State of Illinois
90th General Assembly
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90_SB1309

      35 ILCS 200/10-230
          Amends the Property Tax Code.   Provides  that  the  fair
      cash  value  of  nuclear  power  plant  owned  by an electric
      utility as of November 1, 1997 that is  closed  on  or  after
      December  16,  1997  shall  be determined using original cost
      less depreciation of the nuclear power plant, with  the  rate
      of  depreciation  set at the rate in effect November 1, 1997.
      Provides that the rate shall be in effect for as long as  the
      plant is closed.  Effective immediately.
                                                     SRS90S0054JJch
                                               SRS90S0054JJch
 1        AN ACT to amend the Property Tax Code by changing Section
 2    10-230.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Property Tax Code is amended by changing
 6    Section 10-230 as follows:
 7        (35 ILCS 200/10-230)
 8        Sec. 10-230. Creation of task force;  1997  through  1999
 9    property assessments of certain utility property.
10        (a)  This   Section   establishes   an  Electric  Utility
11    Property Assessment Task Force to advise the General Assembly
12    with respect to the possible impact of the  Electric  Service
13    Customer  Choice and Rate Relief Law of 1997 on the valuation
14    of  the  real  property  component  of  electric   generating
15    stations  owned  by electric utilities and, therefore, on the
16    taxing districts in this State in which  electric  generating
17    stations are located.
18        (b)  There   shall   be   established  and  appointed  in
19    accordance with this Section  an  Electric  Utility  Property
20    Assessment  Task  Force.  Such Task Force shall be chaired by
21    the President of the Taxpayers' Federation of  Illinois,  who
22    shall  be  a  non-voting  member of the Task Force.  The Task
23    Force shall be composed of 10 voting members, 6 of whom shall
24    be representatives of  taxing  districts  in  which  electric
25    generating  stations  are  located  and  4  of  whom shall be
26    representatives of electric utilities in this State, at least
27    one of whom shall be from an electric  utility  serving  over
28    1,000,000  retail customers in this State and at least one of
29    whom shall be from an electric utility serving  over  500,000
30    but less than 1,000,000 retail customers in this State.
31        (c)  The  voting  members  of  this  Task  Force shall be
                            -2-                SRS90S0054JJch
 1    appointed as follows: (i) 3 of the  voting  members,  one  of
 2    whom shall be from an electric utility, shall be appointed by
 3    the  President  of  the Senate; (ii) 3 of the voting members,
 4    one of whom shall be  from  an  electric  utility,  shall  be
 5    appointed  by  the  Speaker  of the House of Representatives;
 6    (iii) 2 of the voting members, one of whom shall be  from  an
 7    electric  utility,  shall be appointed by the Minority Leader
 8    of the Senate; and (iv) 2 of the voting members, one of  whom
 9    shall  be from an electric utility, shall be appointed by the
10    Minority Leader  of  the  House  of  Representatives.    Such
11    appointments shall be made within 30 days after the effective
12    date  of  this  amendatory  Act of 1997.  Members of the Task
13    Force shall receive no compensation for  their  services  but
14    shall  be  entitled  to  reimbursement of reasonable expenses
15    incurred while performing their duties.
16        (d)  The Task Force shall submit a report to the  General
17    Assembly by January 1, 1999 which shall: (i) analyze whether,
18    and  to  what  extent, taxing districts throughout this State
19    will  experience  significant  sustained  erosions  of  their
20    property tax bases and property tax revenues as a  result  of
21    the restructuring of the electric industry in this State; and
22    (ii)  make recommendations for legislative changes to address
23    any such impacts.
24        (e)  Beginning with the 1997 assessment year through  the
25    assessment  year of 1999, the fair cash value of any electric
26    power generating plant owned as of November 1,  1997,  by  an
27    electric  utility,  as that term is defined in Section 16-102
28    of the  Public  Utilities  Act,  shall  be  determined  using
29    original   cost  less  depreciation  of  the  electric  power
30    generating  plant.   When  determining  original  cost   less
31    depreciation,  including  the original cost less depreciation
32    of all new construction, the rate or  rates  of  depreciation
33    applied  shall  be  the  same  as the rate or rates in effect
34    November 1, 1997, under the  Public  Utilities  Act  and  the
                            -3-                SRS90S0054JJch
 1    rules   and  orders  of  the  Illinois  Commerce  Commission,
 2    irrespective of any  change  in  ownership  of  the  property
 3    occurring  after  the effective date of the provisions of the
 4    Electric Service Customer Choice and Rate Relief Law of 1997.
 5    Nothing in this subsection shall be construed to  affect  the
 6    classification    of    property   as   real   or   personal.
 7    Determinations  of  original  cost  less   depreciation   for
 8    purposes  of this subsection shall be made without regard for
 9    the use of any accelerated  cost  recovery  method  including
10    accelerated  depreciation,  accelerated amortization or other
11    capital recovery methods, or reductions to original  cost  of
12    an  electric  power  generating plant made as a result of the
13    provisions of Senate Amendment  No.  2  to  House  Bill  362,
14    enacted by the 90th General Assembly.
15        (f)  For  a  nuclear  power  plant  owned  by an electric
16    utility as of November 1, 1997 that is  closed  on  or  after
17    December  16,  1997, for the period of time that the plant is
18    closed, the fair cash value of the plant shall be  determined
19    using  original  cost  less depreciation of the nuclear power
20    plant.  When determining  original  cost  less  depreciation,
21    including  the  original  cost  less  depreciation of all new
22    construction, the rate or rates of depreciation applied shall
23    be the same as the rate or rates in effect November 1,  1997,
24    under  the  Public  Utilities Act and the rules and orders of
25    the Illinois Commerce Commission, irrespective of any  change
26    in  ownership  of the property occurring on or after December
27    16, 1997. Nothing in this subsection shall  be  construed  to
28    affect  the  classification  of property as real or personal.
29    Determinations  of  original  cost  less   depreciation   for
30    purposes  of this subsection shall be made without regard for
31    the use of any accelerated  cost  recovery  method  including
32    accelerated  depreciation,  accelerated amortization or other
33    capital recovery methods, or reductions to original cost of a
34    nuclear power plant made as a result  of  the  provisions  of
                            -4-                SRS90S0054JJch
 1    Public Act 90-561.
 2    (Source: P.A. 90-562, eff. 12-16-97.)
 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.

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