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SB 1513

MUNI CD-EMINENT DOMAIN-WATER

104th Regular Session Introduced by Graciela Guzmán and 3 co-sponsors

Permits municipalities to acquire water and sewer systems through eminent domain, with area-wide voter referenda, feasibility reviews, and protections for customers.

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Bill Summary · SB 1513

Summary — SB 1513 (as amended by Senate Committee Amendment No. 1)

Title: MUNI CD — Eminent Domain — Water / Municipal Acquisition of Water & Sewer Systems

Note on sources: The file provided contains multiple, state-different drafts (an Arizona housing-related draft and an Illinois Municipal Code draft). This summary focuses on the text added by Senate Committee Amendment No. 1 (Illinois language) and the procedural record showing that amendment was filed and re‑referred to Assignments.

Purpose / Intent

The amendment clarifies and expands municipal authority and procedures for acquiring water and sewer systems owned by public utilities, including use of eminent domain. It adds an express option to submit certain municipal eminent-domain acquisitions to voter referendum in the area served by the affected system and clarifies petition and election procedures and feasibility-review requirements.

Key provisions

  • Municipal eminent-domain authority: Reaffirms that a municipality may acquire all or part of a water or sewer system owned by a public utility when the utility uses municipal property or right-of-way.
  • Referendum / petition process:
    • Eminent domain actions under this section may be submitted as a referendum to electors residing in the area served by the affected system.
    • Referendum timing: provisions call for submission at the next general election in an even-numbered year.
    • The petition/election processes for single-municipality systems and multi-municipality systems are to be governed by the applicable Election Code procedures (cited as Sections 28-6 and 28-7 in the bill).
    • If a majority of electors in the affected service area approve, the municipality proceeds to a feasibility determination and, if feasible, may initiate acquisition by eminent domain; if not approved, acquisition cannot be attempted for a specified moratorium period (e.g., two years as in earlier draft language).
  • Multi-municipality acquisitions: Allows acquisition by a majority of municipalities served, but requires an intergovernmental agreement among acquiring municipalities.
  • Customer protections: Service and supply obligations to existing customers on the effective date are to be honored without discrimination based on location inside or outside municipal boundaries and subject to existing agreements.
  • Feasibility review and information access:
    • Municipalities may inspect and review utility financial and operational records reasonably necessary to determine feasibility before making a good-faith offer.
    • Utilities must respond within specified timeframes and may claim confidentiality/proprietary treatment for certain information; municipalities may reimburse utilities for reasonable costs incurred in producing requested materials.
  • Broad definition of “system”: Includes assets reasonably necessary to provide water service (wells, pipes, treatment plants, customer records, service agreements, etc.).
  • Declared special use: The amendment states (in synopsis) that such eminent-domain acquisitions are to be considered a “special use” under parts of the Eminent Domain Act (per the bill synopsis).

Who is affected

  • Municipal governments: gain clearer procedures and an explicit referendum option to pursue municipal ownership of local water/sewer systems.
  • Public utilities subject to the Public Utilities Act: could face municipal acquisition efforts and must provide access to records for feasibility studies.
  • Customers/households and businesses served by the systems: protected from discriminatory service changes; potential impacts on rates and governance if ownership changes.
  • Intergovernmental entities: may be required when multiple municipalities participate.

Procedural / timeline notes

  • Referenda are scheduled for the next general election in an even-numbered year once petition/resolution timing requirements are met.
  • The Senate Committee Amendment No. 1 was filed 3/14/2025, referred to Assignments and re‑referred under Rule 3-9(a) on 6/02/2025.
  • Sponsor (Illinois language): Sen. Rachel Ventura (introduced). The provided record includes multiple other sponsors and cross-state material; the Illinois amendment text is linked to SB1513 (Illinois) with a companion bill noted (HB 1424).

Potential impacts / considerations

  • Facilitates municipal takeover of water/sewer systems in some circumstances, possibly increasing public ownership.
  • Adds direct voter involvement for affected service-area residents through referenda.
  • May spur disputes over valuation, compensation and the scope of confidential information utilities must disclose.
  • Could affect utility planning, investment, and rates depending on acquisition outcomes.

If you want, I can:
- Produce a one-page fact sheet for municipal officials and utilities summarizing rights and responsibilities under the amended Section 11-124-5.
- Extract and clarify the exact petition signature thresholds and moratorium durations if you provide the final clean text (some thresholds in the provided draft were garbled).

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

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