| ![](/https/www.ilga.gov/images/1ptrans.gif) |
Public Act 096-1422 Public Act 1422 96TH GENERAL ASSEMBLY |
Public Act 096-1422 | SB2612 Enrolled | LRB096 13422 RLJ 28151 b |
|
| AN ACT concerning local government.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Electricity Infrastructure Maintenance Fee | Law is amended by adding Section 5-10 as follows:
| (35 ILCS 645/5-10 new)
| Sec. 5-10. Municipal tax review; requests for information. | (a) A municipality may conduct an audit of fees under this | Act to determine the accuracy of the fees paid by an | electricity deliverer.
| (b) Not more than once every 2 years, a municipality that | has imposed a fee under this Law may, subject to the | limitations and protections stated in Section 16-122 of the | Public Utilities Act, request any information from an | electricity deliverer that the municipality reasonably | requires in order to perform an audit under subsection (a). The | information that may be requested by the municipality includes, | without limitation: | (1) in an electronic format, the database used by the | electricity deliverer to determine the amount due to the | municipality; provided, however, that, if the municipality | has requested customer-specific billing, usage, and load | shape data from an electricity deliverer that is an |
| electric utility and has not provided the electric utility | with the verifiable authorization required by Section | 16-122 of the Public Utilities Act, then the electric | utility shall remove from the database all | customer-specific billing, usage, and load shape data | before providing it to the municipality; and | (2) in a format used by the public utility in the | ordinary course of its business, summary data, as needed by | the municipality, to determine the unit consumption by | providing the gross kilowatt-hours or other units of | measurement subject to the fee imposed by this Law within | the municipal jurisdiction. | (c) Each electricity deliverer must provide the | information requested under subsection (b) within: | (1) 60 days after the date of the request if the | population of the requesting municipality is 500,000 or | less; or | (2) 90 days after the date of the request if the | population of the requesting municipality exceeds 500,000. | The time in which an electricity deliverer must provide the | information requested under subsection (b) may be extended by | an agreement between the municipality and the electricity | deliverer. If an electricity deliverer receives, during a | single month, information requests from more than 2 | municipalities, or the aggregate population of the requesting | municipalities is 100,000 customers or more, the electricity |
| deliverer is entitled to an additional 30 days to respond to | those requests. | (d) If an audit by the municipality or its agents finds an | error by the electricity deliverer in the amount of fees | collected or paid by the electricity deliverer, then the | municipality must notify the electricity deliverer of the | error. Any such notice must be issued pursuant to Section 30 of | the Local Government Taxpayers' Bill of Rights Act or a lesser | period of time from the date the fee was due that may be | specified in the municipal ordinance imposing the fee. Upon | such a notice, any audit shall be conducted pursuant to Section | 35 of the Local Government Taxpayers' Bill of Rights Act | subject to the timelines set forth in this subsection (d). The | electricity deliverer must submit a written response within 60 | days after the date the notice was postmarked stating that it | has corrected the error or stating the reason that the error is | inapplicable or inaccurate. The municipality then has 60 days | after the receipt of the electricity deliverer's response to | review and contest the conclusion of the electricity deliverer. | If the parties are unable to agree on the disposition of the | audit findings within 120 days after the notification of the | error to the electricity deliverer, then either party may | submit the matter for appeal as outlined in Section 40 of the | Local Government Taxpayers' Bill of Rights Act. If the appeals | process does not produce a satisfactory result, then either | party may pursue the alleged error in a court of competent |
| jurisdiction. | (e) Electricity deliverers and municipalities are not | liable for any error in past collections and payments that was | unknown to either the electricity deliverer or the municipality | prior to the audit process unless the error was due to | negligence in the collection or processing of required data. | If, however, an error in past collections or payments resulted | in a customer, who should not have owed a fee to any | municipality, having paid a fee to a municipality, then the | customer may, to the extent allowed by Section 9-252 of the | Public Utilities Act, recover the fee from the electricity | deliverer, and any amount so paid by the electricity deliverer | may be deducted by that electricity deliverer from any fees or | taxes then or thereafter owed by the electricity deliverer to | that municipality. | (f) All account specific information provided by an | electricity deliverer under this Section may be used only for | the purpose of an audit of fees conducted under this Section | and the enforcement of any related claim. All such information | must be held in strict confidence by the municipality and its | agents and may not be disclosed to the public under the Freedom | of Information Act or under any other similar statutes allowing | for or requiring public disclosure. | (g) The provisions of this Section shall not be construed | as diminishing or replacing any civil remedy available to a | municipality, taxpayer, or tax collector. |
| (h) This Section does not apply to any municipality having | a population greater than 1,000,000. | Section 10. The Local Government Taxpayers' Bill of Rights | Act is amended by changing Sections 10 and 35 as follows:
| (50 ILCS 45/10)
| Sec. 10. Application and home rule preemption. The
| limitations provided by this Act shall take precedence over
any | provision of any tax ordinance imposed by a unit of local
| government, as defined in this Act, in Illinois , including | without limitation any tax authorized under Section 8-11-2 of | the Illinois Municipal Code .
| Consistent with the limitations provided by this Act, a | municipality, other than a municipality having a population | greater than 1,000,000, may not impose any penalty with respect | to a tax authorized by Section 8-11-2 of the Illinois Municipal | Code or with respect to an audit authorized by Section 8-11-2.5 | of the Illinois Municipal Code, except as specified in Sections | 50, 55, and 60 of this Act. | This Act is a denial and limitation of home rule powers
and | functions under subsection (g) of Section 6 of Article
VII of | the Illinois Constitution.
| (Source: P.A. 91-920, eff. 1-1-01.)
| (50 ILCS 45/35)
|
| Sec. 35. Audit procedures. Taxpayers have the right
to be | treated by officers, employees, and agents of the local
tax | administrator with courtesy, fairness, uniformity,
| consistency, and common sense. This Section applies to any | audit of a tax imposed by a unit of local government other than | a municipality having a population greater than 1,000,000, | except to the extent otherwise provided in Section 8-11-2.5 of | the Illinois Municipal Code. Taxpayers must be notified in
| writing by the local jurisdiction of a proposed audit of the | taxpayer's books and
records clearly identifying who will be | conducting the audit. For audits being conducted by third-party | providers, the local jurisdiction must provide written | authorization for the third-party provider to review the books | and records of the taxpayer. No contact may be made by the | third-party provider until the local-jurisdiction | authorization is received by the taxpayer . The notice of audit | must specify the tax and time
period to be audited and must | detail the minimum
documentation or books and records to be | made available to
the auditor. Audits must be held only during | reasonable
times of the day and, unless impracticable, at times | agreed
to by the taxpayer. The auditor must sign a | confidentiality agreement upon request by the taxpayer. Upon | the completion of the audit, the local jurisdiction must issue | an audit closure report to the taxpayer with the results of the | audit. An auditor who determines that there has
been an | overpayment of tax during the course of the audit is
obligated |
| to identify the overpayment to the taxpayer so that
the | taxpayer can take the necessary steps to recover the
| overpayment. If the overpayment is the result of the | application
of some or all of the taxpayer's tax payment to an | incorrect
local government entity, then upon request by a unit | of local government, the audit information must be given to any | unit of local government that may be affected by an overpayment | the auditor must notify the correct
local government entity of | the taxpayer's application error .
| (Source: P.A. 91-920, eff. 1-1-01.)
| Section 15. The Counties Code is amended by adding Section | 5-1095.1 as follows: | (55 ILCS 5/5-1095.1 new)
| Sec. 5-1095.1. County franchise fee review; requests for | information. | (a) If pursuant to its franchise agreement with a community | antenna television system (CATV) operator, a county imposes a | franchise fee authorized by 47 U.S.C. 542, then the county may | conduct an audit of that CATV operator's franchise fees derived | from the provision of cable and video services to subscribers | within the franchise area to determine whether the amount of | franchise fees paid by that CATV operator to the county was | accurate. Any audit conducted under this subsection (a) shall | determine any overpayment or underpayment to the county by the |
| CATV operator, and the amount due to the county or CATV | operator is limited to the net difference. | (b) Not more than once every 2 years, a county that has | imposed a franchise fee authorized by 47 U.S.C. 542 may, | subject to the limitations and protections stated in the Local | Government Taxpayers' Bill of Rights Act, request information | from the CATV operator in the format maintained by the CATV | operator in the ordinary course of its business that the county | reasonably requires in order to perform an audit under | subsection (a). The information that may be requested by the | county includes without limitation the following: | (1) in an electronic format used by the CATV operator | in the ordinary course of its business, the database used | by the CATV operator to determine the amount of the | franchise fee due to the county; and | (2) in a format used by the CATV operator in the | ordinary course of its business, summary data, as needed by | the county, to determine the CATV operator's franchise fees | derived from the provision of cable and video services to | subscribers within the CATV operator's franchise area. | (c) The CATV operator must provide the information | requested under subsection (b) within: | (1) 60 days after the receipt of the request if the | population of the requesting county is 500,000 or less; or | (2) 90 days after the receipt of the request if the | population of the requesting county exceeds 500,000. |
| The time in which a CATV operator must provide the | information requested under subsection (b) may be extended by | an agreement between the county and the CATV operator. | (d) If an audit by the county or its agents finds an error | by the CATV operator in the amount of the franchise fees paid | by the CATV operator to the county, then the county may notify | the CATV operator of the error. Any such notice must be given | to the CATV operator by the county within 90 days after the | county discovers the error, and no later than 4 years after the | date the franchise fee was due. Upon such a notice, the CATV | operator must submit a written response within 60 days after | receipt of the notice stating that the CATV operator has | corrected the error on a prospective basis or stating the | reason that the error is inapplicable or inaccurate. The county | then has 60 days after the receipt of the CATV operator's | response to review and contest the conclusion of the CATV | operator. No legal proceeding to collect a deficiency based | upon an alleged error shall be commenced unless within 180 days | after the county's notification of the error to the CATV | operator the parties are unable to agree on the disposition of | the audit findings. | (e) No CATV operator is liable for any error in past | franchise fee payments that was unknown by the CATV operator | prior to the audit process unless (i) the error was due to | negligence on the part of the CATV operator in the collection | or processing of required data and (ii) the county had not |
| failed to respond in writing in a timely manner to any written | request of the CATV operator to review and correct information | used by the CATV operator to calculate the appropriate | franchise fees if a diligent review of such information by the | county reasonably could have been expected to discover such | error. | (f) All account specific information provided by a CATV | operator under this Section may be used only for the purpose of | an audit conducted under this Section and the enforcement of | any franchise fee delinquent claim. All such information must | be held in strict confidence by the county and its agents and | may not be disclosed to the public under the Freedom of | Information Act or under any other similar statutes allowing | for or requiring public disclosure. | (g) For the purposes of this Section, "CATV operator" means | a person or entity that provides cable and video services under | a franchise agreement with a county pursuant to Section 5-1095 | of the Counties Code and a holder authorized under Section | 21-401 of the Cable and Video Competition Law of 2007 as | consistent with Section 21-901 of that Law. | (h) This Section does not apply to any action that was | commenced, to any complaint that was filed, or to any audit | that was commenced before the effective date of this amendatory | Act of the 96th General Assembly. This Section also does not | apply to any franchise agreement that was entered into before | the effective date of this amendatory Act of the 96th General |
| Assembly unless the franchise agreement contains audit | provisions but no specifics regarding audit procedures. | (i) The provisions of this Section shall not be construed | as diminishing or replacing any civil remedy available to a | county, taxpayer, or tax collector. | (j) If a contingent fee is paid to an auditor, then the | payment must be based upon the net difference of the complete | audit. | (k) Within 90 days after the effective date of this | amendatory Act of the 96th General Assembly, a county shall | provide to any CATV operator a complete list of addresses | within the corporate limits of the county and shall annually | update the list. | (l) This Section is a denial and limitation of home rule | powers and functions under subsection (h) of Section 6 of | Article VII of the Illinois Constitution. | Section 20. The Illinois Municipal Code is amended by | adding Sections 8-11-2.5 and 11-42-11.05 as follows: | (65 ILCS 5/8-11-2.5 new)
| Sec. 8-11-2.5. Municipal tax review; requests for | information. | (a) If a municipality has imposed a tax under Section | 8-11-2, then the municipality may conduct an audit of tax | receipts collected from the public utility that is subject to |
| the tax
or that collects the tax from purchasers on behalf of | the municipality to determine whether the amount of tax that | was paid by the public utility was accurate.
| (b) Not more than once every 2 years, a municipality that | has imposed a tax under this Act may, subject to the | limitations and protections stated in Section 16-122 of the | Public Utilities Act and in the Local Government Taxpayers' | Bill of Rights Act, request any information from a utility in | the format maintained by the public utility in the ordinary | course of its business that the municipality reasonably | requires in order to perform an audit under subsection (a). The | information that may be requested by the municipality includes, | without limitation: | (1) in an electronic format used by the public utility | in the ordinary course of its business, the database used | by the public utility to determine the amount of tax due to | the municipality; provided, however, that, if the | municipality has requested customer-specific billing, | usage, and load shape data from a public utility that is an | electric utility and has not provided the electric utility | with the verifiable authorization required by Section | 16-122 of the Public Utilities Act, then the electric | utility shall remove from the database all | customer-specific billing, usage, and load shape data | before providing it to the municipality; and | (2) in a format used by the public utility in the |
| ordinary course of its business, summary data, as needed by | the municipality, to determine the unit consumption of | utility services by providing the gross therms, kilowatts, | minutes, or other units of measurement being taxed within | the municipal jurisdiction and the gross revenues | collected and the associated taxes assessed. | (c) Each public utility must provide the information | requested under subsection (b) within: | (1) 60 days after the date of the request if the | population of the requesting municipality is 500,000 or | less; or | (2) 90 days after the date of the request if the | population of the requesting municipality exceeds 500,000. | The time in which a public utility must provide the | information requested under subsection (b) may be extended by | an agreement between the municipality and the public utility. | If a public utility receives, during a single month, | information requests from more than 2 municipalities, or the | aggregate population of the requesting municipalities is | 100,000 customers or more, the public utility is entitled to an | additional 30 days to respond to those requests. | (d) If an audit by the municipality or its agents finds an | error by the public utility in the amount of taxes paid by the | public utility, then the municipality must notify the public | utility of the error. Any such notice must be issued pursuant | to Section 30 of the Local Government Taxpayers' Bill of Rights |
| Act or
a lesser period of time from the date the tax was due | that may be specified in the municipal
ordinance imposing the | tax. Upon such a notice, any audit shall be conducted pursuant | to Section 35 of the Local Government Taxpayers' Bill of Rights | Act subject to the timelines set forth in this subsection (d). | The public utility must submit a written response within 60 | days after the date the notice was postmarked stating that it | has corrected the error or stating the reason that the error is | inapplicable or inaccurate. The municipality then has 60 days | after the receipt of the public utility's response to review | and contest the conclusion of the public utility. If the | parties are unable to agree on the disposition of the audit | findings within 120 days after the notification of the error to | the public utility, then either party may submit the matter for | appeal as outlined in Section 40 of the Local Government | Taxpayers' Bill of Rights Act. If the appeals process does not | produce a satisfactory result, then either party may pursue the | alleged error in a court of competent jurisdiction. | (e) No public utility is liable for any error in past | collections and payments that was unknown by it prior to the | audit process unless (i) the error was due to negligence by the | public utility in the collection or processing of required data | and (ii) the municipality had not failed to respond in writing | on an accurate and timely basis to any written request of the | public utility to review and correct information used by the | public utility to collect the municipality's tax if a diligent |
| review of such information by the municipality reasonably could | have been expected to discover such error. If, however, an | error in past collections or payments resulted in a customer, | who should not have owed a tax to any municipality, having paid | a tax to a municipality, then the customer may, to the extent | allowed by Section 9-252 of the Public Utilities Act, recover | the tax from the public utility, and any amount so paid by the | public utility may be deducted by that public utility from any | taxes then or thereafter owed by the public utility to that | municipality. | (f) All account specific information provided by a public | utility under this Section may be used only for the purpose of | an audit of taxes conducted under this Section and the | enforcement of any related tax claim. All such information must | be held in strict confidence by the municipality
and its agents | and may not be disclosed to the public under the Freedom of | Information Act or under any other similar statutes allowing | for or requiring public disclosure. | (g) The provisions of this Section shall not be construed | as diminishing or replacing any civil remedy available to a | municipality, taxpayer, or tax collector. | (h) This Section does not apply to any municipality having | a population greater than 1,000,000. | (65 ILCS 5/11-42-11.05 new)
| Sec. 11-42-11.05. Municipal franchise fee review; requests |
| for information. | (a) If pursuant to its franchise agreement with a community | antenna television system (CATV) operator, a municipality | imposes a franchise fee authorized by 47 U.S.C. 542, then the | municipality may conduct an audit of that CATV operator's | franchise fees derived from the provision of cable and video | services to subscribers within the franchise area to determine | whether the amount of franchise fees paid by that CATV operator | to the municipality was accurate. Any audit conducted under | this subsection (a) shall determine any overpayment or | underpayment to the municipality by the CATV operator, and the | amount due to the municipality or CATV operator is limited to | the net difference. | (b) Not more than once every 2 years, a municipality that | has imposed a franchise fee authorized by 47 U.S.C. 542 may, | subject to the limitations and protections stated in the Local | Government Taxpayers' Bill of Rights Act, request information | from the CATV operator in the format maintained by the CATV | operator in the ordinary course of its business that the | municipality reasonably requires in order to perform an audit | under subsection (a). The information that may be requested by | the municipality includes without limitation the following: | (1) in an electronic format used by the CATV operator | in the ordinary course of its business, the database used | by the CATV operator to determine the amount of the | franchise fee due to the municipality; and |
| (2) in a format used by the CATV operator in the | ordinary course of its business, summary data, as needed by | the municipality, to determine the CATV operator's | franchise fees derived from the provision of cable and | video services to subscribers within the CATV operator's | franchise area. | (c) The CATV operator must provide the information | requested under subsection (b) within: | (1) 60 days after the receipt of the request if the | population of the requesting municipality is 500,000 or | less; or | (2) 90 days after the receipt of the request if the | population of the requesting municipality exceeds 500,000. | The time in which a CATV operator must provide the | information requested under subsection (b) may be extended by | an agreement between the municipality and the CATV operator. | (d) If an audit by the municipality or its agents finds an | error by the CATV operator in the amount of the franchise fees | paid by the CATV operator to the municipality, then the | municipality may notify the CATV operator of the error. Any | such notice must be given to the CATV operator by the | municipality within 90 days after the municipality discovers | the error, and no later than 4 years after the date the | franchise fee was due. Upon such a notice, the CATV operator | must submit a written response within 60 days after receipt of | the notice stating that the CATV operator has corrected the |
| error on a prospective basis or stating the reason that the | error is inapplicable or inaccurate. The municipality then has | 60 days after the receipt of the CATV operator's response to | review and contest the conclusion of the CATV operator. No | legal proceeding to collect a deficiency based upon an alleged | error shall be commenced unless within 180 days after the | municipality's notification of the error to the CATV operator | the parties are unable to agree on the disposition of the audit | findings. | (e) No CATV operator is liable for any error in past | franchise fee payments that was unknown by the CATV operator | prior to the audit process unless (i) the error was due to | negligence on the part of the CATV operator in the collection | or processing of required data and (ii) the municipality had | not failed to respond in writing in a timely manner to any | written request of the CATV operator to review and correct | information used by the CATV operator to calculate the | appropriate franchise fees if a diligent review of such | information by the municipality reasonably could have been | expected to discover such error. | (f) All account specific information provided by a CATV | operator under this Section may be used only for the purpose of | an audit conducted under this Section and the enforcement of | any franchise fee delinquent claim. All such information must | be held in strict confidence by the municipality and its agents | and may not be disclosed to the public under the Freedom of |
| Information Act or under any other similar statutes allowing | for or requiring public disclosure. | (g) For the purposes of this Section, "CATV operator" means | a person or entity that provides cable and video services under | a franchise agreement with a municipality pursuant to Section | 11-42-11 of the Municipal Code and a holder authorized under | Section 21-401 of the Cable and Video Competition Law of 2007 | as consistent with Section 21-901 of that Law. | (h) This Section does not apply to any action that was | commenced, to any complaint that was filed, or to any audit | that was commenced before the effective date of this amendatory | Act of the 96th General Assembly. This Section also does not | apply to any franchise agreement that was entered into before | the effective date of this amendatory Act of the 96th General | Assembly unless the franchise agreement contains audit | provisions but no specifics regarding audit procedures. | (i) The provisions of this Section shall not be construed | as diminishing or replacing any civil remedy available to a | municipality, taxpayer, or tax collector. | (j) If a contingent fee is paid to an auditor, then the | payment must be based upon the net difference of the complete | audit. | (k) Within 90 days after the effective date of this | amendatory Act of the 96th General Assembly, a municipality | shall provide to any CATV operator a complete list of addresses | within the corporate limits of the municipality and shall |
| annually update the list. | (l) This Section is a denial and limitation of home rule | powers and functions under subsection (h) of Section 6 of | Article VII of the Illinois Constitution. | (m) This Section does not apply to any municipality having | a population of more than 1,000,000.
| Section 99. Effective date. This Act takes effect upon | becoming law.
|
Effective Date: 8/3/2010
|
|
|