Bill Text: IL HB3400 | 2017-2018 | 100th General Assembly | Engrossed

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Bill Title: Amends the Illinois Municipal Code. Provides that the corporate authorities of a municipality shall bill for any utility service, including previously unbilled service, within 12 months (for residential customers) or 24 months (for non-residential customers) after the provision of the utility service. Provides exceptions to the time limits for billing when the customer prevented the utility from accurately reading the meter. Provides that the corporate authorities shall not intentionally delay billing beyond the normal billing cycle, shall label amounts attributed to previously unbilled service as such, shall prorate previously unbilled service amounts to reflect varying rates during the unbilled time, and provide the customer with a payment arrangement option for previously unbilled service amounts. Amends the Public Water District Act, the Water Service District Act, the Water Authorities Act, and the Water Commission Act making similar changes. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2017-08-18 - Public Act . . . . . . . . . 100-0178 [HB3400 Detail]

Download: Illinois-2017-HB3400-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 Illinois Municipal Code is amended by adding
Section 11-150-2 as follows:
(65 ILCS 5/11-150-2 new)
Sec. 11-150-2. Billing for services.
(a) On or after the effective date of this amendatory Act
of the 100th General Assembly, the corporate authorities of any
municipality operating a waterworks or combined waterworks and
sewerage system:
(1) shall bill for any utility service, including
previously unbilled service: (A) within 12 months after the
provision of that service to the customer if the service is
supplied to a residential customer; or (B) within 24 months
after the provision of that service to that customer if the
service is supplied to a non-residential customer;
however, the corporate authorities of a municipality may
bill for unpaid amounts that were billed to a customer or
if the customer was notified that there is an unpaid amount
before the effective date of this amendatory Act of the
100th General Assembly for service that was supplied to the
customer before January 1, 2016;

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(2) shall not intentionally delay billing beyond the
normal billing cycle;
(3) shall label any amount attributed to previously
unbilled service as such on the customer's bill and include
the beginning and ending dates for the period during which
the previously unbilled amount accrued;
(4) shall issue the makeup billing amount calculated on
a prorated basis to reflect the varying rates for
previously unbilled service accrued over a period of time
when the rates for service have varied; and
(5) shall provide the customer with the option of a
payment arrangement to retire the makeup bill for
previously unbilled service by periodic payments, without
interest or late fees, over a time equal to the amount of
time the billing was delayed.
(b) The time limit of paragraph (1) of subsection (a) shall
not apply to previously unbilled service attributed to
tampering, theft of service, fraud, or the customer preventing
the utility's recorded efforts to obtain an accurate reading of
the meter.
Section 10. The Public Water District Act is amended by
adding Section 7.4 as follows:
(70 ILCS 3705/7.4 new)
Sec. 7.4. Billing for services.

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(a) On or after the effective date of this amendatory Act
of the 100th General Assembly, a public water district:
(1) shall bill for any utility service, including
previously unbilled service: (A) within 12 months after the
provision of that service to the customer if the service is
supplied to a residential customer; or (B) within 24 months
after the provision of that service to that customer if the
service is supplied to a non-residential customer;
however, the public water district may bill for unpaid
amounts that were billed to a customer or if the customer
was notified that there is an unpaid amount before the
effective date of this amendatory Act of the 100th General
Assembly for service that was supplied to the customer
before January 1, 2016;
(2) shall not intentionally delay billing beyond the
normal billing cycle;
(3) shall label any amount attributed to previously
unbilled service as such on the customer's bill and include
the beginning and ending dates for the period during which
the previously unbilled amount accrued;
(4) shall issue the makeup billing amount calculated on
a prorated basis to reflect the varying rates for
previously unbilled service accrued over a period of time
when the rates for service have varied; and
(5) shall provide the customer with the option of a
payment arrangement to retire the makeup bill for

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previously unbilled service by periodic payments, without
interest or late fees, over a time equal to the amount of
time the billing was delayed.
(b) The time limit of paragraph (1) of subsection (a) shall
not apply to previously unbilled service attributed to
tampering, theft of service, fraud, or the customer preventing
the utility's recorded efforts to obtain an accurate reading of
the meter.
Section 15. The Water Service District Act is amended by
adding Section 5.3 as follows:
(70 ILCS 3710/5.3 new)
Sec. 5.3. Billing for services.
(a) On or after the effective date of this amendatory Act
of the 100th General Assembly, a water service district:
(1) shall bill for any utility service, including
previously unbilled service: (A) within 12 months after the
provision of that service to the customer if the service is
supplied to a residential customer; or (B) within 24 months
after the provision of that service to that customer if the
service is supplied to a non-residential customer;
however, the water service district may bill for unpaid
amounts that were billed to a customer or if the customer
was notified that there is an unpaid amount before the
effective date of this amendatory Act of the 100th General

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Assembly for service that was supplied to the customer
before January 1, 2016;
(2) shall not intentionally delay billing beyond the
normal billing cycle;
(3) shall label any amount attributed to previously
unbilled service as such on the customer's bill and include
the beginning and ending dates for the period during which
the previously unbilled amount accrued;
(4) shall issue the makeup billing amount calculated on
a prorated basis to reflect the varying rates for
previously unbilled service accrued over a period of time
when the rates for service have varied; and
(5) shall provide the customer with the option of a
payment arrangement to retire the makeup bill for
previously unbilled service by periodic payments, without
interest or late fees, over a time equal to the amount of
time the billing was delayed.
(b) The time limit of paragraph (1) of subsection (a) shall
not apply to previously unbilled service attributed to
tampering, theft of service, fraud, or the customer preventing
the utility's recorded efforts to obtain an accurate reading of
the meter.
Section 20. The Water Authorities Act is amended by
changing Section 6 as follows:

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(70 ILCS 3715/6) (from Ch. 111 2/3, par. 228)
Sec. 6. Such board of trustees shall have the following
powers:
1. To make inspections of wells or other withdrawal
facilities and to require information and data from the owners
or operators thereof concerning the supply, withdrawal and use
of water.
2. To require the registration with them of all wells or
other withdrawal facilities in accordance with such form or
forms as they deem advisable.
3. To require permits from them for all additional wells or
withdrawal facilities or for the deepening, extending or
enlarging existing wells or withdrawal facilities.
4. To require the plugging of abandoned wells or the repair
of any well or withdrawal facility to prevent loss of water or
contamination of supply.
5. To reasonably regulate the use of water and during any
period of actual or threatened shortage to establish limits
upon or priorities as to the use of water. In issuing any such
regulation, limitation, or priority, such board shall seek to
promote the common welfare by considering the public interest,
the average amount of present withdrawals, relative benefits or
importance of use, economy or efficiency of use and any other
reasonable differentiation. Appropriate consideration shall
also be given to any user, who has theretofore reduced the
volume of ground water previously consumed by such user or who

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has taken care of increased requirements by installing and
using equipment and facilities permitting the use of surface
water by such user.
6. To supplement the existing water supply or provide
additional water supply by such means as may be practicable or
feasible. They may acquire property or property rights either
within or without the boundaries of the authority by purchase,
lease, condemnation proceedings or otherwise, and they may
construct, maintain and operate wells, reservoirs, pumping
stations, purification plants, infiltration pits, recharging
wells and such other facilities as may be necessary to insure
an adequate supply of water for the present and future needs of
the authority. They shall have the right to sell water to
municipalities or public utilities operating water
distribution systems either within or without the authority.
7. To levy and collect a general tax on all of the taxable
property within the corporate limits of the authority, the
aggregate amount of which for one year, exclusive of the amount
levied for bonded indebtedness or interest thereon, shall not
exceed .08 per cent of the value as equalized or assessed by
the Department of Revenue. For the purpose of acquiring
necessary property or facilities, to issue general obligation
bonds bearing interest at the rate of not to exceed the maximum
rate authorized by the Bond Authorization Act, as amended at
the time of the making of the contract, and payable over a
period of not to exceed 20 years, the aggregate principal

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amount of which at any one time outstanding shall not exceed
one-half of 1% of the value as equalized or assessed by the
Department of Revenue of all taxable property located within
the corporate limits of the authority and to levy and collect a
further or additional direct annual tax upon all the taxable
property within the corporate limits of such authority
sufficient to meet the principal and interest of such bonds as
the same mature. They shall also have authority to issue
revenue bonds payable solely out of anticipated revenues.
8. To consult with and receive available information
concerning their duties and responsibilities from the State
Water Survey, the State Geological Survey, the Board of Natural
Resources and Conservation, the Water Resources and Flood
Control Board and any other board or commission of the State.
Before constructing any facility for providing additional
water supply, the plans therefor shall be submitted to and
approved by the Environmental Protection Agency or its
successor and all operations of such facilities shall be
conducted in accordance with such rules and regulations as may
from time to time be prescribed by the Pollution Control Board.
9. To have the right by appropriate action in the circuit
court of any county in which such authority, or any part
thereof, is located to restrain any violation or threatened
violation of any of their orders, rules, regulations or
ordinances.
10. To provide by ordinance that the violation of any

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provision of any rule, regulation or ordinance adopted by them
shall constitute a misdemeanor subject to a fine by the circuit
court of not to exceed $50 for each act of violation and that
each day's violation shall constitute a separate offense.
11. On or after the effective date of this amendatory Act
of the 100th General Assembly, to bill for any utility service,
including previously unbilled service, supplied to a
residential customer within 12 months, or a non-residential
customer within 24 months, after the provision of that service
to the customer; however, the water authority may bill for
unpaid amounts that were billed to a customer or if the
customer was notified that there is an unpaid amount before the
effective date of this amendatory Act of the 100th General
Assembly for service that was supplied to the customer before
January 1, 2016. The time limit of this paragraph shall not
apply to previously unbilled service attributed to tampering,
theft of service, fraud, or the customer preventing the
utility's recorded efforts to obtain an accurate reading of the
meter. The trustees shall: (i) label any amount attributed to
previously unbilled service as such on the customer's bill and
include the beginning and ending dates for the period during
which the previously unbilled amount accrued; (ii) issue the
makeup billing amount calculated on a prorated basis to reflect
the varying rates for previously unbilled service accrued over
a period of time when the rates for service have varied; and
(iii) provide the customer with the option of a payment

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arrangement to retire the makeup bill for previously unbilled
service by periodic payments, without interest or late fees,
over a time equal to the amount of time the billing was
delayed. The trustees shall not intentionally delay billing
beyond the normal bill cycle.
With respect to instruments for the payment of money issued
under this Section either before, on, or after the effective
date of this amendatory Act of 1989, it is and always has been
the intention of the General Assembly (i) that the Omnibus Bond
Acts are and always have been supplementary grants of power to
issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be
or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and
(iii) that instruments issued under this Section within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those Acts.
(Source: P.A. 86-4.)
Section 25. The Water Commission Act of 1985 is amended by
changing Section 0.001b as follows:
(70 ILCS 3720/0.001b)
Sec. 0.001b. Powers and duties. A water commission has the

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power and duty to:
(1) establish and define the responsibilities of the
commission and its committees;
(2) establish and define the responsibilities of the
commission's management and staff;
(3) establish a finance committee to conduct monthly
meetings to supervise staff's handling of financial
matters and budgeting;
(4) require the finance director and treasurer to
report to the finance committee the status of all
commission funds and obligations;
(5) require the treasurer to report to the commission
any improper or unnecessary expenditures, budgetary
errors, or accounting irregularities;
(6) require commission staff to document and comply
with standard accounting policies, procedures, and
controls to ensure accurate reporting to the finance
committee and commission and to identify improper or
unnecessary expenditures, budgetary errors, or accounting
irregularities;
(7) require the commission's finance director to
provide monthly reports regarding the commission's cash
and investment position including whether the commission
has sufficient cash and investments to pay its debt
service, operating expenses, and capital expenditures and
maintain required reserve levels. The information shall

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include the required funding levels for restricted funds
and unrestricted cash and investment balances with
comparisons to unrestricted reserves. The information
shall also include the type and performance of the
commission's investments and description as to whether
those investments are in compliance with the commission's
investment policies;
(8) require the commission's finance director to
provide the commission with detailed information
concerning the commission's operating performance
including the budgeted and actual monthly amounts for water
sales, water costs, and other operating expenses;
(9) require commission staff to provide the commission
with detailed information regarding the progress of
capital projects including whether the percentage of
completion and costs incurred are timely;
(10) require the commission's staff accountant to
perform bank reconciliations and general ledger account
reconciliations on a monthly basis; the finance director
shall review these reconciliations and provide them to the
treasurer and the finance committee on a monthly basis;
(11) establish policies to ensure the proper
segregation of the financial duties performed by
employees;
(12) restrict access to the established accounting
systems and general ledger systems and provide for adequate

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segregation of duties so that no single person has sole
access and control over the accounting system or the
general ledger system;
(13) require that the finance director review and
approve all manual journal entries and supporting
documentation; the treasurer shall review and approve the
finance director's review and approval of manual journal
entries and supporting documentation;
(14) require that the finance director closely monitor
the progress of construction projects;
(15) require that the finance director carefully
document any GAAP analysis or communications with GASB and
provide full and timely reports for the same to the finance
committee; and
(16) retain an outside independent auditor to perform a
comprehensive audit of the water commission's financial
activities for each fiscal year in conformance with the
standard practices of the Association of Governmental
Auditors; within 30 days after the independent audit is
completed, the results of the audit must be sent to the
county auditor; and .
(17) on or after the effective date of this amendatory
Act of the 100th General Assembly, bill for any utility
service, including previously unbilled service, supplied
to a residential customer within 12 months, or a
non-residential customer within 24 months, after the

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provision of that service to the customer; however, the
water commission may bill for unpaid amounts that were
billed to a customer or if the customer was notified that
there is an unpaid amount before the effective date of this
amendatory Act of the 100th General Assembly for service
that was supplied to the customer before January 1, 2016.
The time limit of this paragraph shall not apply to
previously unbilled service attributed to tampering, theft
of service, fraud, or the customer preventing the utility's
recorded efforts to obtain an accurate reading of the
meter. The commission shall: (i) label any amount
attributed to previously unbilled service as such on the
customer's bill and include the beginning and ending dates
for the period during which the previously unbilled amount
accrued; (ii) issue the makeup billing amount calculated on
a prorated basis to reflect the varying rates for
previously unbilled service accrued over a period of time
when the rates for service have varied; and (iii) provide
the customer with the option of a payment arrangement to
retire the makeup bill for previously unbilled service by
periodic payments, without interest or late fees, over a
time equal to the amount of time the billing was delayed.
The commission shall not intentionally delay billing
beyond the normal bill cycle.
(Source: P.A. 96-1389, eff. 7-29-10.)
Section 99. Effective date. This Act takes effect upon

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becoming law.