Bill Text: IL HB3004 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Regional Transportation Authority Act. Provides that the Authority may issue, sell, and deliver additional Working Cash Notes before July 1, 2020 (now July 1, 2018) that are over and above and in addition to the $100,000,000 authorization. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-04-06 - House Floor Amendment No. 2 Recommends Be Adopted Mass Transit Committee; 007-005-000 [HB3004 Detail]

Download: Illinois-2017-HB3004-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3004

Introduced , by Rep. Al Riley

SYNOPSIS AS INTRODUCED:
70 ILCS 3615/4.04 from Ch. 111 2/3, par. 704.04

Amends the Regional Transportation Authority Act. Provides that the Authority may issue, sell, and deliver additional Working Cash Notes before July 1, 2020 (now July 1, 2018) that are over and above and in addition to the $100,000,000 authorization. Effective immediately.
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A BILL FOR

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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Regional Transportation Authority Act is
5amended 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
9money and to issue its negotiable bonds or notes as provided in
10this Section. Unless otherwise indicated in this Section, the
11term "notes" also includes bond anticipation notes, which are
12notes which by their terms provide for their payment from the
13proceeds of bonds thereafter to be issued. Bonds or notes of
14the Authority may be issued for any or all of the following
15purposes: to pay costs to the Authority or a Service Board of
16constructing or acquiring any public transportation facilities
17(including funds and rights relating thereto, as provided in
18Section 2.05 of this Act); to repay advances to the Authority
19or a Service Board made for such purposes; to pay other
20expenses of the Authority or a Service Board incident to or
21incurred in connection with such construction or acquisition;
22to provide funds for any transportation agency to pay principal
23of or interest or redemption premium on any bonds or notes,

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1whether as such amounts become due or by earlier redemption,
2issued prior to the date of this amendatory Act by such
3transportation agency to construct or acquire public
4transportation facilities or to provide funds to purchase such
5bonds or notes; and to provide funds for any transportation
6agency to construct or acquire any public transportation
7facilities, to repay advances made for such purposes, and to
8pay other expenses incident to or incurred in connection with
9such construction or acquisition; and to provide funds for
10payment of obligations, including the funding of reserves,
11under any self-insurance plan or joint self-insurance pool or
12entity.
13 In addition to any other borrowing as may be authorized by
14this Section, the Authority may issue its notes, from time to
15time, in anticipation of tax receipts of the Authority or of
16other revenues or receipts of the Authority, in order to
17provide money for the Authority or the Service Boards to cover
18any cash flow deficit which the Authority or a Service Board
19anticipates incurring. Any such notes are referred to in this
20Section as "Working Cash Notes". No Working Cash Notes shall be
21issued for a term of longer than 24 months. Proceeds of Working
22Cash Notes may be used to pay day to day operating expenses of
23the Authority or the Service Boards, consisting of wages,
24salaries and fringe benefits, professional and technical
25services (including legal, audit, engineering and other
26consulting services), office rental, furniture, fixtures and

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1equipment, insurance premiums, claims for self-insured amounts
2under insurance policies, public utility obligations for
3telephone, light, heat and similar items, travel expenses,
4office supplies, postage, dues, subscriptions, public hearings
5and information expenses, fuel purchases, and payments of
6grants and payments under purchase of service agreements for
7operations of transportation agencies, prior to the receipt by
8the Authority or a Service Board from time to time of funds for
9paying such expenses. In addition to any Working Cash Notes
10that the Board of the Authority may determine to issue, the
11Suburban Bus Board, the Commuter Rail Board or the Board of the
12Chicago Transit Authority may demand and direct that the
13Authority issue its Working Cash Notes in such amounts and
14having such maturities as the Service Board may determine.
15 Notwithstanding any other provision of this Act, any
16amounts necessary to pay principal of and interest on any
17Working Cash Notes issued at the demand and direction of a
18Service Board or any Working Cash Notes the proceeds of which
19were used for the direct benefit of a Service Board or any
20other Bonds or Notes of the Authority the proceeds of which
21were used for the direct benefit of a Service Board shall
22constitute a reduction of the amount of any other funds
23provided by the Authority to that Service Board. The Authority
24shall, after deducting any costs of issuance, tender the net
25proceeds of any Working Cash Notes issued at the demand and
26direction of a Service Board to such Service Board as soon as

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1may be practicable after the proceeds are received. The
2Authority may also issue notes or bonds to pay, refund or
3redeem any of its notes and bonds, including to pay redemption
4premiums or accrued interest on such bonds or notes being
5renewed, paid or refunded, and other costs in connection
6therewith. The Authority may also utilize the proceeds of any
7such bonds or notes to pay the legal, financial, administrative
8and other expenses of such authorization, issuance, sale or
9delivery of bonds or notes or to provide or increase a debt
10service reserve fund with respect to any or all of its bonds or
11notes. The Authority may also issue and deliver its bonds or
12notes in exchange for any public transportation facilities,
13(including funds and rights relating thereto, as provided in
14Section 2.05 of this Act) or in exchange for outstanding bonds
15or notes of the Authority, including any accrued interest or
16redemption premium thereon, without advertising or submitting
17such notes or bonds for public bidding.
18 (b) The ordinance providing for the issuance of any such
19bonds or notes shall fix the date or dates of maturity, the
20dates on which interest is payable, any sinking fund account or
21reserve fund account provisions and all other details of such
22bonds or notes and may provide for such covenants or agreements
23necessary or desirable with regard to the issue, sale and
24security of such bonds or notes. The rate or rates of interest
25on its bonds or notes may be fixed or variable and the
26Authority shall determine or provide for the determination of

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1the rate or rates of interest of its bonds or notes issued
2under this Act in an ordinance adopted by the Authority prior
3to the issuance thereof, none of which rates of interest shall
4exceed that permitted in the Bond Authorization Act. Interest
5may be payable at such times as are provided for by the Board.
6Bonds and notes issued under this Section may be issued as
7serial or term obligations, shall be of such denomination or
8denominations and form, including interest coupons to be
9attached thereto, be executed in such manner, shall be payable
10at such place or places and bear such date as the Authority
11shall fix by the ordinance authorizing such bond or note and
12shall mature at such time or times, within a period not to
13exceed forty years from the date of issue, and may be
14redeemable prior to maturity with or without premium, at the
15option of the Authority, upon such terms and conditions as the
16Authority shall fix by the ordinance authorizing the issuance
17of such bonds or notes. No bond anticipation note or any
18renewal thereof shall mature at any time or times exceeding 5
19years from the date of the first issuance of such note. The
20Authority may provide for the registration of bonds or notes in
21the name of the owner as to the principal alone or as to both
22principal and interest, upon such terms and conditions as the
23Authority may determine. The ordinance authorizing bonds or
24notes may provide for the exchange of such bonds or notes which
25are fully registered, as to both principal and interest, with
26bonds or notes which are registerable as to principal only. All

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1bonds or notes issued under this Section by the Authority other
2than those issued in exchange for property or for bonds or
3notes of the Authority shall be sold at a price which may be at
4a premium or discount but such that the interest cost
5(excluding any redemption premium) to the Authority of the
6proceeds of an issue of such bonds or notes, computed to stated
7maturity according to standard tables of bond values, shall not
8exceed that permitted in the Bond Authorization Act. The
9Authority shall notify the Governor's Office of Management and
10Budget and the State Comptroller at least 30 days before any
11bond sale and shall file with the Governor's Office of
12Management and Budget and the State Comptroller a certified
13copy of any ordinance authorizing the issuance of bonds at or
14before the issuance of the bonds. After December 31, 1994, any
15such bonds or notes shall be sold to the highest and best
16bidder on sealed bids as the Authority shall deem. As such
17bonds or notes are to be sold the Authority shall advertise for
18proposals to purchase the bonds or notes which advertisement
19shall be published at least once in a daily newspaper of
20general circulation published in the metropolitan region at
21least 10 days before the time set for the submission of bids.
22The Authority shall have the right to reject any or all bids.
23Notwithstanding any other provisions of this Section, Working
24Cash Notes or bonds or notes to provide funds for
25self-insurance or a joint self-insurance pool or entity may be
26sold either upon competitive bidding or by negotiated sale

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1(without any requirement of publication of intention to
2negotiate the sale of such Notes), as the Board shall determine
3by ordinance adopted with the affirmative votes of at least 9
4Directors. In case any officer whose signature appears on any
5bonds, notes or coupons authorized pursuant to this Section
6shall cease to be such officer before delivery of such bonds or
7notes, such signature shall nevertheless be valid and
8sufficient for all purposes, the same as if such officer had
9remained in office until such delivery. Neither the Directors
10of the Authority nor any person executing any bonds or notes
11thereof shall be liable personally on any such bonds or notes
12or coupons by reason of the issuance thereof.
13 (c) All bonds or notes of the Authority issued pursuant to
14this Section shall be general obligations of the Authority to
15which shall be pledged the full faith and credit of the
16Authority, as provided in this Section. Such bonds or notes
17shall be secured as provided in the authorizing ordinance,
18which may, notwithstanding any other provision of this Act,
19include in addition to any other security, a specific pledge or
20assignment of and lien on or security interest in any or all
21tax receipts of the Authority and on any or all other revenues
22or moneys of the Authority from whatever source, which may by
23law be utilized for debt service purposes and a specific pledge
24or assignment of and lien on or security interest in any funds
25or accounts established or provided for by the ordinance of the
26Authority authorizing the issuance of such bonds or notes. Any

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1such pledge, assignment, lien or security interest for the
2benefit of holders of bonds or notes of the Authority shall be
3valid and binding from the time the bonds or notes are issued
4without any physical delivery or further act and shall be valid
5and binding as against and prior to the claims of all other
6parties having claims of any kind against the Authority or any
7other person irrespective of whether such other parties have
8notice of such pledge, assignment, lien or security interest.
9The obligations of the Authority incurred pursuant to this
10Section shall be superior to and have priority over any other
11obligations of the Authority.
12 The Authority may provide in the ordinance authorizing the
13issuance of any bonds or notes issued pursuant to this Section
14for the creation of, deposits in, and regulation and
15disposition of sinking fund or reserve accounts relating to
16such bonds or notes. The ordinance authorizing the issuance of
17any bonds or notes pursuant to this Section may contain
18provisions as part of the contract with the holders of the
19bonds or notes, for the creation of a separate fund to provide
20for the payment of principal and interest on such bonds or
21notes and for the deposit in such fund from any or all the tax
22receipts of the Authority and from any or all such other moneys
23or revenues of the Authority from whatever source which may by
24law be utilized for debt service purposes, all as provided in
25such ordinance, of amounts to meet the debt service
26requirements on such bonds or notes, including principal and

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1interest, and any sinking fund or reserve fund account
2requirements as may be provided by such ordinance, and all
3expenses incident to or in connection with such fund and
4accounts or the payment of such bonds or notes. Such ordinance
5may also provide limitations on the issuance of additional
6bonds or notes of the Authority. No such bonds or notes of the
7Authority shall constitute a debt of the State of Illinois.
8Nothing in this Act shall be construed to enable the Authority
9to impose any ad valorem tax on property.
10 (d) The ordinance of the Authority authorizing the issuance
11of any bonds or notes may provide additional security for such
12bonds or notes by providing for appointment of a corporate
13trustee (which may be any trust company or bank having the
14powers of a trust company within the state) with respect to
15such bonds or notes. The ordinance shall prescribe the rights,
16duties and powers of the trustee to be exercised for the
17benefit of the Authority and the protection of the holders of
18such bonds or notes. The ordinance may provide for the trustee
19to hold in trust, invest and use amounts in funds and accounts
20created as provided by the ordinance with respect to the bonds
21or notes. The ordinance may provide for the assignment and
22direct payment to the trustee of any or all amounts produced
23from the sources provided in Section 4.03 and Section 4.09 of
24this Act and provided in Section 6z-17 of "An Act in relation
25to State finance", approved June 10, 1919, as amended. Upon
26receipt of notice of any such assignment, the Department of

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1Revenue and the Comptroller of the State of Illinois shall
2thereafter, notwithstanding the provisions of Section 4.03 and
3Section 4.09 of this Act and Section 6z-17 of "An Act in
4relation to State finance", approved June 10, 1919, as amended,
5provide for such assigned amounts to be paid directly to the
6trustee instead of the Authority, all in accordance with the
7terms of the ordinance making the assignment. The ordinance
8shall provide that amounts so paid to the trustee which are not
9required to be deposited, held or invested in funds and
10accounts created by the ordinance with respect to bonds or
11notes or used for paying bonds or notes to be paid by the
12trustee to the Authority.
13 (e) Any bonds or notes of the Authority issued pursuant to
14this Section shall constitute a contract between the Authority
15and the holders from time to time of such bonds or notes. In
16issuing any bond or note, the Authority may include in the
17ordinance authorizing such issue a covenant as part of the
18contract with the holders of the bonds or notes, that as long
19as such obligations are outstanding, it shall make such
20deposits, as provided in paragraph (c) of this Section. It may
21also so covenant that it shall impose and continue to impose
22taxes, as provided in Section 4.03 of this Act and in addition
23thereto as subsequently authorized by law, sufficient to make
24such deposits and pay the principal and interest and to meet
25other debt service requirements of such bonds or notes as they
26become due. A certified copy of the ordinance authorizing the

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1issuance of any such obligations shall be filed at or prior to
2the issuance of such obligations with the Comptroller of the
3State of Illinois and the Illinois Department of Revenue.
4 (f) The State of Illinois pledges to and agrees with the
5holders of the bonds and notes of the Authority issued pursuant
6to this Section that the State will not limit or alter the
7rights and powers vested in the Authority by this Act so as to
8impair the terms of any contract made by the Authority with
9such holders or in any way impair the rights and remedies of
10such holders until such bonds and notes, together with interest
11thereon, with interest on any unpaid installments of interest,
12and all costs and expenses in connection with any action or
13proceedings by or on behalf of such holders, are fully met and
14discharged. In addition, the State pledges to and agrees with
15the holders of the bonds and notes of the Authority issued
16pursuant to this Section that the State will not limit or alter
17the basis on which State funds are to be paid to the Authority
18as provided in this Act, or the use of such funds, so as to
19impair the terms of any such contract. The Authority is
20authorized to include these pledges and agreements of the State
21in any contract with the holders of bonds or notes issued
22pursuant to this Section.
23 (g)(1) Except as provided in subdivisions (g)(2) and (g)(3)
24of Section 4.04 of this Act, the Authority shall not at any
25time issue, sell or deliver any bonds or notes (other than
26Working Cash Notes) pursuant to this Section 4.04 which will

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1cause it to have issued and outstanding at any time in excess
2of $800,000,000 of such bonds and notes (other than Working
3Cash Notes). The Authority shall not issue, sell, or deliver
4any Working Cash Notes pursuant to this Section that will cause
5it to have issued and outstanding at any time in excess of
6$100,000,000. However, the Authority may issue, sell, and
7deliver additional Working Cash Notes before July 1, 2020 2018
8that are over and above and in addition to the $100,000,000
9authorization such that the outstanding amount of these
10additional Working Cash Notes does not exceed at any time
11$300,000,000. Bonds or notes which are being paid or retired by
12such issuance, sale or delivery of bonds or notes, and bonds or
13notes for which sufficient funds have been deposited with the
14paying agency of such bonds or notes to provide for payment of
15principal and interest thereon or to provide for the redemption
16thereof, all pursuant to the ordinance authorizing the issuance
17of such bonds or notes, shall not be considered to be
18outstanding for the purposes of this subsection.
19 (2) In addition to the authority provided by paragraphs (1)
20and (3), the Authority is authorized to issue, sell and deliver
21bonds or notes for Strategic Capital Improvement Projects
22approved pursuant to Section 4.13 as follows:
23 $100,000,000 is authorized to be issued on or after
24 January 1, 1990;
25 an additional $100,000,000 is authorized to be issued
26 on or after January 1, 1991;

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1 an additional $100,000,000 is authorized to be issued
2 on or after January 1, 1992;
3 an additional $100,000,000 is authorized to be issued
4 on or after January 1, 1993;
5 an additional $100,000,000 is authorized to be issued
6 on or after January 1, 1994; and
7 the aggregate total authorization of bonds and notes
8 for Strategic Capital Improvement Projects as of January 1,
9 1994, shall be $500,000,000.
10 The Authority is also authorized to issue, sell, and
11deliver bonds or notes in such amounts as are necessary to
12provide for the refunding or advance refunding of bonds or
13notes issued for Strategic Capital Improvement Projects under
14this subdivision (g)(2), provided that no such refunding bond
15or note shall mature later than the final maturity date of the
16series of bonds or notes being refunded, and provided further
17that the debt service requirements for such refunding bonds or
18notes in the current or any future fiscal year shall not exceed
19the debt service requirements for that year on the refunded
20bonds or notes.
21 (3) In addition to the authority provided by paragraphs (1)
22and (2), the Authority is authorized to issue, sell, and
23deliver bonds or notes for Strategic Capital Improvement
24Projects approved pursuant to Section 4.13 as follows:
25 $260,000,000 is authorized to be issued on or after
26 January 1, 2000;

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1 an additional $260,000,000 is authorized to be issued
2 on or after January 1, 2001;
3 an additional $260,000,000 is authorized to be issued
4 on or after January 1, 2002;
5 an additional $260,000,000 is authorized to be issued
6 on or after January 1, 2003;
7 an additional $260,000,000 is authorized to be issued
8 on or after January 1, 2004; and
9 the aggregate total authorization of bonds and notes
10 for Strategic Capital Improvement Projects pursuant to
11 this paragraph (3) as of January 1, 2004 shall be
12 $1,300,000,000.
13 The Authority is also authorized to issue, sell, and
14deliver bonds or notes in such amounts as are necessary to
15provide for the refunding or advance refunding of bonds or
16notes issued for Strategic Capital Improvement projects under
17this subdivision (g)(3), provided that no such refunding bond
18or note shall mature later than the final maturity date of the
19series of bonds or notes being refunded, and provided further
20that the debt service requirements for such refunding bonds or
21notes in the current or any future fiscal year shall not exceed
22the debt service requirements for that year on the refunded
23bonds or notes.
24 (h) The Authority, subject to the terms of any agreements
25with noteholders or bond holders as may then exist, shall have
26power, out of any funds available therefor, to purchase notes

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1or bonds of the Authority, which shall thereupon be cancelled.
2 (i) In addition to any other authority granted by law, the
3State Treasurer may, with the approval of the Governor, invest
4or reinvest, at a price not to exceed par, any State money in
5the State Treasury which is not needed for current expenditures
6due or about to become due in Working Cash Notes.
7(Source: P.A. 98-392, eff. 8-16-13; 99-238, eff. 8-3-15.)
8 Section 99. Effective date. This Act takes effect upon
9becoming law.
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