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| Public Act 103-0360
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| HB3808 Enrolled | LRB103 30973 AMQ 57562 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Utilities Act is amended by changing |
Sections 21-201 and 21-801 as follows:
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(220 ILCS 5/21-201) |
(Section scheduled to be repealed on December 31, 2026) |
Sec. 21-201. Definitions. As used in this Article: |
(a) "Access" means that the cable or video provider is |
capable of providing cable services or video services at the |
household address using any technology, other than |
direct-to-home satellite service, that
provides 2-way
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broadband Internet capability and video programming, content, |
and functionality, regardless of whether any customer has |
ordered service or whether the owner or landlord or other |
responsible person has granted access to the household. If |
more than one technology is used, the technologies shall |
provide similar 2-way
broadband Internet accessibility and |
similar video programming. |
(b) "Basic cable or video service" means any cable or |
video service offering or tier that
includes the |
re |
transmission of local television broadcast signals. |
(c) "Broadband service" means a high speed service |
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connection to the public Internet capable of supporting, in at |
least one direction, a speed in excess of 200 kilobits per |
second (kbps) to the network demarcation point at the |
subscriber's premises. |
(d) "Cable operator" means that term as defined in item |
(5) of 47 U.S.C. 522. |
(e) "Cable service" means that term as defined in item (6) |
of 47 U.S.C. 522. |
(f) "Cable system" means that term as defined in item (7) |
of 47 U.S.C. 522. |
(g) "Commission" means the Illinois Commerce Commission. |
(h) "Competitive cable service or video service provider" |
means a person or entity that is providing or seeks to provide |
cable service or video service in an area where there is at |
least one incumbent cable operator. |
(i) "Designated market area" means a designated market |
area, as determined by Nielsen Media Research and published in |
the 1999-2000 Nielsen Station Index Directory and Nielsen |
Station Index United States Television Household Estimates or |
any successor publication. For any designated market area that |
crosses State lines, only households in the portion of the |
designated market area that is located within the holder's |
telecommunications service area in the State where access to |
video service will be offered shall be considered. |
(j) "Footprint" means the geographic area designated by |
the cable service or video service provider as the geographic |
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area in which it will offer cable services or video services |
during the period of its State-issued authorization. Each |
footprint shall be identified in terms of either (i) |
exchanges, as that term is defined in Section 13-206 of this |
Act; (ii) a collection of United States Census Bureau Block |
numbers (13 digit); (iii) if the area is smaller than the areas |
identified in either (i) or (ii), by geographic information |
system digital boundaries meeting or exceeding national map |
accuracy standards; or (iv) local units of government. |
(k) "Holder" means a person or entity that has received |
authorization to offer or provide cable or video service from |
the Commission pursuant to Section 21-401 of this Article. |
(l) "Household" means a house, an apartment, a mobile |
home, a group of rooms, or a single room that is intended for |
occupancy as separate living quarters. Separate living |
quarters are those in which the occupants live and eat |
separately from any other persons in the building and that
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have direct access from the outside of the building or through |
a common hall. This definition is consistent with the United |
States Census Bureau, as that definition may be amended |
thereafter. |
(m) "Incumbent cable operator" means a person or entity |
that provided cable services or video services in a particular |
area under a franchise agreement with a local unit of |
government pursuant to Section 11-42-11 of the Illinois |
Municipal Code (65 ILCS 5/11-42-11) or Section 5-1095 of the |
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Counties Code (55 ILCS 5/5-1095) on January 1, 2007. |
(n) "Local franchising authority" means the local unit of |
government that has or requires a franchise with a cable |
operator, a provider of cable services, or a provider of video |
services to construct or operate a cable or video system or to |
offer cable services or video services under Section 11-42-11 |
of the Illinois Municipal Code (65 ILCS 5/11-42-11) or Section |
5-1095 of the Counties Code (55 ILCS 5/5-1095). |
(o) "Local unit of government" means a city, village, |
incorporated town, or county. |
(p) "Low-income household" means those residential |
households located within the holder's existing telephone |
service area where the average annual household income is less |
than $35,000, based on the United States Census Bureau |
estimates adjusted annually to reflect rates of change and |
distribution. |
(q) "Public rights-of-way" means the areas on, below, or |
above a public roadway, highway, street, public sidewalk, |
alley, waterway, or utility easements dedicated for compatible |
uses. |
(r) "Service" means the provision of cable service
or |
video service
to subscribers and the interaction of |
subscribers with the person or entity that has received |
authorization to offer or provide cable or video service from |
the Commission pursuant to Section 21-401 of this Act. |
(s) "Service provider fee" means the amount paid under |
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Section 21-801 of this Act
by the holder to a municipality, or |
in the case of an unincorporated service area to a county, for |
service areas within its territorial jurisdiction, but under |
no circumstances shall the service provider fee be paid to |
more than one local unit of government for the same portion of |
the holder's service area. |
(t) "Telecommunications service area" means the area |
designated by the Commission as the area in which a |
telecommunications company was obligated to provide |
non-competitive local telephone service as of February 8, 1996 |
as incorporated into Section 13-202.5 of this Act. |
(u) "Video programming" means that term as defined in item |
(20) of 47 U.S.C. 522. |
(v) "Video service" means video programming provided by a |
video service provider and subscriber interaction, if any, |
that is required for the selection or use of such video |
programming services, and that
is provided through wireline |
facilities located at least in part in the public |
rights-of-way without regard to delivery technology, including |
Internet protocol technology. This definition does not include |
the following: (1) any video programming provided by a |
commercial mobile service provider defined in subsection (d) |
of 47 U.S.C. 332; (2) direct-to-home satellite services |
defined in subsection (v) of 47 U.S.C. 303;
or (3) any video |
programming provided solely as part of, and accessed via a , |
service that enables users to access content, information, |
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electronic mail, or other services offered over the public |
Internet, including Internet streaming content. |
(Source: P.A. 100-20, eff. 7-1-17.)
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(220 ILCS 5/21-801) |
(Section scheduled to be repealed on December 31, 2026) |
Sec. 21-801. Applicable fees payable to the local unit of |
government. |
(a) Prior to offering cable service or video service in a |
local unit of government's jurisdiction, a holder shall notify |
the local unit of government. The notice shall be given to the |
local unit of government at least 10 days before the holder |
begins to offer cable service or video service within the |
boundaries of that local unit of government. |
(b) In any local unit of government in which a holder |
offers cable service or video service on a commercial basis, |
the holder shall be liable for and pay the service provider fee |
to the local unit of government. The local unit of government |
shall adopt an ordinance imposing such a fee. The holder's |
liability for the fee shall commence on the first day of the |
calendar month that is at least 30 days after the holder |
receives such ordinance. For any such ordinance adopted on or |
after the effective date of this amendatory Act of the 99th |
General Assembly, the holder's liability shall commence on the |
first day of the calendar month that is at least 30 days after |
the adoption of such ordinance. The ordinance shall be sent by |
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mail, postage prepaid, to the address listed on the holder's |
application provided to the local unit of government pursuant |
to item (6) of subsection (b) of Section 21-401 of this Act. |
The fee authorized by this Section shall be 5% of gross |
revenues or the same as the fee paid to the local unit of |
government by any incumbent cable operator providing cable |
service. The payment of the service provider fee shall be due |
on a quarterly basis, 45 days after the close of the calendar |
quarter. If mailed, the fee is considered paid on the date it |
is postmarked. Except as provided in this Article, the local |
unit of government may not demand any additional fees or |
charges from the holder and may not demand the use of any other |
calculation method other than allowed under this Article. |
(c) For purposes of this Article, "gross revenues" means |
all consideration of any kind or nature, including, without |
limitation, cash, credits, property, and in-kind contributions |
received by the holder for the operation of a cable or video |
system to provide cable service or video service within the |
holder's cable service or video service area within the local |
unit of government's jurisdiction. |
(1) Gross revenues shall include the following: |
(i) Recurring charges for cable service or video |
service. |
(ii) Event-based charges for cable service or |
video service, including, but not limited to, |
pay-per-view and video-on-demand charges. |
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(iii) Rental of set-top
boxes and other cable |
service or video service equipment. |
(iv) Service charges related to the provision of |
cable service or video service, including, but not |
limited to, activation, installation, and repair |
charges. |
(v) Administrative charges related to the |
provision of cable service or video service, including |
but not limited to service order and service |
termination charges. |
(vi) Late payment fees or charges, insufficient |
funds check charges, and other charges assessed to |
recover the costs of collecting delinquent payments. |
(vii) A pro rata portion of all revenue derived by |
the holder or its affiliates pursuant to compensation |
arrangements for advertising or for promotion or |
exhibition of any products or services derived from |
the operation of the holder's network to provide cable |
service or video service within the local unit of |
government's jurisdiction. The allocation shall be |
based on the number of subscribers in the local unit of |
government divided by the total number of subscribers |
in relation to the relevant regional or national |
compensation arrangement. |
(viii) Compensation received by the holder that is |
derived from the operation of the holder's network to |
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provide cable service or video service with respect to |
commissions that are received by the holder as |
compensation for promotion or exhibition of any |
products or services on the holder's network, such as |
a "home shopping" or similar channel, subject to item |
(ix) of this paragraph (1). |
(ix) In the case of a cable service or video |
service that is bundled or integrated functionally |
with other services, capabilities, or applications, |
the portion of the holder's revenue attributable to |
the other services, capabilities, or applications |
shall be included in gross revenue unless the holder |
can reasonably identify the division or exclusion of |
the revenue from its books and records that are kept in |
the regular course of business. |
(x) The service provider fee permitted by |
subsection (b) of this Section. |
(2) Gross revenues do not include any of the |
following: |
(i) Revenues not actually received, even if |
billed, such as bad debt, subject to item (vi) of |
paragraph (1) of this subsection (c). |
(ii) Refunds, discounts, or other price |
adjustments that reduce the amount of gross revenues |
received by the holder of the State-issued |
authorization to the extent the refund, rebate, |
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credit, or discount is attributable to cable service |
or video service. |
(iii) Regardless of whether the services are |
bundled, packaged, or functionally integrated with |
cable service or video service, any revenues received |
from services not classified as cable service or video |
service, including, without limitation, revenue |
received from telecommunications services, information |
services, or the provision of directory or Internet |
advertising, including yellow pages, white pages, |
banner advertisement, and electronic publishing, or |
any other revenues attributed by the holder to |
noncable service or nonvideo service in accordance |
with the holder's books and records and records kept |
in the regular course of business and any applicable |
laws, rules, regulations, standards, or orders. |
(iv) The sale of cable services or video services |
for resale in which the purchaser is required to |
collect the service provider fee from the purchaser's |
subscribers to the extent the purchaser certifies in |
writing that it will resell the service within the |
local unit of government's jurisdiction and pay the |
fee permitted by subsection (b) of this Section
with |
respect to the service. |
(v) Any tax or fee of general applicability |
imposed upon the subscribers or the transaction by a |
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city, State, federal, or any other governmental entity |
and collected by the holder of the State-issued |
authorization and required to be remitted to the |
taxing entity, including sales and use taxes. |
(vi) Security deposits collected from subscribers. |
(vii) Amounts paid by subscribers to "home |
shopping" or similar vendors for merchandise sold |
through any home shopping channel offered as part of |
the cable service or video service. |
(viii) Any revenues received from video |
programming accessed via a service that enables users |
to access content, information, electronic mail, or |
other services offered over the Internet, including |
Internet streaming content. |
(3) Revenue of an affiliate of a holder shall be |
included in the calculation of gross revenues to the |
extent the treatment of the revenue as revenue of the |
affiliate rather than the holder has the effect of evading |
the payment of the fee permitted by subsection (b) of this |
Section
which would otherwise be paid by the cable service |
or video service. |
(d)(1) Except for a holder providing cable service that is |
subject to the fee in subsection (i) of this Section, the |
holder shall pay to the local unit of government or the entity |
designated by that local unit of government to manage public, |
education, and government access, upon request as support for |
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public, education, and government access, a fee equal to no |
less than (i) 1% of gross revenues or (ii) if greater, the |
percentage of gross revenues that incumbent cable operators |
pay to the local unit of government or its designee for public, |
education, and government access support in the local unit of |
government's jurisdiction. For purposes of item (ii) of |
paragraph (1) of this subsection (d), the percentage of gross |
revenues that all incumbent cable operators pay shall be equal |
to the annual sum of the payments that incumbent cable |
operators in the service area are obligated to pay by |
franchises and agreements or by contracts with the local |
government designee for public, education and government |
access in effect on January 1, 2007, including the total of any |
lump sum payments required to be made over the term of each |
franchise or agreement divided by the number of years of the |
applicable term, divided by the annual sum of such incumbent |
cable operator's or operators'
gross revenues during the |
immediately prior calendar year. The sum of payments includes |
any payments that an incumbent cable operator is required to |
pay pursuant to item (3) of subsection (c) of Section 21-301. |
(2) A local unit of government may require all holders of a |
State-issued authorization and all cable operators franchised |
by that local unit of government on June 30, 2007 (the |
effective date of this Section)
in the franchise area to |
provide to the local unit of government, or to the entity |
designated by that local unit of government to manage public, |
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education, and government access, information sufficient to |
calculate the public, education, and government access |
equivalent fee and any credits under paragraph (1) of this |
subsection (d). |
(3) The fee shall be due on a quarterly basis and paid 45 |
days after the close of the calendar quarter. Each payment |
shall include a statement explaining the basis for the |
calculation of the fee. If mailed, the fee is considered paid |
on the date it is postmarked. The liability of the holder for |
payment of the fee under this subsection shall commence on the |
same date as the payment of the service provider fee pursuant |
to subsection (b) of this Section. |
(e) The holder may identify and collect the amount of the |
service provider fee as a separate line item on the regular |
bill of each subscriber. |
(f) The holder may identify and collect the amount of the |
public, education, and government programming support fee as a |
separate line item on the regular bill of each subscriber. |
(g) All determinations and computations under this Section |
shall be made pursuant to the definition of gross revenues set |
forth in this Section and shall be made pursuant to generally |
accepted accounting principles. |
(h) Nothing contained in this Article shall be construed |
to exempt a holder from any tax that is or may later be imposed |
by the local unit of government, including any tax that is or |
may later be required to be paid by or through the holder with |
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respect to cable service or video service. A State-issued |
authorization shall not affect any requirement of the holder |
with respect to payment of the local unit of government's |
simplified municipal telecommunications tax or any other tax |
as it applies to any telephone service provided by the holder. |
A State-issued authorization shall not affect any requirement |
of the holder with respect to payment of the local unit of |
government's 911 or E911 fees, taxes, or charges.
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(i) Except for a municipality having a population of |
2,000,000 or more, the fee imposed under paragraph (1) of |
subsection (d) by a local unit of government against a holder |
who is a cable operator shall be as follows: |
(1) the fee shall be collected and paid only for |
capital costs that are considered lawful under Subchapter |
VI of the federal Communications Act of 1934, as amended, |
and as implemented by the Federal Communications |
Commission; |
(2) the local unit of government shall impose any fee |
by ordinance; and |
(3) the fee may not exceed 1% of gross revenue; if, |
however, on the date that an incumbent cable operator |
files an application under Section 21-401, the incumbent |
cable operator is operating under a franchise agreement |
that imposes a fee for support for capital costs for |
public, education, and government access facilities |
obligations in excess of 1% of gross revenue, then the |
