Bill Text: IL HB3808 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Public Utilities Act. Provides that "video service" means video programming provided by a video service provider and subscriber interaction that is required for the selection or use of video programming services. Provides that the definition of "video service" does not include direct-to-home satellite services defined in federal law. In provisions concerning applicable fees payable to the local unit of government, provides that "gross revenues" do include 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.

Spectrum: Moderate Partisan Bill (Democrat 11-3)

Status: (Passed) 2023-07-28 - Public Act . . . . . . . . . 103-0360 [HB3808 Detail]

Download: Illinois-2023-HB3808-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3808 Introduced , by Rep. Jaime M. Andrade, Jr. SYNOPSIS AS INTRODUCED:
220 ILCS 5/21-201
220 ILCS 5/21-801
Amends the Public Utilities Act. Provides that "video service" means video programming provided by a video service provider and subscriber interaction that is required for the selection or use of video programming services. Provides that the definition of "video service" does not include direct-to-home satellite services defined in federal law. In provisions concerning applicable fees payable to the local unit of government, "gross revenues" shall include 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.
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A BILL FOR
HB3808 LRB103 30973 AMQ 57562 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by changing
Sections 21-201 and 21-801 as follows:
(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(Section scheduled to be repealed on December 31, 2026)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
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
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.)
(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.
(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

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cable operator shall continue to provide support for
capital costs for public, education, and government access
facilities obligations at the rate stated in such
agreement.
(Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)