Full Text of SB2807 94th General Assembly
SB2807 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2807
Introduced 1/20/2006, by Sen. James F. Clayborne, Jr. - Todd Sieben - Dave Syverson and Mike Jacobs SYNOPSIS AS INTRODUCED: |
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65 ILCS 5/11-117-1.1 |
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220 ILCS 5/3-105 |
from Ch. 111 2/3, par. 3-105 |
220 ILCS 5/3-121 |
from Ch. 111 2/3, par. 3-121 |
220 ILCS 5/4-202.1 |
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220 ILCS 5/19-105 |
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805 ILCS 105/103.05 |
from Ch. 32, par. 103.05 |
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Amends the Illinois Municipal Code. Provides that a municipality and a natural gas cooperative may voluntarily enter into an agreement defining the geographic areas in which each party shall provide retail natural gas service for certain reasons. Provides that a natural gas cooperative shall enter into such an agreement only if the natural gas cooperative has acquired the operating assets of a public utility or natural gas cooperative with the intention of operating those assets as a natural gas cooperative. Amends the Public Utilities Act. Defines "public utility" to exclude natural gas cooperatives that are not-for-profit corporations operated for the purpose of administering, on a cooperative basis, the furnishing of natural gas for the benefit of their members and that have acquired the operating assets of a public utility or natural gas cooperative with the intention of operating those assets as a natural gas cooperative. Amends the General Not For Profit Corporation Act of 1986. Provides that not-for-profit corporations may be organized for the purpose of furnishing natural gas on a cooperative basis. Makes other changes. Effective immediately.
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A BILL FOR
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SB2807 |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Municipal Code is amended by | 5 |
| changing Section 11-117-1.1 as follows:
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| (65 ILCS 5/11-117-1.1)
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| Sec. 11-117-1.1. Service area agreement with electric | 8 |
| cooperative.
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| (a) The General Assembly declares it to be in the public | 10 |
| interest that a
municipality and an electric cooperative (as | 11 |
| defined in the Electric Supplier
Act) or a natural gas | 12 |
| cooperative (as defined in the Public Utilities Act) may | 13 |
| voluntarily enter into an agreement defining the geographic | 14 |
| areas in
which each party shall provide retail electric service | 15 |
| or retail natural gas service , and, if agreed, such
service may | 16 |
| be exclusive. This authority is in the public interest for the
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| following reasons:
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| (1) To avoid duplication of facilities for the | 19 |
| production, transmission,
sale, delivery, or furnishing of | 20 |
| electricity or natural gas .
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| (2) To minimize disputes between (i) municipalities | 22 |
| that own and operate a
municipal utility for the purpose of | 23 |
| providing retail electric service or retail natural gas | 24 |
| service and (ii)
electric cooperatives concerning the | 25 |
| provision of electric service or natural gas cooperatives | 26 |
| concerning the provision of natural gas service , since
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| these disputes may result in inconvenience and diminished | 28 |
| efficiency in
providing electric service or natural gas | 29 |
| service to the public.
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| (3) To provide for the orderly and controlled growth of | 31 |
| municipalities and
surrounding areas.
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| (4) To recognize and protect the investment and |
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| commitment of
municipalities and electric cooperatives and | 2 |
| of municipalities and natural gas cooperatives to provide | 3 |
| retail electric service
within their respective service | 4 |
| areas.
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| (b) An agreement entered into under this Section may cover | 6 |
| geographic areas
both within and without the corporate limits | 7 |
| of a municipality.
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| (c) An agreement entered into under this Section shall be | 9 |
| subject to the
approval of the Illinois Commerce Commission. An | 10 |
| approved agreement may
be enforced only by a party to the | 11 |
| agreement by the filing of a complaint for
interpretation with | 12 |
| the Illinois Commerce Commission. The jurisdiction and
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| authority of the Illinois Commerce Commission over any | 14 |
| municipality which owns
and operates a municipal utility for | 15 |
| the purpose of providing retail electric
service or retail | 16 |
| natural gas service shall be strictly limited to the approval | 17 |
| of the agreement and the
interpretation of the agreement's | 18 |
| terms. The Commission shall have no other
jurisdiction over or | 19 |
| authority to review or approve the construction of any
project | 20 |
| or operations of any municipality which is or may be a party to | 21 |
| an
agreement under this Section or joint action agency to which | 22 |
| the municipality
may be a member except to the extent now | 23 |
| required in connection with the
initiation of proceedings in | 24 |
| eminent domain. In a proceeding to approve an
agreement or | 25 |
| interpret the terms of an agreement, the agreement shall be
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| construed consistently with the public policy of this State as | 27 |
| set forth in
this Section.
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| (c-5) A natural gas cooperative shall enter into an | 29 |
| agreement under this Section only if the natural gas | 30 |
| cooperative has acquired the operating assets of a public | 31 |
| utility or a natural gas cooperative with the intention of | 32 |
| operating those assets as a natural gas cooperative.
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| (d) The provisions of this Section are severable under | 34 |
| Section 1.31 of the
Statute on Statutes.
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| (Source: P.A. 88-335.)
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| Section 10. The Public Utilities Act is amended by changing | 2 |
| Sections 3-105, 3-121, 4-202.1, and 19-105 as follows:
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| (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
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| Sec. 3-105. Public utility. "Public utility" means and | 5 |
| includes, except where
otherwise expressly provided in this | 6 |
| Section, every corporation, company,
limited liability | 7 |
| company, association, joint stock company or association,
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| firm, partnership or individual, their lessees, trustees, or | 9 |
| receivers
appointed by any court whatsoever that owns, | 10 |
| controls, operates or manages,
within this State, directly or | 11 |
| indirectly, for public use, any plant, equipment
or property | 12 |
| used or to be used for or in connection with, or owns or | 13 |
| controls
any franchise, license, permit or right to engage in:
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| a. the production, storage, transmission, sale, | 15 |
| delivery or furnishing of
heat, cold, power, electricity, | 16 |
| water, or light, except when used solely for
communications | 17 |
| purposes;
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| b. the disposal of sewerage; or
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| c. the conveyance of oil or gas by pipe line.
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| "Public utility" does not include, however:
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| 1. public utilities that are owned and operated by any | 22 |
| political
subdivision, public institution of higher | 23 |
| education or municipal
corporation of this State, or public | 24 |
| utilities that are owned by such
political subdivision, | 25 |
| public institution of higher education, or
municipal | 26 |
| corporation and operated by any of its lessees or operating | 27 |
| agents;
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| 2. water companies which are purely mutual concerns, | 29 |
| having no rates
or charges for services, but paying the | 30 |
| operating expenses by assessment
upon the members of such a | 31 |
| company and no other person;
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| 3. electric cooperatives as defined in Section 3-119;
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| 4. the following natural gas cooperatives:
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| (A) residential natural gas cooperatives that are | 35 |
| not-for-profit
corporations
established for the |
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| purpose of administering and operating, on
a | 2 |
| cooperative basis, the furnishing of natural gas to | 3 |
| residences for the
benefit of their members
who are | 4 |
| residential consumers of natural gas. For
entities | 5 |
| qualifying as residential
natural gas cooperatives and | 6 |
| recognized
by the Illinois Commerce Commission as | 7 |
| such, the State shall guarantee
legally binding | 8 |
| contracts entered into by residential
natural gas
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| cooperatives for the express purpose of acquiring | 10 |
| natural gas supplies for
their members. The Illinois | 11 |
| Commerce Commission shall establish rules and
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| regulations providing for such guarantees. The total | 13 |
| liability of the
State in providing all such guarantees | 14 |
| shall not at any time exceed
$1,000,000, nor shall the | 15 |
| State provide such a guarantee to a residential
natural | 16 |
| gas cooperative for more than 3 consecutive years; and
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| (B) natural gas cooperatives that are | 18 |
| not-for-profit corporations operated for the purpose | 19 |
| of administering, on a cooperative basis, the | 20 |
| furnishing of natural gas for the benefit of their | 21 |
| members and that or a natural gas cooperative have | 22 |
| acquired the operating assets of a public utility or | 23 |
| natural gas cooperative with the intention of | 24 |
| operating those assets as a natural gas cooperative;
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| 5. sewage disposal companies which provide sewage | 26 |
| disposal services
on a mutual basis without establishing | 27 |
| rates or charges for services,
but paying the operating | 28 |
| expenses by assessment upon the members of the
company and | 29 |
| no others;
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| 6. (Blank);
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| 7. cogeneration facilities, small power production | 32 |
| facilities, and other
qualifying facilities, as defined in | 33 |
| the Public Utility Regulatory Policies Act
and regulations | 34 |
| promulgated thereunder, except to the extent State | 35 |
| regulatory
jurisdiction and action is required or | 36 |
| authorized by federal law, regulations,
regulatory |
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| decisions or the decisions of federal or State courts of | 2 |
| competent
jurisdiction;
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| 8. the ownership or operation of a facility that sells | 4 |
| compressed
natural gas at retail to the public for use only | 5 |
| as a motor vehicle fuel
and the selling of compressed | 6 |
| natural gas at retail to the public for use
only as a motor | 7 |
| vehicle fuel; and
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| 9. alternative retail electric suppliers as defined in | 9 |
| Article XVI.
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| (Source: P.A. 89-42, eff. 1-1-96; 90-561, eff. 12-16-97.)
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| (220 ILCS 5/3-121) (from Ch. 111 2/3, par. 3-121)
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| Sec. 3-121. As used in Section 2-202 of this Act, the term
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| "gross revenue" includes all revenue which (1) is collected by | 14 |
| a public
utility subject to regulations under this Act (a) | 15 |
| pursuant to the rates,
other charges, and classifications which | 16 |
| it is required to file under
Section 9-102 of this Act and (b) | 17 |
| pursuant to emergency rates as permitted by
Section 9-104 of | 18 |
| this Act, and (2) is derived from the intrastate public
utility | 19 |
| business of such a utility. Such term does not include revenue
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| derived by such a public utility from the sale of public | 21 |
| utility services,
products or commodities to another public | 22 |
| utility ,
or to an electric
cooperative , or to a natural gas | 23 |
| cooperative for resale by such public utility ,
or electric | 24 |
| cooperative , or natural gas cooperative .
"Gross revenue" shall | 25 |
| not include any charges added to customers' bills
pursuant to | 26 |
| the provisions of Section 9-221, 9-221.1 and 9-222 of this Act
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| or consideration received from business enterprises certified | 28 |
| under
Section 9-222.1 of this Act to the extent of such | 29 |
| exemption and during the
period in which the exemption is in | 30 |
| effect.
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| (Source: P.A. 85-1021.)
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| (220 ILCS 5/4-202.1)
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| Sec. 4-202.1. Enforcement of service area agreement | 34 |
| between municipality
and electric cooperative or natural gas |
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| cooperative .
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| (a) The Commission shall approve, interpret, and enforce | 3 |
| service area
agreements between municipalities and electric | 4 |
| cooperatives and service area agreements between | 5 |
| municipalities and natural gas cooperatives, as provided in
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| Section 11-117-1.1 of the Illinois Municipal Code.
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| (b) The provisions of this Section are severable under | 8 |
| Section 1.31 of the
Statute on Statutes.
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| (Source: P.A. 88-335.)
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| (220 ILCS 5/19-105)
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| Sec. 19-105. Definitions. For the purposes of this Article, | 12 |
| the following
terms shall be defined as set forth in this | 13 |
| Section.
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| "Alternative gas supplier" means every person, | 15 |
| cooperative, corporation,
municipal corporation, company, | 16 |
| association, joint stock company or
association, firm,
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| partnership, individual, or other entity, their lessees, | 18 |
| trustees, or receivers
appointed by
any court whatsoever, that | 19 |
| offers gas for sale, lease, or in exchange for other
value
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| received to one or more customers, or that engages in the | 21 |
| furnishing of gas to
one or
more customers, and shall include | 22 |
| affiliated interests of a gas utility,
resellers,
aggregators | 23 |
| and marketers, but shall not include (i) gas utilities (or any
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| agent of the gas
utility to the extent the gas utility provides | 25 |
| tariffed services to customers
through an
agent); (ii) public | 26 |
| utilities that are owned and operated by any political
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| subdivision, public institution of higher education or | 28 |
| municipal corporation
of this State, or public utilities that | 29 |
| are owned by a political
subdivision, public institution of | 30 |
| higher education, or municipal corporation
and operated by any | 31 |
| of its lessees or operating agents; (iii) residential
natural | 32 |
| gas cooperatives that are not-for-profit corporations operated
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| established for
the purpose of administering and operating , on | 34 |
| a cooperative basis, the
furnishing of natural gas to | 35 |
| residences for the benefit of their members who
are residential
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| consumers of natural gas; and (iv) the ownership or operation
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| of a facility that sells compressed natural gas at retail to | 3 |
| the public for use
only as a motor vehicle fuel and the selling | 4 |
| of compressed natural gas at
retail to the public for use only | 5 |
| as a motor vehicle fuel.
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| "Gas utility" means a public utility, as defined in Section | 7 |
| 3-105 of this
Act,
that
has a franchise, license, permit, or | 8 |
| right to furnish or sell gas
or transportation services to
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| customers within a service area.
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| "Residential customer" means a customer who receives gas | 11 |
| utility service for
household purposes distributed to a | 12 |
| dwelling of 2 or fewer units which is
billed under
a | 13 |
| residential rate or gas utility service for household purposes | 14 |
| distributed to
a dwelling
unit or units which is billed under a | 15 |
| residential rate and is registered by a
separate meter
for each | 16 |
| dwelling unit.
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| "Service area" means (i) the geographic area within which a | 18 |
| gas utility was
lawfully entitled to provide gas to customers | 19 |
| as of the effective date
of this
amendatory
Act of the 92nd | 20 |
| General Assembly and includes (ii) the location of any
customer | 21 |
| to
which the gas utility was lawfully providing gas utility | 22 |
| services on such
effective date.
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| "Small commercial customer" means a nonresidential retail | 24 |
| customer of
a
natural gas utility
who is identified by the | 25 |
| alternative gas supplier, prior
to becoming a customer of the | 26 |
| alternative gas supplier, as
consuming 5,000 or fewer therms of | 27 |
| natural gas
during the previous year; provided that any | 28 |
| alternative gas
supplier may remove the customer from | 29 |
| designation as a "small
commercial customer" if the customer | 30 |
| consumes more than 5,000 therms
of natural gas in any calendar | 31 |
| year after becoming a customer of the
alternative gas supplier.
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| "Tariffed service" means a service provided to customers by | 33 |
| a gas
utility as
defined by its rates on file with the | 34 |
| Commission pursuant to the provisions of
Article IX
of this | 35 |
| Act.
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| "Transportation services" means those services provided by |
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| the gas utility
that
are necessary in order for the storage, | 2 |
| transmission and distribution systems
to
function so that
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| customers located in the gas utility's service area can receive | 4 |
| gas from
suppliers other
than the gas utility and shall | 5 |
| include, without limitation, standard metering
and billing
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| services.
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| (Source: P.A. 92-529, eff. 2-8-02; 92-852, eff. 8-26-02.)
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| Section 15. The General Not For Profit Corporation Act of | 9 |
| 1986 is amended by changing Section 103.05 as follows:
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| (805 ILCS 105/103.05) (from Ch. 32, par. 103.05)
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| Sec. 103.05. Purposes and authority of corporations;
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| particular purposes; exemptions.
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| (a) Not-for-profit corporations may be organized under | 14 |
| this Act for any
one or more of the following or similar | 15 |
| purposes:
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| (1) Charitable.
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| (2) Benevolent.
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| (3) Eleemosynary.
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| (4) Educational.
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| (5) Civic.
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| (6) Patriotic.
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| (7) Political.
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| (8) Religious.
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| (9) Social.
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| (10) Literary.
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| (11) Athletic.
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| (12) Scientific.
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| (13) Research.
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| (14) Agricultural.
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| (15) Horticultural.
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| (16) Soil improvement.
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| (17) Crop improvement.
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| (18) Livestock or poultry improvement.
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| (19) Professional, commercial, industrial, or trade |
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| association.
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| (20) Promoting the development, establishment, or | 3 |
| expansion
of industries.
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| (21) Electrification on a cooperative basis.
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| (22) Telephone service on a mutual or cooperative | 6 |
| basis.
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| (23) Ownership and operation of water supply | 8 |
| facilities for
drinking and general domestic use on a | 9 |
| mutual or cooperative basis.
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| (24) Ownership or administration of residential | 11 |
| property on a
cooperative basis.
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| (25) Administration and operation of property owned on | 13 |
| a
condominium basis or by a homeowner association.
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| (26) Administration and operation of an organization | 15 |
| on a
cooperative basis producing or furnishing goods, | 16 |
| services,
or facilities primarily for the benefit of its | 17 |
| members who
are consumers of those goods, services, or | 18 |
| facilities.
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| (27) Operation of a community mental health board or | 20 |
| center
organized pursuant to the Community Mental Health | 21 |
| Act for the purpose of
providing direct patient services.
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| (28) Provision of debt management services as | 23 |
| authorized by the Debt
Management Service Act.
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| (29) Promotion, operation, and administration of a
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| ridesharing arrangement as defined in Section 1-176.1 of
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| the Illinois Vehicle Code.
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| (30) The administration and operation of an | 28 |
| organization for the
purpose of assisting low-income | 29 |
| consumers in the acquisition of utility and
telephone | 30 |
| services.
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| (31) Any purpose permitted to be exempt from taxation | 32 |
| under
Sections 501(c) or 501(d)
of the United States | 33 |
| Internal Revenue Code,
as now in
or hereafter amended.
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| (32) Any purpose that would qualify for tax-deductible | 35 |
| gifts under the
Section 170(c) of the United States | 36 |
| Internal Revenue Code, as now
or hereafter amended. Any |
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| such purpose is deemed to be charitable
under subsection | 2 |
| (a)(1) of this Section.
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| (33) Furnishing of natural gas on a cooperative basis.
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| (b) A corporation may be organized hereunder to serve in an
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| area that adjoins or borders (except for any intervening
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| natural watercourse) an area located in an adjoining state
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| intended to be similarly served, and the corporation may
join | 8 |
| any corporation created by the adjoining state having
an | 9 |
| identical purpose and organized as a not-for-profit
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| corporation. Whenever any corporation organized under this
Act | 11 |
| so joins with a foreign corporation having an identical
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| purpose, the corporation shall be permitted to do business
in | 13 |
| Illinois as one corporation; provided (1) that the name,
bylaw | 14 |
| provisions, officers, and directors of each
corporation are | 15 |
| identical, (2) that the foreign corporation
complies with the | 16 |
| provisions of this Act relating to the
admission of foreign | 17 |
| corporation, and (3) that the Illinois
corporation files a | 18 |
| statement with the Secretary of State
indicating that it has | 19 |
| joined with a foreign corporation
setting forth the name | 20 |
| thereof and the state of its incorporation.
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| (Source: P.A. 92-33, eff. 7-1-01.)
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| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.
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