AB696-engrossed,15,1917 196.195 (1) Regulation imposed. Except as provided in this section and ss.
18196.202, 196.203, 196.215 and, 196.219, and 196.50 (2) (i), a telecommunications
19utility is subject to every applicable provision of this chapter and ch. 201.
AB696-engrossed, s. 15 20Section 15. 196.195 (5) of the statutes is amended to read:
AB696-engrossed,16,521 196.195 (5) Commission action. If after the proceedings under subs. (2), (3) and
22(4) the commission has determined that effective competition exists in the market
23for the telecommunications service which justifies a lesser degree of regulation and
24that lesser regulation in that market will serve the public interest, the commission
25may, by order, suspend any of the following provisions of law ch. 201, except as

1provided under subs. (7) and (8): ch. 201 and s. 196.02 (2); s. 196.05; s. 196.06; s.
2196.07; s. 196.09; s. 196.10; s. 196.12; s. 196.13 (2); s. 196.19; tariffing requirements
3under s. 196.194; s. 196.196 (1) or (5); s. 196.20; s. 196.21; s. 196.22;
s. 196.26; s.
4196.28; s. 196.37; s. 196.49; s. 196.52; s. 196.58; s. 196.60;
s. 196.604; s. 196.77; s.
5196.78; s. 196.79; and s. 196.805
.
AB696-engrossed, s. 16 6Section 16. 196.195 (12) (a) of the statutes is amended to read:
AB696-engrossed,16,127 196.195 (12) (a) To provide incentives for telecommunications utilities to
8achieve any of the goals listed in par. (b) 1. a., the commission may suspend any of
9the provisions listed in sub. (5) except ss. 196.19, 196.20 (1m), 196.22, 196.26, 196.37,
10196.60 and 196.604
of ch. 201 or may approve a regulatory method alternative to
11traditional rate-of-return regulation that does not require suspension of any
12provisions listed in sub. (5).
AB696-engrossed, s. 17 13Section 17. 196.195 (12) (b) 3. of the statutes is amended to read:
AB696-engrossed,16,2114 196.195 (12) (b) 3. The commission shall regulate telecommunications utilities
15with the goal of developing alternative forms of regulation. The commission shall,
16by order, develop and approve an incentive regulatory plan for each
17telecommunications utility to implement this subdivision. The commission may not
18increase regulation of a small telecommunications utility in implementing this
19subdivision. For telecommunications utilities with more than 150,000 access lines
20in use in this state, s. 196.196 (2) applies to access service rates in any regulatory plan
21approved under this subdivision.
AB696-engrossed, s. 18 22Section 18. 196.196 of the statutes is repealed.
AB696-engrossed, s. 19 23Section 19. 196.198 (2) (a) of the statutes is renumbered 196.198 (2) and
24amended to read:
AB696-engrossed,17,6
1196.198 (2) Except as provided in sub. (3), a telecommunications utility that
2has more than 150,000 access lines in use in this state or a telecommunications
3provider that has more than 150,000 access lines in use in this state may not charge
4a residential customer for basic local exchange service based on the duration of a call
5or on the time of day that a call is made. This paragraph subsection does not apply
6to an extended community telephone service.
AB696-engrossed, s. 20 7Section 20. 196.198 (2) (b) of the statutes is repealed.
AB696-engrossed, s. 21 8Section 21. 196.198 (3) (intro.) of the statutes is amended to read:
AB696-engrossed,17,129 196.198 (3) (intro.) The commission may suspend the application of sub. (2) (a)
10in a particular geographical area for a telecommunications utility or a
11telecommunications provider if, after a contested case hearing, the commission
12determines that all of the following apply:
AB696-engrossed, s. 22 13Section 22. 196.198 (3) (a) of the statutes is amended to read:
AB696-engrossed,17,1514 196.198 (3) (a) Failure to suspend the application of sub. (2) (a) makes
15competition in that geographical area impractical.
AB696-engrossed, s. 23 16Section 23. 196.198 (3) (b) (intro.) of the statutes is amended to read:
AB696-engrossed,17,1817 196.198 (3) (b) (intro.) Suspending the application of sub. (2) (a) is beneficial
18to all of the following groups:
AB696-engrossed, s. 24 19Section 24. 196.20 (1) of the statutes is amended to read:
AB696-engrossed,18,320 196.20 (1) The rate schedules of any public utility shall include all rules
21applicable to the rendition or discontinuance of the service to which the rates
22specified in the schedules are applicable. No change may be made by any public
23utility in its schedules except by filing the change as proposed with the commission.
24Except for a telecommunications utility, no No change in any public utility rule which
25purports to curtail the obligation or undertaking of service of the public utility shall

1be effective without the written approval of the commission after hearing, except
2that the commission, by emergency order, may make the rule, as filed, effective from
3the date of the order, pending final approval of the rule after hearing.
AB696-engrossed, s. 25 4Section 25. 196.20 (1m) of the statutes is repealed.
AB696-engrossed, s. 26 5Section 26. 196.20 (2) (a) (intro.) of the statutes is amended to read:
AB696-engrossed,18,96 196.20 (2) (a) (intro.) Except for a telecommunications utility, a A proposed
7change which constitutes a decrease in rates shall be effective at the time specified
8in the change as filed but not earlier than 10 days after the date of filing the change
9with the commission, unless any of the following occurs:
AB696-engrossed, s. 27 10Section 27. 196.20 (2) (am) of the statutes is repealed.
AB696-engrossed, s. 28 11Section 28. 196.20 (2m) of the statutes is amended to read:
AB696-engrossed,18,1812 196.20 (2m) Except as provided under sub. (5) and ss. s. 196.193, 196.195 (12)
13and 196.196
, no change in schedules which constitutes an increase in rates to
14consumers may be made except by order of the commission, after an investigation
15and opportunity for hearing. The commission may waive a hearing under this
16subsection for a proposed change in a telecommunications utility schedule. By rule
17or order, the commission shall specify the notice and procedural requirements
18applicable to a telecommunications utility proposal for which a hearing is waived.
AB696-engrossed, s. 29 19Section 29. 196.20 (2r) of the statutes is repealed.
AB696-engrossed, s. 30 20Section 30. 196.20 (3) of the statutes is repealed.
AB696-engrossed, s. 31 21Section 31. 196.20 (5) of the statutes is repealed.
AB696-engrossed, s. 32 22Section 32. 196.20 (6) of the statutes is repealed.
AB696-engrossed, s. 33 23Section 33. 196.203 (1) of the statutes, as affected by 2009 Wisconsin Act 28,
24is renumbered 196.203 (1g) and amended to read:
AB696-engrossed,19,6
1196.203 (1g) Alternative telecommunications utilities are exempt from all
2provisions of ch. 201 and this chapter, except as provided in this section, and except
3that an alternative telecommunications utility is subject to s. ss. 196.025 (6) and
4196.206 and may elect to subject itself to s. 196.191
, and except that an alternative
5telecommunications utility that is a local government telecommunications utility, as
6defined in s. 196.204 (5) (ag) 1.,
is subject to s. 196.204 (5).
AB696-engrossed, s. 34 7Section 34. 196.203 (1d) of the statutes is created to read:
AB696-engrossed,19,98 196.203 (1d) In this section, "local government telecommunications utility"
9has the meaning given in s. 196.204 (1m) (a).
AB696-engrossed, s. 35 10Section 35. 196.203 (2) of the statutes is renumbered 196.203 (2) (a) and
11amended to read:
AB696-engrossed,19,1612 196.203 (2) (a) No person may commence providing service as an alternative
13telecommunications utility unless the person petitions for and the commission issues
14a determination certification that the person is an alternative telecommunications
15utility or unless the person is a telecommunications utility for which the commission
16issues an order under s. 196.50 (2) (j) 1. a
.
AB696-engrossed,19,20 17(6) The commission shall maintain information on authorized certified
18alternative telecommunications utilities and on applicants for alternative
19telecommunications utility status certification and make that information available
20to any person, upon request.
AB696-engrossed, s. 36 21Section 36. 196.203 (2) (b) of the statutes is created to read:
AB696-engrossed,20,222 196.203 (2) (b) Except for an alternative telecommunications utility that is a
23local government telecommunications utility, certification as an alternative
24telecommunications utility shall be on a statewide basis and any certification issued
25by the commission before the effective date of this paragraph .... [LRB inserts date],

1to an alternative telecommunications utility that is not a local government
2telecommunications utility is considered amended to be a statewide certification.
AB696-engrossed, s. 36m 3Section 36m. 196.203 (2) (c) of the statutes is created to read:
AB696-engrossed,20,204 196.203 (2) (c) An alternative telecommunications utility may provide notice
5to the commission to maintain certification as an alternative telecommunications
6utility but to recertify the alternative telecommunications utility and impose on the
7alternative telecommunications utility only those provisions of this chapter specified
8in this paragraph. No later than 30 days after receiving notice under this paragraph,
9the commission shall issue an order granting recertification and imposing on the
10alternative telecommunications utility those provisions of this chapter specified in
11sub. (4m) (a) that are imposed on all alternative telecommunications utilities under
12sub. (3). The commission may impose a provision of this chapter specified in sub.
13(4m) (b) or (c) if required by the public interest. An alternative telecommunications
14utility for which an order of recertification is issued is subject to sub. (1g). The
15granting of the recertification shall operate to terminate the alternative
16telecommunications utility's prior certification, and all regulatory requirements
17related to the prior certification, including all such requirements imposed by the
18certification and all requirements imposed by the commission, whether by statute
19or commission rule or order, on the alternative telecommunications utility are
20terminated on the effective date of the order.
AB696-engrossed, s. 37 21Section 37. 196.203 (2) (d) of the statutes is created to read:
AB696-engrossed,21,222 196.203 (2) (d) The commission may deny a petition for certification as an
23alternative telecommunications utility described in s. 196.01 (1d) (f) if the
24commission finds that the petitioner does not have the financial, managerial, or

1technical capabilities to provide its proposed services or to comply with conditions
2that the commission is authorized to impose under sub. (3).
AB696-engrossed, s. 38 3Section 38. 196.203 (3) (a) of the statutes is renumbered 196.203 (3) and
4amended to read:
AB696-engrossed,21,165 196.203 (3) In response to a petition from any interested person, or upon its
6own motion, the commission shall determine whether the public interest requires
7that any a provision of ch. 201 or this chapter specified in sub. (4m) be imposed on
8a person providing or proposing to provide service as an alternative
9telecommunications utility in a relevant market. In making this determination, the
10commission may consider factors including the quality of service, customer
11complaints, concerns about the effect on customers of local exchange
12telecommunications utilities and the extent to which similar services are available
13from alternative sources. If the commission imposes a provision of this chapter
14specified in sub. (4m) (a) on an alternative telecommunications utility under this
15subsection, the commission shall impose the same provision at the same level of
16regulation on all other alternative telecommunications utilities.
AB696-engrossed, s. 39 17Section 39. 196.203 (3) (b) of the statutes is repealed.
AB696-engrossed, s. 40 18Section 40. 196.203 (3) (c) of the statutes is repealed.
AB696-engrossed, s. 41 19Section 41. 196.203 (3) (d) of the statutes is repealed.
AB696-engrossed, s. 42 20Section 42. 196.203 (3) (dm) of the statutes is repealed.
AB696-engrossed, s. 43 21Section 43. 196.203 (3) (e) of the statutes is repealed.
AB696-engrossed, s. 44 22Section 44. 196.203 (4) of the statutes is repealed.
AB696-engrossed, s. 45 23Section 45. 196.203 (4m) of the statutes is created to read:
AB696-engrossed,22,324 196.203 (4m) (a) The commission may impose s. 196.01, 196.02 (1), (4), or (5),
25196.04, 196.135, 196.14, 196.197, 196.199, 196.207, 196.208, 196.209, 196.218,

1196.219 (1), (2) (b), (c), or (d), (2r), (3) (a), (c), (d), (e), (j), (m), (n), or (o), or (3m), 196.25,
2196.26, 196.39, 196.395, 196.40, 196.41, 196.43, 196.44, 196.65, 196.66, 196.81,
3196.85, 196.858, or 196.859 on an alternative telecommunications utility.
AB696-engrossed,22,54 (b) The commission may, with respect only to switched access services, impose
5s. 196.03 (1) or (6) or 196.37 on an alternative telecommunications utility.
AB696-engrossed,22,86 (c) The commission may, with respect only to wholesale telecommunications
7service, impose s. 196.03 (1) or (6), 196.219 (4), 196.28, or 196.37, on an alternative
8telecommunications utility certified under sub. (2) (a) or (c).
AB696-engrossed,22,119 (d) An alternative telecommunications utility certified pursuant to s. 196.50 (2)
10(j) 1. a. shall be subject, with respect only to wholesale telecommunications services,
11to all provisions in pars. (a) and (c).
AB696-engrossed, s. 46 12Section 46. 196.203 (5) of the statutes is amended to read:
AB696-engrossed,22,1513 196.203 (5) The commission may establish a reasonable fee schedule and may
14assess an alternative telecommunications utility to cover the cost of making a
15certification or other determination under this section.
AB696-engrossed, s. 47 16Section 47. 196.204 (title) of the statutes is repealed and recreated to read:
AB696-engrossed,22,17 17196.204 (title) Local government telecommunications utilities.
AB696-engrossed, s. 48 18Section 48. 196.204 (1) of the statutes is repealed.
AB696-engrossed, s. 49 19Section 49. 196.204 (2) of the statutes is repealed.
AB696-engrossed, s. 50 20Section 50. 196.204 (3) of the statutes is repealed.
AB696-engrossed, s. 51 21Section 51. 196.204 (4) of the statutes is repealed.
AB696-engrossed, s. 52 22Section 52. 196.204 (5) (ag) of the statutes is renumbered 196.204 (1m) and
23196.204 (1m) (intro.), as renumbered, is amended to read:
AB696-engrossed,22,2424 196.204 (1m) (intro.) In this subsection section:
AB696-engrossed, s. 53
1Section 53. 196.204 (5) (ar) of the statutes is renumbered 196.204 (2m) and
2196.204 (2m) (a), (b) (intro.) and (c) (intro.), as renumbered, are amended to read:
AB696-engrossed,23,93 196.204 (2m) (a) In addition to the other requirements of this section, each
4Each telecommunications service, relevant group of services and basic network
5function offered or used by a local government telecommunications utility shall be
6priced to exceed its total service long-run incremental cost. The commission may
7waive the applicability of this subdivision to a nongovernmental
8telecommunications utility's basic local exchange service if the commission
9determines that a waiver is consistent with the factors under s. 196.03 (6).
AB696-engrossed,23,1810 (b) (intro.) For purposes of subd. 1. par. (a), the total service long-run
11incremental cost of a local government telecommunications utility shall take into
12account, by imputation or allocation, equivalent charges for all taxes, pole rentals,
13rights-of-way, licenses, and similar costs that are incurred by nongovernmental
14telecommunications utilities. This subdivision paragraph does not apply to a local
15government telecommunications utility that is subject to the exemption under s.
1666.0422 (3n). This subdivision paragraph also does not apply to a
17telecommunications service, relevant group of services, or basic network function if
18all of the following conditions apply:
AB696-engrossed,23,2219 (c) (intro.) Subdivision 2. Paragraph (b) does not apply to a telecommunications
20service, relevant group of services, or basic network function, that is used to provide
21broadband service and that is offered by a municipal telecommunications utility, if
22all of the following apply:
AB696-engrossed, s. 54 23Section 54. 196.204 (5) (b) of the statutes is repealed.
AB696-engrossed, s. 55 24Section 55. 196.204 (6) of the statutes is repealed.
AB696-engrossed, s. 55m 25Section 55m. 196.205 of the statutes is repealed.
AB696-engrossed, s. 58
1Section 58. 196.206 of the statutes is created to read:
AB696-engrossed,24,6 2196.206 Interconnected voice over Internet protocol service. (1)
3Exemption. Interconnected voice over Internet protocol service is not subject to ch.
4201 or this chapter, except as provided in this section, and except as provided in ss.
5196.016, 196.025 (6), 196.218 (3), and 196.859, and except as required for the
6commission to enforce ss. 196.016, 196.025 (6), 196.218 (3), and 196.859.
AB696-engrossed,24,15 7(2) Universal service fund. A communications provider, as defined in s.
8196.025 (6) (a) 1., that provides interconnected voice over Internet protocol service
9in this state shall make contributions to the universal service fund based on its
10revenues from providing such service. The revenues shall be calculated using direct
11assignment, a provider-specific traffic study, the inverse of the interstate
12jurisdictional allocation established by the federal communications commission for
13the purpose of federal universal service assessments, or any other reasonable
14assignment. Direct assignment or traffic studies shall be based on the primary
15physical service address identified by the customer.
AB696-engrossed,24,19 16(3) Intrastate access rates. Unless otherwise provided under federal law,
17interconnected voice over Internet protocol services shall be subject to intrastate
18access charges to the same extent that telecommunications services are subject to
19such charges.
AB696-engrossed, s. 60 20Section 60. 196.213 of the statutes is repealed.
AB696-engrossed, s. 61 21Section 61. 196.215 of the statutes is repealed.
AB696-engrossed, s. 62 22Section 62. 196.218 (1) (a) of the statutes is created to read:
AB696-engrossed,24,2523 196.218 (1) (a) "Essential telecommunications services" means services or
24functionalities determined by the federal communications commission to be eligible
25for support by federal universal service support mechanisms.
AB696-engrossed, s. 64
1Section 64. 196.218 (3) (a) 3m. of the statutes is amended to read:
AB696-engrossed,25,72 196.218 (3) (a) 3m. Contributions under this paragraph may be based only on
3the gross operating revenues from the provision of broadcast services identified by
4the commission under subd. 2. and on intrastate telecommunications services in this
5state of the telecommunications providers subject to the contribution. Contributions
6based on revenues from interconnected voice over Internet protocol service shall be
7calculated as provided under s. 196.206 (2).
AB696-engrossed, s. 65 8Section 65. 196.218 (3) (f) of the statutes is amended to read:
AB696-engrossed,25,179 196.218 (3) (f) Notwithstanding ss. 196.196 (1) and (5) (d) 2., 196.20 (2m), (5)
10and (6), 196.213 and 196.215, a
A telecommunications utility that provides local
11exchange service may make adjustments to local exchange service rates for the
12purpose of recovering its contributions to the universal service fund required under
13this subsection. A telecommunications utility that adjusts local exchange service
14rates for the purpose of recovering such contributions shall identify on customer bills
15a single amount that is the total amount of the adjustment. The public service
16commission shall provide telecommunications utilities the information necessary to
17identify such amounts on customer bills.
AB696-engrossed, s. 66 18Section 66. 196.218 (4) of the statutes is repealed and recreated to read:
AB696-engrossed,26,219 196.218 (4) Essential telecommunications services. Each
20telecommunications provider that provides basic local exchange service or that is
21designated as an eligible telecommunications carrier pursuant to 47 USC 214 (e) (2)
22shall make available to its customers all essential telecommunications services. A
23telecommunications provider may satisfy this subsection by providing essential
24telecommunications services itself or through an affiliate and in either case may

1provide essential telecommunications services through the use of any available
2technology or mode.
AB696-engrossed, s. 68 3Section 68. 196.218 (5r) (title) of the statutes is amended to read:
AB696-engrossed,26,44 196.218 (5r) (title) Annual report reports.
AB696-engrossed, s. 69 5Section 69. 196.218 (5r) (a) 4. of the statutes is amended to read:
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