govt.fyi
Back to HB 3725
Illinois General Assembly· HB 3725Governor Approved

LOCAL GOVERNMENT BILLING ACT, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Illinois General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
HB3725 Enrolled                     LRB104 10905 RTM 20987 b

1   AN ACT concerning local government.

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 Local

5 Government Billing Act.

6   Section 5. Definitions. As used in this Act:

7   "Corporate authorities" includes, but is not limited to:

8   (1) the county board of a county;

9   (2) the corporate authorities of a municipality;

10  (3) the township officials of a township; and

11  (4) the board of trustees of a special district.

12  Section 10. Billing for services.

13  (a) Beginning on the effective date of this Act, the

14 corporate authorities of any unit of local government

15 operating a waterworks, sewerage system, combined waterworks

16 and sewerage system, or electric utility:

17  (1) shall bill for any utility service, including

18  previously unbilled service: (A) within 12 months after

19  the provision of that service to the customer if the

20  service is supplied to a residential customer; or (B)

21  within 24 months after the provision of that service to

22  that customer if the service is supplied to a
    HB3725 Enrolled        -2-     LRB104 10905 RTM 20987 b

1   non-residential customer; however, the corporate

2   authorities of the unit of government may bill for unpaid

3   amounts that were billed to a customer or if the customer

4   was notified that there is an unpaid amount before the

5   effective date of this Act for service that was supplied

6   to the customer before January 1, 2026;

7   (2) shall not intentionally delay billing beyond the

8   normal billing cycle;

9   (3) shall label any amount attributed to previously

10  unbilled service as such on the customer's bill and

11  include the beginning and ending dates for the period

12  during which the previously unbilled amount accrued;

13  (4) shall issue the makeup billing amount calculated

14  on a prorated basis to reflect the varying rates for

15  previously unbilled service accrued over a period of time

16  when the rates for service have varied; and

17  (5) shall provide the customer with the option of a

18  payment arrangement to retire the makeup bill for

19  previously unbilled service by periodic payments, without

20  interest or late fees, over a time equal to the amount of

21  time the billing was delayed.

22  (b) The time limit of paragraph (1) of subsection (a)

23 shall not apply to previously unbilled service attributed to

24 tampering, theft of service, fraud, or the customer preventing

25 the utility's recorded efforts to obtain an accurate reading

26 of the meter.
    HB3725 Enrolled            -3-   LRB104 10905 RTM 20987 b

1   Section 15. Home rule. A home rule unit of local

2 government may not regulate utilities in a manner inconsistent

3 with this Act. This Section is a limitation under subsection

4 (i) of Section 6 of Article VII of the Illinois Constitution on

5 the concurrent exercise by home rule units of powers and

6 functions exercised by the State.

7   (65 ILCS 5/11-150-2 rep.)

8   Section 75. The Illinois Municipal Code is amended by

9 repealing Section 11-150-2.

10  (70 ILCS 3705/7.4 rep.)

11  Section 80. The Public Water District Act is amended by

12 repealing Section 7.4.

13  (70 ILCS 3710/5.3 rep.)

14  Section 85. The Water Service District Act is amended by

15 repealing Section 5.3.

16  Section 90. The Water Authorities Act is amended by

17 changing Section 6 as follows:

18  (70 ILCS 3715/6) (from Ch. 111 2/3, par. 228)

19  Sec. 6. Such board of trustees shall have the following

20 powers:
    HB3725 Enrolled  -4-          LRB104 10905 RTM 20987 b

1   1. To make inspections of wells or other withdrawal

2   facilities and to require information and data from the

3   owners or operators thereof concerning the supply,

4   withdrawal and use of water.

5   2. To require the registration with them of all wells

6   or other withdrawal facilities in accordance with such

7   form or forms as they deem advisable.

8   3. To require permits from them for all additional

9   wells or withdrawal facilities or for the deepening,

10  extending or enlarging existing wells or withdrawal

11  facilities.

12  4. To require the plugging of abandoned wells or the

13  repair of any well or withdrawal facility to prevent loss

14  of water or contamination of supply.

15  5. To reasonably regulate the use of water and during

16  any period of actual or threatened shortage to establish

17  limits upon or priorities as to the use of water. In

18  issuing any such regulation, limitation, or priority, such

19  board shall seek to promote the common welfare by

20  considering the public interest, the average amount of

21  present withdrawals, relative benefits or importance of

22  use, economy or efficiency of use and any other reasonable

23  differentiation. Appropriate consideration shall also be

24  given to any user, who has theretofore reduced the volume

25  of ground water previously consumed by such user or who

26  has taken care of increased requirements by installing and
    HB3725 Enrolled  -5-         LRB104 10905 RTM 20987 b

1   using equipment and facilities permitting the use of

2   surface water by such user.

3   6. To supplement the existing water supply or provide

4   additional water supply by such means as may be

5   practicable or feasible. They may acquire property or

6   property rights either within or without the boundaries of

7   the authority by purchase, lease, condemnation proceedings

8   or otherwise, and they may construct, maintain and operate

9   wells, reservoirs, pumping stations, purification plants,

10  infiltration pits, recharging wells and such other

11  facilities as may be necessary to insure an adequate

12  supply of water for the present and future needs of the

13  authority. They shall have the right to sell water to

14  municipalities or public utilities operating water

15  distribution systems either within or without the

16  authority.

17  7. To levy and collect a general tax on all of the

18  taxable property within the corporate limits of the

19  authority, the aggregate amount of which for one year,

20  exclusive of the amount levied for bonded indebtedness or

21  interest thereon, shall not exceed .08 per cent of the

22  value as equalized or assessed by the Department of

23  Revenue. For the purpose of acquiring necessary property

24  or facilities, to issue general obligation bonds bearing

25  interest at the rate of not to exceed the maximum rate

26  authorized by the Bond Authorization Act, as amended at
    HB3725 Enrolled  -6-  LRB104 10905 RTM 20987 b

1   the time of the making of the contract, and payable over a

2   period of not to exceed 20 years, the aggregate principal

3   amount of which at any one time outstanding shall not

4   exceed one-half of 1% of the value as equalized or

5   assessed by the Department of Revenue of all taxable

6   property located within the corporate limits of the

7   authority and to levy and collect a further or additional

8   direct annual tax upon all the taxable property within the

9   corporate limits of such authority sufficient to meet the

10  principal and interest of such bonds as the same mature.

11  They shall also have authority to issue revenue bonds

12  payable solely out of anticipated revenues.

13  8. To consult with and receive available information

14  concerning their duties and responsibilities from the

15  State Water Survey, the State Geological Survey, the Board

16  of Natural Resources and Conservation, the Water Resources

17  and Flood Control Board and any other board or commission

18  of the State. Before constructing any facility for

19  providing additional water supply, the plans therefor

20  shall be submitted to and approved by the Environmental

21  Protection Agency or its successor and all operations of

22  such facilities shall be conducted in accordance with such

23  rules and regulations as may from time to time be

24  prescribed by the Pollution Control Board.

25  9. To have the right by appropriate action in the

26  circuit court of any county in which such authority, or
    HB3725 Enrolled    -7-      LRB104 10905 RTM 20987 b

1   any part thereof, is located to restrain any violation or

2   threatened violation of any of their orders, rules,

3   regulations or ordinances.

4   10. To provide by ordinance that the violation of any

5   provision of any rule, regulation or ordinance adopted by

6   them shall constitute a misdemeanor subject to a fine by

7   the circuit court of not to exceed $50 for each act of

8   violation and that each day's violation shall constitute a

9   separate offense.

10  11. (Blank). On or after the effective date of this

11  amendatory Act of the 100th General Assembly, to bill for

12  any utility service, including previously unbilled

13  service, supplied to a residential customer within 12

14  months, or a non-residential customer within 24 months,

15  after the provision of that service to the customer;

16  however, the water authority may bill for unpaid amounts

17  that were billed to a customer or if the customer was

18  notified that there is an unpaid amount before the

19  effective date of this amendatory Act of the 100th General

20  Assembly for service that was supplied to the customer

21  before January 1, 2016. The time limit of this paragraph

22  shall not apply to previously unbilled service attributed

23  to tampering, theft of service, fraud, or the customer

24  preventing the utility's recorded efforts to obtain an

25  accurate reading of the meter. The trustees shall: (i)

26  label any amount attributed to previously unbilled service
    HB3725 Enrolled  -8-  LRB104 10905 RTM 20987 b

1   as such on the customer's bill and include the beginning

2   and ending dates for the period during which the

3   previously unbilled amount accrued; (ii) issue the makeup

4   billing amount calculated on a prorated basis to reflect

5   the varying rates for previously unbilled service accrued

6   over a period of time when the rates for service have

7   varied; and (iii) provide the customer with the option of

8   a payment arrangement to retire the makeup bill for

9   previously unbilled service by periodic payments, without

10  interest or late fees, over a time equal to the amount of

11  time the billing was delayed. The trustees shall not

12  intentionally delay billing beyond the normal bill cycle.

13  With respect to instruments for the payment of money

14 issued under this Section either before, on, or after the

15 effective date of this amendatory Act of 1989, it is and always

16 has been the intention of the General Assembly (i) that the

17 Omnibus Bond Acts are and always have been supplementary

18 grants of power to issue instruments in accordance with the

19 Omnibus Bond Acts, regardless of any provision of this Act

20 that may appear to be or to have been more restrictive than

21 those Acts, (ii) that the provisions of this Section are not a

22 limitation on the supplementary authority granted by the

23 Omnibus Bond Acts, and (iii) that instruments issued under

24 this Section within the supplementary authority granted by the

25 Omnibus Bond Acts are not invalid because of any provision of

26 this Act that may appear to be or to have been more restrictive
    HB3725 Enrolled         -9-          LRB104 10905 RTM 20987 b

1 than those Acts.
2 (Source: P.A. 100-178, eff. 8-18-17.)

3   Section 95. The Water Commission Act of 1985 is amended by

4 changing Section 0.001b as follows:

5   (70 ILCS 3720/0.001b)

6   Sec. 0.001b. Powers and duties. A water commission has the

7 power and duty to:

8   (1) establish and define the responsibilities of the

9   commission and its committees;

10  (2) establish and define the responsibilities of the

11  commission's management and staff;

12  (3) establish a finance committee to conduct monthly

13  meetings to supervise staff's handling of financial

14  matters and budgeting;

15  (4) require the finance director and treasurer to

16  report to the finance committee the status of all

17  commission funds and obligations;

18  (5) require the treasurer to report to the commission

19  any improper or unnecessary expenditures, budgetary

20  errors, or accounting irregularities;

21  (6) require commission staff to document and comply

22  with standard accounting policies, procedures, and

23  controls to ensure accurate reporting to the finance

24  committee and commission and to identify improper or
    HB3725 Enrolled       - 10 - LRB104 10905 RTM 20987 b

1   unnecessary expenditures, budgetary errors, or accounting

2   irregularities;

3   (7) require the commission's finance director to

4   provide monthly reports regarding the commission's cash

5   and investment position including whether the commission

6   has sufficient cash and investments to pay its debt

7   service, operating expenses, and capital expenditures and

8   maintain required reserve levels. The information shall

9   include the required funding levels for restricted funds

10  and unrestricted cash and investment balances with

11  comparisons to unrestricted reserves. The information

12  shall also include the type and performance of the

13  commission's investments and description as to whether

14  those investments are in compliance with the commission's

15  investment policies;

16  (8) require the commission's finance director to

17  provide the commission with detailed information

18  concerning the commission's operating performance

19  including the budgeted and actual monthly amounts for

20  water sales, water costs, and other operating expenses;

21  (9) require commission staff to provide the commission

22  with detailed information regarding the progress of

23  capital projects including whether the percentage of

24  completion and costs incurred are timely;

25  (10) require the commission's staff accountant to

26  perform bank reconciliations and general ledger account
    HB3725 Enrolled     - 11 - LRB104 10905 RTM 20987 b

1   reconciliations on a monthly basis; the finance director

2   shall review these reconciliations and provide them to the

3   treasurer and the finance committee on a monthly basis;

4   (11) establish policies to ensure the proper

5   segregation of the financial duties performed by

6   employees;

7   (12) restrict access to the established accounting

8   systems and general ledger systems and provide for

9   adequate segregation of duties so that no single person

10  has sole access and control over the accounting system or

11  the general ledger system;

12  (13) require that the finance director review and

13  approve all manual journal entries and supporting

14  documentation; the treasurer shall review and approve the

15  finance director's review and approval of manual journal

16  entries and supporting documentation;

17  (14) require that the finance director closely monitor

18  the progress of construction projects;

19  (15) require that the finance director carefully

20  document any GAAP analysis or communications with GASB and

21  provide full and timely reports for the same to the

22  finance committee;

23  (16) retain an outside independent auditor to perform

24  a comprehensive audit of the water commission's financial

25  activities for each fiscal year in conformance with the

26  standard practices of the Association of Governmental
    HB3725 Enrolled      - 12 - LRB104 10905 RTM 20987 b

1   Auditors; within 30 days after the independent audit is

2   completed, the results of the audit must be sent to the

3   county auditor; and

4   (17) (blank). on or after the effective date of this

5   amendatory Act of the 100th General Assembly, bill for any

6   utility service, including previously unbilled service,

7   supplied to a residential customer within 12 months, or a

8   non-residential customer within 24 months, after the

9   provision of that service to the customer; however, the

10  water commission may bill for unpaid amounts that were

11  billed to a customer or if the customer was notified that

12  there is an unpaid amount before the effective date of

13  this amendatory Act of the 100th General Assembly for

14  service that was supplied to the customer before January

15  1, 2016. The time limit of this paragraph shall not apply

16  to previously unbilled service attributed to tampering,

17  theft of service, fraud, or the customer preventing the

18  utility's recorded efforts to obtain an accurate reading

19  of the meter. The commission shall: (i) label any amount

20  attributed to previously unbilled service as such on the

21  customer's bill and include the beginning and ending dates

22  for the period during which the previously unbilled amount

23  accrued; (ii) issue the makeup billing amount calculated

24  on a prorated basis to reflect the varying rates for

25  previously unbilled service accrued over a period of time

26  when the rates for service have varied; and (iii) provide
   HB3725 Enrolled  - 13 - LRB104 10905 RTM 20987 b

1  the customer with the option of a payment arrangement to

2  retire the makeup bill for previously unbilled service by

3  periodic payments, without interest or late fees, over a

4  time equal to the amount of time the billing was delayed.

5  The commission shall not intentionally delay billing

6  beyond the normal bill cycle.

7 (Source: P.A. 100-178, eff. 8-18-17.)
Every fact on this page links to its source, starting with the official bill record.