Rule-Making Notices (Hearing Notices)

Section PSC 165.0202 on customer complaints requires telecommunications providers to investigate customer complaints. The proposed changes to this section establish the time period for customer complaint record retention and how telecommunications providers categorize customer complaints. One portion was moved unchanged and renumbered to s. PSC 165.0804.

A new s. PSC 165.0301 was created to define and standardize the application process for new telecommunications service. One provision allows a provider to restrict an applicant's toll service for ten days to investigate and establish the applicant's responsibility for a disputed outstanding bill.

Section PSC 165.0302 sets forth the various types of information providers must make available to customers and the method and frequency of providing that information. The expansion of this section reflects the complexity of telecommunications services today and the need for customers to be given accurate and consistent information on a regular basis.

Section PSC 165.0303 on dispute procedures explains the utility and Commission processes available to customers for handling service inquiries or problems. Language was added to address disputes involving third party billing agents and modern payment methods. The proposed changes also clarify the Commission review and appeal processes.

A new s. PSC 165.0304 is created to address the problem of “slamming" which is the unauthorized changing of a customer's telecommunications provider. This section incorporates the federal statutory requirements for making provider selection changes with only minor modifications to reflect Wisconsin drafting conventions.

A new s. PSC 165.0305 on provider selection freezes is created to provide customers with a way to retain the telecommunications provider selected by the customer until the customer provides the required authorization for a change to another telecommunications provider. The proposed draft rule mirrors the federal rule except for minor modifications to reflect Wisconsin drafting conventions.

Section PSC 165.0306 on directories sets forth information and publication requirements for provider directory listings. The changes to this section update obsolete language and include an electronic format option. Providers may fulfill the requirements of this section by having the required information concerning itself and its customers included in the applicable directory of another provider that is meeting the requirements under this section.

A new s. PSC 165.0307 is created to provide rules for the development of telecommunications assistance programs (TelCAP). The purpose of these programs is to increase or stabilize subscription levels for essential telephone service, or to address avoidance of disconnection of service to low-income households or other customers with payment problems. Ameritech is currently operating one such telecommunications plan under a pilot program approved by the Commission.

A new s. PSC 165.0308 is created to expressly prohibit oppressive and deceptive practices. Similar language was incorporated into the revised service rules for electrical utilities, which became effective on August 1, 2000. This section is not intended to limit or usurp the Department of Agriculture, Trade and Consumer Protection's authority or powers under ch. 100 and related administrative rules.

Section PSC 165.0401 on customer billing sets forth the minimum standards for information to be included on customer bills. The proposed changes incorporate federal “Truth-in-Billing" language with the goal of making telecommunications bills easier for consumers to read and understand. A provision was added allowing providers to assess a late payment charge on residential and business bills. Ameritech is currently allowed to impose late payment charges as part of an ongoing TelCAP program approved by the Commission. This section also includes proposed language to compensate consumers for out-of-service situations, missed appointments and installation delays.

Section PSC 165.0402 on deposits for residential service explains the conditions under which a provider may request a deposit from a new or existing customer. New language defines the formula for calculating the deposit amount and requires a provider to explain why a deposit is required, and how the deposit amount was determined. A provision was added allowing a provider to accept advance payments or impose service restrictions in lieu of accepting a deposit from a residential customer.

A new s. PSC 165.0403 is created to detail the conditions under which a provider may request a deposit from a business customer. Business deposits had been part of a general section on deposits. The proposed language allows a provider to request a deposit on an existing account, defines the formula for calculating the deposit amount and requires a provider to explain why a deposit is required, and how the deposit amount was determined. A provision was added allowing a provider to accept advance payments or impose service restrictions in lieu of accepting a deposit from a business customer.

Section PSC 165.0404 on deferred payment agreements outlines the details of payment plans provided to customers when they are unable to pay the amount owing in full. A provision allowing service restrictions during a deferred payment agreement has been incorporated into this section. Ameritech is currently allowed to impose such service restrictions as part of an ongoing TelCAP program approved by the Commission.

A new s. PSC 165.0501 on refusal of service is created to clarify the circumstances under which a provider can and cannot refuse initial service. Much of the language was previously included in “Disconnection and refusal of service" but was given its own section to specifically address situations involving the application process. Proposed language reflects current residency and identification issues. A provision was added allowing a provider to impose a toll restriction while investigating and establishing an applicant's responsibility for an outstanding bill from the provider.

A new s. PSC 165.0502 on restriction of service is created to define the conditions under which a telecommunications provider can restrict a customer's service and the limitations on those restrictions. This section addresses both voluntary and involuntary service restrictions and codifies several provisions that are currently part of an ongoing TelCAP program approved by the Commission. Providers may now impose mandatory toll restriction and limit access to services such as third number and collect-call billing, pay-per-call and advanced calling features during a deferred payment agreement, in lieu of a deposit, and when an applicant for new service has an unpaid balance with the provider.

Section PSC 165.0503 on disconnection of service includes modifications that update and clarify current rule language. A major change to this section involves the addition of a provision prohibiting the disconnection of local service for non-payment of ECC or toll charges. Other changes include increasing the period of time allowed for bill payment and the receipt of disconnection notices, and the expansion of the provision on medical or protective service emergencies. The medical or protective service emergency provision is currently part of an ongoing TelCAP program approved by the Commission.

Section PSC 165.0606 on business office answering time standards defines acceptable performance levels for customer calls made in order to obtain information or transact business such as establishing service, changing service, making bill inquiries, or establishing payment arrangements. Language was included requiring providers to calculate and record average connection and answer speed data, but only if the provider uses a computerized call center to respond to customer calls.

Initial Regulatory Flexibility Analysis

These rules apply to all telecommunications providers other than wireless carriers and, to the extent they provide local service or intrastate toll, interexchange carriers. This includes incumbent local exchange companies (ILECs), competitive local exchange companies (CLECs), cooperatives, and alternative telecommunications utilities such as resellers. Many of these companies are small businesses under s. 227.114, Stats. For example, 76 ILECs are small telecommunications utilities. Under s. 196.216, Stats., small telecommunications utilities are considered small businesses. The Commission created a workgroup of industry representatives and members of the public in order to gather input as these rules were drafted. In an effort to recognize and, to the extent practicable, minimize the potential impact of the rules on small businesses, the Commission specifically named industry members who represented small telecommunications businesses to the workgroup. Each subcommittee also had a small business representative. Any methods for reducing the impact on small business that the Commission feels are feasible have been incorporated into the rule.

Fiscal Effect

This rule change has no fiscal impact. A completed Fiscal Estimate form is included as Attachment C.

Written Comments

Any person may submit written comments on these proposed rules. The hearing record will be open for written comments from the public, effective immediately, and until Friday August 23, 2002 at noon (Thursday August 22, 2002 at noon if filed by fax). All written comments must include a reference on the filing to docket 1-AC-184. File by one mode only.

If filing by mail, courier, or hand delivery: Address as shown in the box on page 1. Industry parties should submit an original and 15 copies. Members of the general public need only file an original.

If filing by fax: Send fax comments to [phone]. Fax filing cover sheet MUST state “Official Filing," the docket number (1-AC-184), and the number of pages (limited to 20 pages for fax comments).

Contact Person

Questions regarding this matter should be directed to Jane Zemlicka, docket coordinator at [phone]. Hearing or speech-impaired individuals may also use the Commission's TTY number, [phone].

The Commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact Jane Zemlicka, as indicated in the previous paragraph, as soon as possible.

Notice of Proposed Rule

Revenue
[CR 02-053]

NOTICE IS HEREBY GIVEN that pursuant to ss. 77.61 (9) and 227.11 (2), Stats., and interpreting s. 70.11 (21), 76.025 (1) and 77.54 (26), Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing unless, within 30 days after publication of this notice on July 1, 2002, it is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.

Analysis by the Department of Revenue

Statutory authority: ss. 77.61 (9) and 227.11 (2), Stats.

Statutes interpreted: ss. 70.11 (21), 76.025 (1) and 77.54 (26), Stats.

Section Tax 6.40 guides administration of the property tax exemption for waste treatment facilities owned by public utilities. Section Tax 11.11 guides administration of the sales and use tax exemption for waste treatment facilities. Section Tax 12.40 guides administration of the property tax exemption for industrial waste treatment facilities taxed under ch. 70, Stats.

Prior to 2001 Wis. Act 16, the property tax exemption for industrial waste treatment facilities under s. 70.11 (21), Stats., required an approval process whereby application was made to the Department of Revenue. Under 2001 Wis. Act 16, owners of industrial waste treatment property that is taxed under ch. 70, Stats., are no longer required to apply to the Department of Revenue for the property tax exemption; the application process will continue to be required for public utility property taxed under ch. 76, Stats.

Tangible personal property becoming a component part of an industrial waste treatment facility is exempt from sales and use taxation if the waste treatment property is exempt from the property tax. While this provision is unchanged by 2001 Wis. Act 16, the sales and use tax exemption is no longer tied to a Department of Revenue approval process for property taxed under ch. 70, Stats.

The proposed order clarifies the different requirements for obtaining sales and use tax exemption for waste treatment facilities in s. Tax 11.11 and repeals the approval procedures required for the property tax exemption in s. Tax 12.40. The proposed order also: updates format and style in ss. Tax 6.40, 11.11 and 12.40, per Legislative Council Rules Clearinghouse (“Clearinghouse") standards; updates a department address in ss. Tax 6.40 and Tax 12.40 and moves it from the text of the rule to a note in s. Tax 6.40, per Clearinghouse standards; and alphabetizes definitions and moves a “non-exempt" provision from a definition to a separate paragraph in ss. Tax 6.40 and 12.40, per Clearinghouse standards.

SECTION 1. Tax 6.40 (title) and (2)(b) are amended to read:

Tax 6.40 (title) Waste treatment facilities ( - industrial/utility).

(2) (b) The completed form "Application for Exemption of Waste Treatment Facility-Utility" should be sent to the Bureau of Utility and Special Taxes, Division of State/Local Finance, Wisconsin Department of Revenue, P.O. Box 8933, Madison, WI 53708.

Note to Revisor: Insert the following note at the end of Tax 6.40 (2) (b):

Note: The address for mailing the application form is Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, Division of State and Local Finance, PO Box 8971, Madison WI 53708-8971.

SECTION 2. Tax 6.40 (3) (a) 1. and 3. are renumbered Tax 6.40 (3) (a) 3. and 1. and as renumbered are amended to read:

Tax 6.40 (3) (a) 1. “ Facility; " means tangible personal property that is built, constructed or installed as a unit so as to be readily identifiable as directly performing a waste treatment function.

3. “Waste;" means that which is left over as superfluous, discarded or fugitive material. In addition, “industrial waste wastes" is defined by reference to s. 281.01(5), Stats., as including liquid or other wastes resulting from any process of industry, manufacture, trade, business or the development of any natural resource. “Air contaminant" is defined by reference to s. 285.01(1), Stats., as dust, fumes, mist, liquid, smoke, other particulate matter, vapor, gas, odorous substances or any combination thereof but shall not include uncombined water vapor.

SECTION 3. Tax 6.40 (3) (a) 2. and 4., (b) and (c) are amended to read:

Tax 6.40 (3) (a) 2. “Treatment; " means removing, altering or storing waste.

4. “Waste treatment facility; " means tangible personal property that is built, constructed or installed as a unit so as to be readily identifiable as directly removing, altering or storing leftover, superfluous, discarded or fugitive material. Monitoring equipment which is not a component or integral part of a waste treatment facility is not exempt.

(b) The exemption for industrial waste treatment facilities does not extend to “ ' unnecessary siltation ' resulting from operations such as the washing of vegetables or raw food products, gravel washing, stripping of lands for development of subdivisions, highways, quarries and gravel pits, mine drainage, cleaning of vehicles or barges or gross neglect of land erosion" as provided in s. 281.01 (7), Stats.

(c) The exemption also for industrial waste treatment facilities does not apply to conversion of an industrial furnace from one type of fuel to another type of fuel . The exemption does not apply , or to the increased height of a smoke stack to diffuse emissions over a wide area or increments to property held for the production of income but which may be indirectly related to pollution abatement. However, the installation of a scrubber or electrostatic precipitator in a smoke stack could qualify for exemption.

SECTION 4. Tax 6.40 (3) (d) is created to read:

Tax 6.40 (3) (d) The exemption for industrial waste treatment facilities does not apply to monitoring equipment that is not a component or integral part of a waste treatment facility.

Note to Revisor: Replace the note at the end of Tax 6.40 with the following:

Note: Section Tax 6.40 interprets s. 76.025 (1), Stats.

SECTION 5. Tax 11.11 (title) and (2) (title) are amended to read:

Tax 11.11 (title) Industrial or Utility, industrial and governmental waste treatment facilities.

(2) (title) INDUSTRIAL UTILITY WASTE TREATMENT EXEMPTION.

SECTION 6. Tax 11.11 (2) (a) is renumbered Tax 11.11(2) and amended to read:

Tax. 11.11 (2) If an industrial or a utility waste treatment facility that is taxed under ch. 76, Stats., qualifies for property tax exemption under s. 70.11(21)(a) 76.025(1), Stats., as approved by the department, it qualifies for the sales and use tax exemption under s. 77.54 (26), Stats.

Note to Revisor: Insert the following note at the end of Tax 11.11(2):

Note: Refer to s. Tax 6.40 for information on how to request approvals for property tax exemption for utility waste treatment facilities. For more information regarding exemptions for waste treatment facilities owned by a utility, including railroads, airlines and pipelines, approved by the department, write to Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, PO Box 8971, Madison WI 53708-8971; telephone [phone]; send an e-mail to [e-mail]; or access the department's internet web site at www.dor.state.wi.us/contact/slfbust.

SECTION 7. Tax 11.11 (2) (b) is repealed.

SECTION 8. Tax 11.11 (2m) is created to read:

Tax 11.11 (2m) INDUSTRIAL WASTE TREATMENT EXEMPTION. (a) An industrial waste treatment facility is any property taxed under ch. 70, Stats., that is built, constructed or installed as a unit used for the treatment of liquid or other wastes resulting from any process of industry, manufacture, trade, business or the development of any natural resource.

(b) Tangible personal property becoming a component part of an industrial waste treatment facility is exempt from the sales and use tax under s. 77.54 (26), Stats., if the facility qualifies for property tax exemption under s. 70.11 (21) (a), Stats.

Note: Refer to s. Tax 12.40 for information related to the property tax exemption for industrial waste treatment facilities. For more information regarding the property tax exemption for industrial waste treatment facilities of manufacturers write or call the district office of the Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessments. To locate the district office, write or call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessment, PO Box 8971, Madison WI 53708-8971; telephone [phone]. The web site is www.dor.state.wi.us/contact/slfbmta. To ascertain whether a non-manufacturing property would be exempt under s. 70.11(21), Stats., owners may refer to the Wisconsin Property Assessment Manual or contact the local property tax assessor.

Note to Revisor: Insert the following note at the end of Tax 11.11 (3):

Note: For more information regarding the exemption for municipal treatment facilities, write or call Wisconsin Department of Revenue, Bureau of Customer Service, Mail Stop 5-77, PO Box 8902, Madison WI 53708-8902, telephone [phone]. The web site is www.dor.state.wi.us/contact/pcs.html#cust.

SECTION 9. Tax 11.11 (4) is renumbered Tax 11.11 (4) (a) and amended to read:

Tax 11.11 (4) (a) The repair, service, alteration, cleaning, painting and maintenance of a utility waste treatment facility described in sub. (2), an industrial waste treatment facility described in sub. (2) (2m) and a municipal waste treatment facility described in sub. (3) as well as the repair parts and replacement for those types of facilities and chemicals, supplies and utilities used or consumed in operating those types of facilities are exempt from the sales and use tax.

SECTION 10. Tax 11.11 (4) (b) is created to read:

Tax 11.11 (4) (b) Chemicals and supplies, including fuel and electricity, used or consumed in operating a utility waste treatment facility described in sub. (2), an industrial waste treatment facility described in sub. (2m) and a municipal waste treatment facility described in sub. (3) are exempt from the sales and use tax.

SECTION 11. Tax 11.11 (5) (a) is amended to read:

Tax 11.11 (5) (a) Exempt purchases. The sales and use tax exemption extends to and includes the purchases of tangible personal property by a contractor-installer who incorporates the property into an approved industrial utility waste treatment facility or who incorporates the property into an industrial waste treatment facility or a municipal waste treatment facility. The contractor-installer shall certify the intended exempt use of the item to each supplier in order to relieve the supplier of the duty of collecting and reporting the tax on the sales. Certification of exempt use shall be made on a Wisconsin sales and use tax exemption certificate, form S-211.

SECTION 12. Tax 11.11 (5) (c) is repealed and recreated to read:

Tax 11.11 (5) (c) Determining exemptions. 1. 'Utility property taxed under ch. 76, Stats.' A contractor or subcontractor may be liable for sales and use tax on a purchase of tangible personal property that becomes a component part of a utility waste treatment facility that has not been approved by the department for a property tax exemption under s. 76.025(1), Stats.

Note: Contractors may direct questions concerning the property to the department as provided in sub. (2).

2. 'Industrial property taxed under ch.70, Stats.' Approvals are not required for industrial waste treatment facilities. A contractor or subcontractor may be liable for sales and use tax on a purchase of tangible personal property that becomes a component part of a facility that is determined to not qualify for a waste treatment facility property tax exemption under s. 70.11 (21), Stats.

Note: Contractors may direct questions concerning the taxability of the waste treatment facility to the department as provided in sub. (2m).

3. 'Municipal waste treatment facilities.' Approvals are not required for municipal waste treatment facilities. A contractor or subcontractor may be liable for sales and use tax on a purchase of tangible personal property that becomes a component part of a facility that is determined not to be a municipal waste treatment facility as provided in sub. (3).

Note: Contractors may direct questions concerning municipal waste treatment facilities to the department as provided in sub. (3).

Note to Revisor: Remove the first two notes at the end of Tax 11.11, and replace the last note with the following:

Note: The interpretations in s. Tax 11.11 are effective July 31, 1975 when ss. 70.11 (21) and 77.54 (26), Stats., were revised, except: (a) The exemptions for chemicals and supplies used or consumed in operating a waste treatment facility became effective September 1, 1979, pursuant to Chapter 39, Laws of 1979; and (b) The approval process for property and sales tax exemptions for industrial waste treatment facilities, except utilities, were eliminated effective January 1, 2002, pursuant to 2001 Wis. Act 16.

SECTION 13. Tax 12.40 (title) is amended to read:

Tax 12.40 (title) Waste treatment facilities ( - industrial).

SECTION 14. Tax 12.40 (2) is repealed.

SECTION 15. Tax 12.40 (3) (a) 1. and 3. are renumbered Tax 12.40 (3) (a) 3. and 1. and as renumbered are amended to read:

Tax 12.40 (3) (a) 1. “ Facility; " means tangible property that is built, constructed or installed as a unit so as to be readily identifiable as directly performing a waste treatment function.