Full Text of HB4568 93rd General Assembly
HB4568 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB4568
Introduced 02/04/04, by Mike Boland SYNOPSIS AS INTRODUCED: |
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220 ILCS 5/13-306 new |
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220 ILCS 5/13-520 new |
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220 ILCS 5/Art. XIIIE heading new |
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220 ILCS 5/13E-101 new |
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220 ILCS 5/13E-105 new |
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220 ILCS 5/13E-110 new |
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220 ILCS 5/13E-115 new |
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220 ILCS 5/13E-205 new |
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220 ILCS 5/13E-210 new |
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Amends the Public Utilities Act. Requires an incumbent local exchange
carrier to structurally separate its retail operations from its wholesale
operations in accordance with the requirements of the Commerce Commission.
Provides that an incumbent local exchange carrier is the telecommunications
carrier that on the effective date of the federal Telecommunications Act of
1996 provided local exchange services to a majority of the access lines in
Illinois. Regulates transactions between retail affiliates and wholesale
affiliates. Requires the Commission to begin proceedings to implement
structural separation by August 1, 2004 and to conclude the proceedings by
February 1, 2005. Requires the Commission to report to the General Assembly
by January 14, 2005 on the status of structural separation.
Requires telecommunications carriers
that provide both competitive and noncompetitive services to make detailed
network infrastructure reports to the Commerce Commission each month.
Requires the Commission to perform an annual network infrastructure audit on
all carriers required to file network infrastructure reports. Provides for the
Commission to report its findings regarding network infrastructure to the
General Assembly by January 15 of each year.
Provides that incumbent local exchange
carriers may not declare any dividend or distribution if the carrier is in
violation of a Commission order or is subject to a Commission finding of
failure to meet structural separation obligations.
Effective July 1,
2004.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4568 |
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LRB093 19129 AMC 44864 b |
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| AN ACT concerning telecommunications.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Public Utilities Act is amended by adding | 5 |
| Sections 13-306 and
13-520 and Article XIIIE
as follows:
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| (220 ILCS 5/13-306 new)
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| Sec. 13-306. Infrastructure reports.
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| (a) A telecommunications carrier that provides both | 9 |
| competitive and
noncompetitive services must file a network | 10 |
| infrastructure report with the
Commission no later than the | 11 |
| 15th day of each month. The report must contain
detailed | 12 |
| information sufficient to enable the Commission to determine if | 13 |
| the
carrier is engaged in redlining in the provision of | 14 |
| services, particularly
focusing on the provision of advanced | 15 |
| telecommunications services. The report
must contain | 16 |
| information, detailed by exchange, on investments, upgrades,
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| outages, services provided, and any other matter that the | 18 |
| Commission deems
relevant.
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| (b) The Commission must perform an annual network | 20 |
| infrastructure
audit of all telecommunications carriers | 21 |
| providing both competitive and
noncompetitive services. The | 22 |
| Commission shall report its network
infrastructure findings to | 23 |
| the General Assembly by January 15 of each year.
The | 24 |
| Commission's annual network infrastructure report shall | 25 |
| include any
findings of redlining and shall compare the | 26 |
| investments in and quality of the
networks owned by carriers | 27 |
| providing both competitive and noncompetitive
services in | 28 |
| Illinois to those in other States.
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| (220 ILCS 5/13-520 new)
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| Sec. 13-520. Dividend limitations. A telecommunications | 31 |
| carrier that is
an incumbent local exchange carrier may not |
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LRB093 19129 AMC 44864 b |
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| declare any cash, stock, bond, or
scrip dividend or | 2 |
| distribution or divide the proceeds of the sale of any
stock,
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| bond, or scrip among its stockholders while the carrier is in | 4 |
| violation of a
Commission order or while there exists against | 5 |
| the carrier a Commission finding
of
failure to meet structural | 6 |
| separation obligations under this Act, except upon
Commission | 7 |
| approval after notice and hearing.
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| (220 ILCS 5/Art. XIIIE heading new)
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| ARTICLE XIIIE. STRUCTURAL SEPARATION | 10 |
| (220 ILCS 5/13E-101 new)
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| Sec. 13E-101. Definitions. In this Article the terms | 12 |
| defined in this
Section have the meanings indicated.
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| "Competitive local exchange carrier" means a telephone | 14 |
| company
authorized by the Commission to provide retail local | 15 |
| telecommunications
services that was not an incumbent local | 16 |
| exchange carrier in this State on the
effective date of the | 17 |
| federal Telecommunications Act of 1996.
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| "Incumbent local exchange carrier" means a telephone | 19 |
| company that
provided local exchange telephone services to a | 20 |
| majority of the access lines in
the State on the effective date | 21 |
| of the federal Telecommunications Act of 1996.
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| "Retail affiliate" means a telephone company created by the | 23 |
| structural
separation of the incumbent local exchange carrier | 24 |
| required under Section
13E-110 of this Article to provide | 25 |
| retail local telecommunications services.
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| "Wholesale affiliate" means a telephone company created by | 27 |
| the
structural separation of the incumbent local exchange | 28 |
| carrier required under
Section 13E-110 of this Article to | 29 |
| provide wholesale telecommunications
services to competitive | 30 |
| local exchange carriers and to the retail affiliate.
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| (220 ILCS 5/13E-105 new)
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| Sec. 13E-105. Findings. The General Assembly finds and | 33 |
| declares that:
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| (1) action is needed to develop and maintain vibrant | 2 |
| and
irreversible competition in all intrastate | 3 |
| telecommunications
markets throughout Illinois;
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| (2) development of fully competitive Illinois
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| telecommunications markets will ensure that consumers | 6 |
| receive
the widest possible array of services at | 7 |
| competitively determined
prices; and
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| (3) competition will promote and enhance economic
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| development opportunities in rural, urban, and suburban | 10 |
| areas of
this State.
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| (220 ILCS 5/13E-110 new)
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| Sec. 13E-110. Structural separation of operations.
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| (a) In addition to any other requirements of law, an | 14 |
| incumbent local
exchange carrier must structurally separate | 15 |
| its retail operations from its
wholesale operations by creating | 16 |
| a retail affiliate and a wholesale affiliate,
consistent with | 17 |
| proceedings of the Commission to implement this Article.
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| (b) The retail affiliate and the wholesale affiliate must | 19 |
| conduct their
respective operations in accordance with this | 20 |
| Section.
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| (c) The retail affiliate must operate as a competitive | 22 |
| local exchange
carrier.
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| (d) The wholesale affiliate must own and operate all | 24 |
| network facilities of
the incumbent local exchange carrier as | 25 |
| it existed before the effective date of
the structural | 26 |
| separation.
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| (e) The wholesale affiliate must operate completely | 28 |
| independently from
the retail affiliate. The retail affiliate | 29 |
| may not jointly own with the
wholesale
affiliate, or otherwise | 30 |
| control, any network facilities or the land, buildings,
poles, | 31 |
| conduits, or rights-of-way on or in which network facilities | 32 |
| are
located.
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| (f) (1) All transactions and agreements between the | 34 |
| retail affiliate and
the
wholesale affiliate:
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| (A) must be at arm's length;
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| (B) must be reduced to writing and be available for | 2 |
| public
inspection; and
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| (C) may not take effect until approved by the | 4 |
| Commission.
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| (2) The Commission may not approve a transaction | 6 |
| between the
wholesale affiliate and the retail affiliate | 7 |
| until all interested parties have
had an opportunity to be | 8 |
| heard and unless the Commission affirmatively
finds that | 9 |
| the transaction:
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| (A) does not discriminate against competitive | 11 |
| local
exchange carriers; and
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| (B) will not result in any cross-subsidization | 13 |
| between the
wholesale affiliate and the retail | 14 |
| affiliate.
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| (g) The retail affiliate and wholesale affiliate must:
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| (1) maintain separate books, records, and accounts; | 17 |
| and
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| (2) have separate officers, directors, and employees.
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| (h) The wholesale affiliate may not discriminate in favor | 20 |
| of the retail
affiliate, and the retail affiliate may not | 21 |
| discriminate in favor of the
wholesale
affiliate.
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| (i) The wholesale affiliate must make all products, | 23 |
| services, and service
functions, including network elements, | 24 |
| facilities, interfaces, and systems,
available to each | 25 |
| competitive local exchange carrier at the prices, terms, and
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| conditions at which they are available to the retail affiliate. | 27 |
| The wholesale
affiliate may make all of those products, | 28 |
| services, and service
functions available
to an affiliated or | 29 |
| unaffiliated competitive local exchange carrier
only through
a | 30 |
| tariff or an interconnection agreement approved by the | 31 |
| Commission.
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| (220 ILCS 5/13E-115 new)
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| Sec. 13E-115. Procedure and enforcement under Article.
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| (a) The Commission may adopt:
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| (1) streamlined procedures for review of transactions |
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| between the
retail affiliate and the wholesale affiliate;
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| (2) enforcement measures for violations of this | 3 |
| Article, including
auditing requirements; and
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| (3) any other requirement or procedure necessary or | 5 |
| appropriate
for implementation of this Article.
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| (b) The Commission may enforce the requirements of this | 7 |
| Article under
the provision of Article X.
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| (220 ILCS 5/13E-205 new)
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| Sec. 13E-205. Commencement of proceedings.
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| (a) On or before August 4, 2004, the Commission shall begin
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| proceedings to implement this Article. The Commission shall | 12 |
| conclude the
proceedings on or before February 1, 2005.
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| (b) As part of its proceedings to implement this Article, | 14 |
| the Commission,
after providing all interested parties a full | 15 |
| opportunity to submit proposals,
offer comments, and | 16 |
| participate in hearings, shall by order or rule, establish
a
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| code of conduct governing the relationship between the retail | 18 |
| affiliate and the
wholesale affiliate to ensure that:
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| (1) the retail affiliate is not given any undue | 20 |
| preference or
advantage in its relationship with the | 21 |
| wholesale affiliate; and
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| (2) all services provided by the wholesale affiliate to | 23 |
| the retail
affiliate are provided in a nondiscriminatory | 24 |
| manner as required under
this Article and other applicable | 25 |
| law.
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| (220 ILCS 5/13E-210 new)
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| Sec. 13E-210. Report to the General Assembly. On or before | 28 |
| January 14,
2005, the Commission shall report to the General | 29 |
| Assembly on the status of
competition in local exchange | 30 |
| telephone service in this State and on the
implementation of | 31 |
| this Article.
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| Section 99. Effective date. This Act takes effect July 1, | 33 |
| 2004. |
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