093_HB3077

 
                                     LRB093 08485 JLS 08709 b

 1        AN ACT concerning telecommunications.

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

 4        Section 5.  The Public Utilities Act is amended by adding
 5    Sections 13-306 and 13-519 and Article XIIIE as follows:

 6        (220 ILCS 5/13-306 new)
 7        (Section scheduled to be repealed on July 1, 2005)
 8        Sec. 13-306.  Infrastructure reports.
 9        (a)  A  telecommunications  carrier  that  provides  both
10    competitive  and  noncompetitive services must file a network
11    infrastructure report  with the Commission no later than  the
12    15th  day  of  each  month.  The report must contain detailed
13    information sufficient to enable the Commission to  determine
14    if  the  carrier  is engaged in redlining in the provision of
15    services, particularly focusing on the provision of  advanced
16    telecommunications   services.   The   report   must  contain
17    information, detailed by exchange, on investments,  upgrades,
18    outages,  services  provided,  and  any other matter that the
19    Commission deems relevant.
20        (b)  The  Commission  must  perform  an  annual   network
21    infrastructure   audit  of  all  telecommunications  carriers
22    providing both competitive and noncompetitive  services.  The
23    Commission  shall  report its network infrastructure findings
24    to the General Assembly by  January  15  of  each  year.  The
25    Commission's   annual  network  infrastructure  report  shall
26    include any findings  of  redlining  and  shall  compare  the
27    investments  in and quality of the networks owned by carriers
28    providing both competitive  and  noncompetitive  services  in
29    Illinois to those in other States.

30        (220 ILCS 5/13-519 new)
 
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 1        (Section scheduled to be repealed on July 1, 2005)
 2        Sec.  13-519.  Dividend limitations. A telecommunications
 3    carrier that is an incumbent local exchange carrier  may  not
 4    declare   any   cash,  stock,  bond,  or  scrip  dividend  or
 5    distribution or divide the proceeds of the sale of any stock,
 6    bond, or scrip among its stockholders while the carrier is in
 7    violation of a Commission order or while there exists against
 8    the  carrier  a  Commission  finding  of  failure   to   meet
 9    structural separation obligations under this Act, except upon
10    Commission approval after notice and hearing.

11        (220 ILCS 5/Art. XIIIE heading new)
12                  ARTICLE XIIIE. STRUCTURAL SEPARATION

13        (220 ILCS 5/13E-101 new)
14        Sec.  13E-101.  Definitions.  In  this  Article the terms
15    defined in this Section have the meanings indicated.
16        "Competitive local exchange carrier"  means  a  telephone
17    company  authorized by the Commission to provide retail local
18    telecommunications services that was not an  incumbent  local
19    exchange  carrier  in this State on the effective date of the
20    federal Telecommunications Act of 1996.
21        "Incumbent local  exchange  carrier"  means  a  telephone
22    company  that provided local exchange telephone services to a
23    majority of the access lines in the State  on  the  effective
24    date of the federal Telecommunications Act of 1996.
25        "Retail  affiliate"  means a telephone company created by
26    the structural separation of  the  incumbent  local  exchange
27    carrier  required  under   Section 13E-110 of this Article to
28    provide retail local telecommunications services.
29        "Wholesale affiliate" means a telephone  company  created
30    by  the structural separation of the incumbent local exchange
31    carrier required under Section 13E-110  of  this  Article  to
32    provide  wholesale telecommunications services to competitive
 
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 1    local exchange carriers and to the retail affiliate.

 2        (220 ILCS 5/13E-105 new)
 3        Sec. 13E-105.  Findings. The General Assembly  finds  and
 4    declares that:
 5             (1)  action   is  needed  to  develop  and  maintain
 6        vibrant and irreversible competition  in  all  intrastate
 7        telecommunications markets throughout Illinois;
 8             (2)  development   of   fully  competitive  Illinois
 9        telecommunications markets  will  ensure  that  consumers
10        receive   the   widest  possible  array  of  services  at
11        competitively determined prices; and
12             (3)  competition will promote and  enhance  economic
13        development  opportunities  in rural, urban, and suburban
14        areas of this State.

15        (220 ILCS 5/13E-110 new)
16        Sec. 13E-110.  Structural separation of operations.
17        (a)  In addition to any other  requirements  of  law,  an
18    incumbent  local  exchange carrier must structurally separate
19    its  retail  operations  from  its  wholesale  operations  by
20    creating  a  retail  affiliate  and  a  wholesale  affiliate,
21    consistent with proceedings of the  Commission  to  implement
22    this Article.
23        (b)  The  retail  affiliate  and  the wholesale affiliate
24    must conduct their respective operations in  accordance  with
25    this Section.
26        (c)  The  retail  affiliate must operate as a competitive
27    local exchange carrier.
28        (d)  The wholesale affiliate must  own  and  operate  all
29    network facilities of the incumbent local exchange carrier as
30    it  existed  before  the  effective  date  of  the structural
31    separation.
32        (e)  The  wholesale  affiliate  must  operate  completely
 
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 1    independently from the retail affiliate. The retail affiliate
 2    may  not  jointly  own  with  the  wholesale  affiliate,   or
 3    otherwise  control,  any  network  facilities  or  the  land,
 4    buildings,  poles,  conduits, or rights-of-way on or in which
 5    network facilities are located.
 6        (f) (1)  All  transactions  and  agreements  between  the
 7    retail affiliate and the wholesale affiliate:
 8                  (A)  must be at arm's length;
 9                  (B)  must  be  reduced  to   writing   and   be
10             available for public inspection; and
11                  (C)  may  not take effect until approved by the
12             Commission.
13             (2)  The Commission may not  approve  a  transaction
14        between  the wholesale affiliate and the retail affiliate
15        until all interested parties have had an  opportunity  to
16        be  heard  and  unless the Commission affirmatively finds
17        that the transaction:
18                  (A)  does not discriminate against  competitive
19             local exchange carriers; and
20                  (B)  will not result in any cross-subsidization
21             between  the  wholesale  affiliate  and  the  retail
22             affiliate.
23        (g)  The retail affiliate and wholesale affiliate must:
24             (1)  maintain separate books, records, and accounts;
25        and
26             (2)  have    separate   officers,   directors,   and
27        employees.
28        (h)  The wholesale  affiliate  may  not  discriminate  in
29    favor  of  the retail affiliate, and the retail affiliate may
30    not discriminate in favor of the wholesale affiliate.
31        (i)  The wholesale  affiliate  must  make  all  products,
32    services,  and service functions, including network elements,
33    facilities,  interfaces,  and  systems,  available  to   each
34    competitive  local exchange carrier at the prices, terms, and
 
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 1    conditions  at  which  they  are  available  to  the   retail
 2    affiliate.  The  wholesale  affiliate  may  make all of those
 3    products, services, and service  functions  available  to  an
 4    affiliated or unaffiliated competitive local exchange carrier
 5    only   through  a  tariff  or  an  interconnection  agreement
 6    approved by the Commission.

 7        (220 ILCS 5/13E-115 new)
 8        Sec. 13E-115.  Procedure and enforcement under Article.
 9        (a)  The Commission may adopt:
10             (1)  streamlined   procedures    for    review    of
11        transactions   between   the  retail  affiliate  and  the
12        wholesale affiliate;
13             (2)  enforcement measures  for  violations  of  this
14        Article, including auditing requirements; and
15             (3)  any other requirement or procedure necessary or
16        appropriate for implementation of this Article.
17        (b)  The  Commission may enforce the requirements of this
18    Article under the provision of Article X.

19        (220 ILCS 5/13E-205 new)
20        Sec. 13E-205.  Commencement of proceedings.
21        (a)  On or before August 1, 2003,  the  Commission  shall
22    begin  proceedings  to implement this Article. The Commission
23    shall conclude the proceedings  on  or  before   February  1,
24    2004.
25        (b)  As   part  of  its  proceedings  to  implement  this
26    Article,  the  Commission,  after  providing  all  interested
27    parties  a  full  opportunity  to  submit  proposals,   offer
28    comments,  and  participate  in  hearings,  shall by order or
29    rule, establish a code of conduct governing the  relationship
30    between  the  retail affiliate and the wholesale affiliate to
31    ensure that:
32             (1)  the retail affiliate is  not  given  any  undue
 
                            -6-      LRB093 08485 JLS 08709 b
 1        preference  or  advantage  in  its  relationship with the
 2        wholesale affiliate; and
 3             (2)  all  services   provided   by   the   wholesale
 4        affiliate  to  the  retail  affiliate  are  provided in a
 5        nondiscriminatory manner as required under  this  Article
 6        and other applicable law.

 7        (220 ILCS 5/13E-210 new)
 8        Sec.  13E-210.  Report  to  the  General  Assembly. On or
 9    before January 14, 2004, the Commission shall report  to  the
10    General  Assembly  on  the  status  of  competition  in local
11    exchange  telephone  service  in  this  State  and   on   the
12    implementation of this Article.

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