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

 

HB0463LRB100 05572 RJF 15586 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by adding
5Section 5-119 as follows:
 
6    (220 ILCS 5/5-119 new)
7    Sec. 5-119. Prevent unfairness in pricing of water assets
8acquired by governmental purchasers.
9    (a) In this Section:
10    "Illinois governmental purchaser" means the State of
11Illinois, any State agency, department, or division, or any
12municipality, county, city, township, water district, or other
13body politic or political subdivision of the State of Illinois.
14    "Water assets" means a water utility or water distribution
15company or any of its assets, facilities, piping, pumping and
16lift stations, water sources and rights, real estate,
17easements, intangibles, franchises, or other properties.
18    (b) In determining the value or price for the purchase or
19acquisition of water assets by an Illinois governmental
20purchaser, whether in an eminent domain proceeding or any other
21exercise of a right possessed by an Illinois governmental
22purchaser to purchase or acquire water assets (by contract or
23statute), the determination of value or price to be paid for

 

 

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1the water assets:
2        (1) may not distinguish, penalize, or increase the
3    value or price to be paid by an Illinois governmental
4    purchaser for the purchase or acquisition of water assets
5    because the purchaser or acquirer: is an Illinois
6    governmental purchaser or public body; does not pay income,
7    property, or other taxes; has or may have taxing or
8    ratemaking authority; or has other supposed or real
9    advantages as an Illinois governmental purchaser over a
10    private purchaser; or
11        (2) may not use as a factor any excess of replacement
12    cost new minus depreciation over the value or price based
13    on fair market value of the water assets to be acquired or
14    purchased, as determined by what a willing buyer in the
15    private sector would value, price, or pay for the water
16    assets.
17    (c) The intent of paragraphs (1) and (2) of subsection (b)
18is to put an Illinois governmental purchaser on equal footing
19for valuation and price determination purposes with private
20purchasers in a free and open marketplace with respect to
21determining values or prices to be paid for water assets and
22actual valuing, pricing, and purchasing water assets.
23    (d) This Section shall apply to all valuations or price
24determinations made or to be made or determined after the
25effective date of this amendatory Act of the 100th General
26Assembly, except: (1) in the case of paragraph (1) of

 

 

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1subsection (b), for contracts already in place on the effective
2date of this amendatory Act of the 100th General Assembly that
3expressly require or provide that the value of the water assets
4be priced or valued on a basis that takes into account that the
5benefits of the purchaser as a public body over or as opposed
6to a private body; and (2) in the case of paragraph (2) of
7subsection (b), for contracts already in place on the effective
8date of this amendatory Act of the 100th General Assembly that
9expressly require or provide that the value or price to be paid
10for water assets may or must take into account the replacement
11cost new minus depreciation of the water assets to be valued or
12priced, even though such cost is in excess of a fair market
13price that a private purchaser would value, price, or pay for
14such assets.
 
15    Section 97. Severability. The provisions of this Act are
16severable under Section 1.31 of the Statute on Statutes.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.