HB3702ham002 102ND GENERAL ASSEMBLY

Rep. Kathleen Willis

Filed: 5/10/2021

 

 


 

 


 
10200HB3702ham002LRB102 14080 RLC 26324 a

1
AMENDMENT TO HOUSE BILL 3702

2    AMENDMENT NO. ______. Amend House Bill 3702 on page 1,
3line 6, by inserting "15.3, 15.3a," after "15.2a,"; and
 
4on page 19, line 15, by inserting ", except in a municipality
5with a population over 500,000," after "Illinois"; and
 
6on page 19, line 16, by inserting after the period the
7following:
8"A municipality with a population over 500,000 shall establish
9a statewide Next Generation 9-1-1 network by December 31,
102023."; and
 
11on page 31, by inserting immediately below line 1 the
12following:
 
13    "(50 ILCS 750/15.3)  (from Ch. 134, par. 45.3)
14    (Section scheduled to be repealed on December 31, 2021)

 

 

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1    Sec. 15.3. Local non-wireless surcharge.
2    (a) Except as provided in subsection (l) of this Section,
3the corporate authorities of any municipality or any county
4may, subject to the limitations of subsections (c), (d), and
5(h), and in addition to any tax levied pursuant to the
6Simplified Municipal Telecommunications Tax Act, impose a
7monthly surcharge on billed subscribers of network connection
8provided by telecommunication carriers engaged in the business
9of transmitting messages by means of electricity originating
10within the corporate limits of the municipality or county
11imposing the surcharge at a rate per network connection
12determined in accordance with subsection (c), however the
13monthly surcharge shall not apply to a network connection
14provided for use with pay telephone services. Provided,
15however, that where multiple voice grade communications
16channels are connected between the subscriber's premises and a
17public switched network through private branch exchange (PBX)
18or centrex type service, a municipality imposing a surcharge
19at a rate per network connection, as determined in accordance
20with this Act, shall impose:
21        (i) in a municipality with a population of 500,000 or
22    less or in any county, 5 such surcharges per network
23    connection, as defined under Section 2 of this Act, for
24    both regular service and advanced service provisioned
25    trunk lines;
26        (ii) in a municipality with a population, prior to

 

 

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1    March 1, 2010, of 500,000 or more, 5 surcharges per
2    network connection, as defined under Section 2 of this
3    Act, for both regular service and advanced service
4    provisioned trunk lines;
5        (iii) in a municipality with a population, as of March
6    1, 2010, of 500,000 or more, 5 surcharges per network
7    connection, as defined under Section 2 of this Act, for
8    regular service provisioned trunk lines, and 12 surcharges
9    per network connection, as defined under Section 2 of this
10    Act, for advanced service provisioned trunk lines, except
11    where an advanced service provisioned trunk line supports
12    at least 2 but fewer than 23 simultaneous voice grade
13    calls ("VGC's"), a telecommunication carrier may elect to
14    impose fewer than 12 surcharges per trunk line as provided
15    in subsection (iv) of this Section; or
16        (iv) for an advanced service provisioned trunk line
17    connected between the subscriber's premises and the public
18    switched network through a P.B.X., where the advanced
19    service provisioned trunk line is capable of transporting
20    at least 2 but fewer than 23 simultaneous VGC's per trunk
21    line, the telecommunications carrier collecting the
22    surcharge may elect to impose surcharges in accordance
23    with the table provided in this Section, without limiting
24    any telecommunications carrier's obligations to otherwise
25    keep and maintain records. Any telecommunications carrier
26    electing to impose fewer than 12 surcharges per an

 

 

 

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1    advanced service provisioned trunk line shall keep and
2    maintain records adequately to demonstrate the VGC
3    capability of each advanced service provisioned trunk line
4    with fewer than 12 surcharges imposed, provided that 12
5    surcharges shall be imposed on an advanced service
6    provisioned trunk line regardless of the VGC capability
7    where a telecommunications carrier cannot demonstrate the
8    VGC capability of the advanced service provisioned trunk
9    line.
 
10Facility VGC's 911 Surcharges
11Advanced service provisioned trunk line 18-23 12
12Advanced service provisioned trunk line 12-17 10
13Advanced service provisioned trunk line 2-11 8
14    Subsections (i), (ii), (iii), and (iv) are not intended to
15make any change in the meaning of this Section, but are
16intended to remove possible ambiguity, thereby confirming the
17intent of paragraph (a) as it existed prior to and following
18the effective date of this amendatory Act of the 97th General
19Assembly.
20    For mobile telecommunications services, if a surcharge is
21imposed it shall be imposed based upon the municipality or
22county that encompasses the customer's place of primary use as
23defined in the Mobile Telecommunications Sourcing Conformity
24Act. A municipality may enter into an intergovernmental

 

 

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1agreement with any county in which it is partially located,
2when the county has adopted an ordinance to impose a surcharge
3as provided in subsection (c), to include that portion of the
4municipality lying outside the county in that county's
5surcharge referendum. If the county's surcharge referendum is
6approved, the portion of the municipality identified in the
7intergovernmental agreement shall automatically be
8disconnected from the county in which it lies and connected to
9the county which approved the referendum for purposes of a
10surcharge on telecommunications carriers.
11    (b) For purposes of computing the surcharge imposed by
12subsection (a), the network connections to which the surcharge
13shall apply shall be those in-service network connections,
14other than those network connections assigned to the
15municipality or county, where the service address for each
16such network connection or connections is located within the
17corporate limits of the municipality or county levying the
18surcharge. Except for mobile telecommunication services, the
19"service address" shall mean the location of the primary use
20of the network connection or connections. For mobile
21telecommunication services, "service address" means the
22customer's place of primary use as defined in the Mobile
23Telecommunications Sourcing Conformity Act.
24    (c) Upon the passage of an ordinance to impose a surcharge
25under this Section the clerk of the municipality or county
26shall certify the question of whether the surcharge may be

 

 

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1imposed to the proper election authority who shall submit the
2public question to the electors of the municipality or county
3in accordance with the general election law; provided that
4such question shall not be submitted at a consolidated primary
5election. The public question shall be in substantially the
6following form:
7-------------------------------------------------------------
8    Shall the county (or city, village
9or incorporated town) of ..... impose          YES
10a surcharge of up to ... per month per
11network connection, which surcharge will
12be added to the monthly bill you receive   ------------------
13for telephone or telecommunications
14charges, for the purpose of installing
15(or improving) a 9-1-1 Emergency               NO
16Telephone System?
17-------------------------------------------------------------
18    If a majority of the votes cast upon the public question
19are in favor thereof, the surcharge shall be imposed.
20    However, if a Joint Emergency Telephone System Board is to
21be created pursuant to an intergovernmental agreement under
22Section 15.4, the ordinance to impose the surcharge shall be
23subject to the approval of a majority of the total number of
24votes cast upon the public question by the electors of all of
25the municipalities or counties, or combination thereof, that
26are parties to the intergovernmental agreement.

 

 

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1    The referendum requirement of this subsection (c) shall
2not apply to any municipality with a population over 500,000
3or to any county in which a proposition as to whether a
4sophisticated 9-1-1 Emergency Telephone System should be
5installed in the county, at a cost not to exceed a specified
6monthly amount per network connection, has previously been
7approved by a majority of the electors of the county voting on
8the proposition at an election conducted before the effective
9date of this amendatory Act of 1987.
10    (d) A county may not impose a surcharge, unless requested
11by a municipality, in any incorporated area which has
12previously approved a surcharge as provided in subsection (c)
13or in any incorporated area where the corporate authorities of
14the municipality have previously entered into a binding
15contract or letter of intent with a telecommunications carrier
16to provide sophisticated 9-1-1 service through municipal
17funds.
18    (e) A municipality or county may at any time by ordinance
19change the rate of the surcharge imposed under this Section if
20the new rate does not exceed the rate specified in the
21referendum held pursuant to subsection (c).
22    (f) The surcharge authorized by this Section shall be
23collected from the subscriber by the telecommunications
24carrier providing the subscriber the network connection as a
25separately stated item on the subscriber's bill.
26    (g) The amount of surcharge collected by the

 

 

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1telecommunications carrier shall be paid to the particular
2municipality or county or Joint Emergency Telephone System
3Board not later than 30 days after the surcharge is collected,
4net of any network or other 9-1-1 or sophisticated 9-1-1
5system charges then due the particular telecommunications
6carrier, as shown on an itemized bill. The telecommunications
7carrier collecting the surcharge shall also be entitled to
8deduct 3% of the gross amount of surcharge collected to
9reimburse the telecommunications carrier for the expense of
10accounting and collecting the surcharge.
11    (h) Except as expressly provided in subsection (a) of this
12Section, on or after the effective date of this amendatory Act
13of the 98th General Assembly and until December 31, 2017, a
14municipality with a population of 500,000 or more shall not
15impose a monthly surcharge per network connection in excess of
16the highest monthly surcharge imposed as of January 1, 2014 by
17any county or municipality under subsection (c) of this
18Section. Beginning January 1, 2018 and until December 31, 2023
192021, a municipality with a population over 500,000 may not
20impose a monthly surcharge in excess of $5.00 per network
21connection. On or after January 1, 2024 2022, a municipality
22with a population over 500,000 may not impose a monthly
23surcharge in excess of $2.50 per network connection.
24    (i) Any municipality or county or joint emergency
25telephone system board that has imposed a surcharge pursuant
26to this Section prior to the effective date of this amendatory

 

 

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1Act of 1990 shall hereafter impose the surcharge in accordance
2with subsection (b) of this Section.
3    (j) The corporate authorities of any municipality or
4county may issue, in accordance with Illinois law, bonds,
5notes or other obligations secured in whole or in part by the
6proceeds of the surcharge described in this Section. The State
7of Illinois pledges and agrees that it will not limit or alter
8the rights and powers vested in municipalities and counties by
9this Section to impose the surcharge so as to impair the terms
10of or affect the security for bonds, notes or other
11obligations secured in whole or in part with the proceeds of
12the surcharge described in this Section. The pledge and
13agreement set forth in this Section survive the termination of
14the surcharge under subsection (l) by virtue of the
15replacement of the surcharge monies guaranteed under Section
1620; the State of Illinois pledges and agrees that it will not
17limit or alter the rights vested in municipalities and
18counties to the surcharge replacement funds guaranteed under
19Section 20 so as to impair the terms of or affect the security
20for bonds, notes or other obligations secured in whole or in
21part with the proceeds of the surcharge described in this
22Section.
23    (k) Any surcharge collected by or imposed on a
24telecommunications carrier pursuant to this Section shall be
25held to be a special fund in trust for the municipality, county
26or Joint Emergency Telephone Board imposing the surcharge.

 

 

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1Except for the 3% deduction provided in subsection (g) above,
2the special fund shall not be subject to the claims of
3creditors of the telecommunication carrier.
4    (l) Any surcharge imposed pursuant to this Section by a
5county or municipality, other than a municipality with a
6population in excess of 500,000, shall cease to be imposed on
7January 1, 2016.
8(Source: P.A. 100-20, eff. 7-1-17; 101-639, eff. 6-12-20.)
 
9    (50 ILCS 750/15.3a)
10    (Section scheduled to be repealed on December 31, 2021)
11    Sec. 15.3a. Local wireless surcharge.
12    (a) Notwithstanding any other provision of this Act, a
13unit of local government or emergency telephone system board
14providing wireless 9-1-1 service and imposing and collecting a
15wireless carrier surcharge prior to July 1, 1998 may continue
16its practices of imposing and collecting its wireless carrier
17surcharge, but, except as provided in subsection (b) of this
18Section, in no event shall that monthly surcharge exceed $2.50
19per commercial mobile radio service (CMRS) connection or
20in-service telephone number billed on a monthly basis. For
21mobile telecommunications services provided on and after
22August 1, 2002, any surcharge imposed shall be imposed based
23upon the municipality or county that encompasses the
24customer's place of primary use as defined in the Mobile
25Telecommunications Sourcing Conformity Act.

 

 

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1    (b) Until December 31, 2017, the corporate authorities of
2a municipality with a population in excess of 500,000 on the
3effective date of this amendatory Act of the 99th General
4Assembly may by ordinance continue to impose and collect a
5monthly surcharge per commercial mobile radio service (CMRS)
6connection or in-service telephone number billed on a monthly
7basis that does not exceed the highest monthly surcharge
8imposed as of January 1, 2014 by any county or municipality
9under subsection (c) of Section 15.3 of this Act. Beginning
10January 1, 2018, and until December 31, 2023 2021, a
11municipality with a population in excess of 500,000 may by
12ordinance continue to impose and collect a monthly surcharge
13per commercial mobile radio service (CMRS) connection or
14in-service telephone number billed on a monthly basis that
15does not exceed $5.00. On or after January 1, 2024 2022, the
16municipality may continue imposing and collecting its wireless
17carrier surcharge as provided in and subject to the
18limitations of subsection (a) of this Section.
19    (c) In addition to any other lawful purpose, a
20municipality with a population over 500,000 may use the moneys
21collected under this Section for any anti-terrorism or
22emergency preparedness measures, including, but not limited
23to, preparedness planning, providing local matching funds for
24federal or State grants, personnel training, and specialized
25equipment, including surveillance cameras, as needed to deal
26with natural and terrorist-inspired emergency situations or

 

 

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1events.
2(Source: P.A. 100-20, eff. 7-1-17; 101-639, eff. 6-12-20.)";
3and
 
4on page 66, line 20, by replacing "bi-annually" with
5"biennially"; and
 
6by replacing line 24 on page 66 through line 8 on page 72 with
7the following:
 
8    "Section 20. The Prepaid Wireless 9-1-1 Surcharge Act is
9amended by changing Section 15 as follows:
 
10    (50 ILCS 753/15)
11    Sec. 15. Prepaid wireless 9-1-1 surcharge.
12    (a) Until September 30, 2015, there is hereby imposed on
13consumers a prepaid wireless 9-1-1 surcharge of 1.5% per
14retail transaction. Beginning October 1, 2015, the prepaid
15wireless 9-1-1 surcharge shall be 3% per retail transaction.
16The surcharge authorized by this subsection (a) does not apply
17in a home rule municipality having a population in excess of
18500,000.
19    (a-5) On or after the effective date of this amendatory
20Act of the 98th General Assembly and until December 31, 2023
212020, a home rule municipality having a population in excess
22of 500,000 on the effective date of this amendatory Act may

 

 

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1impose a prepaid wireless 9-1-1 surcharge not to exceed 9% per
2retail transaction sourced to that jurisdiction and collected
3and remitted in accordance with the provisions of subsection
4(b-5) of this Section. On or after January 1, 2021, a home rule
5municipality having a population in excess of 500,000 on the
6effective date of this Act may only impose a prepaid wireless
79-1-1 surcharge not to exceed 7% per retail transaction
8sourced to that jurisdiction and collected and remitted in
9accordance with the provisions of subsection (b-5).
10    (b) The prepaid wireless 9-1-1 surcharge shall be
11collected by the seller from the consumer with respect to each
12retail transaction occurring in this State and shall be
13remitted to the Department by the seller as provided in this
14Act. The amount of the prepaid wireless 9-1-1 surcharge shall
15be separately stated as a distinct item apart from the charge
16for the prepaid wireless telecommunications service on an
17invoice, receipt, or other similar document that is provided
18to the consumer by the seller or shall be otherwise disclosed
19to the consumer. If the seller does not separately state the
20surcharge as a distinct item to the consumer as provided in
21this Section, then the seller shall maintain books and records
22as required by this Act which clearly identify the amount of
23the 9-1-1 surcharge for retail transactions.
24    For purposes of this subsection (b), a retail transaction
25occurs in this State if (i) the retail transaction is made in
26person by a consumer at the seller's business location and the

 

 

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1business is located within the State; (ii) the seller is a
2provider and sells prepaid wireless telecommunications service
3to a consumer located in Illinois; (iii) the retail
4transaction is treated as occurring in this State for purposes
5of the Retailers' Occupation Tax Act; or (iv) a seller that is
6included within the definition of a "retailer maintaining a
7place of business in this State" under Section 2 of the Use Tax
8Act makes a sale of prepaid wireless telecommunications
9service to a consumer located in Illinois. In the case of a
10retail transaction which does not occur in person at a
11seller's business location, if a consumer uses a credit card
12to purchase prepaid wireless telecommunications service
13on-line or over the telephone, and no product is shipped to the
14consumer, the transaction occurs in this State if the billing
15address for the consumer's credit card is in this State.
16    (b-5) The prepaid wireless 9-1-1 surcharge imposed under
17subsection (a-5) of this Section shall be collected by the
18seller from the consumer with respect to each retail
19transaction occurring in the municipality imposing the
20surcharge. The amount of the prepaid wireless 9-1-1 surcharge
21shall be separately stated on an invoice, receipt, or other
22similar document that is provided to the consumer by the
23seller or shall be otherwise disclosed to the consumer. If the
24seller does not separately state the surcharge as a distinct
25item to the consumer as provided in this Section, then the
26seller shall maintain books and records as required by this

 

 

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1Act which clearly identify the amount of the 9-1-1 surcharge
2for retail transactions.
3    For purposes of this subsection (b-5), a retail
4transaction occurs in the municipality if (i) the retail
5transaction is made in person by a consumer at the seller's
6business location and the business is located within the
7municipality; (ii) the seller is a provider and sells prepaid
8wireless telecommunications service to a consumer located in
9the municipality; (iii) the retail transaction is treated as
10occurring in the municipality for purposes of the Retailers'
11Occupation Tax Act; or (iv) a seller that is included within
12the definition of a "retailer maintaining a place of business
13in this State" under Section 2 of the Use Tax Act makes a sale
14of prepaid wireless telecommunications service to a consumer
15located in the municipality. In the case of a retail
16transaction which does not occur in person at a seller's
17business location, if a consumer uses a credit card to
18purchase prepaid wireless telecommunications service on-line
19or over the telephone, and no product is shipped to the
20consumer, the transaction occurs in the municipality if the
21billing address for the consumer's credit card is in the
22municipality.
23    (c) The prepaid wireless 9-1-1 surcharge is imposed on the
24consumer and not on any provider. The seller shall be liable to
25remit all prepaid wireless 9-1-1 surcharges that the seller
26collects from consumers as provided in Section 20, including

 

 

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1all such surcharges that the seller is deemed to collect where
2the amount of the surcharge has not been separately stated on
3an invoice, receipt, or other similar document provided to the
4consumer by the seller. The surcharge collected or deemed
5collected by a seller shall constitute a debt owed by the
6seller to this State, and any such surcharge actually
7collected shall be held in trust for the benefit of the
8Department.
9    For purposes of this subsection (c), the surcharge shall
10not be imposed or collected from entities that have an active
11tax exemption identification number issued by the Department
12under Section 1g of the Retailers' Occupation Tax Act.
13    (d) The amount of the prepaid wireless 9-1-1 surcharge
14that is collected by a seller from a consumer, if such amount
15is separately stated on an invoice, receipt, or other similar
16document provided to the consumer by the seller, shall not be
17included in the base for measuring any tax, fee, surcharge, or
18other charge that is imposed by this State, any political
19subdivision of this State, or any intergovernmental agency.
20    (e) (Blank).
21    (e-5) Any changes in the rate of the surcharge imposed by a
22municipality under the authority granted in subsection (a-5)
23of this Section shall be effective on the first day of the
24first calendar month to occur at least 60 days after the
25enactment of the change. The Department shall provide not less
26than 30 days' notice of the increase or reduction in the rate

 

 

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1of such surcharge on the Department's website.
2    (f) When prepaid wireless telecommunications service is
3sold with one or more other products or services for a single,
4non-itemized price, then the percentage specified in
5subsection (a) or (a-5) of this Section 15 shall be applied to
6the entire non-itemized price unless the seller elects to
7apply the percentage to (i) the dollar amount of the prepaid
8wireless telecommunications service if that dollar amount is
9disclosed to the consumer or (ii) the portion of the price that
10is attributable to the prepaid wireless telecommunications
11service if the retailer can identify that portion by
12reasonable and verifiable standards from its books and records
13that are kept in the regular course of business for other
14purposes, including, but not limited to, books and records
15that are kept for non-tax purposes. However, if a minimal
16amount of prepaid wireless telecommunications service is sold
17with a prepaid wireless device for a single, non-itemized
18price, then the seller may elect not to apply the percentage
19specified in subsection (a) or (a-5) of this Section 15 to such
20transaction. For purposes of this subsection, an amount of
21service denominated as 10 minutes or less or $5 or less is
22considered minimal.
23    (g) The prepaid wireless 9-1-1 surcharge imposed under
24subsections (a) and (a-5) of this Section is not imposed on the
25provider or the consumer for wireless Lifeline service where
26the consumer does not pay the provider for the service. Where

 

 

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1the consumer purchases from the provider optional minutes,
2texts, or other services in addition to the federally funded
3Lifeline benefit, a consumer must pay the prepaid wireless
49-1-1 surcharge, and it must be collected by the seller
5according to subsection (b-5).
6(Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)".