SB248: Bill Text

Analysis by the Legislative Reference Bureau

This bill prohibits governmental subdivisions from taking certain actions regarding telecommunications and Internet access services. The bill defines "governmental subdivision" as any of the following: 1) a city, village, town, or county; 2) a special purpose district; 3) an instrumentality or corporation of a city, village, town, county, or special purpose district; or 4) a combination or subunit of any of the foregoing. However, "governmental subdivision" does not include a public library board or a public library system.

Under the bill, a governmental subdivision is, with certain exceptions, subject to three prohibitions. First, a governmental subdivision may not provide a telecommunications service, as defined under current law, directly or indirectly to a member of the public. Current law defines "telecommunications service" to include the conveyance of voice, data, or other information at any frequency over any part of the electromagnetic spectrum, except that "telecommunications service" does not include cable television service or audio or video broadcast service. The bill defines "member of the public" as any person except a governmental subdivision.

Second, a governmental subdivision may not sell, lease, or transfer for consideration a transmission facility to another person if the transmission facility is used to furnish a telecommunications service directly or indirectly to a member of the public. The bill defines "transmission facility" as any plant or equipment used to transmit a telecommunications service by wire, optics, radio signal, or other means, except that "transmission facility" does not include any conduit, pole, tower, or other structure that supports the plant or equipment used to transmit the telecommunications service.

Third, a governmental subdivision may not sell an Internet access service directly or indirectly to a member of the public. The bill defines "Internet access service" as a service that enables a user to obtain access to content, information, electronic mail, or any other service offered over the Internet.

The bill provides three exceptions to the prohibitions described above. First, the prohibitions do not apply to a governmental subdivision that, under a contract or agreement for the sharing of services or facilities, provides a telecommunications service; sells, leases, or transfers for consideration a telecommunications facility; or sells an Internet access service, to any of the following: 1) a state agency; 2) a school district; 3) a cooperative educational service agency; 4) a technical college district; 5) a public library board or system; 6) a federally recognized Indian tribe or band located in this state; 7) a fire department or volunteer fire company; or 8) a local government unit. The bill defines "local government unit" as any of the following: 1) a political subdivision, as defined under the bill; 2) a special purpose district; 3) an instrumentality or corporation of a political subdivision or special purpose district; 4) a combination or subunit of any of the foregoing; or 5) a combination of a state agency and any of the foregoing.

The second exception applies only to the prohibition on selling, leasing, or transferring for consideration a transmission facility. This prohibition does not apply to sales of substantially all of the transmission facilities owned by a governmental subdivision to a telecommunications carrier, telecommunications utility, or alternative telecommunications utility. The third exception applies to a governmental subdivision that is subject to a contract in effect on the effective date of the bill. If the contract contains provisions that are inconsistent with the bill's prohibitions, then the governmental subdivision may perform its obligations, or exercise its rights, under the contract until the contract expires, or is extended, modified, or renewed, whichever occurs first.

Finally, the bill prohibits the public service commission from allowing a governmental subdivision to provide telecommunications services as a telecommunications carrier, telecommunications utility, or alternative telecommunications utility.

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:

SB248, s. 1 Section 1. 196.203 (2) of the statutes is renumbered 196.203 (2) (a).

SB248, s. 2 Section 2. 196.203 (2) (b) of the statutes is created to read:

SB248,3,4 196.203 (2) (b) The commission may not issue a determination under par. (a) to a governmental subdivision, as defined in s. 196.50 (4) (a) 1.

SB248, s. 3 Section 3. 196.499 (15) of the statutes is renumbered 196.499 (15) (a) and amended to read:

SB248,3,18 196.499 (15) (a) A telecommunications carrier that is not authorized to provide intrastate telecommunications service on January 1, 1994, may not commence the construction of any plant, extension, or facility, or provide intrastate telecommunications service directly or indirectly to the public, unless the telecommunications carrier obtains a certificate from the commission authorizing the telecommunications carrier to provide intrastate telecommunications. The Except as provided in par. (b), the commission may issue a certificate if the telecommunications carrier demonstrates that it possesses sufficient technical, financial, and managerial resources to provide intrastate telecommunications services. A telecommunications carrier that is authorized to provide intrastate telecommunications service on January 1, 1994, is not required to be recertified under this subsection paragraph.

SB248, s. 4 Section 4. 196.499 (15) (b) of the statutes is created to read:

SB248,3,21 196.499 (15) (b) The commission may not issue a certificate under par. (a) to a governmental subdivision, as defined in s. 196.50 (4) (a) 1.

SB248, s. 5 Section 5. 196.50 (2) (c) of the statutes is renumbered 196.50 (2) (c) 1.

SB248, s. 6 Section 6. 196.50 (2) (c) 2. of the statutes is created to read:

SB248,4,4 196.50 (2) (c) 2. The commission may not issue a certificate of authority under this subsection to a governmental subdivision, as defined in s. 196.50 (4) (a) 1.

SB248, s. 7 Section 7. 196.50 (4) (title) of the statutes is amended to read:

SB248,4,7 196.50 (4) (title) Municipality Municipalities and governmental subdivisions restrained.

SB248, s. 8 Section 8. 196.50 (4) of the statutes is renumbered 196.50 (4) (b) and amended to read:

SB248,4,17 196.50 (4) (b) No municipality may construct any public utility if there is in operation under an indeterminate permit in the municipality a public utility engaged in similar service other than a telecommunications service, unless it secures from the commission a declaration, after a public hearing of all parties interested, that public convenience and necessity require the municipal public utility. The commission may not issue a declaration under this paragraph that allows a municipality to construct a telecommunications utility or alternative telecommunications utility.

SB248, s. 9 Section 9. 196.50 (4) (a) of the statutes is created to read:

SB248,4,19 196.50 (4) (a) In this subsection:

SB248,4,23 1. "Governmental subdivision" means a political subdivision, a special purpose district, an instrumentality or corporation of a political subdivision or a special purpose district, or a combination or subunit of any of the foregoing, but does not include a public library board or public library system.

SB248,5,3 2. "Internet access service" means a service that enables a user to obtain access to content, information, electronic mail, or any other service offered over the Internet.

SB248,5,4 2e. "Local governmental unit" means any of the following:

SB248,5,5 a. A political subdivision.

SB248,5,6 b. A special purpose district.

SB248,5,8 c. An instrumentality or corporation of a political subdivision or special purpose district.

SB248,5,9 d. A combination or subunit of any person specified in subd. 2e. a. to c.

SB248,5,11 e. A combination of a state agency and any person specified in subd. 2e. a. to d.

SB248,5,13 2m. "Member of the public" means any person except a governmental subdivision.

SB248,5,14 2r. "Political subdivision" means any city, village, town, or county.

SB248,5,18 2w. "State agency" means any office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, including the legislature and courts.

SB248,5,20 3. "Transfer" means to sell, lease, or transfer for consideration of any interest in ownership, title, or right to use.

SB248,5,25 3m. "Transmission facility" means any plant or equipment used to transmit a telecommunications service by wire, optics, radio signal, or other means. "Transmission facility" does not include any conduit, pole, tower, or other structure that supports the plant or equipment used to transmit the telecommunications service.

SB248, s. 10 Section 10. 196.50 (4) (c) of the statutes is created to read:

SB248,6,3 196.50 (4) (c) Except as provided in par. (d), no governmental subdivision may do any of the following:

SB248,6,5 1. Provide a telecommunications service in this state directly or indirectly to a member of the public.

SB248,6,8 2. Transfer a transmission facility in this state to another person if the facility is used to furnish a telecommunications service directly or indirectly to a member of the public.

SB248,6,9 3. Sell an Internet access service directly or indirectly to a member of the public.

SB248, s. 11 Section 11. 196.50 (4) (d) of the statutes is created to read:

SB248,6,18 196.50 (4) (d) 1. Paragraph (c) 1., 2., and 3. does not apply to a governmental subdivision that provides a telecommunications service, transfers a transmission facility, or sells an Internet access service to a local governmental unit, state agency, school district, cooperative educational service agency, technical college district, public library board, public library system, federally recognized Indian tribe or band located in this state, or volunteer fire company or fire department organized under ch. 213, under a contract or agreement under s. 66.0301, 66.0303, or 120.25 or a similar contract or agreement for the sharing of services or facilities.

SB248,6,22 2. Paragraph (c) 2. does not apply to sales by a governmental subdivision of substantially all of the transmission facilities owned by the governmental subdivision to a telecommunications carrier, telecommunications utility, or alternative telecommunication utility.

SB248,7,3 3. If a governmental subdivision is subject to a contract that is in effect on the effective date of this subdivision .... [revisor inserts date], and that contains provisions that are inconsistent with par. (c) 1., 2., or 3., then, notwithstanding par. (c) 1., 2., or 3., the governmental subdivision may perform its obligations, and exercise its rights, under that contract until the contract expires, or is extended, modified, or renewed, whichever occurs first.

SB248, s. 12 Section 12. 198.12 (6) of the statutes is amended to read:

SB248,7,23 198.12 (6) Utilities, acquire, construct, operate; water power; sale of service; use of streets. The district shall have power and authority to own, acquire and, subject to the restrictions applying to a municipality under s. 196.50 (4) (b), to construct any utility or portion thereof to operate, in whole or in part, in the district, and to own, acquire and, subject to ss. 196.01 to 196.53 and 196.59 to 196.76 where applicable, to construct any addition to or extension of any such utility, and to own, acquire, and construct any water power and hydroelectric power plant, within or without the district, to be operated in connection with any such utility, and to operate, maintain, and conduct such utility and water power and hydroelectric power plant and system both within and without the district, and to furnish, deliver, and sell to the public and to any municipality and to the state and any state institution heat, light, and power service and any other service, commodity, or facility which may be produced or furnished thereby, and to charge and collect rates, tolls, and charges for the same. For said purposes the district is granted and shall have and exercise the right freely to use and occupy any public highway, street, way, or place reasonably necessary to be used or occupied for the maintenance and operation of such utility or any part thereof, subject, however, to such local police regulations as may be imposed by any ordinance adopted by the governing body of the municipality in which such highway, street, way, or place is located.

SB248, s. 13 Section 13. 198.22 (6) of the statutes is amended to read:

SB248,8,10 198.22 (6) Acquisition; construction; operation; sale of service; use of streets. The district shall have power and authority to own, acquire, and, subject to the restrictions applying to a municipality under s. 196.50 (4) (b), to construct any water utility or portion thereof, to operate, in whole or in part, in the district and to construct any addition or extension to any such utility. For such purpose the district is granted and shall have and exercise the right freely to use and occupy any public highway, street, way, or place reasonably necessary to be used or occupied for the construction, operation, or maintenance of such utility or any part thereof, subject, however, to the obligation of the district to replace said grounds in the same condition as they previously were in.

SB248,8,11 (End)