January 2011 Special Session
2011 - 2012 LEGISLATURE
April 28, 2011 - Introduced by Committee on Senate Organization, by request of
Governor Scott Walker, Senator Zipperer and Representative Honadel.
Referred to Committee on State and Federal Relations and Information
Technology.
SB13,2,17 1An Act to repeal 196.09 (9), 196.19 (1m), 196.19 (5), 196.194 (title), 196.194 (1),
2196.196, 196.198 (2) (b), 196.20 (1m), 196.20 (2) (am), 196.20 (2r), 196.20 (3),
3196.20 (5), 196.20 (6), 196.203 (3) (b), 196.203 (3) (c), 196.203 (3) (d), 196.203 (3)
4(dm), 196.203 (3) (e), 196.203 (4), 196.204 (1), 196.204 (2), 196.204 (3), 196.204
5(4), 196.204 (5) (b), 196.204 (6), 196.205 (2), 196.213, 196.215, 196.218 (5) (a) 2.,
6196.219 (2m), 196.219 (3) (h), 196.26 (4), 196.49 (1) (ag), 196.49 (3) (d), 196.50
7(1) (b) 1. and 2., 196.50 (2) (g) 3., 196.50 (2) (h), 196.52 (5) (b), 196.60 (2), 196.77,
8196.79 (2), 196.805 and 201.15; to renumber 196.50 (1) (b) 3. and 196.52 (5) (a);
9to renumber and amend 196.04 (1) (a) 1., 196.194 (2), 196.198 (2) (a), 196.203
10(1), 196.203 (2), 196.203 (3) (a), 196.204 (5) (ag), 196.204 (5) (ar), 196.205 (1m)
11(intro.), 196.205 (1m) (a), 196.205 (1m) (c), 196.79 (1) and 196.975 (1); to amend
1220.155 (1) (q), 93.01 (1m), 133.07 (2), 196.01 (9m), 196.02 (2), 196.04 (1) (b) 1.,
13196.04 (2), 196.09 (1), 196.11 (2), 196.13 (2), 196.198 (3) (intro.), 196.198 (3) (a),
14196.198 (3) (b) (intro.), 196.20 (1), 196.20 (2) (a) (intro.), 196.20 (2m), 196.202

1(2), 196.203 (5), 196.218 (1) (c), 196.218 (3) (a) 3m., 196.218 (3) (f), 196.218 (5)
2(b), 196.218 (5) (c) 5., 196.218 (5r) (a) 1., 196.218 (5r) (a) 4., 196.219 (1) (b),
3196.219 (2) (a), 196.25 (1), 196.25 (2), 196.25 (3), 196.26 (1) (a), 196.28 (4),
4196.31 (1m), 196.37 (3), 196.37 (4), 196.49 (3) (b) (intro.), 196.50 (title), 196.50
5(2) (b), 196.50 (2) (e) 1., 196.50 (2) (f), 196.52 (3) (b) 1., 196.52 (3) (c) (intro.),
6196.52 (6), 196.52 (9) (e), 196.60 (1) (a), 196.604, 196.81 (3), 196.975 (2), 201.01
7(2) and 943.45 (1) (intro.); to repeal and recreate 196.195, 196.204 (title) and
8196.218 (4); and to create 182.017 (1g) (cq), 196.01 (1d) (g), 196.01 (2s), 196.01
9(3a), 196.01 (8d), 196.01 (8e), 196.01 (12w), 196.016, 196.04 (1) (a) 3., 196.191,
10196.203 (1d), 196.203 (1g) (b), 196.203 (2) (b), 196.203 (2) (c), 196.203 (2) (d),
11196.203 (4m), 196.205 (1) (c), 196.205 (2m) (b), 196.206, 196.212, 196.218 (1) (a),
12196.219 (2r), 196.50 (2) (i), 196.50 (2) (j), 196.503 and 196.975 (1g) of the
13statutes; relating to: regulation of telecommunications utilities and
14alternative telecommunications utilities; telecommunications provider of
15last-resort obligations; telecommunications intrastate switched access rates;
16interconnected voice over Internet protocol service; and use of transmission
17equipment and property by video service providers.
Analysis by the Legislative Reference Bureau
The bill does all of the following: 1) makes changes to the authority of the Public
Service Commission (PSC) over telecommunications utilities; 2) imposes
requirements on certain intrastate switched access rates; 3) eliminates mandatory
telecommunications tariffs except for intrastate switched access service; 4) specifies
the PSC's authority over interconnected voice over Internet protocol (interconnected
VOIP) service; 5) makes changes to the PSC's authority for ensuring universal access
to telecommunications service; 6) imposes requirements regarding the availability
of basic voice service; 7) makes changes to requirements for the use of another
person's transmission equipment and property by public utilities and
telecommunications providers; and 8) makes other changes to telecommunications
regulation.

Telecommunications utility regulation
Under current law, with certain exceptions, the PSC regulates a
telecommunications provider that provides basic local exchange service as either a
telecommunications utility (TU) or an alternative telecommunications utility (ATU).
In general, the PSC has certified as TUs those telecommunications providers that
are incumbent local exchange carriers (ILECs) under federal law, which are
telecommunications providers that resulted from the breakup of the Bell System
pursuant to a federal antitrust action. In general, the PSC has certified as ATUs
those telecommunications providers that are competitive local exchange carriers
(CLECs) under federal law, which are telecommunications providers that compete
with ILECs to provide basic local exchange service.
Under current law, TUs are subject to varying degrees of regulation by the PSC,
depending on certain factors, such as whether the TU has elected price regulation,
under which the PSC regulates the rates charged by a TU, but not the TU's rate of
return. The degree of PSC regulation also depends on whether a TU is a cooperative
association, or whether the TU is a "small TU," which is a TU that had fewer than
50,000 access lines in this state on January 1, 1984. With certain exceptions, current
law exempts an ATU from PSC regulation, except that, if certain conditions are
satisfied, the PSC may impose on an ATU a requirement that otherwise applies to
a TU or other public utility. In addition, ATUs, like certain other persons who provide
active retail voice communications service, must collect from customers and remit to
the PSC a monthly police and fire protection fee that is used for shared revenue
payments.
ATUs. Under this bill, ATUs are subject to the intrastate switched access rate,
tariff, and interconnected VOIP requirements described below, and to the monthly
police and fire protection fee described above. In addition, the bill limits the
additional requirements that the PSC may impose on an ATU. Under the bill, the
PSC may impose requirements that relate only to the following: 1) submission of
stockholder and other business management information; 2) PSC examination of
accounting and other business records; 3) use of and connection to transmission
equipment and property by other telecommunications providers; 4) confidential
treatment of records by the PSC; 5) rates and costs of unbundled network elements;
6) interconnection agreements and related requirements; 7) telephone caller
identification, pay-per-call, and toll-free services; 8) PSC privacy rules; 9) universal
service and contributions to the state's universal service fund; 10) access to
telecommunications emergency services; 11) restrictions on resale or sharing certain
services, products, and facilities; 12) violations of rules of the Department of
Agriculture, Trade and Consumer Protection (DATCP) regarding advertising and
sales and collection practices; 13) transfer of local exchange customers to other
telecommunications providers; 14) PSC questionnaires and other information
requests; 15) changes to PSC orders and reopening PSC cases; 16) PSC-required
tests; 17) conditional, emergency, and supplemental PSC orders; 18) timing of effect
of PSC orders; 19) court review of PSC orders; 20) injunction procedures; 21)
enforcement duties of the PSC, the attorney general, and district attorneys and
related court venues; 22) penalties related to information and record requests; 23)

forfeitures; 24) abandonment or discontinuance of lines, services, and
rights-of-way; 25) assessments for reimbursement of PSC expenses; 26)
assessments for telephone relay service; and 27) assessments for enforcement of
certain consumer protection requirements by DATCP.
As under current law, the bill allows the PSC to impose a requirement specified
above if the PSC finds that the imposition is in the public interest. The bill also
provides that, if the PSC imposes such a requirement on an ATU, the PSC must
impose the same requirement at the same level of regulation on all other ATUs. The
bill allows the PSC, based on the public interest, to impose other requirements on an
ATU related to the reasonableness and adequacy of intrastate switched access
service and wholesale telecommunications service. However, the PSC is not required
to impose the same requirement at the same level on all other ATUs.
In addition, the bill provides that, except for a local government ATU,
certification as an ATU is on a statewide basis and that any ATU certification issued
by the PSC before the bill's effective date is considered amended to be a statewide
certification. Also, with certain exceptions, the bill allows the PSC to deny
certification as an ATU only if the PSC finds that the applicant for certification does
not have the financial, managerial, or technical capabilities to provide service or
comply with requirements applicable to ATUs. The bill also allows an ATU to require
the PSC to grant recertification as an ATU. Upon recertification, the ATU is subject
to the requirements for ATUs described above. However, the recertification
terminates all regulatory requirements related to the prior certification that were
previously imposed on the ATU by the PSC and that are inconsistent with the bill's
requirements, unless the ATU requests to remain subject to certain of those
requirements.
TUs. The bill exempts TUs from requirements relating to all of the following:
1) PSC classification of public utility service; 2) PSC authority regarding production
of records, audits of accounts, service measurement standards, and test results; 3)
PSC authority to enter premises; 4) PSC valuation of utility property; 5) accounting
requirements, including depreciation rates and new construction accounting; 6)
reporting of expenses, profit, and other items; 7) PSC reports of utility property
values and other financial data; 8) filing of rates and PSC approval of rates; 9)
prohibition against unjust discrimination among customers; 10) certain prohibitions
regarding the provision of service to customers; 11) construction, installation, or
operation of new facilities; 12) affiliated interest requirements; 13) certain municipal
authority to regulate public utilities; 14) dissolution and reorganization; 15) liability
for treble damages; 16) PSC enforcement of certain unfair trade practice orders; 17)
private causes of actions by persons injured by certain violations of law by TUs; and
18) alternate dispute resolution requirements of the PSC. Except for wholesale
telecommunications service, the bill also exempts TUs from certain enforcement
authority of the PSC.
The bill makes changes to current law to ensure that small TUs, and TUs that
are cooperatives, are subject to the foregoing exemptions. The bill also eliminates
the PSC's authority to order an applicant for certification as a TU to satisfy any
conditions the PSC considers necessary to protect the public interest. In addition,

the bill repeals the requirements that apply to TUs under current law that apply to
the following: 1) the offering of new telecommunications services or jointly offering
services with other TUs; 2) classification of TU service; 3) promotional rates; 4) PSC
authority regarding contracts between TUs and individual customers; 5)
cross-subsidization requirements for nonlocal government TUs; and 6)
consolidations and mergers. Also, the bill repeals price regulation of TUs and
terminates any requirements imposed by the PSC on price-regulated TUs, as well
as repeals the PSC's authority to impose partial deregulation and other types of
alternative regulation on TUs. However, if a TU is subject to an alternative
regulation plan under current law, the bill provides that, unless the TU terminates
the plan, the TU remains regulated pursuant to the plan, except to the extent that
the plan is inconsistent with the bill's tariff or intrastate switched access rates
requirements.
The bill allows a TU to terminate its certification as a TU and have the PSC
certify the TU as an ATU. Upon certification as an ATU, all regulatory requirements
related to the former TU certification that are inconsistent with the bill's
requirements are terminated, unless the TU requests to remain subject to certain of
the requirements. In addition, the formerly certified TU is subject to the same
requirements as an ATU. Also, the formerly certified TU's wholesale
telecommunications services and rates are subject to the PSC's authority regarding
reasonable rates and adequate service, and the formerly certified TU is subject to the
basic voice requirements discussed below. In addition, if the formerly certified TU
was subject to price regulation under current law, its intrastate dedicated access
rates must mirror its interstate dedicated access rates.
The bill allows a TU to require the PSC to issue an order recertifying the TU
as a TU, but generally regulating the TU like an ATU, except that the recertified TU
is also subject to the basic voice requirements discussed below. Such a recertification
terminates the TU's prior certification, and all regulatory requirements related to
the prior certification that are inconsistent with the bill's requirements, unless the
TU requests to remain subject to certain of those requirements.
If the PSC issues an order certifying a TU as an ATU, or recertifying a TU as
a TU that is regulated like an ATU, the order operates as a limited waiver of the TU's
right to the following: 1) an exemption from certain interconnection requirements
under federal law that apply to ILECs that are rural telephone companies; and 2)
suspension or modification of certain interconnection requirements under federal
law. The bill provides that, except for the foregoing limited waivers, the state's
telecommunications law is not intended to reduce or expand the scope and
application of federal telecommunications law, including the PSC's authority under
federal law.
Intrastate switched access rates
The bill imposes requirements on intrastate switched access rates that depend
on whether a telecommunications provider is a large or small ILEC, new
nonincumbent, or large or small nonincumbent, as defined in the bill. The bill
defines "switched access rates" as rates charged for providing switched access to a
local exchange network for enabling the origination or termination of

telecommunications service within the local exchange. In general, federal law
provides that the Federal Communications Commission regulates interstate rates
and the states regulate intrastate rates.
Large ILECs. The bill defines "large ILEC" as an ILEC that, with any ILEC
affiliates, had 150,000 or more access lines in this state as of January 1, 2010. No
later than two years after the bill's effective date, a large ILEC must reduce its
intrastate switched access rates by an amount equal to 25 percent of the difference
between its intrastate and interstate switched access rates. No later than three
years after the bill's effective date, a large ILEC must further reduce its intrastate
switched access rates by an amount equal to 33 percent of the difference between its
intrastate and interstate switched access rates. No later than four years after the
bill's effective date, a large ILEC must further reduce its intrastate switched access
rates by an amount equal to 50 percent of the difference between its intrastate and
interstate switched access rates. No later than five years after the bill's effective
date, a large ILEC must further reduce its intrastate switched access rates to mirror
its interstate switched access rates and, beginning on that date, may not charge
intrastate switched access rates that are higher than its interstate switched access
rates.
New nonincumbents. The bill defines "new nonincumbent" as a
telecommunications provider that is not an ILEC and that was initially certified as
a TU or an ATU on or after January 1, 2011, except that "new nonincumbent" does
not include an ATU that was formerly certified as a TU. Within 30 days after the bill's
effective date, the bill prohibits a new nonincumbent from charging intrastate
switched access rates that are higher than its interstate switched access rates.
Large nonincumbents. The bill defines "large nonincumbent" as a
telecommunications provider, other than an ILEC, that had 10,000 or more access
lines in the state as of January 1, 2010, and that was initially certified as a TU or an
ATU before January 1, 2011. The bill prohibits a large nonincumbent from charging
intrastate switched access rates that are higher than the rates it charged on January
1, 2011, except for increases that result in mirroring interstate switched access rates.
No later than four years after the bill's effective date, a large nonincumbent must
reduce its intrastate switched access rates by an amount equal to 33 percent of the
difference between its intrastate and interstate switched access rates. No later than
five years after the bill's effective date, a large nonincumbent must further reduce
its intrastate switched access rates by an amount equal to 50 percent of the difference
between its intrastate and interstate switched access rates. No later than six years
after the bill's effective date, a large nonincumbent must further reduce its intrastate
switched access rates to mirror its interstate switched access rates and, beginning
on that date, may not charge intrastate rates that are higher than its interstate
rates.
Other requirements. The bill provides that, except to enforce the above
requirements, the PSC may not investigate, review, or set intrastate switched access
rates for large ILECs, new nonincumbents, or large nonincumbents. Also, during the
four-year period beginning on the bill's effective date, the PSC is prohibited from
investigating, reviewing, or setting the intrastate switched access rates of a "small

ILEC," which the bill defines as an ILEC that, with any ILEC affiliates, had fewer
than 150,000 access lines in this state as of January 1, 2010. In addition, during the
three-year period beginning on the bill's effective date, the PSC is prohibited from
doing the same with respect to a "small nonincumbent," which the bill defines as a
telecommunications provider, other than an ILEC, that had fewer than 10,000 access
lines in the state as of January 1, 2010, and that was initially certified as a TU or an
ATU before January 1, 2011. However, the bill allows the PSC to enforce reductions
in intrastate switched access rates ordered by the PSC prior to the bill's effective
date. Also, the bill allows the PSC to approve certain increases in intrastate switched
access rates that are included in tariff revisions, which are discussed below.
Tariffs
In general. The bill allows, but does not require, a TU or an ATU to do any of
the following: 1) retain on file with the PSC tariffs showing the service rates, tolls,
and charges the TU or ATU has established for some or all services that the TU or
ATU performs in the state; 2) file new tariffs with the PSC for some or all of such
services; 3) withdraw tariffs for any service, except for intrastate switched access
service; and 4) file revised tariffs that change the rates, tolls, charges, or terms and
conditions under tariffs on file with the PSC. Except for changes that constitute
increases in intrastate switched access rates, tariff revisions are effective at the time
specified in the revised tariff as filed with the PSC. Except for new tariffs for
intrastate switched access services, a new tariff is effective on the date specified in
the tariff, unless the PSC, within ten days after the new tariff is filed, suspends the
new tariff. If the PSC suspends a new tariff, the PSC may modify the new tariff only
to the extent that the new tariff violates certain requirements that apply to the TU
or ATU, and only after granting the TU or ATU an opportunity for a hearing. If the
PSC fails to modify the new tariff within deadlines specified in the bill, the new tariff
is effective as filed.
The bill also allows a tariff for a service that permits a TU or an ATU to enter
into an individual contract with an individual customer under rates, terms, or
conditions that are different from those specified for the service in the tariff. Except
for such an individual contract, the bill prohibits a TU or an ATU from receiving for
a service more or less compensation than that specified for the service in a tariff, and
prohibits a TU or an ATU from receiving compensation for a service that is not
specified in a tariff. Also, copies of tariffs filed under the bill must be made available
to consumers in a form and place readily accessible to the public.
Intrastate switched access service. No later than 90 days after the bill's
effective date, a TU or an ATU that provides intrastate switched access service must
have on file with the PSC a tariff showing the rates, tolls, and charges for the service.
The bill provides that the absence of such a tariff before that deadline does not
prohibit a TU or an ATU from charging intrastate switched access rates that comply
with the requirements for intrastate switched access rates described above or that
are charged pursuant to a prior order of the PSC. If a TU or an ATU must file a new
tariff to comply with the foregoing requirement, and the tariff includes intrastate
switched access rates that are higher than the rates the TU or ATU charged on

January 1, 2011, the PSC must approve the tariff, unless certain exceptions are
satisfied.
The PSC is authorized to enforce payment of rates specified in a tariff for
intrastate switched access rates. Once such a tariff is in effect, the bill prohibits a
TU or an ATU from withdrawing the tariff. However, under certain circumstances,
a TU or an ATU may revise the tariff to increase intrastate switched access rates.
The PSC must approve the increase, except for certain specified increases that are
effective at the time specified in a revised tariff.
Interconnected VOIP service
With certain exceptions, the bill provides that interconnected VOIP service is
exempt from PSC regulation. Under the bill, "interconnected VOIP service" has the
same meaning as under federal law, which is a service requiring a broadband
connection and Internet protocol-compatible customer premises equipment that
allows the user to engage in real-time, two-way communication over the public
switched telephone network.
One exception to the exemption is that an entity that provides interconnected
VOIP service must make contributions to the state's universal service fund based on
the entity's revenues from providing intrastate interconnected VOIP service. The
bill specifies the methods for calculating such revenues. Under the other exceptions
to the exemption, a provider of interconnected VOIP service must do the following,
which apply to other telecommunications providers under current law: 1) impose a
monthly police and fire protection fee on its customers; 2) pay assessments for
DATCP enforcement of certain consumer protection requirements; and 3) pay
assessments for a statewide telecommunications relay service. In addition,
interconnected VOIP service is subject to the PSC's authority over interconnection
agreements under current law. The bill also provides that, unless otherwise provided
under federal law, an entity that provides interconnected VOIP service must pay
intrastate switched access rates. Also, unless otherwise provided under federal law,
if the entity provides intrastate switched access service in connection with the
interconnected VOIP service, the entity is allowed to charge intrastate switched
access rates for the service.
Universal service
Under current law, the state's universal service fund is used for, among other
things, supporting programs that promote access to essential and advanced
telecommunications services. Current law requires the PSC to promulgate rules
that define the essential and advanced telecommunications services that must be
available to all customers at affordable prices as a necessary component of universal
service. The essential and advanced telecommunications services must be based on
market, social, economic development, and infrastructure development principles
rather than on specific technologies or providers.
This bill repeals the foregoing requirements regarding PSC rules and requires
instead that certain telecommunications providers make available to their
customers all essential telecommunications services. In addition, the bill eliminates
advanced telecommunications services from the programs supported by the state's
universal service fund. The bill defines "essential telecommunications services" as

services or functionalities listed in a regulation by the Federal Communications
Commission as of January 1, 2010. The bill's requirements apply to a
telecommunications provider that is designated under federal law as a
telecommunications carrier eligible to receive support from the federal universal
service fund. Also, the bill provides that a telecommunications provider may provide
essential telecommunications services itself or through an affiliate or through the
use of any available technology or mode. In addition, the bill limits the requirements
that the PSC may impose on a wireless telecommunications provider that receives
support from the federal universal service fund but does not receive support from the
state's universal service fund.
Basic voice service
The bill requires an ILEC to make basic voice service available to all residential
customers within the ILEC's local exchange area. "Basic voice service" is defined, in
part, as two-way voice communication service within a local calling area. The bill
allows an ILEC to provide basic voice service through an affiliate or through the use
of any available technology or mode.
The bill also allows an ILEC to apply to the PSC for a waiver from the foregoing
requirements. The PSC must grant a waiver if the waiver is in the public interest
or effective competition exists in the local exchange area. If the PSC fails to meet a
120-day deadline for the waiver request, the waiver request is considered granted
by operation of law. In addition, the PSC must grant a waiver if the PSC previously
found that effective competition existed. However, the PSC may not grant a waiver
based on a previous finding of effective competition until after June 1, 2012. If the
PSC fails to meet a 20-day deadline for a waiver request based on a previous finding
of effective competition, the waiver request is considered granted by operation of law.
The bill also provides that decisions of the PSC prior to the effective date of the bill
that eliminate an ILEC's provider of last-resort obligations remain in force and
effect. Finally, the bill provides that none of the bill's basic voice service
requirements apply after April 30, 2013.
Use of transmission equipment and property
Current law requires any person who owns transmission equipment and
property to permit, for reasonable compensation, a public utility or
telecommunications provider to use the equipment and property, if certain
requirements are satisfied. Current law defines "transmission equipment and
property" to include any conduit, subway, pole, tower, transmission wire, or other
equipment, that is on, over, or under any street or highway. The PSC is authorized
to resolve disputes regarding such uses of transmission equipment and property, and
may prescribe reasonable conditions and compensation for such uses.
This bill defines "transmission equipment and property" so that it also includes
any equipment and property that is on, over, or under any right-of-way owned or
controlled by a county, city, village, or town or public utility owned or operated by any
county, city, village, or town. In addition, the bill allows a person granted a video
service or cable television franchise under current law, in addition to a public utility
or telecommunications provider, to use transmission equipment and property under
the foregoing conditions. Also, the bill specifies that pole attachments constitute

transmission equipment and property that are subject to the foregoing
requirements.
Other changes
The bill makes other changes to telecommunications regulation, including the
following:
1. The bill eliminates the conveyance of data or other information from the
definition of "telecommunications service" for purposes of the statutes administered
by the PSC and certain other statutes. As a result, the definition is limited to the
conveyance of voice communication, except that the bill also specifies that the
definition includes switched access service.
2. Under current law, a company that provides telecommunications service
may, subject to municipal regulation and PSC review, maintain lines within public
rights-of-way. Current law does not define "telecommunications service" for this
purpose. The bill defines "telecommunications service" for this purpose to include
the conveyance of voice communication, data, or other information.
3. The bill eliminates a prohibition under current law against TUs and other
telecommunications providers from giving certain preferences to their consumer
retail departments or affiliates.
4. The bill eliminates certain requirements under current law that apply to
certain telecommunications providers regarding issuance of securities, capital
structure, and payment of dividends.
5. The bill exempts telecommunications providers from the PSC's authority to
require public utilities to answer questionnaires and provide certain documents to
the PSC, and the bill clarifies that the PSC's authority to require
telecommunications providers to answer questionnaires applies only to matters
within the PSC's jurisdiction.
For further information see the state 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:
SB13, s. 1 1Section 1. 20.155 (1) (q) of the statutes is amended to read:
SB13,10,52 20.155 (1) (q) Universal telecommunications service. From the universal
3service fund, the amounts in the schedule for the promotion of universal
4telecommunications service for the purposes specified in s. 196.218 (5) (a) 1. to, 4.,
58. and 9.
SB13, s. 2 6Section 2. 93.01 (1m) of the statutes is amended to read:
SB13,11,9
193.01 (1m) "Business" includes any business, except that of banks, savings
2banks, credit unions, savings and loan associations, and insurance companies.
3"Business" includes public utilities and telecommunications carriers to the extent
4that their activities, beyond registration, notice, and reporting activities, are not
5regulated by the public service commission and includes public utility and
6telecommunications carrier methods of competition or trade and advertising
7practices that are exempt from regulation by the public service commission under s.
8196.195, 196.196, 196.202, 196.203, 196.206, 196.219, or 196.499, or 196.50 (2) (i) or
9by other action of the commission.
SB13, s. 3 10Section 3. 133.07 (2) of the statutes is amended to read:
SB13,11,1811 133.07 (2) This chapter does not prohibit activities of any public utility, as
12defined in s. 196.01 (5), or telecommunications carrier, as defined in s. 196.01 (8m),
13which are required by ch. 196 or rules or orders under ch. 196, activities necessary
14to comply with that chapter or those rules or orders or activities that are actively
15supervised by the public service commission. This subsection does not apply to
16activities of a public utility or telecommunications carrier that are exempt from
17public service commission regulation under s. 196.195, 196.196, 196.202, 196.203,
18196.206, 196.219 or, 196.499, or 196.50 (2) (i) or by other action by the commission.
SB13, s. 4 19Section 4. 182.017 (1g) (cq) of the statutes is created to read:
SB13,11,2320 182.017 (1g) (cq) "Telecommunications service" means the offering for sale of
21the conveyance of voice, data, or other information, including the sale of service for
22collection, storage, forwarding, switching, and delivery incidental to such
23communication regardless of the technology or mode used to make such offering.
SB13, s. 5 24Section 5. 196.01 (1d) (g) of the statutes is created to read:
SB13,12,2
1196.01 (1d) (g) A telecommunications utility certified under s. 196.203
2pursuant to s. 196.50 (2) (j) 1. a.
SB13, s. 6 3Section 6. 196.01 (2s) of the statutes is created to read:
SB13,12,54 196.01 (2s) "Incumbent local exchange carrier" has the meaning given in 47
5USC 251
(h).
SB13, s. 7 6Section 7. 196.01 (3a) of the statutes is created to read:
SB13,12,87 196.01 (3a) "Interconnected voice over Internet protocol service" has the
8meaning given in 47 CFR 9.3.
SB13, s. 8 9Section 8. 196.01 (8d) of the statutes is created to read:
SB13,12,1210 196.01 (8d) "Switched access rates" means the rates, rate elements, and rate
11structure, including all applicable fixed and traffic sensitive charges, that a
12telecommunications provider charges for the provision of switched access services.
SB13, s. 9 13Section 9. 196.01 (8e) of the statutes is created to read:
SB13,12,1614 196.01 (8e) "Switched access service" means the offering of switched access to
15a local exchange network for the purpose of enabling an entity to originate or
16terminate telecommunications service within the local exchange.
SB13, s. 10 17Section 10. 196.01 (9m) of the statutes is amended to read:
SB13,12,2518 196.01 (9m) "Telecommunications service" means the offering for sale of the
19conveyance of voice, data or other information at any frequency over any part of the
20electromagnetic spectrum
communication, including the sale of service for collection,
21storage, forwarding, switching, and delivery incidental to such communication and
22including the regulated sale of customer premises equipment
, regardless of the
23technology or mode used to make such offering. "Telecommunications service"
24includes switched access service
. "Telecommunications service" does not include
25cable service or broadcast service.
SB13, s. 11
1Section 11. 196.01 (12w) of the statutes is created to read:
SB13,13,32 196.01 (12w) (a) "Wholesale telecommunications service" means, except as
3provided in par. (b), a service that satisfies all of the following:
SB13,13,54 1. The service is provided by a telecommunications provider to another
5telecommunications provider other than an affiliate, as defined in s. 196.212 (1) (a).
SB13,13,66 2. The service is subject to regulation by the commission under this chapter.
SB13,13,87 3. The service is subsequently used in the provision of a telecommunications
8service to retail end users.
SB13,13,109 (b) "Wholesale telecommunications service" does not include switched access
10service.
SB13, s. 12 11Section 12. 196.016 of the statutes is created to read:
SB13,13,17 12196.016 Relationship to certain federal telecommunications law.
13Except as provided in s. 196.50 (2) (j) 2. and 3., nothing in this chapter is intended
14to either reduce or expand the scope and application of the federal
15Telecommunications Act of 1996, P.L. 104-104, including the jurisdiction and
16authority granted to the commission thereunder, and the commission may take any
17action that the commission is authorized to take under that federal act.
SB13, s. 13 18Section 13. 196.02 (2) of the statutes is amended to read:
SB13,14,219 196.02 (2) Definition; classification. In this subsection, "public utility" does
20not include a telecommunications cooperative, an unincorporated
21telecommunications cooperative association, or a small telecommunications utility
22except as provided under s. 196.205 or 196.215 (2) and does not include an alternative
23telecommunications utility.
The commission shall provide for a comprehensive
24classification of service for each public utility. The classification may take into
25account the quantity used, the time when used, the purpose for which used, and any

1other reasonable consideration. Each public utility shall conform its schedules of
2rates, tolls and charges to such classification.
SB13, s. 14 3Section 14. 196.04 (1) (a) 1. of the statutes is renumbered 196.04 (1) (a) 4. and
4amended to read:
SB13,14,75 196.04 (1) (a) 4. "Transmission equipment and property" means any conduit,
6subway, pole, tower, transmission wire, or other equipment on, over, or under any
7right-of-way owned or controlled by a political subdivision, street, or highway.
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