Bill
HB 2533
Requires a local referendum in the service area before a large public utility can acquire a water or sewer utility; majority support lets the acquisition proceed, else ICC must blo
Note on source materials
- The materials provided include text from two different bills (an Arizona bill on worker rights during a public‑health emergency and an Illinois bill amending the Public Utilities Act). This summary focuses on the Illinois measure titled and filed as HB2533 (LRB104 08136 AAS 18182 b), which concerns water/sewer utility acquisitions and a voter referendum — consistent with the "WATER/SEWER UTILITY REFERENDUM" title and the bill synopsis.
Summary — HB2533 (Illinois): Water/Sewer Utility Referendum
Purpose
- Require a public referendum of local electors in the service area of a water or sewer utility when that utility (owned by the State or a political subdivision) is proposed to be acquired by a “large public utility.” The referendum outcome will determine whether the acquisition may proceed.
Key provisions
- Adds a referendum step to Section 9‑210.5 of the Illinois Public Utilities Act.
- Trigger: the next election held after the public meeting and notice already required under the Act.
- Ballot mechanics: the referendum must be placed on the ballot for all electors within the area the water or sewer utility serves; votes recorded as “yes” or “no.” The Election Code’s procedures apply.
- Outcome:
- If a majority of electors voting on the referendum within the utility’s service area vote “yes,” the acquisition may proceed.
- If fewer than a majority vote “yes,” the Illinois Commerce Commission (ICC) must not approve the large public utility’s acquisition of that water or sewer utility.
- Definitions (existing Section 9‑210.5 context retained):
- “Large public utility” generally means an investor‑owned utility regulated by the ICC that regularly provides water or sewer service to more than 15,000 customer connections.
- “Water or sewer utility” includes smaller public utilities (generally 6,000 or fewer connections), various special districts, municipally owned systems, and other non‑public‑utility entities that regularly provide water or sewer service.
- The amendment supplements (but does not necessarily replace) existing valuation and appraisal procedures in Section 9‑210.5 (which set out appraisal, engineering, and ratemaking rules when a large public utility acquires a smaller utility).
Who is affected
- Electors within the service area of the acquired water or sewer utility (local voters will decide).
- Municipalities, water districts, and other political subdivisions that own water/sewer systems.
- Investor‑owned “large public utilities” seeking acquisitions (those serving >15,000 connections).
- The Illinois Commerce Commission, which would be barred from approving an acquisition opposed by a local majority.
Procedural/timeline aspects
- The referendum must be held at the next election following the statutorily required public meeting and notice.
- Election procedures are governed by the Illinois Election Code.
- The bill text indicates Section 9‑210.5 is currently scheduled for repeal on June 1, 2028 (a timing detail already in statute that may affect long‑term applicability).
Legislative status and related measures
- Introduced in the Illinois House (Rep. Nabeela Syed; synopsis dated 2/4/2025).
- Companion bill: SB 564.
- (If tracking further action, consult the Illinois General Assembly docket for hearings, committee action, and final disposition.)
Potential impact
- Gives local voters direct authority to approve or block acquisitions of publicly owned water or sewer utilities by large investor‑owned utilities.
- Could slow or constrain consolidation of small municipal/district systems into large regulated utilities where local opposition exists.
- May alter negotiation dynamics between local owners and acquiring utilities and affect ICC acquisition/ratemaking procedures when a referendum is required.
Compiled from official sources — confirm details with the bill’s official record.
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