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
 


HB3808LRB103 30973 AMQ 57562 b



1 AN ACT concerning regulation.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Public Utilities Act is amended by changing 
5Sections 21-201 and 21-801 as follows:

6 (220 ILCS 5/21-201)
7 (Section scheduled to be repealed on December 31, 2026)
8 Sec. 21-201. Definitions. As used in this Article:
9 (a) "Access" means that the cable or video provider is 
10capable of providing cable services or video services at the 
11household address using any technology, other than 
12direct-to-home satellite service, that
provides 2-way

13broadband Internet capability and video programming, content, 
14and functionality, regardless of whether any customer has 
15ordered service or whether the owner or landlord or other 
16responsible person has granted access to the household. If 
17more than one technology is used, the technologies shall 
18provide similar 2-way
broadband Internet accessibility and 
19similar video programming.
20 (b) "Basic cable or video service" means any cable or 
21video service offering or tier that
includes the 
22re
transmission of local television broadcast signals.
23 (c) "Broadband service" means a high speed service 
 
 
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1connection to the public Internet capable of supporting, in at 
2least one direction, a speed in excess of 200 kilobits per 
3second (kbps) to the network demarcation point at the 
4subscriber's premises.
5 (d) "Cable operator" means that term as defined in item 
6(5) of 47 U.S.C. 522.
7 (e) "Cable service" means that term as defined in item (6) 
8of 47 U.S.C. 522.
9 (f) "Cable system" means that term as defined in item (7) 
10of 47 U.S.C. 522.
11 (g) "Commission" means the Illinois Commerce Commission.
12 (h) "Competitive cable service or video service provider" 
13means a person or entity that is providing or seeks to provide 
14cable service or video service in an area where there is at 
15least one incumbent cable operator.
16 (i) "Designated market area" means a designated market 
17area, as determined by Nielsen Media Research and published in 
18the 1999-2000 Nielsen Station Index Directory and Nielsen 
19Station Index United States Television Household Estimates or 
20any successor publication. For any designated market area that 
21crosses State lines, only households in the portion of the 
22designated market area that is located within the holder's 
23telecommunications service area in the State where access to 
24video service will be offered shall be considered.
25 (j) "Footprint" means the geographic area designated by 
26the cable service or video service provider as the geographic 
 
 
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1area in which it will offer cable services or video services 
2during the period of its State-issued authorization. Each 
3footprint shall be identified in terms of either (i) 
4exchanges, as that term is defined in Section 13-206 of this 
5Act; (ii) a collection of United States Census Bureau Block 
6numbers (13 digit); (iii) if the area is smaller than the areas 
7identified in either (i) or (ii), by geographic information 
8system digital boundaries meeting or exceeding national map 
9accuracy standards; or (iv) local units of government.
10 (k) "Holder" means a person or entity that has received 
11authorization to offer or provide cable or video service from 
12the Commission pursuant to Section 21-401 of this Article.
13 (l) "Household" means a house, an apartment, a mobile 
14home, a group of rooms, or a single room that is intended for 
15occupancy as separate living quarters. Separate living 
16quarters are those in which the occupants live and eat 
17separately from any other persons in the building and that

18have direct access from the outside of the building or through 
19a common hall. This definition is consistent with the United 
20States Census Bureau, as that definition may be amended 
21thereafter.
22 (m) "Incumbent cable operator" means a person or entity 
23that provided cable services or video services in a particular 
24area under a franchise agreement with a local unit of 
25government pursuant to Section 11-42-11 of the Illinois 
26Municipal Code (65 ILCS 5/11-42-11) or Section 5-1095 of the 
 
 
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1Counties Code (55 ILCS 5/5-1095) on January 1, 2007.
2 (n) "Local franchising authority" means the local unit of 
3government that has or requires a franchise with a cable 
4operator, a provider of cable services, or a provider of video 
5services to construct or operate a cable or video system or to 
6offer cable services or video services under Section 11-42-11 
7of the Illinois Municipal Code (65 ILCS 5/11-42-11) or Section 
85-1095 of the Counties Code (55 ILCS 5/5-1095).
9 (o) "Local unit of government" means a city, village, 
10incorporated town, or county.
11 (p) "Low-income household" means those residential 
12households located within the holder's existing telephone 
13service area where the average annual household income is less 
14than $35,000, based on the United States Census Bureau 
15estimates adjusted annually to reflect rates of change and 
16distribution.
17 (q) "Public rights-of-way" means the areas on, below, or 
18above a public roadway, highway, street, public sidewalk, 
19alley, waterway, or utility easements dedicated for compatible 
20uses.
21 (r) "Service" means the provision of cable service
or 
22video service
to subscribers and the interaction of 
23subscribers with the person or entity that has received 
24authorization to offer or provide cable or video service from 
25the Commission pursuant to Section 21-401 of this Act.
26 (s) "Service provider fee" means the amount paid under 
 
 
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1Section 21-801 of this Act
by the holder to a municipality, or 
2in the case of an unincorporated service area to a county, for 
3service areas within its territorial jurisdiction, but under 
4no circumstances shall the service provider fee be paid to 
5more than one local unit of government for the same portion of 
6the holder's service area.
7 (t) "Telecommunications service area" means the area 
8designated by the Commission as the area in which a 
9telecommunications company was obligated to provide 
10non-competitive local telephone service as of February 8, 1996 
11as incorporated into Section 13-202.5 of this Act.
12 (u) "Video programming" means that term as defined in item 
13(20) of 47 U.S.C. 522.
14 (v) "Video service" means video programming provided by a 
15video service provider and subscriber interaction, if any, 
16that is required for the selection or use of such video 
17programming services, and that
is provided through wireline 
18facilities located at least in part in the public 
19rights-of-way without regard to delivery technology, including 
20Internet protocol technology. This definition does not include 
21the following: (1) any video programming provided by a 
22commercial mobile service provider defined in subsection (d) 
23of 47 U.S.C. 332; (2) direct-to-home satellite services 
24defined in subsection (v) of 47 U.S.C. 303;
or (3) any video 
25programming provided solely as part of, and accessed via a , 
26service that enables users to access content, information, 
 
 
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1electronic mail, or other services offered over the public 
2Internet, including Internet streaming content.
3(Source: P.A. 100-20, eff. 7-1-17.)

4 (220 ILCS 5/21-801)
5 (Section scheduled to be repealed on December 31, 2026)
6 Sec. 21-801. Applicable fees payable to the local unit of 
7government.
8 (a) Prior to offering cable service or video service in a 
9local unit of government's jurisdiction, a holder shall notify 
10the local unit of government. The notice shall be given to the 
11local unit of government at least 10 days before the holder 
12begins to offer cable service or video service within the 
13boundaries of that local unit of government.
14 (b) In any local unit of government in which a holder 
15offers cable service or video service on a commercial basis, 
16the holder shall be liable for and pay the service provider fee 
17to the local unit of government. The local unit of government 
18shall adopt an ordinance imposing such a fee. The holder's 
19liability for the fee shall commence on the first day of the 
20calendar month that is at least 30 days after the holder 
21receives such ordinance. For any such ordinance adopted on or 
22after the effective date of this amendatory Act of the 99th 
23General Assembly, the holder's liability shall commence on the 
24first day of the calendar month that is at least 30 days after 
25the adoption of such ordinance. The ordinance shall be sent by 
 
 
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1mail, postage prepaid, to the address listed on the holder's 
2application provided to the local unit of government pursuant 
3to item (6) of subsection (b) of Section 21-401 of this Act. 
4The fee authorized by this Section shall be 5% of gross 
5revenues or the same as the fee paid to the local unit of 
6government by any incumbent cable operator providing cable 
7service. The payment of the service provider fee shall be due 
8on a quarterly basis, 45 days after the close of the calendar 
9quarter. If mailed, the fee is considered paid on the date it 
10is postmarked. Except as provided in this Article, the local 
11unit of government may not demand any additional fees or 
12charges from the holder and may not demand the use of any other 
13calculation method other than allowed under this Article.
14 (c) For purposes of this Article, "gross revenues" means 
15all consideration of any kind or nature, including, without 
16limitation, cash, credits, property, and in-kind contributions 
17received by the holder for the operation of a cable or video 
18system to provide cable service or video service within the 
19holder's cable service or video service area within the local 
20unit of government's jurisdiction.
21  (1) Gross revenues shall include the following:
22   (i) Recurring charges for cable service or video 
23 service.
24   (ii) Event-based charges for cable service or 
25 video service, including, but not limited to, 
26 pay-per-view and video-on-demand charges.
 
 
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1   (iii) Rental of set-top
boxes and other cable 
2 service or video service equipment.
3   (iv) Service charges related to the provision of 
4 cable service or video service, including, but not 
5 limited to, activation, installation, and repair 
6 charges.
7   (v) Administrative charges related to the 
8 provision of cable service or video service, including 
9 but not limited to service order and service 
10 termination charges.
11   (vi) Late payment fees or charges, insufficient 
12 funds check charges, and other charges assessed to 
13 recover the costs of collecting delinquent payments.
14   (vii) A pro rata portion of all revenue derived by 
15 the holder or its affiliates pursuant to compensation 
16 arrangements for advertising or for promotion or 
17 exhibition of any products or services derived from 
18 the operation of the holder's network to provide cable 
19 service or video service within the local unit of 
20 government's jurisdiction. The allocation shall be 
21 based on the number of subscribers in the local unit of 
22 government divided by the total number of subscribers 
23 in relation to the relevant regional or national 
24 compensation arrangement.
25   (viii) Compensation received by the holder that is 
26 derived from the operation of the holder's network to 
 
 
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1 provide cable service or video service with respect to 
2 commissions that are received by the holder as 
3 compensation for promotion or exhibition of any 
4 products or services on the holder's network, such as 
5 a "home shopping" or similar channel, subject to item 
6 (ix) of this paragraph (1).
7   (ix) In the case of a cable service or video 
8 service that is bundled or integrated functionally 
9 with other services, capabilities, or applications, 
10 the portion of the holder's revenue attributable to 
11 the other services, capabilities, or applications 
12 shall be included in gross revenue unless the holder 
13 can reasonably identify the division or exclusion of 
14 the revenue from its books and records that are kept in 
15 the regular course of business.
16   (x) The service provider fee permitted by 
17 subsection (b) of this Section.
18  (2) Gross revenues do not include any of the 
19 following:
20   (i) Revenues not actually received, even if 
21 billed, such as bad debt, subject to item (vi) of 
22 paragraph (1) of this subsection (c).
23   (ii) Refunds, discounts, or other price 
24 adjustments that reduce the amount of gross revenues 
25 received by the holder of the State-issued 
26 authorization to the extent the refund, rebate, 
 
 
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1 credit, or discount is attributable to cable service 
2 or video service.
3   (iii) Regardless of whether the services are 
4 bundled, packaged, or functionally integrated with 
5 cable service or video service, any revenues received 
6 from services not classified as cable service or video 
7 service, including, without limitation, revenue 
8 received from telecommunications services, information 
9 services, or the provision of directory or Internet 
10 advertising, including yellow pages, white pages, 
11 banner advertisement, and electronic publishing, or 
12 any other revenues attributed by the holder to 
13 noncable service or nonvideo service in accordance 
14 with the holder's books and records and records kept 
15 in the regular course of business and any applicable 
16 laws, rules, regulations, standards, or orders.
17   (iv) The sale of cable services or video services 
18 for resale in which the purchaser is required to 
19 collect the service provider fee from the purchaser's 
20 subscribers to the extent the purchaser certifies in 
21 writing that it will resell the service within the 
22 local unit of government's jurisdiction and pay the 
23 fee permitted by subsection (b) of this Section
with 
24 respect to the service.
25   (v) Any tax or fee of general applicability 
26 imposed upon the subscribers or the transaction by a 
 
 
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1 city, State, federal, or any other governmental entity 
2 and collected by the holder of the State-issued 
3 authorization and required to be remitted to the 
4 taxing entity, including sales and use taxes.
5   (vi) Security deposits collected from subscribers.
6   (vii) Amounts paid by subscribers to "home 
7 shopping" or similar vendors for merchandise sold 
8 through any home shopping channel offered as part of 
9 the cable service or video service.
10   (viii) Any revenues received from video 
11 programming accessed via a service that enables users 
12 to access content, information, electronic mail, or 
13 other services offered over the Internet, including 
14 Internet streaming content. 
15  (3) Revenue of an affiliate of a holder shall be 
16 included in the calculation of gross revenues to the 
17 extent the treatment of the revenue as revenue of the 
18 affiliate rather than the holder has the effect of evading 
19 the payment of the fee permitted by subsection (b) of this 
20 Section
which would otherwise be paid by the cable service 
21 or video service.
22 (d)(1) Except for a holder providing cable service that is 
23subject to the fee in subsection (i) of this Section, the 
24holder shall pay to the local unit of government or the entity 
25designated by that local unit of government to manage public, 
26education, and government access, upon request as support for 
 
 
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1public, education, and government access, a fee equal to no 
2less than (i) 1% of gross revenues or (ii) if greater, the 
3percentage of gross revenues that incumbent cable operators 
4pay to the local unit of government or its designee for public, 
5education, and government access support in the local unit of 
6government's jurisdiction. For purposes of item (ii) of 
7paragraph (1) of this subsection (d), the percentage of gross 
8revenues that all incumbent cable operators pay shall be equal 
9to the annual sum of the payments that incumbent cable 
10operators in the service area are obligated to pay by 
11franchises and agreements or by contracts with the local 
12government designee for public, education and government 
13access in effect on January 1, 2007, including the total of any 
14lump sum payments required to be made over the term of each 
15franchise or agreement divided by the number of years of the 
16applicable term, divided by the annual sum of such incumbent 
17cable operator's or operators'
gross revenues during the 
18immediately prior calendar year. The sum of payments includes 
19any payments that an incumbent cable operator is required to 
20pay pursuant to item (3) of subsection (c) of Section 21-301.
21 (2) A local unit of government may require all holders of a 
22State-issued authorization and all cable operators franchised 
23by that local unit of government on June 30, 2007 (the 
24effective date of this Section)
in the franchise area to 
25provide to the local unit of government, or to the entity 
26designated by that local unit of government to manage public, 
 
 
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1education, and government access, information sufficient to 
2calculate the public, education, and government access 
3equivalent fee and any credits under paragraph (1) of this 
4subsection (d).
5 (3) The fee shall be due on a quarterly basis and paid 45 
6days after the close of the calendar quarter. Each payment 
7shall include a statement explaining the basis for the 
8calculation of the fee. If mailed, the fee is considered paid 
9on the date it is postmarked. The liability of the holder for 
10payment of the fee under this subsection shall commence on the 
11same date as the payment of the service provider fee pursuant 
12to subsection (b) of this Section.
13 (e) The holder may identify and collect the amount of the 
14service provider fee as a separate line item on the regular 
15bill of each subscriber.
16 (f) The holder may identify and collect the amount of the 
17public, education, and government programming support fee as a 
18separate line item on the regular bill of each subscriber.
19 (g) All determinations and computations under this Section 
20shall be made pursuant to the definition of gross revenues set 
21forth in this Section and shall be made pursuant to generally 
22accepted accounting principles.
23 (h) Nothing contained in this Article shall be construed 
24to exempt a holder from any tax that is or may later be imposed 
25by the local unit of government, including any tax that is or 
26may later be required to be paid by or through the holder with 
 
 
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1respect to cable service or video service. A State-issued 
2authorization shall not affect any requirement of the holder 
3with respect to payment of the local unit of government's 
4simplified municipal telecommunications tax or any other tax 
5as it applies to any telephone service provided by the holder. 
6A State-issued authorization shall not affect any requirement 
7of the holder with respect to payment of the local unit of 
8government's 911 or E911 fees, taxes, or charges.

9 (i) Except for a municipality having a population of 
102,000,000 or more, the fee imposed under paragraph (1) of 
11subsection (d) by a local unit of government against a holder 
12who is a cable operator shall be as follows:
13  (1) the fee shall be collected and paid only for 
14 capital costs that are considered lawful under Subchapter 
15 VI of the federal Communications Act of 1934, as amended, 
16 and as implemented by the Federal Communications 
17 Commission;
18  (2) the local unit of government shall impose any fee 
19 by ordinance; and
20  (3) the fee may not exceed 1% of gross revenue; if, 
21 however, on the date that an incumbent cable operator 
22 files an application under Section 21-401, the incumbent 
23 cable operator is operating under a franchise agreement 
24 that imposes a fee for support for capital costs for 
25 public, education, and government access facilities 
26 obligations in excess of 1% of gross revenue, then the 
 
 
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1 cable operator shall continue to provide support for 
2 capital costs for public, education, and government access 
3 facilities obligations at the rate stated in such 
4 agreement. 
5(Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)