SB3026 99TH GENERAL ASSEMBLY

LRB099 20596 EGJ 45156 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3026

Introduced 2/18/2016, by Sen. Chuck Weaver

SYNOPSIS AS INTRODUCED:

220 ILCS 5/5-119 new

Amends the Public Utilities Act. Adds provisions concerning pricing of water assets, meaning a water utility or water distribution company and its tangible and intangible properties, by an Illinois governmental purchaser. Provides that the determination of value or price for the purchase or acquisition of water assets by the Illinois governmental purchaser: may not distinguish, penalize, or increase the value or price to be paid by an Illinois governmental purchaser based on specified characteristics of the purchaser; or may not use as a factor any excess of replacement cost new minus depreciation over the value of price based on fair market value of the water assets, as determined by what a willing buyer in the private sector would value, price, or pay for the water assets. Provides for application of the provisions to contracts already in place. Contains a severability clause. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The Public Utilities Act is amended by adding Section 5-119 as follows:

(220 ILCS 5/5-119 new)

Sec. 5-119. Prevent unfairness in pricing of water assets acquired by governmental purchasers.

(a) In this Section:

"Illinois governmental purchaser" means the State of Illinois, any State agency, department, or division, or any municipality, county, city, township, water district, or other body politic or political subdivision of the State of Illinois.

"Water assets" means a water utility or water distribution company or any of its assets, facilities, piping, pumping and lift stations, water sources and rights, real estate, easements, intangibles, franchises, or other properties.

(b) In determining the value or price for the purchase or acquisition of water assets by an Illinois governmental purchaser, whether in an eminent domain proceeding or any other exercise of a right possessed by an Illinois governmental purchaser to purchase or acquire water assets (by contract or statute), the determination of value or price to be paid for the water assets:

(1) may not distinguish, penalize, or increase the value or price to be paid by an Illinois governmental purchaser for the purchase or acquisition of water assets because the purchaser or acquirer: is an Illinois governmental purchaser or public body; does not pay income, property, or other taxes; has or may have taxing or ratemaking authority; or has other supposed or real advantages as an Illinois governmental purchaser over a private purchaser; or

(2) may not use as a factor any excess of replacement cost new minus depreciation over the value or price based on fair market value of the water assets to be acquired or purchased, as determined by what a willing buyer in the private sector would value, price, or pay for the water assets.

(c) The intent of paragraphs (1) and (2) of subsection (b) is to put an Illinois governmental purchaser on equal footing for valuation and price determination purposes with private purchasers in a free and open marketplace with respect to determining values or prices to be paid for water assets and actual valuing, pricing, and purchasing water assets.

(d) This Section shall apply to all valuations or price determinations made or to be made or determined after the effective date of this amendatory Act of the 99th General Assembly, except: (1) in the case of paragraph (1) of subsection (b), for contracts already in place on the effective date of this amendatory Act of the 99th General Assembly that expressly require or provide that the value of the water assets be priced or valued on a basis that takes into account that the benefits of the purchaser as a public body over or as opposed to a private body; and (2) in the case of paragraph (2) of subsection (b), for contracts already in place on the effective date of this amendatory Act of the 99th General Assembly that expressly require or provide that the value or price to be paid for water assets may or must take into account the replacement cost new minus depreciation of the water assets to be valued or priced, even though such cost is in excess of a fair market price that a private purchaser would value, price, or pay for such assets.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect upon becoming law.