State of Illinois
92nd General Assembly
Legislation

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92_HB2156

 
                                               LRB9205754JSpc

 1        AN ACT concerning telecommunications.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  State  Finance Act is amended by adding
 5    Section 5.545 as follows:

 6        (30 ILCS 105/5.545 new)
 7        Sec. 5.545.  The Universal Service Fund.

 8        Section 10.  The  Public  Utilities  Act  is  amended  by
 9    adding Article XIIIE as follows:

10        (220 ILCS 5/Art. XIIIE heading, new)
11          ARTICLE XIIIE. UNIVERSAL SERVICE SUPPORT FUNDING
12                            AND PROGRAMS

13        (220 ILCS 5/13E-101 new)
14        Sec. 13E-101.  Scope and purpose.
15        (a)  This Article is designed to authorize the Commission
16    to establish a Universal Service Fund and programs to further
17    the   goal   of   providing   a   basic   set   of  essential
18    telecommunications services and access  to  advanced  service
19    capabilities to all customers of the State.
20        (b)  The  requirements  of this Article shall be observed
21    by  the   telecommunications   providers   subject   to   the
22    jurisdiction  of the Commission as indicated in this Article,
23    except  insofar  as  any  exemption  may  be  made   by   the
24    Commission.   Except  as otherwise expressly provided by law,
25    the requirements of this Article apply to  telecommunications
26    providers.
27        (c)  Nothing  in  this Article shall preclude special and
28    individual  consideration  being  given  to  exceptional   or
 
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 1    unusual  situations  and  upon due investigation of the facts
 2    and circumstances involved, the adoption of  requirements  as
 3    to  individual  providers  or  services  that  may be lesser,
 4    greater, other or  different  than  those  provided  in  this
 5    Article.
 6        (d)  Disputes  not  resolved between the affected parties
 7    regarding assessment or support amounts or the eligibility to
 8    receive or the liability to pay under this Article  shall  be
 9    referred to the Commission for resolution.
10        (e)  This  Article shall be enforced under the provisions
11    of Article X and such other means as provided in this Act.
12        (f)  The Commission may issue orders it  deems  necessary
13    to  assist  in  the  implementation or interpretation of this
14    Article.

15        (220 ILCS 5/13E-105 new)
16        Sec. 13E-105.  Definitions.  The definitions  in  Article
17    XIII apply in this Article.  In addition, in this Article:
18        "Calculated   charge"  means  the  charge  calculated  by
19    converting a per call charge into a per minute  charge.   The
20    conversion  to  a  per minute charge shall be accomplished by
21    dividing  the  per  call  charge  by  the  telecommunications
22    provider's average residential call duration.  If  there  are
23    multiple  per call charges within one local calling area, the
24    weighted average shall be used as the per call charge.
25        "Contributory  provider"   means   a   telecommunications
26    provider that pays moneys to the Universal Service Fund.
27        "Disability"  means a physical or sensory impairment that
28    limits or curtails an individual's  access  to  or  usage  of
29    telecommunications services.  "Disability" includes a speech,
30    vision  or  hearing  impairment  and  motion impairments that
31    limit an individual's ability  to  handle  telecommunications
32    equipment.
33        "Emergency  service  numbers"  mean 9-1-1 where available
 
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 1    and fire, emergency medical services,  law  enforcement,  and
 2    poison center emergency numbers where 9-1-1 is not available.
 3        "Federal high cost program" means any program established
 4    by  the  federal  Communications  Commission  under 47 CFR 54
 5    subpart D.
 6        "Institutions" means:
 7             (1)  not-for-profit  schools,  which  includes  each
 8        school in a  public  school  district,  private  schools,
 9        charter  schools,  colleges  and universities, and public
10        community college districts;
11             (2)  public libraries; and
12             (3)  not-for-profit hospitals.
13        "Lifeline"  means  the  program  that  provides   reduced
14    monthly service rates for low-income customers.
15        "Link-Up"   means   the   program   that  waives  service
16    connection charges for low-income customers.
17        "Local exchange service provider"  means  any  commercial
18    mobile  radio service provider that has been designated as an
19    eligible telecommunications carrier under Section 13E-215  or
20    a  telecommunications  carrier or any other provider of basic
21    local exchange service or standard business lines and usage.
22        "Low-income" means a  household  that  receives  benefits
23    from one or more of the following programs:
24             (1)  Article IV of the Illinois Public Aid Code;
25             (2)  medical assistance under 42 USC 1395;
26             (3)  supplemental  security income under 42 USC 1381
27        to 1385c;
28             (4)  food stamps under 7 USC 2011 to 2029;
29             (5)  the energy assistance program under the  Energy
30        Assistance Act of 1989; or
31             (6)  any   other  State  or  federally  administered
32        programs, approved by the Commission, for households with
33        income levels equal to or less than 200% of  the  poverty
34        line as defined in 42 USC 9902 (2).
 
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 1        "Non-profit  group"  means  an  organization described in
 2    Section 501 (c) (3) of the  Internal  Revenue  Code  that  is
 3    exempt  from  federal income tax under Section 501 (a) of the
 4    Internal Revenue Code.
 5        "Nonrecurring  charge"  means  the   charge   for   those
 6    activities   and   materials  necessary  to  connect  network
 7    services to the customer's premises, up to and including  the
 8    network  interface device but not including customer premises
 9    wiring or customer  premises  equipment,  and  not  including
10    construction charges.
11        "Rural telephone company" has the meaning given in 47 USC
12    153 (37).
13        "Two-line  voice  carryover" means the technique of using
14    3-way calling and 2 telephone lines, one for  voice  and  one
15    for TTY or similar equipment, to connect a caller who is deaf
16    or hard of hearing but can speak, with another caller via the
17    telecommunications relay service.
18        "Universal  service"  means a statewide rapid, efficient,
19    communications network  with  adequate,  economically  placed
20    facilities   to   assure   that  a  basic  set  of  essential
21    telecommunications services is available to  all  persons  in
22    this State at affordable prices and that the advanced service
23    capabilities  of  a  modern telecommunications infrastructure
24    are affordable and accessible  to  all  areas  of  the  State
25    within a reasonable time.

26        (220 ILCS 5/13E-110 new)
27        Sec. 13E-110.  Essential telecommunications services.
28        (a)  A   local   exchange  service  provider  shall  make
29    available to all  its  customers  at  affordable  prices  all
30    essential telecommunications services.
31        (b)  "Essential  telecommunications  services"  means all
32    the following:
33             (1)  Single-party voice-grade service with:
 
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 1                  (A)  line   quality   capable   of    facsimile
 2             transmission;
 3                  (B)  line  quality capable of data transmission
 4             as specified in Section 13E-115;
 5                  (C)  dual-tone multi-frequency touch  tone  and
 6             rotary pulse dialing operability;
 7                  (D)  access  to  emergency services numbers and
 8             9-1-1   operability   where   requested   by   local
 9             authorities;
10                  (E)  equal access  to  interlata  interexchange
11             carriers    subject    to   federal   Communications
12             Commission orders and rules;
13                  (F)  equal access  to  intralata  interexchange
14             carriers   pursuant   to   schedules,   terms,   and
15             conditions imposed by Commission orders and rules;
16                  (G)  single  party  revertive  calling, if 2 or
17             more pieces of customer premises  equipment  can  be
18             simultaneously  active  on the line or channel being
19             used by the customer;
20                  (H)  a  reasonably  adequate  number  of  calls
21             within a reasonably adequate local calling  area  as
22             defined by the Commission;
23                  (I)  connectivity  with all public toll, local,
24             wireline, and wireless networks,  and  with  various
25             internet service providers;
26                  (J)  telecommunications    relay   service   to
27             facilitate  communication   between   teletypewriter
28             users and non-teletypewriter users;
29                  (K)  access to operator service;
30                  (L)  access to directory assistance;
31                  (M)  toll   blocking,   900   and   976  number
32             blocking, and extended  community  calling  blocking
33             options as specified in Section 13E-125;
34                  (N)  intercept  and  announcements  for vacant,
 
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 1             changed, suspended and disconnected numbers in  oral
 2             and TTY-readable formats; and
 3                  (O)  a  directory  listing  with the option for
 4             non-listed and non-published service.
 5             (2)  Annual  distribution  of  a   local   telephone
 6        directory.
 7             (3)  Timely repair.

 8        (220 ILCS 5/13E-115 new)
 9        Sec. 13E-115.  Essential data transmission capability.
10        (a)  The  data  transmission capability that is specified
11    in Section 13E-110 shall be at least 9600 bits per second.
12        (b)  For lines extending greater than  10,000  feet  from
13    the   central   office,  this  data  transmission  capability
14    requirement shall be met under an implementation schedule  to
15    be set by the Commission.

16        (220 ILCS 5/13E-120 new)
17        Sec. 13E-120.  Advanced service capabilities.
18        (a)  "Advanced   service   capabilities"  means  all  the
19    following:
20             (1)  Digital access lines and channels by January 1,
21        2003.
22             (2)  High-speed  data   transfer   connectivity   by
23        January 1, 2004.
24             (3)  Two-way  interactive  video  conferencing  at a
25        speed no less than  30  frames  per  second  and  two-way
26        interactive imaging capabilities by January 1, 2005.
27        (b)  In  the  absence of alternative providers and in the
28    presence  of  sufficient  demand,  or  to  promote   economic
29    development  and infrastructure development, a local exchange
30    service provider shall, by the date set  by  the  Commission,
31    make  available  to  any  customer  on  request,  in a timely
32    manner,  at   affordable   prices,   any   advanced   service
 
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 1    capabilities.
 2        (c)  Upon  its  own  motion,  upon  petition  by  a local
 3    exchange service provider for relief from  an  obligation  in
 4    subsection  (b), or upon petition by a customer alleging that
 5    an  advanced  service is not available in a timely manner, is
 6    needed but not scheduled for deployment under  this  Section,
 7    or  is  not priced at an affordable level, the Commission may
 8    investigate  the  offering  of  a  given   advanced   service
 9    capability.
10        The  investigation  shall address, but is not limited to,
11    the reasonableness of the required  investment  in  equipment
12    and  facilities, the presence of alternative providers, level
13    of  demand,   and   other    statutory   factors.   Following
14    investigation,  including notice and opportunity for hearing,
15    the Commission may determine, based on the above criteria,  a
16    deployment  schedule,  a maximum reasonable rate, whether the
17    provider requires assistance from the Universal Service  Fund
18    to  provide  the service, and any other requirement necessary
19    to meet customer demand for an advanced service capability.

20        (220 ILCS 5/13E-125 new)
21        Sec. 13E-125.  Toll blocking.
22        (a)  A local exchange service provider in the State shall
23    offer the capability to block all long  distance  calls  and,
24    separately,  the capability to block 900 and 976 number calls
25    and the capability to block extended community calling unless
26    a timely waiver  has  been  granted  to  the  local  exchange
27    service provider by the Commission.
28        (b)  Blocking  shall  be  without monthly or nonrecurring
29    charge to low-income customers and at no  charge  other  than
30    for second and subsequent service activation orders for other
31    residential and standard business line customers.
32        (c)  Blocking   shall   not  prevent  the  customer  from
33    reaching the emergency service numbers  appropriate  for  the
 
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 1    customer's location.
 2        (d)  A  local  exchange  service  provider shall make all
 3    reasonable efforts to inform  customers  within  its  service
 4    areas  of  the  availability of, and eligibility requirements
 5    for cost-free toll blocking  services,  900  and  976  number
 6    blocking  services  and  extended  community calling blocking
 7    services.  The local exchange  service  provider  shall  also
 8    make   reasonable  efforts  to  instruct  eligible  customers
 9    requesting the service in use of the equipment or service.
10        (e)  A local exchange service provider seeking  a  waiver
11    of  its  blocking obligations under this Section shall submit
12    to the Commission the following information:
13             (1)  the provider's name and address;
14             (2)  an  explanation  of  why  a  waiver  is   being
15        requested    and    of   why   the   provider   considers
16        implementation of blocking to be an unreasonable  expense
17        for the provider and its customers;
18             (3)  costs   of   hardware,  software,  programming,
19        customer education,  installation,  maintenance  and  any
20        other  costs,  on  a  per-customer  basis,  for  blocking
21        capability using customer premises equipment;
22             (4)  costs   of   hardware,  software,  programming,
23        customer education, installation,  maintenance,  and  any
24        other  costs,  on  a  per  customer  basis,  for blocking
25        equipment installed in  a  central  office,  providing  a
26        separate  calculation  for  each  exchange  for  which an
27        exemption is requested; and
28             (5)  an estimate of  the  number  of  customers,  by
29        exchange, expected to request the service.
30        (f)  The Commission staff shall review the waiver request
31    and  issue  a  letter to the provider granting or denying the
32    application.

33        (220 ILCS 5/13E-130 new)
 
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 1        Sec. 13E-130.  Universal Service Fund; programs.
 2        (a)  There is created in the  State  treasury  a  special
 3    fund  to  be  known  as the Universal Service Fund. Moneys in
 4    that Fund may be used for Fund  administration  and  for  the
 5    purpose  of  informing  the  public  regarding  the Universal
 6    Service Fund, its existence, purpose,  intent  and  areas  of
 7    use.
 8        (b)  Moneys  in  the  Fund  may  be   used for any of the
 9    following programs as adopted by the Commission and  pursuant
10    to appropriation:
11             (1)  Link-Up   America,   as  specified  in  Section
12        13E-140.
13             (2)  Lifeline assistance, as  specified  in  Section
14        13E-145.
15             (3)  Voice-mail   service   for   the  homeless,  as
16        specified in subsection (a) of Section 13E-210.
17             (4)  Telecommunications equipment  purchase  program
18        (TEPP) vouchers, as specified in Section 13E-160.
19             (5)  Telecommunications customer assistance program,
20        as specified in Section 13E-175.
21             (6)  High  rate  assistance credits, as specified in
22        Section 13E-180.
23             (7)  Alternative universal service protection plans,
24        as specified in Section 13E-190.
25             (8)  Rate shock mitigation, as specified in  Section
26        13E-195.
27             (9)  Assistance  to  institutions,  as  specified in
28        Section 13E-200.
29             (9)  Intralata toll service provider of last resort,
30        as specified in Section 13E-220.
31             (10)  Funding  for  programs  or  projects  approved
32        under subsection (b) of Section 13E-210.
33             (11)  Public interest pay telephones,  as  specified
34        in Section 13E-165.
 
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 1             (12)  Outreach  for  low-income assistance programs,
 2        as specified in Section 13E-150.
 3             (13)  Eligible      telecommunications      carriers
 4        designated under item (3) of subsection  (e)  of  Section
 5        13E-215.
 6             (14)  Advanced service capabilities, as specified in
 7        Section 13E-120.
 8             (15)  Second  line  for  2-line  voice carryover, as
 9        specified in Section 13E-160.
10             (16)  Medical telecommunications equipment programs.
11             (17)  Other programs consistent with the purposes of
12        this Article, as they are approved by the  Commission  on
13        an interim basis.
14        (c)  Moneys  in the Fund may be used to provide statewide
15    access,  through  the  Internet,  to   periodical   reference
16    information databases.
17        (d)  Moneys   in   the  Fund  may  be  used  to  pay  for
18    telecommunications  services  provided   to   State-supported
19    colleges and universities and to public community colleges.
20        (e)  Moneys  in  the  Fund  may be used to make grants to
21    school districts for technology for educational purposes.

22        (220 ILCS 5/13E-135 new)
23        Sec. 13E-135.  Eligibility for low-income programs.
24        (a)  Local exchange service  providers  shall  verify  an
25    applicant's eligibility for low-income assistance programs by
26    making  timely  queries  of  the  applicable databases of the
27    Department of Public Aid or other State  agencies.  Applicant
28    eligibility  shall be verified by finding the applicant to be
29    any of the following:
30             (1)  An  active  client  of  at  least  one  of  the
31        low-income programs, as defined in  Section 13E-105.
32             (2)  A member of the active client's household whose
33        low income qualifies the client  for  benefits  under  at
 
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 1        least  one  of  the  low-income  programs,  as defined in
 2        13E-105.
 3        (b)  Eligibility shall be  reconfirmed  on  at  least  an
 4    annual basis for all customers receiving lifeline assistance.
 5        (c)  Local  exchange  service  providers shall inquire of
 6    the customer  regarding  eligibility  of  that  customer  for
 7    low-income  programs  on  each  order  for  initial  or moved
 8    residential service and, orally or in writing, in  the  first
 9    contact   with   a   customer   during   a   year  concerning
10    disconnection or payment arrangements.
11        (d)  Local exchange service providers shall  comply  with
12    client authorization requirements of the Department of Public
13    Aid  or  other  State agencies for database queries necessary
14    for eligibility verification.  Customers shall  complete  and
15    remit  any  reasonably  required query authorization forms or
16    forfeit eligibility.
17        (e)  Lifeline and Link-Up programs are not  available  to
18    customers  who are dependents for federal income tax purposes
19    as defined in 26 USC 152 (1986), unless the customer is  more
20    than 60 years of age.

21        (220 ILCS 5/13E-140 new)
22        Sec. 13E-140.  Link-Up America program.
23        (a)  A  local  exchange  service provider shall waive all
24    applicable nonrecurring charges  when  initiating  or  moving
25    essential  telecommunications services, as defined in Section
26    13E-110, for low-income, single line customers.  All federal,
27    State, county  and  local  taxes  applicable  to  the  waived
28    charges shall also be waived.
29        (b)  Waivers  apply  for  new  service installations, for
30    moves from one residence to another, and for reconnection  of
31    an existing service.
32        (c)  Charges to be waived include the following, or their
33    equivalent:
 
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 1             (1)  service ordering;
 2             (2)  record change;
 3             (3)  central office connection;
 4             (4)  outside plant or line connection; and
 5             (5)  premises visit.
 6        (d)  Customers  whose  claim  of  eligibility for link-up
 7    benefits cannot be verified at the time the service order  is
 8    issued   may  be  billed  for  installation  charges.   These
 9    customers  shall  receive  a  grace  period  for  payment  of
10    installation charges until the due date of  the  second  bill
11    issued following installation of service.
12        The  local  exchange  service provider shall periodically
13    perform an eligibility verification check during  the  60-day
14    period from the date service is connected.  If the customer's
15    eligibility  cannot be confirmed within 45 days, the customer
16    shall be notified in writing  of  the  situation.   A  credit
17    shall  be issued for appropriate charges once eligibility has
18    been confirmed.
19        (e)  Customers who have  paid  installation  charges  may
20    receive  the  link-up  waiver  as  a  credit  on their bills,
21    providing that claim is made with the local exchange  service
22    provider  within  60 days following completion of the service
23    order and that all other link-up eligibility requirements are
24    met.
25        (f)  Local exchange service providers that  are  eligible
26    telecommunications carriers under Section 13E-215 may receive
27    reimbursement  from the Universal Service Fund for 50% of the
28    waived nonrecurring charges. Local exchange service providers
29    that are not eligible telecommunications carriers may receive
30    reimbursement from the Universal Service Fund for 100% of the
31    waived nonrecurring charges.

32        (220 ILCS 5/13E-145 new)
33        Sec. 13E-145.  Lifeline program.
 
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 1        (a)  A local exchange  service  provider  shall  offer  a
 2    lifeline monthly rate to all qualified low-income customers.
 3        (b)  The lifeline monthly rate includes:
 4             (1)  single-party residential service;
 5             (2)  touch-tone service;
 6             (3)  any 9-1-1 charges billed on the telephone bill;
 7             (4)  the federal subscriber line charge; and
 8             (5)  120  local  calls, excluding extended community
 9        calling calls.
10        The lifeline monthly rate  shall  be  the  total  of  the
11    residential  monthly  rates  for the services listed in items
12    (1) through (5)  minus $7 or, if the  total  of  the  monthly
13    residential  rates  for  the  services  listed  in  items (1)
14    through (5) is greater than $22, the  lifeline  monthly  rate
15    shall be $15. In no case, however, shall the lifeline monthly
16    rate be less than $3 or more than $15.
17        (c)  The  lifeline  monthly  rate  may appear as a credit
18    against the full standard tariffed rate on a  customer's bill
19    or as a special  rate  designation.  Whenever  possible,  the
20    lifeline rate shall begin to appear on an eligible customer's
21    bill  on the next bill date following the date of application
22    for lifeline assistance.  If  the  rate  does  not  begin  to
23    appear on the next bill date, when it does appear back credit
24    must  be  given. In cases where a customer's eligibility date
25    as found in the records of the Department of  Public  Aid  or
26    other  State  agencies  precedes  the last bill date prior to
27    application, credit shall also be given for one month's prior
28    bill.
29        (d)  Eligibility for lifeline assistance continues  until
30    the  next  bill  date following a failure to meet eligibility
31    requirements.
32        When the low-income energy assistance program is  one  of
33    the  customer's  qualifying  income  assistance programs, the
34    eligibility for lifeline assistance shall continue until  the
 
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 1    bill  date  in  the  next December following the close of the
 2    heating season.  At that time, lack of eligibility  shall  be
 3    re-verified  by  the  local  exchange service provider before
 4    removing the lifeline assistance from the customer's bill.
 5        (e)  Local  exchange  service   providers   may   receive
 6    reimbursement  from  the  Universal  Service Fund for 100% of
 7    that portion of the standard authorized rate for service that
 8    is in excess of the amount of the lifeline monthly rate  that
 9    is  eligible  for reimbursement from federal lifeline program
10    funds.
11        (f)  Customers eligible for lifeline or  link-up  America
12    assistance  may  not be charged a deposit for service if they
13    voluntarily accept toll blocking, may not be requested to pay
14    in advance for more than one month's local service bill,  and
15    may  not be disconnected from local service for nonpayment of
16    toll charges billed by the local exchange  service  provider.
17    Customers  that  otherwise  would be subject to disconnection
18    may be counseled to accept toll blocking.
19        (g)  A local exchange service provider acting  under  the
20    limited   conditions  specified  in  its  Commission-approved
21    telecommunications customer assistance program under  Section
22    13E-175  may  impose toll blocking or restriction on lifeline
23    customers.

24        (220 ILCS 5/13E-150 new)
25        Sec.   13E-150.  Outreach   for   low-income   assistance
26    programs.
27        (a)  Funding shall be  available  to  fund  collaborative
28    partnerships   between   community-based   organizations  and
29    telecommunications providers to increase participation of the
30    eligible populations in the Universal Service Fund low-income
31    support programs.
32        (b)  Funding from the Universal Service  Fund  for  these
33    collaborative efforts shall not exceed $250,000 in one year.
 
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 1        (c)  The  Commission  shall  annually  review  and  grant
 2    funding   based  on  complete  responses  to  a  request  for
 3    proposals.  Funding shall be  limited  to  not  more  than  6
 4    projects  with at least one project focused statewide and one
 5    project focused on the Chicago area, if feasible.
 6        (d)  The Commission shall contract for an  evaluation  of
 7    the  effectiveness of this program in promoting enrollment in
 8    low-income programs and subscribership to  telephone  service
 9    to  be  completed within 2 years after May 1, 2004.  The cost
10    of this evaluation shall not exceed  $25,000.   This  $25,000
11    shall  be  included  as  part  of  the $250,000 maximum total
12    funding available under this Section during the year in which
13    the evaluation occurs.

14        (220 ILCS 5/13E-155 new)
15        Sec. 13E-155.  Special needs certification.
16        (a)  A person with a  disability  may  determine  whether
17    that    disability    presents    a   barrier   to   use   of
18    telecommunications services. That person shall determine what
19    accommodations    are    needed    to    ensure     effective
20    telecommunications access.
21        (b)  When  a  local exchange service provider or the Fund
22    administrator   has   sound   reason    to    question    the
23    self-certification   of  a  customer  under  subsection  (a),
24    additional verification of disability, such as an appropriate
25    doctor's  written  medical  diagnosis  and   description   of
26    physical  limitations  and  special needs resulting from that
27    diagnosis, may  be  required  for  certification  of  special
28    telecommunications needs.

29        (220 ILCS 5/13E-160 new)
30        Sec.   13E-160.  Service   and   equipment   pricing  for
31    individuals with special needs.
32        (a)  Vouchers shall be available to assist customers with
 
                            -16-               LRB9205754JSpc
 1    a disability who have  special  needs  certification  in  the
 2    purchase  of  equipment  needed  to personally access and use
 3    essential  services  of   the   telecommunications   network.
 4    Vouchers  may  not be used to purchase equipment that will be
 5    used exclusively for commercial purposes.
 6        (b)  Vouchers shall be limited to the  following  amounts
 7    by category of disability:
 8             (1)  $200 for hard of hearing.
 9             (2)  $800 for deaf and severely hard of hearing.
10             (3)  $1,600 for speech impaired.
11             (4)  $1,600 for mobility impaired.
12             (5)  $2,500 for deaf-low vision.
13             (6)  $7,200 for deaf-blind.
14        (c)  A voucher recipient under item (1) of subsection (a)
15    is  not  required  to  make  a  co-payment. All other voucher
16    recipients are required to make a co-payment of $100  at  the
17    time the equipment is purchased.  Pursuant to subsection (f),
18    for  low  income  customers the co-payment may be supplied by
19    funding through  the  telecommunications  assistance  program
20    (TAP).
21        (d)  The Commission shall annually establish a budget for
22    the total voucher program.
23        (e)  Customers   with  disabilities  may  obtain  voucher
24    application forms from the Fund  administrator,  their  local
25    exchange  service  provider,  or  other  sources.   Completed
26    voucher application forms shall be submitted to the Universal
27    Service Fund administrator.
28        (f)  Applicants  for vouchers under this Section shall be
29    Illinois residents.   An applicant may not receive a  voucher
30    for  equipment for the same disability more than once every 3
31    years.  An applicant may receive a voucher for equipment even
32    if another person in the same household has also  received  a
33    voucher.
34        (g)  Applications  shall  be  granted  on  a  first-come,
 
                            -17-               LRB9205754JSpc
 1    first-served    basis,    except    no    single   disability
 2    classification described in  subsection  (b)  may  be  issued
 3    vouchers  totalling  more than 75% of the total annual budget
 4    within the first 3 quarters of the budget year.
 5        (h)  A waiting list shall be established for applications
 6    held pending available funding or pursuant to subsection (g).
 7        (i)  The  Commission   may   establish   new   disability
 8    categories and voucher maximums if a need is identified.
 9        (j)  Vendors  may  redeem  vouchers,  submitted  with  an
10    invoice,  from  the  Universal  Service  Fund  administrator.
11    Reimbursement  may not exceed the total purchase price of the
12    equipment  with  tax  less,  where  applicable,  a   customer
13    co-payment of $100.
14        (k)  The  Commission  may impose reasonable limits on the
15    types and quantities of devices that may  be  purchased  with
16    one voucher.
17        (l)  The  Fund  administrator shall maintain lists of the
18    types and quantities of equipment eligible for purchase  with
19    a  single  voucher  in  each  category  under subsection (b).
20    Revisions to the list shall be done periodically by the  Fund
21    administrator  in  consultation with the Commission staff and
22    representatives  selected  by  the  Universal  Service   Fund
23    Council.   Input  regarding  revisions  may be solicited from
24    vendors, representatives of  interested  groups  serving  the
25    disabled and others, as appropriate.
26        (m)  Equipment  purchases involving individual exceptions
27    to the eligible equipment lists under subsection (l)  may  be
28    granted by the Fund administrator only following consultation
29    with   Commission   staff.   Commission   staff,   the   Fund
30    administrator,  or  both,  may  solicit  input regarding such
31    exceptions from vendors, representatives of interested groups
32    serving the disabled and others, as appropriate.
33        (n)  Objections to items included on or excluded from the
34    eligible  equipment  lists   and   determinations   regarding
 
                            -18-               LRB9205754JSpc
 1    individual   exceptions   shall   be   handled   as  informal
 2    complaints.  The Commission staff shall review the  objection
 3    and  issue  a  letter  addressing it.  These decisions may be
 4    appealed to the Commission.
 5        (o)  Customer premises equipment required to meet special
 6    telecommunications needs of those with disabilities shall  be
 7    tariffed  by the telecommunications carrier for monthly lease
 8    at rates that recover, over a reasonable period of time, only
 9    the  carrier's  direct  costs  for  the   customer   premises
10    equipment,  plus directly attributable overheads.  No further
11    contribution to the carrier's earnings  or  general  overhead
12    costs shall be included in calculating the rate.
13        (p)  Certified  hearing-impaired  customers and certified
14    speech impaired customers who need to  use  a  teletypewriter
15    for  telephonic  conversations  shall receive discounted long
16    distance    service.     For     these     customers,     all
17    telecommunications  providers offering long distance services
18    shall,  at  a  minimum,  apply  their  evening  or   off-peak
19    discounts  or  rate  schedules  in  the  daytime or peak rate
20    period and  their  weekend  or  off-peak  discounts  or  rate
21    schedules in all other rate periods.
22        (q)  Customers  with  certified disabilities that prevent
23    them from using the telephone directory shall not be  charged
24    for  a  reasonable  number of directory assistance calls in a
25    month.
26        (r)  Customers with certified disabilities  that  prevent
27    them  from  directly  dialing  or  keying  calls shall not be
28    charged for operator assistance to place calls.
29        (s)  Customers with certified disabilities who  deem  one
30    or more custom calling services essential in order to receive
31    service  that  is  useful  and  comparable  to  the essential
32    service provided  to  other  customers  shall  receive  those
33    services  without charge.  Hearing-impaired customers who are
34    able and choose to use 2-line voice carryover  shall  not  be
 
                            -19-               LRB9205754JSpc
 1    charged  any  intrastate  nonrecurring charge or monthly rate
 2    for the second line.  The  local  exchange  service  provider
 3    shall  receive  reimbursement from the Universal Service Fund
 4    for the amount waived.

 5        (220 ILCS 5/13E-165 new)
 6        Sec. 13E-165.  Public interest pay telephones.
 7        (a)  The Commission  shall  assure  provision  of  a  pay
 8    telephone where it determines that the public health, safety,
 9    and   welfare   is  jeopardized  without  the  telephone  yet
10    insufficient demand, usage, or other public or private  funds
11    are  available  to  assure its installation and its continued
12    operation.   Pay  telephones  so  designated  are  considered
13    public interest pay telephones.
14        (b)  A request for designation of a pay  telephone  as  a
15    public  interest pay telephone may be made by a pay telephone
16    service provider or any other person.  The  Commission  staff
17    shall  review the request and issue a letter to the requester
18    granting or denying the  request.   These  decisions  may  be
19    appealed to the Commission.
20        (c)  A public interest pay telephone:
21             (1)  shall  fulfill  a  public  policy  objective in
22        health, safety, or public welfare.  For pay telephones in
23        certain locations, where the telephone does not otherwise
24        exceed the revenue limitations set forth in item  (1)  of
25        subsection  (d), designation shall be presumed to fulfill
26        such a public  policy  objective.  These  locations  are:
27        public  schools  (K-12),  public  libraries,  town halls,
28        public parks, public pools, public museums,  public  boat
29        landings, and public waysides.
30             (2)  may  not  be a pay telephone that is or will be
31        provided under a contract or agreement for  multiple  pay
32        telephones, or that should be included in such a contract
33        or agreement but is not.
 
                            -20-               LRB9205754JSpc
 1             (3)  may not be a pay telephone that would otherwise
 2        exist  as  a  result  of the operation of the competitive
 3        marketplace.
 4        (d)  While the determination of whether  to  designate  a
 5    pay  telephone  as  a  public interest pay telephone does not
 6    depend on the presence or absence of any one or more  of  the
 7    following  items,  all of these items shall be considered, in
 8    addition to other considerations that  may  be  relevant,  in
 9    determining  whether  to  make  such  a  designation.   Items
10    favoring designation include:
11             (1)  The average actual or projected monthly revenue
12        from the pay telephone is $90 or less, or $120 or less if
13        the pay telephone has a TTY device.
14             (2)  The  pay  telephone  is  outside  or  otherwise
15        available to the public 24 hours per day.
16             (3)  The    pay    telephone   is   physically   and
17        geographically accessible to the  general  public  during
18        the  operating  hours  of  any  facility  in  which it is
19        located.
20             (4)  There is no other pay telephone located  within
21        500 feet.
22             (5)  The pay telephone allows coin calls.
23             (6)  The  person on whose property the pay telephone
24        is located will receive neither revenues  generated  from
25        the   telephone  nor  compensation  from  another  source
26        related to the placement of the telephone.
27        (e)  The  pay  telephone  service   provider   shall   be
28    reimbursed  the costs and charges for equipment, provision of
29    basic service, maintenance, and servicing, and administrative
30    operations such as collection and  accounting  for  a  public
31    interest  pay  telephone.   The  State Universal Service Fund
32    shall only cover the costs  and  charges  not  covered  by  a
33    federal  universal  service program and revenues from the pay
34    telephone.
 
                            -21-               LRB9205754JSpc
 1        (f)  The public interest  pay  telephone  designation  of
 2    each  telephone  so  designated  shall  be  reviewed  by  the
 3    Commission   annually   in   the  quarter  during  which  the
 4    designation was originally granted.   For  purposes  of  this
 5    review,  the  Commission  may  delegate  initial screening or
 6    review of the qualification of facilities carrying the public
 7    interest pay telephone designation to a private  organization
 8    or organizations.
 9        (g)  A  pay telephone provider that is providing a public
10    interest pay  telephone  shall  meet  all  of  the  following
11    service quality related requirements as to that telephone:
12             (1)  The  telephone  shall be in compliance with all
13        State and federal  laws  and  regulations  regarding  the
14        provision of pay telephone service.
15             (2)  The  telephone  shall  be  kept in good working
16        condition. Service and repairs shall  be  made  within  a
17        reasonable  time  period  after  receiving  a request for
18        service.  Preventive maintenance shall be performed on  a
19        reasonable and routine basis.
20             (3)  Monthly   records   for   all  repair  service,
21        preventive maintenance, and coin collection shall be kept
22        for  one  year  and  shall  be  made  available  to   the
23        Commission on request.

24        (220 ILCS 5/13E-170 new)
25        Sec.    13E-170.  Responsibility    for   pay   telephone
26    usability.
27        (a)  In this Section, "pay telephone usability" means the
28    ability to use pay  telephone  equipment  once  it  has  been
29    accessed by an individual.
30        (b)  Pay  telephone  usability standards include signage,
31    volume control, monitoring  height,  cord  length,  and  text
32    telephones.
33        (c)  All  pay telephone service providers are responsible
 
                            -22-               LRB9205754JSpc
 1    for compliance with all federal and State standards regarding
 2    usability  of  their  pay  telephones  by  individuals   with
 3    disabilities.
 4        (d)  This Section does not create any new obligations for
 5    pay telephone usability beyond those imposed under federal or
 6    State  laws  or  negate  any  obligation  for  pay  telephone
 7    usability of other parties under the law.
 8        (e)  Information  on  how to report non-compliance or any
 9    other complaint under subsection  (c) to the Commission  must
10    be posted at or on each pay telephone unit or bank of units.

11        (220 ILCS 5/13E-175 new)
12        Sec.   13E-175.  Telecommunications  customer  assistance
13    program.   The   Commission    may    authorize    individual
14    telecommunications  providers to establish telecommunications
15    customer assistance programs that meet authorized  goals  and
16    objectives  for increasing or stabilizing subscription levels
17    for non- optional, essential  telephone  service  within  its
18    service territory or to address avoidance of disconnection or
19    limitation  of service to low- income households with payment
20    problems.  The programs may allow  a  provider  to  not  make
21    available  certain  essential services, as defined in Section
22    13E-110, in order to  preserve  at  least  minimal  telephone
23    service   to   certain  low-income  households  with  payment
24    problems.  The Commission shall determine on  a  case-by-case
25    basis whether or not a telecommunications customer assistance
26    program may receive Universal Service Fund moneys.

27        (220 ILCS 5/13E-180 new)
28        Sec. 13E-180.  High rate assistance credits.
29        (a)  A   local  exchange  service  provider  that  is  an
30    eligible telecommunications  carrier  under  Section  13E-215
31    shall  provide  high  rate  assistance credits to residential
32    customers  when the price of service exceeds  levels  set  in
 
                            -23-               LRB9205754JSpc
 1    this Section.
 2        (b)  Credits  shall be applied to the price of service as
 3    specified in subsection (c), except that if a local  exchange
 4    service  provider  charges a single rate covering basic local
 5    exchange service  and  other  telecommunications  or  related
 6    services,  the  Commission  may determine, by order and after
 7    opportunity for hearing, the portion of such bundled rates to
 8    which rate assistance credits apply.
 9        (c)  For  purposes  of  calculating  credits  under  this
10    Section, the price of service shall include the following:
11             (1)  the  fixed   monthly   charge   for   essential
12        telecommunications   service,   as   defined  in  Section
13        13E-110;
14             (2)  the federal communications Commission end  user
15        common line charge; and
16             (3)  usage charges as established by the Commission.
17        (d)  Local  exchange  service  providers shall issue high
18    rate assistance credits according to the following criteria:
19             (1)  For the portion of the price of  service  below
20        1.5%  of median household income, per month, for the area
21        in which the rate applies, no credits apply.
22             (2)  For the portion of the price of  service  equal
23        to or above 1.5% but below 2% of median household income,
24        per  month,  for  the area in which the rate applies, the
25        local exchange service  provider  shall  issue  a  credit
26        equal to 50% of that amount.
27             (3)  For  the  portion of the price of service equal
28        to or above 2% but below 2.5% of median household income,
29        per month, for the area in which the  rate  applies,  the
30        local  exchange  service  provider  shall  issue a credit
31        equal to 75% of that amount.
32             (4)  For the portion of the price of  service  equal
33        to  or  above  2.5%  but  below   3%  of median household
34        income, per  month,  for  the  area  in  which  the  rate
 
                            -24-               LRB9205754JSpc
 1        applies,  the local exchange service provider shall issue
 2        a credit equal to 85% of that amount.
 3             (5)  For the portion of the price of  service  equal
 4        to or above 3% of median household income, per month, for
 5        the  area  in  which the rate applies, the local exchange
 6        service provider shall issue a credit  equal  to  95%  of
 7        that amount.
 8             (6)  When  a  rate  applies  in only one county, the
 9        median household income, as published by  the  Department
10        of  Commerce and Community Affairs, used to calculate the
11        credit shall be that of that county  in  which  the  rate
12        applies.   When  a  rate applies in more than one county,
13        the median household income used to  compute  the  credit
14        shall  be  the average of the median household incomes in
15        each county in which the rate applies,  weighted  by  the
16        number of customers paying that rate in each county.
17             (7)  If  the  amount  of money required to reimburse
18        local exchange service providers for credits  under  this
19        Section  exceeds  the  amount  budgeted  for this program
20        under Section 13E-235,  the  Commission  may  modify  the
21        formula   for   high   rate   assistance   credits.   The
22        modification may  be  done  by  Commission  order,  after
23        notice and an opportunity for hearing.
24        (e)  Except  as  provided  in  subsection  (i),  a  local
25    exchange   service   provider  shall  be  reimbursed  by  the
26    Universal Service Fund  for  the  value  of  the  credits  it
27    issues, provided that it qualifies under Section 13E-185.
28        (f)  When  a  local  exchange  service provider charges a
29    pro-rated portion of the normal monthly  charge  for  service
30    because  the  customer  has had service for only a portion of
31    the month, the rate assistance credit for that customer shall
32    be pro-rated by the same percentage.
33        (g)  High rate assistance  credits  shall  be  shown  and
34    identified on bills issued to customers.
 
                            -25-               LRB9205754JSpc
 1        (h)  Telecommunications   carriers   with   rate  ceiling
 2    programs in place on the effective date  of  this  amendatory
 3    Act  of the 92nd General Assembly may continue those programs
 4    until rates subject to those programs are changed, unless the
 5    Commission  authorizes  an  extension  of  the  rate  ceiling
 6    program.
 7        (i)  Local  exchange  service  providers  shall  not   be
 8    reimbursed  by  the  Universal  Service Fund for the value of
 9    credits   issued    to    customers    receiving    essential
10    telecommunications  service  under a contract if the contract
11    has a duration of greater than one year.  The Commission  may
12    grant waivers of this subsection by order.

13        (220 ILCS 5/13E-185 new)
14        Sec.  13E-185.  Qualifications  for  providers  receiving
15    Universal  Service  Fund  support  for  high  rate assistance
16    credits.   A  local  exchange  service   provider   receiving
17    reimbursement  for high rate assistance credits under Section
18    13E-180 shall:
19             (1)  provide  service   that   meets   the   minimum
20        requirements   of  Section  13E-110  and  any  applicable
21        quality of service rules established by or orders  issued
22        by the Commission;
23             (2)  be  designated by the Commission as an eligible
24        telecommunications carrier under Section 13E-215 for  the
25        area in which it seeks reimbursement; and
26             (3)  show  that it has applied any money it receives
27        from  the  federal  high  cost  program,  to  the  extent
28        permitted   under   federal   Communications   Commission
29        regulations,  to  the  rates  for  which  it  is  issuing
30        credits, and not  to  other  services  or  to  ineligible
31        customers.

32        (220 ILCS 5/13E-190 new)
 
                            -26-               LRB9205754JSpc
 1        Sec.  13E-190.  Alternative  universal service protection
 2    plans.
 3        (a)  As an alternative to the high rate assistance credit
 4    mechanism in Section 13E-180, the Commission may,  by  order,
 5    after  notice and an opportunity for hearing, implement other
 6    plans under this Section.
 7        (b)  Alternative plans  under  subsection  (a)  shall  be
 8    implemented  on  an  experimental  basis.   These experiments
 9    shall be reviewed within  3  years  of  inception  and  shall
10    terminate  within 5 years of inception, unless made permanent
11    by Commission order  after  notice  and  an  opportunity  for
12    hearing.
13        (c)  Alternative  high  cost  support  plans  under  this
14    Section  may  make  use  of  cost  studies,  bidding, defined
15    service territories, or other mechanisms to protect universal
16    service.  The Commission may, by order, authorize payment  of
17    Universal Service Fund moneys as part of an alternative plan.
18        (d)  Alternative high cost support plans may include rate
19    ceiling  programs, as referenced in subsection (h) of Section
20    13E-180, including programs authorized for other utilities.

21        (220 ILCS 5/13E-195 new)
22        Sec. 13E-195.  Rate shock mitigation.
23        (a)  The Commission  may  authorize  assistance,  through
24    temporary  rate  credits,  for  customers  of  rate of return
25    regulated telecommunications carriers to mitigate the  impact
26    of large increases in authorized rates.
27        (b)  Rate shock mitigation credits shall be funded by the
28    telecommunications  carrier,  where  possible.  Where that is
29    not  the  case,  the  telecommunications  carrier  shall   be
30    reimbursed  for  the amount of the credits from the Universal
31    Service Fund.  Funding for the rate shock mitigation shall be
32    specified by the Commission in individual cases.
33        (c)  When  a   telecommunications   carrier   charges   a
 
                            -27-               LRB9205754JSpc
 1    pro-rated  portion  of  the normal monthly charge for service
 2    because the customer has had service for only  a  portion  of
 3    the month, the rate shock mitigation credit for that customer
 4    shall  be  pro-rated  by  the same percentage.  The Universal
 5    Service Fund shall reimburse the  telecommunications  carrier
 6    for the portion of the credit actually issued to the customer
 7    when not funded by that carrier.
 8        (d)  Rate  shock  mitigation  credits  shall be shown and
 9    identified on bills issued to customers.

10        (220 ILCS 5/13E-200 new)
11        Sec. 13E-200.  Assistance to institutions.
12        (a)  Partial support funding through  rate  discounts  is
13    available   for   institutions   ordering  telecommunications
14    services to be used to provide any of the following services:
15             (1)  Two-way interactive video services.
16             (2)  High-speed data transfer.
17             (3)  Toll call access to the internet.
18             (4)  Direct internet access.
19        (b)  Support funding is available only for  new  services
20    that  either  were not previously available, or which provide
21    significant  improvements  over  existing  services  at  that
22    institution.  Support shall only be  available  for  services
23    obtained  from  a contributory provider, unless exempted from
24    payment under the provisions of  subsection  (a)  of  Section
25    13E-240.
26        (c)  Support funding is available only as partial payment
27    for  new services.  The amount of funding shall decrease year
28    by year, as follows:
29             (1)  for the first year, the monthly discount  shall
30        be 30% of the monthly charge or $300 per month, whichever
31        is less;
32             (2)  for the second year, the monthly discount shall
33        be 20% of the monthly charge or $200 per month, whichever
 
                            -28-               LRB9205754JSpc
 1        is less;
 2             (3)  for  the third year, the monthly discount shall
 3        be 10% of the monthly charge or $100 per month, whichever
 4        is less; and
 5             (4)  for  the  fourth  year,  and   thereafter,   no
 6        discount shall be issued.
 7        (d)  An  institution  is  eligible to receive support for
 8    only one service at a time, at a single  location.   If  that
 9    service links 2 locations at an institution, the discount may
10    be applied to the entire channel.
11        (e)  After  the  discount  for a service under subsection
12    (c) has ended, the institution may receive support for a  new
13    service.   An  institution  may  not receive a discount for a
14    service that has been canceled and reinstated.

15        (220 ILCS 5/13E-205 new)
16        Sec.   13E-205.  Medical   telecommunications   equipment
17    program.
18        (a)  For purposes of this Section:
19        "Initial application" means an application for  Universal
20    Service  Fund  support  under  this Section that is the first
21    such application filed by the applicant during a State fiscal
22    year.
23        "Non-profit medical clinic" includes any clinic that:
24             (1)  is a  non-profit  organization  governed  by  a
25        board of directors;
26             (2)  serves federally designated health professional
27        shortage areas as defined in 42 USC 254e(a)(1), medically
28        underserved  areas, or medically underserved populations;
29        and
30             (3)  does one or both of the following:
31                  (A)  Provides   services   to   all    patients
32             regardless of insurance status.
33                  (B)  Uses  a  sliding  fee  scale for uninsured
 
                            -29-               LRB9205754JSpc
 1             patients based on income status.
 2        "Public health agency" includes the Department of  Public
 3    Health and any local health department.
 4        (b)  Funding  may  be  available  to  non-profit  medical
 5    clinics  and  public  health  agencies  for  the  purchase of
 6    telecommunications  equipment  for  any  of   the   following
 7    purposes:
 8             (1)  To  promote  technologically  advanced  medical
 9        services.
10             (2)  To  enhance  access to medical care in rural or
11        underserved areas of the State, or both.
12             (3)  To  enhance   access   to   medical   care   by
13        underserved  populations  or persons with disabilities in
14        the State, or both.
15        (c)  A maximum of  $500,000  in  Universal  Service  Fund
16    support  may be dispersed under this Section per State fiscal
17    year.
18        (d)  An application for Universal  Service  Fund  support
19    under  this  Section  may not involve disbursement of support
20    during multiple State fiscal years.  All  applications  shall
21    become public documents upon filing.
22        (e)  Applications must include all of the following:
23             (1)  A   description   of   the   telecommunications
24        equipment  for  which  Universal  Service Fund support is
25        requested.
26             (2)  An explanation of how the applicant's  purchase
27        of  such  telecommunications  equipment  will support the
28        purposes identified in subsection (b).
29             (3)  Identification of the vendor that  will  supply
30        the telecommunications equipment.
31             (4)  A   description  of  how  the  portion  of  the
32        purchase price not  covered  by  Universal  Service  Fund
33        support, if any, will be paid.
34             (5)  A  description of the steps taken to secure the
 
                            -30-               LRB9205754JSpc
 1        telecommunications equipment at reasonable prices.
 2             (6)  A  statement  certifying  that  the   Universal
 3        Service  Fund  support  will  be  used  for  the  purpose
 4        granted.
 5             (7)  Any other information that the Commission deems
 6        necessary.
 7        (f)  The   Commission  shall  evaluate  all  applications
 8    submitted under this  Section.   If  funds  remain  for  this
 9    purpose,  the  Commission  may  approve  an application if it
10    includes the information required under subsection   (e)  and
11    if the Commission determines the following:
12             (1)  the applicant is a non-profit medical clinic or
13        public health agency located in Illinois;
14             (2)  the  applicant's purchase of telecommunications
15        equipment  will  support  the  purposes   identified   in
16        subsection (b);
17             (3)  the  applicant  will  be  able  to  pay for the
18        portion of the cost of the  equipment  not  funded  under
19        this Section; and
20             (4)  the  medical clinic or public health agency has
21        taken steps to secure the equipment at reasonable prices.
22        Public health agencies and non-profit organizations  that
23    operate  more than one location may receive Universal Service
24    Fund support for telecommunications equipment  at  more  than
25    one  location,  but before approving an application involving
26    an additional location, the  Commission  shall  consider  how
27    much  total  Universal Service Fund support has been received
28    by the agency or organization during the  State  fiscal  year
29    and  the  total  amount  remaining  available to be disbursed
30    under this Section during the fiscal year.  Preference may be
31    given to initial applications filed by a public health agency
32    or non-profit medical clinic.
33        The Commission may convene a panel of experts  to  assist
34    in  the  evaluation  of  applications  submitted  under  this
 
                            -31-               LRB9205754JSpc
 1    Section.

 2        (220 ILCS 5/13E-210 new)
 3        Sec.    13E-210.  Funding    to    promote    access   to
 4    telecommunications services.
 5        (a)  Any  voice-mail  provider  may  be  compensated  for
 6    providing, on request, to a social  services  agency,  a  job
 7    service   agency   or   other   homeless  shelter  authority,
 8    voice-mail service without charge to be used by  that  agency
 9    or  authority  for  the  benefit  of  its homeless clients or
10    residents. A voice-mail provider that is providing voice-mail
11    boxes to a qualifying agency or authority at  no  charge  may
12    request  and  receive  reimbursement only for its incremental
13    usage and administrative  costs  of  providing  this  service
14    using  available  capacity.  As an alternative, reimbursement
15    may be requested and received from the  Fund  at  a  standard
16    rate  set  by  the  Commission  to cover expected incremental
17    costs of providing this service using available capacity.
18        A  qualifying  agency  or  authority   administering   or
19    providing  voice-mail service to homeless clients may request
20    reimbursement  for  its  costs   directly   attributable   to
21    administering  and  providing  the  voice-mail  boxes for the
22    benefit  of   its   homeless   clients.   To   evaluate   the
23    effectiveness of this program, the Commission may monitor and
24    obtain  information  on the offering of this service from the
25    participating voice-mail providers, social services agencies,
26    job service agencies, and homeless shelter authorities.
27        A list of all individuals receiving voice-mail under this
28    Section shall be maintained by the social services  agencies,
29    job   service   agencies,  or  homeless  shelter  authorities
30    participating in this program.
31        (b)  Partial  funding  may  be  available  to  non-profit
32    groups  for  the  facilitation  of   affordable   access   to
33    telecommunications  and information services through programs
 
                            -32-               LRB9205754JSpc
 1    or  projects,  or  both,  not  supported  elsewhere  in  this
 2    Article, but that are consistent with the  purposes  of  this
 3    Article.
 4        (c)  Any  non-profit  group  may  apply for the Universal
 5    Service Fund for funding to fund any portion of a program  or
 6    project  or both. Funding shall be provided on a State fiscal
 7    year basis.  Applications for funding in the following fiscal
 8    year shall be submitted by  November  15th.   The  Commission
 9    shall issue a list of approved programs or projects, or both,
10    by  April  15th, with funding for those programs or projects,
11    or both, to begin that  July  1st.   All  applications  shall
12    become  public  documents  upon  filing.   Applications  must
13    include all of the following:
14             (1)  A  description  of  a  public need which is not
15        being met at present.
16             (2)  A description of how the program or project  is
17        consistent with the purposes of this Article.
18             (3)  A   description   of  the  program  or  project
19        proposed, including a description of how the public  need
20        described  in  item  (1)  of  this  subsection may be met
21        through  affordable  access  to   telecommunications   or
22        information services.
23             (4)  A  showing that the proposed program or project
24        meets the described public need in a least  cost  manner.
25        This requirement can be met by showing that the applicant
26        carried out an appropriate request for proposals.
27             (5)  Identification of the providers of each portion
28        of  the  telecommunications  services  or equipment and a
29        specific description of the following components  of  the
30        program or project:
31                  (A)  the  costs  of telecommunications services
32             and telecommunications equipment used by the program
33             or project;
34                  (B)  the cost of training  for  those  who  are
 
                            -33-               LRB9205754JSpc
 1             served  by  the  program or project so that they can
 2             utilize the services;
 3                  (C)  the    administrative    costs    directly
 4             attributable to the program or project;
 5                  (D)  the cost of technical  expertise  required
 6             to complete the program or project; and
 7                  (E)  revenue    from   services   or   training
 8             described in subitem (B) of item (5).
 9        (d)  The  Commission  shall  evaluate  all   applications
10    submitted. In evaluating the applications the Commission must
11    consider  information  including,  but  not  limited  to, the
12    following:
13             (1)  the basis of the public need to be met;
14             (2)  the extent to which other programs or projects,
15        either funded under this Section or otherwise under  this
16        Article, meet that need; and
17             (3)  the  overall  cost  of  the proposed program or
18        project.
19        (e)  The   Universal   Service   Fund   shall   reimburse
20    applicants for up to 50% of the cost of reimbursable portions
21    of the program or project, or both.  The  reimbursable  costs
22    include  those listed in subitems (A) through (D) of item (5)
23    of subsection (c).
24        (f)  The programs or projects, or both, to be funded  and
25    the amount of reimbursement for each program or project shall
26    be  determined  by the Commission.  The Commission shall seek
27    comments on the programs or projects to be funded, but  shall
28    not  hold a hearing.  A maximum of $500,000 in funding may be
29    dispersed under subsections (b) through (f) of  this  Section
30    per State fiscal year.

31        (220 ILCS 5/13E-215 new)
32        Sec. 13E-215.  Designation of eligible telecommunications
33    carriers.
 
                            -34-               LRB9205754JSpc
 1        (a)  The  Commission  may  designate a telecommunications
 2    carrier  as  an  eligible  telecommunications  provider.   An
 3    eligible  telecommunications  provider is eligible to receive
 4    Universal Service Fund funding under both applicable  federal
 5    and State universal service programs for an area, if it meets
 6    all of the following requirements:
 7             (1)  It  holds  itself ready to offer service to all
 8        customers in the area, except that those customers with a
 9        demonstrated inability to pay for service may  be  denied
10        service in accordance with applicable law.
11             (2)  It  advertises  its  service  in  the area on a
12        regular basis, with those advertisements:
13                  (A)  disseminated   in   media    of    general
14             distribution in the area, at least 2 times per year;
15                  (B)  describing the services offered; and
16                  (C)  describing   the   affordability   of  the
17             services, including the  availability  of  discounts
18             for low income customers.
19             (3)  It   makes   available   lifeline  and  link-up
20        service, as defined in Sections 13E-140 and 13E-145.
21             (4)  It  offers,  at  a  minimum,  all  portions  of
22        essential  telecommunications  service,  as  defined   in
23        Section   13E-110.   For   purposes  of  this  subsection
24        "essential  services"  includes   public   interest   pay
25        telephone  service  pursuant  to  Section 13E-165 and pay
26        telephone  interconnection  service  subject  to  federal
27        Communications Commission orders and Commerce  Commission
28        orders.
29        (b)  The  area in which a provider shall be designated as
30    an eligible telecommunications carrier shall be:
31             (1)  For an area that  is  served  by  an  incumbent
32        local  exchange  service  provider  that  is  not a rural
33        telephone company, the incumbent local  exchange  service
34        provider's  wire center, unless the Commission designates
 
                            -35-               LRB9205754JSpc
 1        a smaller area.
 2             (2)  For an area that  is  served  by  an  incumbent
 3        local exchange service provider that is a rural telephone
 4        company,  the  service territory comprised of one or more
 5        of the incumbent local exchange service  provider's  wire
 6        centers,   unless  the  Commission  designates,  and  the
 7        Federal Communications  Commission  approves,  a  smaller
 8        area.
 9             (3)  For  an  area  served  by  an  incumbent  local
10        exchange  service  provider  that  is  a  rural telephone
11        company, the Commission may only designate an  additional
12        eligible  telecommunications  carrier  after finding that
13        the   public   interest   requires   multiple    eligible
14        telecommunications  carriers.   For  an area served by an
15        incumbent local exchange service provider that is  not  a
16        rural  telephone company, the Commission may designate an
17        additional eligible  telecommunications  carrier  without
18        making such a finding.
19        (d)  The Commission shall maintain a list of the eligible
20    telecommunications carriers for all areas of the State.
21        (e)  An    eligible    telecommunications   carrier   may
22    relinquish its designation as such for an area  by  notifying
23    the  Commission  and the administrators of both the State and
24    federal  Universal  Service  Funds,  in   writing,   of   its
25    intention.
26        If at least one other eligible telecommunications carrier
27    is  designated for that area, the relinquishing carrier shall
28    be relieved of eligible telecommunications carrier status for
29    that area 2 weeks after receipt  by  the  Commission  of  the
30    letter, and without Commission action.
31        If   no   other  eligible  telecommunication  carrier  is
32    designated for that area,  the  relinquishing  carrier  shall
33    remain  as  eligible telecommunications carrier for that area
34    until  the  Commission  designates  an  alternative  eligible
 
                            -36-               LRB9205754JSpc
 1    telecommunications carrier.  In  that  case,  the  Commission
 2    shall notify the relinquishing carrier and the administrators
 3    of    the    State    and   federal   funds   that   eligible
 4    telecommunications carrier status is still  in  effect.   The
 5    Commission  may  use  a  process similar to that described in
 6    subsections (c) through (f) of Section 13E-220 to designate a
 7    new eligible telecommunications carrier for an area for which
 8    the only  existing  eligible  telecommunications  carrier  is
 9    seeking to relinquish that status.
10        A  provider  may  continue to provide services in an area
11    for which it  has  relinquished  eligible  telecommunications
12    carrier  status,  but  may  not continue to receive high cost
13    assistance  funding.   If  a  provider   seeks   to   abandon
14    facilities  or  discontinue  any  service,  it  shall  notify
15    affected    customers   and   follow   any   abandonment   or
16    discontinuance procedures established by the Commission.

17        (220 ILCS 5/13E-220 new)
18        Sec. 13E-220.  Intralata toll service  provider  of  last
19    resort.
20        (a)  The  intralata  toll service provider of last resort
21    for an  exchange  shall  be  the  designated  intralata  toll
22    provider for that exchange until intralata 1+ presubscription
23    service is available in that exchange or until the Commission
24    orders  otherwise  under subsection (g). For purposes of this
25    Section, "provider of last resort" means the  intralata  toll
26    service provider of last resort.
27        (b)  When   intralata   1+   presubscription  service  is
28    available in  an  exchange,  the  designated  intralata  toll
29    provider  may  petition  the Commission for withdrawal of its
30    provider of last resort requirements for that exchange.
31        The  petition  shall  be  filed  in  writing   with   the
32    Commission.  Except as otherwise provided in this subsection,
33    the petitioner retains intralata  toll  service  provider  of
 
                            -37-               LRB9205754JSpc
 1    last  resort  responsibilities  until  a new provider of last
 2    resort is designated or for a period of 12 months,  whichever
 3    is shorter.
 4        The petitioner shall notify all of its affected customers
 5    of   its   request  to  have  its  provider  of  last  resort
 6    requirements  lifted.   The  notice  to  customers  shall  be
 7    approved in advance by the Commission and clearly  state  the
 8    following:
 9             (1)  that  the  petitioner  is  seeking authority to
10        deny  service  to  some  or  all  customers  within   the
11        exchange;
12             (2)  that   toll  services  in  the  future  may  be
13        available only from other telecommunications providers or
14        from only one telecommunications provider; and
15             (3)  that if  a  new  provider  of  last  resort  is
16        designated,   all  customers  may  be  switched  to  that
17        provider's service, although they may  choose  to  obtain
18        service from any other intralata toll service provider in
19        the  area  after  reassignment  of  the  provider of last
20        resort requirement.
21        If intralata  1+  presubscription  service  has  been  in
22    effect  in  an  exchange  for  at  least  one year and if the
23    designated telecommunications carrier toll provider has  less
24    than  50%  of  all  presubscribed residential access lines in
25    that exchange, then the Commission may lift the  provider  of
26    last   resort  requirement  for  that  exchange.   If  future
27    circumstances so require, the Commission may designate a  new
28    provider of last resort pursuant to subsection (c).
29        (c)  If  a  petition  under  subsection (b) is filed, the
30    Commission shall issue a notice requesting applications  from
31    all  telecommunications  providers interested in becoming the
32    provider of last  resort  for  that  exchange.  The  provider
33    seeking  to  abandon provider of last resort requirements for
34    that exchange may not file an application to become  the  new
 
                            -38-               LRB9205754JSpc
 1    provider of last resort once again.
 2        (d)  If  only one telecommunications provider responds to
 3    the request  for  applications,  that  provider  becomes  the
 4    provider  of last resort, effective in 90 days. All customers
 5    shall be notified of the proposed change  at  least  60  days
 6    prior  to  the  effective  date.  The  notice shall include a
 7    telephone number  which  they  may  use  to  designate  their
 8    intralata  toll  service provider. On the effective date, all
 9    customers who do not  designate  an  intralata  toll  service
10    provider  shall  be presubscribed to the new provider of last
11    resort.
12        (e)  If more than one telecommunications provider applies
13    to become the provider of last  resort,  the  local  exchange
14    service  provider  at that exchange shall ballot customers on
15    their choice of intralata toll service provider.
16        Only  those  telecommunications   providers   that   file
17    applications  to  be  the  provider  of  last  resort for the
18    exchange may appear on the  ballot,  although  customers  may
19    "write-in" another telecommunications provider if desired.
20        Customers  who  do  not  return ballots shall be randomly
21    allocated to the telecommunications  providers  appearing  on
22    the  ballot,  according  to  the  percentage of customers who
23    chose each listed provider.
24        All telecommunications providers appearing on the  ballot
25    shall  be the providers of last resort for at least one year.
26    After that date, these providers may  notify  the  Commission
27    that  they  wish  to  be  relieved of provider of last resort
28    responsibility. When the last provider of last  resort  files
29    to  exit  the  market,  the process described in this Section
30    recommences.
31        Fifty percent of the costs of balloting shall be paid  by
32    the local exchange carrier serving the exchange and 50% shall
33    be paid by the providers appearing on the ballot.
34        (f)  If  no  toll  providers apply to be provider of last
 
                            -39-               LRB9205754JSpc
 1    resort for an exchange, the Commission shall hold an  auction
 2    of the provider of last resort responsibility. The Commission
 3    may  authorize  compensation  from the Universal Service Fund
 4    for the provider of last resort selected by the auction.
 5        (g)  If the provider of last resort for an exchange files
 6    a petition for withdrawal of  its  provider  of  last  resort
 7    requirements    at    an    exchange   where   intralata   1+
 8    presubscription  is  not  available,   the   Commission   may
 9    investigate that petition and order that the provider of last
10    resort  obligation  be withdrawn for that provider subject to
11    conditions, notice requirements, and balloting procedures the
12    Commission deems necessary and  reasonable  for  the  service
13    change  at  that exchange. Those conditions, requirements and
14    procedures shall be as designated  in  this  Section  to  the
15    extent the Commission determines they are applicable.
16        (h)  A provider of last resort may not sell or dispose of
17    any  intralata  toll  customer to another provider, except at
18    the express request of the customer.

19        (220 ILCS 5/13E-225 new)
20        Sec.  13E-225.  Identification  of  charges   caused   by
21    Universal   Service   Fund   liability.    Telecommunications
22    providers may not establish a surcharge on customer bills for
23    contributing  to  or recovering any portion of the providers'
24    payment of Universal Service Fund obligations.

25        (220 ILCS 5/13E-230 new)
26        Sec. 13E-230.  Fund administrator.
27        (a)  The   Commission   shall    designate    the    Fund
28    administrator  and  provide  for an annual audit of the Fund.
29    The Commission  shall  issue  rules  for  administration  and
30    assignment of liabilities.
31        (b)  The   Fund  administrator  may  propose  changes  or
32    modification to the mechanisms of administration of the Fund.
 
                            -40-               LRB9205754JSpc
 1    The Commission may approve such requests without hearing.
 2        (c)  The Universal  Service  Fund  shall  compensate  the
 3    administrator  for the administrator's costs of administering
 4    the Fund as approved by the Commission.

 5        (220 ILCS 5/13E-235 new)
 6        Sec. 13E-235.  Fund budget and assessment rates.
 7        (a)  At least once each year, the  Commission  shall  set
 8    the budget for Fund administration and the programs specified
 9    in  subsection  (b)  of  Section 13E-130.  The Commission may
10    make  adjustments  to  the  budget  as  needed   to   address
11    unforeseen circumstances.  Adjustments may include:
12             (1)  reallocating the budget among programs;
13             (2)  modifying  the  support  formulas  or  benefits
14        within a program; and
15             (3)  deferring support payments to a later period.
16        (b)  At  least  once  each  year,  the  Commission  shall
17    determine  the  amounts  necessary  for  funding the payments
18    specified in subsections (c) and (e) of Section 13E-130.
19        (c)  Based  on  the  need  for  funds  and   subject   to
20    appropriation,  the Commission shall determine the assessment
21    rates to apply to providers.  The Commission may  modify  the
22    assessment  rates  at  any  time  based on changes in funding
23    needs or provider revenues subject to assessment.
24        (d)  The Commission shall provide notice of the  proposed
25    budget  under  subsection (a) and any proposed changes to the
26    budget to  the  Universal  Service  Fund  Council  and  other
27    interested  parties  with an opportunity for comment prior to
28    Commission action.

29        (220 ILCS 5/13E-240 new)
30        Sec.  13E-240.  Collection  of  Universal  Service   Fund
31    moneys.
32        (a)  An  assessed  provider  shall  pay the amount of its
 
                            -41-               LRB9205754JSpc
 1    assessment to the Universal Service Fund. Assessed  providers
 2    include  all  telecommunications  providers  operating within
 3    Illinois,    except    those    with     intrastate     gross
 4    telecommunications  revenues of less than $200,000 during the
 5    preceding calendar year.
 6        (b)  The Commission may require a  person  other  than  a
 7    telecommunications  provider  to  contribute to the Universal
 8    Service Fund, if after notice and opportunity for hearing the
 9    Commission   determines   that   the   person   is   offering
10    nontraditional  broadcast  services  in  competition  with  a
11    telecommunications  service  for  which  a  contribution   is
12    required under this Article.
13        (c)  Telecommunications  providers  shall  be assessed on
14    the basis of their gross intrastate operating  revenues  from
15    telecommunications services.
16        (d)  A    telecommunications    provider   shall   submit
17    information,  on a schedule and in a format to be set by  the
18    Commission,   on   the  telecommunications  provider's  gross
19    intrastate telecommunications revenues during  the  preceding
20    calendar year.
21        (e)  The     percentage    liability    for    a    given
22    telecommunications provider is the ratio of  that  provider's
23    intrastate  gross  telecommunications  revenues to the sum of
24    the intrastate  gross  telecommunications  revenues  for  all
25    contributory providers.
26        (f)  The    amount    to   be   assessed   to   a   given
27    telecommunications provider is the  percentage  liability  of
28    that  provider  under  subsection (e) multiplied by the total
29    amount to be collected.
30        (g)  Telecommunications    providers     who     provided
31    telecommunications  service  in Illinois for only part of the
32    preceding calendar year shall be  assessed  based  on  actual
33    revenues  for the year, without adjustments to annualize that
34    revenue.
 
                            -42-               LRB9205754JSpc
 1        (h)  Failure to receive a bill is not grounds for  relief
 2    from    a   telecommunications   provider's   liability   for
 3    assessment.
 4        (i)  Assessments must be paid within 30  days  after  the
 5    bill  is  mailed.  A telecommunications provider that has not
 6    paid within  30 days after the bill is mailed shall be deemed
 7    to have not paid. Assessments not paid within 30  days  after
 8    the  bill is mailed shall be collected in accordance with the
 9    rules of the Commission.
10        Objection to an assessment amount shall be made within 30
11    days after the bill is mailed.  The making of  the  objection
12    and  Commission  action regarding that objection shall follow
13    the process established by rules of the Commission.
14        (j)  The  Commission   shall   obtain   the   information
15    necessary  to  process  the  assessment  of commercial mobile
16    radio  service  providers  and  shall  mail  bills  to   such
17    providers.

18        (220 ILCS 5/13E-245 new)
19        Sec.   13E-245.  Use   audit.   Recipients  of  Universal
20    Service Fund moneys may  be  audited  by  the  Commission  to
21    ensure   that   the   funding   was   applied  for  and  used
22    appropriately.

23        (220 ILCS 5/13E-250 new)
24        Sec. 13E-250.  Universal Service Fund Council.
25        (a)  The Commission shall  appoint  a  Universal  Service
26    Fund   Council   to  advise  the  Commission  concerning  the
27    administration of this Article, the content of administrative
28    rules adopted pursuant to this Article, and any other matters
29    assigned  to  the  Universal  Service  Fund  Council  by  the
30    Commission.
31        (b)  The Universal Service Fund Council shall consist  of
32    telecommunications    providers    and    of   consumers   of
 
                            -43-               LRB9205754JSpc
 1    telecommunications services.  The Commission shall appoint  a
 2    diverse  membership  to  the  Universal  Service Fund Council
 3    including   representatives    of    the    local    exchange
 4    telecommunications      industry;      the      interexchange
 5    telecommunications   industry,   including   facilities-based
 6    carriers  and resellers; the cable television industry; other
 7    telecommunications     providers     and     consumers     of
 8    telecommunications services including residential,  business,
 9    governmental,  institutional,  and  public  special  interest
10    group users of telecommunications services.
11        (c)  A  majority  of the members of the Universal Service
12    Fund  Council  shall  be  representatives  of  consumers   of
13    telecommunications services.
14        (d)  Universal  Service  Fund  Council  members  shall be
15    appointed to  staggered  3-year  terms.  The  Commission  may
16    appoint  a  replacement  member  when  necessary to serve the
17    remaining term of a member  withdrawing  from  the  Universal
18    Service Fund Council.
19        (e)  The  Universal  Service  Fund  Council shall elect a
20    chairperson and a vice-chairperson from its  membership,  not
21    including  the  Commission staff liaison.  The term of office
22    for these positions shall be one year.  Elections may be held
23    at the  first  meeting  of  each  calendar  year  or  may  be
24    conducted by mail prior to the first meeting of each calendar
25    year.
26        (f)  The  Universal  Service  Fund  Council shall meet at
27    least 2 times each year.  Other meetings may be called,  upon
28    adequate  notice  to  all  members, to address matters of the
29    Fund as they arise. Meetings of the  Universal  Service  Fund
30    Council shall be open to the public.
31        (g)  Members  of the Universal Service Fund Council shall
32    serve  without  compensation.   Members,  other  than   those
33    members  representing the telecommunications industry and any
34    members representing State agencies, may  be  reimbursed  for
 
                            -44-               LRB9205754JSpc
 1    their   actual   and   necessary  expenses  incurred  in  the
 2    performance of their duties as part of the Universal  Service
 3    Fund  Council,  subject  to  budget guidelines adopted by the
 4    Commission.
 5        (h)  The Universal Service Fund Council may adopt  bylaws
 6    appropriate  for  its  operation.  The Universal Service Fund
 7    Council may form subcommittees of its membership as necessary
 8    to review issues and make recommendations  for  consideration
 9    of the full Council.
10        (i)  The  Commission shall assign staff members as needed
11    to facilitate the work of the Universal Service Fund Council.
12    The Commission shall appoint a member of the Commission staff
13    to serve as staff liaison  for  the  Universal  Service  Fund
14    Council.   The liaison shall be a non-voting member and shall
15    do all of the following:
16             (1)  Assist the Universal Service  Fund  Council  in
17        obtaining   subject  matter  expertise  in  the  area  of
18        universal telecommunications service.
19             (2)  Maintain the official record of  the  Universal
20        Service  Fund  Council,  including membership, minutes of
21        meetings, agendas, and reports.
22             (3)  Assist the chairperson of the Universal Service
23        Fund Council in planning the agendas, times,  and  places
24        of meetings.
25             (4)  Provide   other  administrative  assistance  as
26        required.

27        Section  99.  Effective  date.  This  Act  takes   effect
28    January 1, 2002.
 
                            -45-               LRB9205754JSpc
 1                                INDEX
 2               Statutes amended in order of appearance
 3    30 ILCS 105/5.545 new
 4    220 ILCS 5/Art. XIIIE heading, new
 5    220 ILCS 5/13E-101 new
 6    220 ILCS 5/13E-105 new
 7    220 ILCS 5/13E-110 new
 8    220 ILCS 5/13E-115 new
 9    220 ILCS 5/13E-120 new
10    220 ILCS 5/13E-125 new
11    220 ILCS 5/13E-130 new
12    220 ILCS 5/13E-135 new
13    220 ILCS 5/13E-140 new
14    220 ILCS 5/13E-145 new
15    220 ILCS 5/13E-150 new
16    220 ILCS 5/13E-155 new
17    220 ILCS 5/13E-160 new
18    220 ILCS 5/13E-165 new
19    220 ILCS 5/13E-170 new
20    220 ILCS 5/13E-175 new
21    220 ILCS 5/13E-180 new
22    220 ILCS 5/13E-185 new
23    220 ILCS 5/13E-190 new
24    220 ILCS 5/13E-195 new
25    220 ILCS 5/13E-200 new
26    220 ILCS 5/13E-205 new
27    220 ILCS 5/13E-210 new
28    220 ILCS 5/13E-215 new
29    220 ILCS 5/13E-220 new
30    220 ILCS 5/13E-225 new
31    220 ILCS 5/13E-230 new
32    220 ILCS 5/13E-235 new
33    220 ILCS 5/13E-240 new
34    220 ILCS 5/13E-245 new
 
                            -46-               LRB9205754JSpc
 1    220 ILCS 5/13E-250 new

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