LRB-3706/1
MDK:kjf:pg
2003 - 2004 LEGISLATURE
November 13, 2003 - Introduced by Representatives Jensen, Montgomery,
Nischke, Pettis, Olsen, Musser, Albers, Ott, Petrowski
and Bies,
cosponsored by Senators Kanavas, Welch, Stepp, Darling, Reynolds and
Brown. Referred to Committee on Energy and Utilities.
AB672,1,7 1An Act to repeal 196.196 (1) (a) 2. b.; to renumber 196.218 (4); to consolidate,
2renumber and amend
196.196 (1) (a) 2. (intro.) and 2. a.; to amend 196.01
3(1g) and 196.01 (9m); and to create 66.0422, 196.01 (1k), 196.218 (4) (b) and
4196.219 (2r) of the statutes; relating to: exempting broadband Internet service
5from regulation by the Public Service Commission and local governments,
6requiring telecommunications utilities to provide unbundled network
7elements, and price regulation of telecommunications utilities.
Analysis by the Legislative Reference Bureau
Under current law, persons who provide telecommunications service
(telecommunications providers) are subject to various degrees and types of
regulation by the Public Service Commission (PSC). The degree and type of
regulation depends on the type of telecommunications service that is provided.
Current law defines "telecommunications service," in part, as the offering for sale of
the conveyance of voice, data, or other information, at any frequency over any part
of the electromagnetic spectrum, including the sale of service for collection, storage,
forwarding, switching, and delivery incidental to such communication. Cable
television service and certain one-way broadcast services are excluded from the
definition and, therefore, are not subject to PSC regulation.
This bill excludes broadband service from the definition of
"telecommunications service." The bill defines "broadband service" as the

conveyance of any voice, data, or other information in both directions between a
provider's facilities and a customer using any medium or technology: 1) at a speed
of 200 kilobits per second or more; or 2) via an intentional radiator, as defined by the
Federal Communications Commission (FCC). (The FCC has defined "intentional
radiator" as a device that intentionally generates and emits radio frequency energy
by radiation or induction.). As a result, under the bill, the PSC has no authority to
regulate persons who broadband service. In addition, the bill also revises the
definition of "telecommunications service" to eliminate the requirement that it must
be conveyed at any frequency over any part of the electromagnetic spectrum.
The bill also prohibits a city, village, town, or county from enacting an ordinance
or adopting a resolution that regulates providing, or offering to provide, broadband
service.
In addition, the bill requires telecommunications providers that are regulated
as telecommunications utilities by the PSC to provide unbundled network elements
to other telecommunications providers to the extent specifically required under
federal law by the FCC. In general, "unbundled network elements" are the physical
and functional elements of a telecommunications utility's network that the
telecommunications utility must make available to competitors under federal law.
As a result, the bill allows the PSC to use state law to require telecommunications
utilities to comply with the requirements under federal law.
The bill also makes changes to the PSC's authority regarding price regulation
of telecommunications utilities and universal service. Under price regulation, the
PSC regulates the rates charged by a telecommunications utility for certain
residential and business services, but does not regulate a utility's rate of return on
investments, which is the subject of traditional utility regulation. If certain
conditions are satisfied, current law also authorizes the PSC to apply price
regulation to rates for the following: 1) advanced telecommunications services; and
2) services that the PSC finds are necessary for universal service. Current law
imposes various other duties on the PSC regarding universal service, which, in
general, require the PSC to promote the availability of affordable
telecommunications services throughout the state. One of the duties is for the PSC
to promulgate rules that define the types of services that are necessary components
of universal service.
The bill eliminates the authority of the PSC to apply price regulation to rates
for advanced telecommunications services. The bill also prohibits the PSC from
promulgating rules that specify that broadband service is a necessary component of
universal service. The bill does not affect any other duties of the PSC regarding
universal service.
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:
AB672, s. 1
1Section 1. 66.0422 of the statutes is created to read:
AB672,3,4 266.0422 Broadband service. No city, village, town, or county may enact an
3ordinance or adopt a resolution that regulates providing, or offering to provide,
4broadband service, as defined in s. 196.01 (1k), to the public.
AB672, s. 2 5Section 2. 196.01 (1g) of the statutes is amended to read:
AB672,3,146 196.01 (1g) "Basic local exchange service" means the provision to residential
7customers of an access facility, whether by wire, cable, fiber optics or radio, and
8essential usage within a local calling area for the transmission of high-quality
92-way interactive switched voice or data communication. "Basic local exchange
10service" includes extended community calling and extended area service. "Basic
11local exchange service" does not include additional access facilities or any
12discretionary or optional services that may be provided to a residential customer.
13"Basic local exchange service" does not include cable television service, broadband
14service,
or services provided by a commercial mobile radio service provider.
AB672, s. 3 15Section 3. 196.01 (1k) of the statutes is created to read:
AB672,3,1816 196.01 (1k) "Broadband service" means the conveyance of any voice, data, or
17other information in both directions between a provider's facilities and a customer
18using any medium or technology in any of the following ways:
AB672,3,1919 (a) At a speed of 200 kilobits per second or more.
AB672,3,2020(b) Via an intentional radiator, as defined in 47 CFR 15.3 (o).
AB672, s. 4 21Section 4. 196.01 (9m) of the statutes is amended to read:
AB672,4,222 196.01 (9m) "Telecommunications service" means the offering for sale of the
23conveyance of voice, data or other information at any frequency over any part of the
24electromagnetic spectrum
, including the sale of service for collection, storage,
25forwarding, switching and delivery incidental to such communication and including

1the regulated sale of customer premises equipment. "Telecommunications service"
2does not include cable television service, broadband service, or broadcast service.
AB672, s. 5 3Section 5. 196.196 (1) (a) 2. (intro.) and 2. a. of the statutes are consolidated,
4renumbered 196.196 (1) (a) 2. and amended to read:
AB672,4,95 196.196 (1) (a) 2. The commission may include, following notice and
6opportunity for hearing, as part of the services subject to price regulation under this
7subsection all of the following: 2. a. Those those services and technological features
8found by the commission to be a necessary component of universal service under s.
9196.218.
AB672, s. 6 10Section 6. 196.196 (1) (a) 2. b. of the statutes is repealed.
AB672, s. 7 11Section 7. 196.218 (4) of the statutes is renumbered 196.218 (4) (a).
AB672, s. 8 12Section 8. 196.218 (4) (b) of the statutes is created to read:
AB672,4,1413 196.218 (4) (b) In promulgating rules under par. (a), the commission may not
14specify that broadband service is a necessary component of universal service.
AB672, s. 9 15Section 9. 196.219 (2r) of the statutes is created to read:
AB672,4,1916 196.219 (2r) Unbundled network elements. A telecommunications utility
17shall provide unbundled network elements to consumers to the extent specifically
18required under 47 USC 251 (c) and the regulations and orders of the federal
19communications commission promulgated thereunder.
AB672, s. 10 20Section 10. Initial applicability.
AB672,4,2221 (1) The treatment of section 66.0422 of the statutes first applies to ordinances
22enacted and resolutions adopted on the effective date of this subsection.
AB672,4,2323 (End)
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