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92_HB3121 LRB9206184JSpc 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 5. The Public Utilities Act is amended by 5 changing Sections 13-100, 13-101, 13-501, 13-502, 13-506.1, 6 13-508, 13-514, 13-515, 13-516, 13-801, and 13-902 and adding 7 Sections 13-202.5, 13-216, 13-217, 13-517, 13-1001, and 8 13-1002 as follows: 9 (220 ILCS 5/13-100) (from Ch. 111 2/3, par. 13-100) 10 (Section scheduled to be repealed on July 1, 2001) 11 Sec. 13-100. Short title. This Articleshall be known12andmay be cited as the Telecommunications Consumer Choice 13Universal Telephone Service ProtectionLaw of 20011985. 14 (Source: P.A. 84-1063.) 15 (220 ILCS 5/13-101) (from Ch. 111 2/3, par. 13-101) 16 (Section scheduled to be repealed on July 1, 2001) 17 Sec. 13-101. Application of Act to telecommunications 18 rates and services. Except to the extent modified or 19 supplemented by the specific provisions of this Article, the 20 Sections of this Act pertaining to public utilities, public 21 utility rates and services, and the regulation thereof, are 22 fully and equally applicable to noncompetitive 23 telecommunications rates and services, and the regulation 24 thereof, except where the context clearly renders such 25 provisions inapplicable. Except to the extent modified or 26 supplemented by the specific provisions of this Article, 27 Articles I through V, Sections8-301,8-505, 9-221, 9-222, 28 9-222.1, 9-222.2, 9-250, and 9-252.1, and Articles X and XI 29 of this Act are fully and equally applicable to competitive 30 telecommunications rates and services, and the regulation -2- LRB9206184JSpc 1 thereof. 2 (Source: P.A. 90-38, eff. 6-27-97.) 3 (220 ILCS 5/13-202.5 new) 4 Sec. 13-202.5. Incumbent local exchange carrier. 5 "Incumbent local exchange carrier" means, with respect to an 6 area, the telecommunications carrier that provided 7 noncompetitive local exchange telecommunications service in 8 that area on February 8, 1996, and on that date was deemed a 9 member of the exchange carrier association pursuant to 47 10 C.F.R. 69.601(b), and includes its successors, assigns, and 11 affiliates. 12 (220 ILCS 5/13-216 new) 13 Sec. 13-216. Network element. "Network element" means a 14 functionality, facility, or equipment used in the provision 15 of a telecommunications service or, if unused, intended for 16 use in the provision of a telecommunications service. The 17 term also includes features and capabilities that are 18 provided by means of the functionality, facility, or 19 equipment, including, but not limited to, subscriber numbers, 20 databases, signaling systems, and information sufficient for 21 billing and collection or used in the transmission, routing, 22 or other provision of a telecommunications service. 23 (220 ILCS 5/13-217 new) 24 Sec. 13-217. Cost-based rate. "Cost-based rate" means a 25 rate for a service or a network element composed of: 26 (1) the forward-looking total long-run incremental 27 direct cost of the service or network element; plus 28 (2) a proportional allocation of any 29 forward-looking long-run incremental joint cost of 2 or 30 more services or network elements of which the service or 31 network element is a part; plus -3- LRB9206184JSpc 1 (3) a proportional allocation of the 2 telecommunications carrier's forward-looking long-run 3 common costs. 4 A proportional allocation of joint costs shall occur in 5 the proportion of the percentage that that service's or 6 network element's long-run incremental direct cost is to the 7 aggregate long-run incremental direct costs of the joint 8 services or network elements. A proportional allocation of 9 common costs shall occur in the proportion of the percentage 10 that that service's or network element's long-run incremental 11 direct cost is to the aggregate long-run incremental direct 12 costs of the telecommunications carrier as a whole. 13 The long-run incremental direct cost of a service or of a 14 network element is the forward-looking additional costs 15 incurred by the telecommunications carrier to provide the 16 entire output of a service, or to provide a network element, 17 including additional resources such as labor, plant, and 18 equipment. Long-run incremental direct cost excludes any 19 costs, including common costs, that would be incurred if the 20 service is not produced or if the network element is not 21 provided. Long-run costs are the economic costs over a 22 planning horizon long enough so that there are no sunk inputs 23 or costs. Forward-looking costs are the costs to be incurred 24 by a telecommunications carrier in the provision of a service 25 or of a network element. 26 These costs shall be calculated as if the service or 27 network element was being provided for the first time and 28 shall reflect planned adjustments in the firm's plant and 29 equipment. Forward-looking costs ignore embedded or 30 historical costs; rather, they are based on the least cost 31 technology currently available which cost can be reasonably 32 estimated based on available data. Common costs are those 33 costs that a telecommunications carrier must incur to operate 34 that are not directly attributable to any particular service -4- LRB9206184JSpc 1 or to any group of services smaller than the group of 2 services consisting of all the services of the 3 telecommunications carrier. Cost-based rates for network 4 elements shall not include any cost that arises due to a 5 telecommunications carrier's provision of retail services. 6 (220 ILCS 5/13-501) (from Ch. 111 2/3, par. 13-501) 7 (Section scheduled to be repealed on July 1, 2001) 8 Sec. 13-501. Tariff; filing; form. 9 (a) No telecommunications carrier shall offer or provide 10 telecommunications service unless and until a tariff is filed 11 with the Commission which describes the nature of the 12 service, applicable rates and other charges, terms and 13 conditions of service, and the exchange, exchanges or other 14 geographical area or areas in which the service shall be 15 offered or provided. The Commission may prescribe the form 16 of such tariff and any additional data or information which 17 shall be included therein. 18 (b) An interconnection agreement between an incumbent 19 local exchange carrier and another telecommunications carrier 20 must be filed with the Commission as a tariff. A 21 telecommunications carrier may order any offering from any 22 interconnection agreement or from any other tariff regardless 23 of whether or not the telecommunications carrier has its own 24 interconnection agreement. 25 (c) After a hearing, the Commission has the discretion 26 to impose an interim or permanent tariff on a 27 telecommunications carrier as part of the order in the case. 28 When a tariff is imposed as part of the order in a case, the 29 tariff shall remain in full force and effect until a 30 compliance tariff, or superseding tariff, is filed by the 31 telecommunications carrier and, after notice to the parties 32 in the case and after a compliance hearing is held, is found 33 by the Commission to be in compliance. -5- LRB9206184JSpc 1 (Source: P.A. 84-1063.) 2 (220 ILCS 5/13-502) (from Ch. 111 2/3, par. 13-502) 3 (Section scheduled to be repealed on July 1, 2001) 4 Sec. 13-502. Classification of services. 5 (a) All telecommunications services offered or provided 6 under tariff by telecommunications carriers shall be 7 classified as either competitive or noncompetitive. A 8 telecommunications carrier may offer or provide either 9 competitive or noncompetitive telecommunications services, or 10 both, subject to proper certification and other applicable 11 provisions of this Article. Any tariff filed with the 12 Commission as required by Section 13-501 shall indicate 13 whether the service to be offered or provided is competitive 14 or noncompetitive. 15 (b) A service shall be classified as competitive only 16 if, and only to the extent that, for some identifiable class 17 or group of customers in an exchange, group of exchanges, or 18 some other clearly defined geographical area, such service, 19 or its functional equivalent, or a substitute service, is 20 reasonably available from more than one provider, whether or 21 not any such provider is a telecommunications carrier subject 22 to regulation under this Act. The determination of whether a 23 service is reasonably available shall include, but not be 24 limited to, a consideration of the following factors: 25 (1) the availability of other telecommunications 26 carriers or other persons to provide the same, 27 equivalent, or substitutable service in the relevant 28 market; 29 (2) the extent to which the same, equivalent, or 30 substitutable service is available in the relevant 31 market; 32 (3) the ability of customers in the relevant market 33 to obtain the same, equivalent, or substitutable service -6- LRB9206184JSpc 1 at comparable rates, terms, and conditions; 2 (4) the ability of telecommunications carriers or 3 other persons to make the same, equivalent, or 4 substitutable service readily available in the relevant 5 market at comparable rates, terms, and conditions; 6 (5) the relevant market power of each 7 telecommunications carrier or other person providing the 8 same, equivalent, or substitutable service in the 9 relevant market; 10 (6) any affiliation of any telecommunications 11 carrier providing the service in the relevant market 12 which may affect competition; and 13 (7) the existence of any significant barrier to 14 entry or exit of a provider of the service in the 15 relevant market. 16 All telecommunications services not properly classified 17 as competitive shall be classified as noncompetitive. The 18 Commission shall have the power to investigate the propriety 19 of any classification of a telecommunications service on its 20 own motion and shall investigate upon complaint. In any 21 hearing or investigation, the burden of proof as to the 22 proper classification of any service shall rest upon the 23 telecommunications carrier providing the service. After 24 notice and hearing, the Commission shall order the proper 25 classification of any service in whole or in part. The 26 Commission shall make its determination and issue its final 27 order no later than 180 days from the date such hearing or 28 investigation is initiated. If the Commission enters into a 29 hearing upon complaint and if the Commission fails to issue 30 an order within that period, the complaint shall be deemed 31 granted unless the Commission, the complainant, and the 32 telecommunications carrier providing the service agree to 33 extend the time period. 34 (c) No tariff classifying a new telecommunications -7- LRB9206184JSpc 1 service as competitive or reclassifying a previously 2 noncompetitive telecommunications service as competitive, 3 which is filed by a telecommunications carrier which also 4 offers or provides noncompetitive telecommunications service, 5 shall be effective unless and until such telecommunications 6 carrier offering or providing, or seeking to offer or 7 provide, such proposed competitive service prepares and files 8 a study of the long-run service incremental cost underlying 9 such service and demonstrates that the tariffed rates and 10 charges for the service and any relevant group of services 11 that includes the proposed competitive service and for which 12 resources are used in common solely by that group of services 13 are not less than the long-run service incremental cost of 14 providing the service and each relevant group of services. 15 Such study shall be given proprietary treatment by the 16 Commission at the request of such carrier if any other 17 provider of the competitive service, its functional 18 equivalent, or a substitute service in the geographical area 19 described by the proposed tariff has not filed, or has not 20 been required to file, such a study. 21 (d) In the event any telecommunications service has been 22 classified and filed as competitive by the telecommunications 23 carrier, and has been offered or provided on such basis, and 24 the Commission subsequently determines after investigation 25 that such classification improperly included services which 26 were in fact noncompetitive, the Commission shall have the 27 power to determine and order refunds to customers for any 28 overcharges which may have resulted from the improper 29 classification, or to order such other remedies provided to 30 it under this Act, or to seek an appropriate remedy or relief 31 in a court of competent jurisdiction. 32 (e) If no hearing or investigation regarding the 33 propriety of a competitive classification of a 34 telecommunications service is initiated within 180 days after -8- LRB9206184JSpc 1 a telecommunications carrier files a tariff listing such 2 telecommunications service as competitive, no refunds to 3 customers for any overcharges which may result from an 4 improper classification shall be ordered for the period from 5 the time the telecommunications carrier filed such tariff 6 listing the service as competitive up to the time an 7 investigation of the service classification is initiated by 8 the Commission's own motion or the filing of a complaint. 9 Where a hearing or an investigation regarding the propriety 10 of a telecommunications service classification as competitive 11 is initiated after 180 days from the filing of the tariff, 12 the period subject to refund for improper classification 13 shall begin on the date such investigation or hearing is 14 initiated by the filing of a Commission motion or a 15 complaint. 16 (Source: P.A. 90-185, eff. 7-23-97.) 17 (220 ILCS 5/13-506.1) (from Ch. 111 2/3, par. 13-506.1) 18 (Section scheduled to be repealed on July 1, 2001) 19 Sec. 13-506.1. Alternative forms of regulation for 20 noncompetitive services. 21 (a) Notwithstanding any of the ratemaking provisions of 22 this Article or Article IX that are deemed to require rate of 23 return regulation, the Commission may implement alternative 24 forms of regulation in order to establish just and reasonable 25 rates for noncompetitive telecommunications services 26 including, but not limited to, price regulation, earnings 27 sharing, rate moratoria, or a network modernization plan. 28 The Commission is authorized to adopt different forms of 29 regulation to fit the particular characteristics of different 30 telecommunications carriers and their service areas. However, 31 no incumbent local exchange carrier may be subject to, or 32 continue under, an alternative form of regulation under this 33 Section after December 31, 2001, unless the Commission finds -9- LRB9206184JSpc 1 that the incumbent local exchange carrier is in full 2 compliance with its obligations under Section 13-801. 3 In addition to the public policy goals declared in 4 Section 13-103, the Commission shall consider, in determining 5 the appropriateness of any alternative form of regulation, 6 whether it will: 7 (1) reduce regulatory delay and costs over time; 8 (2) encourage innovation in services; 9 (3) promote efficiency; 10 (4) facilitate the broad dissemination of technical 11 improvements to all classes of ratepayers; 12 (5) enhance economic development of the State; and 13 (6) provide for fair, just, and reasonable rates. 14 (b) A telecommunications carrier providing 15 noncompetitive telecommunications services may petition the 16 Commission to regulate the rates or charges of its 17 noncompetitive services under an alternative form of 18 regulation. The telecommunications carrier shall submit with 19 its petition its plan for an alternative form of regulation. 20 The Commission shall review and may modify or reject the 21 carrier's proposed plan. The Commission also may initiate 22 consideration of alternative forms of regulation for a 23 telecommunications carrier on its own motion. The Commission 24 may approve the plan or modified plan and authorize its 25 implementation only if it finds, after notice and hearing, 26 that the plan or modified plan at a minimum: 27 (1) is in the public interest; 28 (2) will produce fair, just, and reasonable rates 29 for telecommunications services; 30 (3) responds to changes in technology and the 31 structure of the telecommunications industry that are, in 32 fact, occurring; 33 (4) constitutes a more appropriate form of 34 regulation based on the Commission's overall -10- LRB9206184JSpc 1 consideration of the policy goals set forth in Section 2 13-103 and this Section; 3 (5) specifically identifies how ratepayers will 4 benefit from any efficiency gains, cost savings arising 5 out of the regulatory change, and improvements in 6 productivity due to technological change; 7 (6) will maintain the quality and availability of 8 telecommunications services;and9 (7) will not unduly or unreasonably prejudice or 10 disadvantage any particular customer class, including 11 telecommunications carriers; and.12 (8) will promote the widespread development of 13 competitive local exchange services. 14 (c) An alternative regulation plan approved under this 15 Section shall provide, as a condition for Commission approval 16 of the plan, that for the first 3 years the plan is in 17 effect, basic residence service rates shall be no higher than 18 those rates in effect 180 days before the filing of the plan. 19 This provision shall not be used as a justification or 20 rationale for an increase in basic service rates for any 21 other customer class. For purposes of this Section, "basic 22 residence service rates" shall mean monthly recurring charges 23 for the telecommunications carrier's lowest priced primary 24 residence network access lines, along with any associated 25 untimed or flat rate local usage charges. Nothing in this 26 subsection (c) shall preclude the Commission from approving 27 an alternative regulation plan that results in rate 28 reductions provided all the requirements of subsection (b) 29 are satisfied by the plan. 30 (d) Any alternative form of regulation granted for a 31 multi-year period under this Section shall provide for annual 32 or more frequent reporting to the Commission to document that 33 the requirements of the plan are being properly implemented. 34 (e) Upon petition by the telecommunications carrier or -11- LRB9206184JSpc 1 any other person or upon its own motion, the Commission may 2 rescind its approval of an alternative form of regulation if, 3 after notice and hearing, it finds that the conditions set 4 forth in subsection (b) of this Section can no longer be 5 satisfied. Any person may file a complaint alleging that the 6 rates charged by a telecommunications carrier under an 7 alternative form of regulation are unfair, unjust, 8 unreasonable, unduly discriminatory, or are otherwise not 9 consistent with the requirements of this Article; provided, 10 that the complainant shall bear the burden of proving the 11 allegations in the complaint. 12 (f) Under an alternative form of regulation, the 13 Commission shall require that any penalties or fines imposed 14 on the telecommunications carrier providing noncompetitive 15 services not be reflected in the rates charged to ratepayers, 16 directly or indirectly, through exogenous treatment or 17 otherwise. 18 (g)(f)Nothing in this Section shall be construed to 19 authorize the Commission to render Sections 9-241, 9-250, and 20 13-505.2 inapplicable to noncompetitive services. 21 (Source: P.A. 87-856.) 22 (220 ILCS 5/13-508) (from Ch. 111 2/3, par. 13-508) 23 (Section scheduled to be repealed on July 1, 2001) 24 Sec. 13-508. Separate subsidiary for competitive 25 services. The Commission shall, after notice and hearing, 26 order structural separation of an incumbent local exchange 27 carrier if, after January 1, 2002, the carrier is not in full 28 compliance with Section 13-801. For purposes of this 29 Section, "structural separation" means the separation of an 30 incumbent local exchange carrier's retail telecommunications 31 services ("retail affiliate") from the incumbent local 32 exchange carrier's network elements and services provided to 33 other telecommunications carriers ("carrier affiliate"). The -12- LRB9206184JSpc 1 retail affiliate must have at least 20% of its stock 2 publicly traded separately from the stock of the carrier 3 affiliate. The carrier affiliate may not transfer or assign 4 any network elements to its retail affiliate. The Commission 5 may consider transitional plans to implement this Section 6 provided, however, that after January 1, 2003 the carrier 7 affiliate shall not offer any retail telecommunications 8 service or related feature to any new customer, nor shall it 9 market to or provide any new retail telecommunications 10 service or related feature to any existing customer which 11 telecommunications service or related feature was not being 12 provided to that customer on January 1, 2003.The Commission13is authorized, after notice and hearing, to order a14telecommunications carrier which offers or provides both15competitive and noncompetitive telecommunications service to16establish a fully separated subsidiary to provide all or part17of such competitive service where:18(a) no less costly means is available and effective in19fully and properly identifying and allocating costs between20such carrier's competitive and noncompetitive21telecommunications services; and22(b) the incremental cost of establishing and maintaining23such subsidiary would not require increases in rates or24charges to levels which would effectively preclude the offer25or provision of the affected competitive telecommunications26service.27 (Source: P.A. 84-1063.) 28 (220 ILCS 5/13-514) 29 (Section scheduled to be repealed on July 1, 2001) 30 Sec. 13-514. Prohibited actions of telecommunications 31 carriers. A telecommunications carrier shall not knowingly 32 impede the development of competition in any 33 telecommunications service market. The following prohibited -13- LRB9206184JSpc 1 actions are considered per se impediments to the development 2 of competition; however, the Commission is not limited in any 3 manner to these enumerated impediments and may consider other 4 actions which impede competition to be prohibited: 5 (1) unreasonably refusing or delaying interconnections 6 or collocation or providing inferior connections to another 7 telecommunications carrier; 8 (2) unreasonably impairing the speed, quality, or 9 efficiency of services used by another telecommunications 10 carrier; 11 (3) unreasonably denying a request of another provider 12 for information regarding the technical design and features, 13 geographic coverage, information necessary for the design of 14 equipment, and traffic capabilities of the local exchange 15 network except for proprietary information unless such 16 information is subject to a proprietary agreement or 17 protective order; 18 (4) unreasonably delaying access in connecting another 19 telecommunications carrier to the local exchange network 20 whose product or service requires novel or specialized access 21 requirements; 22 (5) unreasonably refusing or delaying access by any 23 person to another telecommunications carrier; 24 (6) unreasonably acting or failing to act in a manner 25 that has a substantial adverse effect on the ability of 26 another telecommunications carrier to provide service to its 27 customers; 28 (7) unreasonably failing to offer services to customers 29 in a local exchange, where a telecommunications carrier is 30 certificated to provide service and has entered into an 31 interconnection agreement for the provision of local exchange 32 telecommunications services, with the intent to delay or 33 impede the ability of the incumbent local exchange 34 telecommunications carrier to provide inter-LATA -14- LRB9206184JSpc 1 telecommunications services;and2 (8) violating the terms of or unreasonably delaying 3 implementation or enforcement of an interconnection agreement 4 entered into pursuant to Section 252 of the federal 5 Telecommunications Act of 1996 in a manner that unreasonably 6 delays, increases the cost, or impedes the availability of 7 telecommunications services to consumers;.8 (9) unreasonably impeding or delaying a 9 telecommunications carrier's access to or implementation of 10 its rights under this Article through bad faith resort to the 11 Commission; and 12 (10) violating the obligations of Section 13-801. 13 (Source: P.A. 90-185, eff. 7-23-97.) 14 (220 ILCS 5/13-515) 15 (Section scheduled to be repealed on July 1, 2001) 16 Sec. 13-515. Enforcement procedures. 17 (a) The following expedited procedures shall be used to 18 enforce the provisions of Section 13-514 of this Act except 19 as provided in subsection (b). However, the Commission, the 20 complainant, and the respondent may mutually agree to adjust 21 the procedures established in this Section.If the22Commission determines, pursuant to subsection (b), that the23procedural provisions of this Section do not apply, the24complaint shall continue pursuant to the general complaint25provisions of Article X.26 (b) (Blank).The provisions of this Section shall not27apply to an allegation of a violation of item (8) of Section2813-514 by a Bell operating company, as defined in Section 329of the federal Telecommunications Act of 1996, unless and30until such company or its affiliate is authorized to provide31inter-LATA services under Section 271(d) of the federal32Telecommunications Act of 1996; provided, however, that a33complaint setting forth a separate independent basis for a-15- LRB9206184JSpc 1violation of Section 13-514 may proceed under this Section2notwithstanding that the alleged acts or omissions may also3constitute a violation of item (8) of Section 13-514.4 (c) No complaint may be filed under this Section until 5 the complainant has first notified the respondent of the 6 alleged violation and offered the respondent 48 hours to 7 correct the situation. Provision of notice and the 8 opportunity to correct the situation creates a rebuttable 9 presumption of knowledge under Section 13-514. 10 (d) A telecommunications carrier may file a complaint 11 with the Commission alleging a violation of Section 13-514 in 12 accordance with this subsection: 13 (1) The complaint shall be filed with the Chief 14 Clerk of the Commission and shall be served in hand upon 15 the respondent, the executive director, and the general 16 counsel of the Commission at the time of the filing. 17 (2) A complaint filed under this subsection shall 18 include a statement that the requirements of subsection 19 (c) have been fulfilled and that the respondent did not 20 correct the situation as requested. 21 (3) Reasonable discovery specific to the issue of 22 the complaint may commence upon filing of the complaint. 23 Requests for discovery must be served in hand and 24 responses to discovery must be provided in hand to the 25 requester within 14 days after a request for discovery is 26 made. 27 (4) An answer and any other responsive pleading to 28 the complaint shall be filed with the Commission and 29 served in hand at the same time upon the complainant, the 30 executive director, and the general counsel of the 31 Commission within 7 days after the date on which the 32 complaint is filed. 33 (5) If the answer or responsive pleading raises the 34 issue that the complaint violates subsection (i) of this -16- LRB9206184JSpc 1 Section, the complainant may file a reply to such 2 allegation within 3 days after actual service of such 3 answer or responsive pleading. Within 4 days after the 4 time for filing a reply has expired, the hearing officer 5 or arbitrator shall either issue a written decision 6 dismissing the complaint as frivolous in violation of 7 subsection (i) of this Section including the reasons for 8 such disposition or shall issue an order directing that 9 the complaint shall proceed. 10 (6) A pre-hearing conference shall be held within 11 14 days after the date on which the complaint is filed. 12 (7) The hearing shall commence within 30 days of 13 the date on which the complaint is filed. The hearing 14 may be conducted by a hearing examiner or by an 15 arbitrator. Parties and the Commission staff shall be 16 entitled to present evidence and legal argument in oral 17 or written form as deemed appropriate by the hearing 18 examiner or arbitrator. The hearing examiner or 19 arbitrator shall issue a written decision within 60 days 20 after the date on which the complaint is filed. The 21 decision shall include reasons for the disposition of the 22 complaint and, if a violation of Section 13-514 is found, 23 directions and a deadline for correction of the 24 violation. 25 (8) Any party may file a petition requesting the 26 Commission to review the decision of the hearing examiner 27 or arbitrator within 5 days of such decision. Any party 28 may file a response to a petition for review within 3 29 business days after actual service of the petition. 30 After the time for filing of the petition for review, but 31 no later than 15 days after the decision of the hearing 32 examiner or arbitrator, the Commission shall decide to 33 adopt the decision of the hearing examiner or arbitrator 34 or shall issue its own final order. -17- LRB9206184JSpc 1 (e) If the alleged violation has a substantial adverse 2 effect on the ability of the complainant to provide service 3 to customers, the complainant may include in its complaint a 4 request for an order for emergency relief. The Commission, 5 acting through its designated hearing examiner or arbitrator, 6 shall act upon such a request within 2 business days of the 7 filing of the complaint. An order for emergency relief may 8 be granted, without an evidentiary hearing, upon a verified 9 factual showing that the party seeking relief will likely 10 succeed on the merits, that the party will suffer irreparable 11 harm in its ability to serve customers if emergency relief is 12 not granted, and that the order is in the public interest. 13 An order for emergency relief shall include a finding that 14 the requirements of this subsection have been fulfilled and 15 shall specify the directives that must be fulfilled by the 16 respondent and deadlines for meeting those directives. The 17 decision of the hearing examiner or arbitrator to grant or 18 deny emergency relief shall be considered an order of the 19 Commission unless the Commission enters its own order within 20 2 calendar days of the decision of the hearing examiner or 21 arbitrator. The order for emergency relief may require the 22 responding party to act or refrain from acting so as to 23 protect the provision of competitive service offerings to 24 customers. Any action required by an emergency relief order 25 must be technically feasible and economically reasonable and 26 the respondent must be given a reasonable period of time to 27 comply with the order. 28 (f) The Commission is authorized to obtain outside 29 resources including, but not limited to, arbitrators and 30 consultants for the purposes of the hearings authorized by 31 this Section. Any arbitrator or consultant obtained by the 32 Commission shall be approved by both parties to the hearing. 33 The cost of such outside resources including, but not limited 34 to, arbitrators and consultants shall be borne by the -18- LRB9206184JSpc 1 parties. The Commission shall review the bill for 2 reasonableness and assess the parties for reasonable costs 3 dividing the costs according to the resolution of the 4 complaint brought under this Section. Such costs shall be 5 paid by the parties directly to the arbitrators, consultants, 6 and other providers of outside resources within 60 days after 7 receiving notice of the assessments from the Commission. 8 Interest at the statutory rate shall accrue after expiration 9 of the 60-day period. The Commission, arbitrators, 10 consultants, or other providers of outside resources may 11 apply to a court of competent jurisdiction for an order 12 requiring payment. 13 (g) The Commission shall assess the parties under this 14 subsection for all of the Commission's costs of investigation 15 and conduct of the proceedings brought under this Section 16 including, but not limited to, the prorated salaries of 17 staff, attorneys, hearing examiners, and support personnel 18 and including any travel and per diem, directly attributable 19 to the complaint brought pursuant to this Section, but 20 excluding those costs provided for in subsection (f), 21 dividing the costs according to the resolution of the 22 complaint brought under this Section. All assessments made 23 under this subsection shall be paid into the Public Utility 24 Fund within 60 days after receiving notice of the assessments 25 from the Commission. Interest at the statutory rate shall 26 accrue after the expiration of the 60 day period. The 27 Commission is authorized to apply to a court of competent 28 jurisdiction for an order requiring payment. 29 (h) If the Commission determines that there is an 30 imminent threat to competition or to the public interest, the 31 Commission may, notwithstanding any other provision of this 32 Act, seek temporary, preliminary, or permanent injunctive 33 relief from a court of competent jurisdiction either prior to 34 or after the hearing. -19- LRB9206184JSpc 1 (i) A party shall not bring or defend a proceeding 2 brought under this Section or assert or controvert an issue 3 in a proceeding brought under this Section, unless there is a 4 non-frivolous basis for doing so. By presenting a pleading, 5 written motion, or other paper in complaint or defense of the 6 actions or inaction of a party under this Section, a party is 7 certifying to the Commission that to the best of that party's 8 knowledge, information, and belief, formed after a reasonable 9 inquiry of the subject matter of the complaint or defense, 10 that the complaint or defense is well grounded in law and 11 fact, and under the circumstances: 12 (1) it is not being presented to harass the other 13 party, cause unnecessary delay in the provision of 14 competitive telecommunications services to consumers, or 15 create needless increases in the cost of litigation; and 16 (2) the allegations and other factual contentions 17 have evidentiary support or, if specifically so 18 identified, are likely to have evidentiary support after 19 reasonable opportunity for further investigation or 20 discovery as defined herein. 21 (j) If, after notice and a reasonable opportunity to 22 respond, the Commission determines that subsection (i) has 23 been violated, the Commission shall impose appropriate 24 sanctions upon the party or parties that have violated 25 subsection (i) or are responsible for the violation. The 26 sanctions shall be not more than $7,500, plus the amount of 27 expenses accrued by the Commission for conducting the 28 hearing. Payment of sanctions imposed under this subsection 29 shall be made to the Common School Fund within 30 days of 30 imposition of such sanctions. 31 (k) An appeal of a Commission Order made pursuant to 32 this Section shall not effectuate a stay of the Order unless 33 a court of competent jurisdiction specifically finds that the 34 party seeking the stay will likely succeed on the merits, -20- LRB9206184JSpc 1 that the party will suffer irreparable harm without the stay, 2 and that the stay is in the public interest. 3 (Source: P.A. 90-185, eff. 7-23-97; 90-574, eff. 3-20-98.) 4 (220 ILCS 5/13-516) 5 (Section scheduled to be repealed on July 1, 2001) 6 Sec. 13-516. Penalties for violation of a Commission 7 order relating to prohibited actions of telecommunications 8 carriers. 9 (a) Notwithstanding any other provision of this Act, the 10 Commission may impose penalties of up to $1,000,000$30,00011 per violation of Section 13-514a final order or emergency12relief order issued pursuant to Section 13-515 of this Act. 13 Each day of a continuing offense against each entity shall be 14 treated as a separate violation for purposes of levying any 15 penalty under this Section. The period for which the fine 16 shall be levied shall commence on the day the 17 telecommunications carrier first violated the ActCommission18order requires compliance with the orderand shall continue 19 until the party is in compliance with the Commission order. 20 (a-5) An incumbent local exchange carrier may not 21 declare any cash, stock, bond, or scrip dividend or 22 distribution, or divide the proceeds of the sale of any 23 stock, bond, or scrip among its stockholders while the 24 carrier is in violation of a Commission order or while there 25 exists against the carrier a Commission finding of failure to 26 meet its obligations under Section 13-801, except upon 27 Commission approval after notice and hearing. 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 -21- LRB9206184JSpc 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 (Source: P.A. 90-185, eff. 7-23-97.) 11 (220 ILCS 5/13-517 new) 12 Sec. 13-517. Damages for violations of Article XIII. 13 (a) The Commission is granted all powers necessary to 14 resolve and adjudicate disputes between telecommunications 15 carriers brought under this Act, and to award compensatory, 16 consequential, and punitive damages that are reasonably 17 calculated to maintain compliance with the purpose, 18 objectives, and express requirements of this Article. 19 (b) If after notice and hearing the Commission finds 20 that a telecommunications carrier has violated Article XIII, 21 including, but not limited to, a violation of any tariff 22 offering or requirement, causing damages to another 23 telecommunications carrier or carriers, the Commission shall 24 award compensatory, consequential, or punitive damages, or 25 any combination thereof, according to the facts of the case. 26 The Commission shall also award attorney fees and costs to 27 the prevailing telecommunications carrier or carriers. 28 (c) The violating telecommunications carrier shall not 29 pass through any of the amounts paid pursuant to this Section 30 or any other related defense costs to its customers in any 31 manner, directly or indirectly. 32 (d) Unless stayed by the Commission or a court, should 33 the violating telecommunications carrier fail to pay the -22- LRB9206184JSpc 1 damages, fees, or costs within the time set in the 2 Commission's order, the telecommunications carrier or 3 carriers awarded the damages, fees, or costs may apply to the 4 court pursuant to Section 5-201 of this Act for enforcement 5 of the Commission's order and, in addition to the damages, 6 fees, or costs awarded by the Commission, the court shall 7 further award, to the telecommunications carrier or carriers 8 awarded damages, fees, or costs by the Commission, additional 9 damages for the sake of example and by the way of punishment 10 plus reasonable attorneys' fees fixed by the court, unless 11 the court finds a reasonable basis for the violating 12 carrier's failure to make timely payment according to the 13 Commission's order, in which instance the court shall 14 establish a new date for payment to be made. The 15 telecommunications carrier or carriers awarded the damages, 16 fees, or costs by the Commission may also apply to the court, 17 and the court may award, temporary, preliminary, or permanent 18 injunctive relief, or such other equitable relief as may be 19 necessary, to effectively implement and enforce the 20 Commission's order in a timely manner. 21 (220 ILCS 5/13-801) (from Ch. 111 2/3, par. 13-801) 22 (Section scheduled to be repealed on July 1, 2001) 23 Sec. 13-801. Incumbent local exchange carrier 24 obligations. 25 (a) An incumbent local exchange carrier shall provide a 26 requesting telecommunications carrier with interconnection, 27 collocation, and network elements to enable the provision of 28 existing and new local exchange and exchange access 29 telecommunications services. The Commission shall require 30 the incumbent local exchange carrier to provide 31 interconnection, collocation, and network elements in any 32 manner reasonably requested by the requesting 33 telecommunications carrier to the fullest extent possible to -23- LRB9206184JSpc 1 implement the maximum development of competitive local 2 exchange offerings. In no instance may the Commission 3 approve interconnection, collocation, network elements, and 4 resale provisioning by the incumbent local exchange carrier 5 below the minimum required by Section 251 of the federal 6 Communications Act of 1934, as amended, and the subsequent 7 orders of the Federal Communications Commission. 8 (b) An incumbent local exchange carrier must provide for 9 the facilities and equipment of any requesting 10 telecommunications carrier's interconnection with the 11 incumbent local exchange carrier's network on just, 12 reasonable, and nondiscriminatory terms and conditions: 13 (1) for the transmission and routing of local 14 exchange and exchange access telecommunications services; 15 (2) at any technically feasible point within the 16 incumbent local exchange carrier's network; and 17 (3) that is at least equal in quality to that 18 provided by the incumbent local exchange carrier to 19 itself or to any subsidiary, affiliate, or other party to 20 which the incumbent local exchange carrier provides 21 interconnection. 22 An incumbent local exchange carrier shall make available 23 to any requesting telecommunications carrier the 24 interconnection terms and conditions that the incumbent local 25 exchange carrier or any of its subsidiaries or affiliates 26 offer or provide in other states. Incumbent local exchange 27 carriers shall also make available to requesting 28 telecommunications carriers the interconnection terms and 29 conditions that any of its subsidiaries or affiliates has 30 obtained in another state. 31 (c) The incumbent local exchange carrier shall provide 32 for physical or virtual collocation of any type of equipment 33 used and useful for interconnection or access to network 34 elements at any technically feasible place of the premises of -24- LRB9206184JSpc 1 the incumbent local exchange carrier. The equipment shall 2 include, but is not limited to, optical transmission 3 equipment, microwave transmission facilities, multiplexers, 4 remote switching modules, and cross-connects between the 5 facilities or equipment of other collocated carriers. The 6 incumbent local exchange carrier must also allow, and provide 7 for, the collocation of cross-connects between the facilities 8 of a collocated carrier and any facilities of the incumbent 9 local exchange carrier being used to provide a 10 telecommunications service by another telecommunications 11 provider, whether the incumbent's facilities are purchased as 12 network elements, bundled or unbundled, or as part of a 13 telecommunications service purchased at wholesale by the 14 telecommunications carrier requesting the cross-connect 15 collocation. If the incumbent local exchange carrier has 16 deployed a collocation arrangement in any of its premises or 17 its affiliated company's premises, it shall be presumed that 18 such a collocation arrangement is technically feasible in 19 Illinois. Collocation arrangements shall be provided at 20 cost-based rates, and on just, reasonable, and 21 nondiscriminatory terms and conditions. 22 (d) The incumbent local exchange carrier shall provide 23 to any requesting telecommunications carrier for the 24 provision of an existing or a new telecommunications service 25 nondiscriminatory access to network elements on any unbundled 26 or bundled basis, as requested, at any technically feasible 27 point on terms and conditions that are just, reasonable, and 28 nondiscriminatory. 29 (1) An incumbent local exchange carrier shall 30 provide unbundled network elements in a manner that 31 allows requesting telecommunications carriers to combine 32 such network elements to provide a telecommunications 33 service. 34 (2) An incumbent local exchange carrier shall not -25- LRB9206184JSpc 1 separate network elements that are currently combined, 2 except at the explicit direction of the requesting 3 carrier. 4 (3) At the request of any telecommunications 5 carrier, an incumbent local exchange carrier shall 6 combine any sequence of unbundled network elements that 7 it ordinarily combines for itself. 8 (4) Upon request, an incumbent local exchange 9 carrier shall combine requested unbundled network 10 elements in any manner, even if those network elements 11 are not ordinarily combined in the incumbent local 12 exchange carrier's network, provided that such 13 combination is: 14 (A) technically feasible; and 15 (B) would not impair the ability of other 16 telecommunications carriers to obtain access to 17 unbundled network elements or to interconnect with 18 the incumbent local exchange carrier's network. 19 (5) Upon request, an incumbent local exchange 20 carrier shall perform the functions necessary to combine 21 unbundled network elements with elements possessed by the 22 requesting telecommunications carrier in any technically 23 feasible manner. 24 (6) An incumbent local exchange carrier that denies 25 a request to combine elements pursuant to item (4)(A) or 26 item (5) of this subsection must prove to the Commission 27 that the requested combination is not technically 28 feasible. 29 (7) An incumbent local exchange carrier that denies 30 a request to combine network elements pursuant to item 31 (4)(B) of this subsection must prove to the Commission 32 that the requested combination would impair the ability 33 of other telecommunications carriers to obtain access to 34 unbundled network elements or to interconnect with the -26- LRB9206184JSpc 1 incumbent local exchange carrier's network. 2 (8) A telecommunications carrier may use a network 3 elements platform consisting solely of combined network 4 elements of the incumbent local exchange carrier to 5 provide end to end telecommunications service without the 6 requesting telecommunications carrier's provision or use 7 of any other facilities or functionalities. 8 (9) The Commission shall establish maximum time 9 periods for the incumbent local exchange carrier's 10 provision of network elements. The maximum time period 11 shall be no longer than the time period for the incumbent 12 local exchange carrier's provision of comparable retail 13 services utilizing such network elements. The Commission 14 may establish a maximum time period for a particular 15 network element that is shorter than for a comparable 16 retail service offered by the incumbent local exchange 17 carrier if a requesting telecommunications carrier 18 establishes that it must perform other functions or 19 activities after receipt of the particular network 20 element to provide telecommunications services to 21 end-users. Notwithstanding any other provision of this 22 Article, the maximum time intervals established by the 23 Commission shall not exceed 5 business days for the 24 provision of unbundled loops, both digital and analog, 25 for the conditioning of unbundled loops, for existing 26 combinations of network elements for an end user that has 27 existing local exchange telecommunications service, and 28 one business day for the provisioning of high frequency 29 portion of the loop (line-sharing). 30 (e) When a telecommunications carrier requests a network 31 elements platform referred to in item (8) of subsection (d) 32 as is for an end user that has existing local exchange 33 telecommunications service provided through the incumbent 34 local exchange carrier, without explicitly directing that any -27- LRB9206184JSpc 1 physical changes be made by the incumbent local exchange 2 carrier, the incumbent local exchange carrier shall provide 3 the requesting telecommunications carrier with the requested 4 network elements platform as is within 2 business days, 5 without any disruption to the end user's services, unless 6 otherwise agreed by the telecommunications carriers. Absent 7 a contrary agreement between the telecommunications carriers 8 entered into after the effective date of this amendatory Act 9 of the 92nd General Assembly, as of 12:01 a.m. on the second 10 business day after placing the order for a network elements 11 platform as is, the requesting telecommunications carrier 12 shall be the presubscribed primary local exchange carrier for 13 that end user line and shall be entitled to receive, or to 14 direct the disposition of, all revenues for all services 15 utilizing the network elements in the platform, unless it is 16 established that the end user of the existing local exchange 17 service did not authorize the requesting telecommunications 18 carrier to make the request. 19 (f) An incumbent local exchange carrier, its 20 subsidiaries, and affiliates, that provide retail 21 telecommunications services shall utilize the same 22 preordering, ordering, provisioning, maintenance and repair, 23 and billing functions of the incumbent local exchange 24 carrier's operations support systems as are provided to 25 telecommunications carriers ordering or receiving network 26 elements from the incumbent local exchange carrier. Instead 27 of utilizing the operational support systems that are 28 utilized by the incumbent local exchange carrier, a 29 telecommunications carrier may elect to receive similar 30 electronic functions that maintain parity with the incumbent 31 local exchange carrier's operations support systems. 32 (g) A telecommunications carrier that offers both 33 noncompetitive and competitive services shall offer all 34 noncompetitive services, together with each applicable -28- LRB9206184JSpc 1 optional feature or functionality, subject to resale; 2 however, the Commission may determine under Article IX of 3 this Act that certain noncompetitive services, together with 4 each applicable optional feature or functionality, that are 5 offered to residence customers under different rates, 6 charges, terms, or conditions than to other customers should 7 not be subject to resale under the rates, charges, terms, or 8 conditions available only to residence customers. 9 (h) The Commission shall provide that the incumbent 10 local exchange carrier is compensated for the provisioning of 11 interconnection, collocation, network elements, and 12 operations support systems at cost-based rates. The 13 immediate implementation and provisioning of interconnection, 14 collocation, network elements, and operations support systems 15 shall not be delayed due to any lack of determination by the 16 Commission as to the cost-based rates. Where cost-based 17 rates have not been established, within 30 days after the 18 filing of a petition for the setting of interim rates or 19 after the Commission's own motion, the Commission shall 20 provide for interim rates that shall remain in full force and 21 effect until the cost-based rate determination is made, or 22 the interim rate is modified, by the Commission. 23 (i) The exemption for certain rural telephone companies 24 as described in 47 U.S.C. 251(f) is adopted and incorporated 25 by reference. The Commission may approve a deadline, other 26 than the deadline provided in this Section, for compliance 27 with a requirement of this Section by a telecommunications 28 carrier with fewer than 35,000 access lines in Illinois if 29 the Commission finds, after notice and hearing, that 30 compliance with a deadline provided in this Section would 31 impair the ability of the petitioning carrier to meet its 32 service obligations. However, the Commission may not approve 33 a deadline for compliance with any requirement of this 34 Section that is later than January 1, 2003. -29- LRB9206184JSpc 1 (j) A telecommunications carrier may request the 2 incumbent local exchange carrier to provide a schedule of 3 rates listing each of the nonrecurring and recurring charges 4 of the incumbent local exchange carrier that pertains to a 5 proposed order identified by the telecommunications carrier 6 for any of the matters covered in this Section. The 7 incumbent local exchange carrier shall deliver the requested 8 schedule of rates to the requesting telecommunications 9 carrier within 2 business days. 10The Commission shall prepare and issue an annual report11on the status of the telecommunications industry and Illinois12regulation thereof on January 31 of each year beginning in131986. Such report shall include:14(a) A review of regulatory decisions and actions15from the preceding year and a description of pending16cases involving significant telecommunications carriers17or issues;18(b) a description of the telecommunications19industry and changes or trends therein, including the20number, type and size of firms offering21telecommunications services, whether or not such firms22are subject to State regulation, telecommunications23technologies in place and under development, variations24in the geographic availability of services and in prices25for services, and penetration levels of subscriber access26to local exchange service in each exchange and trends27related thereto;28(c) the status of compliance by carriers and the29Commission with the requirements of this Article;30(d) the effects, and likely effects of Illinois31regulatory policies and practices, including those32described in this Article, on telecommunications33carriers, services and customers;34(e) any recommendations for legislative change-30- LRB9206184JSpc 1which are adopted by the Commission and which the2Commission believes are in the interest of Illinois3telecommunications customers; and4(f) any other information or analysis which the5Commission is required to provide by this Article or6deems necessary to provide.7The Commission's report shall be filed with the Joint8Committee on Legislative Support Services, the Governor, and9the Public Counsel and shall be publicly available. The Joint10Committee on Legislative Support Services shall conduct11public hearings on the report and any recommendations12therein.13 (Source: P.A. 84-1063.) 14 (220 ILCS 5/13-902) 15 (Section scheduled to be repealed on July 1, 2001) 16 Sec. 13-902. Rules for verification of a subscriber's 17change intelecommunications carrier or addition to a 18 subscriber's service. 19 (a) As used in this Section, "subscriber" means a 20 telecommunications carrier's retail business customer served 21 by not more than 20 lines or a retail residential customer, 22 and "telecommunications carrier" has the meaning given in 23 Section 13-202 of the Public Utilities Act, except that 24 "telecommunications carrier" does not include a provider of 25 commercial mobile radio services (as defined by 47 U.S.C. 26 332(d)(1)). 27 (b) A subscriber's presubscribed local exchange and 28 interexchange telecommunications services shall be delivered 29 to and transmitted by the presubscribedpresubscription of a30 primary local exchange or interexchange telecommunications 31 carrier selected by the subscriber and may not be transmitted 32 byswitched toanother telecommunications carrier unless it 33 has obtained eitherwithoutthe subscriber's or presubscribed -31- LRB9206184JSpc 1 telecommunications carrier's authorization. A presubscribed 2 telecommunications carrier's directing or delivering a 3 subscriber's transmission to another telecommunications 4 carrier shall create a rebuttable presumption of the 5 presubscribed telecommunications carrier's authorization for 6 the receiving telecommunications carrier and subsequent 7 telecommunications carriers to direct the carriage of such 8 transmission. 9 (c) A telecommunications carrier shall not effectuate a 10 change to a subscriber's telecommunications services by 11 providing an additional telecommunications service that 12 results in an additional monthly charge to the subscriber 13 (herein referred to as an "additional telecommunications 14 service") without following the subscriber notification 15 procedures set forth in this Section. An "additional 16 telecommunications service" does not include making available 17 any additional telecommunications services on a subscriber's 18 line when the subscriber activates and pays for the services 19 on a per use basis. 20 (d) It is the responsibility of the company or 21 telecommunications carrier requesting a change in a 22 subscriber's telecommunications carrier to obtain the 23 subscriber's authorization for the change whenever the 24 company or telecommunications carrier acts as a subscriber's 25 agent with respect to the change. 26 (e) A company or telecommunications carrier submitting a 27 change in a subscriber's primary exchange or interexchange 28 telecommunications carrier as described in subsection (d) 29 shall be solely responsible for providing written notice of 30 the change to the subscriber in accordance with this Section, 31 or for obtaining verification of the subscriber's assent to 32 the change in accordance with this Section. In addition, a 33 telecommunications carrier that provides any additional 34 telecommunications service to a subscriber shall be solely -32- LRB9206184JSpc 1 responsible for providing written notice of the additional 2 telecommunications service to the subscriber in accordance 3 with this Section, or for obtaining verification of the 4 subscriber's assent to the additional telecommunications 5 service in accordance with this Section. 6 (1) If the company or telecommunications carrier 7 elects to provide written notice in accordance with this 8 Section, the notice shall be provided as follows: 9 (A) A letter to the subscriber must be mailed 10 using first class mail, postage prepaid, no later 11 than 10 days after the telecommunications carrier 12 submitting the change in the subscriber's primary 13 exchange or interexchange telecommunications carrier 14 is on notice that the change has occurred or no 15 later than 10 days after initiation of an additional 16 telecommunications service has occurred. 17 (B) The letter must be a separate document 18 sent for the sole purpose of describing the changes 19 or additions authorized by the subscriber. 20 (C) The letter must be printed with 10 point 21 or larger type and contain clear and plain language 22 that confirms the details of a change in the 23 presubscribed telecommunications carrier or of the 24 addition of the telecommunications service and 25 provides the subscriber with a toll free number to 26 call should the subscriber wish to cancel the change 27 or make additional changes. 28 (2) If the company or telecommunications carrier 29 elects to obtain verification in accordance with this 30 Section, verification shall be obtained as follows: 31 (A) Verification shall be obtained by an 32 independent third-party that: 33 (i) operates from a facility physically 34 separate from that of the telecommunications -33- LRB9206184JSpc 1 carrier or company seeking the change or 2 addition of service; 3 (ii) is not directly or indirectly 4 managed, controlled, directed, or owned wholly 5 or in part by the telecommunications carrier or 6 company seeking the change or addition of 7 telecommunications services; 8 (iii) does not derive commissions or 9 compensation based upon the number of sales, 10 changes, or additions confirmed; and 11 (iv) shall retain records of the 12 confirmation of sales or changes for 24 months. 13 (B) The third-party verification agent shall 14 state to the subscriber, and shall obtain the 15 subscriber's acknowledgement to, the following 16 disclosures: 17 (i) the consumer's name, address, and the 18 telephone numbers of all telephone lines that 19 will be changed or to which additional 20 telecommunications services will be added; 21 (ii) the names of the telecommunications 22 carrier or company that is replacing the 23 previous presubscribed telecommunications 24 carrier or adding a telecommunications service 25 to the subscriber's account and, where 26 applicable, the name of the carriers being 27 replaced; 28 (iii) in cases where verification is 29 sought for the subscriber's presubscribed 30 telecommunications carrier, that for each line 31 the subscriber can designate only one 32 presubscribed telecommunications carrier to 33 handle each of the subscriber's local, long 34 distance, or local toll service depending upon -34- LRB9206184JSpc 1 which presubscribed telecommunications service 2 or services are being verified; and 3 (iv) the fact that a fee may be imposed 4 on the subscriber for the change of primary 5 exchange or interexchange telecommunications 6 carriers or that a monthly recurring fee may be 7 charged for the additional service, if that is 8 the case. 9 (C) The third-party verification agent shall 10 obtain verification no later than 3 days after the 11 carrier submitting a change in the subscriber's 12 primary exchange or interexchange telecommunications 13 carrier is on notice that the change has occurred or 14 no later than 3 days after initiation of an 15 additional telecommunications service has occurred. 16 (D) Thetelecommunicationscompany or 17 telecommunications carrier seeking to implement the 18 change in service or additional service may connect 19 the subscriber to the verification agent, provided 20 that all of the requirements for verification by a 21 third party as set forth in this Section are 22 otherwise complied with fully. 23 (3) The verification or notice requirements 24 described in this subsection shall apply to all changes 25 to a subscriber's presubscription of a primary exchange 26 or interexchange telecommunications carrier, whether the 27 change was initiated through an inbound call initiated by 28 the customer or outbound telemarketing. Where a 29 subscriber's telecommunications services are changed by 30 the provision of an additional telecommunications 31 service, the verification or notice requirements 32 described in this subsection shall apply if the change 33 was initiated through outbound telemarketing. Where a 34 subscriber's telecommunications services are changed by -35- LRB9206184JSpc 1 the provision of an additional telecommunications service 2 and the change was initiated through inbound 3 telemarketing, the telecommunications carrier shall 4 comply with all rules or regulations promulgated by the 5 Federal Communications Commission. 6 (4) Verifications conducted or obtained in a manner 7 not in compliance with this Section or notice given in a 8 manner not in compliance with this Section shall be void 9 and without effect. 10 (f) The Commission mayshallpromulgate any rules 11 necessary to ensure that a subscriber's presubscribed local 12 exchange and interexchange telecommunications services are 13 delivered to and transmitted by the presubscribed primary 14 local exchange or interexchange telecommunications carrier 15 selected by the subscriber and are not transmitted by another 16 telecommunications carrier without obtaining either the 17 subscriber's or presubscribed telecommunications carrier's 18 authorizationthe primary exchange or interexchange19telecommunications carrier of a subscriber is not changed to20another telecommunications carrieror that an additional 21 telecommunications service is not added without the 22 subscriber's authorization. The rules promulgated under this 23 Section shall comport with the rules, if any, promulgated by 24 the Attorney General pursuant to the Consumer Fraud and 25 Deceptive Business Practices Act and with any rules 26 promulgated by the Federal Communications Commission. 27 (g) Complaints may be filed with the Commission under 28 this Section by a subscriber whose primary local exchange or 29 interexchangecarrier hastelecommunications services have 30 been transmitted by another telecommunications carrier 31 without obtaining either the subscriber's or presubscribed 32 telecommunications carrier's authorization, by a subscriber 33changed to another telecommunications carrier without34authorization orwho has been provided an additional -36- LRB9206184JSpc 1 telecommunications service not ordered by the subscriber, by 2 a subscriber's presubscribed primary local exchange or 3 interexchange telecommunications carrier,by a4telecommunications carrier that has been removed as a5subscriber's primary exchange or interexchange6telecommunications carrier without authorization,or by the 7 Commission on its own motion. Upon filing of the complaint, 8 the parties may mutually agree to submit the complaint to the 9 Commission's established mediation process. Remedies in the 10 mediation process may include, but shall not be limited to, 11 the remedies set forth in paragraphs (1) through (5) of this 12 subsection. In its discretion, the Commission may deny the 13 availability of the mediation process and submit the 14 complaint to hearings. If the complaint is not submitted to 15 mediation or if no agreement is reached during the mediation 16 process, hearings shall be held on the complaint pursuant to 17 Section 13-515Article 10of this Act. If, after notice and 18 hearing, the Commission finds that a telecommunications 19 carrier has violated this Section or a rule promulgated under 20 this Section, the Commission may in its discretion order any 21 one or more of the following: 22 (1) In case of an unauthorized transmission of 23change ina subscriber's presubscribed primary local 24primaryexchange or interexchange telecommunications 25 servicescarrier, require the violating 26 telecommunications carrier to refund to the subscriber 27 all fees and charges collected from the subscriber for 28 services from the time the violating carrier began 29 transmitting unauthorized transmissions up to the time 30 the subscriber receives written notice of the fact that 31 the violating telecommunications carrier is providing 32 telecommunications service to the subscriber. WhenFora 33 subscriber's presubscribed primary local exchange or 34 interexchange telecommunications carrier has been changed -37- LRB9206184JSpc 1 and the new presubscribed telecommunications carrierthat2 elects to provide written notice of a change in a 3 subscriber's primary exchange or interexchange carrier, 4 notice consistent with paragraph (1) of subsection (e) 5 shall be deemed to be receipt of notice by the 6 subscriber for purposes of this paragraph. When a 7 subscriber's presubscribed primary local exchange or 8 interexchange telecommunications carrier has been changed 9 and the new presubscribed telecommunicationsFor a10 carrierthatelects to obtain verification of a change in 11 a subscriber's primary local exchange or interexchange 12 carrier consistent with paragraph (2) of subsection (e) 13 of this Section, either the first correspondence from the 14 carrier that notifies the customer of the change or the 15 subscriber's first bill for services, whichever is mailed 16 first, shall be deemed to be receipt of notice by the 17 subscriber for purposes of this paragraph.The18Commission may order the remedial action outlined in this19subsection only to the extent that the same remedial20action is allowed pursuant to rules or regulations21promulgated by the Federal Communications Commission.22 (2) In case of an unauthorized transmission of a 23 subscriber's presubscribedchange in theprimary local 24 exchange or interexchange telecommunications services 25carrier, require the violating telecommunications carrier 26 to refund to the subscriber charges collected in excess 27 of those that would have been charged by the subscriber's 28 chosen presubscribed telecommunications carrier. 29 (3) In case of an unauthorized transmission of a 30 subscriber's presubscribedchange in theprimary local 31 exchange or interexchange telecommunications services 32carrier, require the violating telecommunications carrier 33 to pay to the subscriber's chosen presubscribed 34 telecommunications carrier the amount the chosen -38- LRB9206184JSpc 1 presubscribed telecommunications carrier would have 2 collected for the telecommunications service. The 3 Commission is authorized to reduce this payment by any 4 amount already paid by the violating telecommunications 5 carrier to the subscriber's chosen presubscribed 6 telecommunications carrier for those telecommunications 7 services. 8 (4) Require the violating telecommunications 9 carrier to pay a fine of up to $1,000 into the Public 10 Utility Fund for each repeated and intentional violation 11 of this Section. 12 (5) In the case of an unauthorized additional 13 telecommunications service, require the violating carrier 14 to refund or cancel all charges for telecommunications 15 services or products provided without a subscriber's 16 authorization. 17 (6) Issue a cease and desist order. 18 (7) For a pattern of violation of this Section or 19 for intentionally violating a cease and desist order, 20 revoke the violating telecommunications carrier's 21 certificate of service authority. 22 (Source: P.A. 89-497, eff. 6-27-96; 90-610, eff. 7-1-98.) 23 (220 ILCS 5/13-1001 new) 24 Sec. 13-1001. Annual report. The Commission shall 25 prepare and issue an annual report on the status of the 26 telecommunications industry and Illinois regulation thereof 27 on January 31 of each year. The report shall include: 28 (1) a review of regulatory decisions and actions 29 from the preceding year and a description of pending 30 cases involving significant telecommunications carriers 31 or issues; 32 (2) a description of the telecommunications 33 industry and changes or trends therein, including the -39- LRB9206184JSpc 1 number, type and size of firms offering 2 telecommunications services, whether or not such firms 3 are subject to State regulation, telecommunications 4 technologies in place and under development, variations 5 in the geographic availability of services and in prices 6 for services, and penetration levels of subscriber access 7 to local exchange service in each exchange and trends 8 related thereto; 9 (3) the status of compliance by carriers and the 10 Commission with the requirements of this Article; 11 (4) the effects and likely effects of Illinois 12 regulatory policies and practices, including those 13 described in this Article, on telecommunications 14 carriers, services and customers; 15 (5) any recommendations for legislative change that 16 are adopted by the Commission and which the Commission 17 believes are in the interest of Illinois 18 telecommunications customers; and 19 (6) any other information or analysis that the 20 Commission is required to provide by this Article or 21 deems necessary to provide. 22 The Commission's report shall be filed with the Joint 23 Committee on Legislative Support Services and the Governor 24 and shall be publicly available. The Joint Committee on 25 Legislative Support Services shall conduct public hearings on 26 the report and any recommendations therein. 27 (220 ILCS 5/13-1002 new) 28 Sec. 13-1002. Repealer. This Article XIII is repealed 29 effective July 1, 2007. 30 (220 ILCS 5/13-505.3 rep.) 31 (220 ILCS 5/13-802 rep.) 32 (220 ILCS 5/13-803 rep.) -40- LRB9206184JSpc 1 Section 10. The Public Utilities Act is amended by 2 repealing Sections 13-505.3, 13-802, and 13-803. 3 Section 15. The Illinois Antitrust Act is amended by 4 changing Sections 3 and 5 as follows: 5 (740 ILCS 10/3) (from Ch. 38, par. 60-3) 6 Sec. 3. Every person shall be deemed to have committed a 7 violation of this Act who shall: 8 (1) Make any contract with, or engage in any combination 9 or conspiracy with, any other person who is, or but for a 10 prior agreement would be, a competitor of such person: 11 (A)a.for the purpose or with the effect of 12 fixing, controlling, or maintaining the price or rate 13 charged for any commodity sold or bought by the parties 14 thereto, or the fee charged or paid for any service 15 performed or received by the parties thereto; 16 (B)b.fixing, controlling, maintaining, limiting, 17 or discontinuing the production, manufacture, mining, 18 sale or supply of any commodity, or the sale or supply of 19 any service, for the purpose or with the effect stated in 20 paragraph (A)a.of subsection (1); 21 (C)c.allocating or dividing customers, 22 territories, supplies, sales, or markets, functional or 23 geographical, for any commodity or service; or 24 (2) By contract, combination, or conspiracy with one or 25 more other persons unreasonably restrain trade or commerce; 26 or 27 (3) Establish, maintain, use, or attempt to acquire 28 monopoly power over any substantial part of trade or commerce 29 of this State for the purpose of excluding competition or of 30 controlling, fixing, or maintaining prices in such trade or 31 commerce; consistent or willful violations of the obligations 32 contained in Section 13-801 of the Public Utilities Act shall -41- LRB9206184JSpc 1 be considered prima facie evidence of violation of this item 2 (3); or 3 (4) Lease or make a sale or contract for sale of goods, 4 wares, merchandise, machinery, supplies, or other 5 commodities, or services (including master antenna television 6 service), whether patented or unpatented, for use, 7 consumption, enjoyment, or resale, or fix a price charged 8 thereof, or discount from, or rebate upon, such price, on the 9 condition, agreement, or understanding that the lessee or 10 purchaser thereof shall not use or deal in the goods, wares, 11 merchandise, machinery, supplies, or other commodity or 12 service (including cable television service or cable 13 television relay service), of a competitor or competitors of 14 the lessor or seller, where the effect of such lease, sale or 15 contract for such sale or such condition, agreement, or 16 understanding may be to substantially lessen competition or 17 tend to create a monopoly in any line of commerce; or 18 (5) Being an employee, officer or agent of any foreign 19 government, or an employee, officer or agent of a corporation 20 or other entity which does business with or seeks to do 21 business with any foreign government or instrumentality 22 thereof; enforce, attempt to enforce, agree to or take action 23 to forward the aims of, any discriminatory practice by the 24 foreign government which is based on race, color, creed, 25 national ancestry or sex or on ethnic or religious grounds, 26 where such conduct, course of conduct, or agreement takes 27 place in whole or in part within the United States and 28 affects business in this State. 29 (Source: P.A. 82-219.) 30 (740 ILCS 10/5) (from Ch. 38, par. 60-5) 31 Sec. 5. No provisions of this Act shall be construed to 32 make illegal: 33 (1) the activities of any labor organization or of -42- LRB9206184JSpc 1 individual members thereof which are directed solely to labor 2 objectives which are legitimate under the laws of either the 3 State of Illinois or the United States; 4 (2) the activities of any agricultural or horticultural 5 cooperative organization, whether incorporated or 6 unincorporated, or of individual members thereof, which are 7 directed solely to objectives of such cooperative 8 organizations which are legitimate under the laws of either 9 the State of Illinois or the United States; 10 (3) the activities of any public utility, as defined in 11 Section 3-105 of the Public Utilities Act to the extent that 12 such activities are subject to a clearly articulated and 13 affirmatively expressed State policy to replace competition 14 with regulation, where the conduct to be exempted is actively 15 supervised by the State itself; 16 (4) (blank)The activities of a telecommunications17carrier, as defined in Section 13-202 of the Public Utilities18Act, to the extent those activities relate to the provision19of noncompetitive telecommunications services under the20Public Utilities Act and are subject to the jurisdiction of21the Illinois Commerce Commission or to the activities of22telephone mutual concerns referred to in Section 13-202 of23the Public Utilities Act to the extent those activities24relate to the provision and maintenance of telephone service25to owners and customers; 26 (5) the activities (including, but not limited to, the 27 making of or participating in joint underwriting or joint 28 reinsurance arrangement) of any insurer, insurance agent, 29 insurance broker, independent insurance adjuster or rating 30 organization to the extent that such activities are subject 31 to regulation by the Director of Insurance of this State 32 under, or are permitted or are authorized by, the Insurance 33 Code or any other law of this State; 34 (6) the religious and charitable activities of any -43- LRB9206184JSpc 1 not-for-profit corporation, trust or organization established 2 exclusively for religious or charitable purposes, or for both 3 purposes; 4 (7) the activities of any not-for-profit corporation 5 organized to provide telephone service on a mutual or 6 co-operative basis or electrification on a co-operative 7 basis, to the extent such activities relate to the marketing 8 and distribution of telephone or electrical service to owners 9 and customers; 10 (8) the activities engaged in by securities dealers who 11 are (i) licensed by the State of Illinois or (ii) members of 12 the National Association of Securities Dealers or (iii) 13 members of any National Securities Exchange registered with 14 the Securities and Exchange Commission under the Securities 15 Exchange Act of 1934, as amended, in the course of their 16 business of offering, selling, buying and selling, or 17 otherwise trading in or underwriting securities, as agent, 18 broker, or principal, and activities of any National 19 Securities Exchange so registered, including the 20 establishment of commission rates and schedules of charges; 21 (9) the activities of any board of trade designated as a 22 "contract market" by the Secretary of Agriculture of the 23 United States pursuant to Section 5 of the Commodity Exchange 24 Act, as amended; 25 (10) the activities of any motor carrier, rail carrier, 26 or common carrier by pipeline, as defined in the Common 27 Carrier by Pipeline Law of the Public Utilities Act, to the 28 extent that such activities are permitted or authorized by 29 the Act or are subject to regulation by the Illinois Commerce 30 Commission; 31 (11) the activities of any state or national bank to the 32 extent that such activities are regulated or supervised by 33 officers of the state or federal government under the banking 34 laws of this State or the United States; -44- LRB9206184JSpc 1 (12) the activities of any state or federal savings and 2 loan association to the extent that such activities are 3 regulated or supervised by officers of the state or federal 4 government under the savings and loan laws of this State or 5 the United States; 6 (13) the activities of any bona fide not-for-profit 7 association, society or board, of attorneys, practitioners of 8 medicine, architects, engineers, land surveyors or real 9 estate brokers licensed and regulated by an agency of the 10 State of Illinois, in recommending schedules of suggested 11 fees, rates or commissions for use solely as guidelines in 12 determining charges for professional and technical services; 13 (14) Conduct involving trade or commerce (other than 14 import trade or import commerce) with foreign nations unless: 15 (a) such conduct has a direct, substantial, and 16 reasonably foreseeable effect: 17 (i) on trade or commerce which is not trade or 18 commerce with foreign nations, or on import trade or 19 import commerce with foreign nations; or 20 (ii) on export trade or export commerce with 21 foreign nations of a person engaged in such trade or 22 commerce in the United States; and 23 (b) such effect gives rise to a claim under the 24 provisions of this Act, other than this subsection (14). 25 (c) If this Act applies to conduct referred to in 26 this subsection (14) only because of the provisions of 27 paragraph (a)(ii), then this Act shall apply to such 28 conduct only for injury to export business in the United 29 States which affects this State; or 30 (15) the activities of a unit of local government or 31 school district and the activities of the employees, agents 32 and officers of a unit of local government or school 33 district. 34 (Source: P.A. 90-185, eff. 7-23-97; 90-561, eff. 12-16-97.) -45- LRB9206184JSpc 1 Section 99. Effective date. This Act takes effect upon 2 becoming law. -46- LRB9206184JSpc 1 INDEX 2 Statutes amended in order of appearance 3 220 ILCS 5/13-100 from Ch. 111 2/3, par. 13-100 4 220 ILCS 5/13-101 from Ch. 111 2/3, par. 13-101 5 220 ILCS 5/13-202.5 new 6 220 ILCS 5/13-216 new 7 220 ILCS 5/13-217 new 8 220 ILCS 5/13-501 from Ch. 111 2/3, par. 13-501 9 220 ILCS 5/13-502 from Ch. 111 2/3, par. 13-502 10 220 ILCS 5/13-506.1 from Ch. 111 2/3, par. 13-506.1 11 220 ILCS 5/13-508 from Ch. 111 2/3, par. 13-508 12 220 ILCS 5/13-514 13 220 ILCS 5/13-515 14 220 ILCS 5/13-516 15 220 ILCS 5/13-517 new 16 220 ILCS 5/13-801 from Ch. 111 2/3, par. 13-801 17 220 ILCS 5/13-902 18 220 ILCS 5/13-1001 new 19 220 ILCS 5/13-1002 new 20 220 ILCS 5/13-505.3 rep. 21 220 ILCS 5/13-802 rep. 22 220 ILCS 5/13-803 rep. 23 740 ILCS 10/3 from Ch. 38, par. 60-3 24 740 ILCS 10/5 from Ch. 38, par. 60-5