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2007 - 2008 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2007 SENATE BILL 107
April 20, 2007 - Offered by Committee on Commerce, Utilities and Rail.
SB107-SSA1,2,5 1An Act to repeal 60.23 (24), 66.0419 (title), (1), (2) and (3), 66.0419 (4) and (5),
266.0421 (1) (a), 66.0421 (1) (b), 66.0422 (1) (a), 100.209, 196.04 (4) (a) 1. and
3196.204 (7); to renumber 196.04 (4) (a) 2. a. to e.; to renumber and amend
466.0419 (3m), 182.017 (1) and 943.46 (1) (a); to consolidate, renumber and
5amend
196.04 (4) (a) (intro.) and 2. (intro.); to amend 11.01 (17g), 20.395 (3)
6(jh), 25.40 (1) (a) 4m., 66.0421 (title), 66.0421 (2), 66.0421 (3), 66.0421 (4),
766.0422 (title), 66.0422 (2) (intro.), 66.0422 (3) (b), 66.0422 (3n), 70.111 (25),
876.80 (3), 77.52 (2) (a) 12., 100.195 (1) (c) 2., 165.25 (4) (ar), 182.017 (3), 182.017
9(5), 182.017 (6), 196.01 (1g), 196.01 (9m), 196.04 (4) (b), 196.195 (5), 196.203
10(1m), 196.203 (3) (b) (intro.), 196.203 (3) (b) 2., 196.203 (3) (c), 196.203 (3) (d),
11196.203 (3) (e) 1. (intro.), 196.50 (1) (b) 2. e., 196.50 (1) (c), 196.85 (1m) (b),
12943.46 (title), 943.46 (2) (a), 943.46 (2) (b), 943.46 (2) (c), 943.46 (2) (d), 943.46
13(2) (e), 943.46 (2) (f), 943.46 (2) (g) and 943.46 (5); to repeal and recreate

1100.195 (1) (h) 1. and 196.01 (1p); and to create 66.0420, 66.0421 (1) (c),
266.0421 (1) (d), 66.0422 (1) (d), 182.017 (1g), 182.017 (8), 182.017 (9), 196.01
3(12g), 196.01 (12r), 196.85 (1m) (d), 943.46 (1) (d) and 943.46 (1) (e) of the
4statutes; relating to: regulation of cable television and video service providers
5and granting rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB107-SSA1, s. 1 6Section 1. 11.01 (17g) of the statutes is amended to read:
SB107-SSA1,2,117 11.01 (17g) "Public access channel" means a PEG channel that is required
8under a franchise granted under s. 66.0419 (3) (b) by a city, village, or town to a cable
9operator, as defined in s. 66.0419 (2) (b), and
, as defined in s. 66.0420 (2) (s), that is
10used for public access purposes, but does not include a PEG channel that is used for
11governmental or educational purposes.
SB107-SSA1, s. 2 12Section 2. 20.395 (3) (jh) of the statutes is amended to read:
SB107-SSA1,2,1813 20.395 (3) (jh) Utility facilities within highway rights-of-way, state funds.
14From the general fund, all moneys received from telecommunications providers, as
15defined in s. 196.01 (8p), or cable television telecommunications service providers,
16as defined in s. 196.01 (1r), for activities related to locating, accommodating,
17operating, or maintaining utility facilities within highway rights-of-way, for such
18purposes.
SB107-SSA1, s. 3 19Section 3. 25.40 (1) (a) 4m. of the statutes is amended to read:
SB107-SSA1,2,2220 25.40 (1) (a) 4m. Moneys received from telecommunications providers or cable
21television telecommunications service providers that are deposited in the general
22fund and credited to the appropriation account under s. 20.395 (3) (jh).
SB107-SSA1, s. 4 23Section 4. 60.23 (24) of the statutes is repealed.
SB107-SSA1, s. 5
1Section 5. 66.0419 (title), (1), (2) and (3) of the statutes are repealed.
SB107-SSA1, s. 6 2Section 6. 66.0419 (3m) of the statutes is renumbered 66.0420 (12), and
366.0420 (12) (title), (a) and (b) 2., as renumbered, are amended to read:
SB107-SSA1,3,84 66.0420 (12) (title) Municipal cable television system costs. (a) Except for
5costs for any of the following, a municipality that owns and operates a cable television
6system, or an entity owned or operated, in whole or in part, by such a municipality,
7may not require nonsubscribers of the cable television system to pay any of the costs
8of the cable television system:
SB107-SSA1,3,99 1. Public, educational, and governmental access PEG channels.
SB107-SSA1,3,1110 2. Debt service on bonds issued under s. 66.0619 to finance the construction,
11renovation, or expansion of a cable television system.
SB107-SSA1,3,1312 3. The provision of broadband service by the cable television system, if the
13requirements of s. 66.0422 (3d) (a), (b), or (c) are satisfied.
SB107-SSA1,3,1814 (b) 2. A majority of the governing board of the municipality votes to submit the
15question of supporting the operation of a cable television system by the municipality
16to the electors in an advisory referendum and a majority of the voters in the
17municipality voting at the advisory referendum vote to support the operation of a
18cable television system by the municipality.
SB107-SSA1, s. 7 19Section 7. 66.0419 (4) and (5) of the statutes are repealed.
SB107-SSA1, s. 8 20Section 8. 66.0420 of the statutes is created to read:
SB107-SSA1,3,22 2166.0420 Video service. (1) Legislative findings. The legislature finds all
22of the following:
SB107-SSA1,3,2423 (a) Video service brings important daily benefits to state residents by providing
24news, education, and entertainment.
SB107-SSA1,4,3
1(b) Uniform regulation of all video service providers by this state is necessary
2to ensure that state residents receive adequate and efficient video service and to
3protect and promote the public health, safety, and welfare.
SB107-SSA1,4,64 (c) Fair competition in the provision of video service will result in new and more
5video programming choices for consumers in this state, and a number of providers
6have stated their desire to provide that service.
SB107-SSA1,4,87 (d) Timely entry into the market is critical for new entrants seeking to compete
8with existing providers.
SB107-SSA1,4,119 (e) This state's economy would be enhanced by additional investment in
10communications and video programming infrastructure by existing and new
11providers of video service.
SB107-SSA1,4,1312 (f) Minimal regulation of all providers of video service within a uniform
13framework will promote the investment described in par. (e).
SB107-SSA1,4,1614 (g) Ensuring that existing providers of video service are subject to the same
15regulatory requirements and procedures as new entrants will ensure fair
16competition among all providers.
SB107-SSA1,4,2117 (h) This section is an enactment of statewide concern for the purpose of
18providing uniform regulation of video service that promotes investment in
19communications and video infrastructures and the continued development of this
20state's video service marketplace within a framework that is fair and equitable to all
21providers.
SB107-SSA1,4,22 22(2) Definitions. In this section:
SB107-SSA1,4,2523 (a) "Affiliate", when used in relation to any person, means another person who
24owns or controls, is owned or controlled by, or is under common ownership or control
25with such person.
SB107-SSA1,5,3
1(b) "Basic local exchange service area" means the area on file with the public
2service commission in which a telecommunications video service provider provides
3basic local exchange service, as defined in s. 196.01 (1g).
SB107-SSA1,5,54 (c) "Cable franchise" means a franchise granted under s. 66.0419 (3) (b), 2005
5stats.
SB107-SSA1,5,66 (d) "Cable operator" has the meaning given in 47 USC 522 (5).
SB107-SSA1,5,77 (e) "Cable service" has the meaning given in 47 USC 522 (6).
SB107-SSA1,5,88 (f) "Cable system" has the meaning given in 47 USC 522 (7).
SB107-SSA1,5,99 (g) "Department" means the department of financial institutions.
SB107-SSA1,5,1010 (h) "FCC" means the federal communications commission.
SB107-SSA1,5,1211 (i) "Franchise fee" has the meaning given in 47 USC 542 (g), and includes any
12compensation required under s. 66.0425.
SB107-SSA1,5,1513 (j) 1. "Gross receipts" means all revenues received by and paid to a video service
14provider by subscribers residing within a municipality for video service, including
15all of the following:
SB107-SSA1,5,1616 a. Recurring charges for video service.
SB107-SSA1,5,1817 b. Event-based charges for video service, including pay-per-view and
18video-on-demand charges.
SB107-SSA1,5,1919 c. Rental of set top boxes and other video service equipment.
SB107-SSA1,5,2120 d. Service charges related to the provision of video service, including activation,
21installation, repair, and maintenance charges.
SB107-SSA1,5,2322 e. Administrative charges related to the provision of video service, including
23service order and service termination charges.
SB107-SSA1,5,2524 2. Notwithstanding subd. 1., "gross receipts" does not include any of the
25following:
SB107-SSA1,6,2
1a. Discounts, refunds, and other price adjustments that reduce the amount of
2compensation received by a video service provider.
SB107-SSA1,6,53 b. Uncollectible fees, except that any uncollectible fees that are written off as
4bad debt but subsequently collected shall be included as gross receipts in the period
5collected, less the expenses of collection.
SB107-SSA1,6,66 c. Late payment charges.
SB107-SSA1,6,77 d. Maintenance charges.
SB107-SSA1,6,128 e. Amounts billed to video service subscribers to recover taxes, fees, surcharges
9or assessments of general applicability or otherwise collected by a video service
10provider from video service subscribers for pass through to any federal, state, or local
11government agency, including video service provider fees and regulatory fees paid to
12the FCC under 47 USC 159.
SB107-SSA1,6,1513 f. Revenue from the sale of capital assets or surplus equipment not used by the
14purchaser to receive video service from the seller of those assets or surplus
15equipment.
SB107-SSA1,6,2316 g. Charges, other than those described in subd. 1., that are aggregated or
17bundled with amounts described in subd. 1. and billed to video service subscribers,
18including but not limited to any revenues received by a video service provider or its
19affiliates for telecommunications services, information services, or the provision of
20directory or Internet advertising, including yellow pages, white pages, banner
21advertisement, and electronic publishing, if a video service provider can reasonably
22identify such charges on books and records kept in the regular course of business or
23by other reasonable means.
SB107-SSA1,6,2524 h. Reimbursement by programmers of marketing costs actually incurred by a
25video service provider.
SB107-SSA1,7,5
1(k) "Household" means a house, apartment, mobile home, group of rooms, or
2single room that is intended for occupancy as separate living quarters. For purposes
3of this paragraph, "separate living quarters" are those in which the occupants live
4and eat separately from any other persons in the building and which have direct
5access from the outside of the building or through a common hall.
SB107-SSA1,7,96 (L) "Incumbent cable operator" means a person who, immediately before the
7effective date of this paragraph, was providing cable service under a cable franchise,
8expired cable franchise, or cable franchise extension, or under an ordinance or
9resolution adopted or enacted by a municipality.
SB107-SSA1,7,1110 (m) "Institutional network" means a network that connects governmental,
11educational, and community institutions.
SB107-SSA1,7,1412 (n) "Interim cable operator" means an incumbent cable operator that elects to
13continue to provide cable service under a cable franchise as specified in sub. (3) (b)
142. a.
SB107-SSA1,7,1615 (o) "Issued" means, with respect to a video service franchise, issued or
16considered to be issued by the department under sub. (3) (f) 2.
SB107-SSA1,7,2017 (p) "Large telecommunications video service provider" means a
18telecommunications video service provider that, on January 1, 2007, had more than
19500,000 basic local exchange access lines in this state or an affiliate of such a
20telecommunication video service provider.
SB107-SSA1,7,2421 (q) "Low-income household" means any individual or group of individuals
22living together as one economic unit in a household whose aggregate annual income
23is not more than $35,000, as identified by the United States Census Bureau as of
24January 1, 2007.
SB107-SSA1,7,2525 (r) "Municipality" means a city, village, or town.
SB107-SSA1,8,2
1(s) "PEG channel" means a channel designated for noncommercial public,
2educational, or governmental use.
SB107-SSA1,8,33 (sm) "Qualified cable operator" means any of the following:
SB107-SSA1,8,64 1. A cable operator that has provided cable service in this state for at least 3
5years prior to applying for a video service franchise and that has never had a cable
6franchise revoked by a municipality.
SB107-SSA1,8,77 2. An affiliate of a cable operator specified in subd. 1.
SB107-SSA1,8,108 3. A cable operator that, on the date that it applies for a video service franchise,
9is one of the 10 largest video service providers in the United States as measured by
10the total number of video service subscribers nationally.
SB107-SSA1,8,1111 4. A parent corporation of a cable operator specified in subd. 3.
SB107-SSA1,8,1312 (t) "Service tier" means a category of video service for which a separate rate is
13charged.
SB107-SSA1,8,1514 (u) "State agency" means any board, commission, department, or office in the
15state government.
SB107-SSA1,8,1616 (um) "Telecommunications utility" has the meaning given in s. 196.01 (10).
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