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[ Senate Amendment 002 ] |
90_SB0700enr 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. LRB9001002JSgcB SB700 Enrolled LRB9001002JSgcB 1 AN ACT relating to competition in the telecommunications 2 industry amending named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Administrative Procedure Act is 6 amended by changing Section 1-5 as follows: 7 (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5) 8 Sec. 1-5. Applicability. 9 (a) This Act applies to every agency as defined in this 10 Act. Beginning January 1, 1978, in case of conflict between 11 the provisions of this Act and the Act creating or conferring 12 power on an agency, this Act shall control. If, however, an 13 agency has existing procedures on July 1, 1977, specifically 14 for contested cases or licensing, those existing provisions 15 control, except that this exception respecting contested 16 cases and licensing does not apply if the Act creating or 17 conferring power on the agency adopts by express reference 18 the provisions of this Act. Where the Act creating or 19 conferring power on an agency establishes administrative 20 procedures not covered by this Act, those procedures shall 21 remain in effect. 22 (b) The provisions of this Act do not apply to (i) 23 preliminary hearings, investigations, or practices where no 24 final determinations affecting State funding are made by the 25 State Board of Education, (ii) legal opinions issued under 26 Section 2-3.7 of the School Code, (iii) as to State colleges 27 and universities, their disciplinary and grievance 28 proceedings, academic irregularity and capricious grading 29 proceedings, and admission standards and procedures, and (iv) 30 the class specifications for positions and individual 31 position descriptions prepared and maintained under the SB700 Enrolled -2- LRB9001002JSgcB 1 Personnel Code. Those class specifications shall, however, 2 be made reasonably available to the public for inspection and 3 copying. The provisions of this Act do not apply to hearings 4 under Section 20 of the Uniform Disposition of Unclaimed 5 Property Act. 6 (c) Section 5-35 of this Act relating to procedures for 7 rulemaking does not apply to the following: 8 (1) Rules adopted by the Pollution Control Board 9 that, in accordance with Section 7.2 of the Environmental 10 Protection Act, are identical in substance to federal 11 regulations or amendments to those regulations 12 implementing the following: Sections 3001, 3002, 3003, 13 3004, 3005, and 9003 of the Solid Waste Disposal Act; 14 Section 105 of the Comprehensive Environmental Response, 15 Compensation, and Liability Act of 1980; Sections 307(b), 16 307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal 17 Water Pollution Control Act; and Sections 1412(b), 18 1414(c), 1417(a), 1421, and 1445(a) of the Safe Drinking 19 Water Act. 20 (2) Rules adopted by the Pollution Control Board 21 that establish or amend standards for the emission of 22 hydrocarbons and carbon monoxide from gasoline powered 23 motor vehicles subject to inspection under Section 24 13A-105 of the Vehicle Emissions Inspection Law and rules 25 adopted under Section 13B-20 of the Vehicle Emissions 26 Inspection Law of 1995. 27 (3) Procedural rules adopted by the Pollution 28 Control Board governing requests for exceptions under 29 Section 14.2 of the Environmental Protection Act. 30 (4) The Pollution Control Board's grant, pursuant 31 to an adjudicatory determination, of an adjusted standard 32 for persons who can justify an adjustment consistent with 33 subsection (a) of Section 27 of the Environmental 34 Protection Act. SB700 Enrolled -3- LRB9001002JSgcB 1 (5) Rules adopted by the Pollution Control Board 2 that are identical in substance to the regulations 3 adopted by the Office of the State Fire Marshal under 4 clause (ii) of paragraph (b) of subsection (3) of Section 5 2 of the Gasoline Storage Act. 6 (d) Pay rates established under Section 8a of the 7 Personnel Code shall be amended or repealed pursuant to the 8 process set forth in Section 5-50 within 30 days after it 9 becomes necessary to do so due to a conflict between the 10 rates and the terms of a collective bargaining agreement 11 covering the compensation of an employee subject to that 12 Code. 13 (e) Section 10-45 of this Act shall not apply to any 14 hearing, proceeding, or investigation conducted under Section 15 13-515 of the Public Utilities Act. 16 (Source: P.A. 87-823; 88-533.) 17 Section 10. The Public Utilities Act is amended by 18 changing Sections 10-111, 13-102, 13-103, 13-203, 13-405, 19 13-502, 13-504, 13-505, 13-509 and 13-803 and adding 20 Sections 13-505.7, 13-506, 13-512, 13-513, 13-514, 13-515, 21 and 13-516 as follows: 22 (220 ILCS 5/10-111) (from Ch. 111 2/3, par. 10-111) 23 Sec. 10-111. In any hearing, proceeding, investigation or 24 rulemaking conducted by the Commission, the Commission, 25 commissioner or hearing examiner presiding, shall, after the 26 close of evidentiary hearings, prepare a recommended or 27 tentative decision, finding or order including a statement of 28 findings and conclusions and the reasons or basis therefor, 29 on all the material issues of fact, law or discretion 30 presented on the record. Such recommended or tentative 31 decision, finding or order shall be served on all parties who 32 shall be entitled to a reasonable opportunity to respond SB700 Enrolled -4- LRB9001002JSgcB 1 thereto, either in briefs or comments otherwise to be filed 2 or separately. The recommended or tentative decision, finding 3 or order and any responses thereto, shall be included in the 4 record for decision. This Section shall not apply to any 5 hearing, proceeding, or investigation conducted under Section 6 13-515. 7 (Source: P.A. 84-617.) 8 (220 ILCS 5/13-102) (from Ch. 111 2/3, par. 13-102) 9 (This Section is scheduled to be repealed July 1, 1999.) 10 Sec. 13-102. Findings. With respect to 11 telecommunications services, as herein defined, the General 12 Assembly finds that: 13 (a) universally available and widely affordable 14 telecommunications services are essential to the health, 15 welfare and prosperity of all Illinois citizens; 16 (b)recentfederal regulatory and judicial rulings in 17 the 1980shavecaused a restructuring of the 18 telecommunications industry andhaveopened some aspects of 19 the industry to competitive entry, thereby necessitating 20 revision of State telecommunications regulatory policies and 21 practices; 22 (c) revisions in telecommunications regulatory policies 23 and practices in Illinois beginning in the mid-1980s brought 24 the benefits of competition to consumers in many 25 telecommunications markets, but not in local exchange 26 telecommunications service markets; 27 (d) the federal Telecommunications Act of 1996 28 established the goal of opening all telecommunications 29 service markets to competition and accords to the states the 30 responsibility to establish and enforce policies necessary to 31 attain that goal; 32 (e) it is in the immediate interest of the People of the 33 State of Illinois for the State to exercise its rights within SB700 Enrolled -5- LRB9001002JSgcB 1 the new framework of federal telecommunications policy to 2 ensure that the economic benefits of competition in all 3 telecommunications service markets are realized as 4 effectively as possible; 5 (f)(c)the competitive offering of all 6 telecommunications services will increasemay create the7potential for increasedinnovation and efficiency in the 8 provision of telecommunications services and may lead to 9 reduced prices for consumers, increased investment in 10 communications infrastructure, the creation of new jobs, and 11 the attraction of new businesses to Illinois; and 12 (g)(d)protection of the public interest requires 13 changes in thecontinuedregulation of telecommunications 14 carriers and services to ensure, to the maximum feasible 15 extent, the reasonable and timely development of effective 16 competition in all telecommunications service marketsfor the17foreseeable future. 18 (Source: P.A. 84-1063.) 19 (220 ILCS 5/13-103) (from Ch. 111 2/3, par. 13-103) 20 (This Section is scheduled to be repealed July 1, 1999.) 21 Sec. 13-103. Policy. Consistent with its findings, the 22 General Assembly declares that it is the policy of the State 23 of Illinois that: 24 (a) telecommunications services should be available to 25 all Illinois citizens at just, reasonable, and affordable 26 rates and that such services should be provided as widely and 27 economically as possible in sufficient variety, quality, 28 quantity and reliability to satisfy the public interest; 29 (b)whenconsistent with the protection of consumers of 30 telecommunications services and the furtherance of other 31 public interest goals, competition in all telecommunications 32 service markets should be pursuedpermitted to functionas a 33 substitute forcertain aspects ofregulation in determining SB700 Enrolled -6- LRB9001002JSgcB 1 the variety, quality and price of telecommunications services 2 and that the economic burdens of regulation should be reduced 3 to the extent possible consistent with the furtherance of 4 market competition and protection of the public interest; 5 (c) all necessary and appropriate modifications to State 6 regulation of telecommunications carriers and services should 7 be implemented without unnecessary disruption to the 8 telecommunications infrastructure system or to consumers of 9 telecommunications services and that it is necessary and 10 appropriate to establish rules to encourage and ensurea11reasonable period of time to permit preparation fororderly 12 transitions in the developmentprovisionof markets for all 13 telecommunications services; 14 (d) the consumers of telecommunications services and 15 facilities provided by persons or companies subject to 16 regulation pursuant to this Act and Article should be 17 required to pay only reasonable and non-discriminatory rates 18 or charges and that in no case should rates or charges for 19 non-competitive telecommunications services include any 20 portion of the cost of providing competitive 21 telecommunications services, as defined in Section 13-209, or 22 the cost of any nonregulated activities; 23 (e) the regulatory policies and procedures provided in 24 this Article are established in recognition of the changing 25 nature of the telecommunications industry and therefore 26 should be subject to systematic legislative review to ensure 27 that the public benefits intended to result from such 28 policies and procedures are fully realized; and 29 (f) development of and prudent investment in advanced 30 telecommunications services and networks that foster economic 31 development of the State should be encouraged through the 32 implementation and enforcement of policies that promote 33 effective and sustained competition in all telecommunications 34 service markets. SB700 Enrolled -7- LRB9001002JSgcB 1 (Source: P.A. 87-856.) 2 (220 ILCS 5/13-203) (from Ch. 111 2/3, par. 13-203) 3 (This Section is scheduled to be repealed July 1, 1999.) 4 Sec. 13-203. Telecommunications service. 5 "Telecommunications service" means the provision or offering 6 for rent, sale or lease, or in exchange for other value 7 received, of the transmittal of information, by means of 8 electromagnetic, including light, transmission with or 9 without benefit of any closed transmission medium, including 10 all instrumentalities, facilities, apparatus, and services 11 (including the collection, storage, forwarding, switching, 12 and delivery of such information) used to provide such 13 transmission and also includes access and interconnection 14 arrangements and services. 15 "Telecommunications service" does not include, however: 16 (a) the rent, sale, or lease, or exchange for other 17 value received, of customer premises equipment except for 18 customer premises equipment owned or provided by a 19 telecommunications carrier and used for answering 911 20 calls, and except for customer premises equipment 21 provided under Section 13-703; 22 (b) telephone or telecommunications answering 23 services, paging services, and physical pickup and 24 delivery incidental to the provision of information 25 transmitted through electromagnetic, including light, 26 transmission; 27 (c) community antenna television service which is 28 operated to perform for hire the service of receiving and 29 distributing video and audio program signals by wire, 30 cable or other means to members of the public who 31 subscribe to such service, to the extent that such 32 service is utilized solely for the one-way distribution 33 of such entertainment services with no more than SB700 Enrolled -8- LRB9001002JSgcB 1 incidental subscriber interaction required for the 2 selection of such entertainment service. 3 The Commission may, by rulemaking, exclude (1) private 4 line service which is not directly or indirectly used for the 5 origination or termination of switched telecommunications 6 service, (2) cellular radio service, (3) high-speed 7 point-to-point data transmission at or above 9.6 kilobits, or 8 (4) the provision of telecommunications service by a company 9 or person otherwise subject to Section 13-202 (c) to a 10 telecommunications carrier, which is incidental to the 11 provision of service subject to Section 13-202 (c), from 12 active regulatory oversight to the extent it finds, after 13 notice, hearing and comment that such exclusion is consistent 14 with the public interest and the purposes and policies of 15 this Article. To the extent that the Commission has excluded 16 cellular radio service from active regulatory oversight for 17 any provider of cellular radio service in this State pursuant 18 to this Section, the Commission shall exclude all other 19 providers of cellular radio service in the State from active 20 regulatory oversight without an additional rulemaking 21 proceeding where there are 2 or more certified providers of 22 cellular radio service in a geographic area. 23 (Source: P.A. 87-856.) 24 (220 ILCS 5/13-405) (from Ch. 111 2/3, par. 13-405) 25 (This Section is scheduled to be repealed July 1, 1999.) 26 Sec. 13-405. Local exchange service authority; approval. 27 The Commission shall approve an application for a Certificate 28 of Exchange Service Authority only upon a showing by the 29 applicant, and a finding by the Commission, after notice and 30 hearing, that:31(a)the applicant possesses sufficient technical, 32 financial, and managerial resources and abilities to 33 provide local exchange telecommunications service.; andSB700 Enrolled -9- LRB9001002JSgcB 1(b) that the exercise of the Certificate's2authority by the applicant would not adversely affect3prices, network design, or the financial viability of the4principal provider of local exchange telecommunications5service.6The Commission shall not approve or issue a Certificate7of Exchange Service Authority to more than one8telecommunications carrier for any exchange prior to January91, 1989; provided, however, that a Certificate of Exchange10Service Authority may be issued before such time, subject to11appropriate Commission approval, pursuant to this Section, to12any telecommunications carrier providing predominantly direct13nonswitched access service between a customer or user and any14telecommunications carrier providing inter-MSA, inter-LATA or15inter-state telecommunications service, or between such16telecommunications carriers, for the purpose of providing17such direct access service.18 (Source: P.A. 84-1063.) 19 (220 ILCS 5/13-502) (from Ch. 111 2/3, par. 13-502) 20 (This Section is scheduled to be repealed July 1, 1999.) 21 Sec. 13-502. Classification of services. 22 (a) All telecommunications services offered or provided 23 under tariff by telecommunications carriers shall be 24 classified as either competitive or noncompetitive. A 25 telecommunications carrier may offer or provide either 26 competitive or noncompetitive telecommunications services, or 27 both, subject to proper certification and other applicable 28 provisions of this Article. Any tariff filed with the 29 Commission as required by Section 13-501 shall indicate 30 whether the service to be offered or provided is competitive 31 or noncompetitive. 32 (b) A service shall be classified as competitive only 33 if, and only to the extent that, for some identifiable class SB700 Enrolled -10- LRB9001002JSgcB 1 or group of customers in an exchange, group of exchanges, or 2 some other clearly defined geographical area, such service, 3 or its functional equivalent, or a substitute service, is 4 reasonably available from more than one provider, whether or 5 not any such provider is a telecommunications carrier subject 6 to regulation under this Act. All telecommunications services 7 not properly classified as competitive shall be classified as 8 noncompetitive. The Commission shall have the power to 9 investigate the propriety of any classification of a 10 telecommunications service on its own motion and shall 11 investigate upon complaint. In any hearing or investigation, 12 the burden of proof as to the proper classification of any 13 service shall rest upon the telecommunications carrier 14 providing the service. After notice and hearing, the 15 Commission shall order the proper classification of any 16 service in whole or in part. The Commission shall make its 17 determination and issue its final order no later than 180 18 days from the date such hearing or investigation is 19 initiated. If the Commission enters into a hearing upon 20 complaint and if the Commission fails to issue an order 21 within that period, the complaint shall be deemed granted 22 unless the Commission, the complainant, and the 23 telecommunications carrier providing the service agree to 24 extend the time period. 25 (c) No tariff classifying a new telecommunications 26 service as competitive or reclassifying a previously 27 noncompetitive telecommunications service as competitive, 28 which is filed by a telecommunications carrier which also 29 offers or provides noncompetitive telecommunications service, 30 shall be effective unless and until such telecommunications 31 carrier offering or providing, or seeking to offer or 32 provide, such proposed competitive service prepares and files 33 a study of the long-run service incremental cost underlying 34 such service and demonstrates that the tariffed rates and SB700 Enrolled -11- LRB9001002JSgcB 1 charges for the service and any relevant group of services 2 that includes the proposed competitive service and for which 3 resources are used in common solely by that group of services 4 are not less than the long-run service incremental cost of 5 providing the service and each relevant group of services. 6 Such study shall be given proprietary treatment by the 7 Commission at the request of such carrier if any other 8 provider of the competitive service, its functional 9 equivalent, or a substitute service in the geographical area 10 described by the proposed tariff has not filed, or has not 11 been required to file, such a study. 12 (d) In the event any telecommunications service has been 13 classified and filed as competitive by the telecommunications 14 carrier, and has been offered or provided on such basis, and 15 the Commission subsequently determines after investigation 16 that such classification improperly included services which 17 were in fact noncompetitive, the Commission shall have the 18 power to determine and order refunds to customers for any 19 overcharges which may have resulted from the improper 20 classification, or to order such other remedies provided to 21 it under this Act, or to seek an appropriate remedy or relief 22 in a court of competent jurisdiction. 23 (e)Any telecommunications carrier which seeks to file a24tariff classifying a new telecommunications service as25competitive or reclassifying a previously noncompetitive26telecommunications service as competitive may, instead of27filing such new tariff and offering and providing such28service as competitive subject to refund, apply to the29Commission, prior to offering or providing such service as30competitive, for an order finding that the proposed tariff is31proper and consistent with law. Any telecommunications32carrier applying for Commission approval pursuant to this33paragraph (e) shall provide timely and effective notice of34its application and proposed tariff to potentially affectedSB700 Enrolled -12- LRB9001002JSgcB 1providers and customers in a manner to be determined by the2Commission.3Upon such application and notice, the Commission may make4its findings without hearing within 21 days of the filing of5the application and may allow such tariff to take immediate6effect thereafter if there is no request for hearing by7potentially affected providers or customers. The Commission8shall, however, enter into hearings to determine the9propriety and legality of the proposed tariffs upon such10request or if the Commission, in its discretion, believes11such hearings are necessary.12If the Commission enters into hearings upon the13application, it shall issue a final order within 180 days of14such application, and, if the Commission fails to issue an15order within such period, the application shall be deemed16granted, unless, however, the Commission, the applicant and17all parties to the hearing agree to extend such time period.18The Commission shall have the power to issue an interim order19allowing the proposed tariff to take effect during the 18020day period subject to refund and such other conditions as the21Commission may provide.If no hearing or investigation 22 regarding the propriety of a competitive classification of a 23 telecommunications service is initiated within 180 days after 24 a telecommunications carrier files a tariff listing such 25 telecommunications service as competitive, no refunds to 26 customers for any overcharges which may result from an 27 improper classification shall be ordered for the period from 28 the time the telecommunications carrier filed such tariff 29 listing the service as competitive up to the time an 30 investigation of the service classification is initiated by 31 the Commission's own motion or the filing of a complaint. 32 Where a hearing or an investigation regarding the propriety 33 of a telecommunications service classification as competitive 34 is initiated after 180 days from the filing of the tariff, SB700 Enrolled -13- LRB9001002JSgcB 1 the period subject to refund for improper classification 2 shall begin on the date such investigation or hearing is 3 initiated by the filing of a Commission motion or a 4 complaint. 5 (Source: P.A. 87-856.) 6 (220 ILCS 5/13-504) (from Ch. 111 2/3, par. 13-504) 7 (This Section is scheduled to be repealed July 1, 1999.) 8 Sec. 13-504. Application of ratemaking provisions of 9 Article IX. 10 (a) Except where the context clearly renders such 11 provisions inapplicable, the ratemaking provisions of Article 12 IX of this Act relating to public utilities are fully and 13 equally applicable to the rates, charges, tariffs and 14 classifications for the offer or provision of noncompetitive 15 telecommunications services. However, the ratemaking 16 provisions do not apply to any proposed change in rates or 17 charges, any proposed change in any classification or tariff 18 resulting in a change in rates or charges, or the 19 establishment of new services and rates therefor for a 20 noncompetitive local exchange telecommunications service 21 offered or provided by a local exchange telecommunications 22 carrier with no more than 35,000 subscriber access lines. 23 Proposed changes in rates, charges, classifications, or 24 tariffs meeting these criteria shall be permitted upon the 25 filing of the proposed tariff and 30 days notice to the 26 Commission and all potentially affected customers. The 27 proposed changes shall not be subject to suspension. The 28 Commission shall investigate whether any proposed change is 29 just and reasonable only if a telecommunications carrier that 30 is a customer of the local exchange telecommunications 31 carrier or 10% of the potentially affected access line 32 subscribers of the local exchange telecommunications carrier 33 shall file a petition or complaint requesting an SB700 Enrolled -14- LRB9001002JSgcB 1 investigation of the proposed changes. When the 2 telecommunications carrier or 10% of the potentially affected 3 access line subscribers of a local exchange 4 telecommunications carrier file a complaint, the Commission 5 shall, after notice and hearing, have the power and duty to 6 establish the rates, charges, classifications, or tariffs it 7 finds to be just and reasonable. 8 (b) Subsection (c) of Section 13-502 and Sections 9 13-505.1, 13-505.4, 13-505.6, and 13-507 of this Article do 10 not apply to rates or charges or proposed changes in rates or 11 charges for applicable competitive or interexchange services 12 when offered or provided by a local exchange 13 telecommunications carrier with no more than 35,000 14 subscriber access lines. In addition, Sections 13-514, 15 13-515, and 13-516 do not apply to telecommunications 16 carriers with no more than 35,000 subscriber access lines. 17 The Commission may require telecommunications carriers with 18 no more than 35,000 subscriber access lines to furnish 19 information that the Commission deems necessary for a 20 determination that rates and charges for any competitive 21 telecommunications service are just and reasonable. 22 (c) For a local exchange telecommunications carrier with 23 no more than 35,000 access lines, the Commission shall 24 consider and adjust, as appropriate, a local exchange 25 telecommunications carrier's depreciation rates only in 26 ratemaking proceedings. 27 (d) Article VI and Sections 7-101 and 7-102 of Article 28 VII of this Act pertaining to public utilities, public 29 utility rates and services, and the regulation thereof are 30 not applicable to local exchange telecommunication carriers 31 with no more than 35,000 subscriber access lines. 32 (Source: P.A. 89-139, eff. 1-1-96.) 33 (220 ILCS 5/13-505) (from Ch. 111 2/3, par. 13-505) SB700 Enrolled -15- LRB9001002JSgcB 1 (This Section is scheduled to be repealed July 1, 1999.) 2 Sec. 13-505. Rate changes; competitive services. 3Proposed changes in rates or charges, or any classification4or tariff provision affecting rates or charges, for any5competitive telecommunications service, shall be treated6pursuant to this Section as follows:7 (a) Any proposed increase or decrease in rates or 8 charges, or proposed change in any classification or tariff 9 resulting in an increase oradecrease in rates or charges, 10 for a competitive telecommunications service shall be 11 permitted upon the filing of the proposed rate, charge, 12 classification, or tariff.;13(b) any proposed increase in rates or charges, or14proposed change in any classification or tariff resulting in15an increase in rates or charges, for a competitive16telecommunications service shall be permitted by the filing17of the proposed rate, charge, classification, or tariff and18shall become effective 14 days after its filing.Prior 19 notice of an increase shallalsobe given to all potentially 20 affected customers by mail, publication in a newspaper of 21 general circulation, or equivalent means of notice; and. 22 (b)(c)If a hearing is held pursuant to Section 9-250 23 regarding the reasonableness of an increase in the rates or 24 charges of a competitive local exchange service, then the 25 telecommunications carrier providing the service shall have 26 the burden of proof to establish the justness and 27 reasonableness of the proposed rate or charge. 28 (Source: P.A. 87-856.) 29 (220 ILCS 5/13-505.7 new) 30 Sec. 13-505.7. Bundling. Nothing in this Act shall 31 prohibit the bundling of any telecommunications services, 32 provided that for a telecommunications carrier that provides 33 both noncompetitive and competitive services the price for a SB700 Enrolled -16- LRB9001002JSgcB 1 bundle of telecommunications services shall not be less than 2 the aggregate of the unbundled prices of the 3 telecommunications services offered in the bundle. 4 (220 ILCS 5/13-506 new) 5 Sec. 13-506. Tariffs for competitive telecommunications 6 services. (a) Telecommunications carriers may file proposed 7 tariffs for any competitive telecommunications service which 8 includes and specifically describes a range, band, formula, 9 or standard within which or by which a change in rates or 10 charges for such telecommunications service could be made 11 without prior notice or prior Commission approval, provided 12 that any and all rates or charges within the band or range, 13 or determinable by the operation of the formula or standard, 14 are consistent with the public interest and the purpose and 15 policies of this Article and Act, and are likely to remain so 16 for the forseeable future. To the extent any proposed band 17 or range encompasses rates or charges which are not 18 consistent with the public interest and the purposes and 19 policies of this Article and Act or otherwise fully proper, 20 or any proposed formula or standard determines rates or 21 charges which are not consistent with the purposes and 22 policies of this Article and Act or otherwise fully proper, 23 the Commission after notice and hearing shall have the power 24 to modify the level, scope, or limits of such band or range, 25 and to modify or limit the operation of such formula or 26 standard, as necessary, to ensure that rates or charges 27 resulting therefrom are consistent with the purposes and 28 policies of this Article and Act and fully proper, and likely 29 to remain so in the forseeable future. 30 (b) The Commission may require a telecommunications 31 carrier to file a variable tariff as described in paragraph 32 (a) for any or all competitive telecommunications services 33 which are offered or provided by such carrier, if the SB700 Enrolled -17- LRB9001002JSgcB 1 Commission finds, after notice and hearing, that the 2 determination of rates or charges for such service by a 3 tariff would improve the Commission's ability to effectively 4 regulate such rates or charges and that such improvement is 5 required by the public interest. Any such tariff required by 6 the Commission shall be approved only if it is also 7 consistent with the provisions of paragraph (a) of this 8 Section. 9 (c) When the Commission approves a variable tariff, as 10 proposed or modified pursuant to this Section, the 11 telecommunications carrier shall place such tariff in effect 12 thereafter and such tariff shall determine rates or charges 13 according to the provisions thereof. 14 (220 ILCS 5/13-509) (from Ch. 111 2/3, par. 13-509) 15 (This Section is scheduled to be repealed July 1, 1999.) 16 Sec. 13-509. Agreements for provisions of competitive 17 telecommunications services differing from tariffs. A 18 telecommunications carrieroffering or providing competitive19telecommunications servicemay negotiate with customers or 20 prospective customers to provide competitive 21 telecommunications servicefor the provision by it of such22service, and in so doing, may offer or agree to provide such 23 service on such terms and for such rates or charges asit24deemsare reasonable, without regard to any tariffs it may 25 have filed with the Commission with respect to such services. 26 Within 10 business days afterconcludingexecuting any such 27 agreement, the telecommunications carrier shall file any 28 contract or memorandum of understanding for the provision of 29 telecommunications service, which shall include the rates or 30 other charges, practices, rules or regulations applicable to 31 the agreed provision of such service. Cost support for the 32 agreement shall be filed within 30 calendar days after 33 executing any such agreement. Where the agreement contains SB700 Enrolled -18- LRB9001002JSgcB 1 the same rates, charges, practices, rules, and regulations 2 found in a single contract or memorandum already filed by the 3 telecommunications carrier with the Commission, instead of 4 filing the contract or memorandum, the telecommunications 5 carrier may elect to file a letter identifying the new 6 agreement and specifically referencing the contract or 7 memorandum already on file with the Commission which contains 8 the same provisions. A single letter may be used to file 9 more than one new agreement. Upon filing its contract or 10 memorandum, or letter, the telecommunications carrier shall 11 thereafter provide service according to the terms thereof, 12 unless the Commission finds, after notice and hearing, that 13 the continued provision of service pursuant to such contract 14 or memorandum would substantially and adversely affect the 15 financial integrity of the telecommunications carrier or 16 wouldcause the cross-subsidization of any competitive17service by any noncompetitive serviceviolate any other 18 provision of this Act. 19 Any contract or memorandum entered into and filed 20 pursuant to the provisions of this Section may, in the 21 Commission's discretion, be accorded proprietary treatment. 22 (Source: P.A. 84-1063.) 23 (220 ILCS 5/13-512 new) 24 (This Section is scheduled to be repealed July 1, 1999.) 25 Sec. 13-512. Rules; review. The Commission shall have 26 general rulemaking authority to make rules necessary to 27 enforce this Article. However, not later than 270 days after 28 the effective date of this amendatory Act of 1997, and every 29 2 years thereafter, the Commission shall review all rules 30 issued under this Article that apply to the operations or 31 activities of any telecommunications carrier. The Commission 32 shall, after notice and hearing, repeal or modify any rule it 33 determines to be no longer in the public interest as the SB700 Enrolled -19- LRB9001002JSgcB 1 result of the reasonable availability of competitive 2 telecommunications services. 3 (220 ILCS 5/13-513 new) 4 (This Section is scheduled to be repealed July 1, 1999.) 5 Sec. 13-513. Waiver of rules. A telecommunications 6 carrier may petition for waiver of the application of a rule 7 issued pursuant to this Act. The burden of proof in 8 establishing the right to a waiver shall be upon the 9 petitioner. The petition shall include a demonstration that 10 the waiver would not harm consumers and would not impede the 11 development or operation of a competitive market. Upon such 12 demonstration, the Commission may waive the application of a 13 rule, but not the application of a provision of this Act. 14 The Commission may conduct an investigation of the petition 15 on its own motion or at the request of a potentially affected 16 person. If no investigation is conducted, the waiver shall 17 be deemed granted 30 days after the petition is filed. 18 (220 ILCS 5/13-514 new) 19 (This Section is scheduled to be repealed July 1, 1999.) 20 Sec. 13-514. Prohibited Actions of Telecommunications 21 Carriers. A telecommunications carrier shall not knowingly 22 impede the development of competition in any 23 telecommunications service market. The following prohibited 24 actions are considered per se impediments to the development 25 of competition; however, the Commission is not limited in any 26 manner to these enumerated impediments and may consider other 27 actions which impede competition to be prohibited: 28 (1) unreasonably refusing or delaying interconnections 29 or providing inferior connections to another 30 telecommunications carrier; 31 (2) unreasonably impairing the speed, quality, or 32 efficiency of services used by another telecommunications SB700 Enrolled -20- LRB9001002JSgcB 1 carrier; 2 (3) unreasonably denying a request of another provider 3 for information regarding the technical design and features, 4 geographic coverage, information necessary for the design of 5 equipment, and traffic capabilities of the local exchange 6 network except for proprietary information unless such 7 information is subject to a proprietary agreement or 8 protective order; 9 (4) unreasonably delaying access in connecting another 10 telecommunications carrier to the local exchange network 11 whose product or service requires novel or specialized access 12 requirements; 13 (5) unreasonably refusing or delaying access by any 14 person to another telecommunications carrier; 15 (6) unreasonably acting or failing to act in a manner 16 that has a substantial adverse effect on the ability of 17 another telecommunications carrier to provide service to its 18 customers; 19 (7) unreasonably failing to offer services to customers 20 in a local exchange, where a telecommunications carrier is 21 certificated to provide service and has entered into an 22 interconnection agreement for the provision of local exchange 23 telecommunications services, with the intent to delay or 24 impede the ability of the incumbent local exchange 25 telecommunications carrier to provide inter-LATA 26 telecommunications services; and 27 (8) violating the terms of or unreasonably delaying 28 implementation of an interconnection agreement entered into 29 pursuant to Section 252 of the federal Telecommunications Act 30 of 1996 in a manner that unreasonably delays or impedes the 31 availability of telecommunications services to consumers. 32 (220 ILCS 5/13-515 new) 33 (This Section is scheduled to be repealed July 1, 1999.) SB700 Enrolled -21- LRB9001002JSgcB 1 Sec. 13-515. Enforcement. 2 (a) The Commission shall enforce the provisions of 3 Section 13-514 of this Act. Unless the Commission and the 4 parties otherwise mutually agree, the Commission shall use 5 the procedures set forth in this Section for the review of 6 complaints relating to violations of Section 13-514. 7 (b) This Section shall not apply to interconnection 8 agreements with a Bell operating company as defined in 9 Section 3 of the federal Telecommunications Act of 1996 10 unless and until the date such company or its affiliate is 11 authorized to provide inter-LATA services under Section 12 271(d) of that Act. 13 (c) No complaint may be filed under this Section until 14 the complainant has first notified the respondent of the 15 alleged violation and offered the respondent 48 hours to 16 correct the situation. Provision of notice and the 17 opportunity to correct the situation creates a rebuttable 18 presumption of knowledge under Section 13-514. 19 (d) A telecommunications carrier may file a complaint 20 with the Commission alleging a violation of Section 13-514 in 21 accordance with this subsection: 22 (1) The complaint shall be filed with the Chief 23 Clerk of the Commission and shall be served in hand upon 24 the respondent, the executive director, and the general 25 counsel of the Commission at the time of the filing. 26 (2) A complaint filed under this subsection shall 27 include a statement that the requirements of subsection 28 (c) have been fulfilled and that the respondent did not 29 correct the situation as requested. 30 (3) Reasonable discovery specific to the issue of 31 the complaint may commence upon filing of the complaint. 32 Requests for discovery must be served in hand and 33 responses to discovery must be provided in hand to the 34 requester within 14 days after a request for discovery is SB700 Enrolled -22- LRB9001002JSgcB 1 made. 2 (4) An answer and any other responsive pleading to 3 the complaint shall be filed with the Commission and 4 served in hand at the same time upon the complainant, the 5 executive director, and the general counsel of the 6 Commission within 7 days after the date on which the 7 complaint is filed. 8 (5) A determination as to reasonable grounds for 9 the complaint and, if appropriate, a directive for legal 10 notice of a hearing shall be made within 3 days after the 11 date on which the answer is filed. 12 (6) A pre-hearing conference shall be held within 13 14 days after the date on which the complaint is filed. 14 (7) The hearing shall commence within 30 days of 15 the date on which the complaint is filed. The hearing 16 may be conducted by a hearing examiner or by an 17 arbitrator. Parties and the Commission staff shall be 18 entitled to present evidence and legal argument in oral 19 or written form as deemed appropriate by the hearing 20 examiner or arbitrator. The hearing examiner or 21 arbitrator shall issue a written decision within 60 days 22 after the date on which the complaint is filed. The 23 decision shall include reasons for the disposition of the 24 complaint and, if a violation of Section 13-514 is found, 25 directions and a deadline for correction of the 26 violation. The decision of the hearing examiner or 27 arbitrator shall be considered a final order of the 28 Commission after 10 days unless the Commission enters its 29 own final order within 10 days of the decision of the 30 hearing examiner or arbitrator. 31 (e) If the alleged violation has a substantial adverse 32 effect on the ability of the complainant to provide service 33 to customers, the complainant may include in its complaint a 34 request for an order for emergency relief. The Commission, SB700 Enrolled -23- LRB9001002JSgcB 1 acting through its designated hearing examiner or arbitrator, 2 shall act upon such a request within 2 business days of the 3 filing of the complaint. An order for emergency relief may 4 be granted, without an evidentiary hearing, upon a verified 5 factual showing that the party seeking relief will likely 6 succeed on the merits, that the party will suffer irreparable 7 harm in its ability to serve customers if emergency relief is 8 not granted, and that the order is in the public interest. 9 An order for emergency relief shall include a finding that 10 the requirements of this subsection have been fulfilled and 11 shall specify the directives that must be fulfilled by the 12 respondent and deadlines for meeting those directives. The 13 decision of the hearing examiner or arbitrator to grant or 14 deny emergency relief shall be considered an order of the 15 Commission unless the Commission enters its own order within 16 2 calendar days of the decision of the hearing examiner or 17 arbitrator. The order for emergency relief may require the 18 responding party to act or refrain from acting so as to 19 protect the provision of competitive service offerings to 20 customers. Any action required by an emergency relief order 21 must be technically feasible and economically reasonable and 22 the respondent must be given a reasonable period of time to 23 comply with the order. 24 (f) The Commission is authorized to obtain outside 25 resources including, but not limited to, arbitrators and 26 consultants for the purposes of the hearings authorized by 27 this Section. Any arbitrator or consultant obtained by the 28 Commission shall be approved by both parties to the hearing. 29 (g) The Commission shall assess the parties for the 30 Commission's costs of investigation and conduct of the 31 proceedings, dividing the costs according to the resolution 32 of the complaint brought under this Section. All assessments 33 shall be paid into the Public Utility Fund within 60 days 34 after receiving notice of the assessments from the SB700 Enrolled -24- LRB9001002JSgcB 1 Commission. Interest at the statutory rate shall accrue 2 after the expiration of the 60 day period. The Commission is 3 authorized to apply to a court of competent jurisdiction for 4 an order requiring payment. 5 (h) If the Commission determines that there is an 6 imminent threat to competition or to the public interest, the 7 Commission may, notwithstanding any other provision of this 8 Act, seek temporary, preliminary, or permanent injunctive 9 relief from a court of competent jurisdiction either prior to 10 or after the hearing. 11 (i) A party shall not bring or defend a proceeding 12 brought under this Section or assert or controvert an issue 13 in a proceeding brought under this Section, unless there is a 14 non-frivolous basis for doing so. By presenting a pleading, 15 written motion, or other paper in complaint or defense of the 16 actions or inaction of a party under this Section, a party is 17 certifying to the Commission that to the best of that party's 18 knowledge, information, and belief, formed after a reasonable 19 inquiry of the subject matter of the complaint or defense, 20 that the complaint or defense is well grounded in law and 21 fact, and under the circumstances: 22 (1) it is not being presented to harass the other 23 party, cause unnecessary delay in the provision of 24 competitive telecommunications services to consumers, or 25 create needless increases in the cost of litigation; and 26 (2) the allegations and other factual contentions 27 have evidentiary support or, if specifically so 28 identified, are likely to have evidentiary support after 29 reasonable opportunity for further investigation or 30 discovery as defined herein. 31 (j) If, after notice and a reasonable opportunity to 32 respond, the Commission determines that subsection (i) has 33 been violated, the Commission shall impose appropriate 34 sanctions upon the party or parties that have violated SB700 Enrolled -25- LRB9001002JSgcB 1 subsection (i) or are responsible for the violation. The 2 sanctions shall be not more than $7,500, plus the amount of 3 expenses accrued by the Commission for conducting the 4 hearing. Payment of sanctions imposed under this subsection 5 shall be made to the Common School Fund within 30 days of 6 imposition of such sanctions. 7 (k) An appeal of a Commission Order made pursuant to 8 this Section shall not effectuate a stay of the Order unless 9 a court of competent jurisdiction specifically finds that the 10 party seeking the stay will likely succeed on the merits, 11 that the party will suffer irreparable harm without the stay, 12 and that the stay is in the public interest. 13 (220 ILCS 5/13-516 new) 14 (This Section is scheduled to be repealed July 1, 1999.) 15 Sec. 13-516. Penalties for violation of a Commission 16 order relating to prohibited actions of telecommunications 17 carriers. 18 (a) Notwithstanding any other provision of this Act, the 19 Commission may impose penalties of up to $30,000 per 20 violation of a final order or emergency relief order issued 21 pursuant to Section 13-515 of this Act. Each day of a 22 continuing offense shall be treated as a separate violation 23 for purposes of levying any penalty under this Section. The 24 period for which the fine shall be levied shall commence on 25 the day the Commission order requires compliance with the 26 order and shall continue until the party is in compliance 27 with the Commission order. 28 (b) The Commission may waive penalties imposed under 29 subsection (a) if it makes a written finding as to its 30 reasons for waiving the fine. Reasons for waiving a fine 31 shall include, but not be limited to, technological 32 infeasibility and acts of God. 33 (c) The Commission shall establish by rule procedures SB700 Enrolled -26- LRB9001002JSgcB 1 for the imposition of penalties under subsection (a) that, at 2 a minimum, provide for notice, hearing and a written order 3 relating to the imposition of penalties. 4 (d) The Commission is authorized to apply to a court of 5 competent jurisdiction for an order requiring payment of 6 penalties imposed under subsection (a). 7 (e) Payment of penalties imposed under subsection (a) 8 shall be made to the Common School Fund within 30 days of 9 issuance of the Commission order imposing the penalties. 10 (220 ILCS 5/13-803) (from Ch. 111 2/3, par. 13-803) 11 (This Section is scheduled to be repealed July 1, 1999.) 12 Sec. 13-803. Repealer. The provisions of this Article 13 XIII are repealed effective July 1, 20011999. 14 (Source: P.A. 86-1475; 87-821; 87-856.) 15 Section 15. The Illinois Antitrust Act is amended by 16 changing Section 5 as follows: 17 (740 ILCS 10/5) (from Ch. 38, par. 60-5) 18 Sec. 5. No provisions of this Act shall be construed to 19 make illegal: 20 (1) the activities of any labor organization or of 21 individual members thereof which are directed solely to labor 22 objectives which are legitimate under the laws of either the 23 State of Illinois or the United States; 24 (2) the activities of any agricultural or horticultural 25 cooperative organization, whether incorporated or 26 unincorporated, or of individual members thereof, which are 27 directed solely to objectives of such cooperative 28 organizations which are legitimate under the laws of either 29 the State of Illinois or the United States; 30 (3) the activities of any public utilityor31telecommunications carrier, as defined in SectionSectionsSB700 Enrolled -27- LRB9001002JSgcB 1 3-105and 13-202of the Public Utilities Act to the extent 2 that such activities are subject to the jurisdiction of the 3 Illinois Commerce Commission, or to the activities of4telephone mutual concerns referred to in Section 13-202 of5the Public Utilities Act to the extent such activities relate6to the providing and maintenance of telephone service to7owners and customers; 8 (4) The activities of a telecommunications carrier, as 9 defined in Section 13-202 of the Public Utilities Act, to the 10 extent those activities relate to the provision of 11 noncompetitive telecommunications services under the Public 12 Utilities Act and are subject to the jurisdiction of the 13 Illinois Commerce Commission or to the activities of 14 telephone mutual concerns referred to in Section 13-202 of 15 the Public Utilities Act to the extent those activities 16 relate to the provision and maintenance of telephone service 17 to owners and customers; 18 (5)(4)the activities (including, but not limited to, 19 the making of or participating in joint underwriting or joint 20 reinsurance arrangement) of any insurer, insurance agent, 21 insurance broker, independent insurance adjuster or rating 22 organization to the extent that such activities are subject 23 to regulation by the Director of Insurance of this State 24 under, or are permitted or are authorized by, the Insurance 25 Code or any other law of this State; 26 (6)(5)the religious and charitable activities of any 27 not-for-profit corporation, trust or organization established 28 exclusively for religious or charitable purposes, or for both 29 purposes; 30 (7)(6)the activities of any not-for-profit corporation 31 organized to provide telephone service on a mutual or 32 co-operative basis or electrification on a co-operative 33 basis, to the extent such activities relate to the marketing 34 and distribution of telephone or electrical service to owners SB700 Enrolled -28- LRB9001002JSgcB 1 and customers; 2 (8)(7)the activities engaged in by securities dealers 3 who are (i) licensed by the State of Illinois or (ii) members 4 of the National Association of Securities Dealers or (iii) 5 members of any National Securities Exchange registered with 6 the Securities and Exchange Commission under the Securities 7 Exchange Act of 1934, as amended, in the course of their 8 business of offering, selling, buying and selling, or 9 otherwise trading in or underwriting securities, as agent, 10 broker, or principal, and activities of any National 11 Securities Exchange so registered, including the 12 establishment of commission rates and schedules of charges; 13 (9)(8)the activities of any board of trade designated 14 as a "contract market" by the Secretary of Agriculture of the 15 United States pursuant to Section 5 of the Commodity Exchange 16 Act, as amended; 17 (10)(9)the activities of any motor carrier, rail 18 carrier, or common carrier by pipeline, as defined in the 19 Common Carrier by PipelineThe Illinois Commercial20TransportationLaw of the Public Utilities ActThe Illinois21Vehicle Code, as amended, to the extent that such activities 22 are permitted or authorized by the Act or are subject to 23 regulation by the Illinois Commerce Commission; 24 (11)(10)the activities of any state or national bank 25 to the extent that such activities are regulated or 26 supervised by officers of the state or federal government 27 under the banking laws of this State or the United States; 28 (12)(11)the activities of any state or federal savings 29 and loan association to the extent that such activities are 30 regulated or supervised by officers of the state or federal 31 government under the savings and loan laws of this State or 32 the United States; 33 (13)(12)the activities of any bona fide not-for-profit 34 association, society or board, of attorneys, practitioners of SB700 Enrolled -29- LRB9001002JSgcB 1 medicine, architects, engineers, land surveyors or real 2 estate brokers licensed and regulated by an agency of the 3 State of Illinois, in recommending schedules of suggested 4 fees, rates or commissions for use solely as guidelines in 5 determining charges for professional and technical services; 6 (14)(13)Conduct involving trade or commerce (other 7 than import trade or import commerce) with foreign nations 8 unless: 9 (a) such conduct has a direct, substantial, and 10 reasonably foreseeable effect: 11 (i) on trade or commerce which is not trade or commerce 12 with foreign nations, or on import trade or import commerce 13 with foreign nations; or 14 (ii) on export trade or export commerce with foreign 15 nations of a person engaged in such trade or commerce in the 16 United States; and 17 (b) such effect gives rise to a claim under the 18 provisions of this Act, other than this subsection (14)(13). 19 (c) If this Act applies to conduct referred to in this 20 subsection (14)(13)only because of the provisions of 21 paragraph (a)(ii), then this Act shall apply to such conduct 22 only for injury to export business in the United States which 23 affects this State; or 24 (15)(14)the activities of a unit of local government 25 or school district and the activities of the employees, 26 agents and officers of a unit of local government or school 27 district. 28 (Source: P.A. 85-553.) 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.