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Public Act 097-0463


 

Public Act 0463 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0463
 
SB2063 EnrolledLRB097 09995 ASK 50165 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Prepaid Wireless 9-1-1 Surcharge Act.
 
    Section 5. Purpose. The General Assembly finds and declares
that maintaining effective and efficient 9-1-1 systems across
the State benefits all citizens. The fees imposed upon the
consumers of telecommunication services that have the ability
to dial 9-1-1 are an important funding mechanism to assist the
State and units of local government with the deployment of
enhanced 9-1-1 services to the citizens of this State.
    Prepaid wireless telecommunication services are an
important segment of the telecommunications industry and have
proven particularly attractive to low-income and low-volume
consumers. Unlike traditional telecommunication services,
prepaid wireless telecommunications services are not sold or
used pursuant to term contracts or subscriptions and monthly
bills are not sent to consumers by prepaid wireless
telecommunication service providers or retail vendors.
    Prepaid wireless consumers have the same access to
emergency 9-1-1 services from their wireless devices as
wireless consumers on term contracts. Prepaid wireless
consumers benefit from the ability to access the 9-1-1 system
by dialing 9-1-1.
    Consumers purchase prepaid wireless telecommunication
services at a wide variety of general retail locations and
other distribution channels. Such purchases are made on a
cash-and-carry or pay-as-you-go basis from retailers.
    It is the intent of the General Assembly to:
        (1) ensure equitable contributions to the funding of
    9-1-1 systems from consumers of prepaid wireless
    telecommunication services;
        (2) collect 9-1-1 surcharges from purchasers of
    prepaid wireless telecommunications services at the point
    of sale;
        (3) impose the collection and remittance obligation
    for 9-1-1 surcharges on sellers of prepaid wireless
    telecommunications services;
        (4) impose a statewide administered 9-1-1 surcharge on
    point of sale transactions in order to minimize
    administrative costs on retailers.
 
    Section 10. Definitions. In this Act:
    "Consumer" means a person who purchases prepaid wireless
telecommunications service in a retail transaction.
    "Department" means the Department of Revenue.
    "Prepaid wireless E911 surcharge" means the charge that is
required to be collected by a seller from a consumer in the
amount established under Section 15 of this Act.
    "Prepaid wireless telecommunications service" means a
wireless telecommunications service that allows a caller to
dial 9-1-1 to access the 9-1-1 system, which service must be
paid for in advance and is sold in predetermined units or
dollars of which the amount declines with use in a known
amount.
    "Provider" means a person that provides prepaid wireless
telecommunications service pursuant to a license issued by the
Federal Communications Commission.
    "Retail transaction" means the purchase of prepaid
wireless telecommunications service from a seller for any
purpose other than resale.
    "Seller" means a person who sells prepaid wireless
telecommunications service to another person.
    "Wireless telecommunications service" means commercial
mobile radio service as defined by 47 C.F.R. 20.3.
 
    Section 15. Prepaid wireless 9-1-1 surcharge.
    (a) There is hereby imposed on consumers a prepaid wireless
9-1-1 surcharge of 1.5% per retail transaction. The surcharge
authorized by this subsection (a) does not apply in a home rule
municipality having a population in excess of 500,000. The
amount of the surcharge may be reduced or increased pursuant to
subsection (e).
    (a-5) A home rule municipality having a population in
excess of 500,000 on the effective date of this Act may only
impose a prepaid wireless 9-1-1 surcharge not to exceed 7% per
retail transaction sourced to that jurisdiction and collected
and remitted in accordance with the provisions of subsection
(b-5).
    (b) The prepaid wireless 9-1-1 surcharge shall be collected
by the seller from the consumer with respect to each retail
transaction occurring in this State and shall be remitted to
the Department by the seller as provided in this Act. The
amount of the prepaid wireless 9-1-1 surcharge shall be
separately stated as a distinct item apart from the charge for
the prepaid wireless telecommunications service on an invoice,
receipt, or other similar document that is provided to the
consumer by the seller or shall be otherwise disclosed to the
consumer. If the seller does not separately state the surcharge
as a distinct item to the consumer as provided in this Section,
then the seller shall maintain books and records as required by
this Act which clearly identify the amount of the 9-1-1
surcharge for retail transactions.
    For purposes of this subsection (b), a retail transaction
occurs in this State if (i) the retail transaction is made in
person by a consumer at the seller's business location and the
business is located within the State; (ii) the seller is a
provider and sells prepaid wireless telecommunications service
to a consumer located in Illinois; (iii) the retail transaction
is treated as occurring in this State for purposes of the
Retailers' Occupation Tax Act; or (iv) a seller that is
included within the definition of a "retailer maintaining a
place of business in this State" under Section 2 of the Use Tax
Act makes a sale of prepaid wireless telecommunications service
to a consumer located in Illinois. In the case of a retail
transaction which does not occur in person at a seller's
business location, if a consumer uses a credit card to purchase
prepaid wireless telecommunications service on-line or over
the telephone, and no product is shipped to the consumer, the
transaction occurs in this State if the billing address for the
consumer's credit card is in this State.
    (b-5) The prepaid wireless 9-1-1 surcharge imposed under
subsection (a-5) of this Section shall be collected by the
seller from the consumer with respect to each retail
transaction occurring in the municipality imposing the
surcharge. The amount of the prepaid wireless 9-1-1 surcharge
shall be separately stated on an invoice, receipt, or other
similar document that is provided to the consumer by the seller
or shall be otherwise disclosed to the consumer. If the seller
does not separately state the surcharge as a distinct item to
the consumer as provided in this Section, then the seller shall
maintain books and records as required by this Act which
clearly identify the amount of the 9-1-1 surcharge for retail
transactions.
    For purposes of this subsection (b-5), a retail transaction
occurs in the municipality if (i) the retail transaction is
made in person by a consumer at the seller's business location
and the business is located within the municipality; (ii) the
seller is a provider and sells prepaid wireless
telecommunications service to a consumer located in the
municipality; (iii) the retail transaction is treated as
occurring in the municipality for purposes of the Retailers'
Occupation Tax Act; or (iv) a seller that is included within
the definition of a "retailer maintaining a place of business
in this State" under Section 2 of the Use Tax Act makes a sale
of prepaid wireless telecommunications service to a consumer
located in the municipality. In the case of a retail
transaction which does not occur in person at a seller's
business location, if a consumer uses a credit card to purchase
prepaid wireless telecommunications service on-line or over
the telephone, and no product is shipped to the consumer, the
transaction occurs in the municipality if the billing address
for the consumer's credit card is in the municipality.
    (c) The prepaid wireless 9-1-1 surcharge is imposed on the
consumer and not on any provider. The seller shall be liable to
remit all prepaid wireless 9-1-1 surcharges that the seller
collects from consumers as provided in Section 20, including
all such surcharges that the seller is deemed to collect where
the amount of the surcharge has not been separately stated on
an invoice, receipt, or other similar document provided to the
consumer by the seller. The surcharge collected or deemed
collected by a seller shall constitute a debt owed by the
seller to this State, and any such surcharge actually collected
shall be held in trust for the benefit of the Department.
    For purposes of this subsection (c), the surcharge shall
not be imposed or collected from entities that are tax exempt
under the Retailers' Occupation Tax Act.
    (d) The amount of the prepaid wireless 9-1-1 surcharge that
is collected by a seller from a consumer, if such amount is
separately stated on an invoice, receipt, or other similar
document provided to the consumer by the seller, shall not be
included in the base for measuring any tax, fee, surcharge, or
other charge that is imposed by this State, any political
subdivision of this State, or any intergovernmental agency.
    (e) The prepaid wireless 9-1-1 charge imposed under
subsection (a) of this Section shall be proportionately
increased or reduced, as applicable, upon any change to the
surcharge imposed under Section 17 of the Wireless Emergency
Telephone Safety Act. The adjusted rate shall be determined by
dividing the amount of the surcharge imposed under Section 17
of the Wireless Emergency Telephone Safety Act by $50. Such
increase or reduction shall be effective on the first day of
the first calendar month to occur at least 60 days after the
enactment of the change to the surcharge imposed under Section
17 of the Wireless Emergency Telephone Safety Act. The
Department shall provide not less than 30 days' notice of an
increase or reduction in the amount of the surcharge on the
Department's website.
    (e-5) Any changes in the rate of the surcharge imposed by a
municipality under the authority granted in subsection (a-5) of
this Section shall be effective on the first day of the first
calendar month to occur at least 60 days after the enactment of
the change. The Department shall provide not less than 30 days'
notice of the increase or reduction in the rate of such
surcharge on the Department's website.
    (f) When prepaid wireless telecommunications service is
sold with one or more other products or services for a single,
non-itemized price, then the percentage specified in
subsection (a) or (a-5) of this Section 15 shall be applied to
the entire non-itemized price unless the seller elects to apply
the percentage to (i) the dollar amount of the prepaid wireless
telecommunications service if that dollar amount is disclosed
to the consumer or (ii) the portion of the price that is
attributable to the prepaid wireless telecommunications
service if the retailer can identify that portion by reasonable
and verifiable standards from its books and records that are
kept in the regular course of business for other purposes,
including, but not limited to, books and records that are kept
for non-tax purposes. However, if a minimal amount of prepaid
wireless telecommunications service is sold with a prepaid
wireless device for a single, non-itemized price, then the
seller may elect not to apply the percentage specified in
subsection (a) or (a-5) of this Section 15 to such transaction.
For purposes of this subsection, an amount of service
denominated as 10 minutes or less or $5 or less is considered
minimal.
 
    Section 20. Administration of prepaid wireless 9-1-1
surcharge.
    (a) In the administration and enforcement of this Act, the
provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the
Retailers' Occupation Tax Act that are not inconsistent with
this Act, and Section 3-7 of the Uniform Penalty and Interest
Act shall apply, as far as practicable, to the subject matter
of this Act to the same extent as if those provisions were
included in this Act. References to "taxes" in these
incorporated Sections shall be construed to apply to the
administration, payment, and remittance of all surcharges
under this Act. The Department shall establish registration and
payment procedures that substantially coincide with the
registration and payment procedures that apply to the
Retailers' Occupation Tax Act.
    (b) For the first 12 months after the effective date of
this Act, a seller shall be permitted to deduct and retain 5%
of prepaid wireless 9-1-1 surcharges that are collected by the
seller from consumers and that are remitted and timely filed
with the Department. After the first 12 months, a seller shall
be permitted to deduct and retain 3% of prepaid wireless 9-1-1
surcharges that are collected by the seller from consumers and
that are remitted and timely filed with the Department.
    (c) The Department shall pay all remitted prepaid wireless
E911 charges over to the State Treasurer for deposit into the
Wireless Service Emergency Fund within 30 days after receipt.
The Illinois Commerce Commission shall distribute such funds in
the same proportion as they are distributed under the Wireless
Emergency Telephone Safety Act and such funds may only be used
in accordance with the provisions of the Wireless Emergency
Telephone Safety Act. The Department may deduct an amount, not
to exceed 3% during the first year following the effective date
of this Act and not to exceed 2% during every year thereafter
of remitted charges, to be retained by the Department to
reimburse its direct costs of administering the collection and
remittance of prepaid wireless 9-1-1 surcharges.
    (d) The Department shall administer the collection of all
9-1-1 surcharges and may adopt and enforce reasonable rules
relating to the administration and enforcement of the
provisions of this Act as may be deemed expedient. The
Department shall require all surcharges collected under this
Act to be reported on existing forms or combined forms,
including, but not limited to, Form ST-1.
 
    Section 25. Liability of sellers and providers. The
provisions of Section 50 of the Wireless Emergency Telephone
Safety Act shall apply to sellers and providers of prepaid
wireless telecommunications service.
 
    Section 27. Home rule. A home rule unit may not impose a
separate surcharge on wireless 9-1-1 service in addition to the
surcharge imposed on wireless 9-1-1 service under this Act.
This Section is a denial and limitation of home rule powers and
functions under subsection (h) of Section 6 of Article VII of
the Illinois Constitution.
 
    Section 30. Exclusivity of prepaid wireless 9-1-1
surcharge. The prepaid wireless 9-1-1 surcharge imposed by this
Act shall be the only 9-1-1 funding obligation imposed with
respect to prepaid wireless telecommunications service in this
State. No tax, fee, surcharge, or other charge shall be imposed
by this State, any political subdivision of this State, or any
intergovernmental agency, for 9-1-1 funding purposes, upon any
provider, seller, or consumer with respect to the sale,
purchase, use, or provision of prepaid wireless
telecommunications service.
 
    Section 90. The Emergency Telephone System Act is amended
by changing Section 15.3 and by adding Sections 2.24, 2.25, and
2.26 as follows:
 
    (50 ILCS 750/2.24 new)
    Sec. 2.24. Advanced service. "Advanced service" means any
telecommunications service with dynamic bandwidth allocation,
including but not limited to ISDN Primary Rate Interface (PRI),
that, through the use of a DS-1, T-1, or similar un-channelized
or multi-channel transmission facility, is capable of
transporting either the subscriber's inter-premises voice
telecommunications services to the public switched network or
the subscriber's 9-1-1 calls to the public agency. As used in
this Section, "dynamic bandwidth allocation" means the ability
of the facility or customer to drop and add channels, or adjust
bandwidth, when needed in real time for voice or data purposes.
As used in this Section, "DS-1, T-1, or similar un-channelized
or multi-channel transmission facility" means a facility that
can transmit and receive a bit rate of at least 1.544 megabits
per second (Mbps).
 
    (50 ILCS 750/2.25 new)
    Sec. 2.25. Regular service. "Regular service" means any
telecommunications service, other than advanced service, that
is capable of transporting either the subscriber's
inter-premises voice telecommunications services to the public
switched network or the subscriber's 9-1-1 calls to the public
agency.
 
    (50 ILCS 750/2.26 new)
    Sec. 2.26. Trunk line. "Trunk line" means a transmission
path, or group of transmission paths, connecting a subscriber's
Private Branch Exchange ("P.B.X.") to a telecommunications
carrier's public switched network. In the case of regular
service, each voice grade communications channel or equivalent
amount of bandwidth capable of transporting either the
subscriber's inter-premises voice telecommunications services
to the public switched network or the subscriber's 9-1-1 calls
to the public agency shall be considered a trunk line, even if
it is bundled with other channels or additional bandwidth. In
the case of advanced service, each DS-1, T-1, or similar
un-channelized or multi-channel transmission facility that is
capable of transporting either the subscriber's inter-premises
voice telecommunications services to the public switched
network or the subscriber's 9-1-1 calls to the public agency
shall be considered a single trunk line, even if it contains
multiple voice grade communications channels or otherwise
supports 2 or more voice grade calls ("VGC") at a time;
provided, however, that each additional 1.544 Mbps of
transmission capacity that is capable of transporting either
the subscriber's inter-premises voice telecommunications
services to the public switched network or the subscriber's
9-1-1 calls to the public agency shall be considered an
additional trunk line.
 
    (50 ILCS 750/15.3)  (from Ch. 134, par. 45.3)
    Sec. 15.3. Surcharge.
    (a) The corporate authorities of any municipality or any
county may, subject to the limitations of subsections (c), (d),
and (h), and in addition to any tax levied pursuant to the
Simplified Municipal Telecommunications Tax Act, impose a
monthly surcharge on billed subscribers of network connection
provided by telecommunication carriers engaged in the business
of transmitting messages by means of electricity originating
within the corporate limits of the municipality or county
imposing the surcharge at a rate per network connection
determined in accordance with subsection (c), however the
monthly surcharge shall not apply to a network connection
provided for use with pay telephone services. Provided,
however, that where multiple voice grade communications
channels are connected between the subscriber's premises and a
public switched network through private branch exchange (PBX)
or centrex type service, a municipality imposing a surcharge at
a rate per network connection, as determined in accordance with
this Act, shall impose:
    (i) in a municipality with a population of 500,000 or less
or in any county, 5 such surcharges per network connection, as
determined in accordance with subsections (a) and (d) of
Section 2.12 of this Act, for both regular service and advanced
service provisioned trunk lines;
    (ii) in a municipality with a population, prior to March 1,
2010, of 500,000 or more, 5 surcharges per network connection,
as determined in accordance with subsections (a) and (d) of
Section 2.12 of this Act, for both regular service and advanced
service provisioned trunk lines;
    (iii) in a municipality with a population, as of March 1,
2010, of 500,000 or more, 5 surcharges per network connection,
as determined in accordance with subsections (a) and (d) of
Section 2.12 of this Act, for regular service provisioned trunk
lines, and 12 surcharges per network connection, as determined
in accordance with subsections (a) and (d) of Section 2.12 of
this Act, for advanced service provisioned trunk lines, except
where an advanced service provisioned trunk line supports at
least 2 but fewer than 23 simultaneous voice grade calls
("VGC's"), a telecommunication carrier may elect to impose
fewer than 12 surcharges per trunk line as provided in
subsection (iv) of this Section; or
    (iv) for an advanced service provisioned trunk line
connected between the subscriber's premises and the public
switched network through a P.B.X., where the advanced service
provisioned trunk line is capable of transporting at least 2
but fewer than 23 simultaneous VGC's per trunk line, the
telecommunications carrier collecting the surcharge may elect
to impose surcharges in accordance with the table provided in
this Section, without limiting any telecommunications
carrier's obligations to otherwise keep and maintain records.
Any telecommunications carrier electing to impose fewer than 12
surcharges per an advanced service provisioned trunk line shall
keep and maintain records adequately to demonstrate the VGC
capability of each advanced service provisioned trunk line with
fewer than 12 surcharges imposed, provided that 12 surcharges

 
shall be imposed on an advanced service provisioned trunk line
regardless of the VGC capability where a telecommunications
carrier cannot demonstrate the VGC capability of the advanced
service provisioned trunk line.
 
Facility VGC's 911 Surcharges
Advanced service provisioned trunk line 18-23 12
Advanced service provisioned trunk line 12-17 10
Advanced service provisioned trunk line 2-11 8
    Subsections (i), (ii), (iii), and (iv) are not intended to
make any change in the meaning of this Section, but are
intended to remove possible ambiguity, thereby confirming the
intent of paragraph (a) as it existed prior to and following
the effective date of this amendatory Act of the 97th General
Assembly.
    For mobile telecommunications services, if a surcharge is
imposed it shall be imposed based upon the municipality or
county that encompasses the customer's place of primary use as
defined in the Mobile Telecommunications Sourcing Conformity
Act. A municipality may enter into an intergovernmental
agreement with any county in which it is partially located,
when the county has adopted an ordinance to impose a surcharge
as provided in subsection (c), to include that portion of the
municipality lying outside the county in that county's
surcharge referendum. If the county's surcharge referendum is
approved, the portion of the municipality identified in the
intergovernmental agreement shall automatically be
disconnected from the county in which it lies and connected to
the county which approved the referendum for purposes of a
surcharge on telecommunications carriers.
    (b) For purposes of computing the surcharge imposed by
subsection (a), the network connections to which the surcharge
shall apply shall be those in-service network connections,
other than those network connections assigned to the
municipality or county, where the service address for each such
network connection or connections is located within the
corporate limits of the municipality or county levying the
surcharge. Except for mobile telecommunication services, the
"service address" shall mean the location of the primary use of
the network connection or connections. For mobile
telecommunication services, "service address" means the
customer's place of primary use as defined in the Mobile
Telecommunications Sourcing Conformity Act.
    (c) Upon the passage of an ordinance to impose a surcharge
under this Section the clerk of the municipality or county
shall certify the question of whether the surcharge may be
imposed to the proper election authority who shall submit the
public question to the electors of the municipality or county
in accordance with the general election law; provided that such
question shall not be submitted at a consolidated primary
election. The public question shall be in substantially the
following form:
-------------------------------------------------------------
    Shall the county (or city, village
or incorporated town) of ..... impose          YES
a surcharge of up to ... per month per
network connection, which surcharge will
be added to the monthly bill you receive   ------------------
for telephone or telecommunications
charges, for the purpose of installing
(or improving) a 9-1-1 Emergency               NO
Telephone System?
-------------------------------------------------------------
    If a majority of the votes cast upon the public question
are in favor thereof, the surcharge shall be imposed.
    However, if a Joint Emergency Telephone System Board is to
be created pursuant to an intergovernmental agreement under
Section 15.4, the ordinance to impose the surcharge shall be
subject to the approval of a majority of the total number of
votes cast upon the public question by the electors of all of
the municipalities or counties, or combination thereof, that
are parties to the intergovernmental agreement.
    The referendum requirement of this subsection (c) shall not
apply to any municipality with a population over 500,000 or to
any county in which a proposition as to whether a sophisticated
9-1-1 Emergency Telephone System should be installed in the
county, at a cost not to exceed a specified monthly amount per
network connection, has previously been approved by a majority
of the electors of the county voting on the proposition at an
election conducted before the effective date of this amendatory
Act of 1987.
    (d) A county may not impose a surcharge, unless requested
by a municipality, in any incorporated area which has
previously approved a surcharge as provided in subsection (c)
or in any incorporated area where the corporate authorities of
the municipality have previously entered into a binding
contract or letter of intent with a telecommunications carrier
to provide sophisticated 9-1-1 service through municipal
funds.
    (e) A municipality or county may at any time by ordinance
change the rate of the surcharge imposed under this Section if
the new rate does not exceed the rate specified in the
referendum held pursuant to subsection (c).
    (f) The surcharge authorized by this Section shall be
collected from the subscriber by the telecommunications
carrier providing the subscriber the network connection as a
separately stated item on the subscriber's bill.
    (g) The amount of surcharge collected by the
telecommunications carrier shall be paid to the particular
municipality or county or Joint Emergency Telephone System
Board not later than 30 days after the surcharge is collected,
net of any network or other 9-1-1 or sophisticated 9-1-1 system
charges then due the particular telecommunications carrier, as
shown on an itemized bill. The telecommunications carrier
collecting the surcharge shall also be entitled to deduct 3% of
the gross amount of surcharge collected to reimburse the
telecommunications carrier for the expense of accounting and
collecting the surcharge.
    (h) Except as expressly provided in subsection (a) of this
Section, a municipality with a population over 500,000 may not
impose a monthly surcharge in excess of $2.50 per network
connection.
    (i) Any municipality or county or joint emergency telephone
system board that has imposed a surcharge pursuant to this
Section prior to the effective date of this amendatory Act of
1990 shall hereafter impose the surcharge in accordance with
subsection (b) of this Section.
    (j) The corporate authorities of any municipality or county
may issue, in accordance with Illinois law, bonds, notes or
other obligations secured in whole or in part by the proceeds
of the surcharge described in this Section. Notwithstanding any
change in law subsequent to the issuance of any bonds, notes or
other obligations secured by the surcharge, every municipality
or county issuing such bonds, notes or other obligations shall
be authorized to impose the surcharge as though the laws
relating to the imposition of the surcharge in effect at the
time of issuance of the bonds, notes or other obligations were
in full force and effect until the bonds, notes or other
obligations are paid in full. The State of Illinois pledges and
agrees that it will not limit or alter the rights and powers
vested in municipalities and counties by this Section to impose
the surcharge so as to impair the terms of or affect the
security for bonds, notes or other obligations secured in whole
or in part with the proceeds of the surcharge described in this
Section.
    (k) Any surcharge collected by or imposed on a
telecommunications carrier pursuant to this Section shall be
held to be a special fund in trust for the municipality, county
or Joint Emergency Telephone Board imposing the surcharge.
Except for the 3% deduction provided in subsection (g) above,
the special fund shall not be subject to the claims of
creditors of the telecommunication carrier.
(Source: P.A. 95-331, eff. 8-21-07; 95-698, eff. 1-1-08;
95-1012, eff. 12-15-08.)
 
    Section 95. The Wireless Emergency Telephone Safety Act is
amended by changing Sections 10 and 17 and by adding Section 80
as follows:
 
    (50 ILCS 751/10)
    (Section scheduled to be repealed on April 1, 2013)
    Sec. 10. Definitions. In this Act:
    "Active prepaid wireless telephone" means a prepaid
wireless telephone that has been used or activated by the
customer during the month to complete a telephone call for
which the customer's card or account was decremented.
    "Emergency telephone system board" means a board appointed
by the corporate authorities of any county or municipality that
provides for the management and operation of a 9-1-1 system
within the scope of the duties and powers prescribed by the
Emergency Telephone System Act.
    "Master street address guide" means the computerized
geographical database that consists of all street and address
data within a 9-1-1 system.
    "Mobile telephone number" or "MTN" shall mean the telephone
number assigned to a wireless telephone at the time of initial
activation.
    "Prepaid wireless telecommunications telephone service"
means wireless telecommunications telephone service that
allows a caller to dial 9-1-1 to access the 9-1-1 system, which
service must be paid for in advance and is sold in
predetermined units or dollars which the amount declines with
use in a known amount. which is activated by payment in advance
of a finite dollar amount or for a finite set of minutes and
which, unless an additional finite dollar amount or finite set
of minutes is paid in advance, terminates either (i) upon use
by a customer and delivery by the wireless carrier of an
agreed-upon amount of service corresponding to the total dollar
amount paid in advance, or within a certain period of time
following initial purchase or activation.
    "Public safety agency" means a functional division of a
public agency that provides fire fighting, police, medical, or
other emergency services. For the purpose of providing wireless
service to users of 9-1-1 emergency services, as expressly
provided for in this Act, the Department of State Police may be
considered a public safety agency.
    "Qualified governmental entity" means a unit of local
government authorized to provide 9-1-1 services pursuant to the
Emergency Telephone System Act where no emergency telephone
system board exists.
    "Remit period" means the billing period, one month in
duration, for which a wireless carrier, other than a prepaid
wireless carrier that provides zip code information based upon
the addresses associated with its customers' points of
purchase, customers' billing addresses, or locations
associated with MTNs, as described in subsection (a) of Section
17, remits a surcharge and provides subscriber information by
zip code to the Illinois Commerce Commission, in accordance
with Section 17 of this Act.
    "Statewide wireless emergency 9-1-1 system" means all
areas of the State where an emergency telephone system board
or, in the absence of an emergency telephone system board, a
qualified governmental entity has not declared its intention
for one or more of its public safety answering points to serve
as a primary wireless 9-1-1 public safety answering point for
its jurisdiction. The operator of the statewide wireless
emergency 9-1-1 system shall be the Department of State Police.
    "Sufficient positive balance" means a dollar amount
greater than or equal to the monthly wireless 9-1-1 surcharge
amount.
    "Wireless carrier" means a provider of two-way cellular,
broadband PCS, geographic area 800 MHZ and 900 MHZ Commercial
Mobile Radio Service (CMRS), Wireless Communications Service
(WCS), or other Commercial Mobile Radio Service (CMRS), as
defined by the Federal Communications Commission, offering
radio communications that may provide fixed, mobile, radio
location, or satellite communication services to individuals
or businesses within its assigned spectrum block and
geographical area or that offers real-time, two-way voice
service that is interconnected with the public switched
network, including a reseller of such service.
    "Wireless enhanced 9-1-1" means the ability to relay the
telephone number of the originator of a 9-1-1 call and location
information from any mobile handset or text telephone device
accessing the wireless system to the designated wireless public
safety answering point as set forth in the order of the Federal
Communications Commission, FCC Docket No. 94-102, adopted June
12, 1996, with an effective date of October 1, 1996, and any
subsequent amendment thereto.
    "Wireless public safety answering point" means the
functional division of an emergency telephone system board,
qualified governmental entity, or the Department of State
Police accepting wireless 9-1-1 calls.
    "Wireless subscriber" means an individual or entity to whom
a wireless service account or number has been assigned by a
wireless carrier, other than an account or number associated
with prepaid wireless telecommunication service.
    "Wireless telephone service" includes prepaid wireless
telephone service and means all "commercial mobile service", as
that term is defined in 47 CFR 20.3, including all personal
communications services, wireless radio telephone services,
geographic area specialized and enhanced specialized mobile
radio services, and incumbent wide area specialized mobile
radio licensees that offer real time, two-way service that is
interconnected with the public switched telephone network.
(Source: P.A. 95-63, eff. 8-13-07.)
 
    (50 ILCS 751/17)
    (Section scheduled to be repealed on April 1, 2013)
    Sec. 17. Wireless carrier surcharge.
    (a) Except as provided in Sections Section 45 and 80, each
wireless carrier shall impose a monthly wireless carrier
surcharge per CMRS connection that either has a telephone
number within an area code assigned to Illinois by the North
American Numbering Plan Administrator or has a billing address
in this State. In the case of prepaid wireless telephone
service, this surcharge shall be remitted based upon the
address associated with the point of purchase, the customer
billing address, or the location associated with the MTN for
each active prepaid wireless telephone that has a sufficient
positive balance as of the last day of each month, if that
information is available. No wireless carrier shall impose the
surcharge authorized by this Section upon any subscriber who is
subject to the surcharge imposed by a unit of local government
pursuant to Section 45. Prior to January 1, 2008 (the effective
date of Public Act 95-698), the surcharge amount shall be the
amount set by the Wireless Enhanced 9-1-1 Board. Beginning on
January 1, 2008 (the effective date of Public Act 95-698), the
monthly surcharge imposed under this Section shall be $0.73 per
CMRS connection. The wireless carrier that provides wireless
service to the subscriber shall collect the surcharge from the
subscriber. For mobile telecommunications services provided on
and after August 1, 2002, any surcharge imposed under this Act
shall be imposed based upon the municipality or county that
encompasses the customer's place of primary use as defined in
the Mobile Telecommunications Sourcing Conformity Act. The
surcharge shall be stated as a separate item on the
subscriber's monthly bill. The wireless carrier shall begin
collecting the surcharge on bills issued within 90 days after
the Wireless Enhanced 9-1-1 Board sets the monthly wireless
surcharge. State and local taxes shall not apply to the
wireless carrier surcharge.
    (b) Except as provided in Sections Section 45 and 80, a
wireless carrier shall, within 45 days of collection, remit,
either by check or by electronic funds transfer, to the State
Treasurer the amount of the wireless carrier surcharge
collected from each subscriber. Of the amounts remitted under
this subsection prior to January 1, 2008 (the effective date of
Public Act 95-698), and for surcharges imposed before January
1, 2008 (the effective date of Public Act 95-698) but remitted
after January 1, 2008, the State Treasurer shall deposit
one-third into the Wireless Carrier Reimbursement Fund and
two-thirds into the Wireless Service Emergency Fund. For
surcharges collected and remitted on or after January 1, 2008
(the effective date of Public Act 95-698), $0.1475 per
surcharge collected shall be deposited into the Wireless
Carrier Reimbursement Fund, and $0.5825 per surcharge
collected shall be deposited into the Wireless Service
Emergency Fund. Of the amounts deposited into the Wireless
Carrier Reimbursement Fund under this subsection, $0.01 per
surcharge collected may be distributed to the carriers to cover
their administrative costs. Of the amounts deposited into the
Wireless Service Emergency Fund under this subsection, $0.01
per surcharge collected may be disbursed to the Illinois
Commerce Commission to cover its administrative costs.
    (c) The first such remittance by wireless carriers shall
include the number of wireless subscribers customers by zip
code, and the 9-digit zip code if currently being used or later
implemented by the carrier, that shall be the means by which
the Illinois Commerce Commission shall determine distributions
from the Wireless Service Emergency Fund. This information
shall be updated no less often than every year. Wireless
carriers are not required to remit surcharge moneys that are
billed to subscribers but not yet collected. Any carrier that
fails to provide the zip code information required under this
subsection (c) or any prepaid wireless carrier that fails to
provide zip code information based upon the addresses
associated with its customers' points of purchase, customers'
billing addresses, or locations associated with MTNs, as
described in subsection (a) of this Section, shall be subject
to the penalty set forth in subsection (f) of this Section.
    (d) Any funds collected under the Prepaid Wireless 9-1-1
Surcharge Act shall be distributed using a prorated method
based upon zip code information collected from post-paid
wireless carriers under subsection (c) of this Section. Within
90 days after August 13, 2007 (the effective date of Public Act
95-63), each wireless carrier must implement a mechanism for
the collection of the surcharge imposed under subsection (a) of
this Section from its subscribers. If a wireless carrier does
not implement a mechanism for the collection of the surcharge
from its subscribers in accordance with this subsection (d),
then the carrier is required to remit the surcharge for all
subscribers until the carrier is deemed to be in compliance
with this subsection (d) by the Illinois Commerce Commission.
    (e) If before midnight on the last day of the third
calendar month after the closing date of the remit period a
wireless carrier does not remit the surcharge or any portion
thereof required under this Section, then the surcharge or
portion thereof shall be deemed delinquent until paid in full,
and the Illinois Commerce Commission may impose a penalty
against the carrier in an amount equal to the greater of:
        (1) $25 for each month or portion of a month from the
    time an amount becomes delinquent until the amount is paid
    in full; or
        (2) an amount equal to the product of 1% and the sum of
    all delinquent amounts for each month or portion of a month
    that the delinquent amounts remain unpaid.
    A penalty imposed in accordance with this subsection (e)
for a portion of a month during which the carrier provides the
number of subscribers by zip code as required under subsection
(c) of this Section shall be prorated for each day of that
month during which the carrier had not provided the number of
subscribers by zip code as required under subsection (c) of
this Section. Any penalty imposed under this subsection (e) is
in addition to the amount of the delinquency and is in addition
to any other penalty imposed under this Section.
    (f) If, before midnight on the last day of the third
calendar month after the closing date of the remit period, a
wireless carrier does not provide the number of subscribers by
zip code as required under subsection (c) of this Section, then
the report is deemed delinquent and the Illinois Commerce
Commission may impose a penalty against the carrier in an
amount equal to the greater of:
        (1) $25 for each month or portion of a month that the
    report is delinquent; or
        (2) an amount equal to the product of 1/2 and the
    number of subscribers served by the wireless carrier.
    A penalty imposed in accordance with this subsection (f)
for a portion of a month during which the carrier pays the
delinquent amount in full shall be prorated for each day of
that month that the delinquent amount was paid in full. Any
penalty imposed under this subsection (f) is in addition to any
other penalty imposed under this Section.
    (g) The Illinois Commerce Commission may enforce the
collection of any delinquent amount and any penalty due and
unpaid under this Section by legal action or in any other
manner by which the collection of debts due the State of
Illinois may be enforced under the laws of this State. The
Executive Director of the Illinois Commerce Commission, or his
or her designee, may excuse the payment of any penalty imposed
under this Section if the Executive Director, or his or her
designee, determines that the enforcement of this penalty is
unjust.
    (h) Notwithstanding any provision of law to the contrary,
nothing shall impair the right of wireless carriers to recover
compliance costs for all emergency communications services
that are not reimbursed out of the Wireless Carrier
Reimbursement Fund directly from their wireless subscribers
customers via line-item charges on the wireless subscriber's
customer's bill. Those compliance costs include all costs
incurred by wireless carriers in complying with local, State,
and federal regulatory or legislative mandates that require the
transmission and receipt of emergency communications to and
from the general public, including, but not limited to, E-911.
    (i) The Auditor General shall conduct, on an annual basis,
an audit of the Wireless Service Emergency Fund and the
Wireless Carrier Reimbursement Fund for compliance with the
requirements of this Act. The audit shall include, but not be
limited to, the following determinations:
        (1) Whether the Commission is maintaining detailed
    records of all receipts and disbursements from the Wireless
    Carrier Emergency Fund and the Wireless Carrier
    Reimbursement Fund.
        (2) Whether the Commission's administrative costs
    charged to the funds are adequately documented and are
    reasonable.
        (3) Whether the Commission's procedures for making
    grants and providing reimbursements in accordance with the
    Act are adequate.
        (4) The status of the implementation of wireless 9-1-1
    and E9-1-1 services in Illinois.
    The Commission, the Department of State Police, and any
other entity or person that may have information relevant to
the audit shall cooperate fully and promptly with the Office of
the Auditor General in conducting the audit. The Auditor
General shall commence the audit as soon as possible and
distribute the report upon completion in accordance with
Section 3-14 of the Illinois State Auditing Act.
(Source: P.A. 95-63, eff. 8-13-07; 95-698, eff. 1-1-08; 95-876,
eff. 8-21-08.)
 
    (50 ILCS 751/80 new)
    Sec. 80. Prepaid wireless telecommunications service;
surcharge. The wireless carrier surcharge and any other
requirements imposed by Section 17 or authorized by Section 45
shall not apply to prepaid wireless telecommunications
service. The provisions of the Prepaid Wireless 9-1-1 Surcharge
Act shall apply to prepaid wireless telecommunications
service.
 
    Section 97. The Public Utilities Act is amended by changing
Section 13-230 as follows:
 
    (220 ILCS 5/13-230)
    (Section scheduled to be repealed on July 1, 2013)
    Sec. 13-230. Prepaid calling service. "Prepaid calling
service" means telecommunications service that must be paid for
in advance by an end user, enables the end user to originate
calls using an access number or authorization code, whether
manually or electronically dialed, and is sold in predetermined
units or dollars of which the number declines with use in a
known amount. A prepaid calling service call is a call made by
an end user using prepaid calling service. "Prepaid calling
service" does not include prepaid wireless telecommunications
telephone service as defined in Section 10 of the Wireless
Emergency Telephone Safety Act.
(Source: P.A. 93-1002, eff. 1-1-05.)
 
    Section 997. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
    Section 999. Effective date. This Act takes effect January
1, 2012, except that this Section and Section 90 shall take
effect upon becoming law.

Effective Date: 1/1/2012