HB1047 94TH GENERAL ASSEMBLY

LRB094 07428 MKM 37590 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB1047

Introduced 02/03/05, by Rep. Mary E. Flowers

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.640 new
220 ILCS 5/Art. XIIIE heading new
220 ILCS 5/13E-101 new
220 ILCS 5/13E-105 new
220 ILCS 5/13E-110 new
220 ILCS 5/13E-115 new
220 ILCS 5/13E-120 new
220 ILCS 5/13E-125 new
220 ILCS 5/13E-130 new
220 ILCS 5/13E-135 new
220 ILCS 5/13E-140 new
220 ILCS 5/13E-145 new
220 ILCS 5/13E-150 new
220 ILCS 5/13E-155 new
220 ILCS 5/13E-160 new
220 ILCS 5/13E-165 new
220 ILCS 5/13E-170 new
220 ILCS 5/13E-175 new
220 ILCS 5/13E-180 new
220 ILCS 5/13E-185 new
220 ILCS 5/13E-190 new
220 ILCS 5/13E-195 new
220 ILCS 5/13E-200 new
220 ILCS 5/13E-205 new
220 ILCS 5/13E-210 new
220 ILCS 5/13E-215 new
220 ILCS 5/13E-220 new
220 ILCS 5/13E-225 new
220 ILCS 5/13E-230 new
220 ILCS 5/13E-235 new
220 ILCS 5/13E-240 new
220 ILCS 5/13E-245 new
220 ILCS 5/13E-250 new

Amends the Public Utilities Act. Establishes the Universal Service Fund to provide a basic set of essential telecommunications services and access to advanced service capabilities to all customers in Illinois. Provides for an assessment upon telecommunications providers operating in Illinois. Provides for the Commerce Commission to administer the universal service programs. Requires the Commission to appoint a Universal Support Fund Council to advise the Commission concerning the administration of the universal service programs. Amends the State Finance Act to create the Universal Service Fund, a special fund in the State treasury. Effective January 1, 2006.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning telecommunications.

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

Section 5. The State Finance Act is amended by adding Section 5.640 as follows:

(30 ILCS 105/5.640 new)

Sec. 5.640. The Universal Service Fund.

Section 10. The Public Utilities Act is amended by adding Article XIIIE as follows:

(220 ILCS 5/Art. XIIIE heading new)

ARTICLE XIIIE. UNIVERSAL SERVICE SUPPORT FUNDING AND PROGRAMS

(220 ILCS 5/13E-101 new)

Sec. 13E-101. Scope and purpose.

(a) This Article authorizes the Commission to establish a Universal Service Fund and programs to further the goal of providing a basic set of essential telecommunications services and access to advanced service capabilities to all telecommunications customers in this State.

(b) The requirements of this Article shall be observed by the telecommunications providers subject to the jurisdiction of the Commission as indicated in this Article, except insofar as any exemption may be made by the Commission. Except as otherwise expressly provided by law, the requirements of this Article apply to telecommunications providers.

(c) Nothing in this Article shall preclude special and individual consideration being given to exceptional or unusual situations and, upon due investigation of the facts and circumstances involved, the adoption of requirements as to individual providers or services that may be lesser, greater, other, or different than those provided in this Article.

(d) Disputes not resolved between the affected parties regarding assessment or support amounts or the eligibility to receive or the liability to pay under this Article shall be referred to the Commission for resolution.

(e) This Article shall be enforced under the provisions of Article X and by any other means provided in this Act.

(f) The Commission may issue any orders it deems necessary to assist in the implementation or interpretation of this Article.

(220 ILCS 5/13E-105 new)

Sec. 13E-105. Definitions. The definitions in Article XIII apply to this Article. In addition, in this Article:

"Calculated charge" means the charge calculated by converting a per call charge into a per minute charge. The conversion to a per minute charge shall be accomplished by dividing the per call charge by the telecommunications provider's average residential call duration. If there are multiple per call charges within one local calling area, the weighted average shall be used as the per call charge.

"Contributory provider" means a telecommunications provider that pays into the Universal Service Fund.

"Disability" means a physical or sensory impairment that limits or curtails an individual's access to or use of telecommunications services. "Disability" includes a speech, vision, or hearing impairment and any motion impairment that limits an individual's ability to handle telecommunications equipment.

"Emergency service numbers" means 9-1-1 where available and fire, emergency medical services, law enforcement, and poison center emergency numbers where 9-1-1 is not available.

"Federal high cost program" means any program established by the Federal Communications Commission under 47 CFR 54 subpart D.

"Institutions" means:

(1) not-for-profit schools, including each school in a public school district, private schools, charter schools, colleges and universities, and public community college districts;

(2) public libraries; and

(3) not-for-profit hospitals.

"Lifeline" means the Lifeline assistance program established under Section 13E-145 to provide reduced monthly service rates for low-income customers.

"Link-Up" means the Link-Up America program established under Section 13E-140 to waive service connection charges for low-income customers.

"Local exchange telecommunications service provider" means any commercial mobile radio service provider that has been designated as an eligible telecommunications carrier under Section 13E-215 or a telecommunications carrier or any other provider of basic local exchange telecommunications service or standard business lines and usage.

"Low-income" means a household that receives benefits from one or more low-income assistance programs.

"Low-income assistance program" means any of the following programs:

(1) Article IV of the Illinois Public Aid Code;

(2) medical assistance under 42 USC 1395;

(3) supplemental security income under 42 USC 1381 to 1385c;

(4) food stamps under 7 USC 2011 to 2029;

(5) the energy assistance program under the Energy Assistance Act of 1989; or

(6) any other State or federally administered program, approved by the Commission, for households with income levels equal to or less than 200% of the poverty line as defined in 42 USC 9902 (2).

"Non-profit group" means an organization described in Section 501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under Section 501 (a) of the Internal Revenue Code.

"Nonrecurring charge" means the charge for those activities and materials necessary to connect network services to the customer's premises, up to and including the network interface device. "Nonrecurring charge" does not include customer premises wiring, customer premises equipment, or construction charges.

"Rural telephone company" has the meaning given to that term in 47 USC 153 (37).

"Two-line voice carryover" means the technique of using 3-way calling and 2 telephone lines, one for voice and one for TTY or similar equipment, to connect a caller who is deaf or hard of hearing but can speak with another caller via the telecommunications relay service.

"Universal service" means a statewide rapid, efficient, communications network with adequate, economically placed facilities to ensure that a basic set of essential telecommunications services is available to all persons in this State at affordable prices and that the advanced service capabilities of a modern telecommunications infrastructure are affordable and accessible to all areas of the State within a reasonable time.

(220 ILCS 5/13E-110 new)

Sec. 13E-110. Essential telecommunications services.

(a) A local exchange telecommunications service provider shall make available to all its customers at affordable prices all essential telecommunications services.

(b) "Essential telecommunications services" means all of the following:

(1) Single-party voice-grade service with:

(A) line quality capable of facsimile transmission;

(B) line quality capable of data transmission as specified in Section 13E-115;

(C) dual-tone multi-frequency touch tone and rotary pulse dialing operability;

(D) access to emergency services numbers and 9-1-1 operability where requested by local authorities;

(E) equal access to interlata interexchange carriers subject to Federal Communications Commission orders and rules;

(F) equal access to intralata interexchange carriers pursuant to schedules, terms, and conditions imposed by Commission orders and rules;

(G) single party revertive calling, if 2 or more pieces of customer premises equipment can be simultaneously active on the line or channel being used by the customer;

(H) a reasonably adequate number of calls within a reasonably adequate local calling area, as defined by the Commission;

(I) connectivity with all public toll, local, wireline, and wireless networks and with various Internet service providers;

(J) telecommunications relay service to facilitate communication between teletypewriter users and non-teletypewriter users;

(K) access to operator service;

(L) access to directory assistance;

(M) toll blocking, 900 and 976 number blocking, and extended community calling blocking options, as specified in Section 13E-125;

(N) intercept and announcements for vacant, changed, suspended, and disconnected numbers in oral and TTY-readable formats; and

(O) a directory listing with the option for non-listed and non-published service.

(2) Annual distribution of a local telephone directory.

(3) Timely repair.

(220 ILCS 5/13E-115 new)

Sec. 13E-115. Essential data transmission capability.

(a) The data transmission capability that is specified in Section 13E-110 shall be at least 9600 bits per second.

(b) For lines extending greater than 10,000 feet from the central office, this data transmission capability requirement shall be met under an implementation schedule set by the Commission.

(220 ILCS 5/13E-120 new)

Sec. 13E-120. Advanced service capabilities.

(a) "Advanced service capabilities" means all of the following:

(1) Digital access lines and channels by January 1, 2006.

(2) High-speed data transfer connectivity by January 1, 2007.

(3) Two-way interactive video conferencing at a speed no less than 30 frames per second and 2-way interactive imaging capabilities by January 1, 2008.

(b) In the absence of alternative providers and in the presence of sufficient demand, or to promote economic development and infrastructure development, a local exchange telecommunications service provider shall, by the date set by the Commission, make available to any customer on request, in a timely manner, and at affordable prices, any advanced service capabilities.

(c) Upon its own motion, upon petition by a local exchange telecommunications service provider for relief from an obligation under subsection (b), or upon petition by a customer alleging that an advanced service is not available in a timely manner, is needed but not scheduled for deployment under this Section, or is not priced at an affordable level, the Commission may investigate the offering of a given advanced service capability.

The investigation shall address, but is not limited to addressing: (i) the reasonableness of the required investment in equipment and facilities; (ii) the presence of alternative providers; (iii) the level of demand; and (iv) other statutory factors. Following investigation, including notice and opportunity for hearing, the Commission may determine, based on the above criteria: (1) a deployment schedule; (2) a maximum reasonable rate; (3) whether the provider requires assistance from the Universal Service Fund to provide the service; and (4) and any other requirement necessary to meet customer demand for an advanced service capability.

(220 ILCS 5/13E-125 new)

Sec. 13E-125. Toll blocking.

(a) Each local exchange telecommunications service provider in this State shall offer the capability to block all long distance calls and, separately, the capability to block 900 and 976 number calls and the capability to block extended community calling unless a timely waiver has been granted to the local exchange telecommunications service provider by the Commission.

(b) Blocking shall be without monthly or nonrecurring charge to low-income customers and at no charge other than for second and subsequent service activation orders for other residential and standard business line customers.

(c) Blocking shall not prevent the customer from reaching the emergency service numbers appropriate for the customer's location.

(d) Each local exchange telecommunications service provider shall make all reasonable efforts to inform customers within its service areas of the availability of and the eligibility requirements for cost-free toll blocking services, 900 and 976 number blocking services, and extended community calling blocking services. The local exchange telecommunications service provider shall also make reasonable efforts to instruct eligible customers requesting the service in the use of the equipment or service.

(e) Each local exchange telecommunications service provider seeking a waiver of its blocking obligations under this Section shall submit to the Commission the following information:

(1) the provider's name and address;

(2) an explanation of why a waiver is being requested and of why the provider considers implementation of blocking to be an unreasonable expense for the provider and its customers;

(3) the costs of hardware, software, programming, customer education, installation, maintenance, and any other costs, on a per-customer basis, for blocking capability using customer premises equipment;

(4) the costs of hardware, software, programming, customer education, installation, maintenance, and any other costs, on a per customer basis, for blocking equipment installed in a central office, providing a separate calculation for each exchange for which an exemption is requested; and

(5) an estimate of the number of customers, by exchange, expected to request the service.

(f) The Commission staff shall review the waiver request and issue a letter to the provider granting or denying the application.

(220 ILCS 5/13E-130 new)

Sec. 13E-130. Universal Service Fund; programs.

(a) The Universal Service Fund is created as a special fund in the State treasury. Moneys in that Fund may be used for Fund administration and for the purpose of informing the public regarding the Universal Service Fund, its existence, purpose, intent, and areas of use.

(b) Subject to appropriation, moneys in the Fund may be used for any of the following programs adopted by the Commission:

(1) The Link-Up America program, as specified in Section 13E-140.

(2) The Lifeline assistance program, as specified in Section 13E-145.

(3) Voice-mail service for the homeless, as specified in subsection (a) of Section 13E-210.

(4) Telecommunications equipment purchase program (TEPP) vouchers, as specified in Section 13E-160.

(5) Telecommunications customer assistance program, as specified in Section 13E-175.

(6) High rate assistance credits, as specified in Section 13E-180.

(7) Alternative universal service protection plans, as specified in Section 13E-190.

(8) Rate shock mitigation, as specified in Section 13E-195.

(9) Assistance to institutions, as specified in Section 13E-200.

(9) Intralata toll service provider of last resort, as specified in Section 13E-220.

(10) Funding for programs or projects approved under subsection (b) of Section 13E-210.

(11) Public interest pay telephones, as specified in Section 13E-165.

(12) Outreach for low-income assistance programs, as specified in Section 13E-150.

(13) Eligible telecommunications carriers designated under item (3) of subsection (b) of Section 13E-215.

(14) Advanced service capabilities, as specified in Section 13E-120.

(15) Second line for 2-line voice carryover, as specified in Section 13E-160.

(16) Medical telecommunications equipment programs.

(17) Other programs consistent with the purposes of this Article, as approved by the Commission on an interim basis.

(c) Moneys in the Fund may be used to provide statewide access, through the Internet, to periodical reference information databases.

(d) Moneys in the Fund may be used to pay for telecommunications services provided to State-supported colleges and universities and to public community colleges.

(e) Moneys in the Fund may be used to make grants to school districts for technology for educational purposes.

(220 ILCS 5/13E-135 new)

Sec. 13E-135. Eligibility for low-income programs.

(a) Local exchange telecommunications service providers shall verify an applicant's eligibility for low-income assistance programs by making timely queries of the applicable databases of the Department of Public Aid or other State agencies. Applicant eligibility shall be verified by finding the applicant to be any of the following:

(1) An active client of at least one low-income assistance program.

(2) A member of the active client's household whose low income qualifies the client for benefits under at least one low-income assistance program.

(b) Eligibility shall be reconfirmed on at least an annual basis for all customers receiving Lifeline assistance.

(c) Local exchange telecommunications service providers shall determine a customer's eligibility for low-income assistance programs on each order for initial or moved residential service and, orally or in writing, in the first contact with a customer during a year concerning disconnection or payment arrangements.

(d) Local exchange telecommunications service providers shall comply with client authorization requirements of the Department of Public Aid or any other State agency for database queries necessary for eligibility verification. Customers shall complete and remit any reasonably required query authorization forms or forfeit eligibility.

(e) The Lifeline assistance program and the Link-Up America program are not available to customers who are dependents for federal income tax purposes, as defined in 26 USC 152 (1986), unless the customer is more than 60 years of age.

(220 ILCS 5/13E-140 new)

Sec. 13E-140. Link-Up America program.

(a) A local exchange telecommunications service provider shall waive all applicable nonrecurring charges when initiating or moving essential telecommunications services for low-income, single line customers. All federal, State, county, and local taxes applicable to the waived charges shall also be waived.

(b) Waivers apply to new service installations, to moves from one residence to another, and to reconnection of an existing service.

(c) Charges to be waived include the following, or their equivalents:

(1) service ordering;

(2) record change;

(3) central office connection;

(4) outside plant or line connection; and

(5) premises visits.

(d) Any customer whose claim of eligibility for Link-Up benefits cannot be verified at the time the service order is issued may be billed for installation charges. These customers shall receive a grace period for payment of installation charges until the due date of the second bill issued following installation of service.

The local exchange telecommunications service provider shall periodically perform an eligibility verification check within 60 days after the date on which service is connected. If a customer's eligibility cannot be confirmed within 45 days, the customer shall be notified in writing of the situation. A credit shall be issued for appropriate charges once a customer's eligibility has been confirmed.

(e) Each customer who has paid installation charges may receive a Link-Up waiver as a credit on his or her bill if the claim is made with the local exchange telecommunications service provider within 60 days after the completion of the service order and if all other Link-Up eligibility requirements have been met.

(f) Local exchange telecommunications service providers that are eligible telecommunications carriers under Section 13E-215 may receive reimbursement from the Universal Service Fund for 50% of any waived nonrecurring charges. Local exchange telecommunications service providers that are not eligible telecommunications carriers may receive reimbursement from the Universal Service Fund for 100% of any waived nonrecurring charges.

(220 ILCS 5/13E-145 new)

Sec. 13E-145. Lifeline assistance program.

(a) A local exchange telecommunications services provider shall offer a Lifeline monthly rate to all qualified low-income customers.

(b) The Lifeline monthly rate shall include:

(1) single-party residential service;

(2) touch-tone service;

(3) any 9-1-1 charges billed on the telephone bill;

(4) the federal subscriber line charge; and

(5) 120 local calls, excluding extended community calling calls.

The Lifeline monthly rate shall be the total of the residential monthly rates for the services listed in items (1) through (5), minus $7 or, if the total of the monthly residential rates for the services listed in items (1) through (5) is greater than $22, the Lifeline monthly rate shall be $15. In no case, however, shall the Lifeline monthly rate be less than $3 or more than $15.

(c) The Lifeline monthly rate may appear as a credit against the full standard tariffed rate on a customer's bill or as a special rate designation. Whenever possible, the Lifeline rate shall begin to appear on an eligible customer's bill on the next bill date following the date of application for Lifeline assistance. If the rate does not appear on the next bill date, a credit must be given on the first bill on which the rate appears. If a customer's eligibility date in the records of the Department of Public Aid or other State agencies precedes the last bill date prior to application, credit shall also be given for one month's prior bill.

(d) Eligibility for Lifeline assistance continues until the next bill date following a failure to meet eligibility requirements.

When a low-income energy assistance program is one of the customer's qualifying low-income assistance programs, the eligibility for Lifeline assistance shall continue until the bill date in the next December following the close of the heating season. At that time, lack of eligibility shall be verified by the local exchange telecommunications service provider before removing the Lifeline assistance from the customer's bill.

(e) Local exchange telecommunications service providers may receive reimbursement from the Universal Service Fund for 100% of that portion of the standard authorized rate for service that is in excess of the amount of the Lifeline monthly rate that is eligible for reimbursement from federal Lifeline program funds.

(f) Customers eligible for the Lifeline assistance program or the Link-Up America program may not be charged a deposit for service if they voluntarily accept toll blocking, may not be requested to pay in advance for more than one month's local service bill, and may not be disconnected from local service for nonpayment of toll charges billed by the local exchange telecommunications service provider. Customers that otherwise would be subject to disconnection may be counseled to accept toll blocking.

(g) A local exchange telecommunications service provider acting under the limited conditions specified in its Commission-approved telecommunications customer assistance program under Section 13E-175 may impose toll blocking or restriction on Lifeline customers.

(220 ILCS 5/13E-150 new)

Sec. 13E-150. Outreach for low-income assistance programs.

(a) Subject to appropriation, the Commission shall fund collaborative partnerships between community-based organizations and telecommunications providers to increase participation of the eligible populations in low-income assistance programs.

(b) Funding from the Universal Service Fund for these collaborative efforts shall not exceed $250,000 in one year.

(c) The Commission shall annually review and grant funding based on complete responses to a request for proposals. Funding shall be limited to not more than 6 projects. At least one project shall be focused statewide and at least one project shall be focused on the Chicago area, if feasible.

(d) The Commission shall contract for an evaluation of the effectiveness of this program in promoting enrollment in low-income assistance programs and subscribership to telephone service. The evaluation shall be completed before May 1, 2010. The cost of this evaluation shall not exceed $25,000. This $25,000 shall be included as part of the $250,000 maximum total funding available under this Section during the year in which the evaluation occurs.

(220 ILCS 5/13E-155 new)

Sec. 13E-155. Special needs certification.

(a) A person with a disability may determine whether that disability presents a barrier to use of telecommunications services. That person shall determine what accommodations are necessary to ensure effective telecommunications access.

(b) When a local exchange telecommunications service provider or the Fund administrator has sound reason to question the self-certification of a customer under subsection (a), additional verification of disability, such as an appropriate doctor's written medical diagnosis and description of physical limitations and special needs resulting from that diagnosis, may be required for certification of special telecommunications needs.

(220 ILCS 5/13E-160 new)

Sec. 13E-160. Service and equipment pricing for individuals with special needs.

(a) Vouchers shall be available to assist customers with a disability who have special needs certification in the purchase of equipment necessary for personal access to and use of essential services of a telecommunications network. Vouchers may not be used to purchase equipment that will be used exclusively for commercial purposes.

(b) Vouchers shall be limited to the following amounts, by category of disability:

(1) $200 for hard of hearing.

(2) $800 for deaf and severely hard of hearing.

(3) $1,600 for speech impaired.

(4) $1,600 for mobility impaired.

(5) $2,500 for deaf-low vision.

(6) $7,200 for deaf-blind.

(c) A voucher recipient under item (1) of subsection (b) is not required to make a co-payment. All other voucher recipients are required to make a co-payment of $100 at the time the equipment is purchased. Pursuant to subsection (f), for low-income customers the co-payment may be supplied by funding through the telecommunications assistance program (TAP).

(d) The Commission shall annually establish a budget for the total voucher program.

(e) Customers with disabilities may obtain voucher application forms from the Fund administrator, their local exchange telecommunications service provider, or other sources. Completed voucher application forms shall be submitted to the Universal Service Fund administrator.

(f) Applicants for vouchers under this Section shall be Illinois residents. An applicant may not receive a voucher for equipment for the same disability more than once every 3 years. An applicant may receive a voucher for equipment even if another person in the same household has also received a voucher.

(g) Applications shall be granted on a first-come, first-served basis, except that no single disability voucher category may account for more than 75% of the total annual budget within the first 3 quarters of each budget year.

(h) A waiting list shall be established for applications for vouchers held pending available funding or pursuant to subsection (g).

(i) The Commission may establish new disability categories and voucher maximums if a need is identified.

(j) Vendors may redeem vouchers, submitted with an invoice, from the Universal Service Fund administrator. Reimbursement may not exceed the total purchase price of the equipment, including tax, less a customer co-payment of $100, if applicable.

(k) The Commission may impose reasonable limits on the type and quantity of devices that may be purchased with one voucher.

(l) The Fund administrator shall maintain a list of the types and quantities of equipment eligible for purchase with a single voucher in each disability category. The Fund administrator shall periodically revise the list in consultation with the Commission staff and with representatives selected by the Universal Service Fund Council. The Fund administrator may also seek input regarding revisions from vendors, representatives of interested groups serving the disabled, and others, as appropriate.

(m) Equipment purchases involving individual exceptions to the eligible equipment list required under subsection (l) may be granted by the Fund administrator only after consultation with Commission staff. The Commission staff, the Fund administrator, or both, may seek input regarding these exceptions from vendors, representatives of interested groups serving the disabled, and others, as appropriate.

(n) Any objection to an item included on or excluded from the eligible equipment list and any objection to a determination regarding individual exceptions shall be handled as an informal complaint. The Commission staff shall review the objection and issue a letter addressing it. This decision may be appealed to the Commission.

(o) Customer premises equipment required to meet special telecommunications needs of those with disabilities shall be tariffed by the telecommunications carrier for monthly lease at rates that recover, over a reasonable period of time, only the carrier's direct costs for the customer premises equipment, plus directly attributable overhead. No further contribution to the carrier's earnings or general overhead costs shall be included in calculating the rate.

(p) Certified hearing impaired customers and certified speech impaired customers who need to use a teletypewriter for telephonic conversations shall receive discounted long distance service. For these customers, all telecommunications providers offering long distance services shall, at a minimum, apply their evening or off-peak discounts or rate schedules in the daytime or peak rate period and their weekend or off-peak discounts or rate schedules in all other rate periods.

(q) Customers with certified disabilities that prevent them from using the telephone directory shall not be charged for a reasonable number of directory assistance calls in a month.

(r) Customers with certified disabilities that prevent them from directly dialing or keying calls shall not be charged for operator assistance to place calls.

(s) Customers with certified disabilities who deem one or more custom calling services essential in order to receive service that is useful and comparable to the essential service provided to other customers shall receive those services without charge. Hearing impaired customers who are able to and who choose to use 2-line voice carryover shall not be charged any intrastate nonrecurring charge or monthly rate for the second line. The local exchange telecommunications service provider shall receive reimbursement from the Universal Service Fund for the amount waived.

(220 ILCS 5/13E-165 new)

Sec. 13E-165. Public interest pay telephones.

(a) The Commission shall require a pay telephone service provider to provide a pay telephone if the Commission determines that the public health, safety, and welfare is jeopardized without the telephone and if there is not sufficient demand, usage, or other public or private funding available to ensure its installation and its continued operation. Pay telephones provided for under this Section are designated as public interest pay telephones.

(b) A request for designation of a pay telephone as a public interest pay telephone may be made by a pay telephone service provider or any other person. The Commission staff shall review the request and issue a letter either granting or denying the request. This decision may be appealed to the Commission.

(c) A public interest pay telephone:

(1) Shall fulfill a public policy objective concerning public health, safety, or welfare. A pay telephone that does not otherwise exceed the revenue limitations set forth in item (1) of subsection (d) shall be presumed to fulfill such a public policy objective if it is located in a public school (K-12), a public library, a town hall, a public park, a public pool, a public museum, a public boat landing, or a public wayside.

(2) May not be a pay telephone that is or will be provided under a contract or agreement for multiple pay telephones or that should be included in such a contract or agreement but is not.

(3) May not be a pay telephone that would otherwise exist as a result of the operation of the competitive marketplace.

(d) Designation of a pay telephone as a public interest pay telephone does not depend on the presence or absence of any one or more of the following items, but all of these items shall be considered, in addition to other considerations that may be relevant, in determining whether to make such a designation. Items favoring designation include:

(1) The average actual or projected monthly revenue from the pay telephone is $90 or less or $120 or less if the pay telephone has a TTY device.

(2) The pay telephone is outside or otherwise available to the public 24 hours per day.

(3) The pay telephone is physically and geographically accessible to the general public during the operating hours of any facility in which it is located.

(4) There is no other pay telephone located within 500 feet.

(5) The pay telephone allows coin calls.

(6) The person on whose property the pay telephone is located will receive neither revenues generated from the telephone nor compensation from another source related to the placement of the telephone.

(e) The pay telephone service provider shall be reimbursed the costs and charges for equipment, provision of basic service, maintenance, servicing, and administrative operations such as collection and accounting for a public interest pay telephone. The Universal Service Fund shall only cover the costs and charges not covered by a federal universal service program and revenues from the pay telephone.

(f) The Commission shall annually review each public interest pay telephone designation in the quarter in which the designation was originally granted. For purposes of this review, the Commission may delegate initial screening or review of the qualification of facilities carrying the public interest pay telephone designation to one or more private organizations.

(g) A pay telephone provider that is providing a public interest pay telephone shall meet all of the following service quality related requirements:

(1) The telephone shall be in compliance with all State and federal laws, rules, and regulations regarding the provision of pay telephone service.

(2) The telephone shall be kept in good working condition. Service and repairs shall be made within a reasonable time period after receiving a request for service. Preventive maintenance shall be performed on a reasonable and routine basis.

(3) Monthly records for all repair service, preventive maintenance, and coin collection shall be kept for one year and shall be made available to the Commission on request.

(220 ILCS 5/13E-170 new)

Sec. 13E-170. Responsibility for pay telephone usability.

(a) In this Section, "pay telephone usability" means the ability of an individual to use pay telephone equipment.

(b) Pay telephone usability standards include signage, volume control, monitoring height, cord length, and text telephones.

(c) All pay telephone service providers are responsible for compliance with all federal and State standards regarding pay telephone usability.

(d) This Section does not create any new obligations for pay telephone usability beyond those imposed under federal or State law or negate any obligation for pay telephone usability of other parties under the law.

(e) Information on how to report non-compliance with pay telephone usability standards or any other complaint under subsection (c) to the Commission must be posted at or on each pay telephone unit or bank of units.

(220 ILCS 5/13E-175 new)

Sec. 13E-175. Telecommunications customer assistance program. The Commission may authorize individual telecommunications providers to establish telecommunications customer assistance programs that meet authorized goals and objectives for increasing or stabilizing subscription levels for non-optional, essential telephone service within the provider's service territory or to address avoidance of disconnection or limitation of service to low-income households with payment problems. The programs may allow a provider to not make available certain essential telecommunications services in order to preserve at least minimal telephone service to certain low-income households with payment problems. The Commission shall determine on a case-by-case basis whether or not a telecommunications customer assistance program may receive Universal Service Fund moneys.

(220 ILCS 5/13E-180 new)

Sec. 13E-180. High rate assistance credits.

(a) A local exchange telecommunications service provider that is an eligible telecommunications carrier under Section 13E-215 shall provide high rate assistance credits to residential customers when the price of service exceeds the levels provided in subsection (d).

(b) Credits shall be applied to the price of service as specified in subsection (c), except that if a local exchange telecommunications service provider charges a single rate covering basic local exchange telecommunications services and other telecommunications or related services, the Commission may determine, by order and after opportunity for hearing, the portion of those bundled rates to which rate assistance credits apply.

(c) For purposes of calculating credits under this Section, the price of service shall include the following:

(1) the fixed monthly charge for essential telecommunications service;

(2) the Federal Communications Commission end user common line charge; and

(3) usage charges, as established by the Commission.

(d) Local exchange telecommunications service providers shall issue high rate assistance credits according to the following criteria:

(1) For the portion of the price of service below 1.5% of median household income per month for the area in which the rate applies, no credits apply.

(2) For the portion of the price of service equal to or above 1.5% but below 2% of median household income per month for the area in which the rate applies, the local exchange telecommunications service provider shall issue a credit equal to 50% of that amount.

(3) For the portion of the price of service equal to or above 2% but below 2.5% of median household income per month for the area in which the rate applies, the local exchange telecommunications service provider shall issue a credit equal to 75% of that amount.

(4) For the portion of the price of service equal to or above 2.5% but below 3% of median household income per month for the area in which the rate applies, the local exchange telecommunications service provider shall issue a credit equal to 85% of that amount.

(5) For the portion of the price of service equal to or above 3% of median household income per month for the area in which the rate applies, the local exchange telecommunications service provider shall issue a credit equal to 95% of that amount.

(6) When a rate applies in only one county, the median household income used to calculate the credit shall be that of that county in which the rate applies, as published by the Department of Commerce and Economic Opportunity. When a rate applies in more than one county, the median household income used to compute the credit shall be the average of the median household incomes in each county in which the rate applies, weighted by the number of customers paying that rate in each county.

(7) If the amount of money required to reimburse local exchange telecommunications service providers for credits under this Section exceeds the amount budgeted for this program under Section 13E-235, the Commission may modify the formula for high rate assistance credits. The modification may be done by Commission order after notice and an opportunity for hearing.

(e) Except as provided in subsection (i), a local exchange telecommunications service provider shall be reimbursed from the Universal Service Fund for the value of the credits it issues, provided that it qualifies under Section 13E-185.

(f) When a local exchange telecommunications service provider charges a pro-rated portion of the normal monthly charge for service because the customer has had service for only a portion of the month, the rate assistance credit for that customer shall be pro-rated by the same percentage.

(g) High rate assistance credits shall be shown and identified on bills issued to customers.

(h) Telecommunications carriers with rate ceiling programs in place on the effective date of this amendatory Act of the 94th General Assembly may continue those programs until rates subject to those programs are changed, unless the Commission authorizes an extension of the rate ceiling program.

(i) Local exchange telecommunications service providers shall not be reimbursed from the Universal Service Fund for the value of credits issued to customers receiving essential telecommunications service under a contract if the contract has a duration of greater than one year. The Commission may grant waivers of this subsection.

(220 ILCS 5/13E-185 new)

Sec. 13E-185. Qualifications for Universal Service Fund support; high rate assistance credits. A local exchange telecommunications service provider receiving reimbursement for high rate assistance credits under Section 13E-180 must:

(1) provide service that meets the minimum requirements of Section 13E-110 and any applicable quality of service rules or orders of the Commission;

(2) be designated by the Commission as an eligible telecommunications carrier under Section 13E-215 for the area in which it seeks reimbursement; and

(3) show that it has applied any money it receives from the federal high cost program to the rates for which it is issuing credits, to the extent permitted under Federal Communications Commission regulations, and not to other services or to ineligible customers.

(220 ILCS 5/13E-190 new)

Sec. 13E-190. Alternative universal service protection plans.

(a) As an alternative to the high rate assistance credit under Section 13E-180, the Commission may, by order, after notice and an opportunity for hearing, implement alternative high cost support plans under this Section.

(b) Alternative high cost support plans shall be implemented on an experimental basis, shall be reviewed within 3 years and shall terminate within 5 years, unless made permanent by the Commission by order after notice and an opportunity for hearing.

(c) Alternative high cost support plans under this Section may make use of cost studies, bidding, defined service territories, or other mechanisms to protect universal service. The Commission may, by order, authorize payment of Universal Service Fund moneys as part of an alternative high cost support plan.

(d) Alternative high cost support plans may include rate ceiling programs, in accordance with subsection (h) of Section 13E-180, including programs authorized for other utilities.

(220 ILCS 5/13E-195 new)

Sec. 13E-195. Rate shock mitigation.

(a) The Commission may authorize assistance, through temporary rate credits, for customers of rate of return regulated telecommunications carriers in order to mitigate the impact of large increases in authorized rates.

(b) Rate shock mitigation credits shall be funded by the telecommunications carrier, if possible. If the telecommunications carrier cannot fund the rate shock mitigation credits, the telecommunications carrier shall be reimbursed for the amount of the credits from the Universal Service Fund. Funding for the rate shock mitigation shall be specified by the Commission in individual cases.

(c) When a telecommunications carrier charges a pro-rated portion of the normal monthly charge for service because the customer has had service for only a portion of the month, the rate shock mitigation credit for that customer shall be pro-rated by the same percentage. The Universal Service Fund shall reimburse the telecommunications carrier for the portion of the credit actually issued to the customer if the credit was not funded by that carrier.

(d) Rate shock mitigation credits shall be shown and identified on bills issued to customers.

(220 ILCS 5/13E-200 new)

Sec. 13E-200. Assistance to institutions.

(a) Partial support funding through rate discounts shall be available for institutions ordering telecommunications services to be used to provide any of the following services:

(1) Two-way interactive video services.

(2) High-speed data transfer.

(3) Toll call access to the Internet.

(4) Direct Internet access.

(b) Partial support funding shall be available only for new services that either were not previously available or that provide significant improvements over existing services at an institution. Partial support funding shall only be available for services obtained from a contributory provider, unless exempted from payment under the provisions of subsection (a) of Section 13E-240.

(c) Partial support funding is available only as partial payment for new services. The amount of funding shall decrease year by year, as follows:

(1) For the first year, the monthly discount shall be 30% of the monthly charge or $300 per month, whichever is less.

(2) For the second year, the monthly discount shall be 20% of the monthly charge or $200 per month, whichever is less.

(3) For the third year, the monthly discount shall be 10% of the monthly charge or $100 per month, whichever is less.

(4) For the fourth year and thereafter, no discount shall be issued.

(d) An institution is eligible to receive partial support funding for only one service at a time, at a single location. If that service links 2 locations at an institution, the discount may be applied to the entire channel.

(e) After the discount for a service under subsection (c) has ended, the institution may receive partial support funding for a new service. An institution may not receive a discount for a service that has been canceled and reinstated.

(220 ILCS 5/13E-205 new)

Sec. 13E-205. Medical telecommunications equipment program.

(a) For purposes of this Section:

"Initial application" means an application for Universal Service Fund support under this Section that is the first such application filed by the applicant during a State fiscal year.

"Non-profit medical clinic" includes any clinic that:

(1) is a non-profit organization governed by a board of directors;

(2) serves federally designated health professional shortage areas as defined in 42 USC 254e(a)(1), medically underserved areas, or medically underserved populations; and

(3) does one or both of the following:

(A) Provides services to all patients regardless of insurance status.

(B) Uses a sliding fee scale for uninsured patients based on income status.

"Public health agency" means the Department of Public Health and any local health department.

(b) Funding may be available to non-profit medical clinics and public health agencies for the purchase of telecommunications equipment for any of the following purposes:

(1) To promote technologically advanced medical services.

(2) To enhance access to medical care in rural or underserved areas of the State, or both.

(3) To enhance access to medical care by underserved populations or persons with disabilities in the State, or both.

(c) A maximum of $500,000 in Universal Service Fund support may be dispersed under this Section per State fiscal year.

(d) An application for Universal Service Fund support under this Section may not involve disbursement of support during multiple State fiscal years. All applications shall become public documents upon filing.

(e) Applications must include all of the following:

(1) A description of the telecommunications equipment for which Universal Service Fund support is requested.

(2) An explanation of how the applicant's purchase of telecommunications equipment will support the purposes identified in subsection (b).

(3) Identification of the vendor that will supply the telecommunications equipment.

(4) A description of how the portion of the purchase price not covered by Universal Service Fund support, if any, will be paid.

(5) A description of the steps taken to secure the telecommunications equipment at reasonable prices.

(6) A statement certifying that the Universal Service Fund support will be used for the purpose granted.

(7) Any other information that the Commission deems necessary.

(f) The Commission shall evaluate all applications submitted under this Section. If funds remain for this purpose, the Commission may approve an application if it includes the information required under subsection (e) and if the Commission determines that:

(1) the applicant is a non-profit medical clinic or public health agency located in Illinois;

(2) the applicant's purchase of telecommunications equipment will support the purposes identified in subsection (b);

(3) the applicant will be able to pay for the portion of the cost of the equipment not funded under this Section; and

(4) the applicant has taken steps to secure the equipment at reasonable prices.

Public health agencies and non-profit medical clinics that operate at more than one location may receive Universal Service Fund support for telecommunications equipment at more than one location. Before approving an application involving an additional location, the Commission shall consider how much total Universal Service Fund support has been received by the applicant during the State fiscal year and the total amount remaining available to be disbursed under this Section during the fiscal year. Preference may be given to initial applications filed by a public health agency or non-profit medical clinic.

The Commission may convene a panel of experts to assist in the evaluation of applications submitted under this Section.

(220 ILCS 5/13E-210 new)

Sec. 13E-210. Funding to promote access to telecommunications services.

(a) Any voice-mail provider may be compensated for providing, on request, to a social services agency, a job service agency, or other homeless shelter authority, voice-mail service without charge to be used by that agency or authority for the benefit of its homeless clients or residents. A voice-mail provider that is providing voice-mail boxes to a qualifying agency or authority at no charge may request and receive reimbursement only for its incremental usage and administrative costs of providing this service using available capacity. As an alternative, reimbursement may be requested and received from the Universal Service Fund at a standard rate set by the Commission to cover expected incremental costs of providing this service using available capacity.

A qualifying agency or authority administering or providing voice-mail service to homeless clients may request reimbursement for its costs directly attributable to administering and providing the voice-mail boxes for the benefit of its homeless clients. To evaluate the effectiveness of this program, the Commission may monitor and obtain information on the offering of this service from the participating voice-mail providers, social services agencies, job service agencies, and homeless shelter authorities.

A list of all individuals receiving voice-mail under this Section shall be maintained by the social services agencies, job service agencies, or homeless shelter authorities participating in this program.

(b) Partial funding may be available to non-profit groups for the facilitation of affordable access to telecommunications and information services through programs or projects, or both, that are not supported elsewhere in this Article but that are consistent with the purposes of this Article.

(c) Any non-profit group may apply for funding from the Universal Service Fund for any portion of a program or project or both. Funding shall be provided on a State fiscal year basis. Applications for funding in the following fiscal year shall be submitted by November 15th. The Commission shall issue a list of approved programs and projects by April 15th, with funding for those programs and projects to begin that July 1st. All applications shall become public documents upon filing. Applications must include all of the following:

(1) A description of a public need that is not being met at present.

(2) A description of how the program or project is consistent with the purposes of this Article.

(3) A description of the program or project proposed, including a description of how the public need described in item (1) may be met through affordable access to telecommunications or information services.

(4) A showing that the proposed program or project meets the described public need in a least cost manner. This requirement can be met by showing that the applicant carried out an appropriate request for proposals.

(5) Identification of the providers of each portion of the telecommunications services or equipment and a specific description of the following components of the program or project:

(A) the costs of telecommunications services and telecommunications equipment used by the program or project;

(B) the cost of training for those who are served by the program or project so that they can utilize the services;

(C) the administrative costs directly attributable to the program or project;

(D) the cost of technical expertise required to complete the program or project; and

(E) revenue from services or training described in item (B).

(d) The Commission shall evaluate all applications submitted. In evaluating the applications, the Commission must consider information including, but not limited to, the following:

(1) the basis of the public need to be met;

(2) the extent to which other programs or projects funded under this Section or otherwise funded under this Article meet that need; and

(3) the overall cost of the proposed program or project.

(e) The Universal Service Fund shall reimburse applicants for up to 50% of the cost of reimbursable portions of the program or project, or both. The reimbursable costs include those listed in item (5) of subsection (c).

(f) The programs or projects to be funded and the amount of reimbursement for each program or project shall be determined by the Commission. The Commission shall seek comments on the programs or projects to be funded, but shall not hold a hearing. A maximum of $500,000 in funding may be dispersed under subsections (b) through (f) of this Section per State fiscal year.

(220 ILCS 5/13E-215 new)

Sec. 13E-215. Designation of eligible telecommunications carriers.

(a) The Commission may designate a telecommunications carrier as an eligible telecommunications provider. An eligible telecommunications provider is eligible to receive Universal Service Fund funding under both applicable federal and State universal service programs for an area if it meets all of the following requirements:

(1) It holds itself ready to offer service to all customers in the area, except that those customers with a demonstrated inability to pay for service may be denied service in accordance with applicable law.

(2) It advertises its service in the area on a regular basis and those advertisements:

(A) are disseminated in media of general distribution in the area at least 2 times per year;

(B) describe the services offered; and

(C) describe the affordability of the services, including the availability of discounts for low-income customers.

(3) It makes available Lifeline and Link-Up service.

(4) It offers, at a minimum, all portions of essential telecommunications service. For purposes of this subsection, "essential telecommunication service" includes public interest pay telephone service pursuant to Section 13E-165 and pay telephone interconnection service subject to orders of the Federal Communications Commission and the Illinois Commerce Commission.

(b) The area in which a provider shall be designated as an eligible telecommunications carrier shall be:

(1) For an area that is served by an incumbent local exchange telecommunications service provider that is not a rural telephone company, the incumbent local exchange telecommunications service provider's wire center, unless the Commission designates a smaller area.

(2) For an area that is served by an incumbent local exchange telecommunications service provider that is a rural telephone company, the service territory comprised of one or more of the incumbent local exchange telecommunications service provider's wire centers, unless the Illinois Commerce Commission designates and the Federal Communications Commission approves a smaller area.

(3) For an area that is served by an incumbent local exchange telecommunications service provider that is a rural telephone company, the Commission may only designate an additional eligible telecommunications carrier after finding that the public interest requires multiple eligible telecommunications carriers. For an area served by an incumbent local exchange telecommunications service provider that is not a rural telephone company, the Commission may designate an additional eligible telecommunications carrier without making such a finding.

(c) The Commission shall maintain a list of the eligible telecommunications carriers for all areas of the State.

(d) An eligible telecommunications carrier may relinquish its designation for an area by notifying the Commission and the administrators of both the State and federal universal service funds, in writing, of its intention.

If at least one other eligible telecommunications carrier is designated for that area, the relinquishing carrier shall be relieved of eligible telecommunications carrier status for that area 2 weeks after receipt by the Commission of notice of the carrier's intent to relinquish its designation and without Commission action.

If no other eligible telecommunication carrier is designated for that area, the relinquishing carrier shall remain as eligible telecommunications carrier for that area until the Commission designates an alternative eligible telecommunications carrier. In that case, the Commission shall notify the relinquishing carrier and the administrators of the State and federal universal service funds that eligible telecommunications carrier status is still in effect. The Commission may use a process similar to that described in subsections (c) through (f) of Section 13E-220 to designate a new eligible telecommunications carrier for an area for which the only existing eligible telecommunications carrier is seeking to relinquish that status.

A provider may continue to provide services in an area for which it has relinquished eligible telecommunications carrier status but may not continue to receive high cost assistance funding. If a provider seeks to abandon facilities or discontinue any service, it shall notify affected customers and follow any abandonment or discontinuance procedures established by the Commission.

(220 ILCS 5/13E-220 new)

Sec. 13E-220. Intralata toll service provider of last resort.

(a) The intralata toll service provider of last resort for an exchange shall be the designated intralata toll provider for that exchange until intralata 1+ presubscription service is available in that exchange or until the Commission orders otherwise under subsection (g). For purposes of this Section, "provider of last resort" means the intralata toll service provider of last resort.

(b) When intralata 1+ presubscription service is available in an exchange, the designated intralata toll provider may petition the Commission for withdrawal of its provider of last resort requirements for that exchange.

The petition shall be filed in writing with the Commission. Except as otherwise provided in this subsection, the petitioner retains intralata toll service provider of last resort responsibilities until a new provider of last resort is designated or for a period of 12 months, whichever is shorter.

The petitioner shall notify all of its affected customers of its request to have its provider of last resort requirements lifted. The notice to customers shall be approved in advance by the Commission and clearly state the following:

(1) that the petitioner is seeking authority to deny service to some or all customers within the exchange;

(2) that toll services in the future may be available only from other telecommunications providers or from only one telecommunications provider; and

(3) that if a new provider of last resort is designated, all customers may be switched to that provider's service, although they may choose to obtain service from any other intralata toll service provider in the area after reassignment of the provider of last resort requirement.

If intralata 1+ presubscription service has been in effect in an exchange for at least one year and if the designated telecommunications carrier toll provider has less than 50% of all presubscribed residential access lines in that exchange, then the Commission may lift the provider of last resort requirement for that exchange. If future circumstances so require, the Commission may designate a new provider of last resort pursuant to subsection (c).

(c) If a petition under subsection (b) is filed, the Commission shall issue a notice requesting applications from all telecommunications providers interested in becoming the provider of last resort for that exchange. The provider seeking to abandon provider of last resort requirements for that exchange may not file an application to become the new provider of last resort.

(d) If only one telecommunications provider responds to the request for applications, that provider shall become the provider of last resort, effective 90 days after receipt of its application by the Commission. All customers shall be notified of the proposed change at least 60 days before the effective date. The notice shall include a telephone number that they may use to designate their intralata toll service provider. On the effective date, all customers who do not designate an intralata toll service provider shall be presubscribed to the new provider of last resort.

(e) If more than one telecommunications provider applies to become the provider of last resort, the local exchange telecommunications service provider at that exchange shall ballot customers on their choice of intralata toll service provider.

Only those telecommunications providers that file applications to be the provider of last resort for the exchange may appear on the ballot, although customers may "write-in" another telecommunications provider.

Customers who do not return ballots shall be randomly allocated to the telecommunications providers appearing on the ballot according to the percentage of customers who chose each listed provider.

All telecommunications providers appearing on the ballot shall be the providers of last resort for at least one year. After one year, those providers may notify the Commission that they wish to be relieved of provider of last resort responsibility. When the last provider of last resort files a petition of withdrawal, the process described in this Section recommences.

Fifty percent of the costs of balloting shall be paid by the local exchange carrier serving the exchange and 50% shall be paid by the providers appearing on the ballot.

(f) If no toll providers apply to be provider of last resort for an exchange, the Commission shall hold an auction of the provider of last resort responsibility. The Commission may authorize compensation from the Universal Service Fund for the provider of last resort selected by the auction.

(g) If the provider of last resort for an exchange files a petition for withdrawal of its provider of last resort requirements at an exchange where intralata 1+ presubscription is not available, the Commission may investigate that petition and order that the provider of last resort obligation be withdrawn for that provider subject to conditions, notice requirements, and balloting procedures the Commission deems necessary and reasonable for the service change at that exchange. Those conditions, requirements, and procedures shall be as designated in this Section to the extent the Commission determines they are applicable.

(h) A provider of last resort may not sell or dispose of any intralata toll customer to another provider, except at the express request of the customer.

(220 ILCS 5/13E-225 new)

Sec. 13E-225. Identification of charges caused by Universal Service Fund liability. Telecommunications providers may not establish a surcharge on customer bills for contributing to or recovering any portion of the providers' payment of Universal Service Fund obligations.

(220 ILCS 5/13E-230 new)

Sec. 13E-230. Fund administrator.

(a) The Commission shall designate a Fund administrator for the Universal Service Fund and provide for an annual audit of the Fund. The Commission shall issue rules for administration and assignment of liabilities.

(b) The Fund administrator may propose changes to or modification of the administration of the Fund. The Commission may approve those proposals without hearing.

(c) The Universal Service Fund shall compensate the administrator for the administrator's costs of administering the Fund, subject to approval by the Commission.

(220 ILCS 5/13E-235 new)

Sec. 13E-235. Fund budget and assessment rates.

(a) At least once each year, the Commission shall set the budget for Fund administration and the programs specified in subsection (b) of Section 13E-130. The Commission may make adjustments to the budget as needed to address unforeseen circumstances. Adjustments may include:

(1) reallocating the budget among programs;

(2) modifying the support formulas or benefits within a program; and

(3) deferring support payments to a later period.

(b) At least once each year, the Commission shall determine the amounts necessary for funding the payments specified in subsections (c) and (e) of Section 13E-130.

(c) Based on the need for funds and subject to appropriation, the Commission shall determine the assessment rates to apply to providers. The Commission may modify the assessment rates at any time based on changes in funding needs or provider revenues subject to assessment.

(d) The Commission shall provide notice of the proposed budget under subsection (a) and any proposed changes to the budget to the Universal Service Fund Council and other interested parties with an opportunity for comment prior to Commission action.

(220 ILCS 5/13E-240 new)

Sec. 13E-240. Collection of Universal Service Fund moneys.

(a) An assessed provider shall pay the amount of its assessment to the Universal Service Fund. Assessed providers include all telecommunications providers operating within Illinois, except those with intrastate gross telecommunications revenues of less than $200,000 during the preceding calendar year.

(b) The Commission may require a person other than a telecommunications provider to contribute to the Universal Service Fund if, after notice and opportunity for hearing, the Commission determines that the person is offering nontraditional broadcast services in competition with a telecommunications service for which a contribution is required under this Article.

(c) Telecommunications providers shall be assessed on the basis of their gross intrastate operating revenues from telecommunications services.

(d) A telecommunications provider shall submit information on a schedule and in a format to be set by the Commission concerning the telecommunications provider's gross intrastate telecommunications revenues during the preceding calendar year.

(e) The percentage liability for a given telecommunications provider is the ratio of that provider's intrastate gross telecommunications revenues to the sum of the intrastate gross telecommunications revenues for all contributory providers.

(f) The amount to be assessed to a given telecommunications provider is the percentage liability of that provider under subsection (e) multiplied by the total amount to be collected.

(g) Telecommunications providers who provided telecommunications service in Illinois for only part of the preceding calendar year shall be assessed based on actual revenues for the year, without adjustments to annualize that revenue.

(h) Failure to receive a bill is not grounds for relief from a telecommunications provider's liability for assessment.

(i) Assessments must be paid within 30 days after the bill is mailed. A telecommunications provider that has not paid within 30 days after the bill is mailed shall be deemed to have not paid. Assessments not paid within 30 days after the bill is mailed shall be collected in accordance with the rules of the Commission.

Objection to an assessment amount shall be made within 30 days after the bill is mailed. The making of the objection and Commission action regarding that objection shall follow the process established by rule by the Commission.

(j) The Commission shall obtain the information necessary to process the assessment of commercial mobile radio service providers and shall mail bills to those providers.

(220 ILCS 5/13E-245 new)

Sec. 13E-245. Use audit. Recipients of Universal Service Fund moneys may be audited by the Commission to ensure that the funding was applied for and used appropriately.

(220 ILCS 5/13E-250 new)

Sec. 13E-250. Universal Service Fund Council.

(a) The Commission shall appoint a Universal Service Fund Council to advise the Commission concerning the administration of this Article, the content of administrative rules adopted pursuant to this Article, and any other matters assigned to the Universal Service Fund Council by the Commission.

(b) The Universal Service Fund Council shall consist of telecommunications providers and of consumers of telecommunications services. The Commission shall appoint a diverse membership to the Universal Service Fund Council including representatives of: (i) the local exchange telecommunications industry; (ii) the interexchange telecommunications industry, including facilities-based carriers and resellers; (iii) the cable television industry; (iv) other telecommunications providers; and (v) consumers of telecommunications services, including residential, business, governmental, institutional, and public special interest group users.

(c) A majority of the members of the Universal Service Fund Council shall be representatives of consumers of telecommunications services.

(d) Universal Service Fund Council members shall be appointed to staggered 3-year terms. The Commission may appoint a replacement member, if necessary, to serve the remaining term of a member withdrawing from the Universal Service Fund Council.

(e) The Universal Service Fund Council shall elect a chairperson and a vice-chairperson from its membership, not including the Commission staff liaison. The term of office for these positions shall be one year. Elections may be held at the first meeting of each calendar year or may be conducted by mail prior to the first meeting of each calendar year.

(f) The Universal Service Fund Council shall meet at least 2 times each year. Other meetings may be called, upon adequate notice to all members, to address matters of the Fund as they arise. Meetings of the Universal Service Fund Council shall be open to the public.

(g) Members of the Universal Service Fund Council shall serve without compensation. Members, other than those members representing the telecommunications industry and any members representing State agencies, may be reimbursed for their actual and necessary expenses incurred in the performance of their duties as part of the Universal Service Fund Council, subject to budget guidelines adopted by the Commission.

(h) The Universal Service Fund Council may adopt bylaws appropriate for its operation. The Universal Service Fund Council may form subcommittees of its membership to review issues and make recommendations for consideration of the full Council.

(i) The Commission shall assign staff members as needed to facilitate the work of the Universal Service Fund Council. The Commission shall appoint a member of the Commission staff to serve as staff liaison for the Universal Service Fund Council. The liaison shall be a non-voting member and shall do all of the following:

(1) Assist the Universal Service Fund Council in obtaining subject matter expertise in the area of universal telecommunications service.

(2) Maintain the official record of the Universal Service Fund Council, including membership, minutes of meetings, agendas, and reports.

(3) Assist the chairperson of the Universal Service Fund Council in planning the agendas, times, and places of meetings.

(4) Provide other administrative assistance as required.

Section 99. Effective date. This Act takes effect January 1, 2006.