SB3566 104TH GENERAL ASSEMBLY

LRB104 19944 LNS 33394 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3566

Introduced 2/5/2026, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

625 ILCS 5/3-805	from Ch. 95 1/2, par. 3-805
625 ILCS 5/3-805.1 new

Amends the Illinois Vehicle Code. Provides that, beginning July 1, 2027, an electric vehicle owner may register an electric vehicle with any qualifying registration, and an additional $320 surcharge shall be collected in addition to the applicable registration fee. Provides that, beginning July 1, 2028, the Secretary shall annually adjust the electric vehicle registration surcharge by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in March of the year in which the increase takes place. Establishes the Road Usage Charge Program to be implemented by Secretary of State to be used in lieu of the fees levied for electric vehicle owners. Requires the Secretary to adopt rules to implement the Program. Allows the Secretary to impose a penalty for failure to timely pay a road usage charge according to the terms of the Program or tampering with a device necessary for the Program. Provides that if enrolled in the Program, the owner of an electric vehicle shall: report mileage driven; pay the road usage fee for each payment period; and comply with all other provisions and other requirements of the Program. Provides that beginning July 1, 2027, the road usage charge rate is 1.5 cent per mile and the road usage charge cap is $320 for an annual registration. Requires the Secretary to annually adjust the road usage charge rate and the road usage charge cap by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in March of the year in which the increase takes place. Provides that revenue generated by the Program and relevant penalties shall be distributed in the same manner revenue from the motor fuel tax is distributed after covering the costs to administer the Program.

A BILL FOR

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Vehicle Code is amended by changing Section 3-805 and by adding Section 3-805.1 as follows:

(625 ILCS 5/3-805) (from Ch. 95 1/2, par. 3-805)

Sec. 3-805. Electric vehicles.

(a) The owner of a motor vehicle of the first division or a motor vehicle of the second division weighing 8,000 pounds or less propelled by an electric engine and not utilizing motor fuel may register such vehicle for a registration fee equal to the fee set forth in Section 3-806 for motor vehicles of the first division, other than Autocycles, Motorcycles, Motor Driven Cycles, and Pedalcycles. In addition to the registration fees, the Secretary shall assess an additional $100 per year in lieu of the payment of motor fuel taxes. $1 of the additional fees shall be deposited into the Secretary of State Special Services Fund and the remainder of the additional fees shall be deposited into the Road Fund.

(b) Beginning with the 2023 registration year and until July 1, 2027, upon the request of the vehicle owner, an electric vehicle owner may register an electric vehicle with any qualifying registration issued under this Chapter, and an additional $100 surcharge shall be collected in addition to the applicable registration fee. The $100 additional fee is to identify the vehicle as an electric vehicle. The $100 additional fee is an annual, flat fee that shall be based on an applicant's new or existing registration year for the vehicle's corresponding weight category. A designation as an electric vehicle under this subsection shall not alter a vehicle's registration. Of the additional fees, $1 shall be deposited into the Secretary of State Special Services Fund, and the remainder of the additional fees shall be deposited into the Road Fund. The Secretary shall adopt any rules necessary to implement this subsection (b).

(c) Beginning July 1, 2027, an electric vehicle owner may register an electric vehicle with any qualifying registration issued under this Chapter, and an additional $320 surcharge shall be collected in addition to the applicable registration fee. Of the additional fees, $1 shall be deposited into the Secretary of State Special Services Fund, and the remainder of the additional fees shall be deposited into the Road Fund. In lieu of the fee levied in this subsection, an electric vehicle owner may instead choose to enroll in the Road Usage Charge Program, as outlined in Section 3-805.1. The Secretary shall adopt any rules necessary to implement this subsection.

(d) Beginning July 1, 2028, the Secretary of State shall annually adjust the electric vehicle registration surcharge as described in subsection (c) by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in March of the year in which the increase takes place. The percentage increase in the Consumer Price Index shall be calculated as follows:

(1) Calculate the average Consumer Prices Index for the full 12 months ending in March of the year in which the increase takes place.

(2) Calculate the average Consumer Price Index for the full 12 months ending in March of the year immediately preceding the year in which the increase takes place.

(3) Calculate the percentage increase, if any, in the current-year average determined under paragraph (1) over the preceding-year average determined under paragraph (2).

The rate shall be rounded to the nearest one-tenth of one cent.

(Source: P.A. 101-32, eff. 6-28-19; 102-154, eff. 1-1-22.)

(625 ILCS 5/3-805.1 new)

Sec. 3-805.1. Road Usage Charge Program.

(a) As used in this Section:

"Account manager" means an entity under contract with the Secretary of State to administer and manage the road usage charge program.

"Electric vehicle" means any vehicle that is required to be registered under Section 3-805.

"Payment period" means the interval during which an owner is required to report mileage and pay the appropriate road usage charge according to the terms of the Program.

"Program" means the Road Usage Charge Program established and described in this Section.

"Road usage charge cap" means the maximum fee charged to a participant in the Program for a registration period.

"Road usage charge rate" means the per-mile usage fee charged to a participant in the Program.

(b) There is established the Road Usage Charge Program.

(c) Beginning July 1, 2027, the Secretary of State shall implement and oversee the administration of the Program. To implement and administer the Program, the Secretary of State may contract with an account manager.

(d) The owner of an electric vehicle may apply for enrollment of the electric vehicle in the Program. If an application for enrollment into the Program is approved by the Secretary of State, the owner of an electric vehicle may participate in the Program in lieu of paying the fee described in subsection (c) of Section 3-805.

(e) The Secretary of State shall adopt rules to establish:

(1) processes and terms for enrollment into and withdrawal or removal from the Program;

(2) payment periods and other payment methods and procedures for the Program;

(3) standards for mileage reporting mechanisms for an owner of an electric vehicle to report mileage as part of participation in the Program;

(4) standards for Program functions for mileage recording, payment processing, account management, and other similar aspects of the Program;

(5) contractual terms between an owner of an electric vehicle and an account manager for participation in the Program;

(6) contractual terms between the Secretary of State and an account manager, including authority for an account manager to enforce the terms of the Program;

(7) procedures to provide security and protection of personal information and data connected to the Program, and penalties for account managers for violating privacy protection rules;

(8) penalty procedures for a Program participant's failure to pay a road usage charge or tamper with a device necessary for the Program;

(9) oversight of an account manager, including privacy protection of personal information and access and auditing capability of financial and other record related to administration of the Program; and

(10) a process for collection of an unpaid road usage charge or penalty.

(f) The Secretary of State may impose a penalty for failure to timely pay a road usage charge according to the terms of the Program or tampering with a device necessary for the Program. The Secretary of State may place a hold on the registration of the owner's electric vehicle for failure to pay a road usage charge or penalty according to the terms of the Program.

(g) The Secretary of State may send correspondence to the owner of an electric vehicle to inform the owner of:

(1) the Program, implementation of the Program, and procedures of the Program;

(2) an unpaid road usage charge and the amount of the road usage charge to be paid to the Secretary of State;

(3) the penalty for failure to pay a road usage charge within the period laid out in the terms of the Program; and

(4) a hold being placed on the owner's registration for the electric vehicle, if the road usage charge and penalty are not paid within the period laid out in the terms of the Program that would prevent the renewal of the electric vehicles registration.

(h) If enrolled in the Program, the owner of an electric vehicle shall:

(1) report mileage driven as required by the Secretary of State under subsection (e);

(2) pay the road usage fee for each payment period in accordance with subsection (e); and

(3) comply with all other provisions of this Section and other requirements of the Program.

(i) Beginning July 1, 2027, the road usage charge rate is 1.5 cent per mile and the road usage charge cap is $320 for an annual registration.

(j) Beginning July 1, 2028, the Secretary of State shall annually adjust the road usage charge rate and the road usage charge cap as described in this subsection by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in March of the year in which the increase takes place. The percentage increase in the Consumer Price Index shall be calculated as follows:

(1) Calculate the average Consumer Prices Index for the full 12 months ending in March of the year in which the increase takes place.

(2) Calculate the average Consumer Price Index for the full 12 months ending in March of the year immediately preceding the year in which the increase takes place.

(3) Calculate the percentage increase, if any, in the current-year average determined under paragraph (1) over the preceding-year average determined under paragraph (2).

The rate shall be rounded to the nearest one-tenth of one cent.

(k) Revenue generated by the Program and relevant penalties shall be distributed in the same manner revenue from the motor fuel tax is distributed as outlined in subsection (e) of Section 8 of the Motor Fuel Tax Law after covering the costs to administer the Program.