SB91: Bill Text

LRB-2452/1

MDK:kmg&jlg:ch

1999 - 2000 LEGISLATURE

1999 Senate BILL 91

March 18, 1999 - Introduced by Senators Moen and Risser, cosponsored by Representatives Bock, Musser, Travis, Ott, Underheim, Black, Young and Carpenter. Referred to Committee on Health, Utilities, Veterans and Military Affairs.

SB91,1,4 An Act to renumber 196.219 (2m); to amend 196.196 (2) (a) and 196.203 (1); and to create 196.19 (1m) (f), 196.219 (2m) (a), 196.219 (2m) (b) (title), 196.219 (2m) (c) and 196.219 (2m) (d) of the statutes; relating to: access service rates charged to certain telecommunications providers.

Analysis by the Legislative Reference Bureau

This bill imposes restrictions on the rates that large telecommunications utilities may charge for providing access services to pay telephone service providers and unaffiliated telecommunications providers. Under current law, an "access service" is defined as the provision of access to a local exchange network for the purpose of originating or terminating a telecommunications service. Under this bill, a "large telecommunications utility", which the bill defines as a telecommunications utility with more than 150,000 access lines in this state, that provides an access service to a pay telephone service provider may only charge a rate for the service that satisfies the following two criteria:

1. The access rate may not allow the large telecommunications utility to recover more than its direct costs and a reasonable allocation of its overhead costs in providing the service.

2. The access rate must comply with certain regulations and orders issued by the federal communications commission.

Under the bill, a large telecommunications utility must file tariffs with the public service commission (PSC) for providing access services to pay telephone service providers and for modifying access rates and must notify pay telephone service providers about rate modifications. In addition, a large telecommunications utility that provided an access service to a pay telephone service provider between April 15, 1997, and the effective date of the bill must provide cost support data to the PSC that allows the PSC to determine whether the access rate charged for the service satisfies the two criteria described above. If the PSC determines that the access rate does not satisfy the criteria, the PSC must determine a satisfactory rate and order the large telecommunications utility to provide a refund to the pay telephone service provider for any charge that exceeds the rate determined by the PSC.

In addition, under the bill, a large telecommunications utility or a holding company that operates or controls a large telecommunications utility may not, unless approved by the PSC, charge an access rate to an unaffiliated telecommunications provider that is greater than the lowest compensation rate that the large telecommunications utility or holding company charges to itself, an affiliate or any other telecommunications provider for the same or similar service, basic network function or element used for terminating or transporting a local exchange call.

The PSC may approve an access rate that exceeds the above rate only if the PSC finds, after a hearing, that the large telecommunications utility or holding company has experienced a substantial change in circumstances that justifies the rate and that the rate satisfies each of the following:

1. The access rate will not have an anticompetitive impact on competitors.

2. The access rate does not exceed the large telecommunications utility's or holding company's total service long-run incremental costs in providing the service.

3. The access rate is in the public interest.

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:

SB91, s. 1 Section 1. 196.19 (1m) (f) of the statutes is created to read:

SB91,2,3 196.19 (1m) (f) This subsection does not apply to a tariff specified in s. 196.219 (2m) (c) 3.

SB91, s. 2 Section 2. 196.196 (2) (a) of the statutes is amended to read:

SB91,3,2 196.196 (2) (a) Except as required to enforce this subsection and the requirements of s. 196.219 (2m) or 1999 Wisconsin Act .... (this act), section 9, the commission may not review or set the rates for intrastate access services offered by price-regulated telecommunications utilities. This paragraph does not waive the tariff requirements of s. 196.219 (2m).

SB91, s. 3 Section 3. 196.203 (1) of the statutes is amended to read:

SB91,3,6 196.203 (1) Except as provided in this section and s. 196.219 (2m), alternative telecommunications utilities are exempt from all provisions of ch. 200 and this chapter.

SB91, s. 4 Section 4. 196.219 (2m) of the statutes is renumbered 196.219 (2m) (b).

SB91, s. 5 Section 5. 196.219 (2m) (a) of the statutes is created to read:

SB91,3,9 196.219 (2m) (a) Definitions. In this subsection:

SB91,3,12 1. "Access rate" means any rate, fee, price or amount for the provision of an access service or any basic network function or element that comprises an access service or any traffic sensitive or nontraffic sensitive charge.

SB91,3,15 2. "Affiliate of a large telecommunications utility" means any person who controls, is controlled by or is under common control with a large telecommunications utility.

SB91,3,17 3. "Holding company" means a holding company, as defined in s. 196.795 (1) (h) 1., that owns or controls a large telecommunications utility.

SB91,3,19 4. "Large telecommunications utility" means a telecommunications utility with more than 150,000 access lines in this state.

SB91,3,22 5. "Unaffiliated telecommunications provider" means a telecommunications provider, other than a pay telephone service provider, that is not an affiliate of a large telecommunications utility.

SB91, s. 6 Section 6. 196.219 (2m) (b) (title) of the statutes is created to read:

SB91,3,24 196.219 (2m) (b) (title) Nondiscrimination.

SB91, s. 7 Section 7. 196.219 (2m) (c) of the statutes is created to read:

SB91,4,4 196.219 (2m) (c) Pay telephone service providers. 1. A large telecommunications utility that provides an access service to a pay telephone service provider may only charge an access rate for the service that satisfies each of the following:

SB91,4,7 a. The access rate does not allow the large telecommunications utility to recover more than its direct costs and a reasonable allocation of its overhead costs in providing the access service to the pay telephone service provider.

SB91,4,9 b. The access rate complies with the regulations promulgated and orders issued by the federal communications commission under 47 USC 276.

SB91,4,18 2. A large telecommunications utility shall file tariffs with the commission for the provision of any access service to a pay telephone service provider and for the modification of any access rates. A filing under this subdivision shall include cost support data that is consistent with the requirements of 47 CFR 61.49. At the time of a filing, the large telecommunications utility shall provide written notice of any modification of an access rate to its customers who are pay telephone service providers. The commission shall approve or modify a tariff filed under this subdivision only if the commission determines that the proposed or modified access rate satisfies the requirements of subd. 1.

SB91, s. 8 Section 8. 196.219 (2m) (d) of the statutes is created to read:

SB91,5,2 196.219 (2m) (d) Unaffiliated telecommunications providers. 1. A large telecommunications utility or a holding company may not charge an access rate to an unaffiliated telecommunications provider that exceeds the lowest compensation rate or combination of rates that it charges, whether by tariff or agreement, to itself, an affiliate of the large telecommunications utility or any other telecommunications provider for the same or similar service, basic network function or element used for the termination or transport of a local exchange call, including extended community calling or extended area service calling.

SB91,5,9 2. Notwithstanding subd. 1., a large telecommunications utility or holding company may petition the commission for approval to charge an unaffiliated telecommunications provider an access rate that exceeds an access rate specified in subd. 1. The commission may grant its approval after notice to all interested parties and a hearing if the commission finds that the large telecommunications utility or holding company has established, by clear and convincing evidence, each of the following:

SB91,5,12 a. That the large telecommunications utility or holding company has experienced a substantial change in circumstances that justifies the petitioned access rate.

SB91,5,14 b. That the petitioned access rate will not have an anticompetitive impact on any competitor of the large telecommunications utility or holding company.

SB91,5,17 c. That the petitioned access rate does not exceed the large telecommunications utility's or holding company's total service long-run incremental costs in providing the access service.

SB91,5,18 d. That the petitioned access rate is in the public interest.

SB91, s. 9 Section 9 . Nonstatutory provisions.

SB91,5,20 (1) Definitions. In this Section:

SB91,5,22 (a) "Access rate" has the meaning given in section 196.219 (2m) (a) 1. of the statutes, as created by this act.