98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5752

 

Introduced , by Rep. Michael W. Tryon

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 3615/4.01  from Ch. 111 2/3, par. 704.01

    Amends the Regional Transportation Authority Act. Requires each Service Board to furnish to the Board access to its financial information systems and other documents, papers or records that the Board may from time to time require, including, but not limited to, audits and draft reports. Provides that the Board may examine the financial information systems and other documents, papers, or records, and the Service Board shall comply with any such request made by the Board within 30 days or an extended time provided by the Board.


LRB098 20227 JLK 55578 b

 

 

A BILL FOR

 

HB5752LRB098 20227 JLK 55578 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Regional Transportation Authority Act is
5amended by changing Section 4.01 as follows:
 
6    (70 ILCS 3615/4.01)  (from Ch. 111 2/3, par. 704.01)
7    Sec. 4.01. Budget and Program.
8    (a) The Board shall control the finances of the Authority.
9It shall by ordinance adopted by the affirmative vote of at
10least 12 of its then Directors (i) appropriate money to perform
11the Authority's purposes and provide for payment of debts and
12expenses of the Authority, (ii) take action with respect to the
13budget and two-year financial plan of each Service Board, as
14provided in Section 4.11, and (iii) adopt an Annual Budget and
15Two-Year Financial Plan for the Authority that includes the
16annual budget and two-year financial plan of each Service Board
17that has been approved by the Authority. The Annual Budget and
18Two-Year Financial Plan shall contain a statement of the funds
19estimated to be on hand for the Authority and each Service
20Board at the beginning of the fiscal year, the funds estimated
21to be received from all sources for such year, the estimated
22expenses and obligations of the Authority and each Service
23Board for all purposes, including expenses for contributions to

 

 

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1be made with respect to pension and other employee benefits,
2and the funds estimated to be on hand at the end of such year.
3The fiscal year of the Authority and each Service Board shall
4begin on January 1st and end on the succeeding December 31st.
5By July 1st of each year the Director of the Illinois
6Governor's Office of Management and Budget (formerly Bureau of
7the Budget) shall submit to the Authority an estimate of
8revenues for the next fiscal year of the Authority to be
9collected from the taxes imposed by the Authority and the
10amounts to be available in the Public Transportation Fund and
11the Regional Transportation Authority Occupation and Use Tax
12Replacement Fund and the amounts otherwise to be appropriated
13by the State to the Authority for its purposes. The Authority
14shall file a copy of its Annual Budget and Two-Year Financial
15Plan with the General Assembly and the Governor after its
16adoption. Before the proposed Annual Budget and Two-Year
17Financial Plan is adopted, the Authority shall hold at least
18one public hearing thereon in the metropolitan region, and
19shall meet with the county board or its designee of each of the
20several counties in the metropolitan region. After conducting
21such hearings and holding such meetings and after making such
22changes in the proposed Annual Budget and Two-Year Financial
23Plan as the Board deems appropriate, the Board shall adopt its
24annual appropriation and Annual Budget and Two-Year Financial
25Plan ordinance. The ordinance may be adopted only upon the
26affirmative votes of 12 of its then Directors. The ordinance

 

 

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1shall appropriate such sums of money as are deemed necessary to
2defray all necessary expenses and obligations of the Authority,
3specifying purposes and the objects or programs for which
4appropriations are made and the amount appropriated for each
5object or program. Additional appropriations, transfers
6between items and other changes in such ordinance may be made
7from time to time by the Board upon the affirmative votes of 12
8of its then Directors.
9    (b) The Annual Budget and Two-Year Financial Plan shall
10show a balance between anticipated revenues from all sources
11and anticipated expenses including funding of operating
12deficits or the discharge of encumbrances incurred in prior
13periods and payment of principal and interest when due, and
14shall show cash balances sufficient to pay with reasonable
15promptness all obligations and expenses as incurred.
16    The Annual Budget and Two-Year Financial Plan must show:
17         (i) that the level of fares and charges for mass
18    transportation provided by, or under grant or purchase of
19    service contracts of, the Service Boards is sufficient to
20    cause the aggregate of all projected fare revenues from
21    such fares and charges received in each fiscal year to
22    equal at least 50% of the aggregate costs of providing such
23    public transportation in such fiscal year. "Fare revenues"
24    include the proceeds of all fares and charges for services
25    provided, contributions received in connection with public
26    transportation from units of local government other than

 

 

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1    the Authority, except for contributions received by the
2    Chicago Transit Authority from a real estate transfer tax
3    imposed under subsection (i) of Section 8-3-19 of the
4    Illinois Municipal Code, and from the State pursuant to
5    subsection (i) of Section 2705-305 of the Department of
6    Transportation Law (20 ILCS 2705/2705-305), and all other
7    operating revenues properly included consistent with
8    generally accepted accounting principles but do not
9    include: the proceeds of any borrowings, and, beginning
10    with the 2007 fiscal year, all revenues and receipts,
11    including but not limited to fares and grants received from
12    the federal, State or any unit of local government or other
13    entity, derived from providing ADA paratransit service
14    pursuant to Section 2.30 of the Regional Transportation
15    Authority Act. "Costs" include all items properly included
16    as operating costs consistent with generally accepted
17    accounting principles, including administrative costs, but
18    do not include: depreciation; payment of principal and
19    interest on bonds, notes or other evidences of obligation
20    for borrowed money issued by the Authority; payments with
21    respect to public transportation facilities made pursuant
22    to subsection (b) of Section 2.20 of this Act; any payments
23    with respect to rate protection contracts, credit
24    enhancements or liquidity agreements made under Section
25    4.14; any other cost to which it is reasonably expected
26    that a cash expenditure will not be made; costs for

 

 

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1    passenger security including grants, contracts, personnel,
2    equipment and administrative expenses, except in the case
3    of the Chicago Transit Authority, in which case the term
4    does not include costs spent annually by that entity for
5    protection against crime as required by Section 27a of the
6    Metropolitan Transit Authority Act; the payment by the
7    Chicago Transit Authority of Debt Service, as defined in
8    Section 12c of the Metropolitan Transit Authority Act, on
9    bonds or notes issued pursuant to that Section; the payment
10    by the Commuter Rail Division of debt service on bonds
11    issued pursuant to Section 3B.09; expenses incurred by the
12    Suburban Bus Division for the cost of new public
13    transportation services funded from grants pursuant to
14    Section 2.01e of this amendatory Act of the 95th General
15    Assembly for a period of 2 years from the date of
16    initiation of each such service; costs as exempted by the
17    Board for projects pursuant to Section 2.09 of this Act;
18    or, beginning with the 2007 fiscal year, expenses related
19    to providing ADA paratransit service pursuant to Section
20    2.30 of the Regional Transportation Authority Act; and in
21    fiscal years 2008 through 2012 inclusive, costs in the
22    amount of $200,000,000 in fiscal year 2008, reducing by
23    $40,000,000 in each fiscal year thereafter until this
24    exemption is eliminated; and
25        (ii) that the level of fares charged for ADA
26    paratransit services is sufficient to cause the aggregate

 

 

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1    of all projected revenues from such fares charged and
2    received in each fiscal year to equal at least 10% of the
3    aggregate costs of providing such ADA paratransit
4    services. For purposes of this Act, the percentages in this
5    subsection (b)(ii) shall be referred to as the "system
6    generated ADA paratransit services revenue recovery
7    ratio". For purposes of the system generated ADA
8    paratransit services revenue recovery ratio, "costs" shall
9    include all items properly included as operating costs
10    consistent with generally accepted accounting principles.
11    However, the Board may exclude from costs an amount that
12    does not exceed the allowable "capital costs of
13    contracting" for ADA paratransit services pursuant to the
14    Federal Transit Administration guidelines for the
15    Urbanized Area Formula Program.
16    (c) The actual administrative expenses of the Authority for
17the fiscal year commencing January 1, 1985 may not exceed
18$5,000,000. The actual administrative expenses of the
19Authority for the fiscal year commencing January 1, 1986, and
20for each fiscal year thereafter shall not exceed the maximum
21administrative expenses for the previous fiscal year plus 5%.
22"Administrative expenses" are defined for purposes of this
23Section as all expenses except: (1) capital expenses and
24purchases of the Authority on behalf of the Service Boards; (2)
25payments to Service Boards; and (3) payment of principal and
26interest on bonds, notes or other evidence of obligation for

 

 

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1borrowed money issued by the Authority; (4) costs for passenger
2security including grants, contracts, personnel, equipment and
3administrative expenses; (5) payments with respect to public
4transportation facilities made pursuant to subsection (b) of
5Section 2.20 of this Act; and (6) any payments with respect to
6rate protection contracts, credit enhancements or liquidity
7agreements made pursuant to Section 4.14.
8    (d) This subsection applies only until the Department
9begins administering and enforcing an increased tax under
10Section 4.03(m) as authorized by this amendatory Act of the
1195th General Assembly. After withholding 15% of the proceeds of
12any tax imposed by the Authority and 15% of money received by
13the Authority from the Regional Transportation Authority
14Occupation and Use Tax Replacement Fund, the Board shall
15allocate the proceeds and money remaining to the Service Boards
16as follows: (1) an amount equal to 85% of the proceeds of those
17taxes collected within the City of Chicago and 85% of the money
18received by the Authority on account of transfers to the
19Regional Transportation Authority Occupation and Use Tax
20Replacement Fund from the County and Mass Transit District Fund
21attributable to retail sales within the City of Chicago shall
22be allocated to the Chicago Transit Authority; (2) an amount
23equal to 85% of the proceeds of those taxes collected within
24Cook County outside the City of Chicago and 85% of the money
25received by the Authority on account of transfers to the
26Regional Transportation Authority Occupation and Use Tax

 

 

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1Replacement Fund from the County and Mass Transit District Fund
2attributable to retail sales within Cook County outside of the
3city of Chicago shall be allocated 30% to the Chicago Transit
4Authority, 55% to the Commuter Rail Board and 15% to the
5Suburban Bus Board; and (3) an amount equal to 85% of the
6proceeds of the taxes collected within the Counties of DuPage,
7Kane, Lake, McHenry and Will shall be allocated 70% to the
8Commuter Rail Board and 30% to the Suburban Bus Board.
9    (e) This subsection applies only until the Department
10begins administering and enforcing an increased tax under
11Section 4.03(m) as authorized by this amendatory Act of the
1295th General Assembly. Moneys received by the Authority on
13account of transfers to the Regional Transportation Authority
14Occupation and Use Tax Replacement Fund from the State and
15Local Sales Tax Reform Fund shall be allocated among the
16Authority and the Service Boards as follows: 15% of such moneys
17shall be retained by the Authority and the remaining 85% shall
18be transferred to the Service Boards as soon as may be
19practicable after the Authority receives payment. Moneys which
20are distributable to the Service Boards pursuant to the
21preceding sentence shall be allocated among the Service Boards
22on the basis of each Service Board's distribution ratio. The
23term "distribution ratio" means, for purposes of this
24subsection (e) of this Section 4.01, the ratio of the total
25amount distributed to a Service Board pursuant to subsection
26(d) of Section 4.01 for the immediately preceding calendar year

 

 

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1to the total amount distributed to all of the Service Boards
2pursuant to subsection (d) of Section 4.01 for the immediately
3preceding calendar year.
4    (f) To carry out its duties and responsibilities under this
5Act, the Board shall employ staff which shall: (1) propose for
6adoption by the Board of the Authority rules for the Service
7Boards that establish (i) forms and schedules to be used and
8information required to be provided with respect to a five-year
9capital program, annual budgets, and two-year financial plans
10and regular reporting of actual results against adopted budgets
11and financial plans, (ii) financial practices to be followed in
12the budgeting and expenditure of public funds, (iii)
13assumptions and projections that must be followed in preparing
14and submitting its annual budget and two-year financial plan or
15a five-year capital program; (2) evaluate for the Board public
16transportation programs operated or proposed by the Service
17Boards and transportation agencies in terms of the goals and
18objectives set out in the Strategic Plan; (3) keep the Board
19and the public informed of the extent to which the Service
20Boards and transportation agencies are meeting the goals and
21objectives adopted by the Authority in the Strategic Plan; and
22(4) assess the efficiency or adequacy of public transportation
23services provided by a Service Board and make recommendations
24for change in that service to the end that the moneys available
25to the Authority may be expended in the most economical manner
26possible with the least possible duplication.

 

 

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1    (g) All Service Boards, transportation agencies,
2comprehensive planning agencies, including the Chicago
3Metropolitan Agency for Planning, or transportation planning
4agencies in the metropolitan region shall furnish to the
5Authority such information pertaining to public transportation
6or relevant for plans therefor as it may from time to time
7require. The Executive Director, or his or her designee, shall,
8for the purpose of securing any such information necessary or
9appropriate to carry out any of the powers and responsibilities
10of the Authority under this Act, have access to, and the right
11to examine, all books, documents, papers or records of a
12Service Board or any transportation agency receiving funds from
13the Authority or Service Board, and such Service Board or
14transportation agency shall comply with any request by the
15Executive Director, or his or her designee, within 30 days or
16an extended time provided by the Executive Director.
17    (h) No Service Board shall undertake any capital
18improvement which is not identified in the Five-Year Capital
19Program.
20    (i) Each Service Board shall furnish to the Board access to
21its financial information systems and other documents, papers
22or records that the Board may from time to time require,
23including, but not limited to, audits and draft reports. The
24Board may examine the financial information systems and other
25documents, papers, or records, and the Service Board shall
26comply with any request made by the Board under this subsection

 

 

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1(i) within 30 days or an extended time provided by the Board.
2(Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08;
395-906, eff. 8-26-08.)