Full Text of HB3808 103rd General Assembly
HB3808enr 103RD GENERAL ASSEMBLY |
| | HB3808 Enrolled | | LRB103 30973 AMQ 57562 b |
|
| 1 | | AN ACT concerning regulation.
| 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by changing | 5 | | Sections 21-201 and 21-801 as follows: | 6 | | (220 ILCS 5/21-201) | 7 | | (Section scheduled to be repealed on December 31, 2026) | 8 | | Sec. 21-201. Definitions. As used in this Article: | 9 | | (a) "Access" means that the cable or video provider is | 10 | | capable of providing cable services or video services at the | 11 | | household address using any technology, other than | 12 | | direct-to-home satellite service, that
provides 2-way
| 13 | | broadband Internet capability and video programming, content, | 14 | | and functionality, regardless of whether any customer has | 15 | | ordered service or whether the owner or landlord or other | 16 | | responsible person has granted access to the household. If | 17 | | more than one technology is used, the technologies shall | 18 | | provide similar 2-way
broadband Internet accessibility and | 19 | | similar video programming. | 20 | | (b) "Basic cable or video service" means any cable or | 21 | | video service offering or tier that
includes the | 22 | | re | | | transmission of local television broadcast signals. | 23 | | (c) "Broadband service" means a high speed service |
| | | HB3808 Enrolled | - 2 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | connection to the public Internet capable of supporting, in at | 2 | | least one direction, a speed in excess of 200 kilobits per | 3 | | second (kbps) to the network demarcation point at the | 4 | | subscriber's premises. | 5 | | (d) "Cable operator" means that term as defined in item | 6 | | (5) of 47 U.S.C. 522. | 7 | | (e) "Cable service" means that term as defined in item (6) | 8 | | of 47 U.S.C. 522. | 9 | | (f) "Cable system" means that term as defined in item (7) | 10 | | of 47 U.S.C. 522. | 11 | | (g) "Commission" means the Illinois Commerce Commission. | 12 | | (h) "Competitive cable service or video service provider" | 13 | | means a person or entity that is providing or seeks to provide | 14 | | cable service or video service in an area where there is at | 15 | | least one incumbent cable operator. | 16 | | (i) "Designated market area" means a designated market | 17 | | area, as determined by Nielsen Media Research and published in | 18 | | the 1999-2000 Nielsen Station Index Directory and Nielsen | 19 | | Station Index United States Television Household Estimates or | 20 | | any successor publication. For any designated market area that | 21 | | crosses State lines, only households in the portion of the | 22 | | designated market area that is located within the holder's | 23 | | telecommunications service area in the State where access to | 24 | | video service will be offered shall be considered. | 25 | | (j) "Footprint" means the geographic area designated by | 26 | | the cable service or video service provider as the geographic |
| | | HB3808 Enrolled | - 3 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | area in which it will offer cable services or video services | 2 | | during the period of its State-issued authorization. Each | 3 | | footprint shall be identified in terms of either (i) | 4 | | exchanges, as that term is defined in Section 13-206 of this | 5 | | Act; (ii) a collection of United States Census Bureau Block | 6 | | numbers (13 digit); (iii) if the area is smaller than the areas | 7 | | identified in either (i) or (ii), by geographic information | 8 | | system digital boundaries meeting or exceeding national map | 9 | | accuracy standards; or (iv) local units of government. | 10 | | (k) "Holder" means a person or entity that has received | 11 | | authorization to offer or provide cable or video service from | 12 | | the Commission pursuant to Section 21-401 of this Article. | 13 | | (l) "Household" means a house, an apartment, a mobile | 14 | | home, a group of rooms, or a single room that is intended for | 15 | | occupancy as separate living quarters. Separate living | 16 | | quarters are those in which the occupants live and eat | 17 | | separately from any other persons in the building and that
| 18 | | have direct access from the outside of the building or through | 19 | | a common hall. This definition is consistent with the United | 20 | | States Census Bureau, as that definition may be amended | 21 | | thereafter. | 22 | | (m) "Incumbent cable operator" means a person or entity | 23 | | that provided cable services or video services in a particular | 24 | | area under a franchise agreement with a local unit of | 25 | | government pursuant to Section 11-42-11 of the Illinois | 26 | | Municipal Code (65 ILCS 5/11-42-11) or Section 5-1095 of the |
| | | HB3808 Enrolled | - 4 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | Counties Code (55 ILCS 5/5-1095) on January 1, 2007. | 2 | | (n) "Local franchising authority" means the local unit of | 3 | | government that has or requires a franchise with a cable | 4 | | operator, a provider of cable services, or a provider of video | 5 | | services to construct or operate a cable or video system or to | 6 | | offer cable services or video services under Section 11-42-11 | 7 | | of the Illinois Municipal Code (65 ILCS 5/11-42-11) or Section | 8 | | 5-1095 of the Counties Code (55 ILCS 5/5-1095). | 9 | | (o) "Local unit of government" means a city, village, | 10 | | incorporated town, or county. | 11 | | (p) "Low-income household" means those residential | 12 | | households located within the holder's existing telephone | 13 | | service area where the average annual household income is less | 14 | | than $35,000, based on the United States Census Bureau | 15 | | estimates adjusted annually to reflect rates of change and | 16 | | distribution. | 17 | | (q) "Public rights-of-way" means the areas on, below, or | 18 | | above a public roadway, highway, street, public sidewalk, | 19 | | alley, waterway, or utility easements dedicated for compatible | 20 | | uses. | 21 | | (r) "Service" means the provision of cable service
or | 22 | | video service
to subscribers and the interaction of | 23 | | subscribers with the person or entity that has received | 24 | | authorization to offer or provide cable or video service from | 25 | | the Commission pursuant to Section 21-401 of this Act. | 26 | | (s) "Service provider fee" means the amount paid under |
| | | HB3808 Enrolled | - 5 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | Section 21-801 of this Act
by the holder to a municipality, or | 2 | | in the case of an unincorporated service area to a county, for | 3 | | service areas within its territorial jurisdiction, but under | 4 | | no circumstances shall the service provider fee be paid to | 5 | | more than one local unit of government for the same portion of | 6 | | the holder's service area. | 7 | | (t) "Telecommunications service area" means the area | 8 | | designated by the Commission as the area in which a | 9 | | telecommunications company was obligated to provide | 10 | | non-competitive local telephone service as of February 8, 1996 | 11 | | as incorporated into Section 13-202.5 of this Act. | 12 | | (u) "Video programming" means that term as defined in item | 13 | | (20) of 47 U.S.C. 522. | 14 | | (v) "Video service" means video programming provided by a | 15 | | video service provider and subscriber interaction, if any, | 16 | | that is required for the selection or use of such video | 17 | | programming services, and that
is provided through wireline | 18 | | facilities located at least in part in the public | 19 | | rights-of-way without regard to delivery technology, including | 20 | | Internet protocol technology. This definition does not include | 21 | | the following: (1) any video programming provided by a | 22 | | commercial mobile service provider defined in subsection (d) | 23 | | of 47 U.S.C. 332 ; (2) direct-to-home satellite services | 24 | | defined in subsection (v) of 47 U.S.C. 303;
or (3) any video | 25 | | programming provided solely as part of, and accessed via a , | 26 | | service that enables users to access content, information, |
| | | HB3808 Enrolled | - 6 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | electronic mail, or other services offered over the public | 2 | | Internet , including Internet streaming content . | 3 | | (Source: P.A. 100-20, eff. 7-1-17 .) | 4 | | (220 ILCS 5/21-801) | 5 | | (Section scheduled to be repealed on December 31, 2026) | 6 | | Sec. 21-801. Applicable fees payable to the local unit of | 7 | | government. | 8 | | (a) Prior to offering cable service or video service in a | 9 | | local unit of government's jurisdiction, a holder shall notify | 10 | | the local unit of government. The notice shall be given to the | 11 | | local unit of government at least 10 days before the holder | 12 | | begins to offer cable service or video service within the | 13 | | boundaries of that local unit of government. | 14 | | (b) In any local unit of government in which a holder | 15 | | offers cable service or video service on a commercial basis, | 16 | | the holder shall be liable for and pay the service provider fee | 17 | | to the local unit of government. The local unit of government | 18 | | shall adopt an ordinance imposing such a fee. The holder's | 19 | | liability for the fee shall commence on the first day of the | 20 | | calendar month that is at least 30 days after the holder | 21 | | receives such ordinance. For any such ordinance adopted on or | 22 | | after the effective date of this amendatory Act of the 99th | 23 | | General Assembly, the holder's liability shall commence on the | 24 | | first day of the calendar month that is at least 30 days after | 25 | | the adoption of such ordinance. The ordinance shall be sent by |
| | | HB3808 Enrolled | - 7 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | mail, postage prepaid, to the address listed on the holder's | 2 | | application provided to the local unit of government pursuant | 3 | | to item (6) of subsection (b) of Section 21-401 of this Act. | 4 | | The fee authorized by this Section shall be 5% of gross | 5 | | revenues or the same as the fee paid to the local unit of | 6 | | government by any incumbent cable operator providing cable | 7 | | service. The payment of the service provider fee shall be due | 8 | | on a quarterly basis, 45 days after the close of the calendar | 9 | | quarter. If mailed, the fee is considered paid on the date it | 10 | | is postmarked. Except as provided in this Article, the local | 11 | | unit of government may not demand any additional fees or | 12 | | charges from the holder and may not demand the use of any other | 13 | | calculation method other than allowed under this Article. | 14 | | (c) For purposes of this Article, "gross revenues" means | 15 | | all consideration of any kind or nature, including, without | 16 | | limitation, cash, credits, property, and in-kind contributions | 17 | | received by the holder for the operation of a cable or video | 18 | | system to provide cable service or video service within the | 19 | | holder's cable service or video service area within the local | 20 | | unit of government's jurisdiction. | 21 | | (1) Gross revenues shall include the following: | 22 | | (i) Recurring charges for cable service or video | 23 | | service. | 24 | | (ii) Event-based charges for cable service or | 25 | | video service, including, but not limited to, | 26 | | pay-per-view and video-on-demand charges. |
| | | HB3808 Enrolled | - 8 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | (iii) Rental of set-top
boxes and other cable | 2 | | service or video service equipment. | 3 | | (iv) Service charges related to the provision of | 4 | | cable service or video service, including, but not | 5 | | limited to, activation, installation, and repair | 6 | | charges. | 7 | | (v) Administrative charges related to the | 8 | | provision of cable service or video service, including | 9 | | but not limited to service order and service | 10 | | termination charges. | 11 | | (vi) Late payment fees or charges, insufficient | 12 | | funds check charges, and other charges assessed to | 13 | | recover the costs of collecting delinquent payments. | 14 | | (vii) A pro rata portion of all revenue derived by | 15 | | the holder or its affiliates pursuant to compensation | 16 | | arrangements for advertising or for promotion or | 17 | | exhibition of any products or services derived from | 18 | | the operation of the holder's network to provide cable | 19 | | service or video service within the local unit of | 20 | | government's jurisdiction. The allocation shall be | 21 | | based on the number of subscribers in the local unit of | 22 | | government divided by the total number of subscribers | 23 | | in relation to the relevant regional or national | 24 | | compensation arrangement. | 25 | | (viii) Compensation received by the holder that is | 26 | | derived from the operation of the holder's network to |
| | | HB3808 Enrolled | - 9 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | provide cable service or video service with respect to | 2 | | commissions that are received by the holder as | 3 | | compensation for promotion or exhibition of any | 4 | | products or services on the holder's network, such as | 5 | | a "home shopping" or similar channel, subject to item | 6 | | (ix) of this paragraph (1). | 7 | | (ix) In the case of a cable service or video | 8 | | service that is bundled or integrated functionally | 9 | | with other services, capabilities, or applications, | 10 | | the portion of the holder's revenue attributable to | 11 | | the other services, capabilities, or applications | 12 | | shall be included in gross revenue unless the holder | 13 | | can reasonably identify the division or exclusion of | 14 | | the revenue from its books and records that are kept in | 15 | | the regular course of business. | 16 | | (x) The service provider fee permitted by | 17 | | subsection (b) of this Section. | 18 | | (2) Gross revenues do not include any of the | 19 | | following: | 20 | | (i) Revenues not actually received, even if | 21 | | billed, such as bad debt, subject to item (vi) of | 22 | | paragraph (1) of this subsection (c). | 23 | | (ii) Refunds, discounts, or other price | 24 | | adjustments that reduce the amount of gross revenues | 25 | | received by the holder of the State-issued | 26 | | authorization to the extent the refund, rebate, |
| | | HB3808 Enrolled | - 10 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | credit, or discount is attributable to cable service | 2 | | or video service. | 3 | | (iii) Regardless of whether the services are | 4 | | bundled, packaged, or functionally integrated with | 5 | | cable service or video service, any revenues received | 6 | | from services not classified as cable service or video | 7 | | service, including, without limitation, revenue | 8 | | received from telecommunications services, information | 9 | | services, or the provision of directory or Internet | 10 | | advertising, including yellow pages, white pages, | 11 | | banner advertisement, and electronic publishing, or | 12 | | any other revenues attributed by the holder to | 13 | | noncable service or nonvideo service in accordance | 14 | | with the holder's books and records and records kept | 15 | | in the regular course of business and any applicable | 16 | | laws, rules, regulations, standards, or orders. | 17 | | (iv) The sale of cable services or video services | 18 | | for resale in which the purchaser is required to | 19 | | collect the service provider fee from the purchaser's | 20 | | subscribers to the extent the purchaser certifies in | 21 | | writing that it will resell the service within the | 22 | | local unit of government's jurisdiction and pay the | 23 | | fee permitted by subsection (b) of this Section
with | 24 | | respect to the service. | 25 | | (v) Any tax or fee of general applicability | 26 | | imposed upon the subscribers or the transaction by a |
| | | HB3808 Enrolled | - 11 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | city, State, federal, or any other governmental entity | 2 | | and collected by the holder of the State-issued | 3 | | authorization and required to be remitted to the | 4 | | taxing entity, including sales and use taxes. | 5 | | (vi) Security deposits collected from subscribers. | 6 | | (vii) Amounts paid by subscribers to "home | 7 | | shopping" or similar vendors for merchandise sold | 8 | | through any home shopping channel offered as part of | 9 | | the cable service or video service. | 10 | | (viii) Any revenues received from video | 11 | | programming accessed via a service that enables users | 12 | | to access content, information, electronic mail, or | 13 | | other services offered over the Internet, including | 14 | | Internet streaming content. | 15 | | (3) Revenue of an affiliate of a holder shall be | 16 | | included in the calculation of gross revenues to the | 17 | | extent the treatment of the revenue as revenue of the | 18 | | affiliate rather than the holder has the effect of evading | 19 | | the payment of the fee permitted by subsection (b) of this | 20 | | Section
which would otherwise be paid by the cable service | 21 | | or video service. | 22 | | (d)(1) Except for a holder providing cable service that is | 23 | | subject to the fee in subsection (i) of this Section, the | 24 | | holder shall pay to the local unit of government or the entity | 25 | | designated by that local unit of government to manage public, | 26 | | education, and government access, upon request as support for |
| | | HB3808 Enrolled | - 12 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | public, education, and government access, a fee equal to no | 2 | | less than (i) 1% of gross revenues or (ii) if greater, the | 3 | | percentage of gross revenues that incumbent cable operators | 4 | | pay to the local unit of government or its designee for public, | 5 | | education, and government access support in the local unit of | 6 | | government's jurisdiction. For purposes of item (ii) of | 7 | | paragraph (1) of this subsection (d), the percentage of gross | 8 | | revenues that all incumbent cable operators pay shall be equal | 9 | | to the annual sum of the payments that incumbent cable | 10 | | operators in the service area are obligated to pay by | 11 | | franchises and agreements or by contracts with the local | 12 | | government designee for public, education and government | 13 | | access in effect on January 1, 2007, including the total of any | 14 | | lump sum payments required to be made over the term of each | 15 | | franchise or agreement divided by the number of years of the | 16 | | applicable term, divided by the annual sum of such incumbent | 17 | | cable operator's or operators'
gross revenues during the | 18 | | immediately prior calendar year. The sum of payments includes | 19 | | any payments that an incumbent cable operator is required to | 20 | | pay pursuant to item (3) of subsection (c) of Section 21-301. | 21 | | (2) A local unit of government may require all holders of a | 22 | | State-issued authorization and all cable operators franchised | 23 | | by that local unit of government on June 30, 2007 (the | 24 | | effective date of this Section)
in the franchise area to | 25 | | provide to the local unit of government, or to the entity | 26 | | designated by that local unit of government to manage public, |
| | | HB3808 Enrolled | - 13 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | education, and government access, information sufficient to | 2 | | calculate the public, education, and government access | 3 | | equivalent fee and any credits under paragraph (1) of this | 4 | | subsection (d). | 5 | | (3) The fee shall be due on a quarterly basis and paid 45 | 6 | | days after the close of the calendar quarter. Each payment | 7 | | shall include a statement explaining the basis for the | 8 | | calculation of the fee. If mailed, the fee is considered paid | 9 | | on the date it is postmarked. The liability of the holder for | 10 | | payment of the fee under this subsection shall commence on the | 11 | | same date as the payment of the service provider fee pursuant | 12 | | to subsection (b) of this Section. | 13 | | (e) The holder may identify and collect the amount of the | 14 | | service provider fee as a separate line item on the regular | 15 | | bill of each subscriber. | 16 | | (f) The holder may identify and collect the amount of the | 17 | | public, education, and government programming support fee as a | 18 | | separate line item on the regular bill of each subscriber. | 19 | | (g) All determinations and computations under this Section | 20 | | shall be made pursuant to the definition of gross revenues set | 21 | | forth in this Section and shall be made pursuant to generally | 22 | | accepted accounting principles. | 23 | | (h) Nothing contained in this Article shall be construed | 24 | | to exempt a holder from any tax that is or may later be imposed | 25 | | by the local unit of government, including any tax that is or | 26 | | may later be required to be paid by or through the holder with |
| | | HB3808 Enrolled | - 14 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | respect to cable service or video service. A State-issued | 2 | | authorization shall not affect any requirement of the holder | 3 | | with respect to payment of the local unit of government's | 4 | | simplified municipal telecommunications tax or any other tax | 5 | | as it applies to any telephone service provided by the holder. | 6 | | A State-issued authorization shall not affect any requirement | 7 | | of the holder with respect to payment of the local unit of | 8 | | government's 911 or E911 fees, taxes, or charges.
| 9 | | (i) Except for a municipality having a population of | 10 | | 2,000,000 or more, the fee imposed under paragraph (1) of | 11 | | subsection (d) by a local unit of government against a holder | 12 | | who is a cable operator shall be as follows: | 13 | | (1) the fee shall be collected and paid only for | 14 | | capital costs that are considered lawful under Subchapter | 15 | | VI of the federal Communications Act of 1934, as amended, | 16 | | and as implemented by the Federal Communications | 17 | | Commission; | 18 | | (2) the local unit of government shall impose any fee | 19 | | by ordinance; and | 20 | | (3) the fee may not exceed 1% of gross revenue; if, | 21 | | however, on the date that an incumbent cable operator | 22 | | files an application under Section 21-401, the incumbent | 23 | | cable operator is operating under a franchise agreement | 24 | | that imposes a fee for support for capital costs for | 25 | | public, education, and government access facilities | 26 | | obligations in excess of 1% of gross revenue, then the |
| | | HB3808 Enrolled | - 15 - | LRB103 30973 AMQ 57562 b |
|
| 1 | | cable operator shall continue to provide support for | 2 | | capital costs for public, education, and government access | 3 | | facilities obligations at the rate stated in such | 4 | | agreement. | 5 | | (Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17 .)
|
|