99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1719

 

Introduced 2/20/2015, by Sen. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 3610/5  from Ch. 111 2/3, par. 355

    Amends the Local Mass Transit District Act. Provides that the Board of Trustees of every District shall have the authority to provide for insurance against any risk, hazard, or liability (rather than just any risk or hazard). Requires the Board of Trustees to provide for uninsured and underinsured motorist coverage.


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A BILL FOR

 

SB1719LRB099 07547 AWJ 31054 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 Local Mass Transit District Act is amended
5by changing Section 5 as follows:
 
6    (70 ILCS 3610/5)  (from Ch. 111 2/3, par. 355)
7    Sec. 5. (a) The Board of Trustees of every District may
8establish or acquire any or all manner of mass transit
9facility. The Board may engage in the business of
10transportation of passengers on scheduled routes and by
11contract on nonscheduled routes within the territorial limits
12of the counties or municipalities creating the District, by
13whatever means it may decide. Its routes may be extended beyond
14such territorial limits with the consent of the governing
15bodies of the municipalities or counties into which such
16operation is extended.
17    (b) The Board of Trustees of every District may for the
18purposes of the District, acquire by gift, purchase, lease,
19legacy, condemnation, or otherwise and hold, use, improve,
20maintain, operate, own, manage or lease, as lessor or lessee,
21such cars, buses, equipment, buildings, structures, real and
22personal property, and interests therein, and services, lands
23for terminal and other related facilities, improvements and

 

 

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1services, or any interest therein, including all or any part of
2the plant, land, buildings, equipment, vehicles, licenses,
3franchises, patents, property, service contracts and
4agreements of every kind and nature. Real property may be so
5acquired if it is situated within or partially within the area
6served by the District or if it is outside the area if it is
7desirable or necessary for the purposes of the District.
8    (c) The Board of Trustees of every District which
9establishes, provides, or acquires mass transit facilities or
10services may contract with any person or corporation or public
11or private entity for the operation or provision thereof upon
12such terms and conditions as the District shall determine.
13    (d) The Board of Trustees of every District shall have the
14authority to contract for any and all purposes of the District,
15including with an interstate transportation authority, or with
16another local Mass Transit District or any other municipal,
17public, or private corporation entity in the transportation
18business including the authority to contract to lease its or
19otherwise provide land, buildings, and equipment, and other
20related facilities, improvements, and services, for the
21carriage of passengers beyond the territorial limits of the
22District or to subsidize transit operations by a public or
23private or municipal corporation operating entity providing
24mass transit facilities.
25    (e) The Board of Trustees of every District shall have the
26authority to establish, alter and discontinue transportation

 

 

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1routes and services and any or all ancillary or supporting
2facilities and services, and to establish and amend rate
3schedules for the transportation of persons thereon or for the
4public or private use thereof which rate schedules shall,
5together with any grants, receipts or income from other
6sources, be sufficient to pay the expenses of the District, the
7repair, maintenance and the safe and adequate operation of its
8mass transit facilities and public mass transportation system
9and to fulfill the terms of its debts, undertakings, and
10obligations.
11    (f) The Board of Trustees of every District shall have
12perpetual succession and shall have the following powers in
13addition to any others in this Act granted:
14        (1) to sue and be sued;
15        (2) to adopt and use a seal;
16        (3) to make and execute contracts loans, leases,
17    subleases, installment purchase agreements, contracts,
18    notes and other instruments evidencing financial
19    obligations, and other instruments necessary or convenient
20    in the exercise of its powers;
21        (4) to make, amend and repeal bylaws, rules and
22    regulations not inconsistent with this Act;
23        (5) to sell, lease, sublease, license, transfer,
24    convey or otherwise dispose of any of its real or personal
25    property, or interests therein, in whole or in part, at any
26    time upon such terms and conditions as it may determine,

 

 

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1    with public bidding if the value exceeds $1,000 at
2    negotiated, competitive, public, or private sale;
3        (6) to invest funds, not required for immediate
4    disbursement, in property, agreements, or securities legal
5    for investment of public funds controlled by savings banks
6    under applicable law;
7        (7) to mortgage, pledge, hypothecate or otherwise
8    encumber all or any part of its real or personal property
9    or other assets, or interests therein;
10        (8) to apply for, accept and use grants, loans or other
11    financial assistance from any private entity or municipal,
12    county, State or Federal governmental agency or other
13    public entity;
14        (9) to borrow money from the United States Government
15    or any agency thereof, or from any other public or private
16    source, for the purposes of the District and, as evidence
17    thereof, to issue its revenue bonds, payable solely from
18    the revenue derived from the operation of the District.
19    These bonds may be issued with maturities not exceeding 40
20    years from the date of the bonds, and in such amounts as
21    may be necessary to provide sufficient funds, together with
22    interest, for the purposes of the District. These bonds
23    shall bear interest at a rate of not more than the maximum
24    rate authorized by the Bond Authorization Act, as amended
25    at the time of the making of the contract of sale, payable
26    semi-annually, may be made registerable as to principal,

 

 

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1    and may be made payable and callable as provided on any
2    interest payment date at a price of par and accrued
3    interest under such terms and conditions as may be fixed by
4    the ordinance authorizing the issuance of the bonds. Bonds
5    issued under this Section are negotiable instruments. They
6    shall be executed by the chairman and members of the Board
7    of Trustees, attested by the secretary, and shall be sealed
8    with the corporate seal of the District. In case any
9    Trustee or officer whose signature appears on the bonds or
10    coupons ceases to hold that office before the bonds are
11    delivered, such officer's signature, shall nevertheless be
12    valid and sufficient for all purposes, the same as though
13    such officer had remained in office until the bonds were
14    delivered. The bonds shall be sold in such manner and upon
15    such terms as the Board of Trustees shall determine, except
16    that the selling price shall be such that the interest cost
17    to the District of the proceeds of the bonds shall not
18    exceed the maximum rate authorized by the Bond
19    Authorization Act, as amended at the time of the making of
20    the contract of sale, payable semi-annually, computed to
21    maturity according to the standard table of bond values.
22        The ordinance shall fix the amount of revenue bonds
23    proposed to be issued, the maturity or maturities, the
24    interest rate, which shall not exceed the maximum rate
25    authorized by the Bond Authorization Act, as amended at the
26    time of the making of the contract of sale, and all the

 

 

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1    details in connection with the bonds. The ordinance may
2    contain such covenants and restrictions upon the issuance
3    of additional revenue bonds thereafter, which will share
4    equally in the revenue of the District, as may be deemed
5    necessary or advisable for the assurance of the payment of
6    the bonds first issued. Any District may also provide in
7    the ordinance authorizing the issuance of bonds under this
8    Section that the bonds, or such ones thereof as may be
9    specified, shall, to the extent and in the manner
10    prescribed, be subordinated and be junior in standing, with
11    respect to the payment of principal and interest and the
12    security thereof, to such other bonds as are designated in
13    the ordinance.
14        The ordinance shall pledge the revenue derived from the
15    operations of the District for the purpose of paying the
16    cost of operation and maintenance of the District, and, as
17    applicable, providing adequate depreciation funds, and
18    paying the principal of and interest on the bonds of the
19    District issued under this Section.
20        (10) subject to Section 5.1, to levy a tax on property
21    within the District at the rate of not to exceed .25% on
22    the assessed value of such property in the manner provided
23    in "The Illinois Municipal Budget Law", approved July 12,
24    1937, as amended;
25        (11) to issue tax anticipation warrants;
26        (12) to contract with any school district in this State

 

 

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1    to provide for the transportation of pupils to and from
2    school within such district pursuant to the provisions of
3    Section 29-15 of the School Code;
4        (13) to provide for the insurance of any property,
5    directors, officers, employees or operations of the
6    District against any risk, or hazard, or liability, and to
7    self-insure or participate in joint self-insurance pools
8    or entities to insure against such risk, or hazard or
9    liability. Such coverage shall include, but is not limited
10    to, uninsured or underinsured motorist coverage protecting
11    against damages by an uninsured or underinsured motorist
12    against property, directors, officers, employees,
13    operations, and District vehicle passengers;
14        (14) to use its established funds, personnel, and other
15    resources to acquire, construct, operate, and maintain
16    bikeways and trails. Districts may cooperate with other
17    governmental and private agencies in bikeway and trail
18    programs; and
19        (15) to acquire, own, maintain, construct,
20    reconstruct, improve, repair, operate or lease any
21    light-rail public transportation system, terminal,
22    terminal facility, public airport, or bridge or toll bridge
23    across waters with any city, state, or both.
24    With respect to instruments for the payment of money issued
25under this Section either before, on, or after the effective
26date of this amendatory Act of 1989, it is and always has been

 

 

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1the intention of the General Assembly (i) that the Omnibus Bond
2Acts are and always have been supplementary grants of power to
3issue instruments in accordance with the Omnibus Bond Acts,
4regardless of any provision of this Act that may appear to be
5or to have been more restrictive than those Acts, (ii) that the
6provisions of this Section are not a limitation on the
7supplementary authority granted by the Omnibus Bond Acts, and
8(iii) that instruments issued under this Section within the
9supplementary authority granted by the Omnibus Bond Acts are
10not invalid because of any provision of this Act that may
11appear to be or to have been more restrictive than those Acts.
12    This Section shall be liberally construed to give effect to
13its purposes.
14(Source: P.A. 93-590, eff. 1-1-04.)