104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3535 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 505/8b Amends the Motor Fuel Tax Law. Provides that, of the moneys in the Transportation Renewal Fund that are used for highway maintenance, highway construction, bridge repair, congestion relief, and construction of aviation facilities, 40% (instead of 60%) shall be transferred to the State Construction Account Fund and 60% (instead of 40%) shall be distributed by the Department of Transportation to municipalities, counties, and road districts of the State. Effective immediately. LRB104 08055 HLH 18101 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3535 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 505/8b 35 ILCS 505/8b Amends the Motor Fuel Tax Law. Provides that, of the moneys in the Transportation Renewal Fund that are used for highway maintenance, highway construction, bridge repair, congestion relief, and construction of aviation facilities, 40% (instead of 60%) shall be transferred to the State Construction Account Fund and 60% (instead of 40%) shall be distributed by the Department of Transportation to municipalities, counties, and road districts of the State. Effective immediately. LRB104 08055 HLH 18101 b LRB104 08055 HLH 18101 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3535 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 505/8b 35 ILCS 505/8b 35 ILCS 505/8b Amends the Motor Fuel Tax Law. Provides that, of the moneys in the Transportation Renewal Fund that are used for highway maintenance, highway construction, bridge repair, congestion relief, and construction of aviation facilities, 40% (instead of 60%) shall be transferred to the State Construction Account Fund and 60% (instead of 40%) shall be distributed by the Department of Transportation to municipalities, counties, and road districts of the State. Effective immediately. LRB104 08055 HLH 18101 b LRB104 08055 HLH 18101 b LRB104 08055 HLH 18101 b A BILL FOR HB3535LRB104 08055 HLH 18101 b HB3535 LRB104 08055 HLH 18101 b HB3535 LRB104 08055 HLH 18101 b 1 AN ACT concerning revenue. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Motor Fuel Tax Law is amended by changing 5 Section 8b as follows: 6 (35 ILCS 505/8b) 7 Sec. 8b. Transportation Renewal Fund; creation; 8 distribution of proceeds. 9 (a) The Transportation Renewal Fund is hereby created as a 10 special fund in the State treasury. Moneys in the Fund shall be 11 used as provided in this Section: 12 (1) 80% of the moneys in the Fund shall be used for 13 highway maintenance, highway construction, bridge repair, 14 congestion relief, and construction of aviation 15 facilities; of that 80%: 16 (A) before Fiscal Year 2026 and for Fiscal Year 17 2031 and thereafter, the the State Comptroller shall 18 order transferred and the State Treasurer shall 19 transfer 60% to the State Construction Account Fund; 20 those moneys shall be used solely for construction, 21 reconstruction, improvement, repair, maintenance, 22 operation, and administration of highways and are 23 limited to payments made pursuant to design and 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3535 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 505/8b 35 ILCS 505/8b 35 ILCS 505/8b Amends the Motor Fuel Tax Law. Provides that, of the moneys in the Transportation Renewal Fund that are used for highway maintenance, highway construction, bridge repair, congestion relief, and construction of aviation facilities, 40% (instead of 60%) shall be transferred to the State Construction Account Fund and 60% (instead of 40%) shall be distributed by the Department of Transportation to municipalities, counties, and road districts of the State. Effective immediately. LRB104 08055 HLH 18101 b LRB104 08055 HLH 18101 b LRB104 08055 HLH 18101 b A BILL FOR 35 ILCS 505/8b LRB104 08055 HLH 18101 b HB3535 LRB104 08055 HLH 18101 b HB3535- 2 -LRB104 08055 HLH 18101 b HB3535 - 2 - LRB104 08055 HLH 18101 b HB3535 - 2 - LRB104 08055 HLH 18101 b 1 construction contracts awarded by the Department of 2 Transportation; and 3 (B) before Fiscal Year 2026 and for Fiscal Year 4 2031 and thereafter, 40% 40% shall be distributed by 5 the Department of Transportation to municipalities, 6 counties, and road districts of the State using the 7 percentages set forth in subdivisions (A), (B), (C), 8 and (D) of paragraph (2) of subsection (e) of Section 9 8; distributions to particular municipalities, 10 counties, and road districts under this subdivision 11 (B) shall be made according to the allocation 12 procedures described for municipalities, counties, and 13 road districts in subsection (e) of Section 8 and 14 shall be subject to the same requirements and 15 limitations described in that subsection; and 16 (C) beginning with Fiscal Year 2026 and continuing 17 through Fiscal Year 2030, the State Comptroller shall 18 order transferred and the State Treasurer shall 19 transfer 40% to the State Construction Account Fund; 20 those moneys shall be used solely for construction, 21 reconstruction, improvement, repair, maintenance, 22 operation, and administration of highways and are 23 limited to payments made pursuant to design and 24 construction contracts awarded by the Department of 25 Transportation; and 26 (D) beginning with Fiscal Year 2026 and continuing HB3535 - 2 - LRB104 08055 HLH 18101 b HB3535- 3 -LRB104 08055 HLH 18101 b HB3535 - 3 - LRB104 08055 HLH 18101 b HB3535 - 3 - LRB104 08055 HLH 18101 b 1 through Fiscal Year 2030, 60% shall be distributed by 2 the Department of Transportation to municipalities, 3 counties, and road districts of the State using the 4 percentages set forth in subdivisions (A), (B), (C), 5 and (D) of paragraph (2) of subsection (e) of Section 6 8; distributions to particular municipalities, 7 counties, and road districts under this subdivision 8 (B) shall be made according to the allocation 9 procedures described for municipalities, counties, and 10 road districts in subsection (e) of Section 8 and 11 shall be subject to the same requirements and 12 limitations described in that subsection; and 13 (2) 20% of the moneys in the Fund shall be used for 14 projects related to rail facilities and mass transit 15 facilities, as defined in Section 2705-305 of the 16 Department of Transportation Law of the Civil 17 Administrative Code of Illinois, including rapid transit, 18 rail, high-speed rail, bus and other equipment in 19 connection with the State or a unit of local government, 20 special district, municipal corporation, or other public 21 agency authorized to provide and promote public 22 transportation within the State; of that 20%: 23 (A) 90% shall be deposited into the Regional 24 Transportation Authority Capital Improvement Fund, a 25 special fund created in the State Treasury; moneys in 26 the Regional Transportation Authority Capital HB3535 - 3 - LRB104 08055 HLH 18101 b HB3535- 4 -LRB104 08055 HLH 18101 b HB3535 - 4 - LRB104 08055 HLH 18101 b HB3535 - 4 - LRB104 08055 HLH 18101 b 1 Improvement Fund shall be used by the Regional 2 Transportation Authority for construction, 3 improvements, and deferred maintenance on mass transit 4 facilities and acquisition of buses and other 5 equipment; and 6 (B) 10% shall be deposited into the Downstate Mass 7 Transportation Capital Improvement Fund, a special 8 fund created in the State Treasury; moneys in the 9 Downstate Mass Transportation Capital Improvement Fund 10 shall be used by local mass transit districts other 11 than the Regional Transportation Authority for 12 construction, improvements, and deferred maintenance 13 on mass transit facilities and acquisition of buses 14 and other equipment. 15 (b) (Blank). 16 (Source: P.A. 103-866, eff. 8-9-24.) HB3535 - 4 - LRB104 08055 HLH 18101 b