Illinois General Assembly - Full Text of SB2063
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Full Text of SB2063  97th General Assembly

SB2063eng 97TH GENERAL ASSEMBLY

  
  
  

 


 
SB2063 EngrossedLRB097 09995 ASK 50165 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Prepaid Wireless 9-1-1 Surcharge Act.
 
6    Section 5. Purpose. The General Assembly finds and declares
7that maintaining effective and efficient 9-1-1 systems across
8the State benefits all citizens. The fees imposed upon the
9consumers of telecommunication services that have the ability
10to dial 9-1-1 are an important funding mechanism to assist the
11State and units of local government with the deployment of
12enhanced 9-1-1 services to the citizens of this State.
13    Prepaid wireless telecommunication services are an
14important segment of the telecommunications industry and have
15proven particularly attractive to low-income and low-volume
16consumers. Unlike traditional telecommunication services,
17prepaid wireless telecommunications services are not sold or
18used pursuant to term contracts or subscriptions and monthly
19bills are not sent to consumers by prepaid wireless
20telecommunication service providers or retail vendors.
21    Prepaid wireless consumers have the same access to
22emergency 9-1-1 services from their wireless devices as
23wireless consumers on term contracts. Prepaid wireless

 

 

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1consumers benefit from the ability to access the 9-1-1 system
2by dialing 9-1-1.
3    Consumers purchase prepaid wireless telecommunication
4services at a wide variety of general retail locations and
5other distribution channels. Such purchases are made on a
6cash-and-carry or pay-as-you-go basis from retailers.
7    It is the intent of the General Assembly to:
8        (1) ensure equitable contributions to the funding of
9    9-1-1 systems from consumers of prepaid wireless
10    telecommunication services;
11        (2) collect 9-1-1 surcharges from purchasers of
12    prepaid wireless telecommunications services at the point
13    of sale;
14        (3) impose the collection and remittance obligation
15    for 9-1-1 surcharges on sellers of prepaid wireless
16    telecommunications services;
17        (4) impose a statewide administered 9-1-1 surcharge on
18    point of sale transactions in order to minimize
19    administrative costs on retailers.
 
20    Section 10. Definitions. In this Act:
21    "Consumer" means a person who purchases prepaid wireless
22telecommunications service in a retail transaction.
23    "Department" means the Department of Revenue.
24    "Prepaid wireless E911 surcharge" means the charge that is
25required to be collected by a seller from a consumer in the

 

 

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1amount established under Section 15 of this Act.
2    "Prepaid wireless telecommunications service" means a
3wireless telecommunications service that allows a caller to
4dial 9-1-1 to access the 9-1-1 system, which service must be
5paid for in advance and is sold in predetermined units or
6dollars of which the amount declines with use in a known
7amount.
8    "Provider" means a person that provides prepaid wireless
9telecommunications service pursuant to a license issued by the
10Federal Communications Commission.
11    "Retail transaction" means the purchase of prepaid
12wireless telecommunications service from a seller for any
13purpose other than resale.
14    "Seller" means a person who sells prepaid wireless
15telecommunications service to another person.
16    "Wireless telecommunications service" means commercial
17mobile radio service as defined by 47 C.F.R. 20.3.
 
18    Section 15. Prepaid wireless 9-1-1 surcharge.
19    (a) There is hereby imposed on consumers a prepaid wireless
209-1-1 surcharge of 1.5% per retail transaction. The surcharge
21authorized by this subsection (a) does not apply in a home rule
22municipality having a population in excess of 500,000. The
23amount of the surcharge may be reduced or increased pursuant to
24subsection (e).
25    (a-5) A home rule municipality having a population in

 

 

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1excess of 500,000 on the effective date of this Act may only
2impose a prepaid wireless 9-1-1 surcharge not to exceed 7% per
3retail transaction sourced to that jurisdiction and collected
4and remitted in accordance with the provisions of subsection
5(b-5).
6    (b) The prepaid wireless 9-1-1 surcharge shall be collected
7by the seller from the consumer with respect to each retail
8transaction occurring in this State and shall be remitted to
9the Department by the seller as provided in this Act. The
10amount of the prepaid wireless 9-1-1 surcharge shall be
11separately stated as a distinct item apart from the charge for
12the prepaid wireless telecommunications service on an invoice,
13receipt, or other similar document that is provided to the
14consumer by the seller or shall be otherwise disclosed to the
15consumer. If the seller does not separately state the surcharge
16as a distinct item to the consumer as provided in this Section,
17then the seller shall maintain books and records as required by
18this Act which clearly identify the amount of the 9-1-1
19surcharge for retail transactions.
20    For purposes of this subsection (b), a retail transaction
21occurs in this State if (i) the retail transaction is made in
22person by a consumer at the seller's business location and the
23business is located within the State; (ii) the seller is a
24provider and sells prepaid wireless telecommunications service
25to a consumer located in Illinois; (iii) the retail transaction
26is treated as occurring in this State for purposes of the

 

 

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1Retailers' Occupation Tax Act; or (iv) a seller that is
2included within the definition of a "retailer maintaining a
3place of business in this State" under Section 2 of the Use Tax
4Act makes a sale of prepaid wireless telecommunications service
5to a consumer located in Illinois. In the case of a retail
6transaction which does not occur in person at a seller's
7business location, if a consumer uses a credit card to purchase
8prepaid wireless telecommunications service on-line or over
9the telephone, and no product is shipped to the consumer, the
10transaction occurs in this State if the billing address for the
11consumer's credit card is in this State.
12    (b-5) The prepaid wireless 9-1-1 surcharge imposed under
13subsection (a-5) of this Section shall be collected by the
14seller from the consumer with respect to each retail
15transaction occurring in the municipality imposing the
16surcharge. The amount of the prepaid wireless 9-1-1 surcharge
17shall be separately stated on an invoice, receipt, or other
18similar document that is provided to the consumer by the seller
19or shall be otherwise disclosed to the consumer. If the seller
20does not separately state the surcharge as a distinct item to
21the consumer as provided in this Section, then the seller shall
22maintain books and records as required by this Act which
23clearly identify the amount of the 9-1-1 surcharge for retail
24transactions.
25    For purposes of this subsection (b-5), a retail transaction
26occurs in the municipality if (i) the retail transaction is

 

 

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1made in person by a consumer at the seller's business location
2and the business is located within the municipality; (ii) the
3seller is a provider and sells prepaid wireless
4telecommunications service to a consumer located in the
5municipality; (iii) the retail transaction is treated as
6occurring in the municipality for purposes of the Retailers'
7Occupation Tax Act; or (iv) a seller that is included within
8the definition of a "retailer maintaining a place of business
9in this State" under Section 2 of the Use Tax Act makes a sale
10of prepaid wireless telecommunications service to a consumer
11located in the municipality. In the case of a retail
12transaction which does not occur in person at a seller's
13business location, if a consumer uses a credit card to purchase
14prepaid wireless telecommunications service on-line or over
15the telephone, and no product is shipped to the consumer, the
16transaction occurs in the municipality if the billing address
17for the consumer's credit card is in the municipality.
18    (c) The prepaid wireless 9-1-1 surcharge is imposed on the
19consumer and not on any provider. The seller shall be liable to
20remit all prepaid wireless 9-1-1 surcharges that the seller
21collects from consumers as provided in Section 20, including
22all such surcharges that the seller is deemed to collect where
23the amount of the surcharge has not been separately stated on
24an invoice, receipt, or other similar document provided to the
25consumer by the seller. The surcharge collected or deemed
26collected by a seller shall constitute a debt owed by the

 

 

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1seller to this State, and any such surcharge actually collected
2shall be held in trust for the benefit of the Department.
3    For purposes of this subsection (c), the surcharge shall
4not be imposed or collected from entities that are tax exempt
5under the Retailers' Occupation Tax Act.
6    (d) The amount of the prepaid wireless 9-1-1 surcharge that
7is collected by a seller from a consumer, if such amount is
8separately stated on an invoice, receipt, or other similar
9document provided to the consumer by the seller, shall not be
10included in the base for measuring any tax, fee, surcharge, or
11other charge that is imposed by this State, any political
12subdivision of this State, or any intergovernmental agency.
13    (e) The prepaid wireless 9-1-1 charge imposed under
14subsection (a) of this Section shall be proportionately
15increased or reduced, as applicable, upon any change to the
16surcharge imposed under Section 17 of the Wireless Emergency
17Telephone Safety Act. The adjusted rate shall be determined by
18dividing the amount of the surcharge imposed under Section 17
19of the Wireless Emergency Telephone Safety Act by $50. Such
20increase or reduction shall be effective on the first day of
21the first calendar month to occur at least 60 days after the
22enactment of the change to the surcharge imposed under Section
2317 of the Wireless Emergency Telephone Safety Act. The
24Department shall provide not less than 30 days' notice of an
25increase or reduction in the amount of the surcharge on the
26Department's website.

 

 

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1    (e-5) Any changes in the rate of the surcharge imposed by a
2municipality under the authority granted in subsection (a-5) of
3this Section shall be effective on the first day of the first
4calendar month to occur at least 60 days after the enactment of
5the change. The Department shall provide not less than 30 days'
6notice of the increase or reduction in the rate of such
7surcharge on the Department's website.
8    (f) When prepaid wireless telecommunications service is
9sold with one or more other products or services for a single,
10non-itemized price, then the percentage specified in
11subsection (a) or (a-5) of this Section 15 shall be applied to
12the entire non-itemized price unless the seller elects to apply
13the percentage to (i) the dollar amount of the prepaid wireless
14telecommunications service if that dollar amount is disclosed
15to the consumer or (ii) the portion of the price that is
16attributable to the prepaid wireless telecommunications
17service if the retailer can identify that portion by reasonable
18and verifiable standards from its books and records that are
19kept in the regular course of business for other purposes,
20including, but not limited to, books and records that are kept
21for non-tax purposes. However, if a minimal amount of prepaid
22wireless telecommunications service is sold with a prepaid
23wireless device for a single, non-itemized price, then the
24seller may elect not to apply the percentage specified in
25subsection (a) or (a-5) of this Section 15 to such transaction.
26For purposes of this subsection, an amount of service

 

 

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1denominated as 10 minutes or less or $5 or less is considered
2minimal.
 
3    Section 20. Administration of prepaid wireless 9-1-1
4surcharge.
5    (a) In the administration and enforcement of this Act, the
6provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e,
75f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the
8Retailers' Occupation Tax Act that are not inconsistent with
9this Act, and Section 3-7 of the Uniform Penalty and Interest
10Act shall apply, as far as practicable, to the subject matter
11of this Act to the same extent as if those provisions were
12included in this Act. References to "taxes" in these
13incorporated Sections shall be construed to apply to the
14administration, payment, and remittance of all surcharges
15under this Act. The Department shall establish registration and
16payment procedures that substantially coincide with the
17registration and payment procedures that apply to the
18Retailers' Occupation Tax Act.
19    (b) For the first 12 months after the effective date of
20this Act, a seller shall be permitted to deduct and retain 5%
21of prepaid wireless 9-1-1 surcharges that are collected by the
22seller from consumers and that are remitted and timely filed
23with the Department. After the first 12 months, a seller shall
24be permitted to deduct and retain 3% of prepaid wireless 9-1-1
25surcharges that are collected by the seller from consumers and

 

 

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1that are remitted and timely filed with the Department.
2    (c) The Department shall pay all remitted prepaid wireless
3E911 charges over to the State Treasurer for deposit into the
4Wireless Service Emergency Fund within 30 days after receipt.
5The Illinois Commerce Commission shall distribute such funds in
6the same proportion as they are distributed under the Wireless
7Emergency Telephone Safety Act and such funds may only be used
8in accordance with the provisions of the Wireless Emergency
9Telephone Safety Act. The Department may deduct an amount, not
10to exceed 3% during the first year following the effective date
11of this Act and not to exceed 2% during every year thereafter
12of remitted charges, to be retained by the Department to
13reimburse its direct costs of administering the collection and
14remittance of prepaid wireless 9-1-1 surcharges.
15    (d) The Department shall administer the collection of all
169-1-1 surcharges and may adopt and enforce reasonable rules
17relating to the administration and enforcement of the
18provisions of this Act as may be deemed expedient. The
19Department shall require all surcharges collected under this
20Act to be reported on existing forms or combined forms,
21including, but not limited to, Form ST-1.
 
22    Section 25. Liability of sellers and providers. The
23provisions of Section 50 of the Wireless Emergency Telephone
24Safety Act shall apply to sellers and providers of prepaid
25wireless telecommunications service.
 

 

 

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1    Section 27. Home rule. A home rule unit may not impose a
2separate surcharge on wireless 9-1-1 service in addition to the
3surcharge imposed on wireless 9-1-1 service under this Act.
4This Section is a denial and limitation of home rule powers and
5functions under subsection (h) of Section 6 of Article VII of
6the Illinois Constitution.
 
7    Section 30. Exclusivity of prepaid wireless 9-1-1
8surcharge. The prepaid wireless 9-1-1 surcharge imposed by this
9Act shall be the only 9-1-1 funding obligation imposed with
10respect to prepaid wireless telecommunications service in this
11State. No tax, fee, surcharge, or other charge shall be imposed
12by this State, any political subdivision of this State, or any
13intergovernmental agency, for 9-1-1 funding purposes, upon any
14provider, seller, or consumer with respect to the sale,
15purchase, use, or provision of prepaid wireless
16telecommunications service.
 
17    Section 90. The Emergency Telephone System Act is amended
18by changing Section 15.3 and by adding Sections 2.24, 2.25, and
192.26 as follows:
 
20    (50 ILCS 750/2.24 new)
21    Sec. 2.24. Advanced service. "Advanced service" means any
22telecommunications service with dynamic bandwidth allocation,

 

 

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1including but not limited to ISDN Primary Rate Interface (PRI),
2that, through the use of a DS-1, T-1, or similar un-channelized
3or multi-channel transmission facility, is capable of
4transporting either the subscriber's inter-premises voice
5telecommunications services to the public switched network or
6the subscriber's 9-1-1 calls to the public agency. As used in
7this Section, "dynamic bandwidth allocation" means the ability
8of the facility or customer to drop and add channels, or adjust
9bandwidth, when needed in real time for voice or data purposes.
10As used in this Section, "DS-1, T-1, or similar un-channelized
11or multi-channel transmission facility" means a facility that
12can transmit and receive a bit rate of at least 1.544 megabits
13per second (Mbps).
 
14    (50 ILCS 750/2.25 new)
15    Sec. 2.25. Regular service. "Regular service" means any
16telecommunications service, other than advanced service, that
17is capable of transporting either the subscriber's
18inter-premises voice telecommunications services to the public
19switched network or the subscriber's 9-1-1 calls to the public
20agency.
 
21    (50 ILCS 750/2.26 new)
22    Sec. 2.26. Trunk line. "Trunk line" means a transmission
23path, or group of transmission paths, connecting a subscriber's
24Private Branch Exchange ("P.B.X.") to a telecommunications

 

 

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1carrier's public switched network. In the case of regular
2service, each voice grade communications channel or equivalent
3amount of bandwidth capable of transporting either the
4subscriber's inter-premises voice telecommunications services
5to the public switched network or the subscriber's 9-1-1 calls
6to the public agency shall be considered a trunk line, even if
7it is bundled with other channels or additional bandwidth. In
8the case of advanced service, each DS-1, T-1, or similar
9un-channelized or multi-channel transmission facility that is
10capable of transporting either the subscriber's inter-premises
11voice telecommunications services to the public switched
12network or the subscriber's 9-1-1 calls to the public agency
13shall be considered a single trunk line, even if it contains
14multiple voice grade communications channels or otherwise
15supports 2 or more voice grade calls ("VGC") at a time;
16provided, however, that each additional 1.544 Mbps of
17transmission capacity that is capable of transporting either
18the subscriber's inter-premises voice telecommunications
19services to the public switched network or the subscriber's
209-1-1 calls to the public agency shall be considered an
21additional trunk line.
 
22    (50 ILCS 750/15.3)  (from Ch. 134, par. 45.3)
23    Sec. 15.3. Surcharge.
24    (a) The corporate authorities of any municipality or any
25county may, subject to the limitations of subsections (c), (d),

 

 

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1and (h), and in addition to any tax levied pursuant to the
2Simplified Municipal Telecommunications Tax Act, impose a
3monthly surcharge on billed subscribers of network connection
4provided by telecommunication carriers engaged in the business
5of transmitting messages by means of electricity originating
6within the corporate limits of the municipality or county
7imposing the surcharge at a rate per network connection
8determined in accordance with subsection (c), however the
9monthly surcharge shall not apply to a network connection
10provided for use with pay telephone services. Provided,
11however, that where multiple voice grade communications
12channels are connected between the subscriber's premises and a
13public switched network through private branch exchange (PBX)
14or centrex type service, a municipality imposing a surcharge at
15a rate per network connection, as determined in accordance with
16this Act, shall impose:
17    (i) in a municipality with a population of 500,000 or less
18or in any county, 5 such surcharges per network connection, as
19determined in accordance with subsections (a) and (d) of
20Section 2.12 of this Act, for both regular service and advanced
21service provisioned trunk lines;
22    (ii) in a municipality with a population, prior to March 1,
232010, of 500,000 or more, 5 surcharges per network connection,
24as determined in accordance with subsections (a) and (d) of
25Section 2.12 of this Act, for both regular service and advanced
26service provisioned trunk lines;

 

 

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1    (iii) in a municipality with a population, as of March 1,
22010, of 500,000 or more, 5 surcharges per network connection,
3as determined in accordance with subsections (a) and (d) of
4Section 2.12 of this Act, for regular service provisioned trunk
5lines, and 12 surcharges per network connection, as determined
6in accordance with subsections (a) and (d) of Section 2.12 of
7this Act, for advanced service provisioned trunk lines, except
8where an advanced service provisioned trunk line supports at
9least 2 but fewer than 23 simultaneous voice grade calls
10("VGC's"), a telecommunication carrier may elect to impose
11fewer than 12 surcharges per trunk line as provided in
12subsection (iv) of this Section; or
13    (iv) for an advanced service provisioned trunk line
14connected between the subscriber's premises and the public
15switched network through a P.B.X., where the advanced service
16provisioned trunk line is capable of transporting at least 2
17but fewer than 23 simultaneous VGC's per trunk line, the
18telecommunications carrier collecting the surcharge may elect
19to impose surcharges in accordance with the table provided in
20this Section, without limiting any telecommunications
21carrier's obligations to otherwise keep and maintain records.
22Any telecommunications carrier electing to impose fewer than 12
23surcharges per an advanced service provisioned trunk line shall
24keep and maintain records adequately to demonstrate the VGC
25capability of each advanced service provisioned trunk line with
26fewer than 12 surcharges imposed, provided that 12 surcharges

 

 

 

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1shall be imposed on an advanced service provisioned trunk line
2regardless of the VGC capability where a telecommunications
3carrier cannot demonstrate the VGC capability of the advanced
4service provisioned trunk line.
 
5Facility VGC's 911 Surcharges
6Advanced service provisioned trunk line 18-23 12
7Advanced service provisioned trunk line 12-17 10
8Advanced service provisioned trunk line 2-11 8
9    Subsections (i), (ii), (iii), and (iv) are not intended to
10make any change in the meaning of this Section, but are
11intended to remove possible ambiguity, thereby confirming the
12intent of paragraph (a) as it existed prior to and following
13the effective date of this amendatory Act of the 97th General
14Assembly.
15    For mobile telecommunications services, if a surcharge is
16imposed it shall be imposed based upon the municipality or
17county that encompasses the customer's place of primary use as
18defined in the Mobile Telecommunications Sourcing Conformity
19Act. A municipality may enter into an intergovernmental
20agreement with any county in which it is partially located,
21when the county has adopted an ordinance to impose a surcharge
22as provided in subsection (c), to include that portion of the
23municipality lying outside the county in that county's
24surcharge referendum. If the county's surcharge referendum is

 

 

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1approved, the portion of the municipality identified in the
2intergovernmental agreement shall automatically be
3disconnected from the county in which it lies and connected to
4the county which approved the referendum for purposes of a
5surcharge on telecommunications carriers.
6    (b) For purposes of computing the surcharge imposed by
7subsection (a), the network connections to which the surcharge
8shall apply shall be those in-service network connections,
9other than those network connections assigned to the
10municipality or county, where the service address for each such
11network connection or connections is located within the
12corporate limits of the municipality or county levying the
13surcharge. Except for mobile telecommunication services, the
14"service address" shall mean the location of the primary use of
15the network connection or connections. For mobile
16telecommunication services, "service address" means the
17customer's place of primary use as defined in the Mobile
18Telecommunications Sourcing Conformity Act.
19    (c) Upon the passage of an ordinance to impose a surcharge
20under this Section the clerk of the municipality or county
21shall certify the question of whether the surcharge may be
22imposed to the proper election authority who shall submit the
23public question to the electors of the municipality or county
24in accordance with the general election law; provided that such
25question shall not be submitted at a consolidated primary
26election. The public question shall be in substantially the

 

 

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1following form:
2-------------------------------------------------------------
3    Shall the county (or city, village
4or incorporated town) of ..... impose          YES
5a surcharge of up to ...˘ per month per
6network connection, which surcharge will
7be added to the monthly bill you receive   ------------------
8for telephone or telecommunications
9charges, for the purpose of installing
10(or improving) a 9-1-1 Emergency               NO
11Telephone System?
12-------------------------------------------------------------
13    If a majority of the votes cast upon the public question
14are in favor thereof, the surcharge shall be imposed.
15    However, if a Joint Emergency Telephone System Board is to
16be created pursuant to an intergovernmental agreement under
17Section 15.4, the ordinance to impose the surcharge shall be
18subject to the approval of a majority of the total number of
19votes cast upon the public question by the electors of all of
20the municipalities or counties, or combination thereof, that
21are parties to the intergovernmental agreement.
22    The referendum requirement of this subsection (c) shall not
23apply to any municipality with a population over 500,000 or to
24any county in which a proposition as to whether a sophisticated
259-1-1 Emergency Telephone System should be installed in the
26county, at a cost not to exceed a specified monthly amount per

 

 

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1network connection, has previously been approved by a majority
2of the electors of the county voting on the proposition at an
3election conducted before the effective date of this amendatory
4Act of 1987.
5    (d) A county may not impose a surcharge, unless requested
6by a municipality, in any incorporated area which has
7previously approved a surcharge as provided in subsection (c)
8or in any incorporated area where the corporate authorities of
9the municipality have previously entered into a binding
10contract or letter of intent with a telecommunications carrier
11to provide sophisticated 9-1-1 service through municipal
12funds.
13    (e) A municipality or county may at any time by ordinance
14change the rate of the surcharge imposed under this Section if
15the new rate does not exceed the rate specified in the
16referendum held pursuant to subsection (c).
17    (f) The surcharge authorized by this Section shall be
18collected from the subscriber by the telecommunications
19carrier providing the subscriber the network connection as a
20separately stated item on the subscriber's bill.
21    (g) The amount of surcharge collected by the
22telecommunications carrier shall be paid to the particular
23municipality or county or Joint Emergency Telephone System
24Board not later than 30 days after the surcharge is collected,
25net of any network or other 9-1-1 or sophisticated 9-1-1 system
26charges then due the particular telecommunications carrier, as

 

 

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1shown on an itemized bill. The telecommunications carrier
2collecting the surcharge shall also be entitled to deduct 3% of
3the gross amount of surcharge collected to reimburse the
4telecommunications carrier for the expense of accounting and
5collecting the surcharge.
6    (h) Except as expressly provided in subsection (a) of this
7Section, a municipality with a population over 500,000 may not
8impose a monthly surcharge in excess of $2.50 per network
9connection.
10    (i) Any municipality or county or joint emergency telephone
11system board that has imposed a surcharge pursuant to this
12Section prior to the effective date of this amendatory Act of
131990 shall hereafter impose the surcharge in accordance with
14subsection (b) of this Section.
15    (j) The corporate authorities of any municipality or county
16may issue, in accordance with Illinois law, bonds, notes or
17other obligations secured in whole or in part by the proceeds
18of the surcharge described in this Section. Notwithstanding any
19change in law subsequent to the issuance of any bonds, notes or
20other obligations secured by the surcharge, every municipality
21or county issuing such bonds, notes or other obligations shall
22be authorized to impose the surcharge as though the laws
23relating to the imposition of the surcharge in effect at the
24time of issuance of the bonds, notes or other obligations were
25in full force and effect until the bonds, notes or other
26obligations are paid in full. The State of Illinois pledges and

 

 

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1agrees that it will not limit or alter the rights and powers
2vested in municipalities and counties by this Section to impose
3the surcharge so as to impair the terms of or affect the
4security for bonds, notes or other obligations secured in whole
5or in part with the proceeds of the surcharge described in this
6Section.
7    (k) Any surcharge collected by or imposed on a
8telecommunications carrier pursuant to this Section shall be
9held to be a special fund in trust for the municipality, county
10or Joint Emergency Telephone Board imposing the surcharge.
11Except for the 3% deduction provided in subsection (g) above,
12the special fund shall not be subject to the claims of
13creditors of the telecommunication carrier.
14(Source: P.A. 95-331, eff. 8-21-07; 95-698, eff. 1-1-08;
1595-1012, eff. 12-15-08.)
 
16    Section 95. The Wireless Emergency Telephone Safety Act is
17amended by changing Sections 10 and 17 and by adding Section 80
18as follows:
 
19    (50 ILCS 751/10)
20    (Section scheduled to be repealed on April 1, 2013)
21    Sec. 10. Definitions. In this Act:
22    "Active prepaid wireless telephone" means a prepaid
23wireless telephone that has been used or activated by the
24customer during the month to complete a telephone call for

 

 

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1which the customer's card or account was decremented.
2    "Emergency telephone system board" means a board appointed
3by the corporate authorities of any county or municipality that
4provides for the management and operation of a 9-1-1 system
5within the scope of the duties and powers prescribed by the
6Emergency Telephone System Act.
7    "Master street address guide" means the computerized
8geographical database that consists of all street and address
9data within a 9-1-1 system.
10    "Mobile telephone number" or "MTN" shall mean the telephone
11number assigned to a wireless telephone at the time of initial
12activation.
13    "Prepaid wireless telecommunications telephone service"
14means wireless telecommunications telephone service that
15allows a caller to dial 9-1-1 to access the 9-1-1 system, which
16service must be paid for in advance and is sold in
17predetermined units or dollars which the amount declines with
18use in a known amount. which is activated by payment in advance
19of a finite dollar amount or for a finite set of minutes and
20which, unless an additional finite dollar amount or finite set
21of minutes is paid in advance, terminates either (i) upon use
22by a customer and delivery by the wireless carrier of an
23agreed-upon amount of service corresponding to the total dollar
24amount paid in advance, or within a certain period of time
25following initial purchase or activation.
26    "Public safety agency" means a functional division of a

 

 

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1public agency that provides fire fighting, police, medical, or
2other emergency services. For the purpose of providing wireless
3service to users of 9-1-1 emergency services, as expressly
4provided for in this Act, the Department of State Police may be
5considered a public safety agency.
6    "Qualified governmental entity" means a unit of local
7government authorized to provide 9-1-1 services pursuant to the
8Emergency Telephone System Act where no emergency telephone
9system board exists.
10    "Remit period" means the billing period, one month in
11duration, for which a wireless carrier, other than a prepaid
12wireless carrier that provides zip code information based upon
13the addresses associated with its customers' points of
14purchase, customers' billing addresses, or locations
15associated with MTNs, as described in subsection (a) of Section
1617, remits a surcharge and provides subscriber information by
17zip code to the Illinois Commerce Commission, in accordance
18with Section 17 of this Act.
19    "Statewide wireless emergency 9-1-1 system" means all
20areas of the State where an emergency telephone system board
21or, in the absence of an emergency telephone system board, a
22qualified governmental entity has not declared its intention
23for one or more of its public safety answering points to serve
24as a primary wireless 9-1-1 public safety answering point for
25its jurisdiction. The operator of the statewide wireless
26emergency 9-1-1 system shall be the Department of State Police.

 

 

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1    "Sufficient positive balance" means a dollar amount
2greater than or equal to the monthly wireless 9-1-1 surcharge
3amount.
4    "Wireless carrier" means a provider of two-way cellular,
5broadband PCS, geographic area 800 MHZ and 900 MHZ Commercial
6Mobile Radio Service (CMRS), Wireless Communications Service
7(WCS), or other Commercial Mobile Radio Service (CMRS), as
8defined by the Federal Communications Commission, offering
9radio communications that may provide fixed, mobile, radio
10location, or satellite communication services to individuals
11or businesses within its assigned spectrum block and
12geographical area or that offers real-time, two-way voice
13service that is interconnected with the public switched
14network, including a reseller of such service.
15    "Wireless enhanced 9-1-1" means the ability to relay the
16telephone number of the originator of a 9-1-1 call and location
17information from any mobile handset or text telephone device
18accessing the wireless system to the designated wireless public
19safety answering point as set forth in the order of the Federal
20Communications Commission, FCC Docket No. 94-102, adopted June
2112, 1996, with an effective date of October 1, 1996, and any
22subsequent amendment thereto.
23    "Wireless public safety answering point" means the
24functional division of an emergency telephone system board,
25qualified governmental entity, or the Department of State
26Police accepting wireless 9-1-1 calls.

 

 

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1    "Wireless subscriber" means an individual or entity to whom
2a wireless service account or number has been assigned by a
3wireless carrier, other than an account or number associated
4with prepaid wireless telecommunication service.
5    "Wireless telephone service" includes prepaid wireless
6telephone service and means all "commercial mobile service", as
7that term is defined in 47 CFR 20.3, including all personal
8communications services, wireless radio telephone services,
9geographic area specialized and enhanced specialized mobile
10radio services, and incumbent wide area specialized mobile
11radio licensees that offer real time, two-way service that is
12interconnected with the public switched telephone network.
13(Source: P.A. 95-63, eff. 8-13-07.)
 
14    (50 ILCS 751/17)
15    (Section scheduled to be repealed on April 1, 2013)
16    Sec. 17. Wireless carrier surcharge.
17    (a) Except as provided in Sections Section 45 and 80, each
18wireless carrier shall impose a monthly wireless carrier
19surcharge per CMRS connection that either has a telephone
20number within an area code assigned to Illinois by the North
21American Numbering Plan Administrator or has a billing address
22in this State. In the case of prepaid wireless telephone
23service, this surcharge shall be remitted based upon the
24address associated with the point of purchase, the customer
25billing address, or the location associated with the MTN for

 

 

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1each active prepaid wireless telephone that has a sufficient
2positive balance as of the last day of each month, if that
3information is available. No wireless carrier shall impose the
4surcharge authorized by this Section upon any subscriber who is
5subject to the surcharge imposed by a unit of local government
6pursuant to Section 45. Prior to January 1, 2008 (the effective
7date of Public Act 95-698), the surcharge amount shall be the
8amount set by the Wireless Enhanced 9-1-1 Board. Beginning on
9January 1, 2008 (the effective date of Public Act 95-698), the
10monthly surcharge imposed under this Section shall be $0.73 per
11CMRS connection. The wireless carrier that provides wireless
12service to the subscriber shall collect the surcharge from the
13subscriber. For mobile telecommunications services provided on
14and after August 1, 2002, any surcharge imposed under this Act
15shall be imposed based upon the municipality or county that
16encompasses the customer's place of primary use as defined in
17the Mobile Telecommunications Sourcing Conformity Act. The
18surcharge shall be stated as a separate item on the
19subscriber's monthly bill. The wireless carrier shall begin
20collecting the surcharge on bills issued within 90 days after
21the Wireless Enhanced 9-1-1 Board sets the monthly wireless
22surcharge. State and local taxes shall not apply to the
23wireless carrier surcharge.
24    (b) Except as provided in Sections Section 45 and 80, a
25wireless carrier shall, within 45 days of collection, remit,
26either by check or by electronic funds transfer, to the State

 

 

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1Treasurer the amount of the wireless carrier surcharge
2collected from each subscriber. Of the amounts remitted under
3this subsection prior to January 1, 2008 (the effective date of
4Public Act 95-698), and for surcharges imposed before January
51, 2008 (the effective date of Public Act 95-698) but remitted
6after January 1, 2008, the State Treasurer shall deposit
7one-third into the Wireless Carrier Reimbursement Fund and
8two-thirds into the Wireless Service Emergency Fund. For
9surcharges collected and remitted on or after January 1, 2008
10(the effective date of Public Act 95-698), $0.1475 per
11surcharge collected shall be deposited into the Wireless
12Carrier Reimbursement Fund, and $0.5825 per surcharge
13collected shall be deposited into the Wireless Service
14Emergency Fund. Of the amounts deposited into the Wireless
15Carrier Reimbursement Fund under this subsection, $0.01 per
16surcharge collected may be distributed to the carriers to cover
17their administrative costs. Of the amounts deposited into the
18Wireless Service Emergency Fund under this subsection, $0.01
19per surcharge collected may be disbursed to the Illinois
20Commerce Commission to cover its administrative costs.
21    (c) The first such remittance by wireless carriers shall
22include the number of wireless subscribers customers by zip
23code, and the 9-digit zip code if currently being used or later
24implemented by the carrier, that shall be the means by which
25the Illinois Commerce Commission shall determine distributions
26from the Wireless Service Emergency Fund. This information

 

 

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1shall be updated no less often than every year. Wireless
2carriers are not required to remit surcharge moneys that are
3billed to subscribers but not yet collected. Any carrier that
4fails to provide the zip code information required under this
5subsection (c) or any prepaid wireless carrier that fails to
6provide zip code information based upon the addresses
7associated with its customers' points of purchase, customers'
8billing addresses, or locations associated with MTNs, as
9described in subsection (a) of this Section, shall be subject
10to the penalty set forth in subsection (f) of this Section.
11    (d) Any funds collected under the Prepaid Wireless 9-1-1
12Surcharge Act shall be distributed using a prorated method
13based upon zip code information collected from post-paid
14wireless carriers under subsection (c) of this Section. Within
1590 days after August 13, 2007 (the effective date of Public Act
1695-63), each wireless carrier must implement a mechanism for
17the collection of the surcharge imposed under subsection (a) of
18this Section from its subscribers. If a wireless carrier does
19not implement a mechanism for the collection of the surcharge
20from its subscribers in accordance with this subsection (d),
21then the carrier is required to remit the surcharge for all
22subscribers until the carrier is deemed to be in compliance
23with this subsection (d) by the Illinois Commerce Commission.
24    (e) If before midnight on the last day of the third
25calendar month after the closing date of the remit period a
26wireless carrier does not remit the surcharge or any portion

 

 

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1thereof required under this Section, then the surcharge or
2portion thereof shall be deemed delinquent until paid in full,
3and the Illinois Commerce Commission may impose a penalty
4against the carrier in an amount equal to the greater of:
5        (1) $25 for each month or portion of a month from the
6    time an amount becomes delinquent until the amount is paid
7    in full; or
8        (2) an amount equal to the product of 1% and the sum of
9    all delinquent amounts for each month or portion of a month
10    that the delinquent amounts remain unpaid.
11    A penalty imposed in accordance with this subsection (e)
12for a portion of a month during which the carrier provides the
13number of subscribers by zip code as required under subsection
14(c) of this Section shall be prorated for each day of that
15month during which the carrier had not provided the number of
16subscribers by zip code as required under subsection (c) of
17this Section. Any penalty imposed under this subsection (e) is
18in addition to the amount of the delinquency and is in addition
19to any other penalty imposed under this Section.
20    (f) If, before midnight on the last day of the third
21calendar month after the closing date of the remit period, a
22wireless carrier does not provide the number of subscribers by
23zip code as required under subsection (c) of this Section, then
24the report is deemed delinquent and the Illinois Commerce
25Commission may impose a penalty against the carrier in an
26amount equal to the greater of:

 

 

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1        (1) $25 for each month or portion of a month that the
2    report is delinquent; or
3        (2) an amount equal to the product of 1/2˘ and the
4    number of subscribers served by the wireless carrier.
5    A penalty imposed in accordance with this subsection (f)
6for a portion of a month during which the carrier pays the
7delinquent amount in full shall be prorated for each day of
8that month that the delinquent amount was paid in full. Any
9penalty imposed under this subsection (f) is in addition to any
10other penalty imposed under this Section.
11    (g) The Illinois Commerce Commission may enforce the
12collection of any delinquent amount and any penalty due and
13unpaid under this Section by legal action or in any other
14manner by which the collection of debts due the State of
15Illinois may be enforced under the laws of this State. The
16Executive Director of the Illinois Commerce Commission, or his
17or her designee, may excuse the payment of any penalty imposed
18under this Section if the Executive Director, or his or her
19designee, determines that the enforcement of this penalty is
20unjust.
21    (h) Notwithstanding any provision of law to the contrary,
22nothing shall impair the right of wireless carriers to recover
23compliance costs for all emergency communications services
24that are not reimbursed out of the Wireless Carrier
25Reimbursement Fund directly from their wireless subscribers
26customers via line-item charges on the wireless subscriber's

 

 

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1customer's bill. Those compliance costs include all costs
2incurred by wireless carriers in complying with local, State,
3and federal regulatory or legislative mandates that require the
4transmission and receipt of emergency communications to and
5from the general public, including, but not limited to, E-911.
6    (i) The Auditor General shall conduct, on an annual basis,
7an audit of the Wireless Service Emergency Fund and the
8Wireless Carrier Reimbursement Fund for compliance with the
9requirements of this Act. The audit shall include, but not be
10limited to, the following determinations:
11        (1) Whether the Commission is maintaining detailed
12    records of all receipts and disbursements from the Wireless
13    Carrier Emergency Fund and the Wireless Carrier
14    Reimbursement Fund.
15        (2) Whether the Commission's administrative costs
16    charged to the funds are adequately documented and are
17    reasonable.
18        (3) Whether the Commission's procedures for making
19    grants and providing reimbursements in accordance with the
20    Act are adequate.
21        (4) The status of the implementation of wireless 9-1-1
22    and E9-1-1 services in Illinois.
23    The Commission, the Department of State Police, and any
24other entity or person that may have information relevant to
25the audit shall cooperate fully and promptly with the Office of
26the Auditor General in conducting the audit. The Auditor

 

 

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1General shall commence the audit as soon as possible and
2distribute the report upon completion in accordance with
3Section 3-14 of the Illinois State Auditing Act.
4(Source: P.A. 95-63, eff. 8-13-07; 95-698, eff. 1-1-08; 95-876,
5eff. 8-21-08.)
 
6    (50 ILCS 751/80 new)
7    Sec. 80. Prepaid wireless telecommunications service;
8surcharge. The wireless carrier surcharge and any other
9requirements imposed by Section 17 or authorized by Section 45
10shall not apply to prepaid wireless telecommunications
11service. The provisions of the Prepaid Wireless 9-1-1 Surcharge
12Act shall apply to prepaid wireless telecommunications
13service.
 
14    Section 97. The Public Utilities Act is amended by changing
15Section 13-230 as follows:
 
16    (220 ILCS 5/13-230)
17    (Section scheduled to be repealed on July 1, 2013)
18    Sec. 13-230. Prepaid calling service. "Prepaid calling
19service" means telecommunications service that must be paid for
20in advance by an end user, enables the end user to originate
21calls using an access number or authorization code, whether
22manually or electronically dialed, and is sold in predetermined
23units or dollars of which the number declines with use in a

 

 

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1known amount. A prepaid calling service call is a call made by
2an end user using prepaid calling service. "Prepaid calling
3service" does not include prepaid wireless telecommunications
4telephone service as defined in Section 10 of the Wireless
5Emergency Telephone Safety Act.
6(Source: P.A. 93-1002, eff. 1-1-05.)
 
7    Section 997. Severability. The provisions of this Act are
8severable under Section 1.31 of the Statute on Statutes.
 
9    Section 999. Effective date. This Act takes effect January
101, 2012, except that this Section and Section 90 shall take
11effect upon becoming law.