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SB 1444

STUDY CHICAGO WATER CONTRACTS

104th Regular Session Introduced by Mike Hastings and 1 co-sponsor

The bill directs an independent study to fully catalog Chicago water contracts, analyze costs and trends, and evaluate alternatives like a regional distribution entity to improve t

Added as Co-Sponsor Sen. Patrick J. Joyce
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Bill Summary · SB 1444

SB 1444 — Chicago Water Contracts Transparency Study Act

Status: Introduced (co‑sponsor added: Sen. Patrick J. Joyce) — Introduced Feb 19, 2025 (effective timing: “effective immediately” in draft)

Main purpose

Directs the Commission on Government Forecasting and Accountability (CGFA) to commission an independent, comprehensive study of the City of Chicago’s water contracts with municipalities that receive Chicago water. The study is intended to increase transparency about contract terms, past and projected costs, and to assess the feasibility and cost implications of alternative distribution arrangements (for example, a “Southwest Water Authority” or similar entity).

Key provisions

  • CGFA must commission an independent study that:
    • Identifies and catalogs all existing water contracts between the City of Chicago and distributing municipalities (including pass‑through arrangements).
    • Documents amounts charged by Chicago for water and analyzes historical charge/fee trends (including percentage increases over the past 10 years and the stated reasons for increases).
    • Reviews past infrastructure expenditures and estimates future capital and maintenance costs needed to sustain or upgrade delivery systems.
    • Projects impacts on municipal budgets and ratepayers under current contracts and under alternative distribution models.
    • Assesses the costs, timelines, operational and maintenance needs, environmental/regulatory considerations, and potential sources associated with creating an alternative distribution stream (e.g., Southwest Water Authority).
    • Evaluates market, regional, and statewide implications (competition, reliability, coordination with state water planning) and public‑private partnership options.
    • Provides recommendations to improve transparency, accountability, and equitable pricing in future contracts.
  • Public engagement: CGFA must hold at least two public hearings to solicit input from municipal officials, water industry experts, and other stakeholders; findings from hearings must be incorporated into the study.
  • Deliverable and timing: CGFA must submit a report (executive summary, detailed findings, recommendations) to the General Assembly and Governor no later than one year after the act’s effective date.

Who is affected

  • City of Chicago (contracting authority) and municipalities that purchase/distribute Chicago water
  • Municipal governments and water utility managers (contract and budget impacts)
  • Ratepayers/residents served under the contracts
  • State agencies and legislators (will receive and may act on study findings)
  • Potential new entities (e.g., regional water authority), private water industry participants, and environmental/regulatory stakeholders

Potential impact

  • Immediate fiscal impact: minimal (study costs not specified; CGFA to commission independent work).
  • Policy impact: provides a detailed factual basis for legislative or administrative action — e.g., renegotiation of contracts, creation of an alternative distribution entity, infrastructure investment plans, or regulatory changes.
  • Long‑term fiscal and operational consequences depend on study recommendations; a decision to pursue an alternative distribution system could involve substantial capital costs, changes in rates, and shifts in regional water governance.

Timeline / Next steps

  • Study to be commissioned by CGFA promptly after enactment.
  • At least two public hearings required.
  • Final report due to the General Assembly and Governor within one year of the act’s effective date.

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

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