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courtagainstthe Authorityfor damages on accountofany injuryto his person shall file in the office ofthe secret.ary ofthe Board andalso in the officeofthe General Attorney forthe Authority either byhimself, his agent, or attorney, a st.atement, in writing, signed by himself, his agent, or attorney, giving the name ofthepersonto whom the cause 

### of action has accrued, the name and residence of the person injured, the date and about the hour of the accident, the place orlocationwhere the accident occurredand the name and address of the attending physician, if any. If the notice provided for by this section is not filed as provided, any such civil a.ctlon commenced against the Authority shall be dismissed and the person to whom any such cause of action accrued for any personal injury shall be forever barred from further suing. 342. Investigations-Subpoenas

§ 42. The Boardmay investigateallmeans oftransportatiCln and the managementthereof, the enfo:reementofits ordinances, rules and regulations, and the action, conduct and efficiency of all officers, agents and employees ofthe Authority. In the conduct of such investigations the Board may hold public hea.rings on its own motion, and shall 

### do so on complaint or petition of any municipality which has adoptedthis Actorwhich has grantedrights to the Authority by ordinance. Each member of the Board shall have power to administer oaths, and the Secretary, by order ofthe Board, shall issue subpoenas to securethe attendance andtestimony ofwitr1esses1 and the production ofbooks andpapersrelevantto such investigations and to any hearing before the Board or any member thereof or any officers' committee or employees' committee appointed by the Board to hear any complaint of 

### an officer or employee who has been discharged or demoted.

Any circuit court of this State, upon application of the Board, or any member thereof, may in its discretion com· pe\ the attendance of witnesses, the production of books and papers, and giving of testimony before the Board or before any member thereof or any officers' committee or employees' committee appointed by the Board, by attach· mentfor contemptorotherwise in the samemanner as the production of evidence may be compelled before the court. Amended by P.A. 83-334, § 97, eff. Sept. 14, 1983. 343. Partial invalidity

§ 43. If any provision of this Act is held invalid such provision shall be deemed

### to be excised from this Act and the invalidity thereof shall not affect any of the other provisions ofthis Act. If the application of any provision ofthis Act to any person or circumst.ance is held invalid it shall notaffectthe application of suchpro\'ision to persons or circumstances other than those 

### as 

### to which 

### it is invalid. 344. Adoption ofactby municipal corporations-Form ofproposition § 44. This Act may be adopted by any city, village or incorporated 

### town within the metropolit.an area in the following manner: 

### The city council of any city, or the president and board of trustees of any village or incorporated town, by ordinance, may direct that the question of theadoption ofthis Actbesubmittedtothe electors atany regular election. The clerk of such municipality shall promptly certify the passage of such ordinance and the propositiontothe proper electionofficials and thereupon it shall be the duty of the election officials to submit the question topopularvote. Public notice ofthe referendum shall be given in the manner provided by the general electionlaw. Ifa majority ofthosevoting on the question vote in the affirmative thereon, this Act shall be adopted in that city, village orincorporated town. The proposition shall be in substantially the following form:

Shall "An Act to create a munici- 

### YES pal corporation for public ownership and operation of a transport.ation system 

## m the metropolitan 

### NO area of Cook County'' be adopted?

The result of said election shall be certified to the Secret.a.ry of St.ate. Amended by P.A. 81-1489, § 112, eff. Dec. l, 1980. 345. Board members-Liability for policy decisions and discretionary aets-lndemnification-lnsurance § 45. (a) A member of the Board of the Authority is notliable for anyinjuryresultingfrom anyactor omission in determining policy or exercising discretion, except: (1) for vnllful or wanton misconduct or (2) as othe:rwise provided by statute.

(b) Ifany claim or action is instituted against a member ofthe Board of theAuthoritybased on an injury allegedly arising out of an act or omission of such member occurring within the scope of the member's employment, the Authority shall indemnify the member for all legal expenses and court costs incurred in defending against the claim or action and shall indemnify the member for any amount paid pursuant to any judgment on, or any good faith settlementof, sueh claim, exceptforthatportion of a judgment awarded for willful or wanton misconduct.

(c) The Authority may purchase insurance to cover the costs of any legal ~enses, judgments, or settlements under this Section. Added by P.A. 81-1466, § l, eff. Sept. 8, 1980. 346. Citizens Advisory Board

§ 46. Citizens Advisory Board. The Board shall est.ablish a citizens advisory board composed of 10 residents of those portions of the metropolitan region in which the Authority provides service who have an interest in public transportation. The members of the advisory board shall be named for 2 year terms, shall select one of their members 

### to serve as chairman and shall serve without compensation. The citizens advisory board shall meet with Board at least quarterly and advise the Board of the impact of 

### its policies and programs on the comm1lllities it serves. Added by P.A. 83-886, § 5, eff. Nov. 9, 1983. LOCAL MASS TRANSIT DISTRICT ACT AN ACT relating to the creation 

### 0£ local Mass Transit

Districts by one or more municipalities or one or more counties or any combination thereof for public ownership and operationofmasstransit facilities. Laws 1959, p. 1635, approved and eff. July 21, 1959. 351. Citation

§ 1. This Act shall be known and cited 

### as the "Local Mass TransitDistrict Act".

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§ 2. For the purposes of this Act: {a) "Mass transit facility" means any local public transportation facility, whether buses, trolley-buses, or railway systems, utilized by a substantial number of persons for their 

### daily transportation, and includes not only the local public transportation facility itself but ancillary and supporting facilities such as, for example, motor vehicle parking facilities, as well.

(b) 

### "Participating municipality and county" means the municipality or municipalities, county or counties creating the local Mass Transit District pursuant to Section 3 of this Actl

(c) "Municipality" means a city, village, township, or incorporated town.

(d) "Corporate authorities" means (1) the city council or similar body of a city, (2) the board of trustees or similar body of

### a vi1\age orincorporated town, (3) the council of

### a municipality under the commission form of municipal government, and (4) the board of trustees 

### in 

### a township.

(e) "County board" means the governing board of a county.

(f) "District" means a local Mass Transit District created pursuant to Section 3 of this Act.

(g) "Board" means the Board of Trustees of a local Mass TransitDistrict createdpursuantto Section 3 of this Act

(h) "Interstatetransportation authority" shall mean any political subdivisioncreatedby compactbetween this State and another state, which is a body corporate and politic and a political subdivision ofboth contracting states, and whieh operates a public mass transportation system;

(i) "Metro East Mass Transit District" means one or more local mass transit districts created pursuant to this Act, composed only of Madison, St. Clair or Monroe Counties, or any combination thereof.

G) "Public mass transportation system" shalJ mean a transportation system or systems owned and operated by an interstate transportation authority, a municipality, District, or otherpublic orprivate authority, employing motor busses, rails or any other means of conveyance, by whatsoever type or power, operated for public use in the conveyance of persons, mainly providing local transportation service within an interstate transportation district, municipality, or county. Amended by P.A. 82-783, Art. X, § 20, eff. July 13, 1982.

1Paragraph 353 of this chapter. 353. Composition

- Ordinances-Approval-Powers

- Certification of ordinances creating dll!trlct § 3. For the purpose of acquiring, constructing, owning, operating and maintaining mass transit facilities for public service or subsidizing the operation thereof a local Mass Transit District may be created, composed of one or more municipalities or one or more counties or any combination thereof, by ordinance approved by a majority vote ofthe corporaUJ authorities or by resolution approved by a majority vote of the county board of each participating municipality and county, and any countyparticipating in a Metro EastMass Transit District may terminate it.s participation in the same manner. A Metro East Maios Transit District created by one or more counties shall include: (1) those townships which were servedbyregularly scheduled mass transit routes operated by an interstate transport.a. tion authority on June 1, 1980; (2) in the case of a county without townships, any municipality or unincorporated portion of a road district which was served by regularlv scheduled mass transit routes operated by an interst.at'e transport.ation authority on June 1, 1980; (3) any other townships or municipalities whose participation is approved by ordinance adopted by a majority vote of their Board of Trustees or corporate authorities; plus (4) in the case of a county without townships, the unincorporated portion of any road district, the participation of which is approved by an ordinance adopted by a majority vote of the Board of Commissioners of the county in which it 

### is located. Such District shall be known as the "

... Mass Transit District", inserting all or any significant. part of the name or names of the municipality or the county or both, creating the District, or a name descriptive of'the area to be served if the District is created by more than one municipality, more than one county, or any combination thereof.

The District created pursuant to this Act shall be a municipal corporation a11d shall have the right of eminent domain to acquire private property which is necessary for the purposes of the District, and shall have the power to contractfor public mass transportation withan Interstate Transportation Authority.

Upon the creation of any District, the clerk of the municipality o:r of the county, or the clerks ofthe several municipalities or counties, as the case may be, shall certify a copy of the ordinance or resolutioncreatingthe District, and the name;, of the persons first appointed Trustees thereof, and shall fl1e the same with the county clerk for recording as certificates of incorporation and the county clerk shall cause duplicate certified copies thereof to be filed with the Secretary of SW.te. Amended by P.A. 81-1471, § l, eff. Sept. 11, 1980. 353.01. Annexation

§ 3.01. Any municipality or county may be annexed 

### to a District, other than a Metro East Transit District, formed pursuant to Section 3 1when the District has no tax levy in effect and has no bonded indebtedness if a petition for ann2xation is adopted by an ordinance or resolution approved by a majority vote of the corporate authorities of such municipality or the county board of such county and such ordinance or resolution is approved by a%vote of the members 

### ofthe board of trustees ofthe District Upon the approval of snch a petition of annexa· tion by the board of trustees of a District, a certified copy of the ordinance of annexation shall be filed by the secretary oftheboartl in the same manneras provided for upon creation of the District.

Any township may be annexed 

### to a Metro East Transit Districtformed by one countypursuant to Section3 ofthis Act, provided that township is within such county, if a petition for annexation, which is signed by at leasi 10% of the registered voters in the last general election who**~** residents ofthe township to 

### be annexed or approved by a majority vote 0£ the town~hip board of the township to be annexed, is adopted by resolution approved by a majority vote of the county board of such county and such resolu· tion is approved by a 

### %vote of the members of the board of trustees of the District. Upon the approval of such petition of annexation by the board of trustees of a District., a certified copy of the ordinance of annexation shall I 

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be filed bythe secretary oftheboard in the same manner as provided for upon creation of the District. Amended by P.A. 85-779, § 2, eff. Sept. 24, 1987.

IParagraph 353 of this chapter. 353.1. Creation of district with boundary 

### to enclose participating area-Procedure § 3.1. Also in the manner provided in this Act as amended, a "Local Mass Transit District" may be created withboundary

### to enclose a unitareaofcontiguous land, 

### to be known as the "participating area". Such a "participating area" may 

### be organized as a district under this Act without regard to boundaries ofcounties or other political subdivisions or municipal corporations.

(a) Any 500 or more legal voters who are residents within such "participating area" may file a petition 

### in the circuitcourtof the county wherethe proposeddistrictora major partthereofis located, asking that the question of creating such district be submitted under this Act by referendum to the voters residing within the proposed district. By their power of attorney signed by them and filed 

### in the cause the petitioners may authorize a committee of their number named by the petitioners, to conduct and pursue the cause for them to a conclusion. Such petition shall define the boundaries of the proposed district, shall indicate distances 

### to nearest mass transportation lines in each direction, naming them, shall have attached a fair map of the proposed district, and shall suggest a name for the proposed district.

(b) The circuit clerk shall present to the circuit judge any petition so filed inthe court. Thejudge shall enter an order of record 

### to set a date, hour and place forjudicial hearing on the petition. That order shall include instructions to the circuit clerk 

### to give notice by newspaper publication to be made and completed at least 20 days before the hearing is 

### to be held, in 

### 2 or more newspapers published or circulating generally among the people residing within the proposed district. The circuit clerk shall prepa."e thatnotice and cause such publication notice to be given as direeted.

(c) Afterproof of such newspaper publication ofnotice has been made and filed in the cause and shown to the court in full accord with the prior order, the circuitjudge shall hear all persons who attend and so request, as to location and boundary and name for theproposed district. Afterthehearing on such petition is completed, the circuit courtby an order of record, shall determine and establish the location, name and boundary for such proposed district, and shall order 

### the proposition submitted at an election in accordance with the general election law 

### to the voters resident within such proposed district. The circuit clerk shall certify the proposition to the proper election officials who shall submit the proposition in accordance with the general election law.

(d) The county clerk shall canvass the ballot.s and other returns from such referendum, and prepare a full certification of the result and shall file same 

### in the cause pending in the circuit court. When the vote is in favor of the creation of such district as determined by the court order, a true map of such district shall be filed with such reportin the circuit court.

(e) When the vote 

### is in favor ofcreationofsuch district, the circuit court by an order ofrecord shall confirm the result of election. If the district is wholly contained within a single county the presiding officer of the county board with the advice and consent of the county board shall appoint 5 trustees, not more than Sofwhom shallbe affiliated with the same political party, to govern the district and serve one each for 1, 2, 3, 4 and 5 years respectively. If however the district is locat.ed in more than one county, the number oftrustees who are resident.s of a countyshall he inproportion, as nearly as practicable, 

### to the number of residents of the district who reside in that county in relation to the total population of the district.

Upon the expiration of the term of a trustee who 

### is in office on the effective date of this amendatory Act of 1975, the successorshallbe aresidentofwhichever county is entitled 

### to such representation in order to bring about the proportional representation required herein, and he shall be appointed by the county board of that county, or in the case of a home rule county as defined by Article VII, Section 6ofthe Constitution of 1970, the chiefexecu· tive officer ofthat county, with the advice and consent of the county board in accordance with the provisions previously enumerated. Successors shall serve 5 year overlapping terms.

Thereafter, each trustee shall be succeeded by a resident of the same county who shall be appointed by the same appointing authority; however, the provisions ofthe precedingparagraph shall apply

### to the appointmentofthe successorto eachtrustee who is inoffice atthetime ofthe publication ofeach decennial Federal census ofpopulation.

(f) Upon the creation of such district, the circuit clerk shall prepare and certify a copy of the final court order confirming the referendum creating the district, and a duplicate of the map of such district, from the record of the circuit court, and shall file the same with the county clerk for recording in his office as "Certificate ofIncorporation" for the district. The county clerk shall cause a duplicate of such "Certificate ofIncorporation" to he filed in the office ofthe Secretary of State ofIllinois.

(g) The Board ofTrustees of such "Local Mass Transit District" shall have and exercise all the powers and shall perform all the duties of any Board of Trustees of any districtcreated underthis Act, 

### as now orhereafteramended.

(h) The circuitcourt shall require thepetitioners 

### to post a suretybond for the paymentofall costs and expenses of suchproceeding and such referendum. When a district is creat.ed, the circuit court shall orderthe district to pay or reimburse others for all such costs and expenses. The surety bond shall notbe released until complete receipt.s for all such costs and expenses have been filed in the cause and fully audited by the circuit and county clerks. Amended by P.A. 81-1489, § 113, eff. Dec. l, 1980. 353.5. Rights of employees of acquired mass transit facilities § 3.5. Ifthe districtacquires a mass transitfacility, all of the employees in the operating and maintenance divisions of such mass transitfacility and all other employees except executive and administrative officers and employ· ees, shall he transferred

### to and appointed as employees of the district, subject

### to all rights andbenefit.s of this Act, and these employees shall be given seniority credit in accordance with the records and labor agreements of the mass transit facility. Employees who left the employ of such a mass transit facility to enterthe milit.ary service of the United States shall have the same rights as to the

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## 353.5 CHAPTER 111%-PUBLIC UTILITIES 576 district., under the provisions of the "Service Men's Employment Tenure Act", approved July 17, 1941,1 as they would have had thereunder as to such mass transit facility. After such acquisition the district shall berequired to extend 

### to such former employees of such mass transit facility only the rights and benefit.s as to pensions and retirement as are accorded other employees ofthe district.

l Chapter 126'/e, U 2S et seq. 354. Board of tmstees-Membership-CompensationExpenses-Interest in contracts-Employment of personnel-Delegation of duties-Failure to provide police protection or security § 4. The powers ofthe local Mass Transit District shall repose in, and be exercised by, a Board of Trustees. If the Di.strictis created by only one municipality or only one county the corporate authorities or the county board chair· man with the consent ofthe county board of such municipality or county shall appoint either 3or 5 trustees to the Board; provided that in any Metro East Mass Transit District created by a single county, 5 trustees shall be appointed and the trustees so appointed shall be: (1) a mayor of a municipality within the county; (2) a township supervisor from such county, or if in a county without township supervisors, another such mayor; (3) the county board chairman or such other county board member as he shall designate; and (4) 2 members of the general public. Ifthe District is created by one or more municipalities or one or more counties or any combination thereof, the corporate authorities or the county board chairman with the consent of the county board of each participating municipality or county shall appoint one trustee to the Board for every 100,000 inhabitants, orfraction thereof, of such municipality or county. The firstTrustees appointed to the Board and any 2 additional trustees, initially appointed as a result of this amendatory Act of 1983 shall serve for terms of 4 years or less, the terms 

### to be st.aggered to the extent possible so that they expire one year apart and so that the terms of not more than 2 trustees expire in the same year, with the Trustees to serve less than 4years to be selected by lot. Thereafter, their successors shall serve for 4 years. Vacancies shall be filled for the unexpired termin the same manner as the original appointment

Except in a Metro EastMass TransitDistrict, no Trustee of any District may be an elected official ofthe municipality or municipalities or county or counties creating the District. ATrustee shall hold office until his successor has been appointed and has qualified. A certificate of the appointmentor reappointmentof anyTrusteeshall befiled with the clerk or clerks and such certificate shall be conclusive evidence of the due and proper appointment of such Trustee. A Trustee shall receive, as compensation for his services, $50 for each day devoted to the business ofthe Board but not more than $200 per month. Forthe purposes ofthis Section, each District may determine what constitutes abusinessday. He shall also beentitled to the necessary expenses, including traveling expenses, incurred in the discharge ofhis duties. The powers ofeachDistrict· shall be vested in the Trustees thereofin office from time t.o time. A majority shall constitute a quorum of the Board for the purpose of conducting 

### its business and exercising it.s powers and for all other purposes. Action may be taken by the Board upon a vote ofthe majority of the Trustees present, unless in any case thebylaws ofthe Board shall require a larger number. The Board shall select a chairman and a vice-chairman from among the Trustees.

No Trustee or employee of the Board shall acquire or have any interest direct or indirect in any contract or proposed contractfor materials or services 

### to be furnished or used in connection with operations ofthe District. For inefficiency or neglect of duty or misconduct in office, a Trustee may be removed by the person or body which made the original appointment., but a Trustee shall be removed only after he shall have been given a copy ofthe charges against him atleast 10 days prior to the hearing thereon and has had an opportunity to be heard in person orby counsel In the eventofthe removal ofany Trustee, a record ofthe proceedings, together with the charges and findings thereon, shall be filed in the office ofthe clerk or clerks ofthe creating county or counties ormunicipality or municipalities.

The Board shall employ a managing director of the District and may employ a secretary, treasurer, technical experts and such other officers, agents and employees, permanent and temporary, as it may require, and shall fix and determine their qualifications, duties and compensation and the amount of bond to be furnished for such offices and positions. For such legal services as it may require, the Board may call upon any chieflaw officers of the municipality, municipalities, or the county or counties as the case may be, or may employ and fix the compensa· tion of its own counsel and legal st.aff. The Board may delegate to one or more of its agents or employees such powers and duties as it may deem proper. Notwithstanding the otherprovisions ofthis paragraph, employment of any person other than amanaging director or secretaryby any Metro East Mass Transit District created by a single county shall require the authorization ofthe county board 

### of such county.

Neither the District, the members of its Board nor its officers or employees shall be held liable for failure to provide a security or police force or, if a security orpolice force is provided, for failure to provide adequate police protection or security, failure to prevent the commission of crimes by fellow passengers or other third persons or for the failure to apprehend criminals. Amended by P.A. 85--779, § 1, eff. Sept. 24, 1987. 355. Gener.ii powers

§ 5. (a) The Board of Trustees of every District may establish or acquire any or all manner of mass transit facility. The Board may engage in the business of trans· portation of passengers on scheduled routes and by contracton nonscheduledroutes within the territorial limits of the counties or municipalities creating the District, by whatevermeans itmay decide. Its routes may be extended beyond such territorial limits with the consent of the governing bodies of the municipalities or counties into which such operation 

### is extended.

(b) The Board ofTrustees ofevery District may for the purposes of the District, acquire by gift, purchase, lease, legacy, condemnation, or otherwise and hold, use, improve, maint.ain, operate, own, manage or lease, as lessor or lessee, such cars, buses, equipment, lands for terminal and other facilities, or any interesttherein, including all or any part ofthe plant, equipment, vehicles, licenses, franchises, patents, property, contracts and agreements ofevery kind and nature. Real property may be so acquired if it is situated within or partially within the area served by the

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District or ifit is outside the area ifitis necessary for the purposes ofthe District.

(c) The Board ofTrustees ofevery District which est.abJishes or acquires mass transit facilities may contractwith any person or corporation for thtl operation thereof upon such terms and conditions as the District shall determine.

{d) The Board of Trustees of every District shall have the authority to contract for any and all purposes of the District with an interstate transportation authority, or with another local Mass Transit District or any other municipal or private corporation in the transportation business including the authority to contract to lease its equipment for the carriage ofpassengers beyond the territorial limit.s ofthe Districtor to subsidize transit operations by a private or municipal corporation operating mass transit facilities.

(e) The Board of Trustees of every District shall have the authority to establish, alter and discontinue transport.ation routes and any or all ancillary or supporting facilities, and to est.ablish and amend rate schedules for the transportation of persons thereon or for the public or private use thereof which rate schedules shall, together with any grants, receipts or income from other sources, be sufficient 

### to pay the expenses of the District, the repair, maintenance and the safe and adequate operation of its mass transit facilities and transportation system and to fulfill the terms of its debts and obligations.

{f) The Board of Trustees of every District shall have perpetual succession and shall have the following powers in addition to any others in this Act grant.ed:

(1) 

### to sue and be sued; (2) 

### to adopt and use a seal; (3) 

### to make and execute contracts and otherinstruments necessary or convenient in the exercise of its powers;

(4) tomake, amend and repeal bylaws, rules and regula· tions not inconsistent with this Act;

(5) 

### to sell, transfer and dispose of any ofits property or interest therein at any time upon such terms and conditions as it may determine, with public bidding ifthe value exceeds $1,000;

(6) to investfunds, notrequired forimmediate disbursement, 

### in property or securities legal for investment of funds controlled by savings banks;

(7) to mortgage, pledge, hypothecate or otherwise en- cumber all or any part ofits property or assets;

(8) to apply for, accept and use grant.s, loans or other financial assistance from any municipal, county, State or Federal governmental agency;

(9) 

### to borrow money from the United States Govern· mentor any agency thereof, orfrom any other source, for the purposes of the District and, as evidence thereof, 

### to issue its revenue bonds, payable solely from the revenue derived from the operation of the District. These bonds may beissued with maturities notexceeding40yearsfrom the dat.e of the bonds, and in such amounts as may be necessary to provide sufficient funds, together with interest, for the purposes of the District. These bonds shall bear interest at a rate of not more than 6% annually, payable semi-annually, may be made registerable as to principal, and may be made callable on any interest payment date at a price of par and accrued int.erest under such terms and conditions as may be fixed by the ordinance autbori:oing the issuance of the bonds. Bonds issued under this Section are negotiable instruments. They shall be executed by the chairman and members of the Board of Trustees and shall be sealed with the corporate seal ofthe District. In case any Trustee whose signature appears on the bonds or coupons ceases to hold thatoffice before the bonds are delivered, his signature, shall never- theless be valid and sufficient for all purposes, the same as though be had remained in office until the bonds were delivered. The bonds shall be sold in such manner and upon such termsas theBoard ofTrustees shall determine, except thatthe selling price shall be such thatthe interest cost to the District of the proeeeds of the bonds shall not exceed 6;fc annually, payable semi-annually, computed to maturity according to the st.andard table of bond values.

The ordinance shall fix the amount of revenue bonds proposed to be issued, the maturity or maturities, the interest rate, which shall not exceed 

### 6% annually, and all the details in connection with the bonds. The ordinance may cont.ain such covenants and restrictions upon the issuance ofadditional revenuebonds thereafter, which will share equally the revenue of the District, as may be deemed riecessary or advisable for the assurance of the payment ofthebonds first issued. Any District may also provide in the ordinance authorizing the issuance ofbonds under this Section thatthe bonds, or such ones thereof as may be specified, shall, to the extent and in the manner prescribed, be subordinat.ed and bejuniorin standing,with respect to the payment of principal and interest and the security thereof, to such otherbonds as are designated in the ordinance.

The ordinance shall pledge the revenue derived from the operation ofthe Districtforthepurpose ofpaying the cost ofoperation and maintenance ofthe District, providing an adequate depreciation fund, and paying the principal and interest on the bonds of the District issued under this Section.

No Metro EastMass TransitDistrictmay issue revenue bonds under this subparagraph (9) unless the question of the issuance of such bonds is first submitted to and approved by the voters of the District at a referendum within the District. Notice of such referendum shall be given and the election shall be conducted in accordance with the general election law.

(10) subject 

### to Section 5.1,1 to levy a 

### tax on property within the Districtattherate ofnot to exceed .25% on the assessed value of such property in the manner provided in "The Illinois Municipal Budget 

### Law", approved July 12, 1937, as amended;2

(11) to issue 

### tax anticipation warrants; (12) to contract with any school district in this State 

### to provide forthe transportation ofpupils to and from school within such district pursuant 

### to the provisions of Section 29-15 ofThe School Code;S and

(13) to provide for the insurance 

### of any property, directors, officers, employees or operations of the District againstanyriskorhazard, and

### to self·insure orparticipate in joint self-insurance pools or entities to insure against such risk or hazard. Amended by P.A. 84-1246, § 3, eff. July 29, 1986.

l Paragraph 355,1 ofthis chapter. 2Chapter 85, U801 et seq:. aChapter 122, UW-15. 355.01. Metro EastMass TransitDistrid,....'fuation

§ 5.01. (a) The Board of Trustees of any Metro East Mass Transit District may, by ordinance adopted with the

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## 355.01 CHAPTER 111%-PUBLIC UTILITIES 578

concurrence of two-thirds of the then trustees, impose throughout such District any or all of the t.axes provided in this Section. All taxes imposedpursuantto this Section shall be used only for public mass transportation systems, and the amount used to provide mass transit service to unserved areas ofthe District shall be in the samepropor· tion to the total tax proceeds as the number of persons residing in such unserved areas is to the total population ofthe District. Except as otherwise provided in this Act, taxes imposed pursuant to this Section and civil penalties imposed incident thereto shall be collected and enforcedby Uie State Department ofRevenue. The Department shall have the power to administer and enforce such taxes and to determine all rights for refunds for erroneous payments of such taxes.

(b) The Board may impose a Metro East Mass Transit District Retailers' Occupation Tax upon all persons en· gaged in the business ofselling tangible personal property atretail in the district at a rate not to exceed 1 

### /i of 1% of the gross receipts from such sales made in the course of such business within the district The taximposed pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions of terms, excluding the exemptions provided in Sections ld, le, 

### lf, Sk and Sl,l and employ the samemodes ofprocedure, as areprescnbed in Sections 1, la, le, 2z (in respect to all provisions therein other than the State rate oftax and shall include exemptions (f} and {g} therein unless the Board provides otherwise by ordinance), 2c, 3 3 (except·as 

### to the disposition of taxes and penalties collected and except for the provision allowing retailers a deductionfrom the tax to covercertain costs), 4, 5, Sa, 5c, 5d, 5e, Sf, 5g, 5h, Si, 5j, 64(except that credit memoranda issued hereunder may not be used to discharge any State taxliability), 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, 131/i and 14 ofthe "Retailers' Occupation Tax Act", as now or hereafter amended,5 as fully as if provisions contained in those Sections of the "Retailers' Occupation Tax Act"6 were set forth herein.

Persons subject to any ta..x imposed pursuant to the authority granted in this Section may reimburse themselves for their seller's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State taxes which sellers are required to collect under the "UseTax

### Act",7 and with any taxes for which sellers may be liable under the "Municipal Retailers' Occupation Tax Act",8 or the "County Retailers' Occupation Tax Act",9 pursuant to such bracket schedules as the Department may prescribe.

Whenever the Department determines that a refund shouldbe made under this Section to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrantto be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the StateTreasurer outoftheMetro East Mass Transit District tax fund established pursuant to paragraph (g) of this Section.

For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale, by a producerofcoal orother mineral minedin Illinois, is a sale atretail atthe place where thecoal or other mineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal or othermineralwhen it is delivered or shippedbythe seller tothepurchaser at apoint outside I\linois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce.

Nothing in this Section sha\J be construed tt, authorize theMetro EaStMassTransitDistrictto impose a taxupon the privilege ofengaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State.

(c) The Board of the Metro East Mass Transit District may impose atax upon all persons engaged, in the district, in the business of making sales of service, who, as an incident to making such sales of service, transfer tangible personal property within the District, either in the form of tangible personalproperty or in the form ofreal estate as an incident to a sale of service. The tax rate shall not exceed 1 

### /.% of the costprice of tangible personal property so transferred within the district. The tax imposedpursuant to this paragraph and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the St.ate Department of Revenue. The Dee partment shall have full power to administer and enforce this paragraph; to collect all taxes and penalties due hereunder; to dispose oftaxes andpenalties socollectedin the manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administrationof, and compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject

### to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions ofterms, excluding the exemp· tions providedin Sections ld, le, lf, 5k and 5l, and employ the same modes ofprocedure, as are prescnbed in Sections 2JO and shall include exemptions (d-2) and(d-3} unless the Board provides otherwise by ordinance (except that the reference 

### to Statein the definition of supplier maintaining aplace ofbusiness in this State shall mean the Authority), 2a, 3 11 {in respect to all provisions therein other than the State rate of tax), 4 12 (except that the reference to the State shall be to the Authority), 5, 7, 813 (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the District), 9 14 (except as to the disposition of taxes and penalties collected, and except for the provision allowing suppliers a deduction from the ta.."'< 

### to cover certain costs, and except thatthe returned merchandise c~ditfor this tax may not be taken against any State tax), 10, 11, 12 15 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act),16 1317 (except that any reference to the St.ate shall mean the District), the first paragraph of Section 15, 151h, 16, 17 18 {except that credit memoranda issued hereunder may notbe used to discharge any State tax liability), 18, 19 and 20 ofthe "Service Occupation T~ Act", as now or hereafter amended,19 as fully as ifprovi-

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sions contained in those Sections of the "Service Occupa· tion Tax Act",20 were set forth herein.

Persons subject to any tax imposed pursuant to the authority granted in this paragraph may reimburse themselves for their serviceman's t.aJ{ liabHity hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which serviceman are authorized to coiled underthe "Service Use Tax Act",21 and any tax for which servicemen may be liable under the "Municipal Service Occupation Tax Act",22 or "County Service Occupation Tax Act",23 pursuant to such bracket schedules as the Departmentmay prescnOe.



### Whenever the Department determines that a refund shouldbe made underthis paragraphto a claimantinstead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the St.ate Treasurer out of the Metro East Mass Transit District tax fund est.ablished pursuant to paragraph (g) of this Section.

Nothing in this paragraph shall be construed to authorize the District to impose a t.ax upon the privilege of engaging in any business which under the Constitution of the United St.ates may notbe made the subject o:ft.axation by the State.

(d) The Board of the Metro East Mass Transit District may impose a tax upon the privilege of using, in the district, any item of tangible personal property which is purchased outside the districtatretail from a retailer, and which is titled orregistered with an agency ofthis State's government, ata rate notto exceed 

### 1/.% ofthe sellingpriee of such tangible personal property within the District, as "selling price" is defined in the "Use Tax Act", approved July 14, 1955, as now or hereafter amended. Such t.ax shall be collected from persons whose Illinois address for titling or registration purposes is given as being in the District. Such tax shall be collectedbythe Departmentof Revenue for the Metro East Mass Transit District. Such tax mustbe paid to the St.ate, or an exemption determination must be obtained from the Department of Revenue, before the title orcertificate ofregistration fortheproperty may be issued. The tax or proof ofexemption may he transmitted to the Departmentby way ofthe State agency with which, or the St.ate officer with whom, the tangible personal property mnst be titled or registered if the Department and such State agency orSt.ate officerdetermine that this procedure wm expedite theprocessing ofapplications for title or registration.

The Departmentshall have full power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose oftaxes, penalties and interest so collected in the manner hereinafter provided; andto determineall rights to creditmemoranda orrefunds arising on account ofthe erroneous payment oftax, penalty or interest hereunder. In the administration of, and compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions of terms and employ the same modes of procedure, as are prescribed in Sectiona 224 (exeept the paragraph concerning the conveying of news, and except the definition of "retailer maintaining a place of business in this St.ate"), 825 (exeeptprovisions pertaining to the St.ate rate of tax, and except provisions concerning collection or refunding of the tax by retailers, and except the provision concerning building materials and fo.1;ures and shall include the inapplicability of the tax to certain tangible personal property of common carriers by rail as provided in paragraph (g) unless the corporate authorities provide otherwise by ordinanee), 4, 11, 12 (exeept the exemptions relating to enterprise zones), 12a, 14, 15, 19 26 (except the portions pertaining to claims by retailers and except the last paragraph coneerning refunds), 20, 21 and 22 21 (except that credit memoranda issued hereunder may not be used to discharge any St.ate tax liability) of the "Use Tax Act", as now or hereafter amended, which are not inconsistent with this paragraph, as fully as if provisions contained in those Sections of the "Use Tax Act" were set forth herein.

Whenever the Department determines that a refund should be ma<le underthis paragraphto a claimantinstead of issuing a credit memorandum, the Department shall notify the St.ate Comptroller, who shall cause the order to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the Metro East Mass Transit District t.ax fund established pursuantto paragraph (g) of this Section.

(e) A certificate of registration issued by the State Department of Revenue to a retailer under the "Retailers' Oceupation Tax Act", as now or hereafter amended, or under the "Service OccupationTaxAct", as now orhereafter amended, shall permit the registrant to engage in a business which is taxed underthe tax imposed pursuantto paragraphs (b), (c) or (d) of this Section and no additional registration shall he required under such tax. A certificate is,'med pursuant t.o the "Use Tax Act'', as now or hereafter amended, orthe "Service Use Tax Act", as now or hereafter amended, shall be applicable with regard to any tax imposed pursuantto paragraph (c) ofthis Section.

(f) The Board may impose a replacement vehicle tax of $50 on any passenger car, as defined in Section 1-157 of The Illinois Vehicle Code,zs purchased within the district area by or on behalf of an insurance compauy to replace a passengercar of an insuredperson in settlementof a tot.al loss claim. The tax so imposed may not become effective before the first day ofthe month following the passage of the ordinance imposing such tax and reeeipt of a certified copy of such ordinance by the Department of Revenue. The Department ofRevenue shall collect such tax for the municipality in accordance with Sections 8-2002 ar,d 8- 2008 of Article XI of The Illinois Vehicle Code.29

The Department shall forthwith pay over to the St.ate Treasurer, ex officio, as trustee, all taxes collected hereunder. On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named municipalities, the munieipalities to be those from which ret.ailers have paid taxes or penalties hereunder 

### to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount collected hereunder during the second preceding calendar month by the Department, less 2% of such balance, which sum shall be retained by the St.ate Treasurer to cover the costs incurred by the Departmentin adminis· tering and enforcing this Section as provided herein. The Department at the time of each monthly disbursement to the municipalities shall prepare and certify to the Comp-

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## 355.01 CHAPTER 111'/a-PUBLIC UTILITIES 580
troller the amount, 

### :ro retainedby the StateTreasurer, 

### to be paid into the General Revenue Fund of the State Tueasury less any amount determined by the Department to be necessary for the payment of refunds. Within 10 days afterreceipt, by the Comptro\Jer, ofthe disbursement certification to the municipalities and the General Revenue Fund, provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall causethe orders to be drawn for therespective amounts in accordance with the directions contained in such certification.

(g) Any ordinance imposing any tax under this Section or effecting a change in the rate thereofshall be effective on the first day of the calendar month next following the publication of such ordinance in a newspaper of general circulation in the District andthe filing of a certified copy of such ordinance with the State Department ofRevenue, whereupon the Department of Revenue shall proceed to administerand enforce this Section on behalfoftheMetro EastMass Transit District as of the effective date ofthe ordinance or resolution.

(h) The State Department of Revenue shall, upon collecting any taxes as provided 

### in this Section, pay such taxes over to the State Treasurer as trustee for the District Such Wes shall be held in a trustfund outside the State Treasury. On or before the 25th day of each calendar month, the State Department of Revenue shall prepare and certify to the Comptroller of the State of Illinois the amount to be paid to the District, which shall be the then balance in said fund, less any amount determined by the Departmentto

### be necessary forthepayment ofrefunds. Within 10 days after receiptby the Comptroller of such certification of the amount to be paid to the District, the Comptroller shall cause an order to be drawn for such payment for such amount in accordance with the direction in such certification. Amended by P.A. 84-1481, § 2, eff. Feb. 17, 1987.

l Chapter 120, ~U 440d, 440e, 440f, 444k and 44-4L 2Chapter 120, U~ 440, 440a, 440c, 441. 3Chapter 120, U 441c, 442. 4Chapter 120, UU 443 to 444a, 444c to 444j, 445, 5Chapter 120, Uff 445a to 450, 451, 452 to 453. 6Chapter 120, U440 et seq. 7Chapter 120,**~** 439.1 et seq. 8Chapter 24,**~** 8-11-1. SChapter 34,**~** 409.1. 10 Chapter 120, q439.102. llChapter 120, ~U 439.102a, 439.103. 12Chapter 120, ff 439.104. 13Chapter 120, U 439.105, 439.107, 439.108. 14 Chapter 120, q439.109. l5Chapter 120, U~ 439.110 to 439.112. 16Chapter 120, U44lh. 17 Chapter 120, ff 439.113. l8Chapter 120, q~ 439.115, 439.llSa, 439.116, 439.117. 19 Chapter 120, Uf, 439.118 to 439.120. 20 Chapter 120, q439.101 et seq. 21 Chapter 120,**~** 439.31 et seq. 22 Chapter 24, ri 8-11-5. 23 Chapter 34, f 409.2. 24Chapter 120,**~** 439.Z. 25 Chapter 120, q439.3. 2BChapter 120, qq 439.4, 439.11, 439.12, 439.12a, 439.14, 439.15, 439.19.

Z7 Chapter 120, qq 439.20 to 439.22. 28 Chapter 95'h,**~** 1-157. 29 Chapter 95\/,, fiU 3-2002 and_S-2003.
355.02. Metro East Mass Transit District automobile renting occupation and use tax § 5.02. (a) The Board of Trustees of any Metro East Mass Transit District may impose a tax upon all persons engaged in the business of renting automobiles in the district at the rate of not to exceed 

### 1% of the gross receipts from such business. The tax imposed by a districtpursuantto this paragraph and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the St.ate Department of Revenue. The certificate of registration which is issued by the Department to a retailer under the "Retailers' Occupation Tax Act", approved June 23, 1933, as amended,l or under the "Automobile Renting Occupation and Use TaxAct", enacted by the Eighty-second General Assemb]y,2 shall permit such person to engage in a business which is taxable under any ordinance orresolution enactedpursuant

### to this paragraph withoutregistering separately with the Department under such ordinance or resolution or under this paragraph. The Department shall have full power to administer and enforce this paragraph; to collect all Wes and penalties due hereunder; to dispose 

### of t.axes and penalties so collected in the manner hereinafter provided, and to determine all rights 

### to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder. Inthe administration of, andcompliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileg€s, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes ofprocedure, as areprescribed in Sections 2 and 33 (in respect to all provisions therein other than the State rate 

### of W; and with relation to the provisions of the "Retailers' Occupation Tax" referred to therein, except as to the disposition of taxes and penalties collected, and except for the provision allowing ret.ailers a deduction from the tax to cover certain costs, and exceptthat credit memoranda issued hereunder may not be used to discharge any StateW liability) ofthe "Automobile Renting Occupation and Use Tax Act", enacted by the Eighty-second General Assembly, as the same are now or may hereafter be amended, as fully as if provisions contained in those Sections of said Act were set forth herein. Per- sons subject to any 

### ta..x imposed pursuant

### to the authority granted in this paragraph may reimburse themselves for their taxliability hereunderby separately stating such tax as an additional charge, which charge may be st.ated in combination, in a single amount with State tax which sellers arereqnired to collect under the "Automobile Renting Occupation and Use Tax Act" pursuantto such bracket schedules as the Department may prescribe. Nothing in thisparagraph shall be construed to authorizedistrict 1=? impose a t.ax upon the privilege of engaging in any business which under the constitution of the United St.ates may not be made the subject of taxation by this State.

(b) The Board of Trustees of any Metro East Mass Transit District may impose a ta,; upon the privilege of using, in such district, an automobile which is rented from a rentor outside Illinois, and which is titled or registered

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with an agency ofthis State's government, at a rate not

### to exceed 1% of the rental price of such automobile. Such 

### t.ax shall be collected from persons whose nlinois address 

### for titling or registration purposes is given as being in such district. Such tax shall be collected by 

### the DepartmentofRevenue for any districtimposing such 

### t.ax, Such tax must be paid 

### to the State, or an exemption determina· 

### tion must be obtained from the Department of Revenue, before the title or certificate ofregistrationfprtheproperty may be issued. The tax orproof of exemption may be transmitted to the Departmentbyway ofthe State agency with 

### which, or State officer with whom, the tangible personal property must be titled or registered if 

### the Department and such agency or State officer determine that 

### this procedure will expedite the processing ofapplieations for title or registration. The Department shall have full power 

### to administer and enforce this paragraph to 

### colleet all tru:.:es, penalties and interest due hereunder; to dispose oftaxes, penalties and interest so collected in the manner hereinafter provided, and 

### to determine all rights to 

### credit memoranda orrefunds arisingon accountofthe erroneous payment of 

### tax, penalty or interest hereunder. In the administration of and compliance with this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject

### to the same conditions, restrictions, limit.ations, penalties and defini- :ions of terms, and employ the same modes of procedure, as are prescribed in Sections 2 and 44 

### (except provisions pertaining to the St.ate rate offt.ax; and, with relation to the provisions of the "Use Tax Act" referred to therein, exceptprovisions concerning collection orrefunding ofthe 

### tax by ret.ailers, and except the provisions of Section 195 pertaining to claims by retailers and except that last paragraph concerning refunds, and except that credit memoranda issued hereunder may not be used 

### to discharge any St.ate tru:.: liability) ofthe "Automobile Renting Occupation and Use Tax Act", enacted by the Eighty-second General assembly, as the same are now or may hereafterbe amended, which are not inconsistent with this paragraph, as fully as if provisions contained in those Sections of said Act were set forth herein.

{c) Whenever the Department deUmnines that a refund shouldbe made under this Section to 

### a claimantinstead of issuing a credit memorandum, the Departmentshall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to

### the person named, in such notification from the Department. Such refunds shall be paid by the State Treasurer out ofthe Metro east Mass Transit Districttax fund createdpursuantto Section 5.01 ofthis Act.6

(d) The Department shall forth 

### with pay over to 

### the State Treasurer, ex-officio, as trustee, all taxes, penalties and interest collected under this Section. On orbefore the 25th day of each calendar month, the Department shall prepare and certify 

### to the State Comptroller the disbursement of stated sums of money to 

### named district.s from which the Department, during the second preceding calendar month, collected taxes imposed pursuant to this Sec· tion. The amount to be paid to 

### each district shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department, and not including an amount equal to 

### the amount of refunds made during the second preceding calendar month by the Department on behalf of such district, less 2% of such balance, which sum shall be retainedby the State Treasurer to coverthe costs incuITed by the Department in administering and enforcing this Section as provided herein. The Department at the time ofeach monthly disbursement to 

### the districts shallprepare and certify 

### to the State Comptroller the amount, so retained by the State Treasurer, to 

### be paid into the General Revenue Fund of the State Treasury. Within 10 days after receipt, by the State Comptroller, of the disbursement certification to 

### the districts andthe General Revenue Fund, provided for in this Section to be given to 

### the State Comptroller by the Department, the State comptroller shall cause the orders to 

### be drawn for the respective amounts in accordance with the directions contained in such certification.

(e) An ordinance orresolution imposing a 

### tax hereunder or effecting a change in the rate thereofshall be effeetive on the first day ofthe calendar month next following the month in which such ordinance or resolution is passed. The Board o:f Trustees of any district which levies a tax authorized by this Section shall transmit to the DepartmentofRevenue on or notlaterthan 5days afterpassage of the ordinance or resolution a certified copy of the ordinance or resolution imposing such tru:.: whereupon the Department of Revenue shall proceed to administer and enforce this Section on behalf of such district of the effective dat.e of the ordinance or resolution. Upon a change in rate of a tax levied hereunder, or upon the discontinuance of the tax, the board of trustees shall, on or not later than 5 days a:fter passage ofthe ordinance or resolution discontinuing the tax or effecting a change in rate, transmit to 

### the Department of Revenue·a certified copy ofthe ordinance or resolution effecting such change or discontinuance. Added by P.A. 82-708, § 

### 7, eff. Jan. l, 

### 1982.

I

### Chapter 120, U 440 et seq. 

### 2Chapter 120, 

### n1701 et seq. 3

### Chapter 

### um, tu 1702 and 1703. 4Chaptllr 120, UU 1702 and 1704. 5Chapter 120, U489.19. 6Chapter 111%, fl 355.01. 355.05. Powers in dealing with Regional Transporta

### tion Authority § 

### 5.05. In addition to 

### all its otherpowers, eachDistrict shall, in all its dealings with the Regional Transportation Authority established by the "Regional Transportation Authority Act", enacted by the 78th General Assembly,! have the following powers;

(a) 

### to cooperate with the Regional Transportation Authority in the exercise by the Regional Transportation Authority of all the powers granted it by such Act;

(b) to 

### receive funds from the Regional Transportation Authority upon such terms and conditions as shall be set forth in an agreement between the District and the Regional Transportation Authority, which contract or agreement may be for such number ofyears orduration as the Authority and the District may agree, all as provided in the "Regional Transportation Authority Act";

(c) to receive financial grants from a Service Board, as defined in the "Regional Transportation Authority Act", upon such terms and conditions as shall be set forth in a Purchase of Service Agreement or other grant contract between the Districtand the Service Board, which contract or agreement may be for such number of years or duration as the Service Board and the District may agree, all

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as provided in the "Regional Transportation Authority Act";

(d) to acquire from the RegionalTransportationAuthority or Service Board anyPublic Transportation Facility, as defined in the "Regional Transportation Authority Act", bypurchase contract, gift, grant, ~changefor otherproperly or right.s in properly, lease (or sublease) or installment or conditional purchase contracts, which contracts or leases may provide for consideration 

### to be paid 

### in annual installments during a period not exceeding 40 years; such property may be acquired subject to sueh conditions, restrictions, liens or security or other interests of other parties as the District may deem appropriate and in each casethe District may acquire ajoint, leasehold, easement, license or other partial interest in such property;

(e) to sen, sell by inst.alhnent contract, lease (or suJ:i.. lease) as lessor, ortransfer 

### to, or grant to or provide for the use by the Regional Transportation Authority or a Service Board any Publie Transportation Facility, 

### as 

### definedinthe"RegionalTransportation AuthorityAct" upon such terms andfor such consideration, 

### as theDistrictmay deem proper;

(f) 

### to cooperate with the Regional Transportation Authority or 

### a Service Board for the protection of employees ofthe District and users ofpublic transportation facilities against crime and also 

### to protect such facilities, but neither the District, the member ofits Board nor it;, officers or employees shall be held liable for failure to provide a security or police force, or, if a security or police force is provided, for failure to provide adequate police protection or security, failure 

### to preventthe commission ofcrimes by fellow passengers or otherthird persons orfor the failure to apprehend criminals; and

(g) to file such reports with and transfer such records, papers or documents to the Regional Transportation Authority or a Service Board as may be agreed upon with, or required by, the Regional Transportation Authority or a Service Board.

In exercising any of thepowers granted 

### in this Section, the District shall not be subject 

### to the provisions of any Act making public bidding or notice a requirement of any purchase or sale by a District. Amended by P.A. 84-939, § 2, eff. Sept. 24, 1985.

l Paragraph 701.01 et seq. of this chapter.

355.1. Referendum on tax levy

§ 5,1. (a) The Board ofTrustees of any districtcreated after July l, 1967 (except district,; created under Section 3.1) l has no authority to levy the tax provided for in subparagraph (10) of paragraph (-f) of Section 52 unless the question of authorizing such ta:,. is submitted to the voters of the district and approved by a majority of the voters of the district voting on the question.

The board of trustees of any such district may by resolution cause such question 

### to be submitted 

### to the voters of the district at a regular election as specified in suchresolution. The question shallbe certified, submitted andnotice ofthe election shall be given inaccordancewitQ, the general election law. The proposition shall 

### be in substantially the following form: Shall the board of trustees of

...... Mass Transit District be au- 

### YES thorized to levy a tax on property within the district at a rate of not to exceed 

### .25% on the assessed val- 

### NO ue of such property?
(b) The Board ofTrustees of any districtwhich has the authority 

### to levy the ta:,. at a rate not 

### to exceed 

### .05% provided for in subparagraph (10) of paragraph (-f) of Section 5 of this Act before the effective date of this amendatory Act of 1974 does not have the authority to increase the tax levy to a rate not to exceed 

### .25% unless the question of increasing the taxing authority is submitted 

### to the voters of the district and approved by a majority of the voters of the district voting on the question.

The Board of Trustees of any such district may by resolution cause such question to be submitted to the voters of the district at a regular election as specified in such resolution. The question shallbe certified, submitted andnotice oftheelection shallbe givenin accordance with the general election law. The proposition shall be in substantially the following form:

Shall the board of trustees of

...... Mass TransitDistrictbe giv" 

### YES en the authority 

### to increase their power to levy a tax on property within the district from a rate not to exceed 

### .05% on 

### the assessed value ofsuchproptorly to a rate notto 

### NO exceed 

### .25% on the assessed value of such property? Amended by P.A. 81-1489, § 113, eff. Dec. l, 1980.

l Paragraph 353.1 of this chapter. 2Paragraph 355 of this chapter. 355.2. Employee benefits-Municipal Retirement Fund

§ 

### 5.2. Any district may provide employee benefits through the Illinois Municipal RetirementFundifitmeets the applicable requirements of the Illinois Pension Code t and the Federal Social Security Act.2 Added by P.A 78-811, § 2, eff. Sept. 12, 1973.

l Chapter lOS'h,**~** 1-101 etseq. 242 U.S.C.A. § 801 et seq. 355.3. Prompt payment

§ 5.3. Purchases made pursuant 

### to this Act shall be made in compliance with the "Loeal Government Prompt Payment Act", approved by the Eighty·fourth General Assembly.l Added by P.A. 84-731, § 103, eff. July l, 1987.

1Chapter 85,**~** 6601 etseq. 356. Exemptionfrom taxation

§ 6. Every District shall be exempt from all St.ate, county and municipal taxes and registration and license fees. All property of a District is declared to be public property devoted to an essential public and governmental function and purpose and shall be exempt from all taxes

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and special assessments ofthe State or by any subdivision thereof. 357. Annual audit

§ 7. It shall be the duty of the Board of Trustees of every District to ca.use an annual audit ofits accounts to be made by a certified public account.ant of Illinois. The audit shall be completed, filed with the District within 4 months after the close of each fiscal year of the District. 

### Certified copies of annual audits shall likewise be filed with the Secret.ary of State and with the governing body or bodies which created the District. 358. Law applicable

§ 8. Every Districtshallbe subject to the provisions of "An Act concerning public utilities", approved June 29, 1921, as heretofore and hereafter amended.l

1Paragraph 1-101 et seq. of this chapter. 358.1. Annexation of contiguous territory-PetitionFiling-Notice of hearing § 8.1. Any territory which is contiguous to a local mass transit district organized under Section 3.1 of this Actl and which is not included in any local mass transit district may be annexed 

### to such contiguous local mass transit district in the manner provided by this Section.

A petition, signed by 

### % of the legal voters residing in the territory sought to be annexed and addressed to the circuit court of the county in which the localmass transit district to which annexation is sought was organized re· questing that the territory described in the petition be annexed to such local mass transit district, may be filed with the clerk of that court. The clerk of the court shall thereuponpresentsuch petition to the courtwhich shall be not less than 20 nor more than 45 days after the date the petition was filed. The court shall give notice ofthe time, place and date of the hearing, by publication in one or more newspapers having a general circulation within the local mass transit district and within the territory sought to be annexed thereto, which publication shall be made at least 15 days before the date set for the hearing. Added by P.A. 76-1292, § l, eff. Sept. 15, 1969.

l Paragraph 353.1 of tbi$ chapter. 358.2. Hearing-Continuance-Ortler-Transmission of order § 8.2. At the hearing provided for in Section 8.11 the court shall preside and any interested pers.on shall be given an opportunity to be heard touching upon the suffi~ ciency of the petition and upon the boundaries of the territory sought to be annexed to the local mass transit district. The court may continue such hearing from time to time as the court may deem necessary.

Upon the conclusion of the hearing the court shall enter an order, which shall be filed of record in the court, finding whether the petition conforms to the requirements of this Act and, if he so finds, describing the territory 

### to be considered for annexation to the local mass transit district and directing that the question of the annexation of such territory be submitted to the board of trustees of the local mass transitdistrict forfinal action. The clerkof the court shall transmit a certified copy of such order to the chairman of the board of trustees of the local mass transit district. Amended by P.A. 88-843, § 42, eff. Sept. 14, 1983. 1Paragraph 358.l ofthis chapter. 358.8. Trustees-Meeting-Vote on ordinance of an· nexa.tion-Certified copy of ordinance-Filing with court § 8.3. Within 20 days after receiving a copy of such order, the chairman of the board of trustees of the local mass transit district shall call a meeting of the board 

### to consider the question of annexing the territory described therein to the district. A 

### %vote of the board is required to annex such territory to the district and action of the board shall be by ordinance of annexation and the vote on such ordinance shall be entered upon the records of the district. 

### Ifthe vote of 

### %of the members of the board. is favorable to annexation of such territory, the secretary of the board shall file a certified copy of the ordinance of annexation with the court that ordered the consideration of the question, and thatordinance shall be filed ofrecord. in such court. Amended by P.A. 83-843, § 42, eff. Sept. 14, 1983. 358.4. Disconneetion of area-Grounds-Owners-Pe· tition-Hearing-Order-Tax:ation, effect of disconnection § 8.4. The owner or owner of record of any ar€aof land consisting of one or more tracts, lying within the corporate limits of any local mass transit district which (1) is not contiguous in whole or in part to any other local mass transit district; (2) contains 20 or more aeres; (8) is notsubdivided into municipallots andblocks; (4) is la<:ated on the border of the local mass transit district; and (5) if disconnected, 

### will not result in the isolation of any part of the local mass transit district from the remainder of the local mass transitdistrict, may have the area disconnected as follows:

The owner or owners of record of any such area shall file a petition in the Circuit Court of the county in which the land is situated, alleging facts in support of the disconnection. Ifsuch area of landis located in 2 ormore counties, the petition shall be filed in the circuit court of the county in which the largest portion of such area of land is located. The local mass transitdistrictfromwhich disconnection is sought shall be made a Defendant and it or any taxpayer residing in the local mass transit district may appear and defend against the petition. If the court finds that theallegations of the petition are true, and that the area of land is entitled to disconnection, it shall order the designated land disconnected. However, the discon· nection of any such land does not exempt it from taxation for the purpose of paying any bonded indebtedness con· tracted by the district before the filing of the disconnec· tion petition. The disconnection order shall be filed of record in the court and a certified copy of the order shall be sent 

### to the county clerk who shall adjust the 

### t.ax records accordingly. Amended by P.A. 88-343, § 42, eff. Sept. 14, 1988. 359. Discontinuance

§ 9. Whenever the Board of Trustees of any District shall determinethatthere is no longera public needforits transportation services or thatother adequate services are or can be made available, and that it should terminate its existence and services, it may by resolution so certify to the participating municipalities and counties whichcreated it. Iftheparticipating municipalities and counties approve of such discontinuance, they may by ordinance or resolu·

## (

(

## 111%**~** 

## 359 CHAPTER 111%-PUBLIC UTILITIES 584 tion, as the case may be, authorize the Distriet to discontinue its services and wind up its affairs. A copy of such ordinance or resolution or both, shall be filed with the county or municipal clerk or clerks and the Secretary of State. Afterpayment ofall its debts and settlementof all vbligations and claims, any funds remaining afterthe sale and disposition of its property shall be disposed of by payment to the treasurer of the eounty or municipality which created it, or ifcreated by 2 or more municipalities orcounties, by payment 

### to the several treasurers, first, to repey in whole orpro rata, funds advanced to the authority, and the balance, 

### if any, pro rata according to the length of scheduled transportation route miles operatedin the srveral municipalities and unincorporated areas ofthe several counties during the preceding calendar year. CRIMINAL CARELESSNESS AN ACT 

### to revise the law in relation to criminaljurisprudence. R.S.1874, p. 348 (Division I), approved March 27, 1814, eff. July l, 1874. 361. Common carriers-Penalty

§ 49. Wnoever, having personal management or con· trol of or over any steampoat or other public conveyance used for the common carriage of persons, is guilty of gross carelessness or neglect in, or in relation to, the conduct, management or control of such steamboat, or other public conveyance, while being so used, for the common carriage of persons, whereby the safety of any person shall be endangered, shall be guilty of a Class 4 felony. Amended by P.A. 77-2590, § l, eff. Jan. 1, 1973. EMPLOYEES' WATER SUPPLY AN ACT requiring railroad and railway companies to

provide their employees on trains with an adequate supply of water dispensed in a sanitary manner. Laws 1945, p. 1205, approved and eff. July 18, 1945. Title amended by Laws 1957, p. 1117, § 2, approved and eff. July 5, 1957. 371. Supply of clean water-Dispensing in sanitary manner § 1. Employees while operating a railroad or railway locomotive or while working in or near a caboose on a trainshall be provided by their employer with an adequate supply of safe, clean water satisfactory for drinking purposes, dispensed in a sanitary manner. The employer shall either furnish individual drinking utensils for such employees or provide for the dispensation of drinking water in such a manner as to make individual drinking utensils unnecessary. Amended by Laws 1957, p. 1117, eff. Jan. l, 1958. 372. Penalty for violating Act

§ 2. Whoever violates the provisions of this Act shall 

### be guilty of a petty offense and shall be fined not less than $5 nor more than $50 for ead1 offense. Amended by P.A. 77-2591, § l, eff. Jan. 1, 1973. 373. Enforcement ofAct

§ 

### 3. The provisions ofthis Actshallbeenforced bythe Illinois Commerce Commission. FRAUDS ON GAS, ETC., COMPANIES Act of March 2'7, 1874 (Division I), resumed. 381. On grui, water, and electric companies-Injuring or tampering with meter-Penalty § 117. Any person, who, with intent to injure or defraud any company, body corporate, copartnership or individnal, shall injure, alter, obstructorprevent the action of any meter provided for the purpose of measuring and registering the quantity of gas, water or electric current consumed 

### by or atany burner, orifice or place, orsupplied to any lamp, motor, machine or appliance, orshall cause or procure or aid the injuring or altering of any such meter or the obstruction orprevention ofits action, or shall make or cause 

### to be made with any gas pipe, water pipe or electrical conductor any connection so as to conduct or supply illumination or inflammable gas, water or electric current to any burner or orifice or lamp ormotor orother machine or appliance from which such gas, water or electricity may be consumed or utilized without passing through or being registered by a meter or without the consent or acquiescence of the company, municipal corporation, body corporate, copartnership or individual furnishing or transmitting such gas, water or electric current through such gas pipe, water pipe or electrical conductor, shall be guilty of a Class B misdemeanor. Amended by P.A. 77-2590, § l, eff. Jan. 1, 1973. 382. Tampering with meter o:r counting device

§ 117a. Any person, who, with the intent to defraud, tampers with, alters, obstruct.s or prevents the action of any meter, register or other counting device which is a partofany mechanical orelectrical machine, equipment or device which measures service, without the consent of the owner of such machine, equipment or device, shall be guilty of a Class B misdemeanor. Amended by P.A. 77-2590, § 1, eff. Jan. 1, 1978.
ELECTRIC SUPPLIER ACT AN AC'r in relation to electric suppliers. Laws 1965, p.

1206, approved and eff. July 2, 1965. 401. Short title

§ 1. This Act shall be known and may be cited as the "Electric Supplier Act". 402. Legislative declaration

§ 2. The General Assembly declares it 

### to be in the public interest that, in orderto avoid duplication of facilities a.nd to minimize disputes between electric suppliers which may resuitin inconvenience and diminished efficiency in electric service to the public, any 2 or more electric suppliers may contract, subject to the approval of the Illinois Commerce Commission, as to the respective areas in which each supplier is to provide service. 402.1. Public policy

§ 2.1. Itis declared to be thepublic policy ofthis State, pursuant to paragraphs (h) and (i) of Section 

### 6 of Article VII ofthe 1970 Illinois Constitution, that, except as other· wise provided in this Act, any power or function set fo~h in this Act to be exercised by the State is an exclusive power or function and ~uch power orfunction may not be 

# j l t '

# I



# (



# (

## (

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## ( Department



### ' Illinois of Revenue Raymond T

.Wagner, Jr. , Director 

# Informational Bulletin FY95

- 23 December 1994



# • St. Clair County Metro-EastTransit DistrictTax Increase 

# I TO:

# IAll Retailers Howdo I paythetax? When must I begin collecting and payingthis 

# Conducting The 0.75 percent rate for this 

## tax increase? 

# Business in the St. tax is part ofthe combined rates 

# ClairCounty which are preprinted You must begin collecting and 

# Metro-EastTransit paying this tax increase on 

# • on Lines 4a and 5a ofyour taxable salesyou make on or 

# District Form ST-1, Sales and Use afterJanuary 1, 1995. Tax Return, 

## Effective January 1 , 1995, the on Lines 4a and 5a ofyour 

## Whatare myspecial filing St. Clair County Metro-East 

# • instructions? Transit Districtwill increase its Form ST-2, Multiple-Site mass transit tax rate from 0

.25 Form (for multiple

-sitefilers), 

# • ST

-1 and ST-2filers: percentto 0

.75 percent. and

on Section 6, Line 4, ofyour 

# • Monthlyfilers Retailers conducting business 

# • Your January return will in the following St. Clair County Form ST-556, Sales Tax be the first return to townships will be affected by Transaction Return. reflect the tax increase

. It this increase: Belleville, Can

## What arethe new is due on or before teen, Caseyville, Centreville, February 20, 1995

. East St. Louis, Engelmann, 

## combined rates? Fayetteville, Freeburg, Leba- 

# • Quarterly filers non, Lenzburg, Marissa, Your rates will depend upon Your first-quarter return Mascoutah, Millstadt, New your business location. You will will be the first return to Athens, O'Fallon, Prairie Du find the new combined rates reflect the tax increase. It Long, Shiloh Valley, St. Clair, you must useto collect and pay is dueon or before April Smithton, Stites, Stookey, and the tax on the rate table en- 20, 1995. Sugar Loaf

. closed with this bulletin

. Ifyou need assistance in determining 

# • Annual filers It may be necessary to adjust your rates, call ourTaxpayer Your 1995 return will be your cash registers and any Assistance Division at 1 800 the first return to reflect computer programs you use so 732-8866 or217 782-3336. the tax increase. It is due that, beginning on January 1, on orbefore January20, you will be collecting and paying 1996

. the correct amounts.

# Page2

• ST-556 filers: Any new returns you orderwill be preprinted with the correct rate. In the meantime, you may 

### use your existing stock. Rememberto use the new rate of

## 7 percent 

### (see the enclosed rate table) on Section 6, Line 

### 4, ofyour return for any transaction with a delivery date on orafter January 1, 1995. 

## What do I dowhen a customer pays me after January 1for a purchase made earlier?
Ifthe original purchase was subjectto a different tax rate from the rates in Lines 4a and 5a of Form ST-1, you must report these receipts on Line Sa. 

## Questions?
If

### you have questions or need 

### more information, please call or write us. Ourtelephone numbers and address are printed at the bottom ofthis bulletin.

CALL: 1 800 732-8866 or 217 782-3336 

# FY95·23

ft, PRINTED ON RECYCLED PAPER- SOY-BASE INK »:--;'t, BY AUTr!ORITY OFTHE STATE OF ILLINOIS

,..,.. (23,300 copies- 12194

- P.O. Number 5-07191 

## I

(

FOR INFORMATION
... 1 800 544-5304 TDD teletype device for hearing impaired only WRITE: Illinois Department of Revenue, 101 W. Jefferson St., P.O. Box 19044, Springfield, 

### JL 62794-9044

## I 

# Sales Tax Rates in the St. Clair County Metro-East Transit District

The following table outlinesthe combined sales tax rates effective January 1, 1995, for 1) general merchandise, 2)food, drugs, and medical appliances, and 3) items reported on Form ST-556for all incorporated municipalities and unincorporated areas within the St. Clair County Metro-EastTransit District. You will find the combined rates preprinted on your Forms ST-1, ST-2, and ST-556. ST-1/ST-2 ST-1/ST-2 

### ST-556 General Merchandise Food, Drugs, and Combined Rate Medical Appliances Rate 

### Rate Effective 1/1/95 Effective 1/1/95 Effective 1/1/95 

### Incorporated Municipalities
Alorton 7% 

### 1.75% 7% 

### Belleville 7.25% 

### 1.75% 7% 

### Brooklyn 7% 

### 1.75% 

## 7% Cahokia 7% 1.75% 

## 7% Caseyville 7% 1.75% 

## 7% Centreville 7% 

### 1.75% 7% 

### Collinsville 7% 1.75% 7% 

### Columbia 7% 1.75% 7% 

### Dupo 7% 1.75% 7% 

### East Carondelet 7% 1.75% 7% 

### East 

## St Louis 8% 1.75% 7% 

### Fairmont City 7% 1.75% 7% 

### Fairview Heights 7.25°/o 1.75% 

### 7% 

### Glen View 7% 1.75% 7% 

### Lebanon 7% 1.75% 7% 

### Mascoutah 7% 1.75% 7% 

### National City 7% 1.75% 7% 

### New Baden 7% 1.75% 7% 

### O'Fallon 7% 1.75% 7% 

### Sauget 8.5% 1.75% 7% 

### Shiloh 7% 1.75% 7% 

### Smithton 7% 1.75% 7% 

### Summerfield 7% 1.75% 7% 

### Swansea 7% 1.75% 7% 

### Washington Park 7% 1.75% 7% 

### Unincorporated Areas 7% 1.75% 7%(



## (

## ( 3610/5.01. Metro East Mass Transit District: use and occupation taxes, 70 ILCS 3610/5.01



### 70 ILCS 3610/5.01 

### lVEST'SSMITH-1-IURD ILLINOISCOMPILEDSTATUTESANNOTATED CHAPTER70. SPECIAL DISTRICTS TRANSIT ACT 3610. LOCAL MASS TRANSITDISTRICTACT

361015.01. 

### Metro East Mass Transit District; use and occupation taxes

§ 

### 5.01. Metro East Mass Transit District; use and occupation taxes. (a) TheBoard ofTmstces ofany :\Jetro East Mass Transit District may, byordinance adopted with the concurrence oftwothirds ofthe then tmstees, impose throughout the Dist1ict any or all ofthe taxes provided in this Section. All taxes imposed 

### underthis Sectionshall beusedonlyforpublic masstransportation systems,andthe amountusedtoprovide masstransitservice to unseffed areas ofthe District shall be in the same proportion to the total tax proceeds as the number ofpersons residing in the unserved areas is to the total population ofthe District. Except as othenviseprovided in this Act, taxes imposed under this Section and civil penalties imposed incident thereto shall be collected and enforcedby the State Department ofRevenue. TI1e Department shall have the powerto administerandenforce the taxes and to detennine a!! rights forrefunds for erroneous payments ofthetaxes.

(b) The Board may impose a Metro East Mass Transit District Retailers' Occupation Tax upon all persons engaged in the business ofsellingtangiblepersonalpropertyatretail inthe districtatarateof\'4ofl

### %ofthe grossreceipts from the salesmade inthecourseofsuchbusinesswithin the district. Thetax imposedunderthis Section andail civilpenalties thatmaybe assessed
as an incident thereofshall be collected and enforced by the State Department ofRevenue. The Department shall ha\'e full powertoadminister and enforce this Section;to collect all taxes andpenalties so collectedin the mannerhereinafterprovided; andto determine all rights to 

### creditmemoranda arising on accountoftheerroneous payment oftax orpenaltyhereunder. In the administration of, and compliancewith, this Section, the Departmentandpersonswho are subjectto this Section shall havethe
samerights, remedies,privileges,immunities,powersandduties, andbe subjecttothe sameconditions, restrictions, limitations, penalties, exclusions, exemptions and definitions oftem1s and employ the same modes ofprocedure. as are prescribed in Sections 1, 1 a, Ia-1, lc, Id, 1 e, If, Ii, lj,2 through 2-65 [FN l

### J(in respect to all provisions therein otherthan the State rate of tax), 2c, 3 [FN:2] (except as to the disposition oftaxes and penalties collected), 4, 5. Sa, Sc, 

### 5d, Se, Sf, Sg, 

### Sh, Si, Sj, 

### Sk, 5/, 6, 6a, 6b, 6c, 7, 8, 9, I0, 11, 12, 13, and 14 ofthe Retailers' Occupation Tax Act lFN3] and Section 3-7 ofthe Unifom1 Penalty and Interest Act, [H<4J as fully as ifthose provisions were set fmth herein.

Persons subject to any tax imposed under the Section may reimburse themselves for their seller's tax liability hereunderby separatelystatingthe tax as an additionalcharge,which chargemaybestated incombination,inasingleamount,withStatetaxes that sellers are required to collect under the Use Tax Act, [FN5] in accordancewith suchbracket schedules as the Department mayprescribe.

Wheneverthe Department determines that a refund shouldbe made underthis Section to a claimant insteadofissuing acredit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, and to the personnamed, inthe notification from the Department. The refund shallbe paidby the State Treasurer out ofthe Metro EastMass Transit Districttax fund establishedunderparagraph (g) ofthis Section.

If

### a tax is imposed underthis subsection (b), a tax sha!lalso be imposed undersubsections (c) and (d) ofthis Section. Forthepurposeofdeterminingwhetherataxauthorized underthis Section is applicable, a retail sale, byaproducerofcoal or othermineral minedin Illinois, is asale atretailat the place wherethe coal orothermineral mined in Jl!inois is extracted from the eaith. Thisparagraph does not apply to coal or othermineral when it is delivered orshipped by the seller to the purchaser at a point outside 111inois so that the sale is exemptunderthe Federal Constih1tion as a sale in interstate or foreign commerce. Nothinginthis Sectionshallbeconstrnedto authorizetheMetroEastMassTransitDistricttoimposeataxupontheprivilegeof engagingin anybusiness whichundertheConstitutionoftheUnitedStatesmaynotbemadethe subjectoftaxationbythis State.

(c) Ifa tax has been imposed under subsection (b), a :vletro East Mass TransitDistrict Service Occupation Tax shall also be imposedupona!! persons engaged,

### illthedistrict, inthebusinessofmakingsales ofsen'ice,who, as an incident to makingthose salesofservice, transfer tangible personal propertywithin theDistrict, eitherin the fom1 oftangible personal property orin the3610/5.01. Metro East Mass

### Transit District: use and occupation taxes, 70 !LCS 361015.01



### fom1 ofreal estate as an incident to asale ofserYice. Thetax rate shall be 

### Y4% ofthe sellingprice oftangiblepersonal property sotransferredwithin thedistrict. Thetax imposedunderthisparagraphandall civilpenaltiesthatmaybe assessedas an incident thereofsha!lbe collectedand enforcedbythe StateDepartmentofRevenue. TheDepartment shallhaYe full powerto administer and enforce this paragraph: to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties 

### so collected in the mannerhereinafter provided; and to determine all rights to credit memoranda arising on account ofthe effoneous payment oftax orpenalty hereunder. In the administration of, and compliance with this paragraph, the Department and persons who
are subjectto this paragraph shall haw the samerights, remedies, privileges, immunities. powers and duties, and be subjectto the same conditions. restrictions, limitations, penalties. exclusions, exemptions and definitions oftem1s and employ the same modes ofprocedure as are prescribed in Sections la-1, 2 [FNO] (

### except that the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the Authority), 2a, 3 through 3-50 [f;\"7] (in respect to all provisions therein otherthan the State rate oftax). 4 [Fl\1'] (except that the reference to the State shall be to the Authority), 5, 7, 8 [FK9] (except that thejmisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the Dist1ict), 9 [F!'\10] (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State tax), 10. 11, 12 

### [f;-.:IJJ (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act) [Fl\12], 13 [8'13] (except that any reference to the State shall mean the District). the first paragraph ofSection 15, 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act [f;-.:J4] and Section 3-7 ofthe Unifom1 Penalty and Interest Act, as 

### fully as ifthoseprovisions weresetforth herein.

Persons subject to any tax imposed under the authority granted in this paragraph may reimburse themselves for their serviceman's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination,in asingleamoum.with Statetaxthat servicemenare authorizedto collectunderthe Service Cse TaxAct, [FN

### 15] in accordance with such bracket schedules as the Department mayprescribe.

Whenever the Department detem1ines that a refund should be made under this paragraph to a claimant instead ofissuing a creditmemorandum, the Department shal! notifythe StateComptroller,whoshall causethewarrant to be drawn for the amount specified. andto thepersonnamed. in the notification from theDepartment. Therefund shall bepaidbythe StateTreasurerout ofthe Metro EastMass Transit District tax fund established underparagraph (g) ofthis Section. (

Nothing in this paragraph shall be constmed to autho1ize the District to impose a tax upon the privilege ofengaging in any business which under the Constitution oftheUnited States may not be made the subject oftaxationby the State.

(d) If

### a tax has been imposed under subsection (b), a Metro East Mass Transit District Use Tax shall also be imposed upon the pri\"ilege ofusing. in the district, any item oftangible personal property that is purchased outside the dist1ict at retail from
a retailer, and that is titled orregistered with an agency ofthis State's government, at a rate of'!i% ofthe sellingprice ofthe tangible personal property within the District, as "sellingprice"is defined in the UseTax: Act. The tax shall be collected from persons whose Jllinois address for titling orregistration purposes is given as being inthe District. The tax shall be collected by the Department ofRevenue for the Metro East Mass Transit District. The tax mustbe paid to the State, or an exemption determination must be obtained from the Department ofRevenue, beforethe title orcertificate ofregistration for the property may be issued. The tax orproofofexemption may be transmitted to theDepartmentbywayofthe State agency,vith which, or the State officerwith,vhom, the tangible personal property must be titled orregistered ifthe Department and the State agency or State officer detem1ine that this procedure will expedite the processing ofapplications for title orregistration.

The Department shall have full power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose oftaxes, penalties and interest so collected in the manner hereinafterprovided; and to detennine all rights to creditmemoranda orrefunds arising on account ofthe erroneous payment oftax, penalty orinteresthereunder. Inthe administration of, and compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the samerights. remedies, privileges, immunities, powers and duties, and be subject to the same conditions,restrictions, limitations, penalties, exclusions, exemptions and definitions of tenns and employ the same modes ofprocedure, as arc prescribed in Sections 2 [FN16] (except the definition of"retailer maintaining a place ofbusiness in this State"), 3 through 3-80 [Fl\!

## 71 ( except provisions pertaining tothe State rate oftax, and except provisions concerning collection orrefunding of the taxbyretailers). 4, lI, 12, l2a, 14, 15, 19 [Fl\!8] (except the portions pertaining to claims byretailers and except the last paragraph concerning refunds), 20, 21 and 22 ofthe Use Tax: Act [Fi\'.19] and Section 3-7 ofthe Uniform Penalty and Interest Act, that are not inconsistent with this paragraph, as fully as ifthose provisions were set forth herein.

# I 3610{5,01. Metro East Mass Transit District: use and occupation taxes, 70 ILCS 3610!5.01



### Whenever the Department dete1111ines lhat a refund should be made under this paragraph to a claimant instead ofissuing a creditmemorandum, the Depaitment shall notii)' the State Comptroller, who shall cause the orderto be drawn for the amount specified. and to theperson named, in thenotification from the Department. The refund shall be paidby

### the StateTreasurerout ofthe Metro EastMass Transit Districttax fund establishedunderparagraph (g) ofthis Section.

(d-5) The county board ofany county participating in the Metro East Mass Transit District may authorize, by ordinance, a 

### referendum on the question of"·hetherthe tax rates for the Metro East Mass Transit District Retailers' Occupation Tax. the Metro East Mass Transit District Service Occupation Tax, and the Metro EastMass Transit District Use Tax for the District shouldbe increased from 0.25%, to 0.75%. Upon adopting the ordinance, the county board shall certify the proposition to the proper election officials \vho shall submit the proposition to the \'oters ofthe District at the next election, in accordance with the general election law.

The proposition shall be in substantiallythe following form:

Shall the tax rates for the Metro EastMass Transit District Retailers' OccupationTax, the Metro East Mass Transit District Service OccupationTax, and the Metro East Mass Transit District Use Taxbe increased from 0.25%to 0.75%'? The votes shallbe recorded as "YES" or "NO". If

### a majority ofall rntes cast on the proposition are for the increase in the tax rates, the Metro EastMass Transit District shall begin imposing theincreased rates in the District, and the Department of Revenue shall begin collectingthe increasedamounts, as provided underthis Section. An ordinance imposing or discontinuing
atax hereunderor effecting a changein the r<1-te thereofshall be adopted and acertified copythereoffiledwiththe Depmtment
on orbefore the first dayofOctober, whereupon the Depa1tment shall proceedto administer and enforce this Section as ofthe first day ofJanuary next following the adoption and filing.

If

### the voters have approved a referendum under this subsection, before NoYember I, 1994, to increase the tax rate under this subsection. the Metro East Mass Transit District Board ofTrnstees may adopt by a majority vote an ordinance at any time beforeJanuary I, 1995 that excludes fromtherateincrease tangiblepersonal propertythat is titledorregisteredwith an agency ofthis State's government. The ordinanceexcludingtitled orregistered tangible personal propertyfrom the rate increase must be filed with the Deparhnent at least 15 days before its effective date. Atanytime afteradopting an ordinance excluding from the rate increase tangible personal prope1tythatistitledorregistered with an agencyofthis State's government. the Metro East Mass Transit District Board ofTmstees may adopt an ordinance applying the rate increase to that tangible personalproperty. Theordinance shall be adopted, and a certifiedcopy ofthat ordinance shallbefiled with the Department, on orbefore October I, \\'hereuponthe Department shallproceedtoadministerandenforce the rate increase against tangible personal property titled
orregisteredwith an agency ofthis State's government as ofthefollowing January I.



### (e) A certificate o:fregistration issued bythe State Department ofRevenue to aretailer under the Retailers' Occupation Tax Act [Fi\"20] or under the SerYice Occupation Tax Act [Fl\"21] shall pennit tl1e registrant to engage in a business that is taxed underthetax imposed under paragraphs (b), (c) or (d) ofthis Section and no additional registration shall be required underthe tax. Acertificate issued underthe Use TaxAct or the Sen·iceUse Tax Act shall be applicable with regard to any tax imposed underparagraph (c) ofthis Section.

(t) 

### The Board may impose a replacementvehicle tax of550 on any passengercar, as defined in Section 1-157 ofthe Illinois Vehicle Code, (FN22] purchased within the districtarea by or on behalfofaninsurance company to replace a passengercarof
an insuredperson in settlement ofatotalloss claim.Thetax imposedmaynotbecomeeffectivebeforethe first day ofthemonth following the passage ofthe ordinance imposing the tax and receipt ofa certified copy ofthe ordinance by the Departmentof Revenue. The Department ofRevenue shall collect the tax for the district in accordance with Sections 3-2002 and 3-2003 of the lllinois Vehicle Code. (F~23]

The Departmentshall immediatelypayO\'er to the StateTreasmer, ex officio, as trustee, all taxes collectedhereunder. On or beforethe 25th day ofeach calendarmonth, the Department shall prepare and cettifyto the Comptrollerthe disbursement of stated sums ofmoneyto named districts, the districts to bethose from which retailershavepaid taxes orpenalties hereunderto theDepa1tmentduringthesecond precedingcalendarmonth. Theamounttobepaidtoeachdistrictshallbetheamountcoltected hereunder during the second preceding calendar month by the Depaiiment, less any amount detem1inedbythe Departmentto be necessaryforthe paymentofrefunds. Within 10 daysafterreceiptbytheComptrollerofthedisbursementcertificationtothe districts, provided for in this Sectionto be given to the Comptrollerbythe Department, the Comptroller shall cause the orders tobedrawn for the respective amounts in accordance with the directions contained in the certification.361015.01. Metro East Mass Transit District; use and occupation taxes, 70 1LCS 361015.01

(g) Any ordinance imposing or discontinuing any tax under this Section shall be adopted and a certified copythereoffiled withthe Departmenton or beforeJune I, whereuponthe Department ofRevenue shall proceedto administer and enforce this Sectiononbehalfofthe MetroEastMassTransit District as ofSeptember 

### I next following such adoption andfiling. Beginning 

### Jrnmary 1. I992, an ordinance or resolution imposing ordiscontinuing the tax hereunder shall be adopted

### and a certified copy thereoffiled with theDepartmenton orbeforethefirst day ofJuly. whereuponthe Departmentshall proceedto administerand enforce this Section as ofthe first day ofOctobernext following such adoption and

### filing. Beginning January 

### I, 1993. except
as provided in subsection (d-5) ofthis Section, an ordinance orresolutionimposing ordiscontinuing the tax hereundershall be adoptedand a certified copythereoffiled withthe Departmentonorbeforethefirst dayofOctober,whereupontheDepartment shall proceedto administerand enforce this Section as ofthe first day ofJanuary next following such adoption and filing.

(h) The State Department ofRevenue shall, upon collecting any taxes as provided in this Section, pay the taxes over to the State Treasurer as trustee for the District The taxes shall be held in a trust fund outside the State Treasmy. On orbefore the 25th day ofeach calendarmonth, the State Department ofRevenue shall prepare and certifyto the Comptrollerofthe State of lllinois the amount to bepaid to the District, \vhich shall be the thenbalance 

### in the fund, less any amount determinedbythe Departmentto be necessary for the payment ofrefunds. Within 

### IO days afterreceipt bythe Comptroller ofthecertification of theamounttobepaid to the District. the Comptrollershall cause

### an ordertobedrawnforpaymentfor the amountinaccordance with the direction 

### in the certification. CREDIT(S)
1993 MainVolume
Laws 1959, p. 1635, §5.01, added by P.A. 81-1471, 

### § 1, eff. Sept. 1l, 1980. Amended by P.A. 82-1013. § 7, eff. Sept. 17. 1982;P.A 83-114, §6, eff. Aug. 19, 1983:P.A. 83-1353. 

### §4, eff. Sept. 8, 1984: P.A. 84-832, Art. II.§ 15. eff. Sept. 23, 1985; P.A. 84-1481, § 2, eff. Feb. 17, 1987; P.A. 85-1135, Art. II,§ 5, eff. Jan. l, 1990; P.A. 86-928, Art. 3. § 4, eff. Jan.!, 1990; P.A. 86-1475, Art. 5, §5-10, eff. Jan. 10, 1991; P.A. 87-205, ArL 2, 

### § 2-6, eff. July 1, 1992; P.A. 87-205, Art. 4, 

### §4-5, eff. Jan. l, 1994; P.A. 87-895, Art. 2, 

### § 2-63,eff. Aug. 14, !992. (
1995 PocketPait
AmendedbyP.A. 88-115. 

### § 5, eff Oct. 28, 1993; P.A. 88-672, §20, eff. Dec. 14, 1994.
FORMERREVISED STATUTESCIT ATIOK
1993 Main

### Volume Formcrlylll.Re\·.Stat.1991. cl1- 111 #,**~** 355.0J.



## lFl\l]35 ILCS 120.:J to 

### 120 Ja-1, 120·k to 120·11: 120 !

### i, 

### 120:l

### j, 120,2 to 120-'2-65. [FN2]35 ILCS 120-2c, 120"3. [FN3]3'.' ILCS 120:'4 to 120'5a, 120 5c to 120 6c, 120'"7 to 120.;\

### J, 120'!2to 120114. [FN4]351LCS 735·3-7. [FN5]35 ILCS 105,J et seq. [FN6]35 ILCS 115'1a-l. 115-'2. rFN7]35 ILCS 1J512a, lJ5r3 to l !5'3-50. [FN8]35 TLCS 11 :5,4.( 

### 3610/5.01. Metro EastMass Transit District; use and occupation taxes, 70 JLCS 361015.01

[F:\"9]35 ILCS 

### 115 :', 115 7. !15.8. [FN10]35 ILCS 

### I15 9. [F;--..:111 FommIll.Rev.Stat. Chapter 120,,- 439.1 IO(repealed), 35 ILCS 115 JOa to 115.'12. [F:\12]35 JLCS 120'2b. [Fl\'13]35 ILCS 115 13. [FN14] 35JLCS 115/15 to 115/20. [F;\']5]35 ILCS 

### 110·1 et seq. 

### [F\!6]35 lLCS 105'2. [Fl\'17]35 ILCS 105 1

### 3 to 105/3-80. [Fl\l8]35 JLCS !05 4, 105 11, 105.'l2, 

### l05..-!2a, 105 14, 105-15, 105 l9. [FNl9]35 ILCS 

### l05i20 to 105,..22. [F;\20]35 ILCS 120 

### I et seq. [Ft\21]35 ILCS 115· I et seq. [Fl\22]625 JLCS 5,..1-157. [FN23]625 ILCS 5'3-2002 and513-2003.
HISTORICALAND STATUTORYNOTES
P.A. 82-1013, in the last sentence ofthe first paragraph ofsubd. (b), inserted "andshall includeexemptions(t) 

### and (g)

### therein unless the Board provides othenvisebyordinance"; in the last sentence ofthe first paragraph ofsubd. ( c), inserted ··and shall include exemptions (d-2) and {d-3) unless lhe Board provides other1.vise by ordinance"; in the second sentence ofthe second paragraphofsubd. (d), inserted ··and sha!l includetheinapplicabilityofthe taxto certaintangible personalpropertyofcommon carriers byrail as provided in paragraph (g) unless the corporate authorities provide othenvisebyordinance''.

P.A. 83-114 inserted subd. (t) 

### and redesignated fom1er subds. (t) 

### and(g) as (g) 

### and (h).
P.A. 83-1353, which incorporated the amendmentby P.A. 83-114, apparently inadvertentlyomitted subds. (g) and (h), which were not shown as deleted in strikeout.

P.A. 83-1353, in the first paragraph ofsubd. (t), 

### substituted "'passenger car" for ''motor vehicle'' and ··vehicle": substituted
·• 1-157"for"'l-146";inserted·'withinthedistrictarea"; andsubstitutedthepresentsecondsentencefor

### afon11er secondsentence which read, "Within 30 days ofpassage ofan ordinance imposing such tax, the corporate authority shall forward a certified copy ofsuch ordinanceto the Department ofRevenue:'.

Art. 

### I, § 3, ofP.A. 84-832, the 1985 Revisory Act, provides inpartthat Art. 

### II provides for 

### the nonsubstantiyerevision or renumbering orrepeal 

### ofsections by two ormorePublic Acts ofthe 83rd General Assembly which were not resolvedby lhe General Assembly. Forprovisions ofArt. I,§ 1, relating to intent and supersedure, Art. 

### I, § 3, and Art. 

### IV,§ I, relating to effective dates and acceleration ofActs with latereffective dates or extension orrevival ofrepealed Acts, see notes following ch. 23, ~j 5-5.

### 361015.01. Metro East Mass TransitDistrict; use and occupation taxes, 70 ILCS 3-610!5.01

P.A. 84-1481, in the first paragraphs ofsubds. (b) and (c). inserted "excludingthe exemptionsprovidedin Sections ld, le, lf, 5k and 5/": and inthe second paragraph ofsubd. (d). inserted "(exceptthe exemptionsrelating to enterprise zones)".

P.A. 87-205,Art. 2, inthe subdiYisionrelating lo adopting and filing a certifiedcopyofanordinanceorresolution imposing or discontinuingthe tax hereunder, oreffecting achangein the ratethereof, added provisions covering therespective time periods beginning with Jan. I, 1992 and beginning withJan. l. 1993.

P.A. 87-205.Art.4,revisedstahitoryreferencesandlanguagerelatingto theenactmentoftheUnifom1PenaltyandInterestAct.
Section 5-l ofP.A. 87-205, approYed September3, 

### 1991. as amendedby P.A. 87-1189, Art. 

### I,§ 4, provides:
"EffectiYe date. Articles 3 

### and4 

### take effect January I. 1994. Articles I 

### and 5take effect upon becominglaw.''
P.A. 87-895. the Firs! 1992 General Re\"iSOf)' Act, proYides 

### in Article 2 for the revision and renumbering ofcertain Sections ofActs which ha\·e been added oramendedbymore than one Act ofthe 87th General Assembly: incorporates amendments to repealed Acts into successor laws passed by the same General Assembly; conects errors, revises cross-refefences and deletes obsoletetext in such Sections contained in Public Acts through P.A. 87-855.

P.A. 88-115 inserted ":vietro East Mass Transit District Ser\"ice Occupation'' in the first sentence ofsubsec. (c); inserted "Metro East Mass Transit District Use" in 

### the first sentence ofsubsec. (d); inserted subsection (d-5) authorizing areferendum
on increased tax rates; and inserted, in 

### the third sentence ofsubsec. (g), the exception referring to subsec. (d-5).

Section 99 ofP.A. 88-115, as added by§ 15 ofP.A. 88-506 (S.B. 707), proYides:
"ThisAct takes effectupon the effective date ofthisamendato1yAct of 1993 (Senate Bill 707 ofthe 88th General Assembly) and appliesretroactively to July23, 1993. Any action taken bya countyboard orany otherlocal official undersubsection (d-5) ofSection 5.01 of

### the Local Mass Transit DistJict Act betweenJuly 23, 1993 and the effectiYe date ofthis amendatory Actof 1993 (Senate Bill 707 ofthe 88th General Assembly) in accordance with Public Act 88-l 15 is valid."
Section 99 ofP.A. 88-506, approved Oct. 28, 1993,provides:
"ThisAct takes effectuponbecominglaw.''
P.A. 88-672,

### in subsec. (d-5). added the fourth paragraph.
P.A. 88-672 incorporated lhe amendmentby P.A. 88-115.
CROSS REFERENCES Pledge offunds to DevelopmentFinance Authority, see 20 ILCS 3505 7.59. SouthwestemIHinois DevelopmentAuthoritypledge ofreceipts 

### for local go,·emment securities, see 70 JLCS 520!7.2.


### ADMINISTRATJVE CODEREFERENCES
Rules implementing and authorizedbythis section, see 86 IL.Adm. Code 370.101 et seq., 380.101 et seq., 390.101 et seq. 

### LIBRARY REFERENCES Municipal Corporations 956( L ). 

### WESTLAW Topic No. 268. C.J.S. Municipal Corporations§ 1978 et seq. NOTES OFDECISIONS



### r·J'c'.,t 

### (

(

### 361015.01. Metro East 

### r:.ass TransitDistrict: use and occupation taxes, 70 !LCS 361015.01

Constmctionwith otherJaw 

### J ( Deficiencies 2
I. Construction with other law Pro\·isions in home rule municipal retailers' occupation tax act [ch. 24. •· 8-11-1], County Retailers' Occupation Tax Act [ch. 34.,. 409-1 (repealed)], the Local Mass Transit District Act [ch. ! 

### 11 ctt. • 

### 3:5:5.01], andthe Regional Transp011ation Authority Act [ch. 11 l 11.**~** 

### 704.03] did not, by their own tenns. apply to sales in which coal is shipped or delivered to purchaser outof-state; therefore, provisions were not applicable when detem1ining whether coal transfer facility and barge company were representatives ofpower companies within meaning ofuse tax provisions goYerning receipt ofphysical possession oftaxable goods. UnionElec. Co. v. Department ofRevenue. 1990, 144 lll.Dec. 

### 7(A 13h !ll.2d 385. :55f> '.\.E.2d 236.



### 2. Deficiencies
S.!:l.A. ch. 24,**~** 

### 8-! 

### !-!: ch. 111213 S.ll.A. ch. 24, •: 8-1 l- I; ch. 111#,•: 355.0l; ch. 120.**~**

### 440 et seq.# 371 1317. Ill.App. 

### 5 Dist. 1986. Evidenceregardinggross sales for one month atone oftaxpayers' seven furniture stores supp011ed Depa11ment of Revenue's assessment oftax deficiencies under this act. in absence ofe\·idence regarding gross sales at the otherstores. Smith \'. Department ofRevenue, App. 

### 5 Dist.1986. 97 lll.Dcc. 840. 143 111.App.3d 607. 493 :-..:.E.2d 653.

S.1-1.A. ch. 24, ,- 8-11-1; ch. 

### ll I2f3 

### S.lLA. ch. 24, 

## i· 8-11- 

### l:ch. 

### 111#,

## f 355.0I; ch. 120,

## i'. 440 et seq. # 371 1317, Ill.App. 5 Dist. !986. Department ofRe\'enue'sassessment oftaxdeficiencies arising from three taxpayers' alleged ownership ofseven furniture stores were valid even without evidence that two ofthe taxpayers actually owned the stores, where taxpayers both receivednoticesofliabilityandnoticesofadministrati\'ehearing,butfailedto appear,andtaxpayers'attorneyraisednoobjection and adduced no evidenceregardingtaxpayers' taxliability. Smithv. Depa1tment ofRevenue,App. 5Dist.I986, 97 111.Dec. 846, 143 lll.App.3d 607, 493 J\".E.2d 653

.

. 1:

### I

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## 244 CHAPTER 111

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- PUBLIC UTILITIES 

## 552 244, Leasing of adjacent land

§ 21. If the trustees determine that the leasing of the zone of land adjacent to the reservoir will aid in the protection from pollution or other injury to the reservoir by promoting forestation and other desirable vegetation and the improvement, maintenance and care ofthe premises, to zone such area forresidential and business purposes and 

### to lease its real estate for not more than 99 years 

### to proper custodians for $uch uses and upon such terms and conditions as

### itdetermines are forthe bestinterests ofthe 

### authority and the purposes for which it 

### was created. Added by Laws 1957, p. 1599, eff. July 6, 1957. 245. Disposition ofproperty

§ 22. To sell and dispose ofproperty, real or personal, that is no longer needed for its purposes. Added by Laws 1957, p. 1599, eff. July 6, 1957. 246. Easements and rights ofway

§ 23. To grant easements and rights ofway. Added by Laws 1957, p. 1599, eff. July 6, 1957. 247. Protection ofpublic health

§ 24. To make such regulations as it deems necessary 

### to protectpublic health, welfare and safety and to prevent pollution of its water supply. Added by Laws 1957, p. 1599, eff. July 6, 1957. 248. Leased property-Waterand sewer system

§ 25. If 

### it leases its property for residential or business purposes, to construct, and operate a water distribution and sewage system, require the usethereofand make reasonable charges therefor to such residents and businesses. Added by Laws 1957, p. 1599, eff. July 6, 1957. 249. Pollution ofwatershed feeding reservoir-Regulation § 26. With respect 

### to territory outside its corporate limits which is not held by it for reservoir purposes but which territory is within the watershed thatfeeds a reservoir of the authority, the authority may, by ordinance, preventpollution of waters which feed its reservoir for a distance of 5 miles upstream from the headwaters of its reservoir and may abate any cause ofpollution within that area as a nuisance. Added by Laws 1957, p. 1599, eff. July 6, 1957. 250. Acquisition ofeasements and rights of way

§ 27. An authority may acquire easements and rights of way for ingress to and egress from any of its real property by purchase, gift, condemnation or otherwise and may dedicate such easements and rights of way to public use. Added by Laws 1957, p. 1599, eff. July 6, 1957. WATER COMMISSION ACT OF 1985 

### AN ACT relating to water commissions and repealing an

Act thereinnamed. P.A. 84-119, approved and eff. July 30, 1985. 251. Short title

§ 1. This Act shall be known and may be cited as the Water Commission Act of 1985. 252. County water commissions § 2. The General Assembly hereby finds and declares that it is necessary and in the public interest to help assure a sufficient and economic supply of a source of water within those county wide areas of this State where, because of a growth in population and proximity to large urban centers, the health, safety and welfare of the residents is threatened by an ever increasing shortage of a continuing, available and adequate source and supply of water on an economically reasonable basis; however, itis not the intent of the General Assembly to inWrfere 

### with the power ofmunicipalities to provide for the retail distribution ofwaterto thefrresidents or the customers oftheir water systems. Therefore, in order to provide for a suffi. cient and economic supply of water to such areas, 

### it is hereby declared to be the law of this State that:

(a) With respect to any water commission constituted pursuant to Division 135 ofthe lllinois Municipal Code I or est.ablished by operation oflaw under Public Act 83--1123, as amended,2 which water commission includes municipalities which in the aggregate have within their corporate 

### limit.s more than 50% ofthe population ofa county (hereinafterreferred to as a "home county"), and such county is contiguous to a county which has a population in excess of 1,000,000 inhabitants, the provisions of this Act shall apply. With respect to any such water commission (hereinafter referred to as a "county water commission"):

(i) the terms of all commissioners of such commission holding office at the time a water commission becomes a county water commission shall terminate 30 days after such time and new commissioners shall be appointed as the governing board of the county water commission as hereinafter provided in subsection (c); and

(ii) the county water commission shall continue to**~** a body corporate and politic, and shall bear

### the name ofthe home countybut shall be independent from and not a part of the county government and shall itself be a political subdivision and a unit of local government, and upon appointment of the new commissioners as the governing hoard of such water commission as provided in subsection (c), such watercommission shall remain responsible for the full payment of, and shall by operation of law be deemed to have assumed and shall pay when due all debts and obligations of the commission as the same is constituted and as such debts and obligations existed on the date such water commission becomes a countywater commission and such additional debts and obligations as are incurred by such commission after such date and prior to the appoint· ment ofthe new commissioners as the governing board of such commission, and further shall continue to have and exercise all powers and functions and duties of a water commission created pursuantto Division 135 ofthe Illinois Municipal Code, as now or hereafter amended, and the county water commission may rely on that Division, as modified and supplemented by the provisions of this Act, as lawful authority under which it may act.

(b) Any county water commission shall have as its tez:ri· tory within its corporate limits, subject to taxation for its purposes, and subject to the powers and limitations as conferred by this Act, (i) all of the territory of the home county except that territory located within the corporate limits ofexcluded units as hereinafter defined and (ii) also all of the territory located outside the home county.and included within the corporate limits of an included umt .~ hereinafter defined. As used in this Act, "excluded umt means a unit of local government having a waterworks

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## CHAPTER 111%-PUBLIC UTILITIES 

## 111%**~** 

## 252
system and having within its corporate limits territory within the home county and which, at the time any eom- mission becomes a county water commission, receive&, or has contracted at such time for the receipt of, more than 25% of the water distributed by such unit's water system from a source outside ofthehome county. As usedin this Section, "included unit" means any unit of local government having a waterworks system and having within its corporate limits territory within the home county, which unitoflocal government is notan excluded unit. No other water commission shall be constituted under Division 135 ofthe 11linois Municipal Codein any home countyafterthe effective dateofthis Acttoprovide waterfrom any source located outside thehome county. Exceptas authorized by a county water commission, no home county or included unit shall enter into any new or renew or extend any existing contract, agreementorother arrangementfor the acquisition or sale of water from any source located outside a home county; provided, however, that any included unit may contract for a supply of water in case of a temporary emergency from any other unitoflocal govern· mentor any entity. In the event that any included unit. elects to serve retail customers outside its corporate boundaries and to establish rates and charges for such water in excess of those charged w:ithin its corporate boundaries, such rates and charges shall have a reason· ,blerelationship to the actual cost ofproviding and delivring the water; this provision is declarative of eristing Jaw. Itis declared to betheJaw ofthis Statepursuant to paragraphs (g) and (h) of Section 6 of Article VII of the Illinois Constitution that in any home county, the pro-vi· sions ofthis Act and Division 135 ofthe Illinois Municipal Code, as modified and supplemented by this 

### Act, constitute a limitation upon the power of any such county and upon all units oflocal government (except excluded units) within such county, including home rule units, limiting to such county, units of local government and home rule units the power to acquire, supplyordistributewaterorto establish any water commission for such pu:rposes involv· ing waterfrom any source located outside thehome coun· ty in a manner otherthan as provided or permittedbythis Act and Division 135, as modified and supplemented by this Act, and further constitute an exercise of exclusive State power with respect to the acquisition, supply and distribution of water from any source located outside the home county by any such county and by units of local government (except excluded units), including home rule units, within suchcounty and with respectto the establishment for such purposes of any water commission therein, which power may not be exercised concurrently by any unit of local government or home rule unit. Upon the request of any included unit, a county water commission shall provide such includedunitLakeMichigan waterin an amount up t.o the then currentDepartment ofTransportation allocation of Lake Miehigan water for such included unit.

(c) The governing body of any water commission t.o which the provisions of subsection (a) apply shall be a board of commissioners, each to be appointed w:ithln 30 days after the water commission becomes a county water commission t.o a term commencing on such date, as follows:

(I) one commissioner, who shall serve as chairman, who shall be a resident ofthe home county, to be appointed by the chairman ofthe county board of such county with the advice and consent ofthe county board; (ii) one commissioner from each county board district within the home county, to be appointed bythe chairman of the county board of the home county with the advice and consent of the county board; and

(iii) one commissioner from each county board district within the home county, to be appointed by the majority vote of the mayors of those included units which are municipalities and which have the great.est percent.age of their respectis:e populations residing within such county board district of the home county.

Themayors ofthe respectivecounty boarddistricts shall meet for the purpose of making said respective appointments at a time and place designat.ed by that mayor in each county board district of the included unit with the largestpopulation voting for a commissionerupon notless than 10 days' written notice to each other mayor entitled t.o vote.

The commissioners so appointed shall serve for a term of 6 years, or until their successors have been appointed and have qualified in the same manner as the original appointments, ro:cept that at the first meeting of such commissioners, (A) the commissioners first appointed pursuant to paragraph (ii) of this subsection shall determine publicly by lot 1h of their number to serve for terms of 2 years, 1 h of their number to serve for terms of 4 years and 1h oftheir number to serve forterms of 6 years, any odd number of commissioners so determined by dividing into thirds to serve 6 year terms, and (B) the commission- ers first appointed pursuant to paragraEh (iii) of this subsection shall determine publicly by lot 

### h oftheir num· ber to serve for tenns of 2 years, 1 h of their number to serve forterms of4years and 1/a oftheir number to serve for terms of 6years, any odd number ofcommissioners so det.ermined by dividing into thirds to serve 6 year terms. The commissioner first appointed pursuant to paragraph (1) of this subsection, who shall serve as chairman, shall serve for a term of 6 years. Any commissioner may be a member ofthe governing board or an officer oremployee ofsuch countyorany unitoflocal governmentwithin such county. A commissioner is eligible for reappointment uponthe expiration ofhis term. Avacancyinthe officeof a commissioner shall be filled for the balance of the unexpired term by appointment and qualification as to residency in the same manner asthe original appointment was made. Each commissioner shall receive the same compensation which shall notbemore than $600 per year, except thatno such commissioner who is a member ofthe governing board or an officer oremployee of such county or any unit of local government within such county may receive any compensation for serving as a commissioner. Each commissioner may be removed by the appointing authority for any cause for which any other county or municipal officer may be removed. The county water commission shall determine its own rules of proceedmg. Aquorum shallbe a majorityofthe commissionersthen in office. All ordinances or resolutio.ns shall be passed by notless than a majority ofa quorum. No commissioneror employee of the commission, no member of the county board or other official elected within such county, no mayor or president or other member of the corporate authorities of any unit of local government within such county, and no employee of such county or any such unit of local government, shall be interested directly or indi· rectly in any contract or job orwork ormaterials, orthe profits thereof, or services to be performed for orby the commission. A violation of any of the foregoing provi·

## (

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## 111'/s**~** 

## 252 CHAPTER 111%-PUBLIC UTILITIES 554
sions of this subsection is a Class C misdemeanor. A conviction is cause for the removal of a person from his office or employment.

(d) Except as provided in subsection (g), subject to the referendum provided for in subgi,ction {e), a county water commission may borrow money for ctlrporate purposes on the credit of the commission, and issue general obligation bonds therefor, in such amounts and form and on such conditions as it shall prescribe, but shall not become indebted in any manner or for any purpose in an amount including e:-.isting indebtedness in the aggregateto exceed 5.75% of the aggregate value of the taxable property within the territorial boundaries of the county water commission, as equalized and assessed by the Department of Revenue and as most recently available at the time ofthe issue of said bonds. Before or at the time of incurring any indebtedness, except as provided in subsection (g), the commission shall provide for the collection of a direct annual tax, which shall be unlimited as to rate or amount, sufficient 

### to pay the interest on such debt as it falls due and also to pay and discharge the principal thereof at maturity, which shall be within 40 years after the date of issue thereof. Such tax shall belevied upon and collected from all ofthe taxable property within the territory ofthe county water commission. Dissolution of the county watercommission for any reason shall notrelieve the taxable property within such territory of the county water commission from liability for such tax. The clerk of the commission shall file a certified copy of the resolution or ordinance by which such bonds are authorized to be issued and such tax is levied with the County Clerk of each county in which any of the territory of the county water commission is located and such filing shall constitute, without the doing of any other act, full and complete authority for each such County Clerk to extend such ta.-,: for co\foction upon all the taxable property within the territory of the county water commission subject to such 

### tax in each and every year required sufficient to pay the principal of and interest on such bonds, as aforesaid, without limit as to rate or amount, and shall be in addition to and in 1;1xcess of all othertaxes authorized to be levied by the commission or any included unit. The general obligation bonds shall be issued pursuant to an ordinance or resolution and may beissued in one ormore series, and shallbearsuch date ordates, mature at such time ortimes and in any event not more than 40 years from the date thereof, be sold at such price at private or public sale as determinedby a county water commission, bearinterest at such rate or rates such that the net effective interestrate received upon the sale of such bonds does not exceed the maximum rate determined under Section 2 of "An Act

### to authorize public corporations to issue bonds, other evidences ofindebtedness and tax anticipation warrants subject

### to interestratelimitations setforth therein", approved May 26, 1970, as now orhereafter amended,3 which rates may be fixed or variable, be in such denominations, be in such fonn, either coupon or registered, carry such conversion, registration, and exchange privileges, be executed in such manner, be payable in such medium of payment at such place or places within or withoutthe StateofIllinois, be subject to such tet'ffiS ofredemption, and contain orbe subject to such other terms as the ordinance orresolution may provide, and shall not be restricted by the provisions of any other terms of obligations of public agencies or private persons. (e) No issue of general obligation bonds by a county water commission {except bonds to refund an existing bonded indebtedness) shall be authorized unless the commission certifies the proposition of issuing such bonds 

### to the proper election officials, who shall submit the proposition to the voters at an election in accordance with the general election Jaw, and the proposition has been approved by a majority of those voting on the proposition.

The proposition shall be in the form provided in Section 54 or shall be substantially in the following form:

Shall general obligation bonds for the purpose of (state purpose), in 

### YES the sum of $

___(insert amount), be issued by the (insert corporate name of the county 

### NO water commission)?
{f) In order to carry out and perform its powers and functions and duties under the provisions of this Act and Division 135ofthe Illinois Municipal Code, as modified and supplemented by this Act, the governing body of any county water commission may by ordinance levy annually upon all taxable property within its territory a trot at a rate not to exceed .005% of the value of such property, as equalized or assessed by the Department of Revenue for the year in which the levy is made. In addition, any county water commission may by ordinance levy upon all taxable property within its territory, for one year only, an additional tax for such purposes at a rate not to exceed .20% of the value of such property, as equalized or assessed by the Department of Revenue for that year; provided, however, that such tax may not be levied more than once in any county water commission.

(g) Any county water commission shall have the power to borrow money, subject to the indebtedness limitation provided insubsection (d), from the home county orinclud· ed units, in such amounts and in such terms "as agreedby the governing bodies of the commission and the home county or included units.

(h) No county water commission constituted pursuantW the Act shall engage in the retail sale or distribution of water to residents or customers of any municipality.

(i) Nothing in the Section requires any municipality to contract with a county water commission for a supply of water.

(J) The State of Illinois recognizes that any such con· tract for the supply of water executed by a unit of \o~l government and a county water commission may contalll terms and conditions intended by the parties thereto to be absolute conditions thereof. The State of Illinois also recognizes thatpersons may Joan funds to a county water commission (including, without limitation, the purchase of revenue or general obligation bonds of such commission) in reliance upon the terms and conditions of any such contract for the supply of water. Therefore, the State of Illinois pledges and agrees to those parties and pe_rs~ns which make loans of funds to a county water comm1ss1on that it will not impair or limit the power or ability of a county water commission or a unit of local government fully to carry outthe terms of any contract for the supply of water entered into by such county water commission or unit oflocal government for the term of such contracts or loans. 

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## CHAPTER 111%-PUBLIC UTILITIES 

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## 254

1Chapter 24,**~** 11-135-1 et seq. 2Chapter 34,**~** 6401 et seq. (repealed). 8Chapter 17,**~** 6602. 4Paragraph 255 of this chapter.
253. Commfasioners-Territorial limits-Validation of organization and operation-Reconstitution § 3. (a) All water commissions (hereinafter referred to as "existing commissions") previously organized under that Act of the General Assembly knov:n as the Water Commission Act (Public Act 83-1123), as amended,l shall hereafter be deemed organized and operating under this · Actofthe General Assemblyknown as theWater Commission Act of 1985.

(b) The commissioners constituting the governing body of existing commissions shall not change by operation of this Act, and shall serve out their t.erms. Vacancies occurring in the offices of such commissioners shall be filled pursuant

### to the provisions ofthe Water Commission Act of 1985. Successors to commissioners of existing commissions who complete their terms shall be named pursuant W the provisions of the Water Commission Act of 1985.

(c) The territorial limits ofexisting commissions shallbe as provided in the Wat.er Commission Act of 1985.

(d) The organization and operation of existing commissions from the time of original organization thereof are hereby validated and approved. Such existing commissions shall be deemed and treated as validly organized county water commissions under the Water Commission Act of 1985 as 

### if originally formed under the Water Commission Actof 1985. All acts ofexisting commissions from the time oforganization thereof

### to the effective date ofthis Act, an<l notinconflict with the Constitution ofthis State or of the United States including all levies of taxes thereby, are hereby validated and approved 

### to the fullest extent this General Assembly may do so.

(e) Any e;...-isting commission whose organization is deemed invalid, unlawful or unconstitutional by final and unappealable order of a court of competent jurisdiction shall first reconstitute as it existed prior to becoming subject to the provisions of the Water Commission Act, and, then, immediately, become subjectto the provisions of the Water Commission Act of 1985 if included by the terms thereof.

l Chapter 34, fi 6401 et seq. (repealed). 254. Taxes-Proposition-EnforceTI1ent--Reimbursement-Refunds-Trust fund § 4. (a) The board of commissioners of any county water commission may, by ordinance, impose throughout the territory of the commission any or all of the taxes provided in this Section for its corporate purposes. However, no county water commission may impose any such tax unless the commission certifies the proposition of imposing the 

### tax to theproper election officials, who shall submitthe proposition to the voters residing in the territory at an election in accordance with the general election law, and the proposition has been approved by a majority of those voting on the proposition.

The proposition shall be in the form provided in Section 5 1 or shall be substantially in thefollowing form: Shall the (insert corporate name of YES county water commission) impose (state type of tax or t.axes Ul be im- 

### NO posed) atthe rat.e of {st.ate tax rat.e Or rates not exceeding 1/4%)?
Taxes imposed pursuant

### to this Section and civil penalties imposed incident therero shall be collected and en- forced by the StateDepartment ofRevenue. The Department shall have the power 

### to administer and enforce such taxes and to determine all rights for refunds forerroneous payments of such taxes.

(b) The board of commissioners may impose a County Water Commission Retailers' Occupation Tax upon all persons engagedinthe business of selling tangible personal property atretail in the territory ofthe commission at a rate not to exceed 1/4% of the gross receipts from such sales made in the course of such business -within the territory. The 

### tax imposed pursuant to this paragraph and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The Department shall have full power Ul administer and enforce this paragraph; Ul collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. 

### In the administration of, and compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same dghts, remedies, privileges, immunities, powers and duties, andbe subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions of terms, and employ the same modes ofprocedure, as areprescribed in Sections 1, la, le, 22 (in respectto all provisions therein other than the State rate oftax except thatfood for human consumption which 

### is tobe consumed off the premises where it is sold (other than alcoholic beverages, softdrinks, and food which has been prepared for immediate consumption} and prescription and nonprescription medicine, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, shall not be subject to tax hereunder), 2c, 

### 33 (except as to the disposition of taxes and penalties collected and except for the provision allowing retailers a deduction from the tax to cover certain costs), 4, 5, 5a, Sb, 5c, 5d, Se, 5f, 5g, 5h, 5i, 5j, S4(except thatcredit memoranda issued hereunder may not be used to discharge any State taxliability), Sa, 6b, Sc, 7, 8, 9, 10, 11, 12, 13 and 131/2 ofthe "Retailers' Occupation TaxAct", as now or hereafter amended,5 as fully as 

### if provisions contained in those Sections of the "Retailers' Occupation Tax Act" were setforth herein.

Perscins subject to any tax imposed pursuant to the authority granted in this paragraph may reimburse themselves for their seller's taxliability hereunderby separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State taxes which sellers arerequired to collect under the "UseTaxAct",6 and with any taxes for which sellers may be liable under the "Municipal Retailers' Occupation Tax Act",7 or the "County Retailers' Occupation Tax Act",8 and under subsection (e) of Section 4.03 of the "Regional Transportation Authority Act'',9 pursuant to such bracket schedules as the Department may prescribe.

## (

(



## (

## 111%~254 CHAPTER 111

## %

- PUBLIC UTILITIES 556 Whenever the Department determines that a reiuud should be made under thisparagraph to a claimantinstead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out 

### o-f a county water commission taxfund established pursuantto paragraph (g) of this Seetion.

For the purpose of determining whether a tax authorized underthis paragraphis applicable, a retail sale, by a producerofcoal or othermineralminedin Illinois, is a sale atretailattheplacewhere t.he coal or othermineral min"d in 111inois is extracted from the earth. This paragraph does not apply tocoal or othermineral wher. it is delivei'ed or shippedbythe sellerto the purchaserat a point outside Illinois so that the sale is exempt under t.he Federal Constitution as a sale in interstate or foreign commerce.

Nothing in this paragraph shall be construed to authorize a county water commissiein 

### to impose'a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State.

(c) The board of commissioners of a county water commissionmay impose a taxupon allpersons engaged, inthe ter11itory of the commission, in the business of making sales of service, who, as anincident to mak:ing such sales of service, transfer t.angible personal property within the t:erritory. The taxrate shall not exceed 1/4% ofthe cost price of tangible personal property so transferred within the territory. The taximposedpursuantto this paragraph and all civil penalties thatmay be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The Depa11ment shall have full powerto administer and enforce this paragraph; to collect all taxes and penalties due hereunder; to dispose oftaxes andpenalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this paragl'aph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and 

### be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions oftenns, and employ the same modes of procedure, as are prescribedin Sections 2 10 (exceptthatthereference to State in the definition of supplier maint.ain:ing a place of business in this State shall mean the 1:erritory of the commission), 2a, B11 (in respect to all provisions therein other than the State rate of tax except that food for human consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, softdrinks, andfood which hasbeen prepared for immedi" ate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, shall not be subject W ta.it hereunder), 412 (ex~ept that the reference to the Stare shall be 

### to the territory of the commission), 5, 7, 8 13 (except tliat the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the commission), 9 14 (exceft.; as 

### to the disposition oftaxes andpenalties coliected, and except for the provision allowing suppliers a deduction from the tax to cover certain cosrs, and except thatthe retumed merchandise credit for this tax may not be taken against any State tax), 10, 11, 12 15 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act),16 13 11 (except that any reference to the St.ate shallmeanthe territ-Ory ofthe commission), thefirst paragraph of Section 15, 15 1/2, 16, 17 is (except that credit memoranda issued hereunder may not be used 

### to discharge any State tax liability), 18, 19 and 20 of the "Service Occupation Tax Act", asnow or hereafter amended,19 as fully asifprovisions cont.ained in those Sections of the "Ser1ice Occupation Tax Act" were set forth herein.

Persons subject to any tax imposed pursuant to the authority grantedin this paragraph may reimburse themselves for their serviceman's tax liablilty hereunder by separately stating such**~** as an additional charge, which charge may be stated in combination, in a single amount, with State ta:,:: which servicemen are authorized to collect under the "Service Use Tax Act",20 and any taxfor which servicemen may be liable under the "Municipal Service Occupation Ta.x Act",21 or "County Service Occupatkm Tax 

### Aet",22 and under subsection (f) ofSection 4.03 ofthe "Regional Tra.'"lsportation Authority Act", pursuant to such bracket schedules as the Department may prescribe.

Whenever the Department determines that a refund shouldbe made ur,der this paragraph to a claimantinstead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, and to the person named, in such notificatfon from the Department. Such refund shall be paid by the State Treasurer out of a countywater commission tax fund established pursuantto paragraph (g) of this Section.

Nothing in this paragraph shall be construed to authorize a county water commission to impose a tax upon the privilege of engaging in uny business which under the Constitution of the United States may not be made the subject oftaxation by the State.

(d) The board of commissioners of a county water com· mission may impose a tax upon the privilege of using, in the territory of the commission, any item of tangible personal property which 

### is purchased outside the territory atretail from a retailer, and which is titled or registered withan agenC} ofthis State's government, atarate notto exceed 1/4% of the selling price of such tangible pen;onal property within theterritory, as "selling price" is defined in the "Use Ta:i. Act". Such t.ax shall be collected from persons whose Illinois address for titling or registration purposes is given as being in the territoq. Such tax shall be collected by the Department of Revenue for a county water commission. Such t.ax mustbe paid 

### to the State, or an exemption determination must be obt.ained from the Department of Revenue, before the title or certificate of registtation for the propeity may 

### be issued. The 

### ta.,: or proofofexemptionmay be ttansmitted to the Department by way of the State agency with which, or the State officer with whom, the tangible personal property mustbe titled or registered if the Depamnent and such State agency or Stat:e officer determine that this procedure will expeditetheprocessingofapplications fortitle orregistra· tion.

The Departmentshall have full power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose oftaxes, penalties and interest so collected in the manner hereinafter provided; andto determine all rights to creditmemoranda orrefunds arising on accountofthe erroneous paymentoftax, penal· ty or interest hereunder. 

### In the administration of, and 

# I {.

### (



# (

(

## ( 557 

## CHAPTER 111%-PUBLIC UTILITIES 

## 111% 

## ff 255 compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same right.s, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and defini· tions of terms and employ the same modes of procedure, as are prescribed in Sections 2 23 (except the paragraph concerning the conveying of news, and except the definition of "retailer maintaining a place of business in this State"), 3 24 (exceptprovisions pertaining to the State rate of tax, and except provisions concerning collection or refunding ofthe taxby retailers except thatfood forhuman consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, shall not be subject to tax hereunder), 4, 11, 12, 12a, 14, 15, 1925 (except the portions pertaining 

### to claims by retailers and except the lastparagraph concerning refunds), 20, 21 and 22 2£ (except thatcredit memoranda issued hereunder may not be used to discharge any State tax liability) of the "Use Tax Act", as now or hereafter amended, which are not inconsistent with this paragraph, as fully as if provisions contained in those Seetions of the "Use Tax Act" were set forth herein.

Whenever the Department determines that a refund should be made underthis paragraph to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order 

### to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of a county water commission taxfund established pursuantto paragraph (g) ofthis Section.

(e) A certificate of registration issued by the State DepartmentofRevenue 

### to a retailer under the "Retailers' Occupation Tax Act", as not or hereafter amended,27 or underthe "Service OccupationTaxAct", as now orhereaf

### ter amended,28 shall permit the registrant 

### to engage in a business whichis taxedunder the t.ax imposedpursuantto paragraphs (b), (c) or (d) ofthis Seetion and no additional registration shell be required under such tax. A certificate issued pursuant 

### to the "Use Tax Act", as not or hereafter amended, or the "Service Use Tax Act", as now or hereafter amended, shall be applicable with regard to any taximposed pursuantto paragraph (c) ofthis Section.

(f) Any ordinance imposing any tax under this Section oreffecting a change in the rate thereof shall be effective on the first day ofthe calendar month nextfollowing the publication of such ordinance in a newspaper of general circulation in the territory andthe filing ofa certified copy of such ordinance with the State Department ofRevenue, whereupon the Department of Revenue shall proceed 

### to administerandenforce this Section on behalfofthe county water commission asofthe effective date ofthe ortlinance.

(g) The St.ate Department of Revenue shall, upon collecting any taxes as provided in this Section, pay such taxes over to the State Treasurer as trustee for the commission. Such taxes shall be held in a trust fund out.side the StateTreasury. On or before the 25th day of each calendar month, the State Department of Revenue shall prepare and certifyto the Comptrollerofthe St.ate of Illinois the amount to be paid 

### to the commission, which shall be the then balance in said fund, less 2% of such balance, which sum shallbe retainedby the StateTreasurer to cover the costs incurred by the Department in administering and enforcing this Section asprovided herein, and less any amountdetermined by the Department to be necessary for thepayment ofrefunds. Within 10 days afterreceiptby the Comptrollerofsuchcertification ofthe amounttobepaid to the commission, the Comptrollershall cause an order to be drawn for such payment for such amount in accordance with the direction in such certification. AmendedbyP.A. 84-1027, Art. IV,§ l, eff. Nov. 15, 1985.

l Paragraph 255 of this chapter. 2Chapter 120, 

## nu 440, 440a, 440e, 441. 3Chapter 120, 'iff,441e, 442. 4Chapter 120, 'ilU 443 to 444j, 445. 5Chapter 120, 'ilU 445a to 450, 451 to 452V,. 6Chapter 120, U 439.1 et seq. 7Chapter 24, 'ii 8-11-l. 8 Chapter 34, 'ii 409.1. 9Paragraph 704.0(! of this Chapter. 10 Chapter 120, U 439.102. 11 Chapter 120, 'iii, 439.102a, 439.103. 12 Chapter 120, U439.104. u Chapter 120, 

### nu439.105, 439.107, 439.108. 14 Chapter 120, 'ii 439.109. 15Chapter 120, fU 439.110 to 489.112. 16Chapter 120, 'ii 44lb. 17 Chapter 120, U439.113. 16 Chapter 120, 'i!U431l.115 to 439.117.
rn Chapter 120, mr4311.118 to 439.120. 20 Chapter 120, IT439.31 et seq. 21 Chapter 24, 'ii 8-11-5. 22 Chapter 34, 'ii 409.2. 2.3 Chapter 120, U489.2. 24 Chapter 120, 'ii 439.3. 25 Chapter 120, ~'ii 489.4, 439.11 to 439.12a, 439.14, 439.15, 439.19. 26 Chapter 120, 

### r.u 489.20 t-O 439.22. 27 Chapter 120, U440 et seq. 28 Chapter 120, 'ii 439.101 et seq. 255. Proposition-Certification-Form-Approval

§ 5. The proposition of the issuance of general obligation bonds as provided in Section 2 1andthe imposition ofcertain taxes as provided in Section 42may be presented 

### to the voters of the territory of the county water commission in a single proposition if the commission, by ordinance, so provides. If such ordinance is adopted, the commission shall certify the proposition to the proper election officials, who shall submit the proposition to the voters in the territory ofthe commission at an election in accordance with the general election law. The proposition shall be in substantially the following form:
Shall the (insert corporate name of county water commission) issue general obligation bonds for the 

## YES purpose of (state purpose), in the sum of$--- {insertamount), and impose (state type of tax or taxes 

### NO to be imposed) at the rate of (state tax rate or rates not exceeding 

### 1/,%)?

## (

(

(

## 111% 11255 CHAPTER 111%-PUBLIC UTILITIES 558 If the proposition is approved by a majority of the voters voting on the proposition, the issue of such bonds shall thereby be authoriz<:d and such tax may be impo:sed.

l Paragraph 252 of this chapter. 2Paragraph 254 of this chapter.
METROPOLITA..N' TRA.N'SIT AUTHORITY AN ACT to create a municipal corporation for public

Ownership and operation of a transportation system in the metropolitan area of Cook County and out.side thereof as herein provided, Laws 1945, p. 1171, approved April 12, 1945, eff. July l, 1945. Title amendedbyLaws 1955, p. 1166, approved and eff. July 7, 1955. 301. Short title

§ 1. This Act shall be known and may be cited as the "Metropolitan TransitAu~llority Act." 302. Definitions

§ 2. When used in this Act: "Transportation System" means all plants, equipment, property and rights useful for transportation of passengers forhire excepttaxicabs and includes, withoutlimiting the generality of the foregoing, street railways, elevated railroads, subways and underground railroads, motor ve- hicles, trolley busas, motor buses and any combination therilof.

"Metropolitan area of Cook County" embraces all the territory in the County 

### of Cook, State of Illinois Ea.st of the east line of Range Eleven (11), East of the Third Principal Meridian of the United States Government survey.

"Metropolitan area" means the metropolitan area of Cook County, as above defined.

"Authority" means Chicago Transit Authority created bythis Act.

"Board" means Chicago Transit Board. "Governor'' means Governor of the State of Illinois. "Mayor" means Mayor ofthe City of Chicago. "Motor vehicle" means every vehicle which is self-propelled or which is propelled by electric power obtained from overhead trolley v.-ires but not operated on rails. Amendeti by Laws 1955, p. 1166, eff. July 7, 1955. 303. Te1Titory included

§ 3. All the territory in the County of Cook, State of Illinois, l;1ing east ofthe eastline ofRange Eleven, 

### Ea.st of the Third Principal Meridian of the United States Government Survey is hereby created a political subdivision, body politic and municipal corporation under the name of Chicago Transit Authority. 304. Adoption by electors

§ 4. The Authority shall not exercise any of the powers granted by Uris Act until itis adopted, 

### in the manner provided 

### in Section 44,1 by the electors of one or more cities, villages and incorporatedtowns within the metropolit.an area having a population in the aggregate of atleast 100,000 according to the Federal census of 1940.

1Paragraph 344 of this chapter. 305. Actions-Seal-Office § 5. The Authority may sue and be sued in its corporatenamebutexecutionshall notin any caseissue against any property of the Authority. It may adopt a common sealandchange the same atpleasure. Theprincipaloffice ofthe Authority shall be in the City of Chicago. 306. Power to construct transportation system

§ 6. The Authority shall have power to acquire construct, own, operate and maintain for public se~ce a transportation system in the metropolitan area of Cook County and outside thereof to the extent herein provided and all the powers necessary or convenient to accompli.<ih the purposes of this Act, including, without limiting the generality ofthe foregoing, the specific powers enumerated herein. Amended by Laws 1955, p. 1166, eff. July 7, 1955. 306.1. Urbantransportationdistrict assets-Capital impmvement projects § 6.1. Within 5 years after the receipt of any assets transferred to the Authority from an Urban Transportation District created under the Urban Transportation Dlllt.rict Act,I such assets shall be used by the Authority, exclusively within the area included in such Distrkt, for projects which develop, maintain or improve capit.al 

### improvements 

### in public transportation. Added by P.A. 82-1048, § l, eff. July 1, 1983.

l Paragraph 501 et seq. of this chapter. 307. Powerto acquire pl"operty, franchises, etc.

§ 7. The Authority shall have power to acquire b]' purchase, condemnation, lease, giftor otherwise all orany part ofthe·plant, equipment, property, rights in property, reserve funds, employees' pension or retirement funds, special funds, franchises, licenses, patents, permits and papers, documents and records belonging to any public ublity operating atransportation system within the metropolitan area ofCook County, together with all or any 

### part of the right of way, equipment, fixed facilities and othet property of any kind of any such utility exrendingbeyond the boundaries of the metropolitan area of Cook County and forming partof an integrated suburban rapid transit; rail transportation facility ormotorbus operation connect.: ing with rapid transit or electric railway lines in supe~ highways of the Authority or leading to th.e unificatio.n, and integration of a unified rapid transit, rail, and moto~ bus operation in and about the metropolitan area of Cook: County. Such properties upon acquisition by or lease to the Authority shall become andbe operated as partof

### t_h~_ transportation system of the Authority and the Autho~ty shall have all powers in connection with such properties and such operations as are conferred by this Act 

### ~th respect to the transportation system of the Authonty located within the metropolitan area ofCook County. 

### The, Authority shall also have the power 

### to enter into agree, ments to operate any such lines extending beyond the boundaries of the metropolitan area; such agreementa 

## f:? be subjecttoall otherprovisions ofthis Act. The Auth~nty shall have power to contract for or lease.f.or operation and maintenance by the Authority, any mun~c~pally owned local transportation subways or other mumcipally owned local transportation facilities or the facilities of any con.i· mon carrier or the facilities of any local Mass Transit: District, organized under the "Local Mass Transit Act'';_ approved July 21, 1959, as heretofore and hereafter·

## (

(3720/4. Taxes, 70 !LCS 372014



### West's Smith-HurdIllinoisCompiledStatutesAnnotated Chapter70.SpecialDistricts

Water

Act 3720.WaterCommissionAct of1985

§

### 4. Taxes. 

### 70 ILCS 3720/4 Formerlycited as IL STCH 1112/3'il2.54 3720/4.Taxes Effectiw:August9, 2013 Currentness

(a) The board ofcommissioners ofany county water commission may, by ordinance, impose throughout the territory ofthe commission any orall ofthe taxes providedin this Section for its corporate purposes. However, no county watercommission may impose any such tax unless the commission certifies the proposition ofimposing the tax to the proper election officials, who shall submit the proposition to the voters residing in the territory at an election in accordance with the general election law, and the proposition has been approved byamajority ofthose voting on theproposition.

Theproposition shall be in the fonn providedin Section 5 orshallbe substantiallyin the following form:

Shull the (insert co,pornlc

nameofcouotywalercommission) YES
impose (stale type ofta,; or

la~es lo be imposed)at the NO

ra1cofl'4°~?


### Taxes imposed under this Section and civil penalties imposed incident thereto shal! be collected and enforced by the State Department ofRevenue. The Department shall have the powerto administer and enforce the taxes and to detem1ine all rights for refunds for erroneous payments ofthetaxes.

{b) The boardofcommissionersmay impose a CountyWaterCommissionRetailers' OccupationTax upon allpersons engaged in the business ofselling tangible personalproperty at retail in the territory ofthe commission at a rate of 1/4% ofthe gross receipts from the sales made in the course ofsuchbusiness within the territory. Thetax imposedunder this paragraph and all civil penalties that may be assessed as anincidentthereofshall be collected and enforced by the State DepartmentofRevenue. The Department shallhavefull powertoadministerand enforcethisparagraph: to collectall taxes andpenalties duehereunder; todisposeoftaxes andpenaltiesso collectedin themannerhereinafterprovided; andtodetermineal! rightstocreditmemoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities,powers andduties,andbesubjecttothe sameconditions,restrictions, limitations,penalties,exclusions,exemptions anddefinitions ofterms, and employthe samemodes ofprocedure, as are prescribed in Sections I, la, 1 a-1, le, 1 d, 1 e, lf, 

### li,3720/4. Ta:,;;es, 70 JLCS 372014



### lj, 2 through2·65 1 (inrespectto all provisions therein otherthanthe State rate oftax exceptthatfood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) andprescription and nonprescription medicine, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, shall not be subject to tax hereunder). 2c, 32 

### (except as to the disposition oftaxes and penalties collected), 4, 5, 5a, 5b, Sc, 5d, 5e, Sf, 5g, 5h, Si, 

### 5j, 5k, 51, 

### 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 ofthe Retailers' Occupation Tax Act 3 

### and Section 3-7 ofthe Unifom1 Penalty and Interest Act, .:1 

### as fully as ifthoseprovisions were set forth herein.

Persons subjectto anytax imposedunderthe authoritygranted inthisparagraph mayreimbursethemselves fortheirseller's tax liability hereunderby separately stating the tax as an additional charge, which charge may be statedin combination, in asingle amount, with State taxes that sellers are required to collect under the UseTax Act5 

### and under subsection (e) ofSection4.03 ofthe Regional Transportation Authority Act, 6 in accordance with such bracketschedules as the Departmentmay prescribe.

Wheneverthe Department detem1ines that a refund should be made under this paragraph to a claimant instead ofissuing a creditmemorandum, the Departmentshall notifythe StateComptroller, who shall causethe warranttobe drawn forthe amount specified, andto thepersonnamed, in the notification from theDepartment. Therefund shall be paidbythe State Treasurerout ofa countywater commission tax fund established underparagraph (g) ofthis Section.

Forthepurposeofdetennining whetheratax authorized underthis paragraph is applicable, aretail salebyaproducerofcoal or othermineral mined in Il!inois is a sale at retail atthe place where the coal or othermineral mined in Illinois is extractedfrom the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped bythe sellerto the purchaser at apoint outside 1l1inois so thatthe sale is exemptunder the Federal Constitution as a sale in interstate or foreign commerce.
If

### atax is imposed underthis subsection (b) a tax shall alsobe imposedundersubsections (c) and (d) ofthis Section.

No tax shall be imposed or collected underthis subsection onthe sale ofa motor vehicle in this State to a resident ofanother state ifthat motor vehicle will not be titled in this State. Nothing in this paragraph shall be construed to authorize a county water commission to impose a tax upon the privilege of engagingin anybusinesswhichundertheConstitutionoftheUnited Statesmaynotbemadethe subjectoftaxationbythisState.

(c) lf

### atax hasbeen imposedundersubsection (b), a CountyWaterCommission Service OccupationTax shall alsobe imposed upon all persons engaged, in the territory ofthe commission, in thebusiness ofmaking sales ofservice,who, as anincident to makingthe salesofservice, transfertangiblepersonalpropertywithintheterritory. Thetaxrate shall be 1/4%ofthe sellingprice oftangiblepersonal propertysotransferredwithintheterritory. Thetax imposedunderthis paragraph and all civilpenalties that may be assessed as an incident thereofshall be collected and enforcedbythe StateDepartment ofRevenue. The Department shall have full power to administer and enforce this paragraph: to collect all taxes and penalties due hereunder; to dispose of taxes andpenalties so collected in the mannerhereinafter provided; and to determine all rights to credit memoranda arising on accountoftheerroneouspaymentoftax orpenaltyhereunder. Inthe administration of, andcompliancewith, thisparagraph,the Department andpersons whoare subject to thisparagraph shallhavethe samerights, remedies, privileges, immunities, powers and duties, andbe subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions of terms, and employ the same modes ofprocedure, as are prescribed in Sections la-I, 2 1 

### {except that the reference to State in thedefinition ofsuppliermaintainingaplace ofb1L~iness in this Statesha11 mean the territoryofthe commission), 2a, 3through 3-50 8 (in respect to all provisions therein other than the State rate oftax except that food for human consumption that is to be consumed offthepremises where itis sold (otherthan alcoholic beverages, soft drinks. and food that hasbeen prepared for immediate consumption) and prescription and nonprescription medicines, dmgs, medical appliances and insulin, urine testing materials, syringes, and needles used bydiabetics, for human use, sha!l not be subject to tax hereunder), 49 (except that the 

### (

### 3720/4. Taxes, 70 ILCS 372014

reference to the Stateshallbe to the territoryofthecommission), 5, 7, 8 IO 

### (exceptthatthejurisdictionto whichthe tax shallbe

adebt to the extentindicated in that Section 8shall bethe commission), 9 11 (exceptastothe disposition oftaxes andpenalties collected and except that the returned merchandise credit for this tax may not be taken against any State tax), 

### JO, 11, 12 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), JJ 

### 13 14 (except that any reference to the State shall mean the tenitoryofthe commission), the first paragraph ofSection 15, 15.5, 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act 15 as fully as ifthoseprovisionswere set fmth herein.

Personssubjectto anytax imposedunderthe authoritygrantedinthisparagraphmayreimbursethemselvesfortheirserviceman's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that servicemen are authorized to collectunder the Service UseTaxAct, and anytax for which servicemen may be liable under subsection (f) 

### ofSec. 4.03 ofthe Regional Transportation Authority Act, in accordance with such bracket schedules as the Departmentmay prescribe.

Whenever the Department detem1ines that a refund should be made under this paragraph to a claimant instead ofissuing a creditmemorandum,the Departmentshallnotifythe State Comptroller, who shall causethe wanantto be drawnforthe amount specified, and to the person named, inthe notification from theDepartment.Therefundshall bepaidby the StateTreasurerout ofa countywater commission tax fund establishedunderparagraph (g) ofthis Section. Nothing in this paragraph shal! be constmed to authorize a county water commission to impose a tax upon the pri\'ilege of engagingin anybusinesswhich underthe Constin1tion oftheUnited Statesmaynotbemadethe subjectoftaxationbythe State.

(d) If

### a tax has beenimposed under subsection (b), a tax shall also imposed upon the privilege ofusing, in the territoryofthe commission, any item oftangible personal property that is purchased outside the territory at retail from a retailer, and that is titled or registered with an agency ofthis State's government, at a rate of 1/4% ofthe selling price ofthe tangible personal property within the territory, as "selling price" is defined in the Use Tax Act The tax shall be coJlected from persons whose lllinois address fortitling orregistrationpurposesis givenasbeing inthe territory. Thetaxshall becollectedbytheDepartment ofRevenue for acountywatercommission. The tax mustbepaid to the State, oran exemption determinationmustbe obtained from the DepartmentofReYenue, before the title or certificate ofregistration for the propertymay be issued. Thetax orproof ofexemptionmaybe transmitted to the Departmentbyway ofthe Stateagencywithwhich, orthe State officerwith whom, the tangible personal property must be titled or registered ifthe Deparnnent and the State agency or State officer detennine that thisprocedure will expedite the processing ofapplications for title or registration.

The Department shall have full power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose oftaxes, penalties and interest so collected in the manner hereinafter provided: and to detem1ine all rights to credit memoranda or refonds arising on account ofthe erroneous payment oftax, penalty or interest hereunder. !n the administration of, and compliance with this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions ofterms and employ the same modes ofprocedure,

as are prescribed in Sections 2 16 (except the definition of"retailermaintaining a place ofbusiness in this State''), 3 through 3-80 17 (except provisions pertaining to the State rate oftax, and exceptprovisions concerning collection or refunding of the tax by retailers, and except that food for human consumption that is to be consumed offthe premises where it 

### is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) andprescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, shall not be subject to tax hereunder), 4, 11, 12, 12a, 14, 15, 19 18 (except the portions pertaining to claims by retailers and exceptthe last paragraph concerningrefunds), 20, 21 and 22 ofthe Use TaxAct 19 and Section 3-7

,,-;

.

### 3720/4. Taxes, 70 ILCS 372014

ofthe Unifom1 Penalty and Interest Act 20 

### that are not inconsistent with this paragraph, as fully as ifthose provisions were set forth herein.

Whenever the Department determines that a refund should be made under this paragraph to a claimant instead ofissuing a credit memorandum, the Department shall notifythe State Comptroller, who shall cause the orderto be drawn for the amount specified. and to thepersonnamed. in thenotification from the Department. Therefund shall be paidby the StateTreasurerout ofa county watercommission tax fund established underparagraph (g) ofthis Section.

(e) A certificate ofregistration issued by the State Depmtment ofRevenue to a retailer under the Retailers' Occupation Tax Act21 or under the Service OccupationTax Act2J 

### shall pem1it the registrant to engage in a business that is taxed under the tax imposed under paragraphs (b), (c) or (d) ofthis Section and no additional registration shall be required under the tax. A certificateissued underthe Use TaxAct orthe Service UseTaxAct23 

### shall beapplicable with regardto anytax imposedunder paragraph (c) ofthis Section.

(f) 

### Any ordinance imposing or discontinuing any tax under this Section shall be adopted and a certified copy thereoffiled with the Department on orbefore June I.whereupon the Department ofRevenue shall proceed to administerand enforce this Section onbehalfofthe county watercommission as ofSeptember 

### Jnext following theadoption and filing. BeginningJanuary 1, 1992, an ordinance or resolution imposing or discontinuing thetax hereunder shall be adopted and a certified copy thereof filed with the Departmenton orbefore the first day ofJuly, vd1ereupon the Departmentshall proceed to administerand enforce this Sectionas ofthe first day ofOctobernext following suchadoption and filing. BeginningJanuary I. 1993. an ordinance or resolution imposing or discontinuingthe tax hereundershall be adopted and ace11ifiedcopythereoffiled with the Department on orbefore the first day ofOctober,whereupon the Department shall proceedto administerand enforce this Section as ofthe first dayofJanuary next following such adoption and filing.

(g)The State DepartmentofRevenue shall,uponcollectinganytaxes as provided inthis Section,paythetaxesovertothe State Treasureras trustee for the commission. The taxes shall be held in a trust fund outside the State Treasury.


### As soon as possible after the first day ofeach month, beginning January I, 2011, upon certification ofthe Department of Revenue, the Comptrollershall order transferred, and the Treasurer shall transfer, to the ST ARBonds Revenue Fund the local sales tax increment,as definedintheInnovationDevelopment andEconomyAct, collectedunderthis Sectionduringthe second precedingcalendarmonth for sales within a STARbond district.

After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day ofeach calendarmonth, the State Department ofRevenue shall prepare and certify to the Comptroller ofthe State of lllinois the amount to be paid to the commission, which shall be the amount (not including credit memoranda) collected under this Section during the second preceding calendar month by the Departmentplus an amount the Department determines is necessaiy to offset any amounts thatwereerroneouslypaidto adifferenttaxingbody, andnotincludinganyamountequal to theamountofrefundsmadeduring the secondpreceding calendar month bythe Department on behalfofthe commission, and not including any amount that the Department detem1ines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the commission, and less any amounts that are transferred to the STAR Bonds Revenue Fund. Within 10 days after receiptbythe Comptroller oft he certificationofthe amountto bepaidto the commission,the Comptrollershall cause an order to be drawn for the paymentforthe amount in accordance with the direction in the certification.

(h) Beginning Jnne 1, 2016, any tax imposed pursuant to this Section may no longer be imposed or collected, unless a continuation ofthe tax is approYed by the voters at a referendum as set forth in this Section. 

### (

### ( 3720/4. Taxes, 70 !LCS 3720/4



### Credits P.A. 84-119, 

### §4, eff. July 30, 1985. Amended by PA 84-1027, Art. JV,§ l, eff. Nov. 15, 1985; P.A. 85-1135, Art. Il, §

..+_ 

### eff Jan. 

### 1.. 1990; P.A. 86-928. An. 3, § 3. eff. Jan. I, 1990; P.A. 86-1475. Art. 5. § 5-9. eff. fan. 10. 1991; P.A. 87-105. Art. 2. § 

### 2-5. 

### tctl July l. 1992; P.A. 87-205, Art. 4. 

### § 4-4. eff. Jan. l. 

### 1994; P.A. 87-895, Art. 2, 

### §

### 2-02, eff. Aug. 14, 1992. Reenactedby P.A. 9J

### -51. § 165. t:ff. June 

### 30. 1999. AmendedbyP.A. 92-221. §

### 915. eff. Aug. 2. 200I; P.A. 93-1068, §

### 25. eff. Jan. 15. 2005; 

### P.A. 96-939. § 105, eff. June 24. 2010; P.A. 96-1389. § 

### 5. eff. July 29. 2010; P.A. 97-333, § 

### 180. eff. Aug. 12. 2011; P.A. 98-298. § 

### 20, eff. Aug. 9. 2013. Formerly Ill.Rev.Stat.!991, ch. 111 #,

## ~I 254.

HISTORICAL ANDSTATUTORY NOTES P.A. 84-1027, in the fourth sentence ofthe first paragraph ofsubd. (b), in the fifth sentence ofthe firstparagraph ofsubd. ( c), and in the second sentence ofthe second paragraphofsubd. (d), inserted the exceptionrelatingto food for human consumption and prescription and nonprescriptionmedicine, drugs, etc.

P.A. 85-1135, intheballot fom1, substituted" 

### Y.. %"for "(state tax rate orrates not exceeding 

### '14 %)":

### in subd. (b), in the first paragraph substituted "of

### Y.. %" for "not to exceed Y., 

### %'', insertedreferencesto 

### §§ Ia-1, Id, Ie, If, 5kand 5/, anddeleted "and exceptfor the provision allowing retailers a deduction from the tax to cover certain costs" fo!lowing "penalties collected", in the second paragraph, deleted "and with any taxes for\vhichsellers may be liable underthe 'Municipal Retailers' Occupation Tax Act', orthe 'County Retailers' Occupation Tax Act' " following" 'Use Tax Act' ", and inserted the fifth paragraph: in subd. (c), inthe first paragraph, substituted ·•1fa tax has been imposed pursuant to subsection {b), a tax shall also be imposed" for "The board ofcommissioners ofa county water commission may impose a tax", substituted "be 

### %% 

### ofthe selling" for "not exceed\!,,% ofthe cost", inserted a reference to§ la-1, and deleted "and except for 

### the provision allowing suppliers a deductionfrom the taxtocovercertaincosts'·following "penaltiescollected",inthe secondparagraph, deleted "the 'Municipal Service Occupation Tax Act·, or 'County Service Occupation Tax Act', and under" preceding "subsection (f)": 

### in subd. (d), in 

### the first paragraph, substituted "ff

### atax has been imposedpursuant to subsection (b), a tax shall also be imposed" for "The board ofcommissioners ofa countywater commission mayimpose a tax", substituted "of

### '14 %"for "notto exceed 

### '14 %", in the secondparagraph, deleted "except theparagraphconcerningthe conveyingofnews, and" following "Sections2 (", inserted "and" following "taxbyretailers"; in subd. (f}, 

### inserted ''ordiscontinuing" and "second"; and in subd. (g), deleted "less

### 2% of suchbalance,which sum shallberetainedbythe State Treasurerto 

### coverthecostsincurredbythe Departmentin administering and enforcingthis Section as provided herein, and''following "saidfund''.

Forlegislative intent and effect ofP.A. 85-1135, see notefol!owing 65 ILCS 5!8-11-1.

P.A. 86-928, inthe first paragraph ofsubd. (b), inserted "Ji, 

### lj" and following "6", deleted "{except that credit memoranda issuedhereundermaynot be used to discharge any Statetax liability)''; in

### subd. (c) 

### following ''17",andin subd. (d), following "22", deleted "(except that credit memoranda issued hereunder may not be used to discharge any State tax liability)"; and rewrote subd. (t), which priorthereto read: "Anyordinanceimposing ordiscontinuing any taxunderthis Sectionoreffecting achange

### intherate thereofshall be effective
on the first day ofthe second calendar month next following the publication ofsuch ordinance in a newspaper ofgeneral circulation

### inthe territoryandthefiling ofacertifiedcopyofsuchordinancewiththe State DepartmentofRevenue,whereupon the Department ofRevenue shall proceed to administer and enforce this Section onbehalfofthe countywater commission as ofthe effective date ofthe ordinance.''

P.A. 86-1475, Art. 5, resectioned§ 3oftheUseTax Act,§ 3ofthe Service UseTaxAct,§ 3ofthe Service OccupationTaxAct, and§ 2 ofthe Retailers' OccupationTax Act. Forintent ofP.A. 86-1475, Art. 5, see Historical and Statutory Notes following 35 ILCS 105i3.3720!4. Taxes, 70 lLCS 372014



### P.A. 87-205, Art. 2. in the subdivision relating toadopting and filing acertifiedcopy ofan ordinance orresolution imposing or discontinuing the taxhereunder, oraffectingachangein the ratethereof, addedprovisionscoveringthe respectivetime periods beginning withJan. 1, 1992 and beginning withJan. I, 1993.

P.A. 87-205, Art. 4,revised statutoryreferencesand languagerelatingtothe enactmentofthe Unifom1Penaltyand InterestAct.

Section 5-1 ofP.A. 87-205, approved September3, 1991, as amendedbyP.A. 87-1 I89, Art. I,§ 4, pro\·ides:

'·Effective date. Articles 3 and 

### 4take effect January 1, 1994. Articles 

### 1and 5 take effect upon becominglaw."

P.A. 87-895, the first [992 General Revisory Act, provides in Article 2 for the re\•ision and renumbering ofcertain Sections ofActs which have been added oramendedby more than one Act ofthe 87th Genera! Assembly; incorporates amendments to repealed Acts into successorlaws passedby the same GeneralAssembly; corrects errors, revises cross-references and deletes obsolete text in such Sections contained in Public Acts through P.A. 87-855.

P.A. 91-51 re-enacted this section: see text of35 lLCS 165: 10 regardingthe re-enactment.

P.A. 92-221 inserted "CountyWaterCommission Service Occupation", in the first sentence ofsubsec. (c).

P.A. 93-1068, § 25, inserted thepenultimateparagraph ofsubsec. (b).

P.A. 96-939, § 

### 105, in subsec. (g), inserted the secondparagraph, in the third paragraph ofsubsec. (g), substituted "Afterthe monthly transfer to the STAR Bonds Revenue Fund, on" for ··on", and inserted", and less any amounts that are transferred to the STARBonds Revenue Fund''.

P.A. 96-1389, §

### 5, 

### inthe section name line, added "Taxes"; and added subsec. (h).

P.A. 97-333. the First 2011 General RevisoryAct, amendedvarious Actsto deleteobsolete text, to correctpatent andtechnical errors, to revise cross references, and to resolve multiple actions. Public Acts 96-857 through P.A. 96-1479 were considered inthe preparation ofthe combining revisories includedin this Act.

P.A. 98-298, §

### 20, inthe third paragraphofsubsec. {g), 

### substituted "amount (not including creditmemoranda) collectedunder this Section during the second preceding calendar month by the Department plus an amount the Department detennincs is necessary to offset any amounts thatwere erroneouslypaid to a different taxing body, and not including any amount equal to the amount ofrefundsmade duringthe secondprecedingcalendarmonthbythe Department onbehalfofthecommission, and not including any amount thatthe Department determines is necessary to offset any amounts that were payable to a different taxing body but 

### wereerroneouslypaidto the commission," for "then balance in the fund, less any amount determinedbythe Departmentto be necessary 

### for thepaymentofrefunds.".

LIBRARY REFERENCES Waters and Water Courses

. 198. \Vestlaw Topic No. 405. C.J.S. Waters§§483, 588, 605.
70 LL.C.S. 3720/4, 

### IL STCH 70 §

### 3720/4
Current through P.A. 98-1175 ofthe 2014 Reg. Sess., andthrough P.A. 99-2 ofthe 2015 Reg. Sess. (c) 2015 Thomson Reuters 

### (

## ( 3720!4. Taxes, 70 ILCS 372014



### Foonmtes


### 2 3

4 

### 5 (, 

### 7 

### 8 9 

### 10 11 12 

### 13 14 l::i 

### 16 17 18 19 

### 20 21 

### 22 

# ,, _, 351LCS I'.'.O L I'.'.O lJ. !'.'.O la-1. l2U·Jc.120 ld. 120 k 1::.o 1L 120 Ii. 120 l.1. 120 2 through l'.'02-65. 35 JLCS l20'2c. 120 3. 35 ILCS 120 4. 120'5, 120'5a. !20'5b. 120 Sc, 120 Sd. l20'5c. 120 5f. 120 5g. 120'5h (repealed), 35 fLCS 120 5i, 120 5j, 120·5k. 120 5/. 120'6. 120 6a. l'.'.O 6b. 120 {,c. 120'7, 120 1'. 120·'1, 1.'.'0 10. 120 JJ, 120 12 and 35 JLCS 1.20 13. 35 ILCS 735:3-7. 35 ILCS 105 1el seq. 70 ILCS 3615'4.m. 35 TLCS 120 la-1, 120 2. 35 /LCS 120''.'.a, 1:'0 3. 35 ILCS 120'4. 35 ILCS 120 5, 120·7. 120·8. 35 Il.CS 120 9. 35 !LCS 120'10. 35 fl.CS 120 I1. 120 12. 35 JLCS 120 2h. 35 JLCS 115'13. 35JLCS 11515.11515.5. l!S 16, 11517, 11518.11519.and 11520. 35 ILCS J05 2. 35 !LCS I(15 ·3 through 105 3-80. 351LCS 105·'4, 105.Jl, 10512, 10511~. l05'14, 105'15, 10519. 35 JLCS l05 ·20. 105 21, and I05 22. 35 !LCS 735 3·7. 35 llCS 120- l ct s~q. 35 JLCS l 15 1el ,eq. 35 lLCS 110 1et seq.

, :;,[,,f '\,,, ,,, .·1

### (( 

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

retiree health benefit program in the prior plan year, as calculated and certified in writing by 

## the Retiree Health Care Trust's enrolled actuary to be appointed and paid for 

## by the Board of Trustees. (6) Effective 30 days a-fter the establishment of the Retiree Health Care Trust, all employees of the Authority 

### shall contribute to the Retiree Health Care Trust in an 

## amount not less than 3% of compensation. (7) No earlier than January 1, 2009 and no later 

## than July 1, 2009 as the Retiree Health Care Trust becomes 

### solely responsible for providing health care benefits to eligible retirees and their dependents 

### and survivars in accordance with subsection (b) of this Section 

## 22-lOlB the Authority shall not have any obligation to provide health

care to current or future retirees and their dependents or survivors. Employees, retirees, dependents, and survivors who are required to make contributions to the Retiree Health Care Trust shall make contributions at the level seL 

### by the Board of Trustees pursuant to the requirements of this Section 

## 22-lOlB.

Section 10. The Illinois Municipal Code is amended by changing Section 8-3-19 as follows:



## (65 ILCS 5/8-3-19) Sec. 8-3-19. Home rule real estate transfer taxes.

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
(a) After the effective date of this amendatory Act of the 93rd General Assembly and subject to this Section, a home rule municipality may impose or increase a tax or other fee on the privilege of transferring title to real estate, on the privilege of transferring a beneficial interest in real property, and on the privilege of transferring a controlling interest in a real estate entity, as t.he terms "beneficial interest", "controlling interest", and "real estate entity"

are defined in Article 31 of the Property Tax Code. Such a tax

or other fee shall hereafter be referred to as a real estate transfer 1:.ax. (b) Before adopting a resolution to submit the question of imposing or increasing a real estate transfer tax to referendum, the corporate authorities shall give public notice of and hold a public hearing on the intent to submit the question to referendum. This hearing may be part of scheduled meeting of the corporate authorities. a regularly The notice shall be published not more than 30 nor less than 10 days prior
to the hearing in a newspaper of general circulation within the municipality. The notice shall be published in the following form: Notice of Proposed {Increased) Real Estate Transfer Tax for (commonly known name of municipality). A public hearing on a resolution to submit to referendum the question of a proposed (increased) real
estate transfer tax for {legal name of the municipality) in (

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

an amount of (rate) to be paid by the buyer (seller) of the real estate transferred will be held on (date) at (time) at (location)

. The current. rate of real estate L.ransfer tax imposed by (name of municipalit.y) is (rate). Any person desiring to appear at the public hearing and present testimony to the taxing district may do so. (c) A notice that includes any information not specified and required by this Section is an invalid notice. All hearings shall be open to the public. At the public hearing, the corporate authorities of the municipality shall explain the

reasons for the proposed or increased real estate transfer tax and shall permit persons desiring to be heard an opportunity t.o present testimony within reasonable time limits determined by the corporate authorities. A copy of the proposed ordinance shall be made available to the general public for inspection before the public hearing. (d) Except as provided in subsection (i), no Ne- 

### home rule municipality shall impose a new real estate transfer tax after the effective date of this amendatory Act of 1996 without prior approval by referendum. Except as provided in subsection (i), Q2. 

### *6 

### home rule municipality shall impose an increase of the
rate of a current real estate transfer tax without prior approval by referendum. A home rule municipality may impose a

new real estate transfer tax or may increase an existing real
estate transfer tax with prior referendum approval. The referendum shall be conducted as provided in subsection {e). An

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
existing ordinance or resolution imposing a real estate transfer tax may be amended wit.hout approval by referendum if t.he amendment. does not increase the rate of the tax or add transactions on which the tax is imposed. (e) The home rule municipalit.y shall, by resolution, provide for submission of the proposition to the voters. The home rule municipality shall certify the resolution and the proposition tot.he proper election officials in accordance with the general election law. If t.he proposition is to impose a new real estate transfer tax, it shall be in substantially the following form: "Shall (name of municipality) impose a real
estate transfer tax at. a rate of (rate) to be paid by the buyer (seller) of the real estate transferred, with the revenue of the proposed transfer tax to be used for (purpose)? 11 • 

### If the proposition is to increase an existing real estate transfer tax, it shall be in the following form: "Shall (name of municipality) impose a real estate transfer tax increase of (percent increase) to establish a new transfer tax rate of (rate) to be paid by T.he buyer (seller) of the real estate transferred? The current rate of the real estate transfer tax is (rate), and the revenue is used for (purpose). The revenue from the increase is to be used for (purpose).". If a majority of the electors voting on the proposition
vote in favor of it, the municipality may impose or increase the municipal real estate transfer tax or fee. (f) Nothing in this amendatory Act of 1996 shall limit the 

## (

### I 

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

purposes for which real estate L-ransfer tax revenues may be collected or expended. (g) A home rule municipality may not impose real estate transfer taxes other than as authorized by this Section. This Section is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution. (h) Notwithstanding subsection (g) of this Section, any real estate -cransfer taxes adopted by a municipality at any time prior to January 17, 1997 (the effective date of Public Act 89-701) and any amendmenr.s to any existing real estate transfer tax ordinance adopted after that date, in accordance with the law in effect at the time of the adoption of the amendments, are not preempted by this amendatory Act of the 93rd General Assembly. (i) Within 6 months after the effective date of this amendatorv Act of the 95th Genera1 

## Assembly, by 

## ordinance adopted without a referendum, a home rule municipality with a population in excess of 1 1

## 000,000 may increase the rate of an existing real estate transfer tax by a rate of up to $1.50 for each $500 of value or fraction thereof or in the alternative may impose a real estate transfer tax at a rate of up to $1.50 for each $500 of value or fraction thereof, which may be on the buyer or seller of real estate, or jointly and severally on both, for the sole purpose of providing financial assistance to the Chicago Transit Authority. All amounts collected under such

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
supplemental tax, after fees for costs of collection, shall be provided to the Chicago Transit Authority pursuant to an intergovernmental agreement as promptly as practicable upon their receipt. Such municipality shall file a copy of any ordinance imposing or increas-ing such tax with the Illinois Department of Revenue and shall file a report with the Department each month certifying the amount paid to the Chicago Transit Authority in the previous month from the proceeds of such tax. (Source: P.A. 93-657, eff. 6-1-04.)

Section 15. The Metropolitan Transit Authority Act is amended by changing Sections 15, 28a, 34, and 46 and by adding Sections 12c, 50, and 51 as follows:

(70 ILCS 3605/12c new) Sec. 12c. Retiree Benefits Bonds and Notes. (a) In addition to all other bonds or no1:.es that it is authorized to issue, the Authority is authorized to issue its bonds or notes for the purposes of providing funds for the Authority to make the deposits described in Section 12c (b) (1) 

### and (2), for refunding any bonds authorized to be issued under this Section, as well as for t.he purposes of paying costs of issuance, obtaining bond insurance or other credit enhancement

or liquidity facilities, paying costs of obtaining related swaps as authorized in the Bond Authorization Act ("Swaps") 1 

### (

### ( 

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

### providing a debL service reserve fund, paying Debt Service (as defined in paraaraph (i) of this Section 12c), and paying all other costs related to any such bonds or notes. (b) (1) After its receipt of a certified copy of a report of the Auditor General of Lhe State of Illinois meeting the requirements of Section 3-2.3 of the Illinois Seate Auditing Act, the Auchority may issue $1 1 

### 348,550 1 

### 000 aggregate original principal amount of bonds and notes. After payment of the costs of issuance and necessary deposits to funds and accounts established with respect to debt service, Lhe net proceeds of such bonds or notes shall be deposited onlv in the Retirement Plan for Chicago Transit Authority Employees and used only for the purposes required by Section 22-101 of the Illinois Pension Code. Provided that no less than $1 110 500,000 has been deposited in the Retirement Plan, remaining proceeds of bonds issued under this subparagraph (b) (1) may be used to pay costs of issuance and make necessary deposits to funds and accounLs with respect to debt service for bonds and notes issued under this subparagraph or subparagraph (b) (2) (2) After its receipt of a certified copy of a report of the Auditor General of the State of Illinois meeting the requirements of Section 3-2.3 of the Illinois State Auditing Act, the Authority may issue $639 1 

### 680,000 aggregate original principal amount of bonds and notes. After payment of the costs of issuance and necessary deposits to funds and accounts established with respect to debt service, the net proceeds of

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

such bonds or notes shall be deposited only in the Retiree Health Care Trust and used only for the purposes required by 

### Section 22-lOlB of the Illinois Pension Code. Prov~ded that no less than $528,800 1 

### 000 has been deposited in the Retiree Health Care Trust, remaining proceeds of bonds issued under this subparagraph (bl (2) may be used to pay costs of issuance and make necessary deposits to funds and accounts with respect to debt service for bonds and notes issued under this subparagraph

or subparagraph (b) (1) (3) In addition, refunding bonds are authorized to be issued for the purpose of refunding outstandinq bonds or notes issued under this Section 12c. (4) The bonds or notes issued under 12c(b) (1) shall be issued as soon as practicable after the Auditor General issues the report provided in Section 3-2.3 (b) of the Illino-i s State Auditing Act. The bonds or notes issued under 12c{b) (2) shall be issued as soon as practicable after the Auditor General issues the report provided in Section 3-2.3\c) of the Illinois State Auditing Act. (5) With respect to bonds and notes issued under subparagraph (b), scheduled aggregate annual payments of interest or deposits into funds and accounts established for the purpose of such payment shall commence within one year after the bonds and notes are issued. With respect LO 

### principal and interest, scheduled aggregate annual payments of principal and interest or deposits into funds and accounts established (



### (

### ( 

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

for che purpose of such pavment shall be not less than 70% in 2009 1 

## 80% in 2010, and 90% in 2011, respectively 1 

## of scheduled payments or deposits of Principal and interest in 20i 2 and shall be substantially equal beainning in 2012 and each year thereafter. For purposes of this subparagraph (b) 1 

## "substantially equal" means that debt service in any full year after calendar year 2011 is not more than 115% of debt service in any other full vear after calendar year 2011 during the term of the bonds or notes. For the purposes of this subsection (b), with respect to bonds and notes that bear interest at a variable rate, interest shall be assumed aL a rate equal to the
rate for United States Treasury Securities

- State and Local Government Series for the same maturity, plus 75 basis points. Tf the Authority enters into a Swap with a counterparty requiring the Authority to pay a fixed interest rate on a notional amount, and the Authority has made a determination that such Swap was entered into for the purpose of providing substitute interest payments for variable interest rate bonds

or notes of a particular maturity or maturities in a principal
amount equal to the notional amount of the Swap, then during the term of the Swap for purposes of any calculation of interest payable on such bonds or notes, the interest rate on the bonds or notes of such maturity or maturities shall be determined as if such bonds or notes bore interest at the fixed interest rate payable by the Authority under such Swap. (6) No bond or note issued under this Section 12c shall

### Public Act. 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

mature later than December 31, 2040. (c)· The Chicago Transit Board shall provide for the issuance of bonds or notes as authorized in this Section 12c by "Che adoption of an ordinance. The ordinance, Logel.her with the bonds or notes, shall constitute a contract among the Authority, the owners from time to time of the bonds or nOi:.es, any bond trusL.ee wi.th respect to the bonds or notes, any related credit enhancer and any provider of any related Swaps. (d) The Authority is authorized to cause the proceeds of the bonds or notes, and any interest or investment earnings on the bonds or not.es, and of any Swaps, to be invested until the proceeds and any interest or investment earnings have been deposited wit.h the Retirement. Plan or the Retiree Healt.h Care Trust. (e) Bonds or notes issued pursuant to this Section 12c may be aeneral obligations of the Authority, to which shall be pledged the full faith and credit of the Authority, or may be obligations payable solely from particular sources of funds all

as may be provided in the authorizing ordinance. The authorizing ordinance for the bonds and notes, whether or not general obligations of the Authority, may provide for the Debt Service (as defined in paragraph (i) of this Section 12c) to have a claim for payment from particular sources of funds, including, without limitation, amounts to be paid to the Authority or a bond trustee. The authorizing ordinance may provide for the means by which the bonds or notes (and any 

## (

### ( 

## Public Act 095-0708
HB0656 Re-Enrolled 

## LRB09S 04786 DRH 24846 b

related Swaps) may be secured, which may include, a pledge of any revenues or funds of the Authority from whatever source which may by law be utilized for paying Debt Service. In addition to any other security, upon the written approval of the Regional Transportation Authority by the affirmative vote of 12 of its then Directors, the ordinance may provide a specific pledge or assignment of and lien on or security interest in amounts to be paid to the Authority by the Regional Transportation Authority and direct payment thereof to the bond
trustee for payment of Debt Service with respect to the bonds

or notes, subject to the provisions of existing lease agreements of the Authority with any public building commission. The authorizing ordinance may also provide a specific pledge or assignment of and lien on or security interest in and direct payment to the trustee of all or a portion of the moneys otherwise payable to the Authority from the City of Chicago pursuant to an intergovernmental agreement with the Authority to provide financial assistance to the Authority. Any such pledge, assignment, lien or security interest for the benefit of owners of bonds or notes shall be valid and binding from the time the bonds or notes are issued, without any physical delivery or further act, and shall be valid and binding as against and prior to the claims of all other parties having claims of any kind against the Authority

or any other person, irrespective of whether such other parties have notice of such pledge, assignment, lien or security

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
interest, all as provided in the Local Government Debi:. Reform Act, as it may be amended from time to time. The bonds or notes of the Authoritv issued pursuant to this Section 12c shall have such priority of payment and as to their claim for payment from particular sources of funds, including i:.heir priority with respect t.o obligations of the Authority issued under other Sections of this Act all as shall be provided in the ordinances authorizing the issuance of the bonds or notes. The ordinance authorizing the issuance of any bonds or notes under this Section may provide for the creation of, deposits in, and regulation and disposition of sinking fund or reserve accounts relating to those bonds or notes and related agreements. The ordinance authorizing the issuance of any such bonds or notes aui:.horized under this Section 12c may contain provisions for the creation of a separate fund to provide for the payment of principal of and int.erest on those bonds or notes and related agreements. The ordinance may also provide limitations on the issuance of additional bonds or notes of the Authority. (f) Bonds or notes issued under this Section 12c shall not constitute an indebtedness of the Regional Transportation Authority, the State of Illinois, or of any other political subdivision of or municipality within the State, except the Authority. (g) The ordinance of the Chicago Transit Board authorizing the issuance of bonds or notes pursuant to this Section 12c may provide for the appointment of a corporate trustee (which may (

## I Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

be any trust company or bank having the powers of a r.rust company within Illinois) with respect to bonds or notes issued 

## pursuant to this Section 12c. The ordinance shall prescribe the rights, duties, and powers of the trustee to be 

## exercised for the benefit of the Authority and the protection of the owners of bonds or notes issued pursuam:. to this Section 12c. The 

## ordinance mav provide for the trustee to hold in trust, invest and use amounts in funds and accounts created as provided by 

## the ordinance wir.h respect to the bonds or notes in accordance with this Section 12c. The Authority may apply, as it 

### shall 

### determine, any amounts received upon the sale of the bonds or notes to pay any Debt Service on the bonds or notes. The ordinance may provide for a trust indenture to set forth terms of, sources of payment for and security for the bonds and
notes. (h) The State of Tllinois pledges to and agrees with the

owners of the bonds or notes issued pursuant to Section 12c that. the State of Tllinois will not limit the powers vested in the Authority by this Act to pledge and assign its revenues and funds as security for the payment of the bonds or notes, or vested in the Regional Transportation Authority by the Regional Transportation Authority Act or this Act, so as to materially impair the payment obligations of the Authority under the terms of anv contract made by the Authority with those owners or to materially impair the rights and remedies of those owners until those bonds or notes, together with interest and any redemption

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
premium, and all costs and expenses in connection with anv action or proceedinos by 

### or on behalf of such owners are fully
met. and discharged. The Am:.hority 

## ~s authorized to include these pledges and agreements of the State of Illinois in any contract with owners of bonds or notes issued pursuant to this Sec1:.ion 12c. (i) For purposes of this Section, "Debt Service" with respect to bonds or notes includes without limitation principal 

### (at maturity 

### or upon mandatory redemption) , redemption premium, interest, periodic, upfront, 

### and termination payment.son Swaps, fees for bond insurance or other credit enhancement, liquidity facilities, the funding of bond

or note reserves bond trustee fees and all other costs of providing for the security or payment oft.he bonds or notes. 

# IiI The Authority shall adopt a procurement program with respect to contracts relating to the following service providers in connection with t.he issuance of debt for the benefit of the Retirement Plan for Chicago Transit Authority Employees: underwriters, bond counsel, financial advisors, and
accountants. The program shall include goals for the payment of
not less than 30% of the total dollar value of the fees from these contracts to minority owned businesses and female owned businesses as defined in the Business Enterprise for Minorities Females and Persons with Disabilities Act. The Authority shall conduct outreach to minority owned businesses and female owned businesses. Outreach shall include but is not 

### ((



### ( 

## Public Act 095-0708 

## l-lB0656 Re-Enrolled

limited to, 

## adveri:.isements in mailings, and other appropriate 

## LRB095 04786 DRH 24846 b
periodicals 

## and newspapers,

media. The 

### Authority shal1 submit to 

### the General Assembly a comprehensive 

## report that shall include, at a 

### minimum, the details of the procurement plan, outreach efforts, and the results of the efforts to achieve goals for the payment of fees. The service providers 

## selected bv the Authority pursuant to such program shall 

## not be subject to approval by 

### the 

## Regional Transportation Authority, 

## and the Regional Transportation Authority's approval pursuant
to subsection (e) of this Section 12c related to the 

### issuance 

## of debi:. shall not be based in any way on the service providers selected by the Authority pursuant to this Section. (k) No person holding an elective office in this State, holding a seat in the General Assembly, serving as a director, trustee, officer, or employee of the Regional Transportation Authority or the Chicago Transit Au~hority, including the spouse or minor child of that person, may receive a legal, banking, consulting, or other fee related to the issuance of any bond issued by the Chicago Transit Authority pursuant to this Section.

(70 ILCS 3605/15) 

### (from Ch. 111 2/3, 

### par. 315) 

### Sec. 15. The Authority shall have power to apply for and accept grants and loans from the Federal Government or any agency or instrumentality thereof, from the State, or from any county, municipal corporation or other political subdivision

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

of the State to be used for any of the purposes of the Authority, including, but not by way of limitation, grants and loans in aid of mass transportation and for studies in mass transporta1:.ion, and may provide matching funds when necessary to qualify for such grants or loans. The Authority may enter into any agreement with the Federal Government the State and any coun1:.y, municipal corporation or other political subdivision 

## oT the SL.ate in relation to such grants or loans; provided that such agreement does not conflict with any of the provisions of any trust agreement securing the payment of bonds

or certificates of the Authority. The Authority may also accept from the state, or from any county or other political subdivision, or from any municipal corporation, or school districL., or school authorities, grants

or other funds authorized by law to be paid to the Authority for any of the purposes of this Act. {Source: Laws 1961, p. 3135.)

(70 ILCS 3605/28a) (from Ch. 111 2/3, par. 328a) Sec. 28a. (a) The Board may deal with and enter into written contracts with the employees of the Authority through accredited representatives of such employees or representatives of any labor organization authorized to act for such employees, concerning wages, salaries, hours, working conditions and pension or retirement provisions; provided, nothing herein shall be construed to permit hours of labor in 

## I

(

### ( 

### Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b

excess of those provided by 

### law or to permit working conditions prohibited by law. In case of dispute over wages, salaries, hours, working conditions, or pension or retirement provisions the Board may arbitrate any question or questions and may agree wit.h such accredited representatives or labor organization that the decision of a majority of any arbitration board shall be final, provided each party shall agree in advance t.o pay half of the expense of such arbitration. No contract. or agreement shall be made with any labor organization, association, group or individual for the employment of members of such organization, association, group

or individual for the construction, improvement, maintenance, operation or administration of any property, plant or facilities under the jurisdiction of the Authority, where such organization, association, group or individual denies on the ground of race, creed, color, sex, religion, physical or mental handicap unrelated to ability, or national origin membership and equal opportunities for employment to any citizen of Illinois. (b) (1) 

### The provisions of this paragraph (b) 

### apply to collective bargaining agreements (including extensions and amendments of existing agreements) entered into on or after January 

## 1, 1984. (2) The Board shall deal with and enter into written
contracts with their employees, through accredited representatives of such employees authorized to act for such

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
employees concerning wages, salaries, hours, working conditions, and pension or retirement provisions about which a collective bargaining agreement has been entered prior to the effective date of t.his amendat.ory Act of 1983. Any such agreement oft.he Authority shall provide that the agreement may be reopened if the amended budget submitted pursuant. to Section 2.lSa of the Regional Transportation Authorit.y Act is not approved by the Board of the Regional Transportation Authority. The agreement may not include a provision requiring the payment. of wage increases based on changes in the Consumer Price Index. The Board shall not have the authority to enter into collective bargaining agreements with respect to inherent management rights, which include such areas of discretion or policy as the functions of the employer, standards of services, its overall budget, the organizational structure and selection of new employees and direction of personnel. Employers, however, shall be required to bargain collectively with regard to policy
matters directly affecting wages, hours and terms and 

### conditions of employment, as well as the impact thereon upon request by employee representatives. To preserve the rights of employers and exclusive representatives which have established collective bargaining relationships or negotiated collective bargaining agreements prior to the effective date of this amendatory Act of 1983, employers shall be required to bargain collectively with regard to any matter concerning wages, hours

or conditions of employment about which they have bargained I



### (

### ( 

## Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b
prior to the effective daL.e of this amendatory Act of 1983. 

### (3) The collective bargaining agreemen-L. may not include a prohibition on the use of part-time operators on any service operated by or funded by the Board, except where prohibited by 

### federal law. (4) Within 30 days of the signing of any such collective bargaining agreement, the Board shall determine the costs of each provision of the agreement, prepare an amended budget incorporating the costs of the agreement, and present the amended budget to the Board of the Regional Transportation 

### Authority for its approval under Section 4.11 of the Regional Transportation Act. The Board of the Regional Transportation Authority may approve the amended budget by an affirmative vote of 

# g b,'O :...hirds 

### of its 'Chen Directors. If the budget is not approved by the Board of the Regional Transportation Authority, the agreement may be reopened and its terms may be renegotiated. Any amended budget which may be prepared following renegotiation shall be presenLed to the Board of the Regional Transportation Authority for its approval in like

manner. (Source: P.A. 83-886.)

(70 ILCS 3605/34) 

### (from Ch. 111 2/3, 

### par. 334) Sec. 34. Budget and Program. The Authority, subject to the powers 

## of the Regional Transportation Authority in Section 4.11 of the Regional Transportation Authority Act, shall control the

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

## I

finances of the Authority. It shall by ordinance appropriate money to perform the Authority's purposes and provide for payment of debts and expenses of the Authority. Each year the Authority shall prepare and publish a comprehensive annual budget and five-year capital program document, and a financial plan for the 2 years thereafter describing the state of the .i'\.uthority and presenting for the forthcoming fiscal year and ~he two following years the Authority's plans for such operations and capital expenditures as it intends to undertake and the means by which it intends to finance them. The proposed budgetL frfr6 

### financial plan, and five-vear capital program shall be based on the Regional Transportation Authority's estimate of funds to be made available to the Authority by or through the Regional Transportation Authority and shall conform in all respects to the requirements established by the Regional Transportation Authority. The proposed p:rngrmn 

### and budgetL financial plan, and five-vear capital program shall contain a statement of the funds estimated to be on hand at the beginning of the fiscal year, the funds estimated to be received from all

sources for such year and the funds estimated to be on hand at the end of such year. Aft.::.r adoption 

### of -~he Rcg.:.or.al ':!:'ransport.ation l'.u:::.hcrity' s f.::.rst 

## Five Year 

## Program, provided in 

## Sect.::.on 2.0 1 0 

## ::.he Regier.al Tran3por:::.aticn Author.:.:::.y Act, the proposed program 

### and budget shall specifically idcBti:'.:y any ::espec-::. .; n •.;hL:h the 

### rccofftmcnded prog:am deJia:::.cs froffi 

### the Regional Transportation A"Ct.ho::i-::.y' 

### s

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

".:hen exis".:ing Five Yee.a- 

### Program, gi·:ing ".:he 

### reas;:;ns :=or ouch 

### de·oiation. The proposed program and budget 1 

### financial plan, and five-year capital program shall be available at no cost for public inspection at the Authority's main office and at the Regional Transportation Authority's main office at least 3 weeks prior to any public hearing. Before the proposed budget~ ar.d prcgrarr. ar.d financial plan, and five-year capital program

are submitted to 1:.he Regional Transportation AuthoriLy, the Authority shall hold at least one public hearing thereon in each of the counties in which the Authority provides service. All Board members of the Authority shall al.tend a majority of the public hearings unless reasonable cause is given for their absence. After the public hearings, the Board of the Authority shall hold at least one meeting for consideration of the proposed program and budget with the Cook County Board. After conducting such hearings and holding such meetings and after making such changes in the proposed progrc.rr. and budget.L. financial plan, and five-year capital program as the Board deems appropriate, it shall adopt an annual budget ordinance at least by November 15th preceding the beginning of each fiscal year. The budgetL and program, and financial plan and five-year capital Program shall then be submitted to the Regional Transportation Authority as provided in Section 4.11 of the Regional Transportation Authority Act. In the event that the Board of the Regional Transportation Authority determines that the budgetL and program, and financial plan, and five-year

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
capital program do not meet the standards of said Section 4.11, 

## the Board of the Authority shall make such changes as are necessary to meet such requirements and adopt an amended budget ordinance. The amended budget ordinance shall be resubmicted to t.he Regional Transportation Authority pursuant to said Section 4.11. The ordinance shall appropriate such sums of money as are deemed necessary t.o defray all necessary expenses and obligations of the Authority, specifying purposes and the objects or programs for which appropriations are made and the
amount appropriated for each object or program. Additional appropriations, transfers between items and other changes in such ordinance which do not alter the basis upon which the balanced budget determination was made by the Regional Transportation Authority may be made from time to time by the Board. The budget shall: (i) show a balance between (A) anticipated revenues from all sources including operating subsidies and (B) the
costs of providing the services specified and of funding any operating deficits or encumbrances incurred in prior periods, including provision for payment when due of principal and interest on outstanding indebtedness; (ii) show cash balances including the proceeds of any anticipated cash flow borrowing sufficient to pay with reasonable promptness all costs and expenses as incurred; (iii) 

## provide for a level of fares or charges and (

(

## I Public Act 095-0708
HB0656 Re-Enrolled
operating or administrative 

## LRB095 04786 DRH 24846 b

costs for 

## the public transportation provided by or subject to the jurisdiction of the Board sufficient to allow the Board to meet its required system generated revenue recovery ratio as determined in accordance with subsection (a) of Section 4.11 of the Regional Transportation Authority Act; (iv) be based upon and employ assumptions and projections which are reasonable and prudent; (v) have been prepared in accordance with sound financial practices as determined by the Board of the Regional Transportation Authority;**~** 

## (vi) meet such other financial, budgetary, or fiscal requirements that the Board of the Regional Transportation Authority may by rule or regulation establish; and 7 

## (vii) be consistent with the goals and objectives adopted by the Regional Transportation Authority in the Strateqic Plan. The Board shall establish a fiscal operating year. At least thirty days prior to the beginning of the first full fiscal year after the creation of the Authority, and annually thereafter, the Board shall cause to be prepared a tentative budget which shall include all operation and maintenance expense for the ensuing fiscal year. The tentative budget shall be considered by the Board and, subject to any revision and amendments as may be determined, shall be adopted prior to the first day of the ensuing fiscal year as the budget for that

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b



### year. No expenditures for operations and maintenance in excess of the budget shall be made during any fiscal year except by the affirmative vote of at least five members of the Board. It shall not be necessary to include in the annual budget any statement of necessary expenditures for pensions or retirement annuities, or for interest or principal payments on bonds or certificates, or for capital outlays, but it shall be the duty of the Board to make provision for payment of same from appropriate funds. The Board may not alter its fiscal year without the prior approval of the Board of the Regional Transportation Authority. (Source: P.A. 87-1249.)

(70 ILCS 3605/46) (from Ch. 111 2/3, par. 346) Sec. 46. Citizens Advisory Board. The Board shall establish

a citizens advisory board composed of 11 residents of those portions of the me-r.ropolitan region in which the Authority provides service who have an interest in public transportation,

one of whom shall be at least 65 years of age. The members of the advisory board shall be named for 2 year terms, shall select one of their members to serve as chairman and shall

serve without compensation. The citizens advisory board shall
meet with Board at least quarterly and advise the Board of the impact of its policies and programs on the communities it

serves. Appointments to the citizens advisory board should, to the greatest extent possible, reflect the ethnic, cultural, and (

# (

( Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
geographic diversity of all persons residing within the metropolitan region in which the Authority provides service. (Source: P.A. 87-226.)

(70 ILCS 3605/50 new) Sec. 50. Disadvantaged Business Enterprise Contracting and Equal Employment Opportunity Programs. The Authority shall, as

soon as is practicable but in no event later than two years afcer the effective date of this amendatory Act of the 95th General Assembly, establish and maintain a disadvantaged business enterprise contracting program designed to ensure non-discrimination in the award and administration of
contracts not covered under a federally mandated disadvantaged business enterprise program. The program shall establish narrowly tailored goals for the participation of disadvantaged business enterprises as the Authority determines appropriate. The goals shall be based on demonstrable evidence of the availability of ready, willing, and able disadvantaged business enterprises relative 

### co all businesses ready, willinq, and able to participate on the program's contracts. The program shall require the Authority to monitor the progress of the contractors 1 

### obligations with respect to the program's goals. Nothing in this program shall conflict with or interfere with the maintenance or operation of, or compliance with, any federally mandated disadvantaged business enterprise program. The Authority shall establish and maintain a program

### Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b

desianed to promote equal employment opportunity. Each year, no later than October 1, the Authority shall report to the General Assembly on the number of employees of the Authoritv and the number of employees who have designated themselves as members of a minority group and gender. Each year no later than October 1, and starting no later than the October 1 after the establishment of the disadvantaged business enterprise contracting program, the Authority shall submit a report with respect to such program to the General Assembly. In addition, no later than October l 

### of each year, the Authority shall submit a copy of its federally mandated semi-annual Uniform Report of Disadvantaged Business En"Cerprises Awards or Commitments and Payments to the General Assembly.

(70 ILCS 3605/51 new) Sec. 51. Notwithstanding any law to the contrary, no later than 60 days following the effective date of this amendatory AcL. of the 95th General Assembly, any fixed route public transportation services provided by, or under grant or purchase of service contracts of, the Board shall be provided without charge to 

## all senior citizens of the Metropolitan Region (as such term is defined in 70 ILCS 3615/1.03) aged 65 and older, under such conditions as shall be prescribed by the Board.

Section 16. The Local Mass Transit District Act is amended (

### Public Act 095-0708
HB0656 Re-Enrolled
by 

### adding Section 8.6 as follows:

(70 ILCS 3610/8.6 new) LRB095 04786 DRH 24846 b

Sec. 8.6. Notwithstanding any law to Lhe contrary, no later than 60 days following the effective date of this amendatory Act of Lhe 95th General Assembly, any fixed route public transportation services provided 

## by, or under grant or purchase of service contracts of, every District shall be provided without charge to all senior citizens of the District aged 65 and older, under such conditions as shall be prescribed by 

### the District.

Section 20. The Regional Transportation Authority Act is amended by changing Sections 1.02, 2.01, 2.04, 2.05, 2.09, 2.12, 2.14, 2.18a, 2.30, 3.01, 3.03, 3.05, 3A.10, 3A.ll, 3A.14, 3B.02, 3B.03, 3B.05, 3B.07, 3B.09, 38.10, 3B.11, 3B.12~ 3B.13, 4.01, 4.02, 4.02a, 4.02b, 4.03, 4.04, 4.09, 4.11, 4.13, 4.14, and 5.01 and by adding Sections 2.0la, 2.0lb, 2.0lc, 2.0ld, 2.0le, 2.12b, 2.31, 3A.15, 3B.14, and 4.03.3 as follows:

(70 ILCS 3615/1.02) (from Ch. 111 2/3, par. 701.02) 

### Sec. 1.02. Findings and Purpose. (a) The General Assembly finds; (ii Public transportation is, as provided in Section 7 of 

### Article XIII of the Illinois Constitution, an essential public purpose for which public funds may be expended and that Section

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

authorizes the StaLe to provide financial assistance to units of local governmem: for distribution to providers of public transportation. There is an urgent need to reform and continue

a 

### unit of local government to assure the proper management of public transportation and to receive and distribute State or federal operating assistance and to raise and distribute

revenues for local operating assistance. System generaLed

revenues are not adequate for such service and a public need exists to provide for, aid and assist public transportation in the northeastern area of the State, consisting of Cook, DuPage, Kane, Lake, McHenry and Will Coum:.ies. (ii) Comprehensive and 

### coordinated regional public transportation is essential to the public health, safety and welfare. It is essential to economic well-being, maintenance of full employment, conservation of sources of energy and land for open space and reduction of traffic congestion and for providing and maintaining a healthful environment for the benefit of present and f~ture generations in the metropolitan region. Public transportation improves the rnobility of the public and improves access to jobs, commercial facilities, schools and cultural attractions. Public transportation decreases air pollutio~ and other environmental hazards resulting from excessive use of automobiles and allows for more efficient land use and planning. (iii) Because system generated receipts are not presently adequate, public transportation facilities and services in the 

## (

{( 

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b



## northeastern area are in grave financial condition. With existing methods of financing, coordination and management, and 

### relative convenience 

## of automobiles, 

## such public transportation facilities are not providing adequate public 

## transportation to insure the public health, safety and welfare. (iv) 

## Additional commitments to 

### the spec_:_a1 

## public 

## transportation needs prob::'..ems of the disabled handi::appcd, the economically disadvantaged, and the elderly are necessary. (v) To solve these problems, it 

## is necessary to provide for the creation of a regional transportation authorit:y with the powers necessary to insure adequate public transportation. (b) The General Assembly further finds, in connection with this amendatory Act of 

### 1983: (i} 

### Substantial, recurring deficits in the operations of public transportation services subject to the jurisdiction of the Regional Transportation Authority and periodic cash shortages have occurred either of which could bring about 

### a loss 

## of public transportation services throughout the metropolitan region at any time; (ii) A subsrantial or total loss of public transportation services or any segment thereof would create an emergency threatening the safety and well-being of the people in the northeastern area of the State; and 

## (iii) To meet the urgent needs of the people of the metropolitan region that such an emergency be averted and to provide financially sound methods of managing the provision of

### ?ublic Act. 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b
public transportation services in the northeastern area of the S-cate, it is necessary, while maintaining and continuing the existing Authority, to modify the powers and responsibilities of the 

### Authori1:.y, to reallocate responsibility for operating decisions, to change the composition and appointment of the Board of Directors thereof, and to immediately establish a new Board of Directors. (c) The General Assemblv further finds in connection with -chis amendatory Act of the 95th General Assembly: (i) The economic vitality of northeastern Illinois requires regionwide and systemwide efforts to increase ridership on the transit systems, constrain road congestion within the metropolitan reaion and allocate resources for transportation so as to assist in the development of an adequate, efficient., and coordinated regional transportation system that is in a state of good repair. (ii) To achieve the purposes of this amendatory Act of the 95th General Assembly, the powers and duties of the Authority
must be enhanced to improve overall planning and coordinat.ion,
to achieve an inteqrated and efficient regional transit system,
to advance the mobilitv of transit users and to increase financial transparency of the Authority and the Service Boards. 

# J.Ql -fet It is the purpose of this Act to provide for, aid and assist public t.ransportation in the northeastern area of the State without impairing the overall quality of existing public transportation by providing for the creation of a single

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b


### authority responsive to the people and elected officials of the

area and with the power and competence to develop, implement, and enforce plans that promote adequate, efficient, and coordinated public transportation, provide financial review of the providers of public transportation in the metropolitan region and facilitate public transpor~ation provided by Service Boards which is attractive and economical to users, comprehensive, coordinated among its various elements, economical, safe, efficient and coordinated with area and State plans. (Source: P.A. 83-885; 83-886.)

(70 ILCS 3615/2.01) (from Ch. 111 2/3, par. 702.01) 

### Sec. 2.01. General Allocation of Responsibility for Public Transportation. P:co·"·ision of Public Transportation 

### Review and Progrma. 

### (a) In order to accomplish the its purposes as set forth in this Act, the responsibility for planning, operatinq, and funding public transportation in the metropolitan region shall be alloca~ed as described in this Act. The Authority shall: (i) adopt plans that implement the public policy of the State to provide adequate, efficient, and coordinated public transportation throughout the metropolitan region; (ii) set goals, objectives, and standards for the Authority, the Service Boards, and 

### transportation agencies;

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
{iii) develop performance measures to inform the public about the extent to which the provision of public transportation in the metropolitan region meets those goals, objectives, and standards; (iv) allocate operating and capital funds made available to support public transportation in the metropolitan region; (v) 

### provide financial oversight of the Service Boards; and 

### (vi) coordinate the provision of public transportation and the investment in public transportation facilities to enhance the integration of public transportation throughout the metropolitan region, all as provided in this Act. The 

## 4::fle Service Boards shall, on a continuing basis determine the level, nature and kind of public transportation which should be provided for the metropolitan region in order
to meet the plans, goals, objectives, and standards adopted by the Authority. The Service Boards may provide public transportation by purchasing such service from transportation agencies through purchase of service agreements, 

## by grants to such agencies or by operating such service, all pursuant to this Act and the "Metropolitan Transit Authority Act", as now

or hereafter amended. Certain of its actions to implement the responsibilities allocated to the Authority in this subsection (a) shall be taken in 3 public documents adopted by the (

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b



### affirmative vote of at least 12 o'f its then Directors: A Strategic Plan; a Five-Year Capital Program; and an Annual Budget and Two-Year Financial Plan. The :.-::lthori::y shall c::s"':.ablish a policy to J9ro·;:.de adequate public ".:..::anop::rta".:.ic:. threugl~.eut ~he mctropol' tan region. (b) The Authority shall subject the operating and capital plans and expenditures of the Service Boards in the metropoli,:an region with regard to public transportation to continuing review so that the Authority may budget and expend its funds with maximum effectiveness and efficiency. The Authority shall conduct audits of each of the Service Boards no less than every 5 years. Such audits may include management, performance, financial, and infrastructure condition audits. The Authority may conduct management, performance, financial, and infrastructure condition audits of transportation agencies that receive funds from the Authority. The Authoritv may direct

a Service Board to conduct any such audit of a transportation agency that receives funds from such Service Board, and the Service Board shall comply with such request to the extent it has the right to do so. These audits of the Service Boards or transportation agencies may be project or service specif-ic audits to evaluate their achievement of the goals and objectives of that project or service and their compliance with any applicable requirements. Certain of its reco"ifftendatior.s in th_'._s regard shall be set fo::-th in 2 public documents, the Fi,'C Year Program provided .Lor in this Section and an Annual

### Public AcL 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
Budget and P:egraFF. p:=o-:.::_ct:::d for .::_n Sec-:::._:_o:--. ~. 0". (c) The Authcrit:l ehall, ir. csnsulta-:::._:_on ~.-i-.:.h the Sen- 0 

### cc Bo::.rds, eac:-'r year p:;:-ep.:.rs 

### .:.nd, by ord.::_r.ansc, adopt, after p;..:blL::: h:::ar"r.gs held 

### _:_n each :::our.ty .:;_n the ffiCtropcli-:::.an rcgiol"'.,

::. :'ive Y:::ar P:;:-egrarr, tc L,fonR -::.he public and go·:crnmer.t o:'.:ficials of the .:".c:-:::.hcrity' s sbjec-:::..:;_vcs and i::;rogratf. for operations a::-,d capital de·oTlop.ttent duricg the forthcoming 

## :"·.zc year period. Th:: five Ye&'- Prcgraffi shall sc::. forth -:::.he standards e:: serv" se ·.;hicf'. -:::.P.e publ.:;_c rr.ay expect; 

### each Scrdc::: Beard's pla2.e .cor eso··ctin:::ting routes and sen:r_:_ee o ~he 

### ·:c.r" sus -:::.ranspor-:.ation ager.sics; the an-:::.isipa-:::.cd o:pcnss of px-c:id.::_ng p.:bl.::_e tr:::nspcr::.a-::.ioFl a-:::. s-:::.andaa-ds of scn-_:_ec thsr. existing and under alternat:.·:e operating prograffis; -::.1:.c nat:.:.re, location and cxpsnsc 

## o' r 

### an-::.icipated capit.al impro·v·emcnts exceeding $250, 000, by opec_:_fis L.ef!'

. .::.nd by :-__:_seal year; and ::;:;ch demogre:phic 2:nd ether data dc"-eloped by ple:nRing and othc::
re, atcd agcr.cies, as trw 

### .7',uthori-::.y sF.all esnsi_der p:::rtinent.. to -:::.he Serv.::_oe Boards' decisions to level_s 

### and Ptaturc including ,,,•i:..ho 0 .;;-:::. 

### , .:;_l'f,i-'.:.a::.ion the population dcnsi.t..y and grm;th, projected COR1:;"'ftorc_:_a1 and res.::_dcntial cnv" rcnfficr.-:::.al :'.:actors and the availability 

### a: alternath·e rr.sdes 

## o.c -.:.•-2:nsporta-::.ion. 

### T:1c :'ir:e Year Program shall be adopted on the aff_:_rmc.tive •:otes of 9 of the then Direc-:::.ors. 

### (Source: P.A. 83-886.)

### ( 

## Public AcL 095-0708
HB0656 Re-Enrolled
{70 ILCS 3615/2.0la new) Sec. 2.0la. Strategic Plan. LRB095 04786 DRH 24846 b

(a) By 

### the affirmative vote of at least 12 of its then Directors, the Authority shall adopt a Strategic Plan, no less than every 5 years, after consultation with the Service Boards 

### and after holding a minimum of 3 public hearings in 

### Cook Coun-cy and one public hearing in each of the other counties in the region. The Executive Director of the Authority shall review 

## the Strategic Plan on an ongoing basis and make recommendations
to the Board of the Authority with respect to anv update or amendment of the Strategic Plan. The Strategic Plan shall describe the specific actions to be taken 

### by the Authority and the Service Boards to provide adequaLe, efficient, and coordinated public transportation. (bl 

### The Strategic Plan shall identify ooals and objectives with respect to: (i) 

### increasing ridership and passenger miles on public transportation funded by the Authority; (ii) coordination of public transportat.ion services and the investment in public transportation facilities to enhance 

## the integration of 

### public transportation throughout the metropolitan region; {iii) coordination of fare and transfer policies to promote transfers by 

### riders amonq Service Boards, transportation agencies, and public transportation modes, which may include goals and objectives for development of a

### Public Act 095-0708
HB0656 Re-Enrolled

universal fare instrument LRB095 

### 04786 DRH 

### 24846 b

that riders may use interchangeably on all public transportation funded by t.he Authority, and methods to be used to allocate revenues from transfers; (iv) improvements in public transportation facilities
to bring those facilities irn:.o a state of good repair, enhancements that attract ridership and improve customer service and expansions needed to serve areas with sufficient demand for public t.ransport.ation; (vi 

### access for transit-dependent populations, including access by low-income corrununities to places of employment, utilizing analyses provided by the Chicago Metropolitan Agency for Planning regarding employment and transportation availability, and giving consideration to the location of employment centers in each county and t.he availability of public transportation at off-peak hours and on weekends; (vi) the financial viability of L.he public transportation system, including both operating and capital programs; (vii) limiting road congestion within the metropolitan region and enhancing transit options to improve mobility; and (viii) such other goals and objectives that advance the policy of the State to provide adequate, efficient, and coordinated public transportation in the metropolitan 

## (

(

### Public Act 095-0708
HB0656 Re-Enrolled
region. 

## LRB095 04786 DRH 24846 b

(c) 

### The SL.rategic Plan shall establish the process and criteria by which proposals for capital improvements by a Service Board or a transportation agency will be evaluated by the Authority for inclusion in the Five-Year Capital Program, which may include criteria for: (i) allocating funds among maintenance, enhancement, and expansion improvements; (ii) projects to be funded from the Innovation, Coordination, and Enhancement Fund; (iii) projects intended to improve 

## or enhance ridership 

## or customer service; (iv) design and 

### location of sta1:.ion 

## or transit improvements intended to promote transfers, increase ridership, and support transit-oriented land development; (v) assessing the impact of projects on the ability to operate and maintain the existing transit system; and (vi) other criteria that advance the goals and objectives of the Strategic Plan. (di 

### The Strategic Plan shall establish performance standards and measurements regarding the adequacy, efficiencv, and coordination of public transportation services in the region and the implementation of the goals and objectives in the Strategic Plan. At a minimum, such standards and measures shall include customer-related performance data measured by line, route, or sub-region, as determined by 

### the Authority, on

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

the followinq: (i) travel times and on-time performance; (ii) ridership data; (iii) equipment failure rates; (iv) employee and customer safety; and {v) customer satisfaction. The Service Boards and transportation aqencies that receive fundinq from the Authority or Service Boards shall prepare, publish, and submit to the Am:.hority such reports with regard to these sl.andards and measurements in the frequency and form reouired by the Authority; however, the frequency of such reporting shall be no less than annual, The Service Boards shall publish such reports on their respective websites. The Authority shall compile and publish such reports on iLs website. Such performance standards and measures shall not be used as the basis for disciplinary action against any employee of Lhe Authority or Service Boards, except to the extent the employment and disciplinary practices of the Authority or Service Board provide for such action. (e) The Strategic Plan shall identify innovations to improve the delivery of public transportation and the construction of 

### public transportation facilities. (f) The Strategic Plan shall describe the expected financial condition of public transportation in the metropolitan region prospectively over a 10-year period, which may include information about the cash position and all known

### I

( 

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b


### obligations of the Authority and the Service Boards includina 

### operating expenditures, debt service, contributions for payment of pension and other post-employment benefits, the expected revenues from fares, tax receipts, grants from the federal, State, and local governments for operating and capital
purposes and -issuance of debt, the availability of working 

### capital, and the resources needed to achieve the goals and oblectives described in the Strategic Plan. (g) 

### In developing the Strategic Plan, the 

### Authority shall 

## rely on such demographic and other data, forecasts, and assumptions developed by 

### the Chicago Metropolitan Agency for Planning with respect to the patterns of population density and growth, prolected commercial and residential development, and environmental factors, within the metropolitan reqion and in

areas outside the metropolitan reqion that may impact public transportation utilization in the metropolitan region. Before adopting or amending any Strategic Pl

### an, the Authoritv shall consult with r.he Chicago Metropolitan Agency for Planning regarding the consistency of the Strategic Plan with the Regionai Comprehensive Plan adopted pursuant to the Regional Planning Act. (h) The Authority may adopt, by the affirmative vote of at least 12 of its then Directors, sub-regional or corridor plans for specific geographic areas of the metropolitan region in order to improve the adequacy, efficiency, and coordination of existing, or the delivery of new, public transportation. Such

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b plans may also address areas outside the metropolitan region that may impact public transportation utilization in the metropolitan region, In preparing a sub-regional or corridor plan, Lhe Authority may identify changes in operating practices

or capital investment in the sub-region or corridor that could increase ridership, reduce costs, improve coordination, or enhance transit-oriented development. The Authority shall consult with any affected Service Boards in the preparation of any sub-regional or corridor plans. (i) If the Authority determines, by the affirmative vote of

a-c least 12 of its then Directors, that, with respect t.o any proposed new public transportation service or facilitv, (ii 

## multiple Service Boards or transportation agencies are potential service providers and (ii) the public transportation facilities to be constructed or purchased to provide that service have an expected construction cost of more than $25,000,000, the Authority shall have sole responsibility for conducting any alternatives analysis and preliminary environmental assessment required by federal or State law. Nothing in this subparagraph (i) shall prohibit a Service Board from undertaking alt.ernatives analysis and 

## preliminary environmental assessment for any public transportation service

or facility identified in items (i) and (ii) above that is included in the Five-Year Capital Program as of the effective date of this amendatory Act of the 95th General Assembly; however, any expenditure related to 

## any such public (

(

### ( 

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b transporta~ion service or facility must be included in a Five-Year Capital Program under the requirements of Sections 2.0lb and 4.02 of this Act.

(70 ILCS 3615/2.0lb new) Sec. 2. Olb. The Five-Year Capital Program. By the affirmative vote of at least 12 of its then Directors, the Authority, after consultation with the Service Boards and after holding a minimum of 3 public hearings in Cook County and one public hearinq in each of the other counties in the metropolitan region, shall each vear adopt a Five-Year Capital Program that shall include each capital improvement to be undertaken by or on behalf of a Service Board provided that the Authority finds that the improvement meets any criteria for capital improvements contained in the Strategic Plan, is not inconsistent with any sub-regional or corridor plan adopted by the Authoritv, and can be funded within amounts available with respect to the capital and operatinq costs of such improvement. In reviewing proposals for improvements to be included in a Five-Year Capital Program, the Authority may give priority to improvements that are intended to bring public transportation facilities into a state of good repair. The Five-Year Capital Program shall also identify capital improvements to be undertaken by a Service Board, a transportation aqency, or a unit of local government and funded by the Authority from
amounts in the Innovation, Coordination, and Enhancement Fund,

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

## provided that no improvement that is included in the Five-Year Capital Program as of the effective date of this amendatory Act of the 95th General Assembly may receive funding from the Innovation Coordination and 

## Enhancement Fund. Before adopting a Five-Year Capital Program, the Authority shall consult with the Chicago Metropolitan Agency for Planning regarding the consistency of the Five-Year Capital Program with the Regional Comprehensive Plan adopted pursuant to the Regional Planning Act.

(70 ILCS 3615/2.0lc new) Sec. 2.0lc. Innovation, Coordination and Enhancement Fund. (a) The Authority shall establish an Innovation, Coordination, and Enhancemenc Fund and each year deposit into the Fund the amounts directed by Section 4.03.3 of this Act. Amounts on deposit in such Fund and interest and other earnings

on those amounts may be used by the Authority, upon the affirmative vote of 12 of its then Directors and after a public participation process, for operating or capital grants

or loans to Service Boards, transportation agencies, or units of local government that advance the goals and objectives identified by the Authority in its Strategic Plan, provided that no improvement that has been included in a Five-Year Capital Program as of the effective date of this amendatory Act of the 95th General Assembly may receive any funding from the (

## Public Act 095-0708
HB0656 Re-Enrolled
Innovation, Coordination LRB095 04786 DRH 24846 b



## and Enhancement Fund. Unless the Board has determined by a vote of 12 of its then Directors that

an emergency exists requiring the use of some or all of the funds then in the Innovation, Coordination, and Enhancement Fund, such funds may only be used to enhance the coordination and integration of public transportation and develop and implement innovations to improve the quality and delivery of public transportaLion. (b) Any grantee that receives funds from the Innovation, Coordination, and Enhancement Fund for the operation of eligible programs must (ii implement such programs within one 

## year of receipt of such funds and (ii) within 2 vears following
cormnencement of any program utilizing such funds, determine whether it is desirable to continue the prooram, and upon such

a determination, either -incorporate such program into its annual operating budget and capital program or discontinue such program. No additional funds from the Innovation, Coordination, and Enhancement Fund may be distributed to a grantee for any individual program beyond 2 years unless the Authority by the affirmative vote of at least 12 of its then Directors waives this limitation. Any such waiver will be with regard to an individual program and with regard to a one year-period, and any further waivers for such individual program require a subsequent vote of the Board.

(70 ILCS 3615/2.0ld new)

### Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b

Sec. 2.0ld. ADA Para~ransit Fund. The Authority shall establish an ADA Paratransit Fund and, each year, deposit in~o that Fund the amounts directed bv Section 4.03.3 of r.his Acr. and 

### any funds received from the State pursuant to appropriations for the purpose of funding ADA paratransir services. The amounts on deposit in the Fund and interest and other earnings on those amounts shall be used by the Authority
to make grants to the Suburban Bus Board for ADA paratransit services provided pursuant to plans approved by the AuthoriT.y under Section 2. 30 of this Act. Funds received by the Suburban Bus Board from the"' Authority's ADA Paratransit Fund shall be used only to provide ADA paratransit services to individuals who are deT.ermined to be eligible for such services by the Authority under the Americans with Disabilities Act of 1990 and its implementing regulations. Revenues from and costs of services provided by the Suburban Bus Board with grants made under this Section shall be included in the Annual Budget and Two-Year Financial Program of the Suburban Bus Board and shall be subject to all budgetary and financial requirements under this Act that applv to ADA paratransit services. Beginning in 2008, the Executive Director shall, no later than August 15 of each year, provide to the Board a written determination of the projected annual costs of ADA paratransit services that are required to be provided pursuant to the Americans with Disabilities Act of 1990 

### and its implementing regulations. The Authority shall conduct triennial financial, compliance, and (

(

### ( 

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
performance audits of ADA paratransit services to assist in this determination.

(70 ILCS 3615/2.Jle new) Sec. 2.0le. Suburban Community Mobility Fund. The AU'r.hority shall establish a Suburban Community Mobility Fund and 1 

### each year, deposit into that Fund the amounts directed bv 

### Section 4.03.3 of this Act. The amount.son deposit in the Fund and interest and other earnings on those amounts shall be used by the Authority to make grants to the Suburban Bus Board for the purpose of operating transit services, other than traditional fixed-route services, t.hat enhance suburban mobility, includinq 1 

### but not limited to, demand-responsive transit services, ride sharing, van pooling, service coordination, centralized dispatching and call taking, reverse commuting, service restructuring, and bus rapid transit. Revenues from and costs of services provided by the Suburban Bus Board with moneys from the Suburban Community Mobility Fund shall be included in the Annual Budget and Two-Year Financial Program of the Suburban Bus Board and shall be subject t.o 

### all budgetary and financial requirements under this Act.

(70 ILCS 3615/2.04) (from Ch. 111 2/3, par. 702.04) Sec. 2.04. Fares and Nature 

## of Service. 

# fil Whenever 

### a Service Board provides any public transportation by operating public transportation facilities,

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

the Service Board shall provide for the level and nature of fares or charges to be made for such services, and the nature and standards of public transportation to be so provided .::hat
meet the goals and objectives adopted by the Authori.::y in the Strategic Plan. Provided, however that if the Board adopts a budget and financial plan for a Service Board in accordance with the provisions in Section 4.11 (b) (5), the Board may consistent with the terms of any purchase of service contract provide for the level and naLure of fares to be made for such services under the jurisdiction of that Service Board, and the
nature and standards of public transportaLion to be so provided. 

# ill Whenever a 

## Service Board provides any 

## public transportation pursuant to grants made after June 30, 1975, to transportation agencies for operating expenses (other than with regard purchase of to experimental programs) or pursuant service agreement, the purchase of to any service agreement or grant contrac.:: shall provide for the level and
nature of fares or charges to be made for such services, and t.he nature and standards of public transportation to be so provided. A Service Board shall require all transportation agencies with which it contracts, or from which it purchases cransportation services or to which it makes grants to provide half fare transportation for their student riders if any of such agencies provide for half fare transportation to their student riders. (

### ( 

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

## l£l In so providing for the fares or charges and the nature and standards of public transportation, any purchase of service agreements or grant contracts shall provide, among other matters, for the terms or cost of transfers or interconnections between different modes of transportation and different public transportation agencies, schedules or routes of such service, changes which may be made in such service, the nature and condition of the facilities used in providing service, the

manner of collection and disposition of fares or charges, the records and reports to be kept and made concerning such service, -a-R-Et 

### for interchangeable tickets or other coordinated

or uniform methods of collection of charges, and shall further require that the transportation agency comply with any determination made bv the Board of the Authority under and subject to the provisions of Section 2 .12b of this Act. In regard to any such service, the Authority and the Service Boards shall give attention to and may undertake programs to promote use of public Lransportation and to provide coordinated ticket sales and passenger information. In the case of a grant
to a t.ransportation agency which remains subject to Illinois Commerce Commission supervision and regulation, the Service Boards shall exercise the powers set forth in this Section in a

manner consistent with such supervision and regulation by the Illinois Commerce Corrunission. (Source: P.A. 83-886.)

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
(70 ILCS 3615/2.05) (from Ch. 111 2/3, par. 702.05) Sec. 2.05. Centralized Services; Acquisition and Construction. (a) The Authority may at the request of two or more Service Boards, serve, or designate a Service Board to serve, as a centralized purchasing agent for the Service Boards so requesting. (b) The Authoriry may at the request of 1:.wo or more Service Boards perform other centralized services such information and transfers between services as ridership under the jurisdiction of the Service Boards where such centralized services financially benefit the region as a whole. Provided, however, that the Board may require transfers only upon an affirmative vote of 

# 11.**~** 

## of its then Directors. (c) A Service Board or the Authority may for the benefit of

a Service Board, to meet its purposes, construct or acquire any public transportation facility for use by a Service Board or for use by any transportation agency and may acquire any such facilities from any transportation agency, including also Nithout limitation any reserve funds, employees' pension or retirement funds, special funds, franchises, licenses, patents, permits and papers, documents and records of the agency. In connection with any such acquisition from a transportation agency the Authority may assume obligations of the transportation agency with regard to such facilities or property or public transportation operations of such agency. (

(

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

In connection with any construction or acquisition, the Authority shall make relocation payments as may be required by federal law or by the requirements of any federal agency authorized to administer any federal program of aid. (d) The Authority shall, after consuh:.ing with the Service Boards, develop regionally coordinated and consolidated sales, marketing, advertising, and public information programs that promote the use and coordinaL.ion of, and transfers among, public transportation services in the metropolitan region. The Authority shall develop and adopt, with the affirmative vote of
at least 12 of its then Directors, rules and regulations for the Authoritv and the Service Boards regarding such programs to

ensure that the Service Boards' independent programs conform with the Authority's regional programs. (Source: P.A. 83-886.)

(70 ILCS 3615/2.09) (from Ch. 111 2/3, par. 702,09) Sec. 2.09. Research and Development. 

## JiU. The Authority and the Service Boards shall study public transportation experimentation problems and in developing technology, financing methods, developments; encourage

new public transportation and management procedures; conduct, in cooperation with other public and private agencies, studies and demonstration and development projects to test and develop methods for improving public transportation, for reducing its costs to users or for increasing public use; and

### Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 

### 24846 b


### conduct, sponsor, and participate in other studies and experiments, which may include fare demonstration programs, useful to achieving the purposes of this Act. The cost for any such item authorized by this Section may be exempt.ed by the Board in a budget ordinance from the "costs" included in determining that the Authority and its service boards meet the farebox recovery ratio or system generated revenues recovery ratio requirements of Sect.ions 3A.10, 3B.10, 4.0l(b), 4.09 and 4.11 of this Act and Section 34 of the Metropolitan Transit Authority Act during the Authority's fiscal year which begins January 1, 1986 and ends December 31,
cost of any item authorized herein 1986, provided that the
must be specifically approved within the budget adopted pursuant to Sections 4. 01 and 4.11 of T.his Act for that fiscal year. (b) To improve public transportation service in areas of the met.ropolitan region with limited access to commuter rail service the Authori tv and the Suburban Bus Div-i sion shal 1 

### evaluate the feasibility of implementing new bus rapid transit services using t.he expressway and tollway systems in the metropolitan region. The Illinois Department of Transportation and the Illinois Toll Highway Authority shall work cooperatively with the Authorit.y and the Suburban Bus Division in that evaluation and in the implementation of bus rapid transit services. The Authoritv and the Suburban Bus Division in cooperation with the Illinois Department of Transportation, shall develop a bus rapid transit demonstration project on (

## ( Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

Interstate 55 located in 

## Will, DuPage, and Cook Counties. This demonstration project shall test and refine approaches to bus rapid transit operations in the expressway or tollway shoulder

or regular travel lanes and shall investigate technology options that facilitate the shared use of the transit lane and provide revenue for financing construction and operation of public transportation facilities. (c) The Suburban Bus Division and the Authority shall cooperate in the development, funding, and operation of programs to enhance access to lob markets for residents in south suburban Cook County. Beginning in 2008, the Authority shall allocate to the Suburban Bus Division an amount not less than $3,750,000, and beginning in 2009 an amount not less than $7,500,000 annually for the costs of such programs. (Source: P.A. 84-939.)

(70 ILCS 3615/2.12) (from Ch. 111 2/3, par. 702.12) Sec. 2.12. Coordination with Planning Agencies. The Authority and the Service Boards shall cooperate with the various public agencies charged with responsibility for long-range or comprehensive planning for the metropolitan region. The Authority shall utilize the official forecasts and plans of the Chicago Metropolitan Agency for Planning in developing the Strategic Plan and the Five-Year Capital Program. The Authority and the Service Boards shall, prior to the adoption of any Strategic Plan, as provided in Section

### Public Act 

## 095-0708
HB0656 Re-Enrolled 1RB095 04786 DRH 24846 b

2. 

### Ola of t.his Act, or the adoption of any Five-Year Capital Program, as provided in 

## paragraph (b) of Section 2.0lb -2--.-&± 

### of t.his Act, submit its proposals to such agencies for review and
comment. The Authority and the Service Boards may make use of existing studies, surveys, plans, data and other materials in the possession of any State agency or department, any planning agency or any unit of local government. (Source: P.A. 83-886.)



## (70 ILCS 3615/2.12b new) Sec. 2 .12b. 

### Coordination of Fares and Service. Upon t.he request of a Service Board the Executive Director of the Authority may, upon the affirmative vote of 9 

### of the then Directors of the Authority, intervene in any matter involving (i} 

### a dispute between Service Boards or a Service Board and a 

### transportation agency providing service on behalf of a 

### Service Board with respect to the terms of transfer between and the allocation of revenues from fares and 

### charges for, transpon.ation services provided by the parties or (ii) a dispute between 2 Service Boards with respect to coordination of service, route duplication, or a change in service. Any Service Board or transportation agency involved in such dispute shall meet with the Executive Director, cooperate in good faith
to attempt to resolve the disputer and provide any books, records, and other information requested by the Executive Director. If the Executive Director is unable to mediat:e a (

### 635 

## CHAPTER 111'/a-PUBL!C UTILITIES 

## 111%**~** 

## 704.03

enforcement unless such Department agrees with the Authority t.o undertake such collection and enforcement. 

### As used in this paragraph, the term "parking facility" means a parking area or structure having parking spaces for morethan 2vehicles a(which motor vehicles arepermitted to park in return for an hourly, daily, or otherperiodicfee, whether publicly or privately owned, but does notinelude parking spaces. on a public street, the use of which is regulated by parking meters.

(e) The Board may impose a Regional Transportation Authority Retailers' Occupation Tax upon all persons en- gaged in the business of selling tangiblepersonal property atretail in the metropolitan region at a rate notto exceed 

### 1% of the gross receipts from 

### such sales made in the course ofsuchbusiness within the County ofCook and 1/,% ofthe grossreceipts from such sales made in thecourse of suchbusiness within the Counties ofDuPage, Kane, Lake, McHenry and Will. The t.ax imposed pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The Department shall have full power to administer and enforce this Section; to collect all t.axes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda arising on accowtt of the enoneous payment oft.ax orpenalty hereunder. In the administration of, and "Omplianee with, this Section, the Department and persons ( 10 are subjectto this Section shall have the same rights, .~medies, privileges, immunities, powers and duties, and be subject to the-same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions ofterms, and employ the same modes of procedure, as are prescribed in Sections 1, la, le, 24(in_respect

### to allprovisions therein other than the State rate of tax and shall include exemptions (f) and (g) and the exemptions offarm machinery and equipment, distillation machinery and equipment, and graphic art.s machinery and equipment unless the corporate authorities provide otherwise by resolution), 2c, 35 (except as to the disposition of taxes and penalties collected and except for the provision allowing ret.ailerS a deduction from the tax to cover certain costs), 4, 5, 5a, 5b, Sc, 5d, 5e, 5f, 5g, Sh, 5i, 5j, 6s (exceptthatcreditmemoran

### da issued hereunder may not be used to discharge any Statetaxliability), 6a, 6b, 6c, 

### 7, 8, 9, 10, 

### 11, 12, 13 and 131 h of the "Retailers' Occupation Tax Act", as now orhereaf· ter amended,7 as fully as if provisions contained in those Sections ofthe "Retailers' Occupation Tax Act" were set forth herein.

Persons subject to any tax imposed pursuant 

### to the authority granted in this Section may reimburse themselves for their seller's tax liability hereunderby separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with St.ate taxes which sellers are required 

### to collect under the "UseTax Act",8 and with any taxes for which sellers may be liable under the "Municipal Retailers' Occupation Tax Act", or the ''County Retailers' Occupation Tax Act'',9 pursuant 

### to such bracket schedules as the Department may prescribe.

Whenever the Department determines that a refund ~houldbemade under this Section 

### t.o a claimant instead of

1suing a creditmemorandum, the Departmentshall notify the State Comptroller, who shall cause the warrant

### t.o be drawn for the amount specified, and 

### t.o theperson named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the Regional Transportation Authoritytaxfund establishedpursuant to paragraph (n) ofthis Section.

For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale, by a producer ofcoal or othermineral mined iiiIllinois, is a sale atretail atthe placewhere the coal orother mineralmined in Illinois is extracted from the earth. This paragraph does notapply to coal or othermineral when itis delivered or shippedby the seller to the purchaser at a pointoutside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce.

Nothing in this Section shall be construed 

### t.o authorize the Regional Transportation Authority to impose a tax upon the privilege of engaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State.

(f) The Board of the Authority may impose a tax upon all persons engaged, in the metropolitan region, in the business ofmaking sales of service, who, as anincident to making such sales of service, transfer tangible personal property within the metropolitan region, either in the form oftangible personal property or in the form ofreal estate as anincident to a sale of service. The taxrate shall not exceed 1% of the cost price of tangiO\e personal property so transferred within the County of Cook and 114% of the cost price of tangible personal property so transferred within the Counties ofDuPage, Kane, Lake, McHenry and Will. The t.ax imposed pursuantto this paragraph and all civil penalties thatmay be assessed as an incident thereof shall be collected and enforcedby the StateDepartment of Revenue. The Departmentshall have full powertoadminister and enforce this paragraph; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the erroneous payment oftax orpenalty hereunder. In the administration of, and compliance with, this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject 

### t.o the same conditions, restrictions, limitations, penalties, exclusions, exemptions and de:ftnitions 

### of terms, and em- ploy the same modes of procedure, as are prescribed in Sections 210 (except that the reference 

### t.o State in the definition of supplier maintaining a place of business in this St.ate shall mean the Authority), 2a, 3 11 (in respect to all provisions therein other than the Staterate oftax and shall include exemptions (d-2) and (d-3) and the exemptions of farm machinery and equipment, distillation machinery and equipment, and graphic arts machinery and equipment unless the corporate authorities provide otherwise by resolution), 4 12 (except that the reference to the State shall be to the Authority), 5, 7, 8la (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the Authority), 914 (except as to the disposition oftaxes and penalties collected, and except for the provision allowing suppliers a deduction from the tax to cover certain costs, and except thatthe returned merchandise credit for this tax may not be taken against any State t.ax), 10, 11, 12 15 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act),16 13 17 (except that any reference to the St.ate shall mean the Authority), the first paragraph of Section 15, 151/2, 16, 17 18 (except that credit memoranda issued hereunder may notbe used to discharge any State tax liability), 18, 19 and 20 ofthe "Service Occupation Tax(



# (

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## 111'/,**~** 

## 704.03 CHAPTER 111%-PUBLIC UTILITIES 636 Act", as now or hereafter amended,rn as fully as 

### ifprovisions contained in those Sections of the ''Service Occupa· tion Tax Act" 20 were set forth herein.

Persons subject to any tax imposed pursuant to the authority granted in this paragraph may reimburse them

### selves for their serviceman's ta.x liability hereunder by separately stating such tax as an additional charge, which charge may be statedin combination, in a single amount, with State tax which servicemen are authorized to collect under the "Service UseTaxAct'',21 and any tax for which servicemen may be liable under the "Municipal Service Occupation Tax Act",22 or "County Service Occupation Tax Act",23 pursuant to such bracket schedules as the Departmentmay prescribe.

Whenever the Department determines that a refund shouldbemadeunder thls paragraphto a claimantinstead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid 

### by the State Treasurer out of the Regional Transportation Authority tax fund established pursuant 

### to paragraph (n) of this Section.

Nothing in this paragraph shall 

### be construed to authorize the Authority to impose a t.aJC upon the privllege of engaging in any business which under the Constitution of the United Statesmay notbe madethe subjectoftaJCation by the State.

(g) The Board of the Authority may impose a tax upon theprivilege ofusing, in the metropolit.an region, any item of tangllile personal property which is purchased outside the metropolitanregion atretailfrom a retailer, andwhich is titled or registered with an agency of this State's government, at a rate notto exceed 1% ofthe sellingprice of such tangible personal property with the County of Cook, as "selling price" is defined in the "Use Tax Act'', approvedJuly 14, 1955, as now orhereafter amended, and not to exceed 1 /l% of the selling price of such tangible personal property within the Counties of DuPage, Kane, Lake, McHenry and Will, as "selling price" is defined in the "Use Tax Act", approved July 14, 1955, as now or hereafter amended. Such tax shall be collected from persons whose Illinois address for titling or registration purposes is given as being in the metropolitan region. Such tax shall be collected by the DepartmentofRevenue forthe RegionalTransportation Authority. Suchtaxmust be paid to the State, or an exemption determination must be obtained from the Department of Revenue, before the title or certificate of registration for the property may be issued. The taxor proof ofexemptionmay betransmitted to the Departmentby way oftheState agencywithwhich, or the State officer with whom, the tangible personal property must be titled or registered if the Department and such State agency or State officer determine that this procedure will expedite the processing of applications for title orregistration.

The Department shallhave full power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose of ta."{es, penalties and interest so collected in the manner hereinafter provided; andto determine all rightstocreditmemorandaorrefunds arising on accountofthe erroneous paymentoftax, penalty or interest hereunder. In the administration of, and compliance with, this paragraph, the.Department and persons who are subject 

### to this paragraph shall·have the same rights, remedies, privileges, immunities, powers and duties, and be subjectto the same conditions, restrictions limitations, penalties, e:Xclusions, exemptions and defiru'. tions of terms and employ the same modes ofprocedure as are prescribed in Sections 224 (except the paragraph concerning the conveying 

### of news, and except the definition of "retailer maint.aining a place of business in this St.ate"), 325 (eJCcept provisions pertaining to the Staterate of t.ax, and except provisions concerning collection or refunding of the tax by retailers, and except the provision concerning building materials and fixtures and shall include the inapplicability of the tax to certain t.angible personal property of common carrierby rail as provided in paragraph (g) and the eJCemptions of farm machinery and equipment, distillation machinery and equipment, and graphic arts machinery and equipment unless the corporate authorities provide otherwise by resolution), 4, 11 12 12a, 14, 15, 19 26 (except the portions pertaining to c\;i~ by retailers and except the last paragraph concerning refunds), 20, 21 and 22 2 7 (except that credit memoranda issued hereunder may not be used to discharge any State tax liability) of the "Use Ta."< Act", as now or hereafter amended, which are not inconsistent with this paragraph, as fully as if provisions cont.ained in those Sections ofthe "Use Tax Act" were set forth herein.

Whenever the Department determines that a refund should be made underthis paragraphto a claimantinstead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the Regional Transportation Authority tax fund established pursuant to paragraph (n) of this Section.

(h) The Authority may impose a replacementvehicle tax of$50 on anypassengercar, as defined in Section 1-157 of The Illinois Vehicle Code,28 purchasedwithin the metropolit.an region by or on behalf of an insurance company to replace a passengercarof aninsured personin settlement of a total loss claim. The tax so imposed may notbecome effective before the first day of the month following the passage ofthe ordinance imposing such taxand receiptof a certified copy of such ordinance by the Department of Revenue. The Department of Revenue shall collect such tax for the Authority 

### in accordance with Sections 3--2002 and 3--2003 ofThe Illinois Vehicle Code.29

The Department shall forthwith pay over to the St.ate Treasurer, e:,; officio, as trustee, alltaxes collectedhereunder. On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to the Authority. The amount to be paid to the Authority shall be the amount collected hereunder during the second preceding calendar month by the Department, less 2% of such balance, which sum shall be retained by the State Treasurer 

### to cover the costs incurred by the Department in administering and enforcing this Section as provided herein. The Department at the time of each monthly disbursement to the Authority shall prepare and certify to the Comptroller the amount, so retained by the State Treasurer, to be paid into the General Revenue Fund of the St.ate Treasury less any amount determined by the Department 

### to be necessary for the payment of refunds. Within 10 days after receipt, by the Comptroller, of the disbursement certification to the Authority and the General Revenue Fund, provided for in this Section tobe given 

### to the Comptroller by the Department, the Comptroller 

### !

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## CHAPTER 111%-PUBLIC UTILITIES 

## 1112/s**~** 

## 704.03

shall cause the orders to be drawn for the respective amount.s in accordance ,vith the directions contained in such certification.

(i) The Board may notimpose any othert.axes except as it may from time to time 

### be authorized by law to impose.

(j) A certificate of registration issued by the State Department of Revenue to a retailer under the "Retailers' Occupation Tax Act", as now or hereafter amended, or under the "Service Occupation TaxAct", as now orhereafter amended, shall permit the registrant to engage in a business whiehis t.axed under the tax imposed pursuantto paragraphs (b), (e), (f) or (g) of this Section and no additional registration shall be required under such tax. A certificate issued pursuant to the "Use Tax Act", as now or hereafter amended, or the "Service Use Tax Act", as now or hereafter amended, shallbe applicable with regard to any tax imposed pursuant to paragraph (c) of this Section.

(k) The provisions of any tax imposed pursuantto paragraph (c) of this Section shall conform, as closely as may be practicable, to the provisions of the "Use Tax Act", as now or hereafter amended, including without limitation, conformity as to penalties with respect to the tax imposed and as to the powers ofthe State Department ofRevenue to promulgate and enforce rules and regulations relating to the administration and enforcementoftheprovisions of the tax imposed. Such taxes shall be imposed onlyon use within the metropolitan region and atrates as provided in such paragraph.

(l) The Board, i11 imposing any tax, as provided in paragraphs (b) and (c) of this Section, shall, after seeking the advice of the State Department of Revenue, provide means for retailers, users or purchasers ofmotor fuel for purposes other thanthose with regardto which suchtaxes may be imposed as provided in such paragraphs to receive refunds oftaxes improperlypaid, which provisions may be atvariance with the refund provisions as applicable under the "Municipal Retailers Occupation Ta.,: Act", as now or hereafter amended. The State Department of Revenue may provide for certificates of registration for users or purchasers of motor fuel for purposes other than those with regard to which taxes may be imposed as provided in paragraphs (b) and (c) of this Section 

### to facilitate the reporting and nontaxability of such exempt sales or uses.

(m) Any ordinance imposing any tax under 

### this Section oreffecting achange in therate thereofshall be effective on the first day ofthe calendar month next following the publication of such ordinance in a newspaper of general circulation in the metropolitan region and the filing of a certified copy of such ordinance with the State Department of Revenue, whereupon the Department ofRevenue shall proceed to administer and enforce this Section on behalfofthe Regional Transportation Authority as ofthe effective date ofthe ordinance orresolution.

{n) The State Department of Revenue shall, upon collecting any taxes as provided in this Section, pay such taxes over 

### to the State Treasurer as trustee for the Authority. Such taxes shall be held in a trust fund outside the St.ate Treasury. On or before the 25th day of each calendar month, the State Department 

### of Revenue shall prepare and certify to the Comptrollerofthe Stateof Illinois the amounttobe paid to the Authority, which shall be the then balance in said fund, less any amount determined by the Departmentto be necessary for the payment of refunds. The State Department of Revenue shall also certify to the Authority the amount of taxes collected in each County other than Cook County 

### in the metropolitan region less the amount necessary for the payment of refunds to taxpayers in such County. With regard to the County of Cook, the certification shall specify the amount of ta::,:es collected within the City of Chicago less the amount necessary for the payment of refunds 

### to taxpayers in the City ofChicago and the amount collected in that portion ofCook Countyoutside ofChicago less the amount necessary for the paymentofrefunds 

### to taxpayers in that portion of Cook County outside of Chicago. Within 10 days afterreceipt by the Comptroller of such certification ofthe amountto bepaid 

### to the Authority, the Comptroller shall cause an order to be drawn for such payment for such amount in accordance with the direction in such certification.

(o) Fa11ure to adopt a budget ordinance or otherwise to comply with Section 4.01 of this Act

### so or to a<lopt a Five-year Program or otherwise

### to comply with paragraph (b) ofSection2.01 ofthis Act31 shall notaffectthevalidity of anytaximposed by the Authority otherwiseinconformity with law.

(p) Atno time shalla public transportation tax or motor vehicle parking tax authorized under paragraphs (b), (c) and(d) ofthis Sectionbein effect atthe same

### time as any retailers' occupation, use or service occupation tax authorized under paragraphs (e), (fl and (g) ofthis Section is 

### in effect.

lilly taxes imposed under the aut.\;ority provided in paragraphs (b), (c) and (d) shall remainin effect only until such time as any tax authorized by paragraphs (e), (f) or (g) of this Section are imposed and becomes effective. Once any tax authorized by paragraphs (e), {fl or (g) is imposed the Board may not reimpose taxes 

### as authorized 

### in paragraphs (b), (c) and (d) ofthe Sectionunless any such tax authorized byparagraphs (e), (f) or (g) of this Section becomes ineffective by means other than an ordinance of the Board.

(q) Any existing rights, remedies and obligations (including enforcement by the Regional Transportation Au· thority) arising under any ta:,: imposed under paragraphs (b), (c) or (d) of this Section shall not be affected by the imposition of a tax under paragraphs {e), 

### (fl or (g) of this Section. Amended by P.A. 83-1353, § 

### 5, eff. Sept. 8, 1984; P.A. 83-1362, Art. II,§ 127, eff. Sept. 11, 1984.

1Chapter 120, U417 etseq. 2Chapter 24, 

## n s-11-1. 3Chapter 120, U440 et seq, 4Chapter 120, UU440, 440a, 440c, 441. 5Chapter 120, 

### n 441e, 442. 6Chapter 120, U~443 to 444j, 445. 7Chapter 120, UU 445a to 450, 451, 452, 452'h. 8Chapter 120, U489.l et seq. 9Chapter 34, U 409.1. JDChapter 120, U 439.102. 11 Chapter 120, UU 439.102a, 439.103. 12Chapter 120,**~** 439.104. 13 Chapter 120, UU 439.106, 489.107, 439.108. 14Chapter 120, t 439.109. 15Chapter 120, 

### n 439.110 to 439.112. 16Chapter 120, U44lb. 17 Chapter 120, U 439.113. 1s Chapter 120, rn439.115 to 439.117, lSChapter 120, UU 439.118 to 439.120.

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## 704.03 CHAPTER 111%-PUBLIC UTILITIES 638
20Chapter 120, U 439.101 et seq. 21 Chapter 120, fl 439.31 et seq. 22Chapter 24, fl 8-11-5. 2:J Chapter 34, fl 409.2. 24 Chapter 120,**~** 439.2. 25Cha.pt.et 120, fl 439.3. 26 Chapter 120, fffl 439.4, 439.11 to 489.lZa, 439.14, 439.15, 439.19. 2'! Chapter 120, flfl 439.20 to 439.22. 28 Chapter 951 /i, fl 1-157, 29Chapter 95'h, f!U 8-2002 and 8-2003. 30Paragraph 704.01 of this chapter. 31 Paragraph 702.01 of this chapter. Bolh P.A. 83---1353, which rewrote the first paragraph of subd. (h), and P.A. 83---1362, Art. 11, the First 83rd General Combining R.evisory Act, incorporatedthe amendments by P.A. 83-114 and P.A. 83---886; in the second paragraph ofsubd. h, substituted "theAuthority" for "each municipality"; and made nonsubstantive changes. 704.03.1. Automobile renting occupation and use tax

§ 4.03.1. (a) The Board may impose a tax upon all persons engaged in thebusiness ofrenting automobiles in the metropolitan regiun atthe rateuf not to e."l:ceed 1% of the grossreceipts from such business within Cook County and not to exceed 

### l/4% of the gross receipts from such business within the Counties of DuPage, Kane, Lake, McHenry and Will. The tax imposed pursuant 

### to this paragraph and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department ofRevenue. The certificate ofregistration which is issued by the Department

### to a retailer under the "Retailers' Occupation Tax Act", approved June 28, 1933, as amended,l or under the "Automobile Renting Occupation and Use Tax Act", enacted by the Eighty-Second General Assembly,2 shall permit such person to engage in abusiness which 

### is taxable underany ordinanceor resolution enacted pursuant to this paragraph without registering separately with the Department under such ordinance or resolution or under this paragraph. The Department shall have full power to administer and enforce this paragraph; 

### to collectall taxes and penalties due hereunder; to dispose oftaxes andpenalties so collectedin the manner herBinafter provided, and 

### to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder. 

### In the administrationof, andcompliance with, thisparagraph,the Department and persons who are subject to this paragraph shall have the same right.s, remedies, privileges, immunities, powers and duties, and be subjectto the same conditions, restrictions, limit.ations, penalties and definitions ofterms, and employ the same modes ofprocedUI'e, as are prescribed in Sections 2 and 33 (in respect 

### to all provisions therein other than the State rate of 

### t.ax.; and with relation 

### to the provisions of the "Retailers' Occupation Tax" referred to therein, except as to the disposition of taxes and penalties collected, and except for the provision allowing retailers a deduction from the tax cover certain cost.s, and except that credit memoranda issued hereunder may not be used 

### to discharge any State tax liability) of the "Automobile Renting Occupation and Use Tax Act", enacted by the Eighty-Second General Assem· bly, asthe same are now or may hereafterbe amended, as fully as if provisions contained in those Sections of said Act were set forth herein. Persons subject to any tax imposed pursuant 

### to the authority granted in this paragraph may reimburse themselves for their t.ax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required

### to collect under the "Automobile Renting Occupation and Use Tax Act" pursuant 

### to such bracket schedules as the Department may prescribe. Nothing in this paragraph shall be construed to authorize the Authority 

### to impooe a t.ax upon the privilege of engaging in any business which under the constitution of the United States may not be made 

### the subject of taxation by this St.ate.

(b} The Board may impose a t.ax upon the privilege of using, in the metzopolitan region an automobile which is rented from a renter outside Illinois, and which is titled or registered with an agency ofthis State's government, at a rate not to e:,i:ceed l7a 

### oi the rentalprice ofsuch automobile within the County of Cook, and not to exceed 

### %% of the rental price within the counties of DuPage, Kane Lake, McHenry andWill. Suchtax shall be collectedfro~ persons whose Illinois address for titling or registration purposes is given as being in the metropolitan region. Such tax shall becollected by the Department ofRevenue forthe RegionalTransportationAuthority. Such taxmust be paid to the State, or an exemption determination must be obtained from the Department ofRevenue, before the title or certificate ofregistration for the property may be issued. The t.ax orproofofexemption may be transmitted 

### to theDepartmentby way ofthe State agencywith which orStateofficer ·with whom, thetangiblepersonalproperty must be titled or registered if the Department and such agency or State officer determine that this procedure will expedite theprocessing of applications fortitle orregistt-ation. The Department shall have full powerto administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; 

### to dispose oftaxes, penalties and interest so collected in themanner hereinafter provided, and to determine all rights to credit memoranda or refunds arising on account of the erroneous payment of tax, penalty Or interest hereunder. In the administration of, and compliance with, this paragraph, the Department and persons who are subject 

### to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes ofprocedure, as areprescribed in Sections 2 and 44 (except provisions pertaining 

### to the Staterate oftax; andwith relation 

### to the provisionsofthe "UseTax Act" referred to therein, except provisions con- cerrrlng collection orrefunding ofthe taxby retailers, and except the provisions of Section 19 5pertaining to claims by ret.ai!ers and except the last paragraph concerning refunds, and exceptthat creditmemoranda issued hereunder may notbe used to discharge any Statetaxliability) of the "Automobile Renting Occupation and Use Tax Act", enacted by the Eighty-Second General Assembly, as the same are now ormay hereafterbe amended, which are not inconsistent with this paragraph, as fully as if provisions contained in those Sections of said Act were set forth herein.

(c} Whenever the Department determines that a refund should be made underthis Section to a claimant insteadof issuing a creditmemorandum, the Department shall notify the St.ate Comptroller, who shall cause the order to be drawn for the amount specified, and 

### to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the Regional Transportation Authority tax fund created pursuant 

### to Section 4.03 of this Act.S

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## CHAPTER 111%-PUBLIC UTILITIES 

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# % U 704.04
(d) The Department shall forthwith pay over to the State Treasurer, ex-officio, as trustee, 

### all taxes, penalties and interest collected underthis Section. On or before the 25th day of each calendar month, the Department shall prepare and certify

### tothe State Comptrollerthe amount

### to be paid to the Authority. The StateDepartment ofRevenue shall also certify 

### to theAuthority the amount oftaxes 

### collected in each County other than Cook County in the metropolit.an region less the amount necessary for the payment of refunds 

### to taxpayers in sucl:t County. With regard 

### to the County of Cook, the certification shall specifythe amountoftaxes collectedwithinthe CityofChicago 

### less the amount necessary for the payment of refunds 

### to taxpayers in the City ofChicago and the amount collected in thatportion ofCook County outside of Chicago less the amount necessary for the payment of refunds to taxpayers 

### in that portion of Cook County outside of Chicago. The amount to be paid to the Authority shall be the amount {notincluding creditmemoranda) collected hereunder during the second preceding calendar month by the Department, and not including an amount equal 

### to the amount of refunds made during the second preceding calendar month by the Department on behalf of the Authority. Within 10 days afterreceipt, by the State Comptroller, of the disbursement certification to the Authority, the State Comptroller shall cause the orders to be drawn ;n accordance with the directions contained in such certifiation.

(e) An ordinance imposing a taxhereunder or effecting a change in the rate thereof shall be effective on the first day of the calendar month next following the month in which such ordinance is passed. The Board shall transmit to the Department ofRevenue on ornot laterthan 5 days after passage of the ordinance a certified copy of the ordinance imposing such 

### t.ax whereupon the Department of Revenue shall proceed to administer and enforce this Section on behalfofthe Authority as ofthe effective date of the ordinance. Upon a change in rate of a t.ax levied hereunder, or upon the discontinuance of the tax, the Board shall, on or not later than 5 days after passage of the ordinance discontinuing the t.ax or effecting a change in rate, transmitto the DepartmentofRevenue a certified copy of the ordinance effecting such change or discontinuance. Amended byP.A. 83-886, § 1, eff. Nov. 9, 1983.

I Chapter 120, ff440 et seq. 2Chapter 120, f 1701 et seq. 3Chspter 120, n 1702 and 1703. 4Chapter 120, ~TI 1702 and 1704. 5Chapter 120, U 439.19. 6Paragraph 704.03 ofthis chapter. 704.04. Issuance and pledge ofbonds and notes

§ 4.04. Issuance and Pledge of Bonds and Notes. {a) The Authority shall have the continuing power to borrow money and to issue its negotiable bonds or notes as provided in this Section. Unless otherwise indicated in this Section, the term "notes" also includes bond anticipation notes, which are notes which by their terms provide for their payment from the proceeds of bonds thereafter to be issued. Bonds or notes of the Authority may be .ssued for any or all of the following purposes: to pay costs to the Authority or a Service Board of constructing or acquiring any public transportation facilities {including funds and rights relating thereto, as provided in Section 2.05 ofthis Act);l to repay advances 

### to the Authority or a Service Board made for such purposes; to pay other expenses oftheAuthorityor a Service Boardincidentto or incurred in connection with such construction or acquisition; to provide funds for any transportation agency to pay principal of orinterestorredemption premium on any bonds or notes, whether as such amounts become due or by earlier redemption, issued prior 

### to the date of this amendatory Act by such transportation agency 

### to construct or acquire public transportation facilities orto provide funds to purchase such bonds or notes; and 

### to provide funds for any transportation agency 

### to construct or acquire any public transportation facilities, to repay advances made for such purposes, and to pay other expenses incident to or incurred in connection with such construction or acquisition; and 

### to provide funds for payment of obligations, including the funding of reserves, under any self-insurance plan or joint self-insurance pool or entity. In addition 

### to any otherborrowing as may be authorized by this Section, the Authority may issue its notes, from time to time, 

### in anticipation of

### t.ax receipts of the Authority or of other revenues or receipts of the Authority, in orderto provide money for the Authority or the Service Boards to cover any cash flow deficit which the Authority or a Service Board anticipates incurring. Any such notesareniferred

### to in this Section as ''Working CashNotes". No Working CashNotes shall be issued for a term of longer than 18 months. Proceeds of Working Cash Notes may be used 

### to pay day to day operating expenses of the Authority or the Service Boards, consisting of wages, salaries and fringe benefits, professional and technical services {including legal, audit, engineering and other consulting services), office rental, furniture, fixtures and equipment, insurance premiums, claims for self-insrrred amounts under insurance policies, public utility obligations for telephone, light, heat and similar items, travel expenses, office supplies, post.age, dues, subscriptions, public hearings and information expenses, fuel purchases, and payments of grant.s and payments under purchase of service agreements for operations oftransportation agencies, prior to the receipt by the Authority or a Service Board from time 

### to time offunds for paying such expenses. In addition 

### to any Working Cash Notes that the Board or the Authority may determine 

### to issue, the Suburban Bus Board, the Commuter Rail Board or the Board of the Chicago Transit Authority may demand and direct thatthe Authority issue it.oi Working Cash Notes in such amounts and having such maturities as the Service Board may detencine. Notwithstanding any other provision ofthis Act, any amounts necessary

### t.o payprincipal of and interest on any Working Cash Notes issued at the demand and direction of a Service Board or any Working Cash Notes theproeeeds ofwhich weremedfor the direct benefit of a Service Board or any otherBonds orNotes of the Authority the proceeds of which were used for the direct benefit of a Service Board shall constitute a reduction ofthe amount oftheproceeds of any tax imposed by the Authorityunder Sections 4.08 and 4.08.12 or anyother funds provided by the Authority to a Service Board. The Authority shall, after deducting any costs of issuance, tenderthe netproceeds of anyWorkingCashNotes issued at the demand and direction of a Service Board to such Service Board as soon as may be practicable after the proceeds are received. The Authority may also issue notes or bonds 

### to pay, refund or redeem any of its notes and bonds, including 

### to pay redemption premiums or accrued interest on such bonds ornotes being renewed, paid or refunded, and other costs in connection therewith. The

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## 704.04 CHAPTER 111'/,-PUBLIC UTILITIES 640 Authority may also utilize the proceeds of any such bonds or notes to pay the legal, financial, administrative and other expenses of such authorization, issuance, sale or delivery ofbonds or notes or toprovide or increase a debt service reserve fund with respect

### to any or all of

### its bonds or notes. The Authority may also issue and deliver 

### its bonds or notes 

### in exchange for any public transportation facilities, (including funds and rights relating thereto, as provided in Section 2.05 of this Act) or in exchange for outstanding bonds or not.es of theAuthority, includingany accrued interest or redemption premium thereon, without advertising or submitting such not.es or bonds for public bidding.

(b) The ordinance providing for the issuance ofany such bonds ornotes shall fix the date or dates of maturity, the dates on which interest is payable, any sinking fund ac- count or reserve fund account provisions and all other details of such bonds or notes and may provide for such covenants or agreements necessary or desirable with regard to the issue, sale and security of such bonds or notes. The Authority shall determine and fix the rate or rates of interest of its bonds or notes issued under this Act in an ordinance adopted by the Authority prior to the issuance thereof, none of which rates of interest shall exceed that permitted in "An Act to authorize public corporations to issue bonds, other evidences ofindebtedness and tax anticipation warrants subject to,interest rate limitations set forth therein", approved May 26, 1970, as now or hereafter amended.a Interestmay be payable annually or semiannua11y, or at such other times as determined by the Board. Bonds and notes issued underthis Section may be issued as serial or term obligations, shall be of such denomination or denominations and form, including interest coupons to be attached thereto, be executed in such manner, shall be payable at such place or places and bear such date as the Authority shall fix by the ordinance authorizing such bond or note and shall mature at such time or times, within a period not t.o exceed forty years from the date of issue, and may be redeemable prior to maturity with or without premium, at the option of the Authority, npon such terms and conditions as the Authority shall fix by the ordinance authorizing the issuance of such bonds or notes. No bond anticipation note or any renewal thereof shall mature at any time or times exceeding 5 years from the daW of the first issuance of such note. The Authority may provide for the registration of bonds or notes in the nameofthe owner asto the principal alone or as to both principal and interest, upon such terms and conditions as the Authority may determine. The ordinance authorizing bonds or notes may provide for the exchange of such bonds or notes which are fully registered, as to both principal and interest, with bonds or notes which are registerable as to principal only. All bonds or notes issued under this Section by the Authority other than those issued in exchange for property or for bonds or notes of the Authority shall be sold at a price which may be ata premium or discount but such thatthe interest cost (excluding any redemption premium) to the Authority of the proceeds of an issue of such bonds or notes, computed to stated maturity according to standard t.ables of bond values, shall not exceed that permitted in "An Act to authorize public corporations to issue bonds, other evidences of indebtedness and tax anticipation war- rants subjectto interestrate limitations setforth therein", approved May 26, 1970, as now or hereafter amended. Such bonds or notes shall be sold at such time or times as the Authority shall determine. Any such bonds or notes shall be sold to the highest and bestbidder on sealed billi! as the Authority shall deem. As such bonds or notes are to be sold the Authority shall advertise for proposals 

### to purchase the bonds or notes which advertisement shall be published at least once in a daily newspaper of general circulation published in the metropolitan region atleast 10 days before the time set for the submission ofbids. The Authority shall have the right to reject any or all bids Notwithstanding any other provisions of this Section" Working Cash Notes or bonds or notes to provide fund~ for self-insurance or a joint self-insurance pool or entity may be sold either upon competitive bidding or by negotiated sale (withoutany requirement ofpublication ofintention to negotiate the sale of such Notes), as the Board shall determine by ordinance adopted with the affirmative votes of at least 7 Directors. In case any officer whose signature appears on any bonds, notes or coupons authorizedpursuant to this Section shall ceasetobe suchofficer before delivery of such bonds or notes, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Neither the Directors ofthe Authority nor any person executing any bonds or notes thereof shall be liablepersonally on any such bonds ornotes or couponsby reason ofthe issuance thereof.

(c) All bonds or notes of the Authority issued pursuant to this Section shall be general obligations ofthe Authority to which shallbe pledged the full faith and creditofthe Authority, as provided in this Section. Such bonds or notes shall be secured as provided in the authorizing ordinance, which may, notwithstandinganyotherprovision of this Act, include in addition to any other security, a specific pledge or assignment of a lien on or security interest in any or all tax receipts of the Authority and on any or all otherrevenues or moneys oftheAuthority from whatever source which may by law be utilized for debt service purposes and a specific pledge or assignment of and lien on or security interest in any funds or accounts est.ablished orprovidedforbythe ordinance ofthe Authority authorizing the issuance of such bonds ornotes. Any such pledge, assignment, lien or security interest for the benefit ofholders ofbonds ornotes ofthe Authority shall be valid and binding from the time the bonds or notes are issued without any physical delivery or further act, and shall be valid and binding as against and prior to the claims of all other parties having claims of any kind against the Authority or any other person irrespective of whether such other parties have notice of such pledge, assignment, lien or security interest. The obligations of the Authority incurred pursuant to this Section shall be superiorto and have priority over any otherobligations of the Authority. The Authority may provide in the ordinance authorizing the issuance of any bonds or notes issued pursuantto this Section forthecreationof, deposits in, and regulation and disposition of sinking fund or reserve accounts relating to such bonds or notes. The ordinance authorizing the issuance of any bonds or notes pursuantto this Section may contain provisions as partof the contractwith the holders ofthebonds or notes, for the creation of a separate fund to provide for the payment of principal and interest on such bonds or notes and for the deposit in such fund from any or all the t.ax receiptsofthe Authority and from any or all such other moneys .or revenues of the Authority from whatever source which may by law be utilized for debt service purposes, all as provided in such ordinance, of amounts to meet the debt service requirements on such bonds or notes, including 

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## 704.05 principal and interest, and any sinking fund or reserve fund account requirements as may be- provided by such ordinance, and all expenses incident to or in connection w:ith such fund and accounts or the paymentofsuchbonds or notes. Such ordinance may also provide limitations on the issuance of additional bonds or notes ofthe Authority. No such bonds or notes ofthe Authority shall constitute a debt ofthe State of Illinois. Nothing in this Act shall be construed to enable the Authority to impose any ad valorem 

### tax on property.



### (d) The orainance of the Authority authorizing the issuance of any bonds or notes may provide additional security for such bonds or notes by providing for appointment of a corporate trustee 

### (which may be any trust 

### company or bank having the powers of a trust company within the state)with respectto such bonds or notes. The ordinance shall prescribe therights, duties and powers of the 

### trusteeto be exereisedforthebenefitofthe Authority and the protection of the holders of such bonds or notes. The ordinance may provide forthe trustee

### t.o holdin trust, invest anduse amounts in funds and accounts created as provided by the ordinance with respect to the bonds or notes. The ordinance may provide for the assignmentand direct payment 

### to the trustee of any or all amounts produced from the sourcesprovided in Section 4.03 ofthis Act. Upon receipt of notice of any such assignment, the Department of Revenue and the Comptroller of the State ( 'llinois shall thereafter, notwithstanding the provision

• .:Section 4.03 of this Act, provide for such assigned amounts to be paid dll'ectly 

### t.o the trustee instead of the Authority, all in accordance with the terms of the ordinance making the assignment. The ordinance shall provide that amounts so paid 

### t.o the trustee which are not required to be deposited, held or invested in funds and accounts created by theordinancewith respecttobonds or notes orused for paying bonds or notes to be paid bythe trustee to the Authority.

(e) Anybonds or notes oftheAuthorityissuedpursuant 

### t.o this Section shall constitute 

### a contract between the Authority and theholders from time totime ofsuchbonds or notes. Injgsuing any bond ornote, the Authority may include in the ordinance authorizing such issue a covenant as part of the contract with the holders of the bonds or notes, that as long 

### as such obligations 

### are outstanding, it shall make such deposits, as provided in paragraph (c) of this Section. Itmay also so covenant that it shall impose and continue to impose taxes, as provided in Section 4.03 ofthis Act and in addition thereto as subsequently authorized bylaw, sufficient to make such deposits and pay the principal and interest and to meet other debt service requirements of suchbonds or notes as theybecome due. A certified copy of the ordinance authorizing theissuance of any such obligations shall he filed at or prior to the issuance of such obligations ·with the Comptroller of the State of Illinois and the Illinois Department of Revenue.

(fl The State of Illinois pledges 

### to and agrees with the holders of the bonds and notes of the Authority issued pursuant 

### to this Section that the State will not limit or altertherights and powers vested

### intheAuthority by this Act so as 

### to impair the terms of any contract made bythe A..uthority with such holders or in any way impair the

rhts and remedies of such holders until suchbonds and .•otes, together with interest thereon, with interest c,n any unpaid installments ofinterest, and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, are fully met and discharged. In addition, the St.ate pledges 

### to and agrees with theholders ofthebondsandnotes oftheAuthorityissuedpursuantto this Section thatthe State will not limit or alter thebasis on which St.ate funds are to be paid 

### t.o the Authority as provided in this Act, or the use of such funds, so as to impall' the terms of any such contract. The Authority is authorized

### to include these pledges and agreements ofthe Stat.e in any contra.ct with the holders ofbonds or notes issued pursuant 

### t.o this Section.

(g) The Authority shall not at any time issue, sell or deliver any bonds or notes (other than Working Cash Notes) pursuantto this Section which will cause itto have issued 

### and outst.anding at any time in excess of $400,000,· 000 of such bonds and notes (other than Working Cash Notes). The Authority shall not at any time issue, sell or deliver any Working Cash Notes pursuant

### to this Section which will cause it t.o have issued and outst.and.ing at any time 

### in excess of $100,000,000 of Working Cash Notes. Bonds or notes which are being paid or retired by such issuance, sale or delivery ofbonds or notes, and bonds or notes for which sufficient funds have been deposited with the paying agency of such bonds or notes 

### to provide for paymentofprincipal andinterestthereon 

### orto provide for the redemption thereof, all pursuant 

### to the ordinance authorizing the issuance of such bonds ornotes, shall not be considered to be out.standing for the purposes of thia paragraph.

(h) The Authority, subject to the terms of any agreements withnoteholders orbond holders as may thenexist, shall have power, out of any funds available therefor, to purchase notes or bonds of the Authority which shall thereupon be cancelled.

(i) In addition to any otherauthoritygrantedbylaw,the State Treasurer may, with the approval ofthe Governor, invest or reinvest, at a price not to exceed par, any State money in the State Treasury which is not needed for currentexpenditures due or about

### to become due in Work· ing 

### Cash Not.es. Amended by P.A. 84-1246, § 4, eff. July 29, 1986.

1Pa.ragraph 702.05 ofthis chapter. 2Paragraph.a 704.03 and 704.03.l ofthis chapter. 3Chapter 17, U 6601 et seq. 704.05. Financial statements and annual reports

§ 4.05. Financial St.atements and Annual Reports. Within six months after the end of each fiscal year, the Board shall prepare a complete and detailed report consolidating the audits ofthe Service Boards and reviewing the State of the Authority, the Service Boards, and of the public transportation provided by the various Service Boards and transportation agencies. The report shall include evaluations of public transportation in the metropolitan region and ofthe Authority's activities, and financial statements ofthe Authority's and the Service Boards' revenues and eJqJend:itures for such year and of their assets andliabilities, which financial statements shall have been audited by an independent certified public accountant. Thereportshallalso setforth the financialresults as reported to the Service Boards from each transportation agency which during such yearhad a purchase of service agreement with a Service Board or which received financial grants or financial assistance from a Service Board, such results to be set forth separately for each such agency. A sufficient number of copies of each annual report shall be printed for distribution 

### t.o anyone, upon request, and a copy thereof shall be filed with the Gover-

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nor, theState Comptroller, the Speaker andMinority Leader ofthe Illinois House ofRepresentatives, the President and Minority Leader of the Illinois Senate, the Mayor of the City of Chicago and the President or Chairman ofthe county board of each county in the metropolitaTI region, each Service Board, and with each transportation agency which during such year had a purchase of service agreement 

### with a Service Board or which received financial grants orother financial assistance from a Service Board. Amended by P.A. 83-1862, Art. TI, § 127, eff. Sept. 11, 1984.

Article II ofP.A. aJ-1362, lhe First 83rd General Assembly Combining Revisory Act, resolved multiple actions in the 83rd General Assembly. 704.06 Public bidding

§ 4.06. Public bidding. The Board shall adopt regulations to ensure that the construction or acquisition by the Authority or a Service Board other than the Chicago TransitAuthority ofservices or public transportation facilities (other than real estate) involving a cost more than $5,000 and the disposition of all property ofthe Authority ora Service Board other than the Chicago TransitAuthority shall be after public notice and with public bidding. Such regulations may provide for exceptions to such re- quirements for acquisition of repair parts, accessories, equipment or services previously furnished or contracted for; for the immediate delivery of supplies, material or equipmentorperformance ofservice when itis determined bythe concurrenceoftwo-thirds ofthe then Directors that an emergencyrequires immediate delivery orsupplythereof; for goods or services that are economically procurable from only one source; for contracts for the maintenance or servicing ofequipment which are made with the manufacturers or authorized service agent of that equipment where the maintenance or servicing can bestbe performed by the manufacturer or authorized service agent or sucha contract would be otherwise advantageous to the Authority or a Service Board, other than the Chicago Transit Authority, except that the exceptions in this clause shall not apply to contracts for plumbing, heating, piping, 

### refrigeration and automatic temperature control systems, ventilating and distribution systems for conditioned air, and electrical wiring; for goods or services procured from another governmental agency; for purchases and con- tracts for the use or purchase of data processing equipment and data processing systems software; and for the acquisition ofpro!essionalorutility services. The requirements set forth therein shall not apply to purchase of service agreements or other contracts, purchases or sales entered into by the Authority with any transportation agency or unit of local government. Amended by 

### P.A. 83-886, § 1, eff. Nov. 

### 9, 1983. 704.07. Bonds, notes and certificates to be legal investments § 4.07. Bonds, notes and certificates to be legal investments. The State, all units oflocal government, all public officers, banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and 

### Joan associations, investment companies and other persons carrying on a banking business, insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries may legally investany sinkingfunds, monies or other funds belonging to them or within_t~eir c~ntrol in any bonds, notes or equip. menttrustcertificates issued pursuantto this Act, itbeing the purpose ofthis Section to authorize the investment in such bonds, notes or certificates of all sinking, insurance retirement, compensation, pension and trustfunds, wheth'. er owned or controlled by private or public persons or officers; provided, however, thatnothing contained in this Section may be construed as relieving any person, firm or corporation from any duty ofexercisingreasonable care in selecting securities for purchase or investment. 704.08. Exemption from taxation

§ 4.08. Exemption from Taxation. The Authority and the Service Boards shall be exemptfrom all State and unit oflocal governmenttaxes and registration and license fees other than as required for motor vehicle registration in accordance with the "Illinois Vehicle Code", as now or hereafter amended. 1 All property of the Authority and the Service Boards 

### is declared to be public propert'J devoted to an essential public and governmental function and purpose and shall be exempt from all taxes and special as~essments of the St.ate, any subdivision thereof, or any umt of local government. Amended by P.A. 83-886, § 1, eff. Nov. 9, 1983.

IChapter s;;•t:,, ff 1-10-0 et seq. 704,09. Public Tl"ansportation Fund

§ 4.09. Public Transportation Fund. (a) As soon as possible after the first day of each month, beginning November 1, 1983, the Comptroller shall ordertransferred and the Treasurer shall transfer from the General Reve· nue Fund to a special fund in the State Treasury, to be known as the ''Public Transportation Fund" $9,3'75,000 for eact. month remaining in State fiscal year 1984. As soon as possible after the first day of each month, beginning July l, 1984, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Public Transportation Fund an amount equal to 25% of the 

### net revenue realized from any 

### tax imposed by the Authority pursuant to Sections 4.03 and 4.03.1.1 Net revenue realized for amonth shall be the revenuecollected by the State pursuant to Sections 4.03 and 4.03.1 during the previous month from within the metropolitan region, less the amount paid out during that 

### same month 

### as refunds to taxpayers for overpayment of liability in the metropolitan region under Sections 4.03 and 4.03.1.

(b) All moneys deposited in the Public Transportation Fund, whether deposited pursuantto thls Section or otherwise, are allocated to the Authority. Pursuant to appropriation, the Comptroller, as soon as possible after each monthly transfer provided in this Section and after each depositinto such Fund, shall order the Treasurerto pay to the Authority out of the Public Transportation Fund the amount so transferred or deposited. Such amounts paid to the Authority may be expended by itfor its purposes as provided in this Act.

Provided, however, no moneys shall be paid from the PublicTransportation Fund to the Authority for any fiscal year beginning afterthe effective date o:fthis amendatory Act of 1983 until the Authority has certified to the Gover~ nor, the Comptroller, and the Mayor ofthe City ofChicago that it has adopted for that fiscal year a budget and financial plan meetingthe requirements in Section 4.0l(b).2

(c) Within 6 months of the end of the 3 month period ending December31, 1983, and each fiscal yearthereafter, 

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theAuthorityshall detennine whetherthe aggregate ofall system generatedrevenuesfor publictransportation in the metropolitan region which 

### is provided by, or under grant or purclmse of service contracts with, the Service Boards equals 

### 50% ofthe aggregate of

### all costs ofproviding such public transportation. "System generated revenues" in· elude all the proceeds of fares and charges for services provided, contributions received in connection with public transportation from units oflocal government other than the Authority and all other revenues properly included consistent with generally accepted accounting principles but may not include the proceeds from any borrowing. "Costs" include all items properly included as operating costs consistent

### with generallyaccepted accountingprinciples, including administrative costs, but do not include: depreciation; payment of principal on "1982 Int.erim Financing Not.es" or "1982 Int.erim Financing Obligations" issued pursuantt.o Regional Transportation Authority 

### Ordinance 82-269 ofthe Authority; paymentofprincipal and intereston bonds issued t.o provide funds to the Authority or a transportation agency for the purpose of constructing oracquiringa transportationfacility; paymentofprincipal on any Working Cash Not.es issued under Section 4.04;3 any other cost ast.o whlch itis reasonably ~ectedthata ca.sh expenditure 

### will not be made; costs up t.o $5,000,000 annually for passenger security including grants, co& -l;racts, personnel, equipment and administrative expenses; ;osts as exempted by the Board for projects pursuant 

### to Section 2.09 of this Act;4 or costs, up 

### to the amount of a grant pursuant 

### to Section 49.19a of The Civil Administrative Code ofIllinois5 from the Department ofTransportation, for services for the mobility limited, includihg paratransit services for the mobility limited, during the 

### Authority's fiscal yearbeginningJanuary 1, 1986 and ending December 31, 1986, and during the Authority's fiscal year beginning January l, 1987 and ending December Sl, 1987. If said system generated revenues are less than 50% of said costs, the Board shall remit an amount equal t.o the amount of the deficit t.o the State. The Treasurer shall deposit any such payment 

### in the General Revenue Fund.

(d) If the Authority makes any payment to the State under paragraph (c), the Authority shall reduce the amount provided to a Service Board from funds transferred under paragraph (a) in proportion t.o the amount by which that Service Board failed to meet its required system generated revenues recovery ratio. A Service Board which is affected by a reduction in funds under this paragraph shall submitto the Authority concurrently with its next due quarterly report a revised budget incorporating thereduction in funds. The revisedbudgetmust meet the criteria specified in clauses {i) through (vi) of Section 4.ll{b)(2),6 The Board shall review and acton the revised budget as provided in Section 4.ll{b)(3). Amended by P.A. 84-939, § 3, eff. Sept. 24, 1985; P.A. 84-1246, § 4, eff. July 29, 1986.

1Paragraphs 704.03 and 704.03.1 of this chapter. ZParagraph 704.01 of this chapter. SParagraph 704.04 of this chapter. 4Paragraph 702.09 of this chapter. 5Chapter 127,**~** 49.19a. 6Paragraph 704.11 of this chapter. P.A. 84-!246 incorporated the amendment by P.A. 84-939. 704.10. Agreements with the Chicago TransitAuthority

§ 4.10. Agreements 

### with the Chicago Transit Authority. The Authority shall not for any fiscal year of the Authority release to the Chicago Transit Authority any funds except for the proceeds of taxes imposed by the Authority under Sections 4.03 and 4.03.1 I which are allocated to the Chicago Transit Authority under Section 4.0l(d)2 unless a unit or units oflocal governmentin Cook County (other than the Chicago Transit Authority) enters or enter into an agreement with the Chicago Transit Authority to make a monet.ary contribution for such year of at least $5,000,000 for public transportation.

Except as otherwise provided in this Section, the Authority shall not for any fiscal year of the Authority release to the Chicago Transit Authority any funds except for the proceeds oftaxes imposed bythe Authority under Sections 4.03 and 4.03.1 whlch are allocated to the Chicago Transit Authority under Section 4.0l(d) unless the County of Cook and City of Chicago continue 

### to provide services to the Chicago Transit Authority atthe same level and on the same basis as are being provided by such units 

### as of the effective date of this 

### Act. The Authority may from time to time approve reductions in the level and basis of services to be provided pursuantto this Section. Amended by P.A. 83-886, § 1, eff. Nov. 9, 1983.

lParagraphs 704.08 and 704.03.1 of this chapter. 2Paragraph 704.01 ofthis chapter. 704.11. Budget review powers

§ 4.11. Budget Review Powers. (a) The provisions of this Section shall only be applicable to financial periods beginning after December 31, 1983. TheTransition Board shall adopt a timet.able governing the certification of estimates and anysubmissions required under this Sectionfor fiscal year 1984 which shall control over the provisions of this Aet. Based upon estimates which shall be given to the Authority by the Director ofthe Illinois Bureau ofthe Budget of the receipts to be received by the Authority from the taxes imposed by the Authority and the authorized estimates of amounts to be available from St.ate and other sources to the Service Boards, and the times at which such receipts and amounts will be available, the Board shall, not later than the ne:xt preceding September 15th prior to the beginning of the Authority's next fiscal year, advise each Service Board l)fthe amounts estimated bythe Board

### to be available for such ServiceBoardduring such fiscal yearaud the two following fiscal years andthe times atwhieh such amounts will 

### be available. TheBoard shall, at the same time, also advise each Service Board of its required system generatedrevenues recovery ratio for the next fiscal year which shall be the percentage of the aggregate costs of providing public transportation by or under jurisdiction of that Service Board which must be recovered from system generatedrevenues. In determining a Service Board's system generated revenue recovery ratio, the Board shall consider the historical system generatedrevenues recovery ratio forthe services subjecttothe jurisdiction of that Service Board. The Board shall not increase 

### a Service Board's system generated revenues recovery ratio for the next fiscal year over such ratio for the current fiscal year disproportionately or prejudicially to increases in such ratios for other Service Boards. The Board may, by ordinance, provide that (i) the cost of research and developmentprojects in the fiscal yearbeginning January 1, 1986 and ending December 31, 1986 conducted pursuantto Section 2.09 ofthis Act,1 and (il) up to $5,000,000 annually of the costs for passenger security, may be exempted from the farebox recovery ratio or the system generated revenues recovery ratio of the Chicago

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- PUBLIC UTILITIES 644 Transit Authority, the Suburban Bus Board, and the Commuter Rail Board, or any of them. For the fiscal year beginning January 1, 1986 and ending December 31, 1986, and for the fiscal year beginning January 1, 1987 and ending December 31, 1987, the Board shall, 

### by ordinance, provide that: (1) the amount of a grant, pursuant to Section 49.19a of The Civil Administrative Code of Illinois,2 from the Department ofTransportation for the cost of services for the mobility limited provided by the Chicago Transit Authority, and (2) the amount of a grant, pursuant to Section 49.19a of The Civil Administrativ~ Code of Illinois, from the Department of Transportation for the cost of services for the mobility limited by the Suburban Bus Board or the Commuter Rail Board, be exempt from the farebox recovery ratio or the system generated revenues recovery ratio.

(b)(l) Not later than the next preeeding November 15 prior to the commencement of such fiscal year, each Service Board shall submit to the Authority its proposed budget for such fiscal year and its proposed financial plan for the two following fiscal years. Such budget and financi11l plan shall not project or assume a receipt of revenues from the Authority in amounts greater than those setforth in the estimates provided by the Authority pursuant to subsection (a) of this Section.

(2) The Board shall review the proposed budget and financial plan submittedby each Service Board, and shall adopt a consolidatedbudget and financial plan. The Board shall approve the budget and plan if;

(i) the Board has approved the proposed budget and cash flow plan for such fiscal year of each Service Board, pursuant to the conditions set forth in dauses (ii) through (vii) ofthis paragraph;

(ii) such budget and plan show a balance between (A) anticipated revenues from all sources including operating subsidies and (B) the costs ofproviding the services specified and of funding any operating deficits or encum- brances incurred in prior periods, including provision for paymentwhen due ofprincipal and interestonoutstanding indebtedness;

(iii) such budget andplan show cash balances including the proceeds of any anticipated cash flow borrowing sufficient to pay with reasonable promptness all costs and expenses as incurred;

(iv) such budget and plan provide for a level offares or charges and operating or administrative costs for the public transportation provided by orsubject t-0 thejurisdiction of such Service Board sufficient to allow the Service Board to meet its required system generated revenue recovery ratio;

(v) such budget and plan are based upon and employ assumptions and projections which are reasonable and prudent;

(vi) such budget and plan have been prepared 

### in accordance with sound financial practices as determined by the Board; and

(vii) such budget and plan meet such other financial, budgetary, or fiscal requirements that the Board may by rule or regulation est.ablish.

(3) In determining whether the budget and financial plan provide a level offares or charges sufficient t-0 allow a Service Board to meet its required system generated revenue recovery ratio under clause (iv) in subparagraph (2), the Board shall allow a Service Board t-0 carry over cash from farebox revenues to subsequent fiscal years. (4) Unless the Board by an affirmative vote of9 of the then Directors determines that the budget and financial plan of a Service Board meets the criteria specified in clauses (ii) through (vii) of subparagraph (2) of this para· graph (bl, the Board shall not release to that Service Board any funds for the periods covered by such budget and financial plan except for the proceeds of taxes imposed by the Authority under Section 4.03 3 which are allocated to the Service Board under Section 4.01.4

(5) If the Board has not found that the budget and financial plan of a Service Board meets the criteria specified in clauses (i) through (vii) of subparagraph (2) ofthis paragraph (b), the Board shall, five working days after the startofthe Service Board's fiscal year adopt abudget and financial plan meeting such criteria forthatService Board.

(c)(l) If the Board shall at any time have received a revised estimate, or revises any estimate the Board has made, pursuantto this Section ofthereceipts to be collected by the Authority which, in the judgment ofthe Board requires a change in the estimates on which the budget of any Service Board is based, the Board shall advise the affected Service Boardofsuch revised estimates, and such Service Board shall within 30 days after receipt of such advice submit a revised budgetincorporating such revised estimates. Ifthe revised estimates require, in the judgment of the Board, that the system generated revenues recovery ratio ofone or more Service Boards be revised in order to allow the Authority to meet its required ratio, the Board shall advise any such Service Board of its revised ratio and such Service Board shall within 30 days after receipt of such advice submit a revised budgetincorporating such revised estimates or ratio.

(2) Each Service Board shall, within such period after the end of each fiscal quarter as shall be specified by the Board, report to the Authority its financial condition and results of operations and the financial condition and results of operations of the public transportation services subject to its jurisdiction, as at the end of and for such quarter. Ifin the judgment of the Board such condition and results are not substantially in accordance with such Service Board's budgetfor such period, the Board shall so advise such Service Board and such Service Board shall within the period specified by the Board submit a revised budgetincorporating such results.

(3) If the Board shall determine that a revised budget submitted by a Service Board pursuant to subparagraph (1) or (2) of this paragraph (c) does not meet the criteria specified in clauses (ii) through (vii) of subparagraph(2) of paragraph (b) of this Section, the Board shall not release any monies to that Service Board except the proceeds of taxes imposed by the Authority under Section 4.03 or 4.03.15 which are allocated to the Service Board under Section 4.01. If the Service Board submits a revised financial plan and budget which plan and budget shows thatthe criteria will be met within a four quarter period, the Board shall continue to release funds to the Service Board. The Board by a 9 vote ofits then Directors may require a Service Board to submit a revised financial plan and budget which shows thatthe criteria will be met in a time period less than four quarters.

(d) All budgets and financial plans, financial Statements, audits and other information presented to the Authority pursuant to this Section or which may be required by th~ Board to permit it to monitor compliance with the pro1:1· sions of this Section shall be prepared and presented m such manner and frequency and in such detail as shall

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have been prescribed by the Board, shall be prepared on both an accrual and cash flow basis as specified by the Board, and shall identify and descriDe the assumptions and projections employed in the preparation thereof -to the extent required by the Board. Except when the Board adopts a budget and a financial plan for a Ser,rice Board under paragraph (bX5), a Service Board shall provide for such levels oftransportationservices and fares orcharges therefor as it deems appropriate and neeessary 

### in the preparation of a budget and financial plan meeting the criteria set forth 

### in clauses (ii) through {vii) of subparagraph(2) ofparagraph(b)ofthis Section. TheBoard shall have access to and the right to examine and copy all books, documents, papers, records, or other source data of a Service Board relevant to any information submitted pursuantto this Section.

(e) Whenever this Section requires the Board to make determinations withrespectto estimates, budgets orfinancialplans, orrules or regulations with respectthereto such determinations shall be made upon the affirmative vote of atleast 9 of the then Directors and shall be incorporated in a written report of the Board and such report shall be submitted within 10 days after such determinations are made to the Governor, the Mayor of Chicago (if such determinations relate to the Chicago Transit Authority), and the Auditor General ofIllinois. 'ended by P.A. 84-939, § 3, 

### eff. Sept. 24, 1985; P.A. -1246, § 4, eff. July 29, 1986. l Paragraph 702.09 of this chapter. 2Chapter 127,**~** 49.19a. 3Paragraph 704.03 of this chapter. 4Paragraph 704.01 of this chapter. 5Paragraph 704.03.1 of this chapter. P.A. 84-1241> incorporated the amendment by P.A. 84-939. ARTICLE V PROCEDURES A.""l'D MISCELLANEOUS PROVISIONS 705.01. Hearings and citizen participation

§ 5.01. Hearings and citizenparticipation. (a) The Authority shall provide for and encourage participation by the public in the development and review ofpublic transportation policy, and in the process by which major decisions significantly affecting the provision of public transportation are made.

(b) The Authority shall hold such public hearings as may 

### be requiredbythis Actor as the Authority may deem appropriate to the performance of any of it.s functions.

(c) Unless such items are specifically provided for either in theFive-Year Programorin theannualbudgetprogram which has been the subject of public hearings asprovided in Sections 2.01 or 4.01 of this Act,1 the Board shall hold public hearings at which citizens may be heard prior to: (i) the construction or acquisition of any public transportation facility, the aggregate cost of which e~eeds $5 million; and

(ii) the extension of, or major addition to services provided by the Authority or by any transportation agency pursuant to a purchase of service agreement with the Authority. (d) Unless such items are specificallyprovided for in the annual budget and programwhich has been the subject of public hearing, as provided in Section 4.01 ofthis Act, the Board shallhold public hearings at which citizens may be heard prior to the providing for or allowing, by means of any purchase of service agreement or any grantpursuant to Section 2.02 ofthis Act,2 any general increase or series ofincreases in fares or charges for public transportation, whetherbytheAuthority orby anytransportationagency, which increase or series of increases within any twelve months affects more than 

### 25% ofthe consumers ofservice of the Authority or of the transportation agency; or so providing for or allowing any discontinuance of any public transportation route, or major portion thereof, which has been in service for more than a year.

(e) At least t:wenty days prior notice of any public hearing, as required in this Section, shall be given by public advertisementin a newspaper ofgeneral circulation 

### in the metropolitan region.

(f) The Authority may designate one or more 

### Direetors or mJJ.y appoint one or more hearing officers to preside over any hearing pursuant to this Act The Authority shall have thepower in connection with any such hearing 

### to issue subpoenas to require the attendance of witnesses and the production of documents, and the Authority may apply to any circuit court in the State to require compliance with such subpoenas.

l Paragraph 702.01 or 704.01 of this chapter. 2Paragraph 702.02 of this chapter. 705.02. Limitation on home rule powers

§ 5.02. Limitation on home rule powers. Insofar as this Actauthorizes the Authority to take or authorize any action notwithstanding or in lieu of any ordinance, rule, regulation or power of any unit of local government; or provides thatany unitoflocal governmentrestrictions are not effective with regard to the Authority or provides that any power or action of any unit of local government 

### is subjectto anypower or action ofthe Authority, thisActis an express limitation on the powers of home rule municipalities and counties within the meaning of paragraph (g) of Section 

### 6ofArticle

### VII ofthe lllinois Constitution. No such action by the Authority shall be such a limit unless taken pursuantto an ordinancewhichispassedby atleast seven members ofthe Board and which specifically states that it is a limit on the home rule unit; and provided further than this Act 

### is not a limit on the power ofhome rule units to license, tax, franchise or regulate taxicabs except for services provided pursuant to purchase of service agreements. Except as provided in this Section, this Act is not a limit on any home rule unit. Amended by P.A. 81-8, 2nd Sp.Sess., § 11, eff. Sept. 19, 1979. 705.03. Limitation on actions

§ 5.03. Limitation on actions. The Authority shall not beliable in any civil action for anyinjuryto any person or property for any acts or omissions of any transportation agency or unit of local government, as a result of the Authority making grants to or having a purchase of service agreement with such agency or unit of local government. Nothing in this Act, however, limits the power of the Authority in its purchase of service agreements to pay the cost of any such injuries.

No civil action shall be commenced in any court against the Authority by any person on account of any wrongful death or for any injury to any person unless it is commenced within 2 years from the date that the cause of action accrued; provided, however, that the foregoing shall not limit a transportation agency in bringing a civil

## (



## (

(

## 111'!,**~** 

## 705.03 CHAPTER 111%-PUBLIC UTILITIES 646 action to enforce its rights under a purchase of service agreement with the Authority. Amended by P.A. 78-1207, § 1, eff. Dec. 30, 1974. 705.04. Severability

§ 5.04. Severability. If any Section, sentence, clause or provision of this Act or any application thereof to any person or circumst.ance is for any reason held invalid or 

### unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the other provisions or applications of this Act which can be given effect without the invalid or unconstitutional application or provision, and to this end the provisions of this Act are declared to be severable. 705.05, Opt out

Text of paragraph as amended by P.A. 83-885, § 1. § 5.05. Opt Out. (a) Notwithstanding any other provision of this Act, if the County Board of the County of DuPage, Kane, Lake, McHenry or 

### Will by ordinance authorizes that such county shall elect to terminate the powers ofthe Authority andthe Suburban Bus Division in that County, the Secretary of such County Board shall certifythatpropositionto the proper election officials, who shall submit such proposition at an election in accordance with the general election law to decide whether ornot the County shall opt out; and if a majority of the voters voting upon the proposition is in favor of terminating the powers of the Authority and the Suburban Bus Division those powers shall be terminated.

The form of the ballot to be used at the referendum shall be substantially as follows:
Shall

.. . .. County Terminate the 

### YES Powers of the Regional Transportation Authority and the Suburban Bus Division in



### .. County on



## -- 

# ........... NO {date)
If a majority of the voters vote in favor of terminating the powers of the Authority and the Suburban Bus Division than all of the powers of the Authority and the Suburban Bus Division shall terminate in such county except those powers and functions which the Authority determines to be necessary to exercise with regard to;

(i) public transportation by commuter rail, and related public transportation facilities;

(ii) public transportation other than by commuter rail which is required in order to comply with federal or State laws and regulations, and related public transportation facilities; and

(iii) public transportation other than by commuter rail provided by the Suburban Bus Division pursuant to contract with the County or other governmental entity therein, and related public transportation facilities.

(b) The termination of the powers of the Authority and the Suburban Bus Division referred to in paragraph (a) of this Section with respect to any County shall occur on approval ofthe referendum by the electors provided on or prior to the date of such termination, such County shall have:

(i) assumed the obligations of the Authority under all laws, federal or State, and all contracts with respect to public transportation or public transportation facilities in such County, which statutory or contractual obligations extend beyond the termination date provided for in accord- ance with paragraph (c) ofthis Section provided that such obligations shall not be deemed to include any indebted- ness of the Authority for borrowed money;

(ii) agreed to indemnify and hold harmlessthe Authority against any and all claims, actions and liabilities arising outoforin connectkmwith the termination ofthe Authority's powers and functions pursuant to paragraph (a) of this Section; and

(iii) taken or caused to be taken all necessary actions and fulfilled or caused to be fulfilled all requirements under federal and State laws, rules and regulations with respect to such termination aud any related transfers of assets or liabilities of the Authority. A County may, by mutual agreement with the Authority, permit the Authority to fulfill one or more contracts which by their terms extend beyond the termination date provided for in accord· ance with paragraph (c) of this Section, in which case the powers and functions oftheAuthority in that County shall survive only to the extent deemed necessary by the Authority to fulfill said contract or contracts. The satisfaction of the requirements provided for in this paragraph shall be evidenced in such manner 

### as the Authority may require.

(c) Following an election to terminate the powers ofthe Authority and the Suburban Bus Division at a referendum held underparagraph (a) ofthis Section, the CountyBoard shallnotify the Authority ofthe results ofthe referendum which notice shall specify a termination date, which is the last day ofthe calendar month, butno earlier than December 31, 1984. Unless the termination date is extended by mutual agreement between the County and the Authority, the termination ofthep-0wers and functions oftheAuthority in the County shall occur at midnight on the termi· nation date, provided thatthe requirements ofthis Section have been met.

(d) The proceeds of taxes imposed by the Authority under Sections 4.03 and 4.03.11 collected after the termination date within a County wherein the powers of the Authority and the Suburban Bus Division have been terminated under this Section shall be provided by the Authority to the Commuter Rail Board to support services under the jurisdiction of the Commuter Rail Board which are attributable to that County, as determinedby the Commuter Rail Board. Any proceeds which are in excess of that necessary to support such services shall be paid by the Authority to that County to be expended for general transportation purposes in ai!cordance with law. If no services under the jurisdiction of the Commuter Rail Board are provided in a County wherein the powers ofthe Authority have been terminated under this Section, all proceeds oftaxes imposed by the Authority in the County shall be paid by the Authority to the County to be expended for general transportation purposes in accordance with law. The Authority or the Suburban Bus Division has no obligation to see that the funds expended under this paragraphby the County are spentfor general transporta· tion purposes in accordance with Jaw. Amended by P.A. 83-885, § 1, eff. Nov. 9, 1983.

l Paragraphs 704.03 and 704.03.l of this chapter. 

### For text ofparagraph as amended by P.A. 88--886, § 1, 

### see ff705.05, post.



### Forfinal legislative action, see notefollowing f!705.05, 

### post. l 

## ' ' ' 

# t

### (



# (



# (

## 647 CHAPTER 111'/,- PUBLIC UTILITIES 

## 111%**~**

## 705.05

705.05. Opt out



### Text of paragraph as amended by P.A. 83-886, § 1. § 5.05. Opt Out. (a) Notwithst.anding any otherprovision of this Act, if the County Board of the County of DuPage, Kane, Lake, McHenry or Will by ordinance authorizes that such county shall elect to terminate the powers of the Authority andthe Suburban Bus Division in 

### that County, the Secretary of such County Board shall certifythatpropositiontotheproperelectionofficials, who sha11 submit such proposition at an election in accordance with the general election Jaw to decide whether or notthe County shall opt out; and if a majority of the voters voting upon the proposition is in favor ofterminating the powers of the Authority and the Suburban Bus Division those powers shall be terminated.



### The form of the ballot 

### to be used at the referendum shall be substantially as follows:
Shall County Terminate 

### th, 

## YES Powers ofthe Regional Transportation Authority and the Suburban Bus Divisio\{° 

## .... County on 

## ....... .

## .... NO (date
If a majority of the voters vote in favor ofterminating ( powers of the Authority and the Suburban Bus Board _.~n all ofthe powers oftbe Authority and the Suburban Bus Board shall terminate 

### in such county except those powers and functions which the Authority determines to be necessary 

### to exercise with regard to;

(i) public transportation by commuter rail, and related public transportation facilities;

{ii) public transportation other than by commuter rail which 

### is required 

### in order to comply with federal or St.ate laws and regulations, and related public transportation facilities; and

(iii) public transportation other than by commuter rail provided by the Suburban Bus Division pursuant to contract with the County or othergovernment.al entity therein, and related public transportation facilities.

(b) The termination of the powers of the Authority referredto in paragraph (a) ofthis Section with respectto any County shall occur on approval ofthe referendum by the electors provided on or prior to the date of such termination, such County shall have:

(i) assumed the obligations of the Authority under all laws, federal or State, and all contracts with respect 

### to public transportation or public transportation facilities in such County, which statutory or contractual obligations extendbeyond thetermination dat.e providedforin accordance with para.graph (c) ofthis Section provided that such obligations shall not be deemed to include any indebtedness of the Authority for borrowed money;

(ii) agreedto indemnifyand hold harmlesstheAuthority against any and all claims, actions and liabilities arising outof orin connectionwiththe termination oftheAuthority's powers and functions pursuant to paragraph (a) of this Section; and

{iii) taken or caused to be taken all necessary actions and fulfilled or caused to be fulfilled all requirements under federal and State laws, :rules and regulations with respect to such t.ermination and any related transfers of assets or liabilities of the Authority. A County may, by mutual agreementwith the Authority, permitthe Authority to fulfill one or more contracts which by their terms extend beyond thetermination date provided for in accordance with paragraph {c) ofthis Section, in which case the powers andfunctions ofthe Authorityin thatCountyshall survive only to the extent deemed necessary by the Authority t.o fulfill said contract or c:ontracts. The satisfaetion of the requirements provided for in this paragraph shall be evidenced in such manner 

### as the Authority may require.

(e) Following an election 

### to terminate the powers ofthe Authority and the SuburbanBusDivision at areferendum held under paragraph (a) ofthis Section, the CountyBoard shall notifythe Authority oftheresults ofthereferendum which notice shall specify a termination date, which is the lastday ofthe calendarmonth, butno earlier than December 31, 1984. Unless the termination date is extended by mutual agreementbetween the County andthe Authority, the terminationofthepowers and functions oftheAuthority in the County shall occur at midnight on the tennination date, providedthattherequirements ofthis Section have been met.

(d) The proceeds of taxes imposed by the Authority under Sections 4.03 and 4.03.11 collected after the termination date within a County wherein the powers of the Authorityhavebeenterminatedunderthis Section shall be provided bythe Authority to the Commuter Rail Board to support services under the jurisdiction of the Commuter Rail Board 

### which are attributable t.o that County, as determined by the Commuter Rail Board. Any proceeds which are 

### in excess of that necessary to support such services shall be paid by the Authority to that County to be expendedforgeneraltransportation purposes in accordance withlaw. Ifno services underthejurisdiction ofthe Commuter Rail Board are provided in a County wherein the powers of the Authority have been terminated under this Section, all proceeds oftaxes imposedbythe Authori: ty in the County shall 

### be paid by the Authority to the County to be expended for general transportation purposes in accordance with Jaw. 

### The Authority orthe Suburban Bus Board has no obligation to see thatthe funds expended under this paragraph by the County are spent for general transportation purposes in accordance with law. Amended by P.A. 88-S86, § 1, eff. Nov. 9, 1983.

1Paragraphs 704.03 and 704.03.1 of this chapter. 

### For 

### text ofpara.graph as amended by P.A. 83-885, § 1, 

### see fl705.05, 

### ante. Final legislative a.ction, 83rd General Assembly:

P.A. 83-885--Nov. 2, 1983 P.A. 8:l-886--Nov. 2, 1983 See l!!.Rev.Sblt. ch. I, \l l!OS as to the effect of (1) more than one amendment ofa section at the same session ofthe General As=blyor {2) two orn1<m: a~ts relating to the same subject matter ena.cted by the same General Assembly.

PUBLIC TRANSIT 

### EMPLOYEE TRAINING PROGRAMS ACT AN ACT in relation to the establishment ofpublic transit

employee training programs. P.A. 81-846, §§ 1 

### to 8, approved and eff. Sept. 20, 1979.

## (



# (3615/4.03.Taxes, 70 ILCS 361514.03



### 70 ILCS 3615/4.03 West's Smith-HurdIllinoisCompiledStah1tesAnnotatedCurrentness

Chapter70. Special

### Districts Transit Act3615. RegionalTransportationAuthorityAct {Refs & 

### Annas)

ArticleIV. Finances

3615/4.03.Taxes

Fom1er!y cited as IL ST CH l l 1#

### i' 704.03

§4.03. 

### Taxes. (a} Inorderto carryoutanyofthepowersorpurposesoftheAuthority,theBoardmaybyordinanceadoptedwiththeconcurrence of12 ofthethenDirectors,imposethroughoutthe metropolitan regionanyorall ofthe taxesprovidedinthis Section. Exceptas otherwise provided inthis Act, taxes imposed underthis Section and civil penalties imposed incident thereto shall be collected and enforced bythe State Department ofRevenue. The Department shall have the powerto administer and enforce the taxes and to determine all rights for refunds for erroneous payments ofthetaxes. Nothing in this amendatoryAct ofthe 95th General Assemblyis intended to invalidate anytaxes currentlyimposedby the Authority. The increased vote requirements to impose a tax shall onlyapply to actions taken afterthe effective date ofthis amendato1y Act ofthe 95th General Assembly. (b) The Board may impose apublic transportation tax upon all persons engaged in the metropolitan region in the business of selling at retail motor fuel for operation ofmotor\'ehicles upon public highways. The tax shallbe ata rate not to exceed 5% ofthe gross receipts from the sales ofmotor fuel inthe course ofthe business. As used inthis Act, theterm "motorfuer· shall have the same meaning as in the MotorFuel Tax Law. [FNJ] The Board may provide for details ofthe tax. The provisions ofany tax shall conform, as closely as may be practicable, to the provisions ofthe Municipal Retailers Occupation Tax Act, [FN2] including without limitation, confom1ity to penalties with respect to the tax imposed and as to the powers ofthe State Department ofRevenue to promulgate and enforce mies and regulations relating to the administration and enforcement ofthe provisions ofthe tax imposed, exceptthat reference in the Actto any municipality shall referto the Authority and the taxshall be imposed only withregard to receipts from sales ofmotorfoe! in the metropolitan region, at rates as limited by this Section. (c) In connection with the tax imposed under paragraph (b} ofthis Section the Board may impose a tax upon the privilege of using in the metropolitan region motor fuel for the operation ofamotor vehicle upon public highways. the tax to be at a rate not in excess ofthe rate oftax imposed underparagraph (b) ofthis Section. The Board may provide for details ofthe tax. (d} TheBoardmayimposeamotorvehicleparkingtaxupontheprivilegeofparkingmotorvehiclesatoff-streetparkingfacilities inthemetropolitanregionatwhichafee is charged, andmayprovide forreasonable classificationsin andexemptions to the tax, for administration and enforcement thereofand for civil penalties and refunds thereunderand may provide criminal penalties thereunder, the maximum penalties not to exceed the maximum criminal penalties provided in the Retailers' Occupation Tax Act. [Fl\'.3] The Authority may collect and enforce the tax itselfor by contract with any unit oflocal government. The State Department ofRevenue shall have no responsibility for the collection and enforcement unless the Department agrees with the Authority to undertake the collection andenforcement. Asused in this paragraph, the tem1 

### "parking facility" means aparking
area orstructure havingparking spaces for more than 2 vehicles at which motor vehicles are permittedto park in return for
an hourly, daily, or otherperiodic fee, whether publicly or privately owned, but does not include parking spaces on a public street, the use ofwhich isregulated by parking meters. (e} TI1e Board may impose a Regional Transportation Authority Retailers' Occupation Tax upon all persons engaged in the business ofselling tangible personal property at retail 

### in the metropolitan region. In Cook Countythe tax rate shallbe 1.25% ofthe gross receipts from sales offood for human consumption that is to be consumed off the premises where it is sold3615/4.03. Taxes. 70 lLCS 361514.03



### (other than alcoholic beverages, soft drinks and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, dmgs, medical appliances and insulin, urine testing materials. syringes and needles used by diabetics, and I% ofthe gross receipts from other taxable sales made in the course ofthat business. In DuPage, Kane, Lake, McHenry, and Will Counties, the tax rate shall be 0.75%> ofthe gross receipts from all taxable sales made in the course of that business. The tax imposed under this Section and all civil penalties that may be assessed as an incident thereofshall be collected and enforced bythe State Department ofRevenue. The Department shall have full power to administer and enforce this Section: to collectalltaxes andpenalties so collectedinthemannerhereinafterprovided: andtodetermineallrightsto credit memoranda arising on accountofthe erroneous payment oftax orpenalty hereunder. In the administration of, and compliance with this Section, the Department and persons who are suqject to this Section sha!l have the same rights, remedies, privileges, immunities.powers and duties, and besubjectto thesameconditions, restrictions, limitations, penalties, exclusions,exemptions and definitions ofterms, and employ the same modes ofprocedure, as are prescribed in Sections 1, Ia, Ia-1, 1 c, Id, Ie, 1f, Ii, lj, 2 through 2-65 [FN41 

### (in respect to all provisions therein other than the Staterate oftax}, 2e, 3 [Fl\5] (except as to the disposition oftaxes and penalties collected), 4, 5, Sa, Sb, 

### Sc, Sd, Se, Sf, 5g, Sh, Si, 5j, 5k, 5/, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and !3 ofthe Retailers' Occupation Tax Act [FN6] 

### and Section 3-7 ofthe Unifonn Penalty and Interest Act, [FN7] as fully
as ifthoseprovisions were set forth herein.
Persons subject to any tax imposed underthe authority granted in this Section may reimburse themselves for their seller's tax liabilityhereunderby separatelystatingthe tax as an additional charge,which charge may be stated in combination in a single amount with State taxes that sellers are required to collect under the Use Tax Act, [FN8] under any bracket schedules the Department may prescribe.
Wheneverthe Department detennines that a refund shouldbe made underthis Section to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount specified, andto thepersonnamed, inthe notification from the Department. TI1erefund shallbepaidbythe State Treasurerout ofthe Regional Transportation Authority tax fund establishedunderparagraph (n) ofthis Section.
!fatax is imposed tmder this subsection (e), a tax shall also be imposedunder subsections (f) 

### and (g) ofthis Section.
Forthe purpose ofdetennining whether atax authorized underthis Section is applicable, a retail salebya producerofcoal or othermineral mined in Illinois, is a sale atretail atthe placewhere the coal or othermineral minedin Illinois is extracted from the earth. This paragraph does not apply to coal orother mineral when it is deliYered or shipped bythe sellerto the purchaser at apoint outside Illinois so that the sale is exempt underthe Federal Constitution as asale in interstate or foreign commerce. No tax shall be imposed or collected under this subsection on the sale ofamotor vehicle in this Stateto a resident ofanother state ifthatmotor vehiclewill notbe titled in this State. Nothing inthis Sectionshallbe constrnedto authorizetheRegionalTransportationAuthorityto imposeataxupontheprivilege ofengagingin anybusinessthatunderthe Constitutionofthe UnitedStatesmaynotbemadethesubjectoftaxationbythis State. (f) If

### a tax has been imposed under paragraph (e), a Regional Transportation Authority Service OccupationTax shall also be imposedupon all persons engaged, in the metropolitan region in the business ofmaking sales ofservice,who as an incidentto making the sales ofsen·ice, transfer tangible personal property within the metropolitan region, either in the fonn oftangible personal property or in the form ofreal estate as an incident to a sale ofservice. In Cook County, the tax rate shall be: (1) 1.25% ofthe serviceman's cost price offood prepared for immediate consumption and transferred incident to a sale ofscrvice subject to the sen,ice occupation tax byan entity licensed under the Hospital Licensing Act [FN9] orthe Nursing Home Care Act [FN

### JO] that is located in the metropolitan region; (2) 1.25% ofthe selling price offood for human consumption that is to be consumed offthepremises where it is sold (otherthan alcoholic beverages, soft drinks and food thathas beenprepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used bydiabetics; and (3) I%ofthe selJing price from othertaxable sales oftangible personal 

### (

### 3615/4.03. Taxes, 70 ILCS 3615/4.03

property transferred. In DuPage, Kane, Lake, McHenry and Will Counties the rate shall be 0.75% ofthe selling price ofall tangiblepersonal propertytransferred.
The tax imposed under this paragraph aud all civil penalties that maybe assessed as an incident thereofshall be collected and enforcedbythe State Department ofRe\'enue. The Department shall have full powerto administerand enforce this paragraph; to collect all taxes andpenalties due hereunder; to dispose oftaxes and penalties collectedin the mannerhereinafterprovided: and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration ofand compliance with this paragraph, the Department andpersons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restiictions, limitations, penalties, exclusions, exemptions and definitions of terms, and employ the same modes ofprocedure, as are prescribed in Sections la-!, 2, 2a, 3 through 3-50 [FNlI] (in respect to all provisions therein otherthan the State rate oftax), 4 (FNl::!] (exceptthat the reference to the State shall be to the Authority), 5, 7, 8 [FNl3] (except that thcjurisdictionto which the tax shall be a debt to the extent indicated in that Section 8 shall be the Authority), 9 [FN"l4} (except as to the disposition oftaxes and penalties collected, andexcept thatthe returned merchandise credit for this tax maynot be taken against any State tax), JO, 11, 12 [FN\5] (excepl the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), [FN16} 13 [FN17J 

### ( except that any reference to the State shall mean theAuthority), the first paragraph ofSection 15, !6, 17, 18, 

### J9 and 20 ofthe Service Occupation Tax Act [FN 

### 18] and Section 3-7 ofthe Unifom1 Penalty and Interest Act, as fully as ifthose provisions were setforth herein.
Persons subjectto anytaximposedundertheauthoritygrantedinthisparagraphmayreimbursethemselvesfortheirserviceman's tax liabilityhereunderby separatelystating thetax as an additional charge, thatchargemaybe stated in combination in a single amount with State tax that servicemen are authorized to collect under the Service Use Tax Act, (Th'l9] under any bracket schedules the Department mayprescribe.
Whenever the Department determines that a refond should be made under this paragraph to a claimant instead ofissuing a ( creditmemorandum,the Departmentshallnotifythe State Comptroller,who shall causethe warranttobe drawn forthe amount specified, and to the personnamed in the notification from the Department. Therefond shallbepaid bythe State Treasurerout ofthe Regional Transportation Authoritytax fund established underparagraph (n) ofthis Section. Nothing in this paragraph shall be construedto authorize the Authority to impose a tax upon the privilege ofengaging in any business thatunderthe Constitution ofthe United Statesmaynotbemade the subject oftaxation bythe State. (g) If

### a tax has been imposed underparagraph (e), a tax shall also be imposed upon the privilege ofusing in the metropolitan region, any item oftangible personal property that is purchased outside the metropolitan region at retail from aretailer, and that is titled orregistered with an agency ofthis State's government. In Cook County the tax rate shall be ]% 

### ofthe selling price ofthe tangible personal property, as" selling price" is defined in the Use Tax Act. In DuPage, Kane, Lake, Mcl-lemy and Will counties thetax rate shall be0.75% ofthe sd!ingprice ofthe tangible personal property, as "sellingprice·· is defined in the Use Tax Act. The tax shall be collected from persons whose Illinois address for titling orregistration purposes is given
as being in the metropolitan region. The tax shall be collected bythe Department ofRevenue for the Regional Transportation Authority. Thetax mustbepaidtothe State, oranexemptiondetem1inationmustbe obtained from theDepartmentofRevenue, before the title orcertificate ofregistration for the propertymay be issued. Thetax orproofofexemption may be transmitted to the Departmentbywayofthe State agency with which, or the State officerwithwhom, the tangiblepersonal property must be titled or registered ifthe Depmiment and the State agency orState officer determine that this procedure will expedite the processingofapplications for title or registration.
The Department shall have foll power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose oftaxes, penalties and interest collected in the manner hereinafter provided; aud to determine all rights to 

### credit memoranda or refonds arising on account ofthe erroneous payment oftax, penalty or interest hereunder. In the administration ofand compliancewith this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions of tem1s and employ the same modes of procedure, as are3615/4.03. Taxes,70 ILCS 361514.03



### prescribed in Sections 2 [FN201 (except the definition of"retailer maintaining a place ofbusiness in this State"), 3 through 3~80 [Fl\'21] (except provisions pertaining to the State rate oftax, and except provisions concerning collection orrefunding ( ofthe lax by retailers). 4, 

### 11, 12. 12a. 14, 15, 19 [Fl'\22] (except the portions pertaining to claims byretailers and except the last paragraph concerningrefunds), 20, 21 and 22 ofthe Use Tax Act, [FN23] and are not inconsistentwith this paragraph, as fully as ifthose provisionswere setforth herein.
Whenever the Department detennines that a refund should be made under this paragraph to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the orderto be drawn for the amount specified, and to the person named in thenotification from the Department. Therefundshall be paidbythe StateTreasurerout ofthe Regional Transportation Authority tax fund establishedunderparagraph (n) ofthis Section. (h) The Authoritymayimpose areplacementvehicletax of$50on anypassengercaras defined in Section l~l57 ofthe lllinois VehicleCode [FN24] purchasedwithinthemetropolitanregionby oronbehalfofan insurancecompanytoreplace apassenger car ofan insured person in settlement ofa total loss claim. The tax imposed may not become effective before the first day ofthe month following the passage ofthe ordinance imposing the tax and receipt ofa certified copy ofthe ordinance by the DepartmentofRevem1e. The Department ofRevenue shall collectthe tax fortheAuthorityin accordancewith Sections 3-2002 and 3-2003 oftheI11inois Vehicle Code. [F:\25]
The Department shall immediately pay overto the State Treasurer, ex officio, as trnstee. all taxes collected hereunder. On or beforethe 25th day ofeach calendarmonth, the Department shall prepare and certify to the Comptroller the disbursement of stated sums ofmoneyto the Authority. The amountto be paid to the Authority shall be the amountcollectedhereunderduring the second preceding calendarmonthbytheDepa1tment, lessany amountdetenninedbytheDepartmentto be necessaryfor the paymentofrefunds. Within 10 days afterreceiptbythe ComptrollerofthedisbursementcertificationtotheAuthorityprovided forinthis Sectionto be given to the Comptrollerby the Department, the Comptroller shall causetheorders to bedrawn forthat amount in accordance with the directions contained in the certification. 

### (i) The Board may notimpose any othertaxes except as 

### itmayfrom time to timebe authorized bylaw to impose. (j) 

### A certificate ofregistrationissuedby the State Department ofRevenue to aretailerunderthe Retailers' OccupationTax Act
orunderthe Service OccupationTax Act [FN26] shaH permit the registrant to engage in a business that is taxed under the tax imposed under paragraphs (b), 

### (e), (f) 

### or (g) ofthis Section and no additional registration shall be required underthe tax. A certificateissued under the Use Tax Actorthe Service Use Tax Act shall be applicable withregard to anytax imposedunder paragraph {c) ofthis Section. (k) Theprovisions ofanytax imposedunderparagraph{ c) ofthis Section shall confonn as closely asmaybepracticableto the provisions oftheUseTax Act, includingwithout limitation confom1ity asto penaltieswithrespectto the tax imposedand as to the powers ofthe State DepartmentofRevenue to promulgate and enforcerules and regulations relating to the administration and enforcement ofthe provisions ofthe tax imposed. The taxes shallbe imposed only on use within the metropolitan region and at rates as provided intheparagraph. (!) 

### The Boardin imposing any tax as provided in paragraphs (b) and (c) ofthis Section, shall, after seeking the advice ofthe StateDepartmentofRevenue, provide means forretailers, users orpurchasers ofmotorfuel for purposes other thanthosewith regard towhichthe taxes maybeimposed as provided inthose paragraphs to receive refunds oftaxes improperlypaid, which provisions maybe at variancewith the refundprovisions as applicableunderthe Municipal Retailers OccupationTaxAct. The State Department ofRevenue may provide for certificates ofregistration for users orpurchasers ofmotor fuel for purposes other than those with regard to which taxes may be imposed as provided inparagraphs (b) and (c) ofthis Sectionto facilitate the rep01ting andnontaxabi!ity ofthe exempt sales oruses. (m) Any ordinanceimposing ordiscontinuing anytaxunderthis Section shall be adoptedand acertifiedcopythereoffiled with theDepartmentonorbeforeJune 1,

### whereupontheDepartmentofRevenue shallproceedto administerand enforce this Section
on behalfofthe Regional Transportation Authority as ofSeptember 

### J next following such adoption and filing. Beginning 

## (

### ( 3615/4.03. Taxes,70 !LCS 3£1514.03

January I, J992, an ordinance orresolution imposing ordiscontinuing the tax hereunder shall be adopted and a certified copy thereoffiled with the Department on orbefore the first day ofJuly, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofOctobernext following such adoption and filing. BeginningJanuary], 1993, an ordinance or resolution imposing, increasing, decreasing, ordiscontinuing the tax hereunder shall be adopted and a certified copythereoffiled withthe Department, whereuponthe Department shall proceedto administer and enforcethis Section as of the first dayofthe first monthto occurnotlessthan

### 60 daysfollowing suchadoptionandfiling. Any ordinance orresolutionof the Authority imposing a tax underthis Section and in effectonAugust 1, 2007 shaU remain in full force and effect and shall be administeredbytheDepartment ofRevenue underthe tenns and conditions andrates oftax establishedby such ordinance
or resolutionuntil the Departmentbegins administering and enforcing an increased lax underthis Section as authorizedbythis amendatory Actofthe 95th General Assembly. The tax ratesauthorizedbythis amendatory Act ofthe 95thGeneral Assembly
are effective onlyifimposedbyordinance ofthe Authority. (n)The State DepartmentofRevenue shal!, uponcollecting anytaxes asprovidedinthis Section,paythetaxesoverto the State Treasureras trustee for the Authority. The taxes shall beheld in a trust fund outside the StateTreasury. On orbefore the 25th day ofeachcalendarmonth.the StateDepartmentofRevenue shallprepareandcertifyto theComptrollerofthe StateofIllinois andto the Authority {i) the amount oftaxes collected in each County otherthan CookCounty in the metropolitanregion, (ii) the amount oftaxes collectedwithin the City ofChicago, and (iii) the amountcollectedinthatportion ofCookCounty outside ofChicago, each amountless the amountnecessaryforthepaymentofrefunds to taxpayers located inthose areas described in items (i), (ii), and (iii). Within 10daysafterreceiptbytheComptrollerofthe certification oftheamounts, the Comptrollershall
causean orderto bedrawn for thepaymentoftwo-thirds ofthe amounts certified in item (i) ofthis subsectionto the Authority and one-third ofthe amounts certified in item (i) ofthis subsection to the respective counties otherthan CookCounty and the amount certified in items (ii) and (iii) ofthis subsection to the Authority.
In addition to the disbursement required by the precedingparagraph, an allocation shall be made in July 

### 1991 and each year thereafter to the Regional TransportationAuthority. The allocation shall be madein an amount equal to the average monthly distribution during the precedingcalendaryear(exch1ding the

### 2months oflowestreceipts) andthe allocation shall include the amount ofaverage monthly distribution from the Regional TransportationAuthority Occupation and Use Tax Replacement Fund. The distribution madein July 

### 1992 and eachyearthereafterunder this paragraph and the preceding paragraph shall be reducedbytheamountallocated anddisbursed underthisparagraphintheprecedingcalendaryear. TheDepartmentofReYenue shall prepare and certifyto the Comptrollerfor disbursement the allocations madein accordance withthis paragraph. (o) Failure to adopt a budget ordinance orotherwise to complywith Section4.01 ofthis Act orto adopt a Five-year Capital Program or otherwiseto complywithparagraph (b) ofSection

### 2.0I ofthis Act shall not affectthe validity ofanytax imposed bytheAuthority othenvise in confom1ity with law. (p) Atnotime shall apublic transportation tax ormotorvehicleparkingtax authorized underparagraphs (b), (c) and (d) ofthis Section be in effect at the same time as any retailers' occupation, use or service occupation tax authorized underparagraphs (e), {f) and (g) ofthis Section is in effect. Anytaxes imposedunderthe authority providedinparagraphs (b), (c) and (d) shallremain in effect onlyuntil the time as any tax authorized by paragraphs (e), (f) or (g) ofthis Section are imposed and becomes effective. Once 

### any tax authorized by paragraphs (e),(f)or(g)

### is imposedthe Boardmaynot reimposetaxesas authorizedinparagraphs (b), (c) and(d) ofthe Section unless any tax authorizedbyparagraphs (e), (f) or (g) ofthis Section becomes ineffective by means otherthan an ordinance ofthe Board. (q) Any existing rights, remedies and obligations (including enforcementby the Regional Transportation Authority) arising under anytax imposed underparagraphs (b), (c) or (d) ofthis Section shall not be affected by the imposition ofa tax under paragraphs (e), (f) or (g) ofthis Section. CREDIT($)3615/4.03. Taxes. 70 lLCS 361514.03



### P.A. 78-5, 3rd Sp.Sess., Part

### I, art. 

### IV,§ 4.03, eff. Dec. 12, 1973. Amended 

### by P.A. 78-1177, 

### § 1, eff Aug. 29, 1974; 

### P.A. 78-1267. § 

### I,eff. Dec. 30, 1974; P.A. 79-1454, §53, eff. Aug. 31, 1976; P.A. 8

### I-3.2nd Sp.Sess., § 

### 11, eff Sept. 19, 1979;

### P.A. 81-1379, §

### 7, eff. Aug. 12, 1980; P.A. 82-683, §7, cff. 

### Nov. 12, 

### 1981; P.A. 82-1013, 

### § 8, eff. Sept. 17, 1982; P.A. 

### 83-114, § 7. eff. Aug. 19, 1983; P.A. 

### 83-886, § 

### I, eff. Nov. 9, 1983; PA 83-1353, §5, eff. Sept. 8, 1984; P.A. 83-!362,Art. II,§ 127, eff. Sept. 11, 1984; P.A. 85-1135. Art. 

### 11, 

### § 6. eff. Jan. l. 

### 1990; P.A. 

### 86-928. Art. 

### 3, 

### li 5, eff. Jan. l, 1990; P.A. 86-1475. A11. 

### 5, 

### ii 5-11, 

### c-ff. Jan. 10, 199l; P.A. 86-1481, Art. 10, 

### § l, 

### eff. Jan. 14. 1991; P.A. 87-205. A1t. 

### 2. § 2-7, 

### eff. July 1. J

### 992; P.A. 87-205. Alt. 

### 4, §4-6.eff Jan. l. 

### 1994: P.A. 

### 87-435. Att. 2. 

### ii 2-27. eff. Sept. JO, 1991: P.A. 87-876. 

### ii 2. !!ff. 

### Jan. l, 1993; P.A. 87-895. Art. 

### 2. § 2-64, 

### df. Aug. 

### 14. 1992. Re-enacted 

### by P.A. 91-51. 

### § 160, 

### dl June 30. 1999. Amended

### byP.A. 92-221. 

### §910. eff. Aug. 

### 2, 200l;

### PA 92-651. §

### 36, etI July ll.2002; P.A. 93-l068. 

### §

### 10,cff. Jan. 15, 2005; 

### P.A. 95-708. ;i 20. 

### eff. Jan. 18, 2008.
FORMER 

### REVISED STATUTES ClTATJON Former!)' lll.ReY.Stat.1991, ch. I11 #,,:

### 704.03.

[FNl}35 

### ILCS 50511 et seq. [FN2]65 

### ILCS 5'8-11-1 et seq. [FN3]35 

### ILCS 120/1 et seq. [FN4]35 

### JLCS 120:1, 

### i:?:Oila, J20'la-1. 120 le, J20'Jf, !20·Ji, 120·\j, 1201210 

### 120'2-65. [FN5]35 

### ILCS l

### 20i2c, 1201

### 3. [Fl\6]35 TLCS 120.14, 

### l:?:0-'5, l20'5a, 120·5b, 120.:5c, 120/d. 120·5c, 1201f, l20 1

### 5g, 120 1

### 5h, l20''5i, 120/5.i, 120·5k, 120·5/, 120/6, 120,..6a, 120.,6b, 120:6c, 1201

### 7.120'1', 12019.1201!0, !20-'1 I, 120 1

### 12,and 1201\3. [Ft\7]35 

### ILCS 735/3-7. [Ft\8]35 TLCS I05!1 et seq. [Ft\9]210 ILCS 85/l et 

### seq. [FN 

### 10)210 llCS4511-101 

### et seq. [Ft\!1]35 

### ILCS \20'la-1. 120'2, 120 2a, 120 3 to !20.·3-50. [FN12]35 ILCS 120/4. [FN!3]35 

### ILCS 120:'5, 

### 120!7, 120:'8. [FN14]35 ILCS 12019. [FN!5]35 ILCS 120/10, 120-'ll, 120/12. [FN16]35 ILCS l:W/2b. [FN!7]351LCS 115/313. [FN !8}35 

### ILCS 115! 15, 115/!7, 115/18, l 15119, and 115/20. [FN !9]35 \LCS 110 1

### l et seq. [FN20]35 ILCS 105.12. 

### I



## (3615!4.03.Taxes. 70 ILCS 361514.03



### [FN21]35 llCS 

### 105/3 to 105·"3-80. [FN22]35 JLCS 105'4. JOSiJ J, 

### l05/J2, 105, 

### 12a, 105·14, l05il5, 

### 1051!9. [FN23J35 ILCS 

### 105120, 105.·20, 105:21 

### and 

### !05 1 

### 22. [FN24]6251LCS 511-157. 

### [FN25]625 llCS

### 5'3-2002 

### and 5/3-2003. 

### [Fl\26)35 JLCS Jl

### 5, J et 

### seq. PAGE
HISTORJCAL AND STATUTORY NOTES


### P.A. 7S-l l

### 77 inserted "off-street" and "atwhich a fee is charged" in subd. (d).
P.A. 78-1267 deleted second sentence ofsubd. (a) which read "All taxes authorized by this paragraph may be imposed in additionto anyother taxes ofwhateverkind." and added the last sentence to subd. (d).
P.A. 79-1454, the 1976 Revisory Act, declared in its title that it 

### related to nonsubstantive revision, renumbering orrepeal of sections necessitated by two or more Acts enacted by the 79th General Assembly and ofthose sections so affected by two or more Acts enactedby the 78th General Assemblywhich multiple amendment was not resolved by the l

### 974 Revisory.
P.A. 81-3, 2nd Sp.Sess. made the fo1lowing changes: inserted subds. (e) through (g) and redesignated the subsequent subdivisions, in provisions later contained in subd. 

## U), substituted "paragraphs" for "paragraph" and inserted "(e), (f) 

### or (g)'', atthe endofprovisions latercontainedin subd. (m), adr.lcd the language beginning "whereupon,

..inprovisions latercontained in sub. (o), substituted "affect"for '·effect," and added provisions latercontained in subds. (p) and (q).
P.A. 81~1379 incorporated the changes made by P.A. 81-3, 2nd Sp.Sess. and, in addition, inserted "and shall include the exemption offarm machinery and equipment unless the corporate authorities provide othenvise by ordinance" in the first paragraphsofsubds. (e) and (f)

### and thesecond paragraph ofsubd. (g).
P.A. 82-683, in subd. (e), substituted "exemptions"for "exemption" and inserted "distillation machinery and equipment, and graphicartsmachineryandequipment"inthelastsentence; andmadethe:identical substitutionand insertion inthelastsentence ofsubd. (f) 

### and the last sentence ofthe second paragraph ofsubd. (g).
P.A. 82-1013 incorporatedthe amendmentbyP.A. 82-683 and,inaddition, in subd. (e), inthelastsentenceofthefirstparagraph, inserted "exemptions (f) 

### and (g) and"; in subd. (f), 

### in the last sentence ofthe first paragraph, inserted "exemptions (d-2) and (d-3) and"; in subd. (g), inthe second sentenceofthesecondparagraph, inserted "theinapplicabilityofthe taxto certaintangible personal propertyofcommon carrierbyrail as provided in paragraph (g) and''.
P.A. 83-114 inserted subd. (h) and redesignated formersubds. (h) to (p) as (i) to (q).
P.A. 83-886, in subd. (a) substituted "9" for "two-thirds" ofthe then directors, and, in subd. (m) inserted the requirement for certification oftaxes collectedin each County otherthan Cook.
P.A. 83Hl353, which incorporated the amendments 

### by P.A. 83-114 and P.A. 83-886, substituted references to "paragraph (n) ofthis Section·' for references to "paragraph (m) ofthis Section"; in subd. (h), in the first paragraph, in the first sentence, substituted "passengercar" forreferences to "motorvehicle" and "vehicle"; substituted "1-157'' for "1-146"; inserted "within the metropolitanregion"; substituted thepresent second sentence for aformer secondsentencewhich read, "Within 30 days of361514.03. Taxes, 70 ILCS 361514.03



### passage ofan ordinance imposing such tax. the Authority shall forward a certified copy ofsuch ordinance to the Department ofRevenue.": and. inthe second paragraph, substituted "theAuthority" for "each municipality".
P.A. 83-1362, Art. II,

### the 1984 Revisory Act, which incorporated the amendments by P.A. 83-114 and P.A. 83-886, provided in§ 0.1:
"This Article provides for the nonsubstantive revision or renumbering or repeal of Sections of Acts necessitated by the amendment, addition or repeal ofSections by two or more Public Acts ofthe 83rd General Assembly, whichmultiple action was not resolved by one ofthe Acts ofthe 83rd General Assembly affecting the particular Section."
P.A. 85- J

### 135, in subd. ( e), rewrote the firstparagraph which prior thereto read:
"TheBoardmayimposeaRegionalTransportationAuthorityRetailers'OccupationTaxuponallpersonsengagedinthebusiness ofselling tangible personal property at retail in the metropolitan region at a rate not to exceed 1% 

### ofthe gross receipts from such sales made in the course ofsuch business within the County ofCook and 

### Y..% ofthe gross receipts from such sales made in the course ofsuch business within the Counties ofDuPage, Kane, Lake, McHenry and Will. Thetax imposed pursuant to this Section and all ciYil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department ofRevenue. The Depmiment shall have full power to administer and enforce this Section; to collect all taxes and penalties so collected inthemannerhereinafterprovided; andto determinea11 rightsto creditmemoranda arising onaccount of the erroneouspayment oftax orpenaltyhereunder. Inthe administration of, andcompliancewith, this Section,the Department and persons who are subjectto this Section shall have the same rights, remedies, privileges, immunities, powers and duties, andbe subjectto the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions ofterms, and employ the same modes ofprocedure, as are prescribed in Sections I. 

### la, le, 2 (in respect to all provisions therein other than the State rate oftax and shall include exemptions (f) 

### and (g) and the exemptions offann machineryandequipment, distillation machinery and equipment, and graphic arts machinery and equipment unless the corporate authorities provide otherwise by 

### (

resolution), 2c, 3 {except as to the disposition oftaxes and penalties collected and except for the provision allowing retailers a ( deduction from the tax to CO\'ercertain costs), 4, 5, 5a, Sb, 5c, 5d. 5e, Sf, 5g, 5h, 5i, Sj, 6, (exceptthatcredit memoranda issued hereunder may not be used to discharge any State tax liability), 6a, 6b, 6c. 7, 8, 9. 10, 11, 12, 13 and 13!1:, ofthe 'Retailers' Occupation Tax Act', as now or hereafter amended, as fully as ifprovisions contained in those Sections ofthe 'Retailers' Occupation TaxAct' were set forth herein.":
inthe secondparagraph, deleted "andwithany taxesfor\Vhich sellers maybe liableunderthe 'MunicipalRetailers'Occupation TaxAct', or the 'County Retailers' Occupation Tax Act' "following" 'UseTax Acf ", and inserted the fourth paragraph: in subd. (f), 

### rewrote the firstparagraph whichpriorthereto read:
"The Board ofthe Authoritymay impose atax upon all persons engaged, inthe metropolitan region. in thebusiness ofmaking salesofservice,who, as an incidenttomakingsuch sales ofservice, transfertangiblepersonalpropertywithinthemetropolitan region, either in the fonn oftangible personal property or in the fom1 ofreal estate as an incident to a sale ofservice. The tax rate shall not exceed 1% ofthe cost price oftangible personal property so transferred within the County ofCook and Y.. % 

### ofthe cost price oftangible personal property so transferred within the Counties ofDuPage, Kane, Lake, McHenry and Will. The tax imposed pmsuant to this paragraph and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department ofRevenue. The Department shall have fu11 power to administer and enforce this paragraph; to collect all taxes and penalties due hereunder: to dispose oftaxes and penalties so collected in the manner hereinafter provided: and to detennine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penaltyhereunder. In the administrationof, and compliancewith, this paragraph, the Department and persons who are subject to this paragraph shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions and definitions oftem1s, and employ the same modes of procedure, as are prescribed in Sections 2 (except that the reference to State in the definition ofsuppliermaintaining aplace ofbusiness in this State shall meanthe Authority), 2a, 3 (in respect to all provisions therein other than the State rate oftax and shall include exemptions (d-2) and (d-3) and the exemptions offarm machinery and equipment, distillation machinery ( and equipment, and graphic arts machinery and equipment unless the corporate authorities provide otherwise by resolution),3615/4.03.Taxes. 70 ILCS 361514.03



### 4 (except that the reference to the State shall be to the Authority), 5, 7, 8 (except that thejurisdictionto which the tax shall be a debt to the extentindicated in that Section 8 shallbe the Authority), 9 (except as to the disposition oftaxes andpenalties collected, and except for the provision allowing suppliers a deduction from the tax to cover certain costs, and except that the returned merchandise credit for this tax may not be taken against any State tax), 10, II, 12 (except the reference therein to Section2b ofthe Retailers' OccupationTax Act), 13 ( except that any referenceto the State shall mean the Authority), the first paragraphofSection 15, 15'1:,, I6, 17 ( exceptthat creditmemoranda issuedhereundermaynotbeusedto dischargeanyStatetax liability), 18, 19 and 20 ofthe 'Service Occupation Tax Acf, as now orhereafteramended, as fully as ifprovisions contained inthose Sections ofthe 'Service Occupation Tax Act' were set forth herein.";
and in the secondparagraph deleted "and anytax forwhich servicemenmaybe liableunderthe 'Municipal ServiceOccupation Tax Act', or 'County Service Occupation Tax Act' ., following " 'Service Use Tax Act' "; in subd. (g), substituted 

### "Ifa tax has been imposedpursuant to paragraph (e), a ta.'I'. shall also be imposed'. for "The Board ofthe Authority may impose a tax··, substituted. "of%%'' for ·'not to exceed 1%", 

### substituted "within" for "with" preceding "the County ofCook", and deleted "notto exceed''preceding "1/i%)'; 

### in the second paragraph, deleted "except the paragraph concerning the conveying of news, and'' following "Sections 2("; and deleted "andexcepttheprovision concerningbuilding materials and fixtures and shall include the inapplicability ofthe tax to certain tangible personal property ofcommon carrierby rail as provided in paragraph (g) and the exemptions offam1 machine1y and equipment, distillation machinery and equipment, and graphic arts machinery and equipment unless the corporate authorities provide otherwise byresolution" following "tax by retailers"; in the second paragraph ofsubd. (h), deleted "less 2% 

### ofsuch balance, which sum shall beretained bythe State Treasurerto coverthe costs incurred by the Department in administering and enforcing this Section as provided herein. The Department at the time of each monthly disbursement to the Authority shall prepare and certify to the Comptrollerthe amount, 

### so retained by the State Treasurer, tobepaid intothe General Revenue Fund ofthe StateTreasury" following "monthbytheDepartment"; deleted "and the General Revenue Fund" preceding "provided"; and substituted "such amount" for "the respective amounts"; and insubd. (m), inserted ·'ordiscontinuing" and "second·'. ( For legislative intent and effect ofP.A. 85-1135, see note following 65 ILCS 518-11-l.
P.A. 86-928, in subd. (e), inserted "Ii, lj"; in subd. (e) following "6", in subd. (f) 

### following "17", and in subd. (g) following "'22", 

### deleted "(except that credit memoranda issued hereunder may not be used to discharge any State tax liability)"; and re\\Tote subd. (m)which priorthereto read: ·'Anyordinanceimposingordiscon!inuinganytaxunderthis Sectionoreffectingachangeintheratethereofshallbeeffectiveon thefirst dayofthesecondcalendarmonthnextfollowingthepublicationofsuchordinanceinanewspaperofgeneral circulation inthemetropolitanregionandthefiling ofacertified copyofsuchordinancewiththe State DepartmentofRevenue,whereupon the Department ofRevenue shall proceed to administer and enforce this Section on behalfofthe Regional Transportation Authority as ofthe effective date ofthe ordinance or resolution."
P.A. 86-1475, Art. 5, resectioned§ 3ofthe UseTaxAct,§3ofthe ServiceUseTaxAct,§3 ofthe ServiceOccupationTaxAct, and§ 2 ofthe Retailers' Occupation Tax Act. For intent ofP.A. 86-1475, Art. 5, see Historical and Statutory Notes following 35 ILCS 105'3.
P.A. 86-1481, which incorporated the amendment by P.A. 86-928, in subd. (n), added a paragraph relating to allocations to the Regional Transportation Authority.
P.A. 87-205,Art. 2,in the subdivision relating lo adopting and filing a certified copyofanordinance orresolution imposing or discontinuing thetax hereunder, oreffectingachangeintherate thereof, added provisions coveringtherespectivetime periods beginning with Jan. I, 1992 and beginningwith Jan. I, 1993.
P.A 87-205,Art.4,revisedstatutoryreferencesand languagerelatingto the enactmentofthe UniformPenaltyandInterestAct. Section 5-1 ofP.A. 87-205, approwd September 3. 1991, as amended by P.A. 87-1189, Art.],§4,provides:361514.03. Tax:es, 70 ILCS 361514.03

"Effectivedate. Articles 3 and 4 take effectJanuary l, 1994.Articles 1and 5take effectuponbecominglaw."'
P.A. 87-435, the First 1991 Revisory Act, provides in Article 2 for the revision and renumbering ofcertain Sections ofActs which havebeenaddedoramendedbymore thanoneActofthe 86thGeneralAssembly; incorporates amendmentstorepealed Acts into successorlaws passedbythe same General Assembly; corrects errors, revises cross-references and deletes obsolete tex:t in such Sections contained inPublic Actsthrough P.A. 86-1490.
P.A. 87-876, which incorporated the amendments by P.A. 87-::!05 and P.A. 87-435, in subsec. (e), in the first paragraph, substituted the first through third sentences for the fom1er first sentence, which read, "The Board may impose a Regional Transportation Authority Retailers' Occupation Tax upon all persons engaged in the business of selling tangible personal property at retail in the metropolitan region at a rate of I% ofthe gross receipts from sales offood for human consumption whichis to beconsumedoffthe premises whereitis sold (otherthan alcoholic beverages, softdrinks andfoodwhichhasbeen prepared for immediate consumption) andprescription and nonprescription medicines, drngs, medical appliances and insulin, urine testing materials, syringes and needles usedby diabetics. and 

### % 0 

### ,'o ofthe grossreceipts from othertaxable sales made in the courseofsuchbusiness withinthe CountyofCook, and 1 /, ofthegross receipts from all taxable sales made in the courseof suchbusinesswithin the Counties ofDuPage, Kane. Lake, McHenry and Will."; in subsec. (f),in the first paragraph, rewrote the second sentence, which prior thereto read, "'The tax rate shall be I% ofthe selling price offood for human consumption which is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin. urine testing materials, syringes and needles used by diabetics, and'!, ofthe selling price from othertaxable sales of tangible personalproperty so transferredwithinthe CountyofCook and 

### Y4% ofthe sellingprice oftangible personal property so transferredwithintheCountiesofDuPage, Kane, 1.nke,McHenryandWill'"; insubsec. {g), inthefirstparagraph,substituted the first through third sentencesforthefom1er first sentence,whichread, "Ifa tax hasbeenimposedpursuantto paragraph (e),
atax shall also beimposed upon theprivilege ofusing,inthemetropolitan region, anyitem oftangiblepersonalpropertywhich is purchased outside the metropolitan region at retail from a retailer, and which is titled or registered with an agency ofthis ( State'sgovernment, at arateof

### Y4% ofthe sellingprice ofsuchtangiblepersonalpropertywithin theCountyofCook, as ·'selling price"' is defined in the Use Tax Act, and %% ofthe seHing price ofsuch tangible personal property within the Counties of DuPage, Kane, Lake, McllcnryandWill, as "sellingprice"is definedintheUseTaxAct."; andmade nonsubstantive changes.
P.A. 87-895, the First 1992 General Revisory Act, provides in Article 2 for the revision and renumbe1ing ofcertain Sections ofActs whichha\'e been added or amendedbymore than oneAct ofthe 87thGeneralAssembly: incorporates amendments to repealed Acts into successor laws passedby the same General Assembly; corrects errors,revises cross-references and deletes obsolete text in suchSections contained in Public Acts through P.A. 87-855.
P.A. 91-5l re-enacted this section; see text of35 ILCS 165· l

### Oregarding the re-enactment.
P.A. 9::!-221 inserted "RegionalTransportationAuthority Service Occupation", in the first sentence ofsubsec. (f).
P.A. 92-65l,the First2002 General Revisory Act, amendedvarious Acts to delete obsoletetext, to correctpatent and technical errors, to revise cross references, to resolve multiple actions in the 9lst and 92nd General Assemblies and to make certain technical corrections inP.A. 91-937 through P.A. 92-520.
P.A. 93-1068, § 20, inserted thepenultimateparagraph ofsubsec. (e).
P.A. 95-708, § 20, rewrote subsec. (a): in the first paragraph ofsubsec (e), increased the percentages ofgross receipts from ]%, 

### %%, and W/o, to 1.25%, 

### !%, and 0.75%, respectively: in the first paragraph ofsubsec (f) increased the percentages of gross receipts from I%, J%, %% and 

### '!,% to 

### J.25%, 1.25%, 1%, and 0.75%, respectively; in the first paragraph ofsubsec. (g), increasedthepercentages ofgrossreceipts from%% and%%, to 1% and0.75%,respectively; rewrote subsecs. (m)and(n); and in subsec. ( o), inserted ·'Capital". Priorto beingrewritten, subsecs. (a), (m), and (n) read:



### I1~,:t

### I 3615!4.03. Taxes,70 ILCS 361514.03



### "'(a) In order to carry out any ofthe powers or purposes ofthe Authority, the Board may by ordinance adopted with the
concun-cnceof9ofthethenDirectors,imposethroughoutthemetropolitanregion any orallofthetaxesprovidedinthis Section. Except as otherwiseproYided in this Act. taxes imposedunderthis Sectionand civil penalties imposed incidentthereto shall be collected and enforced by the State Department ofRevenue. The Department shall have the power to administer and enforce the taxes andto determine all rights for refimds for erroneous payments ofthetaxes." "{m)Anyordinanceimposing ordiscontinuinganytaxunderthis Sectionshallbe adoptedandacertified copythereoffiledwith theDepartmentonorbeforeJune l,whereupon theDepartmentofRevenue shallproceedto administerand enforcethis Section
on behalfofthe Regional Transportation Authority as ofSeptember 

### 1next following such adoption and filing. Begi1ming January I, 

### 1992, an ordinance orresolution imposing ordiscontinuing the tax hereunder shall be adopted and a certified copy thereoffiled with the Department on or before the first day ofJuly, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofOctobernext following such adoption and filing. BeginningJanuary I, 1993, an ordinance or resolution imposing or discontinuing the tax hereunder shall be adopted and a certified copy thereoffiled with the Department on or before the first day ofOctober, \\"hereupon theDepartment shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following such adoption and filing. •'(n) 

### The State Department ofRevenue shall, upon collecting any taxes as provided in this Section, paythe taxes over to the State Treasurer as trustee for the Authority. The taxes shaJI beheld in atrust fund outside the State Treasury. On orbefore the 25th day ofeach calendarmonth, the State Department ofRevenue shall prepare and certify to the Comptroller ofthe State of Illinois the amount to be paid to the Authority, which shall be the then balance in the fund, less anyamountdetem1ined bythe Departmentto benecessary for thepaymentofrefunds. The State Department ofRevenue shallalso certii).'tothe Authoritythe amountoftaxes collected in each County otherthan Cook County in the metropolitan region less the amountnecessaryfor the payment ofrefunds to taxpayers in the County. With regard to the County ofCook, the certification shall specify the amount oftaxes collectedwithin the City ofChicago less the amount necessaryfor the payment ofrefunds to taxpayers in the City of ( Chicagoand the amountcollected inthatportion ofCook Countyoutside ofChicago lesstheamount necessary forthe payment ofrefunds to taxpayers 

### in that portion ofCook County outside ofChicago. Within IO 

### days afterreceipt bythe Comptroller of the certification ofthe amount to be paid to the Authority, the Comptro!ler shall cause an order to be drawn for 

### the payment for the amount in accordance withthe direction in the certification.
"'In 

### addition to the disbursement required by the preceding paragraph, an allocation shall be made in July 1991 and each year thereafterto the Regional Transportation Authority. The allocation shall bemade in an amount equal to the average monthly distribution during thepreceding calendar year(excluding the 2 monthsoflowestreceipts} andthe allocationshall include the amount ofaverage monthly distribution from the Regional Transportation Authority Occupation and Use Tax Replacement fund. The distribution made in July 1992 

### and each yearthereafter underthis paragraph and the preceding paragraph shall 

### be reducedbytheamountallocatedanddisbursedunderthisparagraphintheprecedingcalendaryear. TheDepartmentofRevenue shall prepare and certifyto the Comptrollerfor disbursementthe allocations made in accordance withthis paragraph."'
House Bill 656 

### (P.A. 95-

### 708), which was passed in the General Assembly on January 10, 2008, was subject to an amendatory veto bythe Governor on January 1!, 

### 2008. Specific recommendations for change were accepted in the General Assembly on January 17, 

### 2008. Thebill was certified bythe Governorand becameeffective on January 18, 

### 2008.
PAGE
CROSS REFERENCES
Dist1ibutions from County and Mass Transit District Fund, see 30 ILCS 105/6z-20.
ADMINISTRATIVE CODE REFERENCES
Rules implementing and authorized by this section, see 86 Ill. Adm. Code 320.10! et seq., 330.101 et seq., 340.101 et seq.

### 361514.03. Taxes, 70 !LCS 361514.03

LAWREVIEW AND JOURNAL COMMENTARIES Fedcra!jurisdiction. 1983, 59 Chi.-KentL.Rev. 475. Regional Transportation Authority Act in northeastern !llinois. Joseph A. Tecson, 1975, 57 Chi.B.Rcc. 6.


### LlBRARYREFERENCES

Automobiles., 387. Taxation. 3611. \Vestlaw Topic Nos. 48A, 371. C.J.S. [\fotor\'ehicles**~~** 

### 1678 to 1683, l685 to 1686. PAGE
NOTES OF DECISIONS Bankruptcy 7 Government sei·vices 5 Jurisdiction JU 

### Motorfuel taxes

### J Nonresident sellers 4 Ordinances 6 Retailers' occupation tax 2 Standing 9 Title orregistration 8 Validity 1 PAGE

1. Validity
Provision ofRegional Transportation AuthorityAct authorizing imposition of1

### %gross receipts tax onretail sales inChicago, with a tax of 1 /4 

### ofgross receipts on similar sales in DuPage, Kane, Lake, McHenry and Will counties, is not unconstitutional; constitution unifom1ityrequirement does not mandate that the same rate apply in all counties. Walter Peckat Co. v. Regional Transp. Authority. 1980. 40 Ill.Dec. 797, 81 lll.2<l 12l,401 N.E.2d 28. Taxation 3627 Legislationwhichauthorizedcreation ofRegionalTransportationAuthorityandwhichgave thatAutholitythepowerto impose gasoline and parking taxes at a rate not to exceed 5 percent ofthe gross receipt for sale ofgasoline and which required a correlationbetween the level and nature offares or charges and the nature and standards oftransportation to be provided did not unconstitutionally delegate legislative poweroftaxation to the authority.lloogasian v. Regional Transp. Authority, l974, 58 lll.2d 117. 317 N.E.2d 534. appeal dismissed 95 S.ct. 298, 419 C.S. 988, 42 L.Ed.2d 261. Constitutional Law 2435; ;\lunicipal Corporations · 957(2)
PAGE



### 2. Retailers' occupation tax
Provisions in home rule municipal retailers' occupation tax act [ch. 24,

# i: 8-11-1], County Retailers' Occupation Tax Act [ch. 34,,:409-1 (repealed)], the Local Mass Transit District Act [ch. l l l #,

## ii 355.01], and the Regional Transportation Authority Act [ch. 111 #, 

## ~i 704.03} did not, by their own tcm1s, apply to sales in whichcoal is shipped or delivered to purchaser outof-state; therefore, provisions were not applicable when detem1ining whether coal transfer facility and barge company were



### r·-i>c:·:t 

### (



# I3615/4.03. Taxes, 70 ILCS 361514.03



### representatives ofpower companies within meaning ofuse tax provisions governingreceipt ofphysical possession oftaxable goods. Union Elec. Co. v. Department ofRe\enue. 1990. 144 Ill.Dec. 769, 136 lll.2d 385. 556 l\'.E.2d 236. Taxation

. 3641
An interpretation ofthe retailers' occupation tax basedupon location ofa retailer's business does not obviate the motives by the legislahJre's establishment ofdifferent tax rates for retailers located in Cook Countyand the collar counties. Edward Don & 

### Co. v. Zagel,App. l Dist.1981, 51 Ill.Dec. 87, 95 Il!.App.3d 589, 

### 420 l\.E.2d 501. Taxation

..3672
The retailers' occupation ta-x 

### cannot be interpreted as creating tax paritybetween servicemen and retailers in that the service occupation tax is imposed at a rate not to exceed l% 

### ofthe cost price oftangible personal property so transfened within the CountyofCook whereas theretailers' occupationtax is imposedat aratenot to exceed 

### I%ofthegrossreceipts from such sales made in the course ofsuch business within the County ofCook. Edward Don & 

### Co. v. Zagel. App. J 

### Dist1981, 51 I!I.Dec. 87, 95 l!LApp.3d 589. 420 KE.2d50!. Ta:,;ation

_ 3671
Theretailers' occupation tax oftheRegional Transportation Authority cannotbe distinguished from otherretailers' occupation taxes because the language ofthis paragraph differentiating between the applicable tax rates in Cook County and the collar counties differs from the language ofthe otherretailers' occupation taxes. Edward Don & 

### Co. \'.Zagel.App. I Dist.1981, 5 I Ill.Dec. 87. 

### 95 lll.App.3d 589, 420 N.E.2d 

### 501. Taxation 3672
The phrase "withinthe County ofCook," within this paragraph authorizing the retailers' occupation tax to be applied at a rate notto 

### exceed 1% 

### ofthe gross receipts from snch sales made in the course ofsuch businesswithin the CountyofCook, mustbe construedas modifyingthe immediatelypreceding antecedent phrase "inthe course ofsuch business'" and. hence, as requiring the tax to depend on lhe location ofthe business ofthe retailer rather than on wheretitle to goods sold 

### is transferred. Edward Don 

### & Co. v. 

### Zagel, App. I 

### Dist.1981, 51 111.Dec. 87, 

### 95 lll.App.3d 589. 420 N.E.2d 501. Taxation< 3641 

### PAGE 

### ( 3. Motorfuel taxes Department ofRevenuemayproperlyexpendits funds appropriated for 

### its ordinary andcontingentexpenses to administerand enforce motorfuel taxes imposed byRegional TransportationAuthority. 1977 Op.Atty.Gen. No. S-1311.


### The DepartmentofRevenue and the Regional Transportation Authoritymay agree that the Regional TransportationAuthority will defray the cost of supplies necessary for the ongoing collection of the motor fuel taxes imposed by the Regional TransportationAuthority bymaking payments directly to providers. 1977 

### Op.Atty.Gen. No. S-1311.


### PAGE
4. Nonresidentsellers Regulations providing for imposition ofretailers' occupational taxes on out-of-state sellerswho delivergoods from one spotin Illinois to another spot in Illinois pursuantto a sale to Illinois buyerdo not violate the commerce clause. Chemed Corp

.. lnc.
v. State, App. 4 Dist.1989. 134 Ill.Dec. 313, 

### 186 Ill.App.3d 402, 542 N.E.2d 492. appeal denied 139 Ill.Dec. 511, 128 [IJ.2d 662. 548 KE.::!d 1067. Commerce, 64 Department ofRevenue regulations governing imposition ofretail occupationtaxes, underwhich the place where title passes can be a controlling factor in some situations butmay be insignificant in other situations, are not unreasonable, arbitrary or capricious norvoid for vagueness. Chemed Corp., Inc. v. State, App. 4 Dist.1989. 134 Ill.Dec. 313, 186 T!l.App.3d 

### 402. 542 N.E.2d 

### 492, appeal denied 139 lll.Dcc. 51 l. 

### 128 lll.2d 662, 548 N.E.2d 1067. Licenses,, 15( I)
Out-of-state retailer which warehoused goods in Illinois and subsequently sold and delivered those goods within the city and countywheretheywere storedwas engaged in thebusiness ofretail sellingforpurposes ofthemunicipal retailers'occupational tax and the regional transit authority retailers' occupationaltax with respect to those sales. Chemed Corp

.. Inc. v. State, App. 43615/4.03.Taxes. 70 ILCS 3615/4.03

Dist.I989, I34 Ill.Dec. 313. 186 lll.App.3d 402. 542 N.E.2d 492, appeal denied 139 !11.Dec. 51 l, 128 Ill.2d 662. 548 N.E.2d 1067. Licenses 15( I) Regulations imposing municipal retailers' occupational tax andregional transit authority retailers' occupational tax on out"ofstate sellers which solicit orders and deliver goods from storage facilities within the state are within the scope ofthe taxing statutes [ch.

### 24,**~** 8-11-1 andch. 111 #,**~**704.03}. Chemed

### Corp.,Inc. 

### v. State.

### App. 4Dist.1989. 1341!1.Dec.313. 186 Ill.App.3d 

### 402, 542 N.E.2d492. appeal denied 139 Ill.Dec. 51 

### l. 128 !l1.2d 662, 548 KE.2d 1067. Licenses 15(1)
PAGE
5. Government services
Service occupation, municipal serYice occupation, regional transportation service occupation and use taxes were properly assessed on patient care services paid for with private funds, although patients received payments from state Depai1ment of Public Aid as\veil as from private sources such as social security, purchaseoffood andmedicine on behalfofnursingfacility patients madewith state DepartmentofPublic Aidfunds were taxexemptas sales ortransfers incidentaltorendering ofservice for or by govemmental body, and social security retirement funds were paid by governmental agency. Wcntwo11h Nursing Center\'. DirectorofDept. ofReYenue.App. I Dist.!989, !36 Jll.Dec. 196. 188 lll.App.3d446, 544 1'.E.:?:d971. appealdenied 140 Ill.Dec. 681. 129 lll.2d 573.550N.E.:?:d 566. Licenses:, 15(1); Taxation·- 3658 Nursing facilities were not entitled to deduction from patient paid funds of

### 525 per month which each patient retained 

### for persona! use, incomputing private funds expended for patient care thatwere subjectto service occupation, municipal service occupation, regional transportation service occupation, and use taxes; auditor testified that she computed tax assessment by usingnursingfacilities' records to detennine whichportions ofpatient costs werepaidbyDepartment ofPublic Aid funds and which werepaidfrom patients' own funds, daily costs ofpatient's food were subtracted from total daily costs, andpercentage applied to reach total amount of services on which taxes were assessed. Wentworth Nursing Center Y. Director ofDept. of Revenue. App. l Dist.1989. 136 111.Dec. 196, 188 Ill.App.3d 446, 544 N.E.2d 971, appeal denied 140 lll.Dec. 681. 1291ll.2d 573, 550 N.E.2d 566. Licens<:s

. 15( 1 ); Taxation·. 3658
PAGE

6. Ordinances
In view ofabsence ofan expression ofintention torelinquish his position and an act ofrelinquishment, director's statementto regionaltransportationauthorityboard, in whichheexpresslyindicatedhis intenttotenderaresignationinfuture tomayor,was nota "resignation"butratheronlyservedto giveboardnotice ofhis intentionto resignin future andthusheat all times retained rights andpowers ofanRT

### A director withresult that fuel tax ordinances, whichpassedbynecessary tv,o-thirds majorityonly with suchdirector's vote, were valid. CityofChicago ex rel. :\fartin-Trigona 

### v. O'lvfalley. 1978, 14 Ill.Dec. 475, 69 lll.2d474, 372 N.E.:.!d 671. rvJunicipal Corporations

_ 150 Language ofregionaltransportationauthoritydirector's letterofresignation to mayor''effective atyourconvenience''indicated thatresignation was notto be effective immediatelybutrather required some act ofacceptance bymayorto makeitviable and thus, where mayor never accepted but ratherrejected tendered resignation, resignation neverbecame effective and director at all times retained rights andpowers ofan RTA director with result that fuel tax ordinances, whichpassedby necessarytwothirds majorityonlywithsuchdirector's vote,werevalid. CityofChicago exrel. Martin-Trigonav. O'Malley, 1978, 14 IILDec. 475. 69 !ll.2d474, 372N.E.2d 671. Municipal Corporations. 150
PAGE

7. Bankmptcy 

### (

(3615/4.03.Taxes. 70 !LCS 361514.03



### Taxes due underIllinois Regional Transportation AuthorityAct and Municipal Retailers' Occupation Tax Act are excise taxes subject to discharge 

### ifthey were due more than three years prepetition. In re Torres, Bkrtcy.N.D. ]IL!992. 143 B.R. I83. Bankruptcy 3343.5
PAGE

8. Title orregistration Regional Transportation Authority (RTA) Use Tax Act and the \.funicipal Use Tax Act impose taxes upon property both registered andrequiredto be registered in Illinois. Square DCo.\'. Johnson. App. I Dist.!992, 175 Ill.Dec. 22L233 lll.App.3d 1070. 599 \'.E.2d 1235, appeal denied 180 Ill.Dec. 158, 147 Jll.2d 637. 606 ~.E.2d 1235. Taxntion 364! CorporationincorporatedinMichiganholdingaMichiganregistrationfor its aircraftwhichwas kept in Illinoiswasa "resident" ofIllinois for purposes ofthe Aeronautics Act, and. thus, was required to register its aircraft in Illinois and was subject to Regional Transportation Authority {RTA) use taxes; corporation had its world headquarters in Illinois and operated out of Illinois hangar, and corporation's aircraft was not engaged in conunercial flying because corporation neithersold norprovided paid serviceon its aircraft. SquareDCo.\'.Johnson.App. 1Dist.199.2. 175 Ill.Dec. 221,233 111.App.Jd l070, 599 N.E.2d 1235, appeal denied 180 !11.Dei..:. 158, 147 IIJ.2d 637. 606 l\'.E

..2d 1235. Taxation 3660
PAGE



### 9. Standing
Individual plaintiffs, who would ultimately bearthe burden ofthis paragraph giving public transportation authority power to levy unequal retailers' occupation taxes among the geographic regions within itsjurisdiction, had a real interest in the case and were adversely affected by imposition ofthe tax; thus, under Illinois )av,·, they had standing to challenge validity ofthe ( statute. Villnge ofArlington Heights\', Regional Trnnsp. Authority. C.A.7 (fll.)1981, 653 F ..2d l149. Constitutional Law 726; Constitutional Law T26


### PAGE



### 10. Jurisdiction
District court lackedjurisdiction over suit brought by municipalities and individuals challenging the constitutionality ofthis paragraphgivingapublic transportationauthoritypowerto levyunequaltaxesamonggeographicregionswithinitsjurisdiction, since the individual plaintiffs had a plain, speedy and efficient remedy in state courts, and since the municipalities, as state creatures and instmmenta!ities, could not challenge the validity ofa state statute under the Fourteenth Amendment.ViUage ofArlington 1--leights v. Regional Transp. Authority. C.A.7 (111.)1981, 653 F.2d 1149. Constitutional Law 961; Courts 489(1); Constitutional Law, 961
Current throughP.A. 95-720 ofthe 2008 Reg. Sess.

### (

### ( 

## Illinois General Assembly

- Bill Status for HB0656



## Bill Status ofHB0656 95th GeneralAssembly



### Short Description: 

### PUBLIC TRANSPORTATION-VARIOUS House Sponsors Rep. 

### Ju:,e HarT,o~

- E::i::h:; ,'·,'Gs,.,··~·:::~:-.,

- s·~Jr:e.' H kia:hias

- f<c,~r,~ee'l ;,., 

### R'·,;i

- Su:arne 8ass•, Estrer Go:~~' $a:-a Fe'.'.lE-<;r'.:::.:t:, •.'cse,-·'l 

### !vi l1 :::·~1s, Jc"l,.l Q'A.::-i:co, 

### kJ1::on P.2tte_:sc.:1, C:::::rst2;1ce 

## 6_ HC\'.'<:Vd_, E!a.·:-e Ns-_i::J1tz, L::." ., :....:::.".~, 

### E:'.§li..! [; 

### F~:::e;.~.c;-, §_t;::Sa",2 A l\lend::::g:a, 

### lws/,ri·c 

### <', E\;ia_L_ Jeffer:es, [,1ana ,.:_nt:·- a D2:rrcs, G·eo H§.J:.lf?, 

### tj2·~·,, Oster:var;, .'3erba!·a F:-·~:1 ::::~l}ie, E:':abeth 

### CoL::s,2n, Ka~en ,.::.. 

### y·ar::.,q_,-12;::, 

## .'..·.'..·;.:·-~--E- D.:.._Q_?_\·_!.§, r;erneth Duntsi_::-_, Det;::,rar'. L 

## Gr?:"cr,, c,nth:a 

### Sc;:o, El·zabetn Her·car:::.e:, Da, 

### ::i E U !,E:r, Daniel J. 

### Burke, R:::hard 

### T 

## B:·acre,· and 

### Eo':;(o;;a 

### J ;.,_::;e,:eJ::
Senate Sponsors (Sen. Rtck-E:/ R

..__He:::c~

- ::,_:-,, ~' C~i..-e'"'.or.

- las Y 

### '.-.'la:1;:1ez

- 

### Ja::1es A 

### Deleo

- ~'.1 .,liari 06:ia.::i::.-, 

### Don har:,,or, f.-"iat:,e Hur:t:·', ~0·,~E'

### Y Cc,i .ns and 

### K,·1an1c Ra,:,:..,;)
Last Action Date 

### Chamber Action 1/1812008 House PublicAct.



### ........ S-5-0708
Statutes Amended In Order ofAppearance 

### 625 llCS 5/12-102 new



### Synopsis As Introduced 

## Pagelof7

Amends the IllinoisVehicle Code. Providesthat a person charged forthe first time with an equipment violation ofa specified type shall notbe convicted ofthe violation ifthe person presents satisfactory evidence in courtthatthe vehicle has been repaired or altered in a mannerthat brings the vehicle into compliance with the applicable provision. 

### Senate CommitteeAmendment No. 1 Deletes reference to: 625 ILCS 5112-102 

### Adds reference to: 625 ILC$~5.'12-6';C· from Ch. 

### 951/2, par. 

### 12-610
Deletes everything afterthe enacting clause. Amends the IllinoisVehicle Code. Makes a technical change in 

## a provision concerning headset receivers. 

### Senate Floor

### Amendment No.4 Deletesreference to: 624 ILCS 5112-102 

### Adds reference to: NewAct 

### 30 ILCS 5/3-2.3 new 

### {_ 30 ILCS 

### '105/5.708 new 

### 30 ILCS 

### 105162-17 from Ch. 127, par. 142z-17



## http://ilga.gov/legislation/billstatus.asp?DocNum~0656&GAJD~9&GA~95&DocType!D

... 10/26/2015

## Illinois GeneralAssembly

- Bill Status for J-IB0656

40 IL·:5 E- 

### 2.2-':0~B 

## ne:, t: :LCS ~'2-3<9

--:::: IL.CS 3685.15



# -c !LCS 36"5i2 12 70 iLCS 2615/2.12b

## re,,_,.,



# -c, ILCS 36~5.'2 2-1 1"\E;Yi 

# -c- ILCS 25"1[)/3 

### 01 7C_ILCS 

### 3615!3 03 

### 70 ILCS 3015:3.05 

### IC ILCS 

### 3615!3A 10 70 ILCS 3615/3A.11 !O ILCS 251511.A. 14 

### IC !LC$ 

### 3S15:3p

## OZ 70 

### ILCS 3615!38 

### C3 

### IC1 ILCS 

### 2615138 05 70 ILCS 

### 3615138.07 

### 70 ILCS 

### 36'15/38 08 70 ILCS 3615!38.10 

### 70 ILCS 3615i38 11 from Ch. 

### 111 2/3, par. 662.04 from Ch. 111 2/3, par. 663 from Ch. 111 2/3, par. 666 from Ch. 

### 111 2/3, par. 667 from Ch. 111 2/3, par. 675.1 from Ch. 

### 1081/2, par. 22-101

from Ch. 111 

### 213, par. 315 from Ch. 111 2/3, par. 328a from Ch. 111 2/3, par. 334 from Ch. 111 2/3, par. 346

from Ch. 111 2/3, par. 701.02 from Ch. 111 2/3, par. 702.01

from Ch. 111 2/3, par. 702.04 from Ch. 111 2/3, par. 702.05 from Ch. 111 2/3, par. 702.09 from Ch. 111 2/3, par. 702.12

from Ch. 111 2/3, par. 702.14 from Ch.1112/3, par. 702.18a

from Ch. 111 2/3, par. 703.01 from Ch. 1112/3, par. 703.03 from Ch. 1112/3, par. 703.05 from Ch. 111 2/3, par. 703A.10 from Ch. 111 2/3, par. 703A.11 from Ch. 111 2/3, par. 703A.14 from Ch. 111 2/3, par. 7038.02 from Ch. 111 2/3, 

### par. 7038.03 from Ch. 

### 111 2/3, par. 7038.05 from Ch. 111 2/3, par. 7038.07 from Ch. 111 2/3, par. 7038.09 from Ch. 111 2/3, par. 7038.10 from Ch. 111 2/3, par. 7038.11 

## Page 2 of7



## http://ilga.gov/legislationlbillstatos.asp?DocNum-0656&GAID-9&GA-95&Doc Type!D... I0/26/20l 5 (

### ( 

## Illinois General Assembly

- Bill Status forHB0656

-:-:- :Les 3E~t-3B -:::. :::.'."c....Ll,..CS 26"

### E· ·2.s ·]::, ZLLL_CS 

### 2-6~E, 4.2~_ 7,::___l],J:_S 26",E 4 

## Q:::2 

## --co :LCS 3615'4.C2b 

### 7,: iLCS 2615,4 03



### ~: iLCS 3615'4 13 

## ;c ILCS 3615,4.H 

# -c ILCS 

### 3615/5 01 

# :c, ILCS 36'r5/2.12a rep -:-.:, iLCS 

### 3615,i.3.03 rep 

### 70 :LCS 

### 3615:3 10 rep from Ch. 111 2/3, par. 7038.12 from Ch. 111 2/3, par. 7038.13 from Ch. 111 2/3, par. 704.01 from Ch. 111 2/3, par. 704.02

from Ch. 111 2/3, par. 704.03

from Ch. 

### 111 2/3, par. 704.04 from Ch. 111 2/3, par. 704.09 from Ch. 111 2/3, par. 704.11 from Ch. 111 2/3, par. 704.13 

### from Ch. 1112/3, par. 704.14 from Ch. 111 2/3, par. 705.01 

## Page 3 of7

Deletes everything afterthe enacting clause. Amends the Regional Transportation Authority Act. Adds a provision related to legislative findings. Requires the Authority to provide financlal oversight of the Service Boards, allocate operating and capital funds made available to support public transportation in the metropolitan region, and undertake certain planning functions. Provides thatthe Authority shall adopta Strategic Plan, a Five-YearCapital Program, and an Annual Budgetand TwoYear Financial Plan. Providesthat the Authority shall conduct audits ofeach ofthe Service Boards no less than every 

### 5 years, and may conduct audits ofcertaintransportation agencies. Requires the Service Board and transportation agenciesto publish certain reports and submitthose reports to the Authority. Provides thattheAuthority shall establish an Innovation, Coordination, and Enhancement Fund, an ADA Paratransit Fund, and a Suburban Community Mobility Fund. Repeals a Section ofthe Act concerning mediation ofdisputes between Service Boards. Providesthatthe Executive Director oftheAuthority may intervene in certain matters involving disputes between Service Boards. Sets forth certain functions ofthe Board ofthe Authority. Increases the rate ofcertain taxes thatthe Authority is authorized 

## to impose. Provides that the Board ofthe Regional Transportation Authority shall consist of 

### 16 directors. Sets forth the terms and appointmentauthority for those directors. Provides thatthe Board ofthe Commuter Rail Division shall consist of 11 directors. Sets forth the terms and appointmentauthority forthose directors. Amends the Illinois Municipal Code. Provides that the City ofChicago may impose a real estate transfertax. Makes numerous otherchanges. Effective immediately. 

### Senate Floor Amendment 

### No. 5 Providesthatcertain tax proceeds may be used by the counties of DuPage, Kane, Lake, McHenry, and Will for operating and capital costs of public safety services. Governor

### Amendatory Veto Message Proposesthat any fixed route publictransportation services provided by the Chicago Transit Authority, the Commuter Rail Board, the Suburban Bus Board, all Local Mass Districts, and certain participants in the Downstate Public Transportation Fund shall be provided without charge to senior citizens aged 65 and older, subjectto certain residency requirements and underconditions determined by the transit board. 

# I

Chamber

# I Action



## http://ilga.gov/legislation/billstatus.asp?DocNum=0656&GAID=9&GA=95&DocTypelD.

.. 10/26/2015

## Illinois General Assembly

- Bill Status for HB0656 

## Page 4 of7

2/6/2007 House Filed with the Clerk by Rec:, 

### Eadie 

### \:i&shirmc:1 

### 2/6/2007 House ChiefCo-Sponsor Rep Chaoir__3_gse 

### 2/612007 House First Reading (


### 2/6/2007 House Referred to 

### R;;ies Cc'l~r:-i.ttee 

### 2/8/2007 House Assigned to 

### Ev.e:::c;ri·.,e C.:Jr;,::· ttee 

### 2128/2007 House Re-assigned to 

### Tr.snsp0:tak:r. a:-d Mct,x

### \\;r'lc•es C0n1, ttee



### 3/6/2007 House Do Pass 

### I Short Debate Irnnsportat:o·, &:id r·.1::i:orVeh·::: es C:-,,~:-,,·:!e<?; 

### 017-000-000 317/2007 House Placed on Calendar2nd Reading

- Short Debate 

### 3/1312007 House Second Reading - Short Debate 

### 3/13/2007 House Placed on CalendarOrderof3rd Reading

- Short Debate 

### 3/27/2007 House Recalled to Second Reading

- Short Debate 

### 3/27/2007 House Held on Calendar Orderof Second Reading

- Short Debate 

### 3/2712007 House Added ChiefCo-Sponsor

### &Q JcAnn D 

### Os'T'cvu 4119/2007 House Placed on Calendar Order of3rd Reading

- Short Debate 

### 412612007 House Third Reading - Short Debate - Passed 

### 116-000-000 4126/2007 House Added ChiefCo-Sponsor RE-Q 

### :Jenr:1s r.~ 

### Rsbciel':1



### 5/1/2007 Senate Arrive in Senate 

### 5/1/2007 Senate Placed on Calendar Order of First Reading May2, 2007 

### 10/3/2007 Senate ChiefSenate SponsorSen Emil J::res Jr 

### 1013/2007 Senate First Reading 

### 10/3/2007 Senate Referred to .B.vl~.~ 

### 10/3/2007 Senate Assigned to Executrve 

### 10/3/2007 Senate Senate CommitteeAmendment No. 1 Filed with Secretary by Sen. Erml

, 1



### ones. 

### Jr. 10/3/2007 Senate Senate CommitteeAmendment No. 1 Referred to Rules 

### 10/3/2007 Senate Senate CommitteeAmendment No. 1 Rules Refersto 

### Execwt1v>Q 

### 10/3/2007 Senate Rule 2-10 Committee Deadline Established As December 31, 2007 

### 10/3/2007 Senate Rule 2-10 Third Reading Deadline EstablishedAs December31, 2007 10/3/2007 Senate Alternate ChiefSponsor Changed to Sen. 

### Emil Jones Jr 

### 10/10/2007 Senate Senate CommitteeAmendment No. 1Adopted 

### 10110/2007 Senate Do Pass asAmended Executive; 013-000-000 

### 10110/2007 Senate Placed on Calendar Order of2nd Reading October 10, 2007 

### 10110/2007 Senate Added as Alternate ChiefCo-Sponsor Sen Jarr,es 

### A. Deleo 

### 10110/2007 Senate Second Reading 

### 10110/2007 Senate Placed on CalendarOrderof3rd Reading October 11, 2007 

### 10/10/2007 Senate Sponsor Removed Sen James

### A. Deleo 

### 1011012007 Senate Added as Alternate ChiefCo-Sponsor Sen. James A DeLeQ



### 12/312007 Senate Pursuantto Senate Rule 3-9(b) 

### I Referred to Rules



### 1/912008 Senate Approved for Consideration Rules 

### 119/2008 Senate Placed on CalendarOrderof3rd Reading January 10, 2008 

### 1/912008 Senate Senate FloorAmendment No. Hendon; -Cullerton-Martinez 2 Filed with Secretary by Sen R1ckev 

### R. 

### (
119/2008 Senate Senate FloorAmendment No. 2 Referred to Rules



## http://ilga.gov/legislation/billstatus.asp?DocNum=0656&GAID=9&GA=95&DocTypeID... 10/26/2015

## Illinois General Assembly

- Bill Status for HB0656 Page 5of7

1/9/2008 Senate Senate FloorAmendment No. 2 Rules Refers to Exec:..::·,.-e 

### 1/9/2008 Senate Added as Alternate Co-Sponsor ,Ben Don Harm'."lr 

### 1/9/2008 Senate Senate FloorAmendment No. 2 Recommend DoAdopt

### _1;,,~::ut1·.1E;.; 008- 

### 005-000 1/9/2008 Senate Added as Alternate Co-Sponsor.$E:n 'IJ:litarn Deloa;;Jq 

### 1/9/2008 Senate Senate FloorAmendment No. 3 Filed with Secretary by :=:;en 1- 

### ranf. 

### C l/Vatso:1 

### 1/9/2008 Senate Senate FloorAmendment No. 3 Referred to Ru:es 1/9/2008 Senate Alternate ChiefSponsorChanged to Sen i:;:1cke·) 

### R Hendo", 

### 1/9/2008 Senate Added asAlternate ChiefCo-Sponsor Sen John 

### J C\ijis::,,tcr 

### 1/9/2008 Senate Added as Alternate ChiefCo-Sponsor Sen Ins Y 

### fl,ar:,;;e7 

### 1/9/2008 Senate Added as Alternate ChiefCo-Sponsor Sen Willi'am Oe:gado 

### 1/9/2008 Senate Added as Alternate Co-Sponsor Sen Matt;e Hu~ter 

### 1/9/2008 Senate Senate FloorAmendment No. 4 Filed wlth Secretary by Sen HerJo;,; -Cullerton-Martinez 

### R1ckev R


### 1/9/2008 Senate Senate FloorAmendment No. 4 Referred to Ruies 

### 1/9/2008 Senate Senate FloorAmendment No. 4 Be Approved for Consideratfon R:.1ies 

### 1/9/2008 Senate Senate FloorAmendment No. 5 Filed with Secretary by Sen Jann J Cdl ert:,n 

### 1/9/2008 Senate Senate FloorAmendment No. 5 Referred to Ru.es 

### 1/9/2008 Senate Senate FloorAmendment No. 5 Be Approved for Consideration Ru'es 

### 1/9/2008 Senate Recalled to Second Reading 

### 1/9/2008 Senate Senate FloorAmendment No. 2 Tabled Hendon-Cullerton-Martinez 

### 1/9/2008 Senate Senate FloorAmendment No. 4 Adopted; 030-019-003; Hendon-Cu!lertonMartinez 

### 1/9/2008 Senate Senate FloorAmendment No. 5Adopted; 

### 03'1-021-003; Cul!erton 

### 1/9/2008 Senate Placed on CalendarOrderof3rd Reading 

### 1/9/2008 Senate Added as Alternate Co-Sponsor Sen Jacgueline Y. Collins 

### 1/9/2008 Senate Added asAlternate Co-Sponsor .$en. Kv:arne Raoul 

### 1/9/2008 Senate Third Reading

- Consideration Postponed 

### 1/9/2008 Senate Placed on Calendar- Consideration Postponed January 10, 2008 

### 1/9/2008 Senate Senate FloorAmendment No. 3 Tabled Pursuantto Rule 5-4(a) 

### 1/10/2008 House Chief Sponsor Changed to ReQ Julie Harnos 

### 1/10/2008 House Remove ChiefCo-Sponsor Reo. Chagin Rose 

### 1/10/2008 House Remove ChiefCo-Sponsor ReQ Dennis r~1 Rebolet:i 

### 1/10/2008 House Remove Chief Co-Sponsor Reo JoAnn D Osmond 

### 1/10/2008 Senate Third Reading - Passed; 

### 030-025-001 1/10/2008 House Arrived in House 

### 1/10/2008 House Placed on Calendar OrderofConcurrence SenateAmendment(s) 1,4,5 

### 1/10/2008 House Senate Committee Amendment No. 1 Motion Filed Concur Rep Julie Harnos 

### 1/10/2008 House Senate FloorAmendment No. 4 Motion Filed Concur Re12. Julie Harnos 

### 1/10/2008 House Senate FloorAmendment No. 5 Motion Filed Concur Re12. Julie Harnos 

### 1/10/2008 House Senate CommitteeAmendment No. 1 Motion to Concur Referred to Rules Committee



## http://ilga.gov/legislation/billstatus.asp?DocNum~0656&GAID~9&GA~95&DocTypelD... 10/26/2015

### Illinois General Assembly

- Bill Status IOrHB0656 Page6of7

1/10/2008 House Senate FloorAmendment No. 4 Motion to Concur Referred to Rules 

### C_c1r:;1,nee 

### 1/10/2008 House Senate FloorAmendment No. 5 Motion to Concur Referred to R.uies 

### I Co:r,111·;:c,e 

### 1/10/2008 House Senate Committee Amendment No. 

### 1 Motion to Concur Recommends be Adopted R~1ies Co"'lrr.1ttee; 

### 003·001-000 1/10/2008 House Senate FloorAmendment No. 4 Motion to Concur Recommends be Adopted 

### Rves Co~·n•t:.ee; 

### 003-001-000 1/10/2008 House Senate FloorAmendment No. 5 Motion to Concur Recommends be Adopted R,,'es 

### Q_-,,~_r,-,:t'.c:..~; 

### 003-001-000 1/10/2008 House Added ChiefCo-Sponsor Rei;, 

### !=ci·::·e 1.\/asi,.:v:ton 

### 1/10/2008 House Added ChiefCo-Sponsor Reo S1cne<,: H 

### Ma:hias 

### 1/10/2008 House Added ChiefCo-Sponsor Re:, Kath!een 

### A 

## Ryg 1/10/2008 House Added ChiefCo-Sponsor R.s~ 

### S_L_;,:_anns.J32ss1 

### 1/10/2008 House Added Co-Sponsor R<:o E:?:hE:: Golar 

### 1/10/2008 House Added Co-Sponsor Rep ~§.ra Feiaenhot_ 

### 1/10/2008 House Added Co·Sponsor ReD 

### Joseph 

### r,t Lvons 

### 1/10/2008 House Added co.Sponsor o.eD 

### John D'Amtco 

### 1/10/2008 House Added Co·Sponsor Rer 1/)!c:: Pc:;'.t~rs::-;1" 

### 1/10/2008 House Added Co·Sponsor Rei; Cc:starc:e A Hc\ 1

### ..-ard 

### 1/10/2008 House Added co.Sponsor Ren 

### Ela.ne r·~er'.ritz 

### 1/1012008 House Added Co·Sponsor 

### Re.J;L_Lc.1 Lang 

### 111012008 House Added Co·Sponsor Reg Paui D 

### Frcehilch 

### ( 111012008 House Added Co-Sponsor Rep Susana A 

### f\..1endoza 

### 111012008 House Added Co-Sponsor 

### Rs-r1 L'J 

### s f'J:o,'O 

### 1110/2008 House Added Co-Sponsor Rep Eloa 

### l Jefferies 

### 111012008 House Added Co-Sponsor R<::" MariaA11tonia Bernos 

### 111012008 House Added Co-Sponsor Rep Gree, Hams 

### 1/10/2008 House Added Co-Sponsor Reo 

### Ham Osterman 

### 1110/2008 House Added Co-Sponsor Reo Barbara Ftvnn Curr,e 

### 111012008 House Added Co-Sponsor Rep 

### E1

### 1;;:abeth 

### G.oulson 1/10/2008 House Added Co*Sponsor Rep Karen A. Yarbrough 

### 1/10/2008 House Added Co-Sponsor ReQ. 

### klc:i:gue D Davis 

### 1/10/2008 House Added Co-Sponsor ReQ Kenneth Dunkin 

### 1/10/2008 House Added Co-Sponsor Re1,2 Deborah L Graham 

### 1/10/2008 House Added Co-Sponsor Reo C·mthia Soto 

### 1/10/2008 House Added Co-Sponsor ReQ Elizabeth Hernandez 

### 111012008 House Added Co-Sponsor RE:o David !;. Miller 

### 111012008 House Added Co-Sponsor ReQ. Daniel J. Burke 

### 1110/2008 House Added Co-Sponsor Rep_ Richard T Bradle;( 

### 1110/2008 House Added Co-Sponsor Reo Edward J. Acevedo 

### 1/10/2008 House Senate Committee Amendment No. 

### 1 House Concurs 

### 062-051-001 1/10/2008 House Senate FloorAmendment No. 4 House Concurs 

### 062·051-001 1/10/2008 House Senate FloorAmendment No. 5 House Concurs 

### 062-051-00·I



## http://ilga.gov/legislation/billstatus.asp9

## DocNum~0656&GAID~9&GA~95&DocTypelD... 10/26/2015

## 111inois General Assembly

- Bill Status for HB0656 

## Page 7of7

1/10/2008 House Passed Both Houses ( 

### 1/11/2008 House Sentto the Governor 

### 1/11/2008 House GovernorAmendatory Veto 

### 1/15/2008 House Placed on CalendarAmendatory Veto January 17, 2008 

### 1/15/2008 House Amendatory Veto Motion

- Motion Filed AcceptAmendatory Veto Re;::: Julie Ha'."'!~os 

### 1/15/2008 House 

### Amendatory Veto Motion

- Motion Referred to R..;ies Comm,t1ee 

### 1/15/2008 House Amendatory Veto Motion

- Rules Refersto 

### f,.:"1oss Trans:t Corrm'tte-2 

### 1/16/2008 House Amendatory Veto Motion

- Accept Motion Recommends Be Adopted :,-lass 

### Tra-'s:t

### _CQ'T."1::7e.SC: 016-005-000 

### 1/17/2008 House AcceptAmendatory Veto

- House Passed ,J61-\)47-0DO 

### 1/17/2008 Senate Placed on CalendarAmendatory Veto January 17, 2008 

### 1/17/2008 Senate Amendatory Veto Motion

- Motion Filed AcceptAmendatory Veto~..:_ 

### Rc>:.ey R 

### Hsr'.J::..'..] 1/17/2008 Senate Amendatory Veto Motion

- Motion Referred to Ru:es 

### 1/17/2008 Senate Amendatory Veto Motion

- Approved for Consideration Ru!es 

### 1/17/2008 Senate Amendatory Veto Motion

- Added as Co-SponsortoAmendatory Veto

- Cullerton 

### 1/17/2008 Senate AcceptAmendatory Veto

- Senate Passed 

### :J22-0:9-0CD 1/17/2008 House Both Houses Accepted Amendatory Veto 

### 1/18/2008 House Sentto the Governor 

### 1/18/2008 House GovernorCertifies Changes 

### 1/18/2008 House Effective Date January 18, 2008 

### 1/18/2008 

## House Public Act
. ........ 95-0708



### Back To Top



## http:/ /ilga.gov/legislation/billstatus.asp?DocNum~0656&GAID~9&GA~95&DocType!D... I0/26/2015

### (

## ( Public Act 095-0708
HB0656 Re-Enrolled

AN ACT concerning transportation. LRB095 04786 DRH 24846 b



## Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 

### 5. The Illinois State Auditing Act is amended by adding Section 3-2.3 as follows:

(30 ILCS 5/3-2.3 new) Sec. 3-2.3. Report on Chicago Transit Authority. (a) No less than 60 days prior to the issuance of bonds or notes by the Chicago Transit Authority (referred to as the "Authority" in this Section) pursuant to Section 12c o'f the Metropolitan Transit Authority Act, the following documentation shall be submitted to the Auditor General and the Regional Transportation Authority: (1) 

### Retirement Plan Documentation. The Authority shall submit a certification that: {A) it is legally authorized to issue the bonds or notes; (Bl 

### scheduled annual payments of principal and interest on the bonds and notes to be issued meet the requirements of Section 12c(b) (5) 

### of the Metropolitan Transit Authority Act; 

### {C) no 

### bond or note shall mature later than December 31, 2040;

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
(D) ah.er payment of costs of issuance and necessary deposits to funds and accounts established with respect to debt service on the bonds or notes 1 

## the
net bond and note proceeds (exclusive of any proceeds
to be used to refund outstanding bonds or notes) will be deposited in the Retirement Plan for Chicago Transit Authority Employees and used only for the purposes required by Section 22-101 of the Illinois Pension Code; and (E) it has entered into an intergovernmental agreement with the Citv of Chicago under which the City of Chicago will provide financial assistance to the Authority in an amount equal to the net receipts, after fees for costs of collection from a tax on the privilege of transferring title to real estate in the City of Chicago in an amount up to $1.50 per $500 of value or fraction thereof under the provisions of Section 8-3-19 of the Illinois Municipal Code which agreement shall be for a term expiring no earlier than the final maturity of bonds or notes that it proposes to issue under Section 12c of the Metropolitan Transit Authority Act. (2) The Board of Trustees of the Retirement Plan for Chicago Transit Authoritv Employees shall submit a 

## certification that the Retirement Plan for Chicago Transit Authority Employees is operating in accordance with all (

### ( 

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b applicable legal and contractual regui 

## rements, including the following: (A) the members of a new Board of Trustees have been appointed according to the requirements of Section 22-101 (b) of the Illinois Pension Code; and (Bl contribution levels for employees and the Authority have been established according to the requirements of Seccion 22-lOl{d) of the Illinois Pension Code. (3) Actuarial Report. The Board of Trustees of the Retirement Plan for Chicago Transit Authority Employees shall submit an actuarial report prepared bv an enrolled actuary setting forth: (A) the method of valuation and the underlying assumptions; (B) a comparison of the debt service schedules of the bonds or notes proposed to be issued to the Retirement Plan's current unfunded actuarial accrued liability amortization schedule, as required by Section 22-lOl(e) of the Illinois Pension Code, using the projected interest cost of the bond or note issue

as the discount rate to calculate the estimated net present value savings; (Cl the amount of the estimated net present value savings comparing the true interest cost of the bonds

or notes with the actuarial investment return

## Public Act 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
assumption of the Retirement Plan; and 

# (DJ a certification that the net proceeds of t.he bonds or notes, together with anticipated earnings on contributions and deposits, will be sufficient -co reasonably conclude on an actuarial basis that the total retirement assets of the Retirement Plan will no-c be less than 90 9 ,:; 

## of its liabilities by the end of fiscal year 2059. (4) The Authority shall submit a financial analysis prepared by an independent advisor. The financial analysis
must include a determination that the issuance of bonds is in the best interest of the Retirement Plan for Chicago Transit Authority Employees and the Chicago Transit Authority. The independent advisor shall not act as underwriter or receive a legal, consulting, or other fee related to the issuance of any bond or notes issued by the Authority pursuant to Section 12c of the Metropolitan Transit Authority Act except compensation due for the preparation of the financial analysis. (5) Retiree Health Care Trust Documentation. The Authority shall submit a certification that: (A) it is legally authorized to issue the bonds or notes; (B) scheduled annual payments of principal and interest on the bonds and notes to be issued meets the requirements of Section 12c (b) (5) of the Metropolitan

### ( 

### Public Act 095-0708
HB0656 Re-Enrolled

Transit Authorit.y Act; LRB095 04786 DRH 24846 b

(C) no bond or note shall mature later than December 31, 2040; (D) after payment o-f costs of issuance and necessary deposits to funds and accounts established with respect. to debt service on the bonds or notes, the
net bond and note proceeds (exclusive of any proceeds
to be used to refund outstanding bonds or notes) will be deposited in the Retiree Health Care Trust and used only for the purposes required by Section 22-101B of the Tllinois Pension Code; and (E) it has entered into an intergovernmental agreement with the City of Chicago under which the City of Chicago will provide financial assistance to the Authoritv in an amount equal to the net receipts, after -fees for costs of collection from a tax on the privilege of transferring title to real estate in the City of Chicago in an amount up to $1.50 per $500 of value or fraction thereof under the provisions of Section 8-3-19 of the Illinois Municipal Code which agreement shall be for a term expiring no earlier than the final maturity of bonds or notes that it proposes to issue under Section 12c of the Metropolitan Transit Authority Act. (6) The Board of Trustees of the Retiree Health Care Trust shall submit a certification that the Retiree Health

### Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b

Care Trust has been established in accordance with all applicable leaal requirements, including the following: (A) che Retiree Heal-ch Care Trust has been established and a Trust document is in effect to govern the Retiree Health Care Trust; (B) the members of the Board of Trustees of the Retiree Health Care Trust have been appointed according to the requirements of Section 22-1 OlB (b) (1) of the Illinois Pension Code; (C) a health care benefit program for eligible retirees and their dependents and survivors has been established by the Board of Trustees according to the requirements of Section 22-lOlB(b) (2) of the Illinois Pension Code; (D) contribution levels have been established for retirees, dependents and survivors according to the requirements of Section 22-lOlB (bl (5) of the Illinois Pension Code; and (E) contribution levels have been established for employees of the Authority according to the requirements of Section 22-lOlB(b) (6) of the Illinois Pension Code. (7) J.l..ctuarial Report. The Board of Trustees of the Retiree Health Care Trust shall submit an actuarial report prepared by an enrolled actuary setting forth: (A) the method of valuation and the underlying (( 

## Public Act 095-0708
HB0656 Re-Enrolled
assumptions; LRB095 04786 DRH 24846 b

(B) a comparison of rhe projected interest cost of the bonds or notes proposed to be issued with the actuarial investment return assumption of rhe Retiree Health Care Trust; and (C) a certification that the net proceeds of the bonds or notes, together with anticipated earnings on contributions and deposits will be sufficient to adequately fund the actuarial present value 

## of projected benefits expected to be paid under the Retiree Heal th Care Trust or a certification of the increases in contribution levels and decreases in benefit levels that would be required in order to cure any funding shortfall over a period of not more than 10 years. (8) The Authority sha11 

## submit a financial analysis prepared by an independent advisor. The financial analysis
must include a determination that rhe issuance of bonds is in the best interest of the Retiree Health Care Trust and the Chicago Transit Authority. The independent advisor shall not act as underwriter or receive a legal, consulting, or other fee related to the issuance of any bond or notes issued by the Authority pursuant to Section 12c of the Metropolitan Transit Authority Act except compensation due for the preparation of the financial analysis.

## Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b
(b) The Auditor General shall examine the information submitted pursuant to Section 3-2.3(a) (1) 

## through (4) and submit a reporc LO 

## the General Assembly, the Legislative Audit Commission, the Governor, the Regional Transportation Authority and the Authority indicating whether (i) the required certifications by the Authority and the Board of Trustees of the Retirement Plan have been made, and (ii) the actuarial reports have been provided, the reports include all required information, the assumptions underlying those reports are not unreasonable in the agqregate, and the reports appear to comply with all pertinent professional standards, including those issued by the Actuarial Standards Board. The Auditor General shall submit such report no later than 60 days after receiving the information required to be submicted by 

## the Authoritv and the Board of Trustees of the Retirement Plan. Any bonds or notes issued by the Authority under item (1) of subsection (bl of Section 12c of the Metropolitan Transit Authority Act shall be issued within 120 days after receiving such report from the Auditor General. The Authority may not issue bonds or notes until it 

## receives the report from the Auditor General indicating the above requirements have been met. (c) The Auditor General shall examine the information submitted pursuant to Section 3-2.3 (a) (5) through (8) and submit a report to the General Assembly, the Legislative Audit Commission, the Governor, the Regional Transportation Authority and the Authority indicating whether (i) the required (( 

### Public AcL 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b

certifications by the Authority and the Board of Trustees of the Retiree Health Care Trust have been made, and (ii) the actuarial reports have been provided, the reports include all required information, the assumptions underlying those reports

are not unreasonable in the aggregate, and the reports appear to comply with all pertinent professional standards, including those issued by the Actuarial Standards Board. The Auditor General shall submit such report no later than 60 

### days after receiving the information required to be submitted by the Authority and the Board of Trustees of the Retiree Health Care Trust. Any bonds or notes issued by the Authority under item (2) of subsection (b) of Section 12c of the Merrooolitan Transit Authority Act shall be issued within 120 days after receiving such report from the Auditor General. The Authority may not issue bonds or notes until it receives a report from the Auditor General indicating the above requirements have been
met. (di 

### In fulfilling this duty, after receiving the information submitted pursuant to Section 

### 3-2.3(a), the Auditor General may request additional information and support pertaining to the data and conclusions contained in the submitted documents and the Authority, the Board of Trustees of the Retirement Plan and the Board of Trustees of the Retiree Health Care Trust shall cooperate with the Auditor General and provide additional information as requested in a timely manner. The Auditor General may also request from the Regional

### Public AcL 095-0708
HB0656 Re-Enrolled LRB095 04786 DRH 24846 b
TransportaLion Authority an analysis of the information submitted by the Authority relating to the sources of funds to be utilized for payment of the proposed bonds or notes of the Authoritv. The Auditor General's report shall not be in the
nature of a post-audit or examination and shall not lead to the issuance of an opinion as that term is defined in generally accepted qovernment audiLing standards. (e) Annual Retirement Plan Submission to Auditor General. The Board of Trustees of the Retirement Plan for Chicago Transit Authority Employees established by 

### Section 22-101 of the Illinois Pension Code shall provide the following documents
to the Auditor General annually no later than September 30: (1) 

### the most recent audit or examination of the Retirement Plan; (2) 

### an annual statement containing the information specified in Section lA-109 of the Illinois Pension Code; and (3) 

### a complete actuarial statement applicable to the prior plan year, which may be the annual report of 

### an enrolled actuary retained by the Retirement Plan specified in Section 22-lOl(e) of 

### the Illinois Pension Code. The Auditor General shall annually examine the information provided pursuant to this subsection and shall submit a report of the analysis thereof to the General Assembly, including the report specified in Section 22-101 (e) of the Illinois Pension Code. /!

( 

### Public Act 095-0708
HB0656 Re-Enrolled
(fl The 

### Audit.or 

### information 

### submitted LRB095 04786 DRH 24846 b

General 

## shall annually examine the pursuant to Section 22-lOlB (b) (3) (iii) 

### of the 

## Illinois Pension Code 

### and shall prepare the 

### determination specified in Section 22-1018 (b) (3) (iv) of Lhe Tllinois Pension Code. 

### (g) In 

### fulfill-ing the duties under Sections 3-2.3(e) and (f) 

## the Auditor General mav request additional information and support pertaining to the data and conclusions contained in the 

## submitted documents and the Authority, the Board of Trustees of the Retirement Plan and the Board of Trustees of the Retiree Health Care Trust shall cooperate with the Auditor General and 

## provide additional 

## information as requested in a timely manner. The Auditor General's review shall not be in the nature of a post-audit or examination and shall not lead to the issuance of

an opinion as that term is defined in generally accepted government auditing standards. Upon request of the Auditor General, the Commission on Government Forecasting and Accountability and the Public Pension Division of the Illinois Department of Financial and Professional Regulation shall cooperate with and assist the Auditor General in the conduct of his review. (h) The Auditor General shall submit a bill to the Authority for costs associated with the examinations and reports specified in subsections (b) and (cl of this Section 3-2.3, which the Authority shall reimburse in a timely manner. The costs associated with the examinations and reports which

### Public Act 095-0708
HB0656 Re-Enrolled 

## LRB095 04786 DRH 24846 b

are reimbursed by the Authority shall constitute a cost of issuance of the bonds or notes under Section 12c(b) (1) and (2) of the Metropolitan Transit Authority Act. The amount received shall be deposited into the fund or funds from which such costs

were paid by the Auditor General. The Auditor General shall submit a bill to the Retirement Plan for Chicaao Transit Authority Employees for costs associated with the examinations and reports specified in subsection (el of this Section, which the Retirement Plan for Chicago Transit Authority Employees shall reimburse in a timely manner. The amount received shall be deposited into the fund or funds from which such costs were paid by the Auditor General. The Auditor General shall submit a bill to the Retiree Health Care Trust for costs associated with the determination specified in subsection (f) of this Section, which the Retiree Health Care Trust shall reimburse in a timely

manner. The amount received shall be deposited into the fund or funds from which such costs were paid by the Auditor General.

Section 6. The State Finance Act is amended by 

### adding Section 5.708 and by changing Section 6z-17 as follows:

(30 ILCS 105/5.708 new) Sec. 5.708. The Downstate Transit Improvement Fund.

(30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17) Sec. 6z-17. Of the money paid into the State and Local 

# ' '

(