SB1700eng 94TH GENERAL ASSEMBLY

SB1700 Engrossed LRB094 05918 MKM 35972 b

AN ACT concerning regulation.

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 Sections 13-100, 13-101, 13-102, 13-103, 13-202.5, 13-203, 13-204, 13-205, 13-209, 13-214, 13-216, 13-301, 13-305, 13-401, 13-403, 13-406, 13-407, 13-501, 13-502, 13-504, 13-505, 13-506, 13-506.1, 13-509, 13-514, 13-515, 13-517, 13-701, 13-712, 13-801, and 13-1200 and by adding Sections 13-100.5, 13-203.1, 13-203.2, 13-203.3, 13-203.4, 13-203.5, 13-203.6, 13-204.5, 13-400, 13-518.1, and 13-804 as follows:

(220 ILCS 5/13-100) (from Ch. 111 2/3, par. 13-100)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-100. This Article shall be known and may be cited as the Telecommunications Reform Act of 2005 Universal Telephone Service Protection Law of 1985.

(Source: P.A. 84-1063.)

(220 ILCS 5/13-100.5 new)

Sec. 13-100.5. References to former law. References in this Act or any other law, rule, regulation, or other document to the Universal Telephone Service Protection Law of 1985 are references to the Telecommunications Reform Act of 2005. The Sections of this Act pertaining to public utilities, public utility rates and services, and the regulation thereof, shall not apply to public mobile services.

(220 ILCS 5/13-101) (from Ch. 111 2/3, par. 13-101)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-101. Application of Act to telecommunications rates and services. Except to the extent modified or supplemented by the specific provisions of this Article, the Sections of this Act pertaining to public utilities, public utility rates and services, and the regulation thereof, are fully and equally applicable to noncompetitive telecommunications rates and services, and the regulation thereof, except where the context clearly renders such provisions inapplicable. Except to the extent modified or supplemented by the specific provisions of this Article, Articles I through V, Sections 8-301, 8-505, 9-221, 9-222, 9-222.1, 9-222.2, 9-250, and 9-252.1, and Article Articles X and XI of this Act are fully and equally applicable to competitive telecommunications rates and services, and the regulation thereof; in addition, as to competitive telecommunications rates and services, and the regulation thereof, all rules and regulations made by a telecommunications carrier affecting or pertaining to its charges or service to the public shall be just and reasonable, provided that nothing in this Section shall be construed to prevent a telecommunications carrier from accepting payment electronically or by the use of a customer-preferred financially accredited credit or debit methodology. Sections 8-305, 8-401, 8-502, and 8-507 of this Act apply to the price-capped telecommunications services of an incumbent local exchange carrier. As of the effective date of this amendatory Act of the 92nd General Assembly, Sections 4-202, 4-203, and 5-202 of this Act shall cease to apply to telecommunications rates and services.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-102) (from Ch. 111 2/3, par. 13-102)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-102. Findings. With respect to telecommunications services, as herein defined, and the communications environment that now exists in the State of Illinois, the General Assembly finds that:

(a) universally available and widely affordable telecommunications services are essential to the health, welfare and prosperity of all Illinois citizens;

(b) federal regulatory and judicial rulings in the 1980s caused a restructuring of the telecommunications industry and opened some aspects of the industry to competitive entry, thereby necessitating revision of State telecommunications regulatory policies and practices;

(c) revisions in telecommunications regulatory policies and practices in Illinois beginning in the mid-1980s brought the benefits of competition to consumers in many telecommunications markets, but not in local exchange telecommunications service markets;

(d) the federal Telecommunications Act of 1996 established the goal of opening all telecommunications service markets to competition and accords to the states certain responsibilities the responsibility to establish and enforce policies necessary to attain that goal;

(e) it is in the immediate interest of the People of the State of Illinois for the State to exercise its rights within the new framework of federal telecommunications policy to ensure that the economic benefits of competition in all telecommunications service markets are realized as effectively as possible;

(e-5) since the passage of the federal Telecommunications Act of 1996, national telecommunications policy has reaffirmed the increased benefits of a pro-competitive de-regulatory framework that provides incentives for both incumbent carriers and new entrants to accelerate rapidly private sector investment in advanced telecommunications and information technologies in a manner that best allows for innovation and sustainable facilities-based competition;

(e-10) significant changes in the communications industry, both among incumbent telecommunications providers and by the entry of new entrants, have brought the benefits of competition to consumers and businesses in Illinois;

(e-15) advancements in and the convergence of technologies that provide voice, video, and data transmission, including landline, wireless, cable, satellite, and Internet transmissions involving Internet Protocol enabled services (including voice, video, and data), are substantially increasing consumer choice, reinventing the communications industry and marketplace with unprecedented speed, and making available highly competitive products and services and new methods of delivering all forms of communications services;

(e-20) there is now significant communications competition in Illinois and a continuing convergence of multiple technologies, including facilities-based telecommunications services, cable telephony services, wireless services, advanced information services, high speed broadband transport services, and Internet Protocol enabled voice, video and data services;

(f) the continued competitive offering of all telecommunications services will increase innovation and efficiency in the provision of telecommunications services and may lead to reduced prices for consumers, a wider choice of services, increased investment in communications infrastructure, the creation of new jobs, and the attraction of new businesses to Illinois; and

(g) protection of the public interest requires changes in the regulation of telecommunications carriers and services consistent with the competitive environment and convergence of technologies to ensure, to the maximum feasible extent, the reasonable and timely development of effective competition in all telecommunications service markets.

(Source: P.A. 90-185, eff. 7-23-97.)

(220 ILCS 5/13-103) (from Ch. 111 2/3, par. 13-103)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-103. Policy. Consistent with its findings, the General Assembly declares that it is the policy of the State of Illinois that:

(a) telecommunications services should be available to all Illinois citizens at just, reasonable, and affordable rates, provisioned over a well-maintained and reliable telecommunications infrastructure system, and that such services should be provided as widely and economically as possible in sufficient variety, quality, quantity and reliability to satisfy the public interest;

(b) consistent with the protection of consumers of telecommunications services and the furtherance of other public interest goals, competition in all telecommunications service markets exists and should be pursued as a substitute for regulation in determining the variety, quality and price of telecommunications services and that the economic burdens of regulation should be reduced to the extent possible consistent with the furtherance of market competition and protection of the public interest;

(b-5) given the global nature of the telecommunications marketplace, it is critical that the State of Illinois establish and exercise its telecommunications policy within the framework of federal telecommunications policy to ensure that the economic benefits of competition in all communications markets are maintained and enhanced;

(c) all necessary and appropriate modifications to State regulation of telecommunications carriers and services should be implemented without unnecessary disruption to the telecommunications infrastructure system or to consumers of telecommunications services and that it is necessary and appropriate to establish rules to encourage and ensure orderly transitions in the development of markets for all telecommunications services;

(d) the consumers of telecommunications services and facilities provided by persons or companies subject to regulation pursuant to this Act and Article should be required to pay only reasonable and non-discriminatory rates or charges and that in no case should rates or charges for non-competitive telecommunications services include any portion of the cost of providing competitive telecommunications services, as defined in Section 13-209, or the cost of any nonregulated activities;

(d-5) consumers of telecommunications services will benefit from marketplace pricing flexibility, which is designed to provide consumers with more services, more choice and new innovations at lower overall prices and increased value;

(e) the regulatory policies and procedures provided in this Article are established in recognition of the changing nature of the communications telecommunications industry and therefore telecommunications should be subject to systematic legislative review to ensure that the public benefits intended to result from such policies and procedures are fully realized; and

(f) development of and prudent investment in advanced telecommunications services and networks that foster economic development of the State should be encouraged through the implementation and enforcement of policies that promote effective and sustained competition in all telecommunications service markets.

(Source: P.A. 90-185, eff. 7-23-97.)

(220 ILCS 5/13-202.5)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-202.5. Incumbent local exchange carrier. "Incumbent local exchange carrier" means, with respect to an area, the telecommunications carrier that provided noncompetitive local exchange telecommunications service in that area on February 8, 1996, and on that date was deemed a member of the exchange carrier association pursuant to 47 C.F.R. 69.601(b), and includes its successors or , assigns, and affiliates.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-203) (from Ch. 111 2/3, par. 13-203)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-203. Telecommunications service.

"Telecommunications service" means the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used. the provision or offering for rent, sale or lease, or in exchange for other value received, of the transmittal of information, by means of electromagnetic, including light, transmission with or without benefit of any closed transmission medium, including all instrumentalities, facilities, apparatus, and services (including the collection, storage, forwarding, switching, and delivery of such information) used to provide such transmission and also includes access and interconnection arrangements and services.

"Telecommunications service" does not include, however:

(a) the rent, sale, or lease, or exchange for other value received, of customer premises equipment except for customer premises equipment owned or provided by a telecommunications carrier and used for answering 911 calls, and except for customer premises equipment provided under Section 13-703;

(b) telephone or telecommunications answering services, paging services, and physical pickup and delivery incidental to the provision of information transmitted through electromagnetic, including light, transmission; (c) community antenna television service which is operated to perform for hire the service of receiving and distributing video and audio program signals by wire, cable or other means to members of the public who subscribe to such service, to the extent that such service is utilized solely for the one-way distribution of such entertainment services with no more than incidental subscriber interaction required for the selection of such entertainment service.

The Commission may, by rulemaking, exclude (1) private line service which is not directly or indirectly used for the origination or termination of switched telecommunications service, (2) cellular radio service, (3) high-speed point-to-point data transmission at or above 9.6 kilobits, or (4) the provision of telecommunications service by a company or person otherwise subject to Section 13-202 (c) to a telecommunications carrier, which is incidental to the provision of service subject to Section 13-202 (c), from active regulatory oversight to the extent it finds, after notice, hearing and comment that such exclusion is consistent with the public interest and the purposes and policies of this Article. To the extent that the Commission has excluded cellular radio service from active regulatory oversight for any provider of cellular radio service in this State pursuant to this Section, the Commission shall exclude all other providers of cellular radio service in the State from active regulatory oversight without an additional rulemaking proceeding where there are 2 or more certified providers of cellular radio service in a geographic area.

(Source: P.A. 90-185, eff. 7-23-97.)

(220 ILCS 5/13-203.1 new)

Sec. 13-203.1. "Telecommunications" means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.

(220 ILCS 5/13-203.2 new)

Sec. 13-203.2. "Advanced service" means high speed, switched, broadband, wireline telecommunications capability that enables end users to originate and receive high-quality voice, data, graphics or video telecommunications using any technology.

(220 ILCS 5/13-203.3 new)

Sec. 13-203.3. "Broadband service" means lines (or wireless channels) that terminate at an end user location, connect the end user to the Internet, and carry information at the end user location at information transfer rates exceeding 200 kilobits per second ("kbps") in at least one direction.

(220 ILCS 5/13-203.4 new)

Sec. 13-203.4. "Information service" means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service.

(220 ILCS 5/13-203.5 new)

Sec. 13-203.5. "Internet protocol ("IP") enabled service" means services and applications relying on the Internet Protocol family, including the digital communications capabilities of increasingly higher speeds, which use a number of transmission network technologies, and which generally have in common the use of the Internet protocol.

(220 ILCS 5/13-203.6 new)

Sec. 13-203.6. "Customer premises equipment" means equipment employed on the premises of a person (other than a carrier) to originate, route, or terminate telecommunications.

(220 ILCS 5/13-204) (from Ch. 111 2/3, par. 13-204)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-204. "Local Exchange Telecommunications Service" means telecommunications service between points within an exchange, as defined in Section 13-206, or the provision of telecommunications service for the origination or termination of switched telecommunications services, but does not include public mobile services.

(Source: P.A. 84-1063.)

(220 ILCS 5/13-204.5 new)

Sec. 13-204.5. "Intrastate switched access service" means access to the switched network of a telecommunications carrier for the purpose of originating or terminating communications between points within the State of Illinois.

(220 ILCS 5/13-205) (from Ch. 111 2/3, par. 13-205)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-205. "Interexchange Telecommunications Service" means telecommunications service between points in two or more exchanges, but does not include public mobile services.

(Source: P.A. 84-1063.)

(220 ILCS 5/13-209) (from Ch. 111 2/3, par. 13-209)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-209. "Competitive Telecommunications Service" means (i) a telecommunications service, its functional equivalent or a substitute service, which, for some identifiable class or group of customers in an exchange, group of exchanges, or some other clearly defined geographical area, is reasonably available from more than one provider, whether or not such provider is a telecommunications carrier subject to regulation under this Act or (ii) any other telecommunications service classified as competitive under this Article. A telecommunications service may be competitive for the entire state, some geographical area therein, including an exchange or set of exchanges, or for a specific customer or class or group of customers, but only to the extent consistent with this definition.

(Source: P.A. 84-1063.)

(220 ILCS 5/13-214) (from Ch. 111 2/3, par. 13-214)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-214. (a) "Public mobile services" means air-to-ground radio telephone services, cellular radio telecommunications services, offshore radio, rural radio service, public land mobile telephone service, and commercial mobile services, as defined in 47 U.S.C. Section 332(d)(1) and other common carrier radio communications services.

(b) "Private radio services" means private land mobile radio services and other communications services characterized by the Commission as private radio services.

(Source: P.A. 85-1405.)

(220 ILCS 5/13-216)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-216. Network element. "Network element" means a facility or equipment used in the provision of a telecommunications service. The term also includes features, functions, and capabilities that are provided by means of the facility or equipment, including, but not limited to, subscriber numbers, databases, signaling systems, and information sufficient for billing and collection or used in the transmission, routing, or other provision of a telecommunications service.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-301) (from Ch. 111 2/3, par. 13-301)

(Section scheduled to be repealed on July 1, 2005)

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) (Blank); 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 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 whose economic costs of providing services for which universal service support may be made available exceed the affordable rate established by the Commission for such services may be eligible to 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; 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 public mobile service providers 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.

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 to residential end users shall provide annually to its residential end users, or post on its website, a list of its local exchange telecommunications service offerings available to its residential end users , 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. 91-636, eff. 8-20-99.)

(220 ILCS 5/13-305)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-305. Amount of civil penalty. A telecommunications carrier, any corporation other than a telecommunications carrier, or any person acting as a telecommunications carrier that violates or fails to comply with any provisions of this Act or that fails to obey, observe, or comply with any order, decision, rule, regulation, direction, or requirement, or any part or provision thereof, of the Commission, made or issued under authority of this Act, in a case in which a civil penalty is not otherwise provided for in this Act, but excepting Section 5-202 of the Act, shall be subject to a civil penalty imposed in the manner provided in Section 13-304 of no more than $30,000 or 0.00825% of the carrier's gross intrastate annual telecommunications revenue, whichever is greater, for each offense unless the violator has fewer than 35,000 subscriber access lines, in which case the civil penalty may not exceed $2,000 for each offense.

Notwithstanding any other provision of this Section or Article, if any telecommunications carrier subject to an alternative form of regulation plan that was adopted by the Commission prior to the effective date of this amendatory Act of the 94th General Assembly violates the retail service quality rules promulgated by the Commission pursuant to Section 13-712 or pursuant to such alternative form of regulation plan, the Commission may impose, for any such violation by such telecommunications carrier, maximum civil penalties of up to $33,000 or 0.00908% of such telecommunications carrier's gross intrastate annual telecommunications revenue, whichever is greater. This provision for a violation by a telecommunications carrier subject to an alternative form of regulation plan as of the effective date of this amendatory Act of the 94th General Assembly shall remain in force and effect through July 1, 2008.

A telecommunications carrier subject to administrative penalties resulting from a final Commission order approving an intercorporate transaction entered pursuant to Section 7-204 of this Act shall be subject to penalties under this Section imposed for the same conduct only to the extent that such penalties exceed those imposed by the final Commission order.

Every violation of the provisions of this Act or of any order, decision, rule, regulation, direction, or requirement of the Commission, or any part or provision thereof, by any corporation or person, is a separate and distinct offense. Penalties under this Section shall attach and begin to accrue from the day after written notice is delivered to such party or parties that they are in violation of or have failed to comply with this Act or an order, decision, rule, regulation, direction, or requirement of the Commission, or part or provision thereof. In case of a continuing violation, each day's continuance thereof shall be a separate and distinct offense.

In construing and enforcing the provisions of this Act relating to penalties, the act, omission, or failure of any officer, agent, or employee of any telecommunications carrier or of any person acting within the scope of his or her duties or employment shall in every case be deemed to be the act, omission, or failure of such telecommunications carrier or person.

If the party who has violated or failed to comply with this Act or an order, decision, rule, regulation, direction, or requirement of the Commission, or any part or provision thereof, fails to seek timely review pursuant to Sections 10-113 and 10-201 of this Act, the party shall, upon expiration of the statutory time limit, be subject to the civil penalty provision of this Section.

Twenty percent of all moneys collected under this Section shall be deposited into the Digital Divide Elimination Fund and 20% of all moneys collected under this Section shall be deposited into the Digital Divide Elimination Infrastructure Fund.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-400 new)

Sec. 13-400. Commission jurisdiction prohibited.

(a) The Commission shall not exercise jurisdiction over:

(1) advanced services, as defined in Section 13-203.2;

(2) broadband service, as defined in Section 13-203.3;

(3) any retail service not commercially available on the effective date of this amendatory Act of the 94th General Assembly;

(4) information services, as defined in Section 13-203.4;

(5) Internet protocol ("IP") enabled services, as defined in Section 13-203.5; and

(6) customer premises equipment, as defined in Section 13-203.6.

(b) Notwithstanding the provisions of subsection (a), the Commission shall have jurisdiction to the extent that it has been specifically delegated to the Commission by the Telecommunications Act of 1996 or any successors or amendments thereof or by orders of and regulations promulgated by the Federal Communications Commission.

(220 ILCS 5/13-401) (from Ch. 111 2/3, par. 13-401)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-401. Certificate of Service Authority.

(a) No telecommunications carrier not possessing a certificate of public convenience and necessity or certificate of authority from the Commission at the time this Article goes into effect shall transact any business in this State until it shall have obtained a certificate of service authority from the Commission pursuant to the provisions of this Article.

No telecommunications carrier offering or providing, or seeking to offer or provide, any interexchange telecommunications service shall do so until it has applied for and received a Certificate of Interexchange Service Authority pursuant to the provisions of Section 13-403. No telecommunications carrier offering or providing, or seeking to offer or provide, any local exchange telecommunications service shall do so until it has applied for and received a Certificate of Exchange Service Authority pursuant to the provisions of Section 13-405.

Notwithstanding Sections 13-403, 13-404, and 13-405, the Commission shall approve a cellular radio application for a Certificate of Service Authority without a hearing upon a showing by the cellular applicant that the Federal Communications Commission has issued to it a construction permit or an operating license to construct or operate a cellular radio system in the area as defined by the Federal Communications Commission, or portion of the area, for which the carrier seeks a Certificate of Service Authority.

No Certificate of Service Authority issued by the Commission shall be construed as granting a monopoly or exclusive privilege, immunity or franchise. The issuance of a Certificate of Service Authority to any telecommunications carrier shall not preclude the Commission from issuing additional Certificates of Service Authority to other telecommunications carriers providing the same or equivalent service or serving the same geographical area or customers as any previously certified carrier, except to the extent otherwise provided by Sections 13-403 and 13-405.

Any certificate of public convenience and necessity granted by the Commission to a telecommunications carrier prior to the effective date of this Article shall remain in full force and effect, and such carriers need not apply for a Certificate of Service Authority in order to continue offering or providing service to the extent authorized in such certificate of public convenience and necessity. Any such carrier, however, prior to substantially altering the nature or scope of services provided under a certificate of public convenience and necessity, or adding or expanding services beyond the authority contained in such certificate, must apply for a Certificate of Service Authority for such alterations or additions pursuant to the provisions of this Article.

The Commission shall review and modify the terms of any certificate of public convenience and necessity issued to a telecommunications carrier prior to the effective date of this Article in order to ensure its conformity with the requirements and policies of this Article. Any Certificate of Service Authority may be altered or modified by the Commission, after notice and hearing, upon its own motion or upon application of the person or company affected. Unless exercised within a period of two years from the issuance thereof, authority conferred by a Certificate of Service Authority shall be null and void.

(b) The Commission may issue a temporary Certificate which shall remain in force not to exceed one year in cases of emergency, to assure maintenance of adequate service or to serve particular customers, without notice and hearing, pending the determination of an application for a Certificate, and may by regulation exempt from the requirements of this Section temporary acts or operations for which the issuance of a certificate is not necessary in the public interest and which will not be required therefor.

(Source: P.A. 87-856.)

(220 ILCS 5/13-403) (from Ch. 111 2/3, par. 13-403)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-403. Interexchange service authority; approval. The Commission shall approve an application for a Certificate of Interexchange Service Authority only upon a showing by the applicant, and a finding by the Commission, after notice and hearing, that the applicant possesses sufficient technical, financial and managerial resources and abilities to provide interexchange telecommunications service. The removal from this Section of the dialing restrictions by this amendatory Act of 1992 does not create any legislative presumption for or against intra-Market Service Area presubscription or changes in intra-Market Service Area dialing arrangements related to the implementation of that presubscription, but simply vests jurisdiction in the Illinois Commerce Commission to consider after notice and hearing the issue of presubscription in accordance with the policy goals outlined in Section 13-103.

The Commission shall have authority to alter the boundaries of Market Service Areas when such alteration is consistent with the public interest and the purposes and policies of this Article. A determination by the Commission with respect to Market Service Area boundaries shall not modify or affect the rights or obligations of any telecommunications carrier with respect to any consent decree or agreement with the United States Department of Justice, including, but not limited to, the Modification of Final Judgment in United States v. Western Electric Co., 552 F. Supp. 131 (D.D.C. 1982), as modified from time to time.

(Source: P.A. 91-357, eff. 7-29-99.)

(220 ILCS 5/13-406) (from Ch. 111 2/3, par. 13-406)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-406. No telecommunications carrier offering or providing noncompetitive telecommunications service pursuant to a valid Certificate of Service Authority or certificate of public convenience and necessity or price-capped competitive telecommunications service pursuant to subsection (b) of 13-506.1 shall discontinue or abandon such service once initiated until and unless it shall demonstrate, and the Commission finds, after notice and hearing, that such discontinuance or abandonment will not deprive customers of any necessary or essential telecommunications service or access thereto and is not otherwise contrary to the public interest. No telecommunications carrier offering or providing competitive telecommunications service shall discontinue or abandon such service once initiated except upon 30 days notice to the Commission and affected customers. The Commission may, upon its own motion or upon complaint, investigate the proposed discontinuance or abandonment of a competitive telecommunications service and may, after notice and hearing, prohibit such proposed discontinuance or abandonment if the Commission finds that it would be contrary to the public interest.

(Source: P.A. 84-1063.)

(220 ILCS 5/13-407) (from Ch. 111 2/3, par. 13-407)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-407. Commission study and report. The Commission shall monitor and analyze patterns of entry and exit and changes in patterns of entry and exit for each relevant market for telecommunications services, including emerging high speed telecommunications markets and all services defined in Sections 13-203.2, 13-203.3, 13-203.4, and 13-203.5, and shall include its findings together with appropriate recommendations for legislative action in its annual report to the General Assembly.

The Commission shall also monitor and analyze the status of deployment of services to consumers, and any resulting "digital divisions" between consumers, including any changes or trends therein. The Commission shall include its findings together with appropriate recommendations for legislative action in its annual report to the General Assembly. In preparing this analysis the Commission shall evaluate information provided by telecommunications carriers that pertains to the state of competition in telecommunications markets including, but not limited to:

(1) the number and type of firms providing communications telecommunications services, including the services defined in Sections 13-203.2, 13-203.3, and 13-203.5 broadband telecommunications services, within the State;

(2) the communications telecommunications services offered by these firms to both retail and wholesale customers;

(3) the extent to which customers and other providers are purchasing the firms' communications telecommunications services;

(4) the technologies or methods by which these firms provide these services, including descriptions of technologies in place and under development, and the degree to which firms rely on other wholesale providers to provide service to their own customers; and

(5) the tariffed retail and wholesale prices for services provided by these firms.

The Commission shall at a minimum assess the variability in this information according to geography, examining variability by exchange, wirecenter, or zip code, and by customer class, examining, at a minimum, the variability between residential and small, medium, and large business customers. The Commission shall provide an analysis of market trends by collecting this information from firms providing communications telecommunications services within the State. The Commission shall also collect all information, in a format determined by the Commission, that the Commission deems necessary to assist in monitoring and analyzing the communications telecommunications markets and the status of competition and deployment of communications telecommunications services to consumers in the State.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-501) (from Ch. 111 2/3, par. 13-501)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-501. Tariff; filing.

(a) No telecommunications carrier shall offer or provide telecommunications service to a residential end user unless and until a tariff is filed with the Commission which describes the nature of the service, applicable rates and other charges, terms and conditions of service, and the exchange, exchanges or other geographical area or areas in which the service shall be offered or provided. The Commission may prescribe the form of such tariff regarding a telecommunications service offered or provided to a residential end user and any additional data or information which shall be included therein. A telecommunications carrier that offers or provides a telecommunications service to business end users may file a tariff with the Commission that describes the nature of the service, applicable rates and other charges, terms and conditions of service, and the exchange, exchanges or other geographical area or areas in which the service will be offered or provided.

(b) After a hearing on noncompetitive services or a hearing pursuant to subsection (d) of Section 13-505 for competitive services, the Commission has the discretion to impose an interim or permanent tariff on a telecommunications carrier as part of the order in the case. When a tariff is imposed as part of the order in a case, the tariff shall remain in full force and effect until a compliance tariff, or superseding tariff, is filed by the telecommunications carrier and, after notice to the parties in the case and after a compliance hearing is held, is found by the Commission to be in compliance with the Commission's order.

(c) Nothing in this Section shall be construed to require a telecommunications carrier to tariff special equipment and service arrangements when provided to meet the unique telecommunications services requirements of a small number of customers.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-502) (from Ch. 111 2/3, par. 13-502)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-502. Classification of services.

(a) All telecommunications services offered or provided under tariff by telecommunications carriers shall be classified as either competitive or noncompetitive. A telecommunications carrier may offer or provide either competitive or noncompetitive telecommunications services, or both, subject to proper certification and other applicable provisions of this Article. Any tariff filed with the Commission as required by Section 13-501 shall indicate whether the service to be offered or provided is competitive or noncompetitive.

(a-5) All telecommunications services offered or provided by any telecommunications carrier, including, without limitation, all existing or future telecommunications services, facilities, features, or functionalities, shall be classified as competitive as of the effective date of this amendatory Act of the 94th General Assembly without further Commission review, except as provided in this subsection. The competitive classification provided in this subsection shall apply to the telecommunications services offered or provided by any telecommunications carrier that, on or after the effective date of this amendatory Act of the 94th General Assembly, has entered into an approved interconnection agreement with one or more unaffiliated competitive carriers as a result of negotiations or arbitrations, pursuant to the provisions of Section 251 of the federal Telecommunications Act of 1996 or any successors or amendments thereof.

(b) For a telecommunications carrier that has not entered into an approved interconnection agreement in accordance with subsection (a-5), a A service shall be classified as competitive only if, and only to the extent that, for some identifiable class or group of customers in an exchange, group of exchanges, or some other clearly defined geographical area, such service, or its functional equivalent, or a substitute service, is reasonably available from more than one provider, whether or not any such provider is a telecommunications carrier subject to regulation under this Act. All telecommunications services not properly classified as competitive shall be classified as noncompetitive. The Commission shall have the power to investigate the propriety of any classification of a telecommunications service on its own motion and shall investigate upon complaint. In any hearing or investigation, the burden of proof as to the proper classification of any service shall rest upon the telecommunications carrier providing the service. After notice and hearing, the Commission shall order the proper classification of any service in whole or in part. The Commission shall make its determination and issue its final order no later than 180 days from the date such hearing or investigation is initiated. If the Commission enters into a hearing upon complaint and if the Commission fails to issue an order within that period, the complaint shall be deemed granted unless the Commission, the complainant, and the telecommunications carrier providing the service agree to extend the time period.

(c) In determining whether a service should be reclassified as competitive for carriers subject to subsection (b), the Commission shall, at a minimum, consider the following factors:

(1) the number, size, and geographic distribution of other providers of the service;

(2) the availability of functionally equivalent services in the relevant geographic area and the ability of telecommunications carriers or other persons to make the same, equivalent, or substitutable service readily available in the relevant market at comparable rates, terms, and conditions;

(3) the existence of economic, technological, or any other barriers to entry into, or exit from, the relevant market;

(4) the extent to which other telecommunications companies must rely upon the service of another telecommunications carrier to provide telecommunications service; and

(5) any other factors that may affect competition and the public interest that the Commission deems appropriate.

(d) No tariff classifying a new telecommunications service as competitive or reclassifying a previously noncompetitive telecommunications service as competitive, which is filed by a telecommunications carrier subject to subsection (b) which also offers or provides noncompetitive telecommunications service, shall be effective unless and until such telecommunications carrier offering or providing, or seeking to offer or provide, such proposed competitive service prepares and files a study of the long-run service incremental cost underlying such service and demonstrates that the tariffed rates and charges for the service and any relevant group of services that includes the proposed competitive service and for which resources are used in common solely by that group of services are not less than the long-run service incremental cost of providing the service and each relevant group of services. Such study shall be given proprietary treatment by the Commission at the request of such carrier if any other provider of the competitive service, its functional equivalent, or a substitute service in the geographical area described by the proposed tariff has not filed, or has not been required to file, such a study.

(e) In the event any telecommunications service has been classified and filed as competitive by the telecommunications carrier, and has been offered or provided on such basis, and the Commission subsequently determines after investigation that such classification improperly included services which were in fact noncompetitive, the Commission shall have the power to determine and order refunds to customers for any overcharges which may have resulted from the improper classification, or to order such other remedies provided to it under this Act, or to seek an appropriate remedy or relief in a court of competent jurisdiction. This subsection (e) does not apply to any telecommunications services that have been classified as competitive pursuant to subsection (a-5).

(f) If no hearing or investigation regarding the propriety of a competitive classification of a telecommunications service is initiated within 180 days after a telecommunications carrier files a tariff listing such telecommunications service as competitive, no refunds to customers for any overcharges which may result from an improper classification shall be ordered for the period from the time the telecommunications carrier filed such tariff listing the service as competitive up to the time an investigation of the service classification is initiated by the Commission's own motion or the filing of a complaint. Where a hearing or an investigation regarding the propriety of a telecommunications service classification as competitive is initiated after 180 days from the filing of the tariff, the period subject to refund for improper classification shall begin on the date such investigation or hearing is initiated by the filing of a Commission motion or a complaint. This subsection (f) does not apply to any telecommunications services that have been classified as competitive pursuant to subsection (a-5).

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-504) (from Ch. 111 2/3, par. 13-504)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-504. Application of ratemaking provisions of Article IX.

(a) Except where the context clearly renders such provisions inapplicable, the ratemaking provisions of Article IX of this Act relating to public utilities are fully and equally applicable to the rates, charges, tariffs and classifications for the offer or provision of noncompetitive telecommunications services. However, the ratemaking provisions do not apply to any proposed change in rates or charges, any proposed change in any classification or tariff resulting in a change in rates or charges, or the establishment of new services and rates therefor for a noncompetitive local exchange telecommunications service offered or provided by a local exchange telecommunications carrier with no more than 35,000 subscriber access lines. Proposed changes in rates, charges, classifications, or tariffs meeting these criteria shall be permitted upon the filing of the proposed tariff and 30 days notice to the Commission and all potentially affected customers. The proposed changes shall not be subject to suspension. The Commission shall investigate whether any proposed change is just and reasonable only if a telecommunications carrier that is a customer of the local exchange telecommunications carrier or 10% of the potentially affected access line subscribers of the local exchange telecommunications carrier shall file a petition or complaint requesting an investigation of the proposed changes. When the telecommunications carrier or 10% of the potentially affected access line subscribers of a local exchange telecommunications carrier file a complaint, the Commission shall, after notice and hearing, have the power and duty to establish the rates, charges, classifications, or tariffs it finds to be just and reasonable.

(b) Subsection (c) of Section 13-502 and Sections 13-505.1, 13-505.4, 13-505.6, and 13-507 of this Article do not apply to rates or charges or proposed changes in rates or charges for applicable competitive or interexchange services when offered or provided by a local exchange telecommunications carrier with no more than 35,000 subscriber access lines. In addition, Sections 13-514, 13-515, and 13-516 do not apply to telecommunications carriers with no more than 35,000 subscriber access lines. The Commission may require telecommunications carriers with no more than 35,000 subscriber access lines to furnish information that the Commission deems necessary for a determination that rates and charges for any competitive telecommunications service are just and reasonable.

(c) For a local exchange telecommunications carrier with no more than 35,000 access lines, the Commission shall consider and adjust, as appropriate, a local exchange telecommunications carrier's depreciation rates only in ratemaking proceedings.

(d) Article VI and Sections 7-101 and 7-102 of Article VII of this Act pertaining to public utilities, public utility rates and services, and the regulation thereof are not applicable to local exchange telecommunication carriers with no more than 35,000 subscriber access lines.

(Source: P.A. 89-139, eff. 1-1-96; 90-185, eff. 7-23-97.)

(220 ILCS 5/13-505) (from Ch. 111 2/3, par. 13-505)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-505. Price Rate changes and cost studies ; competitive services.

(a) Any proposed increase or decrease in rates or charges, or proposed change in any classification or tariff resulting in an increase or decrease in rates or charges, for a competitive telecommunications service shall be effective permitted upon the filing of the proposed rate, charge, classification, or tariff. Prior notice of an increase shall be given to all potentially affected customers by mail, publication in a newspaper of general circulation, or equivalent means of notice.

(b) Notwithstanding any of the other provisions in Section 9-201 or Section 13-504, as applicable, any proposed increase or decrease in the rates or charges of non-competitive telecommunications services shall be effective 15 days after filing with the Commission. Prior notice of an increase or decrease shall be given to all potentially affected customers by mail, publication in a newspaper of general circulation, or equivalent means of notice. If a hearing is held pursuant to Section 9-250 regarding the reasonableness of an increase in the rates or charges of a competitive local exchange service, then the telecommunications carrier providing the service shall have the burden of proof to establish the justness and reasonableness of the proposed rate or charge.

(c) The Commission shall not require a cost study to be filed for the following: (i) any statutory reclassification of a service pursuant to subsection (a-5) of Section 13-502 of this Article; (ii) any price increase for any competitive or noncompetitive telecommunications service; (iii) any retail service package filed pursuant to Section 13-518.1 or any price increase or decrease to such service package; or (iv) any new retail service offering, including new or revised features and functionalities of an existing service.

(d) For price changes other than those described in subsection (c) above, no cost study shall be required unless: (i) upon the written complaint to the Commission by a telecommunications carrier that offers a competing telecommunications service to the telecommunications service for which the price is being changed; and (ii) if the Commission has a reasonable basis to believe that the changed price for such telecommunications service may not exceed the long-run service incremental cost of such service, the Commission shall provide notice in writing to the telecommunications carrier offering such service of the basis for that belief. The telecommunications carrier shall respond in writing within 21 days and shall indicate whether the price exceeds long-run service incremental cost or whether that price is being offered to meet an offer to end users by a competing telecommunications carrier or to meet an offer made to a former end user that has accepted an offer for that service from a competing telecommunications carrier. If the telecommunications carrier responds that the price is being offered to meet the price of a competitor, then the telecommunications carrier shall provide the price being offered by the competitor and a description of the product or service being provided by the competitor at that price. The Commission shall not take any further regulatory action if the telecommunications carrier demonstrates that the price is being offered to meet an offer to end users by a competing telecommunications carrier or to meet an offer made to a former end user that has accepted an offer for that service from a competing telecommunications carrier. If, after receiving the telecommunications carrier's response, the Commission has a reasonable basis to conclude that the disputed price does not exceed the long-run service incremental cost of such service and that the price is not being offered to meet an offer to end users by a competing telecommunications carrier or to a former end user that has accepted an offer for that service from a competing telecommunications carrier, the Commission may initiate a proceeding to investigate the reasonableness of the price. The telecommunications carrier shall provide a cost study to the Commission within 28 days of a request made by the Commission during such proceeding. If, after notice and hearing, the Commission determines that such disputed price does not exceed the long-run service incremental cost of such service and that the price is not being offered in response to an offer to end users by a competing telecommunications carrier or to a former end user that has accepted an offer for that service from a competing telecommunications carrier, it shall order the telecommunications carrier to adjust such disputed price so that the revised price recovers the long-run service incremental cost of such service.

(c) Nothing in this Section shall be construed to limit any telecommunications carrier's ability to bring an action under other applicable law.

(Source: P.A. 90-185, eff. 7-23-97.)

(220 ILCS 5/13-506)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-506. Tariffs for competitive telecommunications services.

(a) Telecommunications carriers may file proposed tariffs for any competitive telecommunications service which includes and specifically describes a range, band, formula, or standard within which or by which a change in rates or charges for such telecommunications service could be made without prior notice or prior Commission approval, provided that any and all rates or charges within the band or range, or determinable by the operation of the formula or standard, are consistent with the public interest and the purpose and policies of this Article and Act, and are likely to remain so for the foreseeable future. To the extent any proposed band or range encompasses rates or charges which are not consistent with the public interest and the purposes and policies of this Article and Act or otherwise fully proper, or any proposed formula or standard determines rates or charges which are not consistent with the purposes and policies of this Article and Act or otherwise fully proper, the Commission after notice and hearing shall have the power to modify the level, scope, or limits of such band or range, and to modify or limit the operation of such formula or standard, as necessary, to ensure that rates or charges resulting therefrom are consistent with the purposes and policies of this Article and Act and fully proper, and likely to remain so in the foreseeable future.

(b) (Blank). The Commission may require a telecommunications carrier to file a variable tariff as described in paragraph (a) for any or all competitive telecommunications services which are offered or provided by such carrier, if the Commission finds, after notice and hearing, that the determination of rates or charges for such service by a tariff would improve the Commission's ability to effectively regulate such rates or charges and that such improvement is required by the public interest. Any such tariff required by the Commission shall be approved only if it is also consistent with the provisions of paragraph (a) of this Section.

(c) After a tariff filed pursuant to this Section becomes effective, the telecommunications carrier shall determine the rates and charges for services according to the provisions thereof.

(Source: P.A. 90-185, eff. 7-23-97; 90-574, eff. 3-20-98; 90-655, eff. 7-30-98.)

(220 ILCS 5/13-506.1) (from Ch. 111 2/3, par. 13-506.1)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-506.1. Alternative form forms of regulation for noncompetitive services.

(a) In addition to the provisions of this Article, the services classified as competitive pursuant to subsection (a-5) of Section 13-502 of this Article under this amendatory Act of the 94th General Assembly and offered or provided by any qualifying telecommunications carrier, as defined in this Section, shall also be subject to the ratemaking provisions of Article IX or Section 13-504, as applicable, unless the carrier offering the competitively classified services elects to be subject to the provisions of this Section. Notwithstanding any of the ratemaking provisions of this Article or Article IX that are deemed to require rate of return regulation, the Upon providing notice to the Commission pursuant to subsection (b), a qualifying telecommunications carrier shall be subject to may implement an alternative form forms of regulation in the form of a rate moratorium plan, as defined in this Section, which is hereinafter referred to as the basic dial tone protection plan. in order to establish just and reasonable rates for noncompetitive telecommunications services including, but not limited to, price regulation, earnings sharing, rate moratoria, or a network modernization plan. The Commission is authorized to adopt different forms of regulation to fit the particular characteristics of different telecommunications carriers and their service areas.

The General Assembly finds and declares that such a basic dial tone protection plan meets In addition to the public policy goals declared in Section 13-103 and the goals of this Section to: , the Commission shall consider, in determining the appropriateness of any alternative form of regulation, whether it will:

(1) recognize the significant level of retail competition in the communications industry and the convergence of technologies; reduce regulatory delay and costs over time;

(2) adopt a more appropriate form of regulation;

(3) (2) encourage innovation in services;

(4) (3) promote efficiency;

(5) (4) facilitate the broad dissemination of technical improvements to all end users classes of ratepayers;

(6) (5) enhance economic development of the State; and

(7) (6) provide for market-based pricing of retail telecommunications services in a competitive communications environment. fair, just, and reasonable rates.

(b) A telecommunications carrier providing noncompetitive telecommunications services may petition the Commission to regulate the rates or charges of its noncompetitive services under an alternative form of regulation. The telecommunications carrier shall submit with its petition its plan for an alternative form of regulation. The Commission shall review and may modify or reject the carrier's proposed plan. The Commission also may initiate consideration of alternative forms of regulation for a telecommunications carrier on its own motion. The Commission may approve the plan or modified plan and authorize its implementation only if it finds, after notice and hearing, that the plan or modified plan at a minimum:

The General Assembly further finds that such a plan:

(1) is in the public interest;

(2) will produce fair, just, and reasonable rates for telecommunications services;

(3) responds to changes in technology and the structure of the telecommunications industry that are, in fact, occurring;

(4) constitutes a more appropriate form of regulation based on the Commission's overall consideration of the policy goals set forth in Section 13-103 and this Section;

(5) specifically identifies how ratepayers will benefit from any efficiency gains, cost savings arising out of the regulatory change, and improvements in productivity due to technological change;

(2) (6) will maintain the quality and availability of retail telecommunications services; and

(3) (7) will not unduly or unreasonably prejudice or disadvantage any particular customer class, including non-qualifying telecommunications carriers.

(b) Any qualifying telecommunications carrier may elect to be governed under a rate moratorium alternative form of regulation that consists of the provisions contained in the provisions of this subsection (b) upon providing notice to the Commission that it elects to do so. A rate moratorium alternative form of regulation plan that contains the provisions of this subsection (b) shall become effective 30 days after notice is provided by any qualifying telecommunications carrier to the Commission. During that 30 day period, the qualifying telecommunications carrier shall remain subject to the form of regulation that it was under on the date that it provided notice to the Commission. The rate moratorium alternative form of regulation plan authorized by this subsection (b) shall consist of the following provisions:

(1) All price-capped competitive telecommunications services, as defined in this Section, offered or provided by any qualifying telecommunications carrier shall be included in the basic dial tone protection plan. All other competitive telecommunications services shall be excluded from such plan.

(2) The rates for price-capped competitive telecommunications services shall not exceed the rates that the telecommunications carrier charged for those services on February 1, 2005; this restriction upon the rates of such price-capped competitive telecommunications services shall remain in full force and effect through July 1, 2008; provided, however, that nothing shall be construed to prohibit reduction of those rates;

(3) Notwithstanding any other provision in this Section or Article, a telecommunications carrier that elects to be subject to a dial tone protection plan pursuant to this Section shall continue to offer the price-capped competitive telecommunications services at all times through July 1, 2008;

(4) Notwithstanding any other provision in this Section or Article, any residential end user may elect to purchase price-capped competitive telecommunications service at any time through July 1, 2008 and, to the extent that such residential end user elects to change service from a retail service package not subject to such dial tone protection plan to price-capped competitive telecommunications service, any applicable termination provisions of the retail service package shall apply, but only if such residential end user has been clearly informed of the existence of any term and termination fees at the time such residential end user ordered such service package; and

(5) No other terms from any plan adopted under prior Commission authority shall be required under subsection (b), except to the extent set forth in Section 13-712 (e-10) regarding retail service quality measures, exclusions, calculations, and standards for any telecommunications carrier subject to an alternative form of regulation plan on the effective date of this amendatory Act of the 94th General Assembly.

(c) For purposes of subsection (b) of this Section: (i) "price-capped competitive telecommunications service" means the stand-alone primary residence network access lines, along with any associated untimed local usage charged on a per-call basis and not subject to presubscription (for purposes of this subsection, a primary residence network access line with such usage shall be considered a stand-alone offering subject to price cap, notwithstanding the purchase by the customer of additional service elements, features or functionalities for such line, so long as such additional service elements, features, or functionalities are purchased on an individual basis, and not as part of a service package, the additional service elements, features, or functionalities for such line shall not be subject to price cap); and (ii) a "qualifying telecommunications carrier" is any incumbent local exchange carrier that has entered into an approved interconnection agreement with one or more unaffiliated competitive carriers as a result of negotiations or arbitration pursuant to the provisions of Section 251 of the federal Telecommunications Act of 1996 or any successors or amendments thereof.

(c) An alternative regulation plan approved under this Section shall provide, as a condition for Commission approval of the plan, that for the first 3 years the plan is in effect, basic residence service rates shall be no higher than those rates in effect 180 days before the filing of the plan. This provision shall not be used as a justification or rationale for an increase in basic service rates for any other customer class. For purposes of this Section, "basic residence service rates" shall mean monthly recurring charges for the telecommunications carrier's lowest priced primary residence network access lines, along with any associated untimed or flat rate local usage charges. Nothing in this subsection (c) shall preclude the Commission from approving an alternative regulation plan that results in rate reductions provided all the requirements of subsection (b) are satisfied by the plan.

(d) Any alternative form of regulation granted for a multi-year period under this Section shall provide for annual or more frequent reporting to the Commission to document that the requirements of the plan are being properly implemented.

(e) Upon petition by the telecommunications carrier or any other person or upon its own motion, the Commission may rescind its approval of an alternative form of regulation if, after notice and hearing, it finds that the conditions set forth in subsection (b) of this Section can no longer be satisfied. Any person may file a complaint alleging that the rates charged by a telecommunications carrier under an alternative form of regulation are unfair, unjust, unreasonable, unduly discriminatory, or are otherwise not consistent with the requirements of this Article; provided, that the complainant shall bear the burden of proving the allegations in the complaint.

(f) Nothing in this Section shall be construed to authorize the Commission to render Sections 9-241, 9-250, and 13-505.2 inapplicable to noncompetitive services.

(Source: P.A. 87-856.)

(220 ILCS 5/13-509) (from Ch. 111 2/3, par. 13-509)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-509. Agreements for provisions of competitive telecommunications services differing from tariffs. A telecommunications carrier may negotiate with customers or prospective customers to provide competitive telecommunications service, and in so doing, may offer or agree to provide such service on such terms and for such rates or charges as are reasonable, without regard to any tariffs it may have filed with the Commission with respect to such services. Within 30 days after executing any such agreement, the telecommunications carrier shall submit to the Commission written notice of a list of any such agreements (which list may be filed electronically). The notice shall identify the general nature of all such agreements, the parties to each agreement, and a general description of differences between each agreement and the related tariff. A copy of each such agreement and any cost support required to be filed with the agreement by some other Section of this Act shall be provided to the Commission within 10 business days after a request for review of the agreement is made by the Commission or is made to the Commission by another telecommunications carrier. Upon submitting notice to the Commission of any such agreement, the telecommunications carrier shall thereafter provide service according to the terms thereof, unless the Commission finds, after notice and hearing, that the continued provision of service pursuant to such agreement would substantially and adversely affect the financial integrity of the telecommunications carrier or would violate any other provision of this Act. This Section does not apply to the provision of competitive telecommunications services offered or provided to business end users by a telecommunications carrier that does not file tariffs for such business services pursuant to Section 13-501.

Any agreement or notice entered into or submitted pursuant to the provisions of this Section may, in the Commission's discretion, be accorded proprietary treatment.

(Source: P.A. 92-22, eff. 6-30-01; 93-245, eff. 7-22-03.)

(220 ILCS 5/13-514)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-514. Prohibited Actions of Telecommunications Carriers. A telecommunications carrier shall not knowingly impede the development of competition in any telecommunications service market. The following prohibited actions are considered per se impediments to the development of competition; however, the Commission is not limited in any manner to these enumerated impediments and may consider other actions which impede competition to be prohibited:

(1) unreasonably refusing or delaying interconnections or collocation or providing inferior connections to another telecommunications carrier;

(2) unreasonably impairing the speed, quality, or efficiency of services used by another telecommunications carrier;

(3) unreasonably denying a request of another provider for information regarding the technical design and features, geographic coverage, information necessary for the design of equipment, and traffic capabilities of the local exchange network except for proprietary information unless such information is subject to a proprietary agreement or protective order;

(4) unreasonably delaying access in connecting another telecommunications carrier to the local exchange network whose product or service requires novel or specialized access requirements;

(5) unreasonably refusing or delaying access by any person to another telecommunications carrier;

(6) unreasonably acting or failing to act in a manner that has a substantial adverse effect on the ability of another telecommunications carrier to provide service to its customers;

(7) unreasonably failing to offer services to customers in a local exchange, where a telecommunications carrier is certificated to provide service and has entered into an interconnection agreement for the provision of local exchange telecommunications services, with the intent to delay or impede the ability of the incumbent local exchange telecommunications carrier to provide inter-LATA telecommunications services;

(8) violating the terms of or unreasonably delaying implementation of an interconnection agreement entered into pursuant to Section 252 of the federal Telecommunications Act of 1996 in a manner that unreasonably delays, increases the cost, or impedes the availability of telecommunications services to consumers;

(9) unreasonably refusing or delaying access to or provision of operation support systems to another telecommunications carrier or providing inferior operation support systems to another telecommunications carrier;

(10) unreasonably failing to offer network elements that the Commission or the Federal Communications Commission has determined must be offered on an unbundled basis to another telecommunications carrier in a manner consistent with the Commission's or Federal Communications Commission's orders or rules requiring such offerings;

(11) violating the obligations of Section 13-801; and

(12) violating an order of the Commission regarding matters between telecommunications carriers.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-515)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-515. Enforcement.

(a) The following expedited procedures shall be used to enforce the provisions of Section 13-514 of this Act. However, the Commission, the complainant, and the respondent may mutually agree to adjust the procedures established in this Section.

(b) (Blank).

(c) No complaint may be filed under this Section until the complainant has first notified the respondent of the alleged violation and offered the respondent 5 business days 48 hours to correct the situation. Provision of notice and the opportunity to correct the situation creates a rebuttable presumption of knowledge under Section 13-514. After the filing of a complaint under this Section, the parties may agree to follow the mediation process under Section 10-101.1 of this Act. The time periods specified in subdivision (d)(7) of this Section shall be tolled during the time spent in mediation under Section 10-101.1.

(d) A telecommunications carrier may file a complaint with the Commission alleging a violation of Section 13-514 in accordance with this subsection:

(1) The complaint shall be filed with the Chief Clerk of the Commission and shall be served in hand upon the respondent, the executive director, and the general counsel of the Commission at the time of the filing.

(2) A complaint filed under this subsection shall include a statement that the requirements of subsection (c) have been fulfilled and that the respondent did not correct the situation as requested.

(3) Reasonable discovery specific to the issue of the complaint may commence upon filing of the complaint. Requests for discovery must be served in hand and responses to discovery must be provided in hand to the requester within 14 days after a request for discovery is made.

(4) An answer and any other responsive pleading to the complaint shall be filed with the Commission and served in hand at the same time upon the complainant, the executive director, and the general counsel of the Commission within 7 days after the date on which the complaint is filed.

(5) If the answer or responsive pleading raises the issue that the complaint violates subsection (i) of this Section, the complainant may file a reply to such allegation within 3 days after actual service of such answer or responsive pleading. Within 4 days after the time for filing a reply has expired, the hearing officer or arbitrator shall either issue a written decision dismissing the complaint as frivolous in violation of subsection (i) of this Section including the reasons for such disposition or shall issue an order directing that the complaint shall proceed.

(6) A pre-hearing conference shall be held within 14 days after the date on which the complaint is filed.

(7) The hearing shall commence within 30 days of the date on which the complaint is filed. The hearing may be conducted by a hearing examiner or by an arbitrator. Parties and the Commission staff shall be entitled to present evidence and legal argument in oral or written form as deemed appropriate by the hearing examiner or arbitrator. The hearing examiner or arbitrator shall issue a written decision within 60 days after the date on which the complaint is filed. The decision shall include reasons for the disposition of the complaint and, if a violation of Section 13-514 is found, directions and a deadline for correction of the violation.

(8) Any party may file a petition requesting the Commission to review the decision of the hearing examiner or arbitrator within 5 days of such decision. Any party may file a response to a petition for review within 3 business days after actual service of the petition. After the time for filing of the petition for review, but no later than 15 days after the decision of the hearing examiner or arbitrator, the Commission shall decide to adopt the decision of the hearing examiner or arbitrator or shall issue its own final order.

(e) If the alleged violation has a substantial adverse effect on the ability of the complainant to provide service to customers, the complainant may include in its complaint a request for an order for emergency relief. The Commission, acting through its designated hearing examiner or arbitrator, shall act upon such a request within 2 business days of the filing of the complaint. An order for emergency relief may be granted, without an evidentiary hearing, upon a verified factual showing that the party seeking relief will likely succeed on the merits, that the party will suffer irreparable harm in its ability to serve customers if emergency relief is not granted, and that the order is in the public interest. An order for emergency relief shall include a finding that the requirements of this subsection have been fulfilled and shall specify the directives that must be fulfilled by the respondent and deadlines for meeting those directives. The decision of the hearing examiner or arbitrator to grant or deny emergency relief shall be considered an order of the Commission unless the Commission enters its own order within 2 calendar days of the decision of the hearing examiner or arbitrator. The order for emergency relief may require the responding party to act or refrain from acting so as to protect the provision of competitive service offerings to customers. Any action required by an emergency relief order must be technically feasible and economically reasonable and the respondent must be given a reasonable period of time to comply with the order.

(f) The Commission is authorized to obtain outside resources including, but not limited to, arbitrators and consultants for the purposes of the hearings authorized by this Section. Any arbitrator or consultant obtained by the Commission shall be approved by both parties to the hearing. The cost of such outside resources including, but not limited to, arbitrators and consultants shall be borne by the parties. The Commission shall review the bill for reasonableness and assess the parties for reasonable costs dividing the costs according to the resolution of the complaint brought under this Section. Such costs shall be paid by the parties directly to the arbitrators, consultants, and other providers of outside resources within 60 days after receiving notice of the assessments from the Commission. Interest at the statutory rate shall accrue after expiration of the 60-day period. The Commission, arbitrators, consultants, or other providers of outside resources may apply to a court of competent jurisdiction for an order requiring payment.

(g) The Commission shall assess the parties under this subsection for all of the Commission's costs of investigation and conduct of the proceedings brought under this Section including, but not limited to, the prorated salaries of staff, attorneys, hearing examiners, and support personnel and including any travel and per diem, directly attributable to the complaint brought pursuant to this Section, but excluding those costs provided for in subsection (f), dividing the costs according to the resolution of the complaint brought under this Section. All assessments made under this subsection shall be paid into the Public Utility Fund within 60 days after receiving notice of the assessments from the Commission. Interest at the statutory rate shall accrue after the expiration of the 60 day period. The Commission is authorized to apply to a court of competent jurisdiction for an order requiring payment.

(h) If the Commission determines that there is an imminent threat to competition or to the public interest, the Commission may, notwithstanding any other provision of this Act, seek temporary, preliminary, or permanent injunctive relief from a court of competent jurisdiction either prior to or after the hearing.

(i) A party shall not bring or defend a proceeding brought under this Section or assert or controvert an issue in a proceeding brought under this Section, unless there is a non-frivolous basis for doing so. By presenting a pleading, written motion, or other paper in complaint or defense of the actions or inaction of a party under this Section, a party is certifying to the Commission that to the best of that party's knowledge, information, and belief, formed after a reasonable inquiry of the subject matter of the complaint or defense, that the complaint or defense is well grounded in law and fact, and under the circumstances:

(1) it is not being presented to harass the other party, cause unnecessary delay in the provision of competitive telecommunications services to consumers, or create needless increases in the cost of litigation; and

(2) the allegations and other factual contentions have evidentiary support or, if specifically so identified, are likely to have evidentiary support after reasonable opportunity for further investigation or discovery as defined herein.

(j) If, after notice and a reasonable opportunity to respond, the Commission determines that subsection (i) has been violated, the Commission shall impose appropriate sanctions upon the party or parties that have violated subsection (i) or are responsible for the violation. The sanctions shall be not more than $30,000, plus the amount of expenses accrued by the Commission for conducting the hearing. Payment of sanctions imposed under this subsection shall be made to the Common School Fund within 30 days of imposition of such sanctions.

(k) An appeal of a Commission Order made pursuant to this Section shall not effectuate a stay of the Order unless a court of competent jurisdiction specifically finds that the party seeking the stay will likely succeed on the merits, that the party will suffer irreparable harm without the stay, and that the stay is in the public interest.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-517)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-517. Provision of advanced telecommunications services.

(a) Every Incumbent Local Exchange Carrier Local Exchange Carrier (telecommunications carrier that offers or provides a noncompetitive telecommunications service) shall offer or provide advanced telecommunications services to not less than 80% of its customers by January 1, 2005. An Incumbent Local Exchange Carrier may satisfy this requirement through services offered or provided by an affiliate.

(b) The Commission is authorized to grant a full or partial waiver of the requirements of this Section upon verified petition of any Incumbent Local Exchange Carrier ("ILEC") which demonstrates that full compliance with the requirements of this Section would be unduly economically burdensome or technically infeasible or otherwise impractical in exchanges with low population density. Notice of any such petition must be given to all potentially affected customers. If no potentially affected customer requests the opportunity for a hearing on the waiver petition, the Commission may, in its discretion, allow the waiver request to take affect without hearing. The Commission shall grant such petition to the extent that, and for such duration as, the Commission determines that such waiver:

(1) is necessary:

(A) to avoid a significant adverse economic impact on users of telecommunications services generally;

(B) to avoid imposing a requirement that is unduly economically burdensome;

(C) to avoid imposing a requirement that is technically infeasible; or

(D) to avoid imposing a requirement that is otherwise impractical to implement in exchanges with low population density; and

(2) is consistent with the public interest, convenience, and necessity.

The Commission shall act upon any petition filed under this subsection within 180 days after receiving such petition. The Commission may by rule establish standards for granting any waiver of the requirements of this Section. The Commission may, upon complaint or on its own motion, hold a hearing to reconsider its grant of a waiver in whole or in part. In the event that the Commission, following hearing, determines that the affected ILEC no longer meets the requirements of item (2) of this subsection, the Commission shall by order rescind such waiver, in whole or in part. In the event and to the degree the Commission rescinds such waiver, the Commission shall establish an implementation schedule for compliance with the requirements of this Section.

(c) As used in this Section, "advanced telecommunications services" means services capable of supporting, in at least one direction, a speed in excess of 200 kilobits per second (kbps) to the network demarcation point at the subscriber's premises.

As used in this Section, "affiliate" means a person that is (directly or indirectly) owned or controlled by, or is under common ownership or control with, another person. As used in this Section, "person" includes an individual, partnership, association, joint stock company, trust, corporation, or limited liability company.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-518.1 new)

Sec. 13-518.1. Retail service packages. Notwithstanding any other provisions of this Act:

(1) A telecommunications carrier may offer retail telecommunications services, both competitive and noncompetitive, and non-regulated services or products, in a package to residential and business end users so long as the total price of such service package exceeds the long-run service incremental cost of the telecommunications services included in the service package. The telecommunications services included in a service package may be offered under the rates, terms and conditions of the service package so long as each of the noncompetitive or price-capped competitive telecommunications services contained within such service package is separately tariffed and offered to end users on a stand-alone basis. To the extent the service package includes non-regulated services or products, the Commission shall have no jurisdiction over the prices, terms or conditions for the offering of such non-regulated services or products nor shall such non-regulated services or products be required to be included in the service package tariff. For purposes of this Section "non-regulated services or products" means anything that is neither a competitive telecommunications service nor a noncompetitive telecommunications service as defined in this Article.

(2) Any retail service package that contains both competitive retail telecommunications services and noncompetitive retail telecommunications services shall be classified as a retail competitive telecommunications service, without further Commission review, so long as each noncompetitive telecommunications service within the package is separately tariffed and offered to end users on a stand-alone basis.

(220 ILCS 5/13-701) (from Ch. 111 2/3, par. 13-701)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-701. Telephone cooperatives; supervision by Commission; annual financial report.

(a) Notwithstanding any other provision of this Act to the contrary, the Commission has no power to supervise or control any telephone cooperative as respects assessment schedules or local service rates made or charged by such a cooperative on a nondiscriminatory basis. In addition, the Commission has no power to inquire into, or require the submission of, the terms, conditions or agreements by or under which telephone cooperatives are financed. A telephone cooperative shall file with the Commission either a copy of the annual financial report required by the Rural Electrification Administration, or the annual financial report required of other public utilities.

(b) Sections 13-712 and 13-713 of this Article do not apply to telephone cooperatives.

(Source: P.A. 84-1063.)

(220 ILCS 5/13-712)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-712. Basic local exchange service quality; customer credits.

(a) It is the intent of the General Assembly that every telecommunications carrier meet minimum service quality standards in providing basic local exchange service on a non-discriminatory basis to all classes of customers.

(b) Definitions:

(1) "Alternative telephone service" means, except where technically impracticable, a wireless telephone capable of making local calls, and may also include, but is not limited to, call forwarding, voice mail, or paging services.

(2) "Basic local exchange service" means residential and business lines used for local exchange telecommunications service as defined in Section 13-204 of this Act, excluding:

(A) services that employ advanced telecommunications capability as defined in Section 706(c)(1) of the federal Telecommunications Act of 1996;

(B) vertical services;

(C) company official lines; and

(D) records work only.

(3) "Link Up" refers to the Link Up Assistance program defined and established at 47 C.F.R. Section 54.411 et seq. as amended.

(c) The Commission shall promulgate service quality rules for basic local exchange service, which may include fines, penalties, customer credits, and other enforcement mechanisms and which shall apply equally to all telecommunications carriers providing basic local exchange service. Each service quality standard in such rules shall be reasonable, and any fines, penalties, customer credits and enforcement mechanisms shall be proportionate to the violation of that service quality standard. In developing such service quality rules, for imposing such fines, penalties, customer credits and other enforcement mechanisms, the Commission shall consider, at a minimum, the carrier's gross annual intrastate revenue; the frequency, duration, and recurrence of the violation; and the relative harm caused to the affected customer or other users of the network. In imposing fines, the Commission shall take into account compensation or credits paid by the telecommunications carrier to its customers pursuant to this Section in compensation for the violation found pursuant to this Section. These rules shall become effective within one year after the effective date of this amendatory Act of the 92nd General Assembly.

(d) The rules shall, at a minimum, require each telecommunications carrier to do all of the following:

(1) Install basic local exchange service within 5 business days after receipt of an order from the customer unless the customer requests an installation date that is beyond 5 business days after placing the order for basic service and to inform the customer of its duty to install service within this timeframe. If installation of service is requested on or by a date more than 5 business days in the future, the telecommunications carrier shall install service by the date requested. A telecommunications carrier offering basic local exchange service utilizing the network or network elements of another carrier shall install new lines for basic local exchange service within 3 business days after provisioning of the line or lines by the carrier whose network or network elements are being utilized is complete. This subdivision (d)(1) does not apply to the migration of a customer between telecommunications carriers, so long as the customer maintains dial tone.

(2) Restore basic local exchange service for a customer within 24 hours of receiving notice that a customer is out of service. This provision applies to service disruptions that occur when a customer switches existing basic local exchange service from one carrier to another.

(3) Keep all repair and installation appointments for basic local exchange service, when a customer premises visit requires a customer to be present.

(4) Inform a customer when a repair or installation appointment requires the customer to be present.

(e) The rules shall include provisions for customers to be credited by the telecommunications carrier for violations of basic local exchange service quality standards as described in subsection (d). The credits shall be applied on the statement issued to the customer for the next monthly billing cycle following the violation or following the discovery of the violation. The performance levels established in subsection (c) are solely for the purposes of consumer credits and shall not be used as performance levels for the purposes of assessing penalties under Section 13-305. At a minimum, the rules shall include the following:

(1) If a carrier fails to repair an out-of-service condition for basic local exchange service within 24 hours, the carrier shall provide a credit to the customer. If the service disruption is for 48 hours or less, the credit must be equal to a pro-rata portion of the monthly recurring charges for all local services disrupted. If the service disruption is for more than 48 hours, but not more than 72 hours, the credit must be equal to at least 33% of one month's recurring charges for all local services disrupted. If the service disruption is for more than 72 hours, but not more than 96 hours, the credit must be equal to at least 67% of one month's recurring charges for all local services disrupted. If the service disruption is for more than 96 hours, but not more than 120 hours, the credit must be equal to one month's recurring charges for all local services disrupted. For each day or portion thereof that the service disruption continues beyond the initial 120-hour period, the carrier shall also provide either alternative telephone service or an additional credit of $20 per day, at the customers option.

(2) If a carrier fails to install basic local exchange service as required under subdivision (d)(1), the carrier shall waive 50% of any installation charges, or in the absence of an installation charge or where installation is pursuant to the Link Up program, the carrier shall provide a credit of $25. If a carrier fails to install service within 10 business days after the service application is placed, or fails to install service within 5 business days after the customer's requested installation date, if the requested date was more than 5 business days after the date of the order, the carrier shall waive 100% of the installation charge, or in the absence of an installation charge or where installation is provided pursuant to the Link Up program, the carrier shall provide a credit of $50. For each day that the failure to install service continues beyond the initial 10 business days, or beyond 5 business days after the customer's requested installation date, if the requested date was more than 5 business days after the date of the order, the carrier shall also provide either alternative telephone service or an additional credit of $20 per day, at the customer's option until service is installed.

(3) If a carrier fails to keep a scheduled repair or installation appointment when a customer premises visit requires a customer to be present, the carrier shall credit the customer $50 per missed appointment. A credit required by this subsection does not apply when the carrier provides the customer with 24-hour notice of its inability to keep the appointment.

(4) If the violation of a basic local exchange service quality standard is caused by a carrier other than the carrier providing retail service to the customer, the carrier providing retail service to the customer shall credit the customer as provided in this Section. The carrier causing the violation shall reimburse the carrier providing retail service the amount credited the customer. When applicable, an interconnection agreement shall govern compensation between the carrier causing the violation, in whole or in part, and the retail carrier providing the credit to the customer.

(5) When alternative telephone service is appropriate, the customer may select one of the alternative telephone services offered by the carrier. The alternative telephone service shall be provided at no cost to the customer for the provision of local service.

(6) Credits required by this subsection do not apply if the violation of a service quality standard:

(i) occurs as a result of a negligent or willful act on the part of the customer;

(ii) occurs as a result of a malfunction of customer-owned telephone equipment or inside wiring;

(iii) occurs as a result of, or is extended by, an emergency situation as defined in Commission rules;

(iv) is extended by the carrier's inability to gain access to the customer's premises due to the customer missing an appointment, provided that the violation is not further extended by the carrier;

(v) occurs as a result of a customer request to change the scheduled appointment, provided that the violation is not further extended by the carrier;

(vi) occurs as a result of a carrier's right to refuse service to a customer as provided in Commission rules; or

(vii) occurs as a result of a lack of facilities where a customer requests service at a geographically remote location, a customer requests service in a geographic area where the carrier is not currently offering service, or there are insufficient facilities to meet the customer's request for service, subject to a carrier's obligation for reasonable facilities planning.

(7) The provisions of this subsection are cumulative and shall not in any way diminish or replace other civil or administrative remedies available to a customer or a class of customers.

(e-5) If a telecommunications carrier that is subject to an alternative form of regulation plan on the effective date of this amendatory Act of the 94th General Assembly fails to comply with the requirements set forth in paragraphs (1), (2), and (3) of subsection (e) regarding basic local exchange service provided to residential end users, the credits to be paid or charges to be waived shall be calculated as set forth in subsection (e), except that any such credits or charges to be waived shall be 10% higher than those set forth in those paragraphs. This subsection shall take effect 6 months after the effective date of this amendatory Act of the 94th General Assembly.

(e-10) Notwithstanding any other provision in this Section or Article, a telecommunications carrier that is subject to an alternative form of regulation plan on the date of the effective date of this amendatory Act of the 94th General Assembly shall be subject to the following conditions if it elects to be subject to a dial tone protection plan pursuant to Section 13-506.1 of this Article:

(1) Such prior alternative regulation telecommunications carrier shall continue to be subject to the retail service quality measures, exclusions, calculations and standards set forth in the Commission's orders in the proceeding in which such plan was adopted, but such telecommunications carrier shall not be subject to any retail service quality-related rate reductions or penalties that may have applied under such plan or the Commission's orders;

(2) To the extent the measures adopted under such an alternative form of regulation plan are also contained in the rules promulgated by the Commission pursuant to this Section, the retail service quality measures, exclusions, calculations and standards adopted pursuant to the Commission's order in the proceeding in which such prior alternative regulation plan was adopted shall apply rather than such rules, except to the extent the service quality standard provided in the rules is more stringent;

(3) Such telecommunications carrier shall also be subject to any measures that are contained in the rules promulgated by the Commission pursuant to this Section that are not measures that are included in such telecommunications carrier's alternative form of regulation plan;

(4) The civil penalties applicable to any violations of items (1) through (3) of this subsection are set forth in Section 13-305; and

(5) Such telecommunications carrier shall report its performance measurement results pursuant to items (1) through (3) of this subsection to the Commission consistent with the requirements of subsection (f) of this Section.

(f) The rules shall require each telecommunications carrier to provide to the Commission, on a quarterly basis and in a form suitable for posting on the Commission's website, a public report that includes performance data for basic local exchange service quality of service. The performance data shall be disaggregated for each geographic area and each customer class of the State for which the telecommunications carrier internally monitored performance data as of a date 120 days preceding the effective date of this amendatory Act of the 92nd General Assembly. The report shall include, at a minimum, performance data on basic local exchange service installations, lines out of service for more than 24 hours, carrier response to customer calls, trouble reports, and missed repair and installation commitments.

(g) The Commission shall establish and implement carrier to carrier wholesale service quality rules and establish remedies to ensure enforcement of the rules. These rules shall become effective within one year after the effective date of this amendatory Act of the 94th General Assembly. The wholesale service quality rules and standards shall be reasonable and any remedies shall be proportionate to the actual damages, if any, to the other telecommunications carrier. Any carrier-to-carrier rules developed by the Commission pursuant to this subsection shall: (1) not exceed the duties imposed on telecommunications carriers pursuant to Section 251 of the federal Telecommunications Act of 1996 and regulations promulgated thereunder or any amendments and successors thereof; (2) only relate to basic local exchange service to end users and shall specify the terms and conditions regarding the transfer of customer information, telephone numbers, and required unbundled network elements when a basic local exchange end user customer transfers from one telecommunications carrier to another telecommunications carrier; (3) apply equally to any telecommunications carrier providing basic local exchange service; (4) include no more than 12 performance measures; and (5) be the only wholesale service quality rules that apply at the expiration of any wholesale performance plan previously adopted by the Commission for any telecommunications carrier prior to the amendment of this subsection or on July 1, 2007, whichever date is earlier. At a minimum, the rules shall include measures for unbundled loop return, return of customer service records, loss notifications, and number portability with remedies. Any telecommunications carrier that is not subject to a Commission-approved remedy plan as of the effective date of this amendatory Act of the 94th General Assembly shall have 6 months after the effective date of the rules promulgated pursuant to this subsection under this amendatory Act of the 94th General Assembly to comply with the requirements of this subsection, to the extent that the rules promulgated pursuant to this amendatory Act contain measures to which such carrier was not subject as of the effective date of this amendatory Act. Nothing in this Section is intended to limit the ability of a telecommunications carrier to seek inclusion of performance measures and remedies in the context of arbitration before the Commission pursuant to Section 252 of the federal Telecommunications Act of 1996. This subsection shall not apply to certain rural telephone companies subject to 47 U.S.C. 251(f).

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-801) (from Ch. 111 2/3, par. 13-801)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-801. Incumbent local exchange carrier obligations.

(a) This Section provides additional State requirements for incumbent local exchange carriers that the General Assembly believes are consistent with and not preempted by contemplated by, but not inconsistent with, Section 261(c) of the federal Telecommunications Act of 1996, and regulations promulgated thereunder or any amendments or successors thereof. not preempted by orders of the Federal Communications Commission. A telecommunications carrier not subject to regulation under an alternative regulation plan pursuant to Section 13-506.1 of this Act shall not be subject to the provisions of this Section, to the extent that this Section imposes requirements or obligations upon the telecommunications carrier that exceed or are more stringent than those obligations imposed by Section 251 of the federal Telecommunications Act of 1996 and regulations promulgated thereunder.

Nothing in this Article or this Section shall be construed to require any incumbent local exchange carrier to provide any other telecommunications carrier with interconnection, collocation, access to any network element, whether unbundled or combined with other network elements, or resale where the Federal Communications Commission does not require such interconnection, collocation, access to any network element, or resale to be provided pursuant to Section 251 of the federal Telecommunications Act of 1996 or any amendment or successor thereof.

An incumbent local exchange carrier shall provide a requesting telecommunications carrier with interconnection, collocation, network elements, and access to operations support systems on just, reasonable, and nondiscriminatory rates, terms, and conditions to enable the provision of any and all existing and new telecommunications services within the LATA, including, but not limited to, local exchange and exchange access. The Commission shall require the incumbent local exchange carrier to provide interconnection, collocation, and network elements in any manner technically feasible to the fullest extent possible to implement the maximum development of competitive telecommunications services offerings. As used in this Section, to the extent that interconnection, collocation, or network elements have been deployed for or by the incumbent local exchange carrier or one of its wireline local exchange affiliates in any jurisdiction, it shall be presumed that such is technically feasible in Illinois.

(b) Interconnection. (1) An incumbent local exchange carrier shall provide for the facilities and equipment of any requesting telecommunications carrier's interconnection with the incumbent local exchange carrier's network on just, reasonable, and nondiscriminatory rates, terms, and conditions:

(1) (A) for the transmission and routing of local exchange, and exchange access telecommunications services;

(2) (B) at any technically feasible point within the incumbent local exchange carrier's network; however, the incumbent local exchange carrier may not require the requesting carrier to interconnect at more than one technically feasible point within a LATA; and

(3) (C) that is at least equal in quality and functionality to that provided by the incumbent local exchange carrier to itself or to any subsidiary, affiliate, or any other party to which the incumbent local exchange carrier provides interconnection.

(2) An incumbent local exchange carrier shall make available to any requesting telecommunications carrier, to the extent technically feasible, those services, facilities, or interconnection agreements or arrangements that the incumbent local exchange carrier or any of its incumbent local exchange subsidiaries or affiliates offers in another state under the terms and conditions, but not the stated rates, negotiated pursuant to Section 252 of the federal Telecommunications Act of 1996. Rates shall be established in accordance with the requirements of subsection (g) of this Section. An incumbent local exchange carrier shall also make available to any requesting telecommunications carrier, to the extent technically feasible, and subject to the unbundling provisions of Section 251(d)(2) of the federal Telecommunications Act of 1996, those unbundled network element or interconnection agreements or arrangements that a local exchange carrier affiliate of the incumbent local exchange carrier obtains in another state from the incumbent local exchange carrier in that state, under the terms and conditions, but not the stated rates, obtained through negotiation, or through an arbitration initiated by the affiliate, pursuant to Section 252 of the federal Telecommunications Act of 1996. Rates shall be established in accordance with the requirements of subsection (g) of this Section.

(c) Collocation. An incumbent local exchange carrier shall provide for physical or virtual collocation of any type of equipment necessary for interconnection or access to network elements at the premises of the incumbent local exchange carrier on just, reasonable, and nondiscriminatory rates, terms, and conditions. The equipment shall include, but is not limited to, optical transmission equipment, multiplexers, remote switching modules, and cross-connects between the facilities or equipment of other collocated carriers. The equipment shall also include microwave transmission facilities on the exterior and interior of the incumbent local exchange carrier's premises used for interconnection to, or for access to network elements of, the incumbent local exchange carrier or a collocated carrier, unless the incumbent local exchange carrier demonstrates to the Commission that it is not practical due to technical reasons or space limitations. An incumbent local exchange carrier shall allow, and provide for, the most reasonably direct and efficient cross-connects, that are consistent with safety and network reliability standards, between the facilities of collocated carriers. An incumbent local exchange carrier shall also allow, and provide for, cross connects between a noncollocated telecommunications carrier's network elements platform, or a noncollocated telecommunications carrier's transport facilities, and the facilities of any collocated carrier, consistent with safety and network reliability standards.

(d) Network elements. The incumbent local exchange carrier shall provide to any requesting telecommunications carrier, for the provision of an existing or a new telecommunications service, nondiscriminatory access to network elements that are required by the Federal Communications Commission to be made available on an unbundled basis pursuant to Section 251(c)(3) and 251(d)(2) of the federal Telecommunications Act of 1996 and regulations promulgated thereunder or any amendments or successors thereof, on an any unbundled or bundled basis, to the extent that such network elements are required by the Federal Communications Commission to be provided on an unbundled basis pursuant to Section 251(c)(3) and 251(d)(2) of that Act and regulations promulgated thereunder or any amendments or successors thereof, as requested, at any technically feasible point on just, reasonable, and nondiscriminatory rates, terms, and conditions.

(1) An incumbent local exchange carrier shall provide unbundled network elements in a manner that allows requesting telecommunications carriers to combine those network elements to provide a telecommunications service.

(2) An incumbent local exchange carrier shall not separate any required network elements that are currently combined with other required network elements, except at the explicit direction of the requesting carrier.

(3) Upon request, an incumbent local exchange carrier shall combine any sequence of required unbundled network elements that it ordinarily combines for itself, including but not limited to, unbundled network elements identified in The Draft of the Proposed Ameritech Illinois 271 Amendment (I2A) found in Schedule SJA-4 attached to Exhibit 3.1 filed by Illinois Bell Telephone Company on or about March 28, 2001 with the Illinois Commerce Commission under Illinois Commerce Commission Docket Number 00-0700. The Commission shall determine those unbundled network elements the incumbent local exchange carrier ordinarily combines for itself if there is a dispute between the incumbent local exchange carrier and the requesting telecommunications carrier under this subdivision of this Section of this Act.

The incumbent local exchange carrier shall be entitled to recover from the requesting telecommunications carrier any just and reasonable special construction costs incurred in combining such unbundled network elements (i) if such costs are not already included in the established price of providing the network elements, (ii) if the incumbent local exchange carrier charges such costs to its retail telecommunications end users, and (iii) if fully disclosed in advance to the requesting telecommunications carrier. The Commission shall determine whether the incumbent local exchange carrier is entitled to any special construction costs if there is a dispute between the incumbent local exchange carrier and the requesting telecommunications carrier under this subdivision of this Section of this Act.

(4) A telecommunications carrier may use a network element elements or combination of platform consisting solely of combined network elements, to the extent that such network elements are required by the Federal Communications Commission to be made available on an unbundled basis pursuant to Section 251(c)(3) and 251(d)(2) of the federal Telecommunications Act of 1996 and regulations promulgated thereunder or any amendments or successors thereof, of the incumbent local exchange carrier to provide end to end telecommunications service for the provision of existing and new local exchange, interexchange that includes local, local toll, and intraLATA toll, and exchange access telecommunications services within the LATA directly to its local exchange end users or payphone service providers without the requesting telecommunications carrier's provision or use of any other facilities or functionalities.

(5) The Commission may shall establish maximum time periods for the incumbent local exchange carrier's provision of unbundled network elements, subject to the provisions of subsection (g) of Section 13-712 to the extent applicable. The maximum time period shall be no longer than the time period for the incumbent local exchange carrier's provision of comparable retail telecommunications services utilizing those network elements. The Commission may establish a maximum time period for a particular network element that is shorter than for a comparable retail telecommunications service offered by the incumbent local exchange carrier if a requesting telecommunications carrier establishes that it shall perform other functions or activities after receipt of the particular network element to provide telecommunications services to end users. The burden of proof for establishing a maximum time period for a particular network element that is shorter than for a comparable retail telecommunications service offered by the incumbent local exchange carrier shall be on the requesting telecommunications carrier. Notwithstanding any other provision of this Article, unless and until the Commission establishes by rule or order a different specific maximum time interval, the maximum time intervals shall not exceed 5 business days for the provision of unbundled loops, both digital and analog, 10 business days for the conditioning of unbundled loops or for existing combinations of network elements for an end user that has existing local exchange telecommunications service, and one business day for the provision of the high frequency portion of the loop (line-sharing) for at least 95% of the requests of each requesting telecommunications carrier for each month.

In measuring the incumbent local exchange carrier's actual performance, the Commission shall ensure that occurrences beyond the control of the incumbent local exchange carrier that adversely affect the incumbent local exchange carrier's performance are excluded when determining actual performance levels. Such occurrences shall be determined by the Commission, but at a minimum must include work stoppage or other labor actions and acts of war. Exclusions shall also be made for performance that is governed by agreements approved by the Commission and containing timeframes for the same or similar measures or for when a requesting telecommunications carrier requests a longer time interval.

(6) When a telecommunications carrier requests a network elements platform referred to in subdivision (d)(4) of this Section, without the need for field work outside of the central office, for an end user that has existing local exchange telecommunications service provided by an incumbent local exchange carrier, or by another telecommunications carrier through the incumbent local exchange carrier's network elements platform, unless otherwise agreed by the telecommunications carriers, the incumbent local exchange carrier shall provide the requesting telecommunications carrier with the requested network elements platform within 3 business days for at least 95% of the requests for each requesting telecommunications carrier for each month. A requesting telecommunications carrier may order the network elements platform as is for an end user that has such existing local exchange service without changing any of the features previously selected by the end user. The incumbent local exchange carrier shall provide the requested network elements platform without any disruption to the end user's services.

Absent a contrary agreement between the telecommunications carriers entered into after the effective date of this amendatory Act of the 92nd General Assembly, as of 12:01 a.m. on the third business day after placing the order for a network elements platform, the requesting telecommunications carrier shall be the presubscribed primary local exchange carrier for that end user line and shall be entitled to receive, or to direct the disposition of, all revenues for all services utilizing the network elements in the platform, unless it is established that the end user of the existing local exchange service did not authorize the requesting telecommunications carrier to make the request.

(6) (e) Operations support systems. Subject to the provisions of subsection (g) of Section 13-712 to the extent applicable, the The Commission may shall establish minimum standards with just, reasonable, and nondiscriminatory rates, terms, and conditions for the preordering, ordering, provisioning, maintenance and repair, and billing functions of the incumbent local exchange carrier's operations support systems provided to other telecommunications carriers.

(e) (f) Resale. An incumbent local exchange carrier shall offer all retail telecommunications services, that the incumbent local exchange carrier provides at retail to subscribers who are not telecommunications carriers, within the LATA, together with each applicable optional feature or functionality, subject to resale at wholesale rates without imposing any unreasonable or discriminatory conditions or limitations. Wholesale rates shall be based on the retail rates charged to end users for the telecommunications service requested, excluding the portion thereof attributable to any marketing, billing, collection, and other costs avoided by the local exchange carrier. The Commission may determine under Article IX of this Act that certain noncompetitive services, together with each applicable optional feature or functionality, that are offered to residence customers under different rates, charges, terms, or conditions than to other customers should not be subject to resale under the rates, charges, terms, or conditions available only to residence customers.

(f) (g) Cost based rates. Interconnection, collocation, and network elements, and operations support systems to the extent required by the Federal Communications Commission to be made available pursuant to Section 251(c) of the federal Telecommunications Act of 1996 and regulations promulgated thereunder or any amendments or successors thereof, shall be provided by the incumbent local exchange carrier to requesting telecommunications carriers at cost based rates consistent with Section 252 of such Act and regulations promulgated thereunder or any amendments or successors thereof. The immediate implementation and provisioning of interconnection, collocation, network elements, and operations support systems shall not be delayed due to any lack of determination by the Commission as to the cost based rates. When cost based rates have not been established, within 30 days after the filing of a petition for the setting of interim rates, or after the Commission's own motion, the Commission shall provide for interim rates that shall remain in full force and effect until the cost based rate determination is made, or the interim rate is modified, by the Commission.

(g) (h) Rural exemption. This Section does not apply to certain rural telephone companies as described in 47 U.S.C. 251(f).

(i) Schedule of rates. A telecommunications carrier may request the incumbent local exchange carrier to provide a schedule of rates listing each of the rate elements of the incumbent local exchange carrier that pertains to a proposed order identified by the requesting telecommunications carrier for any of the matters covered in this Section. The incumbent local exchange carrier shall deliver the requested schedule of rates to the requesting telecommunications carrier within 2 business days for 95% of the requests for each requesting carrier

(h) (j) Special access circuits. Nothing Other than as provided in subdivision (d)(4) of this Section for the network elements platform described in that subdivision, nothing in this Section amendatory Act of the 92nd General Assembly is intended to require or prohibit the substitution of switched or special access or private line services by or with a combination of network elements nor address the Illinois Commerce Commission's jurisdiction or authority in this area.

(i) (k) The Commission shall determine any matters in dispute between the incumbent local exchange carrier and the requesting carrier pursuant to Section 13-515 of this Act.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-804 new)

Sec. 13-804. Access services.

(a) The rates of any telecommunications carrier providing intrastate switched access service or intrastate dedicated special access shall be deemed to be just and reasonable if such rates were established pursuant to a Commission order or if such rates are no higher than such carrier's interstate rates for interstate switched access service or interstate dedicated special access as found to be just and reasonable under the orders and regulations of the Federal Communications Commission. For purposes of this Section, the intrastate rates of a carrier will be considered to be no higher than its interstate rates, if the carrier's intrastate rates are no higher than its interstate rates within 30 days following the effective date of this amendatory Act of the 94th General Assembly or within one day following the effective date of any new FCC orders and regulations issued after that date.

(b) Notwithstanding anything to the contrary in this Section or Article, the Commission retains the authority, upon complaint by another telecommunications carrier, to investigate and review the intrastate switched access service and intrastate dedicated special access rates of any telecommunications carrier that provides intrastate switched access service or intrastate dedicated special access at rates higher than its interstate rates for either of such services to determine whether such rates are just and reasonable and to revise them to the extent necessary to make them just and reasonable, provided that the Commission shall have no authority to order a telecommunications carrier to set its rates for intrastate switched access services or intrastate dedicated special access at rates lower than its interstate rates for those services.

(c) Subsections (a) and (b) shall not apply to incumbent local exchange carriers serving 35,000 or fewer access lines whose intrastate switched access rates are based upon the methodologies approved in the Second Interim Order of the Commission in Docket No. 01-0808, unless the Commission determines to investigate and changes the methodologies approved in that Second Interim Order.

(d) For purposes of this Section, the rate for intrastate switched access services means the composite, per-minute rate for these services, including all applicable fixed and traffic-sensitive charges.

(e) Nothing in subsection (a) of this Section prohibits a telecommunications carrier from electing to offer intrastate switched access service or intrastate dedicated special access at rates lower than its interstate rates.

(f) Notwithstanding anything to the contrary in this Section or Article, the Commission retains the authority to review, upon complaint by a telecommunications carrier, the provision of intrastate dedicated special access by another telecommunications carrier to determine whether or not it is being provided in an unreasonably discriminatory manner.

(220 ILCS 5/13-1200)

(Section scheduled to be repealed on July 1, 2005)

Sec. 13-1200. Repealer. This Article is repealed July 1, 2008 2005.

(Source: P.A. 92-22, eff. 6-30-01.)

(220 ILCS 5/13-402.1 rep.)

(220 ILCS 5/13-408 rep.)

(220 ILCS 5/13-409 rep.)

(220 ILCS 5/13-502.5 rep.)

(220 ILCS 5/13-503 rep.)

(220 ILCS 5/13-505.3 rep.)

(220 ILCS 5/13-505.4 rep.)

(220 ILCS 5/13-505.5 rep.)

(220 ILCS 5/13-505.6 rep.)

(220 ILCS 5/13-505.7 rep.)

(220 ILCS 5/13-508 rep.)

(220 ILCS 5/13-508.1 rep.)

(220 ILCS 5/13-518 rep.)

(220 ILCS 5/13-802 rep.)

Section 10. The Public Utilities Act is amended by repealing Sections 13-402.1, 13-408, 13-409, 13-502.5, 13-503, 13-505.3, 13-505.4, 13-505.5, 13-505.6, 13-505.7, 13-508, 13-508.1, 13-518, and 13-802.

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