Full Text of HB0414 102nd General Assembly
HB0414eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the Water | 5 | | and Sewer Financial Assistance Act. | 6 | | Section 5. Findings and intent. | 7 | | (a) The General Assembly finds that: | 8 | | (1) The health, welfare, and prosperity of the people
| 9 | | of the State of Illinois require that all citizens receive | 10 | | essential levels of water and sewer services regardless of | 11 | | economic circumstance. | 12 | | (2) Water and sewer providers and other entities | 13 | | providing
such services are entitled to receive proper | 14 | | payment for services actually rendered. | 15 | | (3) Unlike the electric and gas industry, water and | 16 | | sewer providers do not have existing statutory programs | 17 | | intended to assist low-income customers. | 18 | | (4) Existing financial assistance policies and | 19 | | programs in effect
in Illinois for utility services have | 20 | | benefited all Illinois citizens, and should therefore be | 21 | | extended to the water and sewer industry. | 22 | | (5) Low-income households are unable to afford
| 23 | | essential utility services and other necessities, such as |
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| 1 | | food, shelter, and medical care; the health and safety of | 2 | | those who are unable to afford essential utility services | 3 | | suffer when monthly payments for these services exceed a | 4 | | reasonable percentage of the customer's household income. | 5 | | Costs of collecting past due bills and uncollectible | 6 | | balances are reflected in rates paid by all ratepayers. | 7 | | Society benefits if essential utility services are | 8 | | affordable and arrearages and disconnections are minimized | 9 | | for those most in need.
| 10 | | (b) Consistent with its findings, the General Assembly | 11 | | declares that it is the policy of the State that: | 12 | | (1) A low-income water and sewer assistance payment | 13 | | plan
should be established that incorporates income | 14 | | assistance for citizens to have access to affordable water | 15 | | and sewer services. | 16 | | (2) The ability of public utilities and other
entities | 17 | | to receive just compensation for providing services should | 18 | | not be jeopardized by this policy. | 19 | | Section 10. Definitions. As used in this Act, unless the | 20 | | context otherwise requires: | 21 | | "Commission" means the Illinois Commerce Commission. | 22 | | "Department" means the Department of Commerce and Economic | 23 | | Opportunity. | 24 | | "Water or sewer provider" means any public utility | 25 | | providing water or sewer services under the jurisdiction of |
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| 1 | | the Illinois Commerce Commission; any other utility providing | 2 | | water or sewer service owned by a municipality, township, | 3 | | county, or other political subdivision of this State; or any | 4 | | other entity that is not a public utility under the | 5 | | jurisdiction of the Illinois Commerce Commission that | 6 | | regularly provides water or sewer service.
| 7 | | Section 15. Water and sewer assistance program. | 8 | | (a) The Department is authorized to institute a program | 9 | | whereby a water or sewer provider may voluntarily participate | 10 | | to ensure the availability and affordability of water and | 11 | | sewer services to low-income citizens. The Department shall | 12 | | implement the program by rule adopted pursuant to the Illinois | 13 | | Administrative Procedure Act. The program shall be consistent | 14 | | with the purposes and objectives of this Act and with all other | 15 | | specific requirements provided in this Act. The Department may | 16 | | enter into such contracts and other agreements with local | 17 | | agencies as may be necessary for the purpose of administering | 18 | | the water and sewer assistance program. | 19 | | (b) Nothing in this Act shall be construed as altering or | 20 | | limiting the authority conferred on the Commission by the | 21 | | Public Utilities Act to regulate all aspects of the provision | 22 | | of public utility service, including, but not limited to, the | 23 | | authority to make rules and adjudicate disputes between | 24 | | utilities and customers related to eligibility for utility | 25 | | service, deposits, payment practices, and discontinuance of |
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| 1 | | service. | 2 | | (c) The Department is authorized to institute an outreach | 3 | | program directed at low-income minority heads of households | 4 | | and heads of households age 60 or older. The Department shall | 5 | | implement the program through rules adopted pursuant to the | 6 | | Illinois Administrative Procedure Act. The program shall be | 7 | | consistent with the purposes and objectives of this Act and | 8 | | with all other specific requirements set forth in this | 9 | | subsection. | 10 | | Section 20. Eligibility, conditions of participation, and | 11 | | water and sewer assistance. | 12 | | (a) Any person who is a resident of the State of Illinois | 13 | | and whose household income is not greater than an amount | 14 | | determined annually by the Department may apply for assistance | 15 | | pursuant to this Act in accordance with rules adopted by the | 16 | | Department. In setting the annual eligibility level, the | 17 | | Department shall consider the amount of available funding and | 18 | | may not set a limit higher than 150% of the poverty guidelines | 19 | | updated periodically in the Federal Register by the U.S. | 20 | | Department of Health and Human Services under the authority of | 21 | | 42 U.S.C. 9902(2). | 22 | | (b) Applicants who qualify for assistance pursuant to | 23 | | subsection (a) of this Section shall, subject to appropriation | 24 | | from the General Assembly and subject to the availability of | 25 | | funds to the Department, receive water and sewer assistance as |
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| 1 | | provided by this Act. The Department, upon receipt of moneys | 2 | | authorized pursuant to this Act for water and sewer | 3 | | assistance, shall commit funds for each qualified applicant in | 4 | | an amount determined by the Department. In determining the | 5 | | amounts of assistance to be provided to or on behalf of a | 6 | | qualified applicant, the Department shall ensure that the | 7 | | highest amounts of assistance go to households with the | 8 | | greatest need for financial assistance in relation to | 9 | | household income. The Department shall include factors such as | 10 | | water and sewer costs, household size, household income, and | 11 | | region of the State when determining individual household | 12 | | benefits. In adopting rules for the administration of this | 13 | | Section, the Department shall ensure that a minimum of | 14 | | one-third of funds are available for benefits to eligible | 15 | | households with the lowest incomes and that elderly households | 16 | | and households with persons with disabilities are offered a | 17 | | priority application period. | 18 | | (c) If the applicant is not a customer of record of a water | 19 | | or sewer provider for water or sewer services or an applicant | 20 | | for such service, such applicant shall receive a direct water | 21 | | or sewer assistance payment in an amount established by the | 22 | | Department for all such applicants under this Act; provided, | 23 | | however, that such an applicant must have rental expenses for | 24 | | housing greater than 30% of household income. | 25 | | (d) This subsection shall apply only in cases where: (1) | 26 | | the applicant is not a customer of record of a water or sewer |
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| 1 | | provider because water or sewer services are provided by the | 2 | | owner of the unit as a portion of the rent; (2) the applicant | 3 | | resides in housing subsidized or developed with funds provided | 4 | | under the Rental Housing Support Program Act or under a | 5 | | similar locally funded rent subsidy program, or is the voucher | 6 | | holder who resides in a rental unit within the State of | 7 | | Illinois and whose monthly rent is subsidized by the | 8 | | tenant-based Housing Choice Voucher Program under Section 8 of | 9 | | the U.S. Housing Act of 1937; and (3) the rental expenses for | 10 | | housing are no more than 30% of household income. In such | 11 | | cases, the household may apply for water or sewer assistance | 12 | | payment under this Act and the owner of the housing unit shall | 13 | | cooperate with the applicant by providing documentation of the | 14 | | water or sewer costs for that unit. Any compensation paid to | 15 | | the water or sewer provider who supplied water or sewer | 16 | | services to the household shall be paid on behalf of the owner | 17 | | of the housing unit providing water or sewer services to the | 18 | | household. The Department shall report annually to the General | 19 | | Assembly on the number of households receiving water or sewer | 20 | | assistance under this subsection and the cost of such | 21 | | assistance. | 22 | | (e) If the applicant is a customer of a water or sewer | 23 | | provider, such applicant shall receive water or sewer | 24 | | assistance in an amount established by the Department for all | 25 | | such applicants under this Act. | 26 | | (f) The Department may, if sufficient funds are available, |
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| 1 | | provide additional benefits to certain qualified applicants: | 2 | | (i) for the reduction of past due amounts owed to
| 3 | | water or sewer providers; and | 4 | | (ii) to assist the household in responding to
| 5 | | excessively high usage costs. Households containing | 6 | | elderly members, children, or a person with a disability, | 7 | | shall receive priority for receipt of such benefits. | 8 | | Section 25. Water and Sewer Low-Income Assistance Fund. | 9 | | (a) For purposes of this Section: | 10 | | "Non-residential sewer service" means sewer utility | 11 | | service that is not residential sewer service.
| 12 | | "Non-residential water service" means water utility | 13 | | service that is not residential water service. | 14 | | "Residential sewer service" means sewer utility | 15 | | service for household purposes delivered to a dwelling of | 16 | | 2 or fewer units that is billed under a residential rate; | 17 | | or sewer service for household purposes delivered to a | 18 | | dwelling unit or units that is billed under a residential | 19 | | rate and is registered by a separate meter for each | 20 | | dwelling unit. | 21 | | "Residential water service" means water utility | 22 | | service for household purposes delivered to a dwelling of | 23 | | 2 or fewer units that is billed under a residential rate; | 24 | | or water service for household purposes delivered to a | 25 | | dwelling unit or units that is billed under a residential |
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| 1 | | rate and is registered by a separate meter for each | 2 | | dwelling unit. | 3 | | (b) The Water and Sewer Low-Income Assistance Fund is | 4 | | created as a special fund in the State Treasury. The Water and | 5 | | Sewer Low-Income Assistance Fund is authorized to receive | 6 | | moneys from voluntary donations from individuals, foundations, | 7 | | corporations, and other sources; by statutory deposit; and by | 8 | | authorized collections pursuant to this Section. The Water and | 9 | | Sewer Low-Income Assistance Fund is also authorized to receive | 10 | | moneys from the federal government, including, but not limited | 11 | | to, any pass through moneys as a result of a public health | 12 | | emergency. Subject to appropriation, the Department shall use | 13 | | moneys from the Water and Sewer Low-Income Assistance Fund for | 14 | | payments to water or sewer providers on behalf of their | 15 | | customers who are participants in the program authorized under | 16 | | this Act. The yearly administrative expenses of the Water and | 17 | | Sewer Low-Income Assistance Fund may not exceed 10% of the | 18 | | amount collected during that year pursuant to this Section, | 19 | | except when unspent funds from the Water and Sewer Low-Income | 20 | | Assistance Fund are reallocated from a previous year; any | 21 | | unspent balance of the 10% administrative allowance may be | 22 | | utilized for administrative expenses in the year they are | 23 | | reallocated. | 24 | | (c) Notwithstanding any other law to the contrary, the | 25 | | Water and Sewer Low-Income Assistance Fund is not subject to | 26 | | sweeps, administrative chargebacks, or any other fiscal or |
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| 1 | | budgetary maneuver that would in any way transfer any amounts | 2 | | from the Water and Sewer Low-Income Assistance Fund into any | 3 | | other fund of the State. | 4 | | (d) Notwithstanding any provisions of the Public Utilities | 5 | | Act, but subject to subsection (k) of this Section, each water | 6 | | or sewer provider shall, effective January 1, 2022, assess | 7 | | each of its customer accounts a monthly Water and Sewer | 8 | | Assistance Charge for the Water and Sewer Low-Income | 9 | | Assistance Fund. The monthly charge shall be as follows: | 10 | | (1) $0.10 per month for each account for residential | 11 | | water service; | 12 | | (2) $0.10 per month for each account for residential | 13 | | sewer service; | 14 | | (3) $5.00 per month for each account for | 15 | | non-residential water service; and | 16 | | (4) $5.00 per month for each account for | 17 | | non-residential sewer service. | 18 | | (e) Within 30 days after the effective date of this Act, | 19 | | each public utility under the jurisdiction of the Commission | 20 | | engaged in providing water or sewer services shall file with | 21 | | the Commission tariffs incorporating the Water and Sewer | 22 | | Assistance Charge as set forth in subsection (d) of this | 23 | | Section in other charges stated in such tariffs, which shall | 24 | | become effective no later than the beginning of the first | 25 | | billing cycle following such filing. The incremental charge to | 26 | | such customers imposed by this Act shall not be used for any |
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| 1 | | purpose other than to directly assist customers. | 2 | | (f) The Water and Sewer Assistance Charge assessed by the | 3 | | applicable water or sewer providers shall be considered a | 4 | | charge for public utility service. | 5 | | (g) By the 20th day of the month following the month in | 6 | | which the charges imposed by this Section were collected, each | 7 | | water or sewer provider shall remit to the Department of | 8 | | Revenue all moneys received as payment of the Water and Sewer | 9 | | Assistance Charge on a return prescribed and furnished by the | 10 | | Department of Revenue showing such information as the | 11 | | Department of Revenue may reasonably require. If a customer | 12 | | makes a partial payment, a water or sewer provider may elect | 13 | | either: (i) to apply partial payments first to the amount owed | 14 | | to the water or sewer provider for its services and then to | 15 | | payment for the Water and Sewer Assistance Charge, or (ii) to | 16 | | apply such partial payments on a pro rata basis between | 17 | | amounts owed to the water or sewer provider for its services | 18 | | and to payment for the Water and Sewer Assistance Charge. | 19 | | (h) The Department of Revenue shall deposit into the Water | 20 | | and Sewer Low-Income Assistance Fund all moneys remitted to it | 21 | | in accordance with subsection (g) of this Section; provided, | 22 | | however, that the amounts remitted by each water or sewer | 23 | | provider shall be used to provide assistance only to that | 24 | | water or sewer provider's customers. The water or sewer | 25 | | providers shall coordinate with the Department to establish an | 26 | | equitable and practical methodology for implementing this |
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| 1 | | subsection beginning with the 2022 program year. | 2 | | (i) The Department of Revenue may establish such rules as | 3 | | it deems necessary to implement this Section. | 4 | | (j) The Department may establish such rules as it deems | 5 | | necessary to implement this Section, including, but not | 6 | | limited to, rules requiring the Department to report the | 7 | | amount of assessments remitted and expended by water or sewer | 8 | | providers and a process to allow a water or sewer provider to | 9 | | discontinue imposing the assessments due to lack of | 10 | | participation or excess in available funds for that water or | 11 | | sewer provider. | 12 | | (k) The charges imposed by this Section shall only apply | 13 | | to customers of a water or sewer provider only if the water or | 14 | | sewer provider voluntarily makes an affirmative decision to | 15 | | impose the charge. If a water or sewer provider makes an | 16 | | affirmative decision to impose the charge provided by this | 17 | | Section, the water or sewer provider shall inform the | 18 | | Department of Revenue in writing of such decision when it | 19 | | begins to impose the charge. If a water or sewer provider does | 20 | | not assess this charge, the Department may not use funds from | 21 | | the Water and Sewer Low-Income Assistance Fund to provide | 22 | | benefits to its customers under the Program authorized by | 23 | | Section 15 of this Act. | 24 | | In its use of federal funds under this Act, the Department | 25 | | may not cause a disproportionate share of those federal funds | 26 | | to benefit customers of water or sewer providers that do not |
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| 1 | | assess the Water and Sewer Assistance Charge. | 2 | | (l) This Section is repealed on January 1, 2030. | 3 | | Section 30. Application of Retailers' Occupation Tax | 4 | | provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, | 5 | | 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, | 6 | | 12, and 13 of the Retailers' Occupation Tax Act that are not | 7 | | inconsistent with this Act apply, as far as practicable, to | 8 | | the surcharge imposed by this Act to the same extent as if | 9 | | those provisions were included in this Act. References in the | 10 | | incorporated Sections of the Retailers' Occupation Tax Act to | 11 | | retailers, to sellers, or to persons engaged in the business | 12 | | of selling tangible personal property mean persons required to | 13 | | remit the charge imposed under this Act. | 14 | | Section 35. The State Finance Act is amended by adding | 15 | | Section 5.935 as follows: | 16 | | (30 ILCS 105/5.935 new) | 17 | | Sec. 5.935. The Water and Sewer Low-Income Assistance | 18 | | Fund. | 19 | | Section 40. The Public Utilities Act is amended by adding | 20 | | Section 9-211.7 as follows: | 21 | | (220 ILCS 5/9-211.7 new) |
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| 1 | | Sec. 9-211.7. Financial assistance; water and sewer | 2 | | utilities. | 3 | | (a) On and after the effective date of this amendatory Act | 4 | | of the 102nd General Assembly, notwithstanding any other | 5 | | provision of this Act, a water or sewer utility subject to the | 6 | | jurisdiction of the Commission, after receiving approval from | 7 | | the Commission, shall be allowed to offer a financial | 8 | | assistance program designed for bill payment assistance for | 9 | | low-income customers in accordance with the Water and Sewer | 10 | | Financial Assistance Act. A water or sewer utility subject to | 11 | | the jurisdiction of the Commission shall petition the | 12 | | Commission for such approval, and the Commission shall render | 13 | | its decision within 60 days after receiving such petition. If | 14 | | no decision is rendered by the Commission within 60 days, then | 15 | | the petition shall be deemed to be approved. | 16 | | (b) The costs of a financial assistance program offered by | 17 | | a water or sewer utility subject to the jurisdiction of the | 18 | | Commission, excluding such costs deemed by the Commission to | 19 | | be not reimbursable, shall be reimbursed from the Water and | 20 | | Sewer Low-Income Assistance Fund established pursuant to the | 21 | | Water and Sewer Financial Assistance Act. The utility shall | 22 | | submit a bill to the Department of Commerce and Economic | 23 | | Opportunity, which shall be promptly paid out of such funds or | 24 | | may net such costs against moneys it would otherwise remit to | 25 | | the Fund. The water or sewer utility shall provide a report to | 26 | | the Commission on a quarterly basis accounting for moneys |
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| 1 | | reimbursed or netted through the Fund. | 2 | | (c) A water or sewer utility, subject to the jurisdiction | 3 | | of the Commission, providing a financial assistance program | 4 | | pursuant to the Water and sewer Financial Assistance Act in | 5 | | this State shall be permitted to recover costs of those | 6 | | assessments through an automatic adjustment clause tariff | 7 | | filed with and approved by the Commission. The tariff shall be | 8 | | established outside the context of a general rate case and | 9 | | shall be applicable to the utility's customers. Each year the | 10 | | Commission shall initiate a review to reconcile any amounts | 11 | | collected with the actual costs and to determine the required | 12 | | adjustment to the annual tariff factor to match annual | 13 | | expenditures.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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