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HB 3398

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2025 Regular Session Introduced by Sean Hornbuckle

HB 3398 sets the date of receipt for utility payments as either postmark or arrival at the utility, reducing late-fee disputes.

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Bill Summary · HB 3398

HB 3398 — Summary (Relating to state administration / Public Utilities Act)

Status: In committee upon adjournment (Introduced Feb 26, 2025)
Citation added if enacted: 220 ILCS 5/8-513 (new)

Purpose

HB 3398 clarifies when a payment for a utility bill or invoice is considered “received” under the Illinois Public Utilities Act. The bill is intended to reduce disputes and potential penalties (late fees, disconnection actions, etc.) that arise from uncertainty about the receipt date for payments, including mailed payments delayed in transit.

Key provisions

  • Adds a new Section 8-513 to the Public Utilities Act (220 ILCS 5/8-513).
  • Establishes that, on and after the bill’s effective date, the “date of receipt” for a utility payment is either:
    • the date a payment or payment instrument is presented to or arrives at the utility or its agent or vendor, or
    • the date the mailed payment or payment instrument is postmarked.
  • Authorizes the Illinois Commerce Commission (the “Commission”) to adopt rules to implement this section.

Who is affected

  • Regulated utilities governed by the Illinois Public Utilities Act (e.g., investor‑owned electric and gas utilities and their billing agents/vendors) — utilities will need to apply the receipt-date rule.
  • Utility customers — the rule changes what counts as on-time payment and may protect customers from late fees or disconnection where mailed payments were postmarked on time.
  • Third-party payment processors, lockbox operators, agents, and vendors that handle customer payments — they may need to adjust processes and recordkeeping.
  • The Illinois Commerce Commission — empowered to issue implementing rules and guidance.

Potential impacts and implementation notes

  • Mailed payments: postmark acceptance can prevent penalties for payments that arrive late due to postal delays.
  • Electronic and in-person payments: “presented to or arrives at” should cover payments delivered electronically or in person, but the Commission’s forthcoming rules will likely clarify time‑stamping and proof standards (e.g., timestamps for online payments, acceptable proof of postmark).
  • Billing systems and customer service procedures may require updates (recordkeeping, dispute handling, proof requirements).
  • Could reduce administrative disputes between customers and utilities over late payments; may shift operational or compliance costs to utilities and their vendors.

Procedural timeline / actions (selected)

  • Filed: Feb 7, 2025 (with Clerk); First reading & referral actions in Feb–Mar 2025.
  • Public Utilities Committee: Do Pass / Short Debate (Mar 18, 2025; vote 13–7).
  • Readings and calendar actions: Feb–Mar 2025.
  • Current status: In committee upon adjournment (June 28, 2025).

Notes

  • The bill’s effective date is the standard “effective date of this amendatory Act of the 104th General Assembly”; the Commission’s rulemaking will determine implementation detail and acceptable proof for different payment methods.

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

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