093_HB0466 LRB093 06383 JLS 06502 b 1 AN ACT concerning telecommunications. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by adding 5 Section 5.595 as follows: 6 (30 ILCS 105/5.595 new) 7 Sec. 5.595. The Universal Service Fund. 8 Section 10. The Public Utilities Act is amended by 9 adding Article XIIIE as follows: 10 (220 ILCS 5/Art. XIIIE heading, new) 11 ARTICLE XIIIE. UNIVERSAL SERVICE SUPPORT FUNDING 12 AND PROGRAMS 13 (220 ILCS 5/13E-101 new) 14 Sec. 13E-101. Scope and purpose. 15 (a) This Article is designed to authorize the Commission 16 to establish a Universal Service Fund and programs to further 17 the goal of providing a basic set of essential 18 telecommunications services and access to advanced service 19 capabilities to all customers of the State. 20 (b) The requirements of this Article shall be observed 21 by the telecommunications providers subject to the 22 jurisdiction of the Commission as indicated in this Article, 23 except insofar as any exemption may be made by the 24 Commission. Except as otherwise expressly provided by law, 25 the requirements of this Article apply to telecommunications 26 providers. 27 (c) Nothing in this Article shall preclude special and 28 individual consideration being given to exceptional or -2- LRB093 06383 JLS 06502 b 1 unusual situations and upon due investigation of the facts 2 and circumstances involved, the adoption of requirements as 3 to individual providers or services that may be lesser, 4 greater, other or different than those provided in this 5 Article. 6 (d) Disputes not resolved between the affected parties 7 regarding assessment or support amounts or the eligibility to 8 receive or the liability to pay under this Article shall be 9 referred to the Commission for resolution. 10 (e) This Article shall be enforced under the provisions 11 of Article X and such other means as provided in this Act. 12 (f) The Commission may issue orders it deems necessary 13 to assist in the implementation or interpretation of this 14 Article. 15 (220 ILCS 5/13E-105 new) 16 Sec. 13E-105. Definitions. The definitions in Article 17 XIII apply in this Article. In addition, in this Article: 18 "Calculated charge" means the charge calculated by 19 converting a per call charge into a per minute charge. The 20 conversion to a per minute charge shall be accomplished by 21 dividing the per call charge by the telecommunications 22 provider's average residential call duration. If there are 23 multiple per call charges within one local calling area, the 24 weighted average shall be used as the per call charge. 25 "Contributory provider" means a telecommunications 26 provider that pays moneys to the Universal Service Fund. 27 "Disability" means a physical or sensory impairment that 28 limits or curtails an individual's access to or usage of 29 telecommunications services. "Disability" includes a speech, 30 vision or hearing impairment and motion impairments that 31 limit an individual's ability to handle telecommunications 32 equipment. 33 "Emergency service numbers" mean 9-1-1 where available -3- LRB093 06383 JLS 06502 b 1 and fire, emergency medical services, law enforcement, and 2 poison center emergency numbers where 9-1-1 is not available. 3 "Federal high cost program" means any program established 4 by the federal Communications Commission under 47 CFR 54 5 subpart D. 6 "Institutions" means: 7 (1) not-for-profit schools, which includes each 8 school in a public school district, private schools, 9 charter schools, colleges and universities, and public 10 community college districts; 11 (2) public libraries; and 12 (3) not-for-profit hospitals. 13 "Lifeline" means the program that provides reduced 14 monthly service rates for low-income customers. 15 "Link-Up" means the program that waives service 16 connection charges for low-income customers. 17 "Local exchange service provider" means any commercial 18 mobile radio service provider that has been designated as an 19 eligible telecommunications carrier under Section 13E-215 or 20 a telecommunications carrier or any other provider of basic 21 local exchange service or standard business lines and usage. 22 "Low-income" means a household that receives benefits 23 from one or more of the following programs: 24 (1) Article IV of the Illinois Public Aid Code; 25 (2) medical assistance under 42 USC 1395; 26 (3) supplemental security income under 42 USC 1381 27 to 1385c; 28 (4) food stamps under 7 USC 2011 to 2029; 29 (5) the energy assistance program under the Energy 30 Assistance Act of 1989; or 31 (6) any other State or federally administered 32 programs, approved by the Commission, for households with 33 income levels equal to or less than 200% of the poverty 34 line as defined in 42 USC 9902 (2). -4- LRB093 06383 JLS 06502 b 1 "Non-profit group" means an organization described in 2 Section 501 (c) (3) of the Internal Revenue Code that is 3 exempt from federal income tax under Section 501 (a) of the 4 Internal Revenue Code. 5 "Nonrecurring charge" means the charge for those 6 activities and materials necessary to connect network 7 services to the customer's premises, up to and including the 8 network interface device but not including customer premises 9 wiring or customer premises equipment, and not including 10 construction charges. 11 "Rural telephone company" has the meaning given in 47 USC 12 153 (37). 13 "Two-line voice carryover" means the technique of using 14 3-way calling and 2 telephone lines, one for voice and one 15 for TTY or similar equipment, to connect a caller who is deaf 16 or hard of hearing but can speak, with another caller via the 17 telecommunications relay service. 18 "Universal service" means a statewide rapid, efficient, 19 communications network with adequate, economically placed 20 facilities to assure that a basic set of essential 21 telecommunications services is available to all persons in 22 this State at affordable prices and that the advanced service 23 capabilities of a modern telecommunications infrastructure 24 are affordable and accessible to all areas of the State 25 within a reasonable time. 26 (220 ILCS 5/13E-110 new) 27 Sec. 13E-110. Essential telecommunications services. 28 (a) A local exchange service provider shall make 29 available to all its customers at affordable prices all 30 essential telecommunications services. 31 (b) "Essential telecommunications services" means all 32 the following: 33 (1) Single-party voice-grade service with: -5- LRB093 06383 JLS 06502 b 1 (A) line quality capable of facsimile 2 transmission; 3 (B) line quality capable of data transmission 4 as specified in Section 13E-115; 5 (C) dual-tone multi-frequency touch tone and 6 rotary pulse dialing operability; 7 (D) access to emergency services numbers and 8 9-1-1 operability where requested by local 9 authorities; 10 (E) equal access to interlata interexchange 11 carriers subject to federal Communications 12 Commission orders and rules; 13 (F) equal access to intralata interexchange 14 carriers pursuant to schedules, terms, and 15 conditions imposed by Commission orders and rules; 16 (G) single party revertive calling, if 2 or 17 more pieces of customer premises equipment can be 18 simultaneously active on the line or channel being 19 used by the customer; 20 (H) a reasonably adequate number of calls 21 within a reasonably adequate local calling area as 22 defined by the Commission; 23 (I) connectivity with all public toll, local, 24 wireline, and wireless networks, and with various 25 internet service providers; 26 (J) telecommunications relay service to 27 facilitate communication between teletypewriter 28 users and non-teletypewriter users; 29 (K) access to operator service; 30 (L) access to directory assistance; 31 (M) toll blocking, 900 and 976 number 32 blocking, and extended community calling blocking 33 options as specified in Section 13E-125; 34 (N) intercept and announcements for vacant, -6- LRB093 06383 JLS 06502 b 1 changed, suspended and disconnected numbers in oral 2 and TTY-readable formats; and 3 (O) a directory listing with the option for 4 non-listed and non-published service. 5 (2) Annual distribution of a local telephone 6 directory. 7 (3) Timely repair. 8 (220 ILCS 5/13E-115 new) 9 Sec. 13E-115. Essential data transmission capability. 10 (a) The data transmission capability that is specified 11 in Section 13E-110 shall be at least 9600 bits per second. 12 (b) For lines extending greater than 10,000 feet from 13 the central office, this data transmission capability 14 requirement shall be met under an implementation schedule to 15 be set by the Commission. 16 (220 ILCS 5/13E-120 new) 17 Sec. 13E-120. Advanced service capabilities. 18 (a) "Advanced service capabilities" means all the 19 following: 20 (1) Digital access lines and channels by January 1, 21 2005. 22 (2) High-speed data transfer connectivity by 23 January 1, 2006. 24 (3) Two-way interactive video conferencing at a 25 speed no less than 30 frames per second and two-way 26 interactive imaging capabilities by January 1, 2007. 27 (b) In the absence of alternative providers and in the 28 presence of sufficient demand, or to promote economic 29 development and infrastructure development, a local exchange 30 service provider shall, by the date set by the Commission, 31 make available to any customer on request, in a timely 32 manner, at affordable prices, any advanced service -7- LRB093 06383 JLS 06502 b 1 capabilities. 2 (c) Upon its own motion, upon petition by a local 3 exchange service provider for relief from an obligation in 4 subsection (b), or upon petition by a customer alleging that 5 an advanced service is not available in a timely manner, is 6 needed but not scheduled for deployment under this Section, 7 or is not priced at an affordable level, the Commission may 8 investigate the offering of a given advanced service 9 capability. 10 The investigation shall address, but is not limited to, 11 the reasonableness of the required investment in equipment 12 and facilities, the presence of alternative providers, level 13 of demand, and other statutory factors. Following 14 investigation, including notice and opportunity for hearing, 15 the Commission may determine, based on the above criteria, a 16 deployment schedule, a maximum reasonable rate, whether the 17 provider requires assistance from the Universal Service Fund 18 to provide the service, and any other requirement necessary 19 to meet customer demand for an advanced service capability. 20 (220 ILCS 5/13E-125 new) 21 Sec. 13E-125. Toll blocking. 22 (a) A local exchange service provider in the State shall 23 offer the capability to block all long distance calls and, 24 separately, the capability to block 900 and 976 number calls 25 and the capability to block extended community calling unless 26 a timely waiver has been granted to the local exchange 27 service provider by the Commission. 28 (b) Blocking shall be without monthly or nonrecurring 29 charge to low-income customers and at no charge other than 30 for second and subsequent service activation orders for other 31 residential and standard business line customers. 32 (c) Blocking shall not prevent the customer from 33 reaching the emergency service numbers appropriate for the -8- LRB093 06383 JLS 06502 b 1 customer's location. 2 (d) A local exchange service provider shall make all 3 reasonable efforts to inform customers within its service 4 areas of the availability of, and eligibility requirements 5 for cost-free toll blocking services, 900 and 976 number 6 blocking services and extended community calling blocking 7 services. The local exchange service provider shall also 8 make reasonable efforts to instruct eligible customers 9 requesting the service in use of the equipment or service. 10 (e) A local exchange service provider seeking a waiver 11 of its blocking obligations under this Section shall submit 12 to the Commission the following information: 13 (1) the provider's name and address; 14 (2) an explanation of why a waiver is being 15 requested and of why the provider considers 16 implementation of blocking to be an unreasonable expense 17 for the provider and its customers; 18 (3) costs of hardware, software, programming, 19 customer education, installation, maintenance and any 20 other costs, on a per-customer basis, for blocking 21 capability using customer premises equipment; 22 (4) costs of hardware, software, programming, 23 customer education, installation, maintenance, and any 24 other costs, on a per customer basis, for blocking 25 equipment installed in a central office, providing a 26 separate calculation for each exchange for which an 27 exemption is requested; and 28 (5) an estimate of the number of customers, by 29 exchange, expected to request the service. 30 (f) The Commission staff shall review the waiver request 31 and issue a letter to the provider granting or denying the 32 application. 33 (220 ILCS 5/13E-130 new) -9- LRB093 06383 JLS 06502 b 1 Sec. 13E-130. Universal Service Fund; programs. 2 (a) There is created in the State treasury a special 3 fund to be known as the Universal Service Fund. Moneys in 4 that Fund may be used for Fund administration and for the 5 purpose of informing the public regarding the Universal 6 Service Fund, its existence, purpose, intent and areas of 7 use. 8 (b) Moneys in the Fund may be used for any of the 9 following programs as adopted by the Commission and pursuant 10 to appropriation: 11 (1) Link-Up America, as specified in Section 12 13E-140. 13 (2) Lifeline assistance, as specified in Section 14 13E-145. 15 (3) Voice-mail service for the homeless, as 16 specified in subsection (a) of Section 13E-210. 17 (4) Telecommunications equipment purchase program 18 (TEPP) vouchers, as specified in Section 13E-160. 19 (5) Telecommunications customer assistance program, 20 as specified in Section 13E-175. 21 (6) High rate assistance credits, as specified in 22 Section 13E-180. 23 (7) Alternative universal service protection plans, 24 as specified in Section 13E-190. 25 (8) Rate shock mitigation, as specified in Section 26 13E-195. 27 (9) Assistance to institutions, as specified in 28 Section 13E-200. 29 (9) Intralata toll service provider of last resort, 30 as specified in Section 13E-220. 31 (10) Funding for programs or projects approved 32 under subsection (b) of Section 13E-210. 33 (11) Public interest pay telephones, as specified 34 in Section 13E-165. -10- LRB093 06383 JLS 06502 b 1 (12) Outreach for low-income assistance programs, 2 as specified in Section 13E-150. 3 (13) Eligible telecommunications carriers 4 designated under item (3) of subsection (e) of Section 5 13E-215. 6 (14) Advanced service capabilities, as specified in 7 Section 13E-120. 8 (15) Second line for 2-line voice carryover, as 9 specified in Section 13E-160. 10 (16) Medical telecommunications equipment programs. 11 (17) Other programs consistent with the purposes of 12 this Article, as they are approved by the Commission on 13 an interim basis. 14 (c) Moneys in the Fund may be used to provide statewide 15 access, through the Internet, to periodical reference 16 information databases. 17 (d) Moneys in the Fund may be used to pay for 18 telecommunications services provided to State-supported 19 colleges and universities and to public community colleges. 20 (e) Moneys in the Fund may be used to make grants to 21 school districts for technology for educational purposes. 22 (220 ILCS 5/13E-135 new) 23 Sec. 13E-135. Eligibility for low-income programs. 24 (a) Local exchange service providers shall verify an 25 applicant's eligibility for low-income assistance programs by 26 making timely queries of the applicable databases of the 27 Department of Public Aid or other State agencies. Applicant 28 eligibility shall be verified by finding the applicant to be 29 any of the following: 30 (1) An active client of at least one of the 31 low-income programs, as defined in Section 13E-105. 32 (2) A member of the active client's household whose 33 low income qualifies the client for benefits under at -11- LRB093 06383 JLS 06502 b 1 least one of the low-income programs, as defined in 2 13E-105. 3 (b) Eligibility shall be reconfirmed on at least an 4 annual basis for all customers receiving lifeline assistance. 5 (c) Local exchange service providers shall inquire of 6 the customer regarding eligibility of that customer for 7 low-income programs on each order for initial or moved 8 residential service and, orally or in writing, in the first 9 contact with a customer during a year concerning 10 disconnection or payment arrangements. 11 (d) Local exchange service providers shall comply with 12 client authorization requirements of the Department of Public 13 Aid or other State agencies for database queries necessary 14 for eligibility verification. Customers shall complete and 15 remit any reasonably required query authorization forms or 16 forfeit eligibility. 17 (e) Lifeline and Link-Up programs are not available to 18 customers who are dependents for federal income tax purposes 19 as defined in 26 USC 152 (1986), unless the customer is more 20 than 60 years of age. 21 (220 ILCS 5/13E-140 new) 22 Sec. 13E-140. Link-Up America program. 23 (a) A local exchange service provider shall waive all 24 applicable nonrecurring charges when initiating or moving 25 essential telecommunications services, as defined in Section 26 13E-110, for low-income, single line customers. All federal, 27 State, county and local taxes applicable to the waived 28 charges shall also be waived. 29 (b) Waivers apply for new service installations, for 30 moves from one residence to another, and for reconnection of 31 an existing service. 32 (c) Charges to be waived include the following, or their 33 equivalent: -12- LRB093 06383 JLS 06502 b 1 (1) service ordering; 2 (2) record change; 3 (3) central office connection; 4 (4) outside plant or line connection; and 5 (5) premises visit. 6 (d) Customers whose claim of eligibility for link-up 7 benefits cannot be verified at the time the service order is 8 issued may be billed for installation charges. These 9 customers shall receive a grace period for payment of 10 installation charges until the due date of the second bill 11 issued following installation of service. 12 The local exchange service provider shall periodically 13 perform an eligibility verification check during the 60-day 14 period from the date service is connected. If the customer's 15 eligibility cannot be confirmed within 45 days, the customer 16 shall be notified in writing of the situation. A credit 17 shall be issued for appropriate charges once eligibility has 18 been confirmed. 19 (e) Customers who have paid installation charges may 20 receive the link-up waiver as a credit on their bills, 21 providing that claim is made with the local exchange service 22 provider within 60 days following completion of the service 23 order and that all other link-up eligibility requirements are 24 met. 25 (f) Local exchange service providers that are eligible 26 telecommunications carriers under Section 13E-215 may receive 27 reimbursement from the Universal Service Fund for 50% of the 28 waived nonrecurring charges. Local exchange service providers 29 that are not eligible telecommunications carriers may receive 30 reimbursement from the Universal Service Fund for 100% of the 31 waived nonrecurring charges. 32 (220 ILCS 5/13E-145 new) 33 Sec. 13E-145. Lifeline program. -13- LRB093 06383 JLS 06502 b 1 (a) A local exchange service provider shall offer a 2 lifeline monthly rate to all qualified low-income customers. 3 (b) The lifeline monthly rate includes: 4 (1) single-party residential service; 5 (2) touch-tone service; 6 (3) any 9-1-1 charges billed on the telephone bill; 7 (4) the federal subscriber line charge; and 8 (5) 120 local calls, excluding extended community 9 calling calls. 10 The lifeline monthly rate shall be the total of the 11 residential monthly rates for the services listed in items 12 (1) through (5) minus $7 or, if the total of the monthly 13 residential rates for the services listed in items (1) 14 through (5) is greater than $22, the lifeline monthly rate 15 shall be $15. In no case, however, shall the lifeline monthly 16 rate be less than $3 or more than $15. 17 (c) The lifeline monthly rate may appear as a credit 18 against the full standard tariffed rate on a customer's bill 19 or as a special rate designation. Whenever possible, the 20 lifeline rate shall begin to appear on an eligible customer's 21 bill on the next bill date following the date of application 22 for lifeline assistance. If the rate does not begin to 23 appear on the next bill date, when it does appear back credit 24 must be given. In cases where a customer's eligibility date 25 as found in the records of the Department of Public Aid or 26 other State agencies precedes the last bill date prior to 27 application, credit shall also be given for one month's prior 28 bill. 29 (d) Eligibility for lifeline assistance continues until 30 the next bill date following a failure to meet eligibility 31 requirements. 32 When the low-income energy assistance program is one of 33 the customer's qualifying income assistance programs, the 34 eligibility for lifeline assistance shall continue until the -14- LRB093 06383 JLS 06502 b 1 bill date in the next December following the close of the 2 heating season. At that time, lack of eligibility shall be 3 re-verified by the local exchange service provider before 4 removing the lifeline assistance from the customer's bill. 5 (e) Local exchange service providers may receive 6 reimbursement from the Universal Service Fund for 100% of 7 that portion of the standard authorized rate for service that 8 is in excess of the amount of the lifeline monthly rate that 9 is eligible for reimbursement from federal lifeline program 10 funds. 11 (f) Customers eligible for lifeline or link-up America 12 assistance may not be charged a deposit for service if they 13 voluntarily accept toll blocking, may not be requested to pay 14 in advance for more than one month's local service bill, and 15 may not be disconnected from local service for nonpayment of 16 toll charges billed by the local exchange service provider. 17 Customers that otherwise would be subject to disconnection 18 may be counseled to accept toll blocking. 19 (g) A local exchange service provider acting under the 20 limited conditions specified in its Commission-approved 21 telecommunications customer assistance program under Section 22 13E-175 may impose toll blocking or restriction on lifeline 23 customers. 24 (220 ILCS 5/13E-150 new) 25 Sec. 13E-150. Outreach for low-income assistance 26 programs. 27 (a) Funding shall be available to fund collaborative 28 partnerships between community-based organizations and 29 telecommunications providers to increase participation of the 30 eligible populations in the Universal Service Fund low-income 31 support programs. 32 (b) Funding from the Universal Service Fund for these 33 collaborative efforts shall not exceed $250,000 in one year. -15- LRB093 06383 JLS 06502 b 1 (c) The Commission shall annually review and grant 2 funding based on complete responses to a request for 3 proposals. Funding shall be limited to not more than 6 4 projects with at least one project focused statewide and one 5 project focused on the Chicago area, if feasible. 6 (d) The Commission shall contract for an evaluation of 7 the effectiveness of this program in promoting enrollment in 8 low-income programs and subscribership to telephone service 9 to be completed within 2 years after May 1, 2006. The cost 10 of this evaluation shall not exceed $25,000. This $25,000 11 shall be included as part of the $250,000 maximum total 12 funding available under this Section during the year in which 13 the evaluation occurs. 14 (220 ILCS 5/13E-155 new) 15 Sec. 13E-155. Special needs certification. 16 (a) A person with a disability may determine whether 17 that disability presents a barrier to use of 18 telecommunications services. That person shall determine what 19 accommodations are needed to ensure effective 20 telecommunications access. 21 (b) When a local exchange service provider or the Fund 22 administrator has sound reason to question the 23 self-certification of a customer under subsection (a), 24 additional verification of disability, such as an appropriate 25 doctor's written medical diagnosis and description of 26 physical limitations and special needs resulting from that 27 diagnosis, may be required for certification of special 28 telecommunications needs. 29 (220 ILCS 5/13E-160 new) 30 Sec. 13E-160. Service and equipment pricing for 31 individuals with special needs. 32 (a) Vouchers shall be available to assist customers with -16- LRB093 06383 JLS 06502 b 1 a disability who have special needs certification in the 2 purchase of equipment needed to personally access and use 3 essential services of the telecommunications network. 4 Vouchers may not be used to purchase equipment that will be 5 used exclusively for commercial purposes. 6 (b) Vouchers shall be limited to the following amounts 7 by category of disability: 8 (1) $200 for hard of hearing. 9 (2) $800 for deaf and severely hard of hearing. 10 (3) $1,600 for speech impaired. 11 (4) $1,600 for mobility impaired. 12 (5) $2,500 for deaf-low vision. 13 (6) $7,200 for deaf-blind. 14 (c) A voucher recipient under item (1) of subsection (a) 15 is not required to make a co-payment. All other voucher 16 recipients are required to make a co-payment of $100 at the 17 time the equipment is purchased. Pursuant to subsection (f), 18 for low income customers the co-payment may be supplied by 19 funding through the telecommunications assistance program 20 (TAP). 21 (d) The Commission shall annually establish a budget for 22 the total voucher program. 23 (e) Customers with disabilities may obtain voucher 24 application forms from the Fund administrator, their local 25 exchange service provider, or other sources. Completed 26 voucher application forms shall be submitted to the Universal 27 Service Fund administrator. 28 (f) Applicants for vouchers under this Section shall be 29 Illinois residents. An applicant may not receive a voucher 30 for equipment for the same disability more than once every 3 31 years. An applicant may receive a voucher for equipment even 32 if another person in the same household has also received a 33 voucher. 34 (g) Applications shall be granted on a first-come, -17- LRB093 06383 JLS 06502 b 1 first-served basis, except no single disability 2 classification described in subsection (b) may be issued 3 vouchers totalling more than 75% of the total annual budget 4 within the first 3 quarters of the budget year. 5 (h) A waiting list shall be established for applications 6 held pending available funding or pursuant to subsection (g). 7 (i) The Commission may establish new disability 8 categories and voucher maximums if a need is identified. 9 (j) Vendors may redeem vouchers, submitted with an 10 invoice, from the Universal Service Fund administrator. 11 Reimbursement may not exceed the total purchase price of the 12 equipment with tax less, where applicable, a customer 13 co-payment of $100. 14 (k) The Commission may impose reasonable limits on the 15 types and quantities of devices that may be purchased with 16 one voucher. 17 (l) The Fund administrator shall maintain lists of the 18 types and quantities of equipment eligible for purchase with 19 a single voucher in each category under subsection (b). 20 Revisions to the list shall be done periodically by the Fund 21 administrator in consultation with the Commission staff and 22 representatives selected by the Universal Service Fund 23 Council. Input regarding revisions may be solicited from 24 vendors, representatives of interested groups serving the 25 disabled and others, as appropriate. 26 (m) Equipment purchases involving individual exceptions 27 to the eligible equipment lists under subsection (l) may be 28 granted by the Fund administrator only following consultation 29 with Commission staff. Commission staff, the Fund 30 administrator, or both, may solicit input regarding such 31 exceptions from vendors, representatives of interested groups 32 serving the disabled and others, as appropriate. 33 (n) Objections to items included on or excluded from the 34 eligible equipment lists and determinations regarding -18- LRB093 06383 JLS 06502 b 1 individual exceptions shall be handled as informal 2 complaints. The Commission staff shall review the objection 3 and issue a letter addressing it. These decisions may be 4 appealed to the Commission. 5 (o) Customer premises equipment required to meet special 6 telecommunications needs of those with disabilities shall be 7 tariffed by the telecommunications carrier for monthly lease 8 at rates that recover, over a reasonable period of time, only 9 the carrier's direct costs for the customer premises 10 equipment, plus directly attributable overheads. No further 11 contribution to the carrier's earnings or general overhead 12 costs shall be included in calculating the rate. 13 (p) Certified hearing-impaired customers and certified 14 speech impaired customers who need to use a teletypewriter 15 for telephonic conversations shall receive discounted long 16 distance service. For these customers, all 17 telecommunications providers offering long distance services 18 shall, at a minimum, apply their evening or off-peak 19 discounts or rate schedules in the daytime or peak rate 20 period and their weekend or off-peak discounts or rate 21 schedules in all other rate periods. 22 (q) Customers with certified disabilities that prevent 23 them from using the telephone directory shall not be charged 24 for a reasonable number of directory assistance calls in a 25 month. 26 (r) Customers with certified disabilities that prevent 27 them from directly dialing or keying calls shall not be 28 charged for operator assistance to place calls. 29 (s) Customers with certified disabilities who deem one 30 or more custom calling services essential in order to receive 31 service that is useful and comparable to the essential 32 service provided to other customers shall receive those 33 services without charge. Hearing-impaired customers who are 34 able and choose to use 2-line voice carryover shall not be -19- LRB093 06383 JLS 06502 b 1 charged any intrastate nonrecurring charge or monthly rate 2 for the second line. The local exchange service provider 3 shall receive reimbursement from the Universal Service Fund 4 for the amount waived. 5 (220 ILCS 5/13E-165 new) 6 Sec. 13E-165. Public interest pay telephones. 7 (a) The Commission shall assure provision of a pay 8 telephone where it determines that the public health, safety, 9 and welfare is jeopardized without the telephone yet 10 insufficient demand, usage, or other public or private funds 11 are available to assure its installation and its continued 12 operation. Pay telephones so designated are considered 13 public interest pay telephones. 14 (b) A request for designation of a pay telephone as a 15 public interest pay telephone may be made by a pay telephone 16 service provider or any other person. The Commission staff 17 shall review the request and issue a letter to the requester 18 granting or denying the request. These decisions may be 19 appealed to the Commission. 20 (c) A public interest pay telephone: 21 (1) shall fulfill a public policy objective in 22 health, safety, or public welfare. For pay telephones in 23 certain locations, where the telephone does not otherwise 24 exceed the revenue limitations set forth in item (1) of 25 subsection (d), designation shall be presumed to fulfill 26 such a public policy objective. These locations are: 27 public schools (K-12), public libraries, town halls, 28 public parks, public pools, public museums, public boat 29 landings, and public waysides. 30 (2) may not be a pay telephone that is or will be 31 provided under a contract or agreement for multiple pay 32 telephones, or that should be included in such a contract 33 or agreement but is not. -20- LRB093 06383 JLS 06502 b 1 (3) may not be a pay telephone that would otherwise 2 exist as a result of the operation of the competitive 3 marketplace. 4 (d) While the determination of whether to designate a 5 pay telephone as a public interest pay telephone does not 6 depend on the presence or absence of any one or more of the 7 following items, all of these items shall be considered, in 8 addition to other considerations that may be relevant, in 9 determining whether to make such a designation. Items 10 favoring designation include: 11 (1) The average actual or projected monthly revenue 12 from the pay telephone is $90 or less, or $120 or less if 13 the pay telephone has a TTY device. 14 (2) The pay telephone is outside or otherwise 15 available to the public 24 hours per day. 16 (3) The pay telephone is physically and 17 geographically accessible to the general public during 18 the operating hours of any facility in which it is 19 located. 20 (4) There is no other pay telephone located within 21 500 feet. 22 (5) The pay telephone allows coin calls. 23 (6) The person on whose property the pay telephone 24 is located will receive neither revenues generated from 25 the telephone nor compensation from another source 26 related to the placement of the telephone. 27 (e) The pay telephone service provider shall be 28 reimbursed the costs and charges for equipment, provision of 29 basic service, maintenance, and servicing, and administrative 30 operations such as collection and accounting for a public 31 interest pay telephone. The State Universal Service Fund 32 shall only cover the costs and charges not covered by a 33 federal universal service program and revenues from the pay 34 telephone. -21- LRB093 06383 JLS 06502 b 1 (f) The public interest pay telephone designation of 2 each telephone so designated shall be reviewed by the 3 Commission annually in the quarter during which the 4 designation was originally granted. For purposes of this 5 review, the Commission may delegate initial screening or 6 review of the qualification of facilities carrying the public 7 interest pay telephone designation to a private organization 8 or organizations. 9 (g) A pay telephone provider that is providing a public 10 interest pay telephone shall meet all of the following 11 service quality related requirements as to that telephone: 12 (1) The telephone shall be in compliance with all 13 State and federal laws and regulations regarding the 14 provision of pay telephone service. 15 (2) The telephone shall be kept in good working 16 condition. Service and repairs shall be made within a 17 reasonable time period after receiving a request for 18 service. Preventive maintenance shall be performed on a 19 reasonable and routine basis. 20 (3) Monthly records for all repair service, 21 preventive maintenance, and coin collection shall be kept 22 for one year and shall be made available to the 23 Commission on request. 24 (220 ILCS 5/13E-170 new) 25 Sec. 13E-170. Responsibility for pay telephone 26 usability. 27 (a) In this Section, "pay telephone usability" means the 28 ability to use pay telephone equipment once it has been 29 accessed by an individual. 30 (b) Pay telephone usability standards include signage, 31 volume control, monitoring height, cord length, and text 32 telephones. 33 (c) All pay telephone service providers are responsible -22- LRB093 06383 JLS 06502 b 1 for compliance with all federal and State standards regarding 2 usability of their pay telephones by individuals with 3 disabilities. 4 (d) This Section does not create any new obligations for 5 pay telephone usability beyond those imposed under federal or 6 State laws or negate any obligation for pay telephone 7 usability of other parties under the law. 8 (e) Information on how to report non-compliance or any 9 other complaint under subsection (c) to the Commission must 10 be posted at or on each pay telephone unit or bank of units. 11 (220 ILCS 5/13E-175 new) 12 Sec. 13E-175. Telecommunications customer assistance 13 program. The Commission may authorize individual 14 telecommunications providers to establish telecommunications 15 customer assistance programs that meet authorized goals and 16 objectives for increasing or stabilizing subscription levels 17 for non- optional, essential telephone service within its 18 service territory or to address avoidance of disconnection or 19 limitation of service to low- income households with payment 20 problems. The programs may allow a provider to not make 21 available certain essential services, as defined in Section 22 13E-110, in order to preserve at least minimal telephone 23 service to certain low-income households with payment 24 problems. The Commission shall determine on a case-by-case 25 basis whether or not a telecommunications customer assistance 26 program may receive Universal Service Fund moneys. 27 (220 ILCS 5/13E-180 new) 28 Sec. 13E-180. High rate assistance credits. 29 (a) A local exchange service provider that is an 30 eligible telecommunications carrier under Section 13E-215 31 shall provide high rate assistance credits to residential 32 customers when the price of service exceeds levels set in -23- LRB093 06383 JLS 06502 b 1 this Section. 2 (b) Credits shall be applied to the price of service as 3 specified in subsection (c), except that if a local exchange 4 service provider charges a single rate covering basic local 5 exchange service and other telecommunications or related 6 services, the Commission may determine, by order and after 7 opportunity for hearing, the portion of such bundled rates to 8 which rate assistance credits apply. 9 (c) For purposes of calculating credits under this 10 Section, the price of service shall include the following: 11 (1) the fixed monthly charge for essential 12 telecommunications service, as defined in Section 13 13E-110; 14 (2) the federal communications Commission end user 15 common line charge; and 16 (3) usage charges as established by the Commission. 17 (d) Local exchange service providers shall issue high 18 rate assistance credits according to the following criteria: 19 (1) For the portion of the price of service below 20 1.5% of median household income, per month, for the area 21 in which the rate applies, no credits apply. 22 (2) For the portion of the price of service equal 23 to or above 1.5% but below 2% of median household income, 24 per month, for the area in which the rate applies, the 25 local exchange service provider shall issue a credit 26 equal to 50% of that amount. 27 (3) For the portion of the price of service equal 28 to or above 2% but below 2.5% of median household income, 29 per month, for the area in which the rate applies, the 30 local exchange service provider shall issue a credit 31 equal to 75% of that amount. 32 (4) For the portion of the price of service equal 33 to or above 2.5% but below 3% of median household 34 income, per month, for the area in which the rate -24- LRB093 06383 JLS 06502 b 1 applies, the local exchange service provider shall issue 2 a credit equal to 85% of that amount. 3 (5) For the portion of the price of service equal 4 to or above 3% of median household income, per month, for 5 the area in which the rate applies, the local exchange 6 service provider shall issue a credit equal to 95% of 7 that amount. 8 (6) When a rate applies in only one county, the 9 median household income, as published by the Department 10 of Commerce and Community Affairs, used to calculate the 11 credit shall be that of that county in which the rate 12 applies. When a rate applies in more than one county, 13 the median household income used to compute the credit 14 shall be the average of the median household incomes in 15 each county in which the rate applies, weighted by the 16 number of customers paying that rate in each county. 17 (7) If the amount of money required to reimburse 18 local exchange service providers for credits under this 19 Section exceeds the amount budgeted for this program 20 under Section 13E-235, the Commission may modify the 21 formula for high rate assistance credits. The 22 modification may be done by Commission order, after 23 notice and an opportunity for hearing. 24 (e) Except as provided in subsection (i), a local 25 exchange service provider shall be reimbursed by the 26 Universal Service Fund for the value of the credits it 27 issues, provided that it qualifies under Section 13E-185. 28 (f) When a local exchange service provider charges a 29 pro-rated portion of the normal monthly charge for service 30 because the customer has had service for only a portion of 31 the month, the rate assistance credit for that customer shall 32 be pro-rated by the same percentage. 33 (g) High rate assistance credits shall be shown and 34 identified on bills issued to customers. -25- LRB093 06383 JLS 06502 b 1 (h) Telecommunications carriers with rate ceiling 2 programs in place on the effective date of this amendatory 3 Act of the 93rd General Assembly may continue those programs 4 until rates subject to those programs are changed, unless the 5 Commission authorizes an extension of the rate ceiling 6 program. 7 (i) Local exchange service providers shall not be 8 reimbursed by the Universal Service Fund for the value of 9 credits issued to customers receiving essential 10 telecommunications service under a contract if the contract 11 has a duration of greater than one year. The Commission may 12 grant waivers of this subsection by order. 13 (220 ILCS 5/13E-185 new) 14 Sec. 13E-185. Qualifications for providers receiving 15 Universal Service Fund support for high rate assistance 16 credits. A local exchange service provider receiving 17 reimbursement for high rate assistance credits under Section 18 13E-180 shall: 19 (1) provide service that meets the minimum 20 requirements of Section 13E-110 and any applicable 21 quality of service rules established by or orders issued 22 by the Commission; 23 (2) be designated by the Commission as an eligible 24 telecommunications carrier under Section 13E-215 for the 25 area in which it seeks reimbursement; and 26 (3) show that it has applied any money it receives 27 from the federal high cost program, to the extent 28 permitted under federal Communications Commission 29 regulations, to the rates for which it is issuing 30 credits, and not to other services or to ineligible 31 customers. 32 (220 ILCS 5/13E-190 new) -26- LRB093 06383 JLS 06502 b 1 Sec. 13E-190. Alternative universal service protection 2 plans. 3 (a) As an alternative to the high rate assistance credit 4 mechanism in Section 13E-180, the Commission may, by order, 5 after notice and an opportunity for hearing, implement other 6 plans under this Section. 7 (b) Alternative plans under subsection (a) shall be 8 implemented on an experimental basis. These experiments 9 shall be reviewed within 3 years of inception and shall 10 terminate within 5 years of inception, unless made permanent 11 by Commission order after notice and an opportunity for 12 hearing. 13 (c) Alternative high cost support plans under this 14 Section may make use of cost studies, bidding, defined 15 service territories, or other mechanisms to protect universal 16 service. The Commission may, by order, authorize payment of 17 Universal Service Fund moneys as part of an alternative plan. 18 (d) Alternative high cost support plans may include rate 19 ceiling programs, as referenced in subsection (h) of Section 20 13E-180, including programs authorized for other utilities. 21 (220 ILCS 5/13E-195 new) 22 Sec. 13E-195. Rate shock mitigation. 23 (a) The Commission may authorize assistance, through 24 temporary rate credits, for customers of rate of return 25 regulated telecommunications carriers to mitigate the impact 26 of large increases in authorized rates. 27 (b) Rate shock mitigation credits shall be funded by the 28 telecommunications carrier, where possible. Where that is 29 not the case, the telecommunications carrier shall be 30 reimbursed for the amount of the credits from the Universal 31 Service Fund. Funding for the rate shock mitigation shall be 32 specified by the Commission in individual cases. 33 (c) When a telecommunications carrier charges a -27- LRB093 06383 JLS 06502 b 1 pro-rated portion of the normal monthly charge for service 2 because the customer has had service for only a portion of 3 the month, the rate shock mitigation credit for that customer 4 shall be pro-rated by the same percentage. The Universal 5 Service Fund shall reimburse the telecommunications carrier 6 for the portion of the credit actually issued to the customer 7 when not funded by that carrier. 8 (d) Rate shock mitigation credits shall be shown and 9 identified on bills issued to customers. 10 (220 ILCS 5/13E-200 new) 11 Sec. 13E-200. Assistance to institutions. 12 (a) Partial support funding through rate discounts is 13 available for institutions ordering telecommunications 14 services to be used to provide any of the following services: 15 (1) Two-way interactive video services. 16 (2) High-speed data transfer. 17 (3) Toll call access to the internet. 18 (4) Direct internet access. 19 (b) Support funding is available only for new services 20 that either were not previously available, or which provide 21 significant improvements over existing services at that 22 institution. Support shall only be available for services 23 obtained from a contributory provider, unless exempted from 24 payment under the provisions of subsection (a) of Section 25 13E-240. 26 (c) Support funding is available only as partial payment 27 for new services. The amount of funding shall decrease year 28 by year, as follows: 29 (1) for the first year, the monthly discount shall 30 be 30% of the monthly charge or $300 per month, whichever 31 is less; 32 (2) for the second year, the monthly discount shall 33 be 20% of the monthly charge or $200 per month, whichever -28- LRB093 06383 JLS 06502 b 1 is less; 2 (3) for the third year, the monthly discount shall 3 be 10% of the monthly charge or $100 per month, whichever 4 is less; and 5 (4) for the fourth year, and thereafter, no 6 discount shall be issued. 7 (d) An institution is eligible to receive support for 8 only one service at a time, at a single location. If that 9 service links 2 locations at an institution, the discount may 10 be applied to the entire channel. 11 (e) After the discount for a service under subsection 12 (c) has ended, the institution may receive support for a new 13 service. An institution may not receive a discount for a 14 service that has been canceled and reinstated. 15 (220 ILCS 5/13E-205 new) 16 Sec. 13E-205. Medical telecommunications equipment 17 program. 18 (a) For purposes of this Section: 19 "Initial application" means an application for Universal 20 Service Fund support under this Section that is the first 21 such application filed by the applicant during a State fiscal 22 year. 23 "Non-profit medical clinic" includes any clinic that: 24 (1) is a non-profit organization governed by a 25 board of directors; 26 (2) serves federally designated health professional 27 shortage areas as defined in 42 USC 254e(a)(1), medically 28 underserved areas, or medically underserved populations; 29 and 30 (3) does one or both of the following: 31 (A) Provides services to all patients 32 regardless of insurance status. 33 (B) Uses a sliding fee scale for uninsured -29- LRB093 06383 JLS 06502 b 1 patients based on income status. 2 "Public health agency" includes the Department of Public 3 Health and any local health department. 4 (b) Funding may be available to non-profit medical 5 clinics and public health agencies for the purchase of 6 telecommunications equipment for any of the following 7 purposes: 8 (1) To promote technologically advanced medical 9 services. 10 (2) To enhance access to medical care in rural or 11 underserved areas of the State, or both. 12 (3) To enhance access to medical care by 13 underserved populations or persons with disabilities in 14 the State, or both. 15 (c) A maximum of $500,000 in Universal Service Fund 16 support may be dispersed under this Section per State fiscal 17 year. 18 (d) An application for Universal Service Fund support 19 under this Section may not involve disbursement of support 20 during multiple State fiscal years. All applications shall 21 become public documents upon filing. 22 (e) Applications must include all of the following: 23 (1) A description of the telecommunications 24 equipment for which Universal Service Fund support is 25 requested. 26 (2) An explanation of how the applicant's purchase 27 of such telecommunications equipment will support the 28 purposes identified in subsection (b). 29 (3) Identification of the vendor that will supply 30 the telecommunications equipment. 31 (4) A description of how the portion of the 32 purchase price not covered by Universal Service Fund 33 support, if any, will be paid. 34 (5) A description of the steps taken to secure the -30- LRB093 06383 JLS 06502 b 1 telecommunications equipment at reasonable prices. 2 (6) A statement certifying that the Universal 3 Service Fund support will be used for the purpose 4 granted. 5 (7) Any other information that the Commission deems 6 necessary. 7 (f) The Commission shall evaluate all applications 8 submitted under this Section. If funds remain for this 9 purpose, the Commission may approve an application if it 10 includes the information required under subsection (e) and 11 if the Commission determines the following: 12 (1) the applicant is a non-profit medical clinic or 13 public health agency located in Illinois; 14 (2) the applicant's purchase of telecommunications 15 equipment will support the purposes identified in 16 subsection (b); 17 (3) the applicant will be able to pay for the 18 portion of the cost of the equipment not funded under 19 this Section; and 20 (4) the medical clinic or public health agency has 21 taken steps to secure the equipment at reasonable prices. 22 Public health agencies and non-profit organizations that 23 operate more than one location may receive Universal Service 24 Fund support for telecommunications equipment at more than 25 one location, but before approving an application involving 26 an additional location, the Commission shall consider how 27 much total Universal Service Fund support has been received 28 by the agency or organization during the State fiscal year 29 and the total amount remaining available to be disbursed 30 under this Section during the fiscal year. Preference may be 31 given to initial applications filed by a public health agency 32 or non-profit medical clinic. 33 The Commission may convene a panel of experts to assist 34 in the evaluation of applications submitted under this -31- LRB093 06383 JLS 06502 b 1 Section. 2 (220 ILCS 5/13E-210 new) 3 Sec. 13E-210. Funding to promote access to 4 telecommunications services. 5 (a) Any voice-mail provider may be compensated for 6 providing, on request, to a social services agency, a job 7 service agency or other homeless shelter authority, 8 voice-mail service without charge to be used by that agency 9 or authority for the benefit of its homeless clients or 10 residents. A voice-mail provider that is providing voice-mail 11 boxes to a qualifying agency or authority at no charge may 12 request and receive reimbursement only for its incremental 13 usage and administrative costs of providing this service 14 using available capacity. As an alternative, reimbursement 15 may be requested and received from the Fund at a standard 16 rate set by the Commission to cover expected incremental 17 costs of providing this service using available capacity. 18 A qualifying agency or authority administering or 19 providing voice-mail service to homeless clients may request 20 reimbursement for its costs directly attributable to 21 administering and providing the voice-mail boxes for the 22 benefit of its homeless clients. To evaluate the 23 effectiveness of this program, the Commission may monitor and 24 obtain information on the offering of this service from the 25 participating voice-mail providers, social services agencies, 26 job service agencies, and homeless shelter authorities. 27 A list of all individuals receiving voice-mail under this 28 Section shall be maintained by the social services agencies, 29 job service agencies, or homeless shelter authorities 30 participating in this program. 31 (b) Partial funding may be available to non-profit 32 groups for the facilitation of affordable access to 33 telecommunications and information services through programs -32- LRB093 06383 JLS 06502 b 1 or projects, or both, not supported elsewhere in this 2 Article, but that are consistent with the purposes of this 3 Article. 4 (c) Any non-profit group may apply for the Universal 5 Service Fund for funding to fund any portion of a program or 6 project or both. Funding shall be provided on a State fiscal 7 year basis. Applications for funding in the following fiscal 8 year shall be submitted by November 15th. The Commission 9 shall issue a list of approved programs or projects, or both, 10 by April 15th, with funding for those programs or projects, 11 or both, to begin that July 1st. All applications shall 12 become public documents upon filing. Applications must 13 include all of the following: 14 (1) A description of a public need which is not 15 being met at present. 16 (2) A description of how the program or project is 17 consistent with the purposes of this Article. 18 (3) A description of the program or project 19 proposed, including a description of how the public need 20 described in item (1) of this subsection may be met 21 through affordable access to telecommunications or 22 information services. 23 (4) A showing that the proposed program or project 24 meets the described public need in a least cost manner. 25 This requirement can be met by showing that the applicant 26 carried out an appropriate request for proposals. 27 (5) Identification of the providers of each portion 28 of the telecommunications services or equipment and a 29 specific description of the following components of the 30 program or project: 31 (A) the costs of telecommunications services 32 and telecommunications equipment used by the program 33 or project; 34 (B) the cost of training for those who are -33- LRB093 06383 JLS 06502 b 1 served by the program or project so that they can 2 utilize the services; 3 (C) the administrative costs directly 4 attributable to the program or project; 5 (D) the cost of technical expertise required 6 to complete the program or project; and 7 (E) revenue from services or training 8 described in subitem (B) of item (5). 9 (d) The Commission shall evaluate all applications 10 submitted. In evaluating the applications the Commission must 11 consider information including, but not limited to, the 12 following: 13 (1) the basis of the public need to be met; 14 (2) the extent to which other programs or projects, 15 either funded under this Section or otherwise under this 16 Article, meet that need; and 17 (3) the overall cost of the proposed program or 18 project. 19 (e) The Universal Service Fund shall reimburse 20 applicants for up to 50% of the cost of reimbursable portions 21 of the program or project, or both. The reimbursable costs 22 include those listed in subitems (A) through (D) of item (5) 23 of subsection (c). 24 (f) The programs or projects, or both, to be funded and 25 the amount of reimbursement for each program or project shall 26 be determined by the Commission. The Commission shall seek 27 comments on the programs or projects to be funded, but shall 28 not hold a hearing. A maximum of $500,000 in funding may be 29 dispersed under subsections (b) through (f) of this Section 30 per State fiscal year. 31 (220 ILCS 5/13E-215 new) 32 Sec. 13E-215. Designation of eligible telecommunications 33 carriers. -34- LRB093 06383 JLS 06502 b 1 (a) The Commission may designate a telecommunications 2 carrier as an eligible telecommunications provider. An 3 eligible telecommunications provider is eligible to receive 4 Universal Service Fund funding under both applicable federal 5 and State universal service programs for an area, if it meets 6 all of the following requirements: 7 (1) It holds itself ready to offer service to all 8 customers in the area, except that those customers with a 9 demonstrated inability to pay for service may be denied 10 service in accordance with applicable law. 11 (2) It advertises its service in the area on a 12 regular basis, with those advertisements: 13 (A) disseminated in media of general 14 distribution in the area, at least 2 times per year; 15 (B) describing the services offered; and 16 (C) describing the affordability of the 17 services, including the availability of discounts 18 for low income customers. 19 (3) It makes available lifeline and link-up 20 service, as defined in Sections 13E-140 and 13E-145. 21 (4) It offers, at a minimum, all portions of 22 essential telecommunications service, as defined in 23 Section 13E-110. For purposes of this subsection 24 "essential services" includes public interest pay 25 telephone service pursuant to Section 13E-165 and pay 26 telephone interconnection service subject to federal 27 Communications Commission orders and Commerce Commission 28 orders. 29 (b) The area in which a provider shall be designated as 30 an eligible telecommunications carrier shall be: 31 (1) For an area that is served by an incumbent 32 local exchange service provider that is not a rural 33 telephone company, the incumbent local exchange service 34 provider's wire center, unless the Commission designates -35- LRB093 06383 JLS 06502 b 1 a smaller area. 2 (2) For an area that is served by an incumbent 3 local exchange service provider that is a rural telephone 4 company, the service territory comprised of one or more 5 of the incumbent local exchange service provider's wire 6 centers, unless the Commission designates, and the 7 Federal Communications Commission approves, a smaller 8 area. 9 (3) For an area served by an incumbent local 10 exchange service provider that is a rural telephone 11 company, the Commission may only designate an additional 12 eligible telecommunications carrier after finding that 13 the public interest requires multiple eligible 14 telecommunications carriers. For an area served by an 15 incumbent local exchange service provider that is not a 16 rural telephone company, the Commission may designate an 17 additional eligible telecommunications carrier without 18 making such a finding. 19 (d) The Commission shall maintain a list of the eligible 20 telecommunications carriers for all areas of the State. 21 (e) An eligible telecommunications carrier may 22 relinquish its designation as such for an area by notifying 23 the Commission and the administrators of both the State and 24 federal Universal Service Funds, in writing, of its 25 intention. 26 If at least one other eligible telecommunications carrier 27 is designated for that area, the relinquishing carrier shall 28 be relieved of eligible telecommunications carrier status for 29 that area 2 weeks after receipt by the Commission of the 30 letter, and without Commission action. 31 If no other eligible telecommunication carrier is 32 designated for that area, the relinquishing carrier shall 33 remain as eligible telecommunications carrier for that area 34 until the Commission designates an alternative eligible -36- LRB093 06383 JLS 06502 b 1 telecommunications carrier. In that case, the Commission 2 shall notify the relinquishing carrier and the administrators 3 of the State and federal funds that eligible 4 telecommunications carrier status is still in effect. The 5 Commission may use a process similar to that described in 6 subsections (c) through (f) of Section 13E-220 to designate a 7 new eligible telecommunications carrier for an area for which 8 the only existing eligible telecommunications carrier is 9 seeking to relinquish that status. 10 A provider may continue to provide services in an area 11 for which it has relinquished eligible telecommunications 12 carrier status, but may not continue to receive high cost 13 assistance funding. If a provider seeks to abandon 14 facilities or discontinue any service, it shall notify 15 affected customers and follow any abandonment or 16 discontinuance procedures established by the Commission. 17 (220 ILCS 5/13E-220 new) 18 Sec. 13E-220. Intralata toll service provider of last 19 resort. 20 (a) The intralata toll service provider of last resort 21 for an exchange shall be the designated intralata toll 22 provider for that exchange until intralata 1+ presubscription 23 service is available in that exchange or until the Commission 24 orders otherwise under subsection (g). For purposes of this 25 Section, "provider of last resort" means the intralata toll 26 service provider of last resort. 27 (b) When intralata 1+ presubscription service is 28 available in an exchange, the designated intralata toll 29 provider may petition the Commission for withdrawal of its 30 provider of last resort requirements for that exchange. 31 The petition shall be filed in writing with the 32 Commission. Except as otherwise provided in this subsection, 33 the petitioner retains intralata toll service provider of -37- LRB093 06383 JLS 06502 b 1 last resort responsibilities until a new provider of last 2 resort is designated or for a period of 12 months, whichever 3 is shorter. 4 The petitioner shall notify all of its affected customers 5 of its request to have its provider of last resort 6 requirements lifted. The notice to customers shall be 7 approved in advance by the Commission and clearly state the 8 following: 9 (1) that the petitioner is seeking authority to 10 deny service to some or all customers within the 11 exchange; 12 (2) that toll services in the future may be 13 available only from other telecommunications providers or 14 from only one telecommunications provider; and 15 (3) that if a new provider of last resort is 16 designated, all customers may be switched to that 17 provider's service, although they may choose to obtain 18 service from any other intralata toll service provider in 19 the area after reassignment of the provider of last 20 resort requirement. 21 If intralata 1+ presubscription service has been in 22 effect in an exchange for at least one year and if the 23 designated telecommunications carrier toll provider has less 24 than 50% of all presubscribed residential access lines in 25 that exchange, then the Commission may lift the provider of 26 last resort requirement for that exchange. If future 27 circumstances so require, the Commission may designate a new 28 provider of last resort pursuant to subsection (c). 29 (c) If a petition under subsection (b) is filed, the 30 Commission shall issue a notice requesting applications from 31 all telecommunications providers interested in becoming the 32 provider of last resort for that exchange. The provider 33 seeking to abandon provider of last resort requirements for 34 that exchange may not file an application to become the new -38- LRB093 06383 JLS 06502 b 1 provider of last resort once again. 2 (d) If only one telecommunications provider responds to 3 the request for applications, that provider becomes the 4 provider of last resort, effective in 90 days. All customers 5 shall be notified of the proposed change at least 60 days 6 prior to the effective date. The notice shall include a 7 telephone number which they may use to designate their 8 intralata toll service provider. On the effective date, all 9 customers who do not designate an intralata toll service 10 provider shall be presubscribed to the new provider of last 11 resort. 12 (e) If more than one telecommunications provider applies 13 to become the provider of last resort, the local exchange 14 service provider at that exchange shall ballot customers on 15 their choice of intralata toll service provider. 16 Only those telecommunications providers that file 17 applications to be the provider of last resort for the 18 exchange may appear on the ballot, although customers may 19 "write-in" another telecommunications provider if desired. 20 Customers who do not return ballots shall be randomly 21 allocated to the telecommunications providers appearing on 22 the ballot, according to the percentage of customers who 23 chose each listed provider. 24 All telecommunications providers appearing on the ballot 25 shall be the providers of last resort for at least one year. 26 After that date, these providers may notify the Commission 27 that they wish to be relieved of provider of last resort 28 responsibility. When the last provider of last resort files 29 to exit the market, the process described in this Section 30 recommences. 31 Fifty percent of the costs of balloting shall be paid by 32 the local exchange carrier serving the exchange and 50% shall 33 be paid by the providers appearing on the ballot. 34 (f) If no toll providers apply to be provider of last -39- LRB093 06383 JLS 06502 b 1 resort for an exchange, the Commission shall hold an auction 2 of the provider of last resort responsibility. The Commission 3 may authorize compensation from the Universal Service Fund 4 for the provider of last resort selected by the auction. 5 (g) If the provider of last resort for an exchange files 6 a petition for withdrawal of its provider of last resort 7 requirements at an exchange where intralata 1+ 8 presubscription is not available, the Commission may 9 investigate that petition and order that the provider of last 10 resort obligation be withdrawn for that provider subject to 11 conditions, notice requirements, and balloting procedures the 12 Commission deems necessary and reasonable for the service 13 change at that exchange. Those conditions, requirements and 14 procedures shall be as designated in this Section to the 15 extent the Commission determines they are applicable. 16 (h) A provider of last resort may not sell or dispose of 17 any intralata toll customer to another provider, except at 18 the express request of the customer. 19 (220 ILCS 5/13E-225 new) 20 Sec. 13E-225. Identification of charges caused by 21 Universal Service Fund liability. Telecommunications 22 providers may not establish a surcharge on customer bills for 23 contributing to or recovering any portion of the providers' 24 payment of Universal Service Fund obligations. 25 (220 ILCS 5/13E-230 new) 26 Sec. 13E-230. Fund administrator. 27 (a) The Commission shall designate the Fund 28 administrator and provide for an annual audit of the Fund. 29 The Commission shall issue rules for administration and 30 assignment of liabilities. 31 (b) The Fund administrator may propose changes or 32 modification to the mechanisms of administration of the Fund. -40- LRB093 06383 JLS 06502 b 1 The Commission may approve such requests without hearing. 2 (c) The Universal Service Fund shall compensate the 3 administrator for the administrator's costs of administering 4 the Fund as approved by the Commission. 5 (220 ILCS 5/13E-235 new) 6 Sec. 13E-235. Fund budget and assessment rates. 7 (a) At least once each year, the Commission shall set 8 the budget for Fund administration and the programs specified 9 in subsection (b) of Section 13E-130. The Commission may 10 make adjustments to the budget as needed to address 11 unforeseen circumstances. Adjustments may include: 12 (1) reallocating the budget among programs; 13 (2) modifying the support formulas or benefits 14 within a program; and 15 (3) deferring support payments to a later period. 16 (b) At least once each year, the Commission shall 17 determine the amounts necessary for funding the payments 18 specified in subsections (c) and (e) of Section 13E-130. 19 (c) Based on the need for funds and subject to 20 appropriation, the Commission shall determine the assessment 21 rates to apply to providers. The Commission may modify the 22 assessment rates at any time based on changes in funding 23 needs or provider revenues subject to assessment. 24 (d) The Commission shall provide notice of the proposed 25 budget under subsection (a) and any proposed changes to the 26 budget to the Universal Service Fund Council and other 27 interested parties with an opportunity for comment prior to 28 Commission action. 29 (220 ILCS 5/13E-240 new) 30 Sec. 13E-240. Collection of Universal Service Fund 31 moneys. 32 (a) An assessed provider shall pay the amount of its -41- LRB093 06383 JLS 06502 b 1 assessment to the Universal Service Fund. Assessed providers 2 include all telecommunications providers operating within 3 Illinois, except those with intrastate gross 4 telecommunications revenues of less than $200,000 during the 5 preceding calendar year. 6 (b) The Commission may require a person other than a 7 telecommunications provider to contribute to the Universal 8 Service Fund, if after notice and opportunity for hearing the 9 Commission determines that the person is offering 10 nontraditional broadcast services in competition with a 11 telecommunications service for which a contribution is 12 required under this Article. 13 (c) Telecommunications providers shall be assessed on 14 the basis of their gross intrastate operating revenues from 15 telecommunications services. 16 (d) A telecommunications provider shall submit 17 information, on a schedule and in a format to be set by the 18 Commission, on the telecommunications provider's gross 19 intrastate telecommunications revenues during the preceding 20 calendar year. 21 (e) The percentage liability for a given 22 telecommunications provider is the ratio of that provider's 23 intrastate gross telecommunications revenues to the sum of 24 the intrastate gross telecommunications revenues for all 25 contributory providers. 26 (f) The amount to be assessed to a given 27 telecommunications provider is the percentage liability of 28 that provider under subsection (e) multiplied by the total 29 amount to be collected. 30 (g) Telecommunications providers who provided 31 telecommunications service in Illinois for only part of the 32 preceding calendar year shall be assessed based on actual 33 revenues for the year, without adjustments to annualize that 34 revenue. -42- LRB093 06383 JLS 06502 b 1 (h) Failure to receive a bill is not grounds for relief 2 from a telecommunications provider's liability for 3 assessment. 4 (i) Assessments must be paid within 30 days after the 5 bill is mailed. A telecommunications provider that has not 6 paid within 30 days after the bill is mailed shall be deemed 7 to have not paid. Assessments not paid within 30 days after 8 the bill is mailed shall be collected in accordance with the 9 rules of the Commission. 10 Objection to an assessment amount shall be made within 30 11 days after the bill is mailed. The making of the objection 12 and Commission action regarding that objection shall follow 13 the process established by rules of the Commission. 14 (j) The Commission shall obtain the information 15 necessary to process the assessment of commercial mobile 16 radio service providers and shall mail bills to such 17 providers. 18 (220 ILCS 5/13E-245 new) 19 Sec. 13E-245. Use audit. Recipients of Universal 20 Service Fund moneys may be audited by the Commission to 21 ensure that the funding was applied for and used 22 appropriately. 23 (220 ILCS 5/13E-250 new) 24 Sec. 13E-250. Universal Service Fund Council. 25 (a) The Commission shall appoint a Universal Service 26 Fund Council to advise the Commission concerning the 27 administration of this Article, the content of administrative 28 rules adopted pursuant to this Article, and any other matters 29 assigned to the Universal Service Fund Council by the 30 Commission. 31 (b) The Universal Service Fund Council shall consist of 32 telecommunications providers and of consumers of -43- LRB093 06383 JLS 06502 b 1 telecommunications services. The Commission shall appoint a 2 diverse membership to the Universal Service Fund Council 3 including representatives of the local exchange 4 telecommunications industry; the interexchange 5 telecommunications industry, including facilities-based 6 carriers and resellers; the cable television industry; other 7 telecommunications providers and consumers of 8 telecommunications services including residential, business, 9 governmental, institutional, and public special interest 10 group users of telecommunications services. 11 (c) A majority of the members of the Universal Service 12 Fund Council shall be representatives of consumers of 13 telecommunications services. 14 (d) Universal Service Fund Council members shall be 15 appointed to staggered 3-year terms. The Commission may 16 appoint a replacement member when necessary to serve the 17 remaining term of a member withdrawing from the Universal 18 Service Fund Council. 19 (e) The Universal Service Fund Council shall elect a 20 chairperson and a vice-chairperson from its membership, not 21 including the Commission staff liaison. The term of office 22 for these positions shall be one year. Elections may be held 23 at the first meeting of each calendar year or may be 24 conducted by mail prior to the first meeting of each calendar 25 year. 26 (f) The Universal Service Fund Council shall meet at 27 least 2 times each year. Other meetings may be called, upon 28 adequate notice to all members, to address matters of the 29 Fund as they arise. Meetings of the Universal Service Fund 30 Council shall be open to the public. 31 (g) Members of the Universal Service Fund Council shall 32 serve without compensation. Members, other than those 33 members representing the telecommunications industry and any 34 members representing State agencies, may be reimbursed for -44- LRB093 06383 JLS 06502 b 1 their actual and necessary expenses incurred in the 2 performance of their duties as part of the Universal Service 3 Fund Council, subject to budget guidelines adopted by the 4 Commission. 5 (h) The Universal Service Fund Council may adopt bylaws 6 appropriate for its operation. The Universal Service Fund 7 Council may form subcommittees of its membership as necessary 8 to review issues and make recommendations for consideration 9 of the full Council. 10 (i) The Commission shall assign staff members as needed 11 to facilitate the work of the Universal Service Fund Council. 12 The Commission shall appoint a member of the Commission staff 13 to serve as staff liaison for the Universal Service Fund 14 Council. The liaison shall be a non-voting member and shall 15 do all of the following: 16 (1) Assist the Universal Service Fund Council in 17 obtaining subject matter expertise in the area of 18 universal telecommunications service. 19 (2) Maintain the official record of the Universal 20 Service Fund Council, including membership, minutes of 21 meetings, agendas, and reports. 22 (3) Assist the chairperson of the Universal Service 23 Fund Council in planning the agendas, times, and places 24 of meetings. 25 (4) Provide other administrative assistance as 26 required. 27 Section 99. Effective date. This Act takes effect 28 January 1, 2004. -45- LRB093 06383 JLS 06502 b 1 INDEX 2 Statutes amended in order of appearance 3 30 ILCS 105/5.595 new 4 220 ILCS 5/Art. XIIIE heading, new 5 220 ILCS 5/13E-101 new 6 220 ILCS 5/13E-105 new 7 220 ILCS 5/13E-110 new 8 220 ILCS 5/13E-115 new 9 220 ILCS 5/13E-120 new 10 220 ILCS 5/13E-125 new 11 220 ILCS 5/13E-130 new 12 220 ILCS 5/13E-135 new 13 220 ILCS 5/13E-140 new 14 220 ILCS 5/13E-145 new 15 220 ILCS 5/13E-150 new 16 220 ILCS 5/13E-155 new 17 220 ILCS 5/13E-160 new 18 220 ILCS 5/13E-165 new 19 220 ILCS 5/13E-170 new 20 220 ILCS 5/13E-175 new 21 220 ILCS 5/13E-180 new 22 220 ILCS 5/13E-185 new 23 220 ILCS 5/13E-190 new 24 220 ILCS 5/13E-195 new 25 220 ILCS 5/13E-200 new 26 220 ILCS 5/13E-205 new 27 220 ILCS 5/13E-210 new 28 220 ILCS 5/13E-215 new 29 220 ILCS 5/13E-220 new 30 220 ILCS 5/13E-225 new 31 220 ILCS 5/13E-230 new 32 220 ILCS 5/13E-235 new 33 220 ILCS 5/13E-240 new 34 220 ILCS 5/13E-245 new -46- LRB093 06383 JLS 06502 b 1 220 ILCS 5/13E-250 new