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SB 1445

DOWNSTATE TRANSPORT-EXPENSES

104th Regular Session Introduced by Chapin Rose

Excludes advertising income from operating revenues in the Downstate Public Transportation Act, altering funding formulas and reporting for Illinois downstate transit agencies.

Referred to Assignments
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Bill Summary · SB 1445

Bill Summary — SB 1445 (Downstate Transport — Operating Revenues / Expenses)

Status: Referred to Assignments (introduced 2025)
Bill title in packet: “DOWNSTATE TRANSPORT‑EXPENSES”
Primary change: Amends the Downstate Public Transportation Act (30 ILCS 740/4‑1.11) to clarify that “operating revenues” do not include income from advertising.

Note: The packet supplied contains text from multiple different SB 1445 bills across jurisdictions (Arizona — vaping accreditation; Hawaii — digital youth mental health pilot). The summary below focuses on the Illinois Downstate Public Transportation Act amendment (the “Downstate” provision) described in the materials.

Purpose / intent

To change the statutory definition of “operating revenues” used in the Downstate Public Transportation Act so that advertising income is excluded from that definition. The intent is to ensure that ad revenue is not counted as an agency’s operating revenue for purposes of funding formulas, eligibility, or state program calculations under the Act.

Key provisions

  • Amends Section 4‑1.11 of the Downstate Public Transportation Act (30 ILCS 740/4‑1.11).
  • Revises the statutory definition of “operating revenues” so that it excludes income from advertising. (Current/earlier language included “any other amounts collected … in the process of providing public transportation”; the amendment expressly omits advertising receipts from the definition.)
  • No other programmatic changes or funding authorizations are specified in the provided text.

Who is affected

  • Downstate public transportation providers in Illinois (non‑Chicago urbanized and rural transit agencies that participate in state programs under the Downstate Public Transportation Act).
  • State agencies that administer transit assistance and funding formulas that rely on the “operating revenues” metric.
  • Local governments or transit boards whose budgets include advertising revenue (bus shelter, vehicle, terminal, or route advertising sales).
  • Potentially, vendors or contractors that sell advertising space to transit agencies (indirect effect).

Potential impacts

  • Accounting and reporting: Agencies will likely need to report ad revenue separately from operating revenue in state reports and grant applications.
  • Funding / eligibility: Because advertising income would no longer boost “operating revenues,” an agency’s calculated operating revenue could be lower—this may increase perceived need and could affect state aid allocation or matching requirements if formulas treat operating revenue as an offset. Conversely, some performance ratios that rely on operating revenue (e.g., farebox recovery) may change.
  • Budget planning: Agencies that have relied on advertising to cover operating costs may see a change in how those funds are treated in state calculations, which could prompt shifts in local budgeting or revenue strategies.
  • Administrative: The Department of Transportation or other administering entities may need to adopt guidance or revise forms to reflect the definitional change.

Procedural / timeline notes

  • The packet shows varied procedural entries across jurisdictions. For the Illinois version: draft text indicates introduction by Sen. Chapin Rose (filed January 31, 2025); the top metadata shows “introduced February 19, 2025” and status “Referred to Assignments.” Confirm current chamber status and referral with the Illinois General Assembly docket for up‑to‑date tracking.

Implementation issues / considerations

  • Clarify whether other revenue sources commonly associated with advertising (e.g., sponsorships, naming rights, bundled media contracts) are treated as “advertising” for exclusion purposes.
  • Determine whether the change affects federal reporting or compliance with any federal grant match rules.
  • Agencies and the state should issue accounting guidance and update grant/assistance calculations to avoid inconsistent application.

If you want, I can:
- Draft suggested legislative or regulatory language to clarify ambiguous items (sponsorships, in‑kind ad value, multi‑year ad contracts).
- Produce a short memo estimating fiscal effects for a sample downstate transit agency based on typical ad revenue levels.

Compiled from official sources — confirm details with the bill’s official record.

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