AB207-SSA1,14,1614
(L)
Annual fees. Upon issuance of a video service franchise to a video service
15franchisee, and annually thereafter, the video service franchisee shall pay a fee of
16$2,000 to the department of agriculture, trade and consumer protection.
AB207-SSA1,14,23
17(5) PEG channels. (a)
Channel capacity; number of channels. 1. Except as
18provided in subd. 2., a municipality that includes any portion of the video service area
19of a video service franchisee may require the video service franchisee to do all of the
20following, and the video service franchisee shall take any required action no later
21than 90 days after the municipality notifies the video service franchisee of the
22requirement or than the date on which the video service franchisee begins to provide
23video service in the municipality, whichever is later:
AB207-SSA1,15,224
a. Designate the same amount of capacity on its video service network for PEG
25channels as an incumbent cable operator was required to designate under a cable
1franchise that was granted to the incumbent cable operator by the municipality and
2that was in effect on January 1, 2007.
AB207-SSA1,15,63
b. Retransmit to its subscribers the same number of PEG channels as an
4incumbent cable operator was required to retransmit under a cable franchise that
5was granted to the incumbent cable operator by the municipality and that was in
6effect on January 1, 2007.
AB207-SSA1,15,127
2. If a municipality that includes any portion of the video service area of a video
8service franchisee was provided less than 3 PEG channels by an incumbent cable
9operator on January 1, 2007, then, under subd. 1., the municipality may require the
10video service franchisee to designate sufficient capacity on its video service network
11for no more than 3 PEG channels and retransmit to its subscribers no more than 3
12PEG channels.
AB207-SSA1,15,2313
3. Any time that programming on any PEG channel that a municipality
14requires a video service franchisee to retransmit under this paragraph exceeds 40
15hours per week as measured on a quarterly basis, the municipality may require the
16video service franchisee to designate sufficient capacity on its video service network
17for one additional PEG channel and retransmit to its subscribers one additional PEG
18channel. The municipality shall provide the video service franchisee with a written
19notice that specifies the number of PEG channels used by the municipality and
20verifies that the additional PEG channel will be put into actual use. No later than
2190 days after receiving the notice, the video service franchisee shall comply with the
22requirement. The additional PEG channel may not be used for any purpose other
23than for carrying additional PEG channel programming.
AB207-SSA1,16,1224
(b)
Transmission duties. 1. If a municipality produces or maintains PEG
25channel programming in a manner or form that is compatible with a video service
1franchisee's video service network and that permits the video service franchisee to
2comply with the requirements of subd. 2., the municipality shall transmit the
3programming to the video service franchisee in that manner or form. If the
4municipality does not produce or maintain PEG channel programming in such
5manner or form, the video service franchisee shall be responsible for any changes in
6the manner or form of the transmission that are necessary to make PEG channel
7programming compatible with the technology or protocol used by the video service
8franchisee to deliver services. If a video service franchisee is required to make such
9changes to the manner or form of the transmission, the municipality shall provide
10reasonable access to the video service franchisee that allows the video service
11franchisee to transmit the PEG channel programming in an economical manner
12subject to the requirements of subd. 2.
AB207-SSA1,16,1813
2. A video service franchisee shall retransmit PEG channels to its subscribers
14with visual and audio quality and functionality that is equivalent, from the viewing
15perspective of the subscriber, to that of commercial channels carried on the video
16service franchisee's basic video service offerings or service tiers and without the need
17for any equipment other than the equipment necessary to receive the video service
18franchisee's basic video service offerings or service tiers.
AB207-SSA1,17,219
3. A video service franchisee shall carry PEG channels on its basic video
20service. To the extent feasible, PEG channels may not be separated numerically from
21other channels carried on the video service franchisee's basic video service, and the
22channel numbers for PEG channels shall be the same channel numbers used by an
23incumbent cable operator unless prohibited by federal law. After the initial
24designation of PEG channel numbers, the channel numbers may not be changed
25without the agreement of the municipality or the municipality's PEG channel
1manager, unless the change is required by federal law. Each channel shall be capable
2of carrying a National Television Systems Committee television signal.
AB207-SSA1,17,53
(c)
Fees prohibited. A video service franchisee may not charge a municipality,
4a municipality's PEG channel manager, or a municipality's PEG channel
5programming providers any fee for complying with this subsection.
AB207-SSA1,17,246
(d)
Interconnection. Video service franchisees and incumbent cable operators
7shall negotiate in good faith amongst themselves to interconnect their video service
8networks, if needed, for the purpose of complying with this subsection.
9Interconnection may be accomplished by direct cable, microwave link, satellite, or
10other reasonable method of connection. Video service franchisees and incumbent
11cable operators shall provide such interconnection on reasonable terms and
12conditions and may not withhold such interconnection. If video service franchisees
13and incumbent cable operators cannot reach a mutually acceptable interconnection
14agreement, a municipality may require an incumbent cable operator to allow a video
15service franchisee to interconnect its video service network with the incumbent cable
16operator's video service network at a technically feasible point on their video service
17networks. If no technically feasible point for interconnection between a video service
18franchisee and incumbent cable operator is available, the video service franchisee
19and incumbent cable operator shall each make an interconnection available to PEG
20channel local origination points and shall provide the facilities necessary for the
21interconnection. The cost of any interconnection shall be borne by a video service
22franchisee unless otherwise agreed to by the parties. The interconnection required
23by this paragraph shall be completed within the deadline for taking action required
24under par. (a) 1. that is specified in par. (a) 1. (intro.).
AB207-SSA1,18,6
1(e)
PEG channel usage. PEG channels required by a municipality under this
2subsection shall be for the exclusive use of the municipality, or the municipality's
3PEG channel manager, to provide public, education, and government programming,
4and may be used only for noncommercial purposes, except that advertising,
5underwriting, or sponsorship recognition may be carried on the channels for the
6purpose of funding public, education, and government access related activities.
AB207-SSA1,18,147
(f)
PEG channel listing. A video service franchisee shall provide a listing of
8PEG channels on channel cards and menus provided to subscribers in a manner
9equivalent to other channels if the video service franchisee uses such cards and
10menus. A video service franchisee shall provide a listing of PEG channel
11programming on its electronic program guide if such a guide is used by the video
12service franchisee. A municipality shall provide a video service franchisee or an
13agent designated by a video service franchisee with program schedules and
14information in a timely manner.
AB207-SSA1,18,1815
(g)
Programming. 1. A person that produces programming for broadcast on
16a PEG channel is solely responsible for the content of the programming. A video
17service franchisee may not exercise any editorial control over any programming on
18any PEG channel.
AB207-SSA1,18,2019
2. A video service franchisee is not subject to any civil or criminal liability for
20any program carried on any PEG channel.
AB207-SSA1,18,2321
(h)
Enforcement. In an action to enforce this subsection, a court may not
22prohibit a video service franchisee from providing video service or require a video
23service franchisee to terminate video service.
AB207-SSA1,19,11
24(6) Emergency alert system. A video service franchisee shall comply with all
25requirements of the federal communications commission regarding the distribution
1and notification of federal, state, and local emergency messages over the emergency
2alert system that apply to cable operators. A video service franchisee shall provide
3a requesting municipality with sufficient information regarding how to submit, via
4telephone or Web site listing, a local emergency alert for distribution over its video
5service network. A municipality that requires a municipally regulated cable
6operator to comply with emergency alert system message or service requirements
7that are in addition to the requirements imposed under this subsection may impose
8such additional requirements on a video service franchisee that provides video
9service within the municipality. A video service franchisee may provide a local
10emergency alert to an area larger than the boundaries of the municipality issuing the
11emergency alert.
AB207-SSA1,19,17
12(7) Municipality fees. (a)
Gross revenue calculation. 1. `Generally.' Gross
13revenue of a video service franchisee consists of all consideration of any kind or
14nature, including cash, credits, property, and the monetary value of in-kind
15contributions, received by the video service franchisee for the operation of a video
16service network to provide video service within the video service franchisee's video
17service area that is located within a municipality.
AB207-SSA1,19,1918
2. `Inclusions.' Gross revenue of a video service franchisee includes all of the
19following:
AB207-SSA1,19,2020
a. Recurring charges for video service.
AB207-SSA1,19,2221
b. Event-based charges for video service, including pay-per-view and
22video-on-demand charges.
AB207-SSA1,19,2323
c. Rental of set top boxes and other video service equipment.
AB207-SSA1,19,2524
d. Service charges related to the provision of video service, including activation,
25installation, and repair charges.
AB207-SSA1,20,2
1e. Administrative charges related to the provision of video service, including
2service order and service termination charges.
AB207-SSA1,20,43
f. Late payment fees or charges, insufficient funds check charges, and other
4charges assessed to recover the costs of collecting delinquent payments.
AB207-SSA1,20,125
g. A pro rata portion of all revenue that is derived by the video service
6franchisee or its affiliates pursuant to regional or national compensation
7arrangements for advertising, promoting, or exhibiting any products or services, and
8that is also derived from the operation of the video service franchisee's video service
9network to provide video service within a municipality. The pro rata portion shall
10be determined by dividing the number of the video service franchisee's subscribers
11in the municipality by the total number of the video service franchisee's subscribers
12in the regional or national area covered by the compensation arrangement.
AB207-SSA1,20,1613
h. Commissions that are received by the video service franchisee as
14compensation for promoting or exhibiting any products or services on the video
15service franchisee's video service network, such as a home shopping or similar
16channel.
AB207-SSA1,20,1717
i. Video service franchise fees.
AB207-SSA1,20,1918
3. `Exclusions.' Gross revenue of a video service franchisee does not include any
19of the following:
AB207-SSA1,20,2020
a. Revenues not actually received, including revenues that are billed.
AB207-SSA1,20,2321
b. Refunds, discounts, or other price adjustments that reduce the amount of
22gross revenue received by the video service franchisee to the extent that the refund,
23discount, or other price adjustment is attributable to video service.
AB207-SSA1,21,324
c. Revenue from the sale of video service for resale to a purchaser that is
25required to collect a video service franchise fee from the purchaser's subscribers, but
1only if the purchaser certifies in writing that the purchaser will resell the service
2within the municipality to which the video service franchise fee is payable and that
3the purchaser will pay the video service franchise fee to the municipality.
AB207-SSA1,21,74
d. Any tax or fee of general applicability imposed upon the subscribers or the
5transaction by a city, state, federal, or any other governmental entity and collected
6by the video service franchisee and required to be remitted to the taxing entity,
7including sales and use taxes.
AB207-SSA1,21,88
e. Security deposits collected from subscribers.
AB207-SSA1,21,119
f. Amounts paid by subscribers to home shopping or similar vendors for
10merchandise sold through any home shopping channel offered as part of the video
11service.
AB207-SSA1,21,1812
4. `Bundled services.' a. Except as provided in subd. 4. b., if a video service is
13bundled, packaged, or integrated functionally with other services, capabilities, or
14applications, the portion of the video service franchisee's revenue that is attributable
15to the other services, capabilities, or applications shall be included in the calculation
16of the video service franchisee's gross revenue unless the video service franchisee can
17reasonably identify the division or exclusion of the revenue from its books and
18records that are kept in the regular course of business.
AB207-SSA1,22,319
b. Gross revenue of a video service franchisee does not include any revenue
20received from nonvideo services, including revenue received from
21telecommunications services, information services, or the provision of directory or
22Internet advertising, including yellow pages, white pages, banner advertisement,
23and electronic publishing, or any other revenues attributed by a video service
24franchisee to nonvideo service in accordance with the video service franchisee's books
25and records kept in the regular course of business and in accordance with any
1applicable laws, rules, regulations, standards, or orders. This subd. 4. b. applies
2regardless of whether the nonvideo services are bundled, packaged, or functionally
3integrated with video services.
AB207-SSA1,22,84
5. `Affiliates.' Revenue of an affiliate of a video service franchisee shall be
5included in the video service franchisee's gross revenue to the extent the treatment
6of the revenue as revenue of the affiliate rather than of the video service franchisee
7has the effect of evading the requirement to pay a video service franchise fee or PEG
8support fee.
AB207-SSA1,22,109
(b)
Notice. No less than 10 days before offering video service in a municipality,
10a video service franchisee shall notify the municipality.
AB207-SSA1,22,1611
(c)
Video service franchise fee. 1. In any municipality in which a video service
12franchisee offers video service on a commercial basis, the video service franchisee
13shall, upon request by such a municipality, be liable for and pay a video service
14franchise fee to the municipality. The video service franchise fee shall equal one of
15the following percentages of the video service franchisee's gross revenues, whichever
16is less:
AB207-SSA1,22,1717
a. Five percent.
AB207-SSA1,22,2018
b. The percentage of revenues that the municipality required, on the effective
19date of this subd. 1. b. .... [revisor inserts date], an incumbent cable operator to pay
20as a franchise fee under s. 66.0419 (3) (c).
AB207-SSA1,22,2321
2. Payment of the video service franchise fee is due on a quarterly basis 45 days
22after the close of the calendar quarter. If mailed, the video service franchise fee is
23considered paid on the date it is postmarked.
AB207-SSA1,23,224
3. Except as otherwise provided in this section or s. 66.0425 or 182.017 (1), a
25municipality may not demand any additional fees or charges from a video service
1franchisee and may not demand the use of any other calculation method other than
2allowed under this subsection.
AB207-SSA1,23,83
(d)
PEG support fee. 1. A video service franchisee shall, upon request by a
4municipality in which the video service franchisee provides video service, pay to the
5municipality or the municipality's PEG channel manager, as support for PEG
6channels, a PEG support fee equal to not less than 1 percent of the video service
7franchisee's gross revenue or the percentage of the video service franchisee's gross
8revenue that results from performing the following calculation, whichever is greater:
AB207-SSA1,23,169
a. Determining the aggregate annual amount that each incumbent cable
10operator that provides cable service in the video service franchisee's service area is
11obligated to pay the municipality or its PEG channel manager under a cable
12franchise, agreement, or contract in effect on January 1, 2007, including any
13payments required under sub. (3) (b) 2. b., and including the amount resulting by
14dividing the total amount of any lump sum payments required to be made over the
15term of such franchise, contract, or agreement by the number of years of the term of
16the franchise, contract, or agreement.
AB207-SSA1,23,1817
b. Determining the aggregate annual amount of gross revenue during the
18preceding calendar year of each incumbent cable operator specified in subd. 1. a.
AB207-SSA1,23,2019
c. Determining the percentage that results from dividing the amount
20determined under subd. 1. a. by the amount determined under subd. 1. b.
AB207-SSA1,24,221
2. PEG support fees are due on a quarterly basis and must be paid no later than
2245 days after the close of a calendar quarter. PEG support fees are first due for the
23quarter that includes the 90th day after a municipality requests payment of the fees
24or the date on which the video service franchisee begins to provide video service in
25the municipality, whichever is later. Each payment shall include a statement
1explaining the basis for the calculation of the PEG support fee. If mailed, the PEG
2support fee is considered paid on the date it is postmarked.
AB207-SSA1,24,63
3. A municipality may require a video service franchisee to provide the
4municipality or the municipality's PEG channel manager with any information
5sufficient to calculate the PEG support fee required under this paragraph or the
6monetary payments for PEG channels required under sub. (3) (b) 2. b.
AB207-SSA1,24,97
(e)
Bill itemization. A video service franchisee may identify and collect the
8amount of the video service franchise fee or PEG support fee as separate line items
9on the regular bill of each subscriber.
AB207-SSA1,24,1110
(f)
Accounting. All determinations and computations under this subsection
11shall be made pursuant to generally accepted accounting principles.
AB207-SSA1,24,19
12(8) Audits; payments. (a) Upon receiving a notice under sub. (4) (g) 2. that a
13video service franchisee has received a video service franchise, a municipality shall
14notify the video service franchisee of the municipality's requirements for the video
15service franchisee to submit to an audit of its books and records. Such requirements
16shall be the same as those that apply to incumbent cable operators providing video
17service in the municipality on the effective date of this paragraph .... [revisor inserts
18date]. If there are no such incumbent cable operators, the municipality may impose
19reasonable audit requirements.
AB207-SSA1,24,2120
(b) Acceptance by a municipality of amounts remitted by a video service
21franchise shall not be construed as an accord that the amounts are correct.
AB207-SSA1,24,2322
(c) Any additional amount due after an audit shall be paid within 30 days after
23the municipality's submission of an invoice for the sum.
AB207-SSA1,24,24
24(9) Discrimination; access to services. (a)
Definitions. In this subsection:
AB207-SSA1,25,3
11. "Basic local exchange service area" means the area on file with the
2commission in which a large telecommunications video service franchisee provides
3basic local exchange service, as defined in s. 196.01 (1g).
AB207-SSA1,25,54
2. "Large telecommunications video service franchisee" means any of the
5following:
AB207-SSA1,25,86
a. A video service franchisee that is a telecommunications video service
7provider and that, on January 1, 2007, had more than 500,000 basic local exchange
8access lines in this state.
AB207-SSA1,25,99
b. An affiliate of a video service franchisee described under subd. 2. a.
AB207-SSA1,25,1210
3. "Telecommunications video service provider" means a person that uses
11facilities for providing telecommunications service, as defined in s. 196.01 (9m), also
12to provide video service.
AB207-SSA1,25,2413
(b)
Access determination. For purposes of this subsection, a video service
14franchisee provides access to its video service to a household if the video service
15franchisee is capable of providing video service at the household address using any
16technology, other than direct-to-home satellite service, that provides two-way
17broadband Internet capability, and video programming, content, and functionality
18which are demonstrably similar to video programming, content, and functionality
19provided through the video service franchisee's video service system, regardless of
20whether any customer at the household address has ordered service or whether the
21owner or landlord or other responsible person has granted access to the household
22address. If more than one technology is used, access is provided only if the
23technologies provide similar two-way broadband Internet capability and similar
24video programming.
AB207-SSA1,26,4
1(c)
Discrimination prohibited. 1. No video service franchisee may deny access
2to video service to any group of potential residential customers in the video service
3franchisee's video service area because of the race or income of the residents in the
4local area in which the group resides.
AB207-SSA1,26,65
2. It is a defense to an alleged violation of subd. 1. based on income if the video
6service franchisee has met either of the following conditions:
AB207-SSA1,26,107
a. No later than 3 years after the date on which the video service franchisee
8began providing video service under this section, at least 25 percent of households
9with access to the video service franchisee's video service are low-income
10households.
AB207-SSA1,26,1411
b. No later than 5 years after the date on which the video service franchisee
12began providing video service under this section, at least 30 percent of the
13households with access to the video service franchisee's video service are low-income
14households.
AB207-SSA1,26,1815
(d)
Access requirements. 1. A large telecommunications video service
16franchisee shall provide access to its video service to the following percentages of
17households within the large telecommunications video service franchisee's basic
18local exchange service area:
AB207-SSA1,26,2119
a. Not less than 35 percent no later than 3 years after the date on which the
20large telecommunications video service franchisee began providing video service
21under this section.
AB207-SSA1,27,222
b. Not less than 50 percent no later than 5 years after the date on which the
23large telecommunications video service franchisee began providing video service
24under this section, or no later than 2 years after at least 30 percent of households
1with access to the large telecommunications video service franchisee's video service
2subscribe to the service for 6 consecutive months, whichever occurs later.
AB207-SSA1,27,53
2. A large telecommunications video service franchisee shall file an annual
4report with the commission regarding the large telecommunications video service
5franchisee's progress in complying with subd. 1.
AB207-SSA1,27,126
(e)
Extensions and waivers. A video service franchisee may apply to the
7commission for an extension of any time limit specified in par. (c) 2. or (d) or a waiver
8of a requirement to comply with par. (d). The commission shall grant the extension
9or waiver if the video service franchisee demonstrates to the satisfaction of the
10commission that the video service franchisee has made substantial and continuous
11efforts to comply with the requirements of this subsection and that the extension or
12waiver is necessary due to one or more of the following factors:
AB207-SSA1,27,1413
1. The video service franchisee's inability to obtain access to public and private
14rights-of-way under reasonable terms and conditions.
AB207-SSA1,27,1615
2. Developments and buildings that are not subject to competition because of
16exclusive service arrangements.
AB207-SSA1,27,1817
3. Developments and buildings that are not accessible using reasonable
18technical solutions under commercially reasonable terms and conditions.
AB207-SSA1,27,1919
4. Natural disasters.
AB207-SSA1,27,2020
5. Other factors beyond the control of the video service franchisee.
AB207-SSA1,27,2421
(f)
Alternative technologies. A video service franchisee may satisfy the
22requirements of this subsection through the use of an alternative technology, other
23than satellite service, but only if the alternative technology provides access to PEG
24channels and messages broadcast over the emergency alert system.
AB207-SSA1,28,7
1(g)
Limitations. Notwithstanding any other provision of this section, a
2telecommunications video service provider is not required to provide video service
3outside the provider's basic local exchange service area, and a video service
4franchisee that is an incumbent cable operator is not required to provide video
5service outside the area in which the incumbent cable operator provided cable service
6at the time the commission issued a video service franchise to the incumbent cable
7operator.
AB207-SSA1,28,158
(h)
Broadband service. 1. If a large telecommunications video service
9franchisee does not provide access to broadband service to 90 percent of the
10households in the large telecommunications video service franchisee's
11telecommunications service area by the first day of the 18th month beginning after
12the effective date of this subdivision .... [revisor inserts date], the large
13telecommunications video service franchisee shall pay to the commission, no later
14than the first day of the 19th month beginning after the effective date of this
15subdivision .... [revisor inserts date], a sum of $7,500,000.
AB207-SSA1,28,2016
2. If a large telecommunications video service franchisee pays the sum to the
17commission under subd. 1., the commission shall use that sum to make grants to
18persons to assist in the deployment of broadband service to underserved areas in this
19state. The commission shall promulgate rules establishing requirements and
20procedures for making the grants.
AB207-SSA1,29,2
21(10) Enforcement. (a) The commission may investigate possible violations of
22this section, except sub. (9) (c) or (d), by video service franchisees. If the commission
23determines that there is a reason to believe that a video service franchisee has
24violated or is about to violate this section, except sub. (9) (c) or (d), the commission
25may bring an action against the video service franchisee to obtain, except as provided
1in sub. (5) (h), injunctive relief and civil penalties for any act, policy, or practice by
2the video service franchisee that violates this section, except sub. (9) (c) or (d).
AB207-SSA1,29,53
(b) The commission may suspend or revoke a video service franchisee's video
4service franchise if the video service franchisee fails to comply with this section or
5s. 100.209 after a reasonable time to achieve compliance has passed.
AB207-SSA1,29,6
6(11) Forfeitures. (a) Subject to par. (b):
AB207-SSA1,29,167
1. A video service franchisee that violates this section shall forfeit no more than
8$30,000 for each violation, or .00825 percent of the video service franchisee's
9statewide gross revenue, as calculated under sub. (7) (a), whichever is greater. Each
10violation of this section is a separate violation, except that if the same act or omission
11violates more than one provision of this section, only one forfeiture may be imposed
12for such act or omission.
Each day that a violation continues is a separate violation,
13except that, if the violation was not intentional, did not create substantial risk to the
14safety of the video service franchisee's employees or customers or the public, and was
15not intended to cause economic benefits to accrue to the video service franchisee, the
16forfeiture for a continuing violation may not exceed $500,000 per year.
AB207-SSA1,29,2117
2. A video service franchisee that violates sub. (9) shall, in addition to the
18forfeiture under subd. 1., forfeit an amount not exceeding 3 percent of the video
19service franchisee's total monthly statewide gross revenue, as calculated under sub.
20(7) (a), for each month from the date of the violation until the date that compliance
21is achieved.
AB207-SSA1,29,2522
(b) A court may impose a forfeiture under par. (a) only if the commission of
23justice has given the video service franchisee notice of the violation and the
24opportunity to remedy the violation within 30 days after receipt of the notice and the
25video service franchisee has failed to remedy the violation.
AB207-SSA1,30,2
266.0421 (title)
Access to cable video service.