1997 - 1998 LEGISLATURE
November 19, 1997 - Introduced by Joint committee on Information Policy.
Referred to Joint committee on Information Policy.
AB615,1,8 1An Act to renumber and amend 196.219 (1) and 196.219 (4m); to amend
2196.219 (2) (a), 196.219 (2) (d), 196.219 (2m) (a), 196.219 (3) (intro.) and (a),
3196.219 (3) (e), 196.219 (3) (em), 196.219 (3) (f), 196.219 (3) (h), 196.219 (3) (m),
4196.219 (4), 196.219 (5) and 196.499 (1); and to create 196.199, 196.219 (1) (b),
5196.219 (4m) (b) and 196.43 (3) of the statutes; relating to: enforcement of
6interconnection agreements by the public service commission, protections for
7users of certain telecommunications services, granting rule-making authority
8and providing a penalty.
Analysis by the Legislative Reference Bureau
Enforcement of interconnection agreements
Under the Federal Telecommunications Act of 1996, certain persons that are
regulated as telecommunications utilities under state law and that provide local
telephone exchange services must enter into agreements with other providers of
telecommunications services in which the other providers are allowed to connect
their telecommunications networks to the telecommunications utilities' networks.
The public service commission (PSC) is required to approve such agreements, which
are called "interconnection agreements", by determining whether the agreements
satisfy certain federal requirements.

This bill allows the PSC to promulgate rules that require an interconnection
agreement to include alternate dispute resolution procedures. The bill also allows
a party to an interconnection agreement that is approved by the PSC to request a
declaratory ruling from the PSC regarding the meaning of any provision of the
agreement.
In addition, the bill establishes procedures for enforcing interconnection
agreements that are approved by the PSC. Under the bill, a party to such an
agreement may file a complaint with the PSC alleging that another party has failed
to comply with the agreement. Before such a party may file a complaint, the party
must first give the other party a maximum of 5 business days to resolve the alleged
failure to comply. If a person who is not a party to an interconnection agreement files
a complaint with the PSC that the PSC determines may involve a failure to comply
with an interconnection agreement, the PSC must notify the parties to the
agreement about the alleged failure to comply. If the parties resolve the alleged
failure to comply to the satisfaction of the PSC within a maximum of 5 business days,
the PSC must dismiss the complaint with respect to the issues that involve the
alleged failure to comply.
After investigating a complaint, the PSC may, after notice and an opportunity
for hearing, order a party to comply with the interconnection agreement. The PSC
must issue such an order within 120 days after a complaint is filed, unless the parties
to the proceeding consent to a longer time period that is approved by the PSC. Before
issuing such an order, the PSC may issue an interim order that requires a party to
the agreement to take action or refrain from taking action that is related to
complying with the agreement. A person who seeks an interim order must satisfy
certain requirements, including showing, if the person is a party to the
interconnection agreement, that the alleged failure to comply with the agreement
has a substantial adverse impact on the party's ability to provide
telecommunications services to its customers. A party against whom an interim
order is issued may request the PSC to review the order. If the PSC determines, upon
review, that a person who sought an interim order was not entitled to the order, the
PSC may order that person to pay damages that were sustained because of the
interim order.
The bill also allows a court to impose forfeitures against a party that fails to
comply with an interconnection agreement. The amount of a forfeiture depends on
certain factors, including whether the failure to comply is wilful or has resulted in
any economic loss to an injured party or any economic gain to the party who failed
to comply. In addition, the PSC may directly impose a forfeiture against a party to
an interconnection agreement who files a complaint or answer to a complaint that
is frivolous, is intended to delay the implementation of an interconnection agreement
or violates certain other prohibitions.
Protections for users of telecommunications services
Under current law, certain persons that are regulated as telecommunications
utilities are required to provide certain protections to persons, including other
telecommunications providers, who use their services, products or facilities. Such
telecommunications utilities may not engage in certain prohibited practices related

to connecting their telecommunications networks to the networks of other
telecommunications providers and to providing telecommunications services to their
customers. If the PSC finds that a telecommunications utility has violated these
requirements, a person who is injured by the violation may bring an action in court
to recover damages or obtain injunctive relief.
Under this bill, telecommunications providers who offer local exchange
telecommunications services must provide the same protections and are subject to
the same prohibitions that apply to telecommunications utilities. In addition, a
person who is injured by a telecommunications utility or provider who violates these
requirements may bring an action in court for damages or injunctive relief without
a finding of violation by the PSC. Also, the bill allows the attorney general, upon the
request of the PSC, to bring an action in court to require a telecommunications utility
or provider to compensate a person for the pecuniary losses suffered because of a
violation of these requirements.
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:
AB615, s. 1 1Section 1. 196.199 of the statutes is created to read:
AB615,3,4 2196.199 Interconnection agreements. (1) Definition. In this section,
3"interconnection agreement" means an interconnection agreement that is subject to
4approval by the commission under 47 USC 252 (e).
AB615,3,7 5(2) Commission's powers. (a) The commission has jurisdiction to approve and
6enforce interconnection agreements and may do all things necessary and convenient
7to its jurisdiction.
AB615,3,98 (b) The commission may promulgate rules that require an interconnection
9agreement to include alternate dispute resolution provisions.
AB615,4,7 10(3) Enforcement. (a) Upon the filing of a complaint under this paragraph by
11a party to an interconnection agreement or of a complaint under any other provision
12of this chapter by any other person that the commission determines may involve a
13failure to comply with an interconnection agreement, the commission may

1investigate whether a party to the agreement has failed to comply with the
2agreement. If, after an investigation, the commission finds that a party has failed
3to comply with an interconnection agreement, the commission shall, after notice and
4opportunity for a hearing, issue an order requiring compliance with the
5interconnection agreement. The commission shall issue the order, subject to par. (e),
6no later than 120 days after the filing of the complaint, unless all of the parties to the
7proceeding consent to a longer time period that is approved by the commission.
AB615,4,158 (b) 1. Before initiating an investigation under par. (a) based on a complaint filed
9by a person that is not a party to an interconnection agreement, the commission shall
10notify the parties to the agreement about the alleged failure to comply with the
11agreement. If the alleged failure to comply is resolved to the satisfaction of the
12commission within 5 business days after the parties receive notice under this
13subdivision, or within a shorter period of time specified by the commission in the
14notice, the commission shall dismiss the complaint with respect to the issues that
15involve the alleged failure to comply.
AB615,4,2216 2. No party to an interconnection agreement may file a complaint under par.
17(a) unless the party has first notified the party who is the subject of the complaint
18about the alleged failure to comply and given that party an opportunity to resolve the
19alleged failure to comply to the satisfaction of the complaining party within 5
20business days, or a shorter period of time approved by the commission, after
21receiving the notice. The commission shall promulgate rules establishing standards
22and procedures for approving a period of time shorter than 5 business days.
AB615,5,323 (c) No party to an interconnection agreement may file a complaint under par.
24(a) or file an answer to such a complaint unless there is a nonfrivolous basis for doing
25so. A party to an interconnection agreement may not file a complaint under par. (a)

1or file an answer to such a complaint unless, to the best of the party's knowledge,
2information and belief, formed after a reasonable inquiry, all of the following
3conditions are satisfied:
AB615,5,44 1. The party's complaint or answer is reasonably supported by applicable law.
AB615,5,85 2. The allegations and other factual contentions in the party's complaint or
6answer have evidentiary support or, if specifically so identified in the party's
7complaint or answer, are likely to have evidentiary support after reasonable
8opportunity for further investigation or discovery.
AB615,5,109 3. The party's complaint is not intended to harass a party to an interconnection
10agreement.
AB615,5,1311 4. The party's complaint or answer is not intended to cause unnecessary delay
12in implementing an interconnection agreement or create a needless increase in the
13cost of litigation.
AB615,5,1714 (d) If, at any time during a proceeding on a complaint specified in par. (a), the
15commission determines, after notice and reasonable opportunity to be heard, that a
16party to an interconnection agreement has filed a complaint or answer in violation
17of par. (c), the commission may do all of the following:
AB615,5,2018 1. Order the party to pay to any party to the interconnection agreement the
19amount of reasonable expenses incurred by that party because of the filing of the
20complaint or answer, including reasonable attorney fees.
AB615,6,521 2. Directly assess a forfeiture against the party of not less than $25 nor more
22than $5,000. A party against whom the commission assess a forfeiture under this
23subdivision shall pay the forfeiture to the commission within 10 days after receipt
24of notice of the assessment or, if the party petitions for judicial review under ch. 227,
25within 10 days after receipt of the final decision after exhaustion of judicial review.

1The commission shall remit all forfeitures paid under this subdivision to the state
2treasurer for deposit in the school fund. The attorney general may bring an action
3in the name of the state to collect any forfeiture assessed by the commission under
4this subdivision that has not been paid as provided in this subdivision. The only
5contestable issue in such an action is whether or not the forfeiture has been paid.
AB615,6,106 (e) At any time during a proceeding on a complaint specified in par. (a), the
7commission may, without holding a hearing, order a party to the interconnection
8agreement to take an action or refrain from taking an action that is related to
9complying with the agreement upon a showing by any other party to the proceeding
10of all of the following:
AB615,6,1311 1. That there is a substantial probability that, at the conclusion of the
12proceeding, the commission will find that the party against whom the order is sought
13has failed to comply with the interconnection agreement.
AB615,6,1714 2. For a complaint filed by a party to an interconnection agreement, that the
15party against whom the order is sought is taking an action or failing to take an action
16that has a substantial adverse effect on the ability of the complaining party to
17provide telecommunications service to its customers.
AB615,6,1818 3. That the order is in the public interest.
AB615,6,2419 (f) The commission may require a bond or other security of a person seeking an
20order under par. (e) to the effect that the person shall pay the party against whom
21the order is issued such damages and expenses, excluding attorney fees, in an
22amount specified by the commission, as that party may sustain by reason of the order
23if the commission determines under par. (g) that the person seeking the order was
24not entitled to the order.
AB615,7,12
1(g) Within 5 days after receiving an order issued under par. (e), the party
2against whom the order is issued may request the commission to review the order.
3Within 30 days after receiving a request under this paragraph, the commission shall
4determine whether the person who sought the order under par. (e) was entitled to the
5order and shall terminate, continue or modify the order on such terms as the
6commission determines are appropriate. If the commission determines that the
7person was not entitled to the order, the commission may order the person to pay the
8damages and expenses, excluding attorney fees, sustained, by reason of the order, by
9the party against whom the order was issued. In making a determination under this
10paragraph, the commission may consider only the factors specified in par. (e) 1. to 3.
11based only on information that was available to the commission at the time that the
12commission issued the order under par. (e).
AB615,7,1913 (h) 1. Upon a petition filed by a party to an interconnection agreement approved
14by the commission, the commission may, after an opportunity for hearing is afforded
15to each party to the agreement, issue a declaratory ruling with respect to the
16meaning of any provision of the agreement. A declaratory ruling issued by the
17commission shall bind the commission and all parties to a proceeding under this
18paragraph on the statement of facts alleged, unless the ruling is altered or set aside
19by a court.
AB615,7,2220 2. A petition filed under subd. 1. shall identify all of the parties to the
21interconnection agreement and include a concise statement of facts describing the
22situation as to which the ruling is requested and the reasons for the requested ruling.
AB615,7,2423 3. Within 120 days after receipt of a petition under subd. 1., the commission
24shall do one of the following:
AB615,8,2
1a. Deny the petition in writing and provide a brief statement of the reasons for
2the denial.
AB615,8,33 b. Hold a hearing on the petition and issue a declaratory ruling in writing.
AB615,8,11 4(4) Penalties. (a) 1. A party to an interconnection agreement, approved by the
5commission, who has failed to comply with the agreement shall forfeit not more than
6$15,000 or, if the failure is wilful, not more than $40,000, except that if the party is
7a telecommunications utility that has $10,000,000 or less in annual gross operating
8revenues derived from intrastate operations during the last calendar year, as
9determined under s. 196.85 (2), the forfeiture under this subdivision shall be not
10more $10,000. For purposes of this subdivision, each day that a party fails to comply
11with an interconnection agreement is a separate failure to comply.
AB615,8,1412 2. The maximum forfeiture that may be imposed under subd. 1. shall be trebled
13if either of the following conditions is satisfied and shall be sextupled if both of the
14following conditions are satisfied:
AB615,8,1615 a. The party's failure to comply causes death or life-threatening or seriously
16debilitating injury.
AB615,8,1817 b. The party's failure to comply continues after the party receives written notice
18of the commission's order requiring compliance with the interconnection agreement.
AB615,8,2519 3. In addition to a forfeiture imposed under subd. 1., a party to an
20interconnection agreement, approved by the commission, who has failed to comply
21with the agreement shall forfeit an amount equal to not more than 2 times the gross
22value of the party's economic gain resulting from the failure to comply or not more
23than 2 times the gross value of the economic loss experienced by the party to the
24agreement who is injured as a result of the party's failure to comply, whichever is
25greater.
AB615,9,2
1(b) A court shall consider each of the following in determining the amount of
2a forfeiture under par. (a):
AB615,9,43 1. The appropriateness of the forfeiture to the volume of business of the party
4that failed to comply with the agreement.
AB615,9,55 2. The gravity of the failure to comply.
AB615,9,76 3. Any good faith attempt to comply with the agreement after the party receives
7notice of a failure to comply
AB615,9,88 4. Any other factor that the court determines is relevant.
AB615, s. 2 9Section 2. 196.219 (1) of the statutes is renumbered 196.219 (1) (intro.) and
10amended to read:
AB615,9,1111 196.219 (1) (title) Definition Definitions. (intro.) In this section , "consumer":
AB615,9,15 12(a) "Consumer" means any person, including a telecommunications provider,
13that uses the services, products or facilities provided by a telecommunications utility
14or the local exchange services offered by a telecommunications provider that is not
15a telecommunications utility
.
AB615, s. 3 16Section 3. 196.219 (1) (b) of the statutes is created to read:
AB615,9,1817 196.219 (1) (b) "Local exchange service" has the meaning given in s. 196.50 (1)
18(b) 1.
AB615, s. 4 19Section 4. 196.219 (2) (a) of the statutes is amended to read:
AB615,9,2420 196.219 (2) (a) Notwithstanding any exemptions identified in this chapter
21except s. 196.202, a telecommunications utility or provider shall provide protection
22to its consumers under this section unless exempted in whole or in part by rule or
23order of the commission under this section. The commission shall promulgate rules
24that identify the conditions under which provisions of this section may be suspended.
AB615, s. 5 25Section 5. 196.219 (2) (d) of the statutes is amended to read:
AB615,10,3
1196.219 (2) (d) If the commission grants an exemption under this subsection,
2it may require the telecommunications utility or provider to comply with any
3condition necessary to protect the public interest.
AB615, s. 6 4Section 6. 196.219 (2m) (a) of the statutes is amended to read:
AB615,10,75 196.219 (2m) (a) A telecommunications utility or provider shall provide access
6services under tariff under the same rates, terms and conditions to all
7telecommunications providers.
AB615, s. 7 8Section 7. 196.219 (3) (intro.) and (a) of the statutes are amended to read:
AB615,10,129 196.219 (3) Prohibited practices. (intro.) A telecommunications utility may
10not do any of the following
with respect to its regulated services or any other
11telecommunications provider with respect to its offering of local exchange services
12may not do any of the following
:
AB615,10,1813 (a) Refuse to interconnect within a reasonable time with another person to the
14same extent that the federal communications commission requires the
15telecommunications utility or provider to interconnect. The public service
16commission may require additional interconnection based on a determination,
17following notice and opportunity for hearing, that additional interconnection is in
18the public interest and is consistent with the factors under s. 196.03 (6).
AB615, s. 8 19Section 8. 196.219 (3) (e) of the statutes is amended to read:
AB615,10,2320 196.219 (3) (e) Fail to provide a service, product or facility to a consumer other
21than a telecommunications provider in accord with the telecommunications utility's
22or provider's applicable tariffs, price lists or contracts and with the commission's
23rules and orders.
AB615, s. 9 24Section 9. 196.219 (3) (em) of the statutes is amended to read:
AB615,11,4
1196.219 (3) (em) Refuse to provide a service, product or facility to a
2telecommunications provider
, in accord with the that telecommunications utility's or
3provider's
applicable tariffs, price lists or contracts and with the commission's rules
4and orders, to another telecommunications provider.
AB615, s. 10 5Section 10. 196.219 (3) (f) of the statutes is amended to read:
AB615,11,146 196.219 (3) (f) Refuse to provide basic local exchange service, business access
7line and usage service within a local calling area and access service on an unbundled
8basis to the same extent that the federal communications commission requires the
9telecommunications utility or provider to unbundle the same services provided
10under its jurisdiction. The public service commission may require additional
11unbundling of intrastate telecommunications services based on a determination,
12following notice and opportunity for hearing, that additional unbundling is required
13in the public interest and is consistent with the factors under s. 196.03 (6). The public
14service commission may order unbundling by a small telecommunications utility.
AB615, s. 11 15Section 11. 196.219 (3) (h) of the statutes is amended to read:
AB615,11,2016 196.219 (3) (h) To the extent prohibited by the federal communications
17commission, or by the public service commission under rules promulgated consistent
18with the factors under s. 196.03 (6), give preference or discriminate in the provision
19of services, products or facilities to an affiliate, or to the telecommunications utility's
20or provider's own or an affiliate's retail department that sells to consumers.
AB615, s. 12 21Section 12. 196.219 (3) (m) of the statutes is amended to read:
AB615,12,222 196.219 (3) (m) Provide telecommunications service to any person acting as a
23telecommunications utility, telecommunications provider, alternative
24telecommunications utility or telecommunications carrier if the commission has

1ordered the telecommunications utility or provider to discontinue service to that
2person.
AB615, s. 13 3Section 13. 196.219 (4) of the statutes is amended to read:
AB615,12,74 196.219 (4) Enforcement. (a) On the commission's own motion or upon
5complaint filed by the consumer, the commission shall have jurisdiction to take
6administrative action or to commence civil actions against telecommunications
7utilities or providers to enforce this section.
AB615,12,128 (b) The commission may, at its discretion, institute in any court of competent
9jurisdiction a proceeding against a telecommunications utility or provider for
10injunctive relief to compel compliance with this section, to compel the accounting and
11refund of any moneys collected in violation of this section or for any other relief
12permitted under this chapter.
AB615, s. 14 13Section 14. 196.219 (4m) of the statutes is renumbered 196.219 (4m) (a) and
14amended to read:
AB615,12,1815 196.219 (4m) (a) Upon a finding of a violation of this section by the commission,
16any
Any person injured because of a violation of this section by a telecommunications
17utility or provider may commence a civil action to recover damages or to obtain
18injunctive relief.
AB615, s. 15 19Section 15. 196.219 (4m) (b) of the statutes is created to read:
AB615,12,2320 196.219 (4m) (b) Upon request of the commission, the attorney general may
21bring an action to require a telecommunications utility or provider to compensate
22any person for any pecuniary loss caused by the failure of the utility or provider to
23comply with this section.
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