Amendment SSA1-SB107

LRBs0062/1

MDK:cjs:nwn

2007 - 2008 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO 2007 SENATE BILL 107

April 20, 2007 - Offered by Committee on Commerce, Utilities and Rail.

SB107-SSA1,2,5 An Act to repeal 60.23 (24), 66.0419 (title), (1), (2) and (3), 66.0419 (4) and (5), 66.0421 (1) (a), 66.0421 (1) (b), 66.0422 (1) (a), 100.209, 196.04 (4) (a) 1. and 196.204 (7); to renumber 196.04 (4) (a) 2. a. to e.; to renumber and amend 66.0419 (3m), 182.017 (1) and 943.46 (1) (a); to consolidate, renumber and amend 196.04 (4) (a) (intro.) and 2. (intro.); to amend 11.01 (17g), 20.395 (3) (jh), 25.40 (1) (a) 4m., 66.0421 (title), 66.0421 (2), 66.0421 (3), 66.0421 (4), 66.0422 (title), 66.0422 (2) (intro.), 66.0422 (3) (b), 66.0422 (3n), 70.111 (25), 76.80 (3), 77.52 (2) (a) 12., 100.195 (1) (c) 2., 165.25 (4) (ar), 182.017 (3), 182.017 (5), 182.017 (6), 196.01 (1g), 196.01 (9m), 196.04 (4) (b), 196.195 (5), 196.203 (1m), 196.203 (3) (b) (intro.), 196.203 (3) (b) 2., 196.203 (3) (c), 196.203 (3) (d), 196.203 (3) (e) 1. (intro.), 196.50 (1) (b) 2. e., 196.50 (1) (c), 196.85 (1m) (b), 943.46 (title), 943.46 (2) (a), 943.46 (2) (b), 943.46 (2) (c), 943.46 (2) (d), 943.46 (2) (e), 943.46 (2) (f), 943.46 (2) (g) and 943.46 (5); to repeal and recreate 100.195 (1) (h) 1. and 196.01 (1p); and to create 66.0420, 66.0421 (1) (c), 66.0421 (1) (d), 66.0422 (1) (d), 182.017 (1g), 182.017 (8), 182.017 (9), 196.01 (12g), 196.01 (12r), 196.85 (1m) (d), 943.46 (1) (d) and 943.46 (1) (e) of the statutes; relating to: regulation of cable television and video service providers and granting rule-making authority.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB107-SSA1, s. 1 Section 1. 11.01 (17g) of the statutes is amended to read:

SB107-SSA1,2,11 11.01 (17g) "Public access channel" means a PEG channel that is required under a franchise granted under s. 66.0419 (3) (b) by a city, village, or town to a cable operator, as defined in s. 66.0419 (2) (b), and, as defined in s. 66.0420 (2) (s), that is used for public access purposes, but does not include a PEG channel that is used for governmental or educational purposes.

SB107-SSA1, s. 2 Section 2. 20.395 (3) (jh) of the statutes is amended to read:

SB107-SSA1,2,18 20.395 (3) (jh) Utility facilities within highway rights-of-way, state funds. From the general fund, all moneys received from telecommunications providers, as defined in s. 196.01 (8p), or cable television telecommunications service providers, as defined in s. 196.01 (1r), for activities related to locating, accommodating, operating, or maintaining utility facilities within highway rights-of-way, for such purposes.

SB107-SSA1, s. 3 Section 3. 25.40 (1) (a) 4m. of the statutes is amended to read:

SB107-SSA1,2,22 25.40 (1) (a) 4m. Moneys received from telecommunications providers or cable television telecommunications service providers that are deposited in the general fund and credited to the appropriation account under s. 20.395 (3) (jh).

SB107-SSA1, s. 4 Section 4. 60.23 (24) of the statutes is repealed.

SB107-SSA1, s. 5 Section 5. 66.0419 (title), (1), (2) and (3) of the statutes are repealed.

SB107-SSA1, s. 6 Section 6. 66.0419 (3m) of the statutes is renumbered 66.0420 (12), and 66.0420 (12) (title), (a) and (b) 2., as renumbered, are amended to read:

SB107-SSA1,3,8 66.0420 (12) (title) Municipal cable television system costs. (a) Except for costs for any of the following, a municipality that owns and operates a cable television system, or an entity owned or operated, in whole or in part, by such a municipality, may not require nonsubscribers of the cable television system to pay any of the costs of the cable television system:

SB107-SSA1,3,9 1. Public, educational, and governmental access PEG channels.

SB107-SSA1,3,11 2. Debt service on bonds issued under s. 66.0619 to finance the construction, renovation, or expansion of a cable television system.

SB107-SSA1,3,13 3. The provision of broadband service by the cable television system, if the requirements of s. 66.0422 (3d) (a), (b), or (c) are satisfied.

SB107-SSA1,3,18 (b) 2. A majority of the governing board of the municipality votes to submit the question of supporting the operation of a cable television system by the municipality to the electors in an advisory referendum and a majority of the voters in the municipality voting at the advisory referendum vote to support the operation of a cable television system by the municipality.

SB107-SSA1, s. 7 Section 7. 66.0419 (4) and (5) of the statutes are repealed.

SB107-SSA1, s. 8 Section 8. 66.0420 of the statutes is created to read:

SB107-SSA1,3,22 66.0420 Video service. (1) Legislative findings. The legislature finds all of the following:

SB107-SSA1,3,24 (a) Video service brings important daily benefits to state residents by providing news, education, and entertainment.

SB107-SSA1,4,3 (b) Uniform regulation of all video service providers by this state is necessary to ensure that state residents receive adequate and efficient video service and to protect and promote the public health, safety, and welfare.

SB107-SSA1,4,6 (c) Fair competition in the provision of video service will result in new and more video programming choices for consumers in this state, and a number of providers have stated their desire to provide that service.

SB107-SSA1,4,8 (d) Timely entry into the market is critical for new entrants seeking to compete with existing providers.

SB107-SSA1,4,11 (e) This state's economy would be enhanced by additional investment in communications and video programming infrastructure by existing and new providers of video service.

SB107-SSA1,4,13 (f) Minimal regulation of all providers of video service within a uniform framework will promote the investment described in par. (e).

SB107-SSA1,4,16 (g) Ensuring that existing providers of video service are subject to the same regulatory requirements and procedures as new entrants will ensure fair competition among all providers.

SB107-SSA1,4,21 (h) This section is an enactment of statewide concern for the purpose of providing uniform regulation of video service that promotes investment in communications and video infrastructures and the continued development of this state's video service marketplace within a framework that is fair and equitable to all providers.

SB107-SSA1,4,22 (2) Definitions. In this section:

SB107-SSA1,4,25 (a) "Affiliate", when used in relation to any person, means another person who owns or controls, is owned or controlled by, or is under common ownership or control with such person.

SB107-SSA1,5,3 (b) "Basic local exchange service area" means the area on file with the public service commission in which a telecommunications video service provider provides basic local exchange service, as defined in s. 196.01 (1g).

SB107-SSA1,5,5 (c) "Cable franchise" means a franchise granted under s. 66.0419 (3) (b), 2005 stats.

SB107-SSA1,5,6 (d) "Cable operator" has the meaning given in 47 USC 522 (5).

SB107-SSA1,5,7 (e) "Cable service" has the meaning given in 47 USC 522 (6).

SB107-SSA1,5,8 (f) "Cable system" has the meaning given in 47 USC 522 (7).

SB107-SSA1,5,9 (g) "Department" means the department of financial institutions.

SB107-SSA1,5,10 (h) "FCC" means the federal communications commission.

SB107-SSA1,5,12 (i) "Franchise fee" has the meaning given in 47 USC 542 (g), and includes any compensation required under s. 66.0425.

SB107-SSA1,5,15 (j) 1. "Gross receipts" means all revenues received by and paid to a video service provider by subscribers residing within a municipality for video service, including all of the following:

SB107-SSA1,5,16 a. Recurring charges for video service.

SB107-SSA1,5,18 b. Event-based charges for video service, including pay-per-view and video-on-demand charges.

SB107-SSA1,5,19 c. Rental of set top boxes and other video service equipment.

SB107-SSA1,5,21 d. Service charges related to the provision of video service, including activation, installation, repair, and maintenance charges.

SB107-SSA1,5,23 e. Administrative charges related to the provision of video service, including service order and service termination charges.

SB107-SSA1,5,25 2. Notwithstanding subd. 1., "gross receipts" does not include any of the following:

SB107-SSA1,6,2 a. Discounts, refunds, and other price adjustments that reduce the amount of compensation received by a video service provider.

SB107-SSA1,6,5 b. Uncollectible fees, except that any uncollectible fees that are written off as bad debt but subsequently collected shall be included as gross receipts in the period collected, less the expenses of collection.

SB107-SSA1,6,6 c. Late payment charges.

SB107-SSA1,6,7 d. Maintenance charges.

SB107-SSA1,6,12 e. Amounts billed to video service subscribers to recover taxes, fees, surcharges or assessments of general applicability or otherwise collected by a video service provider from video service subscribers for pass through to any federal, state, or local government agency, including video service provider fees and regulatory fees paid to the FCC under 47 USC 159.

SB107-SSA1,6,15 f. Revenue from the sale of capital assets or surplus equipment not used by the purchaser to receive video service from the seller of those assets or surplus equipment.

SB107-SSA1,6,23 g. Charges, other than those described in subd. 1., that are aggregated or bundled with amounts described in subd. 1. and billed to video service subscribers, including but not limited to any revenues received by a video service provider or its affiliates for telecommunications services, information services, or the provision of directory or Internet advertising, including yellow pages, white pages, banner advertisement, and electronic publishing, if a video service provider can reasonably identify such charges on books and records kept in the regular course of business or by other reasonable means.

SB107-SSA1,6,25 h. Reimbursement by programmers of marketing costs actually incurred by a video service provider.

SB107-SSA1,7,5 (k) "Household" means a house, apartment, mobile home, group of rooms, or single room that is intended for occupancy as separate living quarters. For purposes of this paragraph, "separate living quarters" are those in which the occupants live and eat separately from any other persons in the building and which have direct access from the outside of the building or through a common hall.

SB107-SSA1,7,9 (L) "Incumbent cable operator" means a person who, immediately before the effective date of this paragraph, was providing cable service under a cable franchise, expired cable franchise, or cable franchise extension, or under an ordinance or resolution adopted or enacted by a municipality.

SB107-SSA1,7,11 (m) "Institutional network" means a network that connects governmental, educational, and community institutions.

SB107-SSA1,7,14 (n) "Interim cable operator" means an incumbent cable operator that elects to continue to provide cable service under a cable franchise as specified in sub. (3) (b) 2. a.

SB107-SSA1,7,16 (o) "Issued" means, with respect to a video service franchise, issued or considered to be issued by the department under sub. (3) (f) 2.

SB107-SSA1,7,20 (p) "Large telecommunications video service provider" means a telecommunications video service provider that, on January 1, 2007, had more than 500,000 basic local exchange access lines in this state or an affiliate of such a telecommunication video service provider.

SB107-SSA1,7,24 (q) "Low-income household" means any individual or group of individuals living together as one economic unit in a household whose aggregate annual income is not more than $35,000, as identified by the United States Census Bureau as of January 1, 2007.

SB107-SSA1,7,25 (r) "Municipality" means a city, village, or town.

SB107-SSA1,8,2 (s) "PEG channel" means a channel designated for noncommercial public, educational, or governmental use.

SB107-SSA1,8,3 (sm) "Qualified cable operator" means any of the following:

SB107-SSA1,8,6 1. A cable operator that has provided cable service in this state for at least 3 years prior to applying for a video service franchise and that has never had a cable franchise revoked by a municipality.

SB107-SSA1,8,7 2. An affiliate of a cable operator specified in subd. 1.

SB107-SSA1,8,10 3. A cable operator that, on the date that it applies for a video service franchise, is one of the 10 largest video service providers in the United States as measured by the total number of video service subscribers nationally.

SB107-SSA1,8,11 4. A parent corporation of a cable operator specified in subd. 3.

SB107-SSA1,8,13 (t) "Service tier" means a category of video service for which a separate rate is charged.

SB107-SSA1,8,15 (u) "State agency" means any board, commission, department, or office in the state government.

SB107-SSA1,8,16 (um) "Telecommunications utility" has the meaning given in s. 196.01 (10).