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HB 3725

LOCAL GOVERNMENT BILLING ACT

104th Regular Session Introduced by Chris Balkema and 14 co-sponsors

Local governments must bill for utility service within 12 months (residents) or 24 months (non-residents), with clear labeling, proration, and interest-free makeup payment options.

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Bill Summary · HB 3725

Summary — HB 3725: Local Government Billing Act (Public Act 104-0328)

Short title: Local Government Billing Act.

Purpose: Establish time limits and consumer protections for when local government units that operate utilities may bill customers for utility service, and set procedural requirements for billing previously unbilled service.

Key provisions

  • Scope: Applies to the “corporate authorities” of local government units operating a waterworks, sewerage system, combined water/sewer system, or electric utility. “Corporate authorities” includes county boards, municipal corporate authorities, township officials, and special district boards of trustees.
  • Billing time limits:
    • Residential customers: utilities must bill for any utility service (including previously unbilled service) within 12 months after the service was provided.
    • Non‑residential customers: utilities must bill within 24 months after the service was provided.
  • Exceptions and carve‑outs:
    • No time limit for previously unbilled service resulting from tampering, theft of service, fraud, or where the customer prevented the utility from obtaining an accurate meter reading.
    • Utilities may collect unpaid amounts that were already billed to a customer (or where the customer had been notified of the unpaid amount) before the Act’s effective date for service provided before January 1, 2026.
  • Billing mechanics and consumer protections:
    • Utilities may not intentionally delay billing beyond the normal billing cycle.
    • Any amount for previously unbilled service must be clearly labeled as such on the bill and show the beginning and ending dates of the accrual period.
    • Makeup charges for previously unbilled service must be prorated to reflect any rate changes during the accrual period.
    • Customers must be offered a payment arrangement for makeup bills: periodic payments without interest or late fees, over a period equal to the time the billing was delayed.
  • Home‑rule preemption: Home rule units may not adopt utility rules inconsistent with this Act (explicit constitutional limitation on local variation).
  • Statutory changes: Repeals specified sections in:
    • Illinois Municipal Code (65 ILCS 5/11‑150‑2),
    • Public Water District Act (70 ILCS 3705/7.4),
    • Water Service District Act (70 ILCS 3710/5.3).
    • Also amends Section 6 of the Water Authorities Act (70 ILCS 3715/6) (text in enrolled bill largely reproduces existing trustee powers).

Who is affected

  • Directly: Local government utilities and their governing “corporate authorities” (counties, municipalities, townships, special districts) that bill for water, sewer, combined water/sewer, or electric service.
  • Indirectly: Residential and non‑residential customers receiving service from those local government utilities; utility billing/finance operations (system changes, credit/collection practices).

Timeline & legislative status

  • Introduced: February 18, 2025 (Rep. Joe C. Sosnowski primary; Sen. Dave Syverson sponsor in Senate).
  • Passed both chambers: May 31, 2025.
  • Sent to Governor: June 24, 2025.
  • Governor approved: August 15, 2025.
  • Effective date: January 1, 2026.
  • Public Act number: 104‑0328.

Practical impact / considerations

  • Consumers gain clearer limits and protections against surprise back‑billing and access to interest‑free repayment terms for makeup bills.
  • Local government utilities will need to update billing practices, systems, and customer‑notification procedures to comply with time limits, labeling, proration, and payment‑plan requirements.
  • Revenue collection timing for local utilities may be affected; administrative and IT costs to implement changes are likely.
  • Fraud/theft/tampering exceptions preserve the ability to recover revenue where intentional interference is involved.

Compiled from official sources — confirm details with the bill’s official record.

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