Illinois 2023-2024 Regular Session

Illinois House Bill HB3808 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0360
2	1		HB3808 EnrolledLRB103 30973 AMQ 57562 b HB3808 Enrolled LRB103 30973 AMQ 57562 b
3	2		HB3808 Enrolled LRB103 30973 AMQ 57562 b
4		-	AN ACT concerning regulation.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Public Utilities Act is amended by changing
8		-	Sections 21-201 and 21-801 as follows:
9		-	(220 ILCS 5/21-201)
10		-	(Section scheduled to be repealed on December 31, 2026)
11		-	Sec. 21-201. Definitions. As used in this Article:
12		-	(a) "Access" means that the cable or video provider is
13		-	capable of providing cable services or video services at the
14		-	household address using any technology, other than
15		-	direct-to-home satellite service, that provides 2-way
16		-	broadband Internet capability and video programming, content,
17		-	and functionality, regardless of whether any customer has
18		-	ordered service or whether the owner or landlord or other
19		-	responsible person has granted access to the household. If
20		-	more than one technology is used, the technologies shall
21		-	provide similar 2-way broadband Internet accessibility and
22		-	similar video programming.
23		-	(b) "Basic cable or video service" means any cable or
24		-	video service offering or tier that includes the
25		-	re
	3	+	1 AN ACT concerning regulation.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Public Utilities Act is amended by changing
	7	+	5 Sections 21-201 and 21-801 as follows:
	8	+	6 (220 ILCS 5/21-201)
	9	+	7 (Section scheduled to be repealed on December 31, 2026)
	10	+	8 Sec. 21-201. Definitions. As used in this Article:
	11	+	9 (a) "Access" means that the cable or video provider is
	12	+	10 capable of providing cable services or video services at the
	13	+	11 household address using any technology, other than
	14	+	12 direct-to-home satellite service, that provides 2-way
	15	+	13 broadband Internet capability and video programming, content,
	16	+	14 and functionality, regardless of whether any customer has
	17	+	15 ordered service or whether the owner or landlord or other
	18	+	16 responsible person has granted access to the household. If
	19	+	17 more than one technology is used, the technologies shall
	20	+	18 provide similar 2-way broadband Internet accessibility and
	21	+	19 similar video programming.
	22	+	20 (b) "Basic cable or video service" means any cable or
	23	+	21 video service offering or tier that includes the
	24	+	22 re
26	25		transmission of local television broadcast signals.
27		-	(c) "Broadband service" means a high speed service
	26	+	23 (c) "Broadband service" means a high speed service
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34		-	connection to the public Internet capable of supporting, in at
35		-	least one direction, a speed in excess of 200 kilobits per
36		-	second (kbps) to the network demarcation point at the
37		-	subscriber's premises.
38		-	(d) "Cable operator" means that term as defined in item
39		-	(5) of 47 U.S.C. 522.
40		-	(e) "Cable service" means that term as defined in item (6)
41		-	of 47 U.S.C. 522.
42		-	(f) "Cable system" means that term as defined in item (7)
43		-	of 47 U.S.C. 522.
44		-	(g) "Commission" means the Illinois Commerce Commission.
45		-	(h) "Competitive cable service or video service provider"
46		-	means a person or entity that is providing or seeks to provide
47		-	cable service or video service in an area where there is at
48		-	least one incumbent cable operator.
49		-	(i) "Designated market area" means a designated market
50		-	area, as determined by Nielsen Media Research and published in
51		-	the 1999-2000 Nielsen Station Index Directory and Nielsen
52		-	Station Index United States Television Household Estimates or
53		-	any successor publication. For any designated market area that
54		-	crosses State lines, only households in the portion of the
55		-	designated market area that is located within the holder's
56		-	telecommunications service area in the State where access to
57		-	video service will be offered shall be considered.
58		-	(j) "Footprint" means the geographic area designated by
59		-	the cable service or video service provider as the geographic
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	35	+	1 connection to the public Internet capable of supporting, in at
	36	+	2 least one direction, a speed in excess of 200 kilobits per
	37	+	3 second (kbps) to the network demarcation point at the
	38	+	4 subscriber's premises.
	39	+	5 (d) "Cable operator" means that term as defined in item
	40	+	6 (5) of 47 U.S.C. 522.
	41	+	7 (e) "Cable service" means that term as defined in item (6)
	42	+	8 of 47 U.S.C. 522.
	43	+	9 (f) "Cable system" means that term as defined in item (7)
	44	+	10 of 47 U.S.C. 522.
	45	+	11 (g) "Commission" means the Illinois Commerce Commission.
	46	+	12 (h) "Competitive cable service or video service provider"
	47	+	13 means a person or entity that is providing or seeks to provide
	48	+	14 cable service or video service in an area where there is at
	49	+	15 least one incumbent cable operator.
	50	+	16 (i) "Designated market area" means a designated market
	51	+	17 area, as determined by Nielsen Media Research and published in
	52	+	18 the 1999-2000 Nielsen Station Index Directory and Nielsen
	53	+	19 Station Index United States Television Household Estimates or
	54	+	20 any successor publication. For any designated market area that
	55	+	21 crosses State lines, only households in the portion of the
	56	+	22 designated market area that is located within the holder's
	57	+	23 telecommunications service area in the State where access to
	58	+	24 video service will be offered shall be considered.
	59	+	25 (j) "Footprint" means the geographic area designated by
	60	+	26 the cable service or video service provider as the geographic
60	61
61	62
62		-	area in which it will offer cable services or video services
63		-	during the period of its State-issued authorization. Each
64		-	footprint shall be identified in terms of either (i)
65		-	exchanges, as that term is defined in Section 13-206 of this
66		-	Act; (ii) a collection of United States Census Bureau Block
67		-	numbers (13 digit); (iii) if the area is smaller than the areas
68		-	identified in either (i) or (ii), by geographic information
69		-	system digital boundaries meeting or exceeding national map
70		-	accuracy standards; or (iv) local units of government.
71		-	(k) "Holder" means a person or entity that has received
72		-	authorization to offer or provide cable or video service from
73		-	the Commission pursuant to Section 21-401 of this Article.
74		-	(l) "Household" means a house, an apartment, a mobile
75		-	home, a group of rooms, or a single room that is intended for
76		-	occupancy as separate living quarters. Separate living
77		-	quarters are those in which the occupants live and eat
78		-	separately from any other persons in the building and that
79		-	have direct access from the outside of the building or through
80		-	a common hall. This definition is consistent with the United
81		-	States Census Bureau, as that definition may be amended
82		-	thereafter.
83		-	(m) "Incumbent cable operator" means a person or entity
84		-	that provided cable services or video services in a particular
85		-	area under a franchise agreement with a local unit of
86		-	government pursuant to Section 11-42-11 of the Illinois
87		-	Municipal Code (65 ILCS 5/11-42-11) or Section 5-1095 of the
88	63
89	64
90		-	Counties Code (55 ILCS 5/5-1095) on January 1, 2007.
91		-	(n) "Local franchising authority" means the local unit of
92		-	government that has or requires a franchise with a cable
93		-	operator, a provider of cable services, or a provider of video
94		-	services to construct or operate a cable or video system or to
95		-	offer cable services or video services under Section 11-42-11
96		-	of the Illinois Municipal Code (65 ILCS 5/11-42-11) or Section
97		-	5-1095 of the Counties Code (55 ILCS 5/5-1095).
98		-	(o) "Local unit of government" means a city, village,
99		-	incorporated town, or county.
100		-	(p) "Low-income household" means those residential
101		-	households located within the holder's existing telephone
102		-	service area where the average annual household income is less
103		-	than $35,000, based on the United States Census Bureau
104		-	estimates adjusted annually to reflect rates of change and
105		-	distribution.
106		-	(q) "Public rights-of-way" means the areas on, below, or
107		-	above a public roadway, highway, street, public sidewalk,
108		-	alley, waterway, or utility easements dedicated for compatible
109		-	uses.
110		-	(r) "Service" means the provision of cable service or
111		-	video service to subscribers and the interaction of
112		-	subscribers with the person or entity that has received
113		-	authorization to offer or provide cable or video service from
114		-	the Commission pursuant to Section 21-401 of this Act.
115		-	(s) "Service provider fee" means the amount paid under
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118		-	Section 21-801 of this Act by the holder to a municipality, or
119		-	in the case of an unincorporated service area to a county, for
120		-	service areas within its territorial jurisdiction, but under
121		-	no circumstances shall the service provider fee be paid to
122		-	more than one local unit of government for the same portion of
123		-	the holder's service area.
124		-	(t) "Telecommunications service area" means the area
125		-	designated by the Commission as the area in which a
126		-	telecommunications company was obligated to provide
127		-	non-competitive local telephone service as of February 8, 1996
128		-	as incorporated into Section 13-202.5 of this Act.
129		-	(u) "Video programming" means that term as defined in item
130		-	(20) of 47 U.S.C. 522.
131		-	(v) "Video service" means video programming provided by a
132		-	video service provider and subscriber interaction, if any,
133		-	that is required for the selection or use of such video
134		-	programming services, and that is provided through wireline
135		-	facilities located at least in part in the public
136		-	rights-of-way without regard to delivery technology, including
137		-	Internet protocol technology. This definition does not include
138		-	the following: (1) any video programming provided by a
139		-	commercial mobile service provider defined in subsection (d)
140		-	of 47 U.S.C. 332; (2) direct-to-home satellite services
141		-	defined in subsection (v) of 47 U.S.C. 303; or (3) any video
142		-	programming provided solely as part of, and accessed via a ,
143		-	service that enables users to access content, information,
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	71	+	1 area in which it will offer cable services or video services
	72	+	2 during the period of its State-issued authorization. Each
	73	+	3 footprint shall be identified in terms of either (i)
	74	+	4 exchanges, as that term is defined in Section 13-206 of this
	75	+	5 Act; (ii) a collection of United States Census Bureau Block
	76	+	6 numbers (13 digit); (iii) if the area is smaller than the areas
	77	+	7 identified in either (i) or (ii), by geographic information
	78	+	8 system digital boundaries meeting or exceeding national map
	79	+	9 accuracy standards; or (iv) local units of government.
	80	+	10 (k) "Holder" means a person or entity that has received
	81	+	11 authorization to offer or provide cable or video service from
	82	+	12 the Commission pursuant to Section 21-401 of this Article.
	83	+	13 (l) "Household" means a house, an apartment, a mobile
	84	+	14 home, a group of rooms, or a single room that is intended for
	85	+	15 occupancy as separate living quarters. Separate living
	86	+	16 quarters are those in which the occupants live and eat
	87	+	17 separately from any other persons in the building and that
	88	+	18 have direct access from the outside of the building or through
	89	+	19 a common hall. This definition is consistent with the United
	90	+	20 States Census Bureau, as that definition may be amended
	91	+	21 thereafter.
	92	+	22 (m) "Incumbent cable operator" means a person or entity
	93	+	23 that provided cable services or video services in a particular
	94	+	24 area under a franchise agreement with a local unit of
	95	+	25 government pursuant to Section 11-42-11 of the Illinois
	96	+	26 Municipal Code (65 ILCS 5/11-42-11) or Section 5-1095 of the
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146		-	electronic mail, or other services offered over the public
147		-	Internet, including Internet streaming content.
148		-	(Source: P.A. 100-20, eff. 7-1-17.)
149		-	(220 ILCS 5/21-801)
150		-	(Section scheduled to be repealed on December 31, 2026)
151		-	Sec. 21-801. Applicable fees payable to the local unit of
152		-	government.
153		-	(a) Prior to offering cable service or video service in a
154		-	local unit of government's jurisdiction, a holder shall notify
155		-	the local unit of government. The notice shall be given to the
156		-	local unit of government at least 10 days before the holder
157		-	begins to offer cable service or video service within the
158		-	boundaries of that local unit of government.
159		-	(b) In any local unit of government in which a holder
160		-	offers cable service or video service on a commercial basis,
161		-	the holder shall be liable for and pay the service provider fee
162		-	to the local unit of government. The local unit of government
163		-	shall adopt an ordinance imposing such a fee. The holder's
164		-	liability for the fee shall commence on the first day of the
165		-	calendar month that is at least 30 days after the holder
166		-	receives such ordinance. For any such ordinance adopted on or
167		-	after the effective date of this amendatory Act of the 99th
168		-	General Assembly, the holder's liability shall commence on the
169		-	first day of the calendar month that is at least 30 days after
170		-	the adoption of such ordinance. The ordinance shall be sent by
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173		-	mail, postage prepaid, to the address listed on the holder's
174		-	application provided to the local unit of government pursuant
175		-	to item (6) of subsection (b) of Section 21-401 of this Act.
176		-	The fee authorized by this Section shall be 5% of gross
177		-	revenues or the same as the fee paid to the local unit of
178		-	government by any incumbent cable operator providing cable
179		-	service. The payment of the service provider fee shall be due
180		-	on a quarterly basis, 45 days after the close of the calendar
181		-	quarter. If mailed, the fee is considered paid on the date it
182		-	is postmarked. Except as provided in this Article, the local
183		-	unit of government may not demand any additional fees or
184		-	charges from the holder and may not demand the use of any other
185		-	calculation method other than allowed under this Article.
186		-	(c) For purposes of this Article, "gross revenues" means
187		-	all consideration of any kind or nature, including, without
188		-	limitation, cash, credits, property, and in-kind contributions
189		-	received by the holder for the operation of a cable or video
190		-	system to provide cable service or video service within the
191		-	holder's cable service or video service area within the local
192		-	unit of government's jurisdiction.
193		-	(1) Gross revenues shall include the following:
194		-	(i) Recurring charges for cable service or video
195		-	service.
196		-	(ii) Event-based charges for cable service or
197		-	video service, including, but not limited to,
198		-	pay-per-view and video-on-demand charges.
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201		-	(iii) Rental of set-top boxes and other cable
202		-	service or video service equipment.
203		-	(iv) Service charges related to the provision of
204		-	cable service or video service, including, but not
205		-	limited to, activation, installation, and repair
206		-	charges.
207		-	(v) Administrative charges related to the
208		-	provision of cable service or video service, including
209		-	but not limited to service order and service
210		-	termination charges.
211		-	(vi) Late payment fees or charges, insufficient
212		-	funds check charges, and other charges assessed to
213		-	recover the costs of collecting delinquent payments.
214		-	(vii) A pro rata portion of all revenue derived by
215		-	the holder or its affiliates pursuant to compensation
216		-	arrangements for advertising or for promotion or
217		-	exhibition of any products or services derived from
218		-	the operation of the holder's network to provide cable
219		-	service or video service within the local unit of
220		-	government's jurisdiction. The allocation shall be
221		-	based on the number of subscribers in the local unit of
222		-	government divided by the total number of subscribers
223		-	in relation to the relevant regional or national
224		-	compensation arrangement.
225		-	(viii) Compensation received by the holder that is
226		-	derived from the operation of the holder's network to
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	107	+	1 Counties Code (55 ILCS 5/5-1095) on January 1, 2007.
	108	+	2 (n) "Local franchising authority" means the local unit of
	109	+	3 government that has or requires a franchise with a cable
	110	+	4 operator, a provider of cable services, or a provider of video
	111	+	5 services to construct or operate a cable or video system or to
	112	+	6 offer cable services or video services under Section 11-42-11
	113	+	7 of the Illinois Municipal Code (65 ILCS 5/11-42-11) or Section
	114	+	8 5-1095 of the Counties Code (55 ILCS 5/5-1095).
	115	+	9 (o) "Local unit of government" means a city, village,
	116	+	10 incorporated town, or county.
	117	+	11 (p) "Low-income household" means those residential
	118	+	12 households located within the holder's existing telephone
	119	+	13 service area where the average annual household income is less
	120	+	14 than $35,000, based on the United States Census Bureau
	121	+	15 estimates adjusted annually to reflect rates of change and
	122	+	16 distribution.
	123	+	17 (q) "Public rights-of-way" means the areas on, below, or
	124	+	18 above a public roadway, highway, street, public sidewalk,
	125	+	19 alley, waterway, or utility easements dedicated for compatible
	126	+	20 uses.
	127	+	21 (r) "Service" means the provision of cable service or
	128	+	22 video service to subscribers and the interaction of
	129	+	23 subscribers with the person or entity that has received
	130	+	24 authorization to offer or provide cable or video service from
	131	+	25 the Commission pursuant to Section 21-401 of this Act.
	132	+	26 (s) "Service provider fee" means the amount paid under
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229		-	provide cable service or video service with respect to
230		-	commissions that are received by the holder as
231		-	compensation for promotion or exhibition of any
232		-	products or services on the holder's network, such as
233		-	a "home shopping" or similar channel, subject to item
234		-	(ix) of this paragraph (1).
235		-	(ix) In the case of a cable service or video
236		-	service that is bundled or integrated functionally
237		-	with other services, capabilities, or applications,
238		-	the portion of the holder's revenue attributable to
239		-	the other services, capabilities, or applications
240		-	shall be included in gross revenue unless the holder
241		-	can reasonably identify the division or exclusion of
242		-	the revenue from its books and records that are kept in
243		-	the regular course of business.
244		-	(x) The service provider fee permitted by
245		-	subsection (b) of this Section.
246		-	(2) Gross revenues do not include any of the
247		-	following:
248		-	(i) Revenues not actually received, even if
249		-	billed, such as bad debt, subject to item (vi) of
250		-	paragraph (1) of this subsection (c).
251		-	(ii) Refunds, discounts, or other price
252		-	adjustments that reduce the amount of gross revenues
253		-	received by the holder of the State-issued
254		-	authorization to the extent the refund, rebate,
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256	136
257		-	credit, or discount is attributable to cable service
258		-	or video service.
259		-	(iii) Regardless of whether the services are
260		-	bundled, packaged, or functionally integrated with
261		-	cable service or video service, any revenues received
262		-	from services not classified as cable service or video
263		-	service, including, without limitation, revenue
264		-	received from telecommunications services, information
265		-	services, or the provision of directory or Internet
266		-	advertising, including yellow pages, white pages,
267		-	banner advertisement, and electronic publishing, or
268		-	any other revenues attributed by the holder to
269		-	noncable service or nonvideo service in accordance
270		-	with the holder's books and records and records kept
271		-	in the regular course of business and any applicable
272		-	laws, rules, regulations, standards, or orders.
273		-	(iv) The sale of cable services or video services
274		-	for resale in which the purchaser is required to
275		-	collect the service provider fee from the purchaser's
276		-	subscribers to the extent the purchaser certifies in
277		-	writing that it will resell the service within the
278		-	local unit of government's jurisdiction and pay the
279		-	fee permitted by subsection (b) of this Section with
280		-	respect to the service.
281		-	(v) Any tax or fee of general applicability
282		-	imposed upon the subscribers or the transaction by a
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285		-	city, State, federal, or any other governmental entity
286		-	and collected by the holder of the State-issued
287		-	authorization and required to be remitted to the
288		-	taxing entity, including sales and use taxes.
289		-	(vi) Security deposits collected from subscribers.
290		-	(vii) Amounts paid by subscribers to "home
291		-	shopping" or similar vendors for merchandise sold
292		-	through any home shopping channel offered as part of
293		-	the cable service or video service.
294		-	(viii) Any revenues received from video
295		-	programming accessed via a service that enables users
296		-	to access content, information, electronic mail, or
297		-	other services offered over the Internet, including
298		-	Internet streaming content.
299		-	(3) Revenue of an affiliate of a holder shall be
300		-	included in the calculation of gross revenues to the
301		-	extent the treatment of the revenue as revenue of the
302		-	affiliate rather than the holder has the effect of evading
303		-	the payment of the fee permitted by subsection (b) of this
304		-	Section which would otherwise be paid by the cable service
305		-	or video service.
306		-	(d)(1) Except for a holder providing cable service that is
307		-	subject to the fee in subsection (i) of this Section, the
308		-	holder shall pay to the local unit of government or the entity
309		-	designated by that local unit of government to manage public,
310		-	education, and government access, upon request as support for
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	143	+	1 Section 21-801 of this Act by the holder to a municipality, or
	144	+	2 in the case of an unincorporated service area to a county, for
	145	+	3 service areas within its territorial jurisdiction, but under
	146	+	4 no circumstances shall the service provider fee be paid to
	147	+	5 more than one local unit of government for the same portion of
	148	+	6 the holder's service area.
	149	+	7 (t) "Telecommunications service area" means the area
	150	+	8 designated by the Commission as the area in which a
	151	+	9 telecommunications company was obligated to provide
	152	+	10 non-competitive local telephone service as of February 8, 1996
	153	+	11 as incorporated into Section 13-202.5 of this Act.
	154	+	12 (u) "Video programming" means that term as defined in item
	155	+	13 (20) of 47 U.S.C. 522.
	156	+	14 (v) "Video service" means video programming provided by a
	157	+	15 video service provider and subscriber interaction, if any,
	158	+	16 that is required for the selection or use of such video
	159	+	17 programming services, and that is provided through wireline
	160	+	18 facilities located at least in part in the public
	161	+	19 rights-of-way without regard to delivery technology, including
	162	+	20 Internet protocol technology. This definition does not include
	163	+	21 the following: (1) any video programming provided by a
	164	+	22 commercial mobile service provider defined in subsection (d)
	165	+	23 of 47 U.S.C. 332; (2) direct-to-home satellite services
	166	+	24 defined in subsection (v) of 47 U.S.C. 303; or (3) any video
	167	+	25 programming provided solely as part of, and accessed via a ,
	168	+	26 service that enables users to access content, information,
311	169
312	170
313		-	public, education, and government access, a fee equal to no
314		-	less than (i) 1% of gross revenues or (ii) if greater, the
315		-	percentage of gross revenues that incumbent cable operators
316		-	pay to the local unit of government or its designee for public,
317		-	education, and government access support in the local unit of
318		-	government's jurisdiction. For purposes of item (ii) of
319		-	paragraph (1) of this subsection (d), the percentage of gross
320		-	revenues that all incumbent cable operators pay shall be equal
321		-	to the annual sum of the payments that incumbent cable
322		-	operators in the service area are obligated to pay by
323		-	franchises and agreements or by contracts with the local
324		-	government designee for public, education and government
325		-	access in effect on January 1, 2007, including the total of any
326		-	lump sum payments required to be made over the term of each
327		-	franchise or agreement divided by the number of years of the
328		-	applicable term, divided by the annual sum of such incumbent
329		-	cable operator's or operators' gross revenues during the
330		-	immediately prior calendar year. The sum of payments includes
331		-	any payments that an incumbent cable operator is required to
332		-	pay pursuant to item (3) of subsection (c) of Section 21-301.
333		-	(2) A local unit of government may require all holders of a
334		-	State-issued authorization and all cable operators franchised
335		-	by that local unit of government on June 30, 2007 (the
336		-	effective date of this Section) in the franchise area to
337		-	provide to the local unit of government, or to the entity
338		-	designated by that local unit of government to manage public,
339	171
340	172
341		-	education, and government access, information sufficient to
342		-	calculate the public, education, and government access
343		-	equivalent fee and any credits under paragraph (1) of this
344		-	subsection (d).
345		-	(3) The fee shall be due on a quarterly basis and paid 45
346		-	days after the close of the calendar quarter. Each payment
347		-	shall include a statement explaining the basis for the
348		-	calculation of the fee. If mailed, the fee is considered paid
349		-	on the date it is postmarked. The liability of the holder for
350		-	payment of the fee under this subsection shall commence on the
351		-	same date as the payment of the service provider fee pursuant
352		-	to subsection (b) of this Section.
353		-	(e) The holder may identify and collect the amount of the
354		-	service provider fee as a separate line item on the regular
355		-	bill of each subscriber.
356		-	(f) The holder may identify and collect the amount of the
357		-	public, education, and government programming support fee as a
358		-	separate line item on the regular bill of each subscriber.
359		-	(g) All determinations and computations under this Section
360		-	shall be made pursuant to the definition of gross revenues set
361		-	forth in this Section and shall be made pursuant to generally
362		-	accepted accounting principles.
363		-	(h) Nothing contained in this Article shall be construed
364		-	to exempt a holder from any tax that is or may later be imposed
365		-	by the local unit of government, including any tax that is or
366		-	may later be required to be paid by or through the holder with
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367	175
368	176
369		-	respect to cable service or video service. A State-issued
370		-	authorization shall not affect any requirement of the holder
371		-	with respect to payment of the local unit of government's
372		-	simplified municipal telecommunications tax or any other tax
373		-	as it applies to any telephone service provided by the holder.
374		-	A State-issued authorization shall not affect any requirement
375		-	of the holder with respect to payment of the local unit of
376		-	government's 911 or E911 fees, taxes, or charges.
377		-	(i) Except for a municipality having a population of
378		-	2,000,000 or more, the fee imposed under paragraph (1) of
379		-	subsection (d) by a local unit of government against a holder
380		-	who is a cable operator shall be as follows:
381		-	(1) the fee shall be collected and paid only for
382		-	capital costs that are considered lawful under Subchapter
383		-	VI of the federal Communications Act of 1934, as amended,
384		-	and as implemented by the Federal Communications
385		-	Commission;
386		-	(2) the local unit of government shall impose any fee
387		-	by ordinance; and
388		-	(3) the fee may not exceed 1% of gross revenue; if,
389		-	however, on the date that an incumbent cable operator
390		-	files an application under Section 21-401, the incumbent
391		-	cable operator is operating under a franchise agreement
392		-	that imposes a fee for support for capital costs for
393		-	public, education, and government access facilities
394		-	obligations in excess of 1% of gross revenue, then the
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	179	+	1 electronic mail, or other services offered over the public
	180	+	2 Internet, including Internet streaming content.
	181	+	3 (Source: P.A. 100-20, eff. 7-1-17.)
	182	+	4 (220 ILCS 5/21-801)
	183	+	5 (Section scheduled to be repealed on December 31, 2026)
	184	+	6 Sec. 21-801. Applicable fees payable to the local unit of
	185	+	7 government.
	186	+	8 (a) Prior to offering cable service or video service in a
	187	+	9 local unit of government's jurisdiction, a holder shall notify
	188	+	10 the local unit of government. The notice shall be given to the
	189	+	11 local unit of government at least 10 days before the holder
	190	+	12 begins to offer cable service or video service within the
	191	+	13 boundaries of that local unit of government.
	192	+	14 (b) In any local unit of government in which a holder
	193	+	15 offers cable service or video service on a commercial basis,
	194	+	16 the holder shall be liable for and pay the service provider fee
	195	+	17 to the local unit of government. The local unit of government
	196	+	18 shall adopt an ordinance imposing such a fee. The holder's
	197	+	19 liability for the fee shall commence on the first day of the
	198	+	20 calendar month that is at least 30 days after the holder
	199	+	21 receives such ordinance. For any such ordinance adopted on or
	200	+	22 after the effective date of this amendatory Act of the 99th
	201	+	23 General Assembly, the holder's liability shall commence on the
	202	+	24 first day of the calendar month that is at least 30 days after
	203	+	25 the adoption of such ordinance. The ordinance shall be sent by
395	204
396	205
397		-	cable operator shall continue to provide support for
398		-	capital costs for public, education, and government access
399		-	facilities obligations at the rate stated in such
400		-	agreement.
401		-	(Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)
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	214	+	1 mail, postage prepaid, to the address listed on the holder's
	215	+	2 application provided to the local unit of government pursuant
	216	+	3 to item (6) of subsection (b) of Section 21-401 of this Act.
	217	+	4 The fee authorized by this Section shall be 5% of gross
	218	+	5 revenues or the same as the fee paid to the local unit of
	219	+	6 government by any incumbent cable operator providing cable
	220	+	7 service. The payment of the service provider fee shall be due
	221	+	8 on a quarterly basis, 45 days after the close of the calendar
	222	+	9 quarter. If mailed, the fee is considered paid on the date it
	223	+	10 is postmarked. Except as provided in this Article, the local
	224	+	11 unit of government may not demand any additional fees or
	225	+	12 charges from the holder and may not demand the use of any other
	226	+	13 calculation method other than allowed under this Article.
	227	+	14 (c) For purposes of this Article, "gross revenues" means
	228	+	15 all consideration of any kind or nature, including, without
	229	+	16 limitation, cash, credits, property, and in-kind contributions
	230	+	17 received by the holder for the operation of a cable or video
	231	+	18 system to provide cable service or video service within the
	232	+	19 holder's cable service or video service area within the local
	233	+	20 unit of government's jurisdiction.
	234	+	21 (1) Gross revenues shall include the following:
	235	+	22 (i) Recurring charges for cable service or video
	236	+	23 service.
	237	+	24 (ii) Event-based charges for cable service or
	238	+	25 video service, including, but not limited to,
	239	+	26 pay-per-view and video-on-demand charges.
	240	+
	241	+
	242	+
	243	+
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	250	+	1 (iii) Rental of set-top boxes and other cable
	251	+	2 service or video service equipment.
	252	+	3 (iv) Service charges related to the provision of
	253	+	4 cable service or video service, including, but not
	254	+	5 limited to, activation, installation, and repair
	255	+	6 charges.
	256	+	7 (v) Administrative charges related to the
	257	+	8 provision of cable service or video service, including
	258	+	9 but not limited to service order and service
	259	+	10 termination charges.
	260	+	11 (vi) Late payment fees or charges, insufficient
	261	+	12 funds check charges, and other charges assessed to
	262	+	13 recover the costs of collecting delinquent payments.
	263	+	14 (vii) A pro rata portion of all revenue derived by
	264	+	15 the holder or its affiliates pursuant to compensation
	265	+	16 arrangements for advertising or for promotion or
	266	+	17 exhibition of any products or services derived from
	267	+	18 the operation of the holder's network to provide cable
	268	+	19 service or video service within the local unit of
	269	+	20 government's jurisdiction. The allocation shall be
	270	+	21 based on the number of subscribers in the local unit of
	271	+	22 government divided by the total number of subscribers
	272	+	23 in relation to the relevant regional or national
	273	+	24 compensation arrangement.
	274	+	25 (viii) Compensation received by the holder that is
	275	+	26 derived from the operation of the holder's network to
	276	+
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	278	+
	279	+
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	286	+	1 provide cable service or video service with respect to
	287	+	2 commissions that are received by the holder as
	288	+	3 compensation for promotion or exhibition of any
	289	+	4 products or services on the holder's network, such as
	290	+	5 a "home shopping" or similar channel, subject to item
	291	+	6 (ix) of this paragraph (1).
	292	+	7 (ix) In the case of a cable service or video
	293	+	8 service that is bundled or integrated functionally
	294	+	9 with other services, capabilities, or applications,
	295	+	10 the portion of the holder's revenue attributable to
	296	+	11 the other services, capabilities, or applications
	297	+	12 shall be included in gross revenue unless the holder
	298	+	13 can reasonably identify the division or exclusion of
	299	+	14 the revenue from its books and records that are kept in
	300	+	15 the regular course of business.
	301	+	16 (x) The service provider fee permitted by
	302	+	17 subsection (b) of this Section.
	303	+	18 (2) Gross revenues do not include any of the
	304	+	19 following:
	305	+	20 (i) Revenues not actually received, even if
	306	+	21 billed, such as bad debt, subject to item (vi) of
	307	+	22 paragraph (1) of this subsection (c).
	308	+	23 (ii) Refunds, discounts, or other price
	309	+	24 adjustments that reduce the amount of gross revenues
	310	+	25 received by the holder of the State-issued
	311	+	26 authorization to the extent the refund, rebate,
	312	+
	313	+
	314	+
	315	+
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	322	+	1 credit, or discount is attributable to cable service
	323	+	2 or video service.
	324	+	3 (iii) Regardless of whether the services are
	325	+	4 bundled, packaged, or functionally integrated with
	326	+	5 cable service or video service, any revenues received
	327	+	6 from services not classified as cable service or video
	328	+	7 service, including, without limitation, revenue
	329	+	8 received from telecommunications services, information
	330	+	9 services, or the provision of directory or Internet
	331	+	10 advertising, including yellow pages, white pages,
	332	+	11 banner advertisement, and electronic publishing, or
	333	+	12 any other revenues attributed by the holder to
	334	+	13 noncable service or nonvideo service in accordance
	335	+	14 with the holder's books and records and records kept
	336	+	15 in the regular course of business and any applicable
	337	+	16 laws, rules, regulations, standards, or orders.
	338	+	17 (iv) The sale of cable services or video services
	339	+	18 for resale in which the purchaser is required to
	340	+	19 collect the service provider fee from the purchaser's
	341	+	20 subscribers to the extent the purchaser certifies in
	342	+	21 writing that it will resell the service within the
	343	+	22 local unit of government's jurisdiction and pay the
	344	+	23 fee permitted by subsection (b) of this Section with
	345	+	24 respect to the service.
	346	+	25 (v) Any tax or fee of general applicability
	347	+	26 imposed upon the subscribers or the transaction by a
	348	+
	349	+
	350	+
	351	+
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	358	+	1 city, State, federal, or any other governmental entity
	359	+	2 and collected by the holder of the State-issued
	360	+	3 authorization and required to be remitted to the
	361	+	4 taxing entity, including sales and use taxes.
	362	+	5 (vi) Security deposits collected from subscribers.
	363	+	6 (vii) Amounts paid by subscribers to "home
	364	+	7 shopping" or similar vendors for merchandise sold
	365	+	8 through any home shopping channel offered as part of
	366	+	9 the cable service or video service.
	367	+	10 (viii) Any revenues received from video
	368	+	11 programming accessed via a service that enables users
	369	+	12 to access content, information, electronic mail, or
	370	+	13 other services offered over the Internet, including
	371	+	14 Internet streaming content.
	372	+	15 (3) Revenue of an affiliate of a holder shall be
	373	+	16 included in the calculation of gross revenues to the
	374	+	17 extent the treatment of the revenue as revenue of the
	375	+	18 affiliate rather than the holder has the effect of evading
	376	+	19 the payment of the fee permitted by subsection (b) of this
	377	+	20 Section which would otherwise be paid by the cable service
	378	+	21 or video service.
	379	+	22 (d)(1) Except for a holder providing cable service that is
	380	+	23 subject to the fee in subsection (i) of this Section, the
	381	+	24 holder shall pay to the local unit of government or the entity
	382	+	25 designated by that local unit of government to manage public,
	383	+	26 education, and government access, upon request as support for
	384	+
	385	+
	386	+
	387	+
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	394	+	1 public, education, and government access, a fee equal to no
	395	+	2 less than (i) 1% of gross revenues or (ii) if greater, the
	396	+	3 percentage of gross revenues that incumbent cable operators
	397	+	4 pay to the local unit of government or its designee for public,
	398	+	5 education, and government access support in the local unit of
	399	+	6 government's jurisdiction. For purposes of item (ii) of
	400	+	7 paragraph (1) of this subsection (d), the percentage of gross
	401	+	8 revenues that all incumbent cable operators pay shall be equal
	402	+	9 to the annual sum of the payments that incumbent cable
	403	+	10 operators in the service area are obligated to pay by
	404	+	11 franchises and agreements or by contracts with the local
	405	+	12 government designee for public, education and government
	406	+	13 access in effect on January 1, 2007, including the total of any
	407	+	14 lump sum payments required to be made over the term of each
	408	+	15 franchise or agreement divided by the number of years of the
	409	+	16 applicable term, divided by the annual sum of such incumbent
	410	+	17 cable operator's or operators' gross revenues during the
	411	+	18 immediately prior calendar year. The sum of payments includes
	412	+	19 any payments that an incumbent cable operator is required to
	413	+	20 pay pursuant to item (3) of subsection (c) of Section 21-301.
	414	+	21 (2) A local unit of government may require all holders of a
	415	+	22 State-issued authorization and all cable operators franchised
	416	+	23 by that local unit of government on June 30, 2007 (the
	417	+	24 effective date of this Section) in the franchise area to
	418	+	25 provide to the local unit of government, or to the entity
	419	+	26 designated by that local unit of government to manage public,
	420	+
	421	+
	422	+
	423	+
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	430	+	1 education, and government access, information sufficient to
	431	+	2 calculate the public, education, and government access
	432	+	3 equivalent fee and any credits under paragraph (1) of this
	433	+	4 subsection (d).
	434	+	5 (3) The fee shall be due on a quarterly basis and paid 45
	435	+	6 days after the close of the calendar quarter. Each payment
	436	+	7 shall include a statement explaining the basis for the
	437	+	8 calculation of the fee. If mailed, the fee is considered paid
	438	+	9 on the date it is postmarked. The liability of the holder for
	439	+	10 payment of the fee under this subsection shall commence on the
	440	+	11 same date as the payment of the service provider fee pursuant
	441	+	12 to subsection (b) of this Section.
	442	+	13 (e) The holder may identify and collect the amount of the
	443	+	14 service provider fee as a separate line item on the regular
	444	+	15 bill of each subscriber.
	445	+	16 (f) The holder may identify and collect the amount of the
	446	+	17 public, education, and government programming support fee as a
	447	+	18 separate line item on the regular bill of each subscriber.
	448	+	19 (g) All determinations and computations under this Section
	449	+	20 shall be made pursuant to the definition of gross revenues set
	450	+	21 forth in this Section and shall be made pursuant to generally
	451	+	22 accepted accounting principles.
	452	+	23 (h) Nothing contained in this Article shall be construed
	453	+	24 to exempt a holder from any tax that is or may later be imposed
	454	+	25 by the local unit of government, including any tax that is or
	455	+	26 may later be required to be paid by or through the holder with
	456	+
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	459	+
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	466	+	1 respect to cable service or video service. A State-issued
	467	+	2 authorization shall not affect any requirement of the holder
	468	+	3 with respect to payment of the local unit of government's
	469	+	4 simplified municipal telecommunications tax or any other tax
	470	+	5 as it applies to any telephone service provided by the holder.
	471	+	6 A State-issued authorization shall not affect any requirement
	472	+	7 of the holder with respect to payment of the local unit of
	473	+	8 government's 911 or E911 fees, taxes, or charges.
	474	+	9 (i) Except for a municipality having a population of
	475	+	10 2,000,000 or more, the fee imposed under paragraph (1) of
	476	+	11 subsection (d) by a local unit of government against a holder
	477	+	12 who is a cable operator shall be as follows:
	478	+	13 (1) the fee shall be collected and paid only for
	479	+	14 capital costs that are considered lawful under Subchapter
	480	+	15 VI of the federal Communications Act of 1934, as amended,
	481	+	16 and as implemented by the Federal Communications
	482	+	17 Commission;
	483	+	18 (2) the local unit of government shall impose any fee
	484	+	19 by ordinance; and
	485	+	20 (3) the fee may not exceed 1% of gross revenue; if,
	486	+	21 however, on the date that an incumbent cable operator
	487	+	22 files an application under Section 21-401, the incumbent
	488	+	23 cable operator is operating under a franchise agreement
	489	+	24 that imposes a fee for support for capital costs for
	490	+	25 public, education, and government access facilities
	491	+	26 obligations in excess of 1% of gross revenue, then the
	492	+
	493	+
	494	+
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	502	+	1 cable operator shall continue to provide support for
	503	+	2 capital costs for public, education, and government access
	504	+	3 facilities obligations at the rate stated in such
	505	+	4 agreement.
	506	+	5 (Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)
	507	+
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	509	+
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