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I 

573 CHAPTER 111%-PUBLIC UTILITIES 111% f 351 

court against the Authority for damages on account of any 

injury to his person shall file in the office of the secret.ary 

of the Board and also in the office of the General Attorney 

for the Authority either by himself, his agent, or attorney, 

a st.atement, in writing, signed by himself, his agent, or 

attorney, giving the name of the person to 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 or location where the accident occurred and 

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 Board may investigate all means of transportatiCln and the management thereof, the enfo:reement of its 

ordinances, rules and regulations, and the action, conduct 

and efficiency of all officers, agents and employees of the 

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 adopted this Act or which has granted rights to 

the Authority by ordinance. Each member of the Board 

shall have power to administer oaths, and the Secretary, 

by order of the Board, shall issue subpoenas to secure the 

attendance and testimony of witr1esses1 and the production 

of books and papers relevant to 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· 

ment for contempt or otherwise in the same manner 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 of this Act. If the application of any provision 

of this Act to any person or circumst.ance is held invalid it 

shall not affect the application of such pro\'ision to persons 

or circumstances other than those as to which it is invalid. 

344. Adoption of act by municipal corporations-Form 

of proposition 

§ 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 

the adoption of this Act be submitted to the electors at any 

regular election. The clerk of such municipality shall 

promptly certify the passage of such ordinance and the 

proposition to the proper election officials and thereupon it 

shall be the duty of the election officials to submit the 

question to popular vote. Public notice of the referendum 

shall be given in the manner provided by the general 

election law. If a majority of those voting on the question 

vote in the affirmative thereon, this Act shall be adopted 

in that city, village or incorporated 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 

not liable for any injury resulting from any act or omission 

in determining policy or exercising discretion, except: (1) 

for vnllful or wanton misconduct or (2) as othe:rwise provided by statute. 

(b) If any claim or action is instituted against a member 

of the Board of the Authority based 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 settlement of, sueh claim, except for that portion 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 operation of mass transit 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 Transit District Act". 
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111% ~ 352 CHAPTER 111%-PUBLIC U'HLITIES 574 

352, Definitions 

§ 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 or incorporated 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 Transit District created pursuant to Section 3 of this 

Act 

(h) "Interstate transportation authority" shall mean any 

political subdivision created by compact between this State 

and another state, which is a body corporate and politic 

and a political subdivision of both 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 other public or private 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. 

1 Paragraph 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 

of the corporaUJ authorities or by resolution approved by a 

majority vote of the county board of each participating 

municipality and county, and any county participating in a 

Metro East Mass 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 served by regularly 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 

contract for public mass transportation with an Interstate 

Transportation Authority. 

Upon the creation of any District, the clerk of the 

municipality o:r of the county, or the clerks of the several 

municipalities or counties, as the case may be, shall certify 

a copy of the ordinance or resolution creating the 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 1 when 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 of the board of trustees of the 

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 of the boartl in the same manner as provided for upon 

creation of the District. 

Any township may be annexed to a Metro East Transit 

District formed by one county pursuant to Section 3 of this 

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 of the 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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575 CHAPTER 111%-PUBLIC UTILITIES 111 % ~ 353.5 

be filed by the secretary of the board in the same manner 

as provided for upon creation of the District. 

Amended by P.A. 85-779, § 2, eff. Sept. 24, 1987. 

I Paragraph 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 

with boundary to enclose a unit area of contiguous 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 of counties 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 

circuit court of the county where the proposed district or a 

major part thereof is 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 in the court. The judge shall enter an 

order of record to set a date, hour and place for judicial 

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 that notice and cause such publication notice to be 

given as direeted. 

(c) After proof of such newspaper publication of notice 

has been made and filed in the cause and shown to the 

court in full accord with the prior order, the circuit judge 

shall hear all persons who attend and so request, as to 

location and boundary and name for the proposed district. 

After the hearing on such petition is completed, the circuit 

court by 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 

report in the circuit court. 

(e) When the vote is in favor of creation of such district, 

the circuit court by an order of record 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 S of whom shall be 

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 of trustees who are resident.s 

of a county shall he in proportion, 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 successor shall be a resident of whichever 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 6 of the Constitution of 1970, the chief execu· 

tive officer of that 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 of the 

preceding paragraph shall apply to the appointment of the 

successor to each trustee who is in office at the time of the 

publication of each decennial Federal census of population. 

(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 of Incorporation" for the district. The county clerk shall cause a duplicate of such "Certificate of Incorporation" to he filed 

in the office of the Secretary of State of Illinois. 

(g) The Board of Trustees 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 

district created under this Act, as now or hereafter amended. 

(h) The circuit court shall require the petitioners to post 

a surety bond for the payment of all costs and expenses of 

such proceeding and such referendum. When a district is 

creat.ed, the circuit court shall order the district to pay or 

reimburse others for all such costs and expenses. The 

surety bond shall not be 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. If the district acquires a mass transit facility, all 

of the employees in the operating and maintenance divisions of such mass transit facility 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 and benefit.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 enter the milit.ary service of 

the United States shall have the same rights as to the 
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111% ~ 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 be required 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 of the 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 of the local Mass Transit District shall 

repose in, and be exercised by, a Board of Trustees. If 

the Di.strict is created by only one municipality or only one 

county the corporate authorities or the county board chair· man with the consent of the county board of such municipality or county shall appoint either 3 or 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. 

If the 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, or fraction thereof, of 

such municipality or county. The first Trustees 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 4 years to be selected by lot. Thereafter, 

their successors shall serve for 4 years. Vacancies shall 

be filled for the unexpired term in the same manner as the 

original appointment 

Except in a Metro East Mass Transit District, no Trustee of any District may be an elected official of the municipality or municipalities or county or counties creating the 

District. A Trustee shall hold office until his successor has 

been appointed and has qualified. A certificate of the 

appointment or reappointment of any Trustee shall be filed 

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 

of the Board but not more than $200 per month. For the 

purposes of this Section, each District may determine what 

constitutes a business day. He shall also be entitled to the 

necessary expenses, including traveling expenses, incurred 

in the discharge of his duties. The powers of each District· 

shall be vested in the Trustees thereof in 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 of the majority of 

the Trustees present, unless in any case the bylaws of the 

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 contract for materials or services to be furnished 

or used in connection with operations of the 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 of the 

charges against him at least 10 days prior to the hearing 

thereon and has had an opportunity to be heard in person or by counsel In the event of the removal of any Trustee, 

a record of the proceedings, together with the charges and 

findings thereon, shall be filed in the office of the clerk or clerks of the creating county or counties or municipality 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 chief law 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 other provisions of this paragraph, employment of 

any person other than a managing director or secretary by 

any Metro East Mass Transit District created by a single 

county shall require the authorization of the 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 or police 

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 contract on nonscheduled routes within the territorial limits of 

the counties or municipalities creating the District, by 

whatever means it may 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 of Trustees of every 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 interest therein, including all or any 

part of the plant, equipment, vehicles, licenses, franchises, 

patents, property, contracts and agreements of every 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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577 CHAPTER 111%-PUBL!C UTILITIES 111 '!, ff 355.01 

District or if it is outside the area if it is necessary for the 

purposes of the District. 

(c) The Board of Trustees of every District which est.abJishes or acquires mass transit facilities may contract with 

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 of passengers beyond the territorial 

limit.s of the District or 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 other instruments 

necessary or convenient in the exercise of its powers; 

(4) to make, amend and repeal bylaws, rules and regula· 

tions not inconsistent with this Act; 

(5) to sell, transfer and dispose of any of its property or 

interest therein at any time upon such terms and conditions as it may determine, with public bidding if the value 

exceeds $1,000; 

(6) to invest funds, not required for immediate 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 of its 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, or from 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 be issued with maturities not exceeding 40 years from 

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 of the District. In case any Trustee whose signature 

appears on the bonds or coupons ceases to hold that office 

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 terms as the Board of Trustees shall determine, 

except that the selling price shall be such that the 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 of additional revenue bonds thereafter, which will 

share equally the revenue of the District, as may be 

deemed riecessary or advisable for the assurance of the 

payment of the bonds first issued. Any District may also 

provide in the ordinance authorizing the issuance of bonds 

under this Section that the bonds, or such ones thereof as may be specified, shall, to the extent and in the manner 

prescribed, be subordinat.ed and be junior in standing, with 

respect to the payment of principal and interest and the 

security thereof, to such other bonds as are designated in 

the ordinance. 

The ordinance shall pledge the revenue derived from the 

operation of the District for the purpose of paying the cost 

of operation and maintenance of the District, providing an 

adequate depreciation fund, and paying the principal and 

interest on the bonds of the District issued under this 

Section. 

No Metro East Mass Transit District may 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 District at the rate of not 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 for the transportation of pupils to and from school 

within such district pursuant to the provisions of Section 

29-15 of The School Code;S and 

(13) to provide for the insurance of any property, directors, officers, employees or operations of the District 

against any risk or hazard, and to self·insure or participate 

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 of this chapter. 

2 Chapter 85, U 801 et seq:. 

a Chapter 122, U W-15. 

355.01. Metro East Mass Transit Distrid,....'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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111% ~ 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 imposed pursuant to this Section 

shall be used only for public mass transportation systems, 

and the amount used to provide mass transit service to 

unserved areas of the District shall be in the same propor· 

tion to the total tax proceeds as the number of persons 

residing in such unserved areas is to the total population 

of the District. Except as otherwise provided in this Act, 

taxes imposed pursuant to this Section and civil penalties 

imposed incident thereto shall be collected and enforced by 

Uie State Department of Revenue. 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 of selling tangible personal property 

at retail 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 tax 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 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 same modes of procedure, as are prescnbed in 

Sections 1, la, le, 2 z (in respect to all provisions therein 

other than the State rate of tax 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 deduction from the tax to cover certain 

costs), 4, 5, Sa, 5c, 5d, 5e, Sf, 5g, 5h, Si, 5j, 6 4 (except that 

credit memoranda issued hereunder may not be used to 

discharge any State tax liability), 6a, 6b, 6c, 7, 8, 9, 10, 11, 

12, 13, 131/i and 14 of the "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 

"Use Tax 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 

should be made under this Section to a claimant instead 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 Metro 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 

producer of coal or other mineral mined in Illinois, is a sale 

at retail at the place where the coal or other mineral mined 

in Illinois is extracted from the earth. This paragraph 

does not apply to coal or other mineral when it is delivered 

or shipped by the seller to the purchaser at a point 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 

the Metro EaSt Mass Transit District 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 the Metro East Mass Transit District 

may impose a tax 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 personal property or in the form of real estate as 

an incident to a sale of service. The tax rate shall not 

exceed 1

/.% of the cost price of tangible personal property 

so transferred within the district. 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 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 of 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 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, excluding the exemp· 

tions provided in Sections ld, le, lf, 5k and 5l, and employ 

the same modes of procedure, as are prescnbed in Sections 

2 JO and shall include exemptions (d-2) and (d-3} unless the 

Board provides otherwise by ordinance (except that the 

reference to State in the definition of supplier maintaining 

a place of business 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 

that the returned merchandise c~dit 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 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 not be used to discharge any State 

tax liability), 18, 19 and 20 of the "Service Occupation T~ 

Act", as now or hereafter amended,19 as fully as if provi-
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579 CHAPTER 111 % - PUBLIC UTILITIES 111% ~ 355.01 

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 

under the "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 

Department may prescnOe. 

Whenever the Department determines that a refund 

should be made under this paragraph to a claimant instead 

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 not be made the subject o:f t.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 district at retail from a retailer, and 

which is titled or registered with an agency of this State's 

government, at a rate not to exceed 1/.% of the selling priee 

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 collected by the Department of 

Revenue for the Metro East Mass Transit District. Such 

tax must be paid to the St.ate, 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 tax or proof of exemption may he 

transmitted to the Department by way of the 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 or St.ate officer determine 

that this procedure wm expedite the processing of applications 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 of taxes, penalties and 

interest so collected in the manner 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, exclusions, exemptions and definitions of terms and employ the same modes of procedure, 

as are prescribed in Sectiona 2 24 (exeept the paragraph 

concerning the conveying of news, and except the definition of "retailer maintaining a place of business in this 

St.ate"), 8 25 (exeept provisions 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 under this paragraph to a claimant instead 

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 

pursuant to 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 Occupation Tax Act", as now or hereafter amended, shall permit the registrant to engage in a 

business which is taxed under the tax imposed pursuant to 

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, or the "Service Use Tax Act", as now 

or hereafter amended, shall be applicable with regard to 

any tax imposed pursuant to paragraph (c) of this 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 

passenger car of an insured person in settlement of a tot.al 

loss claim. The tax so imposed may not become effective 

before the first day of the 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 of Revenue 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 Department in 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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111 % ~ 355.01 CHAPTER 111'/a-PUBLIC UTILITIES 580 

troller the amount, :ro retained by the State Treasurer, 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 after receipt, by the Comptro\Jer, of the 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 

cause the orders to be drawn for the respective 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 thereof shall 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 and the filing of a certified copy 

of such ordinance with the State Department of Revenue, 

whereupon the Department of Revenue shall proceed to 

administer and enforce this Section on behalf of the Metro 

East Mass Transit District as of the effective date of the 

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 trust fund 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 Department to be necessary for the payment 

of refunds. Within 10 days after receipt by 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 

2 Chapter 120, U~ 440, 440a, 440c, 441. 

3 Chapter 120, U 441c, 442. 

4 Chapter 120, UU 443 to 444a, 444c to 444j, 445, 

5 Chapter 120, Uff 445a to 450, 451, 452 to 453. 

6 Chapter 120, U 440 et seq. 

7 Chapter 120, ~ 439.1 et seq. 

8 Chapter 24, ~ 8-11-1. 

S Chapter 34, ~ 409.1. 

10 Chapter 120, q 439.102. 

ll Chapter 120, ~U 439.102a, 439.103. 

12 Chapter 120, ff 439.104. 

13 Chapter 120, U 439.105, 439.107, 439.108. 

14 Chapter 120, q 439.109. 

l5Chapter 120, U~ 439.110 to 439.112. 

16 Chapter 120, U 44lh. 

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, q 439.101 et seq. 

21 Chapter 120, ~ 439.31 et seq. 

22 Chapter 24, ri 8-11-5. 

23 Chapter 34, f 409.2. 

24 Chapter 120, ~ 439.Z. 

25 Chapter 120, q 439.3. 

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 district pursuant 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 

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 Tax Act", enacted by the Eighty-second General Assemb]y,2 shall permit 

such person to engage in a business which is taxable 

under any ordinance or 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 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. 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, 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 of procedure, as are prescribed in Sections 2 and 3 3 

(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 except that credit 

memoranda issued hereunder may not be used to discharge any State W liability) of the "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 tax liability hereunder by 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 are reqnired 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 district 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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581 CHAPTER 111%-PUBLIC UTILITIES 111 % ff 355.05 

with an agency of this 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 Department of Revenue for any district imposing 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 of registration fpr the property may be issued. The tax or proof of exemption may be 

transmitted to the Department by way of the 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 of applieations 

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 

of taxes, penalties and interest so collected in the manner 

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, limit.ations, penalties and defini-

:ions of terms, and employ the same modes of procedure, as are prescribed in Sections 2 and 4 4 (except provisions 

pertaining to the St.ate rate off t.ax; and, with relation to 

the provisions of the "Use Tax Act" referred to therein, 

except provisions concerning collection or refunding of the 

tax by ret.ailers, and except the provisions of Section 19 5 

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) of the "Automobile Renting 

Occupation and Use Tax Act", enacted by the Eighty-second General assembly, as the same are now or may 

hereafter be 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 

should be made under this Section 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 refunds 

shall be paid by the State Treasurer out of the Metro east 

Mass Transit District tax fund created pursuant to Section 

5.01 of this 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 or before 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 

retained by the State Treasurer to cover the costs incuITed 

by the Department in administering and enforcing this 

Section as provided herein. The Department at the time 

of each monthly disbursement to the districts shall prepare 

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 and the 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 or resolution imposing a tax hereunder 

or effecting a change in the rate thereof shall be effeetive 

on the first day of the 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 Department of Revenue on or not later than 5 days after passage 

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 of the ordinance or 

resolution discontinuing the tax or effecting a change in 

rate, transmit to the Department of Revenue· a certified 

copy of the 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, n 1701 et seq. 

3 Chapter um, tu 1702 and 1703. 

4 Chaptllr 120, UU 1702 and 1704. 

5 Chapter 120, U 489.19. 

6 Chapter 111%, fl 355.01. 

355.05. Powers in dealing with Regional Transportation Authority 

§ 5.05. In addition to all its other powers, each District 

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 of years or duration 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 District and 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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111 % ~ 355.05 CHAPTER 111'/a-PUBLIC UTILITIES 582 

as provided in the "Regional Transportation Authority 

Act"; 

(d) to acquire from the Regional Transportation Authority or Service Board any Public Transportation Facility, as 

defined in the "Regional Transportation Authority Act", 

by purchase contract, gift, grant, ~change for other properly 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 

case the District may acquire a joint, 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, or transfer to, or grant to or provide for 

the use by the Regional Transportation Authority or a 

Service Board any Publie Transportation Facility, as defined in the "Regional Transportation Authority Act" upon 

such terms and for such consideration, as the District may 

deem proper; 

(f) to cooperate with the Regional Transportation Authority or a Service Board for the protection of employees 

of the District and users of public transportation facilities 

against crime and also to protect such facilities, but neither the District, the member of its 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 prevent the commission of crimes by 

fellow passengers or other third persons or for 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 the powers 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 of Trustees of any district created 

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 5 2 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 

such resolution. The question shall be certified, submitted 

and notice of the election shall be given in accordance witQ, 

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 of Trustees of any district which 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 shall be certified, submitted 

and notice of the election shall be given in accordance with 

the general election law. The proposition shall be in 

substantially the following form: 

Shall the board of trustees of 

...... Mass Transit District be 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 of such proptorly to a rate not to 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. 

2 Paragraph 355 of this chapter. 

355.2. Employee benefits-Municipal Retirement Fund 

§ 5.2. Any district may provide employee benefits 

through the Illinois Municipal Retirement Fund if it meets 

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 et seq. 

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. 

1 Chapter 85, ~ 6601 et seq. 

356. Exemption from 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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583 CHAPTER 111%-PUBLIC UTILITIES 111% ~ 359 

and special assessments of the 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 of its 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 District shall be subject to the provisions of 

"An Act concerning public utilities", approved June 29, 

1921, as heretofore and hereafter amended.l 

1 Paragraph 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 

Act l 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 local mass 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 

thereupon present such petition to the court which shall be 

not less than 20 nor more than 45 days after the date the 

petition was filed. The court shall give notice of the 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 transit district for final action. The clerk of 

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. 

1 Paragraph 358.l of this 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. If the 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 that ordinance shall be filed of record. 

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€a of 

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 

not subdivided into municipal lots and blocks; (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 transit district, 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. If such area of land is located in 2 or more 

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 transit district from which 

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 the allegations 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 determine that there is no longer a public need for its 

transportation services or that other 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 which created 

it. If the participating municipalities and counties approve 

of such discontinuance, they may by ordinance or resolu· 
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( 
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. After payment of all its debts and settlement of all 

vbligations and claims, any funds remaining after the sale 

and disposition of its property shall be disposed of by 

payment to the treasurer of the eounty or municipality 

which created it, or if created by 2 or more municipalities 

or counties, by payment to the several treasurers, first, to 

repey in whole or pro rata, funds advanced to the authority, and the balance, if any, pro rata according to the 

length of scheduled transportation route miles operated in 

the srveral municipalities and unincorporated areas of the 

several counties during the preceding calendar year. 

CRIMINAL CARELESSNESS 

AN ACT to revise the law in relation to criminal jurisprudence. 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 

train shall 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 of Act 

§ 3. The provisions of this Act shall be enforced by the 

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, obstruct or prevent the action of 

any meter provided for the purpose of measuring and 

registering the quantity of gas, water or electric current 

consumed by or at any burner, orifice or place, or supplied 

to any lamp, motor, machine or appliance, or shall cause or 

procure or aid the injuring or altering of any such meter or the obstruction or prevention of its 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 or motor or other 

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 

part of any mechanical or electrical 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 order to avoid duplication of facilities a.nd to minimize disputes between electric suppliers 

which may resuit in 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. It is declared to be the public policy of this State, 

pursuant to paragraphs (h) and (i) of Section 6 of Article 

VII of the 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 or function may not be 

j 

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t 

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Department 

' 

Illinois 

of Revenue 

Raymond T. Wagner, Jr. , Director 

Informational Bulletin FY 95-23 

December 1994 

• St. Clair County Metro-East Transit District Tax Increase 

I TO: I All Retailers How do I pay the tax? When must I begin 

collecting and paying this Conducting The 0.75 percent rate for this tax increase? Business in the St. tax is part of the combined rates 

Clair County which are preprinted You must begin collecting and 

Metro-East Transit paying this tax increase on 

• on Lines 4a and 5a of your taxable sales you make on or District Form ST-1, Sales and Use after January 1, 1995. 

Tax Return, 

Effective January 1, 1995, the 

on Lines 4a and 5a of your 

What are my special filing 

St. Clair County Metro-East • instructions? 

Transit District will increase its Form ST-2, Multiple-Site 

mass transit tax rate from 0.25 Form (for multiple-site filers), • ST-1 and ST-2 filers: 

percent to 0. 75 percent. and 

on Section 6, Line 4, of your • Monthly filers 

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, CanWhat are the 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 use to collect and pay is due on or before April Smithton, Stites, Stookey, and the tax on the rate table en- 20, 1995. 

Sugar Loaf. closed with this bulletin. If you 

need assistance in determining • Annual filers 

It may be necessary to adjust your rates, call our Taxpayer 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 or 217 782-3336. the tax increase. It is due 

that, beginning on January 1, on or before January 20, 

you will be collecting and paying 1996. the correct amounts. 
Page2 

• ST-556 filers: 

Any new returns you 

order will be preprinted 

with the correct rate. In 

the meantime, you may 

use your existing stock. 

Remember to use the 

new rate of 7 percent 

(see the enclosed rate 

table) on Section 6, Line 

4, of your return for any 

transaction with a delivery date on or after 

January 1, 1995. 

What do I do when a 

customer pays me after 

January 1 for a purchase 

made earlier? 

If the original purchase was 

subject to 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. Our telephone numbers and address are printed at 

the bottom of this bulletin. 

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

FY 95·23 

ft, PRINTED ON RECYCLED PAPER- SOY-BASE INK 

»:--;'t, BY AUTr!ORITY OFT HE STATE OF ILLINOIS 

,..,.. (23,300 copies- 12194 - P.O. Number 5-07191 

I 

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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 outlines the 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-556 for all incorporated municipalities and unincorporated 

areas within the St. Clair County Metro-East Transit 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% 
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3610/5.01. Metro East Mass Transit District: use and occupation taxes, 70 ILCS 3610/5.01 

70 ILCS 3610/5.01 

lVEST'S SMITH-1-IURD ILLINOIS COMPILED STATUTES ANNOTATED 

CHAPTER 70. SPECIAL DISTRICTS 

TRANSIT 

ACT 3610. LOCAL MASS TRANSIT DISTRICT ACT 

361015.01. Metro East Mass Transit District; use and occupation taxes 

§ 5.01. Metro East Mass Transit District; use and occupation taxes. 

(a) The Board of Tmstces of any :\Jetro East Mass Transit District may, by ordinance adopted with the concurrence of twothirds of the then tmstees, impose throughout the Dist1ict any or all of the taxes provided in this Section. All taxes imposed 

under this Section shall be used only for public mass transportation systems, and the amount used to provide mass transit service 

to unseffed areas of the District shall be in the same proportion to the total tax proceeds as the number of persons residing 

in the unserved areas is to the total population of the District. Except as othenvise provided in this Act, taxes imposed under 

this Section and civil penalties imposed incident thereto shall be collected and enforced by the State Department of Revenue. 

TI1e Department shall have the power to administer and enforce the taxes and to detennine a!! rights for refunds for erroneous 

payments ofthe taxes. 

(b) The Board may impose a Metro East Mass Transit District Retailers' Occupation Tax upon all persons engaged in the 

business of selling tangible personal property at retail in the district at a rate of\'4 of l % of the gross receipts from the sales made 

in the course of such business within the district. The tax imposed under this Section and ail civil penalties that may be assessed 

as an incident thereof shall be collected and enforced by the State Department of Revenue. The Department shall ha\'e 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 tem1s and employ the same modes of procedure. as are prescribed in 

Sections 1, 1 a, I a-1, l c, Id, 1 e, If, Ii, lj, 2 through 2-65 [FN l J (in respect to all provisions therein other than the State rate of 

tax), 2c, 3 [FN:2] (except as to the disposition of taxes and penalties collected), 4, 5. Sa, Sc, 5d, Se, Sf, Sg, Sh, Si, Sj, Sk, 5/, 6, 

6a, 6b, 6c, 7, 8, 9, I 0, 11, 12, 13, and 14 of the Retailers' Occupation Tax Act l FN3] and Section 3-7 of the 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 hereunder by 

separately stating the 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, [FN5] in accordance with such bracket schedules as the Department 

may prescribe. 

Whenever the Department determines that a refund should be made under this Section to a claimant instead 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 the notification from the Department. The refund shall be paid by the State Treasurer out 

of the Metro East Mass Transit District tax fund established under paragraph (g) of this Section. 

If a tax is imposed under this subsection (b ), a tax sha!l also be imposed under subsections ( c) and ( d) of this Section. 

For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale, by a producer of coal or 

other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Jl!inois is extracted from 

the eaith. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser 

at a point outside 111inois so that the sale is exempt under the Federal Constih1tion as a sale in interstate or foreign commerce. 

Nothing in this Section shall be constrned to authorize the Metro East Mass Transit District 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) Ifa tax has been imposed under subsection (b), a :vletro East Mass Transit District Service Occupation Tax shall also be 

imposed upon a!! persons engaged, ill the district, in the business of making sales of sen'ice, who, as an incident to making those 

sales of service, transfer tangible personal property within the District, either in the fom1 of tangible personal property or in the 
3610/5.01. Metro East Mass Transit District: use and occupation taxes, 70 !LCS 361015.01 

fom1 of real estate as an incident to a sale of serYice. The tax rate shall be Y4% of the selling price of tangible personal property 

so transferred within the district. The tax imposed under this paragraph and all civil penalties that may be assessed as an incident 

thereof sha!l be collected and enforced by the State Department of Revenue. The Department shall ha Ye full power to administer 

and enforce this paragraph: to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in 

the manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the effoneous 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 haw 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 la-1, 2 [FNO] ( except that the reference to State in the definition of supplier 

maintaining a place of business in this State shall mean the Authority), 2a, 3 through 3-50 [f;\"7] (in respect to all provisions 

therein other than the State rate of tax). 4 [Fl\1'] (except that the reference to the State shall be to the Authority), 5, 7, 8 [FK9] 

( except that the jmisdiction 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 of taxes 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 of the Retailers' 

Occupation Tax Act) [Fl\12], 13 [8'13] (except that any reference to the State shall mean the District). the first paragraph 

of Section 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax Act [f;-.:J4] and Section 3-7 of the Unifom1 Penalty and 

Interest Act, as fully as if those provisions were set forth 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 a single amoum. with State tax that servicemen are authorized to collect under the Service Cse Tax Act, [FN 15] 

in accordance with such bracket schedules as the Department may prescribe. 

Whenever the Department detem1ines that a refund should be made under this paragraph to a claimant instead of issuing a 

credit memorandum, the Department shal! notify the State Comptroller, who shall cause the warrant to be drawn for the amount 

specified. and to the person named. in the notification from the Department. The refund shall be paid by the State Treasurer out 

of the Metro East Mass Transit District tax fund established under paragraph (g) of this Section. ( 

Nothing in this paragraph shall be constmed to autho1ize the District to impose a tax upon the privilege of engaging in any 

business which under the Constitution ofthe United States may not be made the subject oftaxation by 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 of using. in the district, any item of tangible personal property that is purchased outside the dist1ict at retail from 

a retailer, and that is titled or registered with an agency of this State's government, at a rate of'!i% of the selling price of the 

tangible personal property within the District, as "selling price" is defined in the Use Tax: Act. The tax shall be collected from 

persons whose Jllinois address for titling or registration purposes is given as being in the District. The tax shall be collected 

by the Department of Revenue for the Metro East Mass Transit District. The tax must 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 tax or proof of exemption may be transmitted to the Department byway of the State agency ,vith which, or 

the State officer with ,vhom, the tangible personal property must be titled or registered if the Department and the State agency 

or State officer detem1ine that this procedure will expedite the processing of applications 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 of taxes, penalties and interest so collected in the manner hereinafter provided; and to detennine 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, exclusions, exemptions and definitions of tenns and employ the same modes of procedure, as arc 

prescribed in Sections 2 [FN16] (except the definition of"retailer maintaining a place of business in this State"), 3 through 

3-80 [Fl\! 71 ( except provisions pertaining to the State rate of tax, and except provisions concerning collection or refunding of 

the tax by retailers). 4, l I, 12, l 2a, 14, 15, 19 [Fl\! 8] ( except the portions pertaining to claims by retailers and except the last 

paragraph concerning refunds), 20, 21 and 22 of the Use Tax: Act [Fi\'.19] and Section 3-7 of the Uniform Penalty and Interest 

Act, that are not inconsistent with this paragraph, as fully as if those 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 of issuing a 

credit memorandum, the Depaitment shall notii)' the State Comptroller, who shall cause the order to be drawn for the amount 

specified. and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out 

of the Metro East Mass Transit District tax fund established under paragraph (g) of this Section. 

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

referendum on the question of"·hether the tax rates for the Metro East Mass Transit District Retailers' Occupation Tax. the 

Metro East Mass Transit District Service Occupation Tax, and the Metro East Mass Transit District Use Tax for the District 

should be 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 of the District at the next election, in accordance with 

the general election law. 

The proposition shall be in substantially the following form: 

Shall the tax rates for the Metro East Mass Transit District Retailers' Occupation Tax, the Metro East Mass Transit District 

Service Occupation Tax, and the Metro East Mass Transit District Use Tax be increased from 0.25% to 0.75%'? 

The votes shall be recorded as "YES" or "NO". If a majority of all rntes cast on the proposition are for the increase in the 

tax rates, the Metro East Mass Transit District shall begin imposing the increased rates in the District, and the Department of 

Revenue shall begin collecting the increased amounts, as provided under this Section. An ordinance imposing or discontinuing 

a tax hereunder or effecting a change in the r<1-te thereof shall be adopted and a certified copy thereof filed with the Depmtment 

on or before the first day of October, whereupon the Depa1tment shall proceed to administer and enforce this Section as of the 

first day of January 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 of Trnstees may adopt by a majority vote an ordinance at any time 

before January I, 1995 that excludes from the rate increase tangible personal property that is titled or registered with an agency 

of this State's government. The ordinance excluding titled or registered tangible personal property from the rate increase must 

be filed with the Deparhnent at least 15 days before its effective date. At any time after adopting an ordinance excluding from 

the rate increase tangible personal prope1ty that is titled or registered with an agency of this State's government. the Metro East 

Mass Transit District Board ofTmstees may adopt an ordinance applying the rate increase to that tangible personal property. 

The ordinance shall be adopted, and a certified copy of that ordinance shall be filed with the Department, on or before October 

I, \\'hereupon the Department shall proceed to administer and enforce the rate increase against tangible personal property titled 

or registered with an agency of this State's government as ofthe following January I. 

(e) A certificate o:fregistration issued by the State Department of Revenue to a retailer 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 

under the tax imposed under paragraphs (b ), (c) or (d) of this Section and no additional registration shall be required under the 

tax. A certificate issued under the Use Tax Act or the Sen·ice Use Tax Act shall be applicable with regard to any tax imposed 

under paragraph (c) ofthis Section. 

(t) The Board may impose a replacement vehicle tax of550 on any passenger car, as defined in Section 1-157 of the Illinois 

Vehicle Code, (FN22] purchased within the district area by or on behalf of an insurance company to replace a passenger car of 

an insured person in settlement of a total loss claim. The tax imposed may not become effective before the first day of the month 

following the passage of the ordinance imposing the tax and receipt of a certified copy of the ordinance by the Department of 

Revenue. The Department of Revenue shall collect the tax for the district in accordance with Sections 3-2002 and 3-2003 of 

the lllinois Vehicle Code. (F~23] 

The Department shall immediately pay O\'er to the State Treasmer, ex officio, as trustee, all taxes collected hereunder. On or 

before the 25th day of each calendar month, the Department shall prepare and cettify to the Comptroller the disbursement of 

stated sums of money to named districts, the districts to be those from which retailers have paid taxes or penalties hereunder to 

the Depa1tment during the second preceding calendar month. The amount to be paid to each district shall be the amount coltected 

hereunder during the second preceding calendar month by the Depaiiment, less any amount detem1ined by the Department to 

be necessary for the payment of refunds. Within 10 days afterreceipt by the Comptroller of the disbursement certification to the 

districts, provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders 

to be drawn 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 copy thereof filed 

with the Department on or before June I, whereupon the Department of Revenue shall proceed to administer and enforce this 

Section on behalf of the Metro East Mass Transit District as of September I next following such adoption and filing. Beginning 

Jrnmary 1. I 992, an ordinance or resolution imposing or discontinuing the tax hereunder shall be adopted and a certified copy 

thereof filed with the Department on or before the first day of July. whereupon the Department shall proceed to administer and 

enforce this Section as of the first day of October next following such adoption and filing. Beginning January I, 1993. except 

as provided in subsection (d-5) of this Section, an ordinance or resolution imposing or discontinuing the tax hereunder shall be 

adopted and a certified copy thereof filed with the Department on or before the first day of October, whereupon the Department 

shall proceed to administer and enforce this Section as of the first day of January next following such adoption and filing. 

(h) The State Department of Revenue 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 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 

lllinois the amount to be paid to the District, \vhich shall be the then balance in the fund, less any amount determined by the 

Department to be necessary for the payment of refunds. Within IO days after receipt by the Comptroller of the certification of 

the amount to be paid to the District. the Comptroller shall cause an order to be drawn for payment for the amount in accordance 

with the direction in the certification. 

CREDIT(S) 

1993 Main Volume 

Laws 1959, p. 1635, § 5.01, added by P.A. 81-1471, § 1, eff. Sept. 1 l, 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 Pocket Pait 

Amended by P.A. 88-115. § 5, eff Oct. 28, 1993; P.A. 88-672, § 20, eff. Dec. 14, 1994. 

FORMER REVISED STATUTES CIT ATIOK 

1993 Main Volume 

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

l Fl\ l ]35 ILCS 120.:J to 120 J a-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'! 2 to 120114. 

[FN4]351LCS 735·3-7. 

[FN5]35 ILCS 105,J et seq. 

[FN6]35 ILCS 115'1a-l. 115-'2. 

rFN7]35 ILCS 1 J512a, l J5r3 to l !5'3-50. 

[FN8]35 TLCS 11 :5,4. 
( 

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

[F:\"9]35 ILCS 115 :', 115 7. !15.8. 

[FN10]35 ILCS I 15 9. 

[F;--..:111 Fomm Ill.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\l 8]35 JLCS !05 4, 105 11, 105.'l 2, l 05..-!2a, 105 14, 105-15, 105 l 9. 

[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 and 513-2003. 

HISTORICAL AND STATUTORY NOTES 

P.A. 82-1013, in the last sentence of the first paragraph of subd. (b ), inserted "and shall include exemptions (t) and (g) therein 

unless the Board provides othenvise by ordinance"; in the last sentence of the first paragraph of subd. ( c ), inserted ··and shall 

include exemptions (d-2) and {d-3) unless lhe Board provides other1.vise by ordinance"; in the second sentence of the second 

paragraph of subd. (d), inserted ··and sha!l 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 othenvise by ordinance''. 

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 amendment by P.A. 83-114, apparently inadvertently omitted subds. (g) and (h), which 

were not shown as deleted in strikeout. 

P.A. 83-1353, in the first paragraph of subd. (t), substituted "'passenger car" for ''motor vehicle'' and ··vehicle": substituted 

·• 1-157" for "'l-146"; inserted ·'within the district area"; and substituted the present second sentence for a fon11er second sentence 

which read, "Within 30 days of passage of an ordinance imposing such tax, the corporate authority shall forward a certified 

copy of such ordinance to the Department of Revenue:'. 

Art. I, § 3, of P.A. 84-832, the 1985 Revisory Act, provides in part that Art. II provides for the nonsubstantiye revision or 

renumbering or repeal of sections by two or more Public Acts of the 83rd General Assembly which were not resolved by lhe 

General Assembly. For provisions of Art. I,§ 1, relating to intent and supersedure, Art. I, § 3, and Art. IV,§ I, relating to 

effective dates and acceleration of Acts with later effective dates or extension or revival of repealed Acts, see notes following 

ch. 23, ~j 5-5. 
361015.01. Metro East Mass Transit District; use and occupation taxes, 70 ILCS 3-610!5.01 

P.A. 84-1481, in the first paragraphs ofsubds. (b) and (c). inserted "excluding the exemptions provided in Sections ld, le, lf, 

5k and 5/": and in the second paragraph of subd. ( d). inserted "( except the exemptions relating to enterprise zones)". 

P.A. 87-205, Art. 2, in the subdiYision relating lo adopting and filing a certified copy of an ordinance or resolution imposing or 

discontinuing the tax hereunder, or effecting a change in the rate thereof, added provisions covering the respective time periods 

beginning with Jan. I, 1992 and beginning with Jan. l. 1993. 

P.A. 87-205. Art. 4, revised stahitory references and language relating to the enactment of the Unifom1 Penalty and Interest Act. 

Section 5-l of P.A. 87-205, approYed September 3, 1991. as amended by P.A. 87-1189, Art. I,§ 4, provides: 

"EffectiYe date. Articles 3 and 4 take effect January I. 1994. Articles I and 5 take effect upon becoming law.'' 

P.A. 87-895. the Firs! 1992 General Re\"iSOf)' Act, proYides in Article 2 for the revision and renumbering of certain Sections 

of Acts which ha\·e been added or amended by more than one Act of the 87th General Assembly: incorporates amendments to 

repealed Acts into successor laws passed by the same General Assembly; conects errors, revises cross-refefences and deletes 

obsolete text 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 of subsec. (c); inserted 

"Metro East Mass Transit District Use" in the first sentence ofsubsec. (d); inserted subsection (d-5) authorizing a referendum 

on increased tax rates; and inserted, in the third sentence of subsec. (g), the exception referring to subsec. ( d-5). 

Section 99 of P.A. 88-115, as added by§ 15 of P.A. 88-506 (S.B. 707), proYides: 

"This Act takes effect upon the effective date ofthis amendato1y Act of 1993 (Senate Bill 707 of the 88th General Assembly) 

and applies retroactively to July 23, 1993. Any action taken by a county board or any other local official under subsection ( d-5) 

of Section 5.01 of the Local Mass Transit DistJict Act between July 23, 1993 and the effectiYe date of this amendatory Act of 

1993 (Senate Bill 707 of the 88th General Assembly) in accordance with Public Act 88-l 15 is valid." 

Section 99 of P.A. 88-506, approved Oct. 28, 1993, provides: 

"This Act takes effect upon becoming law.'' 

P.A. 88-672, in subsec. (d-5). added the fourth paragraph. 

P.A. 88-672 incorporated lhe amendment by P.A. 88-115. 

CROSS REFERENCES 

Pledge of funds to Development Finance Authority, see 20 ILCS 3505 7.59. 

Southwestem IHinois Development Authority pledge of receipts for local go,·emment securities, see 70 JLCS 520!7.2. 

ADMINISTRATJVE CODE REFERENCES 

Rules implementing and authorized by this section, see 86 IL.Adm. Code 370.101 et seq., 380.101 et seq., 390.101 et seq. 

LIBRARY REFERENCES 

Municipal Corporations 956( L ). 

WESTLA W Topic No. 268. 

C.J.S. Municipal Corporations§ 1978 et seq. 

NOTES OF DECISIONS 

r·J'c'.,t 

( 

( 
361015.01. Metro East r:.ass Transit District: use and occupation taxes, 70 !LCS 361015.01 

Constmction with other Jaw 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], and the 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 of power companies within meaning of use tax provisions goYerning receipt of physical possession of taxable 

goods. Union Elec. Co. v. Department of Revenue. 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#, •: 355.0 l; ch. 120. ~ 440 et seq.# 371 1317. Ill.App. 

5 Dist. 1986. Evidence regarding gross sales for one month at one of taxpayers' seven furniture stores supp011ed Depa11ment of 

Revenue's assessment of tax deficiencies under this act. in absence of e\·idence regarding gross sales at the other stores. Smith 

\'. Department of Revenue, 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. l l I 2f3 S.lLA. ch. 24, i· 8-11- l: ch. 111 #, f 355.0 I; ch. 120, i'. 440 et seq. # 3 71 1317, Ill.App. 

5 Dist. !986. Department ofRe\'enue's assessment oftax deficiencies arising from three taxpayers' alleged ownership of seven 

furniture stores were valid even without evidence that two of the taxpayers actually owned the stores, where taxpayers both 

received notices of liability and notices of administrati\'e hearing, but failed to appear, and taxpayers' attorney raised no objection 

and adduced no evidence regarding taxpayers' tax liability. Smith v. Depa1tment of Revenue, App. 5 Dist. I 986, 97 111. Dec. 846, 

143 lll.App.3d 607, 493 J\".E.2d 653 . 

. 1: 
I 

( 
lll'la ~ 244 CHAPTER 111 % - 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 of the premises, to zone such area for residential 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 it determines are for the best interests of the 

authority and the purposes for which it was created. 

Added by Laws 1957, p. 1599, eff. July 6, 1957. 

245. Disposition of property 

§ 22. To sell and dispose of property, 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 of way 

§ 23. To grant easements and rights of way. 

Added by Laws 1957, p. 1599, eff. July 6, 1957. 

247. Protection of public health 

§ 24. To make such regulations as it deems necessary 

to protect public 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-Water and 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 use thereof and make 

reasonable charges therefor to such residents and businesses. 

Added by Laws 1957, p. 1599, eff. July 6, 1957. 

249. Pollution of watershed 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 that feeds a reservoir of the authority, the authority may, by ordinance, 

prevent pollution of waters which feed its reservoir for a distance of 5 miles upstream from the headwaters of its 

reservoir and may abate any cause of pollution within that 

area as a nuisance. 

Added by Laws 1957, p. 1599, eff. July 6, 1957. 

250. Acquisition of easements 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 therein named. 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, it is 

not the intent of the General Assembly to inWrfere with 

the power of municipalities to provide for the retail distribution of water to thefr residents or the customers of their 

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 of the lllinois Municipal Code I or 

est.ablished by operation of law 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% of the population of a county (hereinafter referred 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 of the 

home county but 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 water commission 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 county water commission and 

such additional debts and obligations as are incurred by 

such commission after such date and prior to the appoint· 

ment of the 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 pursuant to Division 135 of the 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 of excluded 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 
( 

( 
( 

.l 

553 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 of the home county. As used in 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 

unit of local government is not an excluded unit. No other 

water commission shall be constituted under Division 135 

of the 11linois Municipal Code in any home county after the 

effective date of this Act to provide water from any source 

located outside the home county. Except as authorized by 

a county water commission, no home county or included 

unit shall enter into any new or renew or extend any 

existing contract, agreement or other arrangement for 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 unit of local 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· ,ble relationship to the actual cost of providing and delivring the water; this provision is declarative of eristing 

Jaw. It is declared to be the Jaw of this State pursuant to 

paragraphs (g) and (h) of Section 6 of Article VII of the 

Illinois Constitution that in any home county, the pro-vi· 

sions of this Act and Division 135 of the Illinois Municipal 

Code, as modified and supplemented by this Act, constitute a limitation upon the power of any such county and 

upon all units of local 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, supply or distribute water or to 

establish any water commission for such pu:rposes involv· 

ing water from any source located outside the home coun· 

ty in a manner other than as provided or permitted by this 

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 such county and with respect to 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 included unit Lake Michigan water in an 

amount up t.o the then current Department of Transportation 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 of the home county, to be appointed by 

the chairman of the county board of such county with the 

advice and consent of the county board; 

(ii) one commissioner from each county board district 

within the home county, to be appointed by the 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. 

The mayors of the respective county board districts 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 

largest population voting for a commissioner upon not less 

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 of their number to serve for terms 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 of their num· 

ber to serve for tenns of 2 years, 1

h of their number to 

serve for terms of 4 years and 1/a of their number to serve 

for terms of 6 years, any odd number of commissioners 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 of the governing board or an officer or employee 

of such county or any unit of local government within such 

county. A commissioner is eligible for reappointment 

upon the expiration of his term. A vacancy in the office of 

a commissioner shall be filled for the balance of the 

unexpired term by appointment and qualification as to 

residency in the same manner as the original appointment was made. Each commissioner shall receive the same 

compensation which shall not be more than $600 per year, 

except that no such commissioner who is a member of the 

governing board or an officer or employee 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. 

A quorum shall be a majority of the commissioners then in 

office. All ordinances or resolutio.ns shall be passed by 

not less than a majority of a quorum. No commissioner or 

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 or work or materials, or the 

profits thereof, or services to be performed for or by the 

commission. A violation of any of the foregoing provi· 
( 

( 
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 aggregate to 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 of the 

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 be levied upon and collected 

from all of the taxable property within the territory of the 

county water commission. Dissolution of the county water commission for any reason shall not relieve 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 other taxes 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 be issued in one or more series, and 

shall bear such date or dates, mature at such time or times 

and in any event not more than 40 years from the date 

thereof, be sold at such price at private or public sale as 

determined by a county water commission, bear interest at 

such rate or rates such that the net effective interest rate 

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 of indebtedness and tax anticipation warrants subject to interest rate limitations set forth therein", approved 

May 26, 1970, as now or hereafter 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 without the State of Illinois, 

be subject to such tet'ffiS of redemption, and contain or be 

subject to such other terms as the ordinance or resolution 

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 

5 4 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 135 of the 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 in subsection (d), from the home county or includ· 

ed units, in such amounts and in such terms "as agreed by 

the governing bodies of the commission and the home 

county or included units. 

(h) No county water commission constituted pursuant W 

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 that persons 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 out the terms of any contract for the supply 

of water entered into by such county water commission or 

unit of local government for the term of such contracts or 

loans. 

f1 

!i 

II 

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( 
( 

555 CHAPTER 111%-PUBLIC UTILITIES 111% ~ 254 

1 Chapter 24, ~ 11-135-1 et seq. 

2 Chapter 34, ~ 6401 et seq. (repealed). 

8 Chapter 17, ~ 6602. 

4 Paragraph 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 · 

Act of the General Assembly known as the Water 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 of the 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 of existing commissions shall be 

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 Act of 1985. All acts of existing commissions 

from the time of organization thereof to the effective date 

of this Act, an<l not in conflict with the Constitution of this 

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 subject to 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 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 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 the following form: 

Shall the (insert corporate name of YES 

county water commission) impose 

(state type of tax or t.axes Ul be im- NO 

posed) at the 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 State Department of Revenue. 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 of commissioners may impose a County 

Water Commission Retailers' Occupation Tax upon all 

persons engaged in the business of selling tangible personal property at retail in the territory of the 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 of 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 paragraph, the Department and persons 

who are subject to this paragraph shall have the same 

dghts, 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 Sections 1, la, le, 2 2 (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, soft drinks, 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, 3 3 (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, S 4 (except 

that credit memoranda issued hereunder may not be used 

to discharge any State tax liability), Sa, 6b, Sc, 7, 8, 9, 10, 

11, 12, 13 and 131/2 of the "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" were set forth herein. 

Perscins subject to any tax imposed pursuant to the 

authority granted in this paragraph 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 

"Use Tax Act" ,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. 
( 

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( 
111%~254 CHAPTER 111 % - PUBLIC UTILITIES 556 

Whenever the Department determines that a reiuud 

should be made under this paragraph to a claimant instead 

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 tax fund established pursuant to 

paragraph (g) of this Seetion. 

For the purpose of determining whether a tax authorized under this paragraph is applicable, a retail sale, by a 

producer of coal or other mineral mined in Illinois, is a sale 

at retail at the place where t.he coal or other mineral min"d 

in 111inois is extracted from the earth. This paragraph 

does not apply to coal or other mineral wher. it is delivei'ed or shipped by the seller to the purchaser at 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 commission may impose a tax upon all persons engaged, in the 

ter11itory of the commission, in the business of making 

sales of service, who, as an incident to mak:ing such sales 

of service, transfer t.angible personal property within the 

t:erritory. The tax rate shall not exceed 1/4% of the cost 

price of tangible personal property so transferred 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 Depa11ment shall have full 

power to administer and enforce this paragraph; to collect 

all taxes and penalties due hereunder; to dispose of 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 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 of tenns, and employ the same modes of procedure, 

as are prescribed in Sections 2 10 (except that the reference 

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, B 11 (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, 

soft drinks, and food which has been 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 of taxes and penalties coliected, and except for the provision allowing suppliers a 

deduction from the tax to cover certain cosrs, and except 

that the 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 shall mean the territ-Ory of the commission), the first 

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", as now or hereafter amended,19 as fully as if provisions 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 granted in 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 tax for 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) of Section 4.03 of the 

"Regional Tra.'"lsportation Authority Act", pursuant to 

such bracket schedules as the Department may prescribe. 

Whenever the Department determines that a refund 

should be made ur,der this paragraph to a claimant instead 

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 county water commission tax fund established pursuant to 

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 of taxation 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 

at retail from a retailer, and which is titled or registered 

with an agenC} of this State's government, at a rate not to 

exceed 1/ 4% of the selling price of such tangible pen;onal 

property within the territory, 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 must be 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 proof of exemption may be ttansmitted to the Department 

by way of the State agency with which, or the State 

officer with whom, the tangible personal property must be 

titled or registered if the Depamnent and such State 

agency or Stat:e officer determine that this procedure will 

expedite the processing of applications for title or registra· 

tion. 

The Department shall have full power to administer and 

enforce this paragraph; to collect all taxes, penalties and 

interest due hereunder; to dispose of taxes, penalties and 

interest so collected in the manner hereinafter provided; 

and to determine all rights to credit memoranda or refunds 

arising on account of the erroneous payment of tax, penal· 

ty or interest hereunder. In the administration of, and 

I {. 
( 

( 

( 
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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 (except provisions pertaining to the State rate 

of tax, and except provisions concerning collection or refunding of the tax by retailers except that food for human 

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, 19 25 (except the portions pertaining to 

claims by retailers and except the last paragraph concerning refunds), 20, 21 and 22 2£ (except that credit 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 under this 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 tax fund established pursuant to 

paragraph (g) of this Section. 

(e) A certificate of registration issued by the State 

Department of Revenue to a retailer under the "Retailers' 

Occupation Tax Act", as not or hereafter amended,27 or 

under the "Service Occupation Tax Act", as now or hereafter amended,28 shall permit the registrant to engage in a 

business which is taxed under the t.ax imposed pursuant to 

paragraphs (b), (c) or (d) of this 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 tax imposed pursuant to paragraph (c) of this Section. 

(f) Any ordinance imposing any tax under this Section 

or effecting a change in the rate thereof shall 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 territory and the filing of a certified copy 

of such ordinance with the State Department of Revenue, 

whereupon the Department of Revenue shall proceed to 

administer and enforce this Section on behalf of the county 

water commission as of the effective date of the 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 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 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 shall be retained by the State Treasurer to cover the costs incurred by the Department in 

administering and enforcing this Section as provided herein, and less any amount determined by the Department to 

be necessary for the payment of refunds. Within 10 days 

after receipt by the Comptroller of such certification of the 

amount to be paid to the commission, 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. 84-1027, Art. IV,§ l, eff. Nov. 15, 1985. 

l Paragraph 255 of this chapter. 

2 Chapter 120, nu 440, 440a, 440e, 441. 

3 Chapter 120, 'iff, 441e, 442. 

4 Chapter 120, 'ilU 443 to 444j, 445. 

5 Chapter 120, 'ilU 445a to 450, 451 to 452V,. 

6 Chapter 120, U 439.1 et seq. 

7 Chapter 24, 'ii 8-11-l. 

8 Chapter 34, 'ii 409.1. 

9 Paragraph 704.0(! of this Chapter. 

10 Chapter 120, U 439.102. 

11 Chapter 120, 'iii, 439.102a, 439.103. 

12 Chapter 120, U 439.104. 

u Chapter 120, nu 439.105, 439.107, 439.108. 

14 Chapter 120, 'ii 439.109. 

15 Chapter 120, fU 439.110 to 489.112. 

16 Chapter 120, 'ii 44lb. 

17 Chapter 120, U 439.113. 

16 Chapter 120, 'i!U 431l.115 to 439.117. 

rn Chapter 120, mr 4311.118 to 439.120. 

20 Chapter 120, IT 439.31 et seq. 

21 Chapter 24, 'ii 8-11-5. 

22 Chapter 34, 'ii 409.2. 

2.3 Chapter 120, U 489.2. 

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, U 440 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 1 and the imposition 

of certain taxes as provided in Section 4 2 may 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 of the 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$--- {insert amount), 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. 

2 Paragraph 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 amended by Laws 

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 Transit Au~llority Act." 

302. Definitions 

§ 2. When used in this Act: 

"Transportation System" means all plants, equipment, 

property and rights useful for transportation of passengers for hire except taxicabs and includes, without limiting 

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 

by this Act. 

"Board" means Chicago Transit Board. 

"Governor'' means Governor of the State of Illinois. 

"Mayor" means Mayor of the 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 of the east line of Range 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 it is adopted, in the manner 

provided in Section 44,1 by the electors of one or more 

cities, villages and incorporated towns within the metropolit.an area having a population in the aggregate of at least 

100,000 according to the Federal census of 1940. 

1 Paragraph 344 of this chapter. 

305. Actions-Seal-Office 

§ 5. The Authority may sue and be sued in its corporate name but execution shall not in any case issue against 

any property of the Authority. It may adopt a common 

seal and change the same at pleasure. The principal office 

of the 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 of the foregoing, the specific powers enumerated herein. 

Amended by Laws 1955, p. 1166, eff. July 7, 1955. 

306.1. Urban transportation district 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. Power to acquire pl"operty, franchises, etc. 

§ 7. The Authority shall have power to acquire b]' 

purchase, condemnation, lease, gift or otherwise all or any 

part of the·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 a transportation system within the metropolitan area of Cook 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 exrending beyond 

the boundaries of the metropolitan area of Cook County 

and forming part of an integrated suburban rapid transit; 

rail transportation facility or motor bus 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 and be operated as part of 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 of Cook 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 subject to all other provisions of this 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-Hurd Illinois Compiled Statutes Annotated 

Chapter 70. Special Districts 

Water 

Act 3720. Water Commission Act of 1985 

§ 4. Taxes. 

70 ILCS 3720/4 

Formerly cited as IL ST CH 1112/3 'il2.54 

3720/4. Taxes 

Effectiw: August 9, 2013 

Currentness 

(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 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 by a majority of those voting on the proposition. 

The proposition shall be in the fonn provided in Section 5 or shall be substantially in the following form: 

Shull the (insert co,pornlc 

name of couoty waler commission) 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 of Revenue. The Department shall have the power to administer and enforce the taxes and to detem1ine all rights 

for refunds for erroneous payments ofthe taxes. 

{b) The board of commissioners may impose a County Water Commission Retailers' Occupation Tax upon all persons engaged 

in the business of selling tangible personal property at retail in the territory of the commission at a rate of 1/4% of the gross 

receipts from the sales made in the course of such business within the territory. The tax imposed under 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 to administer and enforce this paragraph: to collect all taxes and penalties due hereunder; 

to dispose of taxes and penalties so collected in the manner hereinafter provided; and to determine al! 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 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 Sections I, la, 1 a-1, le, 1 d, 1 e, l f, l i, 
3720/4. Ta:,;;es, 70 JLCS 372014 

lj, 2 through 2·65 1 (in respect to all provisions therein other than the State rate of tax except that food for human consumption 

that is to be consumed off the premises where it is sold ( other than alcoholic beverages, soft drinks, and food that 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, 3 2 

(except as to the disposition of taxes 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 of the Retailers' Occupation Tax Act 3 and Section 3-7 of the Unifom1 Penalty and Interest Act, .:1 as 

fully as ifthose provisions were set forth herein. 

Persons subject to any tax imposed under the authority granted in this paragraph may reimburse themselves for their seller'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 taxes that sellers are required to collect under the Use Tax Act 5 and under subsection (e) of Section 4.03 

of the Regional Transportation Authority Act, 6 in accordance with such bracket schedules as the Department may prescribe. 

Whenever the Department detem1ines that a refund should be made under this paragraph to a claimant instead 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 the notification from the Department. The refund shall be paid by the State Treasurer out 

of a county water commission tax fund established under paragraph (g) of this Section. 

For the purpose of detennining whether a tax authorized under this paragraph is applicable, a retail sale by a producer of coal or 

other mineral mined in Il!inois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from 

the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser 

at a point outside 1l1inois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce. 

If a tax is imposed under this subsection (b) a tax shall also be imposed under subsections ( c) and ( d) of this Section. 

No tax shall be imposed or collected under this subsection on the sale ofa motor vehicle in this State to a resident of another 

state if that 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 

engaging in any business which under the Constitution of the United States may not be made the subject of taxation by this State. 

(c) lf a tax has been imposed under subsection (b), a County Water Commission Service Occupation Tax shall also be imposed 

upon all persons engaged, in the territory of the commission, in the business of making sales of service, who, as an incident to 

making the sales of service, transfer tangible personal property within the territory. The tax rate shall be 1/4% of the selling price 

of tangible personal property so transferred within the territory. The tax imposed under 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 to administer and enforce this paragraph: to collect all taxes and penalties due hereunder; to dispose of 

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 oft ax 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 

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 Sections la-I, 2 1 {except that the reference to State in 

the definition of supplier maintaining a place ofb1L~iness in this State sha11 mean the territory of the commission), 2a, 3 through 

3-50 8 (in respect to all provisions therein other than the State rate of tax except that food for human consumption that is to 

be consumed off the premises where it is sold (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, for human use, sha!l not be subject to tax hereunder), 4 9 (except that the 

( 
3720/4. Taxes, 70 ILCS 372014 

reference to the State shall be to the territory of the commission), 5, 7, 8 IO (except that the jurisdiction to which the tax shall be 

a debt to the extent indicated in that Section 8 shall be the commission), 9 11 ( except as to the disposition of taxes and penalties 

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 of the Retailers' Occupation Tax Act), JJ 13 14 (except that any reference to the 

State shall mean the tenitory ofthe commission), the first paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the Service 

Occupation Tax Act 15 as fully as ifthose provisions were set fmth 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 a 

single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, and any tax for which 

servicemen may be liable under subsection (f) of Sec. 4.03 of the Regional Transportation Authority Act, in accordance with 

such bracket schedules as the Department may prescribe. 

Whenever the Department detem1ines that a refund should be made under this paragraph to a claimant instead of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the wanant to be drawn for the amount 

specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out 

of a county water commission tax fund established under paragraph (g) of this Section. 

Nothing in this paragraph shal! be constmed to authorize a county water commission to impose a tax upon the pri\'ilege of 

engaging in any business which under the Constin1tion of the United States may not be made the subject of taxation by the State. 

( d) If a tax has been imposed under subsection (b ), a tax shall also imposed upon the privilege of using, in the territory of the 

commission, any item of tangible personal property that is purchased outside the territory at retail from a retailer, and that is 

titled or registered with an agency of this State's government, at a rate of 1/4% of the selling price of the 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 for titling or registration purposes is given as being in the territory. The tax shall be collected by the Department 

of Revenue for a county water commission. The tax must be paid to the State, or an exemption determination must be obtained 

from the Department of ReYenue, before the title or certificate of registration for the property may be issued. The tax or proof 

of exemption may be transmitted to the Department by way of the State agency with which, or the State officer with whom, the 

tangible personal property must be titled or registered if the Deparnnent and the State agency or State officer detennine that 

this procedure will expedite the processing of applications 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 of taxes, penalties and interest so collected in the manner hereinafter provided: and to detem1ine 

all rights to credit memoranda or re fonds arising on account of the erroneous payment of tax, 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 of terms and employ the same modes of procedure, 

as are prescribed in Sections 2 16 (except the definition of"retailer maintaining a place ofbusiness in this State''), 3 through 

3-80 17 (except provisions pertaining to the State rate of tax, and except provisions concerning collection or refunding of 

the tax by retailers, and except that food for human consumption that is to be consumed off the premises where it is sold 

(other than alcoholic beverages, soft drinks, and food that 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, 19 18 (except the portions pertaining 

to claims by retailers and except the last paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act 19 and Section 3-7 

,,-; . 
3720/4. Taxes, 70 ILCS 372014 

of the Unifom1 Penalty and Interest Act 20 that are not inconsistent with this paragraph, as fully as if those provisions were 

set forth herein. 

Whenever the Department determines that a refund should be made under this 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 the notification from the Department. The refund shall be paid by the State Treasurer out 

of a county water commission tax fund established under paragraph (g) of this Section. 

( e) A certificate of registration issued by the State Depmtment of Revenue to a retailer under the Retailers' Occupation Tax 

Act 21 or under the Service Occupation Tax Act 2J shall pem1it the registrant to engage in a business that is taxed under the 

tax imposed under paragraphs (b), (c) or (d) of this Section and no additional registration shall be required under the tax. A 

certificate issued under the Use Tax Act or the Service Use Tax Act 23 shall be applicable with regard to any tax imposed under 

paragraph (c) of this Section. 

(f) Any ordinance imposing or discontinuing any tax under this Section shall be adopted and a certified copy thereof filed 

with the Department on or before June I. whereupon the Department of Revenue shall proceed to administer and enforce this 

Section on behalf of the county water commission as of September J next following the adoption and filing. Beginning January 

1, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder shall be adopted and a certified copy thereof 

filed with the Department on or before the first day of July, vd1ereupon the Department shall proceed to administer and enforce 

this Section as of the first day of October next following such adoption and filing. Beginning January I. 1993. an ordinance or 

resolution imposing or discontinuing the tax hereunder shall be adopted and a ce11ified copy thereof filed with the Department 

on or before the first day of October, whereupon the Department shall proceed to administer and enforce this Section as of the 

first day of January next following such adoption and filing. 

(g) The State Department of Revenue shall, upon collecting any taxes as provided in this Section, pay the taxes over to the State 

Treasurer as 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 of each month, beginning January I, 2011, upon certification of the Department of 

Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the ST AR Bonds Revenue Fund the local 

sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a ST AR bond district. 

After the monthly transfer to the STAR Bonds Revenue Fund, 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 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 Department plus an amount the Department determines is necessaiy to offset any amounts 

that were erroneously paid to a different taxing body, and not including any amount equal to the amount ofrefunds made during 

the second preceding calendar month by the Department on behalf of the 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 

receipt by the Comptroller oft he certification of the amount to be paid to the commission, the Comptroller shall cause an order 

to be drawn for the payment for the 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 of the 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. Reenacted by P.A. 9 J -51. § 165. t:ff. June 30. 1999. Amended by P.A. 92-221. § 915. eff. Aug. 2. 200 I; 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 AND STATUTORY NOTES 

P.A. 84-1027, in the fourth sentence of the first paragraph of subd. (b ), in the fifth sentence of the first paragraph of subd. ( c ), 

and in the second sentence of the second paragraph of subd. ( d), inserted the exception relating to food for human consumption 

and prescription and nonprescription medicine, drugs, etc. 

P.A. 85-1135, in the ballot fom1, substituted" Y.. %" for "(state tax rate or rates not exceeding '14 %)": in subd. (b), in the first 

paragraph substituted "of Y.. % " for "not to exceed Y., %'', inserted references to §§ I a-1, Id, I e, If, 5k and 5/, and deleted "and 

except for 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 \vhich sellers may be liable under the 'Municipal Retailers' Occupation 

Tax Act', or the 'County Retailers' Occupation Tax Act' " following" 'Use Tax Act' ", and inserted the fifth paragraph: in 

subd. (c), in the first paragraph, substituted ·•1fa tax has been imposed pursuant to subsection {b), a tax shall also be imposed" 

for "The board of commissioners of a county water commission may impose a tax", substituted "be % % of the selling" for 

"not exceed\!,,% of the cost", inserted a reference to§ la-1, and deleted "and except for the provision allowing suppliers a 

deduction from the tax to cover certain costs'· following "penalties collected", in the second paragraph, 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 a tax has been imposed pursuant to subsection (b ), a tax shall also be imposed" for "The 

board of commissioners of a county water commission may impose a tax", substituted "of '14 %" for "not to exceed '14 %", in 

the second paragraph, deleted "except the paragraph concerning the conveying of news, and" following "Sections 2 (", inserted 

"and" following "tax by retailers"; in subd. (f}, inserted ''or discontinuing" and "second"; and in subd. (g), deleted "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, and'' following "said fund''. 

For legislative intent and effect of P.A. 85-1135, see note fol!owing 65 ILCS 5!8-11-1. 

P.A. 86-928, in the first paragraph ofsubd. (b), inserted "Ji, lj" and following "6", deleted "{except that credit memoranda 

issued hereunder may not be used to discharge any State tax liability)''; in subd. (c) following ''17", and in 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 prior thereto read: 

"Any ordinance imposing or discontinuing any tax under this Section or effecting a change in the rate thereof shall be effective 

on the first day of the second calendar month next following the publication of such ordinance in a newspaper of general 

circulation in the territory and the filing of a certified copy of such ordinance with the State Department of Revenue, whereupon 

the Department of Revenue shall proceed to administer and enforce this Section on behalf of the county water commission as 

of the effective date of the ordinance.'' 

P.A. 86-1475, Art. 5, resectioned§ 3 of the Use Tax Act,§ 3 of the Service Use Tax Act,§ 3 of the Service Occupation Tax Act, 

and§ 2 of the Retailers' Occupation Tax Act. For intent of P.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 to adopting and filing a certified copy of an ordinance or resolution imposing or 

discontinuing the tax hereunder, or affecting a change in the rate thereof, added provisions covering the respective time periods 

beginning with Jan. 1, 1992 and beginning with Jan. I, 1993. 

P.A. 87-205, Art. 4, revised statutory references and language relating to the enactment of the Unifom1 Penalty and Interest Act. 

Section 5-1 of P.A. 87-205, approved September 3, 1991, as amended by P.A. 87-1 I 89, Art. I,§ 4, pro\·ides: 

'·Effective date. Articles 3 and 4 take effect January 1, 1994. Articles 1 and 5 take effect upon becoming law." 

P.A. 87-895, the first [992 General Revisory Act, provides in Article 2 for the re\•ision and renumbering of certain Sections 

of Acts which have been added or amended by more than one Act of the 87th Genera! Assembly; incorporates amendments to 

repealed Acts into successor laws passed by the same General Assembly; 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 of 35 lLCS 165: 10 regarding the re-enactment. 

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

P.A. 93-1068, § 25, inserted the penultimate paragraph of subsec. (b ). 

P.A. 96-939, § 105, in subsec. (g), inserted the second paragraph, in the third paragraph of sub sec. (g), substituted "After the 

monthly transfer to the STAR Bonds Revenue Fund, on" for ··on", and inserted", and less any amounts that are transferred 

to the STAR Bonds Revenue Fund''. 

P.A. 96-1389, § 5, in the section name line, added "Taxes"; and added subsec. (h). 

P.A. 97-333. the First 2011 General Revisory Act, amended various Acts to delete obsolete text, to correct patent and technical 

errors, to revise cross references, and to resolve multiple actions. Public Acts 96-857 through P.A. 96-1479 were considered 

in the preparation of the combining revisories included in this Act. 

P.A. 98-298, § 20, in the third paragraph of subsec. {g), substituted "amount (not including credit memoranda) collected under 

this Section during the second preceding calendar month by the Department plus an amount the Department detennincs is 

necessary to offset any amounts that were erroneously paid to a different taxing body, and not including any amount equal to 

the amount ofrefunds made during the second preceding calendar month by the Department on behalf of the commission, and 

not including any amount that the Department determines is necessary to offset any amounts that were payable to a different 

taxing body but were erroneously paid to the commission," for "then balance in the fund, less any amount determined by the 

Department to be necessary for the payment of refunds.". 

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 ST CH 70 § 3720/4 

Current through P.A. 98-1175 of the 2014 Reg. Sess., and through P.A. 99-2 of the 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 l 20'2c. 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 J J, 120 12 and 35 JLCS 1.20 13. 

35 ILCS 735:3-7. 

35 ILCS 105 1 el 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 I 1. 120 12. 

35 JLCS 120 2h. 

35 JLCS 115'13. 

35JLCS 11515.11515.5. l!S 16, 11517, 11518.11519.and 11520. 

35 ILCS J 05 2. 

35 !LCS I (15 ·3 through 105 3-80. 

351LCS 105·'4, 105.Jl, 10512, 10511~. l05'14, 105'15, 10519. 

35 JLCS l 05 ·20. 105 21, and I 05 22. 

35 !LCS 735 3·7. 

35 llCS 120- l ct s~q. 

35 JLCS l 15 1 el ,eq. 

35 lLCS 110 1 et 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 heal th care benefits to 

eligible retirees and their dependents and survi vars 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 1 7, 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 Genera 1 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 
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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-i ng 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 

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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 
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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 Audi tor 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 

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

2009 1 80% in 2010, and 90% in 2011, respectively1 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 
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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 wi t.h the Retirement. Plan or the Retiree Heal t.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 

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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 
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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 

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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 
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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. 

Ii I 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 

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limited to, adveri:.isements in 

mailings, and other appropriate 

LRB095 04786 DRH 24846 b 

periodicals and newspapers, 

media. The Authority shal 1 

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 
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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 

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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 
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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 

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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 
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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'\.uthori ty 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 2.01 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 de Jia:::.cs froffi the Regional Transportation A"Ct.ho::i-::.y' s 
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".: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 off ice 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 
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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 

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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 
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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 

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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 
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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 
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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 rnobili ty 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 

( 

{ 
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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 
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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 
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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; 
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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 

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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-i c 

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 cap it.al imp ro·v·emc n ts 

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:..ho0

.;;-:::. , .:;_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 
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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 corrununi ties 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 

( 

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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 
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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 

( 

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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 Authori tv 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 
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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 

( 

( 
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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, 
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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 

( 

( 
( 

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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.hori ty 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, 
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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. 

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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. 

( 

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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 

( 
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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 

more than 2 vehicles a( which motor vehicles are permitted 

to park in return for an hourly, daily, or other periodic fee, 

whether publicly or privately owned, but does not inelude 

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 tangible personal property 

at retail in the metropolitan region at a rate not to exceed 

1% of the gross receipts from such sales made in the course of such business within the County of Cook and 1/,% 

of the gross receipts from such sales made in the course of 

such business within the Counties of DuPage, 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 or penalty hereunder. In the administration of, and 

"Omplianee with, this Section, the Department and persons 

( 10 are subject to 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 of terms, 

and employ the same modes of procedure, as are prescribed in Sections 1, la, le, 2 4 (in _respect to all provisions 

therein other than the State rate of tax and shall include 

exemptions (f) and (g) and the exemptions of farm machinery and equipment, distillation machinery and equipment, 

and graphic art.s machinery and equipment unless the 

corporate authorities provide otherwise by resolution), 2c, 

3 5 (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, 6 s (except that credit memoranda issued hereunder may not be used to discharge any 

State tax liability), 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13 and 131

h 

of the "Retailers' Occupation Tax Act", as now or hereaf· 

ter amended,7 as fully as if provisions contained in those 

Sections of the "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 hereunder by 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 

"Use Tax 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 

~hould be made under this Section t.o a claimant instead of 

1suing a credit memorandum, the Department shall notify 

the State Comptroller, who shall cause the warrant t.o be 

drawn for the amount specified, and t.o 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. 

For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale, by a 

producer of coal or other mineral mined iii Illinois, is a sale 

at retail at the place where the coal or other mineral mined 

in Illinois is extracted from the earth. This paragraph 

does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser at a point outside 

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 of making sales of service, who, as an incident to 

making such sales of service, transfer tangible personal 

property within the metropolitan region, either in the form 

of tangible personal property or in the form of real estate 

as an incident to a sale of service. The tax rate 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 of DuPage, Kane, Lake, McHenry and 

Will. The t.ax 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 to administer and enforce this paragraph; to collect all taxes and 

penalties due hereunder; to dispose of 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 

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 2 10 (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 State rate of tax 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, 8 la (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 of taxes and penalties 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 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 not be used to discharge any State 

tax liability), 18, 19 and 20 of the "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 if provisions 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 ta.x 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 servicemen are authorized to collect 

under the "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 

Department may prescribe. 

Whenever the Department determines that a refund 

should be made under thls paragraph to a claimant instead 

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 States may not be made the subject of taJCation 

by the State. 

(g) The Board of the Authority may impose a tax upon 

the privilege of using, in the metropolit.an region, any item 

of tangllile personal property which is purchased outside 

the metropolitan region at retail from a retailer, and which 

is titled or registered with an agency of this State's 

government, at a rate not to exceed 1% of the selling price 

of such tangible personal property with the County of 

Cook, as "selling price" is defined in the "Use Tax Act'', 

approved July 14, 1955, as now or hereafter 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 Department of Revenue 

for the Regional Transportation Authority. Such tax must 

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 tax or proof of exemption may be transmitted 

to the Department by way of the State agency with which, 

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 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 of ta."{es, penalties and 

interest so collected in the manner 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, e:Xclusions, exemptions and defiru'. 

tions of terms and employ the same modes of procedure 

as are prescribed in Sections 2 24 (except the paragraph 

concerning the conveying of news, and except the definition of "retailer maint.aining a place of business in this 

St.ate"), 3 25 (eJCcept provisions pertaining to the State rate 

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 carrier by 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 27 (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 of the 

"Use Tax Act" were set forth herein. 

Whenever the Department determines that a refund 

should be made under this 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 the 

Regional Transportation Authority tax fund established 

pursuant to paragraph (n) of this Section. 

(h) The Authority may impose a replacement vehicle tax 

of $50 on any passenger car, as defined in Section 1-157 of 

The Illinois Vehicle Code,28 purchased within the metropolit.an region by or on behalf of an insurance company to 

replace a passenger car of an insured person in settlement 

of a total loss claim. The tax so imposed may not become 

effective before the first day of the month following the 

passage of the ordinance imposing such tax and receipt of 

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 of The Illinois Vehicle Code.29 

The Department shall forthwith pay over to the St.ate 

Treasurer, e:,; 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 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 to be given 

to the Comptroller by the Department, the Comptroller 

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637 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 not impose any other t.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 Tax Act", as now or hereafter amended, shall permit the registrant to engage in a 

business whieh is t.axed under the tax imposed pursuant to 

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, shall be applicable with regard 

to any tax imposed pursuant to paragraph (c) of this 

Section. 

(k) The provisions of any tax imposed pursuant to 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 of the State Department of Revenue 

to promulgate and enforce rules and regulations relating 

to the administration and enforcement of the provisions of 

the tax imposed. Such taxes shall be imposed only on use 

within the metropolitan region and at rates 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 of motor fuel for 

purposes other than those with regard to which such taxes 

may be imposed as provided in such paragraphs to receive 

refunds of taxes improperly paid, which provisions may be 

at variance 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 

or effecting a change in the rate thereof shall 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 metropolitan region and the filing of a 

certified copy of such ordinance with the State Department of Revenue, whereupon the Department of Revenue 

shall proceed to administer and enforce this Section on 

behalf of the Regional Transportation Authority as of the 

effective date of the ordinance or resolution. 

{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 Comptroller of the State of 

Illinois the amount to be paid to the Authority, which shall 

be the then balance in said fund, less any amount determined by the Department to 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 of Chicago and the amount collected in that 

portion of Cook County outside of Chicago less the amount 

necessary for the payment of refunds to taxpayers in that 

portion of Cook County outside of Chicago. Within 10 

days after receipt by the Comptroller of such certification 

of the amount to be paid 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) of Section 2.01 of this Act 31 shall not affect the validity 

of any tax imposed by the Authority otherwise in conformity with law. 

(p) At no time shall a public transportation tax or motor 

vehicle parking tax authorized under paragraphs (b), (c) 

and (d) of this Section be in effect at the same time as any 

retailers' occupation, use or service occupation tax authorized under paragraphs (e), (fl and (g) of this Section is in 

effect. 

lilly taxes imposed under the aut.\;ority provided in 

paragraphs (b), (c) and (d) shall remain in 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) of the Section unless any such 

tax authorized by paragraphs (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. 

1 Chapter 120, U 417 et seq. 

2 Chapter 24, n s-11-1. 

3 Chapter 120, U 440 et seq, 

4 Chapter 120, UU 440, 440a, 440c, 441. 

5 Chapter 120, n 441e, 442. 

6 Chapter 120, U~ 443 to 444j, 445. 

7 Chapter 120, UU 445a to 450, 451, 452, 452'h. 

8 Chapter 120, U 489.l et seq. 

9 Chapter 34, U 409.1. 

JD Chapter 120, U 439.102. 

11 Chapter 120, UU 439.102a, 439.103. 

12 Chapter 120, ~ 439.104. 

13 Chapter 120, UU 439.106, 489.107, 439.108. 

14 Chapter 120, t 439.109. 

15 Chapter 120, n 439.110 to 439.112. 

16 Chapter 120, U 44lb. 

17 Chapter 120, U 439.113. 

1s Chapter 120, rn 439.115 to 439.117, 

lS Chapter 120, UU 439.118 to 439.120. 
( 

( 
111% ~ 704.03 CHAPTER 111%-PUBLIC UTILITIES 638 

20 Chapter 120, U 439.101 et seq. 

21 Chapter 120, fl 439.31 et seq. 

22 Chapter 24, fl 8-11-5. 

2:J Chapter 34, fl 409.2. 

24 Chapter 120, ~ 439.2. 

25 Cha.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, 

29 Chapter 95'h, f!U 8-2002 and 8-2003. 

30 Paragraph 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, incorporated the amendments by P.A. 83-114 and P.A. 83---886; in 

the second paragraph of subd. h, substituted "the Authority" 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 the business of renting automobiles in 

the metropolitan regiun at the rate uf not to e."l:ceed 1% of 

the gross receipts 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 of Revenue. The certificate of registration 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 a business which is taxable under any ordinance or 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 collect all taxes and penalties due 

hereunder; to dispose of taxes and penalties so collected in 

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 

administration of, and 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, limit.ations, penalties and definitions of terms, and employ the same modes of procedUI'e, as are prescribed in Sections 2 and 3 3 (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, 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. 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 of this State's government, at a 

rate not to e:,i:ceed l7a oi the rental price of such automobile within the County of Cook, and not to exceed %% of 

the rental price within the counties of DuPage, Kane 

Lake, McHenry and Will. Such tax shall be collected fro~ 

persons whose Illinois address for titling or registration 

purposes is given as being in the metropolitan region. 

Such tax shall be collected by the Department of Revenue 

for the Regional Transportation Authority. Such tax must 

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 t.ax or proof of exemption may be transmitted 

to the Department by way of the 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 of applications for title or registt-ation. The Department shall have full power to administer 

and enforce this paragraph; to collect all taxes, penalties 

and interest due hereunder; to dispose of taxes, penalties 

and interest so collected in the manner 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 of procedure, as are prescribed in 

Sections 2 and 4 4 (except provisions pertaining to the 

State rate of tax; and with relation to the provisions of the 

"Use Tax Act" referred to therein, except provisions con- cerrrlng collection or refunding of the tax by retailers, and 

except the provisions of Section 19 5 pertaining to claims 

by ret.ai!ers and except the last paragraph concerning 

refunds, 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 Assembly, as the 

same are now or may hereafter be 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 under this Section to a claimant instead 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 Regional 

Transportation Authority tax fund created pursuant to 

Section 4.03 of this Act.S 
( 

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639 CHAPTER 111%- PUBLIC UTILITIES 111 % U 704.04 

(d) The Department shall forthwith pay over to the 

State Treasurer, ex-officio, as trustee, all taxes, penalties 

and interest collected under this Section. On or before the 

25th day of each calendar month, the Department shall 

prepare and certify to the State Comptroller the amount to 

be paid to the Authority. 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 

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 specify the amount of taxes collected within the City of Chicago 

less the amount necessary for the payment of refunds to 

taxpayers in the City of Chicago and the amount collected 

in that portion of Cook 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 {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 the Authority. Within 10 days after receipt, 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 tax hereunder 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 of Revenue on or not later than 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 behalf of the Authority as of the 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, transmit to the Department of Revenue a certified 

copy of the ordinance effecting such change or discontinuance. 

Amended by P.A. 83-886, § 1, eff. Nov. 9, 1983. 

I Chapter 120, ff 440 et seq. 

2 Chapter 120, f 1701 et seq. 

3 Chspter 120, n 1702 and 1703. 

4 Chapter 120, ~TI 1702 and 1704. 

5 Chapter 120, U 439.19. 

6 Paragraph 704.03 of this chapter. 

704.04. Issuance and pledge of bonds 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 of this Act);l to repay advances to the Authority or a 

Service Board made for such purposes; to pay other 

expenses of the Authority or a Service Board incident to or 

incurred in connection with such construction or acquisition; to provide funds for any transportation agency to 

pay principal of or interest or redemption 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 or to 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 other borrowing 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 order to 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 notes are niferred to in this Section as ''Working 

Cash Notes". No Working Cash Notes 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 of transportation agencies, prior to the receipt by the Authority or a Service Board from time to time of funds 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 that the Authority issue it.oi Working Cash Notes in 

such amounts and having such maturities as the Service 

Board may detencine. Notwithstanding any other provision of this Act, any amounts necessary t.o pay principal of 

and interest on any Working Cash Notes issued at the 

demand and direction of a Service Board or any Working 

Cash Notes the proeeeds of which were med for the direct 

benefit of a Service Board or any other Bonds or Notes of 

the Authority the proceeds of which were used for the 

direct benefit of a Service Board shall constitute a reduction of the amount of the proceeds of any tax imposed by 

the Authority under Sections 4.08 and 4.08.12 or any other 

funds provided by the Authority to a Service Board. The 

Authority shall, after deducting any costs of issuance, 

tender the net proceeds of any Working Cash Notes 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 or notes being renewed, paid 

or refunded, and other costs in connection therewith. The 
( 

( 
111 % ~ 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 of bonds or notes or to provide 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 the Authority, including any 

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 of any such 

bonds or notes 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 of indebtedness and tax anticipation warrants subject to, interest rate limitations set 

forth therein", approved May 26, 1970, as now or hereafter amended.a Interest may be payable annually or semiannua11y, or at such other times as determined by the 

Board. Bonds and notes issued under this 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 name of the owner as to 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 at a premium or discount but such that the 

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 subject to interest rate limitations set forth 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 best bidder 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 at least 10 

days before the time set for the submission of bids. 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 (without any requirement of publication of intention 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 authorized pursuant to this Section shall cease to be such officer 

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 of the Authority nor 

any person executing any bonds or notes thereof shall be 

liable personally on any such bonds or notes or coupons by 

reason of the issuance thereof. 

(c) All bonds or notes of the Authority issued pursuant 

to this Section shall be general obligations of the Authority to which shall be pledged the full faith and credit of the 

Authority, as provided in this Section. Such bonds or notes shall be secured as provided in the authorizing 

ordinance, which may, notwithstanding any other provision 

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 other revenues or moneys of the Authority 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 or provided for by the ordinance of the Authority authorizing the issuance of such bonds or notes. Any 

such pledge, assignment, lien or security interest for the 

benefit of holders of bonds or notes of the 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 

superior to and have priority over any other obligations of 

the Authority. The Authority may provide in the ordinance authorizing the issuance of any bonds or notes 

issued pursuant to this Section for the creation of, 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 

pursuant to this Section may contain provisions as part of 

the contract with the holders of the bonds 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 receipts of the 

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 

l 

l 

t 

l 
( 

( 

( 
641 CHAPTER 111%-PUBL!C UTILITIES 111% ~ 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 payment of such bonds 

or notes. Such ordinance may also provide limitations on the issuance of additional bonds or notes of the Authority. 

No such bonds or notes of the Authority shall constitute a 

debt of the 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 respect to such bonds or notes. The 

ordinance shall prescribe the rights, duties and powers of 

the trustee to be exereised for the benefit of the Authority 

and the protection of the holders of such bonds or notes. 

The ordinance may provide for the trustee t.o hold in trust, 

invest and use amounts in funds and accounts created as 

provided by the ordinance with respect to the bonds or notes. The ordinance may provide for the assignment and 

direct payment to the trustee of any or all amounts 

produced from the sources provided in Section 4.03 of this 

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 the ordinance with respect to bonds or 

notes or used for paying bonds or notes to be paid by the 

trustee to the Authority. 

(e) Any bonds or notes of the Authority issued pursuant 

t.o this Section shall constitute a contract between the 

Authority and the holders from time to time of such bonds or notes. In jgsuing any bond or note, 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. It may also so covenant that it shall impose 

and continue to impose taxes, as provided in Section 4.03 

of this Act and in addition thereto as subsequently authorized by law, sufficient to make such deposits and pay the 

principal and interest and to meet other debt service 

requirements of such bonds or notes as they become due. 

A certified copy of the ordinance authorizing the issuance 

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 

alter the rights and powers vested in the Authority by this 

Act so as to impair the terms of any contract made by the 

A..uthority with such holders or in any way impair the 

rhts and remedies of such holders until such bonds and .• otes, together with interest thereon, with interest c,n any 

unpaid installments of interest, 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 the holders 

of the bonds and notes of the Authority issued pursuant to 

this Section that the State will not limit or alter the basis 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 of the 

Stat.e in any contra.ct with the holders of bonds 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) pursuant to this Section which will cause it to 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 of bonds 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 

payment of principal and interest thereon or to provide for 

the redemption thereof, all pursuant to the ordinance 

authorizing the issuance of such bonds or notes, shall not 

be considered to be out.standing for the purposes of thia 

paragraph. 

(h) The Authority, subject to the terms of any agreements with noteholders or bond holders as may then exist, 

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 other authority granted by law, the 

State Treasurer may, with the approval of the Governor, 

invest or reinvest, at a price not to exceed par, any State 

money in the State Treasury which is not needed for 

current expenditures due or about to become due in Work· 

ing Cash Not.es. 

Amended by P.A. 84-1246, § 4, eff. July 29, 1986. 

1 Pa.ragraph 702.05 of this chapter. 

2 Paragraph.a 704.03 and 704.03.l of this chapter. 

3 Chapter 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 of the 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 of the Authority's activities, and financial statements of the Authority's and the Service Boards' 

revenues and eJqJend:itures for such year and of their 

assets and liabilities, which financial statements shall have 

been audited by an independent certified public accountant. The report shall also set forth the financial results as 

reported to the Service Boards from each transportation 

agency which during such year had 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-
( 

( 

( 
111% ff 704.05 CHAPTER 111%-PUBLIC UTILITIES 642 

nor, the State Comptroller, the Speaker and Minority Leader of the Illinois House of Representatives, the President 

and Minority Leader of the Illinois Senate, the Mayor of 

the City of Chicago and the President or Chairman of the 

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 or other financial assistance from a Service Board. 

Amended by P.A. 83-1862, Art. TI, § 127, eff. Sept. 11, 

1984. 

Article II of P.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 

Transit Authority of services or public transportation facilities (other than real estate) involving a cost more than 

$5,000 and the disposition of all property of the Authority 

or a Service Board other than the Chicago Transit Authority 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 

equipment or performance of service when it is determined 

by the concurrence of two-thirds of the then Directors that 

an emergency requires immediate delivery or supply thereof; for goods or services that are economically procurable 

from only one source; for contracts for the maintenance or servicing of equipment which are made with the manufacturers or authorized service agent of that equipment 

where the maintenance or servicing can best be performed 

by the manufacturer or authorized service agent or such a 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 of pro!essional or utility 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 of local 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 invest any sinking funds, monies or other funds belonging to 

them or within_t~eir c~ntrol in any bonds, notes or equip. 

ment trust certificates issued pursuant to this Act, it being 

the purpose of this Section to authorize the investment in 

such bonds, notes or certificates of all sinking, insurance 

retirement, compensation, pension and trust funds, wheth'. 

er owned or controlled by private or public persons or 

officers; provided, however, that nothing contained in this 

Section may be construed as relieving any person, firm or 

corporation from any duty of exercising reasonable 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 exempt from all State and unit 

of local government taxes 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. 

I Chapter 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 order transferred 

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 a month shall be the revenue collected 

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 pursuant to 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 

deposit into such Fund, shall order the Treasurer to 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 it for its purposes as 

provided in this Act. 

Provided, however, no moneys shall be paid from the 

Public Transportation Fund to the Authority for any fiscal 

year beginning after the effective date o:f this amendatory 

Act of 1983 until the Authority has certified to the Gover~ 

nor, the Comptroller, and the Mayor of the City of Chicago 

that it has adopted for that fiscal year a budget and 

financial plan meeting the requirements in Section 4.0l(b).2 

(c) Within 6 months of the end of the 3 month period 

ending December 31, 1983, and each fiscal year thereafter, 

I 

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I 

643 CHAPTER 111 % -PUBLIC UTILITIES 1112/s ~ 704.11 

the Authority shall detennine whether the aggregate of all 

system generated revenues for public transportation in the 

metropolitan region which is provided by, or under grant 

or purclmse of service contracts with, the Service Boards 

equals 50% of the aggregate of all costs of providing 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 of local 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 generally accepted accounting principles, 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 pursuant t.o Regional Transportation Authority Ordinance 82-269 of the Authority; payment of principal and 

interest on bonds issued t.o provide funds to the Authority 

or a transportation agency for the purpose of constructing 

or acquiring a transportation facility; payment of principal 

on any Working Cash Not.es issued under Section 4.04;3 

any other cost as t.o whlch it is reasonably ~ected that a 

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 of Illinois 5 from the Department of Transportation, for services for the mobility limited, includihg paratransit services for the mobility limited, during the Authority's fiscal year beginning January 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 submit to the Authority concurrently with 

its next due quarterly report a revised budget incorporating the reduction in funds. The revised budget must meet 

the criteria specified in clauses {i) through (vi) of Section 

4.ll{b)(2),6 The Board shall review and act on 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. 

1 Paragraphs 704.03 and 704.03.1 of this chapter. 

Z Paragraph 704.01 of this chapter. 

S Paragraph 704.04 of this chapter. 

4 Paragraph 702.09 of this chapter. 

5 Chapter 127, ~ 49.19a. 

6 Paragraph 704.11 of this chapter. 

P.A. 84-!246 incorporated the amendment by P.A. 84-939. 

704.10. Agreements with the Chicago Transit Authority 

§ 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 of local government in 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 of taxes imposed by the 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 at the 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 pursuant to this Section. 

Amended by P.A. 83-886, § 1, eff. Nov. 9, 1983. 

lParagraphs 704.08 and 704.03.1 of this chapter. 

2 Paragraph 704.01 of this 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. The Transition Board 

shall adopt a timet.able governing the certification of estimates and any submissions required under this Section for 

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 of the Illinois Bureau of the 

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)f the amounts estimated 

by the Board to be available for such Service Board during 

such fiscal year aud the two following fiscal years and the 

times at whieh such amounts will be available. The Board 

shall, at the same time, also advise each Service Board of 

its required system generated revenues 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 generated revenues. In determining a Service Board's system generated revenue recovery 

ratio, the Board shall consider the historical system generated revenues recovery ratio for the services subject to the 

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 development projects in the fiscal year beginning January 1, 1986 and ending December 31, 1986 conducted pursuant to Section 2.09 of this 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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( 
111% ~ 704.11 CHAPTER 111 % - 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 of Transportation 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 set forth 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 submitted by each Service Board, and shall 

adopt a consolidated budget 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) of this paragraph; 

(ii) such budget and plan 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 encum- brances incurred in prior periods, including provision for 

payment when due of principal and interest on outstanding 

indebtedness; 

(iii) such budget and plan 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 of fares or 

charges and operating or administrative costs for the 

public transportation provided by or subject t-0 the jurisdiction 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 of fares 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 of 9 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) of this 

paragraph (b), the Board shall, five working days after the 

start of the Service Board's fiscal year adopt a budget and 

financial plan meeting such criteria for that Service Board. 

(c)(l) If the Board shall at any time have received a revised estimate, or revises any estimate the Board has 

made, pursuant to this Section of the receipts to be collected by the Authority which, in the judgment of the Board 

requires a change in the estimates on which the budget of 

any Service Board is based, the Board shall advise the 

affected Service Board of such revised estimates, and such 

Service Board shall within 30 days after receipt of such 

advice submit a revised budget incorporating such revised 

estimates. If the revised estimates require, in the judgment of the Board, that the system generated revenues recovery ratio of one 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 budget incorporating 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. If in the judgment of the Board such condition 

and results are not substantially in accordance with such 

Service Board's budget for 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 

budget incorporating 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 

that the 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 of its then Directors may 

require a Service Board to submit a revised financial plan 

and budget which shows that the 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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645 CHAPTER 111'/,- PUBLIC UTILITIES 111 % ff 705.03 

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 of transportation services and fares or charges 

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) of paragraph (b) of this Section. The Board 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 

pursuant to this Section. 

(e) Whenever this Section requires the Board to make 

determinations with respect to estimates, budgets or financial plans, or rules or regulations with respect thereto such 

determinations shall be made upon the affirmative vote of 

at least 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 of Illinois. 

'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. 

2 Chapter 127, ~ 49.19a. 

3 Paragraph 704.03 of this chapter. 

4 Paragraph 704.01 of this chapter. 

5 Paragraph 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 citizen participation. (a) The Authority shall provide for and encourage participation by 

the public in the development and review of public 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 required by this Act or 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 the Five-Year Program or in the annual budget program 

which has been the subject of public hearings as provided 

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 specifically provided for in the 

annual budget and program which has been the subject of 

public hearing, as provided in Section 4.01 of this Act, the 

Board shall hold 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 grant pursuant 

to Section 2.02 of this Act,2 any general increase or series 

of increases in fares or charges for public transportation, 

whether by the Authority or by any transportation agency, 

which increase or series of increases within any twelve 

months affects more than 25% of the consumers of service 

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 advertisement in a newspaper of general 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 the power 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. 

2 Paragraph 702.02 of this chapter. 

705.02. Limitation on home rule powers 

§ 5.02. Limitation on home rule powers. Insofar as 

this Act authorizes 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 that any unit of local government restrictions are not effective with regard to the Authority or provides that 

any power or action of any unit of local government is 

subject to any power or action of the Authority, this Act is 

an express limitation on the powers of home rule municipalities and counties within the meaning of paragraph (g) 

of Section 6 of Article VII of the lllinois Constitution. No 

such action by the Authority shall be such a limit unless 

taken pursuant to an ordinance which is passed by at least 

seven members of the 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 of home 

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 

be liable in any civil action for any injury to 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 
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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 of the Authority and the Suburban Bus Division in 

that County, the Secretary of such County Board shall 

certify that proposition to the proper election officials, who 

shall submit such proposition at an election in accordance 

with the general election law to decide whether or not 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 of the 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) of this 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 harmless the Authority 

against any and all claims, actions and liabilities arising 

out of or in connectkm with the termination of the 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 of the Authority 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 of the 

Authority and the Suburban Bus Division at a referendum 

held under paragraph (a) of this Section, the County Board 

shall notify the Authority of the results of the referendum 

which notice shall specify a termination date, which is the 

last day of the calendar month, but no earlier than December 31, 1984. Unless the termination date is extended by 

mutual agreement between the County and the Authority, 

the termination of the p-0wers and functions of the Authority in the County shall occur at midnight on the termi· 

nation date, provided that the requirements of this 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 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 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 of the 

Authority have been terminated under this Section, all 

proceeds of taxes 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 

paragraph by the County are spent for 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 of paragraph as amended by P.A. 

88--886, § 1, see ff 705.05, post. 

For final legislative action, see note following 

f!705.05, post. 

l 

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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 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 of the Authority and the Suburban Bus Division in 

that County, the Secretary of such County Board shall 

certify that proposition to the proper election officials, who 

sha11 submit such proposition at an election in accordance 

with the general election Jaw to decide whether or not 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 th, YES 

Powers of the Regional Transportation 

Authority and the Suburban Bus Divisio\{° .... County on ....... . .... NO 

(date 

If a majority of the voters vote in favor of terminating 

( powers of the Authority and the Suburban Bus Board 

_.~n all of the powers of tbe 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 other government.al entity therein, and related public transportation facilities. 

(b) The termination of the powers of the Authority 

referred to in paragraph (a) of this Section with respect to 

any County shall occur on approval of the 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 dat.e provided for in accordance with para.graph (c) of this Section provided that such 

obligations shall not be deemed to include any indebtedness of the Authority for borrowed money; 

(ii) agreed to indemnify and hold harmless the Authority 

against any and all claims, actions and liabilities arising 

out of or in connection with the termination of the 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 t.ermination and 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 accordance with paragraph {c) of this Section, in which case the 

powers and functions of the Authority in that County shall 

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 of the 

Authority and the Suburban Bus Division at a referendum 

held under paragraph (a) of this Section, the County Board 

shall notify the Authority of the results of the referendum 

which notice shall specify a termination date, which is the 

last day of the calendar month, but no earlier than December 31, 1984. Unless the termination date is extended by 

mutual agreement between the County and the Authority, 

the termination of the powers and functions of the Authority in the County shall occur at midnight on the tennination date, provided that the requirements of this 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 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 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 expended for general transportation purposes in accordance with law. If no services under the jurisdiction of the 

Commuter Rail Board are provided in a County wherein 

the powers of the Authority have been terminated under 

this Section, all proceeds of taxes imposed by the 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 or the Suburban Bus Board has no obligation to see that the 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. 

1 Paragraphs 704.03 and 704.03.1 of this chapter. 

For text of para.graph as amended by P.A. 

83-885, § 1, see fl 705.05, 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 of a section at the same session of the General As=bly or 

{2) two or n1<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 of public 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-Hurd Illinois Compiled Stah1tesAnnotated Currentness 

Chapter 70. Special Districts 

Transit 

Act 3615. Regional Transportation Authority Act {Refs & Annas) 

Article IV. Finances 

3615/4.03. Taxes 

Fom1er!y cited as IL ST CH l l 1# i' 704.03 

§ 4.03. Taxes. 

(a} In order to carry out any of the powers or purposes of the Authority, the Board may by ordinance adopted with the concurrence 

of 12 of the then Directors, impose throughout the metropolitan region any or all of the taxes provided in this Section. Except as 

otherwise provided in this Act, taxes imposed under this Section and civil penalties imposed incident thereto shall be collected 

and enforced by the State Department of Revenue. The Department shall have the power to administer and enforce the taxes 

and to determine all rights for refunds for erroneous payments of the taxes. Nothing in this amendatory Act of the 95th General 

Assembly is intended to invalidate any taxes currently imposed by the Authority. The increased vote requirements to impose a 

tax shall only apply to actions taken after the effective date of this amendato1y Act of the 95th General Assembly. 

(b) The Board may impose a public transportation tax upon all persons engaged in the metropolitan region in the business of 

selling at retail motor fuel for operation of motor \'ehicles upon public highways. The tax shall be at a rate not to exceed 5% 

of the gross receipts from the sales of motor fuel in the course of the business. As used in this Act, the term "motor fuer· shall 

have the same meaning as in the Motor Fuel Tax Law. [FNJ] The Board may provide for details of the tax. The provisions 

of any tax shall conform, as closely as may be practicable, to the provisions of the Municipal Retailers Occupation Tax Act, 

[FN2] including without limitation, confom1ity to penalties with respect to the tax imposed and as to the powers of the State 

Department of Revenue to promulgate and enforce mies and regulations relating to the administration and enforcement of the 

provisions of the tax imposed, except that reference in the Act to any municipality shall refer to the Authority and the tax shall 

be imposed only with regard to receipts from sales of motor foe! in the metropolitan region, at rates as limited by this Section. 

(c) In connection with the tax imposed under paragraph (b} of this Section the Board may impose a tax upon the privilege of 

using in the metropolitan region motor fuel for the operation of a motor vehicle upon public highways. the tax to be at a rate 

not in excess of the rate of tax imposed under paragraph (b) of this Section. The Board may provide for details of the tax. 

( d} The Board may impose a motor vehicle parking tax upon the privilege of parking motor vehicles at off-street parking facilities 

in the metropolitan region at which a fee is charged, and may provide for reasonable classifications in and exemptions to the tax, 

for administration and enforcement thereof and for civil penalties and refunds thereunder and 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 itself or by contract with any unit of local government. The State 

Department of Revenue shall have no responsibility for the collection and enforcement unless the Department agrees with the 

Authority to undertake the collection and enforcement. As used in this paragraph, the tem1 "parking facility" means a parking 

area or structure having parking spaces for more than 2 vehicles at which motor vehicles are permitted to park in return for 

an hourly, daily, or other periodic fee, whether publicly or privately owned, but does not include parking spaces on a public 

street, the use of which is regulated by parking meters. 

(e} TI1e 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. In Cook County the tax rate shall be 1.25% 

of the gross receipts from sales of food for human consumption that is to be consumed off the premises where it is sold 
3615/4.03. 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% of the gross receipts from other taxable sales made in the course of that business. In DuPage, Kane, Lake, 

McHenry, and Will Counties, the tax rate shall be 0.75%> of the 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 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 suqject to this Section sha!l 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 Sections 1, I a, I a-1, 1 c, Id, I e, 1 f, 

Ii, lj, 2 through 2-65 [FN41 (in respect to all provisions therein other than the State rate of tax}, 2e, 3 [Fl\5] (except as to the 

disposition of taxes 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 of the Retailers' Occupation Tax Act [FN6] and Section 3-7 of the Unifonn Penalty and Interest Act, [FN7] as fully 

as if those provisions were set forth herein. 

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their seller'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 taxes that sellers are required to collect under the Use Tax Act, [FN8] under any bracket schedules the 

Department may prescribe. 

Whenever the Department detennines that a refund should be made under this Section to a claimant instead 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 the notification from the Department. TI1e refund shall be paid by the State Treasurer out 

of the Regional Transportation Authority tax fund established under paragraph (n) of this Section. 

!fa tax is imposed tmder this subsection (e), a tax shall also be imposed under subsections (f) and (g) of this Section. 

For the purpose of detennining whether a tax authorized under this Section is applicable, a retail sale by a producer of coal or 

other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from 

the earth. This paragraph does not apply to coal or other mineral when it is deliYered or shipped by the seller to the purchaser 

at a point outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce. 

No tax shall be imposed or collected under this subsection on the sale ofa motor vehicle in this State to a resident of another 

state if that motor vehicle will not be titled in this State. 

Nothing in this Section shall be constrned to authorize the Regional Transportation Authority to impose a tax upon the privilege 

of engaging in any business that under the Constitution of the United States may not be made the subject of taxation by this State. 

(f) If a tax has been imposed under paragraph ( e), a Regional Transportation Authority Service Occupation Tax shall also be 

imposed upon all persons engaged, in the metropolitan region in the business of making sales of service, who as an incident to 

making the sales of sen·ice, transfer tangible personal property within the metropolitan region, either in the fonn of tangible 

personal property or in the form of real estate as an incident to a sale of service. In Cook County, the tax rate shall be: (1) 

1.25% of the serviceman's cost price of food prepared for immediate consumption and transferred incident to a sale ofscrvice 

subject to the sen,ice occupation tax by an entity licensed under the Hospital Licensing Act [FN9] or the Nursing Home Care 

Act [FN JO] that is located in the metropolitan region; (2) 1.25% of the selling price of food for human consumption that is to 

be consumed off the premises where it is sold ( other than alcoholic beverages, soft drinks and food that 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 (3) I% of the selJing price from other taxable sales of tangible 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% of the selling price of all 

tangible personal property transferred. 

The tax imposed under this paragraph aud all civil penalties that may be assessed as an incident thereof shall be collected and 

enforced by the State Department of Re\'enue. The Department shall have full power to administer and enforce this paragraph; 

to collect all taxes and penalties due hereunder; to dispose of taxes and penalties 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 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 of procedure, as are 

prescribed in Sections la-!, 2, 2a, 3 through 3-50 [FN l I] (in respect to all provisions therein other than the State rate of tax), 

4 (FNl::!] (except that the reference to the State shall be to the Authority), 5, 7, 8 [FNl3] (except that thcjurisdiction to 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 

of taxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State 

tax), JO, 11, 12 [FN\5] (excepl the reference therein to Section 2b of the Retailers' Occupation Tax Act), [FN16} 13 [FN17J 

( except that any reference to the State shall mean the Authority), the first paragraph of Section 15, !6, 17, 18, J 9 and 20 of the 

Service Occupation Tax Act [FN 18] and Section 3-7 of the Unifom1 Penalty and Interest Act, as fully as if those provisions 

were set forth 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, that charge may be 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 may prescribe. 

Whenever the Department determines that a refond should be made under this paragraph to a claimant instead 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 the notification from the Department. The refond shall be paid by the State Treasurer out 

of the Regional Transportation Authority tax fund established under paragraph (n) of this Section. 

Nothing in this paragraph shall be construed to authorize the Authority to impose a tax upon the privilege of engaging in any 

business that under the Constitution of the United States may not be made the subject of taxation by the State. 

(g) If a tax has been imposed under paragraph (e), a tax shall also be imposed upon the privilege of using in the metropolitan 

region, any item of tangible personal property that is purchased outside the metropolitan region at retail from a retailer, and 

that is titled or registered with an agency of this State's government. In Cook County the tax rate shall be ] % of the selling 

price of the tangible personal property, as" selling price" is defined in the Use Tax Act. In DuPage, Kane, Lake, Mcl-lemy 

and Will counties the tax rate shall be 0. 75% of the sd!ing price of the tangible personal property, as "selling price·· is defined 

in the Use Tax Act. The tax shall be collected from persons whose Illinois address for titling or registration purposes is given 

as being in the metropolitan region. The tax shall be collected by the Department of Revenue for the Regional Transportation 

Authority. The tax must be paid to the State, or an exemption detem1ination must be obtained from the Department of Revenue, 

before the title or certificate of registration for the property may be issued. The tax or proof of exemption may be transmitted 

to the Department by way of the State agency with which, or the State officer with whom, the tangible personal property must 

be titled or registered if the Depmiment and the State agency or State officer determine that this procedure will expedite the 

processing of applications 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 of taxes, penalties and interest collected in the manner hereinafter provided; aud to determine all 

rights to credit memoranda or refonds 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, exclusions, exemptions and definitions of tem1s and employ the same modes of procedure, as are 
3615/4.03. Taxes, 70 ILCS 361514.03 

prescribed in Sections 2 [FN201 (except the definition of"retailer maintaining a place of business in this State"), 3 through 

3~80 [Fl\'21] ( except provisions pertaining to the State rate of tax, and except provisions concerning collection or refunding ( 

of the lax by retailers). 4, 11, 12. 12a. 14, 15, 19 [Fl'\22] ( except the portions pertaining to claims by retailers and except the 

last paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act, [FN23] and are not inconsistent with this paragraph, as 

fully as if those provisions were set forth herein. 

Whenever the Department detennines that a refund should be made under this 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 the notification from the Department. The refund shall be paid by the State Treasurer out 

of the Regional Transportation Authority tax fund established under paragraph (n) of this Section. 

(h) The Authority may impose a replacement vehicle tax of$50 on any passenger car as defined in Section l~l 57 of the lllinois 

Vehicle Code [FN24] purchased within the metropolitan region by or on behalf of an insurance company to replace a passenger 

car of an insured person in settlement of a total loss claim. The tax imposed may not become effective before the first day 

of the month following the passage of the ordinance imposing the tax and receipt of a certified copy of the ordinance by the 

Department ofRevem1e. The Department of Revenue shall collect the tax for the Authority in accordance with Sections 3-2002 

and 3-2003 ofthe I11inois Vehicle Code. [F:\25] 

The Department shall immediately pay over to the State Treasurer, ex officio, as trnstee. 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 the Authority. The amount to be paid to the Authority shall be the amount collected hereunder during 

the second preceding calendar month by the Depa1tment, less any amount detennined 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 provided 

for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for that 

amount in accordance with the directions contained in the certification. 

(i) The Board may not impose any other taxes except as it may from time to time be authorized by law to impose. 

(j) A certificate ofregistration issued by the State Department of Revenue to a retailer under the Retailers' Occupation Tax Act 

or under the Service Occupation Tax 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) of this Section and no additional registration shall be required under the tax. A 

certificate issued under the Use Tax Act or the Service Use Tax Act shall be applicable with regard to any tax imposed under 

paragraph {c) of this Section. 

(k) The provisions of any tax imposed under paragraph { c) of this Section shall confonn as closely as may be practicable to the 

provisions of the Use Tax Act, including without limitation confom1ity as to penalties with respect to the tax imposed and as to 

the powers of the State Department of Revenue to promulgate and enforce rules and regulations relating to the administration 

and enforcement of the provisions ofthe tax imposed. The taxes shall be imposed only on use within the metropolitan region 

and at rates as provided in the paragraph. 

(!) The Board in 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 of motor fuel for purposes other than those with 

regard to which the taxes may be imposed as provided in those paragraphs to receive refunds of taxes improperly paid, which 

provisions may be at variance with the refund provisions as applicable under the Municipal Retailers Occupation Tax Act. 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 rep01ting and nontaxabi!ity of the exempt sales or uses. 

(m) Any ordinance imposing or discontinuing any tax under this Section shall be adopted and a certified copy thereof filed with 

the Department on or before June 1, whereupon the Department of Revenue shall proceed to administer and enforce this Section 

on behalf of the Regional Transportation Authority as of September J next following such adoption and filing. Beginning 

( 
( 

3615/4.03. Taxes, 70 !LCS 3£1514.03 

January I, J 992, an ordinance or resolution imposing or discontinuing the tax hereunder shall be adopted and a certified copy 

thereof filed with the Department on or before the first day of July, whereupon the Department shall proceed to administer 

and enforce this Section as of the first day of October next following such adoption and filing. Beginning January], 1993, an 

ordinance or resolution imposing, increasing, decreasing, or discontinuing the tax hereunder shall be adopted and a certified 

copy thereof filed with the Department, whereupon the Department shall proceed to administer and enforce this Section as of 

the first day of the first month to occur not less than 60 days following such adoption and filing. Any ordinance or resolution of 

the Authority imposing a tax under this Section and in effect on August 1, 2007 shaU remain in full force and effect and shall 

be administered by the Department of Revenue under the tenns and conditions and rates of tax established by such ordinance 

or resolution until the Department begins administering and enforcing an increased lax under this Section as authorized by this 

amendatory Act of the 95th General Assembly. The tax rates authorized by this amendatory Act of the 95th General Assembly 

are effective only if imposed by ordinance of the Authority. 

(n) The State Department of Revenue shal!, upon collecting any taxes as provided in this Section, pay the taxes over to the State 

Treasurer as trustee for the Authority. The taxes shall be held in a trust fund 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 

and to the Authority {i) the amount of taxes collected in each County other than Cook County in the metropolitan region, (ii) 

the amount of taxes collected within the City of Chicago, and (iii) the amount collected in that portion of Cook County outside 

of Chicago, each amount less the amount necessary for the payment of refunds to taxpayers located in those areas described in 

items (i), (ii), and (iii). Within 10 days after receipt by the Comptroller of the certification of the amounts, the Comptroller shall 

cause an order to be drawn for the payment of two-thirds of the amounts certified in item (i) of this subsection to the Authority 

and one-third of the amounts certified in item (i) of this subsection to the respective counties other than Cook County and the 

amount certified in items (ii) and (iii) ofthis subsection to the Authority. 

In addition to the disbursement required by the preceding paragraph, an allocation shall be made in July 1991 and each year 

thereafter to the Regional Transportation Authority. The allocation shall be made in an amount equal to the average monthly 

distribution during the preceding calendar year ( exch1ding the 2 months of lowest receipts) and the allocation shall include the 

amount of average monthly distribution from the Regional Transportation Authority Occupation and Use Tax Replacement 

Fund. The distribution made in July 1992 and each year thereafter under this paragraph and the preceding paragraph shall be 

reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department ofReYenue 

shall prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. 

(o) Failure to adopt a budget ordinance or otherwise to comply with Section 4.01 of this Act or to adopt a Five-year Capital 

Program or otherwise to comply with paragraph (b) of Section 2.0 I of this Act shall not affect the validity of any tax imposed 

by the Authority othenvise in confom1ity with law. 

(p) At no time shall a public transportation tax or motor vehicle parking tax authorized under paragraphs (b), (c) and (d) of this 

Section be in effect at the same time as any retailers' occupation, use or service occupation tax authorized under paragraphs 

(e), {f) and (g) of this Section is in effect. 

Any taxes imposed under the authority provided in paragraphs (b), (c) and (d) shall remain in effect only until the 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), (f) or (g) is imposed the Board may not reimpose taxes as authorized in paragraphs (b ), (c) and (d) of the Section 

unless any tax authorized by paragraphs (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 Authority) arising 

under any tax imposed under paragraphs (b ), ( c) or (d) of this Section shall not be affected by the imposition of a tax under 

paragraphs (e), (f) or (g) of this 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. 

81-13 79, § 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, 199 l; 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 by P.A. 92-221. § 910. eff. 

Aug. 2, 200 l; PA 92-651. § 36, etI July l l. 2002; P.A. 93- l 068. § 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. I 11 #,,: 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 15g, 12015h, l20''5i, 120/5.i, 120·5k, 120·5/, 

120/6, 120,..6a, 120.,6b, 120:6c, 12017.120'1', 12019.1201!0, !20-'1 I, 120112,and 1201\3. 

[Ft\7]35 ILCS 735/3-7. 

[Ft\8]35 TLCS I 05!1 et seq. 

[Ft\9]210 ILCS 85/l et seq. 

[FN 10)210 llCS 4511-101 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 1101 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 !05 122. 

[FN24]6251LCS 511-157. 

[FN25]625 llCS 5'3-2002 and 5/3-2003. 

[Fl\26)35 JLCS J l 5, J et seq. 

PAGE 

HISTORJCAL AND STATUTORY NOTES 

P.A. 7S-l l 77 inserted "off-street" and "at which a fee is charged" in subd. ( d). 

P.A. 78-1267 deleted second sentence of subd. (a) which read "All taxes authorized by this paragraph may be imposed in 

addition to any other taxes of whatever kind." 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 or repeal of 

sections necessitated by two or more Acts enacted by the 79th General Assembly and of those sections so affected by two or 

more Acts enacted by the 78th General Assembly which 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)'', 

at the end of provisions later contained in subd. (m), adr.lcd the language beginning "whereupon, .. in provisions later contained 

in sub. (o), substituted "affect" for '·effect," and added provisions later contained 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 of farm machinery and equipment unless the corporate authorities provide othenvise by ordinance" in the first 

paragraphs of subds. ( e) and (f) and the second paragraph of subd. (g). 

P.A. 82-683, in subd. (e), substituted "exemptions" for "exemption" and inserted "distillation machinery and equipment, and 

graphic arts machinery and equipment" in the last sentence; and made the :identical substitution and insertion in the last sentence 

of subd. (f) and the last sentence of the second paragraph of subd. (g). 

P.A. 82-1013 incorporated the amendment by P.A. 82-683 and, in addition, in subd. (e), in the last sentence of the first paragraph, 

inserted "exemptions (f) and (g) and"; in subd. (f), in the last sentence of the first paragraph, inserted "exemptions (d-2) and 

( d-3) and"; in subd. (g), in the second sentence ofthe second paragraph, inserted "the inapplicability of the tax to certain tangible 

personal property of common carrier by rail 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" of the then directors, and, in subd. (m) inserted the requirement for 

certification of taxes collected in each County other than Cook. 

P.A. 83Hl353, which incorporated the amendments by P.A. 83-114 and P.A. 83-886, substituted references to "paragraph (n) 

of this Section·' for references to "paragraph (m) of this Section"; in subd. (h), in the first paragraph, in the first sentence, 

substituted "passenger car" for references to "motor vehicle" and "vehicle"; substituted "1-157'' for "1-146"; inserted "within 

the metropolitan region"; substituted the present second sentence for a former second sentence which read, "Within 30 days of 
361514.03. Taxes, 70 ILCS 361514.03 

passage of an ordinance imposing such tax. the Authority shall forward a certified copy of such ordinance to the Department 

of Revenue.": and. in the second paragraph, substituted "the Authority" 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 of Sections by two or more Public Acts of the 83rd General Assembly, which multiple action 

was not resolved by one of the Acts of the 83rd General Assembly affecting the particular Section." 

P.A. 85- J 135, in subd. ( e), rewrote the first paragraph which prior thereto 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 not to exceed 1 % of the gross receipts from 

such sales made in the course of such business within the County of Cook and Y..% of the gross receipts from such sales made 

in the course of such business within the Counties of DuPage, Kane, Lake, McHenry and Will. The tax 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 of Revenue. The Depmiment 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 a11 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, and 

employ the same modes of procedure, as are prescribed in Sections I. la, le, 2 (in respect to all provisions therein other than 

the State rate of tax and shall include exemptions (f) and (g) and the exemptions of fann machinery and equipment, 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 of taxes and penalties collected and except for the provision allowing retailers a ( 

deduction from the tax to CO\'er certain costs), 4, 5, 5a, Sb, 5c, 5d. 5e, Sf, 5g, 5h, 5i, Sj, 6, (except that credit 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:, of the 'Retailers' 

Occupation Tax Act', as now or hereafter amended, as fully as if provisions contained in those Sections of the 'Retailers' 

Occupation Tax Act' were set forth herein.": 

in the second paragraph, deleted "and with any taxes for \Vhich sellers may be liable under the 'Municipal Retailers' Occupation 

Tax Act', or the 'County Retailers' Occupation Tax Act' "following" 'Use Tax Acf ", and inserted the fourth paragraph: in 

subd. (f), rewrote the first paragraph which prior thereto read: 

"The Board of the Authority may impose a tax upon all persons engaged, in the metropolitan region. in the business of making 

sales of service, who, as an incident to making such sales of service, transfer tangible personal property within the metropolitan 

region, either in the fonn of tangible personal property or in the fom1 of real estate as an incident to a sale of service. The 

tax rate shall not exceed 1% of the cost price of tangible personal property so transferred within the County of Cook and Y.. 

% of the cost price of tangible personal property so transferred within the Counties of DuPage, Kane, Lake, McHenry and 

Will. The tax imposed pmsuant 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 fu11 power to administer and enforce 

this paragraph; to collect all taxes and penalties due hereunder: to dispose of taxes and penalties so collected in the manner 

hereinafter provided: and to detennine 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 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 of supplier maintaining a place 

of business in this State shall mean the Authority), 2a, 3 (in respect to all provisions therein other than the State rate of tax 

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), 
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 the jurisdiction to which the tax shall 

be a debt to the extent indicated in that Section 8 shall be the Authority), 9 (except as to the disposition of taxes and penalties 

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, I I, 12 (except the reference therein to 

Section 2b of the Retailers' Occupation Tax Act), 13 ( except that any reference to the State shall mean the Authority), the first 

paragraph of Section 15, 15'1:,, I 6, 17 ( 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 Acf, as now or hereafter amended, as fully as if provisions contained 

in those Sections ofthe 'Service Occupation Tax Act' were set forth herein."; 

and in the second paragraph deleted "and any tax for which servicemen may be liable under the 'Municipal Service Occupation 

Tax Act', or 'County Service Occupation Tax Act' ., following " 'Service Use Tax Act' "; in subd. (g), substituted "If a 

tax has been imposed pursuant to paragraph (e), a ta.'I'. shall also be imposed'. for "The Board of the Authority may impose 

a tax··, substituted. "of%%'' for ·'not to exceed 1 % ", substituted "within" for "with" preceding "the County of Cook", and 

deleted "not to exceed'' preceding "1/i%)'; in the second paragraph, deleted "except the paragraph concerning the conveying of 

news, and'' following "Sections 2("; and deleted "and except the provision concerning building materials and fixtures and shall 

include the inapplicability of the tax to certain tangible personal property of common carrier by 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 by resolution" following "tax by retailers"; in the second 

paragraph of subd. (h), deleted "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 State Treasury" following "month by the Department"; deleted "and 

the General Revenue Fund" preceding "provided"; and substituted "such amount" for "the respective amounts"; and in subd. 

(m), inserted ·'or discontinuing" and "second·'. 

( For legislative intent and effect of P.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 prior thereto read: 

·'Any ordinance imposing or discon!inuing any tax under this Section or effecting a change in the rate thereof shall be effective on 

the first day of the second 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 of Revenue shall proceed to administer and enforce this Section on behalf of the Regional Transportation 

Authority as ofthe effective date of the ordinance or resolution." 

P.A. 86-1475, Art. 5, resectioned§ 3 of the Use Tax Act,§ 3 of the Service Use Tax Act,§ 3 of the Service Occupation Tax Act, 

and§ 2 of the Retailers' Occupation Tax Act. For intent of P.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 copy ofan ordinance or resolution imposing or 

discontinuing the tax hereunder, or effecting a change in the rate thereof, added provisions covering the respective time periods 

beginning with Jan. I, 1992 and beginning with Jan. I, 1993. 

P.A 87-205, Art. 4, revised statutory references and language relating to the enactment of the Uniform Penalty and Interest Act. 

Section 5-1 of P.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 

"Effective date. Articles 3 and 4 take effect January l, 1994. Articles 1 and 5 take effect upon becoming law."' 

P.A. 87-435, the First 1991 Revisory Act, provides in Article 2 for the revision and renumbering of certain Sections of Acts 

which have been added or amended by more than one Act of the 86th General Assembly; incorporates amendments to repealed 

Acts into successor laws passed by the same General Assembly; corrects errors, revises cross-references and deletes obsolete 

tex:t in such Sections contained in Public Acts through 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% of the gross receipts from sales of food for human 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, drngs, medical appliances and insulin, 

urine testing materials, syringes and needles used by diabetics. and %0

,'o of the gross receipts from other taxable sales made in 

the course of such business within the County of Cook, and 1

/, of the gross receipts from all taxable sales made in the course of 

such business within the Counties of DuPage, 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% of the selling price of food for human 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, and'!, of the selling price from other taxable sales of 

tangible personal property so transferred within the County of Cook and Y4% of the selling price of tangible personal property 

so transferred within the Counties of DuPage, Kane, 1.nke, McHenry and Will'"; in subsec. {g), in the first paragraph, substituted 

the first through third sentences for the fom1er first sentence, which read, "If a tax has been imposed pursuant to paragraph (e), 

a tax shall also be imposed upon the privilege of using, in the metropolitan region, any item of tangible personal property which 

is purchased outside the metropolitan region at retail from a retailer, and which is titled or registered with an agency of this ( 

State's government, at a rate of Y4% of the selling price of such tangible personal property within the County of Cook, as ·'selling 

price"' is defined in the Use Tax Act, and %% of the seHing price of such tangible personal property within the Counties of 

DuPage, Kane, Lake, Mcllcnry and Will, as "selling price" is defined in the Use Tax Act."; and made nonsubstantive changes. 

P.A. 87-895, the First 1992 General Revisory Act, provides in Article 2 for the revision and renumbe1ing of certain Sections 

of Acts which ha\'e been added or amended by more than one Act of the 87th General Assembly: incorporates amendments to 

repealed Acts into successor laws passed by the same General Assembly; corrects errors, revises cross-references and deletes 

obsolete text in such Sections contained in Public Acts through P.A. 87-855. 

P.A. 91-5 l re-enacted this section; see text of 35 ILCS 165· l O regarding the re-enactment. 

P.A. 9::!-221 inserted "Regional Transportation Authority Service Occupation", in the first sentence ofsubsec. (f). 

P.A. 92-65 l, the First 2002 General Revisory Act, amended various Acts to delete obsolete text, to correct patent and technical 

errors, to revise cross references, to resolve multiple actions in the 9lst and 92nd General Assemblies and to make certain 

technical corrections in P.A. 91-937 through P.A. 92-520. 

P.A. 93-1068, § 20, inserted the penultimate paragraph of subsec. ( e). 

P.A. 95-708, § 20, rewrote subsec. (a): in the first paragraph of subsec (e), increased the percentages of gross 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 of subsec. (g), 

increased the percentages of gross receipts from%% and%%, to 1% and 0.75%, respectively; rewrote subsecs. (m) and (n); and 

in subsec. ( o ), inserted ·'Capital". Prior to being rewritten, sub secs. (a), (m), and (n) read: 

I 1~,:t 
I 

3615!4.03. Taxes, 70 ILCS 361514.03 

"'(a) In order to carry out any of the powers or purposes of the Authority, the Board may by ordinance adopted with the 

concun-cnce of9 of the then Directors, impose throughout the metropolitan region any or all of the taxes provided in this Section. 

Except as otherwise proYided in this Act. taxes imposed under this Section and civil penalties imposed incident thereto shall be 

collected and enforced by the State Department of Revenue. The Department shall have the power to administer and enforce 

the taxes and to determine all rights for refimds for erroneous payments of the taxes." 

"{m) Any ordinance imposing or discontinuing any tax under this Section shall be adopted and a certified copy thereof filed with 

the Department on or before June l, whereupon the Department of Revenue shall proceed to administer and enforce this Section 

on behalf of the Regional Transportation Authority as of September 1 next following such adoption and filing. Begi1ming 

January I, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder shall be adopted and a certified copy 

thereof filed with the Department on or before the first day of July, whereupon the Department shall proceed to administer 

and enforce this Section as of the first day of October next following such adoption and filing. Beginning January I, 1993, an 

ordinance or resolution imposing or discontinuing the tax hereunder shall be adopted and a certified copy thereof filed with 

the Department on or before the first day of October, \\"hereupon the Department shall proceed to administer and enforce this 

Section as of the first day of January next following such adoption and filing. 

•'(n) The State Department of Revenue shall, upon collecting any taxes as provided in this Section, pay the taxes over to the 

State Treasurer as trustee for the Authority. The taxes shaJI be held in a trust fund 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 Authority, which shall be the then balance in the fund, less any amount detem1ined by the 

Department to be necessary for the payment of refunds. The State Department of Revenue shall also certii).' 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 the County. With regard to the County of Cook, the certification shall specify the amount 

of taxes collected within the City of Chicago less the amount necessary for the payment of refunds to taxpayers in the City of 

( Chicago and the amount collected in that portion of Cook County outside of Chicago less the amount necessary for the payment 

of refunds to taxpayers in that portion of Cook County outside of Chicago. Within IO days after receipt by the Comptroller of 

the certification of the 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 with the 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 

thereafter to the Regional Transportation Authority. The allocation shall be made in an amount equal to the average monthly 

distribution during the preceding calendar year ( excluding the 2 months oflowest receipts} and the allocation shall include the 

amount of average monthly distribution from the Regional Transportation Authority Occupation and Use Tax Replacement 

fund. The distribution made in July 1992 and each year thereafter under this paragraph and the preceding paragraph shall be 

reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department of Revenue 

shall prepare and certify to the Comptroller for disbursement the allocations made in accordance with this 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 by the Governor on January 1 ! , 2008. Specific recommendations for change were accepted in the General Assembly on 

January 17, 2008. The bill was certified by the Governor and became effective 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 

LAW REVIEW AND JOURNAL COMMENTARIES 

Fedcra!jurisdiction. 1983, 59 Chi.-Kent L.Rev. 475. 

Regional Transportation Authority Act in northeastern !llinois. Joseph A. Tecson, 1975, 57 Chi.B.Rcc. 6. 

LlBRARY REFERENCES 

Automobiles., 387. 

Taxation. 3611. 

\Vestlaw Topic Nos. 48A, 371. 

C .J.S. [\fotor \' ehicles ~~ 1678 to 1683, l 685 to 1686. 

PAGE 

NOTES OF DECISIONS 

Bankruptcy 7 

Government sei·vices 5 

Jurisdiction JU 

Motor fuel taxes J 

Nonresident sellers 4 

Ordinances 6 

Retailers' occupation tax 2 

Standing 9 

Title or registration 8 

Validity 1 

PAGE 

1. Validity 

Provision of Regional Transportation Authority Act authorizing imposition of 1 % gross receipts tax on retail sales in Chicago, 

with a tax of 1/4 of gross receipts on similar sales in DuPage, Kane, Lake, McHenry and Will counties, is not unconstitutional; 

constitution unifom1ity requirement 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 12 l, 401 N.E.2d 28. Taxation 3627 

Legislation which authorized creation ofRegional Transportation Authority and which gave that Autholity the power to impose 

gasoline and parking taxes at a rate not to exceed 5 percent of the gross receipt for sale of gasoline and which required a 

correlation between the level and nature of fares or charges and the nature and standards of transportation to be provided did 

not unconstitutionally delegate legislative power of taxation to the authority.l loogasian v. Regional T ransp. Authority, l 974, 

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 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 

r·-i>c:·:t 

( 

I 
3615/4.03. Taxes, 70 ILCS 361514.03 

representatives of power companies within meaning of use tax provisions governing receipt of physical possession of taxable 

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 of the retailers' occupation tax based upon location of a retailer's business does not obviate the motives by 

the legislahJre's establishment of different tax rates for retailers located in Cook County and 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 parity between servicemen and retailers in that the service 

occupation tax is imposed at a rate not to exceed l % of the cost price of tangible personal property so transfened within the 

County of Cook whereas the retailers' occupation tax is imposed at a rate not to exceed I% of the gross receipts from such sales 

made in the course of such business within the County of Cook. Edward Don & Co. v. Zagel. App. J Dist 1981, 51 I!I.Dec. 

87, 95 l!LApp.3d 589. 420 KE.2d 50!. Ta:,;ation _ 3671 

The retailers' occupation tax ofthe Regional Transportation Authority cannot be distinguished from other retailers' occupation 

taxes because the language of this paragraph differentiating between the applicable tax rates in Cook County and the collar 

counties differs from the language of the other retailers' 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 "within the County of Cook," within this paragraph authorizing the retailers' occupation tax to be applied at a rate 

not to exceed 1% of the gross receipts from snch sales made in the course of such business within the County of Cook, must be 

construed as modifying the immediately preceding antecedent phrase "in the course of such business'" and. hence, as requiring 

the tax to depend on lhe location of the business ofthe retailer rather than on where title 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. Motor fuel taxes 

Department of Revenue may properly expend its funds appropriated for its ordinary and contingent expenses to administer and 

enforce motor fuel taxes imposed by Regional Transportation Authority. 1977 Op.Atty.Gen. No. S-1311. 

The Department of Revenue and the Regional Transportation Authority may agree that the Regional Transportation Authority 

will defray the cost of supplies necessary for the ongoing collection of the motor fuel taxes imposed by the Regional 

Transportation Authority by making payments directly to providers. 1977 Op.Atty.Gen. No. S-1311. 

PAGE 

4. Nonresident sellers 

Regulations providing for imposition of retailers' occupational taxes on out-of-state sellers who deliver goods from one spot in 

Illinois to another spot in Illinois pursuant to a sale to Illinois buyer do 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 of Revenue regulations governing imposition of retail occupation taxes, under which the place where title passes 

can be a controlling factor in some situations but may be insignificant in other situations, are not unreasonable, arbitrary or 

capricious nor void 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 

county where they were stored was engaged in the business ofretail selling for purposes of the municipal retailers' occupational 

tax and the regional transit authority retailers' occupational tax with respect to those sales. Chemed Corp .. Inc. v. State, App. 4 
3615/4.03. Taxes. 70 ILCS 3615/4.03 

Dist.I 989, I 34 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 and regional 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 of the taxing 

statutes [ch. 24, ~ 8-11-1 and ch. 111 #, ~ 704.03}. Chemed Corp., Inc. v. State. App. 4 Dist.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, purchase of food and medicine on behalf of nursing facility 

patients made with state Department of Public Aid funds were tax exempt as sales or transfers incidental to rendering of service 

for or by govemmental body, and social security retirement funds were paid by governmental agency. Wcntwo11h Nursing 

Center\'. Director of Dept. ofReYenue. App. I Dist.! 989, !36 Jll.Dec. 196. 188 lll.App.3d 446, 544 1'.E.:?:d 971. appeal denied 

140 Ill.Dec. 681. 129 lll.2d 573. 550 N.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, in computing private funds expended for patient care that were subject to service occupation, municipal service 

occupation, regional transportation service occupation, and use taxes; auditor testified that she computed tax assessment by 

using nursing facilities' records to detennine which portions of patient costs were paid by Department of Public Aid funds and 

which were paid from patients' own funds, daily costs of patient's food were subtracted from total daily costs, and percentage 

applied to reach total amount of services on which taxes were assessed. Wentworth Nursing Center Y. Director of Dept. 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 of absence of an expression of intention to relinquish his position and an act of relinquishment, director's statement to 

regional transportation authority board, in which he expressly indicated his intent to tender a resignation in future to mayor, was 

not a "resignation" but rather only served to give board notice of his intention to resign in future and thus he at all times retained 

rights and powers of an RT A director with result that fuel tax ordinances, which passed by necessary tv,o-thirds majority only 

with such director's vote, were valid. City of Chicago ex rel. :\fartin-Trigona v. O'lvfalley. 1978, 14 Ill.Dec. 475, 69 lll.2d474, 

372 N.E.:.!d 671. rvJunicipal Corporations _ 150 

Language ofregional transportation authority director's letter of resignation to mayor ''effective at your convenience'' indicated 

that resignation was not to be effective immediately but rather required some act of acceptance by mayor to make it viable and 

thus, where mayor never accepted but rather rejected tendered resignation, resignation never became effective and director at 

all times retained rights and powers of an RT A director with result that fuel tax ordinances, which passed by necessary twothirds majority only with such director's vote, were valid. City of Chicago ex rel. Martin-Trigona v. O'Malley, 1978, 14 IILDec. 

475. 69 !ll.2d 474, 372 N.E.2d 671. Municipal Corporations. 150 

PAGE 

7. Bankmptcy 

( 

( 
3615/4.03. Taxes. 70 !LCS 361514.03 

Taxes due under Illinois Regional Transportation Authority Act and Municipal Retailers' Occupation Tax Act are excise taxes 

subject to discharge if they were due more than three years prepetition. In re Torres, Bkrtcy.N.D. ]IL! 992. 143 B.R. I 83. 

Bankruptcy 3343.5 

PAGE 

8. Title or registration 

Regional Transportation Authority (RTA) Use Tax Act and the \.funicipal Use Tax Act impose taxes upon property both 

registered and required to be registered in Illinois. Square D Co.\'. Johnson. App. I Dist.!992, 175 Ill.Dec. 22L 233 lll.App.3d 

1070. 599 \'.E.2d 1235, appeal denied 180 Ill.Dec. 158, 147 Jll.2d 637. 606 ~.E.2d 1235. Taxntion 364! 

Corporation incorporated in Michigan holding a Michigan registration for its aircraft which was kept in Illinois was a "resident" 

of Illinois for purposes of the 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 neither sold nor provided 

paid service on its aircraft. Square D Co.\'. Johnson. App. 1 Dist.199.2. 175 Ill.Dec. 221, 233 111.App.Jd l 070, 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 bear the burden of this paragraph giving public transportation authority power to 

levy unequal retailers' occupation taxes among the geographic regions within its jurisdiction, had a real interest in the case 

and were adversely affected by imposition of the tax; thus, under Illinois )av,·, they had standing to challenge validity of the 

( statute. Villnge of Arlington Heights\', Regional Trnnsp. Authority. C.A.7 (fll.)1981, 653 F . .2d l 149. Constitutional Law 

726; Constitutional Law T26 

PAGE 

10. Jurisdiction 

District court lacked jurisdiction over suit brought by municipalities and individuals challenging the constitutionality of this 

paragraph giving a public transportation authority power to levy unequal taxes among geographic regions within its jurisdiction, 

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 of a state statute under the Fourteenth Amendment.ViUage 

of Arlington 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 through P.A. 95-720 of the 2008 Reg. Sess. 
( 
( 

Illinois General Assembly - Bill Status for HB0656 

Bill Status of HB0656 95th General Assembly 

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 Public Act. ........ S-5-0708 

Statutes Amended In Order of Appearance 

625 llCS 5/12-102 new 

Synopsis As Introduced 

Pagelof7 

Amends the Illinois Vehicle Code. Provides that a person charged for the first time with an equipment 

violation of a specified type shall not be convicted of the violation if the person presents satisfactory 

evidence in court that the vehicle has been repaired or altered in a manner that brings the vehicle into 

compliance with the applicable provision. 

Senate Committee Amendment 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 after the enacting clause. Amends the Illinois Vehicle Code. Makes a technical 

change in a provision concerning headset receivers. 

Senate Floor Amendment No. 4 

Deletes reference to: 

624 ILCS 5112-102 

Adds reference to: 

New Act 

30 ILCS 5/3-2.3 new 

{_ 30 ILCS '105/5.708 new 

30 ILCS 105162-17 from Ch. 127, par. 142z-17 

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Illinois General Assembly - 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 I LCS 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 

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( 
( 

Illinois General Assembly - Bill Status for HB0656 

-:-:- :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 after the 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 that the 

Authority shall adopt a Strategic Plan, a Five-Year Capital Program, and an Annual Budget and TwoYear Financial Plan. Provides that the Authority shall conduct audits of each of the Service Boards no 

less than every 5 years, and may conduct audits of certain transportation agencies. Requires the 

Service Board and transportation agencies to publish certain reports and submit those reports to the 

Authority. Provides that the Authority shall establish an Innovation, Coordination, and Enhancement 

Fund, an ADA Paratransit Fund, and a Suburban Community Mobility Fund. Repeals a Section of the 

Act concerning mediation of disputes between Service Boards. Provides that the Executive Director 

of the Authority may intervene in certain matters involving disputes between Service Boards. Sets 

forth certain functions of the Board of the Authority. Increases the rate of certain taxes that the 

Authority is authorized to impose. Provides that the Board of the Regional Transportation Authority 

shall consist of 16 directors. Sets forth the terms and appointment authority for those directors. 

Provides that the Board of the Commuter Rail Division shall consist of 11 directors. Sets forth the 

terms and appointment authority for those directors. Amends the Illinois Municipal Code. Provides 

that the City of Chicago may impose a real estate transfer tax. Makes numerous other changes. 

Effective immediately. 

Senate Floor Amendment No. 5 

Provides that certain 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 

Proposes that any fixed route public transportation 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, subject to certain residency requirements and under conditions 

determined by the transit board. 

I Chamber I Action 

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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 Chief Co-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:or Veh·::: es C:-,,~:-,,·:!e<?; 

017-000-000 

317/2007 House Placed on Calendar 2nd Reading - Short Debate 

3/1312007 House Second Reading - Short Debate 

3/13/2007 House Placed on Calendar Order of 3rd Reading - Short Debate 

3/27/2007 House Recalled to Second Reading - Short Debate 

3/27/2007 House Held on Calendar Order of Second Reading - Short Debate 

3/2712007 House Added Chief Co-Sponsor &Q JcAnn D Os'T'cvu 

4119/2007 House Placed on Calendar Order of 3rd Reading - Short Debate 

412612007 House Third Reading - Short Debate - Passed 116-000-000 

4126/2007 House Added Chief Co-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 May 2, 2007 

10/3/2007 Senate Chief Senate Sponsor Sen 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 Committee Amendment No. 1 Filed with Secretary by Sen. Erml 

, 1ones. Jr. 

10/3/2007 Senate Senate Committee Amendment No. 1 Referred to Rules 

10/3/2007 Senate Senate Committee Amendment No. 1 Rules Refers to 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 Established As December 31, 2007 

10/3/2007 Senate Alternate Chief Sponsor Changed to Sen. Emil Jones Jr 

10/10/2007 Senate Senate Committee Amendment No. 1 Adopted 

10110/2007 Senate Do Pass as Amended Executive; 013-000-000 

10110/2007 Senate Placed on Calendar Order of 2nd Reading October 10, 2007 

10110/2007 Senate Added as Alternate Chief Co-Sponsor Sen Jarr,es A. Deleo 

10110/2007 Senate Second Reading 

10110/2007 Senate Placed on Calendar Order of 3rd Reading October 11, 2007 

10/10/2007 Senate Sponsor Removed Sen James A. Deleo 

1011012007 Senate Added as Alternate Chief Co-Sponsor Sen. James A DeLeQ 

12/312007 Senate Pursuant to Senate Rule 3-9(b) I Referred to Rules 

1/912008 Senate Approved for Consideration Rules 

119/2008 Senate Placed on Calendar Order of 3rd Reading January 10, 2008 

1/912008 Senate Senate Floor Amendment No. 

Hendon; -Cullerton-Martinez 

2 Filed with Secretary by Sen R1ckev R. ( 

119/2008 Senate Senate Floor Amendment No. 2 Referred to Rules 

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Illinois General Assembly - Bill Status for HB0656 Page 5 of7 

1/9/2008 Senate Senate Floor Amendment 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 Floor Amendment No. 2 Recommend Do Adopt _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 Floor Amendment No. 3 Filed with Secretary by :=:;en 1- ranf. C 

l/Vatso:1 

1/9/2008 Senate Senate Floor Amendment No. 3 Referred to Ru :es 

1/9/2008 Senate Alternate Chief Sponsor Changed to Sen i:;:1cke·) R Hendo", 

1/9/2008 Senate Added as Alternate Chief Co-Sponsor Sen John J C\ijis::,,tcr 

1/9/2008 Senate Added as Alternate Chief Co-Sponsor Sen Ins Y fl,ar:,;;e7 

1/9/2008 Senate Added as Alternate Chief Co-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 Floor Amendment No. 4 Filed wlth Secretary by Sen 

HerJo;,; -Cullerton-Martinez 

R1ckev R 

1/9/2008 Senate Senate Floor Amendment No. 4 Referred to Ruies 

1/9/2008 Senate Senate Floor Amendment No. 4 Be Approved for Consideratfon R:.1ies 

1/9/2008 Senate Senate Floor Amendment No. 5 Filed with Secretary by Sen Jann J 

Cdl ert:,n 

1/9/2008 Senate Senate Floor Amendment No. 5 Referred to Ru.es 

1/9/2008 Senate Senate Floor Amendment No. 5 Be Approved for Consideration Ru'es 

1/9/2008 Senate Recalled to Second Reading 

1/9/2008 Senate Senate Floor Amendment No. 2 Tabled Hendon-Cullerton-Martinez 

1/9/2008 Senate Senate Floor Amendment No. 4 Adopted; 030-019-003; Hendon-Cu!lertonMartinez 

1/9/2008 Senate Senate Floor Amendment No. 5 Adopted; 03'1-021-003; Cul!erton 

1/9/2008 Senate Placed on Calendar Order of 3rd Reading 

1/9/2008 Senate Added as Alternate Co-Sponsor Sen Jacgueline Y. Collins 

1/9/2008 Senate Added as Alternate 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 Floor Amendment No. 3 Tabled Pursuant to Rule 5-4(a) 

1/10/2008 House Chief Sponsor Changed to ReQ Julie Harnos 

1/10/2008 House Remove Chief Co-Sponsor Reo. Chagin Rose 

1/10/2008 House Remove Chief Co-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 Order of Concurrence Senate Amendment(s) 1,4,5 

1/10/2008 House Senate Committee Amendment No. 1 Motion Filed Concur Rep Julie 

Harnos 

1/10/2008 House Senate Floor Amendment No. 4 Motion Filed Concur Re12. Julie Harnos 

1/10/2008 House Senate Floor Amendment No. 5 Motion Filed Concur Re12. Julie Harnos 

1/10/2008 House Senate Committee Amendment No. 1 Motion to Concur Referred to Rules 

Committee 

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Illinois General Assembly - Bill Status IOr HB0656 Page6of7 

1/10/2008 House Senate Floor Amendment No. 4 Motion to Concur Referred to Rules 

C_c1r:;1,nee 

1/10/2008 House Senate Floor Amendment 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 Floor Amendment No. 4 Motion to Concur Recommends be 

Adopted Rves Co~·n•t:.ee; 003-001-000 

1/10/2008 House Senate Floor Amendment No. 5 Motion to Concur Recommends be 

Adopted R,,'es Q_-,,~_r,-,:t'.c:..~; 003-001-000 

1/10/2008 House Added Chief Co-Sponsor Rei;, !=ci·::·e 1.\/asi,.:v:ton 

1/10/2008 House Added Chief Co-Sponsor Reo S1cne<,: H Ma:hias 

1/10/2008 House Added Chief Co-Sponsor Re:, Kath!een A Ryg 

1/10/2008 House Added Chief Co-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<::" Maria A11tonia 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 Floor Amendment No. 4 House Concurs 062·051-001 

1/10/2008 House Senate Floor Amendment No. 5 House Concurs 062-051-00·I 

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111inois General Assembly - Bill Status for HB0656 Page 7 of7 

1/10/2008 House Passed Both Houses 

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1/11/2008 House Sent to the Governor 

1/11/2008 House Governor Amendatory Veto 

1/15/2008 House Placed on Calendar Amendatory Veto January 17, 2008 

1/15/2008 House Amendatory Veto Motion - Motion Filed Accept Amendatory 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 Refers to 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 Accept Amendatory Veto - House Passed ,J61-\)47-0DO 

1/17/2008 Senate Placed on Calendar Amendatory Veto January 17, 2008 

1/17/2008 Senate Amendatory Veto Motion - Motion Filed Accept Amendatory 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-Sponsor to Amendatory Veto -

Cullerton 

1/17/2008 Senate Accept Amendatory Veto - Senate Passed :J22-0: 9-0CD 

1/17/2008 House Both Houses Accepted Amendatory Veto 

1/18/2008 House Sent to the Governor 

1/18/2008 House Governor Certifies Changes 

1/18/2008 House Effective Date January 18, 2008 

1/18/2008 House Public Act . ........ 95-0708 

Back To Top 

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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 Authori tv 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 regu i 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 22-101 B 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 

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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 sha 11 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 

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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. 

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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 Audi tor 

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 

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