Sen. Rachel Ventura

Filed: 3/14/2025

 

 


 

 


 
10400SB1513sam001LRB104 10303 RTM 23765 a

1
AMENDMENT TO SENATE BILL 1513

2    AMENDMENT NO. ______. Amend Senate Bill 1513 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Municipal Code is amended by
5changing Section 11-124-5 as follows:
 
6    (65 ILCS 5/11-124-5)
7    Sec. 11-124-5. Acquisition of water or sewer systems by
8eminent domain.
9    (a) In addition to other provisions providing for the
10acquisition of water systems or water works, whenever a public
11utility subject to the Public Utilities Act utilizes public
12property (including, but not limited to, right-of-way) of a
13municipality for the installation or maintenance of all or
14part of its water distribution system or sewer system, the
15municipality has the right to exercise eminent domain to
16acquire all or part of the water or sewer system, in accordance

 

 

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1with this Section. Unless it complies with the provisions set
2forth in this Section, a municipality is not permitted to
3acquire by eminent domain that portion of a system located in
4another incorporated municipality without agreement of that
5municipality, but this provision shall not prevent the
6acquisition of that portion of the water system existing
7within the acquiring municipality. A referendum to initiate a
8process by which a municipality may acquire a system by
9eminent domain may be called by a resolution by the relevant
10corporate authorities under subsection (a-5) or by the filing
11of a petition under subsection (a-10). Any municipality may
12initiate a process to acquire a system by eminent domain under
13subsection (a-5) or (a-10).
14    (a-5) If the corporate authorities of a municipality adopt
15a resolution calling for a referendum on a proposal to acquire
16a system by eminent domain, within the time provided in the
17general election law, then the corporate authorities shall
18provide for the submission of the proposal to the electors of
19the municipality in accordance with this Section at the next
20general election held in an even-numbered year. The
21proposition shall be in substantially the following form:
22        Shall the municipality of (name of municipality)
23    initiate a process to determine the feasibility of
24    acquiring (name of the public utility) and, upon
25    determining that such an acquisition is possible,
26    undertake to acquire (name of the water or sewer system)

 

 

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1    by eminent domain?
2        The votes shall be recorded as "Yes" or "No".
3    If a majority of the electors voting on the referendum
4within the service area of the water or sewer utility vote in
5favor of the referendum, then the municipality shall undertake
6a process to determine the feasibility of acquiring the system
7in accordance with subsection (f) and it shall, upon a finding
8that such an undertaking is feasible, initiate an acquisition
9via eminent domain in accordance with this Section. If less
10than a majority of the electors voting on the referendum
11within the service area of the water or sewer utility vote in
12favor of the referendum, then the municipality shall not
13initiate a procedure to determine the feasibility of
14acquisition and shall not subsequently attempt to acquire the
15system for a period of not less than 2 years after the
16referendum.
17    (a-10) Upon the filing of a petition signed by the number
18of registered voters required by this subsection (a-10) with
19the clerk of a circuit court having jurisdiction over the
20municipality, within the time provided in the general election
21law, that requests the initiation of a process by which a
22municipality may acquire a water or sewer system by eminent
23domain, the clerk of the circuit court shall transmit the
24petition to the chief judge of the circuit court who shall
25determine the sufficiency of the petition or assign the
26determination of the sufficiency of the petition to a circuit

 

 

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1judge who shall make the determination. For a municipality
2with a population greater than or equal to 500,000, the
3petition under this subsection (a-10) shall be signed by 5% of
4the registered voters in the municipality or 10,000
5individuals, whichever is less. For a county with a population
6less than 500,000, the petition under this subsection (a-10)
7shall be signed by 5% of the registered voters in the
8municipality or 1,000 individuals, whichever is less. If the
9judge determines that the petition is sufficient, then the
10judge shall certify the sufficiency of the petition and issue
11an order directing the county clerk and the county board to
12provide for the submission of the proposition to the electors
13of the municipality at the next general election held in an
14even-numbered year. The referendum shall be conducted in such
15a manner as is prescribed in the general election law. The
16proposition shall be in substantially the following form:
17        Shall the municipality of (name of municipality)
18    initiate a process to determine the feasibility of
19    acquiring (name of the public utility) and, upon
20    determining that such an acquisition is possible,
21    undertake to acquire (name of the water or sewer system)
22    by eminent domain?
23        The votes shall be recorded as "Yes" or "No".
24    If a majority of the electors voting on the referendum
25within the service area of the water or sewer utility vote in
26favor of the referendum, then the municipality may undergo a

 

 

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1process to determine the feasibility of acquiring the system
2in accordance with subsection (f) and, upon a finding that
3such an undertaking is feasible, initiate an acquisition via
4eminent domain in accordance with this Section. If less than a
5majority of the electors voting on the referendum within the
6service area of the water or sewer utility vote in favor of the
7referendum, then the municipality shall not initiate a
8procedure to determine the feasibility of acquisition and
9shall not subsequently attempt to acquire the system for a
10period of not less than 2 years after the referendum.
11    (b) Where a water or sewer system that is owned by a public
12utility (as defined in the Public Utilities Act) provides
13water or sewer services to customers located in 2 or more
14municipalities, the system may be acquired by a majority of
15the municipalities by eminent domain. If the system is to be
16acquired by more than one municipality, then there must be an
17intergovernmental agreement in existence between the acquiring
18municipalities providing for the acquisition.
19    (c) If a water or sewer system that is owned by a public
20utility provides water or sewer services to customers located
21in one or more municipalities and also to customers in an
22unincorporated area and if at least 70% of the customers of the
23system or portion thereof are located within the municipality
24or municipalities, then the system, or portion thereof as
25determined by the corporate authorities, may be acquired,
26using eminent domain or otherwise, by either a municipality

 

 

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1under subsection (a) or an entity created by agreement between
2municipalities where at least 70% of the customers reside. For
3the purposes of determining "customers of the system", only
4retail customers directly billed by the company shall be
5included in the computation. The number of customers of the
6system most recently reported to the Illinois Commerce
7Commission for any calendar year preceding the year a
8resolution is passed by a municipality or municipalities
9expressing preliminary intent to purchase the water system or
10portion thereof shall be presumed to be the total number of
11customers within the system. The public utility shall provide
12information relative to the number of customers within each
13municipality and within the system within 60 days after any
14such request by a municipality.
15    (d) In the case of acquisition by a municipality or
16municipalities or a public entity created by law to own or
17operate a water system under this Section, service and water
18supply must be provided to persons who are customers of the
19system on the effective date of this amendatory Act of the 94th
20General Assembly without discrimination based on whether the
21customer is located within or outside of the boundaries of the
22acquiring municipality or municipalities or entity, and a
23supply contract existing on the effective date of this
24amendatory Act of the 94th General Assembly must be honored by
25an acquiring municipality, municipalities, or entity according
26to the terms so long as the agreement does not conflict with

 

 

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1any other existing agreement.
2    (e) For the purposes of this Section, "system" includes
3all assets reasonably necessary to provide water or sewer
4service to a contiguous or compact geographical service area
5or to an area served by a common pipeline and include, but are
6not limited to, interests in real estate, all wells, pipes,
7treatment plants, pumps and other physical apparatus, data and
8records of facilities and customers, fire hydrants, equipment,
9or vehicles and also includes service agreements and
10obligations derived from use of the assets, whether or not the
11assets are contiguous to the municipality, municipalities, or
12entity created for the purpose of owning or operating a water
13or sewer system.
14    (f) Before making a good faith offer, a municipality may
15pass a resolution of intent to study the feasibility of
16purchasing or exercising its power of eminent domain to
17acquire any water system or water works, sewer system or sewer
18works, or combined water and sewer system or works, or part
19thereof. Upon the passage of such a resolution, the
20municipality shall have the right to review and inspect all
21financial and other records, and both corporeal and
22incorporeal assets of such utility related to the condition
23and the operation of the system or works, or part thereof, as
24part of the study and determination of feasibility of the
25proposed acquisition by purchase or exercise of the power of
26eminent domain, and the utility shall make knowledgeable

 

 

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1persons who have access to all relevant facts and information
2regarding the subject system or works available to answer
3inquiries related to the study and determination.
4    The right to review and inspect shall be upon reasonable
5notice to the utility, with reasonable inspection and review
6time limitations and reasonable response times for production,
7copying, and answer. In addition, the utility may utilize a
8reasonable security protocol for personnel on the
9municipality's physical inspection team.
10    In the absence of other agreement, the utility must
11respond to any notice by the municipality concerning its
12review and inspection within 21 days after receiving the
13notice. The review and inspection of the assets of the company
14shall be over such period of time and carried out in such
15manner as is reasonable under the circumstances.
16    Information requested that is not privileged or protected
17from discovery under the Illinois Code of Civil Procedure but
18is reasonably claimed to be proprietary, including, without
19limitation, information that constitutes trade secrets or
20information that involves system security concerns, shall be
21provided, but shall not be considered a public record and
22shall be kept confidential by the municipality.
23    In addition, the municipality must, upon request,
24reimburse the utility for the actual, reasonable costs and
25expenses, excluding attorneys' fees, incurred by the utility
26as a result of the municipality's inspection and requests for

 

 

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1information. Upon written request, the utility shall issue a
2statement itemizing, with reasonable detail, the costs and
3expenses for which reimbursement is sought by the utility.
4Where such written request for a statement has been made, no
5payment shall be required until 30 days after receipt of the
6statement. Such reimbursement by the municipality shall be
7considered income for purposes of any rate proceeding or other
8financial request before the Illinois Commerce Commission by
9the utility.
10    The municipality and the utility shall cooperate to
11resolve any dispute arising under this subsection. In the
12event the dispute under this subsection cannot be resolved,
13either party may request relief from the circuit court in any
14county in which the water system is located, with the
15prevailing party to be awarded such relief as the court deems
16appropriate under the discovery abuse sanctions currently set
17forth in the Illinois Code of Civil Procedure.
18    The municipality's right to inspect physical assets and
19records in connection with the purpose of this Section shall
20not be exercised with respect to any system more than one time
21during a 5-year period, unless a substantial change in the
22size of the system or condition of the operating assets of the
23system has occurred since the previous inspection. Rights
24under franchise agreements and other agreements or statutory
25or regulatory provisions are not limited by this Section and
26are preserved.

 

 

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1    The passage of time between an inspection of the utilities
2and physical assets and the making of a good faith offer or
3initiation of an eminent domain action because of the limit
4placed on inspections by this subsection shall not be used as a
5basis for challenging the good faith of any offer or be used as
6the basis for attacking any appraisal, expert, argument, or
7position before a court related to an acquisition by purchase
8or eminent domain.
9    (g) Notwithstanding any other provision of law, the
10Illinois Commerce Commission has no approval authority of any
11eminent domain action brought by any governmental entity or
12combination of such entities to acquire water or sewer systems
13or water works, except as is provided in subsection (h) of
14Section 10-5-10 of the Eminent Domain Act.
15    (h) The provisions of this Section are severable under
16Section 1.31 of the Statute on Statutes.
17    (i) This Section does not apply to any public utility
18company that, on January 1, 2006, supplied a total of 70,000 or
19fewer meter connections in the State unless and until (i) that
20public utility company receives approval from the Illinois
21Commerce Commission under Section 7-204 of the Public
22Utilities Act for the reorganization of the public utility
23company or (ii) the majority control of the company changes
24through a stock sale, a sale of assets, a merger (other than an
25internal reorganization) or otherwise. For the purpose of this
26Section, "public utility company" means the public utility

 

 

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1providing water or sewer service and includes any of its
2corporate parents, subsidiaries, or affiliates possessing a
3franchised water or sewer service in the State.
4    (j) Any contractor or subcontractor that performs work on
5a water system acquired by a municipality or municipalities
6under this Section shall comply with the requirements of
7Section 30-22 of the Illinois Procurement Code. The contractor
8or subcontractor shall submit evidence of compliance with
9Section 30-22 to the municipality or municipalities.
10    (k) The municipality or municipalities acquiring the water
11system shall offer available employee positions to the
12qualified employees of the acquired water system.
13    (l) The acquisition of systems by eminent domain through
14the procedures described in this Section is declared to be a
15special use under Section 10-5-60 of the Eminent Domain Act.
16Accordingly, the acquisition price shall be the price for
17which the system was purchased from the municipality by a
18private entity, plus the cost of actual improvement to the
19system by the private entity, minus the cost of depreciation
20of the assets and any public moneys or assets given to the
21public utility for the purpose of improving the water or sewer
22service, accounting for the rate of inflation between the time
23of purchase by the private entity and the time of acquisition
24by the municipality.
25(Source: P.A. 103-13, eff. 6-9-23.)
 

 

 

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1    Section 10. The Public Utilities Act is amended by
2changing Section 9-210.5 as follows:
 
3    (220 ILCS 5/9-210.5)
4    (Section scheduled to be repealed on June 1, 2028)
5    Sec. 9-210.5. Valuation of water and sewer utilities.
6    (a) In this Section:
7        "Disinterested" means that the person directly
8    involved (1) is not a director, officer, or an employee of
9    the large public utility or the water or sewer utility or
10    its direct affiliates or subsidiaries for at least 12
11    months before becoming engaged under this Section; (2)
12    shall not derive a material financial benefit from the
13    sale of the water or sewer utility other than fees for
14    services rendered, and (3) shall not have a member of the
15    person's immediate family, including a spouse, parents or
16    spouse's parents, children or spouses of children, or
17    siblings and their spouses or children, be a director,
18    officer, or employee of either the large public utility or
19    water or sewer utility or the water or sewer utility or its
20    direct affiliates or subsidiaries for at least 12 months
21    before becoming engaged under this Section or receive a
22    material financial benefit from the sale of the water or
23    sewer utility other than fees for services rendered.
24        "District" means a service area of a large public
25    utility whose customers are subject to the same rate

 

 

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1    tariff.
2        "Large public utility" means an investor-owned public
3    utility that:
4            (1) is subject to regulation by the Illinois
5        Commerce Commission under this Act;
6            (2) regularly provides water or sewer service to
7        more than 15,000 customer connections;
8            (3) provides safe and adequate service; and
9            (4) is not a water or sewer utility as defined in
10        this subsection (a).
11        "Next rate case" means a large public utility's first
12    general rate case after the date the large public utility
13    acquires the water or sewer utility where the acquired
14    water or sewer utility's cost of service is considered as
15    part of determining the large public utility's resulting
16    rates.
17        "Prior rate case" means a large public utility's
18    general rate case resulting in the rates in effect for the
19    large public utility at the time it acquires the water or
20    sewer utility.
21        "Utility service source" means the water or sewer
22    utility or large public utility from which the customer
23    receives its utility service type.
24        "Utility service type" means water utility service or
25    sewer utility service or water and sewer utility service.
26        "Water or sewer utility" means any of the following:

 

 

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1            (1) a public utility that regularly provides water
2        or sewer service to 6,000 or fewer customer
3        connections;
4            (2) a water district, including, but not limited
5        to, a public water district, water service district,
6        or surface water protection district, or a sewer
7        district of any kind established as a special district
8        under the laws of this State that regularly provides
9        water or sewer service;
10            (3) a waterworks system or sewerage system
11        established under the Township Code that regularly
12        provides water or sewer service; or
13            (4) a water system or sewer system owned by a
14        municipality that regularly provides water or sewer
15        service; and
16            (5) any other entity that is not a public utility
17        that regularly provides water or sewer service.
18    (b) Notwithstanding any other provision of this Act, a
19large public utility that acquires a water or sewer utility
20may request that the Commission use, and, if so requested, the
21Commission shall use, the procedures set forth under this
22Section to establish the ratemaking rate base of that water or
23sewer utility at the time when it is acquired by the large
24public utility.
25    (c) If a large public utility elects the procedures under
26this Section to establish the rate base of a water or sewer

 

 

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1utility that it is acquiring, then 3 appraisals shall be
2performed. The average of these 3 appraisals shall represent
3the fair market value of the water or sewer utility that is
4being acquired. The appraisals shall be performed by 3
5appraisers approved by the Commission's Executive Director or
6designee and engaged by either the water or sewer utility
7being acquired or by the large public utility. Each appraiser
8shall be engaged on reasonable terms approved by the
9Commission. Each appraiser shall be a disinterested person
10licensed as a State certified general real estate appraiser
11under the Real Estate Appraiser Licensing Act of 2002.
12    Each appraiser shall:
13        (1) be sworn to determine the fair market value of the
14    water or sewer utility by establishing the amount for
15    which the water or sewer utility would be sold in a
16    voluntary transaction between a willing buyer and willing
17    seller under no obligation to buy or sell;
18        (2) determine fair market value in compliance with the
19    Uniform Standards of Professional Appraisal Practice;
20        (3) engage one disinterested engineer who is licensed
21    in this State, and who may be the same engineer that is
22    engaged by the other appraisers, to prepare an assessment
23    of the tangible assets of the water or sewer utility,
24    which is to be incorporated into the appraisal under the
25    cost approach;
26        (4) request from the manager of the Accounting

 

 

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1    Department, if the water or sewer utility is a public
2    utility that is regulated by the Commission, a list of
3    investments made by the water or sewer utility that had
4    been disallowed previously and that shall be excluded from
5    the calculation of the large public utility's rate base in
6    its next rate case; and
7        (5) return their appraisal, in writing, to the water
8    or sewer utility and large public utility in a reasonable
9    and timely manner.
10    If the appraiser cannot engage an engineer, as described
11in paragraph (3) of this subsection (c), within 30 days after
12the appraiser is engaged, then the Commission's Executive
13Director or designee shall recommend the engineer the
14appraiser should engage. The Commission's Executive Director
15or designee shall provide his or her recommendation within 30
16days after he or she is officially notified of the appraiser's
17failure to engage an engineer and the appraiser shall promptly
18work to engage the recommended engineer. If the appraiser is
19unable to negotiate reasonable engagement terms with the
20recommended engineer within 15 days after the recommendation
21by the Commission's Executive Director or designee, then the
22appraiser shall notify the Commission's Executive Director or
23designee and the process shall be repeated until an engineer
24is successfully engaged.
25    (d) The lesser of (i) the purchase price or (ii) the fair
26market value determined under subsection (c) of this Section

 

 

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1shall constitute the rate base associated with the water or
2sewer utility as acquired by and incorporated into the rate
3base of the district designated by the acquiring large public
4utility under this Section, subject to any adjustments that
5the Commission deems necessary to ensure such rate base
6reflects prudent and useful investments in the provision of
7public utility service. The reasonable transaction and closing
8costs incurred by the large public utility shall be treated
9consistent with the applicable accounting standards under this
10Act. The total amount of all of the appraisers' fees to be
11included in the transaction and closing costs shall not exceed
12the greater of $15,000 or 5% of the appraised value of the
13water or sewer utility being acquired. This rate base
14treatment shall not be deemed to violate this Act, including,
15but not limited to, any Sections in Articles VIII and IX of
16this Act that might be affected by this Section. Any
17acquisition of a water or sewer utility that affects the
18cumulative base rates of the large public utility's existing
19ratepayers in the tariff group into which the water or sewer
20utility is to be combined by less than (1) 2.5% at the time of
21the acquisition for any single acquisition completed under
22this Section or (2) 5% for all acquisitions completed under
23this Section before the Commission's final order in the next
24rate case shall not be deemed to violate Section 7-204 or any
25other provision of this Act.
26    In the Commission's order that approves the large public

 

 

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1utility's acquisition of the water or sewer utility, the
2Commission shall issue its decision establishing (1) the
3ratemaking rate base of the water or sewer utility; (2) the
4district or tariff group with which the water or sewer utility
5shall be combined for ratemaking purposes, if such combination
6has been proposed by the large public utility; and (3) the
7rates to be charged to customers in the water or sewer utility.
8    (e) If the water or sewer utility being acquired is owned
9by the State or any political subdivision thereof, then the
10water or sewer utility must inform the public of the terms of
11its acquisition by the large public utility by (1) holding a
12public meeting prior to the acquisition and (2) causing to be
13published, in a newspaper of general circulation in the area
14that the water or sewer utility operates, a notice setting
15forth the terms of its acquisition by the large public utility
16and options that shall be available to assist customers to pay
17their bills after the acquisition. At the election next
18following the public meeting and notice required under this
19subsection (e), a referendum, subject to the requirements of
20Section 16-7 of the Election Code, shall be placed on the
21ballot for all electors within the area where the water or
22sewer utility operates in substantially the following form:
23        May the (name of large public utility) acquire the
24    (name of water or sewer utility) under the terms of
25    acquisition as published in (name of newspaper) on (date)?
26        The votes shall be recorded as "Yes" or "No".

 

 

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1    If a majority of the electors voting on the referendum
2within the service area of the water or sewer utility vote in
3favor of the referendum, then the acquisition may continue as
4provided in this Section. If less than a majority of the
5electors voting on the referendum within the service area of
6the water or sewer utility vote in favor of the referendum,
7then the Commission shall deny the large public utility's
8acquisition of the water or sewer utility.
9    (f) The large public utility may recommend the district or
10tariff group of which the water or sewer utility shall, for
11ratemaking purposes, become a part after the acquisition, or
12may recommend a lesser rate for the water or sewer utility. If
13the large public utility recommends a lesser rate, it shall
14submit to the Commission its proposed rate schedule and the
15proposed final tariff group for the acquired water or sewer
16utility. The Commission's approved district or tariff group or
17rates shall be consistent with the large public utility's
18recommendation, unless such recommendation can be shown to be
19contrary to the public interest.
20    (g) From the date of acquisition until the date that new
21rates are effective in the acquiring large public utility's
22next rate case, the customers of the acquired water or sewer
23utility shall pay the approved then-existing rates of the
24district or tariff group as ordered by the Commission, or some
25lesser rates as recommended by the large public utility and
26approved by the Commission under subsection (f); provided,

 

 

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1that, if the application of such rates of the large public
2utility to customers of the acquired water or sewer utility
3using 54,000 gallons annually results in an increase to the
4total annual bill of customers of the acquired water or sewer
5utility, exclusive of fire service or related charges, then
6the large public utility's rates charged to the customers of
7the acquired water or sewer utility shall be uniformly
8reduced, if any reduction is required, by the percent that
9results in the total annual bill, exclusive of fire services
10or related charges, for the customers of the acquired water or
11sewer utility using 54,000 gallons being equal to 1.5% of the
12latest median household income as reported by the United
13States Census Bureau for the most applicable community or
14county. For each customer of the water or sewer utility with
15potable water usage values that cannot be reasonably obtained,
16a value of 4,500 gallons per month shall be assigned. These
17rates shall not be deemed to violate this Act including, but
18not limited to, Section 9-101 and any other applicable
19Sections in Articles VIII and IX of this Act. The Commission
20shall issue its decision establishing the rates effective for
21the water or sewer utility immediately following an
22acquisition in its order approving the acquisition.
23    (h) In the acquiring large public utility's next rate
24case, the water or sewer utility and the district or tariff
25group ordered by the Commission and their costs of service may
26be combined under the same rate tariff. This rate tariff shall

 

 

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1be based on allocation of costs of service of the acquired
2water or sewer utility and the large public utility's district
3or tariff group ordered by the Commission and utilizing a rate
4design that does not distinguish among customers on the basis
5of utility service source or type. This rate tariff shall not
6be deemed to violate this Act including, but not limited to,
7Section 9-101 of this Act. In the acquiring large public
8utility's 2 rate cases after an acquisition, but in no
9subsequent rate case, the large public utility may file a rate
10tariff for a water or sewer utility acquired under this
11Section that establishes lesser rates than the district or
12tariff group into which the water or sewer utility is to be
13combined. Those lesser rates shall not be deemed to violate
14Section 7-204 or any other provision of this Act if they affect
15the cumulative base rates of the large public utility's
16existing rate payers in the district or tariff by less than
172.5%.
18    (i) Any post-acquisition improvements made by the large
19public utility in the water or sewer utility shall accrue a
20cost for financing set at the large public utility's
21determined rate for allowance for funds used during
22construction, inclusive of the debt, equity, and income tax
23gross up components, after the date on which the expenditure
24was incurred by the large public utility until the investment
25has been in service for a 4-year period or, if sooner, until
26the time the rates are implemented in the large public

 

 

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1utility's next rate case.
2    Any post-acquisition improvements made by the large public
3utility in the water or sewer utility shall not be depreciated
4for ratemaking purposes from the date on which the expenditure
5was incurred by the large public utility until the investment
6has been in service for a 4-year period or, if sooner, until
7the time the rates are implemented in the large public
8utility's next rate case.
9    (j) This Section shall be exclusively applied to large
10public utilities in the voluntary and mutually agreeable
11acquisition of water or sewer utilities. Any petitions filed
12with the Commission related to the acquisitions described in
13this Section, including petitions seeking approvals or
14certificates required by this Act, shall be deemed approved
15unless the Commission issues its final order within 11 months
16after the date the large public utility filed its initial
17petition. This Section shall only apply to utilities providing
18water or sewer service and shall not be construed in any manner
19to apply to electric corporations, natural gas corporations,
20or any other utility subject to this Act.
21    (k) Nothing in this Section shall prohibit a party from
22declining to proceed with an acquisition or be deemed as
23establishing the final purchase price of an acquisition.
24    (l) In the Commission's order that approves the large
25utility's acquisition of the water or sewer utility, the
26Commission shall address each aspect of the acquisition

 

 

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1transaction for which approval is required under the Act.
2    (m) Any contractor or subcontractor that performs work on
3a water or sewer utility acquired by a large public utility
4under this Section shall be a responsible bidder as described
5in Section 30-22 of the Illinois Procurement Code. The
6contractor or subcontractor shall submit evidence of meeting
7the requirements to be a responsible bidder as described in
8Section 30-22 to the water or sewer utility. Any new water or
9sewer facility built as a result of the acquisition shall
10require the contractor to enter into a project labor
11agreement. The large public utility acquiring the water or
12sewer utility shall offer employee positions to qualified
13employees of the acquired water or sewer utility.
14    (n) This Section is repealed on June 1, 2028.
15(Source: P.A. 102-149, eff. 1-1-22.)
 
16    Section 15. The Eminent Domain Act is amended by changing
17Section 10-5-10 as follows:
 
18    (735 ILCS 30/10-5-10)  (was 735 ILCS 5/7-102)
19    Sec. 10-5-10. Parties.
20    (a) When the right (i) to take private property for public
21use, without the owner's consent, (ii) to construct or
22maintain any public road, railroad, plankroad, turnpike road,
23canal, or other public work or improvement, or (iii) to damage
24property not actually taken has been or is conferred by

 

 

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1general law or special charter upon any corporate or municipal
2authority, public body, officer or agent, person,
3commissioner, or corporation and when (i) the compensation to
4be paid for or in respect of the property sought to be
5appropriated or damaged for the purposes mentioned cannot be
6agreed upon by the parties interested, (ii) the owner of the
7property is incapable of consenting, (iii) the owner's name or
8residence is unknown, or (iv) the owner is a nonresident of the
9State, then the party authorized to take or damage the
10property so required, or to construct, operate, and maintain
11any public road, railroad, plankroad, turnpike road, canal, or
12other public work or improvement, may apply to the circuit
13court of the county where the property or any part of the
14property is situated, by filing with the clerk a complaint.
15The complaint shall set forth, by reference, (i) the
16complainant's authority in the premises, (ii) the purpose for
17which the property is sought to be taken or damaged, (iii) a
18description of the property, and (iv) the names of all persons
19interested in the property as owners or otherwise, as
20appearing of record, if known, or if not known stating that
21fact; and shall pray the court to cause the compensation to be
22paid to the owner to be assessed.
23    (b) If it appears that any person not in being, upon coming
24into being, is, or may become or may claim to be, entitled to
25any interest in the property sought to be appropriated or
26damaged, the court shall appoint some competent and

 

 

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1disinterested person as guardian ad litem to appear for and
2represent that interest in the proceeding and to defend the
3proceeding on behalf of the person not in being. Any judgment
4entered in the proceeding shall be as effectual for all
5purposes as though the person was in being and was a party to
6the proceeding.
7    (c) If the proceeding seeks to affect the property of
8persons under guardianship, the guardians shall be made
9parties defendant.
10    (d) Any interested persons whose names are unknown may be
11made parties defendant by the same descriptions and in the
12same manner as provided in other civil cases.
13    (e) When the property to be taken or damaged is a common
14element of property subject to a declaration of condominium
15ownership, pursuant to the Condominium Property Act, or of a
16common interest community, the complaint shall name the unit
17owners' association in lieu of naming the individual unit
18owners and lienholders on individual units. Unit owners,
19mortgagees, and other lienholders may intervene as parties
20defendant. For the purposes of this Section, "common interest
21community" has the same meaning as set forth in subsection (c)
22of Section 9-102 of the Code of Civil Procedure. "Unit owners'
23association" or "association" shall refer to both the
24definition contained in Section 2 of the Condominium Property
25Act and subsection (c) of Section 9-102 of the Code of Civil
26Procedure.

 

 

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1    (f) When the property is sought to be taken or damaged by
2the State for the purposes of establishing, operating, or
3maintaining any State house or State charitable or other
4institutions or improvements, the complaint shall be signed by
5the Governor, or the Governor's designee, or as otherwise
6provided by law.
7    (g) No property, except property described in Section 3 of
8the Sports Stadium Act, property to be acquired in furtherance
9of actions under Article 11, Divisions 124, 126, 128, 130,
10135, 136, and 139, of the Illinois Municipal Code, property to
11be acquired in furtherance of actions under Section 3.1 of the
12Intergovernmental Cooperation Act, property to be acquired
13that is a water system or waterworks pursuant to the home rule
14powers of a unit of local government, property described as
15Site B in Section 2 of the Metropolitan Pier and Exposition
16Authority Act, and property that may be taken as provided in
17the Public-Private Agreements for the South Suburban Airport
18Act belonging to a railroad or other public utility subject to
19the jurisdiction of the Illinois Commerce Commission, may be
20taken or damaged, pursuant to the provisions of this Act,
21without the prior approval of the Illinois Commerce
22Commission.
23    (h) Notwithstanding subsection (g), property belonging to
24a public utility that provides water or sewer service and that
25is subject to the jurisdiction of the Illinois Commerce
26Commission may not be taken or damaged by eminent domain

 

 

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1without prior approval of the Illinois Commerce Commission,
2except for: (1) property to be acquired under subsection (a-5)
3or (a-10) of Section 11-124-5 of the Illinois Municipal Code;
4and (2) property to be acquired by a municipality with 140,000
5or more inhabitants or a regional water commission formed
6under Article 11, Division 135.5 of the Illinois Municipal
7Code or a municipality that is a member of such a regional
8water commission, only in furtherance of purposes authorized
9under Article 11, Division 135.5 of the Illinois Municipal
10Code, and limited solely to interests in real property and not
11improvements to or assets on the real property belonging to a
12public utility that provides water or sewer service and that
13is subject to the jurisdiction of the Illinois Commerce
14Commission. This subsection does not apply to any action
15commenced prior to the effective date of this amendatory Act
16of the 103rd General Assembly under this Section or Section
1711-124-5 or 11-139-12 of the Illinois Municipal Code.
18(Source: P.A. 103-13, eff. 6-9-23.)".