State of Illinois
92nd General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ Senate Amendment 001 ]
[ Senate Amendment 002 ]


92_SB0088

 
                                               LRB9202600SMdv

 1        AN ACT concerning telecommunications taxes and fees.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Municipal Telecommunications Tax Act.

 6        Section 5. Legislative intent. The General  Assembly  has
 7    authorized  the  corporate authorities of any municipality to
 8    impose various fees and taxes on the privilege of originating
 9    or receiving telecommunications, and on retailers engaged  in
10    the  business of transmitting such telecommunications, all of
11    which are remitted by such retailers directly to the imposing
12    municipality. To simplify the imposition  and  collection  of
13    municipal telecommunications taxes and to reduce complication
14    and  burden,  the  General  Assembly is replacing the various
15    municipal telecommunications fees and taxes with a single tax
16    by  replacing  the  municipal  telecommunications  tax,   the
17    municipal  tax on the occupation or privilege of transmitting
18    messages, and the municipal  infrastructure  maintenance  fee
19    with this Municipal Telecommunications Tax Act which provides
20    for  a  single  municipally  imposed  telecommunications  tax
21    which,  for  municipalities  with  populations  of  less than
22    500,000, will be collected by the Department, but which,  for
23    municipalities  of  500,000  or  more,  will  continue  to be
24    collected by such municipalities.  So as  not  to  impose  an
25    unnecessary burden on the  municipalities that currently have
26    in place one or more of the taxes or fees being replaced, the
27    General  Assembly  will  not  require  such municipalities to
28    adopt   a    new    ordinance    imposing    the    Municipal
29    Telecommunications  Tax.   Instead, the General Assembly will
30    replace the  existing  taxes  and  fees  with  the  Municipal
31    Telecommunications  Tax,  which  may  be  imposed  at  a rate
 
                            -2-                LRB9202600SMdv
 1    initially  calculated  to  generate  approximately  the  same
 2    amount of revenue for the  municipality  as  that  which  was
 3    generated  by the replaced taxes and fees; provided, however,
 4    that the Municipal  Telecommunications  Tax  shall  be  valid
 5    whether  or  not  it in fact generates approximately the same
 6    amount of revenue as was generated by the previously  imposed
 7    taxes  and  fees. Municipalities that determine to impose the
 8    Municipal Telecommunications Tax at an authorized rate  other
 9    than  that established in Section 15, and municipalities that
10    do not currently have in place one or more of  the  taxes  or
11    fees   being   replaced,   may   also   adopt  the  Municipal
12    Telecommunications  Tax  by  passage  of  an   ordinance   in
13    accordance with Section 20.

14        Section  7.   Definitions.   For  purposes  of  the taxes
15    authorized by this Act:
16        "Amount paid" means the amount charged to the  taxpayer's
17    service address in such municipality regardless of where such
18    amount is billed or paid.
19        "Department" means the Illinois Department of Revenue.
20        "Gross  charge"  means  the  amount  paid  for the act or
21    privilege of originating or receiving  telecommunications  in
22    such municipality and for all services and equipment provided
23    in  connection  therewith  by  a  retailer,  valued  in money
24    whether paid in money or otherwise, including cash,  credits,
25    services  and  property of every kind or nature, and shall be
26    determined without any deduction on account of  the  cost  of
27    such  telecommunications,  the  cost  of  the materials used,
28    labor or service costs or any other expense  whatsoever.   In
29    case credit is extended, the amount thereof shall be included
30    only  as  and  when  paid.  "Gross  charges" for private line
31    service shall include charges imposed at each  channel  point
32    within  this  State,  charges for the channel mileage between
33    each channel point within this State, and  charges  for  that
 
                            -3-                LRB9202600SMdv
 1    portion  of  the  interstate  inter-office  channel  provided
 2    within Illinois. However, "gross charge" shall not include:
 3             (1)  any amounts added to a purchaser's bill because
 4        of a charge made pursuant to: (i) the tax imposed by this
 5        Act,  (ii)  the  tax  imposed  by  the Telecommunications
 6        Excise Tax Act, (iii) the tax imposed by Section 4251  of
 7        the  Internal  Revenue  Code, (iv) 911 surcharges, or (v)
 8        charges  added  to  customers'  bills  pursuant  to   the
 9        provisions  of  Section  9-221  or  9-222  of  the Public
10        Utilities Act, as amended, or any similar  charges  added
11        to  customers'  bills by retailers who are not subject to
12        rate regulation by the Illinois Commerce  Commission  for
13        the  purpose  of recovering any of the tax liabilities or
14        other amounts specified in those provisions of the Public
15        Utilities Act;
16             (2)  charges for a  sent  collect  telecommunication
17        received outside of such municipality;
18             (3)  charges for leased time on equipment or charges
19        for  the  storage  of  data  or information or subsequent
20        retrieval  or  the  processing  of  data  or  information
21        intended to change its form or content.   Such  equipment
22        includes,  but is not limited to, the use of calculators,
23        computers,   data   processing   equipment,    tabulating
24        equipment  or  accounting equipment and also includes the
25        usage of computers under a time-sharing agreement;
26             (4)  charges for customer equipment, including  such
27        equipment  that  is leased or rented by the customer from
28        any source, wherein such charges  are  disaggregated  and
29        separately identified from other charges;
30             (5)  charges  to  business  enterprises certified as
31        exempt under Section 9-222.1 of the Public Utilities  Act
32        to  the extent of such exemption and during the period of
33        time  specified  by  the  Department  of   Commerce   and
34        Community Affairs;
 
                            -4-                LRB9202600SMdv
 1             (6)  charges for telecommunications and all services
 2        and  equipment provided in connection therewith between a
 3        parent corporation and its wholly owned  subsidiaries  or
 4        between  wholly  owned  subsidiaries when the tax imposed
 5        under this Act has already been paid to  a  retailer  and
 6        only  to  the  extent that the charges between the parent
 7        corporation and  wholly  owned  subsidiaries  or  between
 8        wholly  owned  subsidiaries  represent expense allocation
 9        between the corporations and not the generation of profit
10        for the corporation rendering such service;
11             (7)  bad debts ("bad debt" means any  portion  of  a
12        debt  that is related to a sale at retail for which gross
13        charges are not otherwise deductible or  excludable  that
14        has  become  worthless  or  uncollectible,  as determined
15        under applicable federal income  tax  standards;  if  the
16        portion  of  the  debt  deemed  to be bad is subsequently
17        paid, the retailer shall report and pay the tax  on  that
18        portion  during the reporting period in which the payment
19        is made);
20             (8)  charges   paid   by    inserting    coins    in
21        coin-operated telecommunication devices; or
22             (9)  amounts  paid  by  telecommunications retailers
23        under the Telecommunications  Infrastructure  Maintenance
24        Fee Act.
25        "Interstate       telecommunications"      means      all
26    telecommunications that either originate or terminate outside
27    this State.
28        "Intrastate      telecommunications"      means       all
29    telecommunications  that  originate and terminate within this
30    State.
31        "Person"  means  any  natural  individual,  firm,  trust,
32    estate, partnership, association, joint stock company,  joint
33    venture,   corporation,   limited  liability  company,  or  a
34    receiver,  trustee,   guardian,   or   other   representative
 
                            -5-                LRB9202600SMdv
 1    appointed  by  order  of  any  court,  the  Federal and State
 2    governments, including State universities created by statute,
 3    or any city, town, county, or other political subdivision  of
 4    this State.
 5        "Purchase  at  retail" means the acquisition, consumption
 6    or use of telecommunications through a sale at retail.
 7        "Retailer" means and includes every person engaged in the
 8    business of  making  sales  at  retail  as  defined  in  this
 9    Section.   The   Department  may,  in  its  discretion,  upon
10    application, authorize  the  collection  of  the  tax  hereby
11    imposed  by  any retailer not maintaining a place of business
12    within  this  State,  who,  to  the   satisfaction   of   the
13    Department,  furnishes adequate security to insure collection
14    and payment of the  tax.   Such  retailer  shall  be  issued,
15    without  charge,  a  permit  to  collect  such  tax.  When so
16    authorized, it shall be the duty of such retailer to  collect
17    the  tax upon all of the gross charges for telecommunications
18    in this State in the same manner  and  subject  to  the  same
19    requirements  as  a  retailer maintaining a place of business
20    within  this  State.   The  permit  may  be  revoked  by  the
21    Department at its discretion.
22        "Retailer maintaining a place of business in this State",
23    or any like term, means and includes any retailer  having  or
24    maintaining  within  this State, directly or by a subsidiary,
25    an office, distribution facilities, transmission  facilities,
26    sales  office,  warehouse  or other place of business, or any
27    agent or other representative  operating  within  this  State
28    under  the  authority  of  the  retailer  or  its subsidiary,
29    irrespective of whether such place of business  or  agent  or
30    other   representative   is   located   here  permanently  or
31    temporarily,  or  whether  such  retailer  or  subsidiary  is
32    licensed to do business in this State.
33        "Sale at retail" means  the  transmitting,  supplying  or
34    furnishing   of   telecommunications  and  all  services  and
 
                            -6-                LRB9202600SMdv
 1    equipment   provided   in   connection   therewith   for    a
 2    consideration,  to  persons  other than the Federal and State
 3    governments, and State universities created  by  statute  and
 4    other  than between a parent corporation and its wholly owned
 5    subsidiaries or between wholly owned subsidiaries  for  their
 6    use or consumption and not for resale.
 7        "Service     address"     means     the    location    of
 8    telecommunications equipment  from  which  telecommunications
 9    services   are  originated  or  at  which  telecommunications
10    services are received by a taxpayer.  In the event  this  may
11    not  be  a defined location, as in the case of mobile phones,
12    paging systems, maritime systems, air-to-ground  systems  and
13    the  like,  "service  address"  shall  mean the location of a
14    taxpayer's primary use of the telecommunications equipment as
15    defined by telephone number, authorization code, or  location
16    in Illinois where bills are sent.
17        "Taxpayer" means a person who individually or through his
18    or her agents, employees, or permittees engages in the act or
19    privilege of originating or receiving telecommunications in a
20    municipality  and who incurs a tax liability as authorized by
21    this Act.
22        "Telecommunications",  in   addition   to   the   meaning
23    ordinarily  and  popularly  ascribed to it, includes, without
24    limitation, messages or information transmitted  through  use
25    of local, toll, and wide area telephone service, private line
26    services,     channel     services,    telegraph    services,
27    teletypewriter, computer exchange services,  cellular  mobile
28    telecommunications   service,   specialized   mobile   radio,
29    stationary  two-way  radio, paging service, or any other form
30    of mobile and portable one-way or two-way communications,  or
31    any   other   transmission  of  messages  or  information  by
32    electronic or similar means, between or among points by wire,
33    cable, fiber optics, laser, microwave, radio,  satellite,  or
34    similar  facilities.   As  used  in  this Act, "private line"
 
                            -7-                LRB9202600SMdv
 1    means a dedicated non-traffic sensitive service for a  single
 2    customer, that entitles the customer to exclusive or priority
 3    use  of  a  communications channel or group of channels, from
 4    one  or  more  specified  locations  to  one  or  more  other
 5    specified locations.  The definition of  "telecommunications"
 6    shall  not  include  value  added  services in which computer
 7    processing applications are used to act on the form, content,
 8    code, and protocol of the information for purposes other than
 9    transmission.    "Telecommunications"   shall   not   include
10    purchases  of  telecommunications  by  a   telecommunications
11    service  provider  for use as a component part of the service
12    provided by such provider to the ultimate retail consumer who
13    originates   or    terminates    the    taxable    end-to-end
14    communications.   Carrier  access  charges,  right  of access
15    charges, charges for use of inter-company facilities, and all
16    telecommunications resold in  the  subsequent  provision  of,
17    used  as  a  component  of,  or  integrated  into, end-to-end
18    telecommunications service shall be non-taxable as sales  for
19    resale.   Prepaid telephone calling arrangements shall not be
20    considered "telecommunications" subject to  the  tax  imposed
21    under  this  Act.   For  purposes  of  this Section, "prepaid
22    telephone calling arrangements" means that term as defined in
23    Section 2-27 of the Retailers' Occupations Tax Act.

24        Section 10.  Authority.  The corporate authorities of any
25    municipality in  this  State  may  tax  any  or  all  of  the
26    following acts or privileges:
27        (a)  The   act   or  privilege  of  originating  in  such
28    municipality or receiving  in  such  municipality  intrastate
29    telecommunications  by  a  person.  However,  such tax is not
30    imposed on such act or privilege to the extent  such  act  or
31    privilege may not, under the Constitution and statutes of the
32    United   States,   be   made   the  subject  of  taxation  by
33    municipalities in this State.
 
                            -8-                LRB9202600SMdv
 1        (b)  The  act  or  privilege  of  originating   in   such
 2    municipality  or  receiving  in  such municipality interstate
 3    telecommunications by a person. To prevent actual multi-state
 4    taxation of the act or privilege that is subject to  taxation
 5    under  this  subsection,  any  taxpayer,  upon proof that the
 6    taxpayer has paid a tax in another state on such event, shall
 7    be allowed a credit against any tax enacted  pursuant  to  or
 8    authorized  by  this  Section  to the extent of the amount of
 9    such tax properly due and paid in such other state which  was
10    not previously allowed as a credit against any other state or
11    local tax in this State.  However, such tax is not imposed on
12    the  act or privilege to the extent such act or privilege may
13    not, under  the  Constitution  and  statutes  of  the  United
14    States,  be made the subject of taxation by municipalities in
15    this State.

16        Section 15.  Rates.
17        (a)  For municipalities with a population  of  less  than
18    500,000,  the  tax authorized by this Act may be imposed at a
19    rate  not  to   exceed   6%   of   the   gross   charge   for
20    telecommunications  purchased at retail.  If imposed, the tax
21    must be in increments of 0.25%.
22        (b)  For municipalities with a population of  500,000  or
23    more, the tax authorized by this Act may be imposed at a rate
24    not  to  exceed 7% of the gross charge for telecommunications
25    purchased  at  retail.   If  imposed,  the  tax  must  be  in
26    increments of 0.25%.

27        Section 20. Imposition.
28        (a)  On and after July 1, 2002, for  municipalities  with
29    populations  of less than 500,000, the tax authorized by this
30    Act shall be imposed (except as provided  in  Section  25  of
31    this  Act),  amended,  or repealed by an ordinance adopted by
32    the municipality, which  ordinance  shall  be  filed  by  the
 
                            -9-                LRB9202600SMdv
 1    municipality with the Department pursuant to the rules of the
 2    Department.
 3             (1)  Any  ordinance adopted by a municipality with a
 4        population of less than 500,000 which attempts to impose,
 5        amend or repeal the tax authorized by this Act  shall  be
 6        of  no  force  and  effect  until  properly filed with an
 7        appropriate form with the Department.
 8             (2)  Any certified copy of an ordinance  filed  with
 9        the  Department  prior to any October 1 or  April 1 shall
10        be effective with respect to bills issued on or after the
11        following January 1 or July 1, respectively.
12        (b)  On and after July 1, 2002, for  municipalities  with
13    populations  of  500,000  or more, the tax authorized by this
14    Act  shall  be  imposed,  amended,  or  repealed,   and   any
15    authorized   exemptions   granted,  by  the  adoption  of  an
16    ordinance.

17        Section 25.  Existing telecommunications taxes and fees.
18        (a)  Between January 1, 2002 and February  1,  2002,  the
19    Department  shall publish a list of the municipalities with a
20    population of less than 500,000 which had any taxes  or  fees
21    authorized  by  item  (1)  of  Section 8-11-2 of the Illinois
22    Municipal Code, Section 8-11-17  of  the  Illinois  Municipal
23    Code,  or Section 20 of the Telecommunications Infrastructure
24    Maintenance Fee Act that were in effect for  billing  periods
25    that  include  January  1,  2002,  whether  or not bills were
26    actually issued on January 1, 2002.  Such list shall  include
27    the  name  of each such municipality, the rates at which such
28    taxes or fees were imposed, and the rate of the new Municipal
29    Telecommunications Tax, as calculated pursuant to Section  30
30    of this Act.
31        (b)  In compiling the list described in this Section, the
32    Department   shall   collect   information   from  retailers,
33    municipalities, the Illinois Commerce Commission,  and  other
 
                            -10-               LRB9202600SMdv
 1    sources deemed by the Department to be reliable.
 2        (c)  Any  municipality  appearing  on  the list published
 3    pursuant to this Section shall not be required to  adopt  and
 4    file  an  ordinance  implementing  the tax authorized by this
 5    Act. The list shall be conclusive evidence of the  imposition
 6    of  the  tax  authorized by this Act at the rate appearing on
 7    such list.  A municipality may alter such tax only by  filing
 8    an  ordinance  with  the Department pursuant to Section 20 of
 9    this Act, before April 1, 2002.

10        Section   30.    Calculation   of   rates   for   certain
11    municipalities.
12        (a)  For each  municipality  on  the  list  described  in
13    Section  25  of  this  Act,  the  rate  of the taxes and fees
14    imposed by a municipality pursuant to  item  (1)  of  Section
15    8-11-2 of the Illinois Municipal Code, Section 8-11-17 of the
16    Illinois    Municipal    Code,   or   Section   20   of   the
17    Telecommunications Infrastructure Maintenance Fee  Act  which
18    appears  on  the  list  shall  be  used  by the Department in
19    calculating the rate of the Municipal Telecommunications  Tax
20    for such municipality.
21        (b)  The rate of the Municipal Telecommunications Tax for
22    municipalities on the list shall be equal to the sum of:
23             (1)  The  rate  equal  to 70% of the rate imposed by
24        such municipality pursuant to item (1) of Section  8-11-2
25        of  the  Illinois  Municipal Code, rounded to the nearest
26        even 0.25% increment; plus
27             (2)  The rate imposed by such municipality  pursuant
28        to  Section  8-11-17  of  the  Illinois  Municipal  Code,
29        rounded to the nearest even 0.25% increment; plus
30             (3)  The  rate imposed by such municipality pursuant
31        to  Section  20  of  the   Telecommunications   Municipal
32        Infrastructure Maintenance Fee Act.
33        (c)  The   Department  shall  enter  each  of  the  rates
 
                            -11-               LRB9202600SMdv
 1    described in subdivisions (b)(1), (b)(2), and (b)(3) of  this
 2    Section   30,   as   well   as  the  rate  of  the  Municipal
 3    Telecommunications Tax, on the list provided for  in  Section
 4    25 of this Act.

 5        Section 35.  Rebates and exemptions. Any municipality may
 6    implement the following rebates and exemptions:
 7             (1)  A  municipality that imposes the tax authorized
 8        by this Act and whose territory includes part of  another
 9        unit  of  local  government or a school district, may, by
10        separate ordinance, rebate some or all of the  amount  of
11        such  tax  paid  by the other unit of local government or
12        school district.  Any such rebate shall be  paid  by  the
13        municipality   directly   to  the  other  unit  of  local
14        government or school district qualifying for  the  rebate
15        as  determined  by  the  municipality's  ordinance, which
16        shall not be filed with the Department.
17             (2)  A municipality that imposes the tax  authorized
18        by  this  Act  may, by separate ordinance, rebate some or
19        all of the amount of such tax to persons 65 years of  age
20        or  older.   Any  tax  related  to  such  rebate shall be
21        rebated  from  the  municipality  directly   to   persons
22        qualified   for   the   rebate   as   determined  by  the
23        municipality's ordinance, which shall not be  filed  with
24        the Department.
25             (3)  A  municipality with a population of 500,000 or
26        more that imposes the tax authorized by this Act may,  by
27        separate  ordinance,  exempt  from  the tax authorized by
28        this    Act,    charges     for     inbound     toll-free
29        telecommunications   service  commonly  known  as  "800",
30        "877", or "888" or for a similar service, to  the  extent
31        such  municipality  has passed an ordinance providing for
32        this exemption.
 
                            -12-               LRB9202600SMdv
 1        Section 40.  Collection.
 2        (a)  For municipalities with  populations  of  less  than
 3    500,000,  the  tax  authorized by this Act shall be collected
 4    from the taxpayer  by  a  retailer  maintaining  a  place  of
 5    business  in  this State within such municipalities and shall
 6    be remitted by such retailer  to  the  Department.   Any  tax
 7    required to be collected pursuant to or as authorized by this
 8    Act  and any such tax collected by such retailer and required
 9    to be remitted to the Department shall constitute a debt owed
10    by the retailer to the State. Retailers shall collect the tax
11    from the taxpayer by adding the tax to the gross  charge  for
12    the   act   or   privilege   of   originating   or  receiving
13    telecommunications  when  sold  for  use,   in   the   manner
14    prescribed by the Department.  The tax authorized by this Act
15    shall constitute a debt of the taxpayer to the retailer until
16    paid,  and,  if  unpaid,  is  recoverable  at law in the same
17    manner as the original charge for such sale  at  retail.   If
18    the retailer fails to collect the tax from the taxpayer, then
19    the taxpayer shall be required to pay the tax directly to the
20    Department in the manner provided by the Department.
21        (b)  For  municipalities  with  populations of 500,000 or
22    more, the tax authorized by this Act shall be collected  from
23    the taxpayer by a retailer making or effectuating the sale at
24    retail  and  shall  be  remitted  by  such  retailer  to such
25    municipality.  Any tax required to be collected  pursuant  to
26    an  ordinance  authorized  by  this  Act  and  any  such  tax
27    collected  by  a retailer shall constitute a debt owed by the
28    retailer to such  municipality.  Retailers shall collect  the
29    tax  from  the taxpayer by adding the tax to the gross charge
30    for  the  act  or  privilege  of  originating  or   receiving
31    telecommunications   when   sold   for  use,  in  the  manner
32    prescribed by such municipality.  The tax authorized by  this
33    Act  shall  constitute a debt of the taxpayer to the retailer
34    who made or effectuated the sale at retail until paid and, if
 
                            -13-               LRB9202600SMdv
 1    unpaid, is recoverable at law  in  the  same  manner  as  the
 2    original  charge  for  the  sale  at retail.  If the retailer
 3    fails to collect the tax from the taxpayer, then the taxpayer
 4    shall  be  required  to  pay  the  tax   directly   to   such
 5    municipality  in  the  manner  provided by such municipality.
 6    The municipality imposing  the  tax  shall  provide  for  its
 7    administration and enforcement.
 8        (c)  Retailers  filing  tax  returns pursuant to this Act
 9    shall,  at  the  time  of  filing  such  return,  pay  to   a
10    municipality  with  a population of 500,000 or more or to the
11    Department for all other municipalities, the  amount  of  the
12    tax  collected,  less  a commission of 1% which is allowed to
13    reimburse the retailer for the expenses incurred  in  keeping
14    records,  billing the customer, preparing and filing returns,
15    remitting the tax and supplying data  to  a  municipality  or
16    Department  upon  request.  No commission may be claimed by a
17    retailer for taxes not timely remitted.
18        (d)  Whenever possible, the tax authorized  by  this  Act
19    shall,  when collected, be stated as a distinct item separate
20    and apart from the gross charge for telecommunications.

21        Section 45.  Resellers.
22        (a)  If   a   person   who   originates    or    receives
23    telecommunications   claims   to   be   a  reseller  of  such
24    telecommunications, such person shall apply to a municipality
25    with a population of 500,000 or more or to the Department for
26    all  other  municipalities,  for  a  resale   number.    Such
27    applicant  shall  state  facts which will show a municipality
28    with a population of 500,000 or more or  the  Department  for
29    all  other  municipalities,  why such applicant is not liable
30    for tax authorized by this Act on any of such  purchases  and
31    shall  furnish  such additional information as a municipality
32    with a population of 500,000 or more or  the  Department  for
33    all other municipalities, may reasonably require.
 
                            -14-               LRB9202600SMdv
 1        (b)  Upon  approval  of  the  application, a municipality
 2    with a population of 500,000 or more or  the  Department  for
 3    all other municipalities, shall assign a resale number to the
 4    applicant  and shall certify such number to the applicant.  A
 5    municipality with a population of  500,000  or  more  or  the
 6    Department  for  all  other  municipalities,  may  cancel any
 7    number which is obtained through misrepresentation, or  which
 8    is  used  to  send or receive such telecommunication tax-free
 9    when such actions in fact are not for  resale,  or  which  no
10    longer  applies  because  of the person's having discontinued
11    the making of resales.
12        (c)  Except as provided hereinabove in this Section,  the
13    act    or    privilege    of    originating    or   receiving
14    telecommunications in this State shall not be  made  tax-free
15    on  the  ground  of being a sale for resale unless the person
16    has an active  resale  number  from  a  municipality  with  a
17    population of 500,000 or more or the Department for all other
18    municipalities,  and furnishes that number to the retailer in
19    connection with certifying to the retailer that any  sale  to
20    such  person  is  non-taxable  because  of  being  a sale for
21    resale.

22        Section 50.  Returns to the Department.
23        (a)  Commencing  on  August  1,   2002,   each   retailer
24    maintaining   a  place  of  business  in  this  State  within
25    municipalities with populations of less than 500,000,  shall,
26    on or before the 30th day of each month, except for the month
27    of  February,  on  or before the 28th day of February, make a
28    return to the Department for the  preceding  calendar  month,
29    stating:
30             (1)  Its name;
31             (2)  The address of its principal place of business,
32        and  the  address  of the principal place of business (if
33        that is a different address) from which it engages in the
 
                            -15-               LRB9202600SMdv
 1        business of transmitting telecommunications;
 2             (3)  Total amount of  gross  charges  billed  by  it
 3        during   the   preceding  calendar  month  for  providing
 4        telecommunications during the calendar month;
 5             (4)  Total  amount  received  by   it   during   the
 6        preceding calendar month on credit extended;
 7             (5)  Deductions allowed by law;
 8             (6)  Gross charges that were billed by it during the
 9        preceding  calendar month and upon the basis of which the
10        tax is imposed;
11             (7)  Amount of tax (computed upon Item 6);
12             (8)  The  municipalities  to  which  the  Department
13        shall remit the taxes and the amount of such remittances;
14             (9)  Such  other  reasonable  information   as   the
15        Department may require.
16        (b)  Any  retailer  required  to make payments under this
17    Section may make the payments by electronic  funds  transfer.
18    The  Department  shall  adopt rules necessary to effectuate a
19    program of electronic funds transfer. Any  retailer  who  has
20    average monthly tax billings due to the Department under this
21    Act  and  the  Telecommunications  Excise Tax Act that exceed
22    $1,000 shall make all payments by electronic  funds  transfer
23    as required by rules of the Department.
24        (c)  If  the  retailer's average monthly tax billings due
25    to the Department under this Act and  the  Telecommunications
26    Excise  Tax  Act  do  not  exceed  $1,000, the Department may
27    authorize  such  retailer's  returns  to  be   filed   on   a
28    quarter-annual  basis, with the return for January, February,
29    and March of a given year being due by  April  30th  of  that
30    year;  with  the  return  for April, May, and June of a given
31    year being due by July 30th of that year; with the return for
32    July, August, and September of a  given  year  being  due  by
33    October  30th  of that year; and with the return for October,
34    November, and December of a given year being due  by  January
 
                            -16-               LRB9202600SMdv
 1    30th of the following year.
 2        (d)  If  the  retailer  is  otherwise  required to file a
 3    monthly or quarterly return and  if  the  retailer's  average
 4    monthly tax billings due to the Department under this Act and
 5    the Telecommunications Excise Tax Act do not exceed $400, the
 6    Department  may  authorize such retailer's return to be filed
 7    on an annual basis, with the return for a  given  year  being
 8    due by January 30th of the following year.
 9        (e)  Each  retailer  whose  average monthly remittance to
10    the Department  under this  Act  and  the  Telecommunications
11    Excise  Tax  Act  was  $25,000  or  more during the preceding
12    calendar year, excluding the month of highest remittance  and
13    the month of lowest remittance in such calendar year, and who
14    is  not  operated  by  a unit of local government, shall make
15    estimated payments to the Department on or  before  the  7th,
16    15th,  22nd,  and  last day of the month during which the tax
17    remittance is owed to the Department in an  amount  not  less
18    than  the  lower of either 22.5% of the retailer's actual tax
19    collections for the month or 25% of the retailer's actual tax
20    collections for the same  calendar  month  of  the  preceding
21    year.   The  amount of such quarter-monthly payments shall be
22    credited against  the  final  remittance  of  the  retailer's
23    return  for  that month.  Any outstanding credit, approved by
24    the Department, arising from the  retailer's  overpayment  of
25    its  final  remittance for any month may be applied to reduce
26    the amount  of  any  subsequent  quarter-monthly  payment  or
27    credited  against  the  final  remittance  of  the retailer's
28    return for any  subsequent  month.   If  any  quarter-monthly
29    payment  is not paid at the time or in the amount required by
30    this Section, the retailer shall be liable  for  penalty  and
31    interest  on the difference between the minimum amount due as
32    a payment and the amount of such payment actually and  timely
33    paid,  except  insofar  as  the  retailer has previously made
34    payments for that month to the Department or received credits
 
                            -17-               LRB9202600SMdv
 1    in excess of the minimum payments previously due.
 2        (f)  Notwithstanding any other provision of this  Section
 3    containing  the  time within which a retailer may file his or
 4    her return, in the case of any retailer who ceases to  engage
 5    in  a  kind of business that makes him or her responsible for
 6    filing returns under this Section, the retailer shall file  a
 7    final  return under this Section with the Department not more
 8    than one month after discontinuing such business.
 9        (g)  In making such return, the retailer shall  determine
10    the  value  of any consideration other than money received by
11    it and such retailer shall include the value in  its  return.
12    Such determination shall be subject to review and revision by
13    the  Department  in  the  manner hereinafter provided for the
14    correction of returns.
15        (h)  Any retailer who has average  monthly  tax  billings
16    due    to   the   Department   under   this   Act   and   the
17    Telecommunications Excise Tax Act that  exceed  $1,000  shall
18    file  the return required by this Section by electronic means
19    as required by rules of the Department.
20        (i)  The retailer filing the return herein  provided  for
21    shall,  at  the  time  of  filing  the  return,  pay  to  the
22    Department  the  amounts  due  pursuant  to  this  Act.   The
23    Department shall immediately pay over to the State Treasurer,
24    ex officio, as trustee, 99.5% of all  taxes,  penalties,  and
25    interest  collected  hereunder for deposit into the Municipal
26    Telecommunications  Fund,  which  is  hereby  created.    The
27    remaining  0.5%  received  by the Department pursuant to this
28    Act  shall  be  deposited  into  the   Tax   Compliance   and
29    Administration  Fund  and  shall  be  used by the Department,
30    subject  to  appropriation,  to  cover  the  costs   of   the
31    Department. On or before the 25th day of each calendar month,
32    the  Department  shall prepare and certify to the Comptroller
33    the disbursement of stated sums of money to be paid to  named
34    municipalities from the Municipal Telecommunications Fund for
 
                            -18-               LRB9202600SMdv
 1    amounts collected during the second preceding calendar month.
 2    The   named  municipalities  shall  be  those  municipalities
 3    identified by a retailer in such retailer's return as  having
 4    imposed  the  tax authorized by the Act.  The amount of money
 5    to be paid to each municipality  shall  be  the  amount  (not
 6    including  credit  memoranda)  collected hereunder during the
 7    second preceding calendar month by the  Department,  plus  an
 8    amount  the  Department determines is necessary to offset any
 9    amounts that were erronenously paid  to  a  different  taxing
10    body,  and  not  including  an  amount equal to the amount of
11    refunds made during the second preceding  calendar  month  by
12    the  Department  on  behalf  of  such  municipality,  and not
13    including  any  amount  that  the  Department  determines  is
14    necessary to  offset  any  amount  that  were  payable  to  a
15    different  taxing  body  but  were  erroneously  paid  to the
16    municipality.   Within  10  days   after   receipt   by   the
17    Comptroller   of  the  disbursement  certification  from  the
18    Department, the Comptroller shall  cause  the  orders  to  be
19    drawn  for  the  respective  amounts  in  accordance with the
20    directions contained in the certification.   When  certifying
21    to  the Comptroller the amount of a monthly disbursement to a
22    municipality  under  this  Section,  the   Department   shall
23    increase  or  decrease  the  amount by an amount necessary to
24    offset any  misallocation  of  previous  disbursements.   The
25    offset  amount  shall  be  the  amount  erroneously disbursed
26    within the previous 6 months from the time a misallocation is
27    discovered.
28        (j)  For municipalities with  populations  of  less  than
29    500,000,  whenever  the  Department  determines that a refund
30    shall be made under this Section to  a  claimant  instead  of
31    issuing a credit memorandum, the Department  shall notify the
32    State  Comptroller, who shall cause the order to be drawn for
33    the  amount  specified  and  to  the  person  named  in   the
34    notification  from  the Department.  The refund shall be paid
 
                            -19-               LRB9202600SMdv
 1    by   the   State   Treasurer    out    of    the    Municipal
 2    Telecommunications Fund.

 3        Section  55.  Pledged revenues. If a municipality has, by
 4    contract, pledged or dedicated any or  all  of  the  revenues
 5    collected under any of its taxes imposed pursuant to item (1)
 6    of  Section  8-11-2  of  the Illinois Municipal Code, Section
 7    8-11-17 of the Illinois Municipal Code, or Section 20 of  the
 8    Telecommunications  Infrastructure  Maintenance  Fee  Act  as
 9    shown  on  the list described in Section 25 of this Act, then
10    the equivalent portion of revenues  collected  from  the  tax
11    authorized  by  this Act shall be deemed pledged or dedicated
12    in a manner substantially similar to the pledge of  the  then
13    existing taxes so as to prevent disruption of such contract.

14        Section 60.  Waiver of franchise fees.
15        (a)  Any  municipality shall be deemed to have waived its
16    right to receive all fees,  charges  and  other  compensation
17    that  might  accrue  to  the municipality after the effective
18    date of this Act, under any franchise agreement, license,  or
19    similar agreement, executed on or before January 1, 1998 with
20    telecommunications retailers if:
21             (1)  the  municipality imposes the tax authorized by
22        this Act at a rate exceeding 5%;
23             (2)  the  municipality  affirmatively  waives   such
24        fees; or
25             (3)  the   municipality  is  included  in  the  list
26        described in Section 25 of this Act as having a municipal
27        infrastructure maintenance fee in place.
28        (b)  This waiver shall be effective only during the  time
29    that   either  the  infrastructure  maintenance  fee  or  the
30    replacement tax authorized under this Act is subject to being
31    lawfully  imposed   on   the   telecommunications   retailer,
32    collected   by   the   Department,   and  paid  over  to  the
 
                            -20-               LRB9202600SMdv
 1    municipality.
 2        (c)  No portion of this Act shall be  construed  to  have
 3    repealed  or  amended  the  prohibition  on franchise fees or
 4    other   charges   set   forth   in   Section   30   of    the
 5    Telecommunications Infrastructure Maintenance Fee Act.

 6        Section  65.   Incorporation  by  reference. On and after
 7    January 1, 2002, for municipalities with populations of  less
 8    than  500,000,  all  of the provisions of Sections 7, 10, 11,
 9    12, 13, 14, 15, 16, 17, 18, and 19 of the  Telecommunications
10    Excise  Tax  Act,  Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
11    5i, 5j, 6, 6a, 6b, and 6c of the  Retailers'  Occupation  Tax
12    Act,  and  all  the  provisions  of  the  Uniform Penalty and
13    Interest Act, which are not inconsistent with this Act, shall
14    apply, as far as practicable, to the subject matter  of  this
15    Act  to  the  same extent as if such provisions were included
16    herein.  References in  such  incorporated  Sections  of  the
17    Retailers' Occupation Tax Act to retailers, to sellers, or to
18    persons  engaged in the business of selling tangible personal
19    property mean retailers, as defined in this Act,  or  persons
20    engaged  in  the act or privilege of originating or receiving
21    telecommunications.  References in such incorporated Sections
22    of  the  Retailers'  Occupation  Tax  Act  to  purchasers  of
23    tangible    personal    property    mean    purchasers     of
24    telecommunications  as  defined  in  this Act.  References in
25    such incorporated Sections of the Retailers'  Occupation  Tax
26    Act  to  sales  of tangible personal property mean the act or
27    privilege of originating or receiving  telecommunications  as
28    defined in this Act.

29        Section 905.  The State Revenue Sharing Act is amended by
30    changing Section 12 as follows:

31        (30 ILCS 115/12) (from Ch. 85, par. 616)
 
                            -21-               LRB9202600SMdv
 1        Sec.  12.   Personal Property Tax Replacement Fund. There
 2    is hereby created the Personal Property Tax Replacement Fund,
 3    a special fund in the State Treasury into which shall be paid
 4    all revenue realized:
 5        (a)  all amounts realized from  the  additional  personal
 6    property  tax  replacement  income tax imposed by subsections
 7    (c) and (d) of Section 201 of the Illinois  Income  Tax  Act,
 8    except for those amounts deposited into the Income Tax Refund
 9    Fund  pursuant  to  subsection  (c)  of  Section  901  of the
10    Illinois Income Tax Act; and
11        (b)  all amounts realized from  the  additional  personal
12    property   replacement  invested  capital  taxes  imposed  by
13    Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas
14    Revenue Tax  Act,   Section  2a.1  of  the  Public  Utilities
15    Revenue  Act,  and  Section  3  of the Water Company Invested
16    Capital Tax Act, and amounts payable  to  the  Department  of
17    Revenue under the Telecommunications Municipal Infrastructure
18    Maintenance Fee Act.
19        As  soon  as  may  be  after  the  end of each month, the
20    Department of Revenue shall certify to the Treasurer and  the
21    Comptroller the amount of all refunds paid out of the General
22    Revenue  Fund  through  the  preceding  month  on  account of
23    overpayment of liability on  taxes  paid  into  the  Personal
24    Property   Tax   Replacement   Fund.  Upon  receipt  of  such
25    certification,  the  Treasurer  and  the  Comptroller   shall
26    transfer  the  amount so certified from the Personal Property
27    Tax Replacement Fund into the General Revenue Fund.
28        The payments of revenue into the  Personal  Property  Tax
29    Replacement  Fund  shall be used exclusively for distribution
30    to taxing districts as provided in this Section,  payment  of
31    the  expenses  of  the  Department  of  Revenue  incurred  in
32    administering  the collection and distribution of monies paid
33    into the Personal Property Tax Replacement Fund and transfers
34    due to refunds to taxpayers for overpayment of liability  for
 
                            -22-               LRB9202600SMdv
 1    taxes paid into the Personal Property Tax Replacement Fund.
 2        As  soon  as  may  be  after  the  effective date of this
 3    amendatory Act of  1980,  the  Department  of  Revenue  shall
 4    certify  to  the  Treasurer  the  amount  of  net replacement
 5    revenue paid into the General  Revenue  Fund  prior  to  that
 6    effective  date  from  the  additional tax imposed by Section
 7    2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue
 8    Tax Act; Section 2a.1 of the Public  Utilities  Revenue  Act;
 9    Section  3  of  the  Water  Company Invested Capital Tax Act;
10    amounts collected by the  Department  of  Revenue  under  the
11    Telecommunications  Municipal  Infrastructure Maintenance Fee
12    Act; and the additional  personal  property  tax  replacement
13    income tax imposed by the Illinois Income Tax Act, as amended
14    by  Public  Act  81-1st  Special  Session-1.  Net replacement
15    revenue shall be defined as the total amount  paid  into  and
16    remaining  in  the  General Revenue Fund as a result of those
17    Acts minus the amount  outstanding  and  obligated  from  the
18    General  Revenue  Fund in state vouchers or warrants prior to
19    the effective date of this amendatory Act of 1980 as  refunds
20    to taxpayers for overpayment of liability under those Acts.
21        All interest earned by monies accumulated in the Personal
22    Property  Tax  Replacement  Fund  shall  be deposited in such
23    Fund. All amounts allocated  pursuant  to  this  Section  are
24    appropriated on a continuing basis.
25        Prior  to  December 31, 1980, as soon as may be after the
26    end  of  each  quarter  beginning  with  the  quarter  ending
27    December 31, 1979, and on and after  December  31,  1980,  as
28    soon as may be after January 1, March 1, April 1, May 1, July
29    1,  August  1,  October  1  and  December 1 of each year, the
30    Department of Revenue shall allocate to each taxing  district
31    as  defined  in  Section  1-150  of the Property Tax Code, in
32    accordance with the  provisions  of  paragraph  (2)  of  this
33    Section  the  portion  of  the  funds  held  in  the Personal
34    Property  Tax  Replacement  Fund  which  is  required  to  be
 
                            -23-               LRB9202600SMdv
 1    distributed, as provided in paragraph (1), for each  quarter.
 2    Provided,  however,  under  no circumstances shall any taxing
 3    district during each of the first two years  of  distribution
 4    of  the  taxes  imposed  by  this  amendatory  Act of 1979 be
 5    entitled to an annual allocation which is less than the funds
 6    such  taxing  district  collected  from  the  1978   personal
 7    property  tax.  Provided  further that under no circumstances
 8    shall  any  taxing  district  during  the   third   year   of
 9    distribution  of  the taxes imposed by this amendatory Act of
10    1979 receive less than 60% of the funds such taxing  district
11    collected  from  the 1978 personal property tax. In the event
12    that the total of the allocations made as above provided  for
13    all  taxing districts, during either of such 3 years, exceeds
14    the amount available for distribution the allocation of  each
15    taxing  district  shall be proportionately reduced. Except as
16    provided in Section 13 of this Act, the Department shall then
17    certify, pursuant to appropriation, such allocations  to  the
18    State  Comptroller  who  shall pay over to the several taxing
19    districts the respective amounts allocated to them.
20        Any township which receives an allocation based in  whole
21    or  in  part  upon  personal  property  taxes which it levied
22    pursuant to Section 6-507 or 6-512 of  the  Illinois  Highway
23    Code  and  which was previously required to be paid over to a
24    municipality shall immediately pay over to that  municipality
25    a  proportionate  share  of the personal property replacement
26    funds which such township receives.
27        Any municipality or township, other than  a  municipality
28    with  a  population  in  excess of 500,000, which receives an
29    allocation based in whole or in  part  on  personal  property
30    taxes  which  it levied pursuant to Sections 3-1, 3-4 and 3-6
31    of the Illinois Local Library Act and  which  was  previously
32    required   to   be  paid  over  to  a  public  library  shall
33    immediately pay over to that library a proportionate share of
34    the  personal  property  tax  replacement  funds  which  such
 
                            -24-               LRB9202600SMdv
 1    municipality or township receives; provided that  if  such  a
 2    public library has converted to a library organized under The
 3    Illinois  Public  Library District Act, regardless of whether
 4    such conversion has occurred on, after or before  January  1,
 5    1988, such proportionate share shall be immediately paid over
 6    to  the  library  district  which  maintains and operates the
 7    library. However, any library that  has  converted  prior  to
 8    January  1,  1988,  and  which  hitherto has not received the
 9    personal property tax replacement funds, shall  receive  such
10    funds commencing on January 1, 1988.
11        Any  township which receives an allocation based in whole
12    or in  part  on  personal  property  taxes  which  it  levied
13    pursuant to Section 1c of the Public Graveyards Act and which
14    taxes were previously required to be paid over to or used for
15    such public cemetery or cemeteries shall immediately pay over
16    to   or   use  for  such  public  cemetery  or  cemeteries  a
17    proportionate share of the personal property tax  replacement
18    funds which the township receives.
19        Any taxing district which receives an allocation based in
20    whole or in part upon personal property taxes which it levied
21    for  another  governmental  body  or  school district in Cook
22    County in 1976 or for another  governmental  body  or  school
23    district  in  the  remainder  of  the  State  in  1977  shall
24    immediately  pay  over  to  that  governmental body or school
25    district the amount of personal  property  replacement  funds
26    which such governmental body or school district would receive
27    directly  under  the  provisions  of  paragraph  (2)  of this
28    Section, had it levied its own taxes.
29        (1)  The portion of the Personal Property Tax Replacement
30    Fund required to be distributed as of the time allocation  is
31    required  to  be  made  shall be the amount available in such
32    Fund as of the time allocation is required to be made.
33        The amount available for distribution shall be the  total
34    amount   in  the  fund  at  such  time  minus  the  necessary
 
                            -25-               LRB9202600SMdv
 1    administrative expenses as limited by the  appropriation  and
 2    the  amount  determined by:  (a) $2.8 million for fiscal year
 3    1981; (b) for fiscal year 1982, .54% of the funds distributed
 4    from the fund during  the  preceding  fiscal  year;  (c)  for
 5    fiscal  year 1983 through fiscal year 1988, .54% of the funds
 6    distributed from the fund during the  preceding  fiscal  year
 7    less  .02% of such fund for fiscal year 1983 and less .02% of
 8    such funds for each fiscal year thereafter, or (d) for fiscal
 9    year 1989  and  beyond  no  more  than  105%  of  the  actual
10    administrative  expenses  of  the  prior  fiscal  year.  Such
11    portion  of  the  fund shall be determined after the transfer
12    into the General Revenue Fund due to refunds,  if  any,  paid
13    from  the  General Revenue Fund during the preceding quarter.
14    If at any time, for any reason, there is insufficient  amount
15    in  the Personal Property Tax Replacement Fund for payment of
16    costs of administration or for transfers due  to  refunds  at
17    the   end  of  any  particular  month,  the  amount  of  such
18    insufficiency shall be  carried  over  for  the  purposes  of
19    transfers  into  the General Revenue Fund and for purposes of
20    costs of administration to the  following  month  or  months.
21    Net  replacement  revenue  held,  and defined above, shall be
22    transferred by the Treasurer and Comptroller to the  Personal
23    Property   Tax  Replacement  Fund  within  10  days  of  such
24    certification.
25        (2)  Each quarterly allocation shall first be apportioned
26    in the following manner: 51.65% for taxing districts in  Cook
27    County  and  48.35%  for taxing districts in the remainder of
28    the State.
29        The Personal Property Replacement Ratio  of  each  taxing
30    district outside Cook County shall be the ratio which the Tax
31    Base of that taxing district bears to the Downstate Tax Base.
32    The  Tax  Base of each taxing district outside of Cook County
33    is the personal property  tax  collections  for  that  taxing
34    district  for  the  1977 tax year.  The Downstate Tax Base is
 
                            -26-               LRB9202600SMdv
 1    the  personal  property  tax  collections  for   all   taxing
 2    districts  in  the  State outside of Cook County for the 1977
 3    tax year. The Department of Revenue shall have  authority  to
 4    review  for  accuracy  and completeness the personal property
 5    tax collections for each taxing district outside Cook  County
 6    for the 1977 tax year.
 7        The  Personal  Property  Replacement  Ratio  of each Cook
 8    County taxing district shall be the ratio which the Tax  Base
 9    of  that  taxing  district bears to the Cook County Tax Base.
10    The Tax Base of each  Cook  County  taxing  district  is  the
11    personal  property  tax  collections for that taxing district
12    for the 1976 tax year.  The  Cook  County  Tax  Base  is  the
13    personal property tax collections for all taxing districts in
14    Cook  County for the 1976 tax year. The Department of Revenue
15    shall have authority to review for accuracy and  completeness
16    the   personal  property  tax  collections  for  each  taxing
17    district within Cook County for the 1976 tax year.
18        For all purposes of this Section 12, amounts  paid  to  a
19    taxing  district for such tax years as may be applicable by a
20    foreign corporation under the provisions of Section 7-202  of
21    the  Public  Utilities Act, as amended, shall be deemed to be
22    personal property taxes collected by such taxing district for
23    such tax years as  may  be  applicable.  The  Director  shall
24    determine  from the Illinois Commerce Commission, for any tax
25    year as may be applicable, the amounts so paid  by  any  such
26    foreign  corporation  to  any  and  all taxing districts. The
27    Illinois Commerce Commission shall furnish  such  information
28    to  the  Director.  For  all purposes of this Section 12, the
29    Director shall deem such amounts  to  be  collected  personal
30    property   taxes   of  each  such  taxing  district  for  the
31    applicable tax year or years.
32        Taxing districts located both in Cook County and  in  one
33    or  more  other  counties  shall  receive  both a Cook County
34    allocation and a Downstate allocation determined in the  same
 
                            -27-               LRB9202600SMdv
 1    way as all other taxing districts.
 2        If  any  taxing  district  in  existence  on July 1, 1979
 3    ceases to exist, or discontinues its operations, its Tax Base
 4    shall thereafter be deemed to be zero.  If the powers, duties
 5    and obligations  of  the  discontinued  taxing  district  are
 6    assumed  by  another  taxing  district,  the  Tax Base of the
 7    discontinued taxing district shall be added to the  Tax  Base
 8    of  the  taxing  district  assuming  such  powers, duties and
 9    obligations.
10        If two or more taxing districts in existence on  July  1,
11    1979,  or a successor or successors thereto shall consolidate
12    into one taxing district, the Tax Base of  such  consolidated
13    taxing  district shall be the sum of the Tax Bases of each of
14    the taxing districts which have consolidated.
15        If a single taxing district in existence on July 1, 1979,
16    or a successor or successors thereto shall  be  divided  into
17    two  or  more  separate taxing districts, the tax base of the
18    taxing district so divided shall be allocated to each of  the
19    resulting  taxing districts in proportion to the then current
20    equalized assessed value of each resulting taxing district.
21        If a portion of the territory of  a  taxing  district  is
22    disconnected  and  annexed  to another taxing district of the
23    same type, the Tax Base of the  taxing  district  from  which
24    disconnection  was made shall be reduced in proportion to the
25    then current equalized assessed  value  of  the  disconnected
26    territory   as  compared  with  the  then  current  equalized
27    assessed value within the  entire  territory  of  the  taxing
28    district  prior  to  disconnection,  and  the  amount of such
29    reduction shall be added  to  the  Tax  Base  of  the  taxing
30    district to which annexation is made.
31        If  a community college district is created after July 1,
32    1979, beginning on the effective date of this amendatory  Act
33    of  1995,  its  Tax  Base  shall  be  3.5%  of the sum of the
34    personal property tax collected for the 1977 tax year  within
 
                            -28-               LRB9202600SMdv
 1    the territorial jurisdiction of the district.
 2        The  amounts  allocated  and  paid  to  taxing  districts
 3    pursuant  to  the  provisions  of this amendatory Act of 1979
 4    shall be deemed to be substitute revenues  for  the  revenues
 5    derived  from  taxes imposed on personal property pursuant to
 6    the provisions of the "Revenue Act of 1939" or  "An  Act  for
 7    the  assessment  and taxation of private car line companies",
 8    approved July 22, 1943, as amended, or  Section  414  of  the
 9    Illinois Insurance Code, prior to the abolition of such taxes
10    and  shall  be  used  for  the  same purposes as the revenues
11    derived from ad valorem taxes on real estate.
12        Monies received by any taxing districts from the Personal
13    Property Tax Replacement Fund shall be first  applied  toward
14    payment of the proportionate amount of debt service which was
15    previously  levied  and  collected  from  extensions  against
16    personal  property  on  bonds  outstanding as of December 31,
17    1978 and next applied toward  payment  of  the  proportionate
18    share  of the pension or retirement obligations of the taxing
19    district which were  previously  levied  and  collected  from
20    extensions   against   personal   property.   For  each  such
21    outstanding bond issue, the County Clerk shall determine  the
22    percentage  of  the  debt  service  which  was collected from
23    extensions against real estate in  the  taxing  district  for
24    1978 taxes payable in 1979, as related to the total amount of
25    such levies and collections from extensions against both real
26    and personal property.  For 1979 and subsequent years' taxes,
27    the County Clerk shall levy and extend taxes against the real
28    estate  of  each  taxing  district  which will yield the said
29    percentage  or  percentages  of  the  debt  service  on  such
30    outstanding bonds. The balance of  the  amount  necessary  to
31    fully  pay  such  debt  service  shall constitute a first and
32    prior lien upon the  monies  received  by  each  such  taxing
33    district  through  the Personal Property Tax Replacement Fund
34    and shall be first applied or set aside for such purpose.  In
 
                            -29-               LRB9202600SMdv
 1    counties  having  fewer  than  3,000,000   inhabitants,   the
 2    amendments  to  this paragraph as made by this amendatory Act
 3    of  1980  shall  be  first  applicable to  1980  taxes to  be
 4    collected in 1981.
 5    (Source: P.A. 89-327, eff. 1-1-96; 90-154, eff. 1-1-98.)

 6        Section  910.   The  Telecommunications Excise Tax Act is
 7    amended by changing Sections 2, 6, and 15 as follows:

 8        (35 ILCS 630/2) (from Ch. 120, par. 2002)
 9        Sec. 2.  As used in  this  Article,  unless  the  context
10    clearly requires otherwise:
11        (a)  "Gross  charge" means the amount paid for the act or
12    privilege of originating or receiving  telecommunications  in
13    this  State  and  for  all services and equipment provided in
14    connection therewith by a retailer, valued in  money  whether
15    paid in money or otherwise, including cash, credits, services
16    and property of every kind or nature, and shall be determined
17    without  any  deduction  on  account  of  the  cost  of  such
18    telecommunications,  the  cost  of  materials  used, labor or
19    service costs or  any  other  expense  whatsoever.   In  case
20    credit is extended, the amount thereof shall be included only
21    as  and  when  paid. "Gross charges" for private line service
22    shall include charges imposed at each  channel  point  within
23    this  State,  charges  for  the  channel mileage between each
24    channel point within this State, and charges for that portion
25    of  the  interstate  inter-office  channel  provided   within
26    Illinois. However, "gross charges" shall not include:
27             (1)  any amounts added to a purchaser's bill because
28        of  a charge made pursuant to (i) the tax imposed by this
29        Article; (ii) charges added to customers' bills  pursuant
30        to  the  provisions  of  Sections  9-221  or 9-222 of the
31        Public Utilities Act, as amended, or any similar  charges
32        added  to  customers'  bills  by  retailers  who  are not
 
                            -30-               LRB9202600SMdv
 1        subject to  rate  regulation  by  the  Illinois  Commerce
 2        Commission  for  the purpose of recovering any of the tax
 3        liabilities or other amounts specified in such provisions
 4        of such Act; or (iii) the tax imposed by Section 4251  of
 5        the  Internal  Revenue  Code; (iv) 911 surcharges; or (v)
 6        the tax imposed by the Municipal  Telecommunications  Tax
 7        Act;
 8             (2)  charges  for  a  sent collect telecommunication
 9        received outside of the State;
10             (3)  charges for leased time on equipment or charges
11        for the storage of data  or  information  for  subsequent
12        retrieval  or  the  processing  of  data  or  information
13        intended  to  change its form or content.  Such equipment
14        includes, but is not limited to, the use of  calculators,
15        computers,    data   processing   equipment,   tabulating
16        equipment or accounting equipment and also  includes  the
17        usage of computers under a time-sharing agreement;
18             (4)  charges  for customer equipment, including such
19        equipment that is leased or rented by the  customer  from
20        any  source,  wherein  such charges are disaggregated and
21        separately identified from other charges;
22             (5)  charges to business enterprises certified under
23        Section 9-222.1 of the Public Utilities Act, as  amended,
24        to  the extent of such exemption and during the period of
25        time  specified  by  the  Department  of   Commerce   and
26        Community Affairs;
27             (6)  charges for telecommunications and all services
28        and  equipment provided in connection therewith between a
29        parent corporation and its wholly owned  subsidiaries  or
30        between  wholly  owned  subsidiaries when the tax imposed
31        under this Article has already been paid  to  a  retailer
32        and  only  to  the  extent  that  the charges between the
33        parent  corporation  and  wholly  owned  subsidiaries  or
34        between  wholly  owned  subsidiaries  represent   expense
 
                            -31-               LRB9202600SMdv
 1        allocation   between   the   corporations   and  not  the
 2        generation of profit for the corporation  rendering  such
 3        service;
 4             (7)  bad debts. Bad debt means any portion of a debt
 5        that  is  related  to  a  sale  at retail for which gross
 6        charges are not otherwise deductible or  excludable  that
 7        has  become  worthless  or  uncollectable,  as determined
 8        under applicable federal income tax  standards.   If  the
 9        portion  of  the  debt  deemed  to be bad is subsequently
10        paid, the retailer shall report and pay the tax  on  that
11        portion  during the reporting period in which the payment
12        is made;
13             (8)  charges   paid   by    inserting    coins    in
14        coin-operated telecommunication devices;
15             (9)  amounts  paid  by  telecommunications retailers
16        under  the  Telecommunications  Municipal  Infrastructure
17        Maintenance Fee Act.
18        (b)  "Amount  paid"  means  the  amount  charged  to  the
19    taxpayer's service address in this State regardless of  where
20    such amount is billed or paid.
21        (c)  "Telecommunications",  in  addition  to  the meaning
22    ordinarily and popularly ascribed to  it,  includes,  without
23    limitation,  messages  or information transmitted through use
24    of local, toll and wide area telephone service; private  line
25    services;     channel     services;    telegraph    services;
26    teletypewriter; computer exchange services;  cellular  mobile
27    telecommunications   service;   specialized   mobile   radio;
28    stationary  two  way radio; paging service; or any other form
29    of mobile and portable one-way or two-way communications;  or
30    any   other   transmission  of  messages  or  information  by
31    electronic or similar means, between or among points by wire,
32    cable, fiber-optics, laser, microwave,  radio,  satellite  or
33    similar facilities. As used in this Act, "private line" means
34    a  dedicated  non-traffic  sensitive  service  for  a  single
 
                            -32-               LRB9202600SMdv
 1    customer, that entitles the customer to exclusive or priority
 2    use  of  a  communications channel or group of channels, from
 3    one  or  more  specified  locations  to  one  or  more  other
 4    specified locations. The definition  of  "telecommunications"
 5    shall  not  include  value  added  services in which computer
 6    processing applications are used to act on the form, content,
 7    code and protocol of the information for purposes other  than
 8    transmission.    "Telecommunications"   shall   not   include
 9    purchases  of  telecommunications  by  a   telecommunications
10    service  provider  for use as a component part of the service
11    provided  by  him  to  the  ultimate  retail   consumer   who
12    originates    or    terminates    the    taxable   end-to-end
13    communications.  Carrier  access  charges,  right  of  access
14    charges, charges for use of inter-company facilities, and all
15    telecommunications resold in  the  subsequent  provision  of,
16    used  as  a  component  of,  or  integrated  into  end-to-end
17    telecommunications  service shall be non-taxable as sales for
18    resale.
19        (d)  "Interstate    telecommunications"     means     all
20    telecommunications that either originate or terminate outside
21    this State.
22        (e)  "Intrastate     telecommunications"     means    all
23    telecommunications that originate and terminate  within  this
24    State.
25        (f)  "Department"  means the Department of Revenue of the
26    State of Illinois.
27        (g)  "Director" means the Director  of  Revenue  for  the
28    Department of Revenue of the State of Illinois.
29        (h)  "Taxpayer"   means  a  person  who  individually  or
30    through his agents, employees or permittees  engages  in  the
31    act    or    privilege    of    originating    or   receiving
32    telecommunications  in  this  State  and  who  incurs  a  tax
33    liability under this Article.
34        (i)  "Person" means any natural individual, firm,  trust,
 
                            -33-               LRB9202600SMdv
 1    estate,  partnership, association, joint stock company, joint
 2    venture,  corporation,  limited  liability  company,   or   a
 3    receiver, trustee, guardian or other representative appointed
 4    by  order  of  any  court, the Federal and State governments,
 5    including State universities created by statute or any  city,
 6    town, county or other political subdivision of this State.
 7        (j)  "Purchase   at   retail"   means   the  acquisition,
 8    consumption or use of telecommunication  through  a  sale  at
 9    retail.
10        (k)  "Sale  at  retail" means the transmitting, supplying
11    or furnishing of  telecommunications  and  all  services  and
12    equipment    provided   in   connection   therewith   for   a
13    consideration to persons other than  the  Federal  and  State
14    governments,  and  State  universities created by statute and
15    other than between a parent corporation and its wholly  owned
16    subsidiaries  or  between wholly owned subsidiaries for their
17    use or consumption and not for resale.
18        (l)  "Retailer" means and includes every  person  engaged
19    in  the business of making sales at retail as defined in this
20    Article.   The  Department  may,  in  its  discretion,   upon
21    application,  authorize  the  collection  of  the  tax hereby
22    imposed by any retailer not maintaining a place  of  business
23    within   this   State,   who,  to  the  satisfaction  of  the
24    Department, furnishes adequate security to insure  collection
25    and  payment  of  the  tax.   Such  retailer shall be issued,
26    without charge, a  permit  to  collect  such  tax.   When  so
27    authorized,  it shall be the duty of such retailer to collect
28    the tax upon all of the gross charges for  telecommunications
29    in  this  State  in  the  same manner and subject to the same
30    requirements as a retailer maintaining a  place  of  business
31    within  this  State.   The  permit  may  be  revoked  by  the
32    Department at its discretion.
33        (m)  "Retailer  maintaining  a  place of business in this
34    State", or any like term, means  and  includes  any  retailer
 
                            -34-               LRB9202600SMdv
 1    having  or  maintaining  within  this State, directly or by a
 2    subsidiary, an office, distribution facilities,  transmission
 3    facilities,   sales  office,  warehouse  or  other  place  of
 4    business, or any  agent  or  other  representative  operating
 5    within  this State under the authority of the retailer or its
 6    subsidiary, irrespective of whether such place of business or
 7    agent or other representative is located here permanently  or
 8    temporarily,  or  whether  such  retailer  or  subsidiary  is
 9    licensed to do business in this State.
10        (n)  "Service    address"    means    the   location   of
11    telecommunications     equipment     from      which      the
12    telecommunications   services  are  originated  or  at  which
13    telecommunications services are received by a  taxpayer.   In
14    the  event this may not be a defined location, as in the case
15    of  mobile  phones,   paging   systems,   maritime   systems,
16    air-to-ground  systems  and  the  like, service address shall
17    mean  the  location  of  a  taxpayer's  primary  use  of  the
18    telecommunications equipment as defined by telephone  number,
19    authorization  code,  or location in Illinois where bills are
20    sent.
21        (o)  "Prepaid telephone calling  arrangements"  mean  the
22    right to exclusively purchase telephone or telecommunications
23    services  that  must  be  paid  for in advance and enable the
24    origination  of  one  or  more  intrastate,  interstate,   or
25    international  telephone  calls  or  other telecommunications
26    using an access  number,  an  authorization  code,  or  both,
27    whether  manually or electronically dialed, for which payment
28    to a retailer must be made in advance, provided that,  unless
29    recharged,  no  further service is provided once that prepaid
30    amount of  service  has  been  consumed.   Prepaid  telephone
31    calling  arrangements  include  the  recharge  of  a  prepaid
32    calling   arrangement.   For  purposes  of  this  subsection,
33    "recharge" means the purchase of additional prepaid telephone
34    or telecommunications services whether or not  the  purchaser
 
                            -35-               LRB9202600SMdv
 1    acquires  a  different  access  number or authorization code.
 2    "Prepaid telephone calling arrangement" does not  include  an
 3    arrangement  whereby  a customer purchases a payment card and
 4    pursuant to which the service provider reflects the amount of
 5    such purchase as a  credit  on  an  invoice  issued  to  that
 6    customer under an existing subscription plan.
 7    (Source: P.A. 90-562, eff. 12-16-97; 91-870, eff. 6-22-00.)

 8        (35 ILCS 630/6) (from Ch. 120, par. 2006)
 9        Sec.  6.  Except as provided hereinafter in this Section,
10    on or before the 30th 15th day of each month, except for  the
11    month  of  February,  on  or before the 28th day of February,
12    each retailer maintaining a place of business in  this  State
13    shall  make  a  return  to  the  Department for the preceding
14    calendar month, stating:
15             1.  His name;
16             2.  The address of his principal place of  business,
17        and  the  address  of the principal place of business (if
18        that is a different address) from which he engages in the
19        business of transmitting telecommunications;
20             3.  Total amount of  gross  charges  billed  by  him
21        during   the   preceding  calendar  month  for  providing
22        telecommunications during such calendar month;
23             4.  Total  amount  received  by   him   during   the
24        preceding calendar month on credit extended;
25             5.  Deductions allowed by law;
26             6.  Gross  charges  which  were billed by him during
27        the preceding calendar month and upon the basis of  which
28        the tax is imposed;
29             7.  Amount of tax (computed upon Item 6);
30             8.  Such   other   reasonable   information  as  the
31        Department may require.
32        Any taxpayer required to make payments under this Section
33    may make the payments  by  electronic  funds  transfer.   The
 
                            -36-               LRB9202600SMdv
 1    Department  shall  adopt  rules  necessary  to  effectuate  a
 2    program  of  electronic  funds transfer. Any taxpayer who has
 3    average monthly tax billings due to the Department under this
 4    Act and the Municipal Telecommunications Tax Act that  exceed
 5    $1,000  shall  make all payments by electronic funds transfer
 6    as required by rules of the Department  and  shall  file  the
 7    return  required  by  this  Section  by  electronic  means as
 8    required by rules of the Department.
 9        If the retailer's average monthly tax billings due to the
10    Department    under    this    Act    and    the    Municipal
11    Telecommunications Tax Act do not  exceed  $1,000  $200,  the
12    Department may authorize his returns to be filed on a quarter
13    annual basis, with the return for January, February and March
14    of  a  given year being due by April 30 15 of such year; with
15    the return for April, May and June of a given year being  due
16    by  July 30 15 of such year; with the return for July, August
17    and September of a given year being due by October 30  15  of
18    such  year;  and  with  the  return  of October, November and
19    December of a given year being due by January 30  15  of  the
20    following year.
21        If  the  retailer is otherwise required to file a monthly
22    or quarterly return and if the retailer's average monthly tax
23    billings due  to  the  Department  under  this  Act  and  the
24    Municipal  Telecommunications Tax Act do not exceed $400 $50,
25    the Department may authorize his or her return to be filed on
26    an annual basis, with the return for a given year  being  due
27    by January 30th 15th of the following year.
28        Notwithstanding  any  other  provision  of  this  Article
29    containing  the  time  within  which  a retailer may file his
30    return, in the case of any retailer who ceases to engage in a
31    kind of business  which  makes  him  responsible  for  filing
32    returns  under this Article, such retailer shall file a final
33    return under this Article with the Department not  more  than
34    one month after discontinuing such business.
 
                            -37-               LRB9202600SMdv
 1        In  making  such return, the retailer shall determine the
 2    value of any consideration other than money received  by  him
 3    and  he  shall  include  such  value  in  his  return.   Such
 4    determination  shall be subject to review and revision by the
 5    Department  in  the  manner  hereinafter  provided  for   the
 6    correction of returns.
 7        Each  retailer  whose  average  monthly  liability to the
 8    Department   under   this   Article   and    the    Municipal
 9    Telecommunications Tax Act was $25,000 $10,000 or more during
10    the  preceding  calendar year, excluding the month of highest
11    liability and the month of lowest liability in such  calendar
12    year,  and who is not operated by a unit of local government,
13    shall make estimated payments to the Department on or  before
14    the  7th,  15th,  22nd and last day of the month during which
15    tax collection liability to the Department is incurred in  an
16    amount  not  less  than  the  lower  of  either  22.5% of the
17    retailer's actual tax collections for the month or 25% of the
18    retailer's actual tax collections for the same calendar month
19    of the preceding year.  The amount of  such  quarter  monthly
20    payments shall be credited against the final liability of the
21    retailer's  return  for  that month.  Any outstanding credit,
22    approved by  the  Department,  arising  from  the  retailer's
23    overpayment  of  its  final  liability  for  any month may be
24    applied to  reduce  the  amount  of  any  subsequent  quarter
25    monthly  payment  or  credited against the final liability of
26    the retailer's return  for  any  subsequent  month.   If  any
27    quarter  monthly  payment  is  not paid at the time or in the
28    amount required by this Section, the retailer shall be liable
29    for penalty  and  interest  on  the  difference  between  the
30    minimum  amount  due  as  a  payment  and  the amount of such
31    payment actually and  timely  paid,  except  insofar  as  the
32    retailer  has  previously made payments for that month to the
33    Department in excess of the minimum payments previously due.
34        If the Director finds that the information  required  for
 
                            -38-               LRB9202600SMdv
 1    the  making  of  an  accurate  return  cannot  reasonably  be
 2    compiled  by a retailer within 15 days after the close of the
 3    calendar month for which a return is to be made, he may grant
 4    an extension of time for the filing  of  such  return  for  a
 5    period  of  not  to exceed 31 calendar days.  The granting of
 6    such an extension may be conditioned upon the deposit by  the
 7    retailer  with  the  Department  of  an  amount  of money not
 8    exceeding the amount estimated by the Director to be due with
 9    the return so extended.  All  such  deposits,  including  any
10    heretofore  made  with  the  Department,  shall  be  credited
11    against  the  retailer's  liabilities under this Article.  If
12    any such deposit exceeds the retailer's present and  probable
13    future  liabilities  under this Article, the Department shall
14    issue to the retailer  a  credit  memorandum,  which  may  be
15    assigned  by  the  retailer  to a similar retailer under this
16    Article, in accordance with reasonable rules and  regulations
17    to be prescribed by the Department.
18        The retailer making the return herein provided for shall,
19    at  the time of making such return, pay to the Department the
20    amount of tax herein imposed, less a commission of  1%  which
21    is  allowed  to  reimburse  the  retailer  for  the  expenses
22    incurred  in keeping records, billing the customer, preparing
23    and filing returns, remitting the tax, and supplying data  to
24    the Department upon request.  No commission may be claimed by
25    a  retailer  for  taxes not timely remitted. On and after the
26    effective date of this Article of  1985,  $1,000,000  of  the
27    moneys received by the Department of Revenue pursuant to this
28    Article  shall be paid each month into the Common School Fund
29    and the remainder into the General Revenue Fund. On and after
30    February 1, 1998, however, of  the  moneys  received  by  the
31    Department  of  Revenue  pursuant  to  the  additional  taxes
32    imposed  by  this  amendatory  Act  of 1997 one-half shall be
33    deposited into the School Infrastructure  Fund  and  one-half
34    shall  be deposited into the Common School Fund. On and after
 
                            -39-               LRB9202600SMdv
 1    the effective date of this amendatory Act of the 91st General
 2    Assembly, if in any fiscal  year  the  total  of  the  moneys
 3    deposited  into the School Infrastructure Fund under this Act
 4    is less than the total of the moneys deposited into that Fund
 5    from the additional taxes imposed by Public Act 90-548 during
 6    fiscal year 1999, then, as soon as possible after  the  close
 7    of  the  fiscal year, the Comptroller shall order transferred
 8    and the Treasurer shall transfer  from  the  General  Revenue
 9    Fund to the School Infrastructure Fund an amount equal to the
10    difference  between  the  fiscal  year total deposits and the
11    total amount deposited into the Fund in fiscal year 1999.
12    (Source: P.A. 90-16,  eff.  6-16-97;  90-548,  eff.  12-4-97;
13    91-541, eff. 8-13-99; 91-870, 6-22-00.)

14        (35 ILCS 630/15) (from Ch. 120, par. 2015)
15        Sec.   15.  Confidential  information.   All  information
16    received by the Department  from  returns  filed  under  this
17    Article,  or  from  any  investigations  conducted under this
18    Article, shall be confidential, except for official purposes,
19    and any person who  divulges  any  such  information  in  any
20    manner,  except in accordance with a proper judicial order or
21    as otherwise provided by law, shall be guilty of  a  Class  B
22    misdemeanor.
23        Provided,  that  nothing  contained in this Article shall
24    prevent the Director from publishing or making  available  to
25    the  public the names and addresses of retailers or taxpayers
26    filing returns under this  Article,  or  from  publishing  or
27    making   available   reasonable   statistics  concerning  the
28    operation of the tax wherein  the  contents  of  returns  are
29    grouped  into  aggregates  in such a way that the information
30    contained in any individual return shall not be disclosed.
31        And provided, that  nothing  contained  in  this  Article
32    shall  prevent  the  Director  from  making  available to the
33    United States Government  or  the  government  of  any  other
 
                            -40-               LRB9202600SMdv
 1    state,  or  any  officer  or  agency thereof, for exclusively
 2    official purposes, information received by the Department  in
 3    the   administration   of   this   Article,   if  such  other
 4    governmental  agency  agrees   to   divulge   requested   tax
 5    information to the Department.
 6        The  furnishing  upon  request of the Auditor General, or
 7    his authorized agents, for official use, of returns filed and
 8    information related thereto under this Article is  deemed  to
 9    be an official purpose within the meaning of this Section.
10        The furnishing of financial information to a municipality
11    that has imposed a tax under the Municipal Telecommunications
12    Tax  Act,  upon request of the chief executive thereof, is an
13    official purpose within the meaning of this Section, provided
14    that the municipality agrees in writing to  the  requirements
15    of this Section.  Information so provided shall be subject to
16    all  confidentiality provisions of this Section.  The written
17    agreement  shall  provide  for  reciprocity,  limitations  on
18    access,   disclosure,   and   procedures    for    requesting
19    information.
20        The  Director  shall make available for public inspection
21    in the Department's principal office and for publication,  at
22    cost,  administrative decisions issued on or after January 1,
23    1995. These decisions are to be made available in a manner so
24    that the following taxpayer information is not disclosed:
25             (1)  The  names,   addresses,   and   identification
26        numbers of the taxpayer, related entities, and employees.
27             (2)  At  the  sole discretion of the Director, trade
28        secrets or other confidential information  identified  as
29        such by the taxpayer, no later than 30 days after receipt
30        of  an  administrative  decision,  by  such  means as the
31        Department shall provide by rule.
32        The Director shall determine the  appropriate  extent  of
33    the  deletions  allowed  in  paragraph  (2). In the event the
34    taxpayer does not submit deletions, the Director  shall  make
 
                            -41-               LRB9202600SMdv
 1    only the deletions specified in paragraph (1).
 2        The  Director  shall make available for public inspection
 3    and publication an administrative decision  within  180  days
 4    after  the  issuance of the administrative decision. The term
 5    "administrative decision" has the same meaning as defined  in
 6    Section  3-101 of Article III of the Code of Civil Procedure.
 7    Costs collected under this Section shall be paid into the Tax
 8    Compliance and Administration Fund.
 9        Nothing contained in this Act shall prevent the  Director
10    from  divulging  information  to  any  person  pursuant  to a
11    request or authorization  made  by  the  taxpayer  or  by  an
12    authorized representative of the taxpayer.
13    (Source: P.A. 90-491, eff. 1-1-98.)

14        Section    915.     The    Telecommunications   Municipal
15    Infrastructure Maintenance Fee Act  is  amended  by  changing
16    Sections 1, 5, 10, 15, 25, 27, 27.35, and 30 as follows:

17        (35 ILCS 635/1)
18        Sec.  1.   Short  title.   This  Act  may be cited as the
19    Telecommunications Municipal Infrastructure  Maintenance  Fee
20    Act.
21    (Source: P.A. 90-154, eff. 1-1-98.)

22        (35 ILCS 635/5)
23        Sec. 5.  Legislative intent.
24        (a)  The  General  Assembly  imposed  a  tax  on invested
25    capital  of  utilities  to  partially  replace  the  personal
26    property tax that was abolished by the Illinois  Constitution
27    of  1970.   Since  that  tax  was imposed, telecommunications
28    retailers  have  evolved  from   utility   status   into   an
29    increasingly competitive industry serving the public.
30        (b)  This Act is intended to abolish the invested capital
31    tax on telecommunications retailers (that is, persons engaged
 
                            -42-               LRB9202600SMdv
 1    in  the  business  of  transmitting  messages and acting as a
 2    retailer of telecommunications as defined in Section 2 of the
 3    Telecommunications     Excise     Tax     Act).      Cellular
 4    telecommunications retailers have already been excluded  from
 5    application   of   the   invested   capital  tax  by  earlier
 6    legislative action.
 7        (c)  This Act  is  also  intended  to  abolish  municipal
 8    franchise  fees with respect to telecommunications retailers,
 9    create a uniform system for the collection  and  distribution
10    of  fees  associated  with the privilege of use of the public
11    right of way for telecommunications activity, and to  provide
12    municipalities with a new source of revenue to compensate for
13    the  loss  of  municipal franchise fees.  It is the intent of
14    the  General  Assembly  that  the   rate   of   a   municipal
15    infrastructure  maintenance  fee  permitted under this Act is
16    subject only to the limits prescribed in Section 20 and  need
17    not  relate  to  use of the public rights-of-way or the costs
18    associated with maintaining and regulating  the  use  of  the
19    public  rights-of-way.   It is also the intent of the General
20    Assembly  that  proceeds  of  the  municipal   infrastructure
21    maintenance fee may be used for any lawful corporate purpose,
22    and  any  proceeds  collected  prior to the effective date of
23    these changes to Subsection (c) may  also  be  used  for  any
24    lawful purpose.  These changes to this Subsection (c) made by
25    this   amendatory  Act  of  the  91st  General  Assembly  are
26    declarative of existing law.
27        (d)  On and after July 1,  2002,  the  enactment  by  the
28    General  Assembly of the Municipal Telecommunications Tax Act
29    creates a replacement source of revenue for municipalities in
30    substitution  for,  among   other   things,   the   municipal
31    infrastructure    maintenance    fee    and    the   optional
32    infrastructure maintenance fee.  This amendatory Act  of  the
33    91st   General  Assembly  is  intended  to  repeal  both  the
34    municipal infrastructure maintenance  fee  and  the  optional
 
                            -43-               LRB9202600SMdv
 1    infrastructure  maintenance  fee  a  comprehensive  method of
 2    compensation for telecommunications  activity  including  the
 3    recovery  of  reasonable  costs  of regulating the use of the
 4    public rights-of-way for telecommunications activity.
 5    (Source: P.A. 90-154, eff. 1-1-98; 91-533, eff. 8-13-99.)

 6        (35 ILCS 635/10)
 7        Sec. 10.  Definitions.
 8        (a)  "Gross  charges"  means  the  amount   paid   to   a
 9    telecommunications  retailer  for  the  act  or  privilege of
10    originating or receiving telecommunications in this State  or
11    the  municipality  imposing  the  fee  under this Act, as the
12    context requires, and for all services rendered in connection
13    therewith,  valued  in  money  whether  paid  in   money   or
14    otherwise, including cash, credits, services, and property of
15    every  kind  or  nature,  and shall be determined without any
16    deduction on account of the cost of such  telecommunications,
17    the  cost  of  the materials used, labor or service costs, or
18    any other expense whatsoever.  In case  credit  is  extended,
19    the  amount  thereof shall be included only as and when paid.
20    "Gross  charges"  for  private  line  service  shall  include
21    charges imposed at each channel point within  this  State  or
22    the municipality imposing the fee under this Act, charges for
23    the  channel  mileage  between each channel point within this
24    State or the municipality imposing the fee  under  this  Act,
25    and  charges  for that portion of the interstate inter-office
26    channel provided within Illinois or the municipality imposing
27    the fee under this Act.  However, "gross charges"  shall  not
28    include:
29             (1)  any amounts added to a purchaser's bill because
30        of  a  charge  made  under:  (i)  the fee imposed by this
31        Section, (ii) additional charges added to  a  purchaser's
32        bill under Section 9-221 or 9-222 of the Public Utilities
33        Act, (iii) amounts collected under Section 8-11-17 of the
 
                            -44-               LRB9202600SMdv
 1        Illinois  Municipal  Code,  (iv)  the  tax imposed by the
 2        Telecommunications  Excise  Tax   Act,   (iv)   (v)   911
 3        surcharges,  or  (v) (vi) the tax imposed by Section 4251
 4        of the Internal Revenue Code;
 5             (2)  charges for a  sent  collect  telecommunication
 6        received  outside  of  this  State  or  the  municipality
 7        imposing the fee, as the context requires;
 8             (3)  charges for leased time on equipment or charges
 9        for  the  storage  of  data  or information or subsequent
10        retrieval  or  the  processing  of  data  or  information
11        intended to change its form or content.   Such  equipment
12        includes,  but is not limited to, the use of calculators,
13        computers,   data   processing   equipment,    tabulating
14        equipment,  or accounting equipment and also includes the
15        usage of computers under a time-sharing agreement.
16             (4)  charges for customer equipment, including  such
17        equipment  that  is leased or rented by the customer from
18        any source, wherein such charges  are  disaggregated  and
19        separately identified from other charges;
20             (5)  charges to business enterprises certified under
21        Section 9-222.1 of the Public Utilities Act to the extent
22        of such exemption and during the period of time specified
23        by the Department of Commerce and Community Affairs or by
24        the  municipality  imposing the fee under the Act, as the
25        context requires;
26             (6)  charges for telecommunications and all services
27        and equipment provided in connection therewith between  a
28        parent  corporation  and its wholly owned subsidiaries or
29        between wholly owned subsidiaries, and only to the extent
30        that the  charges  between  the  parent  corporation  and
31        wholly   owned   subsidiaries  or  between  wholly  owned
32        subsidiaries represent  expense  allocation  between  the
33        corporations  and not the generation of profit other than
34        a  regulatory  required  profit   for   the   corporation
 
                            -45-               LRB9202600SMdv
 1        rendering such services;
 2             (7)  bad  debts  ("bad  debt" means any portion of a
 3        debt that is related to a sale at retail for which  gross
 4        charges  are  not otherwise deductible or excludable that
 5        has become  worthless  or  uncollectible,  as  determined
 6        under  applicable  federal  income  tax standards; if the
 7        portion of the debt deemed  to  be  bad  is  subsequently
 8        paid,  the  retailer shall report and pay the tax on that
 9        portion during the reporting period in which the  payment
10        is made); or
11             (8)  charges    paid    by    inserting   coins   in
12        coin-operated telecommunication devices.; or
13             (9)  charges for telecommunications and all services
14        and equipment provided to  a  municipality  imposing  the
15        infrastructure maintenance fee.
16        (a-5)  "Department"  means  the  Illinois  Department  of
17    Revenue.
18        (b)  "Telecommunications"  includes,  but  is not limited
19    to, messages or information transmitted through use of local,
20    toll, and wide  area  telephone  service,  channel  services,
21    telegraph services, teletypewriter service, computer exchange
22    services,  private  line  services,  specialized mobile radio
23    services,  or  any  other   transmission   of   messages   or
24    information  by electronic or similar means, between or among
25    points by wire, cable, fiber optics, laser, microwave, radio,
26    satellite, or similar facilities.  Unless the context clearly
27    requires otherwise, "telecommunications" shall  also  include
28    wireless    telecommunications    as   hereinafter   defined.
29    "Telecommunications" shall not include value  added  services
30    in  which computer processing applications are used to act on
31    the form, content, code, and protocol of the information  for
32    purposes other than transmission.  "Telecommunications" shall
33    not    include    purchase   of   telecommunications   by   a
34    telecommunications service provider for use  as  a  component
 
                            -46-               LRB9202600SMdv
 1    part  of  the  service provided by him or her to the ultimate
 2    retail consumer who originates or terminates  the  end-to-end
 3    communications.   Retailer  access  charges,  right of access
 4    charges, charges for use of intercompany facilities, and  all
 5    telecommunications  resold  in  the  subsequent provision and
 6    used as  a  component  of,  or  integrated  into,  end-to-end
 7    telecommunications  service  shall  not  be included in gross
 8    charges as sales for resale. "Telecommunications"  shall  not
 9    include  the  provision  of  cable  services  through a cable
10    system as defined in the Cable Communications Act of 1984 (47
11    U.S.C. Sections  521  and  following)  as  now  or  hereafter
12    amended  or  through  an  open video system as defined in the
13    Rules of the Federal  Communications  Commission  (47  C.D.F.
14    76.1550 and following) as now or hereafter amended. Beginning
15    January 1, 2001, prepaid telephone calling arrangements shall
16    not  be  considered  "telecommunications"  subject to the tax
17    imposed under this  Act.    For  purposes  of  this  Section,
18    "prepaid  telephone  calling arrangements" means that term as
19    defined in Section 2-27 of the Retailers' Occupation Tax Act.
20        (c)  "Wireless  telecommunications"   includes   cellular
21    mobile  telephone  services,  personal  wireless  services as
22    defined in Section 704(C) of the  Telecommunications  Act  of
23    1996  (Public  Law  No. 104-104) as now or hereafter amended,
24    including all commercial mobile radio  services,  and  paging
25    services.
26        (d)  "Telecommunications   retailer"   or  "retailer"  or
27    "carrier" means and includes  every  person  engaged  in  the
28    business  of  making sales of telecommunications at retail as
29    defined in this Section.  The Illinois Department of  Revenue
30    or  the  municipality  imposing  the fee, as the case may be,
31    may, in its  discretion,  upon  applications,  authorize  the
32    collection  of  the  fee  hereby  imposed by any retailer not
33    maintaining a place of business within this  State,  who,  to
34    the satisfaction of the Department or municipality, furnishes
 
                            -47-               LRB9202600SMdv
 1    adequate  security  to  insure  collection and payment of the
 2    fee.  When so authorized,  it  shall  be  the  duty  of  such
 3    retailer  to  pay  the  fee upon all of the gross charges for
 4    telecommunications in the same manner and subject to the same
 5    requirements as a retailer maintaining a  place  of  business
 6    within this the State or municipality imposing the fee.
 7        (e)  "Retailer  maintaining  a  place of business in this
 8    State", or any like term, means  and  includes  any  retailer
 9    having  or  maintaining  within  this State, directly or by a
10    subsidiary, an office, distribution facilities,  transmission
11    facilities,  sales  office,  warehouse,  or  other  place  of
12    business,  or  any  agent  or  other representative operating
13    within this State under the authority of the retailer or  its
14    subsidiary, irrespective of whether such place of business or
15    agent  or other representative is located here permanently or
16    temporarily,  or  whether  such  retailer  or  subsidiary  is
17    licensed to do business in this State.
18        (f)  "Sale of telecommunications  at  retail"  means  the
19    transmitting,  supplying, or furnishing of telecommunications
20    and all services  rendered  in  connection  therewith  for  a
21    consideration,  other  than  between a parent corporation and
22    its  wholly  owned  subsidiaries  or  between  wholly   owned
23    subsidiaries,   when  the  gross  charge  made  by  one  such
24    corporation to another such corporation is not  greater  than
25    the  gross  charge  paid  to  the  retailer  for their use or
26    consumption and not for sale.
27        (g)  "Service   address"   means    the    location    of
28    telecommunications  equipment  from  which telecommunications
29    services  are  originated  or  at  which   telecommunications
30    services are received.  If this is not a defined location, as
31    in  the  case of wireless telecommunications, paging systems,
32    maritime  systems,  air-to-ground  systems,  and  the   like,
33    "service  address"  shall mean the location of the customer's
34    primary use of the telecommunications equipment as defined by
 
                            -48-               LRB9202600SMdv
 1    the location in Illinois where bills are sent.
 2    (Source: P.A. 90-154, eff.  1-1-98;  90-562,  eff.  12-16-97;
 3    91-870, eff. 6-22-00.)

 4        (35 ILCS 635/15)
 5        Sec.    15.  State    telecommunications   infrastructure
 6    maintenance fees.
 7        (a)  A State infrastructure  maintenance  fee  is  hereby
 8    imposed  upon  telecommunications  retailers as a replacement
 9    for the personal property  tax  in  an  amount  specified  in
10    subsection (b).
11        (b)  The  amount  of the State infrastructure maintenance
12    fee imposed upon a  telecommunications  retailer  under  this
13    Section  shall  be equal to 0.5% of all gross charges charged
14    by the telecommunications retailer to  service  addresses  in
15    this   State  for  telecommunications,  other  than  wireless
16    telecommunications, originating or received  in  this  State.
17    However,  the  State  infrastructure  maintenance  fee is not
18    imposed in any case in which the imposition of the fee  would
19    violate the Constitution or statutes of the United States.
20        (c)  (Blank).  An optional infrastructure maintenance fee
21    is hereby created.  A telecommunications retailer  may  elect
22    to  pay  the  optional  infrastructure  maintenance  fee with
23    respect   to   the   gross    charges    charged    by    the
24    telecommunications   retailer   to  service  addresses  in  a
25    particular municipality for  telecommunications,  other  than
26    wireless  telecommunications,  originating or received in the
27    municipality if (1) the telecommunications  retailer  is  not
28    required to pay any compensation to the municipality under an
29    existing franchise agreement and (2) the municipality has not
30    imposed   a   municipal  infrastructure  maintenance  fee  as
31    authorized in Section 20 of this  Act.  A  telecommunications
32    retailer   electing   to   pay  the  optional  infrastructure
33    maintenance fee shall notify the Department of such  election
 
                            -49-               LRB9202600SMdv
 1    on  the  application  for  certificate  of registration. If a
 2    telecommunications retailer  elects  to  pay  this  fee  with
 3    respect    to    the    gross    charges   charged   by   the
 4    telecommunications  retailer  to  service  addresses   in   a
 5    particular  municipality,  such election shall remain in full
 6    force and effect until such time as the municipality  imposes
 7    a municipal infrastructure maintenance fee.
 8        (d)  (Blank).  The  amount of the optional infrastructure
 9    maintenance fee which a telecommunications retailer may elect
10    to pay with respect to a  particular  municipality  shall  be
11    equal   to  25%  of  the  maximum  amount  of  the  municipal
12    infrastructure maintenance fee which the  municipality  could
13    impose under Section 20 of this Act.
14        (e)  The  State  infrastructure  maintenance  fee and the
15    optional infrastructure maintenance fee  authorized  by  this
16    Section shall be collected, enforced, and administered as set
17    forth in subsection (b) of Section 25 of this Act.
18    (Source: P.A. 90-154, eff. 1-1-98; 90-562, eff. 12-16-97.)

19        (35 ILCS 635/25)
20        Sec.  25.  Collection, enforcement, and administration of
21    telecommunications infrastructure maintenance fees.
22        (a)  A  telecommunications  retailer  shall  charge  each
23    customer an additional charge equal to  the  sum  of  (1)  an
24    amount  equal  to  the  State  infrastructure maintenance fee
25    attributable to that customer's service address  and  (2)  an
26    amount  equal to the optional infrastructure maintenance fee,
27    if any, attributable to that customer's service  address  and
28    (3)   an   amount   equal  to  the  municipal  infrastructure
29    maintenance fee, if  any,  attributable  to  that  customer's
30    service  address.   Such  additional  charge  shall  be shown
31    separately on the bill to each customer.
32        (b)  The State infrastructure  maintenance  fee  and  the
33    optional  infrastructure  maintenance fee shall be designated
 
                            -50-               LRB9202600SMdv
 1    as a replacement for the personal property tax and  shall  be
 2    remitted  by  the telecommunications retailer to the Illinois
 3    Department  of   Revenue;   provided,   however,   that   the
 4    telecommunications  retailer  may  retain  an  amount  not to
 5    exceed 2% of the State infrastructure maintenance fee and the
 6    optional infrastructure maintenance fee, if any, paid to  the
 7    Department,  with  a  timely  paid and timely filed return to
 8    reimburse  itself  for  expenses  incurred   in   collecting,
 9    accounting  for,  and  remitting the fee.  All amounts herein
10    remitted to  the  Department  shall  be  transferred  to  the
11    Personal Property Tax Replacement Fund in the State Treasury.
12        (c)  The  municipal  infrastructure maintenance fee shall
13    be  remitted  by  the  telecommunications  retailer  to   the
14    municipality    imposing    the    municipal   infrastructure
15    maintenance    fee;    provided,    however,     that     the
16    telecommunications  retailer  may  retain  an  amount  not to
17    exceed 2% of the  municipal  infrastructure  maintenance  fee
18    collected  by it to reimburse itself for expenses incurred in
19    accounting for  and  remitting  the  fee.   The  municipality
20    imposing  the  municipal infrastructure maintenance fee shall
21    collect, enforce, and administer the fee.
22        (d)  Except as provided in  subsection  (e),  during  any
23    period  of time when a municipality receives any compensation
24    other than the municipal infrastructure maintenance  fee  set
25    forth  in Section 20, for a telecommunications retailer's use
26    of  the  public  right-of-way,  no  municipal  infrastructure
27    maintenance fee may be imposed by such municipality  pursuant
28    to this Act.
29        (e)  A   municipality   that,  pursuant  to  a  franchise
30    agreement in existence on the effective  date  of  this  Act,
31    receives  compensation from a telecommunications retailer for
32    the use of the public right of way, may  impose  a  municipal
33    infrastructure  maintenance  fee pursuant to this Act only on
34    the condition that such municipality (1) waives its right  to
 
                            -51-               LRB9202600SMdv
 1    receive  all  fees,  charges and other compensation under all
 2    existing   franchise   agreements   or    the    like    with
 3    telecommunications   retailers   during  the  time  that  the
 4    municipality imposes a municipal  infrastructure  maintenance
 5    fee  and  (2)  imposes by ordinance (or other proper means) a
 6    municipal  infrastructure  maintenance  fee   which   becomes
 7    effective  no sooner than 90 days after such municipality has
 8    provided  written  notice   by   certified   mail   to   each
 9    telecommunications retailer with whom the municipality has an
10    existing  franchise  agreement,  that the municipality waives
11    all compensation under such existing franchise agreement.
12    (Source: P.A. 90-154, eff.  1-1-98;  90-562,  eff.  12-16-97;
13    90-655, eff. 7-30-98.)

14        (35 ILCS 635/27)
15        Sec.   27.   Returns   by   telecommunications  retailer;
16    extensions. Except as provided hereinafter in  this  Section,
17    on   or   before   the   30th   day   of   each   month  each
18    telecommunications retailer maintaining a place  of  business
19    in  this State shall make a return and payment of fees to the
20    Department  for  the  preceding  calendar  month  on  a  form
21    prescribed and furnished by the Department. The return  shall
22    be  signed by the telecommunications retailer under penalties
23    of perjury and shall contain the following information:
24             1.  His or her name;
25             2.  The address of his or  her  principal  place  of
26        business,  and  the  address  of  the  principal place of
27        business (if that is a different address) from  which  he
28        or   she   engages   in   the  business  of  transmitting
29        telecommunications;
30             3.  The total amount of gross charges charged by him
31        or her during the preceding calendar month for  providing
32        telecommunications during such calendar month;
33             4.  The  total  amount received by him or her during
 
                            -52-               LRB9202600SMdv
 1        the preceding calendar month on credit extended;
 2             5.  Deductions allowed by law;
 3             6.  Gross charges that were charged by  him  or  her
 4        during the preceding calendar month and upon the basis of
 5        which   the   State  infrastructure  maintenance  fee  is
 6        imposed;
 7             7.  (Blank) Gross charges that were charged  by  him
 8        or  her  during the preceding calendar month and upon the
 9        basis of which the  optional  infrastructure  maintenance
10        fee, if any, is imposed for each particular municipality;
11             8.  Amounts of fees due;
12             9.  Such   other   reasonable   information  as  the
13        Department may require.
14        If  the  telecommunications  retailer's  average  monthly
15    liability  to  the  Department  does  not  exceed  $100,  the
16    Department may authorize his or her returns to be filed on  a
17    quarter  annual basis, with the return for January, February,
18    and March of a given year being due by April 15 of such year;
19    with the return for April, May, and  June  of  a  given  year
20    being  due by July 15 of such year; with the return for July,
21    August, and September of a given year being due by October 15
22    of such year; and with the return of October,  November,  and
23    December  of  a  given  year  being  due by January 15 of the
24    following year.
25        Notwithstanding  any  other   provision   of   this   Act
26    concerning   the   time  within  which  a  telecommunications
27    retailer may file his or her  return,  in  the  case  of  any
28    telecommunications retailer who ceases to engage in a kind of
29    business  which  makes  him  or  her  responsible  for filing
30    returns under  this  Act,  such  telecommunications  retailer
31    shall  file a final return under this Act with the Department
32    not more than one month after discontinuing such business.
33        In making such return,  the  telecommunications  retailer
34    shall  determine  the  value  of any consideration other than
 
                            -53-               LRB9202600SMdv
 1    money received by him or her and he or she shall include such
 2    value in his or  her  return.  Such  determination  shall  be
 3    subject  to  review  and  revision  by  the Department in the
 4    manner hereinafter provided for the correction of returns.
 5        If any payment provided for in this Section  exceeds  the
 6    telecommunications  retailer's liabilities under this Act, as
 7    shown on an  original  monthly  return,  the  Department  may
 8    authorize  the  telecommunications  retailer  to  credit such
 9    excess payment against liability subsequently to be  remitted
10    to   the  Department  under  this  Act,  in  accordance  with
11    reasonable  rules   and   regulations   prescribed   by   the
12    Department.  If  the  Department subsequently determines that
13    all or any part of the credit taken was not actually  due  to
14    the   telecommunications   retailer,  the  telecommunications
15    retailer's  2%  discount  shall  be  reduced  by  2%  of  the
16    difference between the credit taken and  that  actually  due,
17    and  that  telecommunications  retailer  shall  be liable for
18    penalties and interest on such difference.
19        If the Director finds that the information  required  for
20    the  making  of  an  accurate  return  cannot  reasonably  be
21    compiled  by  a  telecommunications  retailer  within 15 days
22    after the close of the calendar month for which a  return  is
23    to  be made, he or she may grant an extension of time for the
24    filing of such return for  a  period  of  not  to  exceed  31
25    calendar  days.  The  granting  of  such  an extension may be
26    conditioned  upon  the  deposit  by  the   telecommunications
27    retailer  with  the  Department  of  an  amount  of money not
28    exceeding the amount estimated by the Director to be due with
29    the return so extended.  All  such  deposits,  including  any
30    heretofore  made  with  the  Department,  shall  be  credited
31    against  the  telecommunications retailer's liabilities under
32    this Act. If any such deposit exceeds the  telecommunications
33    retailer's present and probable future liabilities under this
34    Act,  the  Department  shall  issue to the telecommunications
 
                            -54-               LRB9202600SMdv
 1    retailer a credit memorandum, which may be  assigned  by  the
 2    telecommunications  retailer  to a similar telecommunications
 3    retailer under this Act, in accordance with reasonable  rules
 4    and regulations to be prescribed by the Department.
 5        Any telecommunications retailer required to make payments
 6    under  this Section may make the payments by electronic funds
 7    transfer. The  Department  shall  adopt  rules  necessary  to
 8    effectuate a program of electronic funds transfer.
 9    (Source: P.A. 90-562, eff. 12-16-97.)

10        (35 ILCS 635/27.35)
11        Sec.    27.35.   Rules   and   regulations;   notice   to
12    telecommunications retailer;  hearings.  The  Department  may
13    make,  promulgate,  and  enforce  such  reasonable  rules and
14    regulations relating to the administration and enforcement of
15    only  the  State  infrastructure  maintenance  fee  and   the
16    optional  infrastructure  maintenance  fee authorized by this
17    Act.  Such rules and  regulations  shall  not  apply  to  the
18    administration    and    enforcement    of    the   municipal
19    infrastructure maintenance fee authorized by this Act.
20        Whenever  notice  to  a  telecommunications  retailer  is
21    required by this Act, such notice  may  be  given  by  United
22    States   certified  or  registered  mail,  addressed  to  the
23    telecommunications retailer concerned  at  his  or  her  last
24    known  address, and proof of such mailing shall be sufficient
25    for the purposes of this Act. In the  case  of  a  notice  of
26    hearing,  such  notice  shall  be mailed not less than 7 days
27    prior to the day fixed for the hearing.
28        All hearings provided for in this Act with respect  to  a
29    telecommunications retailer having his or her principal place
30    of  business  other  than in Cook County shall be held at the
31    Department's  office  nearest  to   the   location   of   the
32    telecommunications  retailer's  principal  place of business:
33    Provided that if the telecommunications retailer has  his  or
 
                            -55-               LRB9202600SMdv
 1    her  principal place of business in Cook County, such hearing
 2    shall be held in Cook County; and provided  further  that  if
 3    the  telecommunications  retailer does not have his principal
 4    place of business in this State, such hearings shall be  held
 5    in Sangamon County.
 6        Whenever  any  proceeding  provided  by this Act has been
 7    begun by the Department or by a person  subject  thereto  and
 8    such  person  thereafter dies or becomes a person under legal
 9    disability before the  proceeding  has  been  concluded,  the
10    legal representative of the deceased person or a person under
11    legal disability shall notify the Department of such death or
12    legal  disability.  The  legal representative, as such, shall
13    then be substituted by the Department in place of and for the
14    person.  Within  20  days   after   notice   to   the   legal
15    representative  of  the  time  fixed  for  that  purpose, the
16    proceeding may proceed in all respects and with  like  effect
17    as  though  the  person had not died or become a person under
18    legal disability.
19    (Source: P.A. 90-562, eff. 12-16-97.)

20        (35 ILCS 635/30)
21        Sec.  30.  Validity  of  existing  franchise   fees   and
22    agreements.
23        (a)  Upon  the  effective date of this Act, the municipal
24    infrastructure maintenance fee authorized by this  Act  shall
25    be the only fee or compensation for recovering the reasonable
26    costs  of  regulating the use of the public rights-of-way and
27    for the use of public rights-of-way that may be levied by  or
28    otherwise  required  by ordinance, resolution, or contract to
29    be paid to a municipality for the use of its  public  way  by
30    telecommunications retailers.  No new franchise fees or other
31    charges  for  the  use of the public rights-of-way, including
32    those for the recovery of reasonable costs of regulating  the
33    use  of  the  public  rights-of-way,  shall  be imposed upon,
 
                            -56-               LRB9202600SMdv
 1    levied  on,  or  otherwise  required  of   telecommunications
 2    retailers  by  ordinance,  resolution,  or contract, or other
 3    charges  required  from   telecommunications   retailers   by
 4    municipalities from and after the effective date of this Act.
 5    No  telecommunications  retailer paying either the applicable
 6    municipal infrastructure  maintenance  fee  or  the  optional
 7    infrastructure  maintenance fee authorized by this Act may be
 8    denied the use, directly or indirectly, of the public way  of
 9    the municipality either imposing the municipal infrastructure
10    maintenance  fee  or  to  which  the  optional infrastructure
11    maintenance fee relates, as the case may  be,  as  authorized
12    under  the  Telephone  Company Act. Nothing in this Act shall
13    excuse any person or entity from  obligations  imposed  under
14    any  law  concerning  generally applicable taxes or standards
15    for construction on, over, under, or within, use of or repair
16    of the public rights-of-way, including standards relating  to
17    free  standing  towers  and  other structures upon the public
18    way, nor shall any person  or  entity  be  excused  from  any
19    liability  imposed  by any such law for the failure to comply
20    with such generally applicable taxes or  standards  governing
21    construction  on, over, under, or within, use of or repair of
22    the public rights-of-way.
23        (b)  Agreements between telecommunications retailers  and
24    municipalities entered into before the effective date of this
25    Act  regarding  use  of  the  public  ways shall remain valid
26    according to and for their stated terms, except as to fees or
27    charges  waived   under   Section   60   of   the   Municipal
28    Telecommunications Tax Act.  If, following the effective date
29    of this Act, such an agreement is renewed automatically or by
30    agreement  of  the parties, the compensation or fee under the
31    agreement shall  be  equal  to  the  maximum  amount  of  the
32    municipal    infrastructure   maintenance   fee   which   the
33    municipality could impose under Section 20 of this Act.
34        (c)  The regulation of  the  terms  and  conditions  upon
 
                            -57-               LRB9202600SMdv
 1    which  poles,  conduits,  and other facilities located in the
 2    public way may be shared  by  or  between  telecommunications
 3    retailers  shall be committed exclusively to the jurisdiction
 4    of  the  Illinois  Commerce  Commission   and   the   Federal
 5    Communications  Commission,  and such regulation shall not be
 6    among  the  home  rule  powers  and  functions  described  in
 7    subsection (h) of Section 6 of Article VII  of  the  Illinois
 8    Constitution.   Moreover,  no municipality may enter into any
 9    contract or agreement with a telecommunications retailer with
10    respect  to  the  terms  and  conditions  upon  which  poles,
11    conduits, and other facilities located in the public way  may
12    be shared by or between telecommunications retailers.
13    (Source: P.A. 90-154, eff. 1-1-98.)

14        (35 ILCS 635/20 rep.)
15        Section    917.     The    Telecommunications   Municipal
16    Infrastructure Maintenance Fee Act is  amended  by  repealing
17    Section 20.

18        Section  920.   The  Emergency  Telephone  System  Act is
19    amended by changing Section 15.3 as follows:

20        (50 ILCS 750/15.3) (from Ch. 134, par. 45.3)
21        Sec.  15.3.   (a)  The  corporate  authorities   of   any
22    municipality or any county may, subject to the limitations of
23    subsections  (c),  (d),  and  (h), and in addition to any tax
24    levied pursuant to the Municipal Telecommunications  Tax  Act
25    Section  8-11-2  of  the  Illinois  Municipal  Code, impose a
26    monthly surcharge on billed subscribers of network connection
27    provided  by  telecommunication  carriers  engaged   in   the
28    business  of  transmitting  messages  by means of electricity
29    originating within the corporate limits of  the  municipality
30    or  county  imposing  the  surcharge  at  a  rate per network
31    connection determined in accordance with subsection  (c).   A
 
                            -58-               LRB9202600SMdv
 1    municipality  may  enter  into an intergovernmental agreement
 2    with any county in which it is partially  located,  when  the
 3    county  has  adopted  an  ordinance  to impose a surcharge as
 4    provided in subsection (c), to include that  portion  of  the
 5    municipality  lying  outside  the  county  in  that  county's
 6    surcharge  referendum.   If the county's surcharge referendum
 7    is approved, the portion of the  municipality  identified  in
 8    the   intergovernmental   agreement  shall  automatically  be
 9    disconnected from the county in which it lies  and  connected
10    to the county which approved the referendum for purposes of a
11    surcharge on telecommunications carriers.
12        (b)  For  purposes  of computing the surcharge imposed by
13    subsection  (a),  the  network  connections  to   which   the
14    surcharge  shall  apply  shall  be  those  in-service network
15    connections, other than those network connections assigned to
16    the municipality or county, where  the  service  address  for
17    each such network connection or connections is located within
18    the  corporate  limits  of the municipality or county levying
19    the surcharge. The "service address" shall mean the  location
20    of  the primary use of the network connection or connections.
21    With respect to network connections provided for use with pay
22    telephone services for which there is no  billed  subscriber,
23    the   telecommunications   carrier   providing   the  network
24    connection shall be deemed to be its  own  billed  subscriber
25    for purposes of applying the surcharge.
26        (c)  Upon  the  passage  of  an  ordinance  to  impose  a
27    surcharge under this Section the clerk of the municipality or
28    county  shall  certify  the question of whether the surcharge
29    may be imposed to the proper  election  authority  who  shall
30    submit   the   public   question   to  the  electors  of  the
31    municipality  or  county  in  accordance  with  the   general
32    election  law;  provided  that  such  question  shall  not be
33    submitted at a consolidated  primary  election.   The  public
34    question shall be in substantially the following form:
 
                            -59-               LRB9202600SMdv
 1    -------------------------------------------------------------
 2        Shall the county (or city, village
 3    or incorporated town) of.....impose          YES
 4    a surcharge of up to...¢ per month per
 5    network connection, which surcharge will
 6    be added to the monthly bill you receive   ------------------
 7    for telephone or telecommunications
 8    charges, for the purpose of installing
 9    (or improving) a 9-1-1 Emergency             NO
10    Telephone System?
11    -------------------------------------------------------------
12        If  a majority of the votes cast upon the public question
13    are in favor thereof, the surcharge shall be imposed.
14        However, if a Joint Emergency Telephone System  Board  is
15    to  be  created  pursuant  to  an intergovernmental agreement
16    under Section 15.4, the ordinance  to  impose  the  surcharge
17    shall  be  subject to the approval of a majority of the total
18    number of votes cast upon the public question by the electors
19    of all of the  municipalities  or  counties,  or  combination
20    thereof, that are parties to the intergovernmental agreement.
21        The  referendum  requirement of this subsection (c) shall
22    not apply to any municipality with a population over  500,000
23    or  to  any  county  in  which  a proposition as to whether a
24    sophisticated 9-1-1  Emergency  Telephone  System  should  be
25    installed  in the county, at a cost not to exceed a specified
26    monthly amount per network connection,  has  previously  been
27    approved  by  a majority of the electors of the county voting
28    on the  proposition  at  an  election  conducted  before  the
29    effective date of this amendatory Act of 1987.
30        (d)  A   county   may  not  impose  a  surcharge,  unless
31    requested by a municipality, in any incorporated  area  which
32    has previously approved a surcharge as provided in subsection
33    (c)   or   in  any  incorporated  area  where  the  corporate
34    authorities of the municipality have previously entered  into
 
                            -60-               LRB9202600SMdv
 1    a   binding   contract   or   letter   of   intent   with   a
 2    telecommunications  carrier  to  provide  sophisticated 9-1-1
 3    service through municipal funds.
 4        (e)  A  municipality  or  county  may  at  any  time   by
 5    ordinance change the rate of the surcharge imposed under this
 6    Section if the new rate does not exceed the rate specified in
 7    the referendum held pursuant to subsection (c).
 8        (f)  The  surcharge  authorized  by this Section shall be
 9    collected  from  the  subscriber  by  the  telecommunications
10    carrier providing the subscriber the network connection as  a
11    separately stated item on the subscriber's bill.
12        (g)  The   amount   of   surcharge   collected   by   the
13    telecommunications  carrier  shall  be paid to the particular
14    municipality or county or Joint  Emergency  Telephone  System
15    Board   not  later  than  30  days  after  the  surcharge  is
16    collected, net of any network or other 9-1-1 or sophisticated
17    9-1-1   system    charges    then    due    the    particular
18    telecommunications  carrier,  as  shown  on an itemized bill.
19    The telecommunications carrier collecting the surcharge shall
20    also be  entitled  to  deduct  3%  of  the  gross  amount  of
21    surcharge   collected  to  reimburse  the  telecommunications
22    carrier for the expense  of  accounting  and  collecting  the
23    surcharge.
24        (h)  A  municipality  with  a population over 500,000 may
25    not impose a monthly surcharge in excess of $1.25 per network
26    connection.
27        (i)  Any  municipality  or  county  or  joint   emergency
28    telephone  system board that has imposed a surcharge pursuant
29    to  this  Section  prior  to  the  effective  date  of   this
30    amendatory  Act  of 1990 shall hereafter impose the surcharge
31    in accordance with subsection (b) of this Section.
32        (j)  The corporate authorities  of  any  municipality  or
33    county  may  issue,  in  accordance with Illinois law, bonds,
34    notes or other obligations secured in whole or in part by the
 
                            -61-               LRB9202600SMdv
 1    proceeds  of  the  surcharge  described  in   this   Section.
 2    Notwithstanding  any change in law subsequent to the issuance
 3    of any bonds, notes  or  other  obligations  secured  by  the
 4    surcharge,  every  municipality or county issuing such bonds,
 5    notes or other obligations shall be authorized to impose  the
 6    surcharge  as  though  the laws relating to the imposition of
 7    the surcharge in effect at the time of issuance of the bonds,
 8    notes or other obligations were  in  full  force  and  effect
 9    until the bonds, notes or other obligations are paid in full.
10    The  State  of  Illinois  pledges and agrees that it will not
11    limit or alter the rights and powers vested in municipalities
12    and counties by this Section to impose the surcharge so as to
13    impair the terms of or affect the security for  bonds,  notes
14    or  other  obligations  secured  in whole or in part with the
15    proceeds of the surcharge described in this Section.
16        (k)  Any  surcharge  collected  by  or   imposed   on   a
17    telecommunications  carrier pursuant to this Section shall be
18    held to be a special fund  in  trust  for  the  municipality,
19    county  or  Joint  Emergency  Telephone  Board  imposing  the
20    surcharge.    Except   for   the  3%  deduction  provided  in
21    subsection (g) above, the special fund shall not  be  subject
22    to the claims of creditors of the telecommunication carrier.
23    (Source: P.A. 86-101; 86-1344.)

24        Section  925.   The Illinois Municipal Code is amended by
25    changing Section 8-11-2 as follows:

26        (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
27        Sec.   8-11-2.  The   corporate   authorities   of    any
28    municipality  may tax any or all of the following occupations
29    or privileges:
30             1.  (Blank). Persons  engaged  in  the  business  of
31        transmitting  messages  by  means of electricity or radio
32        magnetic waves, or fiber optics, at a rate not to  exceed
 
                            -62-               LRB9202600SMdv
 1        5%  of  the gross receipts from that business originating
 2        within  the  corporate  limits   of   the   municipality.
 3        Beginning  January  1,  2001,  prepaid  telephone calling
 4        arrangements shall not be  subject  to  the  tax  imposed
 5        under  this  Section.   For  purposes  of  this  Section,
 6        "prepaid  telephone calling arrangements" means that term
 7        as defined in Section 2-27 of the  Retailers'  Occupation
 8        Tax Act.
 9             2.  Persons engaged in the business of distributing,
10        supplying,   furnishing,   or  selling  gas  for  use  or
11        consumption within the corporate limits of a municipality
12        of 500,000 or fewer population, and not for resale, at  a
13        rate not to exceed 5% of the gross receipts therefrom.
14             2a.  Persons    engaged    in    the   business   of
15        distributing, supplying, furnishing, or selling  gas  for
16        use  or  consumption  within  the  corporate  limits of a
17        municipality of over  500,000  population,  and  not  for
18        resale,  at a rate not to exceed 8% of the gross receipts
19        therefrom.  If imposed, this tax shall be paid in monthly
20        payments.
21             3.  The privilege of using or consuming  electricity
22        acquired  in  a  purchase  at retail and used or consumed
23        within the corporate limits of the municipality at  rates
24        not  to exceed the following maximum rates, calculated on
25        a monthly basis for each purchaser:
26             (i)  For the  first  2,000  kilowatt-hours  used  or
27        consumed in a month; 0.61 cents per kilowatt-hour;
28             (ii)  For  the  next  48,000  kilowatt-hours used or
29        consumed in a month; 0.40 cents per kilowatt-hour;
30             (iii)  For the next 50,000  kilowatt-hours  used  or
31        consumed in a month; 0.36 cents per kilowatt-hour;
32             (iv)  For  the  next  400,000 kilowatt-hours used or
33        consumed in a month; 0.35 cents per kilowatt-hour;
34             (v)  For the next  500,000  kilowatt-hours  used  or
 
                            -63-               LRB9202600SMdv
 1        consumed in a month; 0.34 cents per kilowatt-hour;
 2             (vi)  For  the next 2,000,000 kilowatt-hours used or
 3        consumed in a month; 0.32 cents per kilowatt-hour;
 4             (vii)  For the next 2,000,000 kilowatt-hours used or
 5        consumed in a month; 0.315 cents per kilowatt-hour;
 6             (viii)  For the next 5,000,000  kilowatt-hours  used
 7        or consumed in a month; 0.31 cents per kilowatt-hour;
 8             (ix)  For the next 10,000,000 kilowatt-hours used or
 9        consumed in a month; 0.305 cents per kilowatt-hour; and
10             (x)  For  all electricity used or consumed in excess
11        of 20,000,000 kilowatt-hours in a month, 0.30  cents  per
12        kilowatt-hour.
13             If  a municipality imposes a tax at rates lower than
14        either the maximum rates specified in this Section or the
15        alternative maximum rates  promulgated  by  the  Illinois
16        Commerce  Commission,  as  provided  below, the tax rates
17        shall be imposed upon the kilowatt  hour  categories  set
18        forth  above  with  the same proportional relationship as
19        that   which   exists   among   such    maximum    rates.
20        Notwithstanding  the  foregoing, until December 31, 2008,
21        no municipality shall establish rates that are in  excess
22        of  rates  reasonably calculated to produce revenues that
23        equal the maximum total revenues such municipality  could
24        have   received   under   the   tax  authorized  by  this
25        subparagraph in the last full calendar year prior to  the
26        effective  date  of  Section 65 of this amendatory Act of
27        1997; provided that this shall not be a limitation on the
28        amount  of  tax  revenues  actually  collected  by   such
29        municipality.
30             Upon  the  request of the corporate authorities of a
31        municipality, the  Illinois  Commerce  Commission  shall,
32        within  90 days after receipt of such request, promulgate
33        alternative  rates  for  each  of   these   kilowatt-hour
34        categories  that  will  reflect, as closely as reasonably
 
                            -64-               LRB9202600SMdv
 1        practical for that municipality, the distribution of  the
 2        tax  among classes of purchasers as if the tax were based
 3        on  a  uniform  percentage  of  the  purchase  price   of
 4        electricity.    A   municipality   that  has  adopted  an
 5        ordinance imposing a tax pursuant to subparagraph 3 as it
 6        existed prior to the effective date of Section 65 of this
 7        amendatory Act of 1997 may, rather than imposing the  tax
 8        permitted  by  this  amendatory  Act of 1997, continue to
 9        impose the tax pursuant to that ordinance with respect to
10        gross  receipts  received  from   residential   customers
11        through July 31, 1999, and with respect to gross receipts
12        from  any  non-residential  customer until the first bill
13        issued  to  such  customer  for  delivery   services   in
14        accordance  with  Section  16-104 of the Public Utilities
15        Act but in no case later than the  last  bill  issued  to
16        such  customer  before  December  31,  2000. No ordinance
17        imposing the tax permitted by this amendatory Act of 1997
18        shall be applicable to any non-residential customer until
19        the first bill  issued  to  such  customer  for  delivery
20        services  in accordance with Section 16-104 of the Public
21        Utilities Act but in no case later  than  the  last  bill
22        issued  to  such non-residential customer before December
23        31, 2000.
24             4.  Persons engaged in the business of distributing,
25        supplying,  furnishing,  or  selling  water  for  use  or
26        consumption  within   the   corporate   limits   of   the
27        municipality, and not for resale, at a rate not to exceed
28        5% of the gross receipts therefrom.
29        None  of  the  taxes  authorized  by  this Section may be
30    imposed  with  respect  to  any  transaction  in   interstate
31    commerce  or otherwise to the extent to which the business or
32    privilege may not, under the constitution and statutes of the
33    United States, be made the subject of taxation by this  State
34    or  any political sub-division thereof; nor shall any persons
 
                            -65-               LRB9202600SMdv
 1    engaged  in  the   business   of   distributing,   supplying,
 2    furnishing,   selling   or   transmitting   gas,   water,  or
 3    electricity, or  engaged  in  the  business  of  transmitting
 4    messages,  or  using  or  consuming electricity acquired in a
 5    purchase  at  retail,  be  subject  to  taxation  under   the
 6    provisions of this Section for those transactions that are or
 7    may  become  subject  to taxation under the provisions of the
 8    "Municipal  Retailers'  Occupation  Tax  Act"  authorized  by
 9    Section 8-11-1; nor shall any tax authorized by this  Section
10    be  imposed  upon  any person engaged in a business or on any
11    privilege unless the tax is imposed in like manner and at the
12    same rate upon all persons engaged in businesses of the  same
13    class  in  the municipality, whether privately or municipally
14    owned or operated, or exercising the  same  privilege  within
15    the municipality.
16        Any  of  the  taxes  enumerated in this Section may be in
17    addition to the payment of money, or  value  of  products  or
18    services  furnished  to  the  municipality by the taxpayer as
19    compensation for the use of its  streets,  alleys,  or  other
20    public  places,  or  installation  and  maintenance  therein,
21    thereon  or  thereunder  of  poles,  wires,  pipes  or  other
22    equipment used in the operation of the taxpayer's business.
23        (a)  If  the  corporate  authorities  of  any  home  rule
24    municipality  have adopted an ordinance that imposed a tax on
25    public utility customers, between July 1, 1971,  and  October
26    1,  1981,  on the good faith belief that they were exercising
27    authority pursuant to Section 6 of Article VII  of  the  1970
28    Illinois   Constitution,   that   action   of  the  corporate
29    authorities   shall   be   declared    legal    and    valid,
30    notwithstanding  a  later  decision  of  a  judicial tribunal
31    declaring the ordinance invalid.  No  municipality  shall  be
32    required  to  rebate,  refund, or issue credits for any taxes
33    described in this paragraph, and those taxes shall be  deemed
34    to  have  been  levied  and  collected in accordance with the
 
                            -66-               LRB9202600SMdv
 1    Constitution and laws of this State.
 2        (b)  In any case in which (i) prior to October 19,  1979,
 3    the corporate authorities of any municipality have adopted an
 4    ordinance  imposing  a  tax authorized by this Section (or by
 5    the predecessor provision of the "Revised Cities and Villages
 6    Act") and have explicitly or in  practice  interpreted  gross
 7    receipts  to include either charges added to customers' bills
 8    pursuant to the provision of paragraph (a) of Section  36  of
 9    the Public Utilities Act or charges added to customers' bills
10    by  taxpayers  who  are not subject to rate regulation by the
11    Illinois Commerce Commission for the  purpose  of  recovering
12    any of the tax liabilities or other amounts specified in such
13    paragraph (a) of Section 36 of that Act, and (ii) on or after
14    October  19,  1979,  a  judicial tribunal has construed gross
15    receipts to exclude  all  or  part  of  those  charges,  then
16    neither  those municipality nor any taxpayer who paid the tax
17    shall be required to rebate, refund, or issue credits for any
18    tax imposed or charge collected from  customers  pursuant  to
19    the  municipality's interpretation prior to October 19, 1979.
20    This paragraph reflects a legislative finding that  it  would
21    be  contrary to the public interest to require a municipality
22    or its taxpayers to refund taxes or charges  attributable  to
23    the  municipality's  more  inclusive  interpretation of gross
24    receipts prior to October 19, 1979, and is  not  intended  to
25    prescribe or limit judicial construction of this Section. The
26    legislative  finding  set  forth  in this subsection does not
27    apply to taxes imposed  after  the  effective  date  of  this
28    amendatory Act of 1995.
29        (c)  The  tax  authorized  by  subparagraph  3  shall  be
30    collected  from  the  purchaser   by the person maintaining a
31    place of business in this State who delivers the  electricity
32    to  the  purchaser.   This tax shall constitute a debt of the
33    purchaser to the person who delivers the electricity  to  the
34    purchaser and if unpaid, is recoverable in the same manner as
 
                            -67-               LRB9202600SMdv
 1    the  original charge for delivering the electricity.  Any tax
 2    required to be collected pursuant to an ordinance  authorized
 3    by  subparagraph  3  and  any  such tax collected by a person
 4    delivering electricity shall constitute a debt  owed  to  the
 5    municipality  by  such  person  delivering  the  electricity,
 6    provided,  that  the  person  delivering electricity shall be
 7    allowed  credit  for  such  tax  related  to  deliveries   of
 8    electricity   the  charges  for  which  are  written  off  as
 9    uncollectible, and provided further, that if such charges are
10    thereafter  collected,  the  delivering  supplier  shall   be
11    obligated to remit such tax.  For purposes of this subsection
12    (c),  any  partial payment not specifically identified by the
13    purchaser  shall  be  deemed  to  be  for  the  delivery   of
14    electricity. Persons delivering electricity shall collect the
15    tax from the purchaser by adding such tax to the gross charge
16    for  delivering  the electricity, in the manner prescribed by
17    the municipality.  Persons delivering electricity shall  also
18    be  authorized to add to such gross charge an amount equal to
19    3% of the tax to reimburse the person delivering  electricity
20    for   the  expenses  incurred  in  keeping  records,  billing
21    customers, preparing and filing returns,  remitting  the  tax
22    and  supplying data to the municipality upon request.  If the
23    person delivering electricity fails to collect the  tax  from
24    the  purchaser,  then  the purchaser shall be required to pay
25    the tax directly to the municipality in the manner prescribed
26    by the municipality.  Persons delivering electricity who file
27    returns pursuant to this paragraph (c) shall, at the time  of
28    filing  such  return,  pay the municipality the amount of the
29    tax collected pursuant to subparagraph 3.
30        (d)  For the purpose of  the  taxes  enumerated  in  this
31    Section:
32        "Gross receipts" means the consideration received for the
33    transmission  of  messages,  the  consideration  received for
34    distributing, supplying, furnishing or selling gas for use or
 
                            -68-               LRB9202600SMdv
 1    consumption  and  not  for  resale,  and  the   consideration
 2    received  for  distributing, supplying, furnishing or selling
 3    water for use or consumption and not for resale, and for  all
 4    services  rendered  in  connection therewith valued in money,
 5    whether received  in  money  or  otherwise,  including  cash,
 6    credit,  services and property of every kind and material and
 7    for all services rendered therewith, and shall be  determined
 8    without  any deduction on account of the cost of transmitting
 9    such messages, without any deduction on account of  the  cost
10    of  the  service,  product or commodity supplied, the cost of
11    materials used, labor or service cost, or any other  expenses
12    whatsoever.   "Gross receipts" shall not include that portion
13    of the consideration received  for  distributing,  supplying,
14    furnishing,   or   selling  gas  or  water  to,  or  for  the
15    transmission of messages for, business enterprises  described
16    in paragraph (e) of this Section to the extent and during the
17    period  in which the exemption authorized by paragraph (e) is
18    in  effect  or  for  school  districts  or  units  of   local
19    government  described  in  paragraph (f) during the period in
20    which the exemption authorized in paragraph (f) is in effect.
21    "Gross  receipts"  shall  not   include   amounts   paid   by
22    telecommunications  retailers  under  the  Telecommunications
23    Municipal Infrastructure Maintenance Fee Act.
24        For  utility  bills  issued  on or after May 1, 1996, but
25    before May 1, 1997,  and  for  receipts  from  those  utility
26    bills,  "gross  receipts"  does  not include one-third of (i)
27    amounts added to customers' bills under Section 9-222 of  the
28    Public  Utilities  Act,  or  (ii) amounts added to customers'
29    bills by taxpayers who are not subject to rate regulation  by
30    the   Illinois   Commerce   Commission  for  the  purpose  of
31    recovering any of the tax liabilities  described  in  Section
32    9-222  of  the Public Utilities Act. For utility bills issued
33    on or after May 1, 1997, but before  May  1,  1998,  and  for
34    receipts  from those utility bills, "gross receipts" does not
 
                            -69-               LRB9202600SMdv
 1    include two-thirds of (i) amounts added to  customers'  bills
 2    under  Section  9-222  of  the  Public Utilities Act, or (ii)
 3    amount added to customers' bills by  taxpayers  who  are  not
 4    subject   to   rate   regulation  by  the  Illinois  Commerce
 5    Commission for the purpose  of  recovering  any  of  the  tax
 6    liabilities   described   in  Section  9-222  of  the  Public
 7    Utilities Act. For utility bills issued on or  after  May  1,
 8    1998,  and  for  receipts  from  those  utility bills, "gross
 9    receipts" does not include (i) amounts  added  to  customers'
10    bills  under  Section  9-222  of the Public Utilities Act, or
11    (ii) amounts added to customers' bills by taxpayers  who  are
12    not  subject  to  rate  regulation  by  the Illinois Commerce
13    Commission for the purpose  of  recovering  any  of  the  tax
14    liabilities   described   in  Section  9-222  of  the  Public
15    Utilities Act.
16        For purposes of this Section "gross receipts"  shall  not
17    include  (i)  amounts added to customers' bills under Section
18    9-221 of the Public Utilities Act, or (ii) charges  added  to
19    customers'  bills  to recover the surcharge imposed under the
20    Emergency  Telephone  System  Act.  This  paragraph  is   not
21    intended  to  nor  does  it make any change in the meaning of
22    "gross receipts" for the purposes of  this  Section,  but  is
23    intended  to  remove possible ambiguities, thereby confirming
24    the  existing  meaning  of  "gross  receipts"  prior  to  the
25    effective date of this amendatory Act of 1995.
26        The words "transmitting messages",  in  addition  to  the
27    usual  and popular meaning of person to person communication,
28    shall  include  the  furnishing,  for  a  consideration,   of
29    services or facilities (whether owned or leased), or both, to
30    persons in connection with the transmission of messages where
31    those  persons  do not, in turn, receive any consideration in
32    connection therewith, but shall not include  such  furnishing
33    of  services or facilities to persons for the transmission of
34    messages to the extent that any such services  or  facilities
 
                            -70-               LRB9202600SMdv
 1    for   the  transmission  of  messages  are  furnished  for  a
 2    consideration, by those persons to  other  persons,  for  the
 3    transmission of messages.
 4        "Person"  as  used  in  this  Section  means  any natural
 5    individual, firm, trust,  estate,  partnership,  association,
 6    joint  stock  company,  joint adventure, corporation, limited
 7    liability company, municipal corporation, the State or any of
 8    its political subdivisions, any State university  created  by
 9    statute,   or   a   receiver,   trustee,  guardian  or  other
10    representative appointed by order of any court.
11        "Person maintaining a place of business  in  this  State"
12    shall  mean  any  person  having  or  maintaining within this
13    State, directly or by a subsidiary  or  other  affiliate,  an
14    office,    generation    facility,   distribution   facility,
15    transmission  facility,  sales  office  or  other  place   of
16    business,  or  any  employee,  agent, or other representative
17    operating within this State under the authority of the person
18    or its subsidiary or other affiliate, irrespective of whether
19    such place of business or agent or  other  representative  is
20    located  in this State permanently or temporarily, or whether
21    such person, subsidiary or other  affiliate  is  licensed  or
22    qualified to do business in this State.
23        "Public utility" shall have the meaning ascribed to it in
24    Section  3-105  of the Public Utilities Act and shall include
25    telecommunications carriers as defined in Section  13-202  of
26    that Act and alternative retail electric suppliers as defined
27    in Section 16-102 of that Act.
28        "Purchase  at  retail"  shall  mean  any  acquisition  of
29    electricity   by   a   purchaser   for  purposes  of  use  or
30    consumption, and not for resale, but shall  not  include  the
31    use  of  electricity  by  a  public  utility  directly in the
32    generation, production, transmission,  delivery  or  sale  of
33    electricity.
34        "Purchaser"  shall  mean any person who uses or consumes,
 
                            -71-               LRB9202600SMdv
 1    within the corporate limits of the municipality,  electricity
 2    acquired in a purchase at retail.
 3        In  the  case  of  persons  engaged  in  the  business of
 4    transmitting messages through the use  of  mobile  equipment,
 5    such   as  cellular  phones  and  paging  systems,  the gross
 6    receipts from the  business  shall  be  deemed  to  originate
 7    within  the  corporate  limits  of a municipality only if the
 8    address to which the bills for the service are sent is within
 9    those corporate limits. If,  however,  that  address  is  not
10    located  within  a municipality that imposes a tax under this
11    Section, then (i) if the party responsible for  the  bill  is
12    not an individual, the gross receipts from the business shall
13    be  deemed  to  originate  within the corporate limits of the
14    municipality where that party's principal place  of  business
15    in Illinois is located, and (ii) if the party responsible for
16    the  bill  is  an  individual,  the  gross  receipts from the
17    business shall be deemed to originate  within  the  corporate
18    limits  of  the  municipality  where  that  party's principal
19    residence in Illinois is located.
20        (e)  Any municipality  that  imposes  taxes  upon  public
21    utilities  or  upon  the  privilege  of  using  or  consuming
22    electricity pursuant to this Section whose territory includes
23    any  part  of  an  enterprise  zone  or  federally designated
24    Foreign Trade Zone or Sub-Zone may, by a majority vote of its
25    corporate authorities, exempt from those taxes for  a  period
26    not  exceeding  20  years  any  specified percentage of gross
27    receipts of public utilities received  from,  or  electricity
28    used or consumed by, business enterprises that:
29             (1)  either  (i)  make  investments  that  cause the
30        creation of a minimum of 200 full-time equivalent jobs in
31        Illinois, (ii) make investments of at least  $175,000,000
32        that  cause  the  creation  of a minimum of 150 full-time
33        equivalent jobs in Illinois, or  (iii)  make  investments
34        that  cause the retention of a minimum of 1,000 full-time
 
                            -72-               LRB9202600SMdv
 1        jobs in Illinois; and
 2             (2)  are either (i) located in  an  Enterprise  Zone
 3        established  pursuant to the Illinois Enterprise Zone Act
 4        or (ii) Department  of  Commerce  and  Community  Affairs
 5        designated  High Impact Businesses located in a federally
 6        designated Foreign Trade Zone or Sub-Zone; and
 7             (3)  are certified by the Department of Commerce and
 8        Community Affairs  as  complying  with  the  requirements
 9        specified in clauses (1) and (2) of this paragraph (e).
10        Upon adoption of the ordinance authorizing the exemption,
11    the  municipal  clerk shall transmit a copy of that ordinance
12    to the Department of Commerce  and  Community  Affairs.   The
13    Department  of Commerce and Community Affairs shall determine
14    whether the business enterprises located in the  municipality
15    meet  the  criteria  prescribed  in  this  paragraph.  If the
16    Department of Commerce and Community Affairs determines  that
17    the  business  enterprises  meet the criteria, it shall grant
18    certification.  The  Department  of  Commerce  and  Community
19    Affairs  shall act upon certification requests within 30 days
20    after receipt of the ordinance.
21        Upon certification of  the  business  enterprise  by  the
22    Department  of Commerce and Community Affairs, the Department
23    of Commerce and Community Affairs shall notify the Department
24    of Revenue of the certification.  The Department  of  Revenue
25    shall  notify the public utilities of the exemption status of
26    the gross receipts received from, and the electricity used or
27    consumed  by,  the  certified  business  enterprises.    Such
28    exemption  status  shall  be  effective within 3 months after
29    certification.
30        (f)  A  municipality  that  imposes  taxes  upon   public
31    utilities  or  upon  the  privilege  of  using  or  consuming
32    electricity  under  this Section and whose territory includes
33    part of another unit of local government or a school district
34    may by ordinance exempt the other unit of local government or
 
                            -73-               LRB9202600SMdv
 1    school district from those taxes.
 2        (g)  The amendment of this Section by Public  Act  84-127
 3    shall  take  precedence  over  any  other  amendment  of this
 4    Section by any  other  amendatory  Act  passed  by  the  84th
 5    General  Assembly  before  the  effective  date of Public Act
 6    84-127.
 7        (h)  In any case in which, before July 1, 1992, a  person
 8    engaged  in the business of transmitting messages through the
 9    use of mobile equipment, such as cellular phones  and  paging
10    systems,  has  determined  the  municipality within which the
11    gross receipts from the business originated by  reference  to
12    the location of its transmitting or switching equipment, then
13    (i)  neither  the  municipality to which tax was paid on that
14    basis nor the taxpayer that paid tax on that basis  shall  be
15    required to rebate, refund, or issue credits for any such tax
16    or  charge collected from customers to reimburse the taxpayer
17    for the tax and (ii) no municipality to which tax would  have
18    been  paid  with  respect  to  those  gross  receipts  if the
19    provisions of this amendatory Act of 1991 had been in  effect
20    before  July  1,  1992,  shall  have  any  claim  against the
21    taxpayer for any amount of the tax.
22    (Source: P.A.  90-16,  eff.  6-16-97;  90-561,  eff.  8-1-98;
23    90-562, eff. 12-16-97; 90-655,  eff.  7-30-98;  91-870,  eff.
24    6-22-00.)

25        (65 ILCS 5/8-11-17 rep.)
26        Section  927.   The Illinois Municipal Code is amended by
27    repealing Section 8-11-17.

28        Section 930.  The Public  Utilities  Act  is  amended  by
29    changing Sections 2-202 and 13-511 as follows:

30        (220 ILCS 5/2-202) (from Ch. 111 2/3, par. 2-202)
31        Sec. 2-202. (a) It is declared to be the public policy of
 
                            -74-               LRB9202600SMdv
 1    this State that in order to maintain and foster the effective
 2    regulation   of  public  utilities  under  this  Act  in  the
 3    interests of the People of the  State  of  Illinois  and  the
 4    public  utilities  as  well,  the public utilities subject to
 5    regulation under this Act and which enjoy  the  privilege  of
 6    operating  as  public utilities in this State, shall bear the
 7    expense of administering this Act by means of a tax  on  such
 8    privilege measured by the annual gross revenue of such public
 9    utilities  in  the  manner  provided  in  this  Section.  For
10    purposes of this Section, "expense of administering this Act"
11    includes  any  costs incident to studies, whether made by the
12    Commission or under contract entered into by the  Commission,
13    concerning   environmental   pollution   problems  caused  or
14    contributed  to  by  public  utilities  and  the  means   for
15    eliminating or abating those problems. Such proceeds shall be
16    deposited in the Public Utility Fund in the State treasury.
17        (b)  All  of  the ordinary and contingent expenses of the
18    Commission incident to the administration of this  Act  shall
19    be   paid   out   of  the  Public  Utility  Fund  except  the
20    compensation of the members of the Commission which shall  be
21    paid  from  the  General  Revenue Fund. Notwithstanding other
22    provisions of this Act to  the  contrary,  the  ordinary  and
23    contingent   expenses  of  the  Commission  incident  to  the
24    administration of the Illinois Commercial Transportation  Law
25    may  be paid from appropriations from the Public Utility Fund
26    through the end of fiscal year 1986.
27        (c)  A tax is imposed upon each public utility subject to
28    the provisions of this Act equal to .08% of its gross revenue
29    for each calendar year  commencing  with  the  calendar  year
30    beginning January 1, 1982, except that the Commission may, by
31    rule,  establish  a  different rate no greater than 0.1%. For
32    purposes of this Section, "gross revenue" shall  not  include
33    revenue  from  the  production,  transmission,  distribution,
34    sale, delivery, or furnishing of electricity. "Gross revenue"
 
                            -75-               LRB9202600SMdv
 1    shall   not   include   amounts  paid  by  telecommunications
 2    retailers    under    the    Telecommunications     Municipal
 3    Infrastructure Maintenance Fee Act.
 4        (d)  Annual  gross  revenue  returns  shall  be  filed in
 5    accordance with paragraph (1) or (2) of this subsection (d).
 6             (1)  Except as provided in  paragraph  (2)  of  this
 7        subsection (d), on or before January 10 of each year each
 8        public  utility  subject  to  the  provisions of this Act
 9        shall file with the Commission an estimated annual  gross
10        revenue  return  containing  an estimate of the amount of
11        its  gross  revenue  for  the  calendar  year  commencing
12        January 1 of said year and a statement of the  amount  of
13        tax  due  for  said  calendar  year  on the basis of that
14        estimate.  Public utilities may also file revised returns
15        containing updated estimates and updated amounts  of  tax
16        due  during  the calendar year. These revised returns, if
17        filed, shall form the basis for  quarterly  payments  due
18        during  the remainder of the calendar year.  In addition,
19        on or before  February  15  of  each  year,  each  public
20        utility  shall  file an amended return showing the actual
21        amount of gross revenues shown by the company's books and
22        records as of December 31 of the previous year. Forms and
23        instructions for such  estimated,  revised,  and  amended
24        returns shall be devised and supplied by the Commission.
25             (2)  Beginning  January 1, 1993, the requirements of
26        paragraph (1) of this subsection (d) shall not  apply  to
27        any  public  utility  in  any calendar year for which the
28        total tax the public utility owes under this  Section  is
29        less than $1,000.  For such public utilities with respect
30        to  such  years,  the  public utility shall file with the
31        Commission, on or before  January  31  of  the  following
32        year,  an  annual gross revenue return for the year and a
33        statement of the amount of  tax due for that year on  the
34        basis  of  such a return. Forms and instructions for such
 
                            -76-               LRB9202600SMdv
 1        returns  and  corrected  returns  shall  be  devised  and
 2        supplied by the Commission.
 3        (e)  All returns submitted to the Commission by a  public
 4    utility  as provided in this subsection (e) or subsection (d)
 5    of this Section shall contain or be  verified  by  a  written
 6    declaration  by  an appropriate officer of the public utility
 7    that the return is made under the penalties of  perjury.  The
 8    Commission  may  audit  each  such  return submitted and may,
 9    under the provisions of Section 5-101 of this Act, take  such
10    measures as are necessary to ascertain the correctness of the
11    returns submitted. The Commission has the power to direct the
12    filing  of  a corrected return by any utility which has filed
13    an incorrect return and to direct the filing of a  return  by
14    any   utility  which  has  failed  to  submit  a  return.   A
15    taxpayer's signing a fraudulent return under this Section  is
16    perjury,  as  defined in Section 32-2 of the Criminal Code of
17    1961.
18        (f)  (1)  For all public utilities subject  to  paragraph
19    (1)  of  subsection  (d),  at least one quarter of the annual
20    amount of tax due under subsection (c) shall be paid  to  the
21    Commission  on  or  before  the  tenth day of January, April,
22    July, and October of the calendar year subject  to  tax.   In
23    the  event that an adjustment in the amount of tax due should
24    be necessary as a result of  the  filing  of  an  amended  or
25    corrected  return  under  subsection (d) or subsection (e) of
26    this Section, the amount of any deficiency shall be  paid  by
27    the  public  utility  together  with the amended or corrected
28    return and the amount of any excess shall, after  the  filing
29    of  a  claim for credit by the public utility, be returned to
30    the public utility in the form of a credit memorandum in  the
31    amount of such excess or be refunded to the public utility in
32    accordance  with  the  provisions  of  subsection (k) of this
33    Section.  However, if such deficiency or excess is less  than
34    $1,  then  the public utility need not pay the deficiency and
 
                            -77-               LRB9202600SMdv
 1    may not claim a credit.
 2        (2)  Any public  utility  subject  to  paragraph  (2)  of
 3    subsection  (d)  shall  pay  the  amount  of  tax  due  under
 4    subsection (c) on or before January 31 next following the end
 5    of  the  calendar  year subject to tax.  In the event that an
 6    adjustment in the amount of tax due should be necessary as  a
 7    result  of  the filing of a corrected return under subsection
 8    (e), the amount of any deficiency shall be paid by the public
 9    utility at the time the corrected return is filed. Any excess
10    tax payment by the public utility shall  be  returned  to  it
11    after  the  filing  of  a  claim for credit, in the form of a
12    credit memorandum in the amount of the excess.   However,  if
13    such deficiency or excess is less than $1, the public utility
14    need not pay the deficiency and may not claim a credit.
15        (g)  Each  installment  or  required  payment  of the tax
16    imposed by subsection (c) becomes delinquent at  midnight  of
17    the  date  that  it  is  due.  Failure  to  make a payment as
18    required by this Section shall result in the imposition of  a
19    late payment penalty, an underestimation penalty, or both, as
20    provided  by this subsection.  The late payment penalty shall
21    be the greater of:
22             (1)  $25 for each month or portion of a  month  that
23        the installment or required payment is unpaid or
24             (2)  an  amount equal to the difference between what
25        should have been paid on the due  date,  based  upon  the
26        most recently filed estimate, and what was actually paid,
27        times  1%,  for each month or portion of a month that the
28        installment  or  required  payment  goes  unpaid.    This
29        penalty  may  be  assessed  as soon as the installment or
30        required payment becomes delinquent.
31        The underestimation penalty shall apply to  those  public
32    utilities  subject  to  paragraph  (1)  of subsection (d) and
33    shall be calculated after the filing of the  amended  return.
34    It shall be imposed if the amount actually paid on any of the
 
                            -78-               LRB9202600SMdv
 1    dates  specified  in  subsection (f) is not equal to at least
 2    one-fourth of the amount actually due for the year, and shall
 3    equal the greater of:
 4             (1)  $25 for each month or portion of a  month  that
 5        the amount due is unpaid or
 6             (2)  an  amount equal to the difference between what
 7        should have been paid, based on the amended  return,  and
 8        what  was  actually  paid  as  of  the  date specified in
 9        subsection (f), times a percentage equal to 1/12  of  the
10        sum  of  10% and the percentage most recently established
11        by the Commission for interest to  be  paid  on  customer
12        deposits  under  83 Ill. Adm. Code 280.70(e)(1), for each
13        month or portion of a month  that  the  amount  due  goes
14        unpaid,  except  that no underestimation penalty shall be
15        assessed if the amount actually paid on each of the dates
16        specified in subsection (f) was based on an  estimate  of
17        gross  revenues  at  least  equal  to  the  actual  gross
18        revenues  for  the  previous  year.  The  Commission  may
19        enforce  the  collection of any delinquent installment or
20        payment, or portion thereof by legal  action  or  in  any
21        other  manner  by  which  the collection of debts due the
22        State of Illinois may be enforced under the laws of  this
23        State.  The executive director or his designee may excuse
24        the payment of an assessed penalty if he determines  that
25        enforced collection of the penalty would be unjust.
26        (h)  All  sums  collected  by  the  Commission  under the
27    provisions of this Section shall be paid promptly  after  the
28    receipt  of  the  same,  accompanied  by a detailed statement
29    thereof, into the Public Utility Fund in the State treasury.
30        (i)  During the month of  October  of  each  odd-numbered
31    year the Commission shall:
32             (1)  determine the amount of all moneys deposited in
33        the  Public  Utility  Fund  during  the  preceding fiscal
34        biennium plus the balance, if any, in that  fund  at  the
 
                            -79-               LRB9202600SMdv
 1        beginning of that biennium;
 2             (2)  determine the sum total of the following items:
 3        (A)    all   moneys   expended   or   obligated   against
 4        appropriations made from the Public Utility  Fund  during
 5        the  preceding  fiscal  biennium, plus (B) the sum of the
 6        credit memoranda  then  outstanding  against  the  Public
 7        Utility Fund, if any; and
 8             (3)  determine  the amount, if any, by which the sum
 9        determined as provided in item  (1)  exceeds  the  amount
10        determined as provided in item (2).
11        If  the amount determined as provided in item (3) of this
12    subsection exceeds  $2,500,000,  the  Commission  shall  then
13    compute  the  proportionate amount, if any, which (x) the tax
14    paid hereunder by each utility during the preceding biennium,
15    and (y) the amount paid into the Public Utility  Fund  during
16    the  preceding biennium by the Department of Revenue pursuant
17    to Sections 2-9 and 2-11 of the Electricity Excise  Tax  Law,
18    bears  to  the  difference  between  the amount determined as
19    provided in item (3) of this subsection (i)  and  $2,500,000.
20    The   Commission   shall   cause   the  proportionate  amount
21    determined  with  respect  to   payments   made   under   the
22    Electricity Excise Tax Law to be transferred into the General
23    Revenue  Fund  in  the State Treasury, and notify each public
24    utility that it may file during the 3 month period after  the
25    date of notification a claim for credit for the proportionate
26    amount  determined with respect to payments made hereunder by
27    the public utility. If the proportionate amount is less  than
28    $10,  no  notification will be sent by the Commission, and no
29    right to a claim exists as to that amount. Upon the filing of
30    a claim for credit within the period provided, the Commission
31    shall issue a credit memorandum in such amount to such public
32    utility. Any claim for credit filed after the period provided
33    for in this Section is void.
34        (j)  Credit memoranda issued pursuant to  subsection  (f)
 
                            -80-               LRB9202600SMdv
 1    and  credit  memoranda  issued  after notification and filing
 2    pursuant to subsection (i) may be  applied  for  the  2  year
 3    period  from the date of issuance, against the payment of any
 4    amount due during  that  period  under  the  tax  imposed  by
 5    subsection  (c),  or,  subject  to  reasonable  rule  of  the
 6    Commission  including  requirement  of  notification,  may be
 7    assigned to any other public utility  subject  to  regulation
 8    under this Act. Any application of credit memoranda after the
 9    period provided for in this Section is void.
10        (k)  The  chairman  or executive director may make refund
11    of fees, taxes or other charges whenever he  shall  determine
12    that  the  person  or  public  utility will not be liable for
13    payment of such fees, taxes or charges  during  the  next  24
14    months  and  he  determines  that  the  issuance  of a credit
15    memorandum would be unjust.
16    (Source: P.A. 90-561, eff. 8-1-98; 90-562, 12-16-97;  90-655,
17    eff. 7-30-98.)

18        (220 ILCS 5/13-511)
19        (Section scheduled to be repealed on July 1, 2001)
20        Sec. 13-511.  Telecommunications Municipal Infrastructure
21    Maintenance  Fee  Act; rate adjustments.  With respect to any
22    telecommunications retailer that is regulated by the Illinois
23    Commerce Commission, the Commission  shall  order  such  rate
24    adjustments   as  shall  be  necessary  to  assure  that  the
25    implementation   of    the    Telecommunications    Municipal
26    Infrastructure  Maintenance Fee Act, including the payment of
27    the   State   infrastructure   maintenance   fee,    optional
28    infrastructure  maintenance fee, and municipal infrastructure
29    maintenance fee, if any, net of (1) the  termination  of  any
30    fee,  license  fee,  rent,  or  lease  payment subject to the
31    Telecommunications Municipal Infrastructure  Maintenance  Fee
32    Act,  and  (2) the repeal of any invested capital tax subject
33    to   the    Telecommunications    Municipal    Infrastructure
 
                            -81-               LRB9202600SMdv
 1    Maintenance  Fee Act, shall have no significant impact on the
 2    net  income  of  each   such   telecommunications   retailer.
 3    Beginning  with  the effective date of the Telecommunications
 4    Municipal  Infrastructure  Maintenance  Fee  Act,  each  such
 5    telecommunications retailer shall maintain such  records  and
 6    accounts  as will enable the Commission to make such findings
 7    and determinations as are necessary to such order.
 8    (Source: P.A. 90-154, eff. 1-1-98.)

 9        Section 935.  The Telephone Company  Act  is  amended  by
10    changing Section 4 as follows:

11        (220 ILCS 65/4) (from Ch. 134, par. 20)
12        Sec.  4. Right of condemnation.  Every telecommunications
13    telecommunciations    carrier    as    defined     in     the
14    Telecommunications  Municipal  Infrastructure Maintenance Fee
15    Act may, when it shall be  necessary  for  the  construction,
16    maintenance,     alteration     or     extension    of    its
17    telecommunications system, or any part thereof,  enter  upon,
18    take  or  damage  private property in the manner provided for
19    in, and the compensation therefor shall  be  ascertained  and
20    made in conformity to the provisions of the Telegraph Act and
21    every  telecommunications carrier is authorized to construct,
22    maintain, alter  and  extend  its  poles,  wires,  and  other
23    appliances  as  a  proper use of highways, along, upon, under
24    and across any highway, street,  alley,  public  right-of-way
25    dedicated  or commonly used for utility purposes, or water in
26    this State, but so as not to incommode the public in the  use
27    thereof:  Provided,  that nothing in this act shall interfere
28    with the control now vested in cities, incorporated towns and
29    villages in relation to the regulation of the  poles,  wires,
30    cables  and  other  appliances, and provided, that before any
31    such lines shall  be  constructed  along  any  such  highway,
32    street, alley, public right-of-way dedicated or commonly used
 
                            -82-               LRB9202600SMdv
 1    for  utility  purposes,  or water it shall be the duty of the
 2    telecommunications carrier proposing to  construct  any  such
 3    line,   to  give  (in  the  case  of  cities,  villages,  and
 4    incorporated towns)  to  the  corporate  authorities  of  the
 5    municipality   or  their  designees  (hereinafter,  municipal
 6    corporate authorities) or (in other  cases)  to  the  highway
 7    commissioners  having  jurisdiction and control over the road
 8    or part thereof along and over which such line is proposed to
 9    be constructed, notice in  writing  in  the  form  of  plans,
10    specifications,   and   documentation   of  the  purpose  and
11    intention of the company to  construct  such  line  over  and
12    along   the   highway,  street,  alley,  public  right-of-way
13    dedicated or commonly used for utility  purposes,  or  water,
14    which notice shall be served at least 10 days before the line
15    shall  be  placed  or constructed over and along the highway,
16    street, alley, public right-of-way dedicated or commonly used
17    for utility purposes, or water (30 days in the  case  of  any
18    notice  providing for excavation relating to new construction
19    in a  public  highway,  street,  alley,  public  right-of-way
20    dedicated  or  commonly used for utility purposes, or water);
21    and upon the giving of the notice it shall be the duty of the
22    municipal corporate authorities or the highway  commissioners
23    to specify the portion of such highway, street, alley, public
24    right-of-way dedicated or commonly used for utility purposes,
25    or  water  upon  which  the  line  may  be  placed, used, and
26    constructed, and it  shall  thereupon  be  the  duty  of  the
27    telecommunications   retailer   to   provide   the  municipal
28    authorities or highway commissioners with any and all  plans,
29    specifications,  and documentation available and to construct
30    its line in accordance with such specifications; but  in  the
31    event that the municipal corporate authorities or the highway
32    commissioners  fail  to  provide such specification within 10
33    days after the service of such notice, (25 days in  the  case
34    of   excavation   relating  to  new  construction)  then  the
 
                            -83-               LRB9202600SMdv
 1    telecommunications  retailer,  without   such   specification
 2    having  been  made,  may  proceed to place and erect its line
 3    along  the  highway,  street,  alley,   public   right-of-way
 4    dedicated  or commonly used for utility purposes, or water by
 5    placing its posts, poles and abutments so as not to interfere
 6    with other proper uses of the highway, street, alley,  public
 7    right-of-way dedicated or commonly used for utility purposes,
 8    or   water.   The  telecommunications  carrier  proposing  to
 9    construct any such line shall comply with the  provisions  of
10    Section  9-113  of  the Illinois Highway Code. Provided, that
11    the telecommunications carrier shall not have  the  right  to
12    condemn  any  portion  of  the  right-of-way  of any railroad
13    company except as much thereof as is necessary to  cross  the
14    same.
15        The  Illinois  Commerce  Commission  may adopt reasonable
16    rules governing the negotiation procedures that are used by a
17    telecommunications     carrier     during     precondemnation
18    negotiations for the purchase  of    land  rights-of-way  and
19    easements,  including procedures for providing information to
20    the public and affected landowners concerning the project and
21    the right-of-way easements sought in connection therewith.
22        Such  rules  may  be  made  applicable   to   interstate,
23    competitive    intrastate   and   noncompetitive   intrastate
24    facilities, without regard to whether such facilities or  the
25    telecommunications carrier proposing to construct and operate
26    them  would  otherwise  be  subject  to the Illinois Commerce
27    Commission's jurisdiction under The Public Utilities Act,  as
28    now  or  hereafter amended. However, as to facilities used to
29    provide  exclusively  interstate  services   or   competitive
30    intrastate  services or both, nothing in this Section confers
31    any power upon the Commission (i) to require  the  disclosure
32    of  proprietary, competitively sensitive, or cost information
33    or information not known to the  telecommunications  carrier,
34    (ii)  to  determine  whether,  or  conduct hearings regarding
 
                            -84-               LRB9202600SMdv
 1    whether, any proposed fiber optic or other facilities  should
 2    or  should  not  be  constructed  and  operated,  or (iii) to
 3    determine or specify, or  conduct  hearings  concerning,  the
 4    price  or  other  terms  or conditions of the purchase of the
 5    right-of-way easements sought.  With  respect  to  facilities
 6    used  to  provide  any  intrastate services classified in the
 7    condemnor's tariff as noncompetitive under Section 13-502  of
 8    The  Public  Utilities  Act,  the rulemaking powers conferred
 9    upon the Commission under this Section are in addition to any
10    rulemaking powers arising under The Public Utilities Act.
11        No telecommunications carrier shall exercise the power to
12    condemn private property until  it  has  first  substantially
13    complied  with such rules with respect to the property sought
14    to be condemned.  If such rules call for providing notice  or
15    information  before  or  during  negotiations,  a  failure to
16    provide such notice or information  shall  not  constitute  a
17    waiver  of  the  rights  granted  in  this  Section,  but the
18    telecommunications carrier shall be liable for all reasonable
19    attorney's  fees  of  that  landowner  resulting  from   such
20    failure.
21    (Source: P.A. 90-154, eff. 1-1-98.)

22        Section  999.   Effective date.  This Act takes effect on
23    January 1, 2002, except that this  Section  and  the  changes
24    made   to  Section  5  of  the  Telecommunications  Municipal
25    Infrastructure Maintenance Fee Act take effect upon  becoming
26    law,  and  except  that the changes made to the State Revenue
27    Sharing Act,  the  Telecommunications  Excise  Tax  Act,  the
28    Telecommunications  Municipal  Infrastructure Maintenance Fee
29    Act,  the  Emergency  Telephone  System  Act,  the   Illinois
30    Municipal  Code,  the Public Utilities Act, and the Telephone
31    Company Act take effect on July 1, 2002.
 
                            -85-               LRB9202600SMdv
 1                                INDEX
 2               Statutes amended in order of appearance
 3                               New Act
 4    30 ILCS 115/12            from Ch. 85, par. 616
 5    35 ILCS 630/2             from Ch. 120, par. 2002
 6    35 ILCS 630/6             from Ch. 120, par. 2006
 7    35 ILCS 630/15            from Ch. 120, par. 2015
 8    35 ILCS 635/1
 9    35 ILCS 635/5
10    35 ILCS 635/10
11    35 ILCS 635/15
12    35 ILCS 635/25
13    35 ILCS 635/27
14    35 ILCS 635/27.35
15    35 ILCS 635/30
16    35 ILCS 635/20 rep.
17    50 ILCS 750/15.3          from Ch. 134, par. 45.3
18    65 ILCS 5/8-11-2          from Ch. 24, par. 8-11-2
19    65 ILCS 5/8-11-17 rep.
20    220 ILCS 5/2-202          from Ch. 111 2/3, par. 2-202
21    220 ILCS 5/13-511
22    220 ILCS 65/4             from Ch. 134, par. 20

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