Amendment SSA1-AB207

AB207-SSA1,16,12 (b) Transmission duties. 1. If a municipality produces or maintains PEG channel programming in a manner or form that is compatible with a video service franchisee's video service network and that permits the video service franchisee to comply with the requirements of subd. 2., the municipality shall transmit the programming to the video service franchisee in that manner or form. If the municipality does not produce or maintain PEG channel programming in such manner or form, the video service franchisee shall be responsible for any changes in the manner or form of the transmission that are necessary to make PEG channel programming compatible with the technology or protocol used by the video service franchisee to deliver services. If a video service franchisee is required to make such changes to the manner or form of the transmission, the municipality shall provide reasonable access to the video service franchisee that allows the video service franchisee to transmit the PEG channel programming in an economical manner subject to the requirements of subd. 2.

AB207-SSA1,16,18 2. A video service franchisee shall retransmit PEG channels to its subscribers with visual and audio quality and functionality that is equivalent, from the viewing perspective of the subscriber, to that of commercial channels carried on the video service franchisee's basic video service offerings or service tiers and without the need for any equipment other than the equipment necessary to receive the video service franchisee's basic video service offerings or service tiers.

AB207-SSA1,17,2 3. A video service franchisee shall carry PEG channels on its basic video service. To the extent feasible, PEG channels may not be separated numerically from other channels carried on the video service franchisee's basic video service, and the channel numbers for PEG channels shall be the same channel numbers used by an incumbent cable operator unless prohibited by federal law. After the initial designation of PEG channel numbers, the channel numbers may not be changed without the agreement of the municipality or the municipality's PEG channel manager, unless the change is required by federal law. Each channel shall be capable of carrying a National Television Systems Committee television signal.

AB207-SSA1,17,5 (c) Fees prohibited. A video service franchisee may not charge a municipality, a municipality's PEG channel manager, or a municipality's PEG channel programming providers any fee for complying with this subsection.

AB207-SSA1,17,24 (d) Interconnection. Video service franchisees and incumbent cable operators shall negotiate in good faith amongst themselves to interconnect their video service networks, if needed, for the purpose of complying with this subsection. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Video service franchisees and incumbent cable operators shall provide such interconnection on reasonable terms and conditions and may not withhold such interconnection. If video service franchisees and incumbent cable operators cannot reach a mutually acceptable interconnection agreement, a municipality may require an incumbent cable operator to allow a video service franchisee to interconnect its video service network with the incumbent cable operator's video service network at a technically feasible point on their video service networks. If no technically feasible point for interconnection between a video service franchisee and incumbent cable operator is available, the video service franchisee and incumbent cable operator shall each make an interconnection available to PEG channel local origination points and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by a video service franchisee unless otherwise agreed to by the parties. The interconnection required by this paragraph shall be completed within the deadline for taking action required under par. (a) 1. that is specified in par. (a) 1. (intro.).

AB207-SSA1,18,6 (e) PEG channel usage. PEG channels required by a municipality under this subsection shall be for the exclusive use of the municipality, or the municipality's PEG channel manager, to provide public, education, and government programming, and may be used only for noncommercial purposes, except that advertising, underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding public, education, and government access related activities.

AB207-SSA1,18,14 (f) PEG channel listing. A video service franchisee shall provide a listing of PEG channels on channel cards and menus provided to subscribers in a manner equivalent to other channels if the video service franchisee uses such cards and menus. A video service franchisee shall provide a listing of PEG channel programming on its electronic program guide if such a guide is used by the video service franchisee. A municipality shall provide a video service franchisee or an agent designated by a video service franchisee with program schedules and information in a timely manner.

AB207-SSA1,18,18 (g) Programming. 1. A person that produces programming for broadcast on a PEG channel is solely responsible for the content of the programming. A video service franchisee may not exercise any editorial control over any programming on any PEG channel.

AB207-SSA1,18,20 2. A video service franchisee is not subject to any civil or criminal liability for any program carried on any PEG channel.

AB207-SSA1,18,23 (h) Enforcement. In an action to enforce this subsection, a court may not prohibit a video service franchisee from providing video service or require a video service franchisee to terminate video service.

AB207-SSA1,19,11 (6) Emergency alert system. A video service franchisee shall comply with all requirements of the federal communications commission regarding the distribution and notification of federal, state, and local emergency messages over the emergency alert system that apply to cable operators. A video service franchisee shall provide a requesting municipality with sufficient information regarding how to submit, via telephone or Web site listing, a local emergency alert for distribution over its video service network. A municipality that requires a municipally regulated cable operator to comply with emergency alert system message or service requirements that are in addition to the requirements imposed under this subsection may impose such additional requirements on a video service franchisee that provides video service within the municipality. A video service franchisee may provide a local emergency alert to an area larger than the boundaries of the municipality issuing the emergency alert.

AB207-SSA1,19,17 (7) Municipality fees. (a) Gross revenue calculation. 1. `Generally.' Gross revenue of a video service franchisee consists of all consideration of any kind or nature, including cash, credits, property, and the monetary value of in-kind contributions, received by the video service franchisee for the operation of a video service network to provide video service within the video service franchisee's video service area that is located within a municipality.

AB207-SSA1,19,19 2. `Inclusions.' Gross revenue of a video service franchisee includes all of the following:

AB207-SSA1,19,20 a. Recurring charges for video service.

AB207-SSA1,19,22 b. Event-based charges for video service, including pay-per-view and video-on-demand charges.

AB207-SSA1,19,23 c. Rental of set top boxes and other video service equipment.

AB207-SSA1,19,25 d. Service charges related to the provision of video service, including activation, installation, and repair charges.

AB207-SSA1,20,2 e. Administrative charges related to the provision of video service, including service order and service termination charges.

AB207-SSA1,20,4 f. Late payment fees or charges, insufficient funds check charges, and other charges assessed to recover the costs of collecting delinquent payments.

AB207-SSA1,20,12 g. A pro rata portion of all revenue that is derived by the video service franchisee or its affiliates pursuant to regional or national compensation arrangements for advertising, promoting, or exhibiting any products or services, and that is also derived from the operation of the video service franchisee's video service network to provide video service within a municipality. The pro rata portion shall be determined by dividing the number of the video service franchisee's subscribers in the municipality by the total number of the video service franchisee's subscribers in the regional or national area covered by the compensation arrangement.

AB207-SSA1,20,16 h. Commissions that are received by the video service franchisee as compensation for promoting or exhibiting any products or services on the video service franchisee's video service network, such as a home shopping or similar channel.

AB207-SSA1,20,17 i. Video service franchise fees.

AB207-SSA1,20,19 3. `Exclusions.' Gross revenue of a video service franchisee does not include any of the following:

AB207-SSA1,20,20 a. Revenues not actually received, including revenues that are billed.

AB207-SSA1,20,23 b. Refunds, discounts, or other price adjustments that reduce the amount of gross revenue received by the video service franchisee to the extent that the refund, discount, or other price adjustment is attributable to video service.

AB207-SSA1,21,3 c. Revenue from the sale of video service for resale to a purchaser that is required to collect a video service franchise fee from the purchaser's subscribers, but only if the purchaser certifies in writing that the purchaser will resell the service within the municipality to which the video service franchise fee is payable and that the purchaser will pay the video service franchise fee to the municipality.

AB207-SSA1,21,7 d. Any tax or fee of general applicability imposed upon the subscribers or the transaction by a city, state, federal, or any other governmental entity and collected by the video service franchisee and required to be remitted to the taxing entity, including sales and use taxes.

AB207-SSA1,21,8 e. Security deposits collected from subscribers.

AB207-SSA1,21,11 f. Amounts paid by subscribers to home shopping or similar vendors for merchandise sold through any home shopping channel offered as part of the video service.

AB207-SSA1,21,18 4. `Bundled services.' a. Except as provided in subd. 4. b., if a video service is bundled, packaged, or integrated functionally with other services, capabilities, or applications, the portion of the video service franchisee's revenue that is attributable to the other services, capabilities, or applications shall be included in the calculation of the video service franchisee's gross revenue unless the video service franchisee can reasonably identify the division or exclusion of the revenue from its books and records that are kept in the regular course of business.

AB207-SSA1,22,3 b. Gross revenue of a video service franchisee does not include any revenue received from nonvideo services, including revenue received from telecommunications services, information services, or the provision of directory or Internet advertising, including yellow pages, white pages, banner advertisement, and electronic publishing, or any other revenues attributed by a video service franchisee to nonvideo service in accordance with the video service franchisee's books and records kept in the regular course of business and in accordance with any applicable laws, rules, regulations, standards, or orders. This subd. 4. b. applies regardless of whether the nonvideo services are bundled, packaged, or functionally integrated with video services.

AB207-SSA1,22,8 5. `Affiliates.' Revenue of an affiliate of a video service franchisee shall be included in the video service franchisee's gross revenue to the extent the treatment of the revenue as revenue of the affiliate rather than of the video service franchisee has the effect of evading the requirement to pay a video service franchise fee or PEG support fee.

AB207-SSA1,22,10 (b) Notice. No less than 10 days before offering video service in a municipality, a video service franchisee shall notify the municipality.

AB207-SSA1,22,16 (c) Video service franchise fee. 1. In any municipality in which a video service franchisee offers video service on a commercial basis, the video service franchisee shall, upon request by such a municipality, be liable for and pay a video service franchise fee to the municipality. The video service franchise fee shall equal one of the following percentages of the video service franchisee's gross revenues, whichever is less:

AB207-SSA1,22,17 a. Five percent.

AB207-SSA1,22,20 b. The percentage of revenues that the municipality required, on the effective date of this subd. 1. b. .... [revisor inserts date], an incumbent cable operator to pay as a franchise fee under s. 66.0419 (3) (c).

AB207-SSA1,22,23 2. Payment of the video service franchise fee is due on a quarterly basis 45 days after the close of the calendar quarter. If mailed, the video service franchise fee is considered paid on the date it is postmarked.

AB207-SSA1,23,2 3. Except as otherwise provided in this section or s. 66.0425 or 182.017 (1), a municipality may not demand any additional fees or charges from a video service franchisee and may not demand the use of any other calculation method other than allowed under this subsection.

AB207-SSA1,23,8 (d) PEG support fee. 1. A video service franchisee shall, upon request by a municipality in which the video service franchisee provides video service, pay to the municipality or the municipality's PEG channel manager, as support for PEG channels, a PEG support fee equal to not less than 1 percent of the video service franchisee's gross revenue or the percentage of the video service franchisee's gross revenue that results from performing the following calculation, whichever is greater:

AB207-SSA1,23,16 a. Determining the aggregate annual amount that each incumbent cable operator that provides cable service in the video service franchisee's service area is obligated to pay the municipality or its PEG channel manager under a cable franchise, agreement, or contract in effect on January 1, 2007, including any payments required under sub. (3) (b) 2. b., and including the amount resulting by dividing the total amount of any lump sum payments required to be made over the term of such franchise, contract, or agreement by the number of years of the term of the franchise, contract, or agreement.

AB207-SSA1,23,18 b. Determining the aggregate annual amount of gross revenue during the preceding calendar year of each incumbent cable operator specified in subd. 1. a.

AB207-SSA1,23,20 c. Determining the percentage that results from dividing the amount determined under subd. 1. a. by the amount determined under subd. 1. b.

AB207-SSA1,24,2 2. PEG support fees are due on a quarterly basis and must be paid no later than 45 days after the close of a calendar quarter. PEG support fees are first due for the quarter that includes the 90th day after a municipality requests payment of the fees or the date on which the video service franchisee begins to provide video service in the municipality, whichever is later. Each payment shall include a statement explaining the basis for the calculation of the PEG support fee. If mailed, the PEG support fee is considered paid on the date it is postmarked.

AB207-SSA1,24,6 3. A municipality may require a video service franchisee to provide the municipality or the municipality's PEG channel manager with any information sufficient to calculate the PEG support fee required under this paragraph or the monetary payments for PEG channels required under sub. (3) (b) 2. b.

AB207-SSA1,24,9 (e) Bill itemization. A video service franchisee may identify and collect the amount of the video service franchise fee or PEG support fee as separate line items on the regular bill of each subscriber.

AB207-SSA1,24,11 (f) Accounting. All determinations and computations under this subsection shall be made pursuant to generally accepted accounting principles.

AB207-SSA1,24,19 (8) Audits; payments. (a) Upon receiving a notice under sub. (4) (g) 2. that a video service franchisee has received a video service franchise, a municipality shall notify the video service franchisee of the municipality's requirements for the video service franchisee to submit to an audit of its books and records. Such requirements shall be the same as those that apply to incumbent cable operators providing video service in the municipality on the effective date of this paragraph .... [revisor inserts date]. If there are no such incumbent cable operators, the municipality may impose reasonable audit requirements.

AB207-SSA1,24,21 (b) Acceptance by a municipality of amounts remitted by a video service franchise shall not be construed as an accord that the amounts are correct.

AB207-SSA1,24,23 (c) Any additional amount due after an audit shall be paid within 30 days after the municipality's submission of an invoice for the sum.

AB207-SSA1,24,24 (9) Discrimination; access to services. (a) Definitions. In this subsection:

AB207-SSA1,25,3 1. "Basic local exchange service area" means the area on file with the commission in which a large telecommunications video service franchisee provides basic local exchange service, as defined in s. 196.01 (1g).

AB207-SSA1,25,5 2. "Large telecommunications video service franchisee" means any of the following:

AB207-SSA1,25,8 a. A video service franchisee that is a telecommunications video service provider and that, on January 1, 2007, had more than 500,000 basic local exchange access lines in this state.

AB207-SSA1,25,9 b. An affiliate of a video service franchisee described under subd. 2. a.

AB207-SSA1,25,12 3. "Telecommunications video service provider" means a person that uses facilities for providing telecommunications service, as defined in s. 196.01 (9m), also to provide video service.

AB207-SSA1,25,24 (b) Access determination. For purposes of this subsection, a video service franchisee provides access to its video service to a household if the video service franchisee is capable of providing video service at the household address using any technology, other than direct-to-home satellite service, that provides two-way broadband Internet capability, and video programming, content, and functionality which are demonstrably similar to video programming, content, and functionality provided through the video service franchisee's video service system, regardless of whether any customer at the household address has ordered service or whether the owner or landlord or other responsible person has granted access to the household address. If more than one technology is used, access is provided only if the technologies provide similar two-way broadband Internet capability and similar video programming.

AB207-SSA1,26,4 (c) Discrimination prohibited. 1. No video service franchisee may deny access to video service to any group of potential residential customers in the video service franchisee's video service area because of the race or income of the residents in the local area in which the group resides.

AB207-SSA1,26,6 2. It is a defense to an alleged violation of subd. 1. based on income if the video service franchisee has met either of the following conditions:

AB207-SSA1,26,10 a. No later than 3 years after the date on which the video service franchisee began providing video service under this section, at least 25 percent of households with access to the video service franchisee's video service are low-income households.

AB207-SSA1,26,14 b. No later than 5 years after the date on which the video service franchisee began providing video service under this section, at least 30 percent of the households with access to the video service franchisee's video service are low-income households.

AB207-SSA1,26,18 (d) Access requirements. 1. A large telecommunications video service franchisee shall provide access to its video service to the following percentages of households within the large telecommunications video service franchisee's basic local exchange service area:

AB207-SSA1,26,21 a. Not less than 35 percent no later than 3 years after the date on which the large telecommunications video service franchisee began providing video service under this section.

AB207-SSA1,27,2 b. Not less than 50 percent no later than 5 years after the date on which the large telecommunications video service franchisee began providing video service under this section, or no later than 2 years after at least 30 percent of households with access to the large telecommunications video service franchisee's video service subscribe to the service for 6 consecutive months, whichever occurs later.

AB207-SSA1,27,5 2. A large telecommunications video service franchisee shall file an annual report with the commission regarding the large telecommunications video service franchisee's progress in complying with subd. 1.

AB207-SSA1,27,12 (e) Extensions and waivers. A video service franchisee may apply to the commission for an extension of any time limit specified in par. (c) 2. or (d) or a waiver of a requirement to comply with par. (d). The commission shall grant the extension or waiver if the video service franchisee demonstrates to the satisfaction of the commission that the video service franchisee has made substantial and continuous efforts to comply with the requirements of this subsection and that the extension or waiver is necessary due to one or more of the following factors:

AB207-SSA1,27,14 1. The video service franchisee's inability to obtain access to public and private rights-of-way under reasonable terms and conditions.

AB207-SSA1,27,16 2. Developments and buildings that are not subject to competition because of exclusive service arrangements.

AB207-SSA1,27,18 3. Developments and buildings that are not accessible using reasonable technical solutions under commercially reasonable terms and conditions.

AB207-SSA1,27,19 4. Natural disasters.

AB207-SSA1,27,20 5. Other factors beyond the control of the video service franchisee.

AB207-SSA1,27,24 (f) Alternative technologies. A video service franchisee may satisfy the requirements of this subsection through the use of an alternative technology, other than satellite service, but only if the alternative technology provides access to PEG channels and messages broadcast over the emergency alert system.

AB207-SSA1,28,7 (g) Limitations. Notwithstanding any other provision of this section, a telecommunications video service provider is not required to provide video service outside the provider's basic local exchange service area, and a video service franchisee that is an incumbent cable operator is not required to provide video service outside the area in which the incumbent cable operator provided cable service at the time the commission issued a video service franchise to the incumbent cable operator.

AB207-SSA1,28,15 (h) Broadband service. 1. If a large telecommunications video service franchisee does not provide access to broadband service to 90 percent of the households in the large telecommunications video service franchisee's telecommunications service area by the first day of the 18th month beginning after the effective date of this subdivision .... [revisor inserts date], the large telecommunications video service franchisee shall pay to the commission, no later than the first day of the 19th month beginning after the effective date of this subdivision .... [revisor inserts date], a sum of $7,500,000.

AB207-SSA1,28,20 2. If a large telecommunications video service franchisee pays the sum to the commission under subd. 1., the commission shall use that sum to make grants to persons to assist in the deployment of broadband service to underserved areas in this state. The commission shall promulgate rules establishing requirements and procedures for making the grants.

AB207-SSA1,29,2 (10) Enforcement. (a) The commission may investigate possible violations of this section, except sub. (9) (c) or (d), by video service franchisees. If the commission determines that there is a reason to believe that a video service franchisee has violated or is about to violate this section, except sub. (9) (c) or (d), the commission may bring an action against the video service franchisee to obtain, except as provided in sub. (5) (h), injunctive relief and civil penalties for any act, policy, or practice by the video service franchisee that violates this section, except sub. (9) (c) or (d).

AB207-SSA1,29,5 (b) The commission may suspend or revoke a video service franchisee's video service franchise if the video service franchisee fails to comply with this section or s. 100.209 after a reasonable time to achieve compliance has passed.

AB207-SSA1,29,6 (11) Forfeitures. (a) Subject to par. (b):

AB207-SSA1,29,16 1. A video service franchisee that violates this section shall forfeit no more than $30,000 for each violation, or .00825 percent of the video service franchisee's statewide gross revenue, as calculated under sub. (7) (a), whichever is greater. Each violation of this section is a separate violation, except that if the same act or omission violates more than one provision of this section, only one forfeiture may be imposed for such act or omission. Each day that a violation continues is a separate violation, except that, if the violation was not intentional, did not create substantial risk to the safety of the video service franchisee's employees or customers or the public, and was not intended to cause economic benefits to accrue to the video service franchisee, the forfeiture for a continuing violation may not exceed $500,000 per year.

AB207-SSA1,29,21 2. A video service franchisee that violates sub. (9) shall, in addition to the forfeiture under subd. 1., forfeit an amount not exceeding 3 percent of the video service franchisee's total monthly statewide gross revenue, as calculated under sub. (7) (a), for each month from the date of the violation until the date that compliance is achieved.

AB207-SSA1,29,25 (b) A court may impose a forfeiture under par. (a) only if the commission of justice has given the video service franchisee notice of the violation and the opportunity to remedy the violation within 30 days after receipt of the notice and the video service franchisee has failed to remedy the violation.

AB207-SSA1, s. 11 Section 11. 66.0421 (title) of the statutes is amended to read:

AB207-SSA1,30,2 66.0421 (title) Access to cable video service.

AB207-SSA1, s. 12 Section 12. 66.0421 (1) (a) of the statutes is repealed.

AB207-SSA1, s. 13 Section 13. 66.0421 (1) (b) of the statutes is repealed.

AB207-SSA1, s. 14 Section 14. 66.0421 (1) (c) of the statutes is created to read:

AB207-SSA1,30,6 66.0421 (1) (c) "Video service" has the meaning given in s. 66.0420 (2) (v).

AB207-SSA1, s. 15 Section 15. 66.0421 (1) (d) of the statutes is created to read:

AB207-SSA1,30,10 66.0421 (1) (d) "Video service provider" means a municipally regulated cable operator, as defined in s. 66.0420 (2) (o), or a video service franchisee, as defined in s. 66.0420 (2) (y).

AB207-SSA1, s. 16 Section 16. 66.0421 (2) of the statutes is amended to read: