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90_HB1147enr 220 ILCS 5/13-102 from Ch. 111 2/3, par. 13-102 220 ILCS 5/13-103 from Ch. 111 2/3, par. 13-103 220 ILCS 5/13-203 from Ch. 111 2/3, par. 13-203 220 ILCS 5/13-210 from Ch. 111 2/3, par. 13-210 220 ILCS 5/13-216 new 220 ILCS 5/13-217 new 220 ILCS 5/13-405 from Ch. 111 2/3, par. 13-405 220 ILCS 5/13-502 from Ch. 111 2/3, par. 13-502 220 ILCS 5/13-511 new 220 ILCS 5/13-512 new 220 ILCS 5/13-513 new 220 ILCS 5/13-514 new 220 ILCS 5/13-515 new 220 ILCS 5/13-516 new 220 ILCS 5/13-517 new 220 ILCS 5/13-803 from Ch. 111 2/3, par. 13-803 740 ILCS 10/5 from Ch. 38, par. 60-5 Amends the telecommunications Article of the Public Utilities Act. Makes legislative findings that changes in telecommunications regulatory policy have brought benefits to consumers except those in local exchange markets, which remain organized as monopolies, and that the public interest requires a change in the monopoly regulation of local exchange telecommunications. Provides that for a service to be classified as competitive, the service or a substitute service must actually be supplied by more than one provider. Requires the Illinois Commerce Commission to enforce interconnection agreements entered into pursuant to the federal Telecommunications Act of 1996. Establishes penalties for violations of interconnection agreements. Amends the Illinois Antitrust Act to remove the exemption from that Act for telecommunications carriers. Changes the sunset date for the Telecommunications Article to July 1, 2001 from July 1, 1999. Effective immediately. LRB9005036JSgc HB1147 Enrolled LRB9005036JSgc 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 1. Short title. This Act may be cited as the 5 Telecommunications Municipal Infrastructure Maintenance Fee 6 Act. 7 Section 5. Legislative intent. The General Assembly 8 imposed a tax on invested capital of utilities to partially 9 replace the personal property tax that was abolished by the 10 Illinois Constitution of 1970. Since that tax was imposed, 11 telecommunications retailers have evolved from utility status 12 into an increasingly competitive industry serving the public. 13 This Act is intended to abolish the invested capital tax on 14 telecommunications retailers (that is, persons engaged in the 15 business of transmitting messages and acting as a retailer of 16 telecommunications as defined in Section 2 of the 17 Telecommunications Excise Tax Act. Cellular 18 Telecummunications retailers have already been excluded from 19 application of the invested capital tax by earlier 20 legislative action. This Act is also intended to abolish 21 municipal franchise fees with respect to telecommunications 22 retailers, create a uniform system for the collection and 23 distribution of fees associated with the privilege of use of 24 the public right of way for telecommunications activity, and 25 provide municipalities with a comprehensive method of 26 compensation for telecommunications activity including the 27 recovery of reasonable costs of regulating the use of the 28 public rights-of-way for telecommunications activity. 29 Section 10. Definitions. 30 (a) "Gross charges" means the amount paid to a HB1147 Enrolled -2- LRB9005036JSgc 1 telecommunications retailer for the act or privilege of 2 originating or receiving telecommunications in this State or 3 the municipality imposing the fee under this Act, as the 4 context requires, and for all services rendered in connection 5 therewith, valued in money whether paid in money or 6 otherwise, including cash, credits, services, and property of 7 every kind or nature, and shall be determined without any 8 deduction on account of the cost of such telecommunications, 9 the cost of the materials used, labor or service costs, or 10 any other expense whatsoever. In case credit is extended, 11 the amount thereof shall be included only as and when paid. 12 "Gross charges" for private line service shall include 13 charges imposed at each channel point within this State or 14 the municipality imposing the fee under this Act, charges for 15 the channel mileage between each channel point within this 16 State or the municipality imposing the fee under this Act, 17 and charges for that portion of the interstate inter-office 18 channel provided within Illinois or the municipality imposing 19 the fee under this Act. However, "gross charges" shall not 20 include: 21 (1) any amounts added to a purchaser's bill because 22 of a charge made under: (i) the fee imposed by this 23 Section, (ii) additional charges added to a purchaser's 24 bill under Section 9-221 or 9-222 of the Public Utilities 25 Act, (iii) amounts collected under Section 8-11-17 of the 26 Illinois Municipal Code, (iv) the tax imposed by the 27 Telecommunications Excise Tax Act, (v) 911 surcharges, or 28 (vi) the tax imposed by Section 4251 of the Internal 29 Revenue Code; 30 (2) charges for a sent collect telecommunication 31 received outside of this State or the municipality 32 imposing the fee, as the context requires; 33 (3) charges for leased time on equipment or charges 34 for the storage of data or information or subsequent HB1147 Enrolled -3- LRB9005036JSgc 1 retrieval or the processing of data or information 2 intended to change its form or content. Such equipment 3 includes, but is not limited to, the use of calculators, 4 computers, data processing equipment, tabulating 5 equipment, or accounting equipment and also includes the 6 usage of computers under a time-sharing agreement. 7 (4) charges for customer equipment, including such 8 equipment that is leased or rented by the customer from 9 any source, wherein such charges are disaggregated and 10 separately identified from other charges; 11 (5) charges to business enterprises certified under 12 Section 9-222.1 of the Public Utilities Act to the extent 13 of such exemption and during the period of time specified 14 by the Department of Commerce and Community Affairs or by 15 the municipality imposing the fee under the Act, as the 16 context requires; 17 (6) charges for telecommunications and all services 18 and equipment provided in connection therewith between a 19 parent corporation and its wholly owned subsidiaries or 20 between wholly owned subsidiaries, and only to the extent 21 that the charges between the parent corporation and 22 wholly owned subsidiaries or between wholly owned 23 subsidiaries represent expense allocation between the 24 corporations and not the generation of profit other than 25 a regulatory required profit for the corporation 26 rendering such services; 27 (7) bad debts ("bad debt" means any portion of a 28 debt that is related to a sale at retail for which gross 29 charges are not otherwise deductible or excludable that 30 has become worthless or uncollectible, as determined 31 under applicable federal income tax standards; if the 32 portion of the debt deemed to be bad is subsequently 33 paid, the retailer shall report and pay the tax on that 34 portion during the reporting period in which the payment HB1147 Enrolled -4- LRB9005036JSgc 1 is made); 2 (8) charges paid by inserting coins in 3 coin-operated telecommunication devices; or 4 (9) charges for telecommunications and all services 5 and equipment provided to a municipality imposing the 6 infrastructure maintenance fee. 7 (b) "Telecommunications" includes, but is not limited 8 to, messages or information transmitted through use of local, 9 toll, and wide area telephone service, channel services, 10 telegraph services, teletypewriter service, computer exchange 11 services, private line services, specialized mobile radio 12 services, or any other transmission of messages or 13 information by electronic or similar means, between or among 14 points by wire, cable, fiber optics, laser, microwave, radio, 15 satellite, or similar facilities. Unless the context clearly 16 requires otherwise, "telecommunications" shall also include 17 wireless telecommunications as hereinafter defined. 18 "Telecommunications" shall not include value added services 19 in which computer processing applications are used to act on 20 the form, content, code, and protocol of the information for 21 purposes other than transmission. "Telecommunications" shall 22 not include purchase of telecommunications by a 23 telecommunications service provider for use as a component 24 part of the service provided by him or her to the ultimate 25 retail consumer who originates or terminates the end-to-end 26 communications. Retailer access charges, right of access 27 charges, charges for use of intercompany facilities, and all 28 telecommunications resold in the subsequent provision and 29 used as a component of, or integrated into, end-to-end 30 telecommunications service shall not be included in gross 31 charges as sales for resale. "Telecommunications" shall not 32 include the provision of cable services through a cable 33 system as defined in the Cable Communications Act of 1984 (47 34 U.S.C. Sections 521 and following) as now or hereafter HB1147 Enrolled -5- LRB9005036JSgc 1 amended or through an open video system as defined in the 2 Rules of the Federal Communications Commission (47 C.D.F. 3 76.1550 and following) as now or hereafter amended. 4 (c) "Wireless telecommunications" includes cellular 5 mobile telephone services, personal wireless services as 6 defined in Section 704(C) of the Telecommunications Act of 7 1996 (Public Law No. 104-104) as now or hereafter amended, 8 including all commercial mobile radio services, and paging 9 services. 10 (d) "Telecommunications retailer" or "retailer" or 11 "carrier" means and includes every person engaged in the 12 business of making sales of telecommunications at retail as 13 defined in this Section. The Illinois Department of Revenue 14 or the municipality imposing the fee, as the case may be, 15 may, in its discretion, upon applications, authorize the 16 collection of the fee hereby imposed by any retailer not 17 maintaining a place of business within this State, who, to 18 the satisfaction of the Department or municipality, furnishes 19 adequate security to insure collection and payment of the 20 fee. When so authorized, it shall be the duty of such 21 retailer to pay the fee upon all of the gross charges for 22 telecommunications in the same manner and subject to the same 23 requirements as a retailer maintaining a place of business 24 within the State or municipality imposing the fee. 25 (e) "Retailer maintaining a place of business in this 26 State", or any like term, means and includes any retailer 27 having or maintaining within this State, directly or by a 28 subsidiary, an office, distribution facilities, transmission 29 facilities, sales office, warehouse, or other place of 30 business, or any agent or other representative operating 31 within this State under the authority of the retailer or its 32 subsidiary, irrespective of whether such place of business or 33 agent or other representative is located here permanently or 34 temporarily, or whether such retailer or subsidiary is HB1147 Enrolled -6- LRB9005036JSgc 1 licensed to do business in this State. 2 (f) "Sale of telecommunications at retail" means the 3 transmitting, supplying, or furnishing of telecommunications 4 and all services rendered in connection therewith for a 5 consideration, other than between a parent corporation and 6 its wholly owned subsidiaries or between wholly owned 7 subsidiaries, when the gross charge made by one such 8 corporation to another such corporation is not greater than 9 the gross charge paid to the retailer for their use or 10 consumption and not for sale. 11 (g) "Service address" means the location of 12 telecommunications equipment from which telecommunications 13 services are originated or at which telecommunications 14 services are received. If this is not a defined location, as 15 in the case of wireless telecommunications, paging systems, 16 maritime systems, air-to-ground systems, and the like, 17 "service address" shall mean the location of the customer's 18 primary use of the telecommunications equipment as defined by 19 the location in Illinois where bills are sent. 20 Section 15. State telecommunications infrastructure 21 maintenance fees. 22 (a) A State infrastructure maintenance fee is hereby 23 imposed upon telecommunications retailers as a replacement 24 for the personal property tax in an amount specified in 25 subsection (b). 26 (b) The amount of the State infrastructure maintenance 27 fee imposed upon a telecommunications retailer under this 28 Section shall be equal to 0.5% of all gross charges charged 29 by the telecommunications retailer to service addresses in 30 this State for telecommunications, other than wireless 31 telecommunications, originating or received in this State. 32 However, the State infrastructure maintenance fee is not 33 imposed in any case in which the imposition of the fee would HB1147 Enrolled -7- LRB9005036JSgc 1 violate the Constitution or statutes of the United States. 2 (c) An optional infrastructure maintenance fee is hereby 3 created. A telecommunications retailer may elect to pay the 4 optional infrastructure maintenance fee with respect to the 5 gross charges charged by the telecommunications retailer to 6 service addresses in a particular municipality for 7 telecommunications, other than wireless telecommunications, 8 originating or received in the municipality if (1) the 9 telecommunications retailer is not required to pay any 10 compensation to the municipality under an existing franchise 11 agreement and (2) the municipality has not imposed a 12 municipal infrastructure maintenance fee as authorized in 13 Section 20 of this Act. If a telecommunications retailer 14 elects to pay this fee with respect to the gross charges 15 charged by the telecommunications retailer to service 16 addresses in a particular municipality, such election shall 17 remain in full force and effect until such time as the 18 municipality imposes a municipal infrastructure maintenance 19 fee. 20 (d) The amount of the optional infrastructure 21 maintenance fee which a telecommunications retailer may elect 22 to pay with respect to a particular municipality shall be 23 equal to 25% of the maximum amount of the municipal 24 infrastructure maintenance fee which the municipality could 25 impose under Section 20 of this Act. 26 (e) The State infrastructure maintenance fee and the 27 optional infrastructure maintenance fee authorized by this 28 Section shall be collected, enforced, and administered as set 29 forth in Section 25 of this Act. 30 Section 20. Municipal telecommunications infrastructure 31 maintenance fee. 32 (a) A municipality may impose a municipal infrastructure 33 maintenance fee upon telecommunications retailers in an HB1147 Enrolled -8- LRB9005036JSgc 1 amount specified in subsection (b). 2 (b) The amount of the municipal infrastructure 3 maintenance fee imposed upon a telecommunications retailer 4 under this Section shall not exceed: (i) in a municipality 5 with a population of more than 500,000, 2.0% of all gross 6 charges charged by the telecommunications retailer to service 7 addresses in the municipality for telecommunications 8 originating or received in the municipality; and (ii) in a 9 municipality with a population of 500,000 or less, 1.0% of 10 all gross charges charged by the telecommunications retailer 11 to service addresses in the municipality for 12 telecommunications originating or received in the 13 municipality. If imposed, the municipal telecommunications 14 infrastructure fee must be in 1/4% increments. However, the 15 fee shall not be imposed in any case in which the imposition 16 of the fee would violate the Constitution or statutes of the 17 United States. 18 (c) The municipal telecommunications infrastructure fee 19 authorized by this Section shall be collected, enforced, and 20 administered as set forth in Section 25 of this Act. 21 Section 25. Collection, enforcement, and administration 22 of telecommunications infrastructure maintenance fees. 23 (a) A telecommunications retailer shall charge each 24 customer an additional charge equal to the sum of (1) an 25 amount equal to the State infrastructure maintenance fee 26 attributable to that customer's service address and (2) an 27 amount equal to the optional infrastructure maintenance fee, 28 if any, attributable to that customer's service address and 29 (3) an amount equal to the municipal infrastructure 30 maintenance fee, if any, attributable to that customer's 31 service address. Such additional charge shall be shown 32 separately on the bill to each customer. 33 (b) The State infrastructure maintenance fee and the HB1147 Enrolled -9- LRB9005036JSgc 1 optional infrastructure maintenance fee shall be designated 2 as a replacement for the personal property tax and shall be 3 remitted by the telecommunications retailer to the Illinois 4 Department of Revenue; provided, however, that the 5 telecommunications retailer may retain an amount not to 6 exceed 2% of the State infrastructure maintenance fee and the 7 optional infrastructure maintenance fee, if any, collected by 8 it to reimburse itself for expenses incurred in accounting 9 for and remitting the fee. All amounts herein remitted to 10 the Department shall be transferred to the Personal Property 11 Tax Replacement Fund in the State Treasury. 12 (c) The municipal infrastructure maintenance fee shall 13 be remitted by the telecommunications retailer to the 14 municipality imposing the municipal infrastructure 15 maintenance fee; provided, however, that the 16 telecommunications retailer may retain an amount not to 17 exceed 2% of the municipal infrastructure maintenance fee 18 collected by it to reimburse itself for expenses incurred in 19 accounting for and remitting the fee. The municipality 20 imposing the municipal infrastructure maintenance fee shall 21 collect, enforce, and administer the fee. 22 (d) Amounts paid under this Act by telecommunications 23 retailers shall not be included in the tax base under any of 24 the following Acts as described immediately below: 25 (1) "gross charges" for purposes of the 26 Telecommunications Excise Tax Act; 27 (2) "gross receipts" for purposes of the municipal 28 utility tax as prescribed in Section 8-11-2 of the 29 Illinois Municipal Code; 30 (3) "gross charge" for purposes of the municipal 31 telecommunications tax as prescribed in Section 8-11-17 32 of the Illinois Municipal Code; 33 (4) "gross revenue" for purposes of the tax on 34 annual gross revenue of public utilities as prescribed in HB1147 Enrolled -10- LRB9005036JSgc 1 Section 2-202 of the Public Utilities Act. 2 (e) Except as provided in subsection (f), during any 3 period of time when a municipality receives any compensation 4 other than the municipal infrastructure maintenance fee set 5 forth in Section 20, for a telecommunications retailer's use 6 of the public right-of-way, no municipal infrastructure 7 maintenance fee may be imposed by such municipality pursuant 8 to this Act. 9 (f) A municipality that, pursuant to a franchise 10 agreement in existence on the effective date of this Act, 11 receives compensation from a telecommunications retailer for 12 the use of the public right of way, may impose a municipal 13 infrastructure maintenance fee pursuant to this Act only on 14 the condition that such municipality (1) waives its right to 15 receive all fees, charges and other compensation under all 16 existing franchise agreements or the like with 17 telecommunications retailers during the time that the 18 municipality imposes a municipal infrastructure maintenance 19 fee and (2) imposes by ordinance (or other proper means) a 20 municipal infrastructure maintenance fee which becomes 21 effective no sooner than 90 days after such municipality has 22 provided written notice by certified mail to each 23 telecommunications retailer with whom the municipality has an 24 existing franchise agreement, that the municipality waives 25 all compensation under such existing franchise agreement. 26 Section 30. Validity of existing franchise fees and 27 agreements. 28 (a) Upon the effective date of this Act, the municipal 29 infrastructure maintenance fee authorized by this Act shall 30 be the only fee or compensation for recovering the reasonable 31 costs of regulating the use of the public rights-of-way and 32 for the use of public rights-of-way that may be levied by or 33 otherwise required by ordinance, resolution, or contract to HB1147 Enrolled -11- LRB9005036JSgc 1 be paid to a municipality for the use of its public way by 2 telecommunications retailers. No new fees shall be imposed 3 upon or other charges required from telecommunications 4 retailers by municipalities from and after the effective date 5 of this Act. No telecommunications retailer paying either 6 the applicable municipal infrastructure maintenance fee or 7 the optional infrastructure maintenance fee authorized by 8 this Act may be denied the use, directly or indirectly, of 9 the public way of the municipality either imposing the 10 municipal infrastructure maintenance fee or to which the 11 optional infrastructure maintenance fee relates, as the case 12 may be, as authorized under the Telephone Company Act. 13 Nothing in this Act shall excuse any person or entity from 14 obligations imposed under any law concerning generally 15 applicable taxes or standards for construction on, over, 16 under, or within, use of or repair of the public 17 rights-of-way, including standards relating to free standing 18 towers and other structures upon the public way, nor shall 19 any person or entity be excused from any liability imposed by 20 any such law for the failure to comply with such generally 21 applicable taxes or standards governing construction on, 22 over, under, or within, use of or repair of the public 23 rights-of-way. 24 (b) Agreements between telecommunications retailers and 25 municipalities entered into before the effective date of this 26 Act regarding use of the public ways shall remain valid 27 according to and for their stated terms. If, following the 28 effective date of this Act, such an agreement is renewed 29 automatically or by agreement of the parties, the 30 compensation or fee under the agreement shall be equal to the 31 maximum amount of the municipal infrastructure maintenance 32 fee which the municipality could impose under Section 20 of 33 this Act. 34 (c) The regulation of the terms and conditions upon HB1147 Enrolled -12- LRB9005036JSgc 1 which poles, conduits, and other facilities located in the 2 public way may be shared by or between telecommunications 3 retailers shall be committed exclusively to the jurisdiction 4 of the Illinois Commerce Commission and the Federal 5 Communications Commission, and such regulation shall not be 6 among the home rule powers and functions described in 7 subsection (h) of Section 6 of Article VII of the Illinois 8 Constitution. Moreover, no municipality may enter into any 9 contract or agreement with a telecommunications retailer with 10 respect to the terms and conditions upon which poles, 11 conduits, and other facilities located in the public way may 12 be shared by or between telecommunications retailers. 13 Section 35. Home rule. The authorization of 14 infrastructure maintenance fees and other fees relating to 15 the use of the public right-of-way for telecommunications 16 activity imposed upon telecommunications retailers is an 17 exclusive power and function of the State. A home rule 18 municipality may not impose franchise or other fees upon or 19 require other compensation from telecommunications retailers 20 for use of the public way, other than the municipal 21 infrastructure maintenance fee authorized by this Act. This 22 Act is a denial and limitation of municipal home rule powers 23 and functions under subsection (h) of Section 6 of Article 24 VII of the Illinois Constitution. 25 Section 40. Severability. If any provision of this Act 26 or its application to any person or circumstance is held 27 invalid, the invalidity of the provision or application does 28 not affect other provisions or applications of the Act that 29 can be given effect without the invalid provision or 30 application. 31 (35 ILCS 610/2a.1 rep.) HB1147 Enrolled -13- LRB9005036JSgc 1 Section 905. The Messages Tax Act is amended by 2 repealing Section 2a.1. 3 Section 910. The State Revenue Sharing Act is amended by 4 changing Section 12 as follows: 5 (30 ILCS 115/12) (from Ch. 85, par. 616) 6 Sec. 12. Personal Property Tax Replacement Fund. There 7 is hereby created the Personal Property Tax Replacement Fund, 8 a special fund in the State Treasury into which shall be paid 9 all revenue realized: 10 (a) all amounts realized from the additional personal 11 property tax replacement income tax imposed by subsections 12 (c) and (d) of Section 201 of the Illinois Income Tax Act, 13 except for those amounts deposited into the Income Tax Refund 14 Fund pursuant to subsection (c) of Section 901 of the 15 Illinois Income Tax Act; and 16 (b) all amounts realized from the additional personal 17 property replacement invested capital taxes imposed by 18 Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas 19 Revenue Tax Act, Section 2a.1 of the Public Utilities 20 Revenue Act, and Section 3 of the Water Company Invested 21 Capital Tax Act, and amounts payable to the Department of 22 Revenue under the Telecommunications Municipal Infrastructure 23 Maintenance Act. 24 As soon as may be after the end of each month, the 25 Department of Revenue shall certify to the Treasurer and the 26 Comptroller the amount of all refunds paid out of the General 27 Revenue Fund through the preceding month on account of 28 overpayment of liability on taxes paid into the Personal 29 Property Tax Replacement Fund. Upon receipt of such 30 certification, the Treasurer and the Comptroller shall 31 transfer the amount so certified from the Personal Property 32 Tax Replacement Fund into the General Revenue Fund. HB1147 Enrolled -14- LRB9005036JSgc 1 The payments of revenue into the Personal Property Tax 2 Replacement Fund shall be used exclusively for distribution 3 to taxing districts as provided in this Section, payment of 4 the expenses of the Department of Revenue incurred in 5 administering the collection and distribution of monies paid 6 into the Personal Property Tax Replacement Fund and transfers 7 due to refunds to taxpayers for overpayment of liability for 8 taxes paid into the Personal Property Tax Replacement Fund. 9 As soon as may be after the effective date of this 10 amendatory Act of 1980, the Department of Revenue shall 11 certify to the Treasurer the amount of net replacement 12 revenue paid into the General Revenue Fund prior to that 13 effective date from the additional tax imposed by Section 14 2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue 15 Tax Act; Section 2a.1 of the Public Utilities Revenue Act; 16 Section 3 of the Water Company Invested Capital Tax Act; 17 amounts collected by the Department of Revenue under the 18 Telecommunications Municipal Infrastructure Maintenance Fee 19 Act; and the additional personal property tax replacement 20 income tax imposed by the Illinois Income Tax Act, as amended 21 by Public Act 81-1st Special Session-1. Net replacement 22 revenue shall be defined as the total amount paid into and 23 remaining in the General Revenue Fund as a result of those 24 Acts minus the amount outstanding and obligated from the 25 General Revenue Fund in state vouchers or warrants prior to 26 the effective date of this amendatory Act of 1980 as refunds 27 to taxpayers for overpayment of liability under those Acts. 28 All interest earned by monies accumulated in the Personal 29 Property Tax Replacement Fund shall be deposited in such 30 Fund. All amounts allocated pursuant to this Section are 31 appropriated on a continuing basis. 32 Prior to December 31, 1980, as soon as may be after the 33 end of each quarter beginning with the quarter ending 34 December 31, 1979, and on and after December 31, 1980, as HB1147 Enrolled -15- LRB9005036JSgc 1 soon as may be after January 1, March 1, April 1, May 1, July 2 1, August 1, October 1 and December 1 of each year, the 3 Department of Revenue shall allocate to each taxing district 4 as defined in Section 1-150 of the Property Tax Code, in 5 accordance with the provisions of paragraph (2) of this 6 Section the portion of the funds held in the Personal 7 Property Tax Replacement Fund which is required to be 8 distributed, as provided in paragraph (1), for each quarter. 9 Provided, however, under no circumstances shall any taxing 10 district during each of the first two years of distribution 11 of the taxes imposed by this amendatory Act of 1979 be 12 entitled to an annual allocation which is less than the funds 13 such taxing district collected from the 1978 personal 14 property tax. Provided further that under no circumstances 15 shall any taxing district during the third year of 16 distribution of the taxes imposed by this amendatory Act of 17 1979 receive less than 60% of the funds such taxing district 18 collected from the 1978 personal property tax. In the event 19 that the total of the allocations made as above provided for 20 all taxing districts, during either of such 3 years, exceeds 21 the amount available for distribution the allocation of each 22 taxing district shall be proportionately reduced. Except as 23 provided in Section 13 of this Act, the Department shall then 24 certify, pursuant to appropriation, such allocations to the 25 State Comptroller who shall pay over to the several taxing 26 districts the respective amounts allocated to them. 27 Any township which receives an allocation based in whole 28 or in part upon personal property taxes which it levied 29 pursuant to Section 6-507 or 6-512 of the Illinois Highway 30 Code and which was previously required to be paid over to a 31 municipality shall immediately pay over to that municipality 32 a proportionate share of the personal property replacement 33 funds which such township receives. 34 Any municipality or township, other than a municipality HB1147 Enrolled -16- LRB9005036JSgc 1 with a population in excess of 500,000, which receives an 2 allocation based in whole or in part on personal property 3 taxes which it levied pursuant to Sections 3-1, 3-4 and 3-6 4 of the Illinois Local Library Act and which was previously 5 required to be paid over to a public library shall 6 immediately pay over to that library a proportionate share of 7 the personal property tax replacement funds which such 8 municipality or township receives; provided that if such a 9 public library has converted to a library organized under The 10 Illinois Public Library District Act, regardless of whether 11 such conversion has occurred on, after or before January 1, 12 1988, such proportionate share shall be immediately paid over 13 to the library district which maintains and operates the 14 library. However, any library that has converted prior to 15 January 1, 1988, and which hitherto has not received the 16 personal property tax replacement funds, shall receive such 17 funds commencing on January 1, 1988. 18 Any township which receives an allocation based in whole 19 or in part on personal property taxes which it levied 20 pursuant to Section 1c of the Public Graveyards Act and which 21 taxes were previously required to be paid over to or used for 22 such public cemetery or cemeteries shall immediately pay over 23 to or use for such public cemetery or cemeteries a 24 proportionate share of the personal property tax replacement 25 funds which the township receives. 26 Any taxing district which receives an allocation based in 27 whole or in part upon personal property taxes which it levied 28 for another governmental body or school district in Cook 29 County in 1976 or for another governmental body or school 30 district in the remainder of the State in 1977 shall 31 immediately pay over to that governmental body or school 32 district the amount of personal property replacement funds 33 which such governmental body or school district would receive 34 directly under the provisions of paragraph (2) of this HB1147 Enrolled -17- LRB9005036JSgc 1 Section, had it levied its own taxes. 2 (1) The portion of the Personal Property Tax Replacement 3 Fund required to be distributed as of the time allocation is 4 required to be made shall be the amount available in such 5 Fund as of the time allocation is required to be made. 6 The amount available for distribution shall be the total 7 amount in the fund at such time minus the necessary 8 administrative expenses as limited by the appropriation and 9 the amount determined by: (a) $2.8 million for fiscal year 10 1981; (b) for fiscal year 1982, .54% of the funds distributed 11 from the fund during the preceding fiscal year; (c) for 12 fiscal year 1983 through fiscal year 1988, .54% of the funds 13 distributed from the fund during the preceding fiscal year 14 less .02% of such fund for fiscal year 1983 and less .02% of 15 such funds for each fiscal year thereafter, or (d) for fiscal 16 year 1989 and beyond no more than 105% of the actual 17 administrative expenses of the prior fiscal year. Such 18 portion of the fund shall be determined after the transfer 19 into the General Revenue Fund due to refunds, if any, paid 20 from the General Revenue Fund during the preceding quarter. 21 If at any time, for any reason, there is insufficient amount 22 in the Personal Property Tax Replacement Fund for payment of 23 costs of administration or for transfers due to refunds at 24 the end of any particular month, the amount of such 25 insufficiency shall be carried over for the purposes of 26 transfers into the General Revenue Fund and for purposes of 27 costs of administration to the following month or months. 28 Net replacement revenue held, and defined above, shall be 29 transferred by the Treasurer and Comptroller to the Personal 30 Property Tax Replacement Fund within 10 days of such 31 certification. 32 (2) Each quarterly allocation shall first be apportioned 33 in the following manner: 51.65% for taxing districts in Cook 34 County and 48.35% for taxing districts in the remainder of HB1147 Enrolled -18- LRB9005036JSgc 1 the State. 2 The Personal Property Replacement Ratio of each taxing 3 district outside Cook County shall be the ratio which the Tax 4 Base of that taxing district bears to the Downstate Tax Base. 5 The Tax Base of each taxing district outside of Cook County 6 is the personal property tax collections for that taxing 7 district for the 1977 tax year. The Downstate Tax Base is 8 the personal property tax collections for all taxing 9 districts in the State outside of Cook County for the 1977 10 tax year. The Department of Revenue shall have authority to 11 review for accuracy and completeness the personal property 12 tax collections for each taxing district outside Cook County 13 for the 1977 tax year. 14 The Personal Property Replacement Ratio of each Cook 15 County taxing district shall be the ratio which the Tax Base 16 of that taxing district bears to the Cook County Tax Base. 17 The Tax Base of each Cook County taxing district is the 18 personal property tax collections for that taxing district 19 for the 1976 tax year. The Cook County Tax Base is the 20 personal property tax collections for all taxing districts in 21 Cook County for the 1976 tax year. The Department of Revenue 22 shall have authority to review for accuracy and completeness 23 the personal property tax collections for each taxing 24 district within Cook County for the 1976 tax year. 25 For all purposes of this Section 12, amounts paid to a 26 taxing district for such tax years as may be applicable by a 27 foreign corporation under the provisions of Section 7-202 of 28 the Public Utilities Act, as amended, shall be deemed to be 29 personal property taxes collected by such taxing district for 30 such tax years as may be applicable. The Director shall 31 determine from the Illinois Commerce Commission, for any tax 32 year as may be applicable, the amounts so paid by any such 33 foreign corporation to any and all taxing districts. The 34 Illinois Commerce Commission shall furnish such information HB1147 Enrolled -19- LRB9005036JSgc 1 to the Director. For all purposes of this Section 12, the 2 Director shall deem such amounts to be collected personal 3 property taxes of each such taxing district for the 4 applicable tax year or years. 5 Taxing districts located both in Cook County and in one 6 or more other counties shall receive both a Cook County 7 allocation and a Downstate allocation determined in the same 8 way as all other taxing districts. 9 If any taxing district in existence on July 1, 1979 10 ceases to exist, or discontinues its operations, its Tax Base 11 shall thereafter be deemed to be zero. If the powers, duties 12 and obligations of the discontinued taxing district are 13 assumed by another taxing district, the Tax Base of the 14 discontinued taxing district shall be added to the Tax Base 15 of the taxing district assuming such powers, duties and 16 obligations. 17 If two or more taxing districts in existence on July 1, 18 1979, or a successor or successors thereto shall consolidate 19 into one taxing district, the Tax Base of such consolidated 20 taxing district shall be the sum of the Tax Bases of each of 21 the taxing districts which have consolidated. 22 If a single taxing district in existence on July 1, 1979, 23 or a successor or successors thereto shall be divided into 24 two or more separate taxing districts, the tax base of the 25 taxing district so divided shall be allocated to each of the 26 resulting taxing districts in proportion to the then current 27 equalized assessed value of each resulting taxing district. 28 If a portion of the territory of a taxing district is 29 disconnected and annexed to another taxing district of the 30 same type, the Tax Base of the taxing district from which 31 disconnection was made shall be reduced in proportion to the 32 then current equalized assessed value of the disconnected 33 territory as compared with the then current equalized 34 assessed value within the entire territory of the taxing HB1147 Enrolled -20- LRB9005036JSgc 1 district prior to disconnection, and the amount of such 2 reduction shall be added to the Tax Base of the taxing 3 district to which annexation is made. 4 If a community college district is created after July 1, 5 1979, beginning on the effective date of this amendatory Act 6 of 1995, its Tax Base shall be 3.5% of the sum of the 7 personal property tax collected for the 1977 tax year within 8 the territorial jurisdiction of the district. 9 The amounts allocated and paid to taxing districts 10 pursuant to the provisions of this amendatory Act of 1979 11 shall be deemed to be substitute revenues for the revenues 12 derived from taxes imposed on personal property pursuant to 13 the provisions of the "Revenue Act of 1939" or "An Act for 14 the assessment and taxation of private car line companies", 15 approved July 22, 1943, as amended, or Section 414 of the 16 Illinois Insurance Code, prior to the abolition of such taxes 17 and shall be used for the same purposes as the revenues 18 derived from ad valorem taxes on real estate. 19 Monies received by any taxing districts from the Personal 20 Property Tax Replacement Fund shall be first applied toward 21 payment of the proportionate amount of debt service which was 22 previously levied and collected from extensions against 23 personal property on bonds outstanding as of December 31, 24 1978 and next applied toward payment of the proportionate 25 share of the pension or retirement obligations of the taxing 26 district which were previously levied and collected from 27 extensions against personal property. For each such 28 outstanding bond issue, the County Clerk shall determine the 29 percentage of the debt service which was collected from 30 extensions against real estate in the taxing district for 31 1978 taxes payable in 1979, as related to the total amount of 32 such levies and collections from extensions against both real 33 and personal property. For 1979 and subsequent years' taxes, 34 the County Clerk shall levy and extend taxes against the real HB1147 Enrolled -21- LRB9005036JSgc 1 estate of each taxing district which will yield the said 2 percentage or percentages of the debt service on such 3 outstanding bonds. The balance of the amount necessary to 4 fully pay such debt service shall constitute a first and 5 prior lien upon the monies received by each such taxing 6 district through the Personal Property Tax Replacement Fund 7 and shall be first applied or set aside for such purpose. In 8 counties having fewer than 3,000,000 inhabitants, the 9 amendments to this paragraph as made by this amendatory Act 10 of 1980 shall be first applicable to 1980 taxes to be 11 collected in 1981. 12 (Source: P.A. 88-670, eff. 12-2-94; 89-327, eff. 1-1-96.) 13 Section 915. The Public Utilities Act is amended by 14 adding Section 13-511 and changing Section 13-704 as follows: 15 (220 ILCS 5/13-511 new) 16 Sec. 13-511. Telecommunications Municipal Infrastructure 17 Maintenance Fee Act; rate adjustments. With respect to any 18 telecommunications retailer that is regulated by the Illinois 19 Commerce Commission, the Commission shall order such rate 20 adjustments as shall be necessary to assure that the 21 implementation of the Telecommunications Municipal 22 Infrastructure Maintenance Fee Act, including the payment of 23 the State infrastructure maintenance fee, optional 24 infrastructure maintenance fee, and municipal infrastructure 25 maintenance fee, if any, net of (1) the termination of any 26 fee, license fee, rent, or lease payment subject to the 27 Telecommunications Municipal Infrastructure Maintenance Fee 28 Act, and (2) the repeal of any invested capital tax subject 29 to the Telecommunications Municipal Infrastructure 30 Maintenance Fee Act, shall have no significant impact on the 31 net income of each such telecommunications retailer. 32 Beginning with the effective date of the Telecommunications HB1147 Enrolled -22- LRB9005036JSgc 1 Municipal Infrastructure Maintenance Fee Act, each such 2 telecommunications retailer shall maintain such records and 3 accounts as will enable the Commission to make such findings 4 and determinations as are necessary to such order. 5 (220 ILCS 5/13-704) (from Ch. 111 2/3, par. 13-704) 6 (This Section is scheduled to be repealed July 1, 1999.) 7 Sec. 13-704. Each page of a billing statement which sets 8 forth charges assessed against a customer by a 9 telecommunications carrier for telecommunications service 10 shall reflect the telephone number or customer account number 11 to which the charges are being billed. The billing statement 12 shall also contain a separate bill identifying the amount 13 charged as an infrastructure maintenance fee. 14 (Source: P.A. 84-1063.) 15 Section 920. The Telephone Company Act is amended by 16 changing Section 4 as follows: 17 (220 ILCS 65/4) (from Ch. 134, par. 20) 18 Sec. 4. Right of condemnation. Every telecommunciations 19 carrier as defined in the Telecommunications Municipal 20 Infrastructure Maintenance Fee Actsuch companymay, when it 21 shall be necessary for the construction, maintenance, 22 alteration or extension of its telecommunications system 23telephone system, or any part thereof, enter upon, take or 24 damage private property in the manner provided for in, and 25 the compensation therefor shall be ascertained and made in 26 conformity to the provisions of the Telegraph Act. "An Act to27revise the law in relation to telegraph companies", approved28March 24, 1874,and every telecommunications carriersuch29companyis authorized to construct, maintain, alter and 30 extend its poles, wires,cablesand other appliances as a 31 proper use of highways, along, upon, under and across any HB1147 Enrolled -23- LRB9005036JSgc 1 highway, street, alley, public right-of-way dedicated or 2 commonly used for utility purposes, or wateror public ground3 in this State, but so as not to incommode the public in the 4 use thereof: Provided, that nothing in this act shall 5 interfere with the control now vested in cities, incorporated 6 towns and villages in relation to the regulation of the 7 poles, wires, cables and other appliances, and provided, that 8 before any such lines shall be constructed along any such 9 highway, street, alley, public right-of-way dedicated or 10 commonly used for utility purposes, or water it shall be the 11 duty of the telecommunications carriertelephone company12 proposing to construct any such line, to give (in the case of 13 cities, villages, and incorporated towns) to the corporate 14 authorities of the municipality or their designees 15 (hereinafter, municipal corporate authorities) or (in other 16 cases) to the highway commissioners having jurisdiction and 17 control over the road or part thereof along and over which 18 such line is proposed to be constructed, notice in writing in 19 the form of plans, specifications, and documentation of the 20 purpose and intention of thesaidcompany to construct such 21 line over and along thesaid road orhighway, street, alley, 22 public right-of-way dedicated or commonly used for utility 23 purposes, or water, whichsaidnotice shall be served at 24 least 10tendays before thesaidline shall be placed or 25 constructed over and along thesaidhighway, street, alley, 26 public right-of-way dedicated or commonly used for utility 27 purposes, or water (30 days in the case of any notice 28 providing for excavation relating to new construction in a 29 public highway, street, alley, public right-of-way dedicated 30 or commonly used for utility purposes, or water); and upon 31 the giving of thesaidnotice it shall be the duty of the 32 municipal corporate authorities or thesaidhighway 33 commissioners to specify the portion of suchroad orhighway, 34 street, alley, public right-of-way dedicated or commonly used HB1147 Enrolled -24- LRB9005036JSgc 1 for utility purposes, or water upon which thesaidline may 2 be placed, used, and constructed, and it shall thereupon be 3 the duty of the telecommunications retailer to provide the 4 municipal authorities or highway commissioners with any and 5 all plans, specifications, and documentation available and 6said companyto construct itssaidline in accordance with 7 such specifications; but in the event that the municipal 8 corporate authorities or thesaidhighway commissioners 9shall, for any reason,fail to providemakesuch 10 specification within 10tendays after the service of such 11 notice, (25 days in the case of excavation relating to new 12 construction) then the telecommunications retailersaid13company, without such specification having been made, may 14 proceed to place and erect itssaidline along thesaid15 highway, street, alley, public right-of-way dedicated or 16 commonly used for utility purposes, or water by placing its 17 posts, poles and abutments so as not to interfere with other 18 proper uses of thesaid road orhighway, street, alley, 19 public right-of-way dedicated or commonly used for utility 20 purposes, or water. The telecommunications carriertelephone21companyproposing to construct any such line shall comply 22 with the provisions of Section 9--113 of the Illinois Highway 23 Code, as the same may from time to time be amended. Provided, 24 that the telecommunications carriersuch telephone companies25 shall not have the right to condemn any portion of the 26 right-of-wayright of wayof any railroad company except as 27 much thereof as is necessary to cross the same. 28 The Illinois Commerce Commission may adopt reasonable 29 rules governing the negotiation procedures that are used by a 30 telecommunications carriercompany described in Section 1 of31this Actduring precondemnation negotiations for the purchase 32 of land rights-of-way andright-of-wayeasements, including 33 procedures for providing information to the public and 34 affected landowners concerning the project and the HB1147 Enrolled -25- LRB9005036JSgc 1 right-of-way easements sought in connection therewith. 2 Such rules may be made applicable to interstate, 3 competitive intrastate and noncompetitive intrastate 4 facilities, without regard to whether such facilities or the 5telephone company ortelecommunications carrier proposing to 6 construct and operate them would otherwise be subject to the 7 Illinois Commerce Commission's jurisdiction under The Public 8 Utilities Act, as now or hereafter amended. However, as to 9 facilities used to provide exclusively interstate services or 10 competitive intrastate services or both, nothing in this 11 Section confers any power upon the Commission (i) to require 12 the disclosure of proprietary, competitively sensitive, or 13 cost information or information not known to thetelephone14company ortelecommunications carrier, (ii) to determine 15 whether, or conduct hearings regarding whether, any proposed 16 fiber optic or other facilities should or should not be 17 constructed and operated, or (iii) to determine or specify, 18 or conduct hearings concerning, the price or other terms or 19 conditions of the purchase of the right-of-way easements 20 sought. With respect to facilities used to provide any 21 intrastate services classified in the condemnor's tariff as 22 noncompetitive under Section 13-502 of The Public Utilities 23 Act, as now or hereafter amended, the rulemaking powers 24 conferred upon the Commission under this Section are in 25 addition to any rulemaking powers arising under The Public 26 Utilities Act, as now or hereafter amended. 27 Notelephone company ortelecommunications carrier shall 28 exercise the power to condemn private property until it has 29 first substantially complied with such rules with respect to 30 the property sought to be condemned. If such rules call for 31 providing notice or information before or during 32 negotiations, a failure to provide such notice or information 33 shall not constitute a waiver of the rights granted in this 34 Section, but thetelephone company ortelecommunications HB1147 Enrolled -26- LRB9005036JSgc 1 carrier shall be liable for all reasonable attorney's fees of 2 that landowner resulting from such failure. 3 (Source: P.A. 86-221.)