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91_HB0322
LRB9101903PTmb
1 AN ACT concerning utilities.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Illinois State Auditing Act is amended by
5 changing Section 3-1 as follows:
6 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
7 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
8 General has jurisdiction over all State agencies to make post
9 audits and investigations authorized by or under this Act or
10 the Constitution.
11 The Auditor General has jurisdiction over local
12 government agencies and private agencies only:
13 (a) to make such post audits authorized by or under
14 this Act as are necessary and incidental to a post audit
15 of a State agency or of a program administered by a State
16 agency involving public funds of the State, but this
17 jurisdiction does not include any authority to review
18 local governmental agencies in the obligation, receipt,
19 expenditure or use of public funds of the State that are
20 granted without limitation or condition imposed by law,
21 other than the general limitation that such funds be used
22 for public purposes;
23 (b) to make investigations authorized by or under
24 this Act or the Constitution; and
25 (c) to make audits of the records of local
26 government agencies to verify actual costs of
27 state-mandated programs when directed to do so by the
28 Legislative Audit Commission at the request of the State
29 Board of Appeals under the State Mandates Act.
30 In addition to the foregoing, the Auditor General may
31 conduct an audit of the Metropolitan Pier and Exposition
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1 Authority, the Regional Transportation Authority, the
2 Suburban Bus Division, the Commuter Rail Division and the
3 Chicago Transit Authority and any other subsidized carrier
4 when authorized by the Legislative Audit Commission. Such
5 audit may be a financial, management or program audit, or any
6 combination thereof.
7 The audit shall determine whether they are operating in
8 accordance with all applicable laws and regulations. Subject
9 to the limitations of this Act, the Legislative Audit
10 Commission may by resolution specify additional
11 determinations to be included in the scope of the audit.
12 The Auditor General may also conduct an audit, when
13 authorized by the Legislative Audit Commission, of any
14 hospital which receives 10% or more of its gross revenues
15 from payments from the State of Illinois, Department of
16 Public Aid, Medical Assistance Program.
17 The Auditor General is authorized to conduct financial
18 and compliance audits of the Illinois Distance Learning
19 Foundation and the Illinois Conservation Foundation.
20 As soon as practical after the effective date of this
21 amendatory Act of 1995, the Auditor General shall conduct a
22 compliance and management audit of the City of Chicago and
23 any other entity with regard to the operation of Chicago
24 O'Hare International Airport, Chicago Midway Airport and
25 Merrill C. Meigs Field. The audit shall include, but not be
26 limited to, an examination of revenues, expenses, and
27 transfers of funds; purchasing and contracting policies and
28 practices; staffing levels; and hiring practices and
29 procedures. When completed, the audit required by this
30 paragraph shall be distributed in accordance with Section
31 3-14.
32 The Auditor General shall conduct a financial and
33 compliance and program audit of distributions from the
34 Municipal Economic Development Fund during the immediately
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1 preceding calendar year pursuant to Section 8-403.1 of the
2 Public Utilities Act at no cost to the city, village, or
3 incorporated town that received the distributions.
4 (Source: P.A. 88-146; 88-591, eff. 8-20-94; 89-386, eff.
5 8-18-95.)
6 Section 5. The Electricity Excise Tax Law is amended by
7 changing Sections 2-7 and 2-9 as follows:
8 (35 ILCS 640/2-7)
9 Sec. 2-7. Collection of electricity excise tax.
10 (a) Beginning with bills for electricity or electric
11 service issued on and after August 1, 1998, the tax imposed
12 by this Law shall be collected from the purchaser, other than
13 a self-assessing purchaser where the delivering supplier or
14 suppliers are notified by the Department that the purchaser
15 has been registered as a self-assessing purchaser for the
16 accounts listed by the self-assessing purchaser as described
17 in Section 2-10 of this Law, by any delivering supplier
18 maintaining a place of business in this State at the rates
19 stated in Section 2-4 with respect to the electricity
20 delivered by such delivering supplier to or for the
21 purchaser, and shall be remitted to the Department as
22 provided in Section 2-9 of this Law. All sales to a purchaser
23 are presumed subject to tax collection unless the Department
24 notifies the delivering supplier that the purchaser has been
25 registered as a self-assessing purchaser for the accounts
26 listed by the self-assessing purchaser as described in
27 Section 2-10 of this Law. Upon receipt of notification by
28 the Department, the delivering supplier is relieved of all
29 liability for the collection and remittance of tax from the
30 self-assessing purchaser for which notification was provided
31 by the Department. The delivering supplier is relieved of
32 the liability for the collection of the tax from a
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1 self-assessing purchaser until such time as the delivering
2 supplier is notified in writing by the Department that the
3 purchaser's certification as a self-assessing purchaser is no
4 longer in effect. Delivering suppliers shall collect the tax
5 from purchasers by adding the tax to the amount of the
6 purchase price received from the purchaser for delivering
7 electricity for or to the purchaser. Where a delivering
8 supplier does not collect the tax from a purchaser, other
9 than a self-assessing purchaser, as provided herein, such
10 purchaser shall pay the tax directly to the Department.
11 (b) The credit allowed to a public utility under Section
12 8-403.1 of the Public Utilities Act shall be allowed as a
13 credit against the public utility's obligation to remit
14 electricity excise tax described in Section 2-9.
15 (Source: P.A. 90-561, eff. 8-1-98; 90-624, eff. 7-10-98.)
16 (35 ILCS 640/2-9)
17 Sec. 2-9. Return and payment of tax by delivering
18 supplier. Each delivering supplier who is required or
19 authorized to collect the tax imposed by this Law shall make
20 a return to the Department on or before the 15th day of each
21 month for the preceding calendar month stating the following:
22 (1) The delivering supplier's name.
23 (2) The address of the delivering supplier's
24 principal place of business and the address of the
25 principal place of business (if that is a different
26 address) from which the delivering supplier engaged in
27 the business of delivering electricity in this State.
28 (3) The total number of kilowatt-hours which the
29 supplier delivered to or for purchasers during the
30 preceding calendar month and upon the basis of which the
31 tax is imposed.
32 (4) Amount of tax, computed upon Item (3) at the
33 rates stated in Section 2-4.
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1 (5) An adjustment for uncollectible amounts of tax
2 in respect of prior period kilowatt-hour deliveries,
3 determined in accordance with rules and regulations
4 promulgated by the Department.
5 (5.5) The amount of credits to which the taxpayer
6 is entitled on account of purchases made under Section
7 8-403.1 of the Public Utilities Act.
8 (6) Such other information as the Department
9 reasonably may require.
10 In making such return the delivering supplier may use any
11 reasonable method to derive reportable "kilowatt-hours" from
12 the delivering supplier's records.
13 If the average monthly tax liability to the Department of
14 the delivering supplier does not exceed $2,500, the
15 Department may authorize the delivering supplier's returns to
16 be filed on a quarter-annual basis, with the return for
17 January, February and March of a given year being due by
18 April 30 of such year; with the return for April, May and
19 June of a given year being due by July 31 of such year; with
20 the return for July, August and September of a given year
21 being due by October 31 of such year; and with the return for
22 October, November and December of a given year being due by
23 January 31 of the following year.
24 If the average monthly tax liability to the Department of
25 the delivering supplier does not exceed $1,000, the
26 Department may authorize the delivering supplier's returns to
27 be filed on an annual basis, with the return for a given year
28 being due by January 31 of the following year.
29 Such quarter-annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Law
33 concerning the time within which a delivering supplier may
34 file a return, any such delivering supplier who ceases to
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1 engage in a kind of business which makes the person
2 responsible for filing returns under this Law shall file a
3 final return under this Law with the Department not more than
4 one month after discontinuing such business.
5 Each delivering supplier whose average monthly liability
6 to the Department under this Law was $10,000 or more during
7 the preceding calendar year, excluding the month of highest
8 liability and the month of lowest liability in such calendar
9 year, and who is not operated by a unit of local government,
10 shall make estimated payments to the Department on or before
11 the 7th, 15th, 22nd and last day of the month during which
12 tax liability to the Department is incurred in an amount not
13 less than the lower of either 22.5% of such delivering
14 supplier's actual tax liability for the month or 25% of such
15 delivering supplier's actual tax liability for the same
16 calendar month of the preceding year. The amount of such
17 quarter-monthly payments shall be credited against the final
18 tax liability of such delivering supplier's return for that
19 month. An outstanding credit approved by the Department or a
20 credit memorandum issued by the Department arising from such
21 delivering supplier's overpayment of his or her final tax
22 liability for any month may be applied to reduce the amount
23 of any subsequent quarter-monthly payment or credited against
24 the final tax liability of such delivering supplier's return
25 for any subsequent month. If any quarter-monthly payment is
26 not paid at the time or in the amount required by this
27 Section, such delivering supplier shall be liable for penalty
28 and interest on the difference between the minimum amount due
29 as a payment and the amount of such payment actually and
30 timely paid, except insofar as such delivering supplier has
31 previously made payments for that month to the Department in
32 excess of the minimum payments previously due.
33 If the Director finds that the information required for
34 the making of an accurate return cannot reasonably be
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1 compiled by such delivering supplier within 15 days after the
2 close of the calendar month for which a return is to be made,
3 the Director may grant an extension of time for the filing of
4 such return for a period not to exceed 31 calendar days. The
5 granting of such an extension may be conditioned upon the
6 deposit by such delivering supplier with the Department of an
7 amount of money not exceeding the amount estimated by the
8 Director to be due with the return so extended. All such
9 deposits shall be credited against such delivering supplier's
10 liabilities under this Law. If the deposit exceeds such
11 delivering supplier's present and probable future liabilities
12 under this Law, the Department shall issue to such delivering
13 supplier a credit memorandum, which may be assigned by such
14 delivering supplier to a similar person under this Law, in
15 accordance with reasonable rules and regulations to be
16 prescribed by the Department.
17 The delivering supplier making the return provided for in
18 this Section shall, at the time of making such return, pay to
19 the Department the amount of tax imposed by this Law.
20 A delivering supplier who has an average monthly tax
21 liability of $10,000 or more shall make all payments
22 required by rules of the Department by electronic funds
23 transfer. The term "average monthly tax liability" shall be
24 the sum of the delivering supplier's liabilities under this
25 Law for the immediately preceding calendar year divided by
26 12. Any delivering supplier not required to make payments
27 by electronic funds transfer may make payments by electronic
28 funds transfer with the permission of the Department. All
29 delivering suppliers required to make payments by electronic
30 funds transfer and any delivering suppliers authorized to
31 voluntarily make payments by electronic funds transfer shall
32 make those payments in the manner authorized by the
33 Department.
34 Each month the Department shall pay into the Public
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1 Utility Fund in the State treasury an amount determined by
2 the Director to be equal to 3.0% of the funds received by the
3 Department pursuant to this Section. The remainder of all
4 moneys received by the Department under this Section shall be
5 paid into the General Revenue Fund in the State treasury.
6 (Source: P.A. 90-561, eff. 8-1-98.)
7 Section 10. The Public Utilities Act is amended by
8 changing Section 8-403.1 as follows:
9 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
10 Sec. 8-403.1. Electricity purchased from qualified solid
11 waste energy facility; tax credit; distributions for economic
12 development.
13 (a) It is hereby declared to be the policy of this State
14 to encourage the development of alternate energy production
15 facilities in order to conserve our energy resources and to
16 provide for their most efficient use.
17 (b) For the purpose of this Section and Section 9-215.1,
18 "qualified solid waste energy facility" means a facility
19 determined by the Illinois Commerce Commission to qualify as
20 such under the Local Solid Waste Disposal Act, to use methane
21 gas generated from landfills as its primary fuel, and to
22 possess characteristics that would enable it to qualify as a
23 cogeneration or small power production facility under federal
24 law.
25 (c) In furtherance of the policy declared in this
26 Section, the Illinois Commerce Commission shall require
27 electric utilities to enter into long-term contracts to
28 purchase electricity from qualified solid waste energy
29 facilities located in the electric utility's service area,
30 for a period beginning on the date that the facility begins
31 generating electricity and having a duration of not less than
32 10 years in the case of facilities fueled by
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1 landfill-generated methane, or 20 years in the case of
2 facilities fueled by methane generated from a landfill owned
3 by a forest preserve district. The purchase rate contained
4 in such contracts shall be equal to the average amount per
5 kilowatt-hour paid from time to time by the unit or units of
6 local government in which the electricity generating
7 facilities are located, excluding amounts paid for street
8 lighting and pumping service.
9 (d) Whenever a public utility is required to purchase
10 electricity pursuant to subsection (c) above, it shall be
11 entitled to credits in respect of its obligations to remit to
12 the State pay taxes it has collected under the Electricity
13 Excise Tax Law Public Utilities Revenue Act equal to the
14 amounts, if any, by which payments for such electricity
15 exceed (i) the then current rate at which the utility must
16 purchase the output of qualified facilities pursuant to the
17 federal Public Utility Regulatory Policies Act of 1978, less
18 (ii) any costs, expenses, losses, damages or other amounts
19 incurred by the utility, or for which it becomes liable,
20 arising out of its failure to obtain such electricity from
21 such other sources. The amount of any such credit shall, in
22 the first instance, be determined by the utility, which shall
23 make a monthly report of such credits to the Illinois
24 Commerce Commission and, on its monthly tax return, to the
25 Illinois Department of Revenue. Under no circumstances shall
26 a utility be required to purchase electricity from a
27 qualified solid waste energy facility at the rate prescribed
28 in subsection (c) of this Section if such purchase would
29 result in estimated tax credits that exceed, on a monthly
30 basis, the utility's estimated obligation to remit to the
31 State pay taxes it has collected under the Electricity Excise
32 Tax Law Public Utilities Revenue Act. The owner or operator
33 shall negotiate facility operating conditions with the
34 purchasing utility in accordance with that utility's posted
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1 standard terms and conditions for small power producers. If
2 the Department of Revenue disputes the amount of any such
3 credit, such dispute shall be decided by the Illinois
4 Commerce Commission. Whenever a qualified solid waste energy
5 facility has paid or otherwise satisfied in full the capital
6 costs or indebtedness incurred in developing and implementing
7 the qualified facility, the qualified facility shall
8 reimburse the Public Utility Utilities Fund and the General
9 Revenue Fund in the State treasury for the actual reduction
10 in payments to those Funds that Fund caused by this
11 subsection (d) in a manner to be determined by the Illinois
12 Commerce Commission and based on the manner in which revenues
13 for those Funds that Fund were reduced.
14 (e) The Illinois Commerce Commission shall not require
15 an electric utility to purchase electricity from any
16 qualified solid waste energy facility which is owned or
17 operated by an entity that is primarily engaged in the
18 business of producing or selling electricity, gas, or useful
19 thermal energy from a source other than one or more qualified
20 solid waste energy facilities.
21 (f) This Section does not require an electric utility to
22 construct additional facilities unless those facilities are
23 paid for by the owner or operator of the affected qualified
24 solid waste energy facility.
25 (g) The Illinois Commerce Commission shall require that:
26 (1) electric utilities use the electricity purchased from a
27 qualified solid waste energy facility to displace electricity
28 generated from nuclear power or coal mined and purchased
29 outside the boundaries of the State of Illinois before
30 displacing electricity generated from coal mined and
31 purchased within the State of Illinois, to the extent
32 possible, and (2) electric utilities report annually to the
33 Commission on the extent of such displacements.
34 (h) Nothing in this Section is intended to cause an
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1 electric utility that is required to purchase power hereunder
2 to incur any economic loss as a result of its purchase. All
3 amounts paid for power which a utility is required to
4 purchase pursuant to subparagraph (c) shall be deemed to be
5 costs prudently incurred for purposes of computing charges
6 under rates authorized by Section 9-220 of this Act. Tax
7 credits provided for herein shall be reflected in charges
8 made pursuant to rates so authorized to the extent such
9 credits are based upon a cost which is also reflected in such
10 charges.
11 (i) Beginning in February 1999 and through January 2009,
12 each qualified solid waste energy facility that sells
13 electricity to an electric utility at the purchase rate
14 described in subsection (c) shall file with the State
15 Treasurer on or before the 15th of each month a form,
16 prescribed by the State Treasurer, that states the number of
17 kilowatt hours of electricity for which payment was received
18 at that purchase rate from electric utilities in Illinois
19 during the immediately preceding month. This form shall be
20 accompanied by a payment from the qualified solid waste
21 energy facility in an amount equal to six-tenths of a mill
22 ($0.0006) per kilowatt hour of electricity stated on the form
23 due in February through July 1999 and an amount equal to
24 84/100th of a mill ($0.00084) per such kilowatt hour
25 thereafter. Payments received by the State Treasurer shall be
26 deposited into the Municipal Economic Development Fund, a
27 trust fund created outside the State treasury. The State
28 Treasurer may invest the moneys in the Fund in any investment
29 authorized by the Public Funds Investment Act, and investment
30 income shall be deposited into and become part of the Fund.
31 Moneys in the Fund shall be used by the State Treasurer as
32 provided in subsection (j). The obligation of a qualified
33 solid waste energy facility to make payments into the
34 Municipal Economic Development Fund shall terminate upon
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1 either: (1) expiration or termination of a facility's
2 contract to sell electricity to an electric utility at the
3 purchase rate described in subsection (c); or (2) entry of an
4 enforceable, final, and non-appealable order by a court of
5 competent jurisdiction that Public Act 89-448 is invalid.
6 Payments by a qualified solid waste energy facility into the
7 Municipal Economic Development Fund do not relieve the
8 qualified solid waste energy facility of its obligation to
9 reimburse the Public Utility Fund and the General Revenue
10 Fund for the actual reduction in payments to those Funds as a
11 result of credits received by electric utilities under
12 subsection (d).
13 (j) The State Treasurer, without appropriation, must
14 make distributions immediately after January 15, April 15,
15 July 15, and October 15 of each year, up to maximum aggregate
16 distributions of $500,000 for the distributions made in the 4
17 quarters beginning with the April distribution and ending
18 with the January distribution, from the Municipal Economic
19 Development Fund to each city, village, or incorporated town
20 that has within its boundaries an incinerator that: (1) uses
21 municipal waste as its primary fuel to generate electricity;
22 (2) was determined by the Illinois Commerce Commission to
23 qualify as a qualified solid waste energy facility prior to
24 the effective date of Public Act 89-448; and (3) commenced
25 operation prior to January 1, 1998. The State Treasurer,
26 without appropriation, must make distributions immediately
27 after October 15, 1999 and January 15, 2000, up to maximum
28 aggregate distributions of $100,000, and immediately after
29 January 15, April 15, July 15, and October 15 of each year
30 thereafter, up to maximum aggregate distributions of $200,000
31 for the distributions made in the 4 quarters beginning with
32 the April distribution and ending with the January
33 distribution, from the Municipal Economic Development Fund to
34 each city, village, or incorporated town that has within its
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1 boundaries a tire recycling and disposal facility, has a
2 population of less than 50,000, and is located in Cook
3 County. Total distributions in the aggregate to all qualified
4 cities, villages, and incorporated towns in the 4 quarters
5 beginning with the April distribution and ending with the
6 January distribution shall not exceed $600,000 for April 1999
7 through January 2000 and $700,000 thereafter. The amount of
8 each distribution shall be determined pro rata based on the
9 maximum authorized distributions. Distributions received by
10 a city, village, or incorporated town must be held in a
11 separate account and may be used only to promote and enhance
12 industrial, commercial, residential, service, transportation,
13 and recreational activities and facilities within its
14 boundaries, thereby enhancing the employment opportunities,
15 public health and general welfare, and economic development
16 within the community, including administrative expenditures
17 exclusively to further these activities. These funds,
18 however, shall not be used by the city, village, or
19 incorporated town, directly or indirectly, to purchase,
20 lease, operate, or in any way subsidize the operation of any
21 incinerator or tire recycling or disposal facility, and these
22 funds shall not be paid, directly or indirectly, by the city,
23 village, or incorporated town to the owner, operator, lessee,
24 shareholder, or bondholder of any incinerator or tire
25 recycling or disposal facility. Moreover, these funds shall
26 not be used to pay attorneys fees in any litigation relating
27 to the validity of Public Act 89-448. Nothing in this
28 Section prevents a city, village, or incorporated town from
29 using other corporate funds for any legitimate purpose. For
30 purposes of this subsection, the term "municipal waste" has
31 the meaning ascribed to it in Section 3.21 of the
32 Environmental Protection Act.
33 (k) If maximum aggregate distributions under subsection
34 (j) have been made after the January distribution from the
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1 Municipal Economic Development Fund, then the balance in the
2 Fund shall be refunded to the qualified solid waste energy
3 facilities that made payments that were deposited into the
4 Fund during the previous 12-month period. The refunds shall
5 be prorated based upon the facility's payments in relation to
6 total payments for that 12-month period.
7 (l) Beginning January 1, 2000, and each January 1
8 thereafter, each city, village, or incorporated town that
9 received distributions from the Municipal Economic
10 Development Fund, continued to hold any of those
11 distributions, or made expenditures from those distributions
12 during the immediately preceding year shall submit to a
13 financial and compliance and program audit of those
14 distributions performed by the Auditor General at no cost to
15 the city, village, or incorporated town that received the
16 distributions. The audit should be completed by June 30 or
17 as soon thereafter as possible. The audit shall be submitted
18 to the State Treasurer and those officers enumerated in
19 Section 3-14 of the Illinois State Auditing Act. If the
20 Auditor General finds that distributions have been expended
21 in violation of this Section, the Auditor General shall refer
22 the matter to the Attorney General. The Attorney General may
23 recover, in a civil action, 3 times the amount of any
24 distributions illegally expended. For purposes of this
25 subsection, the terms "financial audit," "compliance audit",
26 and "program audit" have the meanings ascribed to them in
27 Sections 1-13 and 1-15 of the Illinois State Auditing Act.
28 (Source: P.A. 89-448, eff. 3-14-96.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law and supercedes the provisions of Senate Bill 299
31 of the 90th General Assembly if that bill becomes law.
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1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 5/3-1 from Ch. 15, par. 303-1
4 35 ILCS 640/2-7
5 35 ILCS 640/2-9
6 220 ILCS 5/8-403.1 from Ch. 111 2/3, par. 8-403.1