Bill Text: IL SB1697 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the Metropolitan Transit Authority Act and the Regional Transportation Authority Act. Provides that the Regional Transportation Authority or a Service Board may enter into an option contract, forward contract, futures contract, swap, cap, or collar agreement with price floors or ceilings, or both, for fuel risk management purposes, subject to the approval of the Board of Directors of the Regional Transportation Authority.

Spectrum: Bipartisan Bill

Status: (Failed) 2015-01-13 - Session Sine Die [SB1697 Detail]

Download: Illinois-2013-SB1697-Engrossed.html

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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Regional Transportation Authority Act is
amended by changing Sections 3A.09 and 3B.09 as follows:
(70 ILCS 3615/3A.09) (from Ch. 111 2/3, par. 703A.09)
Sec. 3A.09. General Powers. In addition to any powers
elsewhere provided to the Suburban Bus Board, it shall have all
of the powers specified in Section 2.20 of this Act except for
the powers specified in Section 2.20(a)(v). The Board shall
also have the power:
(a) to cooperate with the Regional Transportation
Authority in the exercise by the Regional Transportation
Authority of all the powers granted it by such Act;
(b) to receive funds from the Regional Transportation
Authority pursuant to Sections 2.02, 4.01, 4.02, 4.09 and
4.10 of the Regional Transportation Authority Act, all as
provided in the Regional Transportation Authority Act;
(c) to receive financial grants from the Regional
Transportation Authority or a Service Board, as defined in
the Regional Transportation Authority Act, upon such terms
and conditions as shall be set forth in a grant contract
between either the Division and the Regional

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Transportation Authority or the Division and another
Service Board, which contract or agreement may be for such
number of years or duration as the parties agree, all as
provided in the Regional Transportation Authority Act;
(d) to perform all functions necessary for the
provision of paratransit services under Section 2.30 of
this Act; and
(e) to borrow money for the purposes of: (i)
constructing a new garage in the northwestern Cook County
suburbs at an estimated cost of $60,000,000, (ii)
converting the South Cook garage in Markham to a Compressed
Natural Gas facility at an estimated cost of $12,000,000,
(iii) constructing a new paratransit garage in DuPage
County at an estimated cost of $25,000,000, and (iv)
expanding the North Shore garage in Evanston to accommodate
additional indoor bus parking at an estimated cost of
$3,000,000. For the purpose of evidencing the obligation of
the Suburban Bus Board to repay any money borrowed as
provided in this subsection, the Suburban Bus Board may
issue revenue bonds from time to time pursuant to ordinance
adopted by the Suburban Bus Board, subject to the approval
of the Regional Transportation Authority of each such
issuance by the affirmative vote of 12 of its then
Directors; provided that the Suburban Bus Board may not
issue bonds for the purpose of financing the acquisition,
construction, or improvement of any facility other than

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those listed in this subsection (e). All such bonds shall
be payable solely from the revenues or income or any other
funds that the Suburban Bus Board may receive, provided
that the Suburban Bus Board may not pledge as security for
such bonds the moneys, if any, that the Suburban Bus Board
receives from the Regional Transportation Authority
pursuant to Section 4.03.3(f) of the Regional
Transportation Authority Act. The bonds shall bear
interest at a rate not to exceed the maximum rate
authorized by the Bond Authorization Act and shall mature
at such time or times not exceeding 25 years from their
respective dates. Bonds issued pursuant to this paragraph
must be issued with scheduled principal or mandatory
redemption payments in equal amounts in each fiscal year
over the term of the bonds, with the first principal or
mandatory redemption payment scheduled within the fiscal
year in which bonds are issued or within the next
succeeding fiscal year. At least 25%, based on total
principal amount, of all bonds authorized pursuant to this
Section shall be sold pursuant to notice of sale and public
bid. No more than 75%, based on total principal amount, of
all bonds authorized pursuant to this Section shall be sold
by negotiated sale. The maximum principal amount of the
bonds that may be issued may not exceed $100,000,000. The
bonds shall have all the qualities of negotiable
instruments under the laws of this State. To secure the

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payment of any or all of such bonds and for the purpose of
setting forth the covenants and undertakings of the
Suburban Bus Board in connection with the issuance thereof
and the issuance of any additional bonds payable from such
revenue or income as well as the use and application of the
revenue or income received by the Suburban Bus Board, the
Suburban Bus Board may execute and deliver a trust
agreement or agreements; provided that no lien upon any
physical property of the Suburban Bus Board shall be
created thereby. A remedy for any breach or default of the
terms of any such trust agreement by the Suburban Bus Board
may be by mandamus proceedings in any court of competent
jurisdiction to compel performance and compliance
therewith, but the trust agreement may prescribe by whom or
on whose behalf such action may be instituted. Under no
circumstances shall any bonds issued by the Suburban Bus
Board or any other obligation of the Suburban Bus Board in
connection with the issuance of such bonds be or become an
indebtedness or obligation of the State of Illinois, the
Regional Transportation Authority, or any other political
subdivision of or municipality within the State, nor shall
any such bonds or obligations be or become an indebtedness
of the Suburban Bus Board within the purview of any
constitutional limitation or provision, and it shall be
plainly stated on the face of each bond that it does not
constitute such an indebtedness or obligation but is

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payable solely from the revenues or income as aforesaid.
(f) for the sole purposes of protecting, managing, and
insuring against the risk associated with volatile fuel
prices, enter into any option contract, forward contract,
futures contract, swap, cap, or collar agreements with
price floors or ceilings, or both, for fuel risk
management, but only to the extent determined by the Board
of Directors of the Regional Transportation Authority or
the Suburban Bus Board to be in the best interests of the
Authority or the Suburban Bus Board.
(Source: P.A. 97-770, eff. 1-1-13.)
(70 ILCS 3615/3B.09) (from Ch. 111 2/3, par. 703B.09)
Sec. 3B.09. General Powers. In addition to any powers
elsewhere provided to the Commuter Rail Board, it shall have
all of the powers specified in Section 2.20 of this Act except
for the powers specified in Section 2.20(a)(v). The Board shall
also have the power:
(a) to cooperate with the Regional Transportation
Authority in the exercise by the Regional Transportation
Authority of all the powers granted it by such Act;
(b) to receive funds from the Regional Transportation
Authority pursuant to Sections 2.02, 4.01, 4.02, 4.09 and 4.10
of the "Regional Transportation Authority Act", all as provided
in the "Regional Transportation Authority Act";
(c) to receive financial grants from the Regional

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Transportation Authority or a Service Board, as defined in the
"Regional Transportation Authority Act", upon such terms and
conditions as shall be set forth in a grant contract between
either the Division and the Regional Transportation Authority
or the Division and another Service Board, which contract or
agreement may be for such number of years or duration as the
parties may agree, all as provided in the "Regional
Transportation Authority Act"; and
(d) to borrow money for the purpose of acquiring,
constructing, reconstructing, extending, or improving any
Public Transportation Facilities (as defined in Section 1.03 of
the Regional Transportation Authority Act) operated by or to be
operated by or on behalf of the Commuter Rail Division. For the
purpose of evidencing the obligation of the Commuter Rail Board
to repay any money borrowed as provided in this subsection, the
Commuter Rail Board may issue revenue bonds from time to time
pursuant to ordinance adopted by the Commuter Rail Board,
subject to the approval of the Regional Transportation
Authority of each such issuance by the affirmative vote of 12
of its then Directors; provided that the Commuter Rail Board
may not issue bonds for the purpose of financing the
acquisition, construction, or improvement of a corporate
headquarters building. All such bonds shall be payable solely
from the revenues or income or any other funds that the
Commuter Rail Board may receive, provided that the Commuter
Rail Board may not pledge as security for such bonds the

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moneys, if any, that the Commuter Rail Board receives from the
Regional Transportation Authority pursuant to Section
4.03.3(f) of the Regional Transportation Authority Act. The
bonds shall bear interest at a rate not to exceed the maximum
rate authorized by the Bond Authorization Act and shall mature
at such time or times not exceeding 25 years from their
respective dates. Bonds issued pursuant to this paragraph must
be issued with scheduled principal or mandatory redemption
payments in equal amounts in each fiscal year over the term of
the bonds, with the first principal or mandatory redemption
payment scheduled within the fiscal year in which bonds are
issued or within the next succeeding fiscal year. At least 25%,
based on total principal amount, of all bonds authorized
pursuant to this Section shall be sold pursuant to notice of
sale and public bid. No more than 75%, based on total principal
amount, of all bonds authorized pursuant to this Section shall
be sold by negotiated sale. The maximum principal amount of the
bonds that may be issued and outstanding at any time may not
exceed $1,000,000,000. The bonds shall have all the qualities
of negotiable instruments under the laws of this State. To
secure the payment of any or all of such bonds and for the
purpose of setting forth the covenants and undertakings of the
Commuter Rail Board in connection with the issuance thereof and
the issuance of any additional bonds payable from such revenue
or income as well as the use and application of the revenue or
income received by the Commuter Rail Board, the Commuter Rail

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Board may execute and deliver a trust agreement or agreements;
provided that no lien upon any physical property of the
Commuter Rail Board shall be created thereby. A remedy for any
breach or default of the terms of any such trust agreement by
the Commuter Rail Board may be by mandamus proceedings in any
court of competent jurisdiction to compel performance and
compliance therewith, but the trust agreement may prescribe by
whom or on whose behalf such action may be instituted. Under no
circumstances shall any bonds issued by the Commuter Rail Board
or any other obligation of the Commuter Rail Board in
connection with the issuance of such bonds be or become an
indebtedness or obligation of the State of Illinois, the
Regional Transportation Authority, or any other political
subdivision of or municipality within the State, nor shall any
such bonds or obligations be or become an indebtedness of the
Commuter Rail Board within the purview of any constitutional
limitation or provision, and it shall be plainly stated on the
face of each bond that it does not constitute such an
indebtedness or obligation but is payable solely from the
revenues or income as aforesaid.
(e) for the sole purposes of protecting, managing, and
insuring against the risk associated with volatile fuel prices,
enter into any option contract, forward contract, futures
contract, swap, cap, or collar agreements with price floors or
ceilings, or both, for fuel risk management, but only to the
extent determined by the Board of Directors of the Regional

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Transportation Authority or the Commuter Rail Board to be in
the best interests of the Authority or the Commuter Rail Board.
(Source: P.A. 95-708, eff. 1-18-08.)
Section 99. Effective date. This Act takes effect upon
becoming law.