UTILITIES-CANCELLATION CREDIT
Illinois bill requires cable and video providers to issue a prorated credit when customers disconnect within the first two weeks of a billing month, preventing full-month charges.
Illinois bill requires cable and video providers to issue a prorated credit when customers disconnect within the first two weeks of a billing month, preventing full-month charges.
Status & Source
- Short title: Utilities — Cancellation Credit
- Jurisdiction: Illinois (amends the Illinois Public Utilities Act, 220 ILCS 5/22‑501)
- Sponsor: Rep. Charles Meier
- Introduced: Early Feb. 2025 (filed in February 2025)
- Current status (per provided info): Rule 19(a) / Re‑referred to Rules Committee
Note: the supplied document also contains text from an unrelated Arizona bill labeled HB 2831; this summary addresses the Illinois bill that amends the Public Utilities Act.
Purpose and intent
- To require cable and video service providers to issue customers a prorated credit for billing when the customer requests disconnection during the first two weeks of a monthly billing period. The intent is to protect consumers from being charged for an entire month when they voluntarily end service early in a billing cycle.
Key provisions
- Amend 220 ILCS 5/22‑501 (Customer service and privacy protection) to add an explicit obligation: if a customer requests service disconnection during the first two weeks of a monthly billing period, the cable or video provider must issue the customer a pro rata (prorated) credit.
- The change is embedded in the existing customer service standards and definitions section that already addresses provider obligations (rates disclosure, customer notices, service interruptions, etc.).
- Definitions in the section clarify “cable or video provider” and identify certain providers (e.g., master antenna, satellite, direct broadcast satellite, multipoint distribution services) that are subject to this Article only to the extent permitted by federal law.
Scope and who is affected
- Affects cable and video service providers operating in Illinois (as defined in the statute) and their customers who cancel service.
- Providers that are subject to federal jurisdiction (certain satellite or other non‑cable video providers) remain subject to federal preemption limits.
- Small multi‑unit/landlord arrangements and other narrowly defined exclusions in the statute may not be covered (the statute excludes some landlord‑provided service for small residential buildings).
Implementation and practical effects
- Providers will need to update billing and customer‑service procedures to calculate and issue prorated credits for early disconnection requests made within the first half of a billing month.
- The bill does not specify the exact proration methodology (e.g., daily pro rata based on days remaining, rounding rules, treatment of taxes/fees), which could lead to administration or dispute issues unless clarified by regulation or later guidance.
- Likely impacts on provider revenue and customer refunds will be modest per individual account but may require systems and training changes.
Procedural/timeline notes
- The bill text amends Section 22‑501 of the Public Utilities Act. As of the provided status, it has been re‑referred to the Rules Committee (Rule 19(a)), which is typically a procedural step in legislative consideration.
Limitations / open questions
- Calculation method for the prorated credit is not defined in the introduced text.
- Interaction with promotions, minimum‑term contracts, early termination fees, or bundled service discounts is not explicitly addressed.
- Federal preemption may limit applicability for certain providers (e.g., direct broadcast satellite).
If you want, I can draft suggested regulatory language or an amendment that specifies the proration formula and addresses interactions with promotional pricing, taxes, and early‑termination fees.
Compiled from official sources — confirm details with the bill’s official record.
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