SB107: Bill Text

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.

SB107,15,9 (zm) "Video service provider fee" means the fee paid by a video service provider under sub. (7).

SB107,15,13 (3) Authority to provide video service. (a) In general. Except for an interim cable operator, and except as provided in par. (c), no person may provide video service in this state unless the department has issued a video service franchise to the person and the person has provided the notice required under par. (h).

SB107,15,16 (b) Incumbent cable operators. 1. A municipality may not renew or extend the cable franchise of an incumbent cable operator that expires after the effective date of this subdivision .... [revisor inserts date].

SB107,15,17 2. An incumbent cable operator may do one of the following:

SB107,15,19 a. Continue to provide cable service as an interim cable operator until the cable franchise expires.

SB107,16,2 b. Apply for a video service franchise. If an incumbent cable operator applies for a video service franchise, the cable franchise shall terminate and have no effect upon issuance of the video service franchise. Upon termination of the cable franchise, the municipality that granted the franchise shall, at the request of the incumbent cable operator, surrender, return, or take such other action as may be necessary to nullify any bond, letter of credit, or similar instrument intended to secure the performance of the incumbent cable operator under the cable franchise.

SB107,16,13 3. An incumbent cable operator whose cable franchise expires after the effective date of this subdivision .... [revisor inserts date], may not, after expiration of the cable franchise, provide video service in this state unless the incumbent cable operator applies for a video service franchise under subd. 2. b. and, upon issuance of the video service franchise, provides the notice required under par. (h). An incumbent cable operator whose cable franchise expired before the effective date of this subdivision .... [revisor inserts date], and who was providing cable service immediately before the effective date of this act, may continue to provide cable service if, no later than the first day of the 2nd month beginning after the effective date of this subdivision .... [revisor inserts date], the incumbent cable operator applies for a video service franchise under subd. 2. b.

SB107,16,19 (c) Other providers. If a person, other than an incumbent cable operator, who was providing video service immediately before the effective date of this paragraph .... [revisor inserts date], applies, no later than the first day of the 2nd month beginning after the effective date of this paragraph .... [revisor inserts date], for a video franchise, the person may provide video service until the department issues a video franchise to the person.

SB107,16,21 (d) Application. An applicant for a video service franchise shall submit an application to the department that consists of all of the following: