SB 678 — BROADBAND ACCESS PASSENGR RAIL

(Source:

P.A.

94-76, eff.

6-24-05.) ARTICLE 15.

Section 15-5.

The Public Utilities Act is amended by adding the heading of Article XXI and Sections 21-100, 21-101, 21-101.1, 21-201, 21-301, 21-401, 21-601, 21-701, 21-801, 21-901, 21-1001, 21-1101, 21-1201, 21-1301, 21-1401, 21-1501, and 21-1601 as follows:

(220 ILCS 5/Art.

XXI heading new) ARTICLE XXI.

CABLE AND VIDEO COMPETITION (220 ILCS 5/21-100 new) Sec.

21-100.

Short title.

This Article may be cited as the Cable and Video Competition Law of 2007.

(220 ILCS 5/21-101 new) Sec.

21-101.

Findings.

With respect to cable and video competition, the General Assembly finds that:

(a) The economy in the State of Illinois will be enhanced by investment in new communications, cable services and video services infrastructure, including broadband facilities, fiber SB0678 Enrolled - 6 - LRB095 08411 DRH 28585 b optic, and Internet protocol technologies.

(b) Cable services and video services bring important daily benefits to Illinois consumers by providing news, education, and entertainment.

(c) Competitive cable service and video service providers are capable of providing new video programming services and competition to Illinois consumers and of decreasing the prices for video programming services paid by Illinois consumers.

(d) Although there has been some competitive entry into the facilities-based video programming market since current franchising requirements in this State were enacted, further entry by facilities-based providers could benefit consumers, provided cable and video services are equitably available to all Illinois consumers at reasonable prices.

(e) The provision of competitive cable services and video services is a matter of statewide concern that extends beyond the boundaries of individual local units of government.

Notwithstanding the foregoing, public rights-of-way are limited resources over which the municipality has a custodial duty to ensure that they are used, repaired and maintained in a manner that best serves the public interest.

(f) The State authorization process and uniform standards and procedures in this Article are intended to enable rapid and widespread entry by competitive providers which will bring to Illinois consumers the benefits of video competition including providing consumers with more choice, lower prices, higher SB0678 Enrolled - 7 - LRB095 08411 DRH 28585 b speed and more advanced Internet access, more diverse and varied news, public information, education, and entertainment programming, and will bring to this State and its local units of government the benefits of new infrastructure investment, job growth, and innovation in broadband and Internet protocol technologies and deployment.

(g) Providing an incumbent cable or video service provider with the option to secure a State-issued authorization through the termination of existing cable franchises between incumbent cable and video service providers and any local franchising authority, is part of the new regulatory framework established by this Article.

This Article is intended to best ensure equal treatment and parity among providers and technologies.

(220 ILCS 5/21-101.1 new) Sec.

21-101.1.

Applicability.

The provisions of this amendatory Act of the 95th Illinois General Assembly shall apply only to a holder of a cable service or video service authorization issued by the Commission pursuant to this Article XXI of the Public Utilities Act, and shall not apply to any person or entity that provides cable television services under a cable television franchise issued by any municipality or county pursuant to 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), unless specifically provided for herein.

A local unit of government that has an existing SB0678 Enrolled - 8 - LRB095 08411 DRH 28585 b agreement for the provision of video services with a company or entity that uses its telecommunications facilities to provide video service as of May 30, 2007 may continue to operate under that agreement or may, at its discretion, terminate the existing agreement and require the video provider to obtain a State-issued authorization under this Article.

(220 ILCS 5/21-201 new) 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, which provides two-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 two-way broadband Internet accessibility and similar video programming.

(b) "Basic cable or video service" means any cable or video service offering or tier which includes the retransmission of local television broadcast signals.

(c) "Broadband service" means a high speed service connection to the public Internet capable of supporting, in at least one direction, a speed in excess of 200 kilobits per SB0678 Enrolled - 9 - LRB095 08411 DRH 28585 b second (kbps) to the network demarcation point at the subscriber’s premises.

(d) "Cable operator" means that term as defined in 47 U.S.C.

522(5).

(e) "Cable service" means that term as defined in 47 U.S.C.

522(6).

(f) "Cable system" means that term as defined in 47 U.S.C.

522(7).

(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 area in which it will offer cable services or video services during the period of its State-issued authorization.

Each footprint SB0678 Enrolled - 10 - LRB095 08411 DRH 28585 b shall be identified in terms of either (i) exchanges, as that term is defined in Section 13-206 of the Public Utilities 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 which 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 Counties Code (55 ILCS 5/5-1095) on January 1, 2007.

(n) "Local franchising authority" means the local unit of SB0678 Enrolled - 11 - LRB095 08411 DRH 28585 b 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 a 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 Article.

(s) "Service provider fee" means the amount paid under Section 21-801 of this Article 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 SB0678 Enrolled - 12 - LRB095 08411 DRH 28585 b 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 Article XIII of the Public Utilities Act.

(u) "Video programming" means that term as defined in 47 U.S.C.

522(20).

(v) "Video service" means video programming and subscriber interaction, if any, that is required for the selection or use of such video programming services, and which 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 any video programming provided by a commercial mobile service provider defined in 47 U.S.C.

332(d) or any video programming provided solely as part of, and via, service that enables users to access content, information, electronic mail, or other services offered over the public Internet.

(220 ILCS 5/21-301 new) Sec.

21-301.

Eligibility.

(a) A person or entity seeking to provide cable service or SB0678 Enrolled - 13 - LRB095 08411 DRH 28585 b video service in this State after the effective date of this amendatory Act of the 95th General Assembly shall either (1) obtain a State-issued authorization pursuant to Section 401 of the Cable and Video Competition Act (220 ILCS 5/21-401);

(2) obtain authorization pursuant to Section 11-42-11 of the Illinois Municipal Code (65 ILCS 5/11-42-11);

or (3) obtain authorization pursuant to Section 5-1095 of the Counties Code (55 ILCS 5/5-1095).

(b) An incumbent cable operator shall be eligible to apply for a State-issued authorization as provided in subsection (c).

Upon expiration of its current franchise agreement, an incumbent cable operator may obtain State authorization from the Commission pursuant to this Article or may pursue a franchise renewal with the appropriate local franchise authority under State and federal law.

An incumbent cable operator and any successor-in-interest that receives a State-issued authorization shall be obligated to provide access to cable services or video services within any local unit of government at the same levels required by the local franchising authorities for the local unit of government on the effective date of this amendatory Act of the 95th General Assembly.

(c)(1) An incumbent cable operator may elect to terminate its agreement with the local franchising authority and obtain a State-issued authorization by providing written notice to the Commission and the affected local franchising authority and any SB0678 Enrolled - 14 - LRB095 08411 DRH 28585 b entity authorized by that franchising authority to manage public, education, and government access at least 180 days prior to its filing an application for a State-issued authorization.

The existing agreement shall be terminated on the date that the Commission issues the State-issued authorization.

(2) An incumbent cable operator that elects to terminate an existing agreement with a local franchising authority under this Section is responsible for remitting to the affected local franchising authority and any entity designated by that local franchising authority to manage public, education, and government access before the 46th day after the date the agreement is terminated any accrued but unpaid fees due under the terminated agreement.

If that incumbent cable operator has credit remaining from prepaid franchise fees, such amount of the remaining credit may be deducted from any future fees the incumbent cable operator must pay to the local franchising authority pursuant to Section 21-801(b) of this Article.

(3) An incumbent cable operator that elects to terminate an existing agreement with a local franchising authority under this Section shall pay the affected local franchising authority and any entity designated by that franchising authority to manage public, education, and government access, at the time that they would have been due, all monetary payments for public, education, or government access that would have been due during the remaining term of the agreement had it not been SB0678 Enrolled - 15 - LRB095 08411 DRH 28585 b terminated as provided in this paragraph.

All payments made by an incumbent cable operator pursuant to the previous sentence of this paragraph may be credited against the fees that that operator owes under Section 21-801(d)(1) of this Article.

(d) For purposes of this Article, the Commission shall be the franchising authority for cable service or video service providers that apply for and obtain a State-issued authorization under this Article with regard to the footprint covered by such authorization.

Notwithstanding any other provision of this Article, holders using telecommunications facilities to provide cable service or video service are not obligated to provide that service outside the holder’s telecommunications service area.

(e) Any person or entity that applies for and obtains a State-issued authorization under this Article shall not be subject to 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), except as provided in this Article.

Except as provided under this Article, neither the Commission nor any local unit of government may require a person or entity that has applied for and obtained a State-issued authorization to obtain a separate franchise or pay any franchise fee on cable service or video service.

(220 ILCS 5/21-401 new) Sec.

21-401.

Applications.

SB0678 Enrolled - 16 - LRB095 08411 DRH 28585 b (a) (1) A person or entity seeking to provide cable service or video service pursuant to this Article shall not use the public rights-of-way for the installation or construction of facilities for the provision of cable service or video service or offer cable service or video service until it has obtained a State-issued authorization to offer or provide cable or video service under Section 401 of this Article, except as provided for in subsection (a)(2).

All cable or video providers offering or providing service in this State shall have authorization pursuant to either (i) the Cable and Video Competition Law of 2007 (220 ILCS 5/21-100 et seq.);

(ii) Section 11-42-11 of the Illinois Municipal Code (65 ILCS 5/11-42-11);

or (iii) Section 5-1095 of the Counties Code (55 ILCS 5/5-1095).

(2) Nothing in this Section shall prohibit a local unit of government from granting a permit to a person or entity for the use of the public rights-of-way to install or construct facilities to provide cable service or video service, at its sole discretion.

No unit of local government shall be liable for denial or delay of a permit prior to the issuance of a State-issued authorization.

(b) The application to the Commission for State-issued authorization shall contain a completed affidavit submitted by the applicant and signed by an officer or general partner of the applicant affirming all of the following:

(1) That the applicant has filed or will timely file with the Federal Communications Commission all forms SB0678 Enrolled - 17 - LRB095 08411 DRH 28585 b required by that agency in advance of offering cable service or video service in this State;

(2) That the applicant agrees to comply with all applicable federal and State statutes and regulations;

(3) That the applicant agrees to comply with all applicable local unit of government regulations;

(4) An exact description of the cable service or video service area where the cable service or video service will be offered during the term of the State-issued authorization.

The service area shall be identified in terms of either (i) exchanges, as that term is defined in Section 13-206 of the Public Utilities 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 unit of government.

The description shall include the number of low-income households within the service area or footprint.

If an applicant is a an incumbent cable operator, the incumbent cable operator and any successor-in-interest shall be obligated to provide access to cable services or video services within any local units of government at the same levels required by the local franchising authorities for the local unit of government on the effective date of this amendatory Act of the 95th General Assembly and its SB0678 Enrolled - 18 - LRB095 08411 DRH 28585 b application shall provide a description of an area no smaller than the service areas contained in its franchise(s) within the jurisdiction of the local unit of government in which it seeks to offer cable or video service;

(5) The location and telephone number of the applicant’s principal place of business within this State and the names of the applicant’s principal executive officers who are responsible for communications concerning the application and the services to be offered pursuant to the application, the applicant’s legal name and any name or names under which the applicant does or will provide cable services or video services in this State;

(6) A certification that the applicant has concurrently delivered a copy of the application to all local units of government that include all or any part of the service area identified in subsection (b)(4) within such local unit of government’s jurisdictional boundaries;

(7) The expected date that cable service or video service will be initially offered in the area identified in subsection (b)(4).

In the event that a holder does not offer cable services or video services within three months after the expected date, it shall amend its application and update the expected date service will be offered and explain the delay in offering cable services or video services;

SB0678 Enrolled - 19 - LRB095 08411 DRH 28585 b (8) The application shall include adequate assurance that the applicant possesses the financial, managerial, legal, and technical qualifications necessary to construct and operate the proposed system, and to promptly repair any damage to the public right-of-way caused by the applicant, and to pay the cost of removal of its facilities.

To accomplish these requirements, the applicant may, at the time the applicant seeks to use the public rights-of-way in that jurisdiction, be required by the State of Illinois and/or later be required by the local unit of government to post a bond, produce a certificate of insurance, or otherwise demonstrate its financial responsibility;

and (9) The application shall include the applicant’s general standards related to customer service required by 220 ILCS 5/70-501, which shall include, but not be limited to, installation, disconnection, service and repair obligations;

appointment hours, employee ID requirements;

customer service telephone numbers and hours;

procedures for billing, charges, deposits, refunds, and credits;

procedures for termination of service;

notice of deletion of programming service, changes related to transmission of programming or changes or increases in rates;

use and availability of parental control or lock-out devices;

complaint procedures and procedures for bill dispute resolution, and a description of the rights and remedies available to consumers if the holder does not materially SB0678 Enrolled - 20 - LRB095 08411 DRH 28585 b meet their customer service standards;

and special services for customers with visual, hearing or mobility disabilities.

(c)(1) The applicant may designate information that it submits in its application or subsequent reports as confidential or proprietary, provided that the applicant states the reasons the confidential designation is necessary.

The Commission shall provide adequate protection for such information pursuant to Section 5/4-404 of the Public Utilities Act.

If the Commission, a local unit of government, or any other party seeks public disclosure of information designated as confidential, the Commission shall consider the confidential designation in a proceeding under the Administrative Procedures Act, and the burden of proof to demonstrate that the designated information is confidential shall be upon the applicant.

Designated information shall remain confidential pending the Commission’s determination of whether the information is entitled to confidential treatment.

Information designated as confidential shall be provided to local units of government for purposes of assessing compliance with this Article as permitted under a Protective Order issued by the Commission pursuant to the Commission’s rules and to the Attorney General pursuant to Section 6.5 of the Attorney General Act, 15 ILCS 205/6.5.

Information designated as confidential under this Section or determined to be confidential upon Commission review shall only be disclosed SB0678 Enrolled - 21 - LRB095 08411 DRH 28585 b pursuant to a valid and enforceable subpoena or court order or as required by the Freedom of Information Act.

Nothing herein shall delay the application approval timeframes set forth in this Article.

(2) Information regarding the location of video services that have been or are being offered to the public and aggregate information included in the reports required by this Article shall not be designated or treated as confidential.

(d)(1) The Commission shall post all applications it receives under this Article on its web site within five (5) business days.

(2) The Commission shall notify an applicant for a cable service or video service authorization whether the applicant’s application and affidavit are complete on or before the 15th business day after the applicant submits the application.

If the application and affidavit are not complete, the Commission shall state in its notice all of the reasons the application or affidavit are incomplete, and the applicant shall resubmit a complete application.

The Commission shall have 30 days after submission by the applicant of a complete application and affidavit to issue the service authorization.

If the Commission does not notify the applicant regarding the completeness of the application and affidavit or issue the service authorization within the time periods required under this subsection, the application and affidavit shall be considered complete and the service authorization issued upon the expiration of the 30th SB0678 Enrolled - 22 - LRB095 08411 DRH 28585 b day.

(e) The authorization issued by the Commission will expire on the date listed in Section 21-1601 and shall contain or include all of the following:

(1) A grant of authority to provide cable service or video service in the service area footprint as requested in the application, subject to the laws of the State and the ordinances, rules and regulations of the local units of government.

(2) A grant of authority to use, occupy, and construct facilities in the public rights-of-way for the delivery of cable service or video service in the service area footprint, subject to the laws, ordinances, rules or regulations of this State and local units of governments.

(3) A statement that the grant of authority is subject to lawful operation of the cable service or video service by the applicant, its affiliated entities or its successors-in-interest.

(4) The Commission shall notify a local unit of government within three (3) business days of the grant of any authorization within a service area footprint if that authorization includes any part of the local unit of government’s jurisdictional boundaries.

(f) The authorization issued pursuant to Section 401 of this Article by the Commission may be transferred to any successor-in-interest to the applicant to which it is initially SB0678 Enrolled - 23 - LRB095 08411 DRH 28585 b granted without further Commission action if the successor-in-interest (i) submits an application and the information required by Section 21-401(b) for the successor-in-interest and (ii) is not in violation of this Article or of any federal, State, or local law, ordinance, rule or regulation.

A successor-in-interest shall file its application and notice of transfer with the Commission and the relevant local units of government no less than fifteen (15) business days prior to the completion of the transfer.

The Commission is not required or authorized to act upon the notice of transfer;

however, the transfer is not effective until the Commission approves the successor-in-interest’s application.

A local unit of government or the Attorney General may seek to bar a transfer of ownership by filing suit in a court of competent jurisdiction predicated on the existence of a material and continuing breach of this Article by the holder, a pattern of noncompliance with customer service standards by the potential successor-in-interest, or the insolvency of the potential successor-in-interest.

If a transfer is made when there are violations of this Article or of any federal, State, or local law, ordinance, rule or regulation, the successor-in-interest shall be subject to three times the penalties provided for in this Article.

(g) The authorization issued pursuant to Section 21-401 of this Article by the Commission may be terminated, or its cable service or video service area footprint may be modified, by the SB0678 Enrolled - 24 - LRB095 08411 DRH 28585 b cable service provider or video service provider by submitting notice to the Commission and to the relevant local unit of government containing a description of the change on the same terms as the initial description pursuant to Section 21-401(b)(4).

The Commission is not required or authorized to act upon that notice.

It shall be a violation of this Article for a holder to discriminate against potential residential subscribers because of the race or income of the residents in the local area in which the group resides by terminating or modifying its cable service or video service area footprint.

It shall be a violation of this Article for a holder to terminate or modify its cable service or video service area footprint if it leaves an area with no cable service or video service from any provider.

(h) The Commission’s authority to administer this Article is limited to the powers and duties explicitly provided under this Article.

Its authority under this Article does not include or limit the powers and duties that the Commission has under the other Articles of the Public Utilities Act, the Illinois Administrative Procedure Act (5 ILCS 100/) or any other law or regulation to conduct proceedings other than as provided in subsection (c) above, or to promulgate rules or regulations.

The Commission shall not have the authority to limit or expand the obligations and requirements provided in this Section, or to regulate or control a person or entity to the extent that person or entity is providing cable service or video service SB0678 Enrolled - 25 - LRB095 08411 DRH 28585 b except as provided in this Article.

(220 ILCS 5/21-601 new) Sec.

21-601.

Public, education, and government access.

For the purposes of this Section, "programming" means content produced or provided by any person, group, governmental agency, or noncommercial public or private agency or organization.

(a) Not later than 90 days after a request by the local unit of government or its designee that has received notice under Section 21-801(a) of this Article, the holder shall (i) designate the same amount of capacity on its network to provide for public, education, and government access use, as the incumbent cable operator is required to designate under its franchise terms in effect with a local unit of government on January 1, 2007;

and (ii) retransmit to its subscribers the same number of public, education, and government access channels as the incumbent cable operator was retransmitting to subscribers on January 1, 2007.

(b) If the local unit of government produces or maintains the public education or government programming in a manner or form that is compatible with the holder’s network, it shall transmit such programming to the holder in that form provided that form will permit the holder to satisfy the requirements of Section 21-601(c).

If the local unit of government does not produce or maintain such programming in that manner or form, then the holder shall be responsible for any changes in the SB0678 Enrolled - 26 - LRB095 08411 DRH 28585 b form of the transmission necessary to make public, education, and government programming compatible with the technology or protocol used by the holder to deliver services.

The holder shall receive programming from the local unit of government (or the local unit of government’s public, education, and government programming providers) and transmit that public, education, and government programming directly to the holder’s subscribers within the local unit of government’s jurisdiction at no cost to the local unit of government or the public, education, and government programming providers.

If the holder is required to change the form of the transmission, the local unit of government or its designee shall provide reasonable access to the holder to allow the holder to transmit the public, education, and government programming in an economical manner subject to the requirements of Section 21-601(c).

(c) The holder shall provide to subscribers public, education and government access channel capacity at equivalent visual and audio quality and equivalent functionality, from the viewing perspective of the subscriber, to that of commercial channels carried on the holder’s basic cable or video service offerings or tiers without the need for any equipment other than the equipment necessary to receive the holder’s basic cable or video service offerings or tiers.

(d) The holder and an incumbent cable operator shall negotiate in good faith to interconnect their networks, if needed, for the purpose of providing public, education, and SB0678 Enrolled - 27 - LRB095 08411 DRH 28585 b government programming.

Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection.

The holder and the incumbent cable operator shall provide interconnection of the public, education, and government channels on reasonable terms and conditions and may not withhold the interconnection.

If a holder and an incumbent cable operator cannot reach a mutually acceptable interconnection agreement, the local unit of government may require the incumbent cable operator to allow the holder to interconnect its network with the incumbent cable operator’s network at a technically feasible point on their networks.

If no technically feasible point for interconnection is available, the holder and an incumbent cable operator shall each make an interconnection available to the public, education, and government channel originators at their local origination points and shall provide the facilities necessary for the interconnection.

The cost of any interconnection shall be borne by the holder unless otherwise agreed to by the parties.

The interconnection required by this subsection shall be completed within the 90-day deadline set forth in subsection (a).

(e) The public, education, and government channels shall be for the exclusive use of the local unit of government or its designee to provide public, education, and government programming.

The public, education, and government channels shall be used only for noncommercial purposes.

However, SB0678 Enrolled - 28 - LRB095 08411 DRH 28585 b advertising, underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding public, education, and government access related activities.

(f) Public, education and government channels shall all be carried on the holder’s basic cable or video service offerings or tiers.

To the extent feasible, the public, education and government channels shall not be separated numerically from other channels carried on the holder’s basic cable or video service offerings or tiers, and the channel numbers for the public, education and government channels shall be the same channel numbers used by the incumbent cable operator unless prohibited by federal law.

After the initial designation of public, education and government channel numbers, the channel numbers shall not be changed without the agreement of the local unit of government or the entity to which the local unit of government has assigned responsibility for managing public, education and government access channels unless the change is required by federal law.

Each channel shall be capable of carrying a National Television System Committee (NTSC) television signal.

(g) The holder shall provide a listing of public, education and government channels on channel cards and menus provided to subscribers in a manner equivalent to other channels if the holder uses such cards and menus.

Further, the holder shall provide a listing of public, education, and government programming on its electronic program guide if such a guide is SB0678 Enrolled - 29 - LRB095 08411 DRH 28585 b utilized by the holder.

It is the public, education and government entity’s responsibility to provide the holder or its designated agent, as determined by the holder, with program schedules and information in a timely manner.

(h) If less than three public, education, and government channels are provided within the local unit of government as of January 1, 2007, a local unit of government whose jurisdiction lies within the authorized service area of the holder may initially request the holder to designate sufficient capacity for up to three public, education, and government channels.

A local unit of government or its designee that seeks to add additional capacity shall give the holder a written notification specifying the number of additional channels to be used, specifying the number of channels in actual use, and verifying that the additional channels requested will be put into actual use.

(i) The holder shall, within 90 days of a request by the local unit of government or its designated public, education, or government access entity, provide sufficient capacity for an additional channel for public, education, and government access when the programming on a given access channel exceeds 40 hours per week as measured on a quarterly basis.

The additional channel shall not be used for any purpose other than for carrying additional public, education, or government access programming.

(j) The public, education, and government access SB0678 Enrolled - 30 - LRB095 08411 DRH 28585 b programmer is solely responsible for the content that it provides over designated public, education, or government channels.

A holder shall not exercise any editorial control over any programming on any channel designed for public, education, or government use or on any other channel required by law or a binding agreement with the local unit of government.

(k) A holder shall not be subject to any civil or criminal liability for any program carried on any channel designated for public, education, or government use.

(l) A court of competent jurisdiction shall have exclusive jurisdiction to enforce any requirement under this Section or resolve any dispute regarding the requirements set forth in this Section, and no provider of cable service or video service may be barred from providing service or be required to terminate service as a result of that dispute or enforcement action.

(220 ILCS 5/21-701 new) Sec.

21-701.

Emergency alert system.

The holder shall comply with all applicable requirements of the Federal Communications Commission involving the distribution and notification of federal, State, and local emergency messages over the emergency alert system applicable to cable operators.

The holder will provide a requesting local unit of government with sufficient information regarding how to submit, via SB0678 Enrolled - 31 - LRB095 08411 DRH 28585 b telephone or web listing, a local emergency alert for distribution over its cable or video network.

To the extent that a local unit of government requires incumbent cable operators to provide emergency alert system messages or services in excess of the requirements of this Section, the holder shall comply with any such additional requirements within the jurisdiction of the local franchising authority.

The holder may provide a local emergency alert to an area larger than the boundaries of the local unit of government issuing the emergency alert.

(220 ILCS 5/21-801 new) 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 SB0678 Enrolled - 32 - LRB095 08411 DRH 28585 b calendar month that is at least 30 days after the holder receives such ordinance.

The ordinance shall be sent by mail, postage prepaid, to the address listed on the holder’s application provided to the local unit of government pursuant to Section 21-401(b)(6).

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 SB0678 Enrolled - 33 - LRB095 08411 DRH 28585 b video service, including, but not limited to, pay-per-view and video-on-demand charges.

(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.

SB0678 Enrolled - 34 - LRB095 08411 DRH 28585 b (viii) Compensation received by the holder that is derived from the operation of the holder’s network to 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 subsection (b)(ix).

(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 Section 21-801(b) of this Article.

(2) Gross revenues do not include any of the following:

(i) Revenues not actually received, even if billed, such as bad debt, subject to Section 21-801(c)(1)(vi).

(ii) Refunds, discounts, or other price adjustments that reduce the amount of gross revenues received by the holder of the State-issued SB0678 Enrolled - 35 - LRB095 08411 DRH 28585 b authorization to the extent the refund, rebate, 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 Section 21-801(b) with respect to the service.

(v) Any tax or fee of general applicability imposed SB0678 Enrolled - 36 - LRB095 08411 DRH 28585 b upon the subscribers or the transaction by a 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.

(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 Section 21-801(b) of this Article which would otherwise be paid by the cable service or video service.

(d)(1) 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 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 SB0678 Enrolled - 37 - LRB095 08411 DRH 28585 b subparagraph (d)(1)(ii) above, 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)’s 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 Section 21-301(c)(3) of this Article.

(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 the effective date hereof 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, education and government access, information sufficient to calculate the public, education and government access equivalent fee and any credits under subsection (d)(1).

(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 SB0678 Enrolled - 38 - LRB095 08411 DRH 28585 b 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 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 SB0678 Enrolled - 39 - LRB095 08411 DRH 28585 b government’s 911 or E911 fees, taxes or charges.

(220 ILCS 5/21-901 new) Sec.

21-901.

Audits.

(a) Upon receiving notice under Section 21-401(e)(4) that a holder has received State-issued authorization under this Article, a local unit of government shall notify the holder of the requirements it imposes on other cable service or video service providers in its jurisdiction to submit to an audit of its books and records.

The holder shall comply with the same requirements the local unit of government imposes on other cable service or video service providers in its jurisdiction to audit the holder’s books and records and to recompute any amounts determined to be payable under the requirements of the local unit of government.

If all local franchises between the local unit of government and a cable operator terminate, the audit requirements shall be those adopted by the local government pursuant to the Local Government Taxpayers’ Bill of Rights, 50 ILCS 45.

No acceptance of amounts remitted should be construed as an accord that the amounts are correct.

(b) Any additional amount due after an audit shall be paid within 30 days after the local unit of government’s submission of an invoice for the sum.

(220 ILCS 5/21-1001 new) Sec.

21-1001.

Local unit of government authority.

SB0678 Enrolled - 40 - LRB095 08411 DRH 28585 b (a) The holder of a State-issued authorization shall comply with all the applicable construction and technical standards and right-of-way occupancy standards set forth in a local unit of government’s code of ordinances relating to the use of public rights-of-way, pole attachments, permit obligations, indemnification, performance bonds, penalties or liquidated damages.

The applicable requirements for a holder that is using its existing telecommunications network or constructing a telecommunications network shall be the same requirements that the local unit of government imposes on telecommunications providers in its jurisdiction.

The applicable requirements for a holder that is using or constructing a cable system shall be the same requirements the local unit of government imposes on other cable operators in its jurisdiction.

(b) A local unit of government shall allow the holder to install, construct, operate, maintain, and remove a cable service, video service, or telecommunications network within a public right-of-way and shall provide the holder with open, comparable, nondiscriminatory, and competitively neutral access to the public right-of-way on the same terms applicable to other cable service or video service providers or cable operators in its jurisdiction.

Notwithstanding any other provisions of law, if a local unit of government is permitted by law to require the holder of a State authorization to seek a permit to install, construct, operate, maintain or remove its cable service, video service, or telecommunications network SB0678 Enrolled - 41 - LRB095 08411 DRH 28585 b within a public right-of-way, those permits shall be deemed granted within 45 days after being submitted, if not otherwise acted upon by the local unit of government, provided the holder complies with the requirements applicable to the holder in its jurisdiction.

(c) A local unit of government may impose reasonable terms, but it may not discriminate against the holder with respect to any of the following:

(1) The authorization or placement of a cable service, video service, or telecommunications network or equipment in public rights-of-way.

(2) Access to a building.

(3) A local unit of government utility pole attachment.

(d) If a local unit of government imposes a permit fee on incumbent cable operators, it may impose a permit fee on the holder only to the extent it imposes such a fee on incumbent cable operators.

In all other cases, these fees may not exceed the actual, direct costs incurred by the local unit of government for issuing the relevant permit.

In no event may a fee under this Section be levied if the holder already has paid a permit fee of any kind in connection with the same activity that would otherwise be covered by the permit fee under this Section provided no additional equipment, work, function or other burden is added to the existing activity for which the permit was issued.

(e) Nothing in this Article shall affect the rights that SB0678 Enrolled - 42 - LRB095 08411 DRH 28585 b any holder has under Section 4 of the Telephone Line Right of Way Act (220 ILCS 65/4).

(f) In addition to the other requirements in this Section, if the holder installs, upgrades, constructs, operates, maintains, and removes facilities or equipment within a public right-of-way to provide cable service or video service, it shall comply with the following:

(1) The holder must locate its equipment in the right-of-way as to cause only minimum interference with the use of streets, alleys and other public ways and places, and to cause only minimum impact upon, and interference with the rights and reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways.

No fixtures shall be placed in any public ways in such a manner to interfere with the usual travel on such public ways.

Nor shall such fixtures or equipment limit the visibility of vehicular and/or pedestrian traffic.

(2) The holder shall comply with a local unit of government’s reasonable requests to place equipment on public property where possible, and promptly comply with local unit of government direction with respect to the location and screening of equipment and facilities.

In constructing or upgrading its cable or video network in the right-of-way, the holder shall use the smallest suitable equipment enclosures and power pedestals and cabinets then in use by the holder for the application.

SB0678 Enrolled - 43 - LRB095 08411 DRH 28585 b (3) The holder’s construction practices shall be in accordance with all applicable sections of the Occupational Safety and Health Act of 1970, as amended, as well as all applicable State laws, including the Illinois Administrative Code, and local codes where applicable, as adopted by the local unit of government.

All installation of electronic equipment shall be of a permanent nature, durable and, where applicable, installed in accordance with the provisions of the National Electrical Safety Code of the National Bureau of Standards and National Electrical Code of the National Board of Fire Underwriters.

(4) The holder shall not interfere with the local unit of government’s performance of public works.

Nothing in the State-issued authorization shall be in preference or hindrance to the right of the local unit of government to perform or carry on any public works or public improvements of any kind.

The holder expressly agrees that it shall, at its own expense, protect, support, temporarily disconnect, relocate in the same street or other public place, or remove from such street or other public place, any of the network, system, facilities or equipment when required to do so by the local unit of government, because of necessary public health, safety and welfare improvements.

In the event a holder and other users, including incumbent cable operators or utilities, of a public right-of-way are required to relocate and compensation is paid to the users SB0678 Enrolled - 44 - LRB095 08411 DRH 28585 b of such public right-of-way, such parties shall be treated equally with respect to such compensation.

(5) The holder shall comply with all local units of government inspection requirements.

The making of post-construction, subsequent and/or periodic inspections or the failure to do so shall not operate to relieve the holder of any responsibility, obligation or liability.

(6) The holder shall maintain insurance or provide evidence of self insurance as required by an applicable ordinance of the local unit of government.

(7) The holder shall reimburse all reasonable make-ready expenses, including aerial and underground installation expenses requested by the holder to the local unit of government within thirty (30) days of billing to the holder provided that such charges shall be at the same rates as charges to others for the same or similar services.

(8) The holder shall indemnify and hold harmless the local unit of government and all boards, officers, employees and representatives thereof from all claims, demands, causes of action, liability, judgments, costs and expenses or losses for injury or death to persons or damage to property owned by, and Worker’s Compensation claims against any parties indemnified herein, arising out of, caused by, or as a result of the holder’s construction, lines, cable, erection, maintenance, use or presence of, or SB0678 Enrolled - 45 - LRB095 08411 DRH 28585 b removal of any poles, wires, conduit, appurtenances thereto, or equipment or attachments thereto.

The holder, however, shall not indemnify the local unit of government for any liabilities, damages, cost and expense resulting from the willful misconduct or negligence of the local unit of government, its officers, employees and agents.

The obligations imposed pursuant to this Section by a local unit of government shall be competitively neutral.

(9) The holder, upon request, shall provide the local unit of government with information describing the location of the cable service or video service facilities and equipment located in the unit of local government’s rights-of-way pursuant to its State-issued authorization.

If designated by the holder as confidential, such information provided pursuant to this subsection shall be exempt from inspection and copying under the Illinois Freedom of Information Act, 5 ILCS 140/1 et seq., pursuant to the exemption provided for under 5 ILCS 140/7(1)(mm) and any other present or future exemptions applicable to such information and shall not be disclosed by the unit of local government to any third party without the written consent of the holder.

(220 ILCS 5/21-1101 new) Sec.

21-1101.

Requirements to provide video services.

(a) The holder of a State-issued authorization shall not SB0678 Enrolled - 46 - LRB095 08411 DRH 28585 b deny access to cable service or video service to any potential residential subscribers because of the race or income of the residents in the local area in which the potential subscribers reside.

(b) If the holder is using telecommunications facilities to provide cable or video service and has 1,000,000 or less telecommunications access lines in this State, but more than 300,000 telecommunications access lines in this State, the holder shall:

(1) Provide access to its cable or video service to a number of households equal to at least 25% of its telecommunications access lines in this State within 3 years after the date a holder receives a State-issued authorization from the Commission and to a number not less than 35% of these households within 5 years after the date a holder receives a State-issued authorization from the Commission;

provided, however, that the holder of a State-issued authorization is not required to meet the 35% requirement in this subsection until 2 years after at least 15% of the households with access to the holder’s video service subscribe to the service for 6 consecutive months.

The holder’s obligation to provide such access in the State shall be distributed, as the holder determines, within three different designated market areas.

(2) Within 3 years after the date a holder receives a State-issued authorization from the Commission at least SB0678 Enrolled - 47 - LRB095 08411 DRH 28585 b 30% of the total households with access to the holder’s cable or video service shall be low-income.

Within each designated market area identified in subsection (b)(1), the holder’s obligation to offer service to low-income households shall be measured by each exchange, as that term is defined in Section 13-206 of the Public Utilities Act, in which the holder chooses to provide cable or video service.

The holder is under no obligation to serve or provide access to an entire exchange;

however, in addition to the statewide obligation to provide low-income access provided by this Section, in each exchange in which the holder chooses to provide cable or video service, the holder shall provide access to a percentage of low-income households that is at least equal to the percentage of the total low-income households within that exchange.

(3) The number of telecommunication access lines in this Section shall be based on the number of access lines that exist as of the effective date of this amendatory Act of the 95th General Assembly.

(c) If the holder of a State-issued authorization is using telecommunications facilities to provide cable or video service and has more than 1,000,000 telecommunications access lines in this State, the holder shall:

(1)(A) Provide access to its cable or video service to a number of households equal to at least 35% of the households in SB0678 Enrolled - 48 - LRB095 08411 DRH 28585 b the holder’s telecommunications service area in the State within 3 years after the date a holder receives a State-issued authorization from the Commission and to a number not less than 50% of these households within 5 years after the date a holder receives a State-issued authorization from the Commission;

provided, however, that the holder of a State-issued authorization is not required to meet the 50% requirement in this subsection until 2 years after at least 15% of the households with access to the holder’s video service subscribe to the service for 6 consecutive months.

The holder’s obligation to provide such access in the State shall be distributed, as the holder determines, within three designated market areas, one in each of the northeastern, central and southwestern portions of the holder’s telecommunications service area in the State.

The designated market area for the northeastern portion shall consist of two separate and distinct reporting areas:

i) a city with more than 1,000,000 inhabitants, and ii) all other local units of government on a combined basis within such designated market area in which it offers video service.

(B) If any state, in which a holder subject to this subsection (c) or one of its affiliates provides or seeks to provide cable or video service, adopts a law permitting state-issued authorization or statewide franchises to provide cable or video service that requires a cable or video provider to offer service to more than 35% of the households in the SB0678 Enrolled - 49 - LRB095 08411 DRH 28585 b cable or video provider’s service area in that state within 3 years, holders subject to this subsection (c) shall provide service in this State to the same percentage of households within 3 years of adoption of such law in that state.

Furthermore, if any state, in which a holder subject to this subsection (c) or one of its affiliates provides or seeks to provide cable or video service, adopts a law requiring a holder of a state-issued authorization or statewide franchises to offer cable or video service to more than 35% of its households if less than 15% of the households with access to the holder’s video service subscribe to the service for 6 consecutive months, then as a precondition to further build-out, holders subject to this subsection (c) shall be subject to the same percentage of service subscription in meeting its obligation to provide service to 50% of the households in this State.

(2) Within 3 years after the date a holder receives a State-issued authorization from the Commission at least 30% of the total households with access to the holder’s cable or video service shall be low-income.

Within each designated market area listed in subsection (c)(1), the holder’s obligation to offer service to low-income households shall be measured by each exchange, as that term is defined in Section 13-206 of the Public Utilities Act in which the holder chooses to provide cable or video service.

The holder is under no obligation to serve or provide access to an SB0678 Enrolled - 50 - LRB095 08411 DRH 28585 b entire exchange;

however, in addition to the statewide obligation to provide low-income access provided by this Section, in each exchange in which the holder chooses to provide cable or video service, the holder shall provide access to a percentage of low-income households that is at least equal to the percentage of the total low-income households within that exchange.

(d)(1) All other holders shall only provide access to one or more exchanges, as that term is defined in Section 13-206 of the Public Utilities Act, or to local units of government and shall provide access to their cable or video service to a number of households equal to 35% of the households in the exchange or local unit of government within 3 years after the date a holder receives a State-issued authorization from the Commission and to a number not less than 50% of these households within 5 years after the date a holder receives a State-issued authorization from the Commission, provided, however, that if the holder is an incumbent cable operator or any successor-in-interest company, it shall be obligated to provide access to cable or video services within the jurisdiction of a local unit of government at the same levels required by the local franchising authorities for that local unit of government on the effective date of this amendatory Act of the 95th General Assembly.

(2) Within 3 years after the date a holder receives a State-issued authorization from the Commission, at least 30% of SB0678 Enrolled - 51 - LRB095 08411 DRH 28585 b the total households with access to the holder’s cable or video service shall be low-income.

Within each designated exchange, as that term is defined in Section 13-206 of the Public Utilities Act, or local unit of government listed in subsection (d)(1), the holder’s obligation to offer service to low-income households shall be measured by each exchange or local unit of government in which the holder chooses to provide cable or video service.

Except as provided in subsection (d)(1), the holder is under no obligation to serve or provide access to an entire exchange or local unit of government;

however, in addition to the statewide obligation to provide low-income access provided by this Section, in each exchange or local unit of government in which the holder chooses to provide cable or video service, the holder shall provide access to a percentage of low-income households that is at least equal to the percentage of the total low-income households within that exchange or local unit of government.

(e) A holder subject to Section 21-1101(c) shall provide wireline broadband service, defined as wireline service 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, to a number of households equal to 90% of the households in the holder’s telecommunications service area by December 31, 2008, or shall pay within 30 days of December 31, 2008 a sum of $15,000,000 to SB0678 Enrolled - 52 - LRB095 08411 DRH 28585 b the Digital Divide Elimination Infrastructure Fund established pursuant to Section 13-301.3 of Article XIII of this Act, or any successor fund established by the General Assembly.

In that event the holder is required to make a payment pursuant to this subsection, the holder shall have no further accounting for this payment, which shall be used in any part of the State for the purposes established in the Digital Divide Elimination Infrastructure Fund or for broadband deployment.

(f) The holder of a State-issued authorization may satisfy the requirements of subsections (b), (c) and (d) of this Section through the use of any technology, which shall not include direct-to-home satellite service, that offers service, functionality, and content, which is demonstrably similar to that provided through the holder’s video service system.

(g) In any investigation into or complaint alleging that the holder of a State-issued authorization has failed to meet the requirements of this Section, the following factors may be considered in justification or mitigation or as justification for an extension of time to meet the requirements of subsections (b), (c) and (d) of this Section:

(1) The inability to obtain access to public and private rights-of-way under reasonable terms and conditions.

(2) Barriers to competition arising from existing exclusive service arrangements in developments or buildings.

SB0678 Enrolled - 53 - LRB095 08411 DRH 28585 b (3) The inability to access developments or buildings using reasonable technical solutions under commercially reasonable terms and conditions.

(4) Natural disasters.

(5) Other factors beyond the control of the holder.

(h) If the holder relies on the factors identified in subsection (g) in response to an investigation or complaint, the holder shall demonstrate:

(1) what substantial effort the holder of a State-issued authorization has taken to meet the requirements of subsections (a), (b) or (c) of this Section;

(2) which portions of subsection (g) of this Section apply;

and (3) the number of days it has been delayed or the requirements it cannot perform as a consequence of subsection (g) of this Section.

(i) The factors in subsection (g) may be considered by the Attorney General or by a court of competent jurisdiction in determining whether the holder is in violation of this Article.

(j) Every holder of a State-issued authorization, no later than April 1, 2009, and annually no later than April 1 thereafter, shall report to the Commission for each of the service areas as described in subsections (b), (c) and (d) of this Section in which it provides access to its video service in the State, the following information:

SB0678 Enrolled - 54 - LRB095 08411 DRH 28585 b (1) Cable Service and Video Service Information:

(A) The number of households in the holder’s telecommunications service area within each designated market area as described in subsections (b) and (c) of this Section or exchange or local unit of government as described in subsection (d) of this Section in which it offers video service.

(B) The number of households in the holder’s telecommunications service area within each designated market area as described in subsections (b) and (c) of this Section or exchange or local unit of government as described in subsection (d) of this Section that are offered access to video service by the holder.

(C) The number of households in the holder’s telecommunications service area in the State.

(D) The number of households in the holder’s telecommunications service area in the State that are offered access to video service by the holder.

(2) Low-Income Household Information:

(A) The number of low-income households in the holder’s telecommunications service area within each designated market area as described in subsections (b) and (c) of this Section, as further identified in terms of exchanges, or exchange or local unit of government as described in subsection (d) of this Section, in which it offers video service.

SB0678 Enrolled - 55 - LRB095 08411 DRH 28585 b (B) The number of low-income households in the holder’s telecommunications service area within each designated market area as described in subsections (b) and (c) of this Section, as further identified in terms of exchanges, or exchange or local unit of government as described in subsection (d) of this Section in the State, that are offered access to video service by the holder.

(C) The number of low-income households in the holder’s telecommunications service area in the State.

(D) The number of low-income households in the holder’s telecommunications service area in the State that are offered access to video service by the holder.

(k) The Commission, within 30 days of receiving the first report from holders under this Section, and annually no later than July 1 thereafter, shall submit to the General Assembly a report that includes, based on year-end data, the information submitted by holders pursuant to subsections (j)(1) and (j)(2) of this Section.

The Commission shall make this report available to any member of the public or any local unit of government upon request.

All information submitted to the Commission and designated by holders as confidential and proprietary shall be subject to the disclosure provisions in Section 21-401(c).

No individually identifiable customer information shall be subject to public disclosure.

SB0678 Enrolled - 56 - LRB095 08411 DRH 28585 b (220 ILCS 5/21-1201 new) Sec.

21-1201.

Multiple-unit dwellings-Interference with Holder Prohibited.

(a) Neither the owner of any multiple-unit residential dwelling nor an agent or representative shall unreasonably interfere with the right of any tenant or lawful resident thereof to receive cable service or video service installation or maintenance from a holder of a State-issued authorization;

provided, however, the owner, agent or representative may require just and reasonable compensation from the holder for its access to and use of such property to provide installation, operation, maintenance, or removal of such cable service or video service.

(b) Neither the owner of any multiple-unit residential dwelling nor an agent or representative shall ask, demand or receive any additional payment, service or gratuity in any form from any tenant or lawful resident thereof as a condition for permitting or cooperating with the installation of a cable service or video service to the dwelling unit occupied by a tenant or resident requesting such service.

(c) Neither the owner of any multiple-unit residential dwelling nor an agent or representative shall penalize, charge or surcharge a tenant or resident, or forfeit or threaten to forfeit any right of such tenant or resident, or discriminate in any way against such tenant or resident who requests or receives cable service or video service from a holder.

SB0678 Enrolled - 57 - LRB095 08411 DRH 28585 b (d) Nothing in this Section shall prohibit the owner of any multiple-unit residential dwelling nor an agent or representative from requiring that a holder’s facilities conform to reasonable conditions necessary to protect safety, functioning, appearance, and value of premises or the convenience and safety of persons or property.

(e) The owner of any multiple-unit residential dwelling or an agent or representative may require a holder to agree to indemnify the owner, or his agents or representatives, for damages or from liability for damages caused by the installation, operation, maintenance or removal of cable service or video service facilities.

(220 ILCS 5/21-1301 new) Sec.

21-1301.

Enforcement, Penalties.

(a) The Attorney General is responsible for administering and ensuring holders’ compliance with this Article, provided that nothing in this Article shall deprive local units of government of the right to enforce applicable rights and obligations.

(b) The Attorney General may conduct an investigation regarding possible violations by holders of this Article including, without limitation, the issuance of subpoenas to:

(1) require the holder to file a statement or report or to answer interrogatories in writing as to all information relevant to the alleged violations;

SB0678 Enrolled - 58 - LRB095 08411 DRH 28585 b (2) examine, under oath, any person who possesses knowledge or information related to the alleged violations;

and (3) examine any record, book, document, account, or paper related to the alleged violation.

(c) If the Attorney General determines that there is a reason to believe that a holder has violated or is about to violate this Article, the Attorney General may bring an action in a court of competent jurisdiction in the name of the People of the State against the holder to obtain temporary, preliminary, or permanent injunctive relief and civil penalties for any act, policy, or practice by the holder that violates this Article.

(d) If a court orders a holder to make payments to the Attorney General and the payments are to be used for the operations of the Office of the Attorney General or if a holder agrees to make payments to the Attorney General for the operations of the Office of the Attorney General as part of an Assurance of Voluntary Compliance, then the moneys paid under any of the conditions described in this subsection shall be deposited into the Attorney General Court Ordered and Voluntary Compliance Payment Projects Fund.

Moneys in the Fund shall be used, subject to appropriation, for the performance of any function pertaining to the exercise of the duties to the Attorney General including, but not limited to, enforcement of any law of this State and conducting public education programs;

SB0678 Enrolled - 59 - LRB095 08411 DRH 28585 b however, any moneys in the Fund that are required by the court to be used for a particular purpose shall be used for that purpose.

(e) In an action against a holder brought pursuant to this Article, the Attorney General may seek the assessment of one or more of the following civil monetary penalties in any action filed under this Article where the holder violates this Article and does not remedy the violation within 30 days of notice by the Attorney General:

(1) Any holder that violates or fails to comply with any of the provisions of this Article or of its State-issued authorization shall be subject to a civil penalty of up to $30,000 for each and every offense, or .00825% of the holder’s gross revenues, as defined in Section 21-801, whichever is greater.

Every violation of the provisions of this Article by a holder is a separate and distinct offense, provided, however, that if the same act or omission violates more than one provision of this Article, only one penalty or cumulative penalty may be imposed for such act or omission.

In case of a continuing violation, each day’s continuance thereof shall be a separate and distinct offense, provided, however, that the cumulative penalty for any continuing violation shall not exceed $500,000 per year, and provided further that these limits shall not apply where the violation was intentional and either (i) created substantial risk to the safety of SB0678 Enrolled - 60 - LRB095 08411 DRH 28585 b the cable service or video service provider’s employees or customers or the public or (ii) was intended to cause economic benefits to accrue to the violator.

(2) The holder’s State-issued authorization may be suspended or revoked if the holder fails to comply with the provisions of this Article after a reasonable time to achieve compliance has passed.

(3) If the holder is in violation of Section 21-1101, in addition to any other remedies provided by law, a fine not to exceed 3% of the holder’s total monthly gross revenue as that term is defined in this Article, shall be imposed for each month from the date of violation until the date that compliance is achieved.

(4) Nothing in this Section shall limit or affect the powers of the Attorney General to enforce the provisions of the Cable and Video Customer Protection Law, 220 ILCS 5/70-501 new, or the Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505.

(220 ILCS 5/21-1401 new) Sec.

21-1401.

Home rule.

(a) The provisions of this Article are a limitation of home rule powers under subsection (i) of Section 6 of Article VII of the Illinois Constitution.

(b) Nothing in this Article shall be construed to limit or deny a home rule unit’s power to tax as set forth in Section 6 SB0678 Enrolled - 61 - LRB095 08411 DRH 28585 b of Article VII of the Illinois Constitution.

(220 ILCS 5/21-1501 new) Sec.

21-1501.

Except as otherwise provided in this Article, this Article shall be enforced only by a court of competent jurisdiction.

(220 ILCS 5/21-1601 new) Sec.

21-1601.

Repealer.

This Article is repealed October 1, 2013.

Section 15-7.

The Illinois Administrative Procedure Act is amended by changing Section 1-5 as follows:

(5 ILCS 100/1-5) (from Ch.

127, par.

1001-5) Sec.

1-5.

Applicability.

(a) This Act applies to every agency as defined in this Act.

Beginning January 1, 1978, in case of conflict between the provisions of this Act and the Act creating or conferring power on an agency, this Act shall control.

If, however, an agency (or its predecessor in the case of an agency that has been consolidated or reorganized) has existing procedures on July 1, 1977, specifically for contested cases or licensing, those existing provisions control, except that this exception respecting contested cases and licensing does not apply if the Act creating or conferring power on the agency adopts by SB0678 Enrolled - 62 - LRB095 08411 DRH 28585 b express reference the provisions of this Act.

Where the Act creating or conferring power on an agency establishes administrative procedures not covered by this Act, those procedures shall remain in effect.

(b) The provisions of this Act do not apply to (i) preliminary hearings, investigations, or practices where no final determinations affecting State funding are made by the State Board of Education, (ii) legal opinions issued under Section 2-3.7 of the School Code, (iii) as to State colleges and universities, their disciplinary and grievance proceedings, academic irregularity and capricious grading proceedings, and admission standards and procedures, and (iv) the class specifications for positions and individual position descriptions prepared and maintained under the Personnel Code.

Those class specifications shall, however, be made reasonably available to the public for inspection and copying.

The provisions of this Act do not apply to hearings under Section 20 of the Uniform Disposition of Unclaimed Property Act.

(c) Section 5-35 of this Act relating to procedures for rulemaking does not apply to the following:

(1) Rules adopted by the Pollution Control Board that, in accordance with Section 7.2 of the Environmental Protection Act, are identical in substance to federal regulations or amendments to those regulations implementing the following:

Sections 3001, 3002, 3003, 3004, 3005, and 9003 of the Solid Waste Disposal Act;

SB0678 Enrolled - 63 - LRB095 08411 DRH 28585 b Section 105 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980;

Sections 307(b), 307(c), 307(d), 402(b)(8), and 402(b)(9) of the Federal Water Pollution Control Act;

and Sections 1412(b), 1414(c), 1417(a), 1421, and 1445(a) of the Safe Drinking Water Act.

(2) Rules adopted by the Pollution Control Board that establish or amend standards for the emission of hydrocarbons and carbon monoxide from gasoline powered motor vehicles subject to inspection under Section 13A-105 of the Vehicle Emissions Inspection Law and rules adopted under Section 13B-20 of the Vehicle Emissions Inspection Law of 1995.

(3) Procedural rules adopted by the Pollution Control Board governing requests for exceptions under Section 14.2 of the Environmental Protection Act.

(4) The Pollution Control Board’s grant, pursuant to an adjudicatory determination, of an adjusted standard for persons who can justify an adjustment consistent with subsection (a) of Section 27 of the Environmental Protection Act.

(5) Rules adopted by the Pollution Control Board that are identical in substance to the regulations adopted by the Office of the State Fire Marshal under clause (ii) of paragraph (b) of subsection (3) of Section 2 of the Gasoline Storage Act.

SB0678 Enrolled - 64 - LRB095 08411 DRH 28585 b (d) Pay rates established under Section 8a of the Personnel Code shall be amended or repealed pursuant to the process set forth in Section 5-50 within 30 days after it becomes necessary to do so due to a conflict between the rates and the terms of a collective bargaining agreement covering the compensation of an employee subject to that Code.

(e) Section 10-45 of this Act shall not apply to any hearing, proceeding, or investigation conducted under Section 13-515 of the Public Utilities Act.

(f) Article 10 of this Act does not apply to any hearing, proceeding, or investigation conducted by the State Council for the State of Illinois created under Section 3-3-11.05 of the Unified Code of Corrections or by the Interstate Commission Commision for Adult Offender Supervision created under the Interstate Compact for Adult Offender Supervision.

(g) This Act is subject to the provisions of Article XXI of the Public Utilities Act.

To the extent that any provision of this Act conflicts with the provisions of that Article XXI, the provisions of that Article XXI control.

(Source:

P.A.

92-571, eff.

6-26-02;

revised 7-25-02.) Section 15-10.

The Attorney General Act is amended by changing Section 6.5 as follows:

(15 ILCS 205/6.5) Sec.

6.5.

Consumer Utilities Unit.

SB0678 Enrolled - 65 - LRB095 08411 DRH 28585 b (a) The General Assembly finds that the health, welfare, and prosperity of all Illinois citizens, and the public’s interest in adequate, safe, reliable, cost-effective electric, natural gas, water, cable, video, and telecommunications services, requires effective public representation by the Attorney General to protect the rights and interests of the public in the provision of all elements of electric, natural gas, water, cable, video, and telecommunications service both during and after the transition to a competitive market, and that to ensure that the benefits of competition in the provision of electric, natural gas, water, cable, video, and telecommunications services to all consumers are attained, there shall be created within the Office of the Attorney General a Consumer Utilities Unit.

(b) As used in this Section:

"Electric services" means services sold by an electric service provider.

"Electric service provider" shall mean anyone who sells, contracts to sell, or markets electric power, generation, distribution, transmission, or services (including metering and billing) in connection therewith.

Electric service providers shall include any electric utility and any alternative retail electric supplier as defined in Section 16-102 of the Public Utilities Act.

(b-5) As used in this Section:

"Telecommunications services" means services sold by a telecommunications carrier, as provided for in Section 13-203 of the Public Utilities Act.

SB0678 Enrolled - 66 - LRB095 08411 DRH 28585 b "Telecommunications carrier" means anyone who sells, contracts to sell, or markets telecommunications services, whether noncompetitive or competitive, including access services, interconnection services, or any services in connection therewith.

Telecommunications carriers include any carrier as defined in Section 13-202 of the Public Utilities Act.

(b-10) As used in this Section:

"natural gas services" means natural gas services sold by a "gas utility" or by an "alternative gas supplier", as those terms are defined in Section 19-105 of the Public Utilities Act.

(b-15) As used in this Section:

"water services" means services sold by any corporation, company, limited liability company, association, joint stock company or association, firm, partnership, or individual, its lessees, trustees, or receivers appointed by any court and that owns, controls, operates, or manages within this State, directly or indirectly, for public use, any plant, equipment, or property used or to be used for or in connection with (i) the production, storage, transmission, sale, delivery, or furnishing of water or (ii) the treatment, storage, transmission, disposal, sale of services, delivery, or furnishing of sewage or sewage services.

(b-20) As used in this Section:

"cable service and video service" means services sold by anyone who sells, contracts to sell or markets cable services or video services pursuant to a State-issued authorization under the Cable and Video Competition Law of 2007.

SB0678 Enrolled - 67 - LRB095 08411 DRH 28585 b (c) There is created within the Office of the Attorney General a Consumer Utilities Unit, consisting of Assistant Attorneys General appointed by the Attorney General, who, together with such other staff as is deemed necessary by the Attorney General, shall have the power and duty on behalf of the people of the State to intervene in, initiate, enforce, and defend all legal proceedings on matters relating to the provision, marketing, and sale of electric, natural gas, water, and telecommunications service whenever the Attorney General determines that such action is necessary to promote or protect the rights and interests of all Illinois citizens, classes of customers, and users of electric, natural gas, water, and telecommunications services.

(d) In addition to the investigative and enforcement powers available to the Attorney General, including without limitation those under the Consumer Fraud and Deceptive Business Practices Act, the Illinois Antitrust Act, and any other law of this State, the Attorney General shall be a party as a matter of right to all proceedings, investigations, and related matters involving the provision of electric, natural gas, water, and telecommunications services before the Illinois Commerce Commission, the courts, and other public bodies.

Upon request, the Office of the Attorney General shall have access to and the use of all files, records, data, and documents in the possession or control of the Commission.

The Office of the Attorney General may use information obtained SB0678 Enrolled - 68 - LRB095 08411 DRH 28585 b under this Section, including information that is designated as and that qualifies for confidential treatment, which information the Attorney General’s office shall maintain as confidential, to be used for law enforcement purposes only, which information may be shared with other law enforcement officials.

Nothing in this Section is intended to take away or limit any of the powers the Attorney General has pursuant to common law or other statutory law.

(Source:

P.A.

94-291, eff.

7-21-05.) Section 15-15.

The Counties Code is amended by changing Section 5-1095 and by adding Section 5-1096.5 as follows:

(55 ILCS 5/5-1095) (from Ch.

34, par.

5-1095) Sec.

5-1095.

Community antenna television systems;