093_HB2423

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 1        AN ACT concerning telecommunications.

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

 4        Section  5.  The  Public  Utilities  Act  is  amended  by
 5    changing Sections  13-401,  13-404,  and  13-405  and  adding
 6    Sections 13-221 and 13-408 as follows:

 7        (220 ILCS 5/13-221 new)
 8        (Section scheduled to be repealed on July 1, 2005)
 9        Sec.  13-221.  Retail  local  exchange telecommunications
10    service.  "Retail local exchange telecommunications  service"
11    means   "local   exchange  telecommunications  services",  as
12    defined in Section 13-204, sold to an end user. "Retail local
13    exchange telecommunications service" does not include a local
14    exchange   telecommunications   service   provided    by    a
15    telecommunications  carrier  to a telecommunications carrier,
16    including itself, as a component of, or for the provision of,
17    local exchange telecommunications service. A "business retail
18    local exchange telecommunications service" is a retail  local
19    exchange  telecommunications  service  provided to a business
20    end   user.   A   "residential    retail    local    exchange
21    telecommunications   service"  is  a  retail  local  exchange
22    telecommunications service  provided  to  a  residential  end
23    user.

24        (220 ILCS 5/13-401) (from Ch. 111 2/3, par. 13-401)
25        (Section scheduled to be repealed on July 1, 2005)
26        Sec. 13-401.  Certificate of Service Authority.
27        (a)  No   telecommunications  carrier  not  possessing  a
28    certificate  of   public   convenience   and   necessity   or
29    certificate of authority from the Commission at the time this
30    Article  goes into effect shall transact any business in this
 
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 1    State until it shall have obtained a certificate  of  service
 2    authority  from  the Commission pursuant to the provisions of
 3    this Article.
 4        No telecommunications carrier offering or  providing,  or
 5    seeking    to    offer    or   provide,   any   interexchange
 6    telecommunications service shall do so until it  has  applied
 7    for  and  received  a  Certificate  of  Interexchange Service
 8    Authority pursuant to the provisions of  Section  13-403.  No
 9    telecommunications  carrier offering or providing, or seeking
10    to offer or provide, any  local  exchange  telecommunications
11    service  shall  do so until it has applied for and received a
12    Certificate of Exchange Service  Authority  pursuant  to  the
13    provisions of Section 13-405.
14        Notwithstanding  Sections 13-403, 13-404, and 13-405, the
15    Commission shall approve a cellular radio application  for  a
16    Certificate  of  Service  Authority  without a hearing upon a
17    showing  by  the  cellular   applicant   that   the   Federal
18    Communications  Commission  has  issued  to it a construction
19    permit or an operating license  to  construct  or  operate  a
20    cellular  radio  system in the area as defined by the Federal
21    Communications Commission, or portion of the area, for  which
22    the carrier seeks a Certificate of Service Authority.
23        No   Certificate  of  Service  Authority  issued  by  the
24    Commission shall be  construed  as  granting  a  monopoly  or
25    exclusive privilege, immunity or franchise. The issuance of a
26    Certificate  of  Service  Authority to any telecommunications
27    carrier  shall  not  preclude  the  Commission  from  issuing
28    additional  Certificates  of  Service  Authority   to   other
29    telecommunications  carriers providing the same or equivalent
30    service or serving the same geographical area or customers as
31    any  previously  certified  carrier,  except  to  the  extent
32    otherwise provided by Sections 13-403 and 13-405.
33        Any  certificate  of  public  convenience  and  necessity
34    granted by the Commission  to  a  telecommunications  carrier
 
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 1    prior  to  the effective date of this Article shall remain in
 2    full force and effect, and such carriers need not apply for a
 3    Certificate  of  Service  Authority  in  order  to   continue
 4    offering  or  providing  service  to the extent authorized in
 5    such certificate of public  convenience  and  necessity.  Any
 6    such  carrier,  however,  prior to substantially altering the
 7    nature or scope of services provided under a  certificate  of
 8    public  convenience  and  necessity,  or  adding or expanding
 9    services beyond the authority contained in such  certificate,
10    must  apply  for  a Certificate of Service Authority for such
11    alterations or additions pursuant to the provisions  of  this
12    Article.
13        The  Commission  shall review and modify the terms of any
14    certificate of public convenience and necessity issued  to  a
15    telecommunications  carrier  prior  to  the effective date of
16    this Article in order  to  ensure  its  conformity  with  the
17    requirements and policies of this Article. Any Certificate of
18    Service   Authority   may  be  altered  or  modified  by  the
19    Commission, after notice and hearing, upon its own motion  or
20    upon  application  of  the person or company affected. Unless
21    exercised within a period of  two  years  from  the  issuance
22    thereof,  authority  conferred  by  a  Certificate of Service
23    Authority shall be null and void.
24        (b)  The Commission may  issue  a  temporary  Certificate
25    which  shall  remain in force not to exceed one year in cases
26    of emergency, to assure maintenance of adequate service or to
27    serve  particular  customers,  without  notice  and  hearing,
28    pending  the  determination   of   an   application   for   a
29    Certificate,   and   may   by   regulation  exempt  from  the
30    requirements of this Section temporary acts or operations for
31    which the issuance of a certificate is not necessary  in  the
32    public interest and which will not be required therefor.
33        (c)  Notwithstanding   any  of  the  provisions  in  this
34    Section and Sections 13-402, 13-403, 13-404, and 13-405,  the
 
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 1    Commission  shall initiate an investigation and order to show
 2    cause to determine  whether  to  revoke  all  or  part  of  a
 3    telecommunications  carrier's certificate upon the occurrence
 4    of any of the following events: (i) an event  (a)  indicating
 5    that the telecommunications carrier's financial condition has
 6    been or may be impaired or (b) causing the telecommunications
 7    carrier's  financial  condition to deteriorate including, but
 8    not limited to, the voluntary filing of a bankruptcy petition
 9    by, or  the  involuntary  filing  of  a  bankruptcy  petition
10    against,  the  telecommunications  carrier  or  its parent or
11    indirect parent; (ii) a  felony  conviction  under  state  or
12    federal  law  of the telecommunications carrier or its parent
13    or indirect parent; (iii) a felony conviction under state  or
14    federal  law  of an officer of the telecommunications carrier
15    or  its  parent  or  indirect  parent  that  relates  to  the
16    provision of telecommunications services; or (iv) failure  to
17    comply with the corporate reporting requirements set forth in
18    Sections  13-404,  13-405, and 13-408. The telecommunications
19    carrier shall provide written notice to the Commission within
20    14 days after an  event  identified  in  subdivision  (c)(i),
21    (c)(ii),  or (c)(iii). Should the affected telecommunications
22    carrier fail to provide such notice within such time  period,
23    any   other   telecommunications  carrier  certified  by  the
24    Commission  to  provide  service  may  provide  such  notice.
25    Promptly upon receiving notice, the Commission shall initiate
26    its investigation by providing written notice thereof to  all
27    other   telecommunications   carriers  certified  to  provide
28    service by the Commission. The Commission shall conclude  its
29    investigation  within  90 days after the occurrence of any of
30    the events listed in subdivision (c)(i),  (c)(ii),  (c)(iii),
31    or (c)(iv).
32        In  its  investigation,  the  Commission  shall  consider
33    whether  the affected telecommunications carrier continues to
34    possess  sufficient  technical,  financial,  and   managerial
 
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 1    resources    and    abilities    to   continue   to   provide
 2    telecommunications  services  in  the  State   of   Illinois.
 3    Relevant   to  the  determination  of  whether  the  affected
 4    telecommunications carrier continues  to  possess  sufficient
 5    financial  resources  and abilities to provide service in the
 6    State of Illinois is its ability to meet on  a  timely  basis
 7    any   of   its   ongoing   obligations,   if  any,  to  other
 8    telecommunications carriers. If at the conclusion  and  as  a
 9    result of its investigation, the Commission concludes that as
10    a  result  of  the  event or events in question, the affected
11    telecommunications carrier  no  longer  possesses  sufficient
12    technical, financial, and managerial resources and ability to
13    continue  to provide telecommunications services in the State
14    of  Illinois,  the  Commission  may   revoke   the   affected
15    telecommunications  carrier's certificate in whole or in part
16    or  impose  conditions  and  restrictions  on  its  continued
17    exercise consistent with the  public  interest,  convenience,
18    and necessity.
19    (Source: P.A. 87-856.)

20        (220 ILCS 5/13-404) (from Ch. 111 2/3, par. 13-404)
21        (Section scheduled to be repealed on July 1, 2005)
22        Sec.  13-404.  Any telecommunications carrier offering or
23    providing  the   resale   of   either   local   exchange   or
24    interexchange  telecommunications service must first obtain a
25    Certificate  of  Service  Authority.  The  Commission   shall
26    approve  an  application  for a Certificate for the resale of
27    local exchange or  interexchange  telecommunications  service
28    upon  a  showing  by  the  applicant,  and  a  finding by the
29    Commission, after notice  and  hearing,  that  the  applicant
30    possesses  sufficient  technical,  financial  and  managerial
31    resources   and   abilities   to   provide   the   resale  of
32    telecommunications service.
33        The  Commission  shall  not  grant  a  waiver  from   the
 
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 1    requirements    of   83   Ill.   Adm.   Code   710   to   any
 2    telecommunications carrier  granted  a  certificate  for  the
 3    resale  of local exchange service.      All telecommunication
 4    carriers that provide local exchange service  and  that  have
 5    been  granted  a waiver from 83 Ill. Adm. Code Part 710 prior
 6    to the effective date of this  amendatory  Act  of  the  93rd
 7    General Assembly shall be subject to the requirements of this
 8    Act as of January 1, 2004.
 9    (Source: P.A. 84-1063.)

10        (220 ILCS 5/13-405) (from Ch. 111 2/3, par. 13-405)
11        (Section scheduled to be repealed on July 1, 2005)
12        Sec. 13-405.  Local exchange service authority; approval.
13    The Commission shall approve an application for a Certificate
14    of  Exchange  Service  Authority  only  upon a showing by the
15    applicant, and a finding by the Commission, after notice  and
16    hearing,  that  the applicant possesses sufficient technical,
17    financial, and managerial resources and abilities to  provide
18    local exchange telecommunications service.
19        The   Commission  shall  not  grant  a  waiver  from  the
20    requirements   of   83   Ill.   Adm.   Code   710   to    any
21    telecommunications  carrier  granted  such a certificate. All
22    telecommunication  carriers  that  provide   local   exchange
23    service and that have been granted a waiver from 83 Ill. Adm.
24    Code  Part 710 prior to the effective date of this amendatory
25    Act of the 93rd General Assembly  shall  be  subject  to  the
26    requirements of this Act as of January 1, 2004.
27    (Source: P.A. 90-185, eff. 7-23-97.)

28        (220 ILCS 5/13-408 new)
29        (Section scheduled to be repealed on July 1, 2005)
30        Sec. 13-408.  Annual Reports.  Notwithstanding any of the
31    provisions in Section 5-109, the Commission shall require all
32    telecommunications  carriers  providing retail local exchange
 
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 1    telecommunications service to submit annual  reports  in  the
 2    same form and level of detail as any incumbent local exchange
 3    carrier,   not   including   its   parent,   affiliates,   or
 4    subsidiaries.

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.