Summary as Introduced
Creates the Local Government Billing Act. Provides that the corporate authorities of a unit of local government shall bill for any utility service, including previously unbilled service, within 12 months (for residential customers) or 24 months (for non-residential customers) after the provision of the utility service. Provides exceptions to the time limits for billing when the customer prevented the utility from accurately reading the meter. Provides that the corporate authorities shall not intentionally delay billing beyond the normal billing cycle, shall label amounts attributed to previously unbilled service as such, shall prorate previously unbilled service amounts to reflect varying rates during the unbilled time, and shall provide the customer with a payment arrangement option for previously unbilled service amounts. Provides that customers may be billed for unpaid amounts that were billed to a customer before the effective date of the Act for service that was supplied to the customer before January 1, 2026. Provides that customers may be billed for unpaid amounts if the customer was notified that there is an unpaid amount before the effective date of the Act for service that was supplied to the customer before January 1, 2026. Provides that there is no time limit for the corporate authorities of a unit of local government to collect previously unbilled service attributed to tampering, theft of service, fraud, or the customer preventing the utility's recorded efforts to obtain an accurate reading of the meter.
Staff Analysis
House Bill 3725 establishes the Local Government Billing Act, which introduces a standardized framework for how units of local government in Illinois can bill customers for utility services, especially in cases involving previously unbilled usage.
Key provisions of the bill include:
• Billing Time Limits: Units of local government must bill for any utility service—such as water, gas, or electricity—within 12 months for residential customers and 24 months for non-residential customers after the service is provided. This seeks to prevent unexpectedly large back-billing scenarios that can place a financial burden on customers.
• Exceptions: These time limitations do not apply if the customer prevented accurate meter readings through obstruction, fraud, tampering, or theft.
• Billing Requirements: Local governments must:
- Avoid intentionally delaying billing beyond the normal cycle.
- Clearly label charges for previously unbilled services.
- Prorate charges if rates varied over the unbilled period.
- Offer payment plan options for these previously unbilled amounts.
Transitional provisions allow for billing of unpaid service amounts that were either previously billed or communicated to customers before the law takes effect, provided the service was delivered before January 1, 2026.
Potential Ramifications for Counties
• Operational Adjustments: Counties and other local governments providing utility services will need to update billing procedures and software to comply with the time limits and labeling requirements.
• Revenue Recovery Constraints: While protecting customers, the 12- and 24-month limits may hinder a county’s ability to recover older unbilled revenues, potentially impacting budgets if billing errors were not caught promptly.
• Customer Relations: The required payment plans and transparency could improve customer satisfaction but may also increase administrative workload for staff managing billing disputes and installment arrangements.