Bill Amendment: IL HB3702 | 2021-2022 | 102nd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: EMERGENCY TELEPHONE SYSTEM

Status: 2021-11-29 - Rule 19(b) / Re-referred to Rules Committee [HB3702 Detail]

Download: Illinois-2021-HB3702-House_Amendment_002.html

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Rep. Kathleen Willis

Filed: 5/10/2021

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AMENDMENT TO HOUSE BILL 3702
AMENDMENT NO. ______. Amend House Bill 3702 on page 1,
line 6, by inserting "15.3, 15.3a," after "15.2a,"; and
on page 19, line 15, by inserting ", except in a municipality
with a population over 500,000," after "Illinois"; and
on page 19, line 16, by inserting after the period the
following:
"A municipality with a population over 500,000 shall establish
a statewide Next Generation 9-1-1 network by December 31,
2023."; and
on page 31, by inserting immediately below line 1 the
following:
"(50 ILCS 750/15.3) (from Ch. 134, par. 45.3)
(Section scheduled to be repealed on December 31, 2021)

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Sec. 15.3. Local non-wireless surcharge.
(a) Except as provided in subsection (l) of this Section,
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 defined under Section 2 of this Act, for
both regular service and advanced service provisioned
trunk lines;
(ii) in a municipality with a population, prior to

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March 1, 2010, of 500,000 or more, 5 surcharges per
network connection, as defined under Section 2 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 defined under Section 2 of this Act, for
regular service provisioned trunk lines, and 12 surcharges
per network connection, as defined under Section 2 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

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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

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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

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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.

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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

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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, on or after the effective date of this amendatory Act
of the 98th General Assembly and until December 31, 2017, a
municipality with a population of 500,000 or more shall not
impose a monthly surcharge per network connection in excess of
the highest monthly surcharge imposed as of January 1, 2014 by
any county or municipality under subsection (c) of this
Section. Beginning January 1, 2018 and until December 31, 2023
2021, a municipality with a population over 500,000 may not
impose a monthly surcharge in excess of $5.00 per network
connection. On or after January 1, 2024 2022, 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

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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. 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. The pledge and
agreement set forth in this Section survive the termination of
the surcharge under subsection (l) by virtue of the
replacement of the surcharge monies guaranteed under Section
20; the State of Illinois pledges and agrees that it will not
limit or alter the rights vested in municipalities and
counties to the surcharge replacement funds guaranteed under
Section 20 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.

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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.
(l) Any surcharge imposed pursuant to this Section by a
county or municipality, other than a municipality with a
population in excess of 500,000, shall cease to be imposed on
January 1, 2016.
(Source: P.A. 100-20, eff. 7-1-17; 101-639, eff. 6-12-20.)
(50 ILCS 750/15.3a)
(Section scheduled to be repealed on December 31, 2021)
Sec. 15.3a. Local wireless surcharge.
(a) Notwithstanding any other provision of this Act, a
unit of local government or emergency telephone system board
providing wireless 9-1-1 service and imposing and collecting a
wireless carrier surcharge prior to July 1, 1998 may continue
its practices of imposing and collecting its wireless carrier
surcharge, but, except as provided in subsection (b) of this
Section, in no event shall that monthly surcharge exceed $2.50
per commercial mobile radio service (CMRS) connection or
in-service telephone number billed on a monthly basis. For
mobile telecommunications services provided on and after
August 1, 2002, any surcharge imposed 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.

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

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events.
(Source: P.A. 100-20, eff. 7-1-17; 101-639, eff. 6-12-20.)";
and
on page 66, line 20, by replacing "bi-annually" with
"biennially"; and
by replacing line 24 on page 66 through line 8 on page 72 with
the following:
"Section 20. The Prepaid Wireless 9-1-1 Surcharge Act is
amended by changing Section 15 as follows:
(50 ILCS 753/15)
Sec. 15. Prepaid wireless 9-1-1 surcharge.
(a) Until September 30, 2015, there is hereby imposed on
consumers a prepaid wireless 9-1-1 surcharge of 1.5% per
retail transaction. Beginning October 1, 2015, the prepaid
wireless 9-1-1 surcharge shall be 3% 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.
(a-5) On or after the effective date of this amendatory
Act of the 98th General Assembly and until December 31, 2023
2020, a home rule municipality having a population in excess
of 500,000 on the effective date of this amendatory Act may

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impose a prepaid wireless 9-1-1 surcharge not to exceed 9% per
retail transaction sourced to that jurisdiction and collected
and remitted in accordance with the provisions of subsection
(b-5) of this Section. On or after January 1, 2021, 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

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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

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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

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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 have an active
tax exemption identification number issued by the Department
under Section 1g of 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) (Blank).
(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

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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.
(g) The prepaid wireless 9-1-1 surcharge imposed under
subsections (a) and (a-5) of this Section is not imposed on the
provider or the consumer for wireless Lifeline service where
the consumer does not pay the provider for the service. Where

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the consumer purchases from the provider optional minutes,
texts, or other services in addition to the federally funded
Lifeline benefit, a consumer must pay the prepaid wireless
9-1-1 surcharge, and it must be collected by the seller
according to subsection (b-5).
(Source: P.A. 99-6, eff. 6-29-15; 100-20, eff. 7-1-17.)".