40% expenditure target. Provides that the Comptroller shall return to a three year audit schedule once the Road Fund has reacquired its lost shares of Motor Fuel Sales Tax revenue.

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 State Finance Act is amended by changing Section 8.3 as follows:

(30 ILCS 105/8.3) (from Ch. 127, par. 144.3)

Sec. 8.3. Money in the Road Fund shall, if and when the State of Illinois incurs any bonded indebtedness for the construction of permanent highways, be set aside and used for the purpose of paying and discharging annually the principal and interest on that bonded indebtedness then due and payable, and for no other purpose. The surplus, if any, in the Road Fund after the payment of principal and interest on that bonded indebtedness then annually due shall be used as follows:

first -- to pay the cost of administration of Chapters 2 through 10 of the Illinois Vehicle Code, except the cost of administration of Articles I and II of Chapter 3 of that Code; and

secondly -- for expenses of the Department of Transportation for construction, reconstruction, improvement, repair, maintenance, operation, and administration of highways in accordance with the provisions of laws relating thereto, or for any purpose related or incident to and connected therewith, including the separation of grades of those highways with railroads and with highways and including the payment of awards made by the Illinois Workers' Compensation Commission under the terms of the Workers' Compensation Act or Workers' Occupational Diseases Act for injury or death of an employee of the Division of Highways in the Department of Transportation; or for the acquisition of land and the erection of buildings for highway purposes, including the acquisition of highway right-of-way or for investigations to determine the reasonably anticipated future highway needs; or for making of surveys, plans, specifications and estimates for and in the construction and maintenance of flight strips and of highways necessary to provide access to military and naval reservations, to defense industries and defense-industry sites, and to the sources of raw materials and for replacing existing highways and highway connections shut off from general public use at military and naval reservations and defense-industry sites, or for the purchase of right-of-way, except that the State shall be reimbursed in full for any expense incurred in building the flight strips; or for the operating and maintaining of highway garages; or for patrolling and policing the public highways and conserving the peace; or for the operating expenses of the Department relating to the administration of public transportation programs; or, during fiscal year 2012 only, for the purposes of a grant not to exceed $8,500,000 to the Regional Transportation Authority on behalf of PACE for the purpose of ADA/Para-transit expenses; or, during fiscal year 2013 only, for the purposes of a grant not to exceed $3,825,000 to the Regional Transportation Authority on behalf of PACE for the purpose of ADA/Para-transit expenses; or for any of those purposes or any other purpose that may be provided by law.

Appropriations for any of those purposes are payable from the Road Fund. Appropriations may also be made from the Road Fund for the administrative expenses of any State agency that are related to motor vehicles or arise from the use of motor vehicles.

Beginning with fiscal year 1980 and thereafter, no Road Fund monies shall be appropriated to the following Departments or agencies of State government for administration, grants, or operations; but this limitation is not a restriction upon appropriating for those purposes any Road Fund monies that are eligible for federal reimbursement;

1. Department of Public Health;

2. Department of Transportation, only with respect to subsidies for one-half fare Student Transportation and Reduced Fare for Elderly, except during fiscal year 2012 only when no more than $40,000,000 may be expended and except during fiscal year 2013 only when no more than $17,570,300 may be expended;

3. Department of Central Management Services, except for expenditures incurred for group insurance premiums of appropriate personnel;

4. Judicial Systems and Agencies.

Beginning with fiscal year 1981 and thereafter, no Road Fund monies shall be appropriated to the following Departments or agencies of State government for administration, grants, or operations; but this limitation is not a restriction upon appropriating for those purposes any Road Fund monies that are eligible for federal reimbursement:

1. Department of State Police, except for expenditures with respect to the Division of Operations;

2. Department of Transportation, only with respect to Intercity Rail Subsidies, except during fiscal year 2012 only when no more than $40,000,000 may be expended and except during fiscal year 2013 only when no more than $26,000,000 may be expended, and Rail Freight Services.

Beginning with fiscal year 1982 and thereafter, no Road Fund monies shall be appropriated to the following Departments or agencies of State government for administration, grants, or operations; but this limitation is not a restriction upon appropriating for those purposes any Road Fund monies that are eligible for federal reimbursement: Department of Central Management Services, except for awards made by the Illinois Workers' Compensation Commission under the terms of the Workers' Compensation Act or Workers' Occupational Diseases Act for injury or death of an employee of the Division of Highways in the Department of Transportation.

Beginning with fiscal year 1984 and thereafter, no Road Fund monies shall be appropriated to the following Departments or agencies of State government for administration, grants, or operations; but this limitation is not a restriction upon appropriating for those purposes any Road Fund monies that are eligible for federal reimbursement:

1. Department of State Police, except not more than 40% of the funds appropriated for the Division of Operations;

2. State Officers.

Beginning with fiscal year 1984 and thereafter, no Road Fund monies shall be appropriated to any Department or agency of State government for administration, grants, or operations except as provided hereafter; but this limitation is not a restriction upon appropriating for those purposes any Road Fund monies that are eligible for federal reimbursement. It shall not be lawful to circumvent the above appropriation limitations by governmental reorganization or other methods. Appropriations shall be made from the Road Fund only in accordance with the provisions of this Section.

Money in the Road Fund shall, if and when the State of Illinois incurs any bonded indebtedness for the construction of permanent highways, be set aside and used for the purpose of paying and discharging during each fiscal year the principal and interest on that bonded indebtedness as it becomes due and payable as provided in the Transportation Bond Act, and for no other purpose. The surplus, if any, in the Road Fund after the payment of principal and interest on that bonded indebtedness then annually due shall be used as follows:

first -- to pay the cost of administration of Chapters 2 through 10 of the Illinois Vehicle Code; and

secondly -- no Road Fund monies derived from fees, excises, or license taxes relating to registration, operation and use of vehicles on public highways or to fuels used for the propulsion of those vehicles, shall be appropriated or expended other than for costs of administering the laws imposing those fees, excises, and license taxes, statutory refunds and adjustments allowed thereunder, administrative costs of the Department of Transportation, including, but not limited to, the operating expenses of the Department relating to the administration of public transportation programs, payment of debts and liabilities incurred in construction and reconstruction of public highways and bridges, acquisition of rights-of-way for and the cost of construction, reconstruction, maintenance, repair, and operation of public highways and bridges under the direction and supervision of the State, political subdivision, or municipality collecting those monies, or during fiscal year 2012 only for the purposes of a grant not to exceed $8,500,000 to the Regional Transportation Authority on behalf of PACE for the purpose of ADA/Para-transit expenses, and the costs for patrolling and policing the public highways (by State, political subdivision, or municipality collecting that money) for enforcement of traffic laws. The separation of grades of such highways with railroads and costs associated with protection of at-grade highway and railroad crossing shall also be permissible.

Appropriations for any of such purposes are payable from the Road Fund or the Grade Crossing Protection Fund as provided in Section 8 of the Motor Fuel Tax Law.

Except as provided in this paragraph, beginning with fiscal year 1991 and thereafter, no Road Fund monies shall be appropriated to the Department of State Police for the purposes of this Section in excess of its total fiscal year 1990 Road Fund appropriations for those purposes unless otherwise provided in Section 5g of this Act. For fiscal years 2003, 2004, 2005, 2006, and 2007 only, no Road Fund monies shall be appropriated to the Department of State Police for the purposes of this Section in excess of $97,310,000. For fiscal year 2008 only, no Road Fund monies shall be appropriated to the Department of State Police for the purposes of this Section in excess of $106,100,000. For fiscal year 2009 only, no Road Fund monies shall be appropriated to the Department of State Police for the purposes of this Section in excess of $114,700,000. Beginning in fiscal year 2010, no road fund moneys shall be appropriated to the Department of State Police. It shall not be lawful to circumvent this limitation on appropriations by governmental reorganization or other methods unless otherwise provided in Section 5g of this Act.

In fiscal year 1994, no Road Fund monies shall be appropriated to the Secretary of State for the purposes of this Section in excess of the total fiscal year 1991 Road Fund appropriations to the Secretary of State for those purposes, plus $9,800,000. It shall not be lawful to circumvent this limitation on appropriations by governmental reorganization or other method.

Beginning with fiscal year 1995 and thereafter, no Road Fund monies shall be appropriated to the Secretary of State for the purposes of this Section in excess of the total fiscal year 1994 Road Fund appropriations to the Secretary of State for those purposes. It shall not be lawful to circumvent this limitation on appropriations by governmental reorganization or other methods.

Beginning with fiscal year 2000, total Road Fund appropriations to the Secretary of State for the purposes of this Section shall not exceed the amounts specified for the following fiscal years:

For fiscal year 2010, no road fund moneys shall be appropriated to the Secretary of State.

Beginning in fiscal year 2011, moneys in the Road Fund shall be appropriated to the Secretary of State for the exclusive purpose of paying refunds due to overpayment of fees related to Chapter 3 of the Illinois Vehicle Code unless otherwise provided for by law.

Beginning in fiscal year 2014, at least 40% of all Road Fund revenue shall be appropriated for construction, reconstruction, improvement, repair, and maintenance of highways and bridges in accordance with the laws of this State. Beginning in fiscal year 2017, and at the conclusion of every third fiscal year thereafter, the Comptroller shall audit the Road Fund to determine the amount of total revenue deposited into the Road Fund during the past three fiscal years. After determining the total revenue for the past three fiscal years, the Comptroller shall determine what percentage of this total revenue was expended for the purpose of construction, reconstruction, improvement, repair, and maintenance of highways and bridges in accordance with the laws of this State. The Comptroller shall report his or her findings to the General Assembly, and in the event that the total expenditure on construction and maintenance projects over the past three fiscal years is less than 40% of the total revenue deposited in the Road Fund during that time, the percentage of revenue generated by the Motor Fuel Sales Tax that is divided between the Road Fund and the State Construction Account Fund as provided in subsection (e) of Section 8 of the Motor Fuel Tax Law shall be adjusted so that the Road Fund's share shall be reduced by 1% and the State Construction Account Fund's share shall be increased by 1%. In the fiscal year subsequent to a shortfall, the Road Fund shall appropriate additional expenditures for construction and maintenance projects equal to the amount by which the Road Fund missed the 40% target over the past three fiscal years, and the Comptroller shall perform an additional audit for that year to ensure the shortfall is remedied. If this expenditure is not made, the percentage of revenue generated by the Motor Fuel Sales Tax that is divided between the Road Fund and the State Construction Account Fund as provided in subsection (e) of Section 8 of the Motor Fuel Tax Law shall be adjusted so that the Road Fund's share shall be reduced by 1% and the State Construction Account Fund's share shall be increased by 1%. This additional expenditure and audit requirement, with its attendant readjustment of Motor Fuel Sales Tax revenue deposits, shall continue every fiscal year until the Road Fund has satisfied all previous shortfalls. Once the Road Fund has satisfied all previous shortfalls, the percentage of revenue generated by the Motor Fuel Sales Tax that is divided between the Road Fund and the State Construction Account Fund as provided in subsection (e) of Section 8 of the Motor Fuel Tax Law shall be adjusted so that the Road Fund's share shall be increased by 1% and the State Construction Account Fund's share shall be reduced by 1%. The Comptroller shall continue to perform a yearly audit of the Road Fund to monitor compliance with the 40% construction and maintenance expenditure requirement. For every year that the target expenditure is met the percentage of revenue generated by the Motor Fuel Sales Tax that is divided between the Road Fund and the State Construction Account Fund as provided in subsection (e) of Section 8 of the Motor Fuel Tax Law shall be adjusted so that the Road Fund's share shall be increased by 1%, up to its statutory maximum, and the State Construction Account Fund's share shall be reduced by 1%, down to its statutory minimum. Once the Road Fund's share of Motor Fuel Sales Tax revenue has returned to its statutory maximum, the Comptroller shall cease performing yearly audits of the Road Fund and return to performing an audit every three years as detailed in this paragraph.

It shall not be lawful to circumvent this limitation on appropriations by governmental reorganization or other methods.

No new program may be initiated in fiscal year 1991 and thereafter that is not consistent with the limitations imposed by this Section for fiscal year 1984 and thereafter, insofar as appropriation of Road Fund monies is concerned.

Nothing in this Section prohibits transfers from the Road Fund to the State Construction Account Fund under Section 5e of this Act; nor to the General Revenue Fund, as authorized by this amendatory Act of the 93rd General Assembly.

The additional amounts authorized for expenditure in this Section by Public Acts 92-0600, 93-0025, 93-0839, and 94-91 shall be repaid to the Road Fund from the General Revenue Fund in the next succeeding fiscal year that the General Revenue Fund has a positive budgetary balance, as determined by generally accepted accounting principles applicable to government.

The additional amounts authorized for expenditure by the Secretary of State and the Department of State Police in this Section by this amendatory Act of the 94th General Assembly shall be repaid to the Road Fund from the General Revenue Fund in the next succeeding fiscal year that the General Revenue Fund has a positive budgetary balance, as determined by generally accepted accounting principles applicable to government.

(Source: P.A. 96-34, eff. 7-13-09; 96-959, eff. 7-1-10; 97-72, eff. 7-1-11; 97-732, eff. 6-30-12.)