Bill Text: IL HB0463 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Adds provisions concerning pricing of water assets, meaning a water utility or water distribution company and its tangible and intangible properties, by an Illinois governmental purchaser. Provides that the determination of value or price for the purchase or acquisition of water assets by the Illinois governmental purchaser: may not distinguish, penalize, or increase the value or price to be paid by an Illinois governmental purchaser based on specified characteristics of the purchaser; or may not use as a factor any excess of replacement cost new minus depreciation over the value of price based on fair market value of the water assets, as determined by what a willing buyer in the private sector would value, price, or pay for the water assets. Provides for application of the provisions to contracts already in place. Contains a severability clause. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0463 Detail]

Download: Illinois-2017-HB0463-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0463 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
220 ILCS 5/5-119 new
Amends the Public Utilities Act. Adds provisions concerning pricing of water assets, meaning a water utility or water distribution company and its tangible and intangible properties, by an Illinois governmental purchaser. Provides that the determination of value or price for the purchase or acquisition of water assets by the Illinois governmental purchaser: may not distinguish, penalize, or increase the value or price to be paid by an Illinois governmental purchaser based on specified characteristics of the purchaser; or may not use as a factor any excess of replacement cost new minus depreciation over the value of price based on fair market value of the water assets, as determined by what a willing buyer in the private sector would value, price, or pay for the water assets. Provides for application of the provisions to contracts already in place. Contains a severability clause. Effective immediately.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by adding
Section 5-119 as follows:
(220 ILCS 5/5-119 new)
Sec. 5-119. Prevent unfairness in pricing of water assets
acquired by governmental purchasers.
(a) In this Section:
"Illinois governmental purchaser" means the State of
Illinois, any State agency, department, or division, or any
municipality, county, city, township, water district, or other
body politic or political subdivision of the State of Illinois.
"Water assets" means a water utility or water distribution
company or any of its assets, facilities, piping, pumping and
lift stations, water sources and rights, real estate,
easements, intangibles, franchises, or other properties.
(b) In determining the value or price for the purchase or
acquisition of water assets by an Illinois governmental
purchaser, whether in an eminent domain proceeding or any other
exercise of a right possessed by an Illinois governmental
purchaser to purchase or acquire water assets (by contract or
statute), the determination of value or price to be paid for

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the water assets:
(1) may not distinguish, penalize, or increase the
value or price to be paid by an Illinois governmental
purchaser for the purchase or acquisition of water assets
because the purchaser or acquirer: is an Illinois
governmental purchaser or public body; does not pay income,
property, or other taxes; has or may have taxing or
ratemaking authority; or has other supposed or real
advantages as an Illinois governmental purchaser over a
private purchaser; or
(2) may not use as a factor any excess of replacement
cost new minus depreciation over the value or price based
on fair market value of the water assets to be acquired or
purchased, as determined by what a willing buyer in the
private sector would value, price, or pay for the water
assets.
(c) The intent of paragraphs (1) and (2) of subsection (b)
is to put an Illinois governmental purchaser on equal footing
for valuation and price determination purposes with private
purchasers in a free and open marketplace with respect to
determining values or prices to be paid for water assets and
actual valuing, pricing, and purchasing water assets.
(d) This Section shall apply to all valuations or price
determinations made or to be made or determined after the
effective date of this amendatory Act of the 100th General
Assembly, except: (1) in the case of paragraph (1) of

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subsection (b), for contracts already in place on the effective
date of this amendatory Act of the 100th General Assembly that
expressly require or provide that the value of the water assets
be priced or valued on a basis that takes into account that the
benefits of the purchaser as a public body over or as opposed
to a private body; and (2) in the case of paragraph (2) of
subsection (b), for contracts already in place on the effective
date of this amendatory Act of the 100th General Assembly that
expressly require or provide that the value or price to be paid
for water assets may or must take into account the replacement
cost new minus depreciation of the water assets to be valued or
priced, even though such cost is in excess of a fair market
price that a private purchaser would value, price, or pay for
such assets.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect upon
becoming law.