State of Illinois
91st General Assembly
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Public Act 91-0636

HB0287 Enrolled                                LRB9101576JSpc

    AN ACT to amend the  Public  Utilities  Act  by  changing
Section 13-301.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section  5.  The  Public  Utilities  Act  is  amended  by
changing Section 13-301 as follows:

    (220 ILCS 5/13-301) (from Ch. 111 2/3, par. 13-301)
    (Section scheduled to be repealed on July 1, 2001)
    Sec. 13-301.  Consistent with  the  findings  and  policy
established  in paragraph (a) of Section 13-102 and paragraph
(a) of Section 13-103, and in order to ensure the  attainment
of such policies, the Commission shall:
    (a)  participate  in  all  federal  programs  intended to
preserve  or  extend  universal  telecommunications  service,
unless such programs would place  cost  burdens  on  Illinois
customers  of  telecommunications  services  in excess of the
benefits they would receive through participation,  provided,
however,  the  Commission  shall  not  approve  or permit the
imposition  of  any  surcharge  or  other  fee  designed   to
subsidize  or  provide  a waiver for subscriber line charges;
and shall report on such programs together with an assessment
of their  adequacy  and  the  advisability  of  participating
therein in its annual report to the General Assembly, or more
often as necessary;
    (b)  establish   a   program  to  monitor  the  level  of
telecommunications subscriber connection within each exchange
in Illinois, and shall report the results of such  monitoring
and  any  actions  it  has  taken  or  recommends be taken to
maintain and increase such levels in its annual report to the
General Assembly, or more often if necessary;
    (c)  order all telecommunications  carriers  offering  or
providing   local   exchange  telecommunications  service  to
propose low-cost or budget service tariffs and any other rate
design or pricing mechanisms designed to facilitate  customer
access  to  such  telecommunications service, and shall after
notice and hearing, implement any  such  proposals  which  it
finds likely to achieve such purpose;
    (d)  investigate  the  necessity  of and, if appropriate,
establish feasibility of  establishing  a  universal  service
support  fund  from  which  local exchange telecommunications
carriers who pursuant to the Twenty-Seventh Interim Order  of
the  Commission  in  Docket  No. 83-0142 or the orders of the
Commission in Docket  No.  97-0621  and  Docket  No.  98-0679
received  funding  and  offering  or providing local exchange
telecommunications service, whose economic costs of providing
services for which universal  service  support  may  be  made
available such service exceed the affordable rate established
by  the  Commission  for  such  services  may  be eligible to
average cost of providing such  service  in  Illinois,  could
receive  support,  less any federal universal service support
received for the same  or  similar  costs  of  providing  the
supported  services;  provided,  however, that if a universal
service support fund is  established,  the  Commission  shall
require  that  all  costs  of  the fund be recovered from all
local exchange and interexchange telecommunications  carriers
certificated  in  Illinois  on  a  competitively  neutral and
nondiscriminatory basis.  In establishing any such  universal
service  support  fund,  the Commission shall, in addition to
the determination of costs for supported  services,  consider
and make findings pursuant to paragraphs (1), (2), and (4) of
item  (e)  of this Section.  Proxy cost, as determined by the
Commission, may be used for  this  purpose.   In  determining
cost  recovery  for  any  universal service support fund, the
Commission shall not  permit  recovery  of  such  costs  from
another  certificated  carrier  for any service purchased and
used solely as  an  input  to  a  service  provided  to  such
certificated  carrier's retail customers revenues intended to
mitigate the price impact on  customers  resulting  from  the
high  or  rising  cost of such service; and shall include the
results and findings of such investigation together with  any
recommendations  for  legislative  action in its first annual
report to the General Assembly in 1986; and
    (e)  investigate the necessity of  and,  if  appropriate,
establish a universal service support fund in addition to any
fund  that  may  be  established pursuant to item (d) of this
Section; provided,  however,  that  if  a  telecommunications
carrier  receives  universal service support pursuant to item
(d) of this Section, that  telecommunications  carrier  shall
not receive universal service support pursuant to this item.
Recipients  of  any universal service support funding created
by this item shall be "eligible" telecommunications carriers,
as designated by the Commission in accordance with 47  U.S.C.
214(e)(2).   Eligible  telecommunications  carriers providing
local exchange telecommunications service may be eligible  to
receive support for such services, less any federal universal
service  support  received  for  the same or similar costs of
providing the supported services. If a fund  is  established,
the  Commission  shall require that the costs of such fund be
recovered from  all  telecommunications  carriers,  with  the
exception  of  wireless carriers who are providers of two-way
cellular telecommunications service and  who  have  not  been
designated  as  eligible  telecommunications  carriers,  on a
competitively neutral and non-discriminatory basis.   In  any
order  creating a fund pursuant to this item, the Commission,
after notice and hearing, shall:
         (1)  Define the group of  services  to  be  declared
    "supported  telecommunications  services" that constitute
    "universal service".  This group of services shall, at  a
    minimum, include those services as defined by the Federal
    Communications  Commission  and  as  from  time  to  time
    amended.   In addition, the Commission shall consider the
    range of services currently offered by telecommunications
    carriers  offering  local   exchange   telecommunications
    service,  the  existing rate structures for the supported
    telecommunications services, and  the  telecommunications
    needs  of Illinois consumers in determining the supported
    telecommunications services.  The Commission shall,  from
    time to time or upon request, review and, if appropriate,
    revise the group of Illinois supported telecommunications
    services  and the terms of the fund to reflect changes or
    enhancements in telecommunications  needs,  technologies,
    and available services.
         (2)  Identify  all  implicit  subsidies contained in
    rates or charges of incumbent  local  exchange  carriers,
    including  all subsidies in interexchange access charges,
    and determine how such subsidies can be made explicit  by
    the creation of the fund.
         (3)  Identify the incumbent local exchange carriers'
    economic     costs    of    providing    the    supported
    telecommunications services.
         (4)  Establish an affordable price for the supported
    telecommunications services for the respective  incumbent
    local exchange carrier.  The affordable price shall be no
    less  than the rates in effect at the time the Commission
    creates a fund pursuant to this item.  The Commission may
    establish and utilize indices or models for updating  the
    affordable   price   for   supported   telecommunications
    services.
         (5)  Identify  the  telecommunications carriers from
    whom the costs of the fund shall  be  recovered  and  the
    mechanism  to  be  used  to  determine  and  establish  a
    competitively   neutral  and  non-discriminatory  funding
    basis.   From  time  to  time,  or  upon   request,   the
    Commission  shall consider whether, based upon changes in
    technology     or     other      factors,      additional
    telecommunications  providers  should  contribute  to the
    fund.  The Commission  shall  establish  the  basis  upon
    which  telecommunications  carriers  contributing  to the
    fund  shall  recover  contributions  on  a  competitively
    neutral and non-discriminatory  basis.    In  determining
    cost   recovery  for  any  universal  support  fund,  the
    Commission shall not permit recovery of such  costs  from
    another  certificated  carrier  for any service purchased
    and used solely as an input to a service provided to such
    certificated carriers' retail customers.
         (6)  Approve  a  plan  for  the  administration  and
    operation of the fund by a neutral third party consistent
    with the requirements of this item.
    No fund shall be created  pursuant  to  this  item  until
existing  implicit  subsidies, including, but not limited to,
those subsidies contained in  interexchange  access  charges,
have  been  identified  and  eliminated  through revisions to
rates or charges. Prior to May 1,  2000,  such  revisions  to
rates  or charges to eliminate implicit subsidies shall occur
contemporaneously with any funding  established  pursuant  to
this  item.   However, if the Commission does not establish a
universal service support fund by May 1, 2000, the Commission
shall not be prevented from entering an order or taking other
actions to reduce or eliminate existing subsidies as well  as
considering  the  effect  of such reduction or elimination on
local exchange carriers.
    (e)  Any  telecommunications  carrier   providing   local
exchange telecommunications service which offers to its local
exchange  customers  a  choice  of two or more local exchange
telecommunications service offerings shall  provide,  to  any
such  customer  requesting  it, once a year without charge, a
report describing  which  local  exchange  telecommunications
service  offering  would  result  in the lowest bill for such
customer's local exchange service, based on  such  customer's
calling  pattern  and  usage  for  the previous 6 months.  At
least once a year, each such carrier shall provide  a  notice
to  each  of  its  local  exchange telecommunications service
customers describing the availability of this report and  the
specific  procedures by which customers may receive it.  Such
report  shall  only  be  available  to  current  and   future
customers  who  have received at least 6 months of continuous
local exchange service from such carrier.
(Source: P.A. 87-445.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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