AB889: Bill Text

LRB-4955/3

MDK/MGG/RNK/RPN:jld/cmh/hmh/cjs:kjf

2001 - 2002 LEGISLATURE

2001 Assembly BILL 889

March 4, 2002 - Introduced by Representatives Montgomery and Pettis. Referred to Committee on Information Policy and Technology.

AB889,2,7 An Act to renumber and amend 100.207 (1), 196.202 (2) and 196.50 (4); to amend 15.795 (title), 93.14 (3), 93.15 (1), 93.15 (2), 196.195 (12) (a), 196.196 (1) (g) 1. (intro.), 196.499 (1) (b), 196.50 (4) (title), 198.12 (6) and 198.22 (6); to repeal and recreate 196.202 (2) (intro.); and to create 15.795 (2), 20.155 (3) (title), 20.155 (3) (g), 20.155 (3) (h), 20.155 (3) (i), 20.155 (3) (k), 93.01 (1r), 93.14 (1m), 100.207 (1) (a), 100.207 (1) (c), 100.207 (3g), 100.207 (3m), 100.207 (5g), 100.207 (5m), 100.207 (6) (br), 146.70 (3m), 196.02 (13), 196.195 (12) (f), 196.196 (1) (em), 196.196 (5) (f) 1. g., 196.196 (5) (f) 4., 196.202 (2) (b), 196.202 (6), 196.50 (4) (a) and 196.50 (4) (c) of the statutes; relating to: creating a wireless 911 board; imposing a surcharge on wireless telephone customers; making grants for wireless 911 emergency telephone service; allowing adjustments in telecommunications utility rates for expenses in supporting wireless 911 emergency telephone service; requiring wireless number portability; jurisdictional and enforcement authority of the department of agriculture, trade and consumer protection; construction and ownership of telecommunications facilities by local units of government; services provided by telecommunications providers; authority of the public service commission regarding area codes and telephone numbers; allowing for adjustments in incentive-regulated telecommunication utility rates; requesting the joint legislative council to study retail and wholesale telecommunications services; granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

This bill creates a wireless 911 board that makes grants for providing 911 wireless emergency telephone service. The grants are funded by a surcharge paid by wireless customers. These provisions are discussed below. The bill also does all of the following with respect to the regulation of telecommunications providers, which are discussed below: 1) restricts ownership or construction of telecommunications facilities by local units of government; 2) restricts telecommunications providers in initiating service and applying laws of other states to contracts; 3) restricts telecommunications providers in billing other services; 4) requires wireless telephone number portability; and 5) makes various other changes.

911 wireless emergency telephone service

The bill creates a wireless 911 board (board), consisting of the following 12 members: 1) one representative appointed by the speaker of the assembly; 2) one representative appointed by the assembly minority leader; 3) one senator appointed by the president of the senate; 4) one senator appointed by the senate minority leader; 5) four members who represent wireless telecommunications providers and who are appointed by the governor; and 6) four members who represent public agencies that operate emergency telephone service systems and who are appointed by the governor.

The bill requires wireless telecommunications providers to impose a 50-cent surcharge on customer bills and pay the surcharge to the board, except that in fiscal year 2002-03, a wireless telecommunications provider may retain 2% of the surcharge for reimbursing the cost of collecting the surcharge. The surcharge must be imposed on the first bills issued after July 1, 2002. The board may promulgate rules to increase or decrease the surcharge, but the board may increase the surcharge only once per year. In addition, any increase must be uniform statewide and may not exceed 10 cents, and the surcharge may never exceed $1.

The board must use the surcharge to make grants to wireless telecommunications providers and public agencies that operate emergency telephone systems. A wireless telecommunications provider is eligible for a grant if it is subject to orders of the federal communications commission (FCC) regarding wireless 911 emergency telephone service. The grants must be used for specified expenses incurred by wireless telecommunications providers to comply with the FCC's orders. A public agency is eligible for a grant only if the board determines that the agency is providing, or has begun to implement, 911 emergency services for wireless users and the agency has complied with the FCC's orders. A grant to a public agency must be used for specified expenses related to the operation of an emergency telephone system. In addition, the total amount in grants that a public agency may receive may not exceed 50% of the agency's eligible expenses.

The board may use no more than 2.5% of the surcharges collected in a fiscal year for the board's general program operations. Half of the remaining amount must be placed in an account for grants to wireless telecommunications providers, and the other half is placed in an account for grants to public agencies. However, if there is insufficient money for a grant to a wireless telecommunications provider, the board may, under certain circumstances, make a grant to a wireless telecommunications provider from the account for public agencies. If the board makes such a grant, the board must, as soon as practicable, transfer an amount equal to the grant to the public agency account from the wireless telecommunications provider account.

The bill creates other requirements for the grant program, including the following:

1. The bill allows the board to make grants in installments, if there are insufficient funds in a surcharge account.

2. The bill allows the board to withhold from public inspection any information the board receives that would aid the competitor of a wireless provider.

3. The bill requires the board to contract for independent audits of grant applications. The board must also establish procedures that prohibit members of the board from having access to confidential business information submitted by wireless telecommunications providers.

4. The bill prohibits cities, villages, towns, counties, and other state agencies from requiring wireless telecommunications providers to collect or pay a surcharge or fee related to wireless emergency telephone service.

5. The bill requires the board to submit an annual report to the legislature regarding the grant program.

6. The bill's requirements regarding the surcharge and grant program do not apply after the first day of the 60th month beginning after the bill's effective date.

Finally, the bill allows a price-regulated telecommunications utility, subject to approval of the Public Service Commission (PSC), to adjust its rates for the purpose of recovering the utility's expenses incurred exclusively in supporting the provision of 911 emergency services for wireless telephone users under the FCC's orders.

Local government construction and ownership of telecommunications facilities

The bill prohibits local units of government from owning or constructing telecommunications facilities that are used to provide service to the public, unless the local unit of government leases, on a nondiscriminatory basis, the facility to a telecommunications provider that is not a local unit of government. In addition, the electorate of the local unit of government must approve the lease in a referendum and the local unit of government must submit a financing plan and budget to the PSC. Also, under certain circumstances, the bill allows the PSC to promulgate additional requirements that must be satisfied. For a local unit of government that owns or has obtained financing for a telecommunications facility on the effective date of the bill, the prohibition does not apply until five years after the effective date. In addition, the bill's prohibition does not apply to certain telecommunications facilities that are leased to other state and local governmental entities for the purpose of sharing facilities or intergovernmental cooperation.

Restrictions on telecommunications providers in initiating service and restrictions on contracts

This bill provides that a telecommunications provider may not provide a telecommunications service that is not always provided during each billing period to a person unless the telecommunications provider reasonably believes that the person knowingly consented to receive the service. The telecommunications provider must also confirm, before providing the telecommunications service, that the person knowingly consented to receive the service. The bill also requires that the telecommunications provider inform the person that he or she may, before the service is activated, withdraw consent to receive the service and requires that the telecommunications provider inform the person of the manner by which that consent may be withdrawn.

This bill also prohibits a telecommunications provider from placing in a contract to provide telecommunications services a clause that provides that the laws of any state other than this state apply to the parties or terms of the contract or to any right or remedy under the contract.

Restrictions on telecommunications providers in billing other services

This bill provides that a telecommunications provider may not bill a customer for goods or services that are not telecommunications services provided by that telecommunications provider unless the telecommunications provider reasonably believes that the customer knowingly consents to receive the bill and the provider confirms that consent with the customer. If a customer consents, the bill requires that the telecommunications provider distinguish on the bill between the billing for telecommunication services and the billing for the other goods or services. Finally, if requested to do so by a customer who has consented to being billed for the other goods or services, the telecommunications provider shall provide a detailed itemized listing of the charges for those goods or services.

Wireless number portability

Under current federal law, with certain exceptions, telecommunications providers are required to provide number portability in the 100 largest metropolitan statistical areas (MSAs) of the country. "Number portability" is defined as the ability of a customer to retain existing telephone numbers at the same location when switching telecommunications providers. Milwaukee is the only area in Wisconsin that is in the 100 largest MSAs. Current federal law also requires, with certain exceptions, a telecommunications provider to provide number portability in an area outside the 100 largest MSAs within six months after another telecommunications provider requests number portability.

One of the exceptions to the above requirements applies to wireless telecommunications providers, which are referred to under federal and state law as commercial mobile radio service providers. Under current federal law, wireless telecommunications providers must begin providing number portability in the 100 largest MSAs by November 24, 2002. After that date, a wireless telecommunications provider must provide number portability in an area outside the 100 largest MSAs within the same six-month deadline described above.

Under this bill, a wireless telecommunications provider must begin providing number portability in all areas of the state on November 24, 2002. The duty applies only if a customer of a wireless telecommunications provider switches to another telecommunications provider in the same area code. In addition, number portability must be provided in a manner that does not impair the quality or reliability of telecommunications services.

Other changes

The bill makes other changes to the regulation of telecommunications providers, including all of the following:

1. The bill provides that, to the extent authorized under federal law, the PSC has jurisdiction to supervise and regulate telephone numbers and area codes used by any telecommunications provider.

2. The bill allows the PSC to require telecommunications providers and providers of cable television service to provide information that the PSC determines is necessary for the PSC to prepare a biennial report regarding the status of investments in advanced telecommunications infrastructure that the PSC must submit to the joint committee on information policy and technology under current law.

3. The bill allows the PSC to approve basic local exchange rates of a telecommunications utility subject to incentive regulation that match a competitor's rates, even if the result is that the utility's rates do not exceed its total service long-run incremental costs. Under current law, a telecommunications utility's rates must exceed such costs, unless other exceptions apply.

4. The bill request the joint legislative council to study the appropriate level of regulation of retail and wholesale telecommunications services, the quality of such services, and related enforcement issues, with a focus on making the transition toward deregulated markets for such services. If the council undertakes such a study, the bill requires the council to submit a report to the 2003 legislature when it convenes.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB889, s. 1 Section 1. 15.795 (title) of the statutes is amended to read:

AB889,6,1 15.795 (title) Same; attached board and office.

AB889, s. 2 Section 2. 15.795 (2) of the statutes is created to read:

AB889,6,5 15.795 (2) Wireless 911 board. (a) There is created a wireless 911 board attached to the public service commission under s. 15.03 consisting of the following members:

AB889,6,7 1. One representative to the assembly, appointed by the speaker of the assembly.

AB889,6,9 2. One representative to the assembly, appointed by the assembly minority leader.

AB889,6,10 3. One senator, appointed by the president of the senate.

AB889,6,11 4. One senator, appointed by the senate minority leader.

AB889,6,13 5. Four persons who represent the interests of commercial mobile radio service providers, as defined in s. 196.01 (2g), appointed by the governor.