SB0941 Enrolled

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1
    AN ACT concerning transportation.

 
2
    Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 



 
4
    Section 5. The Regional Transportation Authority Act is 
5
amended  by changing Section 4.04 as follows:
 
6
    (70 ILCS 3615/4.04)  (from Ch. 111 2/3, par. 704.04)
7
    Sec. 4.04. Issuance and Pledge of Bonds and Notes. 
8
    (a) The Authority shall have the continuing power to borrow 
9
money and to
issue its negotiable bonds or notes as provided in 
10
this Section.  Unless
otherwise indicated in this Section, the 
11
term "notes" also includes bond
anticipation notes, which are 
12
notes which by their terms provide for
their payment from the 
13
proceeds of bonds thereafter to be issued.  Bonds
or notes of 
14
the Authority may be issued for any or all of the following

15
purposes: to pay costs to the Authority or a Service Board of 
16
constructing
or acquiring any public transportation facilities 
17
(including funds and
rights relating thereto, as provided in 
18
Section 2.05 of this Act); to repay
advances to the Authority 
19
or a Service Board made for such purposes; to pay
other 
20
expenses of the Authority or a Service Board incident to or 
21
incurred
in connection with such construction or acquisition; 
22
to provide funds for
any transportation agency to pay principal

23
of or interest or redemption premium on any bonds or notes, 
 


 






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whether
as such amounts become due or by earlier redemption, 
2
issued prior to the
date of this amendatory Act by such 
3
transportation agency to construct or
acquire public 
4
transportation facilities or to provide funds to purchase
such 
5
bonds or notes; and to provide funds for any transportation 
6
agency to
construct or acquire any public transportation 
7
facilities, to repay
advances made for such purposes, and to 
8
pay other expenses incident to
or incurred in connection with 
9
such construction or acquisition; and to
provide funds for 
10
payment of obligations, including the funding of reserves,

11
under any self-insurance plan or joint self-insurance pool or 
12
entity.
13
    In addition to any other borrowing as may be authorized by 
14
this Section,
the Authority may issue its notes, from time to 
15
time, in anticipation of
tax receipts of the Authority or of 
16
other
revenues or receipts of the Authority, in order to 
17
provide money for the
Authority or the Service Boards to cover 
18
any cash flow deficit which
the Authority or a Service Board 
19
anticipates incurring.  Any such notes
are referred to in this 
20
Section as "Working Cash Notes".  No Working
Cash Notes shall be 
21
issued for a term of longer than 24
 months.
Proceeds of Working 
22
Cash Notes may be used to pay day to day operating
expenses of 
23
the Authority or the Service Boards, consisting of wages,

24
salaries and fringe benefits, professional and technical 
25
services
(including legal, audit, engineering and other 
26
consulting services), office
rental, furniture, fixtures and 
 


 






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equipment, insurance premiums, claims for
self-insured amounts 
2
under insurance policies, public utility
obligations for 
3
telephone, light, heat and similar items, travel expenses,

4
office supplies, postage, dues, subscriptions, public hearings 
5
and information
expenses, fuel purchases, and payments of 
6
grants and payments under purchase
of service agreements for 
7
operations of transportation agencies, prior to
the receipt by 
8
the Authority or a Service Board from time to time of
funds for 
9
paying such expenses.  In addition to any Working Cash Notes

10
that the Board of the Authority may determine to issue, the 
11
Suburban Bus
Board, the Commuter Rail Board or the Board of the 
12
Chicago Transit Authority
may demand and direct that the 
13
Authority issue its Working Cash Notes in
such amounts and 
14
having such maturities as the Service Board may determine.
15
    Notwithstanding any other provision of this Act, any 
16
amounts necessary to
pay principal of and interest on any

17
Working Cash Notes issued at the demand
and direction of a 
18
Service Board or any Working Cash Notes the proceeds of
which 
19
were used for the direct benefit of a Service Board or any 
20
other
Bonds or Notes of the Authority the proceeds of which 
21
were used for the
direct benefit of a Service Board shall 
22
constitute a reduction of the amount
of any other funds 
23
provided by the Authority to that Service
Board.  The Authority 
24
shall, after deducting any costs of issuance, tender
the net 
25
proceeds of any Working Cash Notes issued at the demand and

26
direction of a Service Board to such Service Board as soon as 
 


 






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may be
practicable after the proceeds are received.  The 
2
Authority may also issue
notes or bonds to pay, refund or 
3
redeem any of its notes and bonds,
including to pay redemption 
4
premiums or accrued interest on such bonds or
notes being 
5
renewed, paid or refunded, and other costs in connection

6
therewith.  The Authority may also utilize the proceeds of any 
7
such bonds or
notes to pay the legal, financial, administrative 
8
and other expenses of
such authorization, issuance, sale or 
9
delivery of bonds or notes or to
provide or increase a debt 
10
service reserve fund with respect to any or all
of its bonds or 
11
notes. The Authority may also issue and deliver
its bonds or 
12
notes in exchange for any public transportation facilities,

13
(including funds and rights relating thereto, as provided in 
14
Section
2.05 of this Act) or in exchange for outstanding bonds 
15
or notes of the
Authority, including any accrued interest or 
16
redemption premium thereon,
without advertising or submitting 
17
such notes or bonds for public bidding.
18
    (b) The ordinance providing for the issuance of any such 
19
bonds or
notes shall fix the date or dates of maturity, the 
20
dates on which
interest is payable, any sinking fund account or 
21
reserve fund account
provisions and all other details of such 
22
bonds or notes and may provide
for such covenants or agreements 
23
necessary or desirable with regard to
the issue, sale and 
24
security of such bonds or notes.  The rate or rates of
interest 
25
on its bonds or notes may be fixed or variable and the 
26
Authority
shall determine or provide for the determination of 
 


 






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the rate or
rates of interest of its bonds or notes
issued 
2
under this Act in an ordinance adopted by the Authority prior 
3
to
the issuance thereof, none of which rates of interest shall 
4
exceed
that permitted in the Bond Authorization Act.  Interest 
5
may be payable at such times as are  provided for
by the Board.  
6
Bonds and notes issued under this Section may
be issued as 
7
serial or term obligations, shall be of such denomination
or 
8
denominations and form, including interest coupons to be 
9
attached
thereto, be executed in such manner, shall be payable 
10
at such place or
places and bear such date as the Authority 
11
shall fix by the ordinance
authorizing such bond or note and 
12
shall mature at such time or times,
within a period not to 
13
exceed forty years from the date of issue, and
may be 
14
redeemable prior to maturity with or without premium, at the

15
option of the Authority, upon such terms and conditions as the 
16
Authority
shall fix by the ordinance authorizing the issuance 
17
of such bonds or
notes.  No bond anticipation note or any 
18
renewal thereof shall mature at
any time or times exceeding 5 
19
years from the date of the first issuance
of such note.  The 
20
Authority may provide for the registration of bonds or
notes in 
21
the name of the owner as to the principal alone or as to both

22
principal and interest, upon such terms and conditions as the 
23
Authority
may determine.  The ordinance authorizing bonds or 
24
notes may provide for
the exchange of such bonds or notes which 
25
are fully registered, as to
both principal and interest, with 
26
bonds or notes which are registerable
as to principal only.  All 
 


 






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bonds or notes issued under this Section by
the Authority other 
2
than those issued in exchange for property or for
bonds or 
3
notes of the Authority shall be sold at a price which may be at

4
a premium or discount but such that the interest cost 
5
(excluding any
redemption premium) to the Authority of the 
6
proceeds of an issue of such
bonds or notes, computed to stated 
7
maturity according to standard tables
of bond values, shall not 
8
exceed that permitted in the Bond Authorization
Act.  The 
9
Authority shall notify
the
Governor's Office of Management and 
10
Budget and the State Comptroller at least 30 days
before any 
11
bond sale and shall file with the
Governor's Office of 
12
Management and Budget and the
State Comptroller a certified 
13
copy of any ordinance authorizing the issuance
of bonds at or 
14
before the issuance of the bonds.
After December 31, 1994, any 
15
such bonds or notes shall be sold
to the highest and best 
16
bidder on sealed bids as the Authority shall deem.
As such 
17
bonds or notes are to be sold the Authority shall advertise for

18
proposals to purchase the bonds or notes which advertisement 
19
shall be published
at least once in a daily newspaper of 
20
general circulation published in the
metropolitan region at 
21
least 10 days before the time set for the submission
of bids.  
22
The Authority shall have the right to reject any or all bids.

23
Notwithstanding any other provisions of this Section, Working 
24
Cash Notes or
bonds or notes to provide funds for 
25
self-insurance or a joint self-insurance
pool or entity may be 
26
sold either upon competitive bidding or by negotiated
sale

 


 






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(without any requirement of publication of intention to 
2
negotiate the sale
of such Notes), as the Board shall determine 
3
by ordinance adopted with the
affirmative votes of at least 9
 
4
Directors.  In case any officer whose signature
appears on any 
5
bonds, notes or coupons authorized pursuant to this
Section 
6
shall cease to be such officer before delivery of such bonds or

7
notes, such signature shall nevertheless be valid and 
8
sufficient for all
purposes, the same as if such officer had 
9
remained in office until such
delivery. Neither the Directors 
10
of the Authority nor any person
executing any bonds or notes 
11
thereof shall be liable personally on any
such bonds or notes 
12
or coupons by reason of the issuance thereof.
13
    (c) All bonds or notes of the Authority issued pursuant to 
14
this Section
shall be general obligations
of the Authority to 
15
which shall be pledged the full faith and credit of the

16
Authority, as provided in this Section.  Such bonds or notes

17
shall be secured
as provided in the authorizing ordinance, 
18
which may, notwithstanding any other
provision of this Act, 
19
include in addition to any other security, a specific
pledge or 
20
assignment of and lien on or security interest in any or all 
21
tax
receipts of the Authority and on any or all other revenues 
22
or moneys of the
Authority from whatever source, which may by 
23
law be utilized for debt
service purposes and a specific pledge 
24
or assignment of and lien on or security
interest in any funds 
25
or accounts established or provided for by the ordinance
of the 
26
Authority authorizing the issuance of such bonds or notes.  Any 
 


 






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such
pledge, assignment, lien or security interest for the 
2
benefit of holders of
bonds or notes of the Authority shall be 
3
valid and binding from the time the
bonds or notes are issued 
4
without any physical delivery or further act
and shall be valid 
5
and binding as against and prior to the claims of all
other 
6
parties having claims of any kind against the Authority or any 
7
other
person irrespective of whether such other parties have 
8
notice of such pledge,
assignment, lien or security interest.  
9
The obligations of the Authority
incurred pursuant to this 
10
Section shall be superior to and have priority over
any other 
11
obligations of the Authority.
12
    The Authority may provide in the
ordinance authorizing the 
13
issuance of any bonds or notes issued pursuant to
this Section 
14
for the creation of, deposits in, and regulation and 
15
disposition
of sinking fund or reserve accounts relating to 
16
such bonds or notes.  The
ordinance authorizing the issuance of 
17
any bonds or notes pursuant to this
Section may contain 
18
provisions as part of the contract with the holders
of the 
19
bonds or notes, for the creation of a separate fund to provide

20
for the payment of principal and interest on such bonds or 
21
notes
and for the deposit in such fund from any or all the tax 
22
receipts of the
Authority and from any or all such other moneys 
23
or revenues of the
Authority from whatever source which may by 
24
law be utilized for debt
service purposes, all as provided in 
25
such ordinance, of amounts to meet
the debt service 
26
requirements on such bonds or notes, including
principal and 
 


 






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interest, and any sinking fund or reserve fund account

2
requirements as may be provided by such ordinance, and all 
3
expenses
incident to or in connection with such fund and 
4
accounts or the payment
of such bonds or notes.
Such ordinance 
5
may also provide limitations on the issuance of additional

6
bonds or notes of the Authority.  No such bonds or notes of the 
7
Authority
shall constitute a debt of the State of Illinois.  
8
Nothing in this Act shall
be construed to enable the Authority 
9
to impose any ad valorem tax on property.
10
    (d) The ordinance of the Authority authorizing the issuance 
11
of any bonds
or notes may provide additional security for such 
12
bonds or notes by providing
for appointment of a corporate 
13
trustee (which may be any trust company or
bank having the 
14
powers of a trust company within the state) with respect
to 
15
such bonds or notes.  The ordinance shall prescribe the rights, 
16
duties
and powers of the trustee to be exercised for the 
17
benefit of the Authority
and the protection of the holders of 
18
such bonds or notes.  The ordinance
may provide for the trustee 
19
to hold in trust, invest and use amounts in
funds and accounts 
20
created as provided by the ordinance with respect to
the bonds 
21
or notes.  The ordinance may provide for the assignment and 
22
direct
payment to the trustee of any or all amounts produced 
23
from the sources
provided in Section 4.03 and Section 4.09 of 
24
this Act and provided in Section 6z-17 of "An Act
in relation 
25
to State finance", approved June 10, 1919, as amended.
Upon 
26
receipt of notice of any such assignment, the Department of 
 


 






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Revenue and
the Comptroller of the State of Illinois shall 
2
thereafter, notwithstanding the
provisions of Section 4.03 and 
3
Section 4.09 of this Act and Section 6z-17 of "An Act in 
4
relation
to State finance", approved June 10, 1919, as amended, 
5
provide for such
assigned amounts to be paid directly to the 
6
trustee instead of the Authority,
all in accordance with the 
7
terms of the ordinance making the assignment.  The
ordinance 
8
shall provide that
amounts so paid to the trustee which are not 
9
required to be deposited, held
or invested in funds and 
10
accounts created by the ordinance with respect
to bonds or 
11
notes or used for paying bonds or notes to be paid by the 
12
trustee
to the Authority.
13
    (e) Any bonds or notes of the Authority issued pursuant to 
14
this
Section shall constitute a contract between the Authority 
15
and the
holders from time to time of such bonds or notes. In 
16
issuing any bond or
note, the Authority may include in the 
17
ordinance authorizing such issue
a covenant as part of the 
18
contract with the holders of the bonds or
notes, that as long 
19
as such obligations are outstanding, it shall make
such 
20
deposits, as provided in paragraph (c) of this Section. It may 
21
also
so covenant that it shall impose and continue to impose 
22
taxes, as
provided in Section 4.03 of this Act and in addition 
23
thereto as
subsequently authorized by law, sufficient to make 
24
such deposits and pay
the principal and interest and to meet 
25
other debt service requirements
of such bonds or notes as they 
26
become due. A certified copy of the
ordinance authorizing the 
 


 






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issuance of any such obligations shall be
filed at or prior to 
2
the issuance of such obligations with the Comptroller
of the 
3
State of Illinois and the Illinois Department of Revenue.
4
    (f) The State of Illinois pledges to and agrees with the 
5
holders of
the bonds and notes of the Authority issued pursuant 
6
to this Section
that the State will not limit or alter the 
7
rights and powers vested in
the Authority by this Act so as to 
8
impair the terms of any contract made
by the Authority with 
9
such holders or in any way impair the rights and
remedies of 
10
such holders until such bonds and notes, together with
interest 
11
thereon, with interest on any unpaid installments of interest,

12
and all costs and expenses in connection with any action or 
13
proceedings
by or on behalf of such holders, are fully met and 
14
discharged. In
addition, the State pledges to and agrees with 
15
the holders of the bonds
and notes of the Authority issued 
16
pursuant to this Section that the
State will not limit or alter 
17
the basis on which State funds are to be
paid to the Authority 
18
as provided in this Act, or the use of such funds,
so as to 
19
impair the terms of any such contract. The Authority is

20
authorized to include these pledges and agreements of the State 
21
in any
contract with the holders of bonds or notes issued 
22
pursuant to this
Section.
23
    (g) (1) Except as provided in subdivisions (g)(2) and 
24
    (g)(3) of Section
4.04 of this Act, the Authority shall not 
25
    at any time issue, sell or deliver
any bonds or notes 
26
    (other than Working Cash Notes) pursuant to this Section

 


 






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    4.04 which will cause
it to have issued and outstanding at 
2
    any time in excess of $800,000,000 of such
bonds and notes 
3
    (other than Working Cash Notes).
The Authority shall not at 
4
    any time issue, sell, or deliver any Working Cash Notes 
5
    pursuant to this Section that will cause it to have issued 
6
    and outstanding at any time in excess of  $100,000,000.  
7
    However, the Authority may issue, sell, and deliver 
8
    additional Working Cash Notes before July 1, 2012 that are 
9
    over and above and in addition to the $100,000,000 
10
    authorization such that the outstanding amount of these 
11
    additional Working Cash Notes does not exceed at any time 
12
    $300,000,000. Notwithstanding the foregoing, before July 
13
    1, 2009, the Authority may issue, sell, and deliver an 
14
    additional $300,000,000 in Working Cash Notes, provided 
15
    that  any such additional notes shall mature on or before  
16
    June 30, 2011.

Bonds or notes which are being paid or 
17
    retired by
such issuance, sale or delivery of bonds or 
18
    notes, and bonds or notes for
which sufficient funds have 
19
    been deposited with the paying agency of
such bonds or 
20
    notes to provide for payment of principal and interest

21
    thereon or to provide for the redemption thereof, all 
22
    pursuant to the
ordinance authorizing the issuance of such 
23
    bonds or notes, shall not be
considered to be outstanding 
24
    for the purposes of the first two sentences
of this 
25
    subsection.
26
        (2) In addition to the authority provided by paragraphs

 


 






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    (1) and (3), the Authority is authorized to issue, sell and 
2
    deliver bonds
or notes for Strategic Capital Improvement 
3
    Projects approved pursuant to
Section 4.13 as follows:
4
        $100,000,000 is authorized to be issued on or after 
5
    January 1, 1990;
6
        an additional $100,000,000 is authorized to be issued 
7
    on or after
January 1, 1991;
8
        an additional $100,000,000 is authorized to be issued 
9
    on or after
January 1, 1992;
10
        an additional $100,000,000 is authorized to be issued 
11
    on or after
January 1, 1993;
12
        an additional $100,000,000 is authorized to be issued 
13
    on or after
January 1, 1994; and
14
        the aggregate total authorization of bonds and notes 
15
    for Strategic
Capital Improvement Projects as of January 1, 
16
    1994, shall be $500,000,000.
17
        The Authority is also authorized to issue, sell, and 
18
    deliver bonds or
notes in such amounts as are necessary to 
19
    provide for the refunding or advance
refunding of bonds or 
20
    notes issued for Strategic Capital Improvement Projects

21
    under this subdivision (g)(2), provided that no such 
22
    refunding bond or note
shall mature later than the final 
23
    maturity date of the series of bonds or notes
being 
24
    refunded, and provided further that the debt service 
25
    requirements for
such refunding bonds or notes in the 
26
    current or any future fiscal year shall
not exceed the debt 
 


 






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    service requirements for that year on the refunded bonds
or 
2
    notes.
3
        (3) In addition to the authority provided by paragraphs 
4
    (1) and (2),
the Authority is authorized to issue, sell, 
5
    and deliver bonds or notes for
Strategic Capital 
6
    Improvement Projects approved pursuant to Section 4.13 as

7
    follows:
8
        $260,000,000 is authorized to be issued on or after 
9
    January 1, 2000;
10
        an additional $260,000,000 is authorized to be issued 
11
    on or after
January 1, 2001;
12
        an additional $260,000,000 is authorized to be issued 
13
    on or after
January 1, 2002;
14
        an additional $260,000,000 is authorized to be issued 
15
    on or after
January 1, 2003;
16
        an additional $260,000,000 is authorized to be issued 
17
    on or after
January 1, 2004; and
18
        the aggregate total authorization of bonds and notes 
19
    for Strategic
Capital Improvement Projects pursuant to 
20
    this paragraph (3) as of
January 1, 2004 shall be 
21
    $1,300,000,000.
22
        The Authority is also authorized to issue, sell, and 
23
    deliver bonds or notes
in such amounts as are necessary to 
24
    provide for the refunding or advance
refunding of bonds or 
25
    notes issued for Strategic Capital Improvement projects

26
    under this subdivision (g)(3), provided that no such 
 


 






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    refunding bond or note
shall mature later than the final 
2
    maturity date of the series of bonds or notes
being 
3
    refunded, and provided further that the debt service 
4
    requirements for
such refunding bonds or notes in the 
5
    current or any future fiscal year shall
not exceed the debt 
6
    service requirements for that year on the refunded bonds or

7
    notes.
8
    (h) The Authority, subject to the terms of any agreements 
9
with noteholders
or bond holders as may then exist, shall have 
10
power, out of any funds
available therefor, to purchase notes 
11
or bonds of the Authority, which
shall thereupon be cancelled.
12
    (i) In addition to any other authority granted by law, the 
13
State Treasurer
may, with the approval of the Governor, invest 
14
or reinvest, at a price not
to exceed par, any State money in 
15
the State Treasury which is not needed
for current expenditures 
16
due or about to become due in Working Cash Notes.
17
(Source: P.A. 94-793, eff. 5-19-06; 95-708, eff. 1-18-08.)
 

18
    Section 99. Effective date. This Act takes effect upon 
19
becoming law.