Amendment SSA1-AB207

AB207-SSA1,10,9 (4) Video service franchise. (a) Application; affidavit. An applicant for a video service franchise shall submit an application to the commission that includes a completed affidavit signed by an officer or general partner of the applicant that affirms all of the following:

AB207-SSA1,10,12 1. That the applicant has filed or will timely file with the federal communications commission all forms required by that agency in advance of offering video service in this state.

AB207-SSA1,10,14 2. That the applicant agrees to comply with all applicable federal and state statutes, rules, and regulations.

AB207-SSA1,10,16 3. That the applicant agrees to comply with all applicable regulations of a municipality.

AB207-SSA1,10,20 (b) Application; video service area. 1. An application under par. (a) shall include an exact description of the video service area and identify the number of low-income households within the video service area. The video service area shall be described in terms of one of the following:

AB207-SSA1,10,21 a. Telephone service exchange areas.

AB207-SSA1,10,22 b. A collection of United States Census Bureau 13-digit block numbers.

AB207-SSA1,10,25 c. Geographic information system digital boundaries meeting or exceeding national map accuracy standards established by the U.S. Geological Survey, if the area is not large enough to be described as specified in subd. 1. a. or b.

AB207-SSA1,11,1 d. Municipalities.

AB207-SSA1,11,6 2. If the applicant is an incumbent cable operator that seeks to offer video service within one or more municipalities that have issued a cable franchise to the applicant, the video service area described under subd. 1. must consist of an area no smaller than the aggregate of the service areas under each cable franchise issued by a municipality in which the incumbent cable operator seeks to offer video service.

AB207-SSA1,11,8 (c) Application; other requirements. An application under par. (a) shall contain all of the following:

AB207-SSA1,11,10 1. The location and telephone number of the applicant's principal place of business within this state.

AB207-SSA1,11,13 2. The names of the applicant's principal executive officers who are responsible for communications concerning the application and the services to be offered pursuant to the application.

AB207-SSA1,11,15 3. The applicant's legal name and any name or names under which the applicant does or will provide video services in this state.

AB207-SSA1,11,18 4. A certification that the applicant concurrently delivered a copy of the application to each municipality that includes all or any part of the video service area described under par. (b).

AB207-SSA1,11,23 5. The expected date that the applicant will initially offer video service in the video service area described under par. (b). If a video service franchisee does not offer video service within 3 months after the expected date, the video service franchisee shall amend its application to update the expected date and explain the delay in offering video service.

AB207-SSA1,12,2 6. Adequate assurance that the applicant possesses the financial, managerial, legal, and technical qualifications necessary to construct and operate the proposed system, promptly repair any damage to the public rights-of-way caused by the applicant, and pay the cost of removal of its facilities.

AB207-SSA1,12,4 7. The applicant's general standards related to customer service established under s. 100.209 (3).

AB207-SSA1,12,8 (d) Confidentiality. Information included in an application under par. (a), or subsequently reported to the commission by a video service franchisee, shall be subject to the commission's rules under s. 196.135 (2), except that the commission may not treat as confidential any of the following:

AB207-SSA1,12,10 1. Information regarding the specific locations where access to video service is offered or available.

AB207-SSA1,12,11 2. Aggregate information included in reports required under this section.

AB207-SSA1,12,14 (e) Internet posting. Subject to par. (d), the commission shall post all applications for video service franchises on its Internet Web site no later than 5 business days after receiving an application.

AB207-SSA1,12,19 (f) Completeness notice. No later than 15 business days after receiving an application for a video service franchise, the commission shall notify the applicant whether the application is complete. If the application is not complete, the commission shall state in its notice the reasons the application is incomplete, and the applicant may resubmit the application.

AB207-SSA1,13,2 (g) Issuance. 1. No later than 30 business days after the commission's receipt of a complete application, the commission shall issue a video service franchise to the applicant. If the commission does not notify an applicant regarding the completeness of the application before the deadline specified in par. (f), or the commission does not issue a video service franchise to an applicant before the deadline under this paragraph, the commission is considered to have issued a video service franchise to the applicant on the 30th business day after the commission receives the application.

AB207-SSA1,13,5 2. No later than 3 business days after issuing a video service franchise to an applicant, the commission shall notify each municipality that includes any part of the video service area described by the applicant under par. (b).

AB207-SSA1,13,13 (h) Transfer. A video service franchisee may transfer its video service franchise to any successor in interest if the successor in interest submits, no later than 15 business days before completion of the transfer, a notice of the transfer to the commission and each municipality that includes any part of the video service area. The successor in interest may not provide video service unless the successor in interest applies for, and is issued, a video service franchise under this subsection. The commission may not issue a video service franchise to the successor in interest if any of the following apply:

AB207-SSA1,13,16 1. The video service franchisee that transferred the video service franchise to the successor in interest has committed a material and continuing violation of this section.

AB207-SSA1,13,18 2. The successor in interest has exhibited a pattern of noncompliance with customer service standards.

AB207-SSA1,13,19 3. The successor in interest is insolvent.

AB207-SSA1,13,24 (i) Termination; video service area modification. 1. Except as provided in subd. 2., a video service franchisee may terminate its video service franchise or modify its video service area by submitting a notice of the termination or modification to the commission and each municipality that includes any part of the video service area. The commission may not take any action regarding the notice.

AB207-SSA1,14,2 2. A video service franchisee may not terminate its video service franchise or modify its video service area if any of the following apply:

AB207-SSA1,14,4 a. The termination or modification results in an area in which no video service is available from any provider.

AB207-SSA1,14,6 b. The termination or modification is based on the race or income of the residents in the local area in which the residents reside.

AB207-SSA1,14,9 (j) Expiration and renewal. A video service franchise expires 10 years after the date that the commission issues the franchise. Upon expiration, a video service franchisee shall reapply for a video service franchise.

AB207-SSA1,14,13 (k) Commission expenses. The commission shall bill an applicant or video service franchisee under s. 196.85 (1) any expense incurred by the commission with respect to an application or any other matter regarding the applicant or video service franchisee.

AB207-SSA1,14,16 (L) Annual fees. Upon issuance of a video service franchise to a video service franchisee, and annually thereafter, the video service franchisee shall pay a fee of $2,000 to the department of agriculture, trade and consumer protection.

AB207-SSA1,14,23 (5) PEG channels. (a) Channel capacity; number of channels. 1. Except as provided in subd. 2., a municipality that includes any portion of the video service area of a video service franchisee may require the video service franchisee to do all of the following, and the video service franchisee shall take any required action no later than 90 days after the municipality notifies the video service franchisee of the requirement or than the date on which the video service franchisee begins to provide video service in the municipality, whichever is later:

AB207-SSA1,15,2 a. Designate the same amount of capacity on its video service network for PEG channels as an incumbent cable operator was required to designate under a cable franchise that was granted to the incumbent cable operator by the municipality and that was in effect on January 1, 2007.

AB207-SSA1,15,6 b. Retransmit to its subscribers the same number of PEG channels as an incumbent cable operator was required to retransmit under a cable franchise that was granted to the incumbent cable operator by the municipality and that was in effect on January 1, 2007.

AB207-SSA1,15,12 2. If a municipality that includes any portion of the video service area of a video service franchisee was provided less than 3 PEG channels by an incumbent cable operator on January 1, 2007, then, under subd. 1., the municipality may require the video service franchisee to designate sufficient capacity on its video service network for no more than 3 PEG channels and retransmit to its subscribers no more than 3 PEG channels.

AB207-SSA1,15,23 3. Any time that programming on any PEG channel that a municipality requires a video service franchisee to retransmit under this paragraph exceeds 40 hours per week as measured on a quarterly basis, the municipality may require the video service franchisee to designate sufficient capacity on its video service network for one additional PEG channel and retransmit to its subscribers one additional PEG channel. The municipality shall provide the video service franchisee with a written notice that specifies the number of PEG channels used by the municipality and verifies that the additional PEG channel will be put into actual use. No later than 90 days after receiving the notice, the video service franchisee shall comply with the requirement. The additional PEG channel may not be used for any purpose other than for carrying additional PEG channel programming.

AB207-SSA1,16,12 (b) Transmission duties. 1. If a municipality produces or maintains PEG channel programming in a manner or form that is compatible with a video service franchisee's video service network and that permits the video service franchisee to comply with the requirements of subd. 2., the municipality shall transmit the programming to the video service franchisee in that manner or form. If the municipality does not produce or maintain PEG channel programming in such manner or form, the video service franchisee shall be responsible for any changes in the manner or form of the transmission that are necessary to make PEG channel programming compatible with the technology or protocol used by the video service franchisee to deliver services. If a video service franchisee is required to make such changes to the manner or form of the transmission, the municipality shall provide reasonable access to the video service franchisee that allows the video service franchisee to transmit the PEG channel programming in an economical manner subject to the requirements of subd. 2.

AB207-SSA1,16,18 2. A video service franchisee shall retransmit PEG channels to its subscribers with visual and audio quality and functionality that is equivalent, from the viewing perspective of the subscriber, to that of commercial channels carried on the video service franchisee's basic video service offerings or service tiers and without the need for any equipment other than the equipment necessary to receive the video service franchisee's basic video service offerings or service tiers.

AB207-SSA1,17,2 3. A video service franchisee shall carry PEG channels on its basic video service. To the extent feasible, PEG channels may not be separated numerically from other channels carried on the video service franchisee's basic video service, and the channel numbers for PEG channels shall be the same channel numbers used by an incumbent cable operator unless prohibited by federal law. After the initial designation of PEG channel numbers, the channel numbers may not be changed without the agreement of the municipality or the municipality's PEG channel manager, unless the change is required by federal law. Each channel shall be capable of carrying a National Television Systems Committee television signal.

AB207-SSA1,17,5 (c) Fees prohibited. A video service franchisee may not charge a municipality, a municipality's PEG channel manager, or a municipality's PEG channel programming providers any fee for complying with this subsection.

AB207-SSA1,17,24 (d) Interconnection. Video service franchisees and incumbent cable operators shall negotiate in good faith amongst themselves to interconnect their video service networks, if needed, for the purpose of complying with this subsection. Interconnection may be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Video service franchisees and incumbent cable operators shall provide such interconnection on reasonable terms and conditions and may not withhold such interconnection. If video service franchisees and incumbent cable operators cannot reach a mutually acceptable interconnection agreement, a municipality may require an incumbent cable operator to allow a video service franchisee to interconnect its video service network with the incumbent cable operator's video service network at a technically feasible point on their video service networks. If no technically feasible point for interconnection between a video service franchisee and incumbent cable operator is available, the video service franchisee and incumbent cable operator shall each make an interconnection available to PEG channel local origination points and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be borne by a video service franchisee unless otherwise agreed to by the parties. The interconnection required by this paragraph shall be completed within the deadline for taking action required under par. (a) 1. that is specified in par. (a) 1. (intro.).

AB207-SSA1,18,6 (e) PEG channel usage. PEG channels required by a municipality under this subsection shall be for the exclusive use of the municipality, or the municipality's PEG channel manager, to provide public, education, and government programming, and may be used only for noncommercial purposes, except that advertising, underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding public, education, and government access related activities.

AB207-SSA1,18,14 (f) PEG channel listing. A video service franchisee shall provide a listing of PEG channels on channel cards and menus provided to subscribers in a manner equivalent to other channels if the video service franchisee uses such cards and menus. A video service franchisee shall provide a listing of PEG channel programming on its electronic program guide if such a guide is used by the video service franchisee. A municipality shall provide a video service franchisee or an agent designated by a video service franchisee with program schedules and information in a timely manner.

AB207-SSA1,18,18 (g) Programming. 1. A person that produces programming for broadcast on a PEG channel is solely responsible for the content of the programming. A video service franchisee may not exercise any editorial control over any programming on any PEG channel.

AB207-SSA1,18,20 2. A video service franchisee is not subject to any civil or criminal liability for any program carried on any PEG channel.

AB207-SSA1,18,23 (h) Enforcement. In an action to enforce this subsection, a court may not prohibit a video service franchisee from providing video service or require a video service franchisee to terminate video service.

AB207-SSA1,19,11 (6) Emergency alert system. A video service franchisee shall comply with all requirements of the federal communications commission regarding the distribution and notification of federal, state, and local emergency messages over the emergency alert system that apply to cable operators. A video service franchisee shall provide a requesting municipality with sufficient information regarding how to submit, via telephone or Web site listing, a local emergency alert for distribution over its video service network. A municipality that requires a municipally regulated cable operator to comply with emergency alert system message or service requirements that are in addition to the requirements imposed under this subsection may impose such additional requirements on a video service franchisee that provides video service within the municipality. A video service franchisee may provide a local emergency alert to an area larger than the boundaries of the municipality issuing the emergency alert.

AB207-SSA1,19,17 (7) Municipality fees. (a) Gross revenue calculation. 1. `Generally.' Gross revenue of a video service franchisee consists of all consideration of any kind or nature, including cash, credits, property, and the monetary value of in-kind contributions, received by the video service franchisee for the operation of a video service network to provide video service within the video service franchisee's video service area that is located within a municipality.

AB207-SSA1,19,19 2. `Inclusions.' Gross revenue of a video service franchisee includes all of the following:

AB207-SSA1,19,20 a. Recurring charges for video service.

AB207-SSA1,19,22 b. Event-based charges for video service, including pay-per-view and video-on-demand charges.

AB207-SSA1,19,23 c. Rental of set top boxes and other video service equipment.

AB207-SSA1,19,25 d. Service charges related to the provision of video service, including activation, installation, and repair charges.

AB207-SSA1,20,2 e. Administrative charges related to the provision of video service, including service order and service termination charges.

AB207-SSA1,20,4 f. Late payment fees or charges, insufficient funds check charges, and other charges assessed to recover the costs of collecting delinquent payments.

AB207-SSA1,20,12 g. A pro rata portion of all revenue that is derived by the video service franchisee or its affiliates pursuant to regional or national compensation arrangements for advertising, promoting, or exhibiting any products or services, and that is also derived from the operation of the video service franchisee's video service network to provide video service within a municipality. The pro rata portion shall be determined by dividing the number of the video service franchisee's subscribers in the municipality by the total number of the video service franchisee's subscribers in the regional or national area covered by the compensation arrangement.

AB207-SSA1,20,16 h. Commissions that are received by the video service franchisee as compensation for promoting or exhibiting any products or services on the video service franchisee's video service network, such as a home shopping or similar channel.

AB207-SSA1,20,17 i. Video service franchise fees.

AB207-SSA1,20,19 3. `Exclusions.' Gross revenue of a video service franchisee does not include any of the following:

AB207-SSA1,20,20 a. Revenues not actually received, including revenues that are billed.

AB207-SSA1,20,23 b. Refunds, discounts, or other price adjustments that reduce the amount of gross revenue received by the video service franchisee to the extent that the refund, discount, or other price adjustment is attributable to video service.

AB207-SSA1,21,3 c. Revenue from the sale of video service for resale to a purchaser that is required to collect a video service franchise fee from the purchaser's subscribers, but only if the purchaser certifies in writing that the purchaser will resell the service within the municipality to which the video service franchise fee is payable and that the purchaser will pay the video service franchise fee to the municipality.

AB207-SSA1,21,7 d. Any tax or fee of general applicability imposed upon the subscribers or the transaction by a city, state, federal, or any other governmental entity and collected by the video service franchisee and required to be remitted to the taxing entity, including sales and use taxes.

AB207-SSA1,21,8 e. Security deposits collected from subscribers.

AB207-SSA1,21,11 f. Amounts paid by subscribers to home shopping or similar vendors for merchandise sold through any home shopping channel offered as part of the video service.

AB207-SSA1,21,18 4. `Bundled services.' a. Except as provided in subd. 4. b., if a video service is bundled, packaged, or integrated functionally with other services, capabilities, or applications, the portion of the video service franchisee's revenue that is attributable to the other services, capabilities, or applications shall be included in the calculation of the video service franchisee's gross revenue unless the video service franchisee can reasonably identify the division or exclusion of the revenue from its books and records that are kept in the regular course of business.

AB207-SSA1,22,3 b. Gross revenue of a video service franchisee does not include any revenue received from nonvideo services, including revenue received from telecommunications services, information services, or the provision of directory or Internet advertising, including yellow pages, white pages, banner advertisement, and electronic publishing, or any other revenues attributed by a video service franchisee to nonvideo service in accordance with the video service franchisee's books and records kept in the regular course of business and in accordance with any applicable laws, rules, regulations, standards, or orders. This subd. 4. b. applies regardless of whether the nonvideo services are bundled, packaged, or functionally integrated with video services.

AB207-SSA1,22,8 5. `Affiliates.' Revenue of an affiliate of a video service franchisee shall be included in the video service franchisee's gross revenue to the extent the treatment of the revenue as revenue of the affiliate rather than of the video service franchisee has the effect of evading the requirement to pay a video service franchise fee or PEG support fee.

AB207-SSA1,22,10 (b) Notice. No less than 10 days before offering video service in a municipality, a video service franchisee shall notify the municipality.

AB207-SSA1,22,16 (c) Video service franchise fee. 1. In any municipality in which a video service franchisee offers video service on a commercial basis, the video service franchisee shall, upon request by such a municipality, be liable for and pay a video service franchise fee to the municipality. The video service franchise fee shall equal one of the following percentages of the video service franchisee's gross revenues, whichever is less:

AB207-SSA1,22,17 a. Five percent.

AB207-SSA1,22,20 b. The percentage of revenues that the municipality required, on the effective date of this subd. 1. b. .... [revisor inserts date], an incumbent cable operator to pay as a franchise fee under s. 66.0419 (3) (c).

AB207-SSA1,22,23 2. Payment of the video service franchise fee is due on a quarterly basis 45 days after the close of the calendar quarter. If mailed, the video service franchise fee is considered paid on the date it is postmarked.

AB207-SSA1,23,2 3. Except as otherwise provided in this section or s. 66.0425 or 182.017 (1), a municipality may not demand any additional fees or charges from a video service franchisee and may not demand the use of any other calculation method other than allowed under this subsection.

AB207-SSA1,23,8 (d) PEG support fee. 1. A video service franchisee shall, upon request by a municipality in which the video service franchisee provides video service, pay to the municipality or the municipality's PEG channel manager, as support for PEG channels, a PEG support fee equal to not less than 1 percent of the video service franchisee's gross revenue or the percentage of the video service franchisee's gross revenue that results from performing the following calculation, whichever is greater:

AB207-SSA1,23,16 a. Determining the aggregate annual amount that each incumbent cable operator that provides cable service in the video service franchisee's service area is obligated to pay the municipality or its PEG channel manager under a cable franchise, agreement, or contract in effect on January 1, 2007, including any payments required under sub. (3) (b) 2. b., and including the amount resulting by dividing the total amount of any lump sum payments required to be made over the term of such franchise, contract, or agreement by the number of years of the term of the franchise, contract, or agreement.

AB207-SSA1,23,18 b. Determining the aggregate annual amount of gross revenue during the preceding calendar year of each incumbent cable operator specified in subd. 1. a.

AB207-SSA1,23,20 c. Determining the percentage that results from dividing the amount determined under subd. 1. a. by the amount determined under subd. 1. b.

AB207-SSA1,24,2 2. PEG support fees are due on a quarterly basis and must be paid no later than 45 days after the close of a calendar quarter. PEG support fees are first due for the quarter that includes the 90th day after a municipality requests payment of the fees or the date on which the video service franchisee begins to provide video service in the municipality, whichever is later. Each payment shall include a statement explaining the basis for the calculation of the PEG support fee. If mailed, the PEG support fee is considered paid on the date it is postmarked.

AB207-SSA1,24,6 3. A municipality may require a video service franchisee to provide the municipality or the municipality's PEG channel manager with any information sufficient to calculate the PEG support fee required under this paragraph or the monetary payments for PEG channels required under sub. (3) (b) 2. b.

AB207-SSA1,24,9 (e) Bill itemization. A video service franchisee may identify and collect the amount of the video service franchise fee or PEG support fee as separate line items on the regular bill of each subscriber.

AB207-SSA1,24,11 (f) Accounting. All determinations and computations under this subsection shall be made pursuant to generally accepted accounting principles.

AB207-SSA1,24,19 (8) Audits; payments. (a) Upon receiving a notice under sub. (4) (g) 2. that a video service franchisee has received a video service franchise, a municipality shall notify the video service franchisee of the municipality's requirements for the video service franchisee to submit to an audit of its books and records. Such requirements shall be the same as those that apply to incumbent cable operators providing video service in the municipality on the effective date of this paragraph .... [revisor inserts date]. If there are no such incumbent cable operators, the municipality may impose reasonable audit requirements.

AB207-SSA1,24,21 (b) Acceptance by a municipality of amounts remitted by a video service franchise shall not be construed as an accord that the amounts are correct.