SB107: Bill Text

The bill creates other requirements for PEG channels, including the following: 1) the bill prohibits municipalities from requiring video service providers and interim cable operators from providing funds, services, programming, facilities, or equipment related to public, educational, or governmental use of channel capacity; 2) the bill imposes specified duties on municipalities regarding the provision of content and programming PEG channels; 3) the bill imposes limits on the amount of transmission line that a video service provider or interim cable operator may be required to provide for making a connection to the municipality's PEG channel programming distribution point; and 4) the bill imposes requirements on video service providers and interim cable operators regarding interconnection that is necessary for transmitting PEG channel programming.

Discrimination and access. In general, the bill prohibits a video service provider from denying access to video service to any group of potential residential customers in a video franchise area because of the race or income of the residents in the local area in which the group resides. The bill creates a defense against an alleged violation of the prohibition regarding income for a video service provider if either of the following are satisfied: 1) no later than three years after the video service provider begins to provide video service, at least 25 percent of households with access to the video service provider's video service are low-income households; or 2) no later than five years after the video service provider begins to provide video service, at least 30 percent of households with access to the video service provider's video service are low-income households. The bill defines "low-income household" as a household whose aggregate income is not more than $35,000, as identified by the United States Census Bureau as of January 1, 2007. Under certain circumstances, the bill allows DFI to grant a video service provider an extension of the time limits specified in the defense.

The bill also imposes access requirements on certain video service providers that use telecommunications facilities to provide video service. The access requirements apply if a video service provider has more than 500,000 basic local exchange access lines in the state. No later than three years after such a video service provider begins to provide video service, the video service provider must provide access to its video service to not less than 25 percent of the households within the video service provider's basic local exchange area that is on file with the Public Service Commission (PSC). In addition, no later than six years after such a video service provider begins to provide video service, or no later than two years after at least 30 percent of households with access to such a video service provider's video service subscribe to the service for six consecutive months, whichever occurs later, the video service provider must provide access to its video service to not less than 50 percent of the households within the video service provider's basic local exchange area that is on file with the PSC. Such a video service provider must file annual reports with DFI regarding progress in complying with the access requirements. Under certain circumstances, the bill allows DFI to grant such a video service provider an extension of the foregoing time limits or a waiver from the need to comply with the foregoing requirements.

Customer service standards. Except as noted below, the bill allows a municipality, upon 90 days' advance notice, to require a video service provider to comply with certain customer service standards set forth in regulations promulgated by the Federal Communications Commission (FCC). The bill prohibits DFI and municipalities from imposing any additional or different customer service standards. In addition, the bill provides that, except for customer service standards promulgated by rule by the Department of Agriculture, Trade and Consumer Protection (DATCP), a video service provider in a municipality may not be subject to any customer service standards if at least one other person offers video or cable service in the municipality, or if the video service provider is subject to effective competition, as determined under FCC regulations. If one of the foregoing conditions is satisfied, a municipality may not impose the FCC customer service standards mentioned above.

Rate regulation. The bill prohibits DFI and municipalities from regulating video or cable service rates of video service providers or interim cable operators that provide service in a municipality if at least one other unaffiliated video service provider or interim cable operator serves the municipality.

Municipal authority. The bill provides that, for purposes of federal law, the state is the exclusive franchising authority for video service providers in this state. In addition, the bill prohibits municipalities from requiring a video service provider to obtain a franchise to provide video service or imposing on video service providers any fee or requirement relating to the construction of a video service network or the provision of video service, except as otherwise authorized under the bill. Also, the bill provides that, if a video service provider pays video service provider fees to a municipality as required under the bill, the municipality may not require the video service provider to pay any compensation allowed under current law for obstructions or excavations, or pay any permit fee, encroachment fee, degradation fee, or any other fee, for the occupation of or work within public rights-of-way.

Rule making and enforcement. The bill prohibits DFI from promulgating any rules interpreting the bill's provisions, or establishing procedures for the bill's requirements. The bill allows a municipality, video service provider, or interim cable operator that is affected by a failure to comply with the bill to bring an action in court to enforce the bill. (Court actions regarding disputes over video service provider fees are subject to additional requirements discussed above.) In addition, the bill allows the Department of Justice to bring an action to enforce the bill.

Other provisions. The bill also does all of the following:

1. The bill allows certain persons to provide video service before they are issued a video service franchise. The persons who are allowed to do so are persons, other than cable operators, who provide video service and who apply to DFI for a video service franchise no later than approximately one month after the bill's effective date.

2. The bill requires a video service provider to give at least ten days advance notice to a municipality before providing video service in the municipality.

3. The bill requires a video service provider to notify DFI about any changes in the information included in an application for a video service franchise, including any expansions of a video franchise area.

4. The bill prohibits state agencies and municipalities from requiring video service providers and interim cable operators to provide institutional networks or equivalent capacity. The bill defines "institutional network" as a network that connects governmental, educational, and community institutions.

5. The bill repeals requirements enforced by DATCP and district attorneys regarding cable television subscriber rights regarding service interruptions and disconnections, repairs, program service deletions, and rate increases.

6. The bill repeals a prohibition under current law on the provision of electronically published news, feature and entertainment material, and electronic advertising service by certain telecommunications utilities.

7. The bill changes other requirements under current law that apply or refer to cable television or cable operators so that they also apply or refer to video service or video service providers. Such requirements include the following: 1) requirements applicable to access to cable service in multiunit dwellings, mobile home parks, and condominiums; 2) requirements applicable to a municipality's construction, ownership, or operation of facilities for providing cable service, telecommunications service, or broadband service; 3) exemptions related to the telephone company tax and the personal property tax; 4) the sales and use tax on the sale of cable television system services; 5) certain requirements enforced by the PSC regarding extensions by utilities and cable operators over the rights-of-way of other utilities and cable operators; and 6) theft of cable service.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

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:

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

SB107,8,6 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, s. 2 Section 2. 20.395 (3) (jh) of the statutes is amended to read:

SB107,8,13 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, s. 3 Section 3. 25.40 (1) (a) 4m. of the statutes is amended to read:

SB107,8,17 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, s. 4 Section 4. 60.23 (24) of the statutes is repealed.

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

SB107, 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:

SB107,9,9 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:

SB107,9,10 1. Public, educational, and governmental access PEG channels.

SB107,9,12 2. Debt service on bonds issued under s. 66.0619 to finance the construction, renovation, or expansion of a cable television system.

SB107,9,14 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.

SB107,9,19 (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, s. 7 Section 7. 66.0420 of the statutes is created to read:

SB107,9,22 66.0420 Video service. (1) Legislative findings. The legislature finds all of the following:

SB107,9,24 (a) Video service brings important daily benefits to state residents by providing news, education, and entertainment.

SB107,10,3 (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.

SB107,10,6 (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.

SB107,10,8 (d) Timely entry into the market is critical for new entrants seeking to compete with existing providers.

SB107,10,11 (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.

SB107,10,13 (f) Minimal regulation of all providers of video service within a uniform framework will promote the investment described in par. (e).

SB107,10,16 (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.

SB107,10,21 (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.

SB107,10,22 (2) Definitions. In this section:

SB107,10,25 (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.

SB107,11,3 (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).

SB107,11,5 (c) "Cable franchise" means a franchise granted under s. 66.0419 (3) (b), 2005 stats.

SB107,11,6 (d) "Cable operator" has the meaning given in 47 USC 522 (5).

SB107,11,7 (e) "Cable service" has the meaning given in 47 USC 522 (6).

SB107,11,8 (f) "Cable system" has the meaning given in 47 USC 522 (7).

SB107,11,9 (g) "Department" means the department of financial institutions.

SB107,11,10 (h) "FCC" means the federal communications commission.

SB107,11,12 (i) "Franchise fee" has the meaning given in 47 USC 542 (g), and includes any compensation required under s. 66.0425.

SB107,11,15 (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:

SB107,11,16 a. Recurring charges for video service.

SB107,11,18 b. Event-based charges for video service, including pay-per-view and video-on-demand charges.

SB107,11,19 c. Rental of set top boxes and other video service equipment.

SB107,11,21 d. Service charges related to the provision of video service, including activation, installation, repair, and maintenance charges.

SB107,11,23 e. Administrative charges related to the provision of video service, including service order and service termination charges.

SB107,11,25 2. Notwithstanding subd. 1., "gross receipts" does not include any of the following:

SB107,12,2 a. Discounts, refunds, and other price adjustments that reduce the amount of compensation received by a video service provider.

SB107,12,5 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.

SB107,12,6 c. Late payment charges.

SB107,12,7 d. Maintenance charges.

SB107,12,12 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.

SB107,12,15 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.

SB107,12,23 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.

SB107,12,25 h. Reimbursement by programmers of marketing costs actually incurred by a video service provider.

SB107,13,5 (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.

SB107,13,9 (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.

SB107,13,11 (m) "Institutional network" means a network that connects governmental, educational, and community institutions.

SB107,13,14 (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.

SB107,13,16 (o) "Issued" means, with respect to a video service franchise, issued or considered to be issued by the department under sub. (3) (f) 2.

SB107,13,19 (p) "Large telecommunications video service provider" means a telecommunications video service provider that has more than 500,000 basic local exchange access lines in this state.

SB107,13,23 (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.

SB107,13,24 (r) "Municipality" means a city, village, or town.

SB107,14,2 (s) "PEG channel" means a channel designated for noncommercial public, educational, or governmental use.

SB107,14,4 (r) "Service tier" means a category of video service for which a separate rate is charged.

SB107,14,6 (u) "State agency" means any board, commission, committee, department, or office in the state government.

SB107,14,9 (v) "Telecommunications video service provider" means a video service provider that uses facilities for providing telecommunications service, as defined in s. 196.01 (9m), also to provide video service.

SB107,14,12 (w) "Video franchise area" means the area or areas described in an application for a video service franchise under sub. (3) (d) 2., as modified, if applicable, in a notification made under sub. (3) (j).

SB107,14,14 (x) "Video programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station.

SB107,14,19 (y) "Video service" means any video programming service, cable service, or service provided via an open video system that complies with 47 USC 573, that is provided through facilities located at least in part in public rights-of-way, without regard to delivery technology, including Internet protocol technology or any other technology. "Video service" does not include any of the following:

SB107,14,21 1. Video programming provided by a commercial mobile radio service provider, as defined in s. 196.01 (2g).

SB107,14,24 2. Video programming provided solely as part of and via a service that enables users to access content, information, electronic mail, or any other service offered over the public Internet.

SB107,14,25 (z) "Video service franchise" means a franchise issued under sub. (3) (f) 2.

SB107,15,4 (zb) "Video service network" means wireline facilities, or any component thereof, located at least in part in the public right-of-way that deliver video service, without regard to delivery technology, including Internet protocol technology or any other technology. "Video service network" includes a cable system.

SB107,15,7 (zg) "Video service provider" means a person, including an incumbent cable operator, who is issued a video service franchise or an affiliate, successor, or assign of such a person.