Bill Text: IL SB1697 | 2021-2022 | 102nd General Assembly | Enrolled


Bill Title: Reinserts the provisions of the engrossed bill with changes. Provides that the requirements established under the Grant Accountability and Transparency Act do not apply to allocations of State revenues paid over by the Comptroller to units of local government and other taxing districts pursuant to the State Revenue Sharing Act from the Local Government Distributive Fund or the Personal Property Tax Replacement Fund, or to allotments of State motor fuel tax revenues distributed by the Department of Transportation to units of local government pursuant to the Motor Fuel Tax Law from the Motor Fuel Tax Fund or the Transportation Renewal Fund. Amends the Downstate Public Transportation Act. Provides that commencing with State fiscal year 2022 programs, and for each fiscal year thereafter, all appropriations made under the provisions of the Act shall not constitute a grant program subject to the requirements of the Grant Accountability and Transparency Act. Provides that the Department of Transportation shall approve programs of proposed expenditures and services submitted by participants under specified provisions. Provides that in the event the Department is prevented from processing applications or certifying that a participant meets specified requirements due to extraordinary circumstances beyond its control, the certification deadline for that application shall be stayed until the Department is able to process and certify the same. Provides that notice from the Department, as well as an explanation of the extraordinary circumstances, shall be provided to each participant affected by such delay. Provides for the adoption of rules to govern participants. Provides requirements for participant applications for funding concerning a program of proposed expenditures and services. Provides additional requirements for specified units of local government when applying for the approval of the program of proposed expenditures and services. Specifies further requirements for participants to receive funding. Makes conforming changes. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Enrolled) 2021-06-30 - Sent to the Governor [SB1697 Detail]

Download: Illinois-2021-SB1697-Enrolled.html



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1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Grant Accountability and Transparency Act
5is amended by changing Sections 20, 25, and 45 as follows:
6 (30 ILCS 708/20)
7 Sec. 20. Adoption of federal rules applicable to grants.
8 (a) On or before July 1, 2016, the Governor's Office of
9Management and Budget, with the advice and technical
10assistance of the Illinois Single Audit Commission, shall
11adopt rules which adopt the Uniform Guidance at 2 CFR 200. The
12rules, which shall apply to all State and federal pass-through
13awards effective on and after July 1, 2016, shall include the
14following:
15 (1) Administrative requirements. In accordance with
16 Subparts B through D of 2 CFR 200, the rules shall set
17 forth the uniform administrative requirements for grant
18 and cooperative agreements, including the requirements for
19 the management by State awarding agencies of federal grant
20 programs before State and federal pass-through awards have
21 been made and requirements that State awarding agencies
22 may impose on non-federal entities in State and federal
23 pass-through awards.

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1 (2) Cost principles. In accordance with Subpart E of 2
2 CFR 200, the rules shall establish principles for
3 determining the allowable costs incurred by non-federal
4 entities under State and federal pass-through awards. The
5 principles are intended for cost determination, but are
6 not intended to identify the circumstances or dictate the
7 extent of State or federal pass-through participation in
8 financing a particular program or project. The principles
9 shall provide that State and federal awards bear their
10 fair share of cost recognized under these principles,
11 except where restricted or prohibited by State or federal
12 law.
13 (3) Audit and single audit requirements and audit
14 follow-up. In accordance with Subpart F of 2 CFR 200 and
15 the federal Single Audit Act Amendments of 1996, the rules
16 shall set forth standards to obtain consistency and
17 uniformity among State and federal pass-through awarding
18 agencies for the audit of non-federal entities expending
19 State and federal awards. These provisions shall also set
20 forth the policies and procedures for State and federal
21 pass-through entities when using the results of these
22 audits.
23 The provisions of this item (3) do not apply to
24 for-profit subrecipients because for-profit subrecipients
25 are not subject to the requirements of 2 CFR 200, Subpart
26 F, Audits of States, Local and Non-Profit Organizations.

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1 Audits of for-profit subrecipients must be conducted
2 pursuant to a Program Audit Guide issued by the Federal
3 awarding agency. If a Program Audit Guide is not
4 available, the State awarding agency must prepare a
5 Program Audit Guide in accordance with the 2 CFR 200,
6 Subpart F Audit Requirements - Compliance Supplement.
7 For-profit entities are subject to all other general
8 administrative requirements and cost principles applicable
9 to grants.
10 (b) This Act addresses only State and federal pass-through
11auditing functions and does not address the external audit
12function of the Auditor General.
13 (c) For public institutions of higher education, the
14provisions of this Section apply only to awards funded by
15State appropriations and federal pass-through awards from a
16State agency to public institutions of higher education.
17Federal pass-through awards from a State agency to public
18institutions of higher education are governed by and must
19comply with federal guidelines under 2 CFR 200.
20 (d) The State grant-making agency is responsible for
21establishing requirements, as necessary, to ensure compliance
22by for-profit subrecipients. The agreement with the for-profit
23subrecipient shall describe the applicable compliance
24requirements and the for-profit subrecipient's compliance
25responsibility. Methods to ensure compliance for State and
26federal pass-through awards made to for-profit subrecipients

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1shall include pre-award, audits, monitoring during the
2agreement, and post-award audits. The Governor's Office of
3Management and Budget shall provide such advice and technical
4assistance to the State grant-making agency as is necessary or
5indicated.
6(Source: P.A. 99-523, eff. 6-30-16; 100-676, eff. 1-1-19.)
7 (30 ILCS 708/25)
8 Sec. 25. Supplemental rules. On or before July 1, 2017,
9the Governor's Office of Management and Budget, with the
10advice and technical assistance of the Illinois Single Audit
11Commission, shall adopt supplemental rules pertaining to the
12following:
13 (1) Criteria to define mandatory formula-based grants
14 and discretionary grants.
15 (2) The award of one-year grants for new applicants.
16 (3) The award of competitive grants in 3-year terms
17 (one-year initial terms with the option to renew for up to
18 2 additional years) to coincide with the federal award.
19 (4) The issuance of grants, including:
20 (A) public notice of announcements of funding
21 opportunities;
22 (B) the development of uniform grant applications;
23 (C) State agency review of merit of proposals and
24 risk posed by applicants;
25 (D) specific conditions for individual recipients

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1 (including the use of a fiscal agent and additional
2 corrective conditions);
3 (E) certifications and representations;
4 (F) pre-award costs;
5 (G) performance measures and statewide prioritized
6 goals under Section 50-25 of the State Budget Law of
7 the Civil Administrative Code of Illinois, commonly
8 referred to as "Budgeting for Results"; and
9 (H) for mandatory formula grants, the merit of the
10 proposal and the risk posed should result in
11 additional reporting, monitoring, or measures such as
12 reimbursement-basis only.
13 (5) The development of uniform budget requirements,
14 which shall include:
15 (A) mandatory submission of budgets as part of the
16 grant application process;
17 (B) mandatory requirements regarding contents of
18 the budget including, at a minimum, common detail line
19 items specified under guidelines issued by the
20 Governor's Office of Management and Budget;
21 (C) a requirement that the budget allow
22 flexibility to add lines describing costs that are
23 common for the services provided as outlined in the
24 grant application;
25 (D) a requirement that the budget include
26 information necessary for analyzing cost and

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1 performance for use in Budgeting for Results; and
2 (E) caps on the amount of salaries that may be
3 charged to grants based on the limitations imposed by
4 federal agencies.
5 (6) The development of pre-qualification requirements
6 for applicants, including the fiscal condition of the
7 organization and the provision of the following
8 information:
9 (A) organization name;
10 (B) Federal Employee Identification Number;
11 (C) Data Universal Numbering System (DUNS) number;
12 (D) fiscal condition;
13 (E) whether the applicant is in good standing with
14 the Secretary of State;
15 (F) past performance in administering grants;
16 (G) whether the applicant is on the Debarred and
17 Suspended List maintained by the Governor's Office of
18 Management and Budget;
19 (H) whether the applicant is on the federal
20 Excluded Parties List; and
21 (I) whether the applicant is on the Sanctioned
22 Party List maintained by the Illinois Department of
23 Healthcare and Family Services.
24 Nothing in this Act affects the provisions of the Fiscal
25Control and Internal Auditing Act nor the requirement that the
26management of each State agency is responsible for maintaining

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1effective internal controls under that Act.
2 For public institutions of higher education, the
3provisions of this Section apply only to awards funded by
4State appropriations and federal pass-through awards from a
5State agency to public institutions of higher education.
6(Source: P.A. 100-676, eff. 1-1-19; 100-997, eff. 8-20-18;
7101-81, eff. 7-12-19.)
8 (30 ILCS 708/45)
9 Sec. 45. Applicability.
10 (a) Except as otherwise provided in this Section, the The
11requirements established under this Act apply to State
12grant-making agencies that make State and federal pass-through
13awards to non-federal entities. These requirements apply to
14all costs related to State and federal pass-through awards.
15The requirements established under this Act do not apply to
16private awards, to allocations of State revenues paid over by
17the Comptroller to units of local government and other taxing
18districts pursuant to the State Revenue Sharing Act from the
19Local Government Distributive Fund or the Personal Property
20Tax Replacement Fund, or to allotments of State motor fuel tax
21revenues distributed by the Department of Transportation to
22units of local government pursuant to the Motor Fuel Tax Law
23from the Motor Fuel Tax Fund or the Transportation Renewal
24Fund.
25 (a-5) Nothing in this Act shall prohibit the use of State

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1funds for purposes of federal match or maintenance of effort.
2 (b) The terms and conditions of State, federal, and
3pass-through awards apply to subawards and subrecipients
4unless a particular Section of this Act or the terms and
5conditions of the State or federal award specifically indicate
6otherwise. Non-federal entities shall comply with requirements
7of this Act regardless of whether the non-federal entity is a
8recipient or subrecipient of a State or federal pass-through
9award. Pass-through entities shall comply with the
10requirements set forth under the rules adopted under
11subsection (a) of Section 20 of this Act, but not to any
12requirements in this Act directed towards State or federal
13awarding agencies, unless the requirements of the State or
14federal awards indicate otherwise.
15 When a non-federal entity is awarded a cost-reimbursement
16contract, only 2 CFR 200.330 through 200.332 are incorporated
17by reference into the contract. However, when the Cost
18Accounting Standards are applicable to the contract, they take
19precedence over the requirements of this Act unless they are
20in conflict with Subpart F of 2 CFR 200. In addition, costs
21that are made unallowable under 10 U.S.C. 2324(e) and 41
22U.S.C. 4304(a), as described in the Federal Acquisition
23Regulations, subpart 31.2 and subpart 31.603, are always
24unallowable. For requirements other than those covered in
25Subpart D of 2 CFR 200.330 through 200.332, the terms of the
26contract and the Federal Acquisition Regulations apply.

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1 With the exception of Subpart F of 2 CFR 200, which is
2required by the Single Audit Act, in any circumstances where
3the provisions of federal statutes or regulations differ from
4the provisions of this Act, the provision of the federal
5statutes or regulations govern. This includes, for agreements
6with Indian tribes, the provisions of the Indian
7Self-Determination and Education and Assistance Act, as
8amended, 25 U.S.C. 450-458ddd-2.
9 (c) State grant-making agencies may apply subparts A
10through E of 2 CFR 200 to for-profit entities, foreign public
11entities, or foreign organizations, except where the awarding
12agency determines that the application of these subparts would
13be inconsistent with the international obligations of the
14United States or the statute or regulations of a foreign
15government.
16 (d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
17different types of awards. The same applicability applies to
18this Act.
19 (e) (Blank).
20 (f) For public institutions of higher education, the
21provisions of this Act apply only to awards funded by State
22appropriations and federal pass-through awards from a State
23agency to public institutions of higher education. This Act
24shall recognize provisions in 2 CFR 200 as applicable to
25public institutions of higher education, including Appendix
26III of Part 200 and the cost principles under Subpart E.

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1 (g) Each grant-making agency shall enhance its processes
2to monitor and address noncompliance with reporting
3requirements and with program performance standards. Where
4applicable, the process may include a corrective action plan.
5The monitoring process shall include a plan for tracking and
6documenting performance-based contracting decisions.
7(Source: P.A. 100-676, eff. 1-1-19; 100-863, eff. 8-14-18;
8101-81, eff. 7-12-19.)
9 Section 10. The Downstate Public Transportation Act is
10amended by changing Sections 2-3, 2-4, 2-5, 2-5.1, 2-7, 2-9,
112-10, 2-11, 2-12, 2-13, 2-14, 2-15.2, 2-15.3, and 2-17 as
12follows:
13 (30 ILCS 740/2-3) (from Ch. 111 2/3, par. 663)
14 Sec. 2-3. (a) As soon as possible after the first day of
15each month, beginning July 1, 1984, upon certification of the
16Department of Revenue, the Comptroller shall order
17transferred, and the Treasurer shall transfer, from the
18General Revenue Fund to a special fund in the State Treasury
19which is hereby created, to be known as the Downstate Public
20Transportation Fund, an amount equal to 2/32 (beginning July
211, 2005, 3/32) of the net revenue realized from the Retailers'
22Occupation Tax Act, the Service Occupation Tax Act, the Use
23Tax Act, and the Service Use Tax Act from persons incurring
24municipal or county retailers' or service occupation tax

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1liability for the benefit of any municipality or county
2located wholly within the boundaries of each participant,
3other than any Metro-East Transit District participant
4certified pursuant to subsection (c) of this Section during
5the preceding month, except that the Department shall pay into
6the Downstate Public Transportation Fund 2/32 (beginning July
71, 2005, 3/32) of 80% of the net revenue realized under the
8State tax Acts named above within any municipality or county
9located wholly within the boundaries of each participant,
10other than any Metro-East participant, for tax periods
11beginning on or after January 1, 1990. Net revenue realized
12for a month shall be the revenue collected by the State
13pursuant to such Acts during the previous month from persons
14incurring municipal or county retailers' or service occupation
15tax liability for the benefit of any municipality or county
16located wholly within the boundaries of a participant, less
17the amount paid out during that same month as refunds or credit
18memoranda to taxpayers for overpayment of liability under such
19Acts for the benefit of any municipality or county located
20wholly within the boundaries of a participant.
21 Notwithstanding any provision of law to the contrary,
22beginning on July 6, 2017 (the effective date of Public Act
23100-23), those amounts required under this subsection (a) to
24be transferred by the Treasurer into the Downstate Public
25Transportation Fund from the General Revenue Fund shall be
26directly deposited into the Downstate Public Transportation

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1Fund as the revenues are realized from the taxes indicated.
2 (b) As soon as possible after the first day of each month,
3beginning July 1, 1989, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, from the General Revenue Fund to a
6special fund in the State Treasury which is hereby created, to
7be known as the Metro-East Public Transportation Fund, an
8amount equal to 2/32 of the net revenue realized, as above,
9from within the boundaries of Madison, Monroe, and St. Clair
10Counties, except that the Department shall pay into the
11Metro-East Public Transportation Fund 2/32 of 80% of the net
12revenue realized under the State tax Acts specified in
13subsection (a) of this Section within the boundaries of
14Madison, Monroe and St. Clair Counties for tax periods
15beginning on or after January 1, 1990. A local match
16equivalent to an amount which could be raised by a tax levy at
17the rate of .05% on the assessed value of property within the
18boundaries of Madison County is required annually to cause a
19total of 2/32 of the net revenue to be deposited in the
20Metro-East Public Transportation Fund. Failure to raise the
21required local match annually shall result in only 1/32 being
22deposited into the Metro-East Public Transportation Fund after
23July 1, 1989, or 1/32 of 80% of the net revenue realized for
24tax periods beginning on or after January 1, 1990.
25 (b-5) As soon as possible after the first day of each
26month, beginning July 1, 2005, upon certification of the

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1Department of Revenue, the Comptroller shall order
2transferred, and the Treasurer shall transfer, from the
3General Revenue Fund to the Downstate Public Transportation
4Fund, an amount equal to 3/32 of 80% of the net revenue
5realized from within the boundaries of Monroe and St. Clair
6Counties under the State Tax Acts specified in subsection (a)
7of this Section and provided further that, beginning July 1,
82005, the provisions of subsection (b) shall no longer apply
9with respect to such tax receipts from Monroe and St. Clair
10Counties.
11 Notwithstanding any provision of law to the contrary,
12beginning on July 6, 2017 (the effective date of Public Act
13100-23), those amounts required under this subsection (b-5) to
14be transferred by the Treasurer into the Downstate Public
15Transportation Fund from the General Revenue Fund shall be
16directly deposited into the Downstate Public Transportation
17Fund as the revenues are realized from the taxes indicated.
18 (b-6) As soon as possible after the first day of each
19month, beginning July 1, 2008, upon certification by the
20Department of Revenue, the Comptroller shall order transferred
21and the Treasurer shall transfer, from the General Revenue
22Fund to the Downstate Public Transportation Fund, an amount
23equal to 3/32 of 80% of the net revenue realized from within
24the boundaries of Madison County under the State Tax Acts
25specified in subsection (a) of this Section and provided
26further that, beginning July 1, 2008, the provisions of

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1subsection (b) shall no longer apply with respect to such tax
2receipts from Madison County.
3 Notwithstanding any provision of law to the contrary,
4beginning on July 6, 2017 (the effective date of Public Act
5100-23), those amounts required under this subsection (b-6) to
6be transferred by the Treasurer into the Downstate Public
7Transportation Fund from the General Revenue Fund shall be
8directly deposited into the Downstate Public Transportation
9Fund as the revenues are realized from the taxes indicated.
10 (b-7) Beginning July 1, 2018, notwithstanding the other
11provisions of this Section, instead of the Comptroller making
12monthly transfers from the General Revenue Fund to the
13Downstate Public Transportation Fund, the Department of
14Revenue shall deposit the designated fraction of the net
15revenue realized from collections under the Retailers'
16Occupation Tax Act, the Service Occupation Tax Act, the Use
17Tax Act, and the Service Use Tax Act directly into the
18Downstate Public Transportation Fund.
19 (c) The Department shall certify to the Department of
20Revenue the eligible participants under this Article and the
21territorial boundaries of such participants for the purposes
22of the Department of Revenue in subsections (a) and (b) of this
23Section.
24 (d) For the purposes of this Article, beginning in fiscal
25year 2009 the General Assembly shall appropriate an amount
26from the Downstate Public Transportation Fund equal to the sum

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1total of funds projected to be paid to the participants
2pursuant to Section 2-7. If the General Assembly fails to make
3appropriations sufficient to cover the amounts projected to be
4paid pursuant to Section 2-7, this Act shall constitute an
5irrevocable and continuing appropriation from the Downstate
6Public Transportation Fund of all amounts necessary for those
7purposes.
8 (e) (Blank).
9 (f) (Blank).
10 (g) (Blank).
11 (h) For State fiscal year 2020 only, notwithstanding any
12provision of law to the contrary, the total amount of revenue
13and deposits under this Section attributable to revenues
14realized during State fiscal year 2020 shall be reduced by 5%.
15 (i) For State fiscal year 2021 only, notwithstanding any
16provision of law to the contrary, the total amount of revenue
17and deposits under this Section attributable to revenues
18realized during State fiscal year 2021 shall be reduced by 5%.
19 (j) Commencing with State fiscal year 2022 programs, and
20for each fiscal year thereafter, all appropriations made under
21the provisions of this Act shall not constitute a grant
22program subject to the requirements of the Grant
23Accountability and Transparency Act. The Department shall
24approve programs of proposed expenditures and services
25submitted by participants under the requirements of Sections
262-5 and 2-11.

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1(Source: P.A. 100-23, eff. 7-6-17; 100-363, eff. 7-1-18;
2100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-10, eff.
36-5-19; 101-636, eff. 6-10-20.)
4 (30 ILCS 740/2-4) (from Ch. 111 2/3, par. 664)
5 Sec. 2-4. The Department shall establish forms for the
6reporting of projected and actual operating deficits and
7expenses and other required information by the participants,
8and has the power to promulgate rules and regulations for the
9filing of such reports within the limitations set out in
10Sections 2-5, 2-6 and 2-7. Each participant shall be governed
11by the rules and regulations established under this Section.
12(Source: P.A. 82-783.)
13 (30 ILCS 740/2-5) (from Ch. 111 2/3, par. 665)
14 Sec. 2-5. Applications.
15 (a) Through State fiscal year 2021, each Each participant
16making application for grants pursuant to this Article shall
17submit to the Department at the time of making such
18application, on forms provided by the Department: (1) (a) an
19estimate of projected operating deficits and a separate
20statement of eligible operating expenses and an estimate of
21all projected operating income or revenues; and (2) (b) a
22program of proposed expenditures; all such submittals to be
23for the period of such grant. The program of proposed
24expenditures shall be directly related to the operation,

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1maintenance or improvement of an existing system of public
2transportation serving the residents of the participant, and
3shall include the proposed expenditures for eligible operating
4expenses.
5 For Fiscal Year 1980 grant applications shall be submitted
6to the Department within 60 days of the effective date of this
7amendatory Act of 1979. Beginning with Fiscal Year 1981 and
8thereafter, grant applications shall be submitted to the
9Department by April 1 of the preceding fiscal year.
10 (b) For Fiscal Year 2022 applications for funding, and for
11each fiscal year thereafter, each participant making
12application for funding shall submit to the Department by
13April 1 of the preceding fiscal year, a program of proposed
14expenditures and services on forms provided by the Department,
15consisting of the following information: (1) an estimate of
16projected operating deficits and a separate statement of
17eligible operating expenses and an estimate of all projected
18operating income or revenues; and (2) a program of proposed
19expenditures and services; all such submittals to be for the
20period of such project. The program of proposed expenditures
21and services shall be directly related to the operation,
22maintenance, or improvement of an existing system of public
23transportation serving the residents of the participant, and
24shall include the proposed expenditures and services for
25eligible operating expenses.
26(Source: P.A. 82-783.)

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1 (30 ILCS 740/2-5.1)
2 Sec. 2-5.1. Additional requirements.
3 (a) Through State fiscal year 2021, any Any unit of local
4government that becomes a participant on or after the
5effective date of this amendatory Act of the 94th General
6Assembly shall, in addition to any other requirements under
7this Article, meet all of the following requirements when
8applying for grants under this Article:
9 (1) The grant application must demonstrate the
10 participant's plan to provide general public
11 transportation with an emphasis on persons with
12 disabilities and elderly and economically disadvantaged
13 populations.
14 (2) The grant application must demonstrate the
15 participant's plan for interagency coordination that, at a
16 minimum, allows the participation of all State-funded and
17 federally-funded agencies and programs with transportation
18 needs in the proposed service area in the development of
19 the applicant's public transportation program.
20 (3) Any participant serving a nonurbanized area that
21 is not receiving Federal Section 5311 funding must meet
22 the operating and safety compliance requirements as set
23 forth in that federal program.
24 (4) The participant is required to hold public
25 hearings to allow comment on the proposed service plan in

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1 all municipalities with populations of 1,500 inhabitants
2 or more within the proposed service area.
3 (a-5) Any unit of local government that becomes a
4participant on or after the effective date of this amendatory
5Act of the 102nd General Assembly shall, in addition to any
6other requirements under this Article, meet all of the
7following requirements when applying for the approval of the
8program of proposed expenditures and services under this
9Article:
10 (1) The program of proposed expenditures and services
11 must demonstrate the participant's plan to provide general
12 public transportation with an emphasis on persons with
13 disabilities and elderly and economically disadvantaged
14 populations.
15 (2) The program of proposed expenditures and services
16 must demonstrate the participant's plan for interagency
17 coordination that, at a minimum, allows the participation
18 of all State-funded and federally-funded agencies and
19 programs with transportation needs in the proposed service
20 area in the development of the applicant's public
21 transportation program.
22 (3) Any participant serving a non-urbanized area that
23 is not receiving Federal Section 5311 Program funding must
24 meet the operating and safety compliance requirements as
25 set forth in that federal program.
26 (4) The participant is required to hold public

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1 hearings to allow comment on the proposed service plan in
2 all municipalities with populations of 1,500 inhabitants
3 or more within the proposed service area.
4 (b) Service extensions by any participant after July 1,
52005 by either annexation or intergovernmental agreement must
6meet the 4 requirements of subsection (a).
7 (c) In order to receive funding, the Department shall
8certify that the participant has met the requirements of this
9Section. Funding priority shall be given to service extension,
10multi-county, and multi-jurisdictional projects.
11 (d) The Department shall develop an annual application
12process for existing or potential participants to request an
13initial appropriation or an appropriation exceeding the
14formula amount found in subsection (b-10) of Section 2-7 for
15funding service in new areas in the next fiscal year. The
16application shall include, but not be limited to, a
17description of the new service area, proposed service in the
18new area, and a budget for providing existing and new service.
19The Department shall review the application for reasonableness
20and compliance with the requirements of this Section, and, if
21it approves the application, shall recommend to the Governor
22an appropriation for the next fiscal year in an amount
23sufficient to provide 65% of projected eligible operating
24expenses associated with a new participant's service area or
25the portion of an existing participant's service area that has
26been expanded by annexation or intergovernmental agreement.

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1The recommended appropriation for the next fiscal year may
2exceed the formula amount found in subsection (b-10) of
3Section 2-7.
4(Source: P.A. 99-143, eff. 7-27-15.)
5 (30 ILCS 740/2-7) (from Ch. 111 2/3, par. 667)
6 Sec. 2-7. Quarterly reports; annual audit.
7 (a) Any Metro-East Transit District participant shall, no
8later than 60 days following the end of each quarter of any
9fiscal year, file with the Department on forms provided by the
10Department for that purpose, a report of the actual operating
11deficit experienced during that quarter. The Department shall,
12upon receipt of the quarterly report, determine whether the
13operating deficits were incurred in conformity with the
14program of proposed expenditures and services approved by the
15Department pursuant to Section 2-11. Any Metro-East District
16may either monthly or quarterly for any fiscal year file a
17request for the participant's eligible share, as allocated in
18accordance with Section 2-6, of the amounts transferred into
19the Metro-East Public Transportation Fund.
20 (b) Each participant other than any Metro-East Transit
21District participant shall, 30 days before the end of each
22quarter, file with the Department on forms provided by the
23Department for such purposes a report of the projected
24eligible operating expenses to be incurred in the next quarter
25and 30 days before the third and fourth quarters of any fiscal

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1year a statement of actual eligible operating expenses
2incurred in the preceding quarters. Except as otherwise
3provided in subsection (b-5), within 45 days of receipt by the
4Department of such quarterly report, the Comptroller shall
5order paid and the Treasurer shall pay from the Downstate
6Public Transportation Fund to each participant an amount equal
7to one-third of such participant's eligible operating
8expenses; provided, however, that in Fiscal Year 1997, the
9amount paid to each participant from the Downstate Public
10Transportation Fund shall be an amount equal to 47% of such
11participant's eligible operating expenses and shall be
12increased to 49% in Fiscal Year 1998, 51% in Fiscal Year 1999,
1353% in Fiscal Year 2000, 55% in Fiscal Years 2001 through 2007,
14and 65% in Fiscal Year 2008 and thereafter; however, in any
15year that a participant receives funding under subsection (i)
16of Section 2705-305 of the Department of Transportation Law
17(20 ILCS 2705/2705-305), that participant shall be eligible
18only for assistance equal to the following percentage of its
19eligible operating expenses: 42% in Fiscal Year 1997, 44% in
20Fiscal Year 1998, 46% in Fiscal Year 1999, 48% in Fiscal Year
212000, and 50% in Fiscal Year 2001 and thereafter. Any such
22payment for the third and fourth quarters of any fiscal year
23shall be adjusted to reflect actual eligible operating
24expenses for preceding quarters of such fiscal year. However,
25no participant shall receive an amount less than that which
26was received in the immediate prior year, provided in the

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1event of a shortfall in the fund those participants receiving
2less than their full allocation pursuant to Section 2-6 of
3this Article shall be the first participants to receive an
4amount not less than that received in the immediate prior
5year.
6 (b-5) (Blank.)
7 (b-10) On July 1, 2008, each participant shall receive an
8appropriation in an amount equal to 65% of its fiscal year 2008
9eligible operating expenses adjusted by the annual 10%
10increase required by Section 2-2.04 of this Act. In no case
11shall any participant receive an appropriation that is less
12than its fiscal year 2008 appropriation. Every fiscal year
13thereafter, each participant's appropriation shall increase by
1410% over the appropriation established for the preceding
15fiscal year as required by Section 2-2.04 of this Act.
16 (b-15) Beginning on July 1, 2007, and for each fiscal year
17thereafter, each participant shall maintain a minimum local
18share contribution (from farebox and all other local revenues)
19equal to the actual amount provided in Fiscal Year 2006 or, for
20new recipients, an amount equivalent to the local share
21provided in the first year of participation. The local share
22contribution shall be reduced by an amount equal to the total
23amount of lost revenue for services provided under Section
242-15.2 and Section 2-15.3 of this Act.
25 (b-20) Any participant in the Downstate Public
26Transportation Fund may use State operating assistance funding

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1pursuant to this Section to provide transportation services
2within any county that is contiguous to its territorial
3boundaries as defined by the Department and subject to
4Departmental approval. Any such contiguous-area service
5provided by a participant after July 1, 2007 must meet the
6requirements of subsection (a) of Section 2-5.1.
7 (c) No later than 180 days following the last day of the
8Fiscal Year each participant shall provide the Department with
9an audit prepared by a Certified Public Accountant covering
10that Fiscal Year. For those participants other than a
11Metro-East Transit District, any discrepancy between the funds
12grants paid and the percentage of the eligible operating
13expenses provided for by paragraph (b) of this Section shall
14be reconciled by appropriate payment or credit. In the case of
15any Metro-East Transit District, any amount of payments from
16the Metro-East Public Transportation Fund which exceed the
17eligible deficit of the participant shall be reconciled by
18appropriate payment or credit.
19(Source: P.A. 94-70, eff. 6-22-05; 95-708, eff. 1-18-08;
2095-906, eff. 8-26-08.)
21 (30 ILCS 740/2-9) (from Ch. 111 2/3, par. 669)
22 Sec. 2-9. Each program of proposed expenditures and
23services shall, in the case of a system of public
24transportation owned and operated by a participant, undertake
25to meet operating deficits directly. The purchase of service

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1agreements with a provider of public transportation services
2shall constitute an eligible expense Grants to a participant
3may be made for services provided through purchase of service
4agreements with a provider of public transportation services.
5(Source: P.A. 82-783.)
6 (30 ILCS 740/2-10) (from Ch. 111 2/3, par. 670)
7 Sec. 2-10. Cooperative projects. Nothing in this Act shall
8prohibit any participant from including in a program of
9proposed expenditures and services funding for a portion of a
10cooperative public transportation project or purpose, the
11total cost of which is shared among one or more other
12participants or other financial contributors, as long as the
13residents of the participant are served by any such project or
14purpose.
15(Source: P.A. 82-783.)
16 (30 ILCS 740/2-11) (from Ch. 111 2/3, par. 671)
17 Sec. 2-11. The Department shall review and approve or
18disapprove within 45 days of receipt each program of proposed
19expenditures and services submitted by any participant
20pursuant to the provisions of Section 2-5. Notwithstanding the
21above, in the event the Department is prevented from
22processing applications or certifying that a participant meets
23the requirements of this Section due to extraordinary
24circumstances beyond its control, the certification deadline

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1for that application shall be stayed until the Department is
2able to process and certify the same. Notice from the
3Department, as well as an explanation of the extraordinary
4circumstances, shall be provided to each participant affected
5by such delay. The Department may disapprove a program of
6proposed expenditures and services or portions thereof only
7for the following reasons:
8 (a) A finding that expenditures are proposed for projects
9or purposes which are not in compliance with Section 2-5; or
10 (b) A finding that expenditures are proposed for projects
11or purposes which are in conflict with established
12comprehensive transportation plans for a participant or a
13region of which it is a part; or
14 (c) In Fiscal Year 1980, with regard to the participants
15which have not received State operating assistance prior to
16the effective date of this amendatory Act of 1979, a finding by
17the Department that a proposed program submitted by such
18participant or any portion thereof is not in the public
19interest in that levels or kinds of service proposed exceeds
20the reasonable needs of the community served by such
21participant as demonstrated in the transportation development
22plan for such community or other studies and information
23available to the Department.
24(Source: P.A. 82-783.)
25 (30 ILCS 740/2-12) (from Ch. 111 2/3, par. 672)

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1 Sec. 2-12. Disapproval of program. Upon disapproval of any
2program of proposed expenditures and services, the Department
3shall so notify the chief official of the participant having
4submitted such program, setting forth in detail the reasons
5for such disapproval. Thereupon, any such participant shall
6have 45 days from the date of receipt of such notice of
7disapproval by the Department to submit to the Department one
8or more amended programs of proposed expenditures and
9services.
10(Source: P.A. 82-783.)
11 (30 ILCS 740/2-13) (from Ch. 111 2/3, par. 673)
12 Sec. 2-13. Review of amended programs. The Department
13shall review each amended program of proposed expenditures and
14services submitted to it pursuant to the provisions of Section
152-12 and may disapprove any such amended program of proposed
16expenditures and services only for the reasons and in the same
17fashion set forth in Section 2-11.
18(Source: P.A. 82-783.)
19 (30 ILCS 740/2-14) (from Ch. 111 2/3, par. 674)
20 Sec. 2-14. Grants.
21 (a) Upon a determination by the Department that any
22initial or amended program of proposed expenditures is in
23compliance with the provisions of this Act, and upon approval
24thereof, the Department shall enter into one or more grant

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1agreements with and shall make grants to that participant as
2necessary to implement the adopted program of expenditures.
3 (b) All grants by the Department pursuant to this Act
4shall be administered upon such conditions as the Secretary of
5Transportation shall determine, consistent with the provisions
6and purpose of this Act.
7 (c) For State fiscal year 2022 or any fiscal year
8thereafter, upon a determination by the Department that any
9initial or amended program of proposed expenditure is in
10compliance with the provisions of this Act, and upon approval
11thereof, the Department shall enter into one or more
12agreements with the participant and shall obligate for payment
13to that participant as necessary to implement the adopted
14program of expenditure.
15(Source: P.A. 82-783.)
16 (30 ILCS 740/2-15.2)
17 Sec. 2-15.2. Free services; eligibility.
18 (a) Notwithstanding any law to the contrary, no later than
1960 days following the effective date of this amendatory Act of
20the 95th General Assembly and until subsection (b) is
21implemented, any fixed route public transportation services
22provided by, or under grant or purchase of service contracts
23of, every participant, as defined in Section 2-2.02 (1)(a),
24shall be provided without charge to all senior citizen
25residents of the participant aged 65 and older, under such

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1conditions as shall be prescribed by the participant.
2 (b) Notwithstanding any law to the contrary, no later than
3180 days following the effective date of this amendatory Act
4of the 96th General Assembly, but only through State fiscal
5year 2021, any fixed route public transportation services
6provided by, or under grant or purchase of service contracts
7of, every participant, as defined in Section 2-2.02 (1)(a),
8shall be provided without charge to senior citizens aged 65
9and older who meet the income eligibility limitation set forth
10in subsection (a-5) of Section 4 of the Senior Citizens and
11Persons with Disabilities Property Tax Relief Act, under such
12conditions as shall be prescribed by the participant. The
13Department on Aging shall furnish all information reasonably
14necessary to determine eligibility, including updated lists of
15individuals who are eligible for services without charge under
16this Section. Nothing in this Section shall relieve the
17participant from providing reduced fares as may be required by
18federal law.
19(Source: P.A. 99-143, eff. 7-27-15.)
20 (30 ILCS 740/2-15.3)
21 Sec. 2-15.3. Transit services for individuals with
22disabilities. Notwithstanding any law to the contrary, no
23later than 60 days following the effective date of this
24amendatory Act of the 95th General Assembly, but only through
25State fiscal year 2021, all fixed route public transportation

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1services provided by, or under grant or purchase of service
2contract of, any participant shall be provided without charge
3to all persons with disabilities who meet the income
4eligibility limitation set forth in subsection (a-5) of
5Section 4 of the Senior Citizens and Persons with Disabilities
6Property Tax Relief Act, under such procedures as shall be
7prescribed by the participant. The Department on Aging shall
8furnish all information reasonably necessary to determine
9eligibility, including updated lists of individuals who are
10eligible for services without charge under this Section.
11(Source: P.A. 99-143, eff. 7-27-15.)
12 (30 ILCS 740/2-17) (from Ch. 111 2/3, par. 678)
13 Sec. 2-17. County authorization to provide public
14transportation and to receive funds from appropriations to
15apply for funding grants in connection therewith. (a) Any
16county or counties may, by ordinance, operate or otherwise
17provide for public transportation within such county or
18counties. In order to so provide for such public
19transportation, any county or counties may enter into
20agreements with any individual, corporation or other person or
21private or public entity to operate or otherwise assist in the
22provision of such public transportation services. Upon the
23execution of an agreement for the operation of such public
24transportation, the operator shall file 3 copies of such
25agreement certified by the clerk of the county executing the

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1same with the Illinois Commerce Commission. Thereafter the
2Illinois Commerce Commission shall enter an order directing
3compliance by the operator with the provisions of Sections 55a
4and 55b of "An Act concerning public utilities", approved June
528, 1921, as amended.
6 (b) Any county may apply for, accept and expend moneys
7grants, loans or other funds from the State of Illinois or any
8department or agency thereof, from any unit of local
9government, from the federal government or any department or
10agency thereof, or from any other person or entity, for use in
11connection with any public transportation provided pursuant to
12this Section.
13(Source: P.A. 82-783.)
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
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