Analysis by the Legislative Reference Bureau
Enforcement of interconnection agreements
Under the Federal Telecommunications Act of 1996, certain persons that are
regulated as telecommunications utilities under state law and that provide local
telephone exchange services must enter into agreements with other providers of
telecommunications services in which the other providers are allowed to connect
their telecommunications networks to the telecommunications utilities' networks.
The public service commission (PSC) is required to approve such agreements, which
are called "interconnection agreements", by determining whether the agreements
satisfy certain federal requirements.
This bill allows the PSC to promulgate rules that require an interconnection
agreement to include alternate dispute resolution procedures. The bill also allows
a party to an interconnection agreement that is approved by the PSC to request a
declaratory ruling from the PSC regarding the meaning of any provision of the
agreement.

In addition, the bill establishes procedures for enforcing interconnection
agreements that are approved by the PSC. Under the bill, a party to such an
agreement may file a complaint with the PSC alleging that another party has failed
to comply with the agreement. Before such a party may file a complaint, the party
must first give the other party a maximum of 5 business days to resolve the alleged
failure to comply. If a person who is not a party to an interconnection agreement files
a complaint with the PSC that the PSC determines may involve a failure to comply
with an interconnection agreement, the PSC must notify the parties to the
agreement about the alleged failure to comply. If the parties resolve the alleged
failure to comply to the satisfaction of the PSC within a maximum of 5 business days,
the PSC must dismiss the complaint with respect to the issues that involve the
alleged failure to comply.
After investigating a complaint, the PSC may, after notice and an opportunity
for hearing, order a party to comply with the interconnection agreement. The PSC
must issue such an order within 120 days after a complaint is filed, unless the parties
to the proceeding consent to a longer time period that is approved by the PSC. Before
issuing such an order, the PSC may issue an interim order that requires a party to
the agreement to take action or refrain from taking action that is related to
complying with the agreement. A person who seeks an interim order must satisfy
certain requirements, including showing, if the person is a party to the
interconnection agreement, that the alleged failure to comply with the agreement
has a substantial adverse impact on the party's ability to provide
telecommunications services to its customers. A party against whom an interim
order is issued may request the PSC to review the order. If the PSC determines, upon
review, that a person who sought an interim order was not entitled to the order, the
PSC may order that person to pay damages that were sustained because of the
interim order.
The bill also allows a court to impose forfeitures against a party that fails to
comply with an interconnection agreement. The amount of a forfeiture depends on
certain factors, including whether the failure to comply is wilful or has resulted in
any economic loss to an injured party or any economic gain to the party who failed
to comply. In addition, the PSC may directly impose a forfeiture against a party to
an interconnection agreement who files a complaint or answer to a complaint that
is frivolous, is intended to delay the implementation of an interconnection agreement
or violates certain other prohibitions.
Protections for users of telecommunications services
Under current law, certain persons that are regulated as telecommunications
utilities are required to provide certain protections to persons, including other
telecommunications providers, who use their services, products or facilities. Such
telecommunications utilities may not engage in certain prohibited practices related
to connecting their telecommunications networks to the networks of other
telecommunications providers and to providing telecommunications services to their
customers. If the PSC finds that a telecommunications utility has violated these
requirements, a person who is injured by the violation may bring an action in court
to recover damages or obtain injunctive relief.

Under this bill, telecommunications providers who offer local exchange
telecommunications services must provide the same protections and are subject to
the same prohibitions that apply to telecommunications utilities. In addition, a
person who is injured by a telecommunications utility or provider who violates these
requirements may bring an action in court for damages or injunctive relief without
a finding of violation by the PSC. Also, the bill allows the attorney general, upon the
request of the PSC, to bring an action in court to require a telecommunications utility
or provider to compensate a person for the pecuniary losses suffered because of a
violation of these requirements.
For further information see the state and local 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:
SB351, s. 1 1Section 1. 196.199 of the statutes is created to read:
SB351,3,4 2196.199 Interconnection agreements. (1) Definition. In this section,
3"interconnection agreement" means an interconnection agreement that is subject to
4approval by the commission under 47 USC 252 (e).
SB351,3,7 5(2) Commission's powers. (a) The commission has jurisdiction to approve and
6enforce interconnection agreements and may do all things necessary and convenient
7to its jurisdiction.
SB351,3,98 (b) The commission may promulgate rules that require an interconnection
9agreement to include alternate dispute resolution provisions.
SB351,4,4 10(3) Enforcement. (a) Upon the filing of a complaint under this paragraph by
11a party to an interconnection agreement or of a complaint under any other provision
12of this chapter by any other person that the commission determines may involve a
13failure to comply with an interconnection agreement, the commission may
14investigate whether a party to the agreement has failed to comply with the
15agreement. If, after an investigation, the commission finds that a party has failed
16to comply with an interconnection agreement, the commission shall, after notice and

1opportunity for a hearing, issue an order requiring compliance with the
2interconnection agreement. The commission shall issue the order, subject to par. (e),
3no later than 120 days after the filing of the complaint, unless all of the parties to the
4proceeding consent to a longer time period that is approved by the commission.
SB351,4,125 (b) 1. Before initiating an investigation under par. (a) based on a complaint filed
6by a person that is not a party to an interconnection agreement, the commission shall
7notify the parties to the agreement about the alleged failure to comply with the
8agreement. If the alleged failure to comply is resolved to the satisfaction of the
9commission within 5 business days after the parties receive notice under this
10subdivision, or within a shorter period of time specified by the commission in the
11notice, the commission shall dismiss the complaint with respect to the issues that
12involve the alleged failure to comply.
SB351,4,1913 2. No party to an interconnection agreement may file a complaint under par.
14(a) unless the party has first notified the party who is the subject of the complaint
15about the alleged failure to comply and given that party an opportunity to resolve the
16alleged failure to comply to the satisfaction of the complaining party within 5
17business days, or a shorter period of time approved by the commission, after
18receiving the notice. The commission shall promulgate rules establishing standards
19and procedures for approving a period of time shorter than 5 business days.
SB351,4,2520 (c) No party to an interconnection agreement may file a complaint under par.
21(a) or file an answer to such a complaint unless there is a nonfrivolous basis for doing
22so. A party to an interconnection agreement may not file a complaint under par. (a)
23or file an answer to such a complaint unless, to the best of the party's knowledge,
24information and belief, formed after a reasonable inquiry, all of the following
25conditions are satisfied:
SB351,5,1
11. The party's complaint or answer is reasonably supported by applicable law.
SB351,5,52 2. The allegations and other factual contentions in the party's complaint or
3answer have evidentiary support or, if specifically so identified in the party's
4complaint or answer, are likely to have evidentiary support after reasonable
5opportunity for further investigation or discovery.
SB351,5,76 3. The party's complaint is not intended to harass a party to an interconnection
7agreement.
SB351,5,108 4. The party's complaint or answer is not intended to cause unnecessary delay
9in implementing an interconnection agreement or create a needless increase in the
10cost of litigation.
SB351,5,1411 (d) If, at any time during a proceeding on a complaint specified in par. (a), the
12commission determines, after notice and reasonable opportunity to be heard, that a
13party to an interconnection agreement has filed a complaint or answer in violation
14of par. (c), the commission may do all of the following:
SB351,5,1715 1. Order the party to pay to any party to the interconnection agreement the
16amount of reasonable expenses incurred by that party because of the filing of the
17complaint or answer, including reasonable attorney fees.
SB351,6,218 2. Directly assess a forfeiture against the party of not less than $25 nor more
19than $5,000. A party against whom the commission assess a forfeiture under this
20subdivision shall pay the forfeiture to the commission within 10 days after receipt
21of notice of the assessment or, if the party petitions for judicial review under ch. 227,
22within 10 days after receipt of the final decision after exhaustion of judicial review.
23The commission shall remit all forfeitures paid under this subdivision to the state
24treasurer for deposit in the school fund. The attorney general may bring an action
25in the name of the state to collect any forfeiture assessed by the commission under

1this subdivision that has not been paid as provided in this subdivision. The only
2contestable issue in such an action is whether or not the forfeiture has been paid.
SB351,6,73 (e) At any time during a proceeding on a complaint specified in par. (a), the
4commission may, without holding a hearing, order a party to the interconnection
5agreement to take an action or refrain from taking an action that is related to
6complying with the agreement upon a showing by any other party to the proceeding
7of all of the following:
SB351,6,108 1. That there is a substantial probability that, at the conclusion of the
9proceeding, the commission will find that the party against whom the order is sought
10has failed to comply with the interconnection agreement.
SB351,6,1411 2. For a complaint filed by a party to an interconnection agreement, that the
12party against whom the order is sought is taking an action or failing to take an action
13that has a substantial adverse effect on the ability of the complaining party to
14provide telecommunications service to its customers.
SB351,6,1515 3. That the order is in the public interest.
SB351,6,2116 (f) The commission may require a bond or other security of a person seeking an
17order under par. (e) to the effect that the person shall pay the party against whom
18the order is issued such damages and expenses, excluding attorney fees, in an
19amount specified by the commission, as that party may sustain by reason of the order
20if the commission determines under par. (g) that the person seeking the order was
21not entitled to the order.
SB351,7,822 (g) Within 5 days after receiving an order issued under par. (e), the party
23against whom the order is issued may request the commission to review the order.
24Within 30 days after receiving a request under this paragraph, the commission shall
25determine whether the person who sought the order under par. (e) was entitled to the

1order and shall terminate, continue or modify the order on such terms as the
2commission determines are appropriate. If the commission determines that the
3person was not entitled to the order, the commission may order the person to pay the
4damages and expenses, excluding attorney fees, sustained, by reason of the order, by
5the party against whom the order was issued. In making a determination under this
6paragraph, the commission may consider only the factors specified in par. (e) 1. to 3.
7based only on information that was available to the commission at the time that the
8commission issued the order under par. (e).
SB351,7,159 (h) 1. Upon a petition filed by a party to an interconnection agreement approved
10by the commission, the commission may, after an opportunity for hearing is afforded
11to each party to the agreement, issue a declaratory ruling with respect to the
12meaning of any provision of the agreement. A declaratory ruling issued by the
13commission shall bind the commission and all parties to a proceeding under this
14paragraph on the statement of facts alleged, unless the ruling is altered or set aside
15by a court.
SB351,7,1816 2. A petition filed under subd. 1. shall identify all of the parties to the
17interconnection agreement and include a concise statement of facts describing the
18situation as to which the ruling is requested and the reasons for the requested ruling.
SB351,7,2019 3. Within 120 days after receipt of a petition under subd. 1., the commission
20shall do one of the following:
SB351,7,2221 a. Deny the petition in writing and provide a brief statement of the reasons for
22the denial.
SB351,7,2323 b. Hold a hearing on the petition and issue a declaratory ruling in writing.
SB351,8,6 24(4) Penalties. (a) 1. A party to an interconnection agreement, approved by the
25commission, who has failed to comply with the agreement shall forfeit not more than

1$15,000 or, if the failure is wilful, not more than $40,000, except that if the party is
2a telecommunications utility that has $10,000,000 or less in annual gross operating
3revenues derived from intrastate operations during the last calendar year, as
4determined under s. 196.85 (2), the forfeiture under this subdivision shall be not
5more $10,000. For purposes of this subdivision, each day that a party fails to comply
6with an interconnection agreement is a separate failure to comply.
SB351,8,97 2. The maximum forfeiture that may be imposed under subd. 1. shall be trebled
8if either of the following conditions is satisfied and shall be sextupled if both of the
9following conditions are satisfied:
SB351,8,1110 a. The party's failure to comply causes death or life-threatening or seriously
11debilitating injury.
SB351,8,1312 b. The party's failure to comply continues after the party receives written notice
13of the commission's order requiring compliance with the interconnection agreement.
SB351,8,2014 3. In addition to a forfeiture imposed under subd. 1., a party to an
15interconnection agreement, approved by the commission, who has failed to comply
16with the agreement shall forfeit an amount equal to not more than 2 times the gross
17value of the party's economic gain resulting from the failure to comply or not more
18than 2 times the gross value of the economic loss experienced by the party to the
19agreement who is injured as a result of the party's failure to comply, whichever is
20greater.
SB351,8,2221 (b) A court shall consider each of the following in determining the amount of
22a forfeiture under par. (a):
SB351,8,2423 1. The appropriateness of the forfeiture to the volume of business of the party
24that failed to comply with the agreement.
SB351,8,2525 2. The gravity of the failure to comply.
SB351,9,2
13. Any good faith attempt to comply with the agreement after the party receives
2notice of a failure to comply
SB351,9,33 4. Any other factor that the court determines is relevant.
SB351, s. 2 4Section 2. 196.219 (1) of the statutes is renumbered 196.219 (1) (intro.) and
5amended to read:
SB351,9,66 196.219 (1) (title) Definition Definitions. (intro.) In this section , "consumer":
SB351,9,10 7(a) "Consumer" means any person, including a telecommunications provider,
8that uses the services, products or facilities provided by a telecommunications utility
9or the local exchange services offered by a telecommunications provider that is not
10a telecommunications utility
.
SB351, s. 3 11Section 3. 196.219 (1) (b) of the statutes is created to read:
SB351,9,1312 196.219 (1) (b) "Local exchange service" has the meaning given in s. 196.50 (1)
13(b) 1.
SB351, s. 4 14Section 4. 196.219 (2) (a) of the statutes is amended to read:
SB351,9,1915 196.219 (2) (a) Notwithstanding any exemptions identified in this chapter
16except s. 196.202, a telecommunications utility or provider shall provide protection
17to its consumers under this section unless exempted in whole or in part by rule or
18order of the commission under this section. The commission shall promulgate rules
19that identify the conditions under which provisions of this section may be suspended.
SB351, s. 5 20Section 5. 196.219 (2) (d) of the statutes is amended to read:
SB351,9,2321 196.219 (2) (d) If the commission grants an exemption under this subsection,
22it may require the telecommunications utility or provider to comply with any
23condition necessary to protect the public interest.
SB351, s. 6 24Section 6. 196.219 (2m) (a) of the statutes is amended to read:
SB351,10,3
1196.219 (2m) (a) A telecommunications utility or provider shall provide access
2services under tariff under the same rates, terms and conditions to all
3telecommunications providers.
SB351, s. 7 4Section 7. 196.219 (3) (intro.) and (a) of the statutes are amended to read:
SB351,10,85 196.219 (3) Prohibited practices. (intro.) A telecommunications utility may
6not do any of the following
with respect to its regulated services or any other
7telecommunications provider with respect to its offering of local exchange services
8may not do any of the following
:
SB351,10,149 (a) Refuse to interconnect within a reasonable time with another person to the
10same extent that the federal communications commission requires the
11telecommunications utility or provider to interconnect. The public service
12commission may require additional interconnection based on a determination,
13following notice and opportunity for hearing, that additional interconnection is in
14the public interest and is consistent with the factors under s. 196.03 (6).
SB351, s. 8 15Section 8. 196.219 (3) (e) of the statutes is amended to read:
SB351,10,1916 196.219 (3) (e) Fail to provide a service, product or facility to a consumer other
17than a telecommunications provider in accord with the telecommunications utility's
18or provider's applicable tariffs, price lists or contracts and with the commission's
19rules and orders.
SB351, s. 9 20Section 9. 196.219 (3) (em) of the statutes is amended to read:
SB351,10,2421 196.219 (3) (em) Refuse to provide a service, product or facility to a
22telecommunications provider
, in accord with the that telecommunications utility's or
23provider's
applicable tariffs, price lists or contracts and with the commission's rules
24and orders, to another telecommunications provider.
SB351, s. 10 25Section 10. 196.219 (3) (f) of the statutes is amended to read:
SB351,11,9
1196.219 (3) (f) Refuse to provide basic local exchange service, business access
2line and usage service within a local calling area and access service on an unbundled
3basis to the same extent that the federal communications commission requires the
4telecommunications utility or provider to unbundle the same services provided
5under its jurisdiction. The public service commission may require additional
6unbundling of intrastate telecommunications services based on a determination,
7following notice and opportunity for hearing, that additional unbundling is required
8in the public interest and is consistent with the factors under s. 196.03 (6). The public
9service commission may order unbundling by a small telecommunications utility.
SB351, s. 11 10Section 11. 196.219 (3) (h) of the statutes is amended to read:
SB351,11,1511 196.219 (3) (h) To the extent prohibited by the federal communications
12commission, or by the public service commission under rules promulgated consistent
13with the factors under s. 196.03 (6), give preference or discriminate in the provision
14of services, products or facilities to an affiliate, or to the telecommunications utility's
15or provider's own or an affiliate's retail department that sells to consumers.
SB351, s. 12 16Section 12. 196.219 (3) (m) of the statutes is amended to read:
SB351,11,2117 196.219 (3) (m) Provide telecommunications service to any person acting as a
18telecommunications utility, telecommunications provider, alternative
19telecommunications utility or telecommunications carrier if the commission has
20ordered the telecommunications utility or provider to discontinue service to that
21person.
SB351, s. 13 22Section 13. 196.219 (4) of the statutes is amended to read:
SB351,12,223 196.219 (4) Enforcement. (a) On the commission's own motion or upon
24complaint filed by the consumer, the commission shall have jurisdiction to take

1administrative action or to commence civil actions against telecommunications
2utilities or providers to enforce this section.
SB351,12,73 (b) The commission may, at its discretion, institute in any court of competent
4jurisdiction a proceeding against a telecommunications utility or provider for
5injunctive relief to compel compliance with this section, to compel the accounting and
6refund of any moneys collected in violation of this section or for any other relief
7permitted under this chapter.
SB351, s. 14 8Section 14. 196.219 (4m) of the statutes is renumbered 196.219 (4m) (a) and
9amended to read:
SB351,12,1310 196.219 (4m) (a) Upon a finding of a violation of this section by the commission,
11any
Any person injured because of a violation of this section by a telecommunications
12utility or provider may commence a civil action to recover damages or to obtain
13injunctive relief.
SB351, s. 15 14Section 15. 196.219 (4m) (b) of the statutes is created to read:
SB351,12,1815 196.219 (4m) (b) Upon request of the commission, the attorney general may
16bring an action to require a telecommunications utility or provider to compensate
17any person for any pecuniary loss caused by the failure of the utility or provider to
18comply with this section.
SB351, s. 16 19Section 16. 196.219 (5) of the statutes is amended to read:
SB351,12,2220 196.219 (5) Alternate dispute resolution. The commission shall establish by
21rule a procedure for alternative dispute resolution to be available for complaints filed
22against a telecommunications utility or provider.
SB351, s. 17 23Section 17. 196.43 (3) of the statutes is created to read:
SB351,13,324 196.43 (3) No injunction may be issued in any proceeding for review under ch.
25227 of an order of the commission under s. 196.199 (3) (a), suspending or staying the

1order, unless the court finds that the person seeking review of the order is likely to
2succeed on the merits and suffer irreparable harm without the suspension or stay
3and that the suspension or stay is in the public interest.
SB351, s. 18 4Section 18. 196.499 (1) of the statutes, as affected by 1997 Wisconsin Act 27,
5is amended to read:
SB351,13,186 196.499 (1) Scope. Notwithstanding any other provisions of this chapter, a
7telecommunications carrier is not subject to regulation under this chapter, except
8that a telecommunications carrier shall comply with the requirements of this
9section, shall be treated under s. 196.199 as a party to an interconnection agreement,
10under ss. 196.209, 196.218 (8) and, 196.219 (4d), 196.25 (3) and 196.65 (3) as a
11telecommunications provider, under s. ss. 196.65 (3) (d) and 196.85 as a
12telecommunications utility and under s. 196.858 as an interexchange
13telecommunications utility, may be assessed under s. 196.218 (3) as a
14telecommunications provider and shall respond, subject to the protection of the
15telecommunications carrier's competitive information, to all reasonable requests for
16information about its operations in this state from the commission necessary to
17administer the universal service fund. A telecommunications carrier may not be
18assessed in a manner that is inconsistent with this section.
SB351,13,1919 (End)
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