LRB-0945/8
MDK:bjk&kjf:ph
2009 - 2010 LEGISLATURE
December 8, 2009 - Introduced by Representatives Hebl, Sinicki, Smith, Molepske
Jr., Black, Berceau, Turner, Hintz, Pope-Roberts, Roys, Steinbrink,
Kessler, Pocan, Hilgenberg, Hixson, Van Akkeren, Schneider, Benedict,
Vruwink, Bies, Hubler, Sherman, Garthwaite, Parisi, A. Williams and
Hraychuck, cosponsored by Senators Vinehout, Miller, Robson, Risser and
Carpenter. Referred to Committee on Energy and Utilities.
AB606,2,5
1An Act to repeal 66.0420 (2) (g), 66.0420 (3) (c), 66.0420 (7) (a) 2m. and 66.0420
2(7) (b);
to renumber and amend 66.0420 (3) (i);
to amend 20.115 (1) (jb),
320.155 (1) (title), 20.155 (1) (g), 66.0420 (3) (a), 66.0420 (3) (d) (intro.), 66.0420
4(3) (d) 1., 66.0420 (3) (e) 1., 66.0420 (3) (e) 2. b., 66.0420 (3) (f) (title), 66.0420
5(3) (f) 1., 66.0420 (3) (f) 2., 66.0420 (3) (f) 4., 66.0420 (3) (g), 66.0420 (3) (h),
666.0420 (3) (j), 66.0420 (5) (a) 3., 66.0420 (5) (b) 1. a., 66.0420 (5) (b) 2., 66.0420
7(5) (d) 1., 66.0420 (7) (a) 1., 66.0420 (7) (e) 2., 66.0420 (7) (em) (title), 66.0420
8(7) (em) 1., 66.0420 (7) (em) 2., 66.0420 (7) (em) 3., 66.0420 (7) (em) 4., 66.0420
9(7) (f), 66.0420 (8) (e), 66.0420 (10), 66.0420 (11), 66.0420 (13) (a), 66.0420 (13)
10(b), 66.0420 (13) (c), 100.209 (title), 100.209 (1) (c), 100.209 (2) (a), 100.209 (3),
11100.209 (4) (a), 100.209 (4) (b), 100.261 (3) (c), 196.44 (1) and 196.44 (2);
to
12repeal and recreate 66.0420 (3) (i) (title), 66.0420 (3) (k), 66.0420 (5) (c) 3. a.,
1366.0420 (8) (b) and 66.0420 (9); and
to create 20.155 (1) (k), 66.0420 (2) (fm),
1466.0420 (2) (q), 66.0420 (3) (i) 1. to 3., 66.0420 (3) (L), 66.0420 (5) (d) 3. and 4.,
166.0420 (5e), 66.0420 (7) (em) 5., 66.0420 (8g), 66.0420 (8r), 66.0420 (13) (d),
266.0420 (14), 100.209 (1) (b), 100.209 (1) (e), 100.209 (2m) and 196.85 (1m) (e)
3of the statutes;
relating to: the regulation of video service providers and
4interim cable operators, granting rule-making authority, making an
5appropriation, and providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, with certain exceptions, a person may not provide video
service unless the Department of Financial Institutions (DFI) has issued a video
service franchise to the person. The prohibition was enacted as part of
2007
Wisconsin Act 42, which made substantial changes to the regulation of cable
television service. Current law defines "video service," in general, as cable television
service, and other service comparable to programming service provided by a
television broadcast station, that is provided through facilities located, at least in
part, in public rights-of-way. Current law refers to a person who is granted a video
service franchise as a "video service provider." One of the exceptions to the
prohibition applies to a person operating under a cable television franchise granted
by a municipality before the enactment of
2007 Wisconsin Act 42. Current law allows
such a person to elect to continue to provide cable television service until the
franchise expires. Upon expiration of the municipally granted franchise, the person
must apply to DFI for a video service franchise. Current law refers to a person who
elects to operate under a municipally granted cable television franchise until the
franchise's expiration as an "interim cable operator."
This bill transfers DFI's duties regarding video service franchises and video
service providers to the Public Service Commission (PSC). In addition, the bill allows
the PSC to bill a franchise applicant or video service provider for the expenses
incurred by the PSC regarding an application and other matters under the PSC's
jurisdiction regarding the applicant or provider. The PSC has similar authority
under current law to bill a public utility for the costs incurred by the PSC in
regulating the public utility.
In addition, the bill requires a video service provider to apply to the PSC to
renew a video service franchise every five years. Current law does not require
renewal of a video service franchise. The PSC may not renew a video service
franchise under the bill if the PSC determines that the video service provider has
exhibited a pattern of noncompliance with requirements under current law relating
to video service, including state consumer protection requirements, as well as
regulations of the Federal Communications Commission (FCC) that are described
below. Also, the bill allows the PSC to revoke a video service franchise if the PSC
makes the same determination. Under current law, DFI may revoke a video service
franchise if DFI determines that a video service provider fails to substantially meet
a material requirement imposed by the DFI.
The bill also allows a municipality to require a video service provider that
provides service in the municipality a quarterly video service fee of no more than 5
percent of the provider's gross receipts. Under current law, under certain
circumstances, a municipality may be limited to a percentage that is less than 5
percent. In addition, the bill repeals a provision created by
2007 Wisconsin Act 42 that allows a video service provider to deduct right-of-way permit fees imposed by
a municipality from any other compensation that is due to the municipality,
including the video service fee.
Current law requires certain video service providers that use
telecommunications facilities to provide video service to comply with two deadlines
for providing access to their video service. The deadlines apply if the video service
provider had more than 500,000 basic local exchange access lines in this state on
January 1, 2007. The first deadline requires such a video service provider to provide
access to 35 percent of households within the provider's basic local exchange service
area no later than three years after beginning to provide video service. The second
deadline requires such a video service provider to provide access to 50 percent of such
households no later than five years after beginning to provide video service, or no
later than two years after at least 30 percent of households with access to the
provider's video service subscribe to the service for six consecutive months,
whichever is later. Under certain circumstances, the Department of Agriculture,
Trade and Consumer Protection (DATCP) can grant an extension or waiver of the
deadlines. This bill eliminates the foregoing deadlines and creates a new deadline.
Under the bill such a video service provider must provide access to 90 percent of such
households no later than 18 months after the bill's effective date. A video service
provider that fails to meet the deadline must pay $20,000,000 to the PSC, which must
use the money to make grants to assist in the deployment of broadband service to
underserved areas of the state. As under current law, under certain circumstances,
DATCP can grant an extension or waiver of the deadline.
Current law prohibits municipalities from requiring video service providers
and interim cable operators to provide monetary support for access facilities for
public, educational, and governmental access channels (PEG channels) after
January 1, 2011. The amount of monetary support that a municipality may require
before that date is generally based on the amount of support that a municipality
required prior to the enactment of
2007 Wisconsin Act 42. This bill changes current
law so that it refers to support for PEG channels, rather than to monetary support
for access facilities for PEG channels. The bill also allows a municipality to require,
beginning on January 1, 2011, video service providers and interim cable operators
to pay a fee for the purpose of supporting PEG channels. The fee, which must be set
by ordinance, may be equal to no more than 1 percent of a video service provider's
or interim cable operator's annual gross receipts. The bill also makes video service
providers and interim cable operators responsible for making any changes to PEG
channel content or programming that are necessary for compatibility with their
service delivery technology or protocol. Under current law, municipalities that
provide PEG channel programming are responsible for such changes. The bill also
requires video service providers and interim cable operators to provide channel
capacity for PEG channels with accessibility, functionality, and audio and visual
quality that is at least equivalent to certain commercial channels. In addition, the
bill requires video service providers and interim cable operators to do the following:
1) provide channel capacity for PEG channels so that it is viewable by subscribers
without additional service or equipment charges; 2) provide such channel capacity
on a service tier that is viewable by 100 percent of customers, rather than by more
than 50 percent, which is required under current law; and 3) provide facilities
adequate to carry signals for PEG channels without material degradation,
alteration, or removal of PEG channel content. Also, the bill imposes requirements
on the channel numbers used for PEG channels and clarifies duties under current
law regarding the relocation of origination points for PEG channels. Additionally,
the bill eliminates the authority of a video service provider or interim cable operator
to provide certain restored PEG channel capacity on any service tier.
Current law also requires video service providers to pay annual fees to DFI. If
a video service provider has 10,000 or less subscribers, the first annual fee is $2,000
and each subsequent fee is $100. Current law also requires video service providers
to pay a $100 fee for notifying DFI about certain changes in information previously
provided to DFI. This bill eliminates the fee for information changes, and also
requires video service providers to pay annual fees to DATCP, rather than to DFI.
Under current law, DATCP enforces certain video service consumer protection
requirements. Under the bill, a video service provider with 10,000 or less in-state
subscribers must pay an annual fee of $4,500 to DATCP, and a video service provider
with more than 10,000 in-state subscribers must pay an annual fee of $50,000 to
DATCP. In addition, the bill allows DATCP to adjust the amount of the fees by rule
as necessary to cover administrative and enforcement costs. The bill also authorizes
the creation of 5.0 FTE positions in DATCP for enforcing the video service consumer
protection requirements. In addition, the bill requires DATCP to enforce certain
prohibitions under current law regarding discrimination based on race or income in
providing video service. Current law does not specify the state agency that enforces
such prohibitions.
In addition, current law authorizes municipalities to require video service
providers to comply, upon 90 days' advance notice, with regulations of the FCC
regarding office hours and telephone availability; service installations, outages, and
calls; and deadlines for refunds and service credits. However, a municipality is
prohibited from requiring such compliance if more than one person offers video
service in a municipality, or if a video service provider is subject to effective
competition, as determined under FCC regulations. This bill eliminates the
foregoing requirements and requires instead that video service providers comply
with the foregoing FCC regulations, and that DATCP enforce compliance. In
addition, the bill requires video service providers to comply with, and DATCP to
enforce, additional FCC regulations regarding all of the following: 1) providing
information about products, services, channels, prices, installation and service
maintenance policies, and billing and complaint procedures; 2) providing advance
written notice about changes to rates, programming services, and channel positions;
and 3) providing clear, concise, and understandable bills, itemizing bills, and
responding to billing complaints. Also, the bill allows a municipality to adopt or
enact an ordinance or resolution requiring a video service provide to comply with the
foregoing FCC regulations, as well as video service consumer protection
requirements under state law enforced by DATCP. As a result, a municipality may
enforce the same requirements as DATCP.
Finally, the bill does all of the following:
1. Requires a video service provider to carry a channel designated by
WisconsinEye, which operates a nonprofit, statewide public affairs channel, or a
successor to WisconsinEye specified by the PSC. A video service provider must carry
the channel at no cost to WisconsinEye or such a successor. Also, the channel must
be carried on the lowest cost service tier.
2. Requires the PSC to promulgate rules allowing a customer to return video
service equipment to a video service provider at no cost to the customer, but only if
the customer returns the equipment by a deadline specified in the rules.
3. Requires a video service provider to maintain at least one customer service
facility within this state. The facility staff must have the capacity to accept
payments; adjust bills; respond to repair, installation, reconnection, disconnection,
and other service calls; and distribute and receive video service equipment.
4. Allows for the recovery of costs and attorney fees in certain actions regarding
disputes over video service provider fees, as well as in actions to enforce the bill's
requirements.
5. Changes one of the video service consumer protection requirements under
current law so that certain repairs must be made within 24 hours after service
interruptions are reported. Current law imposes a 72-hour deadline.
6. Subjects a person who violates video service requirements to a forfeiture of
not more than $1,000 for each offense and not more than $10,000 for each occurrence.
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:
AB606, s. 1
1Section
1. 20.115 (1) (jb) of the statutes is amended to read:
AB606,5,52
20.115
(1) (jb)
Consumer protection, information, and education. The amounts
3in the schedule for consumer protection and consumer information and education.
4All moneys received under
s. ss. 66.0420 (3) (k) and 100.261 (3) (b) shall be credited
5to this appropriation account, subject to the limit under s. 100.261 (3) (c).
AB606, s. 2
6Section
2. 20.155 (1) (title) of the statutes is amended to read:
AB606,6,1
120.155
(1) (title)
Regulation of public utilities and video service providers.
AB606, s. 3
2Section
3. 20.155 (1) (g) of the statutes is amended to read:
AB606,6,93
20.155
(1) (g)
Utility
Public utility and video service provider regulation. The
4amounts in the schedule for the regulation of utilities
and video service providers.
5Ninety percent of all moneys received by the commission under s. 196.85, 196.855,
6or 201.10 (3) shall be credited to this appropriation. Ninety percent of all receipts
7from the sale of miscellaneous printed reports and other copied material, the cost of
8which was originally paid under this paragraph, shall be credited to this
9appropriation.
AB606, s. 4
10Section
4. 20.155 (1) (k) of the statutes is created to read:
AB606,6,1211
20.155
(1) (k)
Broadband grants. All moneys received under s. 66.0420 (8) (b)
12for making grants under s. 66.0420 (8) (b).
AB606, s. 5
13Section
5. 66.0420 (2) (fm) of the statutes is created to read:
AB606,6,1414
66.0420
(2) (fm) "Commission" means the public service commission.
AB606, s. 6
15Section
6. 66.0420 (2) (g) of the statutes is repealed.
AB606, s. 7
16Section
7. 66.0420 (2) (q) of the statutes is created to read:
AB606,6,1817
66.0420
(2) (q) "Local commercial television station" has the meaning given in
1847 USC 534 (h) (1).
AB606, s. 8
19Section
8. 66.0420 (3) (a) of the statutes is amended to read:
AB606,6,2320
66.0420
(3) (a)
In general. Except for an interim cable operator, and except as
21provided in
par. (c) and sub. (11), no person may provide video service in this state
22unless the
department commission has issued a video service franchise to the person
23and the person has provided the notice required under par. (h).
AB606, s. 9
24Section
9. 66.0420 (3) (c) of the statutes is repealed.
AB606, s. 10
25Section
10. 66.0420 (3) (d) (intro.) of the statutes is amended to read:
AB606,7,3
166.0420
(3) (d)
Application. (intro.) An applicant for a video service franchise
2shall submit an application to the
department commission that consists of all of the
3following:
AB606, s. 11
4Section
11. 66.0420 (3) (d) 1. of the statutes is amended to read:
AB606,7,85
66.0420
(3) (d) 1. The location and telephone number of the applicant's
6principal place of business, the names of the principal executive officers of the
7applicant, and the names of any persons authorized to represent the applicant before
8the
department commission.
AB606, s. 12
9Section
12. 66.0420 (3) (e) 1. of the statutes is amended to read:
AB606,7,1410
66.0420
(3) (e) 1. At the time that an applicant submits an application under
11par. (d), or a video service provider submits a notification regarding a modification
12to an application under par. (j), to the
department
commission, the applicant or video
13service provider shall serve a copy of the application or notification on each
14municipality in the video franchise area.
AB606, s. 13
15Section
13. 66.0420 (3) (e) 2. b. of the statutes is amended to read:
AB606,7,2316
66.0420
(3) (e) 2. b. If a municipality specified in subd. 2. a. has granted any
17cable franchise that is in effect immediately before January 9, 2008, the municipality
18shall, no later than 10 business days after receipt of the copy, notify the applicant in
19writing of the number of PEG channels for which incumbent cable operators are
20required to provide channel capacity in the municipality, the amount and type of
21monetary support
for access facilities for PEG channels required of incumbent cable
22operators as described in sub. (7) (em)
1. to 4., and the percentage of revenues that
23incumbent cable operators are required to pay the municipality as franchise fees.
AB606, s. 14
24Section
14. 66.0420 (3) (f) (title) of the statutes is amended to read:
AB606,7,2525
66.0420
(3) (f) (title)
Department Commission duties.
AB606, s. 15
1Section
15. 66.0420 (3) (f) 1. of the statutes is amended to read:
AB606,8,52
66.0420
(3) (f) 1. After the filing of an application, the
department commission 3shall notify the applicant in writing as to whether the application is complete and,
4if the
department commission has determined that the application is not complete,
5the
department commission shall state the reasons for the determination.
AB606, s. 16
6Section
16. 66.0420 (3) (f) 2. of the statutes is amended to read:
AB606,8,157
66.0420
(3) (f) 2. After the filing of an application that the
department 8commission has determined is complete, the
department commission shall
9determine whether an applicant is legally, financially, and technically qualified to
10provide video service. If the
department commission determines that an applicant
11is legally, financially, and technically qualified to provide video service, the
12department commission shall issue a video service franchise to the applicant. If the
13department commission determines that an applicant is not legally, financially, and
14technically qualified to provide video service, the
department commission shall
15reject the application and shall state the reasons for the determination.
AB606, s. 17
16Section
17. 66.0420 (3) (f) 4. of the statutes is amended to read:
AB606,8,1917
66.0420
(3) (f) 4. The
department
commission shall promulgate rules for
18determining whether an applicant is legally, financially, and technically qualified to
19provide video service.
AB606, s. 18
20Section
18. 66.0420 (3) (g) of the statutes is amended to read:
AB606,8,2421
66.0420
(3) (g)
Effect of video service franchise. A video service franchise issued
22by the
department commission authorizes a video service provider to occupy the
23public rights-of-way and to construct, operate, maintain, and repair a video service
24network to provide video service in the video franchise area.
AB606, s. 19
25Section
19. 66.0420 (3) (h) of the statutes is amended to read:
AB606,9,4
166.0420
(3) (h)
Notice before providing service. No later than 10 business days
2before providing video service in a municipality in a video franchise area, a video
3service provider shall provide notice to the
department commission and the
4municipality.