Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Sales Tax Reform Fund: (i) subject to appropriation to the 

Department of Revenue, Municipalities having 1,000,000 or more 

inhabitants shall receive 20 96 and may expend such amount to 

fund and establish a program for developing and coordinating 

public and private resources targeted to meeL. the affordable 

housing needs of low-income and very low-income households 

within such municipality, (ii) 10 90 shall be transferred into 

the Regional Transportation Authority Occupation and Use Tax 

Replacement Fund, a special fund in the State treasury which is 

hereby created, (iii) subject to appropriation to the 

Department of Transportation, The Madison County Hetro East 

Mass Transit District shall receive . 690, (iv) the following 

amounts, plus any cumulative deficiency in such transfers for 

prior months, shall be transferred monthly into the Build 

Illinois Fund and credited to the Build Illinois Bond Account 

therein: 

Fiscal Year 

1990 

1991 

1992 

1993 

Amount 

$2,700,000 

1,850,000 

2,750,000 

2,950,000 

From Fiscal Year 1994 through Fiscal Year 2025 the transfer 

shall total $3,150,000 monthly, plus any cumulative deficiency 

in such transfers for prior months, and (v) the remainder of 

the money paid into the State and Local Sales Tax Reform Fund 

shall be transferred into the Local Government Distributive 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Fund and, except for municipalities with 1, 000, 000 or more 

inhabitants which shall receive no portion of such remainder, 

shall be distributed, subject to appropriation, in the manner 

provided by Section 2 of "An Act in relation to State revenue 

sharing with local government entities", approved July 31, 

1969, as now or hereafter amended. Municipali;:.ies with more 

than 50,000 inhabitants according to the 1980 U.S. Census and 

located within the Metro East Mass Transit District. receiving 

funds pursuant to provision (v) of this paragraph may expend 

such amounts t.o fund and establish a program for developing and 

coordinating public and private resources targeted to meet. the 

affordable housing needs of low-income and very low-income 

households within such municipality. 

(Source: P.A. 91-51, eff. 6-30-99.} 

Section 7. The Downstate Public Transportation Act is 

amended by changing Sections 2-2.04, 2-3, 2-6, 2-7, and 2-15 

and by adding Section 2-15.2 as follows: 

(30 ILCS 740/2-2.04) (from Ch. 111 2/3, par. 662.04) 

Sec. 2-2. 04. "Eligible operating expenses" means all 

expenses required for public transportation, including 

employee wages and benefits, materials, fuels, supplies, 

rental of facilities, taxes other than income taxes, payment 

made for debt service (including principal and interest) on 

publicly owned equipment or facilities, and any other 

I 
( 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

expendi;:ure which is an operating expense according to standard 

accounting pr act.ices for the providing of public 

transportation. Eligible operating expenses shall not include 

allowances: (a) for depreciation whether funded or unfunded; 

(b) for amortization of any intangible costs; (c) for debt 

service on capital acquired with the assistance of capital 

grant funds provided by the State of Illinois; (dl for profits 

or return on investment; (el for excessive payment to 

associated entities; (f) for Comprehensive Employment Training 

Act expenses; (g) for costs reimbursed under Sections 6 and 8 

of the "Urban Mass Transportation Act of 1964", as amended; (hl 

for entertainment expenses; (i) for charter expenses; (j) for 

fines and penalties; (k) for charitable donations; (1) for 

interest expense on long term borrowing and debt retirement 

other than on publicly owned equipment or facilities; (m) for 

income taxes; or 

may determine 

(n) for such other expenses as the Department 

consistent with federal Department of 

Transportation regulations or requirements. In consultation 

with participants, the Department shall, by October 2008, 

promulgate or update rules, pursuant t:o the Illinois 

Administrative Procedure Act, concerning eligible expenses to 

ensure consistent application of the Act I and the Department 

shall provide written copies of those rules to all eligible 

recipients. The Department shall review this process in the 

same manner no less frequently than every 5 years. 

With respect to participants other than any Metro-East 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Transit District participant and those receiving federal 

research development and demonstration funds pursuant to 

Section 6 of the "Urban Mass Transportation Act of 1964", as 

amended, during the fiscal year ending June 30, 1979, the 

maximum eligible operating expenses for any such participant in 

any fiscal year afT.er Fiscal Year 1980 shall be the amount 

appropriated for such participant for the fiscal year ending 

June 30, 1980, plus in each year a 10% increase over the 

maximum established for the preceding fiscal year. For Fiscal 

Year 1980 the maximum eligible operating expenses for any such 

participant shall be the amount of projected operating expenses 

upon which the appropriation for such participant for Fiscal 

Year 1980 is based. 

With respect to participants receiving federal research 

development and demonstration operating assistance funds for 

operating assistance pursuant to Section 6 of the "Urban Mass 

Transportation Act of 1964", as amended, during the fiscal year 

ending June 30, ] 979, the maximum eligible operating expenses 

for any such participant in any fiscal year after Fiscal Year 

1980 shall not exceed such participant's eligible operating 

expenses for the fiscal year ending June 30, 1980, plus in each 

year a 10% increase over the maximum established for the 

preceding fiscal year. For Fiscal Year 1980, the maximum 

eligible operating expenses for any such participant shall be 

the eligible operating expenses incurred during such fiscal 

year, or projected operating expenses upon which the 
( 

Public ACL 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

appropriation for such participant for the Fiscal Year 1980 is 

based; whichever is less. 

With respect to all participants oLher than any Metro-East 

Transit District participant, the maximum eligible operating 

expenses for any such participant in any fiscal year after 

Fiscal Year 1985 (except Fiscal Year 2008 and Fiscal Year 2009) 

shall be the amount appropriated for such participant for the 

fiscal year ending June 30, 1985, plus in each year a 10 90 

increase over the maximum established for the preceding year. 

For Fiscal Year 1985, the maximum eligible operating expenses 

for any such participant shall be the amount of projected 

operating expenses upon which the appropriation for such 

participant for Fiscal Year 1985 is based. 

With respect to any mass transit district participant that 

has increased its district boundaries by annexing counties 

since 1998 and is maintaining a level of local financial 

support, including all income and revenues, equal to or greater 

than the level in the State fiscal year ending June 30, 2001, 

the maximum eligible operating expenses for any SL.ate fiscal 

year after 2002 (except State fiscal years yea-r 2006 through 

2009) shall be the amount appropriated for that parLicipant for 

the State fiscal year ending June 30, 2002, plus, in each State 

fiscal year, a 10% increase over the preceding State fiscal 

year. For State fiscal year 2002, the maximum eligible 

operating expenses for any such participant shall be the amount 

of projected operating expenses upon which the appropriation 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

for -;:.hat participant for State fiscal year 2002 is based. For 

that participant, eligible operating expenses for State fiscal 

year 2002 in excess of the eligible operating expenses for the 

State fiscal year ending June 30, 2001, plus 10 90, must be 

attribuL.ed to the provision of services in the newly annexed 

counties. 

With respect to a participant that receives an initial 

appropriation in State fiscal year 2002 or thereafLer, the 

maximum eligible operating expenses for any State fiscal year 

after 2003 (except State fiscal years ye:.:r 2006 through 2009) 

shall be the amount appropriated for that participant for the 

State fiscal year in which it received its initial 

appropriation, plus, in each year, a 10% increase over the 

preceding year. For the initial State fiscal year in which a 

participant received an appropriation, the maximum eligible 

operating expenses for any such participant shall be the amount 

of projected operating expenses upon which the appropriation 

for that participant for that State fiscal year is based. 

With respect to the District serving primarily the counties 

of Monroe and St. Clair, beginning July 1, 2005, the St. Clair 

County Transit District shall no longer be included for new 

appropriation funding purposes as part of the Metro-East Public 

Transportation Fund and instead shall be included for new 

appropriation funding purposes as part of the Downstate Public 

Transportation Fund; provided, however, that nothing herein 

shall al-cer the eligibility of that District for previously 

( 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

appropriated funds to which it. would ocherwise be entitled. 

With respect to the Dist.rict serving primarily Madison 

County I beginning July 1, 2008, the Madison County Transic 

District shall no longer be included for new appropriation 

funding purposes as part of t.he Metro-East Public 

Transportation Fund and instead shal 1 be included for new 

appropriation funding purposes as part of the Downstate Public 

Transportation Fund; provided, however, that nothing herein 

shall alter the eligibility of that District. for previously 

appropriated funds to which it would otherwise be entitled. 

With respect to the fiscal year beqinning July 1, 2007, and 

thereafter, the following shall be included for new 

appropriation funding purposes as part of the Downstate Public 

Transportation Fund: Bond County; Bureau County; Coles County; 

Edgar County; Stephenson County and the City of Freeport; Henry 

County; Jo Daviess County; Kankakee and McLean Counties; Peoria 

County; Piatt Count.v; Shelby Countv; Tazewell and Woodford 

Counties; Vermilion County; Williamson County; and Kendall 

County. 

(Source: P.A. 94-70, eff. 6-22-05.J 

(30 ILCS 740/2-3) (from Ch. 111 2/3, par. 663) 

Sec. 2-3. (a) As soon as possible after the first day of 

each month, beginning July 1, 1984, upon certification of the 

Department of Revenue, the Comptroller shall order 

transferred, and the Treasurer shall transfer, from the General 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Revenue Fund to a special fund in the St.ate Treasury which is 

hereby created, to be known as the "Downstate Public 

Transportation Fund", an amount equal to 2/32 (beginning July 

1, 2005, 3/32) of the net revenue realized from t.he "Retailers I 

Occupation Tax Ac:t", as now or hereafter amended, the "Service 

Occupation Tax Act", as now or hereafter amended, the "Use Tax 

Act.", as now or hereafter amended, and the "Service Use Tax 

Act", as now or hereafter amended, from persons incurring 

municipal or county retailers' or service occupation tax 

liability for the benefit of any municipality or county located 

wholly within the boundaries of each part.icipant other than any 

Metro-East Transit District participant certified pursuant to 

subsection (c) of this Section during the preceding month, 

except that the Department shall pay into the Downstate Public 

Transportation Fund 2/32 (beginning July 1, 2005, 3/32) of 80% 

of the net revenue realized under the State tax Acts named 

above within any municipality or county located wholly within 

the boundaries of each participant, other than any Metro-East 

participant, for tax periods beginning on or after January l, 

1990; provided, howevc::, "':.h,:t beg"nn::'_ng with fiscal year 1925, 

the -::.rar.sfers into the Downstate Public Transportation Fund 

during any f::'_seal year shall no-:. eneeed the annual 

appropriation from ':he Dmmstate Public Transpor"':.at' on Fund 

:=or that year. The Department of Transporta"':.ion shall no"':.ify 

':he Dcpartffient o: Revermc af!d the Comptroller at the beginning 

of each f~scal year of the afflount oft.he ann.,_;a:!. appropriation 

( 
{ 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

froffl the Beem state Public Tra:1sp::rt2t:_on Fund. Ne-;:. revenue 

realized for a month shall be the revenue collected by the 

State pursuant to such Acts during the previous month from 

persons incurring municipal or county retailers' or service 

occupation tax liability for the benefit of any municipality or 

county located wholly within the boundaries of a participant, 

less the amount paid out during that same month as refunds or 

credit memoranda to taxpayers for overpayment of liability 

under such Acts for the benefit of any municipality or county 

located wholly within the boundaries of a participant. 

(b) As soon as possible after the first day of each month, 

beginning July 1, 1989, upon certification of the Department of 

Revenue, the Comptroller shall order transferred, and the 

Treasurer shall transfer, from the General Revenue Fund to a 

special fund in the State Treasury which is hereby created, to 

be known as the "Metro-East Public Transportation Fund", an 

amount equal to 2/32 of the net revenue realized, as above, 

from within the boundaries of Madison, Monroe, and St. Clair 

Counties, except that the Department shall pay into the 

Metro-East Public Transportation Fund 2/32 of 80% of the net 

revenue realized under the State tax Acts specified in 

subsection (a) of this Section within the boundaries of 

Madison, Monroe and St. Clair Counties for tax periods 

beginning on or after January 1, 1990. A local match equivalent 

to an amount which could be raised by a tax levy at the rate of 

.05% on the assessed value of property within the boundaries of 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Madison County is required annually to cause a total of 2/32 of 

the net revenue to be deposited in the Metro-East Public 

Transportation Fund. Failure LO raise the required local match 

annually shall result in only 1/32 being deposited into the 

Metro-East Public Transporta"Cion Fund after July 1, 1989, or 

1/32 of 80% of the net revenue real~zed for tax periods 

beginning on or after January 1, 1990. 

(b-5) As soon as possible after the first day of each 

month, beginning July 1, 2005, upon certification of the 

Depan:.ment of Revenue, the Comptroller shall order 

transferred, and the Treasurer shall transfer, from the Genera: 

Revenue Fund to the Downstate Public Transportation Fund, an 

amount equal to 3/32 of 80% of the net revenue realized from 

within the boundaries of Monroe and St. Clair Counties under 

the State Tax Acts specified in subsection (a) of this Section 

and provided further that, beginning July 1, 2005, the 

provisions of subsection (b) shall no longer apply with respect 

to such tax receipts from Monroe and St. Clair Counties. 

(b-6) As soon as possible after the first day of each 

month, beginning July 1 1 2008 1 upon certification by the 

Department of Revenue, the ComPLroller shall order transferred 

and the Treasurer shall transfer, from the General Revenue Fund 

to the Downstate Public Transportation Fund, an amount equal to 

3/32 of 80% of the net revenue realized from within the 

boundaries of Madison County under the State Tax Acts specified 

in subsection (a) of this Section and provided further that, 

( 
Public Act 095-0708 

' HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

beginning July 1, 2008, the provisions of subsection (bl shall 

no longer apply with respect to such Lax receipt.s from Madison 

County. 

(c) The Department shall certify to the Department of 

Revenue the eligible participants under this Article and the 

terriL.orial boundaries of such participants for the purposes of 

the Department of Revenue in subsections (a} and (b) of this 

Section. 

(d) For the purposes of this Article, beginning in fiscal 

year 2009 the General Assembly shall appropriate the Gepart.w.cnt 

shall include :.r. its ar.raal request :or appEoF-iation of 

ordinary and contingent e::pcrises an amount from the Downstate 

( Public Transportation Fund equal to the sum total funds 

projected to be paid to the participants pursuant to Section 

2-7. If the General Assembly fails to make appropriations 

sufficient to cover the amounts projected to be paid pursuant 

to Section 2-7, this Act shall constituce an irrevocable and 

continuing appropriation from the Downstate Public 

Transportation Fund of all amounts necessary for those 

purposes. 

(e) In addi":ion ':o any oth::E pcrmi':ted use of money.., ifl the 

Fund, and not,:ithstandiflg any rcstr:-cticn on ":he ::oc of the 

Fund, ff,orieys in the Dmmstatc Publ.:c Tranopor~ation Fund ffiay be 

transferred ':o the General Rc,renue :::"und as authorized by Public 

Act 87 14. TF.c General Assembly finds tha~ an encess of moneys 

existed in the Fund on July 1991, and the Governoris order 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 CRH 24846 b 

0£ Z::ly 30, '991, and chc co·:crr.or' s order e::: 3 0 f 199:;_ / 

requesting the Comptrollc::: and '.:'rcaourer to transfer an aFRcur.t 

frCFn t:'12 Fund to the General Rc.·cr.ue Fund .:;_5 hereby ·os.lid.::tcd. 

(Source: P.A. 94-70, eff. 6-22-05.) 

(30 ILCS 740/2-6) (from Ch. 111 2/3, par. 666) 

Sec. 2-6. Allocation of funds. 

{a) With respect to all participants other than any 

Metro-East Transit District participant, the Department shall 

allocate the funds to be made available to each participant 

under this Article for the following fiscal year and shall 

notify the chief official of each participant not later than 

the first day of the fiscal year of this amount, For Fiscal ( 

Year 1975, notification shall be made not later than January 1, 

197 5, of the amourn:. of such allocation. In determining the 

allocation for each participant, the Department shall estimate 

the funds available to the participant from the Downstate 

Public Transportation Fund for the purposes of this Article 

during rhe succeeding fiscal year, and shall allocate to each 

participant the amount attributable to it which shall be the 

amount paid into the Downstate Public Transportation Fund under 

Section 2-3 from within its boundaries. Said allocations may be 

exceeded for participants receiving assistance equal to 

one-third of their eligible operating expenses, only if an 

allocation is less than one-third of such participant's 

eligible operating expenses, provided, ho1tlever, that no other 
Public Act. 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

participant is denied its one-third of eligible operating 

expenses. Beginning in Fiscal Year 1997, said allocation may be 

exceeded for participants receiving assistance equal to t.he 

percentage of their eligible operating expenses provided for in 

paragraph (b) of Section 2-7, only if allocation is less than 

the percentage of such participant's eligible operating 

expenses provided for in paragraph (b) of Section 2-7, provided 

however, that no other participant. is denied its percentage of 

eligible operating expenses. 

{b) With regard to any Metro-East Transit District 

organized under the Local Mass Transit District Act and serving 

one or more of the Counties of Madison, Monroe and St. Clair 

during Fiscal Year 1989, the Department shall allocate the 

funds to be made available t.o each participant for the 

following and succeeding fiscal years and shall notify the 

chief official of each participant not later than the first day 

of the fiscal year of this amount. Beginning July 1, 2005, and 

ending June 30 1 2008, the Department shall allocate the amount 

paid into the Metro-East Public Transportation Fund to the 

District serving primarily the County of Madison. 

(Source: P.A. 94-70, eff. 6-22-05.) 

(30 ILCS 740/2-7) (from Ch. 111 2/3, par. 667) 

Sec. 2-7. Quarterly reports; annual audit. 

(a) Any Metro-East Transit District participant shall, no 

later than 60 days following the end of each quarter of any 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

fiscal year, file with the Department on forms provided by the 

Department for that purpose, a report oft.he actual operating 

deficit experienced during that quarter. The Department shall, 

upon receipt of the quarterly report, determine whether the 

operating deficits were incurred in conformity with the program 

of proposed expenditures approved by the Department pursuant to 

Section 2-11. Any Metro-East District may eit.her monthly or 

quarterly for any fiscal year file a request for the 

participant I s eligible share, as allocated in accordance with 

Section 2-6, of the amounts transferred into the Metro-East 

Public Transportation Fund. 

{b) Each participant. other than any Metro-East Transit 

District: participant shall, 30 days before the end of each 

quarter, file with the Department on forms provided by the 

Depart.ment for such purposes a report of the projected eligible 

operating expenses t.o be incurred in the next quarter and 30 

days before the third and fourth quarters of any fiscal year a 

statement of actual eligible operating expenses incurred in the 

preceding quarters. Except as otherwise provided in subsection 

(b-5), within 45 days of receipt by the Department of such 

quarterly report, the Comptroller shall order paid and the 

Treasurer shall pay from the Downstate Public Transportation 

Fund to each participant an amount equal to one-third of such 

participant's eligible operating expenses; provided, however, 

that in Fiscal Year 1997, the amount paid to each participant 

from the Downstate Public Transportation Fund shall be an 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

amount equal to 47% of such participant 1 s eligible operating 

expenses and shall be increased to 49% in Fiscal Year 1998, 51% 

in Fiscal Year 1999, 53% in Fiscal Year 2000, d't'te- 55% in Fiscal 

Years ¥efrr 2001 throuoh 2007, and 65% in Fiscal Year 2008 and 

thereafter; however, in any year that a participant receives 

funding under subsection {i) of Section 2705-305 of the 

Department of Transportation Law (20 ILCS 2705/2705-305), that 

participant shall be eligible only for assistance equal to the 

following percentage of its eligible operating expenses: 42% in 

Fiscal Year 1997, 44% in Fiscal Year 1998, 46% in Fiscal Year 

1999, 48% in Fiscal Year 2000, and 50% in Fiscal Year 2001 and 

thereafter. Any such payment for the third and fourth quarters 

of any fiscal year shall be adjusted to reflect actual eligible 

operaLing expenses for preceding quarters of such fiscal year. 

However, no participant shall receive an amount less than that 

which was received in the immediate prior year, provided in the 

event of a shortfall in the fund those participants receiving 

less than their full allocation pursuant to Section 2-6 of this 

Article shall be the first participants to receive an amount 

not less than that received in the immediate prior year. 

(b-5) (Blank.) With respect to c::re Biotriet serving 

primarily the cou:1ties of Monroe and St. Clair, bcg.:.nning July 

1, 2005 and each fiscal year thereafter, the District may, as 

an alternative to the provisions of oubscct.:.en (b) of Section 

2 7, fL!.e a request cdth the Departrr,cnt for a monthly p2.yffient 

of 1/12 of the affisunt appropriated to the District for that 
Public Act 095-0708 

HB0656 Re-Enrolled LRBD95 04786 DRH 24846 b 

f_::'__scal year; c::ccpt :.ha:., for t:1e f_::'__nal ::wnth sf t:le f; s::.::.l 

year, the Sistr' ct' s request shall be _::'__n ar. .::.r::.ount s·.:ch that 

the total p.::.Yfficnts fftadc to the Di.strict ir. that f.::'..s::al yea::: do 

net e:;ceed the lesser cf (i) 55% cf the District's eligible 

cpca~at'r.g cxpcr.scs -""er that £.:i.sca' year or (ii) the total 

afftcunt app:::cpria:.cd to the Bi.stri.ct for that .:"isce.l year. 

(b-10) On July 1, 2008, each participant shall receive an 

appropriation in an amount equal to 65% of its fiscal year 2008 

eligible operating expenses adjusted by the annual 10% increase 

required by Section 2-2. 04 of this Act. In no case shall any 

participant receive an appropriation that is less than its 

fiscal year 2008 appropriation. Every fiscal year thereafter, 

each participant's appropriation shall increase by 10% over the 

appropriation esL.ablished for the preceding fiscal year as 

required by Section 2-2.04 of this Act. 

(b-15) Beginning on July 1, 2007 1 and for each fiscal year 

thereafter, each pan:icipant shall maintain a minimum local 

share contribution (from farebox and all other local revenues) 

equal to the actual amount provided in Fiscal Year 2006 or, for 

new recipients, an amount equivalent to the local share 

provided in the first year of participation. 

(b-20) Any participant in the Downstate Public 

Transportation Fund may use State operating assistance 

pursuant to this Section t.o provide transportation services 

within any county that is contiguous to its territorial 

boundaries as defined by the Department and subject to 
Public Act 095-0708 

HB0656 Re-Enrolled 

Departmental approval. Any 

LRB095 04786 DRH 24846 b 

such contiguous-area service 

provided by a partici panT. after July l, 2007 must meet the 

requirements of subsection {a) of Section 2-5.1. 

(c) No later than 180 days following the last day of the 

Fiscal Year each participant shall provide the Department with 

an audit prepared by a Certified Public Accountant. covering 

that Fiscal Year. For those participants other than a 

Metro-East Transit District, any discrepancy between the 

grants paid and the percentage of the eligible operating 

expenses provided for by paragraph (b) of T.his Section shall be 

reconciled by appropriate payment or credit. In the case of any 

Metro-East Transit District, any amount of payments from T.he 

Metro-East Public Transportation Fund which exceed the 

eligible deficiT. of the participant shall be reconciled by 

appropriate payment or credit. 

{Source: P.A. 94-70, eff. 6-22-05.) 

(30 ILCS 740/2-15) (from Ch. 111 2/3, par. 675.1) 

Sec. 2-15. Except as otherwise provided in this Section, 

all funds which remain in the Downstate Public Transportation 

Fund or the Metro-East Public Transportation Fund after the 

payment of the fourth quarterly payment to participants other 

than Metro-East Transit District participants and the last 

monthly payment to Metro-East Transit participants in each 

fiscal year shall be transferred ill to the General Revenue 

Fund through fiscal year 2008 and (ii) to the Downstate Transit 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Improvement Fund for fiscal year 2009 and each fiscal year 

thereaf1:.er. Transfers shall be made no later than 90 days 

following the end of such fiscal year. Beginning fi seal year 

2010, all moneys each year in the Downstate Transit Improvement 

Fund, held solely for the benefit of the par1:.icipants in the 

Downstate Public Transportation Fund and shall be appropriated 

to the Department to make competitive capital grants to the 

participants of the respective funds. However, such amount as 

1:.he Department determines to be necessary for (1) allocation to 

participants for the purposes of Section 2-7 for the first 

quarter of the succeeding fiscal year and (2) an amount equal 

to 2% of the total allocations to participants in the fiscal 

year just ended to be used for the purpose of audit adjustments 

shall be retained in such Funds to be used by the Department 

for such purposes. 

(Source: P.A. 86-590.) 

(30 ILCS 740/2-15.2 new) 

Sec. 2-15. 2. Notwithstanding any law to the contrary, no 

later than 60 days following the effective date of this 

amendatory Act of the 95th General Assembly, any fixed route 

public transportation services provided bv 1 or under grant or 

purchase of service contracts of, every participant, as defined 

in Section 2-2.02 (1) (a), shall be provided without charge to 

all senior citizen residents of the participant aqed 65 and 

older, under such conditions as shall be prescribed by the 

( 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

participant.. 

Section 8. The Illinois Pension Code is amended by changing 

Section 22-101 and by adding Section 22-lOlB as follows: 

(40 ILCS 5/22-101) {f:rnm Ch. 108 1/2, par. 22-101) 

Sec. 22-101. Retirement Plan for Chicago Transit Authority 

Emp 1 oyees. He~ --cpc2.itan Trans" t Authority (CTA) Pe;:,s · or. Fund. 

(a) There shall be established and maintained by the 

Authority created by the "Metropolitan Transit Authority Act", 

approved April 12, 1945, as amended, (referred t.o in chis 

Section as the "Authority") a financially sound pension and 

retirement system adequate to provide for all payments when due 

under such established system or as modified from time to time 

by ordinance of the Chicago Transit Board or collective 

bargaining agreement. For this purpose, the Board must make 

contributions to the established system as required under this 

Section and may make any additional contributions provided for 

by Board ordinance or collective bargaining agreement. The 

participating employees shall make such periodic payments to 

the established system as required under this Section and may 

make any additional contributions provided for may be 

determi.ned by Board ordinance or collective bargaining 

agreement. The Board, in ~icu soc"al security payments 

required to be paid by private co:-porations engaged in similar 

activity, shall make payments intc such 20":.2:bl.::.shcd system at 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

::..cas::. eq:.ial in aF.tsun::. ts -:.he amount ::::c required to be pa.:d by 

such priv.::;.tc cerpcra:...icns. 

Provisions shall be made by the Board for all Board 

F.teffibers, officers and employees of the Authority appointed 

pursuant. to -r.he "Metropolitan Transit Authority Act" to become, 

subject to reasonable rules and regulations, participants 

meFRbers sr b::::ncf.:'._::::iar" cs of the pension or retirement system 

wi1:.h uniform rights, privileges, obligations and status as to 

the class in which such officers and employees belong. The 

terms, conditions and provisions of any pension or retirement 

system or of any amendment or modification thereof affecting 

employees who are members of any labor organization may be 

established, amended or modified by agreement with such labor 

organization, provided the terms r conditions and provisions 

must be consistent with this Act, the annual funding levels for 

the retirement system established by law must be met and the 

benefits paid to future participants in the system may not 

exceed the benefit ceilings set for future participants under 

this Act and the contribution levels required by the Authority 

and its employees may not be less than the contribution levels 

established under this Act b:::... Fftt:st be consistent with the 

::cqu:.rcfficr.ts of this Section. 

(b) The Board of Trustees shall consist of 11 members 

appointed as follows: (i) 5 trustees shall be appointed by the 

Chicago Transit Board; {ii) 3 trustees shall be appointed by an 

organization represen1:.ing the highest number of Chicago 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Transit Authority participants; (iii) one trustee shall be 

appointed by an organizat-i on representing the second-highest 

number of Chicago Transit Authority participants; (iv) one 

trustee shall be appointed by the recognized coalition 

representatives of participants who are not represented by an 

organization with the highest or second-highest number of 

Chicago Transit Aut.hority participants; and (v) one trustee 

shall be selected by the Regional Transportation Authoritv 

Board of Directors, and the trustee shall be a professi anal 

Tiduciary who has experience in the area of collectively 

bargained pension plans. Trustees shall serve until a successor 

has been appointed and qualified, or until resignation, death, 

incapacity, or disqualification. 

Any person appointed as a trustee of the board shall 

qualify by taking an oath of office that he or she will 

diligently and honestly administer the affairs of the system 

and will not knowingly violate or willfully permit the 

violation of anv of the provisions of law applicable to the 

Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110, 

1-111, 1-114 1 and 1-115 of the Illinois Pension Code. 

Each trustee shall cast individual votes, and a majority 

vote shall be final and bind-i ng upon all -interested parties, 

provided that the Board of Trustees may require a supermajority 

vote with respect to the investment of the assets of the 

Retirement Plan, and may set forth that requirement in the 

Retirement Plan documents, by-laws, or rules of the Board of 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Trustees. Each trustee shall have the rights, privileoes, 

authority, and obligations as are usual and customarv for such 

fiduciaries. 

The Board of Trustees may cause amounts on deposit in the 

Retirement Plan to be invested in those investments that are 

permitted investments for the investment of moneys held under 

any one or more of the pension or retirement systems of the 

State, any unit of local government or school district, or any 

aqency or instrumentality thereof. The Board, by a vote of at 

least two-thirds of the trustees, may transfer investment 

managemenr. to the Illinois State Board of Investment, which is 

hereby authorized to manage these investments when so requested 

by the Board of Trustees. 

(c) All individuals who were previously participants in the 

Retirement Plan for Chicago Transit Authority Employees shall 

remain participants, and shall receive the same benefits 

established by the Retirement Plan for Chicago Transit 

Authority Employees, except as provided in this amendatory Act 

or by subsequent. legislative enactment or amendment to the 

Retirement Plan. For Authority employees hired on or after the 

effective date of this amendatory Act of the 95th General 

Assemblv, the Retirement Plan for Chicago Transit Authority 

Employees shall be the exclusive retirement plan and such 

employees shall not be eligible for any supplemental plan, 

except for a deferred compensation plan funded only by employee 

contributions. 

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Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

For all Authority employees who are first hired on or after 

the effective date of this amendatory Act of the 95th General 

Assembly and are participants in the Retirement Plan for 

Chicago Transit Authority Employees, the following terms, 

conditions and provisions with respect to retirement shall be 

applicable: 

(1) Such participant shall be eligible for an unreduced 

retirement allowance for life upon the attainment of age 64 

with 25 years of continuous service. 

(2) Such participant shall be eligible for a reduced 

retirement allowance for life upon the attainment of age 55 

with 10 years of continuous service. 

(3) For the purpose of determining the retirement 

allowance to be paid to a retiring employee, the term 

"Continuous Service" as used in the Retirement Plan for 

Chicago Transit Authority Employees shall also be deemed to 

include all pension credit for service with any retirement 

system established under Article 8 or Article 11 of this 

Code, provided that the employee forfeits and relinquishes 

all pension credit under Article 8 or Article 11 of this 

Code, and the contribution required under this subsection 

is made by the employee. The Retirement Plan's actuary 

shall determine the contribution paid by the employee as an 

amount equal to the normal cost of the benefit accrued, had 

the service been rendered as an employee, plus interest per 

annum from the time such service was rendered until the 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

date the payment is made. 

(d) From the effective date of this amendatory Act through 

December 31, 2008, all participating emplovees shall 

contribute r.o the Retirement Plan in an amount not less than 6% 

of compensation~ and the Authority shall contribure to the 

Retirement Plan in an amount not less than 12~ of compensation. 

(e) (1) Beginning January 1, 2009 the Authoritv shall make 

contributions to the Retirement Plan in an amount equal to 

twelve percent. (12'o) of compensation and participating 

employees shall make contributions to the Retirement Plan in an 

amount equal to six percent (6%) of compensation. These 

contributions may be paid by the Authority and participating 

employees on a payroll or other periodic basis, but shall in 

any case be paid to the Retirement Plan at least monthly. 

(2) For t.he period ending December 31, 2040, r.he amount 

paid by the Authority in any year with respect to debt service 

on bonds issued for the purposes of funding a contribution to 

the Retirement Plan under Section 12c of the Metroooli tan 

Transit Authority Act, other than debt service oaid with the 

proceeds of bonds or notes issued by the Authority for any year 

after calendar year 2008, shall be treated as a credit against 

the amount of required contribution to the Retirement Plan by 

the Authority under subsection (e) (1) for the following year up 

to an amount not to exceed 69

0 of compensation paid by the 

Authority in that following year. 

(3) By September 15 of each year beginning in 2009 and 

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endina on December 31, 2039, on the basis of a report prepared 

by an enrolled actuary retained by the Plan, the Board of 

Trustees of the Retirement Plan shall determine the estimated 

funded ratio of the total assets of the Retirement Plan to its 

total actuarially determined liabilities, A report containing 

that determination and Lhe actuarial assumptions on which it is 

based shall be filed with the Authority, the representatives of 

its participating employees, the Auditor General of the State 

of Illinois, and the Regional Transportation Authority. If the 

funded ratio is projected to decline below 60 90 in any year 

before 2040 1 the Board of Trustees shall also determine the 

increased contribution required each year as a level percentage 

of payroll over the years remaining until 2040 using the 

proiected unit credit actuarial cost method so the funded ratio 

does not decline below 60% and include that determination in 

its report. If the actual funded ratio declines below 60>'o in 

any year prior to 2 04 0, the Board of Trustees shall also 

determine the increased contribution required each year as a 

level percentage of payroll during the years after the then 

current year us i nq the projected unit credit actuarial cost 

method so the funded ratio is projected to reach at least 60% 

no later than 10 years after the then current year and include 

that determination in its report. Within 60 davs after 

receiving the report, the Auditor General shall review the 

determination and the assumptions on which it is based, and if 

he finds that the determination and the assumptions on which it 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

is based are unreasonable in the aggregate, he shall issue a 

new determination of the funded ratio, the assumptions on which 

it is based and the increased contribution required each year 

as a level percentage of payroll over the years remaining until 

2040 using the projected unit credit actuarial cost method so 

the funded ratio does not decline below 60% or in the event 

of an actual decline below 60%, so the funded ratio is 

projected to reach 60% bv no later than 10 years after the then 

current year. If the Board of Trustees or the Auditor General 

determine that an increased contribution is required to meet 

the funded ratio required by the subsection, effective January 

1 following the determination or 30 days after such 

determination, whichever is later one-third of the increased 

contribution shall be paid by participating employees and 

two-thirds by the Authority, in addition to the contributions 

required by this subsection (1). 

(4) For the period beginning 2040, the minimum contribution 

to the Retirement Plan for each fiscal year shall be an amount 

determined by the Board of Trustees of the Retirement Plan to 

be sufficient to bring the total assets of the Retirement Plan 

up to 90% of its total actuarial liabilities by the end of 

2059. Participating employees shall be responsible for 

one-third of the required contribution and the Authority shall 

be responsible for two-thirds of the required contribution. In 

making these determinations, the Board of Trustees shall 

calculate the required contribution each year as a level 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

percenLage of payroll over the years remaining to and including 

fiscal year 2059 using the projected unit credit actuarial cost 

method. A report containing that determination and the 

actuarial assumptions on which it is based shall be filed by 

September 15 of each year with the Authority, the 

representatives of its participating employees, the Auditor 

General of the State of Illinois and the Reaional 

Transportation Authority. If the funded ratio is projected to 

fail to reach 90% by December 31 2059 the Board of Trustees 

shall also determine the increased contribution required each 

year as a level percentage of payroll over the years remaining 

until December 31, 2059 using the projected unit credit 

actuarial cost method so the funded ratio will meet 9090 bv 

December 31, 2059 and include that determination in its report. 

Within 60 days after receivinq the report, the Auditor General 

shall review the determination and the assumptions on which it 

is based and if he finds that the determination and the 

assumptions on which it is based are unreasonable in the 

aggregate, he shall issue a new determination of the funded 

ratio, the assumptions on which it is based and the increased 

contribution required each year as a level percentage of 

payroll over the years remaining until December 31, 2059 using 

the projected unit credit actuarial cost method so the funded 

ratio reaches no less than 90% by December 31, 2059. If the 

Board of Trustees or the Auditor General determine that an 

increased contribution is required to meet the funded ratio 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

required by Lhis subsection, effective January 1 following the 

determination or 30 days after such determination, whichever is 

later, one-third of the increased contribution shall be paid by 

parLicipating employees and two-thirds bv the Authority, in 

addition to the contributions required by subsection (e) (1). 

(5) Beginning in 2060, the minimum contribution for each 

year shall be the amount needed to maintain the L.otal assets of 

the Retirement Plan at 90% of the total actuarial liabilities 

of the Plant and the contribution shall be funded two-thirds by 

the Authority and one-L.hird by the participating employees in 

accordance with this subsection. 

(f) The Authority shall take the steps necessary to comply 

with Section 414 (h) (2) of the Internal Revenue Code of 1986 1 as 

amended, to permit the pick-up of employee contributions under 

subsections (d) and {e) on a tax-deferred basis. 

(g) The Board of Trustees shall certify to the Governor, 

the General Assembly the Auditor General, the Board of the 

Regional Transportation Authority, and the Authority at least 

90 days prior to the end of each fiscal year the amount of the 

required contributions to the retirement system for the next 

retirement system fiscal year under this Section. The 

certification shall include a copy of the actuarial 

recommendations upon which it is based. In addition, copies of 

the certification shall be sent to the Commission on Government 

Forecasting and Accountability and the Mayor of Chicago. 

(h) (1) As to an employee who first becomes entitled to a 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

retirement allowance corrLmencino on or after November 30 1989 

the retirement allowance shall be the amount determined in 

accordance with the following formula: 

(Al One percent (Pc} of his "Average Annual 

Compensation in the hiqhest four (4) completed Plan Years" 

for each full year of cont. i nuous service from the date of 

original employment to the effective date of the Plan; plus 

(B) One and seventy-five hundredths percent (1.75%) of 

his "Average Annual Compensation in the highest four (4) 

completed Plan Years" for each year (including fractions 

thereof to completed calendar months) of continuous 

service as provided for in the Retirement Plan for Chicago 

Transit Authority Employees. 

Provided, however that: 

(2) As to an employee who first becomes entitled to a 

ret:irement allowance commencing on or after January 1, 1993, 

the retirement allowance shall be the amount determined in 

accordance with the following formula: 

{A) One percent of his "Average Annual 

Compensation in the highest four (4) completed Plan Years" 

for each full year of continuous service from the date of 

original employment to the effective date of the Plan; plus 

(B) One and eighty hundredths percent (1.80 90) of his 

"Average Annual Compensation in the highest four (4) 

completed Plan Years" for each year (including fractions 

thereof to completed calendar months) of continuous 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

service as provided for in the Retirement Plan for Chicago 

Transit Authority Employees. 

Provided however that.: 

(3) As to an employee who first becomes entitled to a 

retirement allowance conunencing on or after January 1, 1994, 

the ret-i rement allowance shall be the amount determined in 

accordance with the following formula: 

(A) One percent (1%) of his "Average Annual 

Compensation in the highest four (4) completed Plan Years" 

for each full year of continuous service from the date of 

original employment to the effective date of the Plan; plus 

(B) One and eighty-five hundredths percent (1.85%) of 

his "Average Annual Compensation in the highest four (4) 

completed Plan Years" for each year (including fractions 

thereof to completed calendar months) of continuous 

service as provided for in the Retirement Plan for Chicago 

Transit Authoritv Employees. 

Provided however that: 

(4) As to an employee who first becomes entitled to a 

retirement allowance commencing on or after January 1, 2000, 

the retirement allowance shall be the amount determined in 

accordance with the following formula: 

(A) One percent (1%) of his "Average Annual 

Compensat.ion in the highest four (4) completed Plan Years" 

for each full year of continuous service from the date of 

original employment to the effective date of the Plan; plus 

( 
( 

Public Act 095-0708 

HB0656 Re-Enrolled 

(Bl Two percent of 

LRB095 04786 DRH 24846 b 

his "Average Annual 

Compensation in the highest four (4) completed Plan Years" 

for each year (including fractions thereof to completed 

calendar months) of continuous service as provided for in 

the Retirement Plan for Chicago Transit Authority 

Employees. 

Provided, however that: 

(5) As to an employee who first becomes entitled to a 

retirement allowance commencing on or after January 1, 2001, 

the retirement al 1 owance shall be the amount determined in 

accordance with the following formula: 

(Al One percent (lII Of' his "Average Annual 

Compensation in the highest four (4) completed Plan Years" 

for each full year of continuous service from the date of 

original employment to the effective date of the Plan; plus 

(B} Two and fifteen hundredths percent (2.15%) of his 

"Average Annual Compensation in the highest four (4) 

completed Plan Years" for each vear (including fractions 

thereof to completed calendar months) of continuous 

service as provided for in the Retirement Plan for Chicago 

Transit Authority Employees. 

The changes made by this amendatory Act of the 95th General 

Assembly, to the extent that they affect the rights or 

privileges of Authority employees that are currently the 

subject of collective bargaining, have been agreed to between 

the authorized representatives of these employees and of the 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Authority prior to enactment of this amendatory Act, as 

evidenced by a Memorandum of Understanding between these 

representatives that:. will be filed with the Secretary of State 

Index Department and designated as "95-GA-COS". The General 

Assembly finds and declares that those changes are consistent 

with 49 U.S.C. 5333(b) (also known as Section 13(c) of the 

Federal Transit Act) because of this agreement between 

authorized representatives of these employees and of the 

Authority, and that any future amendments to the provisions of 

this amendatorv Act of the 95th General Assembly, to the extent 

those amendments would affect the rights and privileges of 

Authority employees that are currently the subject of 

collective bargaining, would be consistent with 49 U.S.C. 

5333(b) if and only if those amendments were agreed to between 

these authorized representatives prior to enactment. 

(i) Early retirement incentive plan; funded ratio. 

(1) Beqinning on the effective date of this Section, no 

early retirement incentive shall be offered to 

participants of the Plan unless the Funded Ratio of the 

Plan is at least 80% or more. 

(2) For the purposes of this Section, the Funded Ratio 

shall be the Adjusted Assets divided by the Actuarial 

Accrued Liability developed in accordance with Statement 

#25 promulgated by the Government Accounting Standards 

Board and the actuarial assumptions described in the Plan. 

The Adjusted Assets shall be calculated based on the 

( 
Public Act 095-0708 

( HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

methodology described in the Plan. 

(j I Nothing in this amendatory Act of the 95th General 

Assembly shall impair the rights or privileges of Authority 

employees under anv other law. 

(b) Bcgi:1ning January 1, 2009, the Ac.cheri-::y shall ffl.akc 

contr:.butiens -::o ~he retirefficflt systeffi ifi an amour,:... ·,;hish, 

-::egether Kith the eol"l:t:ibc.tions c:: par::.icipants, ir.tcrcst 

earned en .:.rn-estrnents, and othe1- income, r,;ill. m:cct tf'.c cos-:: 

rr,aintaining and adminio::.er:'..ng the reti.refftent plan lfi 

accordar:.ce ·.:i-::h appl i:::::able as-<;::.;_;.::._,-ial rc._offifftcndationo and 

assuffiPticns and the x:cqu' rcFF.en:cs OJ. this Section. T:'rcse 

contributions may be paid on a payroll or e-::hcr pe:-iod.:.c basis, 

b·.;t shall in ar.y case be paid at leas::. monthly. 

For rctireffier.-:: system fi:::cal years 2009 through 2058, '::.he 

miniffi:uw, ::ontributien ::.o the reti::eF.tent systeFft ::.o be ff,ade by the 

Authority fer each fiscal year shall be an affioun~ detcnnined 

jo.:.n:....!.y by '::.he Authori~y a?td the trus-::ec of the ret · rcrr,cnt 

oyotcFF, to be su:':fieient to br:.ng the te~al assets of Che 

re-::.irefficnt oyo-::.ew, up to 90~ of i-::.s total. actuarial liab:., i.::.ieo 

by the end of fiscal year 2058. In making these deterff,inatien::s, 

'::.he required Authority contribution shall be calculated each 

year as a level percentage of payroll o..-cr the years remaining 

to and including :":iscal year 20§8 and shall be detcrffiincd under 

-::he prej ected unit credit actuarial cost u,e-::.hed. Beginning in 

retirement syo:...effi fiscal yea,- 2859, the ff,inifi",Uffi Authority 

contribution :':or each fiscal year of'.all be the amount needed to 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

maintain the total assets of the •ctirement system at 90% sf 

the total actuarial 'iabil"tics of the oys-effi. 

For purposes ~£ c. dcte~-mining employer ccn':_rib:.:ti;:;ns and 

act:.:ar'a' liab"li_ics under this subsection, contribut"cns and 

liabilities rc2.at" r.g to hca!th cs.re bene:'.:its shall net be 

i::-.cL.:ded. Ao used in this Section, "r:::.tirrn,ent system fiscal 

year" means the calendar yea::, o:c ouch other p 1 an year as r:.ay 

be def iced f::: Offi .. clfflC to ti~,e in the ag,..eerr.ent ~mown as the 

Retirement 9 lal9: for Chicago Transit l'.utflority Eff.ployces, er its 

su::ces5cr agreement. 

(::) The Authorit:i,· and the tr:.:stee sha2.l jo"ntly certify to 

'the ~overncr, the General l.s5efflbly, and the Boe.rd s:' the 

:'-cgional ':'ransper:.atic:1 Tiuthority ::;:. er be"'°ore Ho•,~cmber ~5 of ( 

2008 and s::' e:::eh year therea:'ter Che ai.:P.eu:,:... sf the required 

Au-::.hority contrib:.:-::.icr.s to t':1e retirc.F,cnt systcffi for the next 

rcti:::-err.ent syotCffl ~isce::l year ur.der subscctic:1 (bl. ~he 

ccrti::'"catien shall include a copy the acL:arial 

reesfflP.'.enda_io::1s upon ,,,]-c.ieh i-::. is based. In addition, espies o~ 

-::.he cer"ti:'ieat::..on shall be sent to the Com!'f.isoiem el"! Gsvernffl:ent 

Forecasting and Acceun'tability, the Hayer Chicago, the 

Chicago City Council, and the Cook Ccufity Beard. 

(d) The .7'ru'thcrity shall talte all actions lawfully available 

to it to 5eparate the funding of health care bcr.c:'its :or 

retirees and their dcpendent5 and s::rvi•:ors ""refft the funding 

for its retirement system. The Authority shall endeavor to 

ach::.c-Jc this separation as sooft as possible, and in any event 
Public Act 095-0708 

H30656 Re-Enrolled 

no :'._a-::.e~ thar. Jar.uc.ry 1, 2009. 

LRB095 04786 DRH 24846 b 

(2) This affiendatory }'.:::t o.c the gqth General Assonbly does 

not affect or impa:.r the 1-i_ght c~ either ':he l'atho;::ity or ::_cs 

cmpleycc:::s to eel leeti·;ely bargain the &fficunt or level o:: 

emp:'..oyee cor:triJs>..:.t:.ens to -::.1:-,e rc-::.irement eysteFR. 

{Source: P.A. 94-839, eff. 6-6-06.) 

(40 ILCS 5/22-1018 new) 

Sec. 22-1018. Health Care Benefits. 

(a) The Chicago Transit Authority (hereinafter referred to 

in this Section as the "Authority") shal 1 take all actions 

lawfully available to it to separate the funding of health care 

benefits for retirees and their dependents and survivors from 

the funding for its retirement svstem. The Authority shal 1 

endeavor to achieve this separation as soon as possible, and in 

any event no later than July 1, 2009. 

(bl Effective 90 days after the effective date of this 

amendatory Act of the 95th General Assembly, a Retiree Health 

Care Trust is established for the purpose of providing health 

care benefits to eligible retirees and their dependents and 

survivors in accordance with the terms and conditions set forth 

in this Section 22-lOlB. The Retiree Health Care Trust shall be 

solely responsible for providing health care benefits to 

eligible retirees and their dependents and survivors by no 

later than July l, 2009, but no earlier than January 1, 2009. 

(1) The Board of Trustees shall consist of 7 members 
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appointed as follows: {i) 3 trustees shall be appointed by 

the Chicago Transit Board; (ii) one trustee shall be 

appoin~ed by an organization representing the highest 

number of Chicaao Trans-it Authority participants; (iii) 

one trustee shall be appointed bv an organization 

representing the second-highest number of Chicago Transit 

Authority pan:icipants; (iv) one trustee shall be 

appointed bv the recognized coalition representatives of 

participants who are not represented by an organization 

with the highest or second-highest number of Chicago 

Transit Authori~v participants; and (v} one trustee shall 

be selected by the Regional Transportation Authority Board 

of Directors, and the trustee shall be a professional 

fiduciary who has experience in the area of collectively 

bargained retiree health plans. Trustees shall serve until 

a successor has been appointed and qualified, or until 

resianation, death, incapacity, or disqualification. 

Any person appointed as a trustee of the board shall 

qualify by taking an oath of office that he or she will 

diligently and honestly administer the affairs of the 

system, and will not knowingly violate or willfully permit 

the violation of any of the provisions of law applicable to 

the Plan, including Sections 1-109, 1-109.1, 1-109.2, 

1-110 1-111 1-114 and 1-115 of Article 1 of the Illinois 

Pension Code. 

Each trustee shall cast individual votes and a 

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Public Act 095-0708 

HB0656 Re-Enrolled 

majority vote shall be final 

LRB095 04786 DRH 24846 b 

and binding upon all 

interested parties, provided that the Board of Trustees mav 

require a supermajority vote with respect to the investment 

of the assets of the Retiree Health Care Trust, and may set 

forth that requirement in the trust agreement or by-laws of 

the Board of Trustees. Each trustee shall have t:he rights, 

privileges, authority and obligations as are usual and 

customary for such fiduciaries. 

(21 The Board of Trustees shall establish and 

administer a health care benefit program for eligible 

retirees and their dependents and survivors. The heal th 

care benefit program for eligible retirees and their 

dependents and survivors shall not contain any plan which 

provides for more than 90% coverage for in-network services 

or 70% coverage for out-of-network services after anv 

deductible has been paid. 

(3) The ReLiree Health Care Trust shall be administered 

by the Board of Trustees according to the following 

requirements: 

(i) The Board of Trustees may cause amounts on 

deposit in the Retiree Health Care Trust to be invested 

in those investments that are permitted investments 

for the investment of moneys held under any one or more 

of the pension or retirement systems of the State, any 

unit of local government or school district, or any 

agency or instrumentality thereof. The Board, by a vote 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

of at least two-thirds of Lhe trustees, may transfer 

investment manaaement to the Illinois State Board of 

Investment, which is herebv authorized to manage these 

investments when so requested by the Board of Trustees. 

(ii) The Board of Trustees shall establish and 

maintain an appropriate funding reserve level which 

shall not be less than the amount of incurred and 

unreported claims plus 12 months of expected claims and 

administrative expenses. 

(iii) The Board of Trustees shall make an annual 

assessment of the funding levels of the Retiree Health 

Care Trust and shall submit a report to the Audi tor 

General aL least 90 days prior to the end of the fiscal 

year. The report shall provide the following: 

(A) the actuarial present value of projected 

benefits expected to be paid to current and future 

retirees and their dependents and survivors; 

(B) the actuarial present value of prolected 

contributions and trust income plus assets; 

(Cl the reserve required by subsection 

(b) (3) (ii); and 

(D) an assessment of whether Lhe actuarial 

present value of projected benefits expected to be 

paid to current and future retirees and their 

dependents and survivors exceeds or is less than 

the actuarial present value of projected 

I 

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Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

contributions and trust income plus assets in 

excess of the reserve required by subsection 

(bl (3) (ii) . 

If the actuarial present value of projected 

benefits expected to be paid t.o current and future 

retirees and their dependenr.s and survivors exceeds 

the actuarial present value of projected contributions 

and trust income plus assets in excess of the reserve 

required by subsection (b) (3) (ii), then the report 

shall provide a plan of increases in employee, retiree 1 

dependent, or survivor contribution levels, decreases 

in benefit levels, or both, which is projected to cure 

the shortfall over a period of not more than 10 years. 

If the actuarial present value of projected benefits 

expected to be paid to current and future retirees and 

their dependents and survivors is less than the 

actuarial present value of projected contributions and 

trust income plus assets in excess of the reserve 

required by subsection (b) (3) (ii} 1 then the report may 

provide a plan of decreases in employee, retiree, 

dependent, or survivor contribution levels, increases 

in benefit levels or both to the extent of the 

surplus. 

(iv) The Auditor General shall review the report 

and plan provided in subsection (b) (3) (iii) and issue a 

determination within 90 days after receiving the 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

report and plan, with a copy of such determination 

provided to the General Assembly and the Regional 

Transportation Authority, as follows: 

(A) In the event of a projected shortfall, if 

the Auditor General determines that the 

assumpLions stated in the report are not 

unreasonable in the aggregate and that the plan of 

increases in employee, retiree, dependent, or 

survivor contribution levels, decreases in benefit 

levels, or both, is reasonably projected to cure 

the shortfall over a peri ad of not more than 10 

years, then the Board of Trustees shall implement 

the pl an. If the Auditor General determines that 

the assumptions stated in the report are 

unreasonable in the aggregate, or that the plan of 

increases in employee, retiree, dependent, or 

survivor contribution levels decreases in benefit 

levels, or both, is not reasonably prolected to 

cure the shortfall over a period of not more than 

10 years 1 then the Board of Trustees shall not 

implement the plan, the Auditor General shall 

explain the basis for such determination to the 

Board of Trustees, and the Auditor General may make 

recommendations as to an alternative report and 

plan. 

(B) In the event of a projected surplus, if the 

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Auditor General determines that the assumvcions 

stated in the report are not unreasonable in the 

aggregate and that the plan of decreases in 

employee, retiree, dependent, or survivor 

contribution levels, increases in benefit leve 1 s, 

or both, is not unreasonable in the aggregate, then 

the Board of Trustees shall implement the plan. If 

the Auditor General determines that the 

assumptions stated in the report are unreasonable 

in the aggregate, or that the plan of decreases in 

employee, retiree, dependent, or survivor 

contribution levels, increases in benefit levels 

or both, is unreasonable in the aggregate, then the 

Board of Trustees shall not implement. the plan, the 

Audit.or General shall explain the basis for such 

determination to the Board of Trustees and the 

Auditor General may make recommendations as to an 

alternative report and plan. 

(C) The Board or Trustees shall submit an 

alternative report and plan within 45 days after 

receiving a reiection determination by the Auditor 

General. A determination by the Auditor General on 

any alternative report and plan submitted by the 

Board of Trustees shall be made within 90 days 

after receiving the alternative report and plan, 

and shall be accepted or rejected according to the 
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requirements of this subsection (b) (3) (iv). The 

Board of Trustees shall continue to submit 

alternat:.ive reports and plans to the Auditor 

General, as necessary, until a favorable 

determination is made by the Auditor General. 

(4) For any retiree who first retires effective on or 

aft:.er the effective date of this amendatory Act of the 95th 

General Assembly, to be eligible for retiree heal th care 

benefits upon retirement the retiree must be at:. least 55 

years of age, retire with 10 or more years of continuous 

service and satisfy the preconditions established bv this 

amendatory Act in addition to any rules or regulations 

promulgated by the Board of Trustees. This paragraph (4) 

shall not apply to a disability allowance. 

(5) Effective January 1, 2009, the aggregate amount of 

retiree, dependent and survivor contributions to t:.he cost 

of their health care benefits shall not exceed more than 

45?o of the total cost of such benefits. The Board of 

Trustees shall have the discretion to provide different:. 

contribution levels for retirees, dependents and survivors 

based on their years of service, level of coverage or 

Medicare eligibility, provided that the total contribution 

from all retirees, dependents, and survivors shall be not 

more than 45% of the total cost of such benefits. The term 

"total cost of such benefits" for purposes of this 

subsection shall be the total amount expended by the 

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resolution of anv dispute, he or she may provide a written 

determination recommendina a change in the fares or charges or 

the allocation of revenues for such service or directing a 

change in the nature or provider of service that is the sublect 

of the dispute. The Executive Director shall base such 

determination upon t.he goals and objectives o-f the Strategic 

Plan established pursuant to Sect.ion 2. Ola (bl . Such 

determination shall be presented to the Board of the Authority 

and, if approved by the affirmative vote of at least 9 of the 

then Directors of the Authority, shall be final and shall be 

implemented by any affected Service Board and transportation 

agency within the time frame required by the determination. 

(70 ILCS 3615/2.14) (from Ch. 111 2/3, par. 702.14) 

Sec. 2.14. Appointment of Officers and Employees. The 

Authority may appoint, retain and employ officers, attorneys, 

agents, engineers and employees. The officers shall include an 

Executive Director, who shall be the chief executive officer of 

the Authority, appointed by the Chairman with the concurrence 

of 11 ~ of the other then Directors of the Board. The Executive 

Director shall organize the staff of the Authority, shall 

allocate their functions and duties, shall transfer such staff 

to the Suburban Bus Division and the Commuter Rail Division as 

is sufficient to meei:. their purposes, shall fix compensation 

and conditions of employment of the staff of the Authority, and 

consistent with the policies of and direction from the Board, 
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Lake all actions necessary to achieve its purposes, fulfill its 

responsibilities and carry out its powers, and shall have such 

other powers and responsibilities as the Board shall determine. 

The Executive Director must be an individual of proven 

transportation and management skills and may not be a member of 

the Board. The Authority may employ its own professional 

management personnel to provide professional and technical 

expertise concerning its purposes and powers and to assist it 

in assessing the performance of the Service Boards in the 

metropolitan region. 

No unlawful discrimination, as defined and prohibited in 

the Illinois Human Rights Act, shall be made in any term or 

aspect of employment nor shall there be discrimination based 

upon political reasons or factors. The Authority shall 

establish regulations LO insure that its discharges shall noL 

be arbitrary and that hiring and promotion are based on merit. 

The Authority shall be subject to the "Illinois Human 

Rights Act", as now or hereafter amended, and the remedies and 

procedure established thereunder. The Authority shall file an 

affirmative action 

Department of 

employed and 

Human 

program 

Rights 

that employees 

without regard to unlawful 

for employment by it with the 

to ensure that applicants are 

are treated during employment, 

discrimination. Such affirmative 

action program shall include provisions relating to hiring, 

upgrading, demotion, transfer, recruitment, recruitment 

advertising, selection for training and rates of pay or other 

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forms of compensation. 

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

LRB095 04786 DRH 24846 b 

(70 ILCS 3615/2.lBa) (from Ch. 111 2/3, par. 702.lBa) 

Sec. 2 .18a. (a) The provisions of this Section apply to 

collective bargaining agreements (including extensions and 

amendments to existing agreements) between Service Boards or 

transportation agencies subject to the jurisdiction of Service 

Boards and their employees, which are entered into after 

January 1, 1984. 

(b) The Authority shall approve amended budgets prepared by 

Service Boards which incorporate the costs of collective 

bargaining agreements between Service Boards and their 

employees. The Authority shall approve such an amended budget 

provided that it determines by the affirmative vote of 12 ~ of 

its then members that the amended budget meets the standards 

established in Section 4.11. 

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

(70 ILCS 3615/2.30) 

Sec. 2.30. Paratransit services. 

(a) For purposes of this Act, "ADA paratransit services" 

shall mean those comparable or specialized transportation 

services provided by, or under grant or purchase of service 

contracts of, the Service Boards to individuals with 

disabilities who are unable to use fixed route transportation 
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systems and who are determined to be eligible, for some or all 

of their trips, for such services under the Americans with 

Disabilities Act of 1990 and its implementing regulations. 

(bl Beginning July 1, 2005, the Authority is responsible 

for the funding, from amounts on deposit in the ADA Paratransit 

Fund established under Section 2. Old of this Act financial 

review and oversight of all ADA paratransit services that are 

provided by the Authority or by any of the Service Boards. The 

Suburban Bus Board shall operate or provide for the operation 

of all ADA paratransit services by no later than July 1, 2006, 

except that this date may be extended to the extent necessary 

to obtain approval from the Federal Transit Administration of 

the plan prepared pursuant to subsection (c) 

(c) No later than January 1, 2006, the Authority, in 

collaboration with the Suburban Bus Board and the Chicago 

Transit Authority, shall develop a plan for the provision of 

ADA paratransit. services and submit such plan to the Federal 

Transit Administration for approval. Approval of such plan by 

the Authority shall require the affirmative votes of 11. ~ of 

the then Directors. The Suburban Bus Board, the Chicago Transit 

Authority and the Authority shall comply with the requirements 

of the Americans with Disabilities Act of 1990 and its 

implementing regulations in developing and approving such plan 

including, without limitation, consulting with individuals 

with disabilities and groups representing them in the 

coJTu~unity, and providing adequate opportunity for public 

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comment and public hearings. The plan shall include the 

contents required for a paratransit plan pursuant to the 

Americans with Disabilities Act of 1990 and its implementing 

regulations. The plan shall also include, wiLhout limitation, 

provisions to: 

I 11 maintain, at a minimum, Lhe levels of ADA 

paratransit service that are required to be provided by the 

Service Boards pursuam:. L.o the Americans with Disabilities 

Act of 1990 and its implementing regulations; 

(2) transfer the appropriate ADA paratransit services, 

management, personnel, service contracts and assets from 

the Chicago Transit Authority to the Authority or the 

Suburban Bus Board, as necessary, by no later than July 1, 

2006, except that Lhis date may be extended to the extent 

necessary to obtain approval from the Federal Transit 

Administration of the plan prepared pursuant to this 

subsection (c); 

(3) provide for consistent policies throughout the 

metropolitan region for scheduling of ADA paratransit 

service trips to and from destinations, with consideration 

of scheduling of return trips on a "will-call" open-ended 

basis upon request of the rider, if practicable, and with 

consideration of an increased number of trips available by 

subscription service than are available as of the effective 

date of this amendatory Act; 

(4) provide that service contracts and rates, entered 
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into or set after t.he approval by the Federal Transit 

Administration of the plan prepared pursuant to subsection 

(c) of this Section, with private carriers and taxicabs for 

ADA paratransit service are procured by means of an open 

procurement. process; 

(5) provide for fares, fare collection and billing 

procedures for ADA paratransit services 1:.hroughout the 

metropolitan region; 

(6) provide for performance standards for all ADA 

paratransit service transportation carriers, with 

consideration of door-t.o-door service; 

( 7) provide, in cooperation wit.h the Illinois 

Department of Transportation, the Illinois Department of 

Public Aid and other appropriate public agencies and 

private entities, for the application and receipt of 

grants, including, without limitation, reimbursement from 

Medicaid or at.her programs for ADA paratransit services; 

(8) provide for a system of dispatch of ADA paratransit. 

services transportation carriers throughout the 

metropolitan region, with consideration of county-based 

dispatch systems already in place as of the effective date 

of this amendatory Act; 

(9) provide for a process of determining eligibility 

for ADA paratransit services that complies with the 

Americans with Disabilities Act of 1990 and its 

implementing regulations; 

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(10) provide for consideration of innovative methods 

LO provide and fund ADA paratransit services; and 

(11) provide for the creation of one or more ADA 

advisory boards, or the reconstitution of the existing ADA 

advisory boards for the Service Boards, to represent the 

diversity of 

metropolitan 

input from 

individuals with disabilities in the 

region and 

individuals 

to provide appropriate ongoing 

with disabilities into L-he 

operation of ADA paratransit services. 

(d) All revisions and annual updates to the ADA paratransit 

services plan developed pursuant to subsection (c) of this 

SecLion, or certifications of continued compliance in lieu of 

plan updates, that are required to be provided to the Federal 

Transit Administration shall be developed by the Authority, in 

collaboration with the Suburban Bus Board and the Chicago 

Transit Authority, and the Authority shall submit such 

revision, update or certification to the Federal Transit 

Administration for approval. Approval of such revisions, 

updates or certifications by the Authority shall require the 

affirmative votes of 12 9 of the then Directors. 

(el The Illinois Department of Transportation, Lhe 

Illinois Department of Public Aid, the Authority, the Suburban 

Bus Board and the Chicago Transit Authority shall enter into 

intergovernmental agreements as may be necessary to provide 

funding and accountability for, and implementation of, the 

requirements of this Section. 
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(f) By no later than J1.pril 1, 2007, the Authority shall 

develop and submit to the General Assembly and the Governor a 

funding plan for ADA paratransit services. Approval of such 

plan by the Authority shall require the affirmative votes of 11. 

~ of the then Direc-;:.ors. The funding plan shall, at a minimum, 

contain an analysis of the current costs of providing ADA 

paratransit services, projections of the long-term costs of 

providing ADA paratransit services, identification of and 

recommendations for possible 

ADA paratransit services, 

cost efficiencies in providing 

and identification of and 

recommendations for possible funding sources for providing ADA 

paratransi-;:. services. The Illinois Depan:.ment of 

Transportation, the Illinois Department of Public Aid, the 

Suburban Bus Board, the Chicago Transit Authority and other 

State and local public agencies as appropriate shall cooperate 

with the Authority in the preparation of such funding plan. 

(g) Any funds derived from the federal Medicaid program for 

reimbursement of the costs of providing ADA paratransit 

services within the metropolitan region shall be directed to 

the Authority and shall be used to pay for or reimburse the 

costs of providing such services. 

(h) Nothing in this amendatory Act shall be construed to 

conflict with the requirements of the Americans with 

Disabilities Act of 1990 and its implementing regulations. 

(Source: P.A. 94-370, eff. 7-29-05.) 

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(70 ILCS 3615/2.31 new) 

LRB095 04786 DRH 24846 b 

Sec. 2. 31. Disadvantaged Business Enterprise Contracting 

and Equal Employment Opportunity Programs. The Authority and 

each Service Board shall, as soon as is practicable but in no 

event later than two years after the effective date of this 

amendatory P..ct 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 proaram. The 

program shall establish narrowly tailored goals for the 

participation of disadvantaged business enterprises as the 

Authority and each Service Board determines appropriate. The 

goals shall be based on demonstrable evidence of the 

availability of ready, willing, and able disadvantaged 

business enterprises relative to all businesses ready, 

willing, and ab 1 e to part~ cipate on the program's contracts. 

The program shall require the Authority and each Service Board 

to monitor the progress of the contractors' 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 and each Service Board shall establish and 

maintain a program designed to promote equal employment 

opportunity. Each year, no later than October 1, the Authority 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

and each Service Board shall report to the General Assembly on 

the number of their respective employees and the number of 

their respective 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 their 

disadvantaged business enterprise contractina proqrams 1 the 

Authority and each Service Board shall submit a report with 

respect to such program to the General Assembly. In addition, 

each year no later than October 1, the Authori t.y and each 

Service Board shall submic. a copy o-f its -federally mandated 

semi-annual Uniform Report of Disadvantaged Business 

Enterprises Awards or Commitments and Payments to the General 

Assembly. 

(70 ILCS 3615/3.01) (from Ch. 111 2/3, par. 703.01) 

Sec. 3. 01. Board of Directors. The Upon e::pi--atiol". of :.he 

tena o.:: the meffibc::-s of the Transit.:'._on Board as provided for ., n 

Sectiofl 3.89, the corporate authorit.ies and governing body of 

the Authority shall be a Board consisting of 13 Directors until 

April 1, 2008 1 and 16 Directors thereafter, appointed as 

follows: 

(a) Four Directors appointed by the Mayor of the City of 

Chicago, with the advice and consent of the City Council of the 

City of Chicago, and, only until April 1 1 2008 1 a fifth 

director who shall be the Chairman of the Chicago Transit 

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Authority. Af1:er April 1, 2008, the Mayor of the City of 

Chicago, with the advice and consent of the City Council of the 

City of Chicago 1 shall appoint a fifth Director. The Directors 

appointed by the Mayor of the City of Chicaao shall not be the 

Chairman or a Director of the Chicago Transit Authority. Each 

such Director shall reside in the City of Chicago e,~ccpt -::he 

Chairrean the Chicago Transi: l'IUthority who shall reside 

,.-i:h; n -::he metropoliten area .:..s defined _:_n -::.he Hetrcpolit.:..n 

Trans, t Authority }\ct. 

(b) Four Directors appointed by the votes of a maioritv of 

the members of the Cook County Board elected from tha: par-::. of 

Cook Coun:.y ou:...s;de cf Chi_eagc, or, ir. the event such Board e::" 

:effiffiissioecrs bceo."cs elected f 0·crr. siegle )Kffiber distric"o, by 

those Cm:-.ffiissisners elected frofft districts, a majority of the 

electors of which reside outside Chicago. After April 1 2008 

a fifth Director appointed by the President of the Cook County 

Board with the advice and consent of the members of the Cook 

County Board. Ir. e_:__-::.:'.cr ease, such appcintFF.cnt shall be i;;i_-::.h 

tf',2 concurrence of fu;:r such '.:sfflfflissior-.cro. Each '5"'d"Cft Director 

appointed under this subparaqraph shall reside in that part of 

Cook County outside Chicago. 

(c) Until April 1 1 2008, 3 Directors appointed by the 

Chairmen of the County Boards of DuPage, Kane, Lake, McHenry, 

and Will Counties, as follows: 

ill Two Directors appointed by i:.he Chairmen of the 

county boards of Kane, Lake, McHenry and Will Counties, 
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with the concurrence of not less than a majority of the 

Chairmen from such counties, from nominees by the Chairmen. 

Each such Chairman may nominate not more than 2 persons for 

each position. Each such Director shall reside in a county 

in the metropolitan region other than Cook or DuPage 

Counties. 

(ii) +a+- One Director shall be appointed by the 

Chairman of the Board o:;: DuPage County Board with the 

advice and consent of the County Board or DuPage County 

Board. Such Director ftm3: shall reside in DuPage County. 

(d) After April 1, 2008, 5 Directors appoint.ed by the 

Chairmen of the County Boards of DuPage, Kane, Lake and McHenry 

Counties and the County Executive of Will County, as follows: 

(i) One Director appointed by the Chairman oft.he Kane 

County Board wiLh the advice and consent of the Kane Countv 

Board. Such Director shall reside in Kane County. 

(ii) One DirecL.or appointed by the County Executive of 

Will County with the advice and consent of the Will County 

Board. Such Direct.or shall reside in Will Countv. 

(iii) One Director appointed by the Chairman of the 

DuPage County Board with the advice and consent of the 

DuPage County Board. Such Director shall reside in DuPage 

County. 

(iv) One Director appointed by the Chairman of the Lake 

County Board with the advice and consent of the Lake County 

Board. Such Director shall reside in Lake County. 

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(v) One Di rector appointed by the Chairman of the 

McHenry County Board with the advice and consent of the 

McHenry County Board. Such Director shall reside in McHenry 

Countv. 

(vi) ~o implement the changes in appointing authority 

under this subparagraph (d) the three Directors appointed 

under subparagraph (c) and residing in Lake Countv, DuPage 

County, and Kane County respectively shall each continue to 

serve as Director until the expiration of their respective 

~erm of office and until his or her successor is appointed 

and qualified or a vacancy occurs in the office. Thereupon, 

the appointment shall be made by the officials given 

appointing authority with respect to the Director whose 

term has expired or office has become vacant. 

(e) The Chairman serving on the effective date of this 

amendatory Act of Lhe 95th General Assembly shall con~inue to 

serve as Chairman until the expiration of his or her term of 

office and until his or her successor is appointed and 

qualified or a vacancy occurs in the office Before January 1, 

1987, ::ox: the Ce:::-ffi e::piring July 1, 1 989, the Chain:wr. shall be 

appoinced by the Governor. ThcreaL,er the Chairman shall be 

appoir.~ed by the other 1 2 Directors wi~h the concu:::rence of 

three fo1:1.rths of such Direstors. Upon the expiration or vacancy 

of the term of the Chairman then serving upon the effective 

date of this amendatory Act of the 95th General Assembly, the 

Chairman shall be appointed by the other Directors, by the 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

affirmaLive vote of at least 11 of the then Directors with at 

least 2 affirmative votes from Directors who reside in the City 

of Chicago, at least 2 affirmative votes from Directors who 

reside in Cook County outside the City of Chicago, and at least 

2 affirmative votes from Directors who reside in the Counties 

of DuPage, Lake, Will, Kane, or McHenry. The chairman shall not 

be appointed from among the other Directors. The chairman shall 

be a resident of Lhe metropolitan region. 

(f) Except as otherwise provided by this Act no Director 

shall, while serving as such, be an officer, a member of the 

Board of Directors or Trustees or an employee of any Service 

Board or transportation agency, or be an employee of the State 

of Illinois or any department or agency thereof, or of any unit 

of local government or receive any compensation from any 

elected or appointed office under the Constitution and laws of 

Illinois; except that a Director may be a member of a school 

board. 

(g) Each appointment made under this Section and under 

Section 3.03 shall be certified by the appointing authority to 

the Board, which shall maintain the certifications as part of 

the official records of the Authority; provcdcd that the 

initial appointracn~s shal' be cer~ified to ~F.e Secretary of 

Sta~e, uho shall transmit the certi.:"ications to the Beard 

following its organi:::ation. All appointFF.e:-,ts FRade by ~he 

Governor sha' l be made ,,d th the advice ar.d consent of "':.he 

Senai:.c. 

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(h) (Blank) . The Board s:" D" rectors ohal, be so appeint::d 

as to represent the City of Chicags, that part o~ Coolc County 

outs· de the Ci-::.y of '.:hicago, and that part c:: :..,he ::-:-.c:.:::-cpolitan 

region cuts" jc Cock Cc..:r.ty er. the or.c man one -.,·etc basi_s. Aft::r 

::ash Federal decenni.al ccnsuo the General Assembly shall re·v·iew 

the co:F,pcs" tion of the Board and, if e change i.s needed to 

comply ,:ith this rcquirefficr.t, shall prw:idc for the neccsoar:l 

rcvisiol"I: by J:.:ly 1 cf the third year after ::iuch census. 

Prov:.dcd, houc·;cr, tF.at the Chairman o" r Chi_cagc 1'ral"l:s:.t 

Authority shall be a Directer of the }\uthority and shall be 

CCnSid::red as represcn-::.ing the City sf CF.i::;:gs for purposes of 

this paragraph. 

( Inso::"ar as may be pract" cable, ~::tc changes "n Board 

mcmbc>~shi p nccessar:l -::.e aehie ,'C th:.s purpose shall take cf::"cct 

as ;:pprepriat:: FftCfilbcrs tonne e:~p" re, no ffi:Cmb::acl s te:::m b::.:;_ng 

reduced by r::ascn cf ouch revision of the compositier. of the 

Soard. 

{Source: P.A. 83-1417.) 

(70 ILCS 3615/3.03) (from Ch. 111 2/3, par. 703.03) 

Sec. 3. 03. Terms, vacancies. Each Director, iflcluding the 

ChainFtan, shall be appointed fo:: al"I: ; nitial :__crfft as provided 

::or 3.' 0 -::.his Act. 1'hcrcafter, each o:.rec-::.or 

shall hold office for a term of 5 years, and until his 

successor has been appointed and has qualified. A vacancy shall 

occur upon resignation, death, conviction of a felony, or 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

removal from office of a Director. Any Director may be removed 

from office upon concurrence of not less than 11 9 Directors, 

on a formal finding of incompetence, neglect of duty, or 

malfeasance in office. Within 30 days after the office of any 

member becomes vacant for any reason, the appointing 

authorities of such member shall make an appointment to fill 

the vacancy. A vacancy shall be filled for the unexpired term. 

Whenever Af".:.er Occober :;_, '934, KhCncvcr a vacancy for a 

Director, except as to the Chairman or those Directors 

appointed by the Ge-.-crr.or er the Mayor of the City of Chicago, 

exists for longer than 4 months, the new Director shall be 

chosen by election by all legislative members in the General 

Assembly representing the affected area. In order to qualify as 

a voting legislative member in this matter, the affected area 

must be more than 50% of the geographic area of the legislative 

district. 

(Source: P.A. 86-1475.) 

(70 ILCS 3615/3.05) (from Ch. 111 2/3, par. 703.05) 

Sec. 3. 05. Meetings. The Board shall prescribe the times 

and places for meeLings and the manner in which special 

meetings may be called. The Board shall comply in all respects 

with the "Open Meetings Act", approved July 11, 1957, as now or 

hereafter amended. All records, documents and papers of the 

Authority, other than those relating to matters concerning 

which closed sessions of the Board may be held, shall be 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

available for public examinat.ion, subject t.o such reasonable 

regulations as the Board may adopt. 

A majority of the Directors holding office shall constitute 

a quorum for the conduct. of business. Except as otherwise 

provided in this Act, the affirmative votes of at least 9 ~ 

Directors shall be necessary for approving any contract or 

agreemenr., adopting any rule or regulation, and any other 

action required by this Act to be taken by resolution or 

ordinance. 

The Board shall meet vdth the Regional Citizens Advisory 

Board at least once every 4 months. 

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

(70 ILCS 3615/3A.10} (from Ch. 111 2/3, par. 703A.10) 

Sec. 3A.10. Budget and Program. The Suburban Bus Board, 

subject tot.he powers of the Authority in Section 4.11, shall 

control the finances of the Division. It shall by ordinance 

appropriate money to perform the Division's purposes and 

provide for payment of debts and expenses of the Division. Each 

year the Suburban Bus Board shall prepare and publish a 

comprehensive annual budget and proposed five-year capital 

program document, and a financial plan for the 2 years 

thereafter describing the state of the Division and presenting 

for the forthcoming fiscal year and the 2 following years the 

Suburban Bus Board's plans for such operations and capital 

expenditures as it intends to undertake and the means by which 
Public AcL 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

it intends to finance them. The proposed budgetL and financial 

plan, and five-vear capital prooram shall be based on the 

Authority's estimate of funds to be made available to the 

Suburban Bus Board by or through the Authority and shall 

conform in all respects to the requirements established by the 

Authority. The proposed program a:1d budget, financial plan I and 

five-year capital program shall contain a statement of the 

funds estimated to be on hand at the beginning of the fiscal 

year, Lhe funds estimaLed to be received from all sources for 

such year and the funds estimated to be on hand at the end of 

such year. ?.:'.:tcr e.dcp~ion o::: t!=-.e A'::lthori-::.:i,•'s ::"irst ::'ivc Year 

Program, as p=svided •n Section 2.91 of this Act, the proposed 

pregr2.::r. end budget shall spcci ~ical':,: identify 2.ny respeet • n 

'dhich the rccemz.cnd::d prsgrafft dc-viat::s from the Authorit·_1 1 o 

then c:isting Five '.:car Frograra, g• v• ng ~he reasons :'.:er st:eh 

deviat• or .. The fiscal year of the Division shall be the same as 

the fiscal year of the Authority. Before the proposed budgetL 

and program ard financial plan, and five-year capital program 

are submitted to the Authority, the Suburban Bus Board shall 

hold at least one public hearing thereon in each of the 

counties in the metropolitan region in which the Division 

provides service. The Suburban Bus Board shall hold at least 

one meeting for consideration of the proposed program and 

budget, financial plan, and five-year capital program with the 

county board of each of the several counties in the 

metropolitan region in which the Division provides service. 

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After conducting such hearings and holding such meetings and 

after making such changes in the proposed program and budgetL 

financial plan, and five-year capital program as the Suburban 

Bus Board deems appropriate, it shall adopt an annual budget 

ordinance at least by November 15 next preceding the beginning 

of each fiscal year. The budgetL and pregra::n, and financial 

plan, and five-year capital program shall then be submitted to 

the Authority as provided in Section 4.11. In the event that 

the Board of the Authority determines that the budget -E:tee: 

pregrarE, and financial plan do not meet the standards of 

Section 4.11, the Suburban Bus Board shall make such changes as 

are necessary to meet such requirements and adopt an amended 

budget ordinance. The amended budget ordinance shall be 

resubmitted to the Authority pursuant to Section 4. 11. The 

ordinance shall appropriate such sums of money as are deemed 

necessary to defray all necessary expenses and obligations of 

the Division, 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 Board of the Authority may be 

made from time to time by the Suburban Bus Board. 

The budget shall: 

(i) show a balance between (A) anticipated revenues 

from all sources including operating subsidies and (B) the 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

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 'Che proceeds of any 

anticipa'Ced 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 

operating or administrative costs for the public 

transportation provided by or subject to the jurisdiction 

of the Suburban Bus Board sufficient to allow the Suburban 

Bus Board to meet its required system generated revenues 

recovery ratio and, beginning with the 2007 fiscal year, 

its system generated ADA paratransit services revenue 

recovery ratio; 

(iv) be based upon and employ assumptions and 

projec.:.ions which are reasonable and prudent; 

(v) have been prepared in accordance with sound 

financial practices as determined by the Board of the 

Authority; ttn4 

(vi) meet such other uniform financial, budgetary, or 

fiscal requirements that the Board of the Authority may by 

rule or regulation establish; and~ 

(vii) be consistent with the goals and objectives 

adopted by the Regional Transportation Authority in the 

Strategic Plan. 

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(Source: P.A. 94-370, eff. 7-29-05.) 

LRB095 04786 DRH 24846 b 

(70 ILCS 3615/3A.ll) (from Ch. 111 2/3, par. 703.~.ll) 

Sec. 3A.ll. Citizens Advisory Board. The Suburban Bus Board 

shall establish a citizens advisory board composed of 10 

residents of those portions of the metropolitan region in which 

the Suburban Bus Board 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 the Suburban Bus Board 

at least quarterly and advise the Suburban Bus Board of the 

impact of its policies and programs on the communi-c.ies it 

serves. Appointments to the citizens advisory board should, to 

the greatest extent possible, reflect the ethnic, cultural, and 

geographic diversity of all persons residing within the 

Suburban Bus Board's iurisdiction. 

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

(70 ILCS 3615/3A.14) (from Ch. 111 2/3, par. 703A.14) 

Sec. 3A.14. Labor. (a) The provisions of this Section apply 

to collective bargaining agreements (including extensions and 

amendments of existing agreements) entered into on or after 

January 1, 1984. 

(bl The Suburban Bus Board shall deal with and enter into 

written contracts with their employees, through accredited 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

representatives of such employees authorized to act for such 

employees concerning wages, salaries, hours, working 

conditions, and pension or retiremenL. provisions about which a 

collective bargaining agreement has been entered prior to the 

effective date of this amendatory Act of 1983. Any such 

agreement of the Suburban Bus Board shall provide that the 

agreement may be reopened ·c ls the amended budget submitted 

pursuant to Section 2 .18a of this Ac1:. is not approved by the 

Board of the Au1:.hority. The agreement may not include a 

provision requiring the payment of wage increases based on 

changes in the Consumer Price Index. The Suburban Bus Board 

shall not have the authority to enter 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 1:.hereon, upon request by employee 

representatives. To preserve the rights of employers and 

exclusive representatives which have established collective 

bargaining relationships or negotiated collec,:,ive 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 
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of employment about which they have bargained prior to the 

effective date of this amendatory Act of 1983. 

(c) The collective bargaining agreement may not include a 

prohibition on the use of part-time operators on any service 

operated by the Suburban Bus Boa:r:d except where prohibited by 

federal law. 

(d) Within 30 days of Lhe signing of any such collective 

bargaining agreement, the Suburban Bus Board shall determine 

Lhe 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 Authority for 

its approval under Section 4. 11. The Board may approve the 

amended budget by an affirmative vote of 12 .g. of its then 

Directors. If the budget is noL approved by the Board of the 

Authority, the agreement may be reopened and its terms may be 

renegotiated. Any amended budget which may be prepared 

following renegotiation shall be presented to the Board of the 

Authority for its approval in like manner. 

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

(70 ILCS 3615/3A.15 new) 

Sec. 3A.15. Notwithstanding any 1 aw to the contrary, no 

later than 60 days following the effective date of this 

amendatory Act of the 95th General Assembly, any fixed route 

public transportation services provided by, or under grant or 

purchase of service contracts of, the Suburban Bus Board shall 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

be prov-i ded without charge to all senior citizens of the 

Metropolitan Reoion aged 65 and older, under such conditions as 

shall be prescribed by the Suburban Bus Board. 

(70 ILCS 3615/3B.02) (from Ch. 111 2/3, par. 703B.02) 

Sec. 38.02. CormnuL.er Rail Board. 

0(~a~)-~U~n~t~i~l~~A~r~r~i~l~~lL, ~2~0~0=8L, ~t~h=e '::'he governing body of the 

Corrunuter Rail Division shall be a board consisting of 7 

directors appointed pursuant to Sections 3B.03 and 3B.04, as 

follows: 

J.ll. +a+ One director shall be appointed by the Chairman 

of the Board of DuPage County with the advice and consent 

of the County Board of DuPage County and shall reside in 

DuPage County~ 7 

ill -+et- Two directors appointed by the Chairmen of the 

County Boards of Kane, Lake, McHenry and Will Counties with 

the concurrence of not less than a majority of the chairmen 

from such counL.ies, from nominees by the Chairmen. Each 

such chairman may nominate not more than two persons for 

each position. Each such director shall reside in a county 

in the metropolitan region other than Cook or DuPage 

County. 

J.l..L +et Three directors appointed by the members of the 

Cook County Board elected from that part of Cook County 

outside of Chicago, or, in the event such Board of 

Commissioners b€comes elected from single member 

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HB0656 Re-Enrolled LRB095 04786 ORI-! 24846 b 

districts, by ~hose Commissioners elected from disLricts, 

a majority of the residents of which reside outside 

Chicago. In either case, such appointment shall be with the 

concurrence of four such Commissioners. Each such director 

shall reside in that part of Cook County outside Chicago. 

J.il -te+- One director appointed by the Mayor of the City 

of Chicago, with the advice and consent of the City Council 

of i:.he City of Chicago. Such director shall reside in the 

City of Chicago. 

J2.l The chairman shall be appointed by the directors, 

from the members of the board, with the concurrence of 5 of 

such directors. 

{b) After April 1, 2008 the governing body of the Commuter 

Rail Division shall be a board consisi:.ing of 11 directors 

appointed, pursuant to Sections 3B.03 and 3B.04, as follows: 

(1) One Director shall be appointed by the Chairman of 

i:.he DuPage County Board with the advice and consent of the 

DuPage County Board and shall reside in DuPage County. To 

implement the changes in appointing authority under this 

Section, upon the expiration of the term of or vacancy in 

office of the Director appointed under item (1) of 

subsection (a) of this Section who resides in DuPage 

County, a Director shall be appointed under this 

subparagraph. 

(2) One Director shall be appointed by the Chairman of 

the McHenry County Board with the advice and consent of the 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

McHenry Count.y Board and shall reside in McHenry County. To 

implement the change in appointing authority under this 

Section, uoon the expiration of the term of or vacancy in 

o-ffice of the Director appointed under item (2) of 

subsection (a) of this Section who resides in McHenry 

County, a Director shall be appointed under this 

subparaqraph. 

(3) One Director shall be appointed by the Wi l 1 Coum:.y 

Executive with the advice and consent of Lhe Will Count.y 

Board and shall reside in Will County. To implement the 

change in appointing authority under this Section, upon the 

expiration of the term of or vacancv in office of the 

Director appointed under item (2) of subsection (a) of this 

Section who resides in Will County, a Director shall be 

appointed under this subparagraph. 

(4) One Director shall be appointed by the Chairman of 

the Lake County Board with the advice and consent of the 

Lake County Board and shall reside in Lake County. 

(5) One Director shall be appointed by the Chairman of 

che Kane County Board with the advice and consent of the 

Kane County Board and shall reside in Kane County. 

(6) One Director shall be appointed by the Mayor of the 

City of Chicago with the advice and consent of the City 

Council of the City of Chicago and shall reside in the City 

of Chicago. To implement the changes in appointing 

authority under this Section, upon the expiration of the 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

term of or vacancy in office of the Director appointed 

under item (4) of subsection (a) of this Section who 

resides in the City o-f Chicago, a Director shall be 

appointed under this subparagraph. 

(7) Five Direc.:.ors residing in Cook County outside o-f 

the City of Chicago, as follows: 

(i) One Director who resides in Cook County outside 

of the City of Chicago, appointed by the President of 

the Cook County Board with the advice and consent of 

the members of the Cook County Board. 

(ii) One Director who resides in the township of 

Barrington, Palatine, Wheeling, Hanover, Schaumburg, 

or Elk Grove. To implement the changes in appointing 

authority under this Section, upon the expiration of 

the term of or vacancy in office of the Director 

appointed under paragraph (3) of subsection (a) of this 

Section who resides in the geographic area described in 

this subparagraph, a Director shall be appointed under 

this subparagraph. 

(iii} One Director who resides in the township of 

Northfield, New Trier, Maine, Niles, Evanston, Leyden, 

Norwood Park, River Forest, or Oak Park. 

(iv) One Director who resides in the township of 

Proviso, Riverside, Berwyn, Cicero, Lyons, Stickney, 

Lemont, Palos, or Orland. To implement the changes in 

appointing authority under this Section, upon the 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

expiration of the term of or vacancy in office of the 

Director appointed under paragraph (3) of subsection 

{a) of this Section who resides in the geographic area 

described in this subparaaraph and whose term of office 

had not expired as of August 1, 2007, a Director shall 

be appointed under this subparagraph. 

(v) One Director who resides in the township of 

Worth, Calumet, Bremen, Thornton, Rich, or Bloom. To 

implement the changes in appointing authority under 

this Section upon the expiration of the term of or 

vacancy in office of the Direct.or appointed under 

paragraph ( 3) of subsection (a) of this Section who 

resides in the geographic area described in this 

subparagraph and whose term of office had expired as of 

August 1 1 2007, a Director shall be appointed under 

this subparagraph. 

(vi) The Directors identified under the provisions 

of subparagraphs (ii) through (v) of this paragraph (7) 

shall be appointed by the members of the Cook County 

Board. Each individual Director shall be appointed by 

those members of the Cook County Board whose Board 

districts overlap in whole or in part with the 

geographic territory described in the relevant 

subparagraph. The vote of County Board members 

eligible to appoint directors under the provisions of 

subparagraphs (ii) through (v) of this paragraph (7) 
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Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

shall be weighted by the number of electors residing in 

those nortions of their Board districts within the 

geographic territory described in the relevant 

subparagraph (ii) through (v) of this paragraph (7). 

(8) The Chairman shall be appointed by the Directors, 

from the members of the Board with the concurrence of 8 of 

such Directors. To implement the changes in appointing 

authority under this Section 1 upon the expiration of the 

term of or vacancy in office of the Chairman appointed 

under item (5) of subsection (a) of this Section, a 

Chairman shall be appointed under this subparagraph. 

J.£l.. No director, while serving as such, shall be an 

officer, a member of the board of directors or trustee or an 

employee of any transportation agency, or be an employee of the 

State of Illinois or any department or agency thereof, or of 

any unit of local government or receive any compensation from 

any elected or appointed office under the Constitution and laws 

of Illinois. 

J..Ql_ Each appointment made under subsections {a) and (b) of 

this Section parag=aphs (a) through (d) and under Section 3B.03 

shall be certified by the appointing authority to the Commuter 

Rail Board which shall maintain the certifications as part of 

the official records of the Commuter Rail Board; provided -::hat 

the initial appointments shall be eer~ificd ts the Secrc::.ar:i of 

State, ·,;ho shall transffiit the certifications to the CoFPtffiute.:: 

Rail Board fellowing its organi::a ~ion. 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Appoi:1tments to the Commu-::.er Rail Board 

appo::-t.:;_cr.ed so as to represent t!l.c City of Chicago, tha::. pa:-::. 

Cook 2cun-::.y eu:...side of the Ci"':.y e' L and DuPage 

2our.::.y and tha-:. part. of ::.he mc::.ropo:!.itan reg' en e"':.he::- -:.:1:an Ces:c 

and D~Pagc Counties based en fflo:::niEg beard" ngs ::.: the sen·i::es 

prc•:ided by ::.he Cemmu-::er Ra.:;_::. Div.:;_3.:;_on as certi'.:ied tc ::.":-.e 

Board cf the 1'i:.:thori.:y by the Co?.'ur.ut:::r Rai.l Beard, pra·:idcd 

hm,•e-v-cr ::.hai.: :...he Mayer o"" :he City of Chi.cage shall appcir.-::. no 

::c,:er than 1 member s:: the Commu:...er Rail Bea:::.-d. Witf'.i;i two 

y::.ars a:':ter each federal decer.nL:.l cens·::10, the E::ard cf the 

}>u:...hsrity sh.:.:'..l revieH the ecR'tpos' tisn of the Co:::.Frtu"':.er na:_1 

Boa::d and, if cha:--1ge .:.s needed to comply -.;ith ::.h's 1ceq:;i:::-ement, 

sf'.a:!.l prov· de fer the ne=essary reapporticmr.cnt. by July :: o.:" ( 

the second y:::ar aftez such CC:'13U3. Inss""ar may be 

practicable, the char.ges in board membcrsh.:.p necessary to 

achieve this purpose shall ~alee c:':fect as app::opr' a::.c ruerrJsers 

ter:7,3 crpir:::, ::,o ff,:::":ber' s :...crffl be' ng ,-educed by reason cf s·..:ch 

rev.:;_s.:;_cr, of the compos.:;_t; on of the Commuter Rail Eo::rd. 

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

(70 ILCS 3615/3B.03) (from Ch. 111 2/3, par. 703B.03) 

Sec. 3B.03. Terms, Vacancies. Each The initial term e: the 

directer apps.:.nted pursuar.t to subdivision (a) of :::cction 3B. 02 

and "':.:"le ini."':.ial. tcrrr, of one of the directors appoini.:cd pursuant 

to subdivisior. (b) of Sect.:.on 3B.02 shall cxp'rc :::fl June 30, 

1985; the . . .... ' , ifH ci2. · term of one of the directors appoin-::.cd 

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I HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

purouant tc subd"visisn (b) cf Section 38.02 and the inizial 

terffi of enc the dirce~srs :-..ppeintcd pur.:u:-..nt Cc st:b.:J..::'..-v-ision 

(c) of Sectier. 3B.02 sfrnll .::.xpirc on J:.:nc 30, 1986; the .::'..nit.::'..al 

terms of t;.•o a~ ~he dircccors appointed purse.ant to oubdi-.-:.s• on 

(c) of ::::est·cn 3B.02 shall expi::c on J,~ne 38, 1987; ~he ini~.::'..:-..l 

term sf ~he d"rec~o:: ai=:pointcd pui~ouant to S'~bd.'..-v--ision {d) cf 

Scc~icn 3B.82 sba 1 l 01:pire on J:.::1e 30, 1988. Thereafter, each 

director shall be appointed for a term of 4 years, and until 

his successor has been appointed and qualified. A vacancy shall 

occur upon the resignation, death, conviction of a felony, or 

removal from office of a director. Any director may be removed 

from office upon the concurrence of not less than 8 ~ 

directors, on a formal finding of incompetence, neglect of 

duty, or malfeasance in office. Within 30 days after the office 

of any director becomes vacant for any reason, the appropriate 

appointing authorities of such director, as provided in Section 

38.02, shall make an appointment to fill the vacancy. A vacancy 

shall be filled for the unexpired term. 

(Source: P.A. 84-939.) 

(70 ILCS 3615/38.05) (from Ch. 111 2/3, par. 7038.05) 

Sec. 3B.05. Appointment of officers and employees. The 

Commuter Rail Board shall appoint an Executive Director who 

shall be the chief executive officer of the Division, 

appointed, retained or dismissed with the concurrence of 8 ~ of 

the directors of the Commuter Rail Board. The Executive 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Director shall appoint, retain and employ officers, attorneys, 

agents, engineers, employees and shall organize the staff, 

shall allocate their functions and duties, fix compensation and 

conditions of employment, and consistent with the policies of 

and direction from the Commuter Rail Board take all actions 

necessary to achieve its purposes, fulfill its 

responsibilities and carry out its powers, and shall have such 

other powers and responsibilities as the Commuter Rail Board 

shall determine. The Executive Director shall be an individual 

of proven transportation and management skills and may not be a 

member of the Commuter Rail Board. The Division may employ its 

own professional management personnel to provide professional 

and technical expertise concerning its purposes and powers and 

to assist it in assessing the performance of transportation 

agencies in the metropolitan region. 

No unlawful discrimination, as defined and prohibited in 

the Illinois Human Rights Act, shall be made in any term or 

aspect of employment nor shall there be discrimination based 

upon political reasons or factors. The Commuter Rail Board 

shall establish regulations to insure that its discharges shall 

not be arbitrary and that hiring and promotion are based on 

merit. 

The Division shall be subject to the "Illinois Human Rights 

Act", as now or hereafter amended, and the remedies and 

procedure established thereunder. The Commuter Rail Board 

shall file an affirmative action program for employment by it 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

with the Department of Human Rights to ensure that applicants 

are employed and that employees are treated during employment, 

without regard to unlawful discrimination. Such affirmative 

action program shall include provisions relating to hiring, 

upgrading, demotion, transfer, recruitment, recruitment 

advertising, selection for training and rates of pay or other 

forms of compensation. 

(Source: P.A. 83-885; 83-886.) 

(70 ILCS 3615/3B.07) (from Ch. 111 2/3, par. 703B.07) 

Sec. 3B.07. Meetings. The Commuter Rail Board shall 

prescribe the times and places for meetings and the manner in 

which special meetings may be called. The Commuter Rail Board 

shall comply in all respects with the "Open Meetings Act", as 

now or hereafter amended. All records, documents and papers of 

the Commuter Rail Division, other than those relating to 

matters concerning which closed sessions of the Commuter Rail 

Board may be held, shall be available for public examination, 

subject to such reasonable regulations as the board may adopt. 

A majority of the members shall constitute a quorum for the 

conduct of business. The affirmative votes of at least 6 4 

members shall be necessary for any action required by this Act 

to be taken by ordinance. 

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

(70 ILCS 3615/3B.09) (from Ch. 111 2/3, par. 703B.09) 
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BBO 65 6 Re-Enrolled LRB095 04786 DRH 24846 b 

Sec. 3B.09. General Powers. In addition to any powers 

elsewhere provided to the Commuter Rail Board, it shall have 

all of the powers specified in Section 2.20 of this Act except 

for the powers specified in Section 2.20(a) (v). The Board shall 

also have the power: 

(a) cO cooperate with the Regional Transportation 

Authority in the exercise by the Regional Transport.ation 

Authority of all t.he powers granted it by such Act.; 

(b) to receive funds from the Regional Transportation 

Authority pursuant to Sections 2.02, 4.01, 4.02, 4.09 and 4.10 

of the "Regional Transportation Am:.hority Act", all as provided 

in the "Regional Transportation Am:.hori ty Act"; e-ft-S' 

(cl t.o receive financial grants from the Regional 

Transportation Authority or a Service Board, as defined in the 

"Regional Transportation Authority Act", upon such terms and 

conditions as shall be set forth in a grant contract between 

either the Division and the Regional Transportation Authority 

or the Division and another Service Board, which contract or 

agreement may be for such number of years or duration as the 

parties may agree, all as provided in the "Regional 

Transpon:.ation Authority Act"; and-:-

(d) to borrow money for the purpose of acgui ring, 

constructing, reconstructing, extending, or improving any 

Public Transportation Facilities (as defined in Section 1.03 of 

the Regional Transportation Authority Act) operated by or to be 

operated by or on behalf of the Commuter Rail Division. For the 

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purpose of evidencing the obligation of the Commuter Rail Board 

to repay any money borrowed as provided int.his subsection, the 

Commuter Rail Board mav issue revenue bonds from time to time 

pursuant to ordinance adopted by the Commuter Rail Board, 

subject t.o the approval of t.he Regional Transportation 

Authority of each such issuance by the affirmative vote of 12 

of its then Directors; provided that the Commuter Rail Board 

may not issue bonds for the purpose of financing the 

acquisition, construction, or improvement of a corporate 

headquarters building. All such bonds shall be payable solely 

from the revenues or income or any other funds that the 

Commuter Rail Board may receive, provided that the Commuter 

Rail Board may not pledge as security for such bonds the 

moneys, if any, that the Commuter Rail Board receives from the 

Regional Transportation Authority pursuant to Section 

4. 03. 3 (f) of the Regional Transportation Authority Act. The 

bonds shall bear interest at a rate not to exceed the maximum 

rate authorized by the Bond Authorization Act. and shall mature 

at such time or times not exceeding 25 years from their 

respective dates. Bonds issued pursuant to this paragraph must 

be issued with scheduled principal or mandatory redemption 

payments in equal amounts in each fiscal year over the term of 

the bonds I with the first principa 1 or mandatory redempt.ion 

payment scheduled within the fiscal year in which bonds are 

issued or within the next succeeding fiscal vear. At least 25% 1 

based on total principal amount, of all bonds authorized 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

pursuant to this Section shall be sold pursuant to notice of 

sale and public bid. No more than 75%, based on total principal 

amount, of all bonds authorized pursuant to this Section shall 

be sold bv negotiated sale. The maximum principal amount of the 

bonds that mav be issued and outstanding at any time may not 

exceed $1,000,000,000. The bonds shall have all the qualities 

of negotiable instruments under 1:he laws of this State. To 

secure the paymem:. of any or all of such bonds and for the 

purpose of setting forth the covenants and undertakings of the 

Commuter Rail Board in connection with the issuance thereof and 

the issuance of any additional bonds payable from such revenue 

or income as well as the use and application of Lhe revenue or 

income received by the Commuter Rail Board, the Commuter Rail 

Board may execu1:e and deliver a trust agreement or agreements; 

provided that no lien upon anv physical property of the 

Commuter Rail Board shall be created thereby. A remedy for any 

breach or default of the terms of any such trust agreement by 

the Commuter Rail Board may be by mandamus proceedings in any 

court of competent jurisdiction to compel performance and 

compliance therewith, but the 1:rust agreement may prescribe by 

whom or on whose behalf such action may be instituted. Under no 

circumstances shall any bonds issued by the Commuter Rail Board 

or any other obligation of the Commuter Rail Board in 

connection with the issuance of such bonds be or become an 

indebtedness or obligation of the State of Illinois, the 

Regional Transportation Authority, or any other political 

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subdivision of or municipality within the State, nor shall anv 

such bonds or obligations be or become an indebtedness of the 

Commuter Rail Board within the purview of any constitutional 

limitation or provision, and it shall be plainly stated on the 

face of each bond that it does not constitute such an 

indebtedness or obligation but is payable solely from the 

revenues or income as aforesaid. 

(Source: P.A. 83-885; 83-886.) 

(70 ILCS 3615/3B.10) (from Ch. 111 2/3, par. 703B.10) 

Sec. 3B. 10. Budget and Program. The Commuter Rail Board, 

subject LO the powers of the Authority in Section 4.11, shall 

control Lhe finances of i::.he Division. It shall by ordinance 

appropriate money LO perform the Division's purposes and 

provide for payment of debts and expenses of the Division. Each 

year the Commuter Rail Board shall prepare and publish a 

comprehensive annual budget and proposed five-year capital 

program document, and a financial plan for the two years 

thereafter describing the state of the Division and presenting 

for the forthcoming fiscal year and the two following years the 

Commuter Rail Board's plans for such operations and capital 

expenditures as the Commuter Rail Board intends to undertake 

and the means by which it intends to finance them. The proposed 

budgetL -e:fta financial plan, and five-year capital program shall 

be based on the Authority's estimate of funds to be made 

available to the Commuter Rail Board by or through the 
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HB0656 Re-Enrolled LRB095 04786 CRH 24846 b 

Authority and shall conform in all respects to the requirements 

established by the l'rnt.hori ty. The proposed program and budget.L 

financial plan, and five-year 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 .. "'\ftcr adspt-'cn of the A:.:t.herit.y's f.::-st 

:'ive Year Program, as pro·v·idcd .:n Scct_:_en 2. 01 c-"' this Act, th:::. 

proposed program and budget shall cpcci::"ica~., y idcr.:.._:_ -"'y :::.r.y 

respect i.n ·,;h_:_eh ':he :-cccff.ff.CF.dcd prcgr,:::..m dcv-i at:::.s from the 

Authority's ::.her1 e::ist.i:s.g Five Ye:.::: P:.:ograFF., g'v'ng ':he 

Lca::sons .:or s:.:c!", cte·dat-' on. The fiscal year of the Division 

shall be the same as the fiscal year of the Authority. Before 

the proposed budget.L and progr:::.FR and financial plan, and 

five-vear capital program are submiLted to the Authority, the 

Commuter Rail Board shall hold aL least one public hearing 

thereon in each of the counties in the metropolitan region in 

which the Di vision provides service. The Commuter Rail Board 

shall hold at least one meeting for consideration of the 

proposed p::::ogram a.nd budget, financial plan, and five-year 

capital plan with the county board of each of the several 

counties in the metropolitan region in which the Division 

provides service. After conducting such hearings and holding 

such meetings and after making such changes in the proposed 

prog::a::1 and budget, financial plan, and five-year capital plan 

as the Commuter Rail Board deems appropriate, the board shall 

( 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

adopt its annual budget ordinance aL least by November 15 next 

preceding the beginning of each fiscal year. The budgetL frft€l. 

prograffi, ar.d financial plan I and f-i ve-year capi 1:.al program 

shall then be submitted to the Authority as provided in Section 

4.11. In the event Lhat the Board of the Authority determines 

that the budget and program, and financial plan do not meet the 

standards of Section 4.11, the Commuter Rail Board shall make 

such changes as are necessary to meet such requirements and 

adopt an amended budget ordinance. The amended budget ordinance 

shall be resubmitted to the Authority pursuant to Section 4.11. 

The ordinance shall appropriate such sums of money as are 

deemed necessary to defray all necessary expenses and 

obligations of the Division, 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 Board of the 

Authority may be made from time to time by the Commuter Rail 

Board. 

The budget shall: 

(i) show a balance between (A) anticipated revenues from 

all sources including operating subsidies and {BJ 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 
Public Act 095-0708 

HB0656 Re-Enrolled 

outstanding indebtedness; 

LRB095 04786 DRH 24846 b 

(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 for the 

public transportation provided by or subject to the 

jurisdic-i::ion of such Commuter Rail Board sufficient to allow 

the Commuter Rail Board to meet its required system generated 

revenue recovery ratio; 

(iv) be based upon and employ assumptions and projections 

which the Board of the Authority finds -::.o be reasonable and 

prudent.; 

(v) have been prepared in accordance wit.h sound financial 

practices as determined by the Board of the lrnthority; e-R-9: 

(vi) meet such other uniform financial, budgetary, or 

fiscal requirements that the Board of the Authority may by rule 

or regulation establish; and, 

(vii) be consistent with the goals and oblectives adopted 

by the Regional Transportation Authority in the Strategic Plan. 

(Source: P.A. 83-885; 83-886.) 

(70 ILCS 3615/3B.ll) (from Ch. 111 2/3, par. 703B.ll) 

Sec. 3B. 11. Citizens Advisory Board. The Commuter Rail 

Board shall establish a citizens advisory board composed of ten 

residents of those portions of the metropolitan region in which 

the Commuter Rail Board provides service who have an interest 

( 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

in public transportation. The members of the advisory board 

shall be named for two year terms, shall select one of their 

members to serve as chairman and shall serve wi t:hout 

compensation. The citizens advisory board shall meet with the 

Commuter Rail Board at least quarterly and advise the Commuter 

Rail 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 geographic diversity of all persons 

residing within the Commuter Rail Division 1 s jurisdiction. 

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

(70 ILCS 3615/3B.12) (from Ch. 111 2/3, par. 7038.12) 

Sec. 3B.12. Working Cash Borrowing. The Commuter Rail Board 

with the affirmative vote of 2 e of its Directors may demand 

and direct the Board of the Authority to issue Working Cash 

Notes at such time and in such amounts and having such 

maturities as the Commuter Rail Board deems proper, provided 

however any such borrowing shall have been specifically 

identified in the budget of the Commuter Rail Board as approved 

by the Board of the Authority. Provided further, that the 

Commuter Rail Board may not demand and direct the Board of the 

Authority to have issued and have outstanding at any time in 

excess of $20,000,000 in Working Cash Notes. 

(Source: P.A. 83-886.) 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

(70 ILCS 3615/3B.13) {from Ch. 111 2/3, par. 703B.13) 

Sec. 3B.13. Labor. 

(a) The provisions of this Section apply to collective 

bargaining agreements (including extensions and amendments of 

existing agreements) entered into on or after January 1, 1984. 

This Section does not apply to collective bargaining agreements 

that are subject t.o the provisions of the Railway Labor Act, as 

now or hereafter amended. 

(b) The Commuter Rail Board shall deal with and enter into 

written contracts with their employees, through accredited 

representatives of such employees authorized to act for such 

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 this amendatory Act of 1983. Any such 

agreement of the Commuter Rail Board shall provide that the 

agreement may be reopened if -.:.he amended budget submitted 

pursuant to Section 2 .18a of this Act is not approved by the 

Board of the Authority. The agreement may not include a 

provision requiring the payment of wage increases based on 

changes in the Consumer Price Index. The Commuter Rail Board 

shall not have the authority to enter 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 

( 
( 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

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 the Commuter Rail 

Board and exclusive representatives which have established 

collective bargaining relationships or negotiated collective 

bargaining agreements prior to the effective dat.e of this 

amendatory Act of 1983, the Commuter Rail Board shall be 

required Lo bargain collectively with regard to any matter 

concerning wages, hours or conditions of employment about which 

they have bargained prior to the effective date of this 

amendatory Act of 1983. 

(c) The collective bargaining agreement may not include a 

prohibition on the use of part-time operators on any service 

operated by the Commuter Rail Board except where prohibited by 

federal law. 

(d) Within 30 days of the signing of any such collect.ive 

bargaining agreement, the Commuter Rail 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 Authority for 

its approval under Section 4. 11. The Board may approve the 

amended budget by an affirmative vote of 12 -9- of its then 

Directors. If the budget is not approved by the Board of the 

Authority, the agreement may be reopened and its terms may be 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

renegotiated. Any amended budget which may be prepared 

following renegotiaLion shall be presented to the Board of Lhe 

Authority for its approval in like manner. 

(Source: P.A. 84-1308.) 

(70 ILCS 3615/38.14 new) 

Sec. 38. 14. Notwi thst.anding any law to the contrary, no 

later than 60 davs following the effective date of this 

amendatory Act of the 95th General Assembly, any fixed route 

public transportation services provided by, or under grant or 

purchase of service contract.s of the Commuter Rail Board shall 

be provided without charge to all senior citizens of the 

Metropolit.an Region aged 65 and older, under such conditions as 

shall be prescribed by the Commuter Rail Board. 

(70 ILCS 3615/4.01) (from Ch. 111 2/3, par. 704.01) 

Sec. 4.01. Budget and Program. 

(a) The Board shall control the finances of the Authority. 

It shall by ordinance adopted by the affirmative vote of at 

least 12 of its then Directors (i} appropriate money to perform 

the Authority 1 s purposes and provide for payment of debts and 

expenses of the Authority, (ii) take action with respect to the 

budget and t1.,ro-year financial plan of each Service Board, as 

provided in Section 4.11, and (iii) adopt an Annual Budget and 

Two-Year Financial Plan for the Authority that includes the 

annual budget and two-year financial plan of each Service Board 

( 

( 
Public Act 095-0708 

I HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

that has been approved by the Authority. :ash year the 

Au:hority shall prepare and pu.bl.:.sh ,:;,_ co:rrprch::f'lsive annu::l 

b:.::dgct and program decaFAcr.-::. describing ,..he state c: the 

Authority and presenti:c.g for ,..he .:o::thcoming t.:.seal yea--

Authority's plans .:::or s·c.1ch opcrat.ions and capital eHpcrA" t:.:res 

as :he Z'.uthcrL.y in:ends to undertake and the means by -;;hie!'. ic 

intends to """inanes thcffl. The Annual Budget and Two-Year 

Financial Plan proposed program and budget shall contain a 

statement of the funds estimated to be on hand for the 

Authority and each Service Board at the beginning of the fiscal 

year, the funds estimated to be received from all sources for 

such year, the estimated expenses and obligations of the 

( Authority and each Service Board for all purposes, including 

expenses for contributions to be made with respect to pension 

and other employee benefits, and the funds estimated to be on 

hand at the end of such year. After adoption of :...he Authority's 

f::.rot :-"::.•:e '.:ear PrograFF., as p!?ov" dcd .:;_n ::::cct" or. 2. 01 o:: ::.his 

t':',e proposed p>=ogr::FR and budget sha:'..l specifj_cally 

identify afly reopecc .:;_n which the rccoffifficndcd prog.;:"aFR devj_atco 

f::-oFR the Authori::.y' o then u:isting Fi·Jc Year Program, givir.g 

the reasons for such dc-v::.c.tion. The fiscal year of the 

Authority and each Service Board shall begin on January 1st and 

end on the succeeding December 31st except that the f~scal year 

::.haC bcgar. October 1, 1982, shall end December 31, 1983. By 

J~ly lot 198: and July 1st of each year thereafter the Director 

of the Illinois Governor's Office of Management and Budget 
Public Ace 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

(formerly Bureau of the Budget) shall submit to the Authority 

an estimate of revenues for the next fiscal year of the 

Auchority to be collected from the taxes imposed by the 

Authority and the amounts to be available in the Public 

Transportation Fund and the Regional TransportaLion Authority 

Occupation and Use Tax Replacement Fund and the amounts 

otherwise to be appropriated by the State co the Authority for 

its purposes. The Authority shall file a copy of its Annual 

Budget and Two-Year Financial Plan with Fe::: -::.r.c ..:-:.sea::. year 

er.ding on Dcc::::Fftl:.cr 31, 1 933, :.he Board sha.:!.l report ., -::.s res::1-t.s 

=rern opcr:::tisns and t:.r.ancial ccnd:.t:.on to -::.he General l'.::::sembly 

afld the =ove:::nsr by Jam:ary 31. Fer the fi::::cal year bcg:i nn:.ng 

January ::._93 4, aftd thereafter, the budget and p::egreFR shall 

be presen-::.cd ts the General Assembly and the Governor after its 

adoption RC~ letcr ~han the presedi_ng Geceffiber 31st. Before the 

proposed Annual Budget and Two-Year Financial Plan budget and 

pregrarr. is adopted, the Authority shall hold at least one 

public hearing thereon in the metropolir:.an region and shall 

The 3eard shall hold at ~east enc FReet"' fig for 

eofts~derati_ofl e= the proposed program aftd budget with the 

county board or its designee of each of the several counties in 

the metropolitan region. After conducting such hearings and 

holding such meetings and after making such changes in the 

proposed Annual Budget and Two-Year Financial Plan pregrarH and 

budget as the Board deems appropriate, the Board shall adopt 

its annual appropriation and Annual Budget and Two-Year 

( 
I 

( 

Public Act 095-0708 

HB0656 Re-Enrolled LRBD95 04786 DRH 24846 b 

Financial Plan budge:. ordinance. The ordinance may be adopted 

only upon the affirmative votes of .11. ~ of its then Directors. 

The ordinance shall appropriate such sums of money as are 

deemed necessary to 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 may be made from time to time by the Board upon 

the affirmative votes of 12 ~ of its then Directors. 

{b) The Annual Budget and Two-Year Financial Plan budget 

shall show a balance between anticipated revenues from all 

sources and anticipated expenses including funding of 

operating deficits or the discharge of encumbrances incurred in 

prior periods and payment of principal and interest when due, 

and shall show cash balances sufficient to pay with reasonable 

promptness all obligations and expenses as incurred. 

The Annual Budget and Two-Year Financial Plan anr.ual budg::::.t 

eecFR~dHf~i~· R!muffiHC~r~ce±l,.-,;p~lha~nn must show : 

(i) that the level of fares and charges for mass 

transportation provided by, or under grant or purchase of 

service contracts of, the Service Boards is sufficient to 

cause the aggregate of all projected fare revenues from 

such fares and charges received in each fiscal year to 

equal at least 50% of the aggregate costs of providing such 

public transportation in such fiscal year. "Fare revenues" 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

include the proceeds of all fares and charges for services 

provided, contributions received in connection with public 

transportation from units of local government other than 

the Authority, except for contributions received bv the 

Chicago Transit Authority from a real estate transfer tax 

imposed under subsection (i) of Section 8-3-19 of t.he 

Illinois Municipal Code, and from the State pursuant to 

subsection (i) of Section 2705-305 of the Department of 

Transportation Law (20 ILCS 2705/2705-305), and all other 

operating revenues properly included consistent with 

generally accepted accounting principles but do not 

include: the proceeds of any borrowings, and, beginning 

with the 2007 fiscal year, all revenues and receipts, 

including but not limited to fares and grants received from 

the federal, State or any unit of local government or other 

entity, derived from providing ADA paratransit service 

pursuant to Section 2. 30 of the Regional Transportation 

Authority Act. "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 and 

interest on bonds, notes or other evidences of obligation 

for borrowed money issued by the Authority; payments with 

respect to public transportation facilities made pursuant 

to subsection (b) of Section 2.20 of this Act; any payments 

with respect to rate protection contracts, credit 

( 

( 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

enhancements or liquidity agreements made under Section 

4 .14; any other cost to which it is reasonably expected 

that a cash expenditure will not be made; costs up ts 

s$~5~,~08"0B07,~8~8~88-----ea~ee,ce.~u~a~l~c~;,.- for passenger security including 

grants, contracts, personnel, equipment and adminisLrative 

expenses, except in the case of the Chicago Transit 

Authority, in which case the term does not include costs 

spent annually by that entity for protection against crime 

as required by Section 27a of the Metropolitan Transit 

Authority Act; the payment by the Chicago Transit Authority 

of Debt Service as defined in Section 12c of the 

Metropolitan Transit Authority Act, on bonds or notes 

issued pursuant to that Section; the payment by the 

Commuter Rail Division of debt service on bonds issued 

pursuant to Section 3B.09; expenses incurred by the 

Suburban Bus Division for the cost of new public 

transportation services funded from grants pursuant to 

Section 2. Ole of this amendatory Act of the 95th General 

Assembly for a period of 2 vears from the date of 

initiation of each such service· costs as exempted by the 

Board for projects pursuant to Section 2.09 of this Act; 

or, beginning with the 2007 fiscal year, expenses related 

to providing ADA paratransit service pursuant to Section 

2.30 of the Regional Transportation Authority Act; and in 

fiscal years 2008 through 2012 inclusive, costs in the 

amount of $200, 000, 000 in fiscal year 2008, reducing by 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

$40 1 000,000 in each fiscal year thereafter until this 

exemption is eliminated; and 

(ii) that the level of fares charged for ADA 

para~ransit services is sufficient to cause the aggregate 

of all projected revenues from such fares charged and 

received in each fiscal year to equal at least 10% of the 

aggregate costs of providing such ADA paratransit services 

in fiscal years 2007 and 2008 and at least 12"o of the 

aggregate costs of providing such ADA paratransit services 

in fiscal years 2009 and thereafter; for purposes of this 

Act, the percentages in this subsec"Lion (b) (ii) shall be 

referred to as the "system generated ADA paratransit 

services revenue recovery ratio". 

(c) The actual administrative expenses of the Authority for 

the fiscal 

$5,000,000. 

year 

The 

commencing January 1, 1985 may not exceed 

actual administrative expenses of the 

Au"[hori~y for the fiscal year commencing January 1, 1986, and 

for each fiscal year thereafter shall not exceed the maximum 

administrative expenses for the previous fiscal year plus 5%. 

"Administrative expenses" are defined for purposes of this 

Section as all expenses except: (1) capital expenses and 

purchases of the Authority on behalf of the Service Boards; (2) 

payments to Service Boards; and (3) payment of principal and 

interest on bonds, notes or other evidence of obligation for 

borrowed money issued by the Authority; (4) costs for passenger 

security including grants, contracts, personnel, equipment and 
( 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

administrative expenses; (5) payments witb. respect to public 

transportation facilities made pursuant to subsection (b) of 

Section 2.20 of this Act; and (6) any payments with respect to 

rate protection contracts, credit enhancements or liquidity 

agreements made pursuant to Section 4.14. 

(d) This subsection applies only until the Department 

begins administering and enforcing an increased tax under 

Section 4. 03 (m) as authorized by t.his amendatory Act of the 

95th General Assembly. After withholding 15% of the proceeds of 

any tax imposed by the Authority and 15% of money received by 

the Authority from the Regional Transportation Authority 

Occupation and Use Tax Replacement Fund, the Board shall 

allocate the proceeds and money remaining to the Service Boards 

as follows: (1) an amount equal to 85 9

0 of the proceeds of those 

taxes collect.ed within the City of Chicago and 85% of the money 

received by the Authority on account. of transfers to the 

Regional Transportation Authority Occupation and Use Tax 

Replacement Fund from the County and Mass Transit District Fund 

attributable to retail sales within the City of Chicago shall 

be allocated to the Chicago Transit Authority; (2) an amount 

equal to 85% of the proceeds of those taxes collected within 

Cook County outside the City of Chicago and 85% of the money 

received by the Authority on account of transfers to the 

Regional Transportation Authority Occupation and Use Tax 

Replacement Fund from the County and Mass Transit District Fund 

attributable to retail sales within Cook County outside of the 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

ci1:y of Chicago shall be allocated 30% to the Chicago Transit 

Authority, 55% to the Commuter Rail Board and 15'o to the 

Suburban Bus Board; and (3) an amount equal 1:0 85 90 of the 

p:!'.'oceeds of the taxes collected within the Counties of DuPage, 

Kane, Lake, McHenry and Will shall be allocated 70% to the 

Commuter Rail Board and 30% to the Suburban Bus Board. 

(e) This subsection applies only until the Department 

begins adminisr:ering and enforcing an increased tax under 

Section 4. 03 (ml as authorized by this amendatory Act of the 

95th General Assembly. Moneys received by the Authority on 

account of transfers 1:0 1:he Regional Transportation Authority 

Occupation and Use Tax Replacement Fund from the State and 

Local Sales Tax Reform Fund shall be allocated among the 

Authority and the Service Boards as follows: 15 90 of such moneys 

shall be retained by the Authority and the remaining 85% shall 

be transferred to the Service Boards as soon as may be 

practicable after the Authority receives payment. Moneys which 

are distributable to the Service Boards pursuant to the 

preceding sentence shall be allocated among the Service Boards 

on the basis of each Service Board's distribution ratio. The 

term "distribution ratio" means, for purposes of this 

subsection (e) of this Section 4. 01, the ratio of the total 

amount distributed to a Service Board pursuant to subsection 

(d) of Section 4.01 for the immediately preceding calendar year 

to the total amount distributed to all of the Service Boards 

pursuant to subsection {d) of Section 4.01 for the immediately 

( 
Public Act 095-0708 

I HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

preceding calendar year. 

(f) To carry out its duties and responsibilities under this 

Act, .:urther 2nd accomplish the preparation o.: the anr.ual 

b•.1dgcc ar.d progra:f. a.: wc~l as -::.1:-'.e !?" ve Year Prog_;_:"am prov" dcd 

fer in Sce-::.ian 2.81 of thi_s and to make such interim 

managcft',Cnt deci_s · ens e.s may be necessary, the Board shall 

employ staff which shall: (1) propose for adoption bv the Board 

of the Authority rules for the Service Boards that establish 

(i) forms and schedules to be used and information required to 

be provided with respect to a five-year capital program, annual 

budgets, and two-year financial plans and reqular reporting of 

actual result.s against adopted budgets and financial pl ans, 

( (ii) financial practices to be followed in the budgeting and 

expenditure of public funds, (iii) assumptions and projections 

that must be followed in preparing and submitting its annual 

budget and two-year financial plan or a five-year capital 

0p~r~o~g""-r~a~m~;~---"12c.c) evaluate for the Board public transportation 

programs operated or proposed by the Service Boards and 

transportation agencies in terms of the goals and objectives 

set out in the Strategic Plan, costs and relative prioricies; 

Jll ~ keep the Board and the public informed of the extent to 

which the Service Boards and transportation agencies are 

meeting the goals and objectives adopted by the Authority in 

the Strategic Plan public transportation programs 

accomplishrrtents o"" such transporta~ion agencies; and ill 

assess the efficiency or adequacy of public transportation 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

services provided by a Service Board and make recommendations 

for change in that service (3) coord:.nate -::he develepw.ent and 

implcmcr.:...a-::.iof't of public trar.::;portatio:1 pregrarr,s to the end 

that the moneys mor.ics available to the Authority may be 

expended in the most economical manner possible with the least 

possible duplication. 

(g) All Under such ::sgulat::.cns ao -::be Boa::d may prescribe, 

all Service Boards, transportation agencies, comprehensive 

planning agencies, including the Chicago Metropolitan Agency 

for Planning, or transportation planning agencies in the 

metropolitan region shall furnish to the Authority Board such 

information pertaining to public transportation or relevant 

for plans therefor as it may from time to time require. The 

Executive Director, or his or her designee, upon payw,en-::. -::.e any 

..,uch agency o::- Sc::vicc Board o: the reasonable add"t.L:;nal cos-:. 

of i-::.s so p::ovidir.g s..:ch "nforffiat" en otecpt as ffi&'.{ et.hcn;isc be 

prcJ.:'..d::d b:i,· agrccrr.cnt •,;i-:.h t.hc Aut.hority, and :...he Bea·cd o::::: any 

duly author.::.zed CFr,Pleyec o:: the Eea::-d shall, for the purpose of 

securing any such information necessary or appropriate to carry 

out any of the powers and responsibilities of the Authority 

under this Act, have access to, and the right to examine, all 

books, documents, papers or records of a Service Board or any 

transportation 5i:tE-ft agency receiving funds from the Authority 

or Service Board, and such Service Board or transportation 

agency shall comply with anv request by the Executive Director, 

or his or her designee, within 30 days or an extended time 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

transp::;rta:._ion or rele;;an-= for pla:1s th2rc:=cr. 

(hi No Service Board shall undertake any capital 

improvement which is not identified in the Five-Year Capital 

Program. 

(Source: P.A. 94-370, eff. 7-29-05.) 

(70 ILCS 3615/4.02) (from Ch. 111 2/3, par. 704.02) 

Sec. 4.02. Federal, State and Other Funds. 

(a) The Authority shall have the power to apply for, 

receive and expend grants, loans or other funds from the State 

of Illinois or any department or agency thereof, from any unit 

( of local government, from the federal government or any 

department or agency thereof, for use in connection with any of 

the powers or purposes of the Authority as set forth in this 

Act. The Authority shall have power to make such studies as may 

be necessary and to enter into contracts or agreements with the 

State of Illinois or any department or agency thereof, with any 

unit of local government, or with the federal government or any 

department or agency thereof, concerning such grants, loans or 

other funds, or any conditions relating thereto, including 

obligations to repay such funds. The Authority may make such 

covenants concerning such grants, loans and funds as it deems 

proper and necessary in carrying out its responsibilities, 

purposes and powers as provided in this Act. 

(b) The Authority shall be the primary public body in the 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

metropolitan region with authority to apply for and receive any 

grants, loans or other funds relating to public transportation 

programs from the State of Illinois or any department or agency 

thereof, or from the federal government or any department or 

agency thereof. Any unit of local government, Service Board or 

transportation agency may apply for and receive any such 

federal or state capi~al grants, loans or other funds, 

provided, however that a Service Board may not apply for or 

receive any grant or loan which is not identified in the 

Five-Year Capital Program. Any Service Board, unit of local 

government or transportation agency shall notify the Authority 

prior to making any such application and shall file a copy 

thereof with the Authority. Nothing in this Section shall be 

construed to impose any limitation on the ability of the State 

of Illinois or any department or agency thereof, any unit of 

local government or Service Board or transportation agency to 

make any grants or to enter into any agreement or contract with 

the National Rail Passenger Corporation. Nor shall anything in 

this Section impose any limitation on the ability of any school 

district to apply for or receive any grant, loan or other funds 

for transportation of school children. 

(c) The Authority shall provide to the Service Board any 

monies received relating to public transportation services 

under the jurisdiction of the Service Boards as provided in 

Section 4. 03. 3 of this Act. fo:lmrs: 

(1) As soon as FFtC:Y be practi:::able after the Au~hority 

( 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

payment, under Scc::.i_on l. 0 3 (ff,) or Sec::.i_on 

4. 03 .1 (d) 1 of the proceeds of those tanes levied by the 

Au::.bority, the l'rntho::.::.ty shall trar.s::"c:: to each Service 

Board the ameun-:. to cihich it er.:.itlcd under See::.:-ori 

e.o:1d1 

(2) ':'he Authority by ordinc.n;:::c adopt:::d by 9 o..= .::'.ts tf',cn 

Directors shall cstab 1 ish .:: ::"ormula appo 1-t" cnir.g any 

:"ederal :'.:ur.ds for opcrc.ti_ng assis:...ancc purposes -:::.he 

Au-:::.hori:.y rc:::c" -. es to each Serv-i cc Board. ::n cstablish:_ng 

th:: formula, the Beu.rd shall consider, affiong other ::actors: 

ride:csf',.:;_p levels, tJo.c c::"..'.:"ieicncy w:_:....!'. uh:_ch the scr-,·ice "s 

provided, the degree cf trar,sit depender,cc o::" the area 

( served and the cos-:::. of se::--.-iee. Tha::. portion e:': aP.y fcdera2. 

funds ::"er operating aosiotar.ce recc:_·.-ed by ::.r.e T,uthor7 ty 

shall be paid to each Service 3sard as aeon as ffiay be 

pract.:.cab 1 e upon their rcccip-:::. provided the Authority has 

adopt:::d a balanced budget as required by S:::ctien 4.0~ and 

further provided '::.l=.at the se....-~·ice B::.ards arc in c;:;mpl" ance 

with the requireFFtents i fl See:....ior. ~ .11. 

(3) The }rntho!?i::.y by ord.::'.nance adopted by 9 of :.ts then 

Direc::.ors shall apportier. to '::he Service Boards funda 

provided by ::.he State of Illinois under Section 4.09 and 

shall .aake paymer.t of said funds to each Service Board as 

seen as may be practicable upon their receipt provided '::he 

Authority has 2.dep .... ed a ba 1 anced budget as required by 

Section 4.81 and further provided the Service Board is H, 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

co:npliancc ,. · th ~F.e rcqu.:.rcfficnts in Scetio'.'l ~. 11. 

( 0 Beginning January 1, 2009, be:=sre rr.ak.::.og any 

payTF,cnt3, trans::ers, or c;:psndit:.:rcs under this subsect.=.on 

to a Service Board, the l'l:.;-::.her" ty r:-cust fir..,~ comply •,;ith 

Scc-::.ion q_Q2a or 1.021c o-"' thi;:; Act, h·hiche·;er FRay be 

applicc.blc.. 

(Source: P.A. 94-839, eff. 6-6-06; 95-331, eff. 8-21-07.) 

(70 ILCS 3615/4.02a) 

Sec. 4.02a. Chicago Transit Authority contributions to 

pension funds. 

(a} The Authority shall continually review the Chicago 

Transit Authority's payment of the required contributions to 

its retirement system under Section 22-101 of the Illinois 

Pension Code. 

(bl Beginning January 1, 2009, if at any time the Authority 

determines that the Chicago Transit Authority's payment of any 

portion of the required contributions to its retirement system 

under Section 22-101 of the Illinois Pension Code is more than 

one month overdue, it shall as soon as possible pay the amount 

of those overdue contributions to the Board of Trustees ~rustec 

of the Retirement Plan retirement system on behalf of the 

Chicago Transit Authority out of moneys otherwise payable to 

the Chicago Transit Authority under subsection (c) of Section 

4.03.3 ~ of this Act. The Authority shall thereafter have no 

liability to the Chicago Transit Authority for amounts paid to 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

the Board of Trustees tr:::1Stcc of the Retirement Plan r:::t' runcnt 

sys-:.em under this Sec Lion. 

(c) Whenever the Authority acts or determines that it is 

required to act under subsection {bl, it shall so notify the 

Chicago Transit Authority, the Mayor of Chicago, the Governor, 

the Auditor General of Lhe State of Illinois and the General 

Assembly. 

(Source: P.A. 94-839, eff. 6-6-06.) 

(70 ILCS 3615/4.02b) 

Sec. 4.02b. Other contributions to pension funds. 

(a} The Authority shall continually review the payment of 

L.he required employer contributions to affecLed pension plans 

under Section 22-103 of the Illinois Pension Code. 

(b) Beginning January 1, 2009, if at any time the Authority 

det.ermines that the Commuter Rail Board's or Suburban Bus 

Board's payment of any portion of the required contributions to 

an affected pension plan under Section 22-103 of the Illinois 

Pension Code is more than one month overdue, it shall as soon 

as possible pay the amount of those overdue contributions to 

the trustee of the affected pension plan on behalf of that 

Service Board out of moneys otherwise payable to that Service 

Board under Section 4. 03. 3 subaect' on (c) of Section 1. 82 of 

this Act. The Authority shall thereafter have no liability to 

the Service Board for amounts paid to the trustee of the 

affected pension plan under this Section. 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

(cl Whenever the Authorii:.y acts or determines that it is 

required to act under subsection (b), it shall so notify the 

affected Service Board, i:.he Mayor of Chicago, the Governor, the 

Audi tor General of i:.he State of Illinois 

Assembly. 

and i:.he General 

(d) Beginning January 1, 2009, if the Authority fails to 

pay to an affected pension fund within 30 days after it is due 

any employer contribution that it is required to make as a 

contributing employer under Section 22-103 of the Illinois 

Pension Code, it. shall promptly so notify the Commission on 

Government Forecasting and Accouni:.ability, the Mayor of 

Chicago, the Governor, and i:.he General Assembly, and ii: shall 

promptly pay the overdue amount out of the first money 

available to the Authority for its administrative expenses, as 

that term is defined in Section 4.0l(c) 

(Source: P.A. 94-839, eff. 6-6-06.) 

(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03) 

Sec. 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 ..g. 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 

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of Revenue. The Department shall have the power to adminisr.er 

and enforce the taxes and to determine all rights for refunds 

for erroneous payments of the taxes. Noching in this amendatory 

Act of the 95th General Assemblv is intended to invalidate any 

taxes currently imposed by the Authority. The increased vote 

requirements to impose a ~ax shall only apply to actions taken 

after the effective date of this amendatory Act of the 95th 

General Assembly. 

(bl The Board may impose a public cransportation tax upon 

all persons engaged in the metropolitan region in the business 

of selling at retail motor fuel for operation of motor vehicles 

upon public highways. The tax shall be at a ra~e 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 

fuel" shall have the same meaning as in the Motor Fuel Tax Law. 

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, 

including without limitation, conformity 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, 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 fuel in the metropolitan region, at rates as limited by 
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t.his Section. 

LRB095 04786 DRH 24846 b 

(c) In connect.ion with the tax imposed under paragraph (bl 

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 penal ties thereunder, the maximum penal ties 

not to exceed the maximum criminal penalties provided in the 

Retailers' Occupation Tax Act. The Authority may collect and 

enforce the tax itself or by contruct with any unit of local 

government. The State Department of Revenue shall have no 

responsibility for t.he collection and enforcement unless the 

Department agrees with the Authority to undertake the 

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 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 

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include 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 engaged in 

the business of selling cangible personal property at retail in 

Lhe metropolitan region. In Cook County the tax rate shall be 

1. 25% ~ of the gross receipLs from sales 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 1% ~ 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% 

+-,,L4-%- 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 subject to this Section shall 
Public Act 095-0708 

HB0656 Re-Enrolled 1RB095 04786 DRH 24846 b 

have the same rights, remedies, privileges, immuniLies, powers 

and duties, and be subject to the same condiLions, 

restrictions, limitations, penalties, exclusions, exemptions 

and definitions of terms, and employ the same modes of 

procedure, as are prescribed in Sections 1, la, la-1, le, ld, 

le, lf, li, lj, 2 through 2-65 (in respect to all provisions 

therein other than the State rate of tax), 2c, 3 (except as to 

the disposition of taxes and penalties collected), 4, 5, Sa, 

Sb, Sc, Sd, Se, Sf, Sg, Sh, Si, Sj, Sk, 51, 6, 6a, 6b, 6c, 7, 8, 

,, 

0 10, 11, 12 and 13 of the Retailers 1 Occupation Tax Act and 

Section 3-7 of the Uniform PenalLy 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 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 AcL, under any 

bracket schedules 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 Regional Transportation Authority tax fund 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

established under paragraph (n) of this Section. 

If a Lax is imposed under this subsection (e), a tax shall 

also be imposed under subsections (f) and (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 Lhe place where the coal or other mineral mined in Illinois 

is extracLed 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. 

No tax shall be imposed or collected under this subsection 

on the sale of a 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 construed to authorize the 

Regional Transportation Authority to impose a tax upon the 

privilege of engaging in any business that under the 

Constitution of Lhe United States may not be made the subject 

of taxation by this SLate. 

(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 service, transfer tangible 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

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. In Cook County, the 

tax rate shall be: (1) 1.25°0 Hof the serviceman's cost price 

of food prepared for immediate consumption and transferred 

incident to a sale of service subject to the service occupation 

tax by an entity licensed under the Hospital Licensing Act or 

the Nursing Home Care Act that is located in the metropolitan 

region; (2) 1.25% ±-%- of the selling price of food for human 

consumption that is LO 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) 1% ~ of the selling price from other 

taxable sales of t.angible personal property transferred. In 

DuPage, Kane, Lake, McHenry and Will Counties the rate shall be 

0. 75% ±-1-4-%- of the selling price of all tangible personal 

property transferred. 

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 collected in the manner 

hereinafter provided; and to determine all rights to credit 

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memoranda arising on account of the erroneous payment of tax or 

penalty hereunder. In the administration of and compliance with 

this paragraph, 

this paragraph 

the Department 

shall have 

and persons who are subject to 

Lhe same rights, remedies, 

privileges, immunities, powers and dm:.ies, and be subject to 

the same conditions, restrictions, limitaL.ions, penalL.ies, 

exclusions, exemptions and definitions of terms, and employ the 

same modes of procedure, as are prescribed in Sections la-1, 2, 

2a, 3 through 3-50 (in respect to all provisions therein other 

1:.han the State rate of tax), 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 penal ties collected, and 

except that the returned merchandise credit for this tax may 

not be taken against any State tax), 10, 11, 12 (except the 

reference therein LO 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, 16, 17, 18, 

19 and 20 of the Service Occupation Tax Act and Section 3-7 of 

the Uniform 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 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

combination in a single amount with State tax that servicemen 

are authorized to collect under the Service Use Tax Act, under 

any bracket. schedules the Department may prescribe. 

Whenever the Department determines t.hat 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 t.he 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. 

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 

metropoli tc1n region, any i tern of tangible personal property 

that is purchased outside the metropolitan region at ret.ail 

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 1% 3/~~ of the selling price of the tangible personal 

property, as "selling price" is defined in the Use Tax Act. In 

DuPage, Kane, Lake, 

shall be O. 7 5% .:J:...,L4.%. 

McHenry and Will 

of the selling 

counties 

price of 

the tax rate 

the tangible 

personal property, as "selling price" is defined in the Use Tax 

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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 

AuthoriLy. 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 registraLion 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 the 

Sta.:,e 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 taxes, penalties and 

interest 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, 

paragraph 

the Department and persons who are subject to this 

shall have the same 

immunities, powers and duties, 

rights, 

and be 

remedies, 

subject 

privileges, 

to the same 

conditions, restrictions, limitations, penal ties, exclusions, 

exemptions and definitions of terms and employ the same modes 
Public Act 095-0708 

HB0656 Re-Enrolled LRBD95 04786 DRH 24846 b 

of procedure, as are prescribed in Sect.ions 2 (except. the 

definition of "retailer maintaining a place of business in this 

State"}, 3 through 3-80 (except provisions pertaining to the 

State rate of tax, and except provisions concerning collection 

or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15, 

19 (except the portions pertaining to claims by retailers and 

except the last paragraph concerning refunds), 20, 21 and 22 of 

the Use Tax AcL, and 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 S1:.a1:.e 

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 1-157 of the 

Illinois Vehicle Code 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 1:.he 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 

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the tax for the Authority in accordance with Sections 3-2002 

and 3-2003 of the Illinois Vehicle Code. 

The Department shall 

Treasurer, ex officio, 

inunediately pay over to 

as trustee, all taxes 

the State 

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 Lhe Authority shall be the amount 

collected hereunder during the second preceding calendar month 

by the Department, 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 provided for in this Section to 

be given to the Comptroller by the DeparLment, 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 auchorized 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 or under the Service Occupation Tax Act 

shall 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 
Public Act 095~0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

to any tax imposed under paragraph (c) of this Section. 

(k} The provisions of any tax imposed under paragraph (c} 

of this Section shall conform as closely as may be practicable 

to Lhe provisions of Lhe Use Tax Act, including without 

limitation conformity as to penalties with respect to the tax 

imposed and as to the powers of the StaLe Department of Revenue 

to promulgate and enforce rules and regulations relating to the 

administration and enforcement of the provisions of the tax 

imposed. The taxes shall be imposed only on use within the 

meLropolitan region and at rates as provided in the paragraph. 

(1) 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 

Lhose 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 moLor 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 the exempt sales 

or uses. 

(m) Any ordinance imposing or discontinuing any tax under 

this Section shall be adopted and a certified copy thereof 

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filed with the Depar-t.ment 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 1 next following such adoption and filing. 

Beginning January 1, 1992, an ordinance or resolution imposing 

or discom:.inuing 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 1, 1993, an ordinance or resolution imposingL 

increasing, decreasing, or discontinuing the tax hereunder 

shall be adopted and a certified copy thereof filed with the 

Department on or before the ~irst day of October, whereupon the 

Departrnen~ shall proceed to administer and enforce this Section 

as of the first day of the first month to occur not less than 60 

days -7anua.::::y neHt 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 shall remain in 

full force and effect and shall be administered by the 

Department of Revenue under the terms and conditions and rates 

of tax established by such ordinance or resolution until the 

Department begins administering and enforcing an increased tax 

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 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

if imposed by ordinance of the Authoritv. 

(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 

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 -::.he affi0t;_n-:::_ -::.o be paid 

to the l\u-::.hcrit.y, wbicf', Sfwll be -::.he -::.hen balance i?. th;:. L:nd, 

less any am::ur.t determined by the Dcpartfficnt to be .:-.cccssary 

for the pq,."snt cf refunds. The S~a:__c Bcpartl'f,CE~ s"" Reven:;;:. 

sfiall a: so cert" fy to the Authority ill the amount of taxes 

collected in each County other than Cook County in the 

metropolitan region (ii) less the amount necessary for the 

payment cf re:::.-:nds to -::.anpa:i,•ers in t.he '.:aunty. w.:. th :=egard to 

the County ;:;:;: Coo;~, "':he ecrti::" cat.:.on shall spcei::y the amount 

of taxes collected within the City of Chicago.L. less the amour.-:. 

necessary fsr the payff,Cnt of refunds to -::.a::paycrs in the Cit:i,· 

of Ch.:.~ago 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) in that 

port.i_on of Cool: Cm:..nty out.si_de o::" Chicago. Within 10 days after 

receipt by the Comptroller of the certification of the amounts 

aFrtount t.o be paid to the Authority, the Comptroller shall cause 

an order to be drawn for the payment of two-thirds of the 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

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) of this 

subsection to the Authority ~or the affts;.;.nt · n accordance '"1 ith 

"'he ct_:_rcct · of'. in the cc::tif_:_ca-::.:;.ofl. 

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 

allocar.ion shall be made in an amount equal to the average 

monthly distribution during the preceding calendar year 

(excluding 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 of Revenue 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 2.01 of this Act shall not affect the validity of any 

tax imposed by the Authority otherwise in conformity with law. 
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HB0656 Re-Enrolled 1RB095 04786 DRH 24846 b 

(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 (el, (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 au-;::horized 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 (bl, (c) and 

(d) of the Section unless any -;::ax authorized by paragraphs (e), ( 

(f) or (g) of this Section becomes ineffective by means other 

than an ordinance of the Board. 

(qi 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. 

(Source: P.A. 92-221, 8-2-01; eff. 7-11-02; 

93-1068, eff. 1-15-05.) 

(70 ILCS 3615/4.03.3 new) 

Sec. 4. 03. 3. Distribution of Revenues. This Section 
( 

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HB0656 Re-Enrolled LRB095 04786 CRH 24846 b 

applies only after the Department beg-ins administering and 

enforcing an increased tax under Section 4.03(m) as authorized 

by this amendatory Act of the 95th General Assembly. After 

providing for payment of its obligations with respect to bonds 

and notes issued under the provisions of Section 4. 04 and 

obligat.ions related to those bonds and notes, the Authority 

shall disburse r.he remaining proceeds from taxes it has 

received from the Department of Revenue under this Article IV 

and r.he remaining proceeds it has received from the St2te under 

Section 4.09(a) as follows: 

(a) With respect to taxes imposed by the Authority under 

Section 4.03, after withholding 15% of 80% of the receipts from 

t.hose taxes collected in Cook County at a rate of 1.25%, 15% of 

75% of the receipts from those taxes collected in Cook County 

at the rate of 1%, 1590 of one-half of the receipts from those 

taxes collect.ed in DuPage, Kane, Lake, McHenry, and Will 

Counties, and 15% of money received by the Authority from the 

Regional Transportation Authoritv Occupation and Use Tax 

Replacement Fund or from the Regional Transportation Authority 

tax fund created in Section 4. 03 (n), the Board shall al 1 ocate 

the proceeds and money remaining to the Service Boards as 

follows: 

(1) an amount equal to (i) 85% of 80% of the receipts 

from those taxes collected within the City of Chicago at a 

rate of 1 .25%, {ii) 85% of 75% of the receipts from those 

taxes collected in the City of Chicago at the rate of 1%, 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b ' I 

and (iii) 85% of the money received by the Authority on 

account of transfers to the Regional Transportation 

Authority Occupation and Use Tax Replacement Fund or to the 

Regional Transportation Authority tax fund created in 

Section 4.03(n} from the County and Mass Transit District 

Fund attributable to retail sales within the Clty of 

Chicago shall be allocated to the Chicago Transit 

Authority; 

(2) an amount equal to (i) 85% of 80% of the receipts 

from those taxes collected within Cook County outside of 

the City of Chicago at a rate of 1.25%, (ii) 85% of 75% of 

the receipts from those taxes collected within Cook County 

outside the City of Chicago at a rate of 1%, and (iii) 85% ( 

of the money received by the Authority on account of 

transfers co the Regional Transportation Authority 

Occupation and Use Tax Replacement Fund or to the Regional 

Transportation Authority tax fund created in Section 

4.03(n} from the County and Mass Transit District Fund 

attributable to retail sales within Cook County outside of 

the City of Chicago shall be allocated 30% to the Chicago 

Transit Authority, 55% to the Commuter Rail Board, and 15% 

to the Suburban Bus Board; and 

(3) an amount equal to 85% of one-half of the receipts 

from the taxes collected within the Counties of DuPage I 

Kane, Lake, McHenry, and Will shall be allocated 70% to the 

Corrunuter Rail Board and 30% to the Suburban Bus Board. 
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(bl Moneys received by the Authority on account of 

transfers to the Regional Transportation Authority Occupation 

and Use Tax Replacement Fund from the State and Local Sales Tax 

Reform Fund shall be allocated among the Authority and the 

Service Boards as follows: 15% of such moneys shall be retained 

by the Aur.hority and the remaining 85% shall be transferred to 

the Service Boards as soon as may be practicable after the 

Authority receives payment. Moneys which are distributable to 

the Service Boards pursuant to the preceding sentence shall be 

allocated among the Service Boards on the basis of each Service 

Board's distribution ratio. The term "distribution ratio" 

means, for purposes of this subsection (b), the ratio of the 

total amount distributed to a Service Board pursuant to 

subsection (al of Section 4.03.3 for the immediately preceding 

calendar year to the total amount distributed to all of the 

Service Boards pursuant to subsection (a) of Section 4.03.3 for 

the immediately preceding calendar year. 

(cl (i) 20% of the receipts from those taxes collected in 

Cook County under Section 4.03 at the rate of 1.25%, (ii) 25% 

of the receipts from those taxes collected in Cook County under 

Section 4. 03 at the rate of IS'o, (iii) 50% of the receipts from 

those taxes collected in DuPage, Kane, Lake, McHenry, and Will 

Counties under Section 4.03, and (iv) amounts received from the 

State under Section 4.09 (a) (2) and items (i) (ii) and (iii) 

of Section 4.09 (a) (3) shall be allocated as follows: in 2008, 

$100 1 ODO, 000 shall be deposited in the ADA Para transit Fund 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

described in Section 2.0ld, $20,000,000 shall be deposited in 

the Suburban Community Mobility Fund described in Section 

2.0le, and $10,000,000 shall be deposited in the Innovation, 

Coordination and Enhancement Fund described in Section 2.0lc, 

and the balance shall be allocated 48% to the Chicago Transit 

Authority, 39~o to the Commuter Rail Board, and 1 Yo to the 

Suburban Bus Board; and in 2009 and each year thereafter, the 

amounts deposited in the ADA ParaLransit Fund, the Suburban 

Community Mobility Fund and the Innovation, Coordination and 

Enhancement Fund respectively shall equal the amount deposited 

in the previous year increased or decreased by the percentage 

grm·n::h or decline in revenues received by the Authority from 

taxes imposed under Section 4.03 in the previous year, and the 

balance shall be allocated 48% to the Chicago Transit 

Authority, 39% to the Commuter Rail Board and 13 9

0 to the 

Suburban Bus Board. 

(d) J\...rnounts received from the State under Section 4. 09 

(a) (3) (iv) shall be distributed 100% to the Chicago Transit 

Authority. 

(e) With respect to those taxes collected in DuPage, Kane, 

Lake, McHenry, and Will Counties and paid directly to the 

counties under Section 4.03, the County Board of each county 

shall use those amounts to fund operating and capital costs of 

public safety and public transportation services or facilities 

or to fund operating, capital, right-of-way, construction, and 

maintenance costs of other transportation purposes, including 

( 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

road, bridge, public safety, and transit purposes intended to 

improve mobility or reduce congestion in the county. The 

receipt of funding by such counties pursuant to this paragraph 

shall not be used as the basis for reducing any funds thaL such 

counties would ot.herwise have received from the State of 

Illinois, any agency or instrumentality Lhereof, the 

Authority, or the Service Boards. 

(f) The Authority by ordinance adopted by 12 of its then 

Directors shall apportion to the Service Boards funds provided 

by the State of Illinois under Section 4. 09 (al (1) as it shall 

determine and shall make payment of the amounts to each Service 

Board as soon as may be practicable upon their receipt provided 

the Authority has adopted a balanced budget as required bv 

Section 4. 01 and further provided the Service Board is in 

compliance with the requirements in Section 4.11. 

(g) Beginning January 1, 2009, before making any payments, 

transfers, or expenditures under this Section to a Service 

Board, the Authority must first comply with Section 4. 02a or 

4.02b of this Act, whichever may be applicable. 

(70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04) 

Sec. 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 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

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 issued 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}; 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 

ugency 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 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

time, in anticipation of tax 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 referred to in Lhis 

Section as "Working Cash Notes". No Ililorking Cash Notes shall be 

issued for a term of longer than 24 ±-& 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-insured 

amounts under insurance policies, public utility obligations 

for telephone, light, heat and similar items, travel expenses, 

office supplies, postage, dues, subscriptions, public hearings 

and information expenses, fuel purchases, and payments of 

grants 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 of the Authority may determine to issue, the 

Suburban Bus Board, the Cormnuter Rail Board or the Board of the 

Chicago Transit Authority may demand and direct that the 

Authority issue its Working Cash Notes in such amounts and 

having such maturities as the Service Board may determine. 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Notwithstanding any other provision of this Act, any 

amounts necessary to pay principal of and interest on any 

Working Cash Notes issued at the demand and direction of a 

Service Board or any Working Cash NOL.es the proceeds of which 

were used for the direct benefit of a Service Board or any 

Ol:her Bonds or Notes of the Authorh:.y the proceeds of which 

were used for the direct benefit of a Service Board shall 

constitute a reduction of L.he amount of any other funds 

provided by the Authority to Lhat 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 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 

deli very 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 

( 

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Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

or notes of the Authority, including any accrued interest or 

redemption premium thereon, without advertising or submitting 

such notes or bonds for public bidding. 

(b) The ordinance providing for 1:.he 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 account 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 

securi1:.y of such bonds or notes. The rate or raLes of interest 

on its bonds or notes may be fixed or variable and the 

Authority shall determine or provide for the determination of 

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 the Bond Authorization Act. Interest 

may be payable at such times as are provided for 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 to 

exceed forty years from the date of issue, and may be 

redeemable prior to maturity with or without premium, at the 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

option of the Authority, upon 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 Lhereof shall mature at any time or t.imes exceeding 5 

years from the date of the first issuance of such note. The 

Authority may provide for the registration of bonds or n01:.es 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 not.es which 

are fully registered, as to both principal and interest, with 

bonds or notes which are registerable as to principal only. All 

bonds or no~es 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 tables of bond values, shall not 

exceed that permitted in the Bond Authorization Act. The 

Authority shall notify the Governor 1 s Office of Management and 

Budget and the State Comptroller at least 30 days before any 

bond sale and shall file with the Governor's Office of 

Management and Budget and the State Comptroller a certified 

copy of any ordinance authorizing the issuance of bonds at or 

before the issuance of the bonds. After December 31, 1994, any 

( 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

such bonds or notes shall be sold to the highest and best 

bidder on sealed bids as the Authority shall deem. As such 

bonds or noLes 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 funds for 

self-insurance or a joint self-insurance pool or entity may be 

sold either upon competitive bidding or by negotiated sale 

(wiLhout 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 9 =!-

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 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

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 and 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 established 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 againsL and prior LO 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 

I 

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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 ~he 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 tax 

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, 

such ordinance, of amounts to meet 

all as provided in 

the debt service 

requirements on such bonds or notes, 

interest, and any sinking fund or 

including principal and 

reserve fund account 

requirements as may be provided by such ordinance, and all 

expenses incident to or in connection with 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 no~es 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 ordinance 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 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

such bonds or notes. 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 holders of 

such bonds or notes. The ordinance may provide for the trustee 

to 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 assignmern:. and 

direct payment to the trustee of any or all amounts produced 

from the sources provided in Section 4.03 and Section 4.09 of 

this Act and provided in Section 6z-17 of "An .J:\.ct in relation 

to SL.ate finance", approved June 10, 1919, as amended. Upon 

receipt of notice of any such assignment, the Department of 

Revenue and the Comptroller of the State of Illinois shall 

thereafter, notwithstanding the provisions of Section 4.03 and 

Section 4.09 of this Act and Section 6z-17 of "An Act in 

relation to State finance", approved June 10, 1919, as amended, 

provide for such assigned amounts to be paid directly to 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 to 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 to 

this Section shall constitute a contract between the Authority 

( 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

and the holders from time to time of such bonds or notes. In 

issuing 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 ~his Section. It may 

also so covenant that it shall impose and continue to impose 

~axes, 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 be filed at or prior to 

the issuance of such obligations with the Comptroller of the 

State of Illinois and the Illinois Department of Revenue. 

(f) 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 Authority with 

such holders or in any way impair the rights and remedies of 

such holders until such bonds and notes, together with interest 

thereon, with interest on 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 State pledges to and agrees with 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 CRH 24846 b 

the holders of the bonds and notes of the Authority issued 

pursuant to this Section that the State will not limit or alter 

t.he basis on which St.ate funds are to be paid to the Authority 

as provided in this Act, or the use of such funds, so as to 

impair the terms of any such contract. The Authority is 

authorized to include these pledges and agreements of the State 

in any contract with the holders of bonds or notes issued 

pursuant to this Section. 

(g) (1) Except. as provided in subdivisions (g) (2) and 

(g) (3) of Section 4. 04 of this Act, the Authority shall not 

at any time issue, sell or deliver any bonds or notes 

(other than Working Cash Notes) pursuant to this Section 

4.04 which will cause it to have issued and outstanding at 

any time in excess of $800,000,000 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 th-is Section that will cause it to have issued 

and outstandina at any time in excess of $100, 000, 000. 

Notwithstanding "Che foregoing, before July 1 1 2009, the 

Authority may issue, sellr and deliver an additional 

$300,000,000 in Working Cash Notes, provided that any such 

additional notes shall mature on or before June 30 2011. 

The Autho•·" ty shall not at any tiffte issue, sel 1 er delh·er 

any Werkir.g Cash ~Jct.cs pursuant. to th:.s Sec:...ion v;hich ·,.ill 

cause i_t to J:wvc issued afl:d outotand" ng at any time in 

e2wess of $100, COO, 900 of Workir.g Cash Hstcs. Bonds or 

( 

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Public Act 095-0708 

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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 outstanding for the purposes of the 

first two sentences of this subsection. 

(2) In addition to the authority provided by paragraphs 

(1) and (3), the Authority is authorized to issue~ sell and 

deliver bonds or notes for Strategic Capital Improvement 

Projects approved pursuant to Section 4.13 as follows: 

$100, 000, 000 is authorized to be issued on or after 

January 1, 1990; 

an additional $100,000,000 is authorized to be issued 

on or after January 1, 1991; 

an additional $100,000,000 is authorized to be issued 

on or after January 1, 1992; 

an additional $100,000,000 is authorized to be issued 

on or after January 1, 1993; 

an additional $100,000,000 is authorized to be issued 

on or after January 1, 1994; and 

the aggregate total authorization of bonds and notes 

for Strategic Capital Improvement Projects as of January 1, 

1994, shall be $500,000,000. 
Public ACL 095-0708 

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The Authority is also authorized to issue, sell, and 

deliver bonds or notes in such amounts as are necessary to 

provide for the refunding or advance refunding of bonds or 

notes issued for Strategic Capital Improvement Projects 

under this subdivision (g) (2), provided that no such 

refunding bond or note shall mature later than the final 

maturity date of the series of bonds or notes being 

refunded, and provided further that the debL service 

requirements for such refunding bonds or notes in the 

current or any future fiscal year shall not exceed the debt 

service requirements for that year on Lhe refunded bonds or 

notes. 

(3) In addition to the authority provided by paragraphs 

(1) and (2), the Authority is authorized to issue, sell, 

and deliver bonds or notes for Strategic Capital 

Improvement Projects approved pursuant to Section 4.13 as 

follows: 

$260, 000, 000 is authorized to be issued on or after 

January 1, 2000; 

an additional $260,000,000 is authorized co be issued 

on or after January 1, 2001; 

an additional $260,000,000 is authorized to be issued 

on or after January 1, 2002; 

an additional $260,000,000 is authorized to be issued 

on or after January 1, 2003; 

an additional $260,000,000 is authorized to be issued 

' ' 

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Public Act 095-0708 

HB0656 Re-Enrolled 

on or after January 1, 2004; and 

LRB095 04786 DRH 24846 b 

the aggregaLe total authorization of bonds and notes 

for Strategic Capital ImprovemenL Projects pursuant to 

this paragraph 

$1, 300, 000, 000. 

I 3) as of January 1, 2004 shall be 

The Aur.hority is also authorized to issue, sell, and 

deliver bonds or notes in such amounts as are necessary to 

provide for the refunding or advance refunding of bonds or 

notes issued for Strategic Capital Improvement projects 

under this subdivision (g) (3), provided that no such 

refunding bond or note shall mature later than the final 

maturity date of the series of bonds or notes being 

refunded, and provided further that the debt service 

requirements for such refunding bonds or notes in the 

current or any future fiscal year shall not exceed the debt 

service requirements for that year on the refunded bonds or 

notes. 

(h) The Authority, subject to the terms of any agreements 

wi-ch 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 Working Cash Notes. 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

(Source: P.A. 94-793, eff. 5-19-06.J 

(70 ILCS 3615/4.09) (from Ch. 111 2/3, par. 704.09) 

Sec. 4. 0 9. Public Transportation Fund and the Regional 

Transportation Authority Occupation and Use Tax Replacement 

Fund. 

(a) (1) (a) As .:.,Oon as poss'ble after :he f' rst day o: cc.ch 

rr.or.::.t, b.::g.::.r.nir.g Hcvcmber ::., 1983, the Comptroller shal.l :;..;::-dcr 

:rar.sfcrrcd ar.d :;,.c Treasurer shall transfer -""roffi "the Ge:1eral 

RCJCP.UC :'und :::. speci:::.:'.. fund .::.n the s:a:e ':'rcas:.:ry, -ts be 

l::10.,r. as :he "Pc.b 1 ic Trar.spcrtat.::.cn FuPtd" $9, 375, GOG for each 

Ff.or.th ··c. .. ainii.g in State fiscal year 198q. As soon as possible 

after Lhe first day of each month, beginning July 1, 1984, upon ( 

certification of the Department of Revenue, the Comptroller 

shall order Lransferred and the Treasurer shall transfer from 

the General Revenue Fund to a special fund in the State 

Treasurv to be known as the Public Transportation Fund an 

amount equal to 25t of the net revenue, before the deduction of 

the serviceman and retailer discounts pursuant to Section 9 of 

the Service Occupation Tax Act and Section 3 of the Retailers' 

Occupation Tax Act, realized from any tax imposed by the 

Authority pursuant to Sections 4.03 and 4.03.1 and 25% of the 

amoun1:.s deposited into the Regional Transportation Authority 

tax fund created by Section 4.03 of this Act, from the County 

and Mass Transit District Fund as provided in Section 62-20 of 

the State Finance Act and 25% of the amounts deposited into the 
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Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Regional Transportation Authority Occupation and Use Tax 

Replacement Fund from the State and Local Sales Tax Reform Fund 

as provided in Section 6z-17 of the State Finance Act. On the 

first day of the month following the date that the Department 

receives revenues from increased taxes under Section 4.03(m) as 

authorized bv this amendatory Act of the 95th General Assembly, 

in lieu of the transfers authorized in the preceding sentence, 

upon certificaLion 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 

before the deduction of the serviceman and retailer discounts 

pursuant to Section 9 of the Service Occupation Tax Act and 

Section 3 of the Retailers' Occupation Tax Act, realized from 

(i) 80% of the proceeds of any tax imposed by the Authority at 

a rate of 1. 25 96 in Cook County, (ii) 7596 of the proceeds of any 

tax imposed by the Authority at the rate of 1% in Cook County, 

and (iii) one-third of the proceeds of any tax imposed by the 

Authority at the rate of 0. 75% in the Counties of DuPage, Kane, 

Lake, McHenry, and Will, all pursuant to Section 4.03, and 25% 

of the net revenue realized from any tax imposed by the 

Authority pursuant to Section 4.03.1, and 25% of the amounts 

deposited into the Regional Transportation Authority tax fund 

created by Section 4.03 of this Act from the County and Mass 

Transit District Fund as provided in Section 6z-20 of the State 

Finance Act, and 25% of the amounts deposited into the Regional 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Transportation Authority Occupation and Use Tax Replacement 

Fund from the State and Local Sales Tax Reform Fund as provided 

in Section 6z-1 7 of the State Finance Act. As used in this 

0

S~e~c~t=i0o~n~~n~e=t ~ revenue realized for a month shall be the 

revenue collec-r.ed by the Sc.ate pursuant to Sections 4. 03 and 

4.03.l during the previous month from within the metropolitan 

region, less the amount paid out during that same month as 

refunds to -r.axpayers for overpayment of liability in the 

metropolitan region under Sections 4.03 and 4.03.1. 

(2) On the first day of the month following the effective 

date of this amendatory Act of the 95th General Assewbly and 

each month thereafter, upon certification by the Departmen-r. 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 5% of the net 

revenue before the deduction of the serviceman and retailer 

discounts pursuan-r. to Section 9 of the Service Occupation Tax 

Act and Section 3 of the Retailers' Occupation Tax Act, 

realized from any tax imposed by the Authority pursuant. to 

Sections 4. 03 and 4. 03 .1 and certified by the Department of 

Revenue under Section 4. 03 (n) of this Act to be paid to the 

Authority and 5% of the revenue realized by the Chicago Transit 

Authority as financial assistance from the City of Chicago from 

the proceeds of any tax imposed by the City of Chicago under 

Section 8-3-19 of the Illinois Municipal Code. 

(3) As soon as possible after the first day of January, 
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Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

2009 and each mom:.h thereaft.er, upon certification o-f the 

Department of Revenue with respect to the taxes collected under 

Section 4.03 1 the Compr.roller shall order transferred and the 

Treasurer shall t.ransfer from the General Revenue Fund to the 

Public Transportation Fund an amount equal to 25% of the net 

revenue, before the deduction of the serviceman and retailer 

discounts pursuant to Section 9 of the Service Occupat.ion Tax 

Act and Section 3 of the Retailers' Occupation Tax Act 

realized from {i) 20% of the proceeds of any tax imposed by the 

Authority at a rate of 1.25% in Cook Countv, (ii) 25~o of i:.he 

proceeds of any tax imposed by the Authority at the rate of 1% 

in Cook County, and (iii) one-third of the proceeds of anv tax 

imposed by the Authority at the rate of 0.75% in the Counties 

of DuPage, Kane, Lake, McHenry, and Will, all pursuant to 

Section 4.03, and the Comptroller shall order transferred and 

the Treasurer shall transfer from the General Revenue Fund to 

the Public Transportation Fund (iv) an amount equal to 25% of 

the revenue realized by the Chicago Transit Authority as 

financial assistance from the City of Chicago from the proceeds 

of any tax imposed by the City of Chicago under Section 8-3-19 

of the Illinois Municipal Code. 

(bl (1) All moneys deposited in the Public Transportation 

Fund and the Regional Transportation Authority Occupation and 

Use Tax Replacement Fund, whether deposited pursuant to this 

Section or otherwise, are allocated to the Authority. The 

Pursuant to appropriation, the Comptroller, as soon as possible 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

after each monthly transfer provided in this Section and after 

each deposit into the Public Transportation Fund, shall order 

the Treasurer to pay to the Authority out of the Public 

Transportation Fund the amount so transferred or deposited. Any 

Additional St.ate Assistance and Additional Financial 

Assistance paid to the Authoritv under this Section shall be 

expended by the Authority for its purposes as provided in this 

Act. The balance of the amounts paid to the Authority from the 

Public Transportation Fund shall be expended by the Authority 

as provided in Section 4. 03. 3. The St:ch affiounts pc.id :=.e ::he 

Autl':eri-::.y ff'.ay be c~pended b:i,· it for its purposes as provided in 

-::.h" s A:::t. Subj cc'.:. -::o app:::cp-c::.ation ::.c the Gepar-::men-::. of 

Re·c·er.ue, '.:.he Comptroller, as soon as possible after each 

deposit into the Regional Transportation Authority Occupation 

and Use Tax Replacement Fund provided in this Section and 

Section 6z-17 of t.he State Finance Act, shall order the 

Treasurer to pay to the Authority out of the Regional 

Transportation Authority Occupation and Use Tax Replacement 

Fund the amount so deposited. Such amounts paid to the 

Authority may be expended by it for its purposes as provided in 

this Act. The provisions directing the distributions from the 

Public Transportation Fund and the Regional Transportation 

Authority Occupation and Use Tax Replacement Fund provided for 

in this Section shall constitute an irrevocable and continuing 

appropriation of all amounts as provided herein. The State 

Treasurer and State Comptroller are hereby authorized and 

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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

directed Lo make distributions as provided in this Section. (2) 

Provided, however, no moneys deposited under subs.ection (a) of 

this Section shall be paid from the Public Transportation Fund 

to the Authority or iLs assignee for any fiscal year bcg'nning 

after the c.:=""'ccti-;c d::.::.e of this ,:.mcr.datory l'ret o: ~983 um:.il 

the Authority has certified to the Governor, the CompLroller, 

and the Mayor of the City of Chicago that it has adopted for 

that fiscal year an Annual Budget and Two-Year Financial Plan ubudge:... and :'inancial plan meeting the requirements in Section 

4. 01 lb). 

(c) In recognition of the efforts of the Authority to 

enhance the mass transportation facilities under its control, 

the State shall provide financial assistance ("Additional 

State Assistance") in excess of the amounts transferred to the 

Authority from the General Revenue Fund under subsection (a) of 

this Section. Additional State Assistance shall be calculated 

as provided in subsection (d), but shall in no event exceed the 

following specified amounts with respect to the following State 

fiscal years: 

1990 $5,000,000; 

1991 $5,000,000; 

1992 $10,000,000; 

1993 $10,000,000; 

1994 $20,000,000; 

1995 $30,000,000; 

1996 $40,000,000; 
Public Act 095-0708 

HB0656 Re-Enrolled 

1997 

1998 

each year thereafter 

LRB095 04786 DRH 24846 b 

$50, 000, 000; 

$55,000,000; and 

$55,000,000. 

(c-5) The State shall provide financial assis-cance 

("Additional Financial Assistance") in addition co the 

Additional State Assistance provided by subsection (c) and -che 

amounts transferred to the Authority from the General Revenue 

Fund under subsection (a) of this Section. Additional Financial 

Assistance provided by this subsection shall be calculated as 

provided in subsection (d), but shall in no event exceed the 

following specified amounts with respect to the following State 

fiscal years: 

2000 $0; 

2001 $16,000,000; 

2002 $35,000,000; 

2003 $54,000,000; 

2004 $73,000,000; 

2005 $93,000,000; and 

each year thereafter $100, 000, 000. 

(d) Beginning with State fiscal year 1990 and continuing 

for each Stace fiscal year thereafter, the Authority shall 

annually certify to the State Comptroller and Scace Treasurer, 

separately with respect to each of subdivisions {g) (2) and 

(g) (3) of Section 4.04 of this Act, the following amounts: 

(1) The amount necessary and required, during the State 

fiscal year with respect to which the certification is 

( 
( 

( 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

made, to pay its obligations for debt service on all 

outstanding bonds or notes issued by the Authority under 

subdivisions (g) (2) and (g) (3) of Section 4.04 of this Act. 

(2) An estimate of the amount necessary and required to 

pay its obligations for debt service for any bonds or notes 

which the Authority anticipates it will issue under 

subdivisions (g) (2) and (g) (3) of Section 4.04 during that 

State fiscal year. 

(3) Its debt service savings during the preceding State 

fiscal year from refunding or advance refunding of bonds or 

notes issued under subdivisions (g) (2) and (g) (3) of 

Section 4.04. 

{ 4) The amount of interest, if any, earned by the 

Authority during the previous State fiscal year on the 

proceeds of bonds or notes issued pursuant to subdivisions 

(g) (2) and (g) (3) of Section 4.04, other than refunding or 

advance refunding bonds or notes. 

The certification shall include a specific schedule of debt 

service payments, including the date and amount of each payment 

for all outsLanding bonds or notes and an estimated schedule of 

anticipated debt service for all bonds and notes it intends to 

issue, if any, during that State fiscal year, including the 

estimated date and estimated amount of each payment. 

Immediately upon the issuance of bonds for which an 

estimated schedule of debt service payments was prepared, the 

Authority shall file an amended certification with respect to 
Public Act. 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

item (2) above, to specify the actual schedule of debt service 

payments, including the date and amount of each payment, for 

the remainder of the State fiscal year. 

On the first day of each month of the State fiscal year in 

which there are bonds outscanding with respect to which 1::he 

certification is made, the Stat.e Comptroller shall order 

transferred and the State Treasurer shall t.ransfer from 1::he 

General Revenue Fund 

Additional State 

to the Public 

Assistance and 

Transportation 

Additional 

Fund the 

Financial 

Assistance in an amount equal to the aggregate of (ii 

one-twelfth of the sum of the amounts certified under items (1) 

and (3) above less the amoun~ certified under item (4) above, 

plus (ii) the amount required to pay debt service on bonds and 

notes issued during the fiscal year, if any, divided by the 

number of months remaining in the fiscal year after the date of 

issuance, or some smaller portion as may be necessary under 

subsection (c) or (c-5) of this Section for the relevant State 

fiscal year, plus (iii) any cumulative deficiencies in 

transfers for prior months, until an amount equal to the sum of 

the amounts certified under items (1) and (3) above, plus t.he 

actual debt service certified under item (2) above, less the 

amount certified under item (4) above, has been transferred; 

except that these transfers are subject to the following 

limits: 

(A) In no event shall the total transfers in any State 

fiscal year relating to outstanding bonds and notes issued 

{ 
I 

( 

I 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

by the Aut.horiLy under subdivision {g) (2) of Section 4.04 

exceed the lesser oft.he annual maximum amount specified in 

subsection (c) or the sum of the amounts certified under 

items (1) and (3) above, plus the actual debt service 

certified under item (2) above, less the amount certified 

under item (4) above, with respect to those bonds and 

notes. 

(B) In no event shall t.he total transfers in any State 

fiscal year relat.ing to outstanding bonds and notes issued 

by the Authority under subdivision (g) (3) of Section 4.04 

exceed the lesser of the annual maximum amount specified in 

subsection (c-5) or the sum of the amounts certified under 

items (1) and (3) above, plus the actual debt service 

certified under item (2) above, less the amount certified 

under item (4) above, with respect to those bonds and 

notes. 

The term "outs1:.anding" does not include bonds or notes for 

which refunding or advance refunding bonds or notes have been 

issued. 

(el Neither Additional State Assistance nor Additional 

Financial Assistance may be pledged, either directly or 

indirectly as general revenues of the Authority, as security 

for any bonds issued by the Auchority. The Authority may not 

assign its right to receive Additional Sta-c.e Assistance or 

Additional 

Additional 

Financial Assistance, 

State Assistance or 

or direct payment of 

Additional Financial 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Assist.ance, to a trustee or any other entity for the payment of 

debt. service on its bonds. 

(f) The certification required under subsection (d) wit.h 

respect to outstanding bonds and notes oft.he Authority shall 

be filed as early as practicable before the beginning of the 

State fiscal year to which it relates. The cercification shall 

be revised as may be necessary to accurately state the debt 

service requirements of the Authority. 

{g) Within 6 months of the end of "':.he 3 fftOff'.:°:: per_i_od ending 

Ecccmber 31, 1983, and each fiscal year "':.he.:'.'c:::..ftcr, the 

Authority shall determine: 

(i) whether the aggregate of all system generated 

revenues for public transportation in the metropolitan 

region which is provided by, or under grant or purchase of 

service contracts with, the Service Boards equals 50% of 

the aggregate of all costs of providing such public 

transportation. "System generated revenues" include 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 except for contributions received bv the 

Chicago Transit Authority from a real estate transfer tax 

imposed under subsection (i) of Section 8-3-19 of the 

Illinois Municipal Code, and from the State pursuant to 

subsection (i) of Section 2705-305 of the Department of 

Transportation Law (20 ILCS 2705/2705-305), and all other 

( 
( 

( 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

revenues properly included consistent with generally 

accepted accounting principles but may not include: the 

proceeds from any borrowing, and, beginning with the 2007 

fiscal year, all revenues and receipts, including but not 

limited to fares and grants received from the federal, 

State or any unit of local government or other entity, 

derived from providing ADA paratransit service pursuant to 

Section 2.30 of the Regional Transportation Authority Act. 

"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 and interest 

on bonds, notes or other evidences of obligations for 

borrowed money of the Authority; payments with respect to 

public transportation facilities made pursuant to 

subsection (b) of Section 2. 20; any payments with respect 

to rate protection contracts, credit enhancements or 

liquidity agreements made under Section 4 .14; any other 

case as to which it is reasonably expected that a cash 

expenditure will not be made; costs up to $5, 000, GOO 

aI'l:nua::.ly for passenger security including grants, 

contracts, personnel, equipment and administrative 

expenses, except in the case of the Chicago Transit 

Authority, in which case the term does not include costs 

spent annually by that entity for protection against crime 

as required by Section 27a of the Metropolitan Transit 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

Authority Act; the cos:cs of Debt Service paid by the 

Chicago Transit Au:chority, as defined in Section 12c of the 

Metropolitan Transit Authoritv Act, or bonds or notes 

issued pursuant to that Section; the Payment by the 

Commuter Rail Di vision of debt service on bonds issued 

pursuant to Section 3B.09; expenses incurred by the 

Suburban Bus Division for the cost of new public 

transportation services funded from grants pursuant to 

Section 2. Ole of this amendatory Act of the 95th General 

Assembly for a period of 2 years from the date of 

initiation of each such service; costs as exempted by the 

Board for projects pursuant to Section 2. 09 of this Act; 

or, beginning with the 2007 fiscal year, expenses related 

to providing ADA paratransit service pursuant to Section 

2.30 of the Regional Transportation Authority Act; or in 

fiscal years 2008 through 2012 inclusive, costs in the 

amount of $200, 000 1 000 in fiscal year 2008 1 reducing by 

$40, 000, 000 in each fiscal year thereafter until this 

exemption is eliminated. If said system generated revenues 

are less than 50% of said costs, the Board shall remit an 

amount equal to the amount of the deficit to the State. The 

Treasurer shall deposit any such payment in the General 

Revenue Fund; and 

(ii) whether, beginning with the 2007 fiscal year, the 

aggregate of all fares charged and received for ADA 

paratransit services equals the system generated ADA 

( 
( 

Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

paratransit services revenue recovery ratio percentage of 

the aggregate of all costs 

paratransit services. 

of providing such ADA 

(h) If the Authority makes any payment to the State under 

paragraph (g), the Authority shall reduce the amount provided 

to a Service Board from funds transferred under paragraph (a) 

in proportion to 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 

crh:eria specified in clauses (i) through (vi) of Section 

4 .11 (b) (2). The Board shall review and act on the revised 

budget as provided in Section 4 .11 (b) (3) 

(Source: P.A. 94-370, eff. 7-29-05.) 

(70 ILCS 3615/4.11) (from Ch. 111 2/3, par. 704.11) 

Sec. 4.11. Budget Review Powers. 

(a) The pro-:isions e - this Sec-::.ion shall only be app:!.icab:!.e 

to financial peri_ods beginning aft:::.r December 31, 1983. '.::'he 

Transitio:1 Board shall adept a timetable governing the 

certification of cs-::.imatcs and any submissions required under 

this Section for fiscal year 1984 •,;hich sha 1 l control over the 

pro·dsions of this Act. Based upon estimates which shall be 

given to the Authority by the Director of the Governor's Office 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

of Managemem:. and Budget (formerly 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 State 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 next preceding 

September 15th prior to the beginning of the Authority's next 

fiscal year, advise each Service Board of the amounts estimated 

by the Board to be available for such Service Board during such 

fiscal year and the two following fiscal years and the times at 

which 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. The Board shall, at the same time, 

beginning with the 2007 fiscal year, also advise each Service 

Board that provides ADA paratransit services of its required 

system generated ADA paratransit services revenue recovery 

ratio for the next fiscal year which shall be the percentage of 

the aggregate costs of providing ADA paratransit services by or 

under jurisdiction of that Service Board which must be 

recovered from fares charged for such services, except 1:.hat 

such required system generated ADA paratransit services 

revenue recovery ratio shall not exceed the minimum percentage 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

established pursuant to Section 4.0l(b) (ii) of this Act. 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 jurisdiccion 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 

ordinance, provide that 

Service Boards. 

(ii the cost 

The Board may, by 

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, a?.-Et (ii) up to $§,G~0,080 ar.n"Ca 1 ly of the 

costs for passenger security, and (iii) expenditures of amounts 

granted to a Service Board from the Innovation, Coordination, 

and Enhancement Fund for operating purposes may be exempted 

from the farebox recovery ratio or the system generated 

revenues recovery ratio of the Chicago Transit Authority, the 

Suburban Bus Board, and the Commuter Rail Board, or any of 

them. During fiscal years 2008 through 2012, the Board may also 

allocate the exemption of $200 1 000,000 and the reducing amoun~s 

of costs provided by this amendatory Act of the 95th General 

Assembly from the farebox recovery ratio or system generated 

revenues recovery ratio of each Service Board. For the f"scal 

year beginning January 1, 1986 and ending Deeefflber 31, !986, 

and for the fiscal y::ar bcginfling January 1, ~ 987 af'.d eflding 
Public Act 095-0708 

HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

December 31 , -1.981, the Board shall, by ord~nance, pa-o7idc :.J",a"'.:.: 

:.._;-,e Gepa·etFFtcr.t ;:,= ~ranspcrta-:::.ion ..=-er the cost of s.:.a·v7 ce:::s for 

-:::.t.2 FF.obili_ty l 'mi,__ed provided by the Chicago Trar.s' t Authc:d-::.y, 

and (2) the amount of a grant, pursuaAt to Scc-:::.ion 2705 310 of 

the Department of Transpo:rtatior. La·.c (20 ILCS 2'795/~705 31:::'), 

f··offi the Department e:: Tranopcrtaticn for the cost of services 

fO::'.' trw mobiliEj' liw.ited by the Suburban E::s E;:ard or the 

Ccmmu-:::.2.r Rail Beard, be ezerr.p-:::. -rem :_he farebox recovery ratio 

er the syste.T. ger.cratcd re, cr.ues rcccv·ery rat.:.o. 

(b) (1) Not. later than the next preceding 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 financial plan shall 

(i} be prepared in the format, follow the financial and 

budqetary practices, and be based on any assumptions and 

projections required by the Authority and (ii} 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 two-year 

financial plan submitted by each Service Board, and shall adept 

a cons cl' dated budget and financial plan. The Board shall 

approve the budget and two-year financial plan of a Service 
Public Act 095-0708 

HB0656 Re-Enrolled 

Board if: 

LRB095 04786 DRH 24846 b 

I') the Beard has appre·. ed ch2 proposed budget aed eaoh 

f 1 ow plan fc::::: s1..:ch f_:_scal year o::" cash Serl" cc Board, 

p·arouoF.c ts the send' cicns sec forth in eco~oeo Ii' I 

through (vii) of t'.",is parag::-e.ph; 

ill +i-4+ 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 operaLing deficits or 

encumbrances incurred in prior periods, including 

provision for payment when due of principal and interest on 

outstanding indebtedness; 

JjjJ_ (ii..'._) 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; 

(iii) ~ 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 to the 

jurisdiction of such Service Board sufficient to allow the 

Service Board to meet its required system generaLed revenue 

recovery ratio and, beginning with the 2007 fiscal year, 

system generated ADA paratransit services revenue recovery 

ratio; 

(iv) -t,,-+- such budget and plan are based upon and employ 

assumptions and projections which are reasonable and 
Public AcL 095-0708 

HB0656 Re-Enrolled 

prudent; 

LRB095 04786 DRH 24846 b 

M ~ such budget and plan have been prepared in 

accordance with sound financial practices as determined by 

the Board; rn'TEt 

such budget and plan meet such other 

financial, budgetary, or fiscal requirements that the 

Board may by rule or regulation establish; and~ 

(vii) such budget and plan are consistent with the 

goals and objectives adooLed by the Authoritv in the 

Strateqic Plan. 

(3) (Blank} :n deEermir..::.r.g ·,;h2-'.:.he~ -:he bc.dgc-'.:. and f"nanc"al 

plan p:evid2 a 1 c:cl c:: ::"arcs er dwrg::s su-"':'.:ic.::.cnt to a' 10-.1 a 

Scn,ice Soard to m::e-:. its rcqu.::.red sys-:cff', gencra-'.:.cd r::vcnue 

recovery ra-:io and, beg.::.r.r.ir.g w.::.th -:he 2007 -"'isca::. year, sys-:em 

genera ~ed .7'.DA parat:::ans i ~ ser-;iees re-ceuue rcco·o cry ratio 

·,rnder clause (i·:) ir. s;.;:bparagraph (2), the Boa::d shal' alle·.; a 

Service Beard cs e::..rry e·,-cr ca::h frol'f, -"'a:;:"cbo:: rea.·cr.ues ts 

s;.;:bsequcnt fiscal year..,. 

(4) Unless the Board by an affirmative vote of 11_ ~ of the 

then Directors determines that the budget and financial plan of 

a Service Board mee1:s the criteria specified in clauses ill 

~ through (vii) of subparagraph (2) of this paragraph (b), 

the Board shall withhold from not release to that Service Board 

25 9

0 of ar.y funds for the periods co·vcred by such budget and 

financial plar. e::cept fer the cash proceeds of taxes imposed by 

the Authority under Section 4.03 and Section 4.03.1 and 
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received after February 1 and 25% of the amounts transferred to 

the Authority from the Public Transportation Fund under Section 

4. 09 (al (but not including Section 4. 09 (a) (3) (iv)) after 

February 1 that the Board has estimated to be available to that 

Service Board under Section 4 .11 (a). Such funding shall be 

released to the Service Board only upon approval of a budget 

and financial plan under this Section or adoption of a budget 

and financial plan on behalf of the Service Board by the 

Authority -"-hich arc allocated te the Scrvi:::e Board under 

r _,__. ~ecc::.cn q.01. 

(5) If the Board has not found ~hat 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, by the affirmative vote of at least 

12 of its then Directors shall shall, five wcr~cing days after 

-::.he s-::.arc of -::.3c S::rv_:_ee Board 1 s f.:.sea2- year adopt a budget and 

financial plan meeting such criteria for that Service Board. 

(c) (1) 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 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

estimat.es 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 

operat.ions 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 ts 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 JjJ_ ~ through (vii) of subparagraph (2) of 

paragraph (b} of this Section, the Board shall withhold from 

not release a::-.y fftGfl.:;_es to that Service Board 25% of eHccpt the 

cash proceeds of taxes imposed by the Authority under Section 

4.03 or 4.03.1 and received by the Authority after February 1 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

and 25~o of the amounts transferred to the Authority from the 

Public Transportation Fund under Section 4.09(a) (but not 

includinq Section 4.09{a) (3) (iv)) after Februarv 1 that the 

Board has est-imated to be available which arc a:!.lccated to that 

-::he Service Board under Section 4 .11 (a) 4-:-8-±-. If the Service 

Board submits a revised financial plan and budget ·"',hich plan 

and budget shows that the criteria will be met within a four 

quarter period, 

withheld funds 

the Board shall c.:::ntir.ue to release any such 

to the Service Board. The Board by the 

affirmative vote of at least 12 a 9 "·c-::.e 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 sta~ements, 

audits and other information presented to the Authority 

pursuant to this Section or which may be required by the Board 

to permit it to monitor compliance with the provisions of this 

Section shall be prepared and presented in such manner and 

frequency and in such detail as shall have been prescribed by 

the Board, shall be prepared on both an accrual and cash flow 

basis as specified by the Board, shall present such information 

as the Authority shall prescribe that fairly presents the 

condition of any pension plan or trust for health care benefits 

with respect to retirees established by the Service Board and 

describes the plans of the Service Board to meet the 

requirements of Sections 4. 02a and 4. 02b, and shall identify 
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HB0656 Re-Enrolled LRB095 04786 DRH 24846 b 

and describe the assumptions and projections employed in the 

preparation thereof to the extent required by the Board. If the 

Executive Director certifies that a Service Board has not 

presented its budget and two-year financial olan in conformity 

with the rules adopted bv the Authority under the provisions of 

Section 4.01 (f) and Lhis subsection (d) 1 and such certification 

is accepted by the affirmative vote of a~ least 12 of the then 

Directors of the AuLhority, the Authoritv shall not distribute 

to that Service Board any funds for operating purposes in 

excess of the amounts distributed for such purposes to the 

Service Board in the previous fiscal year. ExcepT. when the 

Board adopts a budget and a financial plan for a Service Board 

under paragraph (b) (5), a Service Board shall provide for such 

levels of transportation services and fares or charges therefor 

as it deems appropriate and necessary in the preparation of a 

budget and financial plan meeting the criteria set forth in 

clauses J..il. -H:4+ through (vii) of subparagraph (2) of paragraph 

(b) of this Section. The Authority 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 12 ~ of the then Directors and shall be incorporated in a 

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written report of the Board and such report shall be submitted 

within 10 days afLer such determinations are made to the 

Governor, the Mayor of Chicago (if such der.erminations relate 

to the Chicago Transit Authority) 1 and r.he Auditor General of 

Illinois. 

(Source: P.A. 94-370, eff. 7-29-05.) 

(70 ILCS 3615/4.13) (from Ch. 111 2/3, par. 704.13) 

Sec. 4.13. Annual Capital Improvement Plan. 

(a) With respect to each calendar year, the Authority shall 

prepare as part of its Five Year Program an Annual Capital 

Improvement Plan (the "Plan") which shall describe its intended 

development and implementation of the Strategic Capital 

Improvement Program. The Plan shall include Lhe following 

information: 

(i) a list of projects for which approval is sought 

from the Governor, with a description of each project 

stating at a minimum the project cost, its category, its 

location and the entity responsible for its 

implementation; 

(ii) a certification by the Authority that the 

Aur.hority and the Service Boards have applied for all 

grants, loans and other moneys made available by the 

federal government or the State of Illinois during the 

preceding federal and State fiscal years for financing its 

capital development activities; 
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(iii) a certification that, as of September 30 of the 

preceding calendar year or any later date, the balance of 

all federal capital grant funds and all other funds to be 

used as matching funds therefor which were committed t.o or 

possessed by the Authority or a Service Board but which had 

not been obligated was less than $350,000,000, or a greater 

amount as authorized in writing by the Governor (for 

purposes of this subsection (a) ' "obligated" means 

committed to be paid by the Authority or a Service Board 

under a contract with a nongovernmental entity in 

connection with the performance of a project. or coITLmitted 

under a force account plan approved by the federal 

government); 

(iv) a certification that the Authority has adopted a 

balanced budget with respect to such calendar year under 

Section 4.01 of this Act; 

(v) a schedule of all bonds or notes previously issued 

for Strategic Capital Improvement Projects and all debt 

service payments to be made with respect to all such bonds 

and the estimated additional debt service payments through 

June 30 of the following calendar year expected to result 

from bonds to be sold prior thereto; 

(vi) a long-range summary of the Strategic Capital 

Improvement Program describing the projects to be funded 

through the Program with respect to project cost, category, 

location, and implementing entity, and presenting a 

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financial plan including an estimated Lime schedule for 

obligating funds for the performance of approved projects, 

issuing bonds, expending bond proceeds and paying debt 

service throughout the duration of the Program; and 

(vii) the source of funding for each project in the 

Plan. For any project for which full funding has not yeL. 

been secured and which is not subject to a federal full 

funding contract, the Authority must identify alternative, 

dedicated funding sources available to complete the 

project. The Governor may waive this requirement on a 

projecL by project basis. 

(b) The Authority shall submit the Plan with respect to any 

calendar year to the Governor on or before January 15 of that 

year, or as soon as possible thereafter; provided, however, 

that the Plan shall be adopted on the affirmative votes of 11. ~ 

of the then Directors. The Plan may be revised or amended at 

any time, but any revision in the projects approved shall 

require the Governor's approval. 

(c) The Authority shall seek approval from the Governor 

only through the Plan or an amendment thereto. The AuthoriLy 

shall not request approval of the Plan from the Governor in any 

calendar year in which it is unable to make the certifications 

required under items (ii), (iii) and (iv) of subsection (a). In 

no event shall che Authority seek approval of the Plan from the 

Governor for projects in an aggregate amount exceeding the 

proceeds of bonds or notes for Strategic Capital Improvement 
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Projects issued under Section 4.04 of this Act. 

(d) The Governor may approve the Plan for which approval is 

requested. The Governor's approval is limited to the amount of 

the project cost stated in the Plan. The Governor shall not 

approve the Plan in a calendar year if the Authority is unable 

to make the certifications required under items (ii), (iii) and 

(iv) of subsection {a). In no event shall the Governor approve 

the Plan for projects in an aggregate amount exceeding the 

proceeds of bonds or notes for Strategic Capital Improvement 

Projects issued under Section 4.04 of this Act. 

(e) With respect to capital improvements, only those 

capital improvements which are in a Plan approved by the 

Governor shall be financed with the proceeds of bonds or notes 

issued for Strategic Capital Improvement Projects. 

(f} Before the Authority or a Service Board obligates any 

funds for a project for which the Authority or Service Board 

intends to use the proceeds of bonds or notes for Strategic 

Capital Improvement Projects, but which project is not included 

in an approved Plan, the Authority must notify the Governor of 

the intended obligation. No project. costs incurred prior to 

approval of the Plan including that project may be paid from 

the proceeds of bonds o:r notes for Strategic Capital 

Improvement Projects issued under Section 4.04 of this Act. 

(Source: P.A. 94-839, eff. 6-6-06.) 

(70 ILCS 3615/4.14) (from Ch. 111 2/3, par. 704.14) 

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Sec. 4 .14. Rate Protection Contract. "Rate Protection 

ConL.ract" means interest rate price exchange agreements; 

currency exchange agreements; forward payment conversion 

agreements; contracts providing for payment or receipt of funds 

based on levels of, or changes in, interest rates, currency 

exchange rates, stock or other indices; contracts to exchange 

cash flows or a series of paymenL.s; cont.racts, including 

without limitation, interest rate caps; interest rate floor; 

interest rate locks; interest rate collars; rate of return 

guarantees or assurances, to manage payment, currency, rate, 

spread or similar exposure; the obligation, right, or option to 

issue, put, lend, sell, grant a security interest in, buy, 

borrow or otherwise acquire, a bond, note or other security or 

interest therein as an investment, as collateral, as a hedge, 

or otherwise as a source or assurance of payment to or by the 

Authority or as a reduction of the Authority's or an obligor's 

risk exposure; repurchase agreements; securities lending 

agreements; and other agreemenL.s or arrangements similar to the 

foregoing. 

Notwithstanding any provision in Section 2.20 (a) (ii) of 

this Act to the contrary, in connection with or incidental to 

the issuance by the Authority of its bonds or notes under the 

provisions of Section 4.04 or the exercise of its powers under 

subsection (b) of Section 2. 2 0, the Authority, for its own 

benefit or for the benefit of the holders of its obligations or 

their trustee, may enter into rate protection contracts. The 
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AuthoriLy may enter into rate protection contracLs only 

pursuant:. to a determination by a vote of 12 .g. of the then 

Direc1:.ors t:.hat t:.he terms of the contracts and any related 

agreemen1:.s reduce the risk of loss to the Authority, or 

protect, preserve or enhance the value of its assets, or 

provide compensation to the Authority for losses resulting from 

changes in interest rates. The Authority's obligations under 

any rate prot:.ection contract or credit enhancement or liquidity 

agreement shall not be considered bonds or notes for purposes 

of this Act. For purposes of this Section a rate protection 

contract is a conLract determined by the Authority as necessary 

or appropriate to permit it to manage payment, currency or 

interest rate risks or levels. 

(Source: P.A. 87-764.) 

(70 ILCS 3615/5.01) (from Ch. 111 2/3, par. 705.01) 

Sec. 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. The Authoritv shall coordinate such 

public participation processes with the Chicago Metropolitan 

Agency for Planning to the extent practicable. 

(b) The AuLhority shall hold such public hearings as may be 

required by this Act or as the Authority may deem appropriate 
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LO the performance of any of its functions. The Authority shall 

coordinate such public hearings with the Chicago Metropolitan 

Agency for Planning to the extent practicable. 

(c) Unless such items are specifically provided for either 

in the Five-Year Capital 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, the Board shall 

hold public hearings at which citizens may be heard prior to: 

(i) the construction or acquisition of any public 

transporLation facility, the aggregaLe cosL of which exceeds $5 

million; and 

(ii) the extension of, or major addition to services 

provided by the Authority or by any transporta1:.ion 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, 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 
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any public transportation route, or major pore.ion thereof, 

which has been in service for more than a year. 

(e) At least twenty 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 i:.he 

metropolitan region. 

(f) The Authority may designate one or more Directors or 

may 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. 

{g) The Authority may require any Service Board to hold one 

or more public hearings with respect to any item described in 

paragraphs (c) and (d) of this Section 5. 01, notwithstanding 

whether such i tern has been the subject of a pub 1 ic hearing 

under this SecLion 5.01 or Section 2.01 or 4.01 of this Act. 

(Source: P.A. 78-3rd S.S.-5.) 

(70 ILCS 3615/2.12a rep.) 

(70 ILCS 3615/3. 09 rep.) 

(70 ILCS 3615/3.10 rep.) 

Section 25. The Regional Transportation Authority Act is 

amended by repealing Sections 2.12a, 3.09, and 3.10. 

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Section 97. Severability. The provisions of this Act are 

severable under SecLion 1.31 of the Statute on Statutes. 

Section 99. Effective date. This Act takes effect upon 

becoming law. 
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