TELECOM STRUCTURAL SEPARATION

Amends the Public Utilities Act. Requires an incumbent local exchange carrier to structurally separate its retail operations from its wholesale operations in accordance with the requirements of the Commerce Commission. Provides that an incumbent local exchange carrier is the telecommunications carrier that on the effective date of the federal Telecommunications Act of 1996 provided local exchange services to a majority of the access lines in Illinois. Regulates transactions between retail affiliates and wholesale affiliates. Requires the Commission to begin proceedings to implement structural separation by August 1, 2004 and to conclude the proceedings by February 1, 2005. Requires the Commission to report to the General Assembly by January 14, 2005 on the status of structural separation. Requires telecommunications carriers that provide both competitive and noncompetitive services to make detailed network infrastructure reports to the Commerce Commission each month. Requires the Commission to perform an annual network infrastructure audit on all carriers required to file network infrastructure reports. Provides for the Commission to report its findings regarding network infrastructure to the General Assembly by January 15 of each year. Provides that incumbent local exchange carriers may not declare any dividend or distribution if the carrier is in violation of a Commission order or is subject to a Commission finding of failure to meet structural separation obligations. Effective July 1, 2004.