HB3863ham001 98TH GENERAL ASSEMBLY

Rep. Daniel V. Beiser

Filed: 4/7/2014

09800HB3863ham001 LRB098 15422 HLH 58004 a

AMENDMENT TO HOUSE BILL 3863

AMENDMENT NO. ______. Amend House Bill 3863 by replacing everything after the enacting clause with the following:

"Section 5. The Downstate Public Transportation Act is amended by changing Sections 2-2.04, 2-10, 2-14, and 2-15 as follows:

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

Sec. 2-2.04. "Eligible operating expenses" means all expenses required for public transportation, including employee wages and benefits, materials, fuels, supplies, rental of facilities, taxes other than income taxes, any payment made for debt service (including principal and interest) by any participant on publicly owned equipment or facilities, payment made to the Illinois Municipal Retirement Fund for the purpose of addressing the unfunded pension liability, and any other expenditure which is an operating expense according to standard accounting practices for the providing of public transportation. Eligible operating expenses shall not include allowances: (a) for depreciation whether funded or unfunded; (b) for amortization of any intangible costs; (c) for debt service on capital acquired with the assistance of capital grant funds provided by the State of Illinois; (d) for profits or return on investment; (e) for excessive payment to associated entities; (f) for Comprehensive Employment Training Act expenses; (g) (blank) for costs reimbursed under Sections 6 and 8 of the "Urban Mass Transportation Act of 1964", as amended; (h) for entertainment expenses; (i) for charter expenses; (j) for fines and penalties; (k) for charitable donations; (l) for interest expense on long term borrowing and debt retirement other than on publicly owned equipment or facilities; (m) for income taxes; or (n) for such other expenses as the Department may determine consistent with federal Department of Transportation regulations or requirements. In consultation with participants, the Department shall, by October 2008, promulgate or update rules, pursuant to the Illinois Administrative Procedure Act, concerning eligible expenses to ensure consistent application of the Act, and the Department shall provide written copies of those rules to all eligible recipients. The Department shall review this process in the same manner no less frequently than every 5 years.

With respect to participants other than any Metro-East Transit District participant and those receiving federal research development and demonstration funds pursuant to Section 6 of the "Urban Mass Transportation Act of 1964", as amended, during the fiscal year ending June 30, 1979, the maximum eligible operating expenses for any such participant in any fiscal year after Fiscal Year 1980 shall be the amount appropriated for such participant for the fiscal year ending June 30, 1980, plus in each year a 10% increase over the maximum established for the preceding fiscal year. For Fiscal Year 1980 the maximum eligible operating expenses for any such participant shall be the amount of projected operating expenses upon which the appropriation for such participant for Fiscal Year 1980 is based.

With respect to participants receiving federal research development and demonstration operating assistance funds for operating assistance pursuant to Section 6 of the "Urban Mass Transportation Act of 1964", as amended, during the fiscal year ending June 30, 1979, the maximum eligible operating expenses for any such participant in any fiscal year after Fiscal Year 1980 shall not exceed such participant's eligible operating expenses for the fiscal year ending June 30, 1980, plus in each year a 10% increase over the maximum established for the preceding fiscal year. For Fiscal Year 1980, the maximum eligible operating expenses for any such participant shall be the eligible operating expenses incurred during such fiscal year, or projected operating expenses upon which the appropriation for such participant for the Fiscal Year 1980 is based; whichever is less.

With respect to all participants other than any Metro-East Transit District participant, the maximum eligible operating expenses for any such participant in any fiscal year after Fiscal Year 1985 (except Fiscal Year 2008 and Fiscal Year 2009) shall be the amount appropriated for such participant for the fiscal year ending June 30, 1985, plus (i) in fiscal years prior to Fiscal Year 2015, in each year a 10% increase over the maximum established for the preceding year and (ii) for Fiscal Year 2015 and each fiscal year thereafter, a percentage increase equal to the percentage change in transfers ordered in to the Downstate Public Transportation Fund under subsection (b-6) of Section 2-3 of this Act for the most recently completed fiscal year over the amount ordered transferred under that Section in the immediately preceding fiscal year, except that, if the percentage change is zero or less than zero, then the maximum established shall be equal to the maximum established for the preceding fiscal year. For Fiscal Year 1985, the maximum eligible operating expenses for any such participant shall be the amount of projected operating expenses upon which the appropriation for such participant for Fiscal Year 1985 is based.

With respect to any mass transit district participant that has increased its district boundaries by annexing counties since 1998 and is maintaining a level of local financial support, including all income and revenues, equal to or greater than the level in the State fiscal year ending June 30, 2001, the maximum eligible operating expenses for any State fiscal year after 2002 (except State fiscal years 2006 through 2009) shall be the amount appropriated for that participant for the State fiscal year ending June 30, 2002, plus, in each State fiscal year, a 10% increase over the preceding State fiscal year. For State fiscal year 2002, the maximum eligible operating expenses for any such participant shall be the amount of projected operating expenses upon which the appropriation for that participant for State fiscal year 2002 is based. For that participant, eligible operating expenses for State fiscal year 2002 in excess of the eligible operating expenses for the State fiscal year ending June 30, 2001, plus 10%, must be attributed to the provision of services in the newly annexed counties.

With respect to a participant that receives an initial appropriation in State fiscal year 2002 or thereafter, the maximum eligible operating expenses for any State fiscal year after 2003 (except State fiscal years 2006 through 2009) shall be the amount appropriated for that participant for the State fiscal year in which it received its initial appropriation, plus, in fiscal years prior to Fiscal Year 2015 in each year, a 10% increase over the preceding year and (ii) for Fiscal Year 2015 and each fiscal year thereafter, a percentage increase equal to the percentage change in transfers ordered in to the Downstate Public Transportation Fund under subsection (b-6) of Section 2-3 of this Act for the most recently completed fiscal year over the amount ordered transferred under that Section in the immediately preceding fiscal year, except that, if the percentage change is zero or less than zero, then the maximum established shall be equal to the maximum established for the preceding fiscal year. For the initial State fiscal year in which a participant received an appropriation, the maximum eligible operating expenses for any such participant shall be the amount of projected operating expenses upon which the appropriation for that participant for that State fiscal year is based.

With respect to the District serving primarily the counties of Monroe and St. Clair, beginning July 1, 2005, the St. Clair County Transit District shall no longer be included for new appropriation funding purposes as part of the Metro-East Public Transportation Fund and instead shall be included for new appropriation funding purposes as part of the Downstate Public Transportation Fund; provided, however, that nothing herein shall alter the eligibility of that District for previously appropriated funds to which it would otherwise be entitled.

With respect to the District serving primarily Madison County, beginning July 1, 2008, the Madison County Transit District shall no longer be included for new appropriation funding purposes as part of the Metro-East Public Transportation Fund and instead shall be included for new appropriation funding purposes as part of the Downstate Public Transportation Fund; provided, however, that nothing herein shall alter the eligibility of that District for previously appropriated funds to which it would otherwise be entitled.

With respect to the fiscal year beginning July 1, 2007, and thereafter, the following shall be included for new appropriation funding purposes as part of the Downstate Public Transportation Fund: Bond County; Bureau County; Coles County; Edgar County; Stephenson County and the City of Freeport; Henry County; Jo Daviess County; Kankakee and McLean Counties; Peoria County; Piatt County; Shelby County; Tazewell and Woodford Counties; Vermilion County; Williamson County; and Kendall County.

(Source: P.A. 94-70, eff. 6-22-05; 95-708, eff. 1-18-08.)

(30 ILCS 740/2-10) (from Ch. 111 2/3, par. 670)

Sec. 2-10. Cooperative projects. Nothing in this Act shall prohibit any participant from (i) including in a program of proposed expenditures funding for a portion of a cooperative public transportation project or purpose, the total cost of which is shared among one or more other participants or other financial contributors, as long as the residents of the participant are served by any such project or purpose or (ii) applying for and receiving another participant's appropriation if both participants agree by intergovernmental agreement to such agreement. Intergovernmental agreements must be in a form approved by the Department and contain provisions for service equity in each participant's area and participant oversight of these requirements.

(Source: P.A. 82-783.)

(30 ILCS 740/2-14) (from Ch. 111 2/3, par. 674)

Sec. 2-14. Grants. (a) Upon a determination by the Department that any initial or amended program of proposed expenditures is in compliance with the provisions of this Act, and upon approval thereof, the Department shall enter into one or more grant agreements with and shall make grants to that participant as necessary to implement the adopted program of expenditures.

(b) All grants by the Department pursuant to this Act shall be administered upon such conditions as the Secretary of Transportation shall determine, consistent with the provisions and purpose of this Act.

(c) Any procurement by a participant with respect to a project for which the participant will be requesting operating reimbursement of the debt service pursuant to this Act, shall not be subject to the Department's procurement process, but shall be subject to a locally approved procurement process that complies with all federal procurement standards.

(Source: P.A. 82-783.)

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

Sec. 2-15. Residual fund balance.

(a) Except as otherwise provided in this Section, all funds which remain in the Downstate Public Transportation Fund or the Metro-East Public Transportation Fund after the payment of the fourth quarterly payment to participants other than Metro-East Transit District participants and the last monthly payment to Metro-East Transit participants in each fiscal year shall be transferred (i) to the General Revenue Fund through fiscal year 2008 and (ii) to the Downstate Transit Improvement Fund for Fiscal Years fiscal year 2009 through 2012 and each fiscal year thereafter. Any amounts requested by the Department of Transportation for transfer into the Downstate Transit Improvement Fund during Fiscal Year 2014 are hereby nullified and, if the funds have been transferred into the Downstate Transit Improvement Fund on or before the effective date of this amendatory Act of the 98th General Assembly, then the State Comptroller shall immediately order transferred and the State Treasurer shall transfer such funds back to the Downstate Public Transportation Fund. In Fiscal Year 2015 and each fiscal year thereafter, the transfer to the Downstate Transit Improvement Fund shall be determined as follows:

(1) The Department of Transportation shall calculate the amounts directed to be transferred in to the Downstate Public Transportation Fund pursuant to subsection (b-6) of Section 2-3 of this Act, minus the amounts expended via appropriations and transfers from the Downstate Public Transportation Fund for the most recently completed Fiscal Year (the "Net Resources Amount").

(2) The Department of Transportation shall also compute the June 30 available balance in the Downstate Public Transportation Fund for both the most recently completed fiscal year and the immediately preceding fiscal year and determine the change (positive or negative) in the available balance over the course of the most recently completed fiscal year (the "Balance Change Amount").

(3) If the Balance Change Amount indicates that the June 30 available balance in the Downstate Public Transportation Fund has stayed the same or increased during the most recently completed fiscal year, then the requested transfer to the Downstate Transit Improvement Fund in the current fiscal year will be equal to the Net Resources Amount calculated in item (1) above.

(4) If the Balance Change Amount indicates that the June 30 available balance has decreased during the most recently completed fiscal year, then the requested transfer to the Downstate Transit Improvement Fund shall be equal to the Net Resources Amount reduced by the Balance Change Amount. If the Balance Change Amount under item (2) is greater than or equal to the Net Resources Amount, then there will not be a transfer into the Downstate Transit Improvement Fund during the current fiscal year.

Transfers shall be made no later than 90 days following the end of such fiscal year. Beginning fiscal year 2010, all moneys each year in the Downstate Transit Improvement Fund shall be , held solely for the benefit of the participants in the Downstate Public Transportation Fund and shall be appropriated solely to the Department to make competitive capital grants to the participants of the respective funds and for no other purpose. However, such amount as the Department determines to be necessary for (1) allocation to participants for the purposes of Section 2-7 for the first quarter of the succeeding fiscal year and (2) an amount equal to 2% of the total allocations to participants in the fiscal year just ended to be used for the purpose of audit adjustments shall be retained in such Funds to be used by the Department for such purposes.

(b) Notwithstanding any other provision of law, in addition to any other transfers that may be provided by law, on July 1, 2011, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer the remaining balance from the Metro East Public Transportation Fund into the General Revenue Fund. Upon completion of the transfers, the Metro East Public Transportation Fund is dissolved, and any future deposits due to that Fund and any outstanding obligations or liabilities of that Fund pass to the General Revenue Fund.

(Source: P.A. 97-72, eff. 7-1-11.)

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