99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3127

 

Introduced , by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 740/2-2.02  from Ch. 111 2/3, par. 662.02
30 ILCS 740/2-2.04  from Ch. 111 2/3, par. 662.04
30 ILCS 740/2-14  from Ch. 111 2/3, par. 674
30 ILCS 740/2-15  from Ch. 111 2/3, par. 675.1
30 ILCS 740/3-1.02  from Ch. 111 2/3, par. 683

    Amends the Downstate Public Transportation Act. Changes the definition of "participant" and "eligible operating expenses". Removes provisions concerning eligible operating expenses with respect to participants other than any Metro East Transit district participant and those receiving federal research development funds. Provides that any procurement by a participant on a project for which the participant will be requesting operating reimbursement of the debt service shall not be subject to the Department's procurement process, but shall be subject to a locally-approved procurement process. Effective immediately.


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A BILL FOR

 

HB3127LRB099 08394 SXM 28546 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Downstate Public Transportation Act is
5amended by changing Sections 2-2.02, 2-2.04, 2-14, 2-15, and
63-1.02 as follows:
 
7    (30 ILCS 740/2-2.02)  (from Ch. 111 2/3, par. 662.02)
8    Sec. 2-2.02. "Participant" means:
9    (1) a city, village, or incorporated town, a county, a
10county acting as the primary participant on behalf of entities
11bound by an intergovernmental agreement or a local mass transit
12district organized under the Local Mass Transit District Act
13(a) serving an urbanized area of over 50,000 population or (b)
14serving a nonurbanized area; or
15    (2) any Metro-East Transit District established pursuant
16to Section 3 of the Local Mass Transit District Act and serving
17one or more of the Counties of Madison, Monroe, and St. Clair
18during Fiscal Year 1989, all located outside the boundaries of
19the Regional Transportation Authority as established pursuant
20to the Regional Transportation Authority Act.
21(Source: P.A. 94-70, eff. 6-22-05.)
 
22    (30 ILCS 740/2-2.04)  (from Ch. 111 2/3, par. 662.04)

 

 

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1    Sec. 2-2.04. "Eligible operating expenses" means all
2expenses required for public transportation, including
3employee wages and benefits, materials, fuels, supplies,
4rental of facilities, taxes other than income taxes, any
5payment made for debt service (including principal and
6interest) by all participants on publicly owned equipment or
7facilities, payment made to the Illinois municipal Retirement
8Fund on unfunded pension liability, and any other expenditure
9which is an operating expense according to standard accounting
10practices for the providing of public transportation. Eligible
11operating expenses shall not include allowances: (a) for
12depreciation whether funded or unfunded; (b) for amortization
13of any intangible costs; (c) for debt service on capital
14acquired with the assistance of capital grant funds provided by
15the State of Illinois; (d) for profits or return on investment;
16(e) for excessive payment to associated entities; (f) for
17Comprehensive Employment Training Act expenses; (g) (blank);
18for costs reimbursed under Sections 6 and 8 of the "Urban Mass
19Transportation Act of 1964", as amended; (h) for entertainment
20expenses; (i) for charter expenses; (j) for fines and
21penalties; (k) for charitable donations; (l) for interest
22expense on long term borrowing and debt retirement other than
23on publicly owned equipment or facilities; (m) for income
24taxes; or (n) for such other expenses as the Department may
25determine consistent with federal Department of Transportation
26regulations or requirements. In consultation with

 

 

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1participants, the Department shall, by October 2008,
2promulgate or update rules, pursuant to the Illinois
3Administrative Procedure Act, concerning eligible expenses to
4ensure consistent application of the Act, and the Department
5shall provide written copies of those rules to all eligible
6recipients. The Department shall review this process in the
7same manner no less frequently than every 5 years.
8    With respect to participants other than any Metro-East
9Transit District participant and those receiving federal
10research development and demonstration funds pursuant to
11Section 6 of the "Urban Mass Transportation Act of 1964", as
12amended, during the fiscal year ending June 30, 1979, the
13maximum eligible operating expenses for any such participant in
14any fiscal year after Fiscal Year 1980 shall be the amount
15appropriated for such participant for the fiscal year ending
16June 30, 1980, plus in each year a 10% increase over the
17maximum established for the preceding fiscal year. For Fiscal
18Year 1980 the maximum eligible operating expenses for any such
19participant shall be the amount of projected operating expenses
20upon which the appropriation for such participant for Fiscal
21Year 1980 is based.
22    With respect to participants receiving federal research
23development and demonstration operating assistance funds for
24operating assistance pursuant to Section 6 of the "Urban Mass
25Transportation Act of 1964", as amended, during the fiscal year
26ending June 30, 1979, the maximum eligible operating expenses

 

 

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1for any such participant in any fiscal year after Fiscal Year
21980 shall not exceed such participant's eligible operating
3expenses for the fiscal year ending June 30, 1980, plus in each
4year a 10% increase over the maximum established for the
5preceding fiscal year. For Fiscal Year 1980, the maximum
6eligible operating expenses for any such participant shall be
7the eligible operating expenses incurred during such fiscal
8year, or projected operating expenses upon which the
9appropriation for such participant for the Fiscal Year 1980 is
10based; whichever is less.
11    With respect to all participants other than any Metro-East
12Transit District participant, the maximum eligible operating
13expenses for any such participant in any fiscal year after
14Fiscal Year 1985 (except Fiscal Year 2008 and Fiscal Year 2009)
15shall be the amount appropriated for such participant for the
16fiscal year ending June 30, 1985, plus in each year a 10%
17increase over the maximum established for the preceding year.
18For Fiscal Year 1985, the maximum eligible operating expenses
19for any such participant shall be the amount of projected
20operating expenses upon which the appropriation for such
21participant for Fiscal Year 1985 is based.
22    With respect to any mass transit district participant that
23has increased its district boundaries by annexing counties
24since 1998 and is maintaining a level of local financial
25support, including all income and revenues, equal to or greater
26than the level in the State fiscal year ending June 30, 2001,

 

 

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1the maximum eligible operating expenses for any State fiscal
2year after 2002 (except State fiscal years 2006 through 2009)
3shall be the amount appropriated for that participant for the
4State fiscal year ending June 30, 2002, plus, in each State
5fiscal year, a 10% increase over the preceding State fiscal
6year. For State fiscal year 2002, the maximum eligible
7operating expenses for any such participant shall be the amount
8of projected operating expenses upon which the appropriation
9for that participant for State fiscal year 2002 is based. For
10that participant, eligible operating expenses for State fiscal
11year 2002 in excess of the eligible operating expenses for the
12State fiscal year ending June 30, 2001, plus 10%, must be
13attributed to the provision of services in the newly annexed
14counties.
15    With respect to a participant that receives an initial
16appropriation in State fiscal year 2002 or thereafter, the
17maximum eligible operating expenses for any State fiscal year
18after 2003 (except State fiscal years 2006 through 2009) shall
19be the amount appropriated for that participant for the State
20fiscal year in which it received its initial appropriation,
21plus, in each year, a 10% increase over the preceding year. For
22the initial State fiscal year in which a participant received
23an appropriation, the maximum eligible operating expenses for
24any such participant shall be the amount of projected operating
25expenses upon which the appropriation for that participant for
26that State fiscal year is based.

 

 

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1    With respect to the District serving primarily the counties
2of Monroe and St. Clair, beginning July 1, 2005, the St. Clair
3County Transit District shall no longer be included for new
4appropriation funding purposes as part of the Metro-East Public
5Transportation Fund and instead shall be included for new
6appropriation funding purposes as part of the Downstate Public
7Transportation Fund; provided, however, that nothing herein
8shall alter the eligibility of that District for previously
9appropriated funds to which it would otherwise be entitled.
10    With respect to the District serving primarily Madison
11County, beginning July 1, 2008, the Madison County Transit
12District shall no longer be included for new appropriation
13funding purposes as part of the Metro-East Public
14Transportation Fund and instead shall be included for new
15appropriation funding purposes as part of the Downstate Public
16Transportation Fund; provided, however, that nothing herein
17shall alter the eligibility of that District for previously
18appropriated funds to which it would otherwise be entitled.
19    With respect to the fiscal year beginning July 1, 2007, and
20thereafter, the following shall be included for new
21appropriation funding purposes as part of the Downstate Public
22Transportation Fund: Bond County; Bureau County; Coles County;
23Edgar County; Stephenson County and the City of Freeport; Henry
24County; Jo Daviess County; Kankakee and McLean Counties; Peoria
25County; Piatt County; Shelby County; Tazewell and Woodford
26Counties; Vermilion County; Williamson County; and Kendall

 

 

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1County.
2(Source: P.A. 94-70, eff. 6-22-05; 95-708, eff. 1-18-08.)
 
3    (30 ILCS 740/2-14)  (from Ch. 111 2/3, par. 674)
4    Sec. 2-14. Grants. (a) Upon a determination by the
5Department that any initial or amended program of proposed
6expenditures is in compliance with the provisions of this Act,
7and upon approval thereof, the Department shall enter into one
8or more grant agreements with and shall make grants to that
9participant as necessary to implement the adopted program of
10expenditures.
11    (b) All grants by the Department pursuant to this Act shall
12be administered upon such conditions as the Secretary of
13Transportation shall determine, consistent with the provisions
14and purpose of this Act.
15    (c) Any procurement by a participant on a project for which
16the participant will be requesting operating reimbursement of
17the debt service pursuant to this Act, shall not be subject to
18the Department's procurement process, but shall be subject to a
19locally-approved procurement process that complies with all
20federal procurement standards.
21(Source: P.A. 82-783.)
 
22    (30 ILCS 740/2-15)  (from Ch. 111 2/3, par. 675.1)
23    Sec. 2-15. Residual fund balance.
24    (a) Except as otherwise provided in this Section, all funds

 

 

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1which remain in the Downstate Public Transportation Fund or the
2Metro-East Public Transportation Fund after the payment of the
3fourth quarterly payment to participants other than Metro-East
4Transit District participants and the last monthly payment to
5Metro-East Transit participants in each fiscal year shall be
6transferred (i) to the General Revenue Fund through fiscal year
72008 and (ii) to the Downstate Transit Improvement Fund for
8fiscal year 2009 and each fiscal year thereafter. Transfers
9shall be made no later than 90 days following the end of such
10fiscal year. Beginning fiscal year 2010, all moneys each year
11in the Downstate Transit Improvement Fund, shall be held solely
12for the benefit of the participants in the Downstate Public
13Transportation Fund and shall be appropriated solely to the
14Department to make competitive capital grants to the
15participants of the respective funds and for no other purpose.
16However, such amount as the Department determines to be
17necessary for (1) allocation to participants for the purposes
18of Section 2-7 for the first quarter of the succeeding fiscal
19year and (2) an amount equal to 2% of the total allocations to
20participants in the fiscal year just ended to be used for the
21purpose of audit adjustments shall be retained in such Funds to
22be used by the Department for such purposes.
23    (b) Notwithstanding any other provision of law, in addition
24to any other transfers that may be provided by law, on July 1,
252011, or as soon thereafter as practical, the State Comptroller
26shall direct and the State Treasurer shall transfer the

 

 

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1remaining balance from the Metro East Public Transportation
2Fund into the General Revenue Fund. Upon completion of the
3transfers, the Metro East Public Transportation Fund is
4dissolved, and any future deposits due to that Fund and any
5outstanding obligations or liabilities of that Fund pass to the
6General Revenue Fund.
7(Source: P.A. 97-72, eff. 7-1-11.)
 
8    (30 ILCS 740/3-1.02)  (from Ch. 111 2/3, par. 683)
9    Sec. 3-1.02. "Participant" means any county or county
10acting as the primary participant on behalf of entities bound
11by an intergovernmental agreement located outside the
12boundaries of the Regional Transportation Authority as
13established under the Regional Transportation Authority Act
14and outside the Bi-State Metropolitan Development District
15established under an Act approved July 26, 1949, except that
16beginning, July 1, 1987 the counties within the boundaries of
17the Bi-State Metropolitan Development District may be eligible
18for capital assistance only, or within such county any
19municipality with 20,000 or more population that is not
20included in an urbanized area or the boundaries of a local mass
21transit district; or within such county any municipality with
2220,000 or less population receiving State mass transportation
23operating assistance under the Downstate Public Transportation
24Act during Fiscal Year 1979; or within such county or counties
25a local mass transit district organized under the local Mass

 

 

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1Transit District Act which is not included in an urbanized area
2or the boundaries of a local mass transit district which
3includes an urbanized area; provided, however, that no such
4entity shall be eligible to participate unless it agrees to
5adhere to the regulations and requirements of the Secretary of
6Transportation of the federal Department of Transportation
7affecting Section 18 assistance or any other conditions as
8deemed reasonable and necessary by the Illinois Department of
9Transportation.
10(Source: P.A. 87-1235.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.