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91_HB0287enr HB0287 Enrolled LRB9101576JSpc 1 AN ACT to amend the Public Utilities Act by changing 2 Section 13-301. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Public Utilities Act is amended by 6 changing Section 13-301 as follows: 7 (220 ILCS 5/13-301) (from Ch. 111 2/3, par. 13-301) 8 (Section scheduled to be repealed on July 1, 2001) 9 Sec. 13-301. Consistent with the findings and policy 10 established in paragraph (a) of Section 13-102 and paragraph 11 (a) of Section 13-103, and in order to ensure the attainment 12 of such policies, the Commission shall: 13 (a) participate in all federal programs intended to 14 preserve or extend universal telecommunications service, 15 unless such programs would place cost burdens on Illinois 16 customers of telecommunications services in excess of the 17 benefits they would receive through participation, provided, 18 however, the Commission shall not approve or permit the 19 imposition of any surcharge or other fee designed to 20 subsidize or provide a waiver for subscriber line charges; 21 and shall report on such programs together with an assessment 22 of their adequacy and the advisability of participating 23 therein in its annual report to the General Assembly, or more 24 often as necessary; 25 (b) establish a program to monitor the level of 26 telecommunications subscriber connection within each exchange 27 in Illinois, and shall report the results of such monitoring 28 and any actions it has taken or recommends be taken to 29 maintain and increase such levels in its annual report to the 30 General Assembly, or more often if necessary; 31 (c) order all telecommunications carriers offering or HB0287 Enrolled -2- LRB9101576JSpc 1 providing local exchange telecommunications service to 2 propose low-cost or budget service tariffs and any other rate 3 design or pricing mechanisms designed to facilitate customer 4 access to such telecommunications service, and shall after 5 notice and hearing, implement any such proposals which it 6 finds likely to achieve such purpose; 7 (d) investigate the necessity of and, if appropriate, 8 establishfeasibility of establishinga universal service 9 support fund from which local exchange telecommunications 10 carriers who pursuant to the Twenty-Seventh Interim Order of 11 the Commission in Docket No. 83-0142 or the orders of the 12 Commission in Docket No. 97-0621 and Docket No. 98-0679 13 received funding andoffering or providing local exchange14telecommunications service,whose economic costs of providing 15 services for which universal service support may be made 16 availablesuch serviceexceed the affordable rate established 17 by the Commission for such services may be eligible to 18average cost of providing such service in Illinois, could19 receive support, less any federal universal service support 20 received for the same or similar costs of providing the 21 supported services; provided, however, that if a universal 22 service support fund is established, the Commission shall 23 require that all costs of the fund be recovered from all 24 local exchange and interexchange telecommunications carriers 25 certificated in Illinois on a competitively neutral and 26 nondiscriminatory basis. In establishing any such universal 27 service support fund, the Commission shall, in addition to 28 the determination of costs for supported services, consider 29 and make findings pursuant to paragraphs (1), (2), and (4) of 30 item (e) of this Section. Proxy cost, as determined by the 31 Commission, may be used for this purpose. In determining 32 cost recovery for any universal service support fund, the 33 Commission shall not permit recovery of such costs from 34 another certificated carrier for any service purchased and HB0287 Enrolled -3- LRB9101576JSpc 1 used solely as an input to a service provided to such 2 certificated carrier's retail customersrevenues intended to3mitigate the price impact on customers resulting from the4high or rising cost of such service; and shall include the5results and findings of such investigation together with any6recommendations for legislative action in its first annual7report to the General Assembly in 1986; and 8 (e) investigate the necessity of and, if appropriate, 9 establish a universal service support fund in addition to any 10 fund that may be established pursuant to item (d) of this 11 Section; provided, however, that if a telecommunications 12 carrier receives universal service support pursuant to item 13 (d) of this Section, that telecommunications carrier shall 14 not receive universal service support pursuant to this item. 15 Recipients of any universal service support funding created 16 by this item shall be "eligible" telecommunications carriers, 17 as designated by the Commission in accordance with 47 U.S.C. 18 214(e)(2). Eligible telecommunications carriers providing 19 local exchange telecommunications service may be eligible to 20 receive support for such services, less any federal universal 21 service support received for the same or similar costs of 22 providing the supported services. If a fund is established, 23 the Commission shall require that the costs of such fund be 24 recovered from all telecommunications carriers, with the 25 exception of wireless carriers who are providers of two-way 26 cellular telecommunications service and who have not been 27 designated as eligible telecommunications carriers, on a 28 competitively neutral and non-discriminatory basis. In any 29 order creating a fund pursuant to this item, the Commission, 30 after notice and hearing, shall: 31 (1) Define the group of services to be declared 32 "supported telecommunications services" that constitute 33 "universal service". This group of services shall, at a 34 minimum, include those services as defined by the Federal HB0287 Enrolled -4- LRB9101576JSpc 1 Communications Commission and as from time to time 2 amended. In addition, the Commission shall consider the 3 range of services currently offered by telecommunications 4 carriers offering local exchange telecommunications 5 service, the existing rate structures for the supported 6 telecommunications services, and the telecommunications 7 needs of Illinois consumers in determining the supported 8 telecommunications services. The Commission shall, from 9 time to time or upon request, review and, if appropriate, 10 revise the group of Illinois supported telecommunications 11 services and the terms of the fund to reflect changes or 12 enhancements in telecommunications needs, technologies, 13 and available services. 14 (2) Identify all implicit subsidies contained in 15 rates or charges of incumbent local exchange carriers, 16 including all subsidies in interexchange access charges, 17 and determine how such subsidies can be made explicit by 18 the creation of the fund. 19 (3) Identify the incumbent local exchange carriers' 20 economic costs of providing the supported 21 telecommunications services. 22 (4) Establish an affordable price for the supported 23 telecommunications services for the respective incumbent 24 local exchange carrier. The affordable price shall be no 25 less than the rates in effect at the time the Commission 26 creates a fund pursuant to this item. The Commission may 27 establish and utilize indices or models for updating the 28 affordable price for supported telecommunications 29 services. 30 (5) Identify the telecommunications carriers from 31 whom the costs of the fund shall be recovered and the 32 mechanism to be used to determine and establish a 33 competitively neutral and non-discriminatory funding 34 basis. From time to time, or upon request, the HB0287 Enrolled -5- LRB9101576JSpc 1 Commission shall consider whether, based upon changes in 2 technology or other factors, additional 3 telecommunications providers should contribute to the 4 fund. The Commission shall establish the basis upon 5 which telecommunications carriers contributing to the 6 fund shall recover contributions on a competitively 7 neutral and non-discriminatory basis. In determining 8 cost recovery for any universal support fund, the 9 Commission shall not permit recovery of such costs from 10 another certificated carrier for any service purchased 11 and used solely as an input to a service provided to such 12 certificated carriers' retail customers. 13 (6) Approve a plan for the administration and 14 operation of the fund by a neutral third party consistent 15 with the requirements of this item. 16 No fund shall be created pursuant to this item until 17 existing implicit subsidies, including, but not limited to, 18 those subsidies contained in interexchange access charges, 19 have been identified and eliminated through revisions to 20 rates or charges. Prior to May 1, 2000, such revisions to 21 rates or charges to eliminate implicit subsidies shall occur 22 contemporaneously with any funding established pursuant to 23 this item. However, if the Commission does not establish a 24 universal service support fund by May 1, 2000, the Commission 25 shall not be prevented from entering an order or taking other 26 actions to reduce or eliminate existing subsidies as well as 27 considering the effect of such reduction or elimination on 28 local exchange carriers. 29(e)Any telecommunications carrier providing local 30 exchange telecommunications service which offers to its local 31 exchange customers a choice of two or more local exchange 32 telecommunications service offerings shall provide, to any 33 such customer requesting it, once a year without charge, a 34 report describing which local exchange telecommunications HB0287 Enrolled -6- LRB9101576JSpc 1 service offering would result in the lowest bill for such 2 customer's local exchange service, based on such customer's 3 calling pattern and usage for the previous 6 months. At 4 least once a year, each such carrier shall provide a notice 5 to each of its local exchange telecommunications service 6 customers describing the availability of this report and the 7 specific procedures by which customers may receive it. Such 8 report shall only be available to current and future 9 customers who have received at least 6 months of continuous 10 local exchange service from such carrier. 11 (Source: P.A. 87-445.) 12 Section 99. Effective date. This Act takes effect upon 13 becoming law.